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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the Month of September 2020
KOREA ELECTRIC POWER CORPORATION
(Translation of registrant’s name into English)
55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.
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QUARTERLY BUSINESS REPORT
(For the period from January 1, 2020 to June 30, 2020)
THIS IS A SUMMARY IN ENGLISH OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE FINANCIAL SERVICES COMMISSION OF KOREA.
IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS. NON-MATERIAL OR PREVIOUSLY DISCLOSED INFORMATION IS OMITTED OR ABRIDGED.
UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.
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I. Company Overview
1. Name of the company: Korea Electric Power Corporation (KEPCO)
2. Information of the company
(Address) 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea
(Phone number) 82-61-345-4213
(Website) http://www.kepco.co.kr
3. Major businesses
KEPCO, as the parent company, is engaged in the following activities:
• | development of electric power resources; |
• | generation, transmission, transformation and distribution of electricity and other related activities; |
• | research and development of technology related to the businesses mentioned above; |
• | overseas business related to the businesses mentioned above; |
• | investment or contributions related to the businesses mentioned above; |
• | development and operation of certain real estate holdings; and |
• | other businesses entrusted by the government. |
Businesses operated by KEPCO’s major subsidiaries are as follows: nuclear power generation by Korea Hydro & Nuclear Power (KHNP), thermal power generation by Korea South-East Power (KOSEP), Korea Midland Power (KOMIPO), Korea Western Power (KOWEPO), Korea Southern Power (KOSPO) and Korea East-West Power (EWP), other businesses including engineering service by KEPCO Engineering & Construction (KEPCO E&C), maintenance and repair of power plants by KEPCO Plant Service & Engineering (KEPCO KPS), ICT service by KEPCO KDN, nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF) and other overseas businesses and related investments.
4. Consolidated subsidiaries
(As of June 30, 2020)
Domestic | Overseas | Total | ||
44 | 79 | 123 |
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5. Major changes in management
A. | On January 31, 2020, Mr. Park, Jong-Bae was appointed as a non-standing director in replacement of Mr. Kim, Tae-Yoo, who resigned from his position. |
B. | On March 17, 2020, Mr. Kim, Jwa-Kwan, Mr. Yang, Bong-Ryull, and Mr. Jung, Yeon-Gil, whose term of office expired, were reappointed as non-standing directors for a term of a year beginning on April 4, 2020. |
C. | On May 27, 2020, Ms. Noh, Geum-Sun and Mr. Choi, Seung-Kook, whose term of office expired, were reappointed as non-standing directors for a term of a year beginning on June 12, 2020. |
D. | On June 10, 2020, Mr. Seong, Si-Heon was appointed as a non-standing director in replacement of Mr. Kim, Chang-Joon, whose term of office expired. |
6. Changes in major shareholders
On December 31, 2014, Korea Development Bank merged with Korea Finance Corporation, and became the largest shareholder of KEPCO.
7. Information regarding KEPCO shares
A. | Issued share capital: Won 3,210 billion (Authorized capital: Won 6 trillion) |
B. | Total number of issued shares: 641,964,077 (Total number of shares authorized to for issuance: 1,200,000,000) |
C. | Dividends: KEPCO did not pay any dividends for fiscal year of 2019 and 2018. Dividend payments for fiscal year 2017 and 2016 were Won 790 and Won 1,980 per share respectively. |
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II. Business Overview
1. Consolidated financial results by segment for a six-month period ended June 30, 2020 and 2019
(In billions of Won)
Business sector | January to June 2019 | January to June 2020 | ||||||||||||||
Sales | Operating profit | Sales | Operating profit | |||||||||||||
Electricity sales | 28,243 | -2,152 | 27,855 | -36 | ||||||||||||
Nuclear generation | 4,593 | 801 | 4,798 | 629 | ||||||||||||
Thermal generation | 11,796 | 301 | 10,253 | 112 | ||||||||||||
Others(*) | 1,631 | 181 | 1,926 | 142 | ||||||||||||
Subtotal | 46,263 | -869 | 44,833 | 848 | ||||||||||||
Adjustment for related- party transactions | -17,944 | -60 | -16,667 | -27 | ||||||||||||
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Total | 28,319 | -929 | 28,166 | 820 | ||||||||||||
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• The figures may not add up to the relevant total numbers due to rounding.
(*) Others relate to subsidiaries including KEPCO E&C, KEPCO KPS, KEPCO NF and KEPCO KDN, among others.
2. Changes in unit prices of major products
(In Won per kWh)
Business sector | Company | January to June 2019 | January to June 2020 | |||||
Electricity sold | Residential | KEPCO | 105.90 | 108.69 | ||||
Commercial | 126.73 | 128.01 | ||||||
Educational | 99.61 | 104.14 | ||||||
Industrial | 103.96 | 105.39 | ||||||
Agricultural | 48.05 | 48.65 | ||||||
Street lighting | 114.57 | 114.91 | ||||||
Overnight usage | 67.42 | 67.21 | ||||||
Electricity from nuclear generation | Nuclear Generation | KHNP | 57.76 | 57.70 | ||||
Electricity from thermal generation | Thermal generation | KOSEP | 100.84 | 92.40 | ||||
KOMIPO | 104.60 | 84.02 | ||||||
KOWEPO | 100.84 | 95.02 | ||||||
KOSPO | 106.87 | 101.97 | ||||||
EWP | 99.53 | 89.04 |
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3. Power purchase from generation companies for a six-month period ended June 30, 2020
Company | Volume (GWh) | Expense (In billions of Won) | ||||||
KHNP | 80,233 | 4,636 | ||||||
KOSEP | 23,364 | 1,906 | ||||||
KOMIPO | 22,405 | 2,112 | ||||||
KOWEPO | 18,069 | 1,720 | ||||||
KOSPO | 19,975 | 2,037 | ||||||
EWP | 19,976 | 1,857 | ||||||
Others | 75,505 | 7,385 | ||||||
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Total | 259,527 | 21,653 | ||||||
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4. Intellectual property as of June 30, 2020
Patents | Utility models | Designs | Trademarks | |||||||||||||||||||||||||
Domestic | Overseas | Domestic | Overseas | Total | ||||||||||||||||||||||||
KEPCO | 2,731 | 275 | 68 | 85 | 109 | 47 | 3,315 | |||||||||||||||||||||
Generation subsidiaries | 2,633 | 376 | 116 | 56 | 164 | 23 | 3,368 | |||||||||||||||||||||
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Total | 5,364 | 651 | 184 | 141 | 273 | 70 | 6,683 | |||||||||||||||||||||
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III. Financial Information
1. Condensed consolidated financial results as of and for a six-month period ended June 30, 2019 and 2020
(In billions of Won)
Consolidated statements of comprehensive income | Consolidated statements of financial position | |||||||||||||||||||||||||
January to June 2019 | January to June 2020 | Change (%) | December 31, 2019 | June 30, 2020 | Change (%) | |||||||||||||||||||||
Sales | 28,319 | 28,166 | -0.5 | Total assets | 197,598 | 201,225 | 1.8 | |||||||||||||||||||
Operating profit | -929 | 820 | n/m | Total liabilities | 128,708 | 132,265 | 2.8 | |||||||||||||||||||
Net income | -1,173 | 256 | n/m | Total equity | 68,890 | 68,960 | 0.1 |
2. Condensed separate financial results as of and for a six-month period ended June 30, 2019 and 2020
(In billions of Won)
Separate statements of comprehensive income | Separate statements of financial position | |||||||||||||||||||||||||
January to June 2019 | January to June 2020 | Change (%) | December 31, 2019 | June 30, 2020 | Change (%) | |||||||||||||||||||||
Sales | 28,243 | 27,855 | -1.4 | Total assets | 109,809 | 111,049 | 1.1 | |||||||||||||||||||
Operating profit | -2,152 | -36 | 98.3 | Total liabilities | 58,351 | 59,666 | 2.3 | |||||||||||||||||||
Net income | -1,524 | 38 | n/m | Total equity | 51,458 | 51,383 | -0.1 |
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IV. Board of Directors (KEPCO Only)
1. The board of directors is required to consist of not more than 15 directors including the president. Under our Articles of Incorporation, there may not be more than seven standing directors including the president, and more than eight non-standing directors. The number of non-standing directors must exceed the number of standing directors, including our president.
* | The Audit Committee consists of one standing director and two non-standing directors. |
2. Board meetings and agendas for a six-month period ended June 30, 2020
Number of meetings | Number of agendas | Classification | ||||
Resolutions | Reports | |||||
7 | 27 | 19 | 8 |
* | The audit committee held 6 meetings with 24 agendas (of which, 12 were approved as proposed and 12 were accepted as reported). |
3. Major activities of the Board of Directors
Date | Agenda | Results | Type | |||
January 22, 2020 | Approval of the safety management plan of 2020 | Approved as proposed | Resolution | |||
February 28, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| Approved as proposed | Resolution | |||
Approval to call for the annual general meeting of shareholders for the fiscal year 2019
| Approved as proposed | Resolution | ||||
Approval of consolidated and separate financial statements for the fiscal year 2019
| Approved as proposed | Resolution | ||||
Approval of the maximum aggregate amount of remuneration for directors in 2020
| Approved as proposed | Resolution | ||||
Approval of amendments to the Articles of Incorporation
| Approved as proposed | Resolution | ||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| Approved as proposed | Resolution | ||||
Report on audit results for 2019
| Accepted as reported | Report | ||||
Report on internal control over financial reporting for the fiscal year 2019
| Accepted as reported | Report | ||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2019
| Accepted as reported | Report | ||||
Report on the annual management of commercial papers in 2019
| Accepted as reported | Report | ||||
Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)
| Accepted as reported | Report | ||||
Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2020-2021) | Accepted as reported | Report |
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March 20, 2020 | Approval of utilization project of Gwanak-Dongjak regional office site
| Approved as proposed | Resolution | |||
Approval of contribution to a gas-fired power project and establishment of Operation & Maintenance company in Pulau Indah, Malaysia | Approved as proposed | Resolution | ||||
April 10, 2020 | Approval of amendments to the Regulation for Employee Remuneration and Welfare
| Approved as proposed | Resolution | |||
Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States | Approved as proposed | Resolution | ||||
May 29, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee
| Approved as proposed | Resolution | |||
Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| Approved as proposed | Resolution | ||||
Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders
| Approved as proposed | Resolution | ||||
Report on audit results for the first quarter of 2020 | Accepted as reported | Report | ||||
June 26, 2020 | Approval of amendments to the Electricity Usage Agreement and Rules for Operation
| Approved as proposed | Resolution | |||
Approval of the mid-to-long term financial management plan (2020-2024)
| Approved as proposed | Resolution | ||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| Approved as proposed | Resolution | ||||
Approval of investment for Indonesia Jawa 9&10 Thermal Development Project
| Deferred | Resolution | ||||
Approval of disclosure on revised plan for amendment to the electricity tariff system | Accepted as reported | Report | ||||
June 30, 2020 | Approval of investment for Indonesia Jawa 9&10 Thermal Development Project | Approved as proposed | Resolution |
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4. Attendance Status of Non-standing directors
Date | Agenda | Kim, Jwa- Kwan | Kim, | Yang, | Jung, Gil | Noh, Sun | Choi, | Park, Su | Park, Jong- Bae | Seong, Si- Heon | ||||||||||
January 22, 2020 | Approval of the safety management plan of 2020
| For | For | For | For | For | For | For | Before Appointment | |||||||||||
February 28, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| For | For | For | For | For | For | For | For | Before Appointment | ||||||||||
Approval to call for the annual general meeting of shareholders for the fiscal year 2019
| For | For | For | For | For | For | For | For | ||||||||||||
Approval of consolidated and separate financial statements for the fiscal year 2019
| For | For | For | For | For | For | For | For | ||||||||||||
Approval of the maximum aggregate amount of remuneration for directors in 2020
| For | For | For | For | For | For | For | For | ||||||||||||
Approval of amendments to the Articles of Incorporation
| For | For | For | For | For | For | For | For | ||||||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| For | For | For | For | For | For | For | For | ||||||||||||
Report on audit results for 2019
| Agenda for Report | |||||||||||||||||||
Report on internal control over financial reporting for the fiscal year 2019
| Agenda for Report | |||||||||||||||||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2019
| Agenda for Report | |||||||||||||||||||
Report on the annual management of commercial papers in 2019
| Agenda for Report | |||||||||||||||||||
Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)
| Agenda for Report | |||||||||||||||||||
Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2020-2021) | Agenda for Report | |||||||||||||||||||
March 20, 2020 | Approval of utilization project of Gwanak-Dongjak regional office site
| For | For | For | For | For | For | For | For |
Before Appointment | ||||||||||
Approval of contribution to a gas-fired power project and establishment of Operation & Maintenance company in Pulau Indah, Malaysia | For | For | For | For | For | For | For | For |
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April 10, 2020 | Approval of amendments to the Regulation for Employee Remuneration and Welfare
| Absent | For | For | For | For | For | For | Absent | |||||||||||
Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States
| Absent | For | For | For | For | For | For | Absent | ||||||||||||
May 29, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee
| For | For | For | For | For | For | For | For | |||||||||||
Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| For | For | For | For | For | For | For | For | ||||||||||||
Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders
| For | For | For | For | For | For | For | For | ||||||||||||
Report on audit results for the first quarter of 2020
| Agenda for Report | |||||||||||||||||||
June 26, 2020 | Approval of amendments to the Electricity Usage Agreement and Rules for Operation
| For | For | For | For | For | For | For | For | For | ||||||||||
Approval of the mid-to-long term financial management plan (2020-2024)
| For | For | For | For | For | For | For | For | For | |||||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| For | For | For | For | For | For | For | For | For | |||||||||||
Approval of investment for Indonesia Jawa 9&10 Thermal Development Project
| — | — | — | — | — | — | — | — | — | |||||||||||
Approval of disclosure on revised plan for amendment to the electricity tariff system
| Agenda for Report | |||||||||||||||||||
June 30, 2020 | Approval of investment for Indonesia Jawa 9&10 Thermal Development Project | — | — | — | — | — | — | — | — | — | ||||||||||
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Attendance Rate | 85.7% | 100% | 100% | 100% | 100% | 100% | 100% | 83.3% | 100% | |||||||||||
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* | Individual director’s vote results regarding the proposed approval of investment for Indonesia Jawa 9&10 Thermal Development Project on June 26, 2020 and June 30, 2020 are not disclosed. |
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5. Attendance Status of Standing directors
Date | Agenda | JongKap | Kim, | Kim, | Park, | Kim, | Lim, | |||||||
January 22, 2020 | Approval of the safety management plan of 2020 | For | For | For | For | For | For | |||||||
February 28, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| For | For | For | For | For | For | |||||||
Approval to call for the annual general meeting of shareholders for the fiscal year 2019
| For | For | For | For | For | For | ||||||||
Approval of consolidated and separate financial statements for the fiscal year 2019
| For | For | For | For | For | For | ||||||||
Approval of the maximum aggregate amount of remuneration for directors in 2020
| For | For | For | For | For | For | ||||||||
Approval of amendments to the Articles of Incorporation
| For | For | For | For | For | For | ||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| For | For | For | For | For | For | ||||||||
Report on audit results for 2019
| Agenda for Report | |||||||||||||
Report on internal control over financial reporting for the fiscal year 2019
| Agenda for Report | |||||||||||||
Report on the evaluation of internal control over financial reporting for the fiscal year 2019
| Agenda for Report | |||||||||||||
Report on the annual management of commercial papers in 2019
| Agenda for Report | |||||||||||||
Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)
| Agenda for Report | |||||||||||||
Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2020-2021)
| Agenda for Report |
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March 20, 2020 | Approval of utilization project of Gwanak-Dongjak regional office site
| For | For | For | For | For | For | |||||||
Approval of contribution to a gas-fired power project and establishment of Operation & Maintenance company in Pulau Indah, Malaysia | For | For | For | For | For | For | ||||||||
April 10, 2020 | Approval of amendments to the Regulation for Employee Remuneration and Welfare
| For | For | For | For | For | For | |||||||
Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States | For | For | For | For | For | For | ||||||||
May 29, 2020 | Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee
| For | For | For | For | For | For | |||||||
Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director
| For | For | For | For | For | For | ||||||||
Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders
| For | For | For | For | For | For | ||||||||
Report on audit results for the first quarter of 2020 | Agenda for Report | |||||||||||||
June 26, 2020 | Approval of amendments to the Electricity Usage Agreement and Rules for Operation
| For | For | For | For | For | For | |||||||
Approval of the mid-to-long term financial management plan (2020-2024)
| For | For | For | For | For | For | ||||||||
Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service
| For | For | For | For | For | For | ||||||||
Approval of investment for Indonesia Jawa 9&10 Thermal Development Project
| — | — | — | — | — | —�� | ||||||||
Approval of disclosure on revised plan for amendment to the electricity tariff system
| Agenda for Report | |||||||||||||
June 30, 2020 | Approval of investment for Indonesia Jawa 9&10 Thermal Development Project | — | — | — | — | — | — | |||||||
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Attendance Rate | 100% | 100% | 100% | 100% | 100% | 100% | ||||||||
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* | Individual director’s vote results regarding the proposed approval of investment for Indonesia Jawa 9&10 Thermal Development Project on June 26, 2020 and June 30, 2020 are not disclosed. |
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6. Major activities of the Audit Committee
Date | Agenda | Results | Type | |||
January 22, 2020 | Approval of appointment of independent auditors of subsidiaries
| Approved as proposed
| Resolution
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Approval of Audit plans for 2020
| Approved as proposed
| Resolution | ||||
Report on education plans for auditors in 2020
| Accepted as reported
| Report | ||||
Prior report on independence of independent auditors | Accepted as reported
| Report | ||||
February 28, 2020 | Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019
| Approved as proposed
| Resolution | |||
Report on internal control over financial reporting for the fiscal year 2019
| Accepted as reported
| Report | ||||
Report on the evaluation on internal control over financial reporting for the fiscal year 2019
| Accepted as reported
| Report | ||||
Report on agendas with audit service by independent auditors for fiscal year 2019
| Accepted as reported
| Report | ||||
Report on audit results for fiscal year 2019 | Accepted as reported
| Report | ||||
March 20, 2020 | Prior approval for non-audit service for subsidiaries by the independent auditor
| Approved as proposed
| Resolution | |||
Approval of investigation result on the agendas for the annual general meeting of shareholders
| Approved as proposed
| Resolution | ||||
Approval of auditor’s report for the annual general meeting of shareholders
| Approved as proposed
| Resolution | ||||
Report on audit results by the independent auditor for the fiscal year 2019 | Accepted as reported
| Report | ||||
April 10, 2020 | Approval of appointment of independent auditors of subsidiaries
| Approved as proposed
| Resolution | |||
Report on the Form 20-F for the fiscal year 2019 to be filed with the U.S. Securities and Exchange Commission
| Accepted as reported
| Report | ||||
Auditor’s report for the fiscal year 2019 in accordance with U.S. accounting principles | Accepted as reported | Report |
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May 29, 2020 | Approval of appointment of independent auditors of subsidiaries | Approved as proposed
| Resolution | |||
Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members | Approved as proposed
| Resolution | ||||
Approval of amendments to the Guidelines for Immunity of Proactive Performance | Approved as proposed
| Resolution | ||||
Report on audit results for the first quarter of 2020 | Accepted as reported
| Report | ||||
Auditor’s review report for the first quarter of 2020 | Accepted as reported
| Report | ||||
June 26, 2020 | Approval of post evaluation results on independent auditor | Approved as proposed
| Resolution | |||
Approval of establishment of and amendments to internal regulations regarding prior consulting | Approved as proposed
| Resolution | ||||
Independent auditor’s report on the audit plans for the fiscal year 2020 | Accepted as reported
| Report |
* | The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company and takes administrative measures as appropriate in accordance with relevant internal regulations. KEPCO’s Regional Headquarters and Regional Offices also have separate audit teams which conduct internal inspections with respect to the relevant headquarters or offices. |
7. Attendance Status of the Audit Committee
Date | Agenda | Noh, Geum-Sun | Jung, Yeon-Gil | Lee, Jung-Hee(*) | ||||
January 22, 2020 | Approval of appointment of independent auditors of subsidiaries
| For | For | Absent | ||||
Approval of Audit plans for 2020
| For | For | Absent | |||||
Report on education plans for auditors in 2020
| For | For | Absent | |||||
Prior report on independence of independent auditors
| For | For | Absent | |||||
February 28. 2020 | Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019
| For | For | Absent | ||||
Report on internal control over financial reporting for the fiscal year 2019
| For | For | Absent | |||||
Report on the evaluation on internal control over financial reporting for the fiscal year 2019
| For | For | Absent | |||||
Report on agendas with audit service by independent auditors for fiscal year 2019
| For | For | Absent | |||||
Report on audit results for fiscal year 2019
| For | For | Absent |
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March 20, 2020 | Prior approval for non-audit service for subsidiaries by the independent auditor
| For | For | Absent | ||||
Approval of investigation result on the agendas for the annual general meeting of shareholders
| For | For | Absent | |||||
Approval of auditor’s report for the annual general meeting of shareholders
| For | For | Absent | |||||
Report on audit results by the independent auditor for the fiscal year 2019 | For | For | Absent | |||||
April 10, 2020 | Approval of appointment of independent auditors of subsidiaries
| For | For | Absent | ||||
Report on the Form 20-F for the fiscal year 2019 to be filed with the U.S. Securities and Exchange Commission
| For | For | Absent | |||||
Auditor’s report for the fiscal year 2019 in accordance with U.S. accounting principles | For | For | Absent | |||||
May 29, 2020 | Approval of appointment of independent auditors of subsidiaries
| For | For | Absent | ||||
Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members
| For | For | Absent | |||||
Approval of amendments to the Guidelines for Immunity of Proactive Performance
| For | For | Absent | |||||
Report on audit results for the first quarter of 2020
| For | For | Absent | |||||
Auditor’s review report for the first quarter of 2020 | For | For | Absent | |||||
June 26, 2020 | Approval of post evaluation results on independent auditor
| For | For | Absent | ||||
Approval of establishment of and amendments to internal regulations regarding prior consulting
| For | For | Absent | |||||
Independent auditor’s report on the audit plans for the fiscal year 2020
| For | For | Absent | |||||
|
|
| ||||||
Attendance Rate | 100% | 100% | — | |||||
|
|
|
(*) | Lee, Jung-Hee voluntarily resigned as a standing director and as a member of the audit committee on December 13, 2019. Under Korean law, Lee, Jung-Hee retains the rights and is subject to obligations as a member of the audit committee and a standing director, to the extent such rights and obligations are connected to performance of his duties as a member of the audit committee, until his successor to take his place at our audit committee is approved and appointed at a general meeting of the shareholders. |
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V. Shareholders
1. List of shareholders as of June 30, 2020
Number of shareholders | Shares owned | Percentage of total (%) | ||||||||||||
Government of the Republic of Korea | 1 | 116,841,794 | 18.20 | |||||||||||
Korea Development Bank | 1 | 211,235,264 | 32.90 | |||||||||||
Subtotal | 2 | 328,077,058 | 51.10 | |||||||||||
National Pension Service | 1 | 51,935,237 | 8.09 | |||||||||||
Public | Common Shares | 1,048 | 104,179,375 | 16.23 | ||||||||||
(Non-Koreans) | American depositary shares (ADS) | 1 | 26,808,599 | 4.18 | ||||||||||
Public (Koreans) | 517,238 | 130,963,808 | 20.40 | |||||||||||
|
|
|
|
|
| |||||||||
Total | 518,290 | 641,964,077 | 100.00 | |||||||||||
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|
|
|
|
|
• | Percentages are based on issued shares of common stock. |
• | All of our shareholder have equal voting rights. |
• | Citibank, N.A. is our depositary bank and each ADS represents one-half of one share of our common stock. |
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VI. Directors and employees as of and for a six-month period ended June 30, 2020 (KEPCO Only)
1. Directors
(In thousands of Won) | ||||||||||||||||||
Type | Number directors | Total | Average per person | Remarks | ||||||||||||||
Standing director | 6 | 627,115 | 104,519 | Excluding the members of Audit Committee | ||||||||||||||
Non-standing director | 6 | 90,000 | 15,000 | |||||||||||||||
Member of Audit Committee | Standing director | 0 | — | — | Vacant after December 13, 2019 | |||||||||||||
Non-standing director | 2 | 30,000 | 15,000 | — | ||||||||||||||
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|
|
|
|
|
| |||||||||||
Total | 14 | 747,115 | 53,365 | — | ||||||||||||||
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|
|
|
2. Employees
(In thousands of Won) | ||||||||||||||||||||||||
Type | Number of employees | Average continuous service year | Total salaries | Average salaries per person | ||||||||||||||||||||
Regular | Non-regular | Total | ||||||||||||||||||||||
Male | 17,880 | 102 | 17,982 | 15.8 | 800,207,598 | 44,500 | ||||||||||||||||||
Female | 4,776 | 78 | 4,854 | 13.1 | 174,095,376 | 35,866 | ||||||||||||||||||
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|
|
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|
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|
| |||||||||||||
Total | 22,656 | 180 | 22,836 | 15.2 | 974,302,974 | 42,665 | ||||||||||||||||||
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Table of Contents
VII. Other Information Necessary for the Protection of Investors
1. Summary of shareholder’s meetings for a six-month period ended June 30, 2020
Type | Agenda | Results | ||
Annual General Meeting held on March 27, 2020 | Approval of the consolidated and separate financial statements for the fiscal year 2019
| Approved as proposed | ||
Approval of the maximum aggregate amount of remuneration for directors in 2020
| Approved as proposed | |||
Approval of amendments to the Articles of Incorporation | Approved as proposed |
2. Pending legal proceedings as of June 30, 2020
(In billions of Won)
Type | Number of lawsuits | Amount claimed | ||||||
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants | 636 | 685 | ||||||
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs | 181 | 315 |
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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: September 10, 2020
Table of Contents
KOREA ELECTRIC POWER CORPORATION
AND ITS SUBSIDIARIES
Consolidated Interim Financial Statements
For the six-month periods ended June 30, 2020 and 2019
(With Independent Auditor’s Review Report)
1
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Table of Contents
Independent Auditor’s Review Report
Based on a report originally issued in Korean
The Board of Directors and Shareholders
Korea Electric Power Corporation:
Report on Review of Consolidated Interim Financial Statements
We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred as the “Group”), which comprise the consolidated interim statements of financial position as of June 30, 2020, the consolidated interim statements of comprehensive income (loss) for the three and six-month periods ended June 30, 2020 and 2019, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the six-month periods ended June 30, 2020 and 2019 and the notes to the accompanying consolidated interim financial statements, including a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Interim Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“KIFRS”) 1034 ‘Interim Financial Reporting’ and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Review Responsibility
Our responsibility is to issue a report on these consolidated interim financial statements based on our review. We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of Korea (“KGAAS”) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements are not prepared, in all material respects, in accordance with KIFRS 1034 ‘Interim Financial Reporting’.
Other Matters
We have audited the consolidated statement of financial position as of December 31, 2019, and the related consolidated statement of comprehensive income (loss), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein), in accordance with KGAAS, and our report dated March 17, 2020 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2019 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.
August 14, 2020
This review report is effective as of August 14, 2020, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying consolidated interim financial statements and may result in modifications to this review report.
3
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Financial Position
As of June 30, 2020 and December 31, 2019
(Unaudited)
In millions of won | Note | June 30, 2020 | December 31, 2019 | |||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 5,6,7,44 | 1,810,129 | ||||||||||
Current financial assets, net | 5,6,9,11,12,13,44,46 | 2,801,904 | 1,586,509 | |||||||||
Trade and other receivables, net | 5,8,20,24,44,45,46 | 6,933,289 | 7,701,452 | |||||||||
Inventories, net | 14 | 7,121,417 | 7,050,700 | |||||||||
Income tax receivables | 30,568 | 99,718 | ||||||||||
Current non-financial assets | 15 | 1,554,147 | 1,206,377 | |||||||||
Assets held-for-sale | 16,41 | 23,291 | 28,116 | |||||||||
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|
|
| |||||||||
Total current assets | 20,211,856 | 19,483,001 | ||||||||||
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|
|
| |||||||||
Non-current assets | ||||||||||||
Non-current financial assets, net | 5,6,9,10,11,12,13,44,46 | 2,821,990 | 2,563,498 | |||||||||
Non-current trade and other receivables, net | 5,8,20,44,45,46 | 2,030,781 | 2,002,297 | |||||||||
Property, plant and equipment, net | 18,24,27,48 | 166,837,925 | 164,701,827 | |||||||||
Investment properties, net | 19,27 | 159,918 | 158,580 | |||||||||
Goodwill | 16 | 97,977 | 97,977 | |||||||||
Intangible assets other than goodwill, net | 21,27,45 | 1,161,885 | 1,069,976 | |||||||||
Investments in associates | 4,17 | 4,292,120 | 4,251,802 | |||||||||
Investments in joint ventures | 4,17 | 1,794,138 | 1,663,029 | |||||||||
Defined benefit assets, net | 25 | — | 1,047 | |||||||||
Deferred tax assets | 1,564,877 | 1,437,829 | ||||||||||
Non-current non-financial assets | 15 | 251,746 | 166,929 | |||||||||
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|
|
| |||||||||
Total non-current assets | 181,013,357 | 178,114,791 | ||||||||||
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| |||||||||
Total Assets | 4 | 197,597,792 | ||||||||||
|
|
|
|
(Continued)
4
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Financial Position, Continued
As of June 30, 2020 and December 31, 2019
(Unaudited)
In millions of won | Note | June 30, 2020 | December 31, 2019 | |||||||||
Liabilities | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables, net | 5,22,24,44,46 | 6,649,402 | ||||||||||
Current financial liabilities, net | 5,12,23,44,46 | 8,167,525 | 8,930,903 | |||||||||
Income tax payables | 329,597 | 358,277 | ||||||||||
Current non-financial liabilities | 20,28,29 | 6,155,499 | 5,688,353 | |||||||||
Current provisions | 26,44 | 2,964,435 | 2,604,721 | |||||||||
|
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|
| |||||||||
Total current liabilities | 23,327,212 | 24,231,656 | ||||||||||
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|
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| |||||||||
Non-current liabilities | ||||||||||||
Non-current trade and other payables, net | 5,22,24,44,46 | 7,046,470 | 6,965,760 | |||||||||
Non-current financial liabilities, net | 5,12,23,44,46 | 62,711,083 | 59,115,598 | |||||||||
Non-current non-financial liabilities | 28,29 | 9,259,502 | 8,834,452 | |||||||||
Employee benefits liabilities, net | 25,44 | 2,277,089 | 1,929,854 | |||||||||
Deferred tax liabilities | 8,457,668 | 8,564,775 | ||||||||||
Non-current provisions | 26,44 | 19,186,158 | 19,066,048 | |||||||||
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|
| |||||||||
Total non-current liabilities | 108,937,970 | 104,476,487 | ||||||||||
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| |||||||||
Total Liabilities | 4 | 128,708,143 | ||||||||||
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| |||||||||
Equity | ||||||||||||
Contributed capital | 1,30,44 | |||||||||||
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 | 32,179,066 | 34,785,425 | ||||||||||
Unappropriated retained earnings | 15,509,657 | 12,811,798 | ||||||||||
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| |||||||||
49,293,633 | 49,202,133 | |||||||||||
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|
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| |||||||||
Other components of equity | 33 | |||||||||||
Other capital surplus | 1,224,915 | 1,226,364 | ||||||||||
Accumulated other comprehensive loss | (327,976 | ) | (280,730 | ) | ||||||||
Other equity | 13,294,973 | 13,294,973 | ||||||||||
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|
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| |||||||||
14,191,912 | 14,240,607 | |||||||||||
|
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| |||||||||
Equity attributable to owners of the controlling company | 67,539,123 | 67,496,318 | ||||||||||
Non-controlling interests | 16,32 | 1,420,908 | 1,393,331 | |||||||||
|
|
|
| |||||||||
Total Equity | 68,889,649 | |||||||||||
|
|
|
| |||||||||
Total Liabilities and Equity | 197,597,792 | |||||||||||
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|
|
|
The accompanying notes are an integral part of the consolidated interim financial statements.
5
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Comprehensive Income (Loss)
For the three and six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won, except per share information | June 30, 2020 | June 30, 2019 | ||||||||||||||||||
Note | Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | ||||||||||||||||
Sales | 4,34,44,46 | |||||||||||||||||||
Sales of goods | 27,172,498 | 12,551,869 | 27,305,880 | |||||||||||||||||
Sales of services | 93,363 | 213,588 | 85,538 | 180,417 | ||||||||||||||||
Sales of construction services | 20 | 263,957 | 471,378 | 287,661 | 543,715 | |||||||||||||||
Revenue related to transfer of assets from customers | 28 | 155,559 | 308,196 | 145,906 | 289,366 | |||||||||||||||
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| |||||||||||||
13,072,533 | 28,165,660 | 13,070,974 | 28,319,378 | |||||||||||||||||
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| |||||||||||||
Cost of sales | 14,25,42,46 | |||||||||||||||||||
Cost of sales of goods | (11,662,703 | ) | (25,340,457 | ) | (12,293,502 | ) | (27,184,671 | ) | ||||||||||||
Cost of sales of services | (53,692 | ) | (308,715 | ) | (161,500 | ) | (285,223 | ) | ||||||||||||
Cost of sales of construction services | (252,766 | ) | (416,764 | ) | (257,356 | ) | (494,372 | ) | ||||||||||||
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|
|
|
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| |||||||||||||
(11,969,161 | ) | (26,065,936 | ) | (12,712,358 | ) | (27,964,266 | ) | |||||||||||||
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|
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| |||||||||||||
Gross profit | 1,103,372 | 2,099,724 | 358,616 | 355,112 | ||||||||||||||||
Selling and administrative expenses | 25,35,42,46 | (713,562 | ) | (1,279,360 | ) | (657,275 | ) | (1,283,651 | ) | |||||||||||
|
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|
|
| |||||||||||||
Operating profit (loss) | 4 | 389,810 | 820,364 | (298,659 | ) | (928,539 | ) | |||||||||||||
Other non-operating income | 36 | 111,008 | 197,532 | 95,454 | 171,157 | |||||||||||||||
Other non-operating expense | 36 | (100,049 | ) | (116,661 | ) | (35,795 | ) | (51,138 | ) | |||||||||||
Other gains (losses), net | 37 | 89,570 | 151,508 | (58,392 | ) | (68,676 | ) | |||||||||||||
Finance income | 5,12,38 | 411,180 | 794,671 | 348,350 | 649,525 | |||||||||||||||
Finance expenses | 5,12,39 | (684,460 | ) | (1,691,222 | ) | (816,592 | ) | (1,514,968 | ) | |||||||||||
Profit (loss) related to associates, joint ventures and subsidiaries | 4,17 | |||||||||||||||||||
Share in profit of associates and joint ventures | 29,520 | 269,482 | 61,152 | 266,884 | ||||||||||||||||
Gain on disposal of investments in associates and joint ventures | — | — | 2,863 | 9,064 | ||||||||||||||||
Share in loss of associates and joint ventures | (28,828 | ) | (62,952 | ) | (48,517 | ) | (79,060 | ) | ||||||||||||
Loss on disposal of investments in associates and joint ventures | — | (16 | ) | — | (2 | ) | ||||||||||||||
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|
|
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|
| |||||||||||||
692 | 206,514 | 15,498 | 196,886 | |||||||||||||||||
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|
|
|
|
|
| |||||||||||||
Profit (loss) before income tax | 217,751 | 362,706 | (750,136 | ) | (1,545,753 | ) | ||||||||||||||
Income tax expense (benefit) | 40 | 14,899 | 106,246 | (337,958 | ) | (372,419 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Net profit (loss) for the period | 256,460 | (412,178 | ) | (1,173,334 | ) |
(Continued)
6
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Comprehensive Income (Loss), Continued
For the three and six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won, except per share information | June 30, 2020 | June 30, 2019 | ||||||||||||||||||
Note | Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | ||||||||||||||||
Other comprehensive income (loss) | 5,12,25,31,33 | |||||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||
Remeasurements of defined benefit liability, net of tax | 25,31 | (95,559 | ) | (88,261 | ) | (186,023 | ) | |||||||||||||
Share in other comprehensive income (loss) of associates and joint ventures, net of tax | 31 | 1,366 | 1,118 | (654 | ) | (448 | ) | |||||||||||||
Net change in fair value of equity investments at fair value through other comprehensive loss | 33 | 11,282 | (40,262 | ) | (19,334 | ) | (463 | ) | ||||||||||||
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 | 5,12,33 | 24,864 | 48,881 | 9,293 | 14,556 | |||||||||||||||
Foreign currency translation of foreign operations, net of tax | 33 | (49,450 | ) | (4,728 | ) | 36,041 | 60,278 | |||||||||||||
Share in other comprehensive income (loss) of associates and joint ventures, net of tax | 33 | (2,906 | ) | (41,737 | ) | 8,424 | 35,704 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Other comprehensive income (loss), net of tax | (74,118 | ) | (132,287 | ) | (54,491 | ) | (76,396 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total comprehensive income (loss) for the period | 124,173 | (466,669 | ) | (1,249,730 | ) | |||||||||||||||
|
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|
|
|
|
|
| |||||||||||||
Profit (loss) attributable to: | ||||||||||||||||||||
Owners of the controlling company | 43 | 189,191 | (447,546 | ) | (1,235,344 | ) | ||||||||||||||
Non-controlling interests | 36,640 | 67,269 | 35,368 | 62,010 | ||||||||||||||||
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| |||||||||||||
256,460 | (412,178 | ) | (1,173,334 | ) | ||||||||||||||||
|
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|
|
|
|
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| |||||||||||||
Total comprehensive income (loss) attributable to: | ||||||||||||||||||||
Owners of the controlling company | 44,457 | (504,129 | ) | (1,316,832 | ) | |||||||||||||||
Non-controlling interests | 27,876 | 79,716 | 37,460 | 67,102 | ||||||||||||||||
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|
|
|
|
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| |||||||||||||
124,173 | (466,669 | ) | (1,249,730 | ) | ||||||||||||||||
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|
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|
|
|
| |||||||||||||
Profit (loss) per share (in won) | 43 | |||||||||||||||||||
Basic and diluted earnings (loss) per share | 295 | (697 | ) | (1,924 | ) |
The accompanying notes are an integral part of the consolidated interim financial statements.
