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    A015760   KR7015760002

KOREA ELECTRIC POWER CORPORATION

(A015760)
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Korea Electric Power : Audit Report

03/10/2021 | 06:00pm EDT

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Financial Statements

For the years ended December 31, 2020 and 2019

(With Independent Auditor's Report Thereon)

INDEX TO FINANCIAL STATEMENTS

Page

Independent Auditor's Report

Consolidated Statements of Financial Position

1

Consolidated Statements of Comprehensive Income (Loss)

3

Consolidated Statements of Changes in Equity

5

Consolidated Statements of Cash Flows

7

Notes to the Consolidated Financial Statements

9

한영회계법인

Ernst & Young Han Young

서울특별시 영등포구 여의공원로 111, 태영빌딩 3-8F

07241

Taeyoung Building, 111, Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 07241 Korea

Tel: 02 3787 6600

Fax: 02 783 5890 ey.com/kr

Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Independent Auditor's Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders Korea Electric Power Corporation:

Opinion

We have audited the consolidated financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated statements of financial position as of December 31, 2020 and 2019, the consolidated statements of comprehensive income (loss), consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with Korean International Financial Reporting Standards ("KIFRS").

Basis for Opinion

We conducted our audit in accordance with Korean Auditing Standards ("KGAAS"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

- Impairment of property, plant and equipment ("PP&E")

As discussed in Note 3.(14) to the consolidated financial statements, at each reporting date, management assesses if any indicator of impairment for its PP&E exists. If there is an impairment indicator for a cash-generating unit ("CGU"), management compares the recoverable amount of the CGU with its carrying value to determine if the PP&E which are allocated to the respective CGU are impaired.

In view of the significant difference between the Group's market capitalization and its consolidated net assets carrying amount, management determined that an indicator of impairment of the Group's PP&E existed as of December 31, 2020, which is attributed to the CGU of the electricity transmission and distribution business.

Management performed an impairment assessment of the Group's PP&E allocated to CGU by comparing the carrying amount of the CGU with its value-in-use (VIU) which is determined based on discounted cash flow forecasts. Preparing the VIU estimation requires management to exercise significant judgment, particularly in relation to estimating future sales volumes, unit sales price, cost of power purchase, and discount rate. We have identified the assessment of impairment of PP&E in the electricity transmission and distribution business as a key audit matter because the carrying value of these assets are significant to the consolidated financial statements and also because estimation using a discounted cash flow forecast is complex and involves the exercise of significant management judgment in estimating the variable inputs, which can be inherently uncertain and could be subject to management bias.

The primary audit procedures we performed to address this key audit matter are as follows:

  • - We identified and tested key internal controls relating to the Group's assessment of impairment of PP&E.

  • - We assessed management's identification of CGU and the allocation of assets to each CGU with reference to our understanding of the Group's business

  • - We compared the forecasts included in the prior year's discounted cash flow forecasts to the current year's actual performance in order to assess the appropriateness of the estimates.

  • - We involved an internal valuation specialist to assist us in assessing the discount rate applied by management in comparison with our recalculated rate using both market and entity-specific information.

  • - We obtained the Group's business plan and external data for major unobservable inputs such as future sales volumes, unit sales price and cost of power purchase, used in estimating VIU, and considered whether there were any indicators of management bias.

  • - We evaluated the management's sensitivity analyses on the discount rate applied to the discounted cash flow forecasts and assessed the impact of changes in the key assumptions to the conclusions reached in the impairment