7
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Changes in Equity
For the six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won | Equity attributable to owners of the controlling company | |||||||||||||||||||||||
Contributed capital | Retained earnings | Other components of equity | Subtotal | Non- controlling interests | Total equity | |||||||||||||||||||
Balance at January 1, 2019 | 51,519,119 | 14,171,228 | 69,743,925 | 1,348,837 | 71,092,762 | |||||||||||||||||||
Total comprehensive income (loss) for the period | ||||||||||||||||||||||||
Net profit (loss) for the period | — | (1,235,344 | ) | — | (1,235,344 | ) | 62,010 | (1,173,334 | ) | |||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurements of defined benefit liability, net of tax | — | (174,173 | ) | — | (174,173 | ) | (11,850 | ) | (186,023 | ) | ||||||||||||||
Share in other comprehensive loss of associates and joint ventures, net of tax | — | (448 | ) | — | (448 | ) | — | (448 | ) | |||||||||||||||
Net change in fair value of equity investments at fair value through other comprehensive loss | — | — | (463 | ) | (463 | ) | — | (463 | ) | |||||||||||||||
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 | — | — | 14,269 | 14,269 | 287 | 14,556 | ||||||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | 43,626 | 43,626 | 16,652 | 60,278 | ||||||||||||||||||
Share in other comprehensive income of associates and joint ventures, net of tax | — | — | 35,701 | 35,701 | 3 | 35,704 | ||||||||||||||||||
Transactions with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | — | — | — | (70,152 | ) | (70,152 | ) | ||||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | (7,859 | ) | (7,859 | ) | 10,358 | 2,499 | ||||||||||||||||
Transactions between consolidated entities | — | — | (141 | ) | (141 | ) | 3,054 | 2,913 | ||||||||||||||||
Changes in consolidation scope | — | — | — | — | 19,636 | 19,636 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (6,692 | ) | (6,692 | ) | ||||||||||||||||
Others | — | (1,504 | ) | 1,504 | — | — | — | |||||||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at June 30, 2019 | 50,107,650 | 14,257,865 | 68,419,093 | 1,372,143 | 69,791,236 | |||||||||||||||||||
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|
|
|
|
|
|
|
(Continued)
8
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Changes in Equity, Continued
For the six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won | Equity attributable to owners of the controlling company | |||||||||||||||||||||||
Contributed capital | Retained earnings | Other components of equity | Subtotal | Non- controlling interests | Total equity | |||||||||||||||||||
Balance at January 1, 2020 | 49,202,133 | 14,240,607 | 67,496,318 | 1,393,331 | 68,889,649 | |||||||||||||||||||
Total comprehensive income (loss) for the period | ||||||||||||||||||||||||
Net profit for the period | — | 189,191 | — | 189,191 | 67,269 | 256,460 | ||||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Remeasurement of defined benefit liability, net of tax | — | (98,606 | ) | — | (98,606 | ) | 3,047 | (95,559 | ) | |||||||||||||||
Share in other comprehensive income of associates and joint ventures, net of tax | — | 1,118 | — | 1,118 | — | 1,118 | ||||||||||||||||||
Net change in fair value of equity investments at fair value through other comprehensive loss | — | — | (40,262 | ) | (40,262 | ) | — | (40,262 | ) | |||||||||||||||
Items that are or may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | — | — | 38,826 | 38,826 | 10,055 | 48,881 | ||||||||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | (4,067 | ) | (4,067 | ) | (661 | ) | (4,728 | ) | ||||||||||||||
Share in other comprehensive income (loss) of associates and joint ventures, net of tax | — | — | (41,743 | ) | (41,743 | ) | 6 | (41,737 | ) | |||||||||||||||
Transactions with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||
Dividends paid | — | — | — | — | (66,732 | ) | (66,732 | ) | ||||||||||||||||
Issuance of shares of capital by subsidiaries and others | — | — | (544 | ) | (544 | ) | 17,299 | 16,755 | ||||||||||||||||
Transactions between consolidated entities | — | (203 | ) | (905 | ) | (1,108 | ) | 1,039 | (69 | ) | ||||||||||||||
Changes in consolidation scope | — | — | — | — | 2,947 | 2,947 | ||||||||||||||||||
Dividends paid (hybrid bond) | — | — | — | — | (6,692 | ) | (6,692 | ) | ||||||||||||||||
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| |||||||||||||
Balance at June 30, 2020 | 49,293,633 | 14,191,912 | 67,539,123 | 1,420,908 | 68,960,031 | |||||||||||||||||||
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The accompanying notes are an integral part of the consolidated interim financial statements.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Cash Flows
For the six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won | June 30, 2020 | June 30, 2019 | ||||||
Cash flows from operating activities | ||||||||
Profit (loss) for the period | (1,173,334 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Income tax expense (benefit) | 106,246 | (372,419 | ) | |||||
Depreciation | 5,645,802 | 5,307,622 | ||||||
Amortization | 77,610 | 82,395 | ||||||
Employee benefit expense | 225,370 | 193,062 | ||||||
Bad debt expense | 23,688 | 20,460 | ||||||
Interest expense | 1,020,873 | 1,016,529 | ||||||
Loss on sale of financial assets | 365 | 261 | ||||||
Loss on disposal of property, plant and equipment | 19,253 | 26,747 | ||||||
Loss on abandonment of property, plant, and equipment | 137,601 | 184,205 | ||||||
Loss on impairment of property, plant, and equipment | 2,425 | 29,685 | ||||||
Loss on impairment of intangible assets | 3,505 | — | ||||||
Loss on disposal of intangible assets | — | 61,696 | ||||||
Increase to provisions | 840,093 | 457,678 | ||||||
Loss on foreign currency translation, net | 414,990 | 388,954 | ||||||
Gain on valuation of financial assets at fair value through profit or loss | (10,100 | ) | (8,391 | ) | ||||
Loss on valuation of financial assets at fair value through profit or loss | 1,085 | 296 | ||||||
Valuation and transaction gain on derivative instruments, net | (453,039 | ) | (359,945 | ) | ||||
Share in income of associates and joint ventures, net | (206,530 | ) | (187,824 | ) | ||||
Gain on disposal of financial assets | (3,826 | ) | (964 | ) | ||||
Gain on disposal of property, plant and equipment | (56,163 | ) | (29,187 | ) | ||||
Gain on disposal of intangible assets | (1,556 | ) | (97 | ) | ||||
Gain on disposal of associates and joint ventures | — | (9,064 | ) | |||||
Loss on disposal of associates and joint ventures | 16 | 2 | ||||||
Interest income | (130,576 | ) | (124,579 | ) | ||||
Dividend income | (4,085 | ) | (3,740 | ) | ||||
Others, net | (11,509 | ) | 4,769 | |||||
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7,641,538 | 6,678,151 | |||||||
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Changes in working capital: | ||||||||
Trade receivables | 713,513 | 881,127 | ||||||
Non-trade receivables | 134,228 | 377,035 | ||||||
Accrued income | 111,634 | 208,177 | ||||||
Other receivables | (1,236 | ) | 38,972 | |||||
Other current assets | (358,611 | ) | (245,379 | ) | ||||
Inventories | (283,163 | ) | (275,220 | ) | ||||
Other non-current assets | (113,267 | ) | 160,292 | |||||
Trade payables | (1,180,390 | ) | (1,430,773 | ) | ||||
Non-trade payables | (21,648 | ) | 122,495 | |||||
Accrued expenses | (102,675 | ) | (444,200 | ) | ||||
Other payables | — | (320 | ) | |||||
Other current liabilities | 511,705 | 252,250 | ||||||
Other non-current liabilities | 365,112 | 246,205 | ||||||
Investments in associates and joint ventures (dividends received) | 90,526 | 166,267 | ||||||
Provisions | (705,831 | ) | (836,864 | ) | ||||
Payments of employee benefit obligations | (34,519 | ) | (29,153 | ) | ||||
Plan assets | (3,304 | ) | (270 | ) | ||||
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(877,926 | ) | (809,359 | ) | |||||
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(Continued)
10
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Consolidated Interim Statements of Cash Flows, Continued
For the six-month periods ended June 30, 2020 and 2019
(Unaudited)
In millions of won | June 30, 2020 | June 30, 2019 | ||||||
Cash generated from operating activities | 4,695,458 | |||||||
Dividends received (financial assets at fair value through other comprehensive income) | 4,085 | 3,740 | ||||||
Interest paid | (1,022,791 | ) | (1,001,541 | ) | ||||
Interest received | 114,247 | 74,784 | ||||||
Income taxes paid | (274,398 | ) | (110,575 | ) | ||||
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Net cash provided by operating activities | 5,841,215 | 3,661,866 | ||||||
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Cash flows from investing activities | ||||||||
Proceeds from disposals of investments in associates and joint ventures | 93 | — | ||||||
Acquisition of investments in associates and joint ventures | (67,063 | ) | (58,733 | ) | ||||
Proceeds from disposals of property, plant and equipment | 193,054 | 189,701 | ||||||
Acquisition of property, plant and equipment | (6,920,206 | ) | (5,973,013 | ) | ||||
Proceeds from disposals of intangible assets | 37,164 | 261 | ||||||
Acquisition of intangible assets | (92,768 | ) | (156,095 | ) | ||||
Proceeds from disposals of financial assets | 3,681,126 | 1,303,298 | ||||||
Acquisition of financial assets | (4,738,796 | ) | (2,618,226 | ) | ||||
Increase in loans | (154,179 | ) | (138,622 | ) | ||||
Collection of loans | 139,310 | 80,497 | ||||||
Increase in deposits | (139,251 | ) | (130,139 | ) | ||||
Decrease in deposits | 128,707 | 132,868 | ||||||
Proceeds from disposals of assets held-for-sale | 4,862 | 779 | ||||||
Receipt of government grants | 21,436 | 7,435 | ||||||
Use of government grants | (104 | ) | (18 | ) | ||||
Net cash outflow from changes in consolidation scope | (25,094 | ) | (2,106 | ) | ||||
Other cash outflow from investing activities, net | (112,060 | ) | (64,906 | ) | ||||
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Net cash used in investing activities | (8,043,769 | ) | (7,427,019 | ) | ||||
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Cash flows from financing activities | ||||||||
Proceeds from (repayment of) short-term borrowings, net | 198,766 | 849,287 | ||||||
Proceeds from long-term borrowings and debt securities | 7,520,906 | 6,999,686 | ||||||
Repayment of long-term borrowings and debt securities | (5,279,770 | ) | (3,827,361 | ) | ||||
Payment of lease liabilities | (353,977 | ) | (264,809 | ) | ||||
Settlement of derivative instruments, net | 106,247 | 36,252 | ||||||
Change in non-controlling interest | 9,806 | 5,203 | ||||||
Dividends paid (hybrid bond) | (6,692 | ) | (6,692 | ) | ||||
Dividends paid | (67,011 | ) | (70,955 | ) | ||||
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Net cash provided by financing activities | 2,128,275 | 3,720,611 | ||||||
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Net decrease in cash and cash equivalents before effect of exchange rate fluctuations | (74,279 | ) | (44,542 | ) | ||||
Effect of exchange rate fluctuations on cash held | 11,390 | (5,686 | ) | |||||
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Net decrease in cash and cash equivalents | (62,889 | ) | (50,228 | ) | ||||
Cash and cash equivalents at January 1 | 1,810,129 | 1,358,345 | ||||||
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Cash and cash equivalents at June 30 | 1,308,117 | |||||||
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The accompanying notes are an integral part of the consolidated interim financial statements.
11
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements
June 30, 2020
(Unaudited)
1. | Reporting Entity (Description of the controlling company) |
Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in Korean International Financial Reporting Standards (“KIFRS”) 1110 ‘Consolidated Financial Statements’, was incorporated on January 1, 1982 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO also provides power plant construction services. KEPCO’s stock was listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju, Jeollanam-do.
As of June 30, 2020, KEPCO’s share capital amounts to3,209,820 million and KEPCO’s shareholders are as follows:W
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 | % | |||||
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641,964,077 | 100.00 | % | ||||||
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(*) | The number of shares held by foreign shareholders are 130,987,974 shares (20.40%) as of the most recent closing date of Register of Shareholders (June 15, 2020). |
In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.
2. | Basis of Preparation |
(1) | Statement of compliance |
These consolidated interim financial statements have been prepared in accordance with KIFRS 1034 ‘Interim Financial Reporting’ as part of the period covered by KEPCO and subsidiaries’ (the “Group”) KIFRS annual financial statements.
(2) | Basis of measurement |
These consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statements of financial position:
• | financial assets at fair value through profit or loss |
• | financial assets at fair value through other comprehensive income or loss |
• | derivative financial instruments are measured at fair value |
• | liabilities for defined benefit plans are recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets |
(3) | Functional and presentation currency |
These consolidated financial statements are presented in Korean won (“Won”), which is KEPCO’s functional currency and the currency of the primary economic environment in which the Group operates.
12
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
2. | Basis of Preparation, Continued |
(4) | Use of estimates and judgments |
The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
(i) | Useful lives of property, plant and equipment, and estimations on provision for decommissioning costs |
The Group reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Management’s assumptions could affect the determination of estimated economic useful lives.
The Group records the fair value of estimated decommissioning costs as a liability in the period in which the Group incurs a legal obligation associated with the retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. The Group is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.
(ii) | Deferred tax |
The Group recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities of each consolidated taxpaying entity. However, the amount of deferred tax assets may be different if the Group does not realize estimated future taxable income during the carryforward periods.
(iii) | Valuations of financial instruments at fair values |
The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
(iv) | Defined employee benefit liabilities |
The Group offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).
13
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
2. | Basis of Preparation, Continued |
(4) | Use of estimates and judgments, continued |
(v) | Unbilled revenue |
Energy delivered but not metered nor billed is estimated at the reporting date based on consumption statistics and selling price estimates. Determination of the unbilled revenues at the end of the reporting period is sensitive to the estimated consumptions and prices based on statistics. Unbilled revenue recognized as of June 30, 2020 and 2019 areW1,200,336 million andW1,189,843 million, respectively.
(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.
14
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
2. | Basis of Preparation, Continued |
(5) | Changes in accounting policies |
Changes in accounting standards effective from January 1, 2020 are as follows. The Group believes that these amendments have no significant impact on the Group’s consolidated interim financial statements. The Group has not applied the new and revised standards in issue but not yet effective for the periods starting from January 1, 2020, even though the early adoption of these standards is possible.
Amendments to KIFRS 1103 Business Combination - Definition of a Business
The amendment to KIFRS 1103 clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Furthermore, it clarified that a business can exist without including all of the inputs and processes needed to create outputs.
Amendments to KIFRS 1107 Financial Instruments : disclosures, KIFRS 1109 Financial Instruments, and KIFRS 1039 Financial Instruments : Recognition and Measurements – Interest Rate Benchmark Reform
The amendments to KIFRS 1109 and KIFRS 1039 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument.
Amendments to KIFRS 1001 Presentation of Financial Statements and KIFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Material
The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.”
The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users.
The Conceptual Framework for Financial Reporting
The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the KASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards.
The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts.
3. | Significant Accounting Policies |
The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2019.
15
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
4. | Segment, Geographic and Other Information |
(1) | Segment determination and explanation of the measurements |
The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by the Group’s the chief operating decision maker, the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Group’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation (Non-nuclear)’, ‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Group’s foreign operations.
Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under KIFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arms-length basis at market prices that would be applicable to an independent third-party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidation adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.
16
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(2) | Financial information of the segments for the three and six-month periods ended June 30, 2020 and 2019, respectively, are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | Total segment revenue | Intersegment revenue | Revenue from external customers | Operating Profit (loss) | Depreciation and amortization | Interest income | Interest expense | Profit (loss) related associates, joint ventures and subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Transmission and distribution | 27,855,438 | 308,207 | 622,550 | 12,641,598 | 27,232,888 | 511,584 | (35,737 | ) | 953,481 | 1,891,259 | 13,274 | 29,555 | 189,008 | 389,396 | (10,308 | ) | 119,577 | |||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Nuclear) | 2,313,385 | 4,798,440 | 2,267,478 | 4,723,706 | 45,907 | 74,734 | 301,691 | 629,119 | 898,674 | 1,779,294 | 5,968 | 11,913 | 124,358 | 248,714 | (363 | ) | (1,350 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Non-nuclear) | 4,331,240 | 10,252,902 | 4,149,281 | 9,822,314 | 181,959 | 430,588 | (475,019 | ) | 111,882 | 1,009,093 | 1,998,647 | 6,049 | 11,616 | 158,632 | 319,242 | 8,858 | 84,240 | |||||||||||||||||||||||||||||||||||||||||||||||
Plant maintenance & engineering service | 615,533 | 1,161,160 | 557,986 | 970,706 | 57,547 | 190,454 | 33,143 | 65,071 | 29,502 | 59,037 | 3,310 | 6,866 | 403 | 893 | 2,505 | 4,047 | ||||||||||||||||||||||||||||||||||||||||||||||||
Others | 406,081 | 764,771 | 260,559 | 527,775 | 145,522 | 236,996 | 41,351 | 77,288 | 32,498 | 59,892 | 43,921 | 87,118 | 42,580 | 79,075 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation adjustments | (7,543,511 | ) | (16,667,051 | ) | (7,543,511 | ) | (16,667,051 | ) | — | — | (22,940 | ) | (27,259 | ) | (38,909 | ) | (64,717 | ) | (8,453 | ) | (16,492 | ) | (10,492 | ) | (16,447 | ) | — | — | ||||||||||||||||||||||||||||||||||||
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28,165,660 | — | — | 13,072,533 | 28,165,660 | 389,810 | 820,364 | 2,884,339 | 5,723,412 | 64,069 | 130,576 | 504,489 | 1,020,873 | 692 | 206,514 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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In millions of won | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | Total segment revenue | Intersegment revenue | Revenue from external customers | Operating Profit (loss) | Depreciation and amortization | Interest income | Interest expense | Profit (loss) related associates, joint ventures and subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | Three- month period ended | Six-month period ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Transmission and distribution | 28,242,598 | 349,872 | 731,943 | 12,775,038 | 27,510,656 | 259,763 | (2,151,618 | ) | 920,147 | 1,803,721 | 17,026 | 36,117 | 195,859 | 381,867 | 7,031 | 152,100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Nuclear) | 2,036,486 | 4,593,449 | 2,056,634 | 4,590,868 | (20,148 | ) | 2,581 | 145,771 | 801,533 | 814,412 | 1,588,427 | 8,721 | 17,623 | 128,006 | 255,753 | 748 | 2,279 | |||||||||||||||||||||||||||||||||||||||||||||||
Electric power generation (Non-nuclear) | 4,438,608 | 11,796,262 | 4,285,900 | 11,344,452 | 152,708 | 451,810 | (801,897 | ) | 301,023 | 976,666 | 1,941,134 | 6,220 | 11,560 | 165,046 | 331,323 | 6,456 | 43,081 | |||||||||||||||||||||||||||||||||||||||||||||||
Plant maintenance & engineering service | 663,006 | 1,162,488 | 575,005 | 1,001,391 | 88,001 | 161,097 | 94,337 | 130,833 | 33,224 | 64,021 | 3,248 | 7,013 | 620 | 2,055 | 1,263 | (574 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Others | 247,785 | 468,139 | 172,410 | 274,905 | 75,375 | 193,234 | 18,556 | 49,890 | 18,029 | 39,171 | 35,254 | 66,623 | 31,557 | 61,039 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation adjustments | (7,439,821 | ) | (17,943,558 | ) | (7,439,821 | ) | (17,943,559 | ) | — | — | (15,189 | ) | (60,200 | ) | (28,534 | ) | (46,457 | ) | (7,194 | ) | (14,357 | ) | (7,936 | ) | (15,508 | ) | — | — | ||||||||||||||||||||||||||||||||||||
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28,319,378 | — | — | 13,070,974 | 28,319,378 | (298,659 | ) | (928,539 | ) | 2,733,944 | 5,390,017 | 63,275 | 124,579 | 513,152 | 1,016,529 | 15,498 | 196,886 | ||||||||||||||||||||||||||||||||||||||||||||||||
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17
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(3) | Information related to segment assets and segment liabilities as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
Segment | Segment assets | Investments in associates and joint ventures | Acquisition of non-current assets | Segment liabilities | ||||||||||||
Transmission and distribution | 3,770,560 | 3,689,752 | 59,665,959 | |||||||||||||
Electric power generation (Nuclear) | 60,761,501 | 71,579 | 1,327,846 | 34,843,299 | ||||||||||||
Electric power generation (Non-nuclear) | 54,965,196 | 2,191,385 | 1,912,778 | 33,622,353 | ||||||||||||
Plant maintenance & engineering service | 3,501,542 | 52,734 | 58,402 | 1,148,829 | ||||||||||||
Others | 8,719,811 | — | 237,148 | 4,003,678 | ||||||||||||
Consolidation adjustments | (37,772,185 | ) | — | (212,952 | ) | (1,018,936 | ) | |||||||||
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6,086,258 | 7,012,974 | 132,265,182 | ||||||||||||||
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In millions of won | ||||||||||||||||
December 31, 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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(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 and non-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) | ||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||
Geographical unit | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | ||||||||||||||||||||
Domestic | 27,494,423 | 12,702,461 | 27,591,897 | 171,751,766 | 169,366,365 | |||||||||||||||||||
Overseas (*1) | 361,222 | 671,237 | 368,513 | 727,481 | 2,843,943 | 2,743,755 | ||||||||||||||||||
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28,165,660 | 13,070,974 | 28,319,378 | 174,595,709 | 172,110,120 | ||||||||||||||||||||
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(*1) | Middle East and other Asian countries make up the majority of overseas revenue and non-current assets. Since the overseas revenue or non-current assets attributable to particular countries are not material, they are not disclosed individually. |
(*2) | Amounts exclude financial assets, defined benefit assets and deferred tax assets. |
18
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
4. | Segment, Geographic and Other Information, Continued |
(5) | Information on significant customers |
There is no individual customer comprising more than 10% of the Group’s revenue for the six-month periods ended June 30, 2020 and 2019.
5. | Classification of Financial Instruments |
(1) | Classification of financial assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Financial assets at fair value through profit or loss | Financial assets at fair value through other comprehensive income | Financial assets at amortized cost | Derivative assets (applying hedge accounting) | Total | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | — | 1,747,240 | — | 1,747,240 | ||||||||||||||||
Current financial assets | ||||||||||||||||||||
Current financial assets at fair value through profit or loss | 700,808 | — | — | — | 700,808 | |||||||||||||||
Current financial assets at amortized costs | — | — | 13,354 | — | 13,354 | |||||||||||||||
Current derivative assets | 4,088 | — | — | 58,708 | 62,796 | |||||||||||||||
Other financial assets | — | — | 2,024,946 | — | 2,024,946 | |||||||||||||||
Trade and other receivables | — | — | 6,933,289 | — | 6,933,289 | |||||||||||||||
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704,896 | — | 10,718,829 | 58,708 | 11,482,433 | ||||||||||||||||
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Non-current assets | ||||||||||||||||||||
Non-current financial assets | ||||||||||||||||||||
Non-current financial assets at fair value through profit or loss | 633,220 | — | — | — | 633,220 | |||||||||||||||
Non-current financial assets at fair value through other comprehensive income | — | 322,158 | — | — | 322,158 | |||||||||||||||
Non-current financial assets at amortized costs | — | — | 1,319 | — | 1,319 | |||||||||||||||
Non-current derivative assets | 417,191 | — | — | 230,283 | 647,474 | |||||||||||||||
Other financial assets | — | — | 1,217,819 | — | 1,217,819 | |||||||||||||||
Trade and other receivables | — | — | 2,030,781 | — | 2,030,781 | |||||||||||||||
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1,050,411 | 322,158 | 3,249,919 | 230,283 | 4,852,771 | ||||||||||||||||
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322,158 | 13,968,748 | 288,991 | 16,335,204 | |||||||||||||||||
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19
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(1) | Classification of financial assets as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won | December 31, 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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20
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(2) | Classification of financial liabilities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Financial liabilities at fair value through profit or loss | Financial liabilities recognized at amortized cost | Derivative liabilities (applying hedge accounting) | Total | |||||||||||||
Current liabilities | ||||||||||||||||
Borrowings | 1,448,682 | — | 1,448,682 | |||||||||||||
Debt securities | — | 6,652,378 | — | 6,652,378 | ||||||||||||
Derivative liabilities | 9,082 | — | 57,383 | 66,465 | ||||||||||||
Trade and other payables | — | 5,710,156 | — | 5,710,156 | ||||||||||||
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9,082 | 13,811,216 | 57,383 | 13,877,681 | |||||||||||||
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Non-current liabilities | ||||||||||||||||
Borrowings | — | 3,498,927 | — | 3,498,927 | ||||||||||||
Debt securities | — | 59,109,116 | — | 59,109,116 | ||||||||||||
Derivative liabilities | 49,816 | — | 53,224 | 103,040 | ||||||||||||
Trade and other payables | — | 7,046,470 | — | 7,046,470 | ||||||||||||
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49,816 | 69,654,513 | 53,224 | 69,757,553 | |||||||||||||
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83,465,729 | 110,607 | 83,635,234 | ||||||||||||||
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In millions of won | December 31, 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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21
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
5. | Classification of Financial Instruments, Continued |
(3) | Classification of comprehensive income (loss) from financial instruments for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||||
Cash and cash equivalents | Interest income | 24,126 | 17,350 | 35,245 | ||||||||||||||
Gain (Loss) on foreign currency transactions and translations | (507 | ) | 12,945 | (356 | ) | (53 | ) | |||||||||||
Financial assets at fair value through profit or loss | Interest income | 6,359 | 9,081 | 2,569 | 3,255 | |||||||||||||
Gain on valuation of financial assets | 3,015 | 9,015 | 3,830 | 8,095 | ||||||||||||||
Gain (loss) on disposal of financial assets | 3,508 | 3,461 | (89 | ) | 703 | |||||||||||||
Loss on foreign currency transactions and translations | (138 | ) | (138 | ) | — | — | ||||||||||||
Financial assets at fair value through other comprehensive income | Dividends income | 4,043 | 4,085 | 2,427 | 3,740 | |||||||||||||
Financial assets at amortized cost | Interest income | 231 | 321 | 7 | 25 | |||||||||||||
Gain (Loss) on foreign currency transactions and translations | (461 | ) | 791 | (433 | ) | (428 | ) | |||||||||||
Loans | Interest income | 19,167 | 32,519 | 13,364 | 26,038 | |||||||||||||
Gain (Loss) on foreign currency transactions and translations | (151 | ) | 252 | (108 | ) | (573 | ) | |||||||||||
Trade and other receivables | Interest income | 9,801 | 22,294 | 22,004 | 41,032 | |||||||||||||
Gain (Loss) on foreign currency transactions and translations | (8,636 | ) | 11,879 | 10,833 | 7,186 | |||||||||||||
Short-term financial instruments | Interest income | 8,530 | 17,032 | 7,835 | 18,686 | |||||||||||||
Gain (Loss) on foreign currency transactions and translations | (19,384 | ) | 25,449 | 12,611 | 27,266 | |||||||||||||
Long-term financial instruments | Interest income | 3,589 | 6,451 | — | 1 | |||||||||||||
Other financial assets | Interest income | 9,527 | 18,752 | 146 | 297 | |||||||||||||
Financial liabilities carried at amortized cost | Interest expense of borrowings and debt securities | 348,995 | 706,503 | 352,919 | 699,869 | |||||||||||||
Loss on repayment of financial liabilities | (30 | ) | (30 | ) | — | — | ||||||||||||
Interest expense of trade and other payables | 47,195 | 97,988 | 2,929 | 31,306 | ||||||||||||||
Interest expense of others | 108,300 | 216,382 | 157,304 | 285,354 | ||||||||||||||
Other finance income | 138 | 287 | — | — | ||||||||||||||
Gain (Loss) on foreign currency transactions and translations | 246,025 | (529,122 | ) | (219,315 | ) | (429,017 | ) | |||||||||||
Derivative assets (trading) | Gain (Loss) on valuation of derivatives | (2,729 | ) | 246,091 | 78,944 | 160,854 | ||||||||||||
Gain (Loss) on transaction of derivatives | (5,339 | ) | 14,997 | 18,894 | 31,895 | |||||||||||||
Derivatives (applying hedge accounting) | Gain (Loss) on valuation of derivatives (profit or loss) | (104,038 | ) | 124,137 | 76,662 | 150,329 | ||||||||||||
Gain on valuation of derivatives (equity, before tax) | 45,354 | 77,697 | 19,529 | 34,163 | ||||||||||||||
Gain on transaction of derivatives | 60,234 | 67,814 | 4,386 | 16,867 |
22
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
6. | Restricted Deposits |
Restricted deposits as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||
Cash and cash equivalents | Escrow | — | ||||||||
Deposits for government project and others | 6,823 | 9,287 | ||||||||
Collateral provided for borrowings | 73,311 | 63,198 | ||||||||
Collateral provided for lawsuit | 2 | 3 | ||||||||
Deposits for transmission regional support program | 9,971 | 3,002 | ||||||||
Short-term financial instruments | Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others | 106,500 | 93,000 | |||||||
Non-current financial assets at fair value through profit or loss | Decommissioning costs of nuclear power plants | 540,729 | 541,969 | |||||||
Long-term financial instruments | Escrow | 98 | 74 | |||||||
Guarantee deposits for banking accounts at oversea branches | 338 | 326 | ||||||||
Collateral provided for borrowings | 11,745 | 11,745 | ||||||||
Decommissioning costs of nuclear power plants | 288,282 | 250,464 | ||||||||
Funds for developing small and medium enterprises (*) | 200,000 | 200,000 | ||||||||
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1,173,068 | ||||||||||
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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 June 30, 2020 and December 31, 2019. |
7. | Cash and Cash Equivalents |
Cash and cash equivalents as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Cash | 266 | |||||||
Other demand deposits | 1,256,673 | 1,117,499 | ||||||
Short-term deposits classified as cash equivalents | 260,222 | 527,235 | ||||||
Short-term investments classified as cash equivalents | 227,532 | 165,129 | ||||||
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1,810,129 | ||||||||
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23
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
8. | Trade and Other Receivables |
(1) | Trade and other receivables as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Trade receivables | (218,942 | ) | — | 6,333,519 | ||||||||||||
Other receivables | 637,407 | (35,958 | ) | (1,679 | ) | 599,770 | ||||||||||
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7,189,868 | (254,900 | ) | (1,679 | ) | 6,933,289 | |||||||||||
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| |||||||||
Non-current assets | ||||||||||||||||
Trade receivables | 293,899 | (203 | ) | — | 293,696 | |||||||||||
Other receivables | 1,830,379 | (88,924 | ) | (4,370 | ) | 1,737,085 | ||||||||||
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2,124,278 | (89,127 | ) | (4,370 | ) | 2,030,781 | |||||||||||
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(344,027 | ) | (6,049 | ) | 8,964,070 | ||||||||||||
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| |||||||||
In millions of won | December 31, 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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24
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
8. | Trade and Other Receivables, Continued |
(2) | Other receivables as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Gross amount | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Current assets | ||||||||||||||||
Non-trade receivables | (35,647 | ) | — | 188,706 | ||||||||||||
Accrued income | 69,279 | — | — | 69,279 | ||||||||||||
Deposits | 262,417 | — | (1,679 | ) | 260,738 | |||||||||||
Finance lease receivables | 58,967 | (311 | ) | — | 58,656 | |||||||||||
Others | 22,391 | — | ��� | 22,391 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
637,407 | (35,958 | ) | (1,679 | ) | 599,770 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-current assets | ||||||||||||||||
Non-trade receivables | 184,253 | (79,836 | ) | — | 104,417 | |||||||||||
Accrued income | 952 | — | — | 952 | ||||||||||||
Deposits | 367,769 | — | (4,370 | ) | 363,399 | |||||||||||
Finance lease receivables | 1,163,023 | (325 | ) | — | 1,162,698 | |||||||||||
Others | 114,382 | (8,763 | ) | — | 105,619 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
1,830,379 | (88,924 | ) | (4,370 | ) | 1,737,085 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
(124,882 | ) | (6,049 | ) | 2,336,855 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
In millions of won | December 31, 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 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
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 | |||||||||||
|
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|
|
|
|
|
| |||||||||
(114,155 | ) | (6,976 | ) | 2,430,946 | ||||||||||||
|
|
|
|
|
|
|
|
(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 |
25
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
8. | Trade and Other Receivables, Continued |
(4) | Aging analysis of trade receivables as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Trade receivables: (not overdue) | 7,338,757 | |||||||
|
|
|
| |||||
Trade receivables: (impairment reviewed) | 306,204 | 147,187 | ||||||
|
|
|
| |||||
Less than 60 days | 4,008 | 6,555 | ||||||
60 ~ 90 days | 31,455 | 1,899 | ||||||
90 ~ 120 days | 9,705 | 2,106 | ||||||
120 days ~ 1 year | 50,210 | 37,357 | ||||||
Over 1 year | 210,826 | 99,270 | ||||||
|
|
|
| |||||
6,846,360 | 7,485,944 | |||||||
Less: allowance for doubtful accounts | (219,145 | ) | (212,759 | ) | ||||
Less: present value discount | — | (382 | ) | |||||
|
|
|
| |||||
7,272,803 | ||||||||
|
|
|
|
At the end of each reporting period, the Group assesses whether the credit to trade receivables is impaired. The Group recognizes loss allowances for trade receivables individually when there is any objective evidence that trade receivables are impaired and significant, and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Group recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.
(5) | Changes in the allowance for doubtful accounts for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Trade receivables | Other receivables | Trade receivables | Other receivables | |||||||||||||
Beginning balance | 114,155 | 215,868 | 104,726 | |||||||||||||
Bad debt expense | 22,183 | 7,188 | 29,221 | 19,206 | ||||||||||||
Write-off, etc. | (6,551 | ) | (633 | ) | (10,106 | ) | (1,146 | ) | ||||||||
Reversals | (3,217 | ) | — | (41,940 | ) | — | ||||||||||
Others | (6,029 | ) | 4,172 | 19,716 | (8,631 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Ending balance | 124,882 | 212,759 | 114,155 | |||||||||||||
|
|
|
|
|
|
|
|
26
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
9. | Financial Assets at Fair Value through Profit or Loss |
Financial assets at fair value through profit or loss as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Financial assets at fair value through profit or loss | ||||||||||||||||
Beneficiary Certificate | 146,315 | 894 | 160,952 | |||||||||||||
Cooperative | — | 5,460 | — | 5,155 | ||||||||||||
Others (*) | 669,596 | 283,555 | 130,491 | 244,857 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
700,808 | 435,330 | 131,385 | 410,964 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Financial assets designated as at fair value through profit or loss | ||||||||||||||||
Debt with embedded derivatives | — | 197,890 | — | 150,916 | ||||||||||||
Others | — | — | — | 53,996 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
— | 197,890 | — | 204,912 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
633,220 | 131,385 | 615,876 | ||||||||||||||
|
|
|
|
|
|
|
|
(*) | ‘Others’ include MMT, etc. |
27
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
10. | Financial Assets at Fair Value through Other Comprehensive Income |
(1) | Changes in financial assets at fair value through other comprehensive income for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||
Beginning balance | Acquisitions | Disposals | Valuation | Others | Ending balance | |||||||||||||||||||
Listed | — | — | (59,179 | ) | (200 | ) | 141,822 | |||||||||||||||||
Unlisted | 177,969 | 2,900 | (1 | ) | (163 | ) | (369 | ) | 180,336 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
379,170 | 2,900 | (1 | ) | (59,342 | ) | (569 | ) | 322,158 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Current financial assets at fair value through other comprehensive income | — | — | — | — | — | |||||||||||||||||||
Non-current financial assets at fair value through other comprehensive income | 379,170 | 2,900 | (1 | ) | (59,342 | ) | (569 | ) | 322,158 |
In millions of won | December 31, 2019 | |||||||||||||||||||||||
Beginning balance | Acquisitions | Disposals | Valuation | 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 |
28
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
10. | Financial Assets at Fair Value through Other Comprehensive Income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Shares | Ownership | Acquisition cost | Book value | Fair value | ||||||||||||||||
Listed | ||||||||||||||||||||
Korea District Heating Corp. | 2,264,068 | 19.55 | % | 73,469 | 73,469 | |||||||||||||||
Ssangyong Motor Co., Ltd. | 38,568 | 0.03 | % | 428 | 124 | 124 | ||||||||||||||
SM Korea Line Corp. | 18 | 0.00 | % | 1 | — | — | ||||||||||||||
Namkwang Engineering & Construction Co., Ltd. | 121 | 0.00 | % | 15 | — | — | ||||||||||||||
Bumyang Construction Co., Ltd. | 35 | 0.00 | % | 2 | — | — | ||||||||||||||
ELCOMTEC Co., Ltd. | 32,875 | 0.04 | % | 217 | 59 | 59 | ||||||||||||||
PAN Ocean Co., Ltd. | 1,492 | 0.00 | % | 14 | 6 | 6 | ||||||||||||||
Dongbu Corp. | 955 | 0.00 | % | 12 | 9 | 9 | ||||||||||||||
KSP Co., Ltd. | 22,539 | 0.06 | % | 24 | 37 | 37 | ||||||||||||||
STX Heavy Industries Co., Ltd. | 8,639 | 0.03 | % | 213 | 19 | 19 | ||||||||||||||
Codes Combine Co., Ltd. | 291 | 0.00 | % | 1 | 1 | 1 | ||||||||||||||
PT Adaro Energy Tbk | 480,000,000 | 1.50 | % | 65,028 | 40,262 | 40,262 | ||||||||||||||
Energy Fuels Inc. | 1,711,814 | 1.49 | % | 16,819 | 3,070 | 3,070 | ||||||||||||||
Bunji Corporation Limited | 99,763 | 0.07 | % | 18,445 | — | — | ||||||||||||||
Denison Mines Corp. | 58,284,000 | �� | 9.76 | % | 84,134 | 24,594 | 24,594 | |||||||||||||
Fission 3.0 | 75,000 | 0.05 | % | — | 3 | 3 | ||||||||||||||
Fission Uranium Corp. | 800,000 | 0.16 | % | 785 | 169 | 169 | ||||||||||||||
|
|
|
|
|
| |||||||||||||||
359,339 | 141,822 | 141,822 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Unlisted (*1) | ||||||||||||||||||||
Intellectual Discovery Co., Ltd. | 1,000,000 | 6.00 | % | 5,000 | 954 | 954 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.14 | % | 200 | 200 | 200 | ||||||||||||||
PT. Kedap Sayaaq | 671 | 10.00 | % | 18,540 | — | — | ||||||||||||||
Set Holding (*2) | 1,100,220 | 2.50 | % | 229,255 | 166,865 | 166,865 | ||||||||||||||
SMG Energy Co., Ltd. | 580,000 | 5.00 | % | 2,900 | 2,900 | 2,900 | ||||||||||||||
PT. Cirebon Energi Prasarana | 22,420 | 10.00 | % | 2,612 | 2,693 | 2,693 | ||||||||||||||
Seobu Highway Solar Co., Ltd. | 19,460 | 2.86 | % | 195 | 195 | 195 | ||||||||||||||
Dongbu Highway Solar Co., Ltd. | 19,020 | 4.99 | % | 190 | 190 | 190 | ||||||||||||||
Others (*3) | 9,968 | 6,339 | 6,339 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
268,860 | 180,336 | 180,336 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||
322,158 | 322,158 | |||||||||||||||||||
|
|
|
|
|
|
(*1) | The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide. |
(*2) | The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the six-month period ended June 30, 2020. |
(*3) | Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 258 companies including Hwan Young Steel Ind. Co., Ltd. |
29
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
10. | Financial Assets at Fair Value through Other Comprehensive Income, Continued |
(2) | Financial assets at fair value through other comprehensive income as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won | December 31, 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 | 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 | % | 5,000 | 954 | 954 | ||||||||||||||
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 Co., Ltd. | 298,300 | 19.00 | % | 1,491 | 1,491 | 1,491 | ||||||||||||||
Smart Power Co., Ltd. | 133,333 | 4.14 | % | 200 | 200 | 200 | ||||||||||||||
PT. Kedap Sayaaq | 671 | 10.00 | % | 18,540 | — | — | ||||||||||||||
Set Holding (*2) | 1,100,220 | 2.50 | % | 229,255 | 166,863 | 166,863 | ||||||||||||||
PT. Cirebon Energi Prasarana | 22,420 | 10.00 | % | 2,612 | 2,596 | 2,596 | ||||||||||||||
Others (*3) | — | 9,235 | 5,480 | 5,480 | ||||||||||||||||
|
|
|
|
|
| |||||||||||||||
266,717 | 177,968 | 177,968 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||
379,170 | 379,170 | |||||||||||||||||||
|
|
|
|
|
|
(*1) | The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide. |
(*2) | The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2019. |
(*3) | Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 224 companies including Borneo Co., Ltd. |
30
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
11. | Financial Assets at Amortized Cost |
Financial assets at amortized cost as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 1,673 | ||||||||||||||||
Others | 13,000 | — | — | — | 13,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
— | — | — | 14,673 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Current | — | — | — | 13,354 | ||||||||||||||||
Non-current | 1,319 | — | — | — | 1,319 | |||||||||||||||
In millions of won | December 31, 2019 | |||||||||||||||||||
Financial assets at amortized cost | Government grants | Allowance for doubtful accounts | Others | Book value | ||||||||||||||||
Government bonds | — | — | — | 1,609 | ||||||||||||||||
Others | 12,000 | — | — | — | 12,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
— | — | — | 13,609 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Current | — | — | — | 12,302 | ||||||||||||||||
Non-current | 1,307 | — | — | — | 1,307 |
12. | Derivatives |
(1) | Derivatives as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Derivative assets | ||||||||||||||||
Currency forward | 72,025 | 21 | 43,931 | |||||||||||||
Currency swap | 58,707 | 562,184 | 27,597 | 229,258 | ||||||||||||
Interest rate swap | — | 10,631 | — | 7,592 | ||||||||||||
Others (*1) | — | 2,634 | — | 2,634 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
647,474 | 27,618 | 283,415 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative liabilities | ||||||||||||||||
Currency forward | — | 7,081 | — | |||||||||||||
Currency swap | 56,400 | 18,740 | 59,327 | 45,184 | ||||||||||||
Interest rate swap | 983 | 83,309 | 451 | 50,756 | ||||||||||||
Others (*2, 3) | 6,205 | 991 | 6,205 | 956 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
103,040 | 73,064 | 96,896 | ||||||||||||||
|
|
|
|
|
|
|
|
(*1) | 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) | As described in Note 46, 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. |
31
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of June 30, 2020 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 | |||||||||||||||
Shinhan Bank | 2020.06.10 | 2020.07.02 | 808 | USD 677 | 1,193.37 | |||||||||||||||
JP Morgan | 2020.06.23 | 2020.07.13 | 18,362 | USD 15,173 | 1,210.20 | |||||||||||||||
Woori Bank | 2020.06.26 | 2020.07.13 | 11,431 | USD 9,538 | 1,198.42 | |||||||||||||||
Citibank | 2020.06.30 | 2020.07.14 | 23,858 | USD 19,889 | 1,199.55 | |||||||||||||||
Kookmin Bank | 2020.05.28 | 2020.07.02 | 2,480 | USD 2,000 | 1,239.85 | |||||||||||||||
Morgan Stanley | 2020.06.01 | 2020.07.06 | 6,146 | USD 5,000 | 1,229.16 | |||||||||||||||
Mizuho Bank | 2020.06.01 | 2020.07.07 | 6,126 | USD 5,000 | 1,225.25 | |||||||||||||||
Shinhan Bank | 2020.06.01 | 2020.08.24 | 6,337 | USD 5,163 | 1,227.35 | |||||||||||||||
CCB | 2020.06.02 | 2020.07.07 | 6,113 | USD 5,000 | 1,222.55 | |||||||||||||||
Hana Bank | 2020.06.03 | 2020.07.09 | 6,110 | USD 5,000 | 1,222.05 | |||||||||||||||
Shinhan Bank | 2020.06.03 | 2020.08.17 | 7,619 | USD 6,255 | 1,218.10 | |||||||||||||||
Shinhan Bank | 2020.06.03 | 2020.08.19 | 9,161 | USD 7,521 | 1,218.18 | |||||||||||||||
Shinhan Bank | 2020.06.05 | 2020.09.02 | 6,969 | USD 5,732 | 1,215.75 | |||||||||||||||
Hana Bank | 2020.06.08 | 2020.07.13 | 6,025 | USD 5,000 | 1,205.00 | |||||||||||||||
Standard Chartered | 2020.06.09 | 2020.07.15 | 4,788 | USD 4,000 | 1,197.00 | |||||||||||||||
Credit Agricole | 2020.06.11 | 2020.07.16 | 5,943 | USD 5,000 | 1,188.55 | |||||||||||||||
Woori Bank | 2020.06.18 | 2020.07.20 | 6,065 | USD 5,000 | 1,213.00 | |||||||||||||||
CCB | 2020.06.18 | 2020.07.22 | 6,062 | USD 5,000 | 1,212.40 | |||||||||||||||
Nonghyup Bank | 2020.06.22 | 2020.07.23 | 6,059 | USD 5,000 | 1,211.70 | |||||||||||||||
Hana Bank | 2020.06.24 | 2020.07.27 | 6,034 | USD 5,000 | 1,206.80 | |||||||||||||||
Standard Chartered | 2020.06.24 | 2020.07.29 | 6,020 | USD 5,000 | 1,203.95 | |||||||||||||||
Mizuho Bank | 2020.06.25 | 2020.07.30 | 4,811 | USD 4,000 | 1,202.65 | |||||||||||||||
Korea Development Bank | 2020.06.29 | 2020.08.03 | 5,998 | USD 5,000 | 1,199.55 | |||||||||||||||
CCB | 2020.06.15 | 2020.07.06 | 4,843 | USD 4,000 | 1,210.65 | |||||||||||||||
CCB | 2020.06.18 | 2020.07.06 | 3,639 | USD 3,000 | 1,213.10 | |||||||||||||||
BNP Paribas | 2020.06.18 | 2020.07.06 | 9,098 | USD 7,500 | 1,213.05 | |||||||||||||||
Hana Bank | 2020.06.19 | 2020.07.13 | 6,060 | USD 5,000 | 1,211.90 | |||||||||||||||
Korea Development Bank | 2020.06.19 | 2020.07.06 | 21,575 | USD 17,800 | 1,212.10 | |||||||||||||||
MUFG | 2020.06.22 | 2020.07.13 | 5,458 | USD 4,500 | 1,212.90 | |||||||||||||||
Korea Development Bank | 2020.06.23 | 2020.07.13 | 6,049 | USD 5,000 | 1,209.85 | |||||||||||||||
Mizuho Bank | 2020.06.24 | 2020.07.23 | 4,812 | USD 4,000 | 1,202.88 | |||||||||||||||
Hana Bank | 2020.06.25 | 2020.07.23 | 3,616 | USD 3,000 | 1,205.21 | |||||||||||||||
Korea Development Bank | 2020.06.26 | 2020.07.23 | 2,997 | USD 2,500 | 1,198.65 | |||||||||||||||
Nova Scotia | 2020.06.01 | 2020.07.03 | 6,129 | USD 5,000 | 1,225.70 | |||||||||||||||
MUFG | 2020.06.03 | 2020.07.06 | 7,295 | USD 6,000 | 1,215.75 | |||||||||||||||
Standard Chartered | 2020.06.03 | 2020.07.06 | 7,293 | USD 6,000 | 1,215.45 | |||||||||||||||
Nova Scotia | 2020.06.05 | 2020.07.09 | 7,292 | USD 6,000 | 1,215.41 | |||||||||||||||
BNP Paribas | 2020.06.05 | 2020.07.09 | 6,074 | USD 5,000 | 1,214.75 | |||||||||||||||
MUFG | 2020.06.05 | 2020.07.09 | 1,775 | USD 1,461 | 1,214.50 | |||||||||||||||
HSBC | 2020.06.05 | 2020.07.23 | 2,594 | USD 2,145 | 1,209.45 | |||||||||||||||
Nova Scotia | 2020.06.10 | 2020.07.13 | 7,154 | USD 6,000 | 1,192.35 | |||||||||||||||
BNP Paribas | 2020.06.10 | 2020.07.13 | 5,956 | USD 5,000 | 1,191.10 | |||||||||||||||
Nonghyup Bank | 2020.06.10 | 2020.07.13 | 7,160 | USD 6,000 | 1,193.35 | |||||||||||||||
HSBC | 2020.06.10 | 2020.07.13 | 3,572 | USD 3,000 | 1,190.75 | |||||||||||||||
Nova Scotia | 2020.06.24 | 2020.07.27 | 6,002 | USD 5,000 | 1,200.45 | |||||||||||||||
HSBC | 2020.06.24 | 2020.07.27 | 6,001 | USD 5,000 | 1,200.25 | |||||||||||||||
HSBC | 2019.12.13 | 2020.09.10 | 46,580 | USD 40,000 | 1,164.50 |
32
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(2) | Currency forward contracts which are not designated as hedging instruments as of June 30, 2020 are as follows, continued: |
In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty | Contract date | Maturity date | Contract amounts | Contract exchange rate (in won) | ||||||||||||||||
Pay | Receive | |||||||||||||||||||
Nova Scotia | 2019.12.13 | 2020.09.10 | USD 30,000 | |||||||||||||||||
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 | |||||||||||||||
Suhyup Bank | 2020.06.05 | 2020.07.06 | 3,645 | USD 3,000 | 1,215.10 | |||||||||||||||
Nonghyup Bank | 2020.06.09 | 2020.07.06 | 4,794 | USD 4,000 | 1,198.40 | |||||||||||||||
Nova Scotia | 2020.06.09 | 2020.07.06 | 3,593 | USD 3,000 | 1,197.57 | |||||||||||||||
Hana Bank | 2020.06.12 | 2020.07.06 | 8,357 | USD 7,000 | 1,193.82 | |||||||||||||||
Hana Bank | 2020.06.24 | 2020.07.13 | 3,614 | USD 3,000 | 1,204.75 | |||||||||||||||
Nova Scotia | 2020.06.23 | 2020.07.23 | 4,843 | USD 4,000 | 1,210.70 | |||||||||||||||
Nonghyup Bank | 2020.06.25 | 2020.07.23 | 8,435 | USD 7,000 | 1,205.00 | |||||||||||||||
Suhyup Bank | 2020.06.26 | 2020.07.23 | 7,787 | USD 6,500 | 1,198.00 | |||||||||||||||
Nova Scotia | 2020.06.30 | 2020.07.23 | 3,589 | USD 3,000 | 1,196.45 | |||||||||||||||
Mizuho Bank | 2020.06.30 | 2020.07.23 | 4,186 | USD 3,500 | 1,196.00 | |||||||||||||||
Shinhan Bank | 2020.06.04 | 2020.07.06 | 4,757 | USD 3,906 | 1,217.95 | |||||||||||||||
Nova Scotia | 2020.06.05 | 2020.07.06 | 2,537 | USD 2,100 | 1,208.05 | |||||||||||||||
Shinhan Bank | 2020.06.08 | 2020.07.08 | 6,024 | USD 5,000 | 1,204.83 | |||||||||||||||
Standard Chartered | 2020.06.11 | 2020.07.15 | 4,775 | USD 4,000 | 1,193.70 | |||||||||||||||
Shinhan Bank | 2020.06.18 | 2020.07.22 | 12,088 | USD 10,000 | 1,208.80 | |||||||||||||||
Credit Agricole | 2020.06.22 | 2020.07.24 | 6,074 | USD 5,000 | 1,214.80 | |||||||||||||||
Woori Bank | 2020.06.23 | 2020.07.24 | 4,831 | USD 4,000 | 1,207.75 | |||||||||||||||
Hana Bank | 2020.06.26 | 2020.07.24 | 4,795 | USD 4,000 | 1,198.68 | |||||||||||||||
Woori Bank | 2020.06.30 | 2020.07.31 | 11,963 | USD 10,000 | 1,196.30 | |||||||||||||||
Shinhan Bank | 2020.06.30 | 2020.07.31 | 5,034 | USD 4,200 | 1,198.50 | |||||||||||||||
Hana Bank | 2019.07.31 | 2020.07.14 | 4,993 | USD 4,257 | 1,173.00 |
33
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(3) | Currency swap contracts which are not designated as hedging instruments as of June 30, 2020 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty | Contract year | Contract amounts | Contract interest rate | Contract exchange rate (in won, USD) | ||||||||||||||
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 | |||||||||||
Woori Bank | 2020~2025 | 241,320 | USD | 200,000 | 0.54% | 1.13% | 1,206.60 | |||||||||||
Korea Development Bank | 2020~2025 | 241,320 | USD | 200,000 | 0.54% | 1.13% | 1,206.60 | |||||||||||
Kookmin Bank | 2020~2025 | 120,660 | USD | 100,000 | 0.54% | 1.13% | 1,206.60 | |||||||||||
Citibank | 2012~2022 | 112,930 | USD | 100,000 | 2.79% | 3.00% | 1,129.30 | |||||||||||
JP Morgan | 2012~2022 | 112,930 | USD | 100,000 | 2.79% | 3.00% | 1,129.30 | |||||||||||
Bank of America | 2012~2022 | 112,930 | USD | 100,000 | 2.79% | 3.00% | 1,129.30 | |||||||||||
Shinhan Bank | 2016~2022 | 112,930 | USD | 100,000 | 2.79% | 3.00% | 1,129.30 | |||||||||||
HSBC | 2012~2022 | 111,770 | USD | 100,000 | 2.89% | 3.00% | 1,117.70 | |||||||||||
Hana Bank | 2012~2022 | 111,770 | USD | 100,000 | 2.87% | 3.00% | 1,117.70 | |||||||||||
Standard Chartered | 2012~2022 | 111,770 | USD | 100,000 | 2.89% | 3.00% | 1,117.70 | |||||||||||
Deutsche Bank | 2012~2022 | 55,885 | USD | 50,000 | 2.79% | 3.00% | 1,117.70 | |||||||||||
Nomura | 2015~2025 | 111,190 | USD | 100,000 | 2.60% | 3.25% | 1,111.90 | |||||||||||
Korea Development Bank | 2015~2025 | 111,190 | USD | 100,000 | 2.62% | 3.25% | 1,111.90 | |||||||||||
Woori Bank | 2015~2025 | 55,595 | USD | 50,000 | 2.62% | 3.25% | 1,111.90 | |||||||||||
Hana Bank | 2015~2025 | 55,595 | USD | 50,000 | 2.62% | 3.25% | 1,111.90 | |||||||||||
Woori Bank | 2017~2027 | 111,610 | USD | 100,000 | 2.25% | 3.13% | 1,116.10 | |||||||||||
Korea Development Bank | 2017~2027 | 111,610 | USD | 100,000 | 2.31% | 3.13% | 1,116.10 | |||||||||||
Hana Bank | 2017~2027 | 111,610 | USD | 100,000 | 2.31% | 3.13% | 1,116.10 | |||||||||||
Korea Development Bank | 2018~2028 | 108,600 | HKD | 800,000 | 2.69% | 3.35% | 135.75 | |||||||||||
Shinhan Bank | 2018~2028 | 115,387 | HKD | 850,000 | 2.66% | 3.35% | 135.75 | |||||||||||
Korea Development Bank | 2018~2023 | 170,280 | USD | 150,000 | 2.15% | 3.75% | 1,135.20 | |||||||||||
Woori Bank | 2018~2023 | 170,280 | USD | 150,000 | 2.18% | 3.75% | 1,135.20 | |||||||||||
Hana Bank | 2018~2023 | 113,520 | USD | 100,000 | 2.17% | 3.75% | 1,135.20 | |||||||||||
Shinhan Bank | 2018~2023 | 227,040 | USD | 200,000 | 2.17% | 3.75% | 1,135.20 | |||||||||||
Citibank | 2019~2024 | 239,956 | CHF | 100,000 | 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% | USD | 0.69 |
34
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(4) | Currency swap contracts which are designated as hedging instruments as of June 30, 2020 are as follows: |
In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty | Contract year | Contract amounts | Contract interest rate | Contract exchange rate (in won, USD) | ||||||||||||||
Pay | Receive | Pay | Receive | |||||||||||||||
HSBC | 2014~2020 | AUD | 100,000 | 3.52% | 5.75% | |||||||||||||
HSBC | 2014~2020 | 100,482 | AUD | 100,000 | 3.48% | 5.75% | 1,004.82 | |||||||||||
Standard Chartered | 2013~2020 | USD | 117,250 | AUD | 125,000 | 3M Libor + 1.25% | 5.75% | USD | 0.94 | |||||||||
Standard Chartered | 2014~2020 | 126,032 | USD | 117,250 | 3.55% | 3M Libor + 1.25% | 1,074.90 | |||||||||||
Kookmin Bank | 2020~2025 | 118,780 | USD | 100,000 | 1.29% | 2.13% | 1,187.80 | |||||||||||
Shinhan Bank | 2020~2025 | 118,780 | USD | 100,000 | 1.29% | 2.13% | 1,187.80 | |||||||||||
Hana Bank | 2020~2025 | 118,780 | USD | 100,000 | 1.29% | 2.13% | 1,187.80 | |||||||||||
Korea Development Bank | 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 | |||||||||||
Hana Bank | 2017~2022 | 226,600 | USD | 200,000 | 1.94% | 2.63% | 1,133.00 | |||||||||||
Korea Development Bank | 2017~2022 | 113,300 | USD | 100,000 | 1.94% | 2.63% | 1,133.00 | |||||||||||
Nomura | 2017~2022 | 113,300 | USD | 100,000 | 1.95% | 2.63% | 1,133.00 | |||||||||||
Woori Bank | 2017~2022 | 56,650 | USD | 50,000 | 1.95% | 2.63% | 1,133.00 | |||||||||||
Kookmin Bank | 2017~2022 | 56,650 | USD | 50,000 | 1.95% | 2.63% | 1,133.00 | |||||||||||
Korea Development Bank | 2018~2023 | 169,335 | USD | 150,000 | 2.26% | 3.88% | 1,128.90 | |||||||||||
Woori Bank | 2018~2023 | 169,335 | USD | 150,000 | 2.26% | 3.88% | 1,128.90 | |||||||||||
Credit Agricole | 2018~2023 | 112,890 | USD | 100,000 | 2.26% | 3.88% | 1,128.90 | |||||||||||
Hana Bank | 2018~2023 | 56,445 | USD | 50,000 | 2.26% | 3.88% | 1,128.90 | |||||||||||
Kookmin Bank | 2018~2023 | 56,445 | USD | 50,000 | 2.26% | 3.88% | 1,128.90 | |||||||||||
Woori Bank | 2020~2025 | 245,560 | USD | 200,000 | 0.93% | 1.75% | 1,227.80 | |||||||||||
Hana Bank | 2020~2025 | 245,560 | USD | 200,000 | 0.93% | 1.75% | 1,227.80 | |||||||||||
Korea Development Bank | 2020~2025 | 122,780 | USD | 100,000 | 0.93% | 1.75% | 1,227.80 |
35
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(5) | Interest rate swap contracts which are not designated as hedging instruments as of June 30, 2020 are as follows: |
In millions of won and thousands of USD | ||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate per annum | |||||||||
Pay | Receive | |||||||||||
Hana Bank | 2017~2022 | 2.01% | 3M CD + 0.24% | |||||||||
Hana Bank | 2017~2022 | 100,000 | 2.06% | 3M CD + 0.27% | ||||||||
Nomura (*1) | 2017~2037 | 30,000 | 2.05% | 3.08% | ||||||||
Hana Bank | 2017~2021 | 200,000 | 2.45% | 3M CD + 0.32% | ||||||||
Nomura (*2) | 2018~2038 | 30,000 | 2.56% | 3.75% | ||||||||
Hana Bank | 2018~2023 | 200,000 | 2.15% | 3M CD + 0.19% | ||||||||
Hana Bank | 2018~2023 | 200,000 | 2.17% | 3M CD + 0.19% | ||||||||
Hana Bank | 2018~2023 | 150,000 | 2.03% | 3M CD + 0.21% | ||||||||
Hana Bank | 2019~2024 | 200,000 | 1.87% | 3M CD + 0.13% | ||||||||
Societe Generale | 2017~2022 | 200,000 | 3M Libor + 3.44% | 3.77% | ||||||||
Nomura | 2017~2027 | 52,457 | 3M Libor + 2.25% | 2.60% | ||||||||
Nomura | 2017~2027 | 59,423 | 3M Libor + 2.27% | 2.62% | ||||||||
Export-import bank of Korea | 2015~2031 | USD | 15,893 | 2.67% | 6M USD Libor | |||||||
ING Bank | 2015~2031 | USD | 7,861 | 2.67% | 6M USD Libor | |||||||
BNP Paribas | 2015~2031 | USD | 7,861 | 2.67% | 6M USD Libor |
(*1) | 2.05% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. The Group entered into an agreement with the counterparty on July 7, 2020 for early settlement of the contract on September 18, 2020. |
(*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 June 30, 2020 are as follows: |
In millions of won and thousands of USD | ||||||||||||
Counterparty | Contract year | Contract amount | Contract interest rate per annum | |||||||||
Pay | Receive | |||||||||||
BNP Paribas | 2009~2027 | USD | 92,120 | 4.16 | % | 6M USD Libor | ||||||
KFW | 2009~2027 | USD | 92,120 | 4.16 | % | 6M USD Libor | ||||||
Export-import bank of Korea | 2016~2036 | USD | 78,092 | 3.00 | % | 6M USD Libor |
36
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
12. | Derivatives, Continued |
(7) | Gains and losses on valuation and transaction of derivatives for the three and six-month periods ended June 30, 2020 and 2019 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss): |
In millions of won | Net income effects of valuation gain (loss) | Net income effects of transaction gain (loss) | Accumulated other comprehensive income (loss) (*) | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||||||||||||||||||||||||||
Currency forward | 30,971 | 7,484 | 22,533 | (3,409 | ) | 10,128 | 5,145 | 10,242 | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Currency swap | (96,687 | ) | 358,262 | 162,335 | 309,763 | 60,507 | 76,197 | 18,291 | 38,911 | 45,487 | 63,974 | 21,935 | 43,527 | |||||||||||||||||||||||||||||||||||
Interest rate swap | (2,129 | ) | (19,005 | ) | (14,213 | ) | (21,113 | ) | (2,203 | ) | (3,514 | ) | (156 | ) | (391 | ) | (133 | ) | 13,723 | (2,406 | ) | (9,364 | ) | |||||||||||||||||||||||||
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|
(*) | For the six-month period ended June 30, 2020, 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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
13. | Other Financial Assets |
(1) | Other financial assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Loans | 747,657 | 64,111 | 725,755 | |||||||||||||
Less: allowance for doubtful accounts | (8 | ) | (12,596 | ) | (31 | ) | (15,063 | ) | ||||||||
Less: present value discount | (924 | ) | (32,611 | ) | (847 | ) | (35,218 | ) | ||||||||
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| |||||||||
70,327 | 702,450 | 63,233 | 675,474 | |||||||||||||
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|
|
|
|
|
| |||||||||
Long-term / short-term financial instruments | 1,954,619 | 515,369 | 1,351,971 | 608,256 | ||||||||||||
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| |||||||||
1,217,819 | 1,415,204 | 1,283,730 | ||||||||||||||
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|
|
|
(2) | Loans as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Face value | Allowance for doubtful accounts | Present value discount | Book value | |||||||||||||
Short-term loans | ||||||||||||||||
Loans for tuition | — | (924 | ) | 33,644 | ||||||||||||
Loans for housing | 19,988 | — | — | 19,988 | ||||||||||||
Fisheries loan | 309 | — | — | 309 | ||||||||||||
Other loans | 16,394 | (8 | ) | — | 16,386 | |||||||||||
|
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|
|
|
|
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| |||||||||
71,259 | (8 | ) | (924 | ) | 70,327 | |||||||||||
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|
|
|
|
| |||||||||
Long-term loans | ||||||||||||||||
Loans for tuition | 420,628 | — | (32,611 | ) | 388,017 | |||||||||||
Loans for housing | 217,335 | — | — | 217,335 | ||||||||||||
Loans for related parties | 44,367 | (2,465 | ) | — | 41,902 | |||||||||||
Other loans | 65,327 | (10,131 | ) | — | 55,196 | |||||||||||
|
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|
|
|
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| |||||||||
747,657 | (12,596 | ) | (32,611 | ) | 702,450 | |||||||||||
|
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|
|
|
|
|
| |||||||||
(12,604 | ) | (33,535 | ) | 772,777 | ||||||||||||
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|
|
|
|
|
In millions of won | December 31, 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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|
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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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38
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
13. | Other Financial Assets, Continued |
(3) | Changes in the allowance for doubtful accounts of loans for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 4,952 | |||||||
Bad debt expense | (2,466 | ) | 10,142 | |||||
Others | (24 | ) | — | |||||
|
|
|
| |||||
Ending balance | 15,094 | |||||||
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|
|
(4) | Long-term and short-term financial instruments as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Time deposits | 162,059 | 1,034,971 | 257,857 | |||||||||||||
CP | 19,918 | — | 40,000 | — | ||||||||||||
CD | 5,000 | — | 15,000 | — | ||||||||||||
RP | 137,132 | 2,874 | 40,000 | — | ||||||||||||
Others | 355,801 | 350,436 | 222,000 | 350,399 | ||||||||||||
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|
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| |||||||||
515,369 | 1,351,971 | 608,256 | ||||||||||||||
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39
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
14. | Inventories |
Inventories as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||
Acquisition cost | Valuation allowance | Book value | ||||||||||
Raw materials | (1,430 | ) | 3,777,282 | |||||||||
Merchandises | 1,247 | — | 1,247 | |||||||||
Work-in-progress | 177,849 | — | 177,849 | |||||||||
Finished goods | 40,675 | (410 | ) | 40,265 | ||||||||
Supplies | 2,191,968 | (4,627 | ) | 2,187,341 | ||||||||
Inventories-in-transit | 922,636 | — | 922,636 | |||||||||
Other inventories | 14,797 | — | 14,797 | |||||||||
|
|
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|
|
| |||||||
(6,467 | ) | 7,121,417 | ||||||||||
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|
|
|
In millions of won | December 31, 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 | |||||||||
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|
|
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| |||||||
(5,799 | ) | 7,050,700 | ||||||||||
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|
|
|
|
The reversal of the allowance for loss on inventory valuation due to increase in the net realizable value of inventory deducted from cost of sales for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 wereW2,413 million andW4,872 million, respectively.
The amounts of loss from inventory valuation included in other gains or losses for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 wereW3,081 million andW3,127 million, respectively.
40
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
15. | Non-Financial Assets |
Non-financial assets as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
|
|
|
| |||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advanced payments | 49,924 | 147,784 | 2,694 | |||||||||||||
Prepaid expenses | 309,651 | 148,015 | 308,017 | 84,421 | ||||||||||||
Others (*) | 1,023,143 | 53,807 | 750,576 | 79,814 | ||||||||||||
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| |||||||||
251,746 | 1,206,377 | 166,929 | ||||||||||||||
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|
|
|
|
(*) | Details of others as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
|
|
|
| |||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Greenhouse gas emissions rights | — | 437,562 | — | |||||||||||||
Other quick assets | 269,216 | 53,807 | 313,014 | 79,814 | ||||||||||||
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| |||||||||
53,807 | 750,576 | 79,814 | ||||||||||||||
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41
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries |
(1) | Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows: |
Percentage of ownership (%) | ||||||||||||
Subsidiaries | Key operation activities | Location | June 30, 2020 | December 31, 2019 | ||||||||
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 | % | ||||||
KEPCO International HongKong Ltd. | Holding company | HONG KONG | 100.00 | % | 100.00 | % | ||||||
KEPCO International Philippines Inc. | Holding company | PHILIPPINES | 100.00 | % | 100.00 | % | ||||||
KEPCO Gansu International Ltd. | Holding company | HONG KONG | 100.00 | % | 100.00 | % | ||||||
KEPCO Philippines Holdings Inc. | Holding company | PHILIPPINES | 100.00 | % | 100.00 | % | ||||||
KEPCO Philippines Corporation | Operation of utility plant | PHILIPPINES | 100.00 | % | 100.00 | % | ||||||
KEPCO Ilijan Corporation | Construction and operation of utility plant | PHILIPPINES | 51.00 | % | 51.00 | % | ||||||
KEPCO Lebanon SARL | Operation of utility plant | LEBANON | 100.00 | % | 100.00 | % | ||||||
KEPCO Neimenggu International Ltd. | Holding company | HONG KONG | 100.00 | % | 100.00 | % | ||||||
KEPCO Shanxi International Ltd. | Holding company | HONG KONG | 100.00 | % | 100.00 | % | ||||||
KOMIPO Global Pte., Ltd. | Holding company | SINGAPORE | 100.00 | % | 100.00 | % | ||||||
KEPCO Netherlands B.V. | Holding company | NETHERLANDS | 100.00 | % | 100.00 | % | ||||||
KOREA Imouraren Uranium Investment Corp. | Holding company | FRANCE | 100.00 | % | 100.00 | % | ||||||
KEPCO Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
KOSEP Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
KOMIPO Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
KOWEPO Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
KOSPO Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
KEPCO Middle East Holding Company | Holding company | BAHRAIN | 100.00 | % | 100.00 | % | ||||||
Qatrana Electric Power Company | Construction and operation of utility plant | JORDAN | 80.00 | % | 80.00 | % | ||||||
KHNP Canada Energy, Ltd. | Holding company | CANADA | 100.00 | % | 100.00 | % | ||||||
KEPCO Bylong Australia Pty., Ltd. | Resources development | AUSTRALIA | 100.00 | % | 100.00 | % | ||||||
Korea Waterbury Uranium Limited Partnership | Resources development | CANADA | 80.00 | % | 80.00 | % | ||||||
KEPCO Holdings de Mexico | Holding company | MEXICO | 100.00 | % | 100.00 | % | ||||||
KST Electric Power Company | 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 | % |
42
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows, continued: |
Percentage of ownership (%) | ||||||||||||
Subsidiaries | Key operation activities | Location | June 30, 2020 | December 31, 2019 | ||||||||
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 | % | 85.00 | % | ||||||
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 | Power generation | USA | 100.00 | % | 100.00 | % | ||||||
KEPCO-LG CNS Mangilao Holdings LLC (*5) | Holding company | USA | 100.00 | % | 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 | % | ||||||
BSK E-New Industry Fund VII | Holding company | KOREA | 81.67 | % | 81.67 | % | ||||||
e-New Industry LB Fund 1 | Holding company | KOREA | 76.11 | % | 76.11 | % | ||||||
Songhyun e-New Industry Fund | Holding company | KOREA | 80.65 | % | 80.65 | % | ||||||
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 | % | 100.00 | % | ||||||
KOSPO USA Inc. | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
Nambu USA LLC | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
Tamra Offshore Wind Power Co., Ltd. | Power generation | KOREA | 63.00 | % | 63.00 | % | ||||||
KEPCO MCS Co., Ltd. | Electric meter reading and others | KOREA | 100.00 | % | 100.00 | % | ||||||
KEPCO FMS Co., Ltd. | Security service and others | KOREA | 100.00 | % | 100.00 | % | ||||||
Firstkeepers Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | 100.00 | % | ||||||
Secutec Co., Ltd. | Security service | KOREA | 100.00 | % | 100.00 | % |
43
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(1) | Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows, continued: |
Percentage of ownership (%) | ||||||||||||
Subsidiaries | Key operation activities | Location | June 30, 2020 | December 31, 2019 | ||||||||
SE Green Energy Co., Ltd. | Power generation | KOREA | 84.80 | % | 84.80 | % | ||||||
KEPCO Mangilao America LLC (*6) | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
Mangilao Intermediate Holdings LLC | Holding company | USA | 100.00 | % | 100.00 | % | ||||||
KEPCO CSC Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | 100.00 | % | ||||||
KOAK Power Limited | Facility maintenance | PAKISTAN | 100.00 | % | 100.00 | % | ||||||
KOMIPO Europe B.V. | Holding company | SWEDEN | 100.00 | % | 100.00 | % | ||||||
Haenanum Energy Fund | Holding company | KOREA | 99.64 | % | 99.64 | % | ||||||
Paju Ecoenergy Co., Ltd. | Power generation | KOREA | 89.00 | % | 89.00 | % | ||||||
Guam Ukudu Power LLC | Power generation | USA | 100.00 | % | — | |||||||
TS Energy No. 25 Co., Ltd. | Power generation | KOREA | 90.00 | % | — | |||||||
KPS Partners Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | — | |||||||
KEPCO E&C Service Co., Ltd. | Facility maintenance | KOREA | 100.00 | % | — |
(*1) | Considering treasury stocks, the effective percentage of ownership is 66.08%. |
(*2) | The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group obtained the majority of the voting power through the shareholders’ agreement. |
(*3) | As of the reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited which is November 30. |
(*4) | The Group guarantees a certain return on investment related to Commerce and Industry Energy Co., Ltd. for the financial investors. The financial investors have a right to sell their shares to the Group which can be exercised 84 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability. |
(*5) | As of the end of the reporting period, the Group does not have a shareholding, however, this subsidiary is included in the consolidated financial statements as the Group has control over KEPCO-LG CNS Mangilao Holdings LLC by virtue of the right to nominate all 4 members of the board of directors. |
(*6) | As of the end of the reporting period, the Group does not have a shareholding, however, this subsidiary is included in the consolidated financial statements as the Group has control over KEPCO Mangilao America LLC by virtue of the right to nominate the CEO and key management members. |
(2) | Subsidiaries newly included in the consolidation scope during the six-month period ended June 30, 2020 are as follows, and there are no subsidiaries that are excluded from the consolidation scope during the six-month period ended June 30, 2020. |
<Subsidiaries newly included in the consolidation scope during the six-month period ended June 30, 2020>
Subsidiaries | Reason | |
Guam Ukudu Power LLC | Newly established | |
TS Energy No. 25 Co., Ltd. | Newly established | |
KPS Partners Co., Ltd. | Newly established | |
KEPCO E&C Service Co., Ltd. | Newly established |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
Korea Hydro & Nuclear Power Co., Ltd. | 34,843,299 | 4,798,441 | 355,325 | |||||||||||||
Korea South-East Power Co., Ltd. | 11,238,565 | 6,167,196 | 2,213,790 | 58,041 | ||||||||||||
Korea Midland Power Co., Ltd. | 12,814,987 | 9,112,004 | 2,244,892 | 28,877 | ||||||||||||
Korea Western Power Co., Ltd. | 10,399,962 | 6,671,927 | 1,772,835 | (121,093 | ) | |||||||||||
Korea Southern Power Co., Ltd. | 11,058,313 | 6,848,314 | 2,073,640 | (31,077 | ) | |||||||||||
Korea East-West Power Co., Ltd. | 9,453,370 | 4,822,911 | 1,947,746 | (62,672 | ) | |||||||||||
KEPCO Engineering & Construction Company, Inc. | 699,600 | 221,742 | 177,952 | 2,337 | ||||||||||||
KEPCO Plant Service & Engineering Co., Ltd. | 1,313,396 | 262,559 | 576,442 | 64,880 | ||||||||||||
KEPCO Nuclear Fuel Co., Ltd. | 857,175 | 466,892 | 126,470 | (2,828 | ) | |||||||||||
KEPCO KDN Co., Ltd. | 631,370 | 197,636 | 280,297 | 9,336 | ||||||||||||
KEPCO International HongKong Ltd. | 145,047 | — | — | 1,622 | ||||||||||||
KEPCO International Philippines Inc. | 128,704 | 116 | — | 17,871 | ||||||||||||
KEPCO Gansu International Ltd. | 8,554 | 565 | — | (4 | ) | |||||||||||
KEPCO Philippines Holdings Inc. | 198,056 | 5,464 | — | 24,220 | ||||||||||||
KEPCO Philippines Corporation | 6,676 | 34 | — | (106 | ) | |||||||||||
KEPCO Ilijan Corporation | 371,669 | 55,692 | 42,180 | 24,804 | ||||||||||||
KEPCO Lebanon SARL | 1,870 | 10,149 | — | (33 | ) | |||||||||||
KEPCO Neimenggu International Ltd. | 221,449 | — | — | 13,302 | ||||||||||||
KEPCO Shanxi International Ltd. | 549,739 | 212,776 | — | (4,989 | ) | |||||||||||
KOMIPO Global Pte., Ltd. | 283,100 | 1,086 | — | 4,654 | ||||||||||||
KEPCO Netherlands B.V. | 127,598 | 32 | — | 542 | ||||||||||||
KOREA Imouraren Uranium Investment Corp. | 14,132 | 137 | — | (629 | ) | |||||||||||
KEPCO Australia Pty., Ltd. | 411 | 14 | — | 39 | ||||||||||||
KOSEP Australia Pty., Ltd. | 33,491 | 2,169 | 8,275 | 872 | ||||||||||||
KOMIPO Australia Pty., Ltd. | 45,511 | 5,192 | 8,315 | 2,057 | ||||||||||||
KOWEPO Australia Pty., Ltd. | 42,899 | 2,869 | 8,275 | 873 | ||||||||||||
KOSPO Australia Pty., Ltd. | 37,679 | 2,875 | 8,275 | 1,896 | ||||||||||||
KEPCO Middle East Holding Company | 98,655 | 84,565 | — | (775 | ) | |||||||||||
Qatrana Electric Power Company | 502,625 | 316,031 | 10,854 | 12,576 | ||||||||||||
KHNP Canada Energy, Ltd. | 41,750 | 42 | — | (5 | ) | |||||||||||
KEPCO Bylong Australia Pty., Ltd. | 41,149 | 374,933 | — | (15,341 | ) | |||||||||||
Korea Waterbury Uranium Limited Partnership | 20,907 | 176 | — | (36 | ) | |||||||||||
KEPCO Holdings de Mexico | 183 | 7 | — | 9 | ||||||||||||
KST Electric Power Company | 590,364 | 458,316 | 30,233 | 37,691 | ||||||||||||
KEPCO Energy Service Company | 2,359 | 1,550 | 2,784 | 627 | ||||||||||||
KEPCO Netherlands S3 B.V. | 49,375 | 75 | — | 2,069 | ||||||||||||
PT. KOMIPO Pembangkitan Jawa Bali | 14,118 | 3,735 | 11,549 | 4,757 | ||||||||||||
PT. Cirebon Power Service | 2,542 | 503 | 4,327 | 153 | ||||||||||||
KOWEPO International Corporation | — | 11 | — | — | ||||||||||||
KOSPO Jordan LLC | 18,675 | 942 | 4,335 | 1,178 | ||||||||||||
EWP Philippines Corporation | 1,788 | 940 | — | (4 | ) | |||||||||||
EWP America Inc. (*1) | 54,379 | 5,510 | 6,347 | (4,354 | ) | |||||||||||
KNF Canada Energy Limited | 1,892 | 29 | — | (23 | ) | |||||||||||
EWP Barbados 1 SRL | 326,961 | 1,195 | 1,509 | 33,854 | ||||||||||||
Gyeonggi Green Energy Co., Ltd. | 291,650 | 256,181 | 30,581 | 141 | ||||||||||||
PT. Tanggamus Electric Power | 238,745 | 209,877 | 2,074 | (3,533 | ) | |||||||||||
Gyeongju Wind Power Co., Ltd. | 109,978 | 72,793 | 8,311 | 2,197 | ||||||||||||
KOMIPO America Inc. | 30,748 | 615 | — | (719 | ) | |||||||||||
KOSEP USA, Inc. | 1 | 5,338 | — | — | ||||||||||||
PT. EWP Indonesia | 32,720 | 582 | — | 4,807 | ||||||||||||
KEPCO Netherlands J3 B.V. | 124,437 | 100 | — | (39 | ) | |||||||||||
Korea Offshore Wind Power Co., Ltd. | 348,675 | 181,451 | 13,610 | 256 | ||||||||||||
Global One Pioneer B.V. | 241 | 77 | — | (41 | ) | |||||||||||
Global Energy Pioneer B.V. | 417 | 92 | — | (48 | ) | |||||||||||
Mira Power Limited | 393,773 | 307,715 | 12,317 | (3,830 | ) | |||||||||||
KOSEP Material Co., Ltd. | 2,244 | 686 | 1,731 | (30 | ) | |||||||||||
Commerce and Industry Energy Co., Ltd. | 92,141 | 43,794 | 14,893 | 1,080 | ||||||||||||
KEPCO KPS Philippines Corp. | 3,304 | 462 | 3,258 | (19 | ) |
45
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
KOSPO Chile SpA | 51,836 | — | 519 | |||||||||||||
PT. KOWEPO Sumsel Operation And Maintenance Services | 117 | 262 | — | (15 | ) | |||||||||||
HeeMang Sunlight Power Co., Ltd. | 7,557 | 4,542 | 232 | (49 | ) | |||||||||||
Fujeij Wind Power Company | 234,391 | 216,260 | — | 5,470 | ||||||||||||
KOSPO Youngnam Power Co., Ltd. | 392,690 | 300,222 | 150,659 | 1,198 | ||||||||||||
VI Carbon Professional Private Special Asset Investment Trust 1 | 3,000 | 4 | — | 2 | ||||||||||||
Chitose Solar Power Plant LLC | 142,859 | 126,294 | 8,982 | 1,254 | ||||||||||||
KEPCO Energy Solution Co., Ltd. | 310,301 | 2,557 | 2,020 | 1,698 | ||||||||||||
Solar School Plant Co., Ltd. | 211,424 | 5,079 | 1,331 | 885 | ||||||||||||
KOSPO Power Services Limitada | 3,116 | 627 | 5,338 | 905 | ||||||||||||
Energy New Industry Specialized Investment Private Investment Trust (*2) | 233,953 | 2,321 | 7,875 | 3,735 | ||||||||||||
KOEN Bylong Pty., Ltd. | — | 57 | — | (17 | ) | |||||||||||
KOMIPO Bylong Pty., Ltd. | 6 | 63 | — | — | ||||||||||||
KOWEPO Bylong Pty., Ltd. | 6 | 63 | — | — | ||||||||||||
KOSPO Bylong Pty., Ltd. | 4 | 41 | — | — | ||||||||||||
EWP Bylong Pty., Ltd. | 2 | 39 | — | — | ||||||||||||
KOWEPO Lao International | 8,029 | 407 | 4,285 | 2,713 | ||||||||||||
KEPCO US Inc. | 17,848 | — | — | — | ||||||||||||
KEPCO Alamosa LLC | 34,537 | 77 | 65 | (128 | ) | |||||||||||
KEPCO Solar of Alamosa, LLC | 64,044 | 47,527 | 4,772 | 54 | ||||||||||||
KEPCO-LG CNS Mangilao Holdings LLC | 28,455 | 31,909 | — | (503 | ) | |||||||||||
Mangilao Investment LLC | 41,651 | 5 | — | (5 | ) | |||||||||||
KEPCO-LG CNS Mangilao Solar, LLC | 53,745 | 12,493 | — | (77 | ) | |||||||||||
Jeju Hanlim Offshore Wind Co., Ltd. | 12,743 | 469 | — | (1,497 | ) | |||||||||||
PT. Siborpa Eco Power | 11,718 | 15 | — | (226 | ) | |||||||||||
PT. Korea Energy Indonesia | 1,779 | 183 | 1,286 | 102 | ||||||||||||
KOLAT SpA | 29,847 | 437 | 100 | (84 | ) | |||||||||||
KEPCO California, LLC | 46,104 | 2,236 | — | (873 | ) | |||||||||||
KEPCO Mojave Holdings, LLC | 105,751 | 72,352 | — | (2,153 | ) | |||||||||||
Incheon Fuel Cell Co., Ltd. | 130,233 | 108,588 | — | (550 | ) | |||||||||||
KOEN Service Co., Ltd. | 6,779 | 6,061 | 15,980 | 206 | ||||||||||||
KOMIPO Service Co., Ltd. | 3,571 | 3,147 | 13,626 | (298 | ) | |||||||||||
KOWEPO Service Co., Ltd. | 5,566 | 3,460 | 14,677 | 1,178 | ||||||||||||
KOSPO Service Co., Ltd. | 3,138 | 3,275 | 10,237 | (839 | ) | |||||||||||
EWP Service Co., Ltd. | 4,278 | 2,841 | 11,753 | 928 | ||||||||||||
PT. KOMIPO Energy Indonesia | 1,407 | 26 | 344 | (1,076 | ) | |||||||||||
KNF Partners Co., Ltd. | 1,509 | 940 | 2,513 | 81 | ||||||||||||
KOSPO USA Inc. | 5,414 | 415 | — | (988 | ) | |||||||||||
Nambu USA LLC | 497 | — | — | 245 | ||||||||||||
Tamra Offshore Wind Power Co., Ltd. | 153,053 | 117,126 | 10,619 | 1,727 | ||||||||||||
KEPCO MCS Co., Ltd. | 69,062 | 46,983 | 155,748 | 17,720 | ||||||||||||
KEPCO FMS Co., Ltd. | 8,522 | 12,796 | 37,582 | (4,972 | ) | |||||||||||
Firstkeepers Co., Ltd. | 9,112 | 6,746 | 31,029 | 3,614 | ||||||||||||
Secutec Co., Ltd. | 10,748 | 5,943 | 29,669 | 4,711 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
SE Green Energy Co., Ltd. | 105,787 | 287 | (1,368 | ) | ||||||||||||
KEPCO Mangilao America LLC | 2,073 | — | — | — | ||||||||||||
Mangilao Intermediate Holdings LLC | 86,490 | 63,052 | — | (2,885 | ) | |||||||||||
KEPCO CSC Co., Ltd. | 7,213 | 3,973 | 17,388 | 2,454 | ||||||||||||
KOAK Power Limited | 14,889 | 106 | — | (205 | ) | |||||||||||
KOMIPO Europe B.V. | 21,862 | 1,590 | 132 | (73 | ) | |||||||||||
Haenanum Energy Fund | 28,180 | 66 | 84 | 13 | ||||||||||||
Paju Ecoenergy Co., Ltd. | 53,631 | 32 | — | 33 | ||||||||||||
Guam Ukudu Power LLC | 629 | — | — | (71 | ) | |||||||||||
TS Energy No. 25 Co., Ltd. | 29,213 | 45 | — | (298 | ) | |||||||||||
KPS Partners Co., Ltd. | 696 | 4 | — | (8 | ) | |||||||||||
KEPCO E&C Service Co., Ltd. | 490 | — | — | (10 | ) |
(*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, BSK E-New Industry Fund VII, e-New Industry LB Fund 1 and Songhyun e-New Industry Fund. |
47
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the year | ||||||||||||
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 |
48
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the year | ||||||||||||
KEPCO Netherlands J3 B.V. | 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 | ) | |||||||||||
KEPCO KPS Philippines Corp. | 5,198 | 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 | 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 |
49
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(3) | Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
Subsidiaries | Total assets | Total liabilities | Sales | Profit (loss) for the year | ||||||||||||
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 | — | — | — |
(*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, BSK E-New Industry Fund VII, e-New Industry LB Fund 1 and Songhyun e-New Industry Fund. |
(4) | Significant restrictions on the Group’s power over the subsidiaries as of June 30, 2020 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 | |
Gyeongju Wind Power Co., Ltd. | Dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. | |
Korea Offshore Wind Power Co., Ltd. | Principals and interest payments on subordinated loans or payments for dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained. |
(5) | As of June 30, 2020, 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. |
50
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(6) | Details of non-controlling interest prior to intra-group eliminations as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||
Description | KEPCO Ilijan Corporation | KEPCO Plant Service & Engineering Co., Ltd. | KEPCO Engineering & Construction Company, Inc. | Others | Total | |||||||||||||||
Percentage of ownership | 49.00 | % | 49.00 | % | 33.92 | % | ||||||||||||||
Current assets | 740,357 | 228,041 | 1,017,863 | 2,208,851 | ||||||||||||||||
Non-current assets | 149,079 | 573,039 | 471,559 | 3,484,108 | 4,677,785 | |||||||||||||||
Current liabilities | (12,274 | ) | (209,885 | ) | (191,285 | ) | (473,684 | ) | (887,128 | ) | ||||||||||
Non-current liabilities | (43,418 | ) | (52,674 | ) | (30,457 | ) | (2,438,599 | ) | (2,565,148 | ) | ||||||||||
Net assets | 315,977 | 1,050,837 | 477,858 | 1,589,688 | 3,434,360 | |||||||||||||||
Book value of non-controlling interest | 154,829 | 514,910 | 162,089 | 589,080 | 1,420,908 | |||||||||||||||
Sales | 42,180 | 576,442 | 177,952 | 434,177 | 1,230,751 | |||||||||||||||
Profit for the period | 24,804 | 64,880 | 2,337 | 57,527 | 149,548 | |||||||||||||||
Profit for the period attributable to non-controlling interest | 12,154 | 31,791 | 793 | 22,531 | 67,269 | |||||||||||||||
Cash flows from operating activities | 63,217 | 45,514 | 15,863 | 226,787 | 351,381 | |||||||||||||||
Cash flows from investing activities | 4,331 | 70,156 | (13,868 | ) | (431,808 | ) | (371,189 | ) | ||||||||||||
Cash flows from financing activities before dividends to non-controlling interest | (17,901 | ) | (46,084 | ) | (8,510 | ) | 164,495 | 92,000 | ||||||||||||
Dividends to non-controlling interest | (17,199 | ) | (42,336 | ) | (4,000 | ) | (3,476 | ) | (67,011 | ) | ||||||||||
Effect of exchange rate fluctuation | 1,613 | (630 | ) | 41 | 2,207 | 3,231 | ||||||||||||||
Net increase (decrease) of cash and cash equivalents | 34,061 | 26,620 | (10,474 | ) | (41,795 | ) | 8,412 | |||||||||||||
In millions of won | ||||||||||||||||||||
December 31, 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 of non-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 (loss) for the year | 40,818 | 157,737 | 26,398 | (48,963 | ) | 175,990 | ||||||||||||||
Profit (loss) for the year attributable to non-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 to non-controlling interest | (68,678 | ) | (44,332 | ) | (34,632 | ) | 223,233 | 75,591 | ||||||||||||
Dividends to non-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 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
16. | Consolidated Subsidiaries, Continued |
(7) | Changes in goodwill |
(i) | Details of goodwill as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Acquisition cost | 97,977 | |||||||
Accumulated impairment | — | — | ||||||
|
|
|
| |||||
Carrying book value | 97,977 | |||||||
|
|
|
|
(ii) | Changes in goodwill for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Beginning | Increase | Decrease | Ending | |||||||||||||
Acquisition cost | — | — | 97,977 | |||||||||||||
Accumulated impairment | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Carrying book value | — | — | 97,977 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
In millions of won | December 31, 2019 | |||||||||||||||
Beginning | Increase | Decrease | Ending | |||||||||||||
Acquisition cost | 95,395 | — | 97,977 | |||||||||||||
Accumulated impairment | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Carrying book value | 95,395 | — | 97,977 | |||||||||||||
|
|
|
|
|
|
|
|
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures |
(1) | Investments in associates and joint ventures as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||
June 30, 2020 | ||||||||||||||||||
Investees | Key operation activities | Location | Percentage of ownership | Acquisition cost | Book value | |||||||||||||
<Associates> | ||||||||||||||||||
Korea Gas Corporation (*1) | Importing and wholesaling LNG | KOREA | 20.47 | % | 1,701,973 | |||||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00 | % | 413,153 | 677,508 | ||||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00 | % | 615,860 | 439,203 | ||||||||||||
Korea Power Exchange (*2) | Management of power market and others | KOREA | 100.00 | % | 127,839 | 267,622 | ||||||||||||
GS Donghae Electric Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 204,000 | 250,249 | ||||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 88,885 | 120,360 | ||||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50 | % | 40,365 | 125,696 | ||||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00 | % | 132,300 | 115,060 | ||||||||||||
Dongducheon Dream Power Co., Ltd. (*3) | Power generation | KOREA | 33.61 | % | 148,105 | 77,853 | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00 | % | 87,426 | 70,254 | ||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 72,000 | 71,109 | ||||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00 | % | 20,635 | 67,411 | ||||||||||||
Korea Electric Power Corporation Fund (*4) | Developing electric enterprises | KOREA | 98.09 | % | 51,500 | 41,152 | ||||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43 | % | 59,000 | 39,978 | ||||||||||||
Nepal Water & Energy Development Company Private Limited (*5) | Construction and operation of utility plant | NEPAL | 60.35 | % | 50,268 | 45,786 | ||||||||||||
PT. Wampu Electric Power | Power generation | INDONESIA | 46.00 | % | 21,292 | 32,061 | ||||||||||||
Others (Daeryun Power Co., Ltd. and 57 others) | 335,524 | 148,845 | ||||||||||||||||
|
|
|
| |||||||||||||||
4,292,120 | ||||||||||||||||||
|
|
|
| |||||||||||||||
<Joint ventures> | ||||||||||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00 | % | 301,910 | 281,236 | ||||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20 | % | 94,579 | 235,765 | ||||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00 | % | 111,476 | 191,893 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 121,928 | 185,215 | ||||||||||||
Rabigh Electricity Company | Power generation | SAUDI ARABIA | 40.00 | % | 109,743 | 104,517 | ||||||||||||
Kelar S.A. (*6) | Power generation | CHILE | 65.00 | % | 78,060 | 70,375 | ||||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00 | % | 47,903 | 50,782 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00 | % | 28,021 | 7,272 | ||||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00 | % | 42,948 | 70,148 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 10,858 | 43,375 | ||||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90 | % | 52,700 | 29,865 | ||||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00 | % | 37,689 | 33,257 | ||||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00 | % | 26,892 | 32,233 | ||||||||||||
Shuweihat Asia Power Investment B.V. | Holding company | NETHERLAND | 49.00 | % | 44,405 | 9,725 | ||||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00 | % | 27,891 | 51,689 | ||||||||||||
Others (Daegu Green Power Co., Ltd. and 55 others) | 405,292 | 396,791 | ||||||||||||||||
|
|
|
| |||||||||||||||
1,542,295 | 1,794,138 | |||||||||||||||||
|
|
|
| |||||||||||||||
6,086,258 | ||||||||||||||||||
|
|
|
|
(*1) | The effective percentage of ownership is 22.02% considering treasury stocks. |
(*2) | The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity. |
(*3) | The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock. |
(*4) | The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. For this reason, the entity is classified as an associate. |
(*5) | The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate. |
(*6) | The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures. |
53
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(1) | Investments in associates and joint ventures as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||||
December 31, 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 | |||||||||||||
Gemeng International Energy Co., Ltd. | Power generation | CHINA | 34.00 | % | 413,153 | 670,896 | ||||||||||||
PT. Bayan Resources TBK | Resources development | INDONESIA | 20.00 | % | 615,860 | 445,141 | ||||||||||||
Korea Power Exchange (*2) | Management of power market and others | KOREA | 100.00 | % | 127,839 | 258,899 | ||||||||||||
GS Donghae Electric Power Co., Ltd. | Power generation | KOREA | 34.00 | % | 204,000 | 255,983 | ||||||||||||
Hyundai Green Power Co., Ltd. | Power generation | KOREA | 29.00 | % | 88,885 | 124,253 | ||||||||||||
PT. Cirebon Electric Power | Power generation | INDONESIA | 27.50 | % | 40,365 | 123,425 | ||||||||||||
S-Power Co., Ltd. | Power generation | KOREA | 49.00 | % | 132,300 | 115,784 | ||||||||||||
Dongducheon Dream Power Co., Ltd. (*3) | Power generation | KOREA | 33.61 | % | 148,105 | 76,547 | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | Power generation | LAOS | 25.00 | % | 87,426 | 72,935 | ||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Power generation | KOREA | 40.00 | % | 72,000 | 66,956 | ||||||||||||
SPC Power Corporation | Power generation | PHILIPPINES | 38.00 | % | 20,635 | 63,583 | ||||||||||||
Korea Electric Power Corporation Fund (*4) | Developing electric enterprises | KOREA | 98.09 | % | 51,500 | 41,126 | ||||||||||||
YTN Co., Ltd. | Broadcasting | KOREA | 21.43 | % | 59,000 | 39,747 | ||||||||||||
Nepal Water & Energy Development Company Private Limited (*5) | Construction and operation of utility plant | NEPAL | 57.76 | % | 35,571 | 31,145 | ||||||||||||
PT. Wampu Electric Power | Power generation | INDONESIA | 46.00 | % | 21,292 | 29,355 | ||||||||||||
Others (Daeryun Power Co., Ltd. and 49 others) | 327,525 | 142,060 | ||||||||||||||||
|
|
|
| |||||||||||||||
4,251,802 | ||||||||||||||||||
|
|
|
| |||||||||||||||
<Joint ventures> | ||||||||||||||||||
Jamaica Public Service Company Limited | Power generation | JAMAICA | 40.00 | % | 301,910 | 253,607 | ||||||||||||
KEPCO SPC Power Corporation (*6) | Construction and operation of utility plant | PHILIPPINES | 75.20 | % | 94,579 | 214,794 | ||||||||||||
Amman Asia Electric Power Company (*6) | Power generation | JORDAN | 60.00 | % | 111,476 | 192,164 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 121,928 | 185,307 | ||||||||||||
Rabigh Electricity Company | Power generation | | SAUDI ARABIA | | 40.00 | % | 109,743 | 109,096 | ||||||||||
Kelar S.A. (*6) | Power generation | CHILE | 65.00 | % | 78,060 | 70,462 | ||||||||||||
Solar Philippines Calatagan Corporation | Power generation | PHILIPPINES | 38.00 | % | 47,903 | 48,930 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | Power generation | USA | 50.00 | % | 28,021 | 42,916 | ||||||||||||
RE Holiday Holdings LLC | Power generation | USA | 50.00 | % | 42,948 | 42,070 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | Power generation | CHINA | 40.00 | % | 10,858 | 41,024 | ||||||||||||
Chun-cheon Energy Co., Ltd. | Power generation | KOREA | 29.90 | % | 52,700 | 34,872 | ||||||||||||
Chile Solar JV SpA | Power generation | CHILE | 50.00 | % | 37,689 | 34,859 | ||||||||||||
PT. Tanjung Power Indonesia | Power generation | INDONESIA | 35.00 | % | 26,892 | 34,327 | ||||||||||||
Shuweihat Asia Power Investment B.V. | Holding company | NETHERLAND | 49.00 | % | 44,405 | 18,318 | ||||||||||||
RE Pioneer Holdings LLC | Power generation | USA | 50.00 | % | 27,891 | 31,156 | ||||||||||||
Others (Daegu Green Power Co., Ltd. and 48 others) | 338,693 | 309,127 | ||||||||||||||||
|
|
|
| |||||||||||||||
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 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity. |
(*3) | The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock. |
(*4) | The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. For this reason, the entity is classified as an associate. |
(*5) | The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate. |
(*6) | The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures. |
54
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
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 June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||
Investees | June 30, 2020 | December 31, 2019 | ||||||
<Associates> | ||||||||
Korea Electric Power Industrial Development Co., Ltd. | 33,089 | |||||||
Korea Gas Corporation | 495,180 | 715,365 | ||||||
YTN Co., Ltd. | 14,760 | 18,450 | ||||||
SPC Power Corporation | 121,290 | 117,230 | ||||||
PT. Bayan Resources TBK | 703,905 | 880,860 |
(3) | Changes in investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisitions | Disposals | Dividends received | Share of income (loss) | Other comprehen- sive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||||||
Korea Gas Corporation | — | — | (7,182 | ) | 34,139 | (18,652 | ) | (299 | ) | 1,701,973 | ||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 670,896 | — | — | — | (8,464 | ) | 16,176 | (1,100 | ) | 677,508 | ||||||||||||||||||||||
PT. Bayan Resources TBK | 445,141 | — | — | — | 10,251 | (16,160 | ) | (29 | ) | 439,203 | ||||||||||||||||||||||
Korea Power Exchange | 258,899 | — | — | — | 8,802 | — | (79 | ) | 267,622 | |||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 255,983 | — | — | (12,898 | ) | 7,164 | — | — | 250,249 | |||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 124,253 | — | — | (8,889 | ) | 4,996 | — | — | 120,360 | |||||||||||||||||||||||
PT. Cirebon Electric Power | 123,425 | — | — | (4,695 | ) | 3,485 | 3,481 | — | 125,696 | |||||||||||||||||||||||
S-Power Co., Ltd. | 115,784 | — | — | — | (724 | ) | — | — | 115,060 | |||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 76,547 | — | — | — | 1,306 | — | — | 77,853 | ||||||||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 72,935 | — | — | — | (3,252 | ) | 571 | — | 70,254 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 66,956 | — | — | — | 4,153 | — | — | 71,109 | ||||||||||||||||||||||||
SPC Power Corporation | 63,583 | — | — | (5,564 | ) | 2,649 | 6,790 | (47 | ) | 67,411 | ||||||||||||||||||||||
Korea Electric Power Corporation Fund | 41,126 | — | — | — | (582 | ) | 608 | — | 41,152 | |||||||||||||||||||||||
YTN Co., Ltd. | 39,747 | — | — | (90 | ) | 331 | (6 | ) | (4 | ) | 39,978 | |||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 31,145 | 14,697 | — | — | (1,571 | ) | 1,515 | — | 45,786 | |||||||||||||||||||||||
PT. Wampu Electric Power | 29,355 | — | — | — | 1,627 | 1,079 | — | 32,061 | ||||||||||||||||||||||||
Others (Daeryun Power Co., Ltd. and 58 others) | 142,060 | 7,218 | (108 | ) | (6,536 | ) | 5,823 | (792 | ) | 1,180 | 148,845 | |||||||||||||||||||||
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21,915 | (108 | ) | (45,854 | ) | 70,133 | (5,390 | ) | (378 | ) | 4,292,120 | ||||||||||||||||||||||
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55
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisitions | Disposals | Dividends received | Share of income (loss) | Other comprehen- sive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||||||
Jamaica Public Service Company Limited | — | — | — | 14,792 | 9,318 | 3,519 | 281,236 | |||||||||||||||||||||||||
KEPCO SPC Power Corporation | 214,794 | — | — | (16,120 | ) | 28,348 | 8,871 | (128 | ) | 235,765 | ||||||||||||||||||||||
Amman Asia Electric Power Company | 192,164 | — | — | — | 10,434 | (10,705 | ) | — | 191,893 | |||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 185,307 | — | — | (13,453 | ) | 9,078 | 4,283 | — | 185,215 | |||||||||||||||||||||||
Rabigh Electricity Company | 109,096 | — | — | — | 11,286 | (15,865 | ) | — | 104,517 | |||||||||||||||||||||||
Kelar S.A. | 70,462 | — | — | — | 9,339 | (9,525 | ) | 99 | 70,375 | |||||||||||||||||||||||
Solar Philippines Calatagan Corporation | 48,930 | — | — | (2,872 | ) | 3,501 | 1,223 | — | 50,782 | |||||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 42,916 | — | — | (834 | ) | (33,341 | ) | (1,469 | ) | — | 7,272 | |||||||||||||||||||||
RE Holiday Holdings LLC | 42,070 | — | — | — | 27,398 | 680 | — | 70,148 | ||||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 41,024 | — | — | — | 1,394 | 957 | — | 43,375 | ||||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 34,872 | — | — | — | (5,007 | ) | — | — | 29,865 | |||||||||||||||||||||||
Chile Solar JV SpA | 34,859 | — | — | — | 152 | (1,754 | ) | — | 33,257 | |||||||||||||||||||||||
PT. Tanjung Power Indonesia | 34,327 | — | — | — | 5,031 | (7,125 | ) | — | 32,233 | |||||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 18,318 | — | — | (1,656 | ) | 2,477 | (9,414 | ) | — | 9,725 | ||||||||||||||||||||||
RE Pioneer Holdings LLC | 31,156 | — | — | (830 | ) | 21,061 | 302 | — | 51,689 | |||||||||||||||||||||||
Others (Daegu Green Power Co., Ltd. and 55 others) | 309,127 | 66,598 | — | (8,907 | ) | 30,454 | (475 | ) | (6 | ) | 396,791 | |||||||||||||||||||||
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1,663,029 | 66,598 | — | (44,672 | ) | 136,397 | (30,698 | ) | 3,484 | 1,794,138 | |||||||||||||||||||||||
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88,513 | (108 | ) | (90,526 | ) | 206,530 | (36,088 | ) | 3,106 | 6,086,258 | |||||||||||||||||||||||
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In millions of won | ||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisitions | Disposals | 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 | |||||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 647,010 | — | — | (11,468 | ) | 26,300 | 9,209 | (155 | ) | 670,896 | ||||||||||||||||||||||
PT. Bayan Resources TBK | 511,646 | — | — | (71,100 | ) | 6,181 | (1,586 | ) | — | 445,141 | ||||||||||||||||||||||
Korea Power Exchange | 251,802 | — | — | — | 10,907 | — | (3,810 | ) | 258,899 | |||||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | — | — | — | — | — | — | 255,983 | 255,983 | ||||||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 127,160 | — | — | (8,889 | ) | 5,982 | — | — | 124,253 | |||||||||||||||||||||||
PT. Cirebon Electric Power | 108,628 | — | — | — | 11,079 | (65 | ) | 3,783 | 123,425 | |||||||||||||||||||||||
S-Power Co., Ltd. | 114,566 | — | — | — | 1,218 | — | — | 115,784 | ||||||||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 76,386 | — | — | — | 441 | — | (280 | ) | 76,547 | |||||||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 77,165 | 3,052 | — | — | (10,210 | ) | 2,928 | — | 72,935 | |||||||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 67,600 | — | — | — | (827 | ) | 198 | (15 | ) | 66,956 | ||||||||||||||||||||||
SPC Power Corporation | 57,558 | — | — | (14,229 | ) | 5,929 | 14,286 | 39 | 63,583 | |||||||||||||||||||||||
Korea Electric Power Corporation Fund | 47,189 | — | — | — | (6,931 | ) | 868 | — | 41,126 | |||||||||||||||||||||||
YTN Co., Ltd. | 40,338 | — | — | (180 | ) | (449 | ) | 5 | 33 | 39,747 | ||||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 30,961 | — | — | — | (854 | ) | 1,038 | — | 31,145 | |||||||||||||||||||||||
PT. Wampu Electric Power | 31,097 | — | — | — | (2,867 | ) | 2 | 1,123 | 29,355 | |||||||||||||||||||||||
Others (Daeryun Power Co., Ltd. and 55 others) | 173,866 | 14,607 | — | (4,442 | ) | (16,992 | ) | (371 | ) | (24,608 | ) | 142,060 | ||||||||||||||||||||
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17,659 | — | (136,012 | ) | 37,418 | 39,199 | 228,718 | 4,251,802 | |||||||||||||||||||||||||
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56
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(3) | Changes in investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Investees | Beginning balance | Acquisitions | Disposals | Dividends received | Share of income (loss) | Other comprehen- sive income (loss) | Others | Ending balance | ||||||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||||||
Jamaica Public Service Company Limited | — | — | (4,631 | ) | 10,166 | 8,440 | — | 253,607 | ||||||||||||||||||||||||
KEPCO SPC Power Corporation | 208,306 | — | — | (45,349 | ) | 48,043 | 3,781 | 13 | 214,794 | |||||||||||||||||||||||
Amman Asia Electric Power Company | 177,357 | — | — | — | 20,648 | (5,841 | ) | — | 192,164 | |||||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 166,162 | — | — | — | 16,325 | 2,820 | — | 185,307 | ||||||||||||||||||||||||
Rabigh Electricity Company | 105,328 | — | — | — | 4,355 | (1,734 | ) | 1,147 | 109,096 | |||||||||||||||||||||||
Kelar S.A. | 72,824 | — | — | — | 3,435 | (8,416 | ) | 2,619 | 70,462 | |||||||||||||||||||||||
Solar Philippines Calatagan Corporation | 47,903 | — | — | (4,633 | ) | 4,305 | 1,355 | — | 48,930 | |||||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 41,415 | — | — | (1,152 | ) | 4,609 | (1,957 | ) | 1 | 42,916 | ||||||||||||||||||||||
RE Holiday Holdings LLC | 51,094 | — | — | — | (6,525 | ) | (2,500 | ) | 1 | 42,070 | ||||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 39,442 | — | — | — | 875 | 707 | — | 41,024 | ||||||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 42,505 | — | — | — | (7,385 | ) | — | (248 | ) | 34,872 | ||||||||||||||||||||||
Chile Solar JV SpA | 36,865 | — | — | — | 842 | (2,849 | ) | 1 | 34,859 | |||||||||||||||||||||||
PT. Tanjung Power Indonesia | 7,081 | 26,146 | — | — | 5,601 | (4,489 | ) | (12 | ) | 34,327 | ||||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 27,251 | — | — | (2,176 | ) | 5,288 | (12,045 | ) | — | 18,318 | ||||||||||||||||||||||
RE Pioneer Holdings LLC | 38,898 | — | — | (939 | ) | (5,507 | ) | (1,296 | ) | — | 31,156 | |||||||||||||||||||||
Others (Daegu Green Power Co., Ltd. and 53 others) | 511,462 | 64,016 | (5,359 | ) | (20,721 | ) | 24,327 | 1,835 | (266,433 | ) | 309,127 | |||||||||||||||||||||
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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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57
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the period | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation (*) | 29,475,392 | 12,062,361 | 47,030 | |||||||||||||
Gemeng International Energy Co., Ltd. | 7,374,474 | 5,381,804 | 864,442 | (7,771 | ) | |||||||||||
PT. Bayan Resources TBK | 1,629,322 | 911,121 | 839,807 | 91,428 | ||||||||||||
Korea Power Exchange | 333,105 | 65,482 | 51,246 | 7,104 | ||||||||||||
GS Donghae Electric Power Co., Ltd. | 2,194,161 | 1,458,136 | 342,547 | 21,068 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,093,509 | 678,473 | 231,631 | 12,785 | ||||||||||||
PT. Cirebon Electric Power | 826,136 | 369,059 | 116,272 | 12,136 | ||||||||||||
S-Power Co., Ltd. | 786,079 | 548,070 | 238,966 | (1,092 | ) | |||||||||||
Dongducheon Dream Power Co., Ltd. | 1,413,034 | 1,141,975 | 242,996 | 3,312 | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 1,254,566 | 969,091 | 67,835 | (12,662 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 934,124 | 746,397 | 302,580 | 13,448 | ||||||||||||
SPC Power Corporation | 269,347 | 20,033 | 23,087 | 21,822 | ||||||||||||
Korea Electric Power Corporation Fund | 42,076 | 126 | 93 | (398 | ) | |||||||||||
YTN Co., Ltd. | 283,296 | 96,733 | 54,216 | 1,769 | ||||||||||||
Nepal Water & Energy Development Company Private Limited | 85,604 | 12,166 | — | (226 | ) | |||||||||||
PT. Wampu Electric Power | 229,179 | 159,480 | 9,630 | 3,866 | ||||||||||||
<Joint ventures> | ||||||||||||||||
Jamaica Public Service Company Limited | 1,688,125 | 1,017,782 | 515,946 | 21,045 | ||||||||||||
KEPCO SPC Power Corporation | 335,206 | 21,689 | 98,236 | 39,541 | ||||||||||||
Amman Asia Electric Power Company | 851,052 | 531,230 | 11,517 | 17,392 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 763,745 | 300,707 | 62,989 | 23,841 | ||||||||||||
Rabigh Electricity Company | 2,619,640 | 2,198,883 | 148,795 | 67,228 | ||||||||||||
Kelar S.A. | 652,421 | 548,409 | 49,290 | 9,052 | ||||||||||||
Solar Philippines Calatagan Corporation | 104,903 | 49,411 | 10,782 | 6,739 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | 105,725 | 91,182 | 2,863 | (977 | ) | |||||||||||
RE Holiday Holdings LLC | 331,561 | 191,265 | 3,405 | 2,034 | ||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 193,406 | 84,969 | 13,741 | 3,321 | ||||||||||||
Chun-cheon Energy Co., Ltd. | 610,231 | 509,528 | 126,067 | (16,746 | ) | |||||||||||
Chile Solar JV SpA | 70,296 | 3,781 | 2,547 | 1,407 | ||||||||||||
PT. Tanjung Power Indonesia | 725,540 | 633,446 | 50,106 | 13,348 | ||||||||||||
Shuweihat Asia Power Investment B.V. | 19,852 | 5 | — | (155 | ) | |||||||||||
RE Pioneer Holdings LLC | 247,008 | 143,630 | 3,001 | 2,115 |
(*) | The profit for the six-month period ended June 30, 2020 is reduced by the associate entity’s net income attributable to non-controlling interests. |
58
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(4) | Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||
December 31, 2019 | ||||||||||||||||
Investees | Total assets | Total liabilities | Sales | Profit (loss) for the year | ||||||||||||
<Associates> | ||||||||||||||||
Korea Gas Corporation (*) | 31,165,334 | 24,982,640 | 38,764 | |||||||||||||
Gemeng International Energy Co., Ltd. | 6,758,957 | 4,785,740 | 2,024,730 | 95,435 | ||||||||||||
PT. Bayan Resources TBK | 1,302,637 | 622,576 | 1,707,387 | 252,855 | ||||||||||||
Korea Power Exchange | 315,683 | 54,926 | 107,034 | 8,268 | ||||||||||||
GS Donghae Electric Power Co., Ltd. | 2,301,774 | 1,548,883 | 688,055 | 75,842 | ||||||||||||
Hyundai Green Power Co., Ltd. | 1,086,738 | 658,279 | 507,653 | 26,222 | ||||||||||||
PT. Cirebon Electric Power | 852,457 | 403,639 | 277,370 | 39,581 | ||||||||||||
S-Power Co., Ltd. | 805,622 | 566,025 | 576,554 | 2,319 | ||||||||||||
Dongducheon Dream Power Co., Ltd. | 1,474,224 | 1,206,478 | 689,414 | 2,849 | ||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 1,194,125 | 898,023 | 6,731 | (40,437 | ) | |||||||||||
Shin Pyeongtaek Power Co., Ltd. | 981,387 | 807,107 | 119,162 | 11,847 | ||||||||||||
SPC Power Corporation | 250,544 | 22,459 | 63,218 | 39,876 | ||||||||||||
Korea Electric Power Corporation Fund | 42,162 | 239 | 127 | (5,430 | ) | |||||||||||
YTN Co., Ltd. | 281,699 | 96,211 | 127,782 | (1,230 | ) | |||||||||||
Nepal Water & Energy Development Company Private Limited | 78,309 | 26,783 | — | (1,380 | ) | |||||||||||
PT. Wampu Electric Power | 222,266 | 158,451 | 18,165 | (2,315 | ) | |||||||||||
<Joint ventures> | �� | |||||||||||||||
Jamaica Public Service Company Limited | 1,543,049 | 940,609 | 1,035,399 | 32,828 | ||||||||||||
KEPCO SPC Power Corporation | 308,274 | 22,643 | 187,867 | 64,152 | ||||||||||||
Amman Asia Electric Power Company | 821,997 | 501,723 | 23,866 | 34,424 | ||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 765,598 | 302,329 | 122,398 | 40,371 | ||||||||||||
Rabigh Electricity Company | 2,538,719 | 2,100,347 | 208,514 | 1,567 | ||||||||||||
Kelar S.A. | 634,633 | 530,335 | 86,702 | 8,867 | ||||||||||||
Solar Philippines Calatagan Corporation | 98,577 | 47,956 | 18,720 | 11,331 | ||||||||||||
RE Barren Ridge 1 Holdings LLC | 209,850 | 124,017 | 10,384 | 7,630 | ||||||||||||
RE Holiday Holdings LLC | 331,862 | 247,722 | 18,744 | (345 | ) | |||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 189,157 | 86,596 | 23,910 | 2,188 | ||||||||||||
Chun-cheon Energy Co., Ltd. | 607,823 | 490,375 | 313,438 | (24,490 | ) | |||||||||||
Chile Solar JV SpA | 69,903 | 186 | 591 | 1,686 | ||||||||||||
PT. Tanjung Power Indonesia | 654,365 | 556,287 | 109,825 | 16,489 | ||||||||||||
Shuweihat Asia Power Investment B.V. | 37,389 | 5 | — | (159 | ) | |||||||||||
RE Pioneer Holdings LLC | 246,571 | 184,258 | 12,207 | (1,912 | ) |
(*) | The profit for the year ended December 31, 2019 is reduced by the associate entity’s net income attributable to non-controlling interests. |
59
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||
Investees | Net assets | Percentage of ownership (*) | Share in net assets | Investment differential | Intercompany transaction | Others | Book value | |||||||||||||||||||||
<Associates> | ||||||||||||||||||||||||||||
Korea Gas Corporation | 22.02 | % | 1,764,962 | — | — | (62,989 | ) | 1,701,973 | ||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 1,992,670 | 34.00 | % | 677,508 | — | — | — | 677,508 | ||||||||||||||||||||
PT. Bayan Resources TBK | 718,201 | 20.00 | % | 143,640 | 371,942 | — | (76,379 | ) | 439,203 | |||||||||||||||||||
Korea Power Exchange | 267,622 | 100.00 | % | 267,622 | — | — | — | 267,622 | ||||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 736,025 | 34.00 | % | 250,249 | — | — | — | 250,249 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 415,036 | 29.00 | % | 120,360 | — | — | — | 120,360 | ||||||||||||||||||||
PT. Cirebon Electric Power | 457,076 | 27.50 | % | 125,696 | — | — | — | 125,696 | ||||||||||||||||||||
S-Power Co., Ltd. | 238,009 | 49.00 | % | 116,624 | — | (1,564 | ) | — | 115,060 | |||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 271,059 | 34.01 | % | 92,187 | 1,757 | (3,509 | ) | (12,582 | ) | 77,853 | ||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 285,475 | 25.00 | % | 71,369 | 305 | (1,131 | ) | (289 | ) | 70,254 | ||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 187,727 | 40.00 | % | 75,091 | 12,800 | (16,782 | ) | — | 71,109 | |||||||||||||||||||
SPC Power Corporation | 249,315 | 38.00 | % | 94,740 | — | — | (27,329 | ) | 67,411 | |||||||||||||||||||
Korea Electric Power Corporation Fund | 41,950 | 98.09 | % | 41,149 | — | — | 3 | 41,152 | ||||||||||||||||||||
YTN Co., Ltd. | 186,564 | 21.43 | % | 39,978 | — | — | — | 39,978 | ||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 73,438 | 61.02 | % | 44,815 | 971 | — | — | 45,786 | ||||||||||||||||||||
PT. Wampu Electric Power | 69,699 | 46.00 | % | 32,061 | — | — | — | 32,061 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
Jamaica Public Service Company Limited | 670,342 | 40.00 | % | 268,136 | 42,937 | — | (29,837 | ) | 281,236 | |||||||||||||||||||
KEPCO SPC Power Corporation | 313,517 | 75.20 | % | 235,765 | — | — | — | 235,765 | ||||||||||||||||||||
Amman Asia Electric Power Company | 319,822 | 60.00 | % | 191,893 | — | — | — | 191,893 | ||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 463,037 | 40.00 | % | 185,215 | — | — | — | 185,215 | ||||||||||||||||||||
Rabigh Electricity Company | 420,757 | 40.00 | % | 168,303 | — | (62,981 | ) | (805 | ) | 104,517 | ||||||||||||||||||
Kelar S.A. | 104,012 | 65.00 | % | 67,608 | 2,767 | — | — | 70,375 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 55,492 | 38.00 | % | 21,087 | 29,695 | — | — | 50,782 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 14,543 | 50.00 | % | 7,272 | — | — | — | 7,272 | ||||||||||||||||||||
RE Holiday Holdings LLC | 140,297 | 50.00 | % | 70,148 | — | — | — | 70,148 | ||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 108,438 | 40.00 | % | 43,375 | — | — | — | 43,375 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 100,703 | 29.90 | % | 30,110 | 3 | — | (248 | ) | 29,865 | |||||||||||||||||||
Chile Solar JV SpA | 66,515 | 50.00 | % | 33,257 | — | — | — | 33,257 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 92,095 | 35.00 | % | 32,233 | — | — | — | 32,233 | ||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 19,848 | 49.00 | % | 9,725 | — | — | — | 9,725 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 103,378 | 50.00 | % | 51,689 | — | — | — | 51,689 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(5) | Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won | ||||||||||||||||||||||||||||
December 31, 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 | ||||||||||||||||||||
Gemeng International Energy Co., Ltd. | 1,973,217 | 34.00 | % | 670,896 | — | — | — | 670,896 | ||||||||||||||||||||
PT. Bayan Resources TBK | 680,061 | 20.00 | % | 136,012 | 385,508 | — | (76,379 | ) | 445,141 | |||||||||||||||||||
Korea Power Exchange | 260,757 | 100.00 | % | 260,757 | — | — | (1,858 | ) | 258,899 | |||||||||||||||||||
GS Donghae Electric Power Co., Ltd. | 752,891 | 34.00 | % | 255,983 | — | — | — | 255,983 | ||||||||||||||||||||
Hyundai Green Power Co., Ltd. | 428,459 | 29.00 | % | 124,253 | — | — | — | 124,253 | ||||||||||||||||||||
PT. Cirebon Electric Power | 448,818 | 27.50 | % | 123,425 | — | — | — | 123,425 | ||||||||||||||||||||
S-Power Co., Ltd. | 239,597 | 49.00 | % | 117,403 | — | (1,619 | ) | — | 115,784 | |||||||||||||||||||
Dongducheon Dream Power Co., Ltd. | 267,746 | 34.01 | % | 91,060 | 1,757 | (3,688 | ) | (12,582 | ) | 76,547 | ||||||||||||||||||
Xe-Pian Xe-Namnoy Power Co., Ltd. | 296,102 | 25.00 | % | 74,026 | 305 | (1,106 | ) | (290 | ) | 72,935 | ||||||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | 174,280 | 40.00 | % | 69,712 | 12,800 | (15,556 | ) | — | 66,956 | |||||||||||||||||||
SPC Power Corporation | 228,085 | 38.00 | % | 86,672 | — | — | (23,089 | ) | 63,583 | |||||||||||||||||||
Korea Electric Power Corporation Fund | 41,923 | 98.09 | % | 41,122 | — | — | 4 | 41,126 | ||||||||||||||||||||
YTN Co., Ltd. | 185,488 | 21.43 | % | 39,747 | — | — | — | 39,747 | ||||||||||||||||||||
Nepal Water & Energy Development Company Private Limited | 51,526 | 58.59 | % | 30,173 | 972 | — | — | 31,145 | ||||||||||||||||||||
PT. Wampu Electric Power | 63,815 | 46.00 | % | 29,355 | — | — | — | 29,355 | ||||||||||||||||||||
<Joint ventures> | ||||||||||||||||||||||||||||
Jamaica Public Service Company Limited | 602,440 | 40.00 | % | 240,976 | (80,161 | ) | — | 92,792 | 253,607 | |||||||||||||||||||
KEPCO SPC Power Corporation | 285,631 | 75.20 | % | 214,794 | — | — | — | 214,794 | ||||||||||||||||||||
Amman Asia Electric Power Company | 320,274 | 60.00 | % | 192,164 | — | — | — | 192,164 | ||||||||||||||||||||
Datang Chifeng Renewable Power Co., Ltd. | 463,269 | 40.00 | % | 185,307 | — | — | — | 185,307 | ||||||||||||||||||||
Rabigh Electricity Company | 438,372 | 40.00 | % | 175,349 | — | (65,450 | ) | (803 | ) | 109,096 | ||||||||||||||||||
Kelar S.A. | 104,298 | 65.00 | % | 67,794 | 2,668 | — | — | 70,462 | ||||||||||||||||||||
Solar Philippines Calatagan Corporation | 50,621 | 38.00 | % | 19,236 | 29,694 | — | — | 48,930 | ||||||||||||||||||||
RE Barren Ridge 1 Holdings LLC | 85,833 | 50.00 | % | 42,916 | — | — | — | 42,916 | ||||||||||||||||||||
RE Holiday Holdings LLC | 84,140 | 50.00 | % | 42,070 | — | — | — | 42,070 | ||||||||||||||||||||
Datang KEPCO Chaoyang Renewable Power Co., Ltd. | 102,561 | 40.00 | % | 41,024 | — | — | — | 41,024 | ||||||||||||||||||||
Chun-cheon Energy Co., Ltd. | 117,448 | 29.90 | % | 35,117 | — | — | (245 | ) | 34,872 | |||||||||||||||||||
Chile Solar JV SpA | 69,717 | 50.00 | % | 34,859 | — | — | — | 34,859 | ||||||||||||||||||||
PT. Tanjung Power Indonesia | 98,078 | 35.00 | % | 34,327 | — | — | — | 34,327 | ||||||||||||||||||||
Shuweihat Asia Power Investment B.V. | 37,384 | 49.00 | % | 18,318 | — | — | — | 18,318 | ||||||||||||||||||||
RE Pioneer Holdings LLC | 62,313 | 50.00 | % | 31,156 | — | — | — | 31,156 |
(*) | The percentage of ownership shown above is after considering the treasury stocks and others. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(6) | As of June 30, 2020 and December 31, 2019, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Unrecognized equity interest | Accumulated unrecognized equity interest | Unrecognized equity interest | Accumulated unrecognized equity interest | |||||||||||||
Hadong Mineral Fiber Co., Ltd. | 2 | — | 2 | |||||||||||||
Eurasia Energy Holdings | 7 | 192 | 6 | 185 | ||||||||||||
Gunsan Bio Energy Co., Ltd. | 146 | 3,438 | 1,090 | 3,292 | ||||||||||||
Daehan Wind Power PSC | 2,618 | 2,618 | — | — | ||||||||||||
Hyundai Energy Co., Ltd. | (2,322 | ) | 36,409 | 12,890 | 38,731 | |||||||||||
Nghi Son 2 Power LLC | 110,804 | 213,628 | 61,165 | 102,824 | ||||||||||||
Samcheok Eco Materials Co., Ltd. | (3 | ) | 785 | (497 | ) | 788 | ||||||||||
Naepo Green Energy Co., Ltd. | (3,766 | ) | 5,515 | 9,281 | 9,281 | |||||||||||
Barakah One Company | (54,983 | ) | 61,113 | 116,096 | 116,096 | |||||||||||
Pioneer Gas Power Limited | 7,930 | 8,044 | 114 | 114 | ||||||||||||
Korea Nuclear Partners Co., Ltd., | 68 | 68 | — | — | ||||||||||||
Incheon New Power Co., Ltd. | 107 | 107 | — | — | ||||||||||||
Ecollite Co., Ltd. | 1,180 | 1,180 | — | — | ||||||||||||
Green Energy Electricity Generation Co., Ltd. | 199 | 199 | — | — | ||||||||||||
Bigeum Resident Photovoltaic Power Co., Ltd | 11 | 11 | — | — |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(7) | As of June 30, 2020, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows: |
(i) | Gemeng International Energy Co., Ltd. |
Gemeng International Energy Co., Ltd. issued put options on 8% of its shares to its financial investors, KEPCO Woori Sprott PEF (NPS Co-Pa PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Group provided a performance guarantee on this agreement.
(ii) | Taebaek Wind Power Co., Ltd. |
In the case where non-controlling shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.
(iii) | Pyeongchang Wind Power Co., Ltd. |
In the case where non-controlling shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation.
(iv) | Daeryun Power Co., Ltd. |
The Group reserves the right to participate in the transfer of shares in Daeryun Power Co., Ltd. on the same terms as Daeryun E&S Co., Ltd., if Daeryun E&S Co., Ltd. wishes to transfer its shares in Daeryun Power Co., Ltd.
(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., Ltd. 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) | 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.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(7) | As of June 30, 2020 shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued: |
(ix) | 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.
(x) | 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.
(xi) | 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.
(xii) | 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.
(xiii) | 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(8) | Significant restrictions on the Group’s abilities on associates or joint ventures as of June 30, 2020 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. | |
Pyeongchang Wind Power Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. 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. | |
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. | |
Solaseado Solar Power Co., Ltd. | Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without 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 | 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. | |
Chester Solar V SpA | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Diego de Almagro Solar SpA | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Laurel SpA | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained. | |
Chester Solar I SpA | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
17. | Investments in Associates and Joint Ventures, Continued |
(8) | Significant restrictions on the Group’s abilities on associates or joint ventures as of June 30, 2020 are as follows, continued: |
Company | Nature and extent of any significant restrictions | |
GS Donghae Electric Power Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. | |
Busan Shinho Solar Power Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied. | |
Honam Wind Power Co., Ltd. | Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied. | |
Seokmun Energy Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained. | |
Chun-cheon Energy Co., Ltd. | Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, principals and interests on subordinated loans shall not be paid until the collateralized debt is fully repaid. | |
Yeonggwangbaeksu Wind Power Co., Ltd. | Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained. | |
Yeonggwang Wind Power Co., Ltd. | Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. | |
Jamaica Public Service Company Limited | Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained. | |
PT. Tanjung Power Indonesia | Dividends can only be paid when all conditions of the loan agreement are satisfied. | |
DE Energia SpA | Dividends can only be paid when all conditions of the loan agreement are satisfied. | |
Daesan Green Energy Co., Ltd. | Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. | |
Taebaek Gadeoksan Wind Power Co., Ltd. | Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
18. | Property, Plant and Equipment |
(1) | Property, plant and equipment as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Accumulated impairment losses | Book value | ||||||||||||||||
Land | (23,464 | ) | — | — | 13,862,110 | |||||||||||||||
Buildings | 21,274,409 | (59,495 | ) | (8,734,148 | ) | (4,962 | ) | 12,475,804 | ||||||||||||
Structures | 72,010,758 | (183,497 | ) | (26,771,923 | ) | (9,633 | ) | 45,045,705 | ||||||||||||
Machinery | 91,263,830 | (150,084 | ) | (41,319,022 | ) | (461,034 | ) | 49,333,690 | ||||||||||||
Ships | 2,279 | — | (2,128 | ) | — | 151 | ||||||||||||||
Vehicles | 312,052 | (1,319 | ) | (246,819 | ) | (116 | ) | 63,798 | ||||||||||||
Equipment | 1,786,680 | (161 | ) | (1,420,214 | ) | (42 | ) | 366,263 | ||||||||||||
Tools | 1,116,433 | (270 | ) | (966,760 | ) | (38 | ) | 149,365 | ||||||||||||
Construction-in-progress | 31,666,075 | (77,426 | ) | — | (158,598 | ) | 31,430,051 | |||||||||||||
Right-of-use assets | 7,732,107 | — | (3,092,610 | ) | — | 4,639,497 | ||||||||||||||
Asset retirement costs | 11,600,069 | — | (4,378,324 | ) | (146,423 | ) | 7,075,322 | |||||||||||||
Others | 13,184,845 | — | (10,788,676 | ) | — | 2,396,169 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(495,716 | ) | (97,720,624 | ) | (780,846 | ) | 166,837,925 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
In millions of won | December 31, 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 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(493,328 | ) | (92,687,798 | ) | (778,199 | ) | 164,701,827 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
18. | Property, Plant and Equipment, Continued |
(2) | Changes in property, plant and equipment for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||||||
Beginning balance | Acquisitions | Disposals | Depreciation | Impairment (Reversals) | Others | Ending balance | ||||||||||||||||||||||
Land | 51 | (12,078 | ) | (23 | ) | — | 49,561 | 13,885,574 | ||||||||||||||||||||
(Government grants) | (21,817 | ) | — | 2 | — | — | (1,649 | ) | (23,464 | ) | ||||||||||||||||||
Buildings | 12,445,706 | 394 | (5,402 | ) | (422,894 | ) | — | 517,495 | 12,535,299 | |||||||||||||||||||
(Government grants) | (61,920 | ) | — | — | 2,570 | — | (145 | ) | (59,495 | ) | ||||||||||||||||||
Structures | 45,178,870 | 342 | (184,491 | ) | (1,204,013 | ) | — | 1,438,494 | 45,229,202 | |||||||||||||||||||
(Government grants) | (186,554 | ) | — | 1,048 | 4,748 | — | (2,739 | ) | (183,497 | ) | ||||||||||||||||||
Machinery | 49,907,300 | 207,657 | (88,034 | ) | (2,720,010 | ) | (9,162 | ) | 2,186,023 | 49,483,774 | ||||||||||||||||||
(Government grants) | (158,907 | ) | — | 224 | 8,599 | — | — | (150,084 | ) | |||||||||||||||||||
Ships | 201 | — | — | (50 | ) | — | — | 151 | ||||||||||||||||||||
Vehicles | 70,585 | 1,793 | (50 | ) | (16,216 | ) | — | 9,005 | 65,117 | |||||||||||||||||||
(Government grants) | (2,275 | ) | — | — | 987 | — | (31 | ) | (1,319 | ) | ||||||||||||||||||
Equipment | 374,115 | 33,916 | (272 | ) | (88,878 | ) | — | 47,543 | 366,424 | |||||||||||||||||||
(Government grants) | (241 | ) | — | — | 87 | — | (7 | ) | (161 | ) | ||||||||||||||||||
Tools | 164,064 | 7,994 | (11 | ) | (37,709 | ) | — | 15,297 | 149,635 | |||||||||||||||||||
(Government grants) | (403 | ) | — | — | 134 | — | (1 | ) | (270 | ) | ||||||||||||||||||
Construction-in-progress | 28,419,470 | 6,660,162 | (163 | ) | — | 6,737 | (3,578,729 | ) | 31,507,477 | |||||||||||||||||||
(Government grants) | (61,211 | ) | 4,967 | — | — | — | (21,182 | ) | (77,426 | ) | ||||||||||||||||||
Right-of-use assets | 4,783,573 | 137,393 | (189 | ) | (299,281 | ) | — | 18,001 | 4,639,497 | |||||||||||||||||||
Asset retirement costs | 7,374,527 | 28 | — | (414,163 | ) | — | 114,930 | 7,075,322 | ||||||||||||||||||||
Others | 2,628,681 | 2,902 | (4,329 | ) | (458,955 | ) | — | 227,870 | 2,396,169 | |||||||||||||||||||
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7,057,599 | (293,745 | ) | (5,645,067 | ) | (2,425 | ) | 1,019,736 | 166,837,925 | ||||||||||||||||||||
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
18. | Property, Plant and Equipment, Continued |
(2) | Changes in property, plant and equipment for the six-month period ended June 30 2020 and for the year ended December 31, 2019 are as follows, continued: |
In millions of won | December 31, 2019 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisitions | Disposals | 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. |
(*3) | ‘Others’ include the amounts reclassified from construction-in-progress to other assets during the prior year relating to the assets which became usable two years before but were considered immaterial. |
(*4) | The Group recognized impairment loss of |
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
19. | Investment Properties |
(1) | Investment properties as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Acquisition cost | Government grants | Accumulated depreciation | Book value | |||||||||||||
Land | — | — | 134,708 | |||||||||||||
Buildings | 58,503 | (11 | ) | (33,282 | ) | 25,210 | ||||||||||
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(11 | ) | (33,282 | ) | 159,918 | ||||||||||||
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In millions of won | December 31, 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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(2) | Changes in investment properties for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Beginning balance | Depreciation | Others | Ending balance | |||||||||||||
Land | — | 4,811 | 134,708 | |||||||||||||
Buildings | 28,696 | (735 | ) | (2,740 | ) | 25,221 | ||||||||||
(Government grants) | (13 | ) | — | 2 | (11 | ) | ||||||||||
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(735 | ) | 2,073 | 159,918 | |||||||||||||
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In millions of won | December 31, 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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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
19. | Investment Properties, Continued |
(3) | Income and expenses related to investment properties for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Rental income | 3,571 | 2,872 | 5,079 | |||||||||||||
Operating and maintenance expenses related to rental income | (378 | ) | (735 | ) | (235 | ) | (479 | ) | ||||||||
Operating and maintenance expenses not related to rental income | — | — | (3,812 | ) | (3,812 | ) | ||||||||||
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2,836 | (1,175 | ) | 788 | |||||||||||||
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(4) | Fair value of investment properties as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Book value | Fair value | Book value | Fair value | |||||||||||||
Land | 225,470 | 129,897 | 202,042 | |||||||||||||
Buildings | 25,210 | 34,777 | 28,683 | 38,046 | ||||||||||||
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260,247 | 158,580 | 240,088 | ||||||||||||||
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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. |
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
20. | Construction Contracts |
(1) | Changes in major contract amount in which revenue is not yet recognized for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||
Beginning balance | Increase (decrease) (*) | Recognized as revenue | Ending balance | |||||||||||||
Nuclear power plant construction in UAE and others | 1,424,548 | (471,378 | ) | 3,688,311 |
(*) | For the six-month period ended June 30, 2020, the increase in balance of contracts from new orders and foreign exchange impact is |
In millions of won | December 31, 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 increase in balance of contracts from new orders and foreign exchange impact is |
(2) | Accumulated earned revenue, costs and others related to the Group’s construction contracts as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||
Accumulated earned revenue | Accumulated costs | Accumulated profit | ||||||||||
Nuclear power plant construction in UAE and others | 19,698,473 | 1,421,654 |
In millions of won | December 31, 2019 | |||||||||||
Accumulated earned revenue | Accumulated costs | Accumulated profit | ||||||||||
Nuclear power plant construction in UAE and others | 19,566,647 | 1,404,840 |
(3) | Gross amount due from customers recognized as assets and due to customers recognized as liabilities for contract work as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Assets (*1) | Liabilities (*2) | Assets (*1) | Liabilities (*2) | |||||||||||||
Nuclear power plant construction in UAE and others | 3,988 | 53,827 | 73,420 |
(*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. |
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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
20. | Construction Contracts, Continued |
(5) | Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the six-month period ended June 30, 2020 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||||||||||||||
Effect from changes in accounting estimates | 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 | Changes in estimated total contract costs | Gross | Allowance for doubtful accounts | Gross | Allowance for doubtful accounts | ||||||||||||||||||||||||||||
Transmission and distribution | 9,736 | 2,293 | 7,443 | 60,956 | 24,268 | — | — | — | ||||||||||||||||||||||||||||
Plant maintenance & engineering service | 997 | (15,896 | ) | (30,293 | ) | 14,397 | (7,846 | ) | 30,310 | 170 | 53,422 | 602 | ||||||||||||||||||||||||
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(6,160 | ) | (28,000 | ) | 21,840 | 53,110 | 54,578 | 170 | 53,422 | 602 | |||||||||||||||||||||||||||
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21. | Intangible Assets other than Goodwill |
(1) | Intangible assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Acquisition cost | Government grants | Accumulated amortization | Accumulated impairment losses | Book value | ||||||||||||||||
Software | (181 | ) | (578,828 | ) | — | 149,327 | ||||||||||||||
Licenses and franchises | 3,398 | — | (3,398 | ) | — | — | ||||||||||||||
Copyrights, patents rights and other industrial rights | 100,730 | — | (45,075 | ) | (9,178 | ) | 46,477 | |||||||||||||
Mining rights | 596,912 | — | (32,538 | ) | (521,505 | ) | 42,869 | |||||||||||||
Development expenditures | 943,013 | (5,852 | ) | (842,402 | ) | (19 | ) | 94,740 | ||||||||||||
Intangible assets under development | 68,293 | (6,715 | ) | — | (12,845 | ) | 48,733 | |||||||||||||
Usage rights of donated assets and others | 582,825 | — | (399,015 | ) | — | 183,810 | ||||||||||||||
Leasehold rights | 27,843 | — | (21,088 | ) | — | 6,755 | ||||||||||||||
Greenhouse gas emissions rights | 160,548 | — | — | — | 160,548 | |||||||||||||||
Others | 573,300 | (77 | ) | (129,048 | ) | (15,549 | ) | 428,626 | ||||||||||||
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(12,825 | ) | (2,051,392 | ) | (559,096 | ) | 1,161,885 | ||||||||||||||
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In millions of won | December 31, 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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Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
21. | Intangible Assets other than Goodwill, Continued |
(2) | Changes in intangible assets for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||||||
Beginning balance | Acquisitions | Disposals | Amortization | Impairment | Others | Ending balance | ||||||||||||||||||||||
Software | 5,926 | (9,271 | ) | (34,521 | ) | — | 22,379 | 149,508 | ||||||||||||||||||||
(Government grants) | (235 | ) | — | — | 54 | — | — | (181 | ) | |||||||||||||||||||
Copyrights, patents rights and other industrial rights | 53,261 | 160 | — | (4,189 | ) | — | (2,755 | ) | 46,477 | |||||||||||||||||||
Mining rights | 43,723 | 1,622 | — | (2,938 | ) | — | 462 | 42,869 | ||||||||||||||||||||
Development expenditures | 93,843 | 426 | — | (15,511 | ) | — | 21,834 | 100,592 | ||||||||||||||||||||
(Government grants) | (1,492 | ) | — | — | 644 | — | (5,004 | ) | (5,852 | ) | ||||||||||||||||||
Intangible assets under development | 60,490 | 21,270 | — | — | — | (26,312 | ) | 55,448 | ||||||||||||||||||||
(Government grants) | (11,029 | ) | — | — | — | — | 4,314 | (6,715 | ) | |||||||||||||||||||
Usage rights of donated assets and others | 193,161 | — | — | (9,118 | ) | — | (233 | ) | 183,810 | |||||||||||||||||||
(Government grants) | — | — | — | — | — | — | — | |||||||||||||||||||||
Leasehold rights | 5,318 | — | — | (416 | ) | — | 1,853 | 6,755 | ||||||||||||||||||||
Greenhouse gas emissions rights | 41,656 | 62,852 | (26,293 | ) | — | — | 82,333 | 160,548 | ||||||||||||||||||||
Others | 426,364 | 512 | (45 | ) | (11,617 | ) | (3,505 | ) | 16,994 | 428,703 | ||||||||||||||||||
(Government grants) | (79 | ) | — | — | 2 | — | — | (77 | ) | |||||||||||||||||||
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92,768 | (35,609 | ) | (77,610 | ) | (3,505 | ) | 115,865 | 1,161,885 | ||||||||||||||||||||
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In millions of won | December 31, 2019 | |||||||||||||||||||||||||||
Beginning balance | Acquisitions | 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 |
74
Table of Contents
KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
21. | Intangible Assets other than Goodwill, Continued |
(3) | Significant specific intangible assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won and thousands of Australian dollars | ||||||||||
June 30, 2020 | ||||||||||
Type | Description | Currency | Amount | Remaining useful lives | ||||||
Software | ERP system and others | KRW | 257 | 8 months ~ 10 months | ||||||
Electricity sales information system | KRW | 5,278 | 2 years and 5 months | |||||||
Copyrights, patents rights and other industrial rights | Smart technology verification and standard design project conducting right | KRW | 5,553 | 2 years and 3 months | ||||||
Contributions to ARP NRC DC | KRW | 31,300 | 7 years and 6 months | |||||||
Mining rights | Mining right of Bylong mine | AUD | — | — (*) | ||||||
Development expenditures | Electricity sales information system | KRW | 11,756 | 1 year and 8 months | ||||||
Usage rights of donated assets and others | Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right | KRW KRW | | 29,116 4,722 |
| 6 years and 5 months 9 months | ||||
Others | Occupancy and use of public waters | KRW | 89,741 | 16 years and 7 months | ||||||
Greenhouse gas emissions rights | KRW | 160,548 | — | |||||||
Business rights | KRW | 169,081 | 29 years and 5 months |
(*) | The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full. |
In millions of won and thousands of Australian dollars | ||||||||||
December 31, 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 months | ||||
Others | Occupancy and use of public waters | KRW | 92,446 | 17 years and 1 month | ||||||
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. had recognized impairment losses in full. |
(4) | For the six-month periods ended June 30, 2020 and 2019, the Group recognized research and development expenses of |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
22. | Trade and Other Payables |
Trade and other payables as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Trade payables | — | 2,859,721 | — | |||||||||||||
Other trade payables | 2,132,618 | 2,485,331 | 1,952,659 | 2,446,714 | ||||||||||||
Accrued expenses | 1,157,543 | 84,903 | 1,028,869 | 2,033 | ||||||||||||
Leasehold deposits received | 2,568 | 709 | 2,571 | 709 | ||||||||||||
Other deposits received | 88,421 | 65,780 | 163,382 | 68,702 | ||||||||||||
Lease liabilities | 648,003 | 4,398,469 | 635,349 | 4,434,784 | ||||||||||||
Dividends payable | 5,829 | — | 6,851 | — | ||||||||||||
Others (*) | — | 11,278 | — | 12,818 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
7,046,470 | 6,649,402 | 6,965,760 | ||||||||||||||
|
|
|
|
|
|
|
|
(*) | Details of others as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance received from local governments | 4,278 | — | 5,818 | |||||||||||||
Others | — | 7,000 | — | 7,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
11,278 | — | 12,818 | ||||||||||||||
|
|
|
|
|
|
|
|
23. | Borrowings and Debt Securities |
(1) | Borrowings and debt securities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 1,098,555 | |||||||
Current portion of long-term borrowings | 135,151 | 217,579 | ||||||
Current portion of debt securities | 6,655,161 | 7,545,485 | ||||||
Less: Current portion of discount on long-term borrowings | (1,031 | ) | (1,000 | ) | ||||
Less: Current portion of discount on debt securities | (2,783 | ) | (2,780 | ) | ||||
|
|
|
| |||||
8,101,060 | 8,857,839 | |||||||
|
|
|
| |||||
Non-current liabilities | ||||||||
Long-term borrowings | 3,516,969 | 3,411,052 | ||||||
Debt securities | 59,268,007 | 55,716,183 | ||||||
Less: Discount on long-term borrowings | (18,042 | ) | (21,309 | ) | ||||
Less: Discount on debt securities | (160,484 | ) | (88,920 | ) | ||||
Add: Premium on debt securities | 1,593 | 1,696 | ||||||
|
|
|
| |||||
62,608,043 | 59,018,702 | |||||||
|
|
|
| |||||
67,876,541 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(2) | Repayment schedule of borrowings and debt securities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||
June 30, 2020 | ||||||||
Type | Borrowings | Debt securities | ||||||
Less than 1 year | 6,655,161 | |||||||
1 ~ 5 years | 2,216,228 | 32,001,468 | ||||||
Over 5 years | 1,300,741 | 27,266,539 | ||||||
|
|
|
| |||||
65,923,168 | ||||||||
|
|
|
|
In millions of won | ||||||||
December 31, 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 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(3) | Short-term borrowings as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||||||
June 30, 2020 | ||||||||||||||||||
Type | Creditor | Interest rate (%) | Maturity | Foreign currency | Local currency | |||||||||||||
Local short-term borrowings | DB financial investment and others | 0.78 ~ 1.57 | 2020.07.09 ~ 2020.08.27 | — | ||||||||||||||
Electronic short-term bonds | KB Securities and others | 0.61 ~ 0.95 | 2020.07.06 ~ 2020.09.04 | — | 180,000 | |||||||||||||
Foreign short-term borrowings | Korea Development Bank and others | 1.27 ~ 2.06 | 2020.08.24 ~ 2020.09.23 | USD | 21,460 | 25,766 | ||||||||||||
Foreign short-term borrowings | Korea Development Bank and others | | 1M Libor + 55bp ~ 1M Libor + 125bp | | 2020.08.17 ~ 2020.09.02 | USD | 77,756 | 93,362 | ||||||||||
Foreign short-term borrowings | BDO Unibank | 3M BVAL + 50bp | 2020.12.20 | PHP | 225,000 | 5,434 | ||||||||||||
|
| |||||||||||||||||
�� |
| |||||||||||||||||
In millions of won and thousands of foreign currencies | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||
Type | Creditor | Interest rate (%) | Maturity | Foreign currency | Local currency | |||||||||||||
Local short-term borrowings | DB financial investment and others | 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 | 3M BVAL + 50bp | 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 | |||||||||||||
|
| |||||||||||||||||
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||||
June 30, 2020 | ||||||||||||||||
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 | — | 55,671 | ||||||||||||
Operating funds | 2.33~2.87 | 2022~2023 | — | 34,300 | ||||||||||||
Operating funds | 1yr KoFC bond rate +0.95 | 2022 | — | 10,000 | ||||||||||||
Hana Bank | Commercial Paper | 3M CD+0.13~0.32 | 2021~2024 | — | 1,150,000 | |||||||||||
Facility | 4.60 | 2028 | — | 11,785 | ||||||||||||
Facility | 3yr KTB rate-1.25 Standard overdraft rate+2.45 | 2020~2035 | — | 29,752 | ||||||||||||
IBK | PF Refinancing | CD+1.25 | 2030 | — | 10,020 | |||||||||||
Export-Import Bank of Korea | Project loans | 1.50 | 2026 | — | 17,677 | |||||||||||
Operating funds | 3.04 | 2023 | — | 15,700 | ||||||||||||
Korea Energy Agency | Development of power resources | 3yr KTB rate-2.25 | 2023~2025 | — | 3,747 | |||||||||||
Facility | 3yr KTB rate-2.25 | 2020~2024 | — | 1,792 | ||||||||||||
Project loans | — | 2023 | — | 1,197 | ||||||||||||
Others | KTB rate-2.25 | 2024~2028 | — | 14,870 | ||||||||||||
Shinhan Bank | Facility | CB rate+1.10 | 2028 | — | 17,677 | |||||||||||
Others | 3.95 | 2034 | — | 91,725 | ||||||||||||
Others | Standard overdraft rate+1.00 | 2034 | — | 91,725 | ||||||||||||
Kookmin Bank | Facility | MOR+0.79 3M CD+1.79 | 2023~2031 | — | 31,846 | |||||||||||
Others | Facility | 1.75~6.80 | 2026~2037 | — | 481,465 | |||||||||||
Facility | CB rate+1.20 3M CD+1.60 Standard overdraft rate+2.45 | 2023~2037 | — | 79,028 | ||||||||||||
PF Refinancing | 4.10 | 2030 | — | 27,833 | ||||||||||||
Others | 4.50~7.90 | 2022~2039 | — | 107,131 | ||||||||||||
|
| |||||||||||||||
2,288,164 | ||||||||||||||||
|
| |||||||||||||||
Foreign long-term borrowings | ||||||||||||||||
Korea Energy Agency | Project loans | — | 2021~2023 | USD | 8,744 | 10,499 | ||||||||||
Export-Import Bank of Korea and others | Direct loan and others | 1M Libor+1.80~3.20 | 2036 | USD | 98,818 | 118,651 | ||||||||||
Direct loan and others | 3M Libor+2.75~3.70 | 2027 | JOD | 140,162 | 237,365 | |||||||||||
PF Loan | 6M Libor+2.50~2.70 | 2032 | USD | 116,151 | 139,463 | |||||||||||
Others | 3.88 | 2021 | USD | 289,868 | 348,045 | |||||||||||
POSCO and others | Shareholder’s loan | 8.00 | 2023 | USD | 12,927 | 15,521 | ||||||||||
Shareholder’s loan | 8.00 | 2031 | JOD | 4,853 | 8,218 | |||||||||||
Samsung Life Insurance and others | Syndicated Loan | 3.10 | 2032 | JPY | 4,682,816 | 52,263 | ||||||||||
Woori Bank and others | Syndicated Loan | JPY 6M Libor+2.00 | 2032 | JPY | 3,020,746 | 33,713 | ||||||||||
IFC and others | Others | 6M Libor+5.00 | 2031 | USD | 233,350 | 280,183 | ||||||||||
Federal Financing Bank and others | PF Loan | 2.39~13.00 | 2031~2038 | USD | 98,792 | 118,620 | ||||||||||
Others | Others | — | — | USD | 1,178 | 1,415 | ||||||||||
|
| |||||||||||||||
1,363,956 | ||||||||||||||||
|
| |||||||||||||||
3,652,120 | ||||||||||||||||
Less: Discount on long-term borrowings | (19,073 | ) | ||||||||||||||
Less: Current portion of long-term borrowings | (135,151 | ) | ||||||||||||||
Add: Current portion of discount on long-term borrowings | 1,031 | |||||||||||||||
|
| |||||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(4) | Long-term borrowings as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||||||||
December 31, 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 rate+2.45 | 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 | ||||||||||
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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(5) | Local debt securities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||||
Issue date | Maturity | Interest rate (%) | June 30, 2020 | December 31, 2019 | ||||||||||||||||
Electricity bonds | 2010.07.08~2020.04.29 | 2020.07.08~2049.10.24 | 1.32~5.06 | 28,450,000 | ||||||||||||||||
Corporate bonds (*) | 2009.10.16~2020.06.18 | 2020.07.02~2050.06.18 | 1.29~6.00 | 25,573,577 | 24,463,577 | |||||||||||||||
|
|
|
| |||||||||||||||||
54,533,577 | 52,913,577 | |||||||||||||||||||
Less: Discount on local debt securities |
| (45,503 | ) | (42,274 | ) | |||||||||||||||
Less: Current portion of local debt securities |
| (5,890,000 | ) | (6,340,000 | ) | |||||||||||||||
Add: Current portion of discount on local debt securities |
| 1,642 | 1,409 | |||||||||||||||||
|
|
|
| |||||||||||||||||
46,532,712 | ||||||||||||||||||||
|
|
|
|
(*) | Among the corporate bonds, each holder of HeeMang Sunlight Power Co., Ltd.’s private equity bonds, amounting to |
(6) | Foreign debt securities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||||||||
June 30, 2020 | ||||||||||||||
Type | Issue date | Maturity | Interest rate (%) | Foreign currency | Local currency | |||||||||
FY-96 | 1996.04.01~1996.12.06 | 2026.12.01~2096.04.01 | 6.00~7.95 | USD | 278,701 | |||||||||
FY-97 | 1997.01.31~1997.08.04 | 2027.02.01~2027.08.01 | 6.75~7.00 | USD | 314,717 | 377,881 | ||||||||
FY-04 | 2004.04.23 | 2034.04.23 | 5.13 | USD | 286,920 | 344,505 | ||||||||
FY-11 | 2011.07.13 | 2021.07.13 | 4.75 | USD | 500,000 | 600,350 | ||||||||
FY-12 | 2012.09.19 | 2022.09.19 | 3.00 | �� | USD | 750,000 | 900,525 | |||||||
FY-13 | 2013.09.25 | 2020.09.25 | 5.75 | AUD | 325,000 | 268,164 | ||||||||
FY-14 | 2014.07.30 | 2029.07.30 | 3.57 | USD | 100,000 | 120,070 | ||||||||
FY-15 | 2015.06.15 | 2025.06.15 | 3.25 | USD | 300,000 | 360,210 | ||||||||
FY-16 | 2016.01.21 | 2021.07.21 | 2.50 | USD | 300,000 | 360,210 | ||||||||
FY-17 | 2017.06.19~2017.07.25 | 2022.06.19~2027.07.25 | 2.38~3.13 | USD | 800,000 | 960,560 | ||||||||
FY-17 | 2017.10.30 | 2037.10.30 | 1.70 | EUR | 40,000 | 54,008 | ||||||||
FY-17 | 2017.11.16 | 2037.11.16 | 2.36 | SEK | 450,000 | 57,924 | ||||||||
FY-18 | 2018.01.29~2018.07.25 | 2021.01.29~2023.07.25 | 3.00~3.88 | USD | 1,800,000 | 2,161,260 | ||||||||
FY-18 | 2018.03.13 | 2028.03.13 | 3.35 | HKD | 1,650,000 | 255,618 | ||||||||
FY-19 | 2019.01.22~2019.06.24 | 2022.01.22~2024.06.24 | 2.50~3.38 | USD | 800,000 | 960,560 | ||||||||
FY-19 | 2019.02.27 | 2024.02.27 | 0.13 | CHF | 200,000 | 252,446 | ||||||||
FY-19 | 2019.07.19 | 2024.07.19~2027.07.19 | 0.00~0.05 | CHF | 300,000 | 378,669 | ||||||||
FY-19 | 2019.07.22 | 2022.07.22 | 2.38 | USD | 300,000 | 360,210 | ||||||||
FY-19 | 2019.10.30 | 2024.10.30 | 3M BBSW+97bp | AUD | 300,000 | 247,536 | ||||||||
FY-19 | 2019.12.19 | 2037.12.31 | 3.30~5.70 | USD | 394,220 | 473,339 | ||||||||
FY-20 | 2020.02.03 | 2025.02.23 | 2.13 | USD | 300,000 | 360,210 | ||||||||
FY-20 | 2020.06.15 | 2025.06.15 | 1.13 | USD | 500,000 | 600,350 | ||||||||
FY-20 | 2020.05.06 | 2025.05.06 | 1.75 | USD | 500,000 | 600,350 | ||||||||
|
| |||||||||||||
11,389,591 | ||||||||||||||
Less: Discount on foreign debt securities | (117,764 | ) | ||||||||||||
Add: Premium on foreign debt securities | 1,593 | |||||||||||||
Less: Current portion of foreign debt securities | (765,161 | ) | ||||||||||||
Add: Current portion of discount on foreign debt securities | 1,141 | |||||||||||||
|
| |||||||||||||
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
23. | Borrowings and Debt Securities, Continued |
(6) | Foreign debt securities as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||||||
December 31, 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 | 0.00~0.05 | 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 | 3.30~5.70 | 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 | |||||||||||||
|
| |||||||||||||
|
|
(7) | Changes in borrowings and debt securities for the six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||
Beginning balance | 61,034,627 | |||||||
Cash flow | 2,439,902 | 4,021,612 | ||||||
Effect of exchange rate fluctuations | 461,094 | 469,385 | ||||||
Others | (68,434 | ) | (3,666 | ) | ||||
|
|
|
| |||||
Ending balance | 65,521,958 | |||||||
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|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
24. | Lease |
1) | Group as a lessee |
(1) | Lease contracts |
The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognizedW14,550 million as expense for the six-month period ended June 30, 2020. The Group also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e. approximately less thanW5 million), and recognizedW1,197 million as expense for the six-month period ended June 30, 2020.
The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.
(2) | Right-of-use assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||
Acquisition cost | Accumulated depreciation | Book value | ||||||||||
Land | (74,059 | ) | 648,335 | |||||||||
Buildings | 55,650 | (26,772 | ) | 28,878 | ||||||||
Structures | 28,458 | (3,453 | ) | 25,005 | ||||||||
Machinery | 1,308 | (548 | ) | 760 | ||||||||
Ships | 4,214,611 | (643,505 | ) | 3,571,106 | ||||||||
Vehicles | 24,607 | (10,634 | ) | 13,973 | ||||||||
Others (*) | 2,685,079 | (2,333,639 | ) | 351,440 | ||||||||
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| |||||||
(3,092,610 | ) | 4,639,497 | ||||||||||
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|
|
(*) | Includes power purchase agreements (“PPA”) with GS EPS and two other LNG combined power suppliers. |
In millions of won | December 31, 2019 | |||||||||||
Acquisition cost | 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 | ||||||||
|
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|
|
| |||||||
(2,790,437 | ) | 4,783,573 | ||||||||||
|
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|
|
|
|
(*) | Includes power purchase agreements (“PPA”) with GS EPS and two other LNG combined power suppliers. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
24. | Lease, Continued |
(3) | Changes in right-of-use assets for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||
Beginning balance | Increase | Depreciation | Decrease | Others | Ending balance | |||||||||||||||||||
Land | 925 | (24,794 | ) | — | 28,130 | 648,335 | ||||||||||||||||||
Buildings | 34,577 | 14,690 | (13,077 | ) | — | (7,312 | ) | 28,878 | ||||||||||||||||
Structures | 25,644 | 260 | (899 | ) | — | — | 25,005 | |||||||||||||||||
Machinery | 824 | — | (64 | ) | — | — | 760 | |||||||||||||||||
Ships | 3,688,289 | 100,857 | (218,040 | ) | — | — | 3,571,106 | |||||||||||||||||
Vehicles | 13,708 | 4,484 | (3,790 | ) | — | (429 | ) | 13,973 | ||||||||||||||||
Others | 376,457 | 16,177 | (38,617 | ) | (189 | ) | (2,388 | ) | 351,440 | |||||||||||||||
|
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|
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|
| |||||||||||||
137,393 | (299,281 | ) | (189 | ) | �� | 18,001 | 4,639,497 | |||||||||||||||||
|
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|
|
|
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|
|
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|
|
|
In millions of won | December 31, 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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|
|
|
|
|
|
|
|
(*) | Includes transferred amount of |
(4) | Lease liabilities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||
Less than 1 year | ||||
1 ~ 5 years | 2,346,292 | |||
More than 5 years | 2,635,507 | |||
|
| |||
5,670,012 | ||||
Less: Discount | (623,540 | ) | ||
|
| |||
Present value of lease payment | ||||
|
|
In millions of won | December 31, 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 | ||||
|
|
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`KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
24. | Lease, Continued |
(5) | The details of the liquidity classification of lease liabilities as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Current lease liabilities | 635,349 | |||||||
Non-current lease liabilities | 4,398,469 | 4,434,784 | ||||||
|
|
|
| |||||
5,070,133 | ||||||||
|
|
|
|
(6) | Changes in lease liabilities for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||
Beginning balance | Increase | Decrease | Interest expenses | Others (*) | Ending balance | |||||||||||||||||||
Lease liabilities | 128,230 | (410,689 | ) | 56,712 | 202,086 | 5,046,472 |
(*) | Includes translation effect of foreign currency lease liabilities and others. |
In millions of won | December 31, 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. |
(7) | Details of expense relating to lease contracts as lessee for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Depreciation of right-of-use assets | 299,280 | 138,430 | 273,570 | |||||||||||||
Interest expenses of lease liabilities | 26,266 | 56,712 | 21,824 | 42,205 | ||||||||||||
Lease expenses for short-term leases | 4,912 | 14,550 | 2,702 | 7,424 | ||||||||||||
Lease expenses for leases of low-value assets | 799 | 1,197 | 206 | 547 | ||||||||||||
Variable lease payments | 6,425 | 17,288 | (4,361 | ) | (8,642 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
389,027 | 158,801 | 315,105 | ||||||||||||||
|
|
|
|
|
|
|
|
(8) | For the six-month periods ended June 30, 2020 and 2019, 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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
24. | Lease, Continued |
2) | Group as a lessor |
(1) | Finance lease contracts |
The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25 year lease term, and an 89.1MW level Fujeij wind power plant over a 20 year lease term. Also, the Group has provided fly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 30 energy storage system installation projects and 115 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 for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Finance income on the net investment in the lease | 61,689 | 20,755 | 41,182 |
(3) | Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Less than 1 year | 173,093 | |||||||
1 ~ 2 years | 158,767 | 150,895 | ||||||
2 ~ 3 years | 156,231 | 150,596 | ||||||
3 ~ 4 years | 153,032 | 149,364 | ||||||
4 ~ 5 years | 150,384 | 145,964 | ||||||
More than 5 years | 1,812,436 | 1,740,652 | ||||||
|
|
|
| |||||
2,610,774 | 2,510,564 | |||||||
Less: Unearned finance income | (1,388,784 | ) | (1,331,723 | ) | ||||
|
|
|
| |||||
Net investment in the lease (*) | 1,178,841 | |||||||
|
|
|
|
(*) | Net investment in the lease includes present value of unguaranteed residual value amounting to |
The implicit interest rate for a lease term is determined on the lease contract date. The average implicit interest rate of the finance lease contracts is from 3.5% up to 16.74% per year as of June 30, 2020. (prior year : 3.5%~16.48%)
(4) | Changes in the allowance for doubtful accounts of finance lease receivables for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 1,133 | |||||||
Bad debt expense | — | — | ||||||
Reversal of allowance for doubtful accounts | (226 | ) | (271 | ) | ||||
|
|
|
| |||||
Ending balance | 862 | |||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
25. | Employment Benefits |
(1) | Employment benefit obligations as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Net defined benefit asset | (1,047 | ) | ||||||
Net defined benefit obligations | 2,272,642 | 1,925,134 | ||||||
Other long-term employee benefit obligations | 4,447 | 4,720 | ||||||
|
|
|
| |||||
1,928,807 | ||||||||
|
|
|
|
(2) | Principal assumptions on actuarial valuation as of June 30, 2020 and December 31, 2019 are as follows: |
June 30, 2020 | December 31, 2019 | |||
Discount rate | 1.68% ~ 1.89% | 1.92% ~ 2.05% | ||
Weighted average future salary and benefit levels | 4.25% | 4.39% | ||
Weighted average duration | 13.24 years | 13.23 years |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
25. | Employment Benefits, Continued |
(3) | Details of expense relating to defined benefit plans for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Current service cost | 235,098 | 102,443 | 202,145 | |||||||||||||
Interest cost | 20,376 | 39,834 | 20,544 | 40,300 | ||||||||||||
Expected return on plan assets | (10,387 | ) | (20,738 | ) | (10,203 | ) | (20,419 | ) | ||||||||
Past service cost | — | (2,027 | ) | — | — | |||||||||||
Loss from settlement | — | — | (243 | ) | (478 | ) | ||||||||||
|
|
|
|
|
|
|
| �� | ||||||||
252,167 | 112,541 | 221,548 | ||||||||||||||
|
|
|
|
|
|
|
|
Expenses as described above are recognized in those items below in the financial statements.
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Cost of sales | 183,676 | 83,365 | 164,840 | |||||||||||||
Selling and administrative expenses | 22,802 | 41,694 | 14,511 | 28,222 | ||||||||||||
Others | 14,106 | 26,797 | 14,665 | 28,486 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
252,167 | 112,541 | 221,548 | ||||||||||||||
|
|
|
|
|
|
|
|
In addition, for the six-month periods ended June 30, 2020 and 2019, employee benefit obligations expenses ofW27,336 million andW38,008 million, respectively, are recognized as cost of sales; andW3,847 million andW8,579 million, respectively, are recognized as selling and administrative expenses; andW5,364 million andW7,365 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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
25. | Employment Benefits, Continued |
(4) | Details of defined benefit obligations as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Present value of defined benefit obligation from funded plans | 4,035,400 | |||||||
Fair value of plan assets | (2,111,550 | ) | (2,111,313 | ) | ||||
|
|
|
| |||||
Net liabilities incurred from defined benefit plans | 1,924,087 | |||||||
|
|
|
|
(5) | Changes in the present value of defined benefit obligations for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 3,414,116 | |||||||
Current service cost | 235,098 | 440,300 | ||||||
Interest cost (*) | 39,834 | 83,619 | ||||||
Remeasurement component | 135,655 | (93,736 | ) | |||||
Past service cost | (2,027 | ) | 301,442 | |||||
Loss (profit) from settlement | — | (2,018 | ) | |||||
Actual payments | (60,012 | ) | (108,057 | ) | ||||
Others | 244 | (266 | ) | |||||
|
|
|
| |||||
Ending balance | 4,035,400 | |||||||
|
|
|
|
(*) | 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 1,775,331 | |||||||
Expected return | 20,738 | 41,597 | ||||||
Remeasurement component | 1,688 | (11,186 | ) | |||||
Contributions by the employers | 3,304 | 348,386 | ||||||
Actual payments | (25,493 | ) | (42,815 | ) | ||||
|
|
|
| |||||
Ending balance | 2,111,313 | |||||||
|
|
|
|
In addition, losses on accumulated remeasurement component amounted toW204,983 million andW117,779 million have been recognized as other comprehensive income or loss for the six-month period ended June 30, 2020 and for the year ended December 31, 2019, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
25. | Employment Benefits, Continued |
(7) | Details of the fair value of plan assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Equity instruments | 189,235 | |||||||
Debt instruments | 608,589 | 648,265 | ||||||
Bank deposit | 232,348 | 199,743 | ||||||
Others | 1,054,369 | 1,074,070 | ||||||
|
|
|
| |||||
2,111,313 | ||||||||
|
|
|
|
For the six-month period ended June 30, 2020 and for the year ended December 31, 2019, actual returns on plan assets amounted toW22,426 million andW30,411 million, respectively.
(8) | Remeasurement component recognized in other comprehensive income (loss) for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Actuarial gain from changes in financial assumptions | (2,916 | ) | ||||||
Experience adjustments, etc. | 46,433 | (90,820 | ) | |||||
Expected return | (1,688 | ) | 11,186 | |||||
|
|
|
| |||||
(82,550 | ) | |||||||
|
|
|
|
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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
26. | Provisions |
(1) | Provisions as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Employment benefits | ||||||||||||||||
Provisions for employment benefits | — | 975,619 | — | |||||||||||||
Litigation | ||||||||||||||||
Litigation provisions | 35,588 | 56,454 | 39,177 | 49,221 | ||||||||||||
Decommissioning cost | ||||||||||||||||
Nuclear plants | — | 16,170,373 | — | 15,994,039 | ||||||||||||
Spent fuel | 473,351 | 880,010 | 401,741 | 953,539 | ||||||||||||
Radioactive waste | 79,537 | 1,806,954 | 77,053 | 1,811,029 | ||||||||||||
PCBs | — | 148,252 | — | 152,981 | ||||||||||||
Other recovery provisions | — | 29,778 | — | 10,773 | ||||||||||||
Others | ||||||||||||||||
Power plant regional support program | 166,900 | — | 140,133 | — | ||||||||||||
Transmission regional support program | 149,777 | — | 139,785 | — | ||||||||||||
Provisions for financial guarantee | 4 | 77,465 | 111 | 81,246 | ||||||||||||
Provisions for RPS | 50,180 | — | 2,889 | — | ||||||||||||
Provisions for greenhouse gas emissions obligations | 769,240 | — | 682,459 | — | ||||||||||||
Others | 122,262 | 16,872 | 145,754 | 13,220 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
19,186,158 | 2,604,721 | 19,066,048 | ||||||||||||||
|
|
|
|
|
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|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
26. | Provisions, Continued |
(2) | Changes in provisions for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||
Beginning balance | Increase in provision | Payments | Reversals | Others | Ending balance | |||||||||||||||||||
Employment benefits | ||||||||||||||||||||||||
Provisions for employment benefits | 563,484 | (421,509 | ) | — | 2 | 1,117,596 | ||||||||||||||||||
Litigation | ||||||||||||||||||||||||
Litigation provisions | 88,398 | 26,420 | (21,353 | ) | (18,648 | ) | 17,225 | 92,042 | ||||||||||||||||
Decommissioning cost | ||||||||||||||||||||||||
Nuclear plants | 15,994,039 | 195,230 | (18,896 | ) | — | — | 16,170,373 | |||||||||||||||||
Spent fuel | 1,355,280 | 190,329 | (192,248 | ) | — | — | 1,353,361 | |||||||||||||||||
Radioactive waste | 1,888,082 | 21,290 | (22,881 | ) | — | — | 1,886,491 | |||||||||||||||||
PCBs | 152,981 | 1,508 | (6,237 | ) | — | — | 148,252 | |||||||||||||||||
Other recovery provisions | 10,773 | 18,704 | — | — | 301 | 29,778 | ||||||||||||||||||
Others | ||||||||||||||||||||||||
Power plant regional support program | 140,133 | 39,445 | (20,307 | ) | — | 7,629 | 166,900 | |||||||||||||||||
Transmission regional support program | 139,785 | 106,823 | (96,831 | ) | — | — | 149,777 | |||||||||||||||||
Provisions for financial guarantee | 81,357 | 6,038 | — | (9,926 | ) | — | 77,469 | |||||||||||||||||
Provisions for RPS | 2,889 | 207,384 | (160,093 | ) | — | — | 50,180 | |||||||||||||||||
Provisions for greenhouse gas emissions obligations | 682,459 | 88,331 | — | (23,349 | ) | 21,799 | 769,240 | |||||||||||||||||
Others | 158,974 | 15,095 | (34,603 | ) | (2,845 | ) | 2,513 | 139,134 | ||||||||||||||||
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|
|
|
|
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|
|
|
|
|
| |||||||||||||
1,480,081 | (994,958 | ) | (54,768 | ) | 49,469 | 22,150,593 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
In millions of won | December 31, 2019 | |||||||||||||||||||||||
Beginning balance | Increase in provision | Payments | Reversals | 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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|
|
|
|
|
|
|
|
| |||||||||||||
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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
27. | Government Grants |
(1) | Government grants as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Land | (21,817 | ) | ||||||
Buildings | (59,495 | ) | (61,920 | ) | ||||
Structures | (183,497 | ) | (186,554 | ) | ||||
Machinery | (150,084 | ) | (158,907 | ) | ||||
Vehicles | (1,319 | ) | (2,275 | ) | ||||
Equipment | (161 | ) | (241 | ) | ||||
Tools | (270 | ) | (403 | ) | ||||
Construction-in-progress | (77,426 | ) | (61,211 | ) | ||||
Investment properties | (11 | ) | (13 | ) | ||||
Software | (181 | ) | (235 | ) | ||||
Development expenditures | (5,852 | ) | (1,492 | ) | ||||
Intangible assets under development | (6,715 | ) | (11,029 | ) | ||||
Other intangible assets | (77 | ) | (79 | ) | ||||
|
|
|
| |||||
(506,176 | ) | |||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
27. | Government Grants, Continued |
(2) | Changes in government grants for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||||||||||
Beginning balance | Receipt | Acquisitions | Offset items with depreciation expense and others | Disposals | Others | Ending balance | ||||||||||||||||||||||
Cash | (21,436 | ) | — | — | — | 21,436 | — | |||||||||||||||||||||
Land | (21,817 | ) | — | — | — | 2 | (1,649 | ) | (23,464 | ) | ||||||||||||||||||
Buildings | (61,920 | ) | — | — | 2,570 | — | (145 | ) | (59,495 | ) | ||||||||||||||||||
Structures | (186,554 | ) | — | — | 4,748 | 1,048 | (2,739 | ) | (183,497 | ) | ||||||||||||||||||
Machinery | (158,907 | ) | — | — | 8,599 | 224 | — | (150,084 | ) | |||||||||||||||||||
Vehicles | (2,275 | ) | — | — | 987 | — | (31 | ) | (1,319 | ) | ||||||||||||||||||
Equipment | (241 | ) | — | — | 87 | — | (7 | ) | (161 | ) | ||||||||||||||||||
Tools | (403 | ) | — | — | 134 | — | (1 | ) | (270 | ) | ||||||||||||||||||
Construction-in-progress | (61,211 | ) | — | 4,967 | — | — | (21,182 | ) | (77,426 | ) | ||||||||||||||||||
Investment properties | (13 | ) | — | — | — | — | 2 | (11 | ) | |||||||||||||||||||
Software | (235 | ) | — | — | 54 | — | — | (181 | ) | |||||||||||||||||||
Development expenditures | (1,492 | ) | — | — | 644 | — | (5,004 | ) | (5,852 | ) | ||||||||||||||||||
Intangible assets under development | (11,029 | ) | — | — | — | — | 4,314 | (6,715 | ) | |||||||||||||||||||
Other intangible assets | (79 | ) | — | — | 2 | — | — | (77 | ) | |||||||||||||||||||
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|
|
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| |||||||||||||||
(21,436 | ) | 4,967 | 17,825 | 1,274 | (5,006 | ) | (508,552 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In millions of won | December 31, 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
28. | Deferred Revenue |
Deferred revenue related to the Group’s construction contracts for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 8,606,563 | |||||||
Increase during the period | 540,429 | 1,199,783 | ||||||
Recognized as revenue during the period | (308,196 | ) | (604,808 | ) | ||||
|
|
|
| |||||
Ending balance | 9,201,538 | |||||||
|
|
|
|
29. | Non-financial Liabilities |
Non-financial liabilities as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||
Advance received | 343,027 | 3,825,240 | 192,863 | |||||||||||||
Unearned revenue | 31,266 | 6,376 | 30,988 | 6,589 | ||||||||||||
Deferred revenue | 604,970 | 8,828,801 | 590,928 | 8,610,610 | ||||||||||||
Withholdings | 340,581 | 10,879 | 160,977 | 10,901 | ||||||||||||
Others | 1,194,461 | 70,419 | 1,080,220 | 13,489 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
9,259,502 | 5,688,353 | 8,834,452 | ||||||||||||||
|
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|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
30. | Contributed Capital |
(1) | Details of shares issued as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won except share information | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||
Shares authorized | Shares issued | Par value per share (in won) | Owned by government (*) | Owned by others | Total | |||||||||||||||||||
Common shares | 1,200,000,000 | 641,964,077 | 1,640,385 | 1,569,435 | 3,209,820 |
(*) | Korea Development Bank’s interest of |
In millions of won except share information | ||||||||||||||||||||||||
December 31, 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 |
(2) | Details in number of issued capital stock for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
Number of shares | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 641,964,077 | 641,964,077 | ||||||
|
|
|
| |||||
Ending balance | 641,964,077 | 641,964,077 | ||||||
|
|
|
|
(3) | Details of share premium as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Share premium | 843,758 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
31. | Retained Earnings and Dividends Paid |
(1) | Details of retained earnings as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Legal reserve (*) | 1,604,910 | |||||||
Voluntary reserves | 32,179,066 | 34,785,425 | ||||||
Retained earnings before appropriations | 15,509,657 | 12,811,798 | ||||||
|
|
|
| |||||
Retained earnings | 49,202,133 | |||||||
|
|
|
|
(*) | The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders. |
(2) | Details of voluntary reserves as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Reserve for investment on social overhead capital | 5,277,449 | |||||||
Reserve for research and human development (*) | 330,000 | 330,000 | ||||||
Reserve for business expansion | 26,361,617 | 28,967,976 | ||||||
Reserve for equalizing dividends | 210,000 | 210,000 | ||||||
|
|
|
| |||||
34,785,425 | ||||||||
|
|
|
|
(*) | The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea. |
(3) | Changes in retained earnings for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 51,519,119 | |||||||
Net profit (loss) for the period attributed to owner of the Group | 189,191 | (2,345,517 | ) | |||||
Changes in equity method retained earnings | 1,118 | (6,789 | ) | |||||
Remeasurement of defined benefit liability, net of tax | (98,606 | ) | 36,160 | |||||
Transfer of gain (loss) on valuation of financial assets at fair value through other comprehensive income | — | (840 | ) | |||||
Transactions between consolidated entities | (203 | ) | — | |||||
|
|
|
| |||||
Ending balance | 49,202,133 | |||||||
|
|
|
|
(4) | Dividends paid for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Number of shares issued | Number of treasury stocks | Number of shares eligible for dividends | Dividends paid per share (in won) | Dividends paid | ||||||||||||||||
Common shares | 641,964,077 | — | 641,964,077 | — | ||||||||||||||||
In millions of won | December 31, 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 | — |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
31. | Retained Earnings and Dividends Paid, Continued |
(5) | Changes in retained earnings of investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | 3,969 | |||||||
Changes | 1,118 | (6,789 | ) | |||||
|
|
|
| |||||
Ending balance | (2,820 | ) | ||||||
|
|
|
|
(6) | Changes in remeasurement components related to defined benefit liability for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Beginning balance | (219,381 | ) | ||||||
Changes | (137,015 | ) | 76,395 | |||||
Income tax effect | 38,409 | (40,235 | ) | |||||
Transfer to reserve for business expansion | 11,402 | 65,442 | ||||||
|
|
|
| |||||
Ending balance | (117,779 | ) | ||||||
|
|
|
|
32. | Hybrid Bonds |
Hybrid bonds classified as equity (non-controlling interest) as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | ||||||||||||||||||||||
Issuer | Hybrid bond | Issued date | Maturity | Yield (%) | June 30, 2020 | December 31, 2019 | ||||||||||||||||
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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
33. | Other Components of Equity |
(1) | Other components of equity as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Other capital surplus | 1,226,364 | |||||||
Accumulated other comprehensive loss | (327,976 | ) | (280,730 | ) | ||||
Other equity | 13,294,973 | 13,294,973 | ||||||
|
|
|
| |||||
14,240,607 | ||||||||
|
|
|
|
(2) | Changes in other capital surplus for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Gain on disposal of treasury stocks | Others | Subtotal | Gain on disposal of treasury stocks | Others | Subtotal | |||||||||||||||||||
Beginning balance | 838,840 | 1,226,364 | 387,524 | 847,301 | 1,234,825 | |||||||||||||||||||
Issuance of share capital of subsidiaries and others | — | (544 | ) | (544 | ) | — | — | — | ||||||||||||||||
Others | — | (905 | ) | (905 | ) | — | (8,461 | ) | (8,461 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending balance | 837,391 | 1,224,915 | 387,524 | 838,840 | 1,226,364 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
33. | Other Components of Equity, Continued |
(3) | Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Financial asset at fair value through other comprehensive income (loss) valuation reserve | Shares in other comprehensive income (loss) of investments in associates and joint ventures | Reserve for overseas operations translation | Reserve for income (loss) on valuation of derivatives | Total | ||||||||||||||||
Beginning balance | 142,896 | (294,898 | ) | (36,129 | ) | (280,730 | ) | |||||||||||||
Changes in the unrealized fair value of financial assets at FVOCI, net of tax | (40,262 | ) | — | — | — | (40,262 | ) | |||||||||||||
Shares in other comprehensive income (loss) of associates and joint ventures, net of tax | — | (41,743 | ) | — | — | (41,743 | ) | |||||||||||||
Foreign currency translation of foreign operations, net of tax | — | — | (4,067 | ) | — | (4,067 | ) | |||||||||||||
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax | — | — | — | 38,826 | 38,826 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ending balance | 101,153 | (298,965 | ) | 2,697 | (327,976 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
In millions of won | December 31, 2019 | |||||||||||||||||||
Financial asset at fair value through other comprehensive income (loss) valuation reserve | Shares in other comprehensive income of investments in associates and joint ventures | Reserve for overseas operations translation | Reserve for income (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 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(4) | Other equity as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Statutory revaluation reserve | 13,295,098 | |||||||
Changes in other equity | (125 | ) | (125 | ) | ||||
|
|
|
| |||||
13,294,973 | ||||||||
|
|
|
|
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
34. | Sales |
Details of sales for the three and six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||||||||||||||
Domestic | Overseas | Total | ||||||||||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||||||||
[Type of goods and services] |
| |||||||||||||||||||||||
Sales of goods | 27,018,682 | 91,207 | 153,816 | 12,559,654 | 27,172,498 | |||||||||||||||||||
Electricity | 12,295,584 | 26,599,967 | — | — | 12,295,584 | 26,599,967 | ||||||||||||||||||
Heat supply | 31,807 | 136,675 | — | — | 31,807 | 136,675 | ||||||||||||||||||
Others | 141,056 | 282,040 | 91,207 | 153,816 | 232,263 | 435,856 | ||||||||||||||||||
Sales related to rendering of services | 44,571 | 96,804 | 48,792 | 116,784 | 93,363 | 213,588 | ||||||||||||||||||
Sales related to construction services | 42,735 | 70,741 | 221,222 | 400,637 | 263,957 | 471,378 | ||||||||||||||||||
Revenue related to transfer of assets from customers | 155,559 | 308,196 | — | — | 155,559 | 308,196 | ||||||||||||||||||
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27,494,423 | 361,221 | 671,237 | 13,072,533 | 28,165,660 | ||||||||||||||||||||
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[Timing of revenue recognition] |
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Performance obligations satisfied at a point in time | 27,018,682 | 91,207 | 153,816 | 12,559,654 | 27,172,498 | |||||||||||||||||||
Performance obligations satisfied over time | 242,865 | 475,741 | 270,014 | 517,421 | 512,879 | 993,162 | ||||||||||||||||||
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27,494,423 | 361,221 | 671,237 | 13,072,533 | 28,165,660 | ||||||||||||||||||||
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In millions of won | June 30, 2019 | |||||||||||||||||||||||
Domestic | Overseas | Total | ||||||||||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||||||||
[Type of goods and services] |
| |||||||||||||||||||||||
Sales of goods | 27,163,089 | 65,480 | 142,791 | 12,551,869 | 27,305,880 | |||||||||||||||||||
Electricity | 12,384,623 | 26,822,148 | — | — | 12,384,623 | 26,822,148 | ||||||||||||||||||
Heat supply | 22,376 | 154,974 | — | — | 22,376 | 154,974 | ||||||||||||||||||
Others | 79,389 | 185,967 | 65,480 | 142,791 | 144,870 | 328,758 | ||||||||||||||||||
Sales related to rendering of services | 38,656 | 90,414 | 46,882 | 90,003 | 85,538 | 180,417 | ||||||||||||||||||
Sales related to construction services | 31,511 | 49,028 | 256,151 | 494,687 | 287,661 | 543,715 | ||||||||||||||||||
Revenue related to transfer of assets from customers | 145,906 | 289,366 | — | — | 145,906 | 289,366 | ||||||||||||||||||
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27,591,897 | 368,513 | 727,481 | 13,070,974 | 28,319,378 | ||||||||||||||||||||
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[Timing of revenue recognition] |
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Performance obligations satisfied at a point in time | 27,163,089 | 65,480 | 142,791 | 12,551,869 | 27,305,880 | |||||||||||||||||||
Performance obligations satisfied over time | 216,073 | 428,808 | 303,033 | 584,690 | 519,105 | 1,013,498 | ||||||||||||||||||
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27,591,897 | 368,513 | 727,481 | 13,070,974 | 28,319,378 | ||||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
35. | Selling and Administrative Expenses |
Selling and administrative expenses for the three and six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Salaries | 514,778 | 194,997 | 391,652 | |||||||||||||
Retirement benefit expense | 26,396 | 45,541 | 19,598 | 36,801 | ||||||||||||
Welfare and benefit expense | 38,008 | 66,136 | 31,378 | 59,068 | ||||||||||||
Insurance expense | 3,743 | 6,323 | 3,604 | 6,623 | ||||||||||||
Depreciation | 53,796 | 106,921 | 56,988 | 116,043 | ||||||||||||
Amortization of intangible assets | 18,376 | 35,697 | 26,434 | 40,398 | ||||||||||||
Bad debt expense (reversal) | 489 | 18,966 | 10,772 | 15,724 | ||||||||||||
Commission | 91,316 | 199,732 | 161,884 | 341,851 | ||||||||||||
Advertising expense | 6,952 | 12,361 | 6,894 | 13,777 | ||||||||||||
Training expense | 1,065 | 2,048 | 1,728 | 3,281 | ||||||||||||
Vehicle maintenance expense | 2,074 | 4,171 | 1,591 | 4,457 | ||||||||||||
Publishing expense | 687 | 1,524 | 32 | 1,471 | ||||||||||||
Business promotion expense | 936 | 1,770 | 722 | 1,493 | ||||||||||||
Rent expense | 7,635 | 13,221 | 7,277 | 14,159 | ||||||||||||
Telecommunication expense | 2,243 | 4,438 | 2,092 | 4,357 | ||||||||||||
Transportation expense | 232 | 660 | 242 | 453 | ||||||||||||
Taxes and dues | 50,183 | 57,331 | 37,060 | 41,076 | ||||||||||||
Expendable supplies expense | 1,957 | 3,897 | 1,454 | 3,207 | ||||||||||||
Water, light and heating expense | 2,452 | 6,931 | 2,113 | 6,568 | ||||||||||||
Repairs and maintenance expense | 16,801 | 30,414 | 16,386 | 29,117 | ||||||||||||
Ordinary development expense | 34,174 | 76,143 | 37,553 | 78,583 | ||||||||||||
Travel expense | 2,529 | 5,987 | 4,037 | 8,546 | ||||||||||||
Clothing expense | 2,585 | 3,281 | 1,693 | 2,136 | ||||||||||||
Survey and analysis expense | 191 | 379 | 212 | 429 | ||||||||||||
Membership fee | 435 | 976 | 312 | 746 | ||||||||||||
Others | 29,624 | 59,734 | 30,222 | 61,635 | ||||||||||||
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1,279,360 | 657,275 | 1,283,651 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
36. | Other Non-operating Income and Expense |
(1) | Other non-operating income for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Reversal of other provisions | 19,892 | — | 2,186 | |||||||||||||
Reversal of other allowance for doubtful accounts | 2,441 | 2,465 | 960 | 960 | ||||||||||||
Gains on government grants | 58 | 129 | 67 | 139 | ||||||||||||
Gains on assets contributed | 12,047 | 22,484 | 2,707 | 2,771 | ||||||||||||
Gains on liabilities exempted | 384 | 1,214 | 616 | 719 | ||||||||||||
Compensation and reparations revenue | 20,902 | 40,397 | 19,822 | 38,664 | ||||||||||||
Revenue from research contracts | — | 682 | 1,427 | 2,577 | ||||||||||||
Rental income | 49,586 | 96,453 | 47,069 | 94,051 | ||||||||||||
Others | 7,268 | 13,816 | 22,786 | 29,090 | ||||||||||||
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| |||||||||
197,532 | 95,454 | 171,157 | ||||||||||||||
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(2) | Other non-operating expense for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Compensation and reparations expenses | 8,778 | 77 | 77 | |||||||||||||
Accretion expenses of other provisions | 58 | 114 | 5,225 | 383 | ||||||||||||
Depreciation expenses on investment properties | 364 | 735 | 4,047 | 4,291 | ||||||||||||
Depreciation expenses on idle assets | 1,638 | 3,276 | 1,636 | 3,272 | ||||||||||||
Other bad debt expense | 7,152 | 7,187 | 4,849 | 5,696 | ||||||||||||
Donations | 78,051 | 89,195 | 15,578 | 27,563 | ||||||||||||
Others | 4,321 | 7,376 | 4,383 | 9,856 | ||||||||||||
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116,661 | 35,795 | 51,138 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
37. | Other Gains (Losses) |
Composition of other gains (losses) for the three and six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Other gains | ||||||||||||||||
Gains on disposal of property, plant and equipment | 56,163 | 20,353 | 29,187 | |||||||||||||
Gains on disposal of intangible assets | 1,556 | 1,556 | — | 97 | ||||||||||||
Reversal of impairment losses on property, plant and equipment | 6,737 | 6,737 | — | — | ||||||||||||
Gains on foreign currency translation | 4,853 | 16,872 | 13,907 | 10,955 | ||||||||||||
Gains on foreign currency transactions | 15,323 | 23,152 | 10,866 | 17,166 | ||||||||||||
Gains on insurance proceeds | 5,665 | 5,665 | — | 13 | ||||||||||||
Others | 112,712 | 173,955 | 43,890 | 110,235 | ||||||||||||
Other losses | ||||||||||||||||
Losses on disposal of property, plant and equipment | (17,084 | ) | (19,253 | ) | (12,755 | ) | (26,747 | ) | ||||||||
Losses on impairment of property, plant and equipment | (9,162 | ) | (9,162 | ) | (27,406 | ) | (29,685 | ) | ||||||||
Losses on impairment of intangible assets | (3,505 | ) | (3,505 | ) | (61,696 | ) | (61,696 | ) | ||||||||
Losses on foreign currency translation | (3,080 | ) | (11,661 | ) | — | (51,468 | ) | |||||||||
Losses on foreign currency transactions | (9,526 | ) | (31,626 | ) | (19,055 | ) | (28,915 | ) | ||||||||
Others | (14,919 | ) | (57,385 | ) | (26,496 | ) | (37,818 | ) | ||||||||
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| |||||||||
151,508 | (58,392 | ) | (68,676 | ) | ||||||||||||
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|
|
38. | Finance Income |
Finance income for the three and six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Interest income | 130,576 | 63,275 | 124,579 | |||||||||||||
Dividends income | 4,044 | 4,085 | 2,427 | 3,740 | ||||||||||||
Gains on disposal of financial assets | 3,825 | 3,826 | 114 | 964 | ||||||||||||
Gains on valuation of financial assets at fair value through profit or loss | 3,875 | 10,100 | 3,830 | 8,391 | ||||||||||||
Gains on valuation of derivatives | — | 413,664 | 181,570 | 346,113 | ||||||||||||
Gains on transaction of derivatives | 67,369 | 107,266 | 30,425 | 65,569 | ||||||||||||
Gains on foreign currency translation | 264,319 | 116,799 | 57,044 | 86,337 | ||||||||||||
Gains on foreign currency transactions | 3,540 | 8,068 | 9,665 | 13,832 | ||||||||||||
Other finance income | 139 | 287 | — | — | ||||||||||||
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| |||||||||
794,671 | 348,350 | 649,525 | ||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
39. | Finance Expenses |
Finance expenses for the three and six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | |||||||||||||
Interest expense | 1,020,873 | 513,152 | 1,016,529 | |||||||||||||
Losses on sale of financial assets | 318 | 365 | 203 | 261 | ||||||||||||
Losses on valuation of financial assets at fair value through profit or loss | 860 | 1,085 | — | 296 | ||||||||||||
Losses on valuation of derivatives | 106,766 | 43,436 | 25,964 | 34,930 | ||||||||||||
Losses on transaction of derivatives | 12,473 | 24,455 | 7,145 | 16,807 | ||||||||||||
Losses on foreign currency translation | — | 537,000 | 264,971 | 434,778 | ||||||||||||
Losses on foreign currency transactions | 58,681 | 62,548 | 4,224 | 8,748 | ||||||||||||
Losses on repayment of financial liabilities | 30 | 30 | — | — | ||||||||||||
Others | 842 | 1,430 | 933 | 2,619 | ||||||||||||
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| |||||||||
1,691,222 | 816,592 | 1,514,968 | ||||||||||||||
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|
|
Capitalization rates for the six-month periods ended June 30, 2020 and 2019 are 2.41%~4.00% and 1.60%~3.85% respectively.
40. | Income Taxes |
Income tax expense (benefit) is calculated by adjusting adjustments recognized in the current period, changes in deferred tax assets and liabilities resulting from temporary differences, and income tax expense related to items recognized as other than profit or loss. The average effective tax rate for the current period is 29.29%, and for the previous period, the Group did not calculate the average effective tax rate, because income tax benefit occurred for the period.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
41. | Assets Held-for-Sale |
Assets held-for-sale as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Land | 23,002 | |||||||
Buildings | — | 193 | ||||||
Investment stocks (*1, 2) | 289 | 4,921 | ||||||
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| |||||
28,116 | ||||||||
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|
|
(*1) | Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of June 30, 2020 after the distribution of residual assets, and has been reclassified to assets held-for-sale, during the year ended December 31, 2019. |
(*2) | Garolim Tidal Power Plant Co., Ltd. was in the process of liquidating its business as of June 30, 2020 and has been reclassified to assets held-for-sale, during the year ended December 31, 2019. |
42. | Expenses Classified by Nature |
Expenses classified by nature for the six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 6,884,401 | 6,884,401 | ||||||||||
Salaries | 514,778 | 2,033,503 | 2,548,281 | |||||||||
Retirement benefit expense | 45,541 | 211,012 | 256,553 | |||||||||
Welfare and benefit expense | 66,136 | 235,490 | 301,626 | |||||||||
Insurance expense | 6,323 | 46,967 | 53,290 | |||||||||
Depreciation | 106,921 | 5,534,870 | 5,641,791 | |||||||||
Amortization of intangible assets | 35,697 | 41,913 | 77,610 | |||||||||
Bad debt expense | 18,966 | — | 18,966 | |||||||||
Commission | 199,732 | 155,890 | 355,622 | |||||||||
Advertising expense | 12,361 | 3,179 | 15,540 | |||||||||
Training expense | 2,048 | 4,306 | 6,354 | |||||||||
Vehicle maintenance expense | 4,171 | 3,512 | 7,683 | |||||||||
Publishing expense | 1,524 | 1,482 | 3,006 | |||||||||
Business promotion expense | 1,770 | 1,818 | 3,588 | |||||||||
Rent expense | 13,221 | 82,596 | 95,817 | |||||||||
Telecommunication expense | 4,438 | 5,087 | 9,525 | |||||||||
Transportation expense | 660 | 2,498 | 3,158 | |||||||||
Taxes and dues | 57,331 | 278,455 | 335,786 | |||||||||
Expendable supplies expense | 3,897 | 20,765 | 24,662 | |||||||||
Water, light and heating expense | 6,931 | 15,483 | 22,414 | |||||||||
Repairs and maintenance expense | 30,414 | 1,119,904 | 1,150,318 | |||||||||
Ordinary development expense | 76,143 | 223,228 | 299,371 | |||||||||
Travel expense | 5,987 | 31,709 | 37,696 | |||||||||
Clothing expense | 3,281 | 3,393 | 6,674 | |||||||||
Survey and analysis expense | 379 | 1,491 | 1,870 | |||||||||
Membership fee | 976 | 6,726 | 7,702 | |||||||||
Power purchase | — | 8,295,057 | 8,295,057 | |||||||||
Others | 59,734 | 821,201 | 880,935 | |||||||||
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| |||||||
26,065,936 | 27,345,296 | |||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
42. | Expenses Classified by Nature, Continued |
Expenses classified by nature for the six-month periods ended June 30, 2020 and 2019 are as follows, continued:
In millions of won | June 30, 2019 | |||||||||||
Selling and administrative expenses | Cost of sales | Total | ||||||||||
Raw materials used | 8,304,989 | 8,304,989 | ||||||||||
Salaries | 391,652 | 1,816,355 | 2,208,007 | |||||||||
Retirement benefit expense | 36,801 | 202,848 | 239,649 | |||||||||
Welfare and benefit expense | 59,068 | 208,297 | 267,365 | |||||||||
Insurance expense | 6,623 | 47,255 | 53,878 | |||||||||
Depreciation | 116,043 | 5,184,017 | 5,300,060 | |||||||||
Amortization of intangible assets | 40,398 | 41,997 | 82,395 | |||||||||
Bad debt expense | 15,724 | — | 15,724 | |||||||||
Commission | 341,851 | 174,776 | 516,627 | |||||||||
Advertising expense | 13,777 | 4,044 | 17,821 | |||||||||
Training expense | 3,281 | 6,003 | 9,284 | |||||||||
Vehicle maintenance expense | 4,457 | 3,606 | 8,063 | |||||||||
Publishing expense | 1,471 | 1,415 | 2,886 | |||||||||
Business promotion expense | 1,493 | 2,001 | 3,494 | |||||||||
Rent expense | 14,159 | 89,584 | 103,743 | |||||||||
Telecommunication expense | 4,357 | 4,170 | 8,527 | |||||||||
Transportation expense | 453 | 2,243 | 2,696 | |||||||||
Taxes and dues | 41,076 | 268,046 | 309,122 | |||||||||
Expendable supplies expense | 3,207 | 14,487 | 17,694 | |||||||||
Water, light and heating expense | 6,568 | 17,213 | 23,781 | |||||||||
Repairs and maintenance expense | 29,117 | 932,408 | 961,525 | |||||||||
Ordinary development expense | 78,583 | 232,505 | 311,088 | |||||||||
Travel expense | 8,546 | 33,900 | 42,446 | |||||||||
Clothing expense | 2,136 | 2,955 | 5,091 | |||||||||
Survey and analysis expense | 429 | 1,745 | 2,174 | |||||||||
Membership fee | 746 | 11,333 | 12,079 | |||||||||
Power purchase | — | 9,474,179 | 9,474,179 | |||||||||
Others | 61,635 | 881,895 | 943,530 | |||||||||
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| |||||||
27,964,266 | 29,247,917 | |||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
43. | Earnings (Loss) Per Share |
(1) | Basic earnings (loss) per share for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Type | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | ||||||||||||
Basic earnings (loss) per share | 295 | (697 | ) | (1,924 | ) |
(2) | Net profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won except number of shares | June 30, 2020 | June 30, 2019 | ||||||||||||||
Type | Three- month period ended | Six- month period ended | Three- month period ended | Six- month period ended | ||||||||||||
Net profit (loss) attributable to controlling interest | 189,191 | (447,546 | ) | (1,235,344 | ) | |||||||||||
Profit (loss) used in the calculation of total basic earnings per share | 166,212 | 189,191 | (447,546 | ) | (1,235,344 | ) | ||||||||||
Weighted average number of common shares | 641,964,077 | 641,964,077 | 641,964,077 | 641,964,077 |
(3) | Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In number of shares | June 30, 2020 | June 30, 2019 | ||||||||||||||
Type | Three- Month period ended | Six- month period ended | Three- month period ended | Six- month period ended | ||||||||||||
The number of common shares issued at beginning of the year | 641,964,077 | 641,964,077 | 641,964,077 | 641,964,077 | ||||||||||||
Weighted average number of common shares | 641,964,077 | 641,964,077 | 641,964,077 | 641,964,077 |
(4) | There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the three and six-month periods ended June 30, 2020 and 2019. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management |
(1) | Capital risk management |
The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.
Details of the Group’s capital management accounts as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Total borrowings and debt securities | 67,876,541 | |||||||
Cash and cash equivalents | 1,747,240 | 1,810,129 | ||||||
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|
|
| |||||
Net borrowings and debt securities | 68,961,863 | 66,066,412 | ||||||
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|
| |||||
Total shareholder’s equity | 68,889,649 | |||||||
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|
| |||||
Debt to equity ratio | 100.00 | % | 95.90 | % |
(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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(2) | Financial risk management, continued |
Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||
Cash and cash equivalents | 1,810,129 | |||||||
Financial assets at fair value through profit or loss | 1,276,294 | 747,261 | ||||||
Derivative assets (trading) | 421,279 | 165,204 | ||||||
Financial assets at amortized cost | 14,673 | 13,609 | ||||||
Loans | 772,777 | 738,707 | ||||||
Long-term/short-term financial instruments | 2,469,988 | 1,960,227 | ||||||
Derivative assets (applying hedge accounting) | 288,991 | 145,829 | ||||||
Trade and other receivables | 8,964,070 | 9,703,749 | ||||||
Financial guarantee contracts (*) | 3,194,466 | 3,338,566 |
(*) | Maximum exposure associated with the financial guarantee contracts is the maximum amounts of the obligation. |
As of the reporting date, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.
(ii) | Market risk |
Market risk is the risk that the Group’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, currency risk and other price risk.
(iii) | Sensitivity analysis |
Significant assets and liabilities with uncertainties in underlying assumptions
① | Defined benefit obligation |
A sensitivity analysis of defined benefit obligation assuming a 1%p increase and decrease movements in the actuarial valuation assumptions as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||||
Type | Accounts | 1%p Increase | 1%p Decrease | 1%p Increase | 1%p Decrease | |||||||||||||
Future salary increases | Increase (decrease) in defined benefit obligation | (428,832 | ) | 442,748 | (386,147 | ) | ||||||||||||
Discount rate | Increase (decrease) in defined benefit obligation | (428,217 | ) | 505,402 | (402,099 | ) | 475,765 |
Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the six-month periods ended June 30, 2020 and 2019 areW10,461 million andW8,864 million, respectively.
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(2) | Financial risk management, continued |
② | Provisions |
Changes in provisions due to movements in underlying assumptions as of June 30, 2020 and December 31, 2019 are as follows:
Type | Accounts | June 30, 2020 | December 31, 2019 | |||||||
PCBs | Inflation rate | 1.09 | % | 1.09 | % | |||||
Discount rate | 1.97 | % | 1.97 | % | ||||||
Nuclear plants | Inflation rate | 1.10 | % | 1.10 | % | |||||
Discount rate | 2.43 | % | 2.43 | % | ||||||
Spent fuel | Inflation rate | 2.93 | % | 2.93 | % | |||||
Discount rate | 4.49 | % | 4.49 | % |
A sensitivity analysis of provisions assuming a 0.1%p increase and decrease movements in the underlying assumptions as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||||
Type | Accounts | 0.1%p Increase | 0.1%p Decrease | 0.1%p Increase | 0.1%p Decrease | |||||||||||||
Discount rate | PCBs | 456 | (527 | ) | 530 | |||||||||||||
Nuclear plants | (312,226 | ) | 321,666 | (316,184 | ) | 325,828 | ||||||||||||
Spent fuel | (51,534 | ) | 53,545 | (51,607 | ) | 53,621 | ||||||||||||
Inflation rate | PCBs | 460 | (459 | ) | 534 | (532 | ) | |||||||||||
Nuclear plants | 350,258 | (340,239 | ) | 346,082 | (336,182 | ) | ||||||||||||
Spent fuel | 54,319 | (52,350 | ) | 54,396 | (52,424 | ) |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | 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 June 30, 2020 and December 31, 2019 are as follows:
In thousands of foreign currencies | Assets | Liabilities | ||||||||||||||
Type | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||
AED | 31,867 | 57,403 | 15,510 | 40,061 | ||||||||||||
AUD | 141 | 143 | 623,411 | 1,036,785 | ||||||||||||
BDT | 89,186 | 85,547 | 305 | 635 | ||||||||||||
BWP | 986 | 1,437 | 251 | — | ||||||||||||
CAD | 216 | 86 | 41 | 3,112 | ||||||||||||
CHF | — | — | 500,741 | 500,753 | ||||||||||||
CNY | — | — | 26,140 | 26,140 | ||||||||||||
CZK | — | — | 2,201 | 243 | ||||||||||||
EUR | 674 | 208 | 42,017 | 111,199 | ||||||||||||
GBP | — | — | 58 | 191 | ||||||||||||
HKD | — | — | 1,651,488 | 1,648,815 | ||||||||||||
IDR | 155,780 | 376,136 | 5,989 | 219,801 | ||||||||||||
INR | 1,228,275 | 1,244,170 | 388,316 | 210,232 | ||||||||||||
JOD | 2,035 | 1,516 | 8 | 147 | ||||||||||||
JPY | 242,897 | 109,970 | 1,016,386 | 314,402 | ||||||||||||
KZT | 319 | 319 | 319 | — | ||||||||||||
MGA | 6,009,106 | 3,858,201 | 111,842 | 133,403 | ||||||||||||
MMK | 73,195 | 29,651 | 25,208 | — | ||||||||||||
PHP | 271,982 | 175,210 | 135,817 | 130,073 | ||||||||||||
PKR | 416,130 | 354,361 | 7,099 | 4,366 | ||||||||||||
SAR | 2,252 | 2,653 | 1,011 | 480 | ||||||||||||
SEK | — | — | 449,104 | 449,072 | ||||||||||||
USD | 1,464,874 | 1,227,054 | 10,857,516 | 9,963,928 | ||||||||||||
UYU | 129,615 | 58,781 | 5,989 | 8,213 | ||||||||||||
VND | 512,551 | 418,998 | — | 1,375 | ||||||||||||
ZAR | 239 | 450 | 4 | 6 |
A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Type | 10% Increase | 10% Decrease | 10% Increase | 10% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 1,300,055 | (1,197,530 | ) | 1,197,530 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (1,300,055 | ) | 1,300,055 | (1,197,530 | ) | 1,197,530 |
(*) | The effect on the shareholders’ equity excluding the impact of income taxes. |
The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of June 30, 2020 and December 31, 2019. 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | 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 1p% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
The Group’s borrowings and debt securities with floating interest rates as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | ||||||||
Type | June 30, 2020 | December 31, 2019 | ||||||
Short-term borrowings | — | |||||||
Long-term borrowings | 2,249,832 | 2,273,579 | ||||||
Debt securities | 247,536 | 243,102 | ||||||
|
|
|
| |||||
2,516,681 | ||||||||
|
|
|
|
A sensitivity analysis on the Group’s long-term borrowings and debt securities assuming a 1%p increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Type | 1%p Increase | 1%p Decrease | 1%p Increase | 1%p Decrease | ||||||||||||
Increase (decrease) of profit before income tax | 12,981 | (25,167 | ) | 25,167 | ||||||||||||
Increase (decrease) of shareholder’s equity (*) | (12,981 | ) | 12,981 | (25,167 | ) | 25,167 |
(*) | 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 six-month periods ended June 30, 2020 and 2019 are as follows:
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Type | 1% Increase | 1% Decrease | 1% Increase | 1% Decrease | ||||||||||||
Increase (decrease) of profit before income tax | (266,000 | ) | 268,221 | (268,221 | ) | |||||||||||
Increase (decrease) of shareholder’s equity (*) | 266,000 | (266,000 | ) | 268,221 | (268,221 | ) |
(*) | 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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | 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 | June 30, 2020 | |||||||||||||||||||
Type | Less than 1 year | 1 ~ 2 Years | 2 ~ 5 Years | More than 5 years | Total | |||||||||||||||
Borrowings and debt securities | 10,793,573 | 26,072,711 | 32,433,684 | 78,400,193 | ||||||||||||||||
Lease liabilities | 688,213 | 611,088 | 1,735,205 | 2,635,507 | 5,670,013 | |||||||||||||||
Trade and other payables | 5,062,153 | 371,999 | 863,234 | 1,412,769 | 7,710,155 | |||||||||||||||
Financial guarantee contracts (*) | 1,010,681 | 35,221 | 21,791 | 2,126,772 | 3,194,465 | |||||||||||||||
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| |||||||||||
11,811,881 | 28,692,941 | 38,608,732 | 94,974,826 | |||||||||||||||||
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|
In millions of won | December 31, 2019 | |||||||||||||||||||
Type | Less than 1 year | 1 ~ 2 Years | 2 ~ 5 Years | More than 5 years | Total | |||||||||||||||
Borrowings and debt securities | 10,997,510 | 27,881,873 | 30,859,669 | 80,399,789 | ||||||||||||||||
Lease liabilities | 686,445 | 617,449 | 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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|
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| |||||||||||
12,299,954 | 30,603,090 | 36,839,022 | 98,040,393 | |||||||||||||||||
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|
|
|
(*) | This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of June 30, 2020 and December 31, 2019 are |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(2) | Financial risk management, continued |
The following table shows the details of maturities of non-derivative financial liabilities as of June 30, 2020 and December 31, 2019. This table, based on the undiscounted cash flows of the non-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.
The expected maturities for non-derivative financial assets as of June 30, 2020 and December 31, 2019 in detail are as follows:
In millions of won | June 30, 2020 | |||||||||||||||||||
Type | Less than 1 year | 1 ~ 5 Years | More than 5 years | Others (*) | Total | |||||||||||||||
Cash and cash equivalents | — | — | — | 1,747,240 | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | — | — | 322,158 | 322,158 | |||||||||||||||
Financial assets at amortized cost | 13,354 | 31 | 1,288 | — | 14,673 | |||||||||||||||
Loans | 71,251 | 308,835 | 426,226 | — | 806,312 | |||||||||||||||
Long-term/short-term financial instruments | 1,954,619 | 212,729 | 354 | 302,286 | 2,469,988 | |||||||||||||||
Financial assets at fair value through profit or loss | 700,808 | — | 6,800 | 626,420 | 1,334,028 | |||||||||||||||
Trade and other receivables | 6,934,968 | 912,938 | 1,000,931 | 121,282 | 8,970,119 | |||||||||||||||
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|
|
|
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| |||||||||||
1,434,533 | 1,435,599 | 1,372,146 | 15,664,518 | |||||||||||||||||
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|
In millions of won | December 31, 2019 | |||||||||||||||||||
Type | Less than 1 year | 1 ~ 5 Years | More than 5 years | Others (*) | 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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(*) | The maturities cannot be presently determined. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(2) | Financial risk management, continued |
Derivative liabilities classified by maturity periods from reporting date to maturity date of contract as of June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||||||||||
Type | Less than 1 year | 1 ~ 2 Years | 2 ~ 5 Years | More than 5 years | Total | |||||||||||||||
Net settlement | ||||||||||||||||||||
- Trading | — | — | — | — | ||||||||||||||||
Gross settlement | ||||||||||||||||||||
- Trading | (22,117 | ) | (10,456 | ) | (10,426 | ) | (16,505 | ) | (59,504 | ) | ||||||||||
- Hedging | (57,536 | ) | (4,283 | ) | (8,683 | ) | (40,104 | ) | (110,606 | ) | ||||||||||
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(14,739 | ) | (19,109 | ) | (56,609 | ) | (170,110 | ) | |||||||||||||
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In millions of won | December 31, 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(3) | Fair value risk |
The fair value of the Group’s actively-traded financial instruments (i.e. FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.
The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent 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 June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Type | Book value | Fair value | Book value | Fair value | ||||||||||||
Assets recognized at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | 322,158 | 379,170 | 379,170 | |||||||||||||
Derivative assets (trading) | 421,279 | 421,279 | 165,204 | 165,204 | ||||||||||||
Derivative assets (applying hedge accounting) | 288,991 | 288,991 | 145,829 | 145,829 | ||||||||||||
Financial assets at fair value through profit or loss | 1,334,028 | 1,334,028 | 747,261 | 747,261 | ||||||||||||
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| |||||||||
2,366,456 | 1,437,464 | 1,437,464 | ||||||||||||||
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| |||||||||
Assets carried at amortized cost | ||||||||||||||||
Financial assets at amortized cost | 14,673 | 13,609 | 13,609 | |||||||||||||
Loans and receivables | 772,777 | 772,777 | 738,707 | 738,707 | ||||||||||||
Trade and other receivables | 8,964,070 | 8,964,070 | 9,703,749 | 9,703,749 | ||||||||||||
Long-term financial instruments | 515,369 | 515,369 | 608,256 | 608,256 | ||||||||||||
Short-term financial instruments | 1,954,619 | 1,954,619 | 1,351,971 | 1,351,971 | ||||||||||||
Cash and cash equivalents | 1,747,240 | 1,747,240 | 1,810,129 | 1,810,129 | ||||||||||||
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| |||||||||
13,968,748 | 14,226,421 | 14,226,421 | ||||||||||||||
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| |||||||||
Liabilities recognized at fair value | ||||||||||||||||
Derivative liabilities (trading) | 58,898 | 53,147 | 53,147 | |||||||||||||
Derivative liabilities (applying hedge accounting) | 110,607 | 110,607 | 116,813 | 116,813 | ||||||||||||
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| |||||||||
169,505 | 169,960 | 169,960 | ||||||||||||||
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| |||||||||
Liabilities carried at amortized cost | ||||||||||||||||
Secured borrowings | 66,965 | 227,135 | 227,135 | |||||||||||||
Unsecured bond | 65,761,494 | 69,850,086 | 63,171,664 | 66,917,421 | ||||||||||||
Lease liabilities | 5,046,472 | 5,046,472 | 5,070,133 | 5,070,133 | ||||||||||||
Unsecured borrowings | 4,880,644 | 4,893,884 | 4,104,523 | 4,113,955 | ||||||||||||
Trade and other payables (*) | 7,710,154 | 7,710,154 | 8,545,029 | 8,545,029 | ||||||||||||
Bank overdraft | — | — | 373,219 | 373,219 | ||||||||||||
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| |||||||||
87,567,561 | 81,491,703 | 85,246,892 | ||||||||||||||
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(*) | Excludes lease liabilities. |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | Risk Management, Continued |
(3) | Fair value risk, continued |
(ii) | Interest rates used for determining fair value |
The interest rates applied to discount estimated cash flows were determined by adding a credit spread to the government yield as of the end of the reporting period.
The discount rate used for calculating fair value as of June 30, 2020 and December 31, 2019 are as follows:
Type | June 30, 2020 | December 31, 2019 | ||
Derivatives | (-)0.64% ~ 4.16% | 0.01% ~ 4.16% | ||
Borrowings and debt securities | 0.06% ~ 4.75% | 0.17% ~ 3.90% | ||
Leases | 0.70% ~ 16.74% | 1.38% ~ 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 June 30, 2020 and December 31, 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||||||
Type | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial assets at fair value | ||||||||||||||||
Financial assets at fair value through other comprehensive income | — | 180,336 | 322,158 | |||||||||||||
Derivative assets | — | 707,636 | 2,634 | 710,270 | ||||||||||||
Financial assets at fair value through profit or loss | — | 1,328,568 | 5,460 | 1,334,028 | ||||||||||||
|
|
|
|
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|
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| |||||||||
2,036,204 | 188,430 | 2,366,456 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Financial liabilities at fair value | ||||||||||||||||
Derivative liabilities | 169,505 | — | 169,505 |
In millions of won | December 31, 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 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
44. | 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:
In millions of won | June 30, 2020 | |||||||||||||||||||||||||||
Beginning balance | Acquisitions | Reclassified category | Valuation | Disposal | Foreign currency translation | Ending balance | ||||||||||||||||||||||
Financial assets at fair value | ||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss Cooperative | 359 | — | 391 | (446 | ) | — | 5,460 | |||||||||||||||||||||
Financial assets at fair value through other comprehensive income Unlisted securities | 177,968 | 2,900 | — | (163 | ) | (1 | ) | (368 | ) | 180,336 |
In millions of won | December 31, 2019 | |||||||||||||||||||||||||||||||
Beginning balance | Effect of change in accounting policy | Acquisitions | Reclassified category | Valuation | Disposal | Foreign currency translation | Ending balance | |||||||||||||||||||||||||
Financial assets at fair value | ||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss Cooperative | — | 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 |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
45. | Service Concession Arrangements |
(1) | Gas Complex - Thermal Power Plant at Ilijan, Philippines (BOT) |
(i) | Significant terms and concession period of the arrangement |
The Group has entered into a contract with National Power Corporation (the “NPC”), based in the Republic of the Philippines whereby the Group can collect the electricity rates which are composed of fixed costs and variable costs during the concession period from 2002 to 2022 after building, rehabilitating, and operating the power plant.
(ii) | Rights and classification of the arrangement |
The Group has the rights to use and own the power plant during the concession period from 2002 to 2022. At the end of the concession period, the Group has an obligation to transfer its ownership of the power plant to NPC.
(iii) | The Group’s expected future collections of service concession arrangements as of June 30, 2020 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1 ~ 2 years | 114,967 | |||
|
| |||
|
|
(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 PLN has an option to take over the ownership of the power plant from the Group.
(iii) | The Group’s expected future collections of service concession arrangements as of June 30, 2020 are as follows: |
In millions of won | ||||
Type | Amounts | |||
Less than 1 year | ||||
1 ~ 2 years | 29,942 | |||
2 ~ 3 years | 29,976 | |||
Over 3 years | 591,617 | |||
|
| |||
|
|
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties |
(1) Related | parties of the Group as of June 30, 2020 are as follows: |
Type | Related party | |
Parent | Republic of Korea government | |
Subsidiaries (123 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, 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, Songhyun e-New Industry Fund, BSK E-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., KEPCO Mangilao America LLC, Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd., Guam Ukudu Power LLC, TS Energy No. 25 Co., Ltd., KEPCO E&C Service Co., Ltd., KPS Partners Co., Ltd. | |
Associates (74 associates) | Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., 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., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT. Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Korea Nuclear Partners Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., 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 Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., KPGE Inc., Gwangbaek Solar Power Investment Co., Ltd., Goduk Clean Energy Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Jeju SolarOne Co., Ltd., Energy Innovation Growth Fund 1 | |
Joint ventures (71 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 P.J.S.C., 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, Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Solaseado Solar Power Co., Ltd., Sam-Yang Photovoltaic Power Co., Ltd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, Pulau Indah Power Plant Sdn. Bhd. | |
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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | 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 six-month periods ended June 30, 2020 and 2019 are as follows: |
<Sales and Others>
In millions of won | Sales and others | |||||||||
Company name | Transaction type | June 30, 2020 | June 30, 2019 | |||||||
<Associates> | ||||||||||
Korea Gas Corporation | Electricity sales | 71,793 | ||||||||
GS Donghae Power Co., Ltd. | Electricity sales | 16,120 | 13,057 | |||||||
Dongducheon Dream Power Co., Ltd. | Electricity sales | 4,262 | 3,045 | |||||||
S-Power Co., Ltd. | Service | 3,305 | 3,388 | |||||||
Hyundai Green Power Co., Ltd. | Design service | 11,632 | 11,436 | |||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 6,474 | 5,867 | |||||||
Daeryun Power Co., Ltd. | Electricity sales | 978 | 973 | |||||||
Shin Pyeongtaek Power Co., Ltd. | Electricity sales | 12,174 | 10,178 | |||||||
Korea Power Exchange | Service | 13,750 | 3,459 | |||||||
Cheongna Energy Co., Ltd. | Service | 4,347 | 7,011 | |||||||
Gangwon Wind Power Co., Ltd. | Electricity sales | 2,045 | 2,329 | |||||||
Noeul Green Energy Co., Ltd. | Electricity sales | 15 | 15 | |||||||
Gosung Green Power Co., Ltd. | Electricity sales | 10,313 | 4,306 | |||||||
Busan Green Energy Co., Ltd. | Electricity sales | 9 | 9 | |||||||
Samcheok Eco Materials Co., Ltd. | Electricity sales | 362 | 288 | |||||||
Others (Taebaek Wind Power Co., Ltd. and 20 others) | Electricity sales | 26,798 | 15,029 | |||||||
<Joint ventures> | ||||||||||
Chun-cheon Energy Co., Ltd. | Electricity sales | 1,328 | 807 | |||||||
Daegu Green Power Co., Ltd. | Electricity sales | 715 | 529 | |||||||
KAPES, Inc. | Commission | 185 | 227 | |||||||
Rabigh Electricity Company | Service | 576 | 12,219 | |||||||
Nawah Energy Company P.J.S.C. | Service | 66,901 | 47,764 | |||||||
KEPCO SPC Power Corporation | Others | 16,879 | 19,397 | |||||||
Seokmun Energy Co., Ltd. | Service | 1,255 | 584 | |||||||
Amman Asia Electric Power Company | Others | 8,606 | 8,712 | |||||||
Kelar S.A. | Service | 1,919 | 2,007 | |||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | Electricity sales | 963 | 866 | |||||||
Yeonggwang Wind Power Co., Ltd. | Electricity sales | 461 | 75 | |||||||
Others (Honam Wind Power Co., Ltd. and 24 others) | Electricity sales | 392,026 | 23,046 | |||||||
<Others> | ||||||||||
Korea Development Bank | Electricity sales | 1,770 | 1,880 | |||||||
Interest income | 2,961 | 816 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(3) | Related party transactions for the six-month periods ended June 30, 2020 and 2019 are as follows, continued: |
<Purchase and Others>
In millions of won | Purchase and others | |||||||||
Company name | Transaction type | June 30, 2020 | June 30, 2019 | |||||||
<Associates> | ||||||||||
Korea Gas Corporation | Fuel purchase | 2,173,304 | ||||||||
GS Donghae Power Co., Ltd. | Electricity purchase | 325,469 | 370,440 | |||||||
Dongducheon Dream Power Co., Ltd. | Electricity purchase | 242,996 | 344,850 | |||||||
S-Power Co., Ltd. | Service | 208,163 | 280,002 | |||||||
Hyundai Green Power Co., Ltd. | Design service | 219,728 | 226,596 | |||||||
Korea Electric Power Industrial Development Co., Ltd. | Service | 115,561 | 129,167 | |||||||
Daeryun Power Co., Ltd. | Electricity purchase | 44,222 | 63,673 | |||||||
Shin Pyeongtaek Power Co., Ltd. | Electricity purchase | 302,787 | 21 | |||||||
Korea Power Exchange | Service | 44,372 | 68,748 | |||||||
Cheongna Energy Co., Ltd. | Service | 67 | 58,747 | |||||||
Gangwon Wind Power Co., Ltd. | Electricity purchase | 11,859 | 13,737 | |||||||
Noeul Green Energy Co., Ltd. | Electricity purchase | 6,172 | 6,960 | |||||||
Busan Green Energy Co., Ltd. | Electricity purchase | 10,918 | 9,566 | |||||||
Samcheok Eco Materials Co., Ltd. | Electricity purchase | 4,793 | 3,889 | |||||||
Others (Taebaek Wind Power Co., Ltd. and 20 others) | Electricity purchase | 32,058 | 23,473 | |||||||
<Joint ventures> | ||||||||||
Chun-cheon Energy Co., Ltd. | Electricity purchase | 126,069 | 172,257 | |||||||
Daegu Green Power Co., Ltd. | Electricity purchase | 114,980 | 162,207 | |||||||
KAPES, Inc. | Commission | 145,011 | 59,062 | |||||||
Seokmun Energy Co., Ltd. | Service | 21,274 | 14,650 | |||||||
Amman Asia Electric Power Company | Others | 102 | — | |||||||
Yeonggwangbaeksu Wind Power Co., Ltd. | Electricity purchase | 2,931 | 5,039 | |||||||
Yeonggwang Wind Power Co., Ltd. | Electricity purchase | 6,397 | 13,660 | |||||||
Others (Honam Wind Power Co., Ltd. and 24 others) | Electricity purchase | 24,896 | 8,388 | |||||||
<Others> | ||||||||||
Korea Development Bank | Interest expense | 4,974 | 2,053 | |||||||
Dividends paid | — | 7 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
<Associates> | ||||||||||||||||||
Korea Gas Corporation | Trade receivables | 9,267 | — | — | ||||||||||||||
Non-trade receivables and others | 163 | 38 | — | — | ||||||||||||||
Trade payables | — | — | 275,498 | 462,138 | ||||||||||||||
Non-trade payables and others | — | — | 378 | 560 | ||||||||||||||
Dongducheon Dream Power Co., Ltd. | Trade receivables | 381 | 323 | — | — | |||||||||||||
Non-trade receivables and others | 213 | 267 | — | — | ||||||||||||||
Trade payables | — | — | 39,826 | 85,920 | ||||||||||||||
Non-trade payables and others | — | — | — | 12 | ||||||||||||||
Goseong Green Power Co., Ltd. | Trade receivables | 1,148 | 103 | — | — | |||||||||||||
Non-trade receivables and others | — | 5,285 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 65,823 | 65,626 | ||||||||||||||
GS Donghae Electric power Co., Ltd. | Trade receivables | 461 | 175 | — | — | |||||||||||||
Non-trade receivables and others | 257 | 367 | — | — | ||||||||||||||
Trade payables | — | — | 42,943 | 69,811 | ||||||||||||||
Non-trade payables and others | — | — | 24 | 16 | ||||||||||||||
Shin Pyeongtaek Power Co., Ltd. | Trade receivables | 1,344 | 1,014 | — | — | |||||||||||||
Non-trade receivables and others | 2,507 | 2,281 | — | — | ||||||||||||||
Trade payables | — | — | 37,160 | 64,696 | ||||||||||||||
Non-trade payables and others | — | — | 243 | 61 | ||||||||||||||
S-Power Co., Ltd. | Trade receivables | 171 | 89 | — | — | |||||||||||||
Non-trade receivables and others | 46 | 43 | — | — | ||||||||||||||
Trade payables | — | — | 27,063 | 53,705 | ||||||||||||||
Hyundai Green Power Co., Ltd. | Trade receivables | 884 | 502 | — | — | |||||||||||||
Trade payables | — | — | 47,670 | 41,587 | ||||||||||||||
Hyundai Energy Co., Ltd. | Trade receivables | 109 | 128 | — | — | |||||||||||||
Non-trade receivables and others | 10,400 | 12,532 | — | — | ||||||||||||||
Trade payables | — | — | 58 | 175 | ||||||||||||||
Non-trade payables and others | — | — | 9,519 | 9,178 | ||||||||||||||
Daeryun Power Co., Ltd. | Trade receivables | 183 | 144 | — | — | |||||||||||||
Trade payables | — | — | 4,831 | 19,843 | ||||||||||||||
Korea Electric Power Industrial Development Co., Ltd. | Trade receivables | 731 | 243 | — | — | |||||||||||||
Non-trade receivables and others | 17 | 43 | — | — | ||||||||||||||
Trade payables | — | — | 2,272 | 3,756 | ||||||||||||||
Non-trade payables and others | — | — | 10,633 | 3,827 | ||||||||||||||
Korea Power Exchange | Trade receivables | 2,510 | 1,142 | — | — | |||||||||||||
Non-trade receivables and others | 41 | 144 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 3,558 | 4,160 | ||||||||||||||
Others (Gangwon Wind Power Co., Ltd. and 30 others) | Trade receivables | 1,296 | 1,536 | — | — | |||||||||||||
Non-trade receivables and others | 3,895 | 6,191 | — | — | ||||||||||||||
Trade payables | — | — | 3,157 | 4,568 | ||||||||||||||
Non-trade payables and others | — | — | 3,902 | 2,983 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(4) | Receivables and payables arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In millions of won | Receivables | Payables | ||||||||||||||||
Company name | Type | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
<Joint ventures> | ||||||||||||||||||
KAPES, Inc. | Trade receivables | 1 | — | — | ||||||||||||||
Non-trade receivables and others | 86 | — | — | — | ||||||||||||||
Non-trade payables and others | — | — | 16,195 | 50,738 | ||||||||||||||
Nawah Energy Company P.J.S.C. | Trade receivables | 71,443 | 43,312 | — | — | |||||||||||||
Non-trade receivables and others | 587 | 47 | — | — | ||||||||||||||
Daegu Green Power Co., Ltd. | Trade receivables | 156 | 113 | — | — | |||||||||||||
Non-trade receivables and others | 16 | 1 | — | — | ||||||||||||||
Trade payables | — | — | 13,695 | 28,980 | ||||||||||||||
Chun-cheon Energy Co., Ltd. | Trade receivables | 143 | 260 | — | — | |||||||||||||
Non-trade receivables and others | 165 | 5,362 | — | — | ||||||||||||||
Trade payables | — | — | 17,080 | 23,438 | ||||||||||||||
Amman Asia Electric Power Company | Non-trade payables and others | — | — | 19,355 | 19,096 | |||||||||||||
Kelar S.A. | Trade receivables | — | 1,902 | — | — | |||||||||||||
Non-trade receivables and others | 9,880 | 7,632 | — | — | ||||||||||||||
Jamaica Public Service Company Limited | Trade receivables | 1,914 | 6,476 | — | — | |||||||||||||
Non-trade payables and others | — | — | — | 57 | ||||||||||||||
Others (Seokmun Energy Co., Ltd. and 18 others) | Trade receivables | 5,771 | 258 | — | — | |||||||||||||
Non-trade receivables and others | 74,180 | 8,606 | — | — | ||||||||||||||
Trade payables | — | — | 9,929 | 1,166 | ||||||||||||||
Non-trade payables and others | — | — | 9,782 | 79,369 | ||||||||||||||
<Others> | ||||||||||||||||||
Korea Development Bank | Accrued interest income | 284 | 1,630 | — | — | |||||||||||||
Non-trade receivables and others | 404,974 | 146,416 | — | — | ||||||||||||||
Non-trade payables and others | — | — | 241 | 152 | ||||||||||||||
Derivatives | 70,469 | 41,368 | 1,189 | 6,531 |
(5) | Loans and others arising from related party transactions as of June 30, 2020 and December 31, 2019 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. | 54 | — | 981 | 29,711 | |||||||||||||||||
(Allowance for doubtful accounts) | (7,325 | ) | — | — | (1,325 | ) | (8,650 | ) | ||||||||||||||
Associates | PT. Cirebon Electric Power | 578 | — | (609 | ) | 31 | — | |||||||||||||||
Associates | Xe-Pian Xe-Namnoy Power Co., Ltd. | 20,955 | — | — | 776 | 21,731 | ||||||||||||||||
Associates | PT. Wampu Electric Power | 16,502 | — | — | 1,217 | 17,719 | ||||||||||||||||
Associates | Gunsan Bio Energy Co., Ltd. | 12,396 | — | — | — | 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 | — | — | ||||||||||||||||
Associates | Bigeum Resident Photovoltaic Power Co., Ltd. | — | 1,500 | — | — | 1,500 | ||||||||||||||||
Associates | Daejung Offshore Wind Power Co., Ltd. | — | 1,000 | — | — | 1,000 | ||||||||||||||||
Joint ventures | PT. Tanjung Power Indonesia | — | 464 | — | (7 | ) | 457 | |||||||||||||||
Joint ventures | RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. | 1,055 | 1,456 | — | 8 | 2,519 | ||||||||||||||||
Joint ventures | HORUS SOLAR, S.A. DE C.V | 3,323 | 10,579 | — | (33 | ) | 13,869 | |||||||||||||||
Joint ventures | SUNMEX RENOVABLES, S.A. DE C.V. | 144 | 180 | — | 2 | 326 | ||||||||||||||||
Joint ventures | Kelar S.A. | 42,158 | — | — | 1,562 | 43,720 | ||||||||||||||||
Joint ventures | Chun-cheon Energy Co., Ltd. | 5,057 | — | (5,057 | ) | — | — | |||||||||||||||
Joint ventures | DE Energia SpA | 6,632 | — | — | 246 | 6,878 | ||||||||||||||||
Joint ventures | Daehan Wind Power PSC | — | 11,852 | — | — | 11,852 | ||||||||||||||||
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27,085 | (5,666 | ) | 3,458 | 144,900 | ||||||||||||||||||
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(6) | Borrowings arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | ||||||||||||||||||||||
Related parties | Type | December 31, 2019 | Borrowings | Repayment | Others | June 30, 2020 | ||||||||||||||||
Korea Development | Facility | — | (4,174 | ) | — | 55,671 | ||||||||||||||||
Bank | Others | 3,500 | — | (277 | ) | — | 3,223 | |||||||||||||||
Operating funds | 179,000 | 52,961 | (178,306 | ) | (542 | ) | 53,113 | |||||||||||||||
Syndicated Loan | 17,085 | — | (1,073 | ) | 845 | 16,857 | ||||||||||||||||
EBL | — | 32,232 | — | (714 | ) | 31,518 |
(7) | Guarantees provided to related parties as of June 30, 2020 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 | 4,439,920 | ||||||||
Korea Electric Power Corporation | RE Holiday Holdings LLC | Performance guarantees | USD | 223,000 | EPS Renewables Holdings, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | RE Pioneer Holdings LLC | Performance guarantees | USD | 170,000 | EPS Renewables Holdings, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | RE Barren Ridge 1 Holdings LLC | Performance guarantees | USD | 149,000 | Firstar Development, LLC, Santander Bank and others | |||||
Korea Electric Power Corporation | 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 | Performance guarantees | USD | 16,800 | Shinhan Bank | |||||
Korea Electric Power Corporation | Pulau Indah Power Plant Sdn. Bhd. | Performance guarantees | MYR | 7,500 | Maybank | |||||
Korea Western Power Co., Ltd. | Cheongna Energy Co., Ltd. | Collateralized money invested | KRW | 4,623 | Hana Bank and others | |||||
Guarantees for supplemental funding and others (*1) | — | |||||||||
Korea Western Power Co., Ltd. | Xe-Pian Xe-Namnoy Power Co., Ltd. | Payment guarantees for business reserve | USD | 2,500 | Krung Thai Bank | |||||
Collateralized money invested | KRW | 70,254 | ||||||||
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 | 2,006 | Korea Development Bank | |||||
Korea Western Power Co., Ltd. | Dongducheon Dream Power Co., Ltd. | Collateralized money invested (*7) Debt guarantees | KRW KRW | 42,653 20,300 |
| Kookmin Bank and others BNK Securities | ||||
Korea Western Power Co., Ltd. | PT. Mutiara Jawa | Collateralized money invested | KRW | 1,589 | 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 | 71,109 | Kookmin Bank | |||||
Guarantees for supplemental funding (*1) | — | Kookmin Bank and others |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of June 30, 2020 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. | Busan Shinho Solar Power Co., Ltd. | Collateralized money invested | KRW | 5,130 | Korea Development Bank and others | |||||
Korea East-West Power Co., Ltd. | Seokmun Energy Co., Ltd. | Collateralized money invested | KRW | 17,058 | Kookmin Bank and others | |||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea East-West Power Co., Ltd. | Chun-cheon Energy Co., Ltd. | Collateralized money invested | KRW | 29,865 | Kookmin Bank and others | |||||
Guarantees for supplemental funding (*1) | KRW | 90,800 | ||||||||
Korea East-West Power Co., Ltd. | Honam Wind Power Co., Ltd. | Collateralized money invested | KRW | 4,182 | 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 | 250,249 | 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 | 3,285 | Kookmin Bank and others | |||||
Korea East-West Power Co., Ltd. | Yeonggwang Wind Power Co., Ltd. | Collateralized money invested | KRW | 17,797 | 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 | 20,836 | 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 | 8,095 | 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 | 32,233 | MUFG and others | |||||||
Korea East-West Power Co., Ltd. | South Jamaica Power Company Limited | Performance guarantees | USD | 14,400 | Societe Generale | |||||
Collateralized money invested | KRW | 33,949 | 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 | 9,743 | Mirae Asset Daewoo Co., Ltd. and others | |||||
Korea East-West Power Co., Ltd. | Debt guarantees | USD | 5,728 | |||||||
Korea Southern Power Co., Ltd. | KNH Solar Co., Ltd. | Collateralized money invested | KRW | 2,306 | Shinhan Bank and others | |||||
Performance guarantees and guarantees for supplemental funding (*1) | — | |||||||||
Korea Southern Power Co., Ltd. | Daeryun Power Co., Ltd. | Collateralized money invested | KRW | 26,469 | 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 | 23,083 | 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 | 4,961 | Woori Bank and Shinhan Bank and others | |||||
Performance guarantees | — |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of June 30, 2020 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||
Primary guarantor | Principal obligor | Type of guarantees | Credit limit | Guarantee | ||||||
Korea Southern Power Co., Ltd. | Taebaek Guinemi Wind Power Co., Ltd. | Collateralized money invested | KRW | 2,990 | 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., KDB Capital Corporation, and others | ||||||
Collateralized money invested | KRW | 4,386 | ||||||||
Korea Southern Power Co., Ltd. | Samcheok Eco Materials Co., Ltd. | Payment guarantees (*4) | — | SEM Investment Co., Ltd. | ||||||
Korea Southern Power Co., Ltd. | Solaseado Solar Power Co., Ltd. | Collateralized money invested | KRW | 6,428 | Kookmin Bank and others | |||||
Kospo Chile SpA | Kelar S.A. | Collateralized money invested | KRW | 70,375 | Export-Import Bank of Korea and others | |||||
Chester Solar I SpA | Collateralized money invested | KRW | 1,187 | IBK | ||||||
Chester Solar IV SpA | Collateralized money invested | KRW | 331 | |||||||
Chester Solar V SpA | Collateralized money invested | KRW | 77 | |||||||
Diego de Almagro Solar Spa | Collateralized money invested | KRW | 685 | |||||||
Laurel SpA | Collateralized money invested | KRW | 467 | |||||||
Korea Midland Power Co., Ltd. | YeongGwang Yaksu Wind Electric. Co., Ltd. | Collateralized money invested | KRW | 408 | IBK and others | |||||
Korea Midland Power Co., Ltd. | Hyundai Green Power Co., Ltd. | Collateralized money invested | KRW | 120,360 | Korea Development Bank and others | |||||
Korea Midland Power Co., Ltd. | PT. Cirebon Electric Power | Debt guarantees | USD | 10,560 | Mizuho Bank | |||||
Korea Midland Power Co., Ltd. | PT. Wampu Electric Power | Debt guarantees | USD | 5,271 | SMBC | |||||
Korea Midland Power Co., Ltd. | Green Energy Electricity Generation Co., Ltd. | Collateralized money invested | — | IBK | ||||||
Guarantees for supplemental funding and others (*1) | — | IBK and others | ||||||||
Korea Midland Power Co., Ltd. | YaksuESS Co., Ltd. | Collateralized money invested | KRW | 441 | IBK | |||||
Korea Midland Power Co., Ltd. | Namjeongsusang Solar Power Operation Co., Ltd. | Collateralized money invested | KRW | 523 | IBK | |||||
Korea Midland Power Co., Ltd. | Gwangbaek Solar Power Investment Co., Ltd. | Collateralized money invested | KRW | 4,652 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea Midland Power Co., Ltd. | Muan Sunshine Solar Power Plant Co., Ltd. | Collateralized money invested | KRW | 1,253 | 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 | 115,060 | Korea Development Bank and others | |||||
Korea South-East Power Co., Ltd. | RES Technology AD | Collateralized money invested | KRW | 15,915 | UniCredit Bulbank and others | |||||
Korea South-East Power Co., Ltd. | ASM-BG Investicii AD | Collateralized money invested | KRW | 17,480 | UniCredit Bulbank and others | |||||
Korea South-East Power Co., Ltd. | Expressway Solar-light Power Generation Co., Ltd. | Guarantees for supplemental funding (*1, 2) | KRW | 2,500 | Woori Bank | |||||
Korea South-East Power Co., Ltd. | Goseong Green Power Co., Ltd. | Collateralized money invested | KRW | 2,265 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea South-East Power Co., Ltd. | Gangneung Eco Power Co., Ltd. | Collateralized money invested | KRW | 2,398 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea South-East Power Co., Ltd. | PND solar., Ltd. | Collateralized money invested | KRW | 1,157 | IBK | |||||
Korea South-East Power Co., Ltd. | Hyundai Eco Energy Co., Ltd. | Collateralized money invested | KRW | 4,112 | Samsung Life Insurance and others | |||||
Korea South-East Power Co., Ltd. | Jaeun Resident Wind Power Plant Co., Ltd. | Collateralized money invested | KRW | 2,322 | IBK | |||||
Korea South-East Power Co., Ltd. | Cheongsong Myeonbongsan Wind Power Plant Co., Ltd. | Collateralized money invested | KRW | 4,259 | Kyobo Life Insurance Co., Ltd. and others | |||||
Korea South-East Power Co., Ltd. | Youngam Solar Power Co., Ltd. | Collateralized money invested | KRW | 6,100 | Kookmin Bank and others | |||||
Korea South-East Power Co., Ltd. | Samsu Wind Power Co., Ltd. | Collateralized money invested | KRW | 2,537 | Shinhan Bank and others |
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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(7) | Guarantees provided to related parties as of June 30, 2020 are as follows, continued: |
In millions of won and thousands of foreign currencies | ||||||||||
Primary guarantor | Principal obligor | Type of guarantees | Credit limit | Guarantee | ||||||
Korea Hydro & Nuclear Power Co., Ltd. | Noeul Green Energy Co., Ltd. | Collateralized money invested | KRW | 6,709 | Hana Bank and others | |||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea Hydro & Nuclear Power Co., Ltd. | Busan Green Energy Co., Ltd. | Collateralized money invested | KRW | 9,495 | Shinhan Bank and others | |||||
Korea Hydro & Nuclear Power Co., Ltd. | Cheong-Song Noraesan Wind Power Co., Ltd. | Collateralized money invested | KRW | 3,304 | Woori Bank and others | |||||
Guarantees for supplemental funding (*1) | — | |||||||||
Korea Hydro & Nuclear Power Co., Ltd. | Jeju SolarOne Co., Ltd. | Collateralized money invested | KRW | 143 | IBK and others | |||||
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 thousand and there is no residual guarantee amount among total collateral limit. |
(*4) | Controlling and non-controlling common shareholders of Samcheok Eco Materials Co., Ltd. have pre-emption rights, if preferred shareholders intend to sell their shares until December 23, 2020. And promised yield of the preferred stock is guaranteed through the transaction. As of June 30, 2020, 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. before the prior year, 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. |
(*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 Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
46. | Related Parties, Continued |
(8) | As of June 30, 2020, there is no financial guarantee provided by related parties. |
(9) | Derivatives transactions with related parties as of June 30, 2020 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 | % | ||||||||||||||||||
2020~2025 | 241,320 | USD 200,000 | 0.54 | % | 1.13 | % | 1,206.60 | |||||||||||||||||
2015~2025 | 111,190 | USD 100,000 | 2.62 | % | 3.25 | % | 1,111.90 | |||||||||||||||||
2017~2027 | 111,610 | USD 100,000 | 2.31 | % | 3.13 | % | 1,116.10 | |||||||||||||||||
2018~2028 | 108,600 | HKD 800,000 | 2.69 | % | 3.35 | % | 135.75 | |||||||||||||||||
2018~2023 | 170,280 | USD 150,000 | 2.15 | % | 3.75 | % | 1,135.20 | |||||||||||||||||
2019~2027 | 119,978 | CHF 100,000 | 1.43 | % | 0.05 | % | 1,199.78 | |||||||||||||||||
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 | |||||||||||||||||
2020~2025 | 122,780 | USD 100,000 | 0.93 | % | 1.75 | % | 1,227.80 |
(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 | 2020.06.29 | 2020.08.03 | 5,998 | USD 5,000 | 1,199.55 | |||||||||||||||
2020.06.19 | 2020.07.06 | 21,575 | USD 17,800 | 1,212.10 | ||||||||||||||||
2020.06.23 | 2020.07.13 | 6,049 | USD 5,000 | 1,209.85 | ||||||||||||||||
2020.06.26 | 2020.07.23 | 2,997 | USD 2,500 | 1,198.65 |
(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 three and six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Type | Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | ||||||||||||
Salaries | 917 | 639 | 855 | |||||||||||||
Employee benefits | 18 | 32 | 2 | 4 | ||||||||||||
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949 | 641 | 859 | ||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
47. | Statements of Cash Flows |
(1) | Significant non-cash transactions for the six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | ||||||||
Transactions | June 30, 2020 | June 30, 2019 | ||||||
Transfer from construction-in-progress to other assets | 3,903,246 | |||||||
Recognition of asset retirement cost and related provision for decommissioning costs | 114,813 | 140,718 | ||||||
Transfer from provision for disposal of used nuclear fuel to accrued expenses | 192,248 | 151,832 | ||||||
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities | 6,786,498 | 8,513,498 | ||||||
Transfer from inventory to stored nuclear fuel | 230,102 | 737,363 | ||||||
Change in accounting policy and increase in right-of-use assets | 137,393 | 4,633,091 |
(2) | Changes in liabilities incurred from financing activities for the six-month periods ended June 30, 2020 and 2019 are as follows: |
In millions of won | June 30, 2020 | |||||||||||||||||||
Non-cash changes | ||||||||||||||||||||
Beginning balance | Cash flows | Increase | Effect of exchange rate fluctuations and others | Ending balance | ||||||||||||||||
Borrowings and debt securities | 2,439,902 | — | 392,660 | 70,709,103 | ||||||||||||||||
Lease liabilities | 5,070,133 | (353,977 | ) | 128,230 | 202,086 | 5,046,472 | ||||||||||||||
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2,085,925 | 128,230 | 594,746 | 75,755,575 | |||||||||||||||||
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In millions of won | June 30, 2019 | |||||||||||||||||||||||
Non-cash changes | ||||||||||||||||||||||||
Beginning balance | Cash flows | Increase | Changes in accounting policies | Effect of exchange rate fluctuations and others | Ending balance | |||||||||||||||||||
Borrowings and debt securities | 4,021,612 | — | — | 465,719 | 65,521,958 | |||||||||||||||||||
Lease liabilities | 283,806 | (264,809 | ) | 150,579 | 4,626,657 | 155,064 | 4,951,297 | |||||||||||||||||
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3,756,803 | 150,579 | 4,626,657 | 620,783 | 70,473,255 | ||||||||||||||||||||
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
48. | Commitments for Expenditure |
(1) | The commitments for acquisition of property, plant and equipment as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Contracts | Amounts | Balance | Amounts | Balance | ||||||||||||
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo) | 16,038 | 56,408 | 24,721 | |||||||||||||
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung) | 45,390 | 32,876 | 45,390 | 32,876 | ||||||||||||
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S | 36,143 | 33,020 | 36,143 | 36,143 | ||||||||||||
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S | 40,010 | 11,117 | 40,010 | 15,300 | ||||||||||||
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S | 37,744 | 2,244 | 37,744 | 9,700 | ||||||||||||
Purchase of cable (FR CNCO-W, 1C, 325SQ) 1,400,000M | 59,716 | 37,249 | 59,716 | 37,249 | ||||||||||||
Purchase of switch (Eco) 9,360 units | 40,631 | 24,031 | 40,631 | 24,031 | ||||||||||||
Purchase of cable (TR CNCE-W/AL, 1C, 400SQ) 2,654,400M | 34,782 | — | 36,063 | 6,243 | ||||||||||||
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M | 33,019 | 33,019 | — | — | ||||||||||||
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 4,464,000M | 76,724 | 76,724 | — | — | ||||||||||||
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M | 37,538 | 37,538 | — | — | ||||||||||||
Construction of Shin-Kori units (#5,6) | 8,625,387 | 3,752,534 | 8,625,387 | 4,479,956 | ||||||||||||
Construction of Shin-Hanul units (#1,2) | 9,443,635 | 500,144 | 8,306,149 | — | ||||||||||||
Other 29 contracts | 449,581 | 126,023 | 352,710 | 122,890 | ||||||||||||
Service of designing Seoul Combined units (#1,2) | 31,515 | 1,153 | 30,778 | 2,119 | ||||||||||||
Purchase of main machine for construction of Seoul Combined units (#1,2) | 331,249 | — | 331,249 | 15,918 | ||||||||||||
Construction of Seoul Combined units (#1,2) | 394,655 | 24,999 | 387,722 | 31,150 | ||||||||||||
Service of designing Shin-Boryeong units (#1,2) | 121,163 | 521 | 120,668 | 888 | ||||||||||||
Purchase of main machine for construction of Shin-Boryeong units (#1,2) | 816,317 | 4,048 | 816,317 | 4,955 | ||||||||||||
Purchase of furnace for construction of Shin-Seocheon thermal power plant | 305,209 | 37,142 | 305,209 | 43,388 | ||||||||||||
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant | 105,226 | 10,275 | 105,226 | 10,736 | ||||||||||||
Electricity construction of Shin-Seocheon thermal power plant | 243,324 | 28,148 | 231,196 | 87,874 | ||||||||||||
Purchase of main machine for Jeju LNG combined | 166,287 | 11,428 | 166,287 | 12,088 | ||||||||||||
Service of designing Taean IGCC plant units | 46,101 | 2,332 | 46,101 | 2,332 | ||||||||||||
Service of designing Taean units (#9,10) | 112,813 | 13,192 | 112,483 | 12,862 | ||||||||||||
Purchase of furnace for construction of Taean units (#9,10) | 556,206 | 20,415 | 556,206 | 17,579 | ||||||||||||
Purchase of turbine generator for construction of Taean units (#9,10) | 214,208 | 13,602 | 214,208 | 10,857 | ||||||||||||
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 | 1,962 | 97,345 | 1,630 | ||||||||||||
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant | 104,600 | 41,840 | 104,600 | 104,600 | ||||||||||||
Purchase of coal handling machine for construction of Samcheok units (#1,2) | 284,497 | 33,689 | 282,927 | 42,785 | ||||||||||||
Purchase of furnace for construction of Samcheok units (#1,2) | 1,092,287 | 11,710 | 1,066,824 | 11,771 | ||||||||||||
Purchase of turbine main equipment for Samcheok units (#1,2) | 212,188 | 125 | 223,550 | 132 | ||||||||||||
Purchase of main equipment for Namjeju | 138,486 | 9,694 | 138,486 | 84,982 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
48. | Commitments for Expenditure, Continued |
(2) | As of June 30, 2020, details of contracts for inventory purchase commitment are as follows: |
The Group imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Group entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:
Type | Periods | Contracted quantity | ||
Concentrate | 2020 ~ 2030 | 32,435 Ton U3O8 | ||
Transformed | 2020 ~ 2030 | 18,088 Ton U | ||
Enrichment | 2020 ~ 2030 | 17,667 Ton SWU | ||
Molded (Light) | 2020 | 756 Ton U | ||
Molded (Medium)) | 2020 | 401 Ton U | ||
Molded (Initial core) | 2020 ~ 2023 | 415 Ton U |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
49. | Contingencies and Commitments |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2020 and December 31, 2019 are as follows: |
In millions of won | June 30, 2020 | December 31, 2019 | ||||||||||||||
Number of cases | Claim amount | Number of cases | Claim amount | |||||||||||||
As the defendant | 636 | 586 | ||||||||||||||
As the plaintiff | 181 | 315,224 | 199 | 707,287 |
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, and NSSC won the case during the six-month period ended June 30, 2020. 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 June 30, 2020, 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 the vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of June 30, 2020.
The Group is the defendant against a number of claims. The following is potentially significant ongoing claims pertaining to the Group:
① | There is an ongoing claim against the Group from a group of plaintiffs (consisting of 3,910 individuals) regarding the contribution to plan assets and payment of retirement benefits. The Group recognized |
② | There is an ongoing claim against the Group due to disagreements over contract details regarding the construction of the waste refinement power generation plant for Next Energy Co., Ltd., including commencement of commercial operation, however, the Group has not recognized any provision, as the outcome of the lawsuit and the related amount and timing of economic benefit outflow that the Group may be liable for cannot be reasonably estimated as of June 30, 2020. |
③ | There are multiple ongoing claims against the Group related to ordinary wages, requesting payment of unpaid wages. The Group believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. For this reason, the Group recognized |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
49. | Contingencies and Commitments, Continued |
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2020 and December 31, 2019 are as follows, continued: |
In addition to the abovementioned significant ongoing claims, there are 9 arbitration cases pertaining to the Group as of June 30, 2020 and the significant arbitration cases for the six-month period ended June 30, 2020 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 Court of Arbitration of the International Chamber of Commerce. The Group recognized |
② | 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. |
③ | Two companies including GE Energy Products France SNC filed an arbitration against the Group to Korea Commercial Arbitration Board regarding additional payment of construction costs, but the Group has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated. |
(2) | Guarantees of payments and commitments provided to other companies as of June 30, 2020 are as follows: |
① | The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction. |
② | The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and investment guarantee up to USD 43,500 thousand to Mizuho bank and others in proportion to its ownership in the electricity purchase contract with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia. |
③ | The Group has provided MUFG Bank, Ltd. (MUFG) borrowing guarantee up to USD 41,258 thousand 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. |
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 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. |
⑥ | The Group has provided a guarantee to complete the construction of the waste refinement power generation plant of Next Energy Co., Ltd. (contract amount : |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
49. | Contingencies and Commitments, Continued |
(3) | Credit lines provided by financial institutions as of June 30, 2020 are as follows: |
In millions of won and thousands of foreign currencies | ||||||||
Commitments | Financial institutions | Currency | Limited amount | |||||
Commitments on Bank-overdraft | Nonghyup Bank and others | KRW | 1,895,500 | |||||
Commitments on Bank-daylight overdraft | Nonghyup Bank | KRW | 280,000 | |||||
Limit amount available for CP | Hana Bank | KRW | 1,150,000 | |||||
Limit amount available for card | Hana Bank and others | KRW | 46,944 | |||||
Banco de Oro | PHP | 5,000 | ||||||
Loan limit | Kookmin Bank and others | KRW | 1,657,613 | |||||
DBS Bank and others | USD | 2,262,700 | ||||||
Certification of payment on payables from foreign country | Nonghyup Bank | USD | 8,700 | |||||
Certification of payment on L/C | Shinhan Bank | KRW | 7,749 | |||||
Shinhan Bank and others | USD | 926,934 | ||||||
Certification of Performance guarantee on contract | Seoul Guarantee Insurance and others | KRW | 62,783 | |||||
First Abu Dhabi Bank and others | USD | 729,175 | ||||||
Korea Development Bank and others | JPY | 637,495 | ||||||
Hana Bank | EUR | 2,059 | ||||||
Hana Bank and others | INR | 191,883 | ||||||
Hana Bank | CAD | 464 | ||||||
Maybank | MYR | 7,500 | ||||||
Certification of bidding | Hana Bank | USD | 10,000 | |||||
Advance payment bond, Warranty bond, Retention bond and others | Seoul Guarantee Insurance | KRW | 44,047 | |||||
Export-Import Bank of Korea and others | USD | 603,223 | ||||||
Hana Bank | SAR | 86,508 | ||||||
Others | Nonghyup Bank and others | KRW | 548,008 | |||||
Export-Import Bank of Korea and others | USD | 1,652,293 | ||||||
Shinhan Bank | JPY | 381,210 | ||||||
Standard Chartered | AED | 50 | ||||||
Inclusive credit | Hana Bank | KRW | 8,000 | |||||
Hana Bank and others | USD | 30,722 | ||||||
Shinhan Bank | INR | 92,348 | ||||||
Trade finance | BNP Paribas and others | USD | 700,000 |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
49. | Contingencies and Commitments, Continued |
(4) | As of June 30, 2020, blank check and assets provided as collaterals or pledges to financial institutions by the Group are as 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 and others | KRW | 327,800 | 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 and others | KRW | 396,120 | Collateral for borrowings (*2) | |||||||||
Gyeongju Wind Power Co., Ltd. | Samsung Fire & Marine Insurance Co., Ltd. and others | Property, plant and equipment and others | KRW | 110,240 | Collateral for borrowings (*2) | |||||||||
Korea Offshore Wind Power Co., Ltd. | Woori Bank and others | 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) | |||||||||
Incheon Fuel Cell Co., Ltd. | Kookmin Bank and others | Cash and cash equivalents and others | KRW | 276,960 | Collateral for borrowings (*2) |
(*1) | This is based on the amount of loan commitment limit. |
(*2) | As of June 30, 2020, 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 June 30, 2020. The Group has provided a blank check as repayment guarantee.
(5) | The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
49. | 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 June 30, 2020. 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 June 30, 2020. |
(8) | In connection with the consignment of management and operation project of the 54MW solar power plant in Hitachi Chuo, Japan, negotiations with the insurance company and other stakeholders are underway due to disagreements over the method of restoration and cost burden of the facilities damaged due to the typhoon. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of June 30, 2020. |
(9) | To prevent the spread of COVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with COVID-19. The Group was unable to reasonably estimate the impact of COVID-19 and the impact of the government support policies on the Group’s interim consolidated financial statements as of June 30, 2020, and the resulting effects have not been reflected in the interim consolidated financial statements. |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
50. | 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 by spin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8th Basic 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 | ||||
Fair value of the shares owned before the acquisition | 59,058 | |||
|
| |||
|
|
(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 | 2,389 | |||
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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|
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
50. | 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 | ) | ||
|
| |||
|
|
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 | ) | ||
|
| |||
|
|
(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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES
Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
51. | Subsequent Events |
(1) | Subsequent to June 30, 2020, Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd. and Korea East-West 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 corporate bond | 2020.08.03 | 2026.08.03 | 1.00 | USD 300,000 | |||||||||||||
Korea Midland Power Co., Ltd. | #57-1 non-guaranteed corporate bond | 2020.07.21 | 2030.07.21 | 1.51 | KRW 90,000 | |||||||||||||
#57-2 non-guaranteed corporate bond | 2020.07.21 | 2040.07.21 | 1.64 | KRW 100,000 | ||||||||||||||
Korea East-West Power Co., Ltd. | #20-1 corporate bond | 2020.07.16 | 2025.07.16 | 1.35 | KRW 40,000 | |||||||||||||
#20-2 corporate bond | 2020.07.16 | 2040.07.16 | 1.70 | KRW 90,000 | ||||||||||||||
#20-3 corporate bond | 2020.07.16 | 2050.07.16 | 1.70 | KRW 80,000 |
(2) | Korea Hydro & Nuclear Power Co., Ltd., KEPCO KPS Co., Ltd., and others, which are subsidiaries of the Group, decided to participate in the foundation, the Nuclear Power Plant Decommissioning Research Institute, to demonstrate and promote the advancement of nuclear power plant decommissioning technology, and to foster the related industry. The contribution made amounted to |
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Notes to the Consolidated Interim Financial Statements, Continued
June 30, 2020
(Unaudited)
52. | Adjusted Operating Profit (Loss) |
The operating profit (loss) in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Group’s results from operating activities as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the three and six-month periods ended June 30, 2020 and 2019 to the operating profit or loss as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.
In millions of won | June 30, 2020 | June 30, 2019 | ||||||||||||||
Three-month period ended | Six-month period ended | Three-month period ended | Six-month period ended | |||||||||||||
Operating profit (loss) on the consolidated interim statements of comprehensive income (loss) | 820,364 | (298,659 | ) | (928,539 | ) | |||||||||||
Add | ||||||||||||||||
Other income | ||||||||||||||||
Reversal of other provisions | 18,322 | 19,892 | — | 2,186 | ||||||||||||
Reversal of other allowance for bad debt | 2,441 | 2,465 | 960 | 960 | ||||||||||||
Gains on government grants | 58 | 129 | 67 | 139 | ||||||||||||
Gains on assets contributed | 12,047 | 22,484 | 2,707 | 2,771 | ||||||||||||
Gains on liabilities exempted | 384 | 1,214 | 616 | 719 | ||||||||||||
Compensation and reparations revenue | 20,902 | 40,397 | 19,822 | 38,664 | ||||||||||||
Revenue from research contracts | — | 682 | 1,427 | 2,577 | ||||||||||||
Rental income | 49,586 | 96,453 | 47,069 | 94,051 | ||||||||||||
Others | 7,268 | 13,816 | 22,786 | 29,090 | ||||||||||||
Other gains | ||||||||||||||||
Gains on disposal of property, plant and equipment | — | �� | 56,163 | 20,353 | 29,187 | |||||||||||
Gains on disposal of intangible assets | 1,556 | 1,556 | — | 97 | ||||||||||||
Reversal of impairment losses on property, plant and equipment | 6,737 | 6,737 | — | — | ||||||||||||
Gains on foreign currency translation | 4,853 | 16,872 | 13,907 | 10,955 | ||||||||||||
Gains on foreign currency transactions | 15,323 | 23,152 | 10,866 | 17,166 | ||||||||||||
Gains on insurance proceeds | 5,665 | 5,665 | — | 13 | ||||||||||||
Others | 112,712 | 173,955 | 43,890 | 110,235 | ||||||||||||
Deduct | ||||||||||||||||
Other expenses | ||||||||||||||||
Compensation and reparations expense | (8,465 | ) | (8,778 | ) | (77 | ) | (77 | ) | ||||||||
Accretion expenses of other provisions | (58 | ) | (114 | ) | (5,225 | ) | (383 | ) | ||||||||
Depreciation expenses on investment properties | (364 | ) | (735 | ) | (4,047 | ) | (4,291 | ) | ||||||||
Depreciation expenses on idle assets | (1,638 | ) | (3,276 | ) | (1,636 | ) | (3,272 | ) | ||||||||
Other bad debt expense | (7,152 | ) | (7,187 | ) | (4,849 | ) | (5,696 | ) | ||||||||
Donations | (78,051 | ) | (89,195 | ) | (15,578 | ) | (27,563 | ) | ||||||||
Others | (4,321 | ) | (7,376 | ) | (4,383 | ) | (9,856 | ) | ||||||||
Other losses | ||||||||||||||||
Losses on disposal of property, plant and equipment | (17,084 | ) | (19,253 | ) | (12,755 | ) | (26,747 | ) | ||||||||
Losses on impairment of property, plant and equipment | (9,162 | ) | (9,162 | ) | (27,406 | ) | (29,685 | ) | ||||||||
Losses on impairment of intangible assets | (3,505 | ) | (3,505 | ) | (61,696 | ) | (61,696 | ) | ||||||||
Losses on foreign currency translation | (3,080 | ) | (11,661 | ) | — | (51,468 | ) | |||||||||
Losses on foreign currency transactions | (9,526 | ) | (31,626 | ) | (19,055 | ) | (28,915 | ) | ||||||||
Others | (14,919 | ) | (57,385 | ) | (26,496 | ) | (37,818 | ) | ||||||||
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Adjusted operating profit (loss) | 1,052,743 | (297,392 | ) | (877,196 | ) | |||||||||||
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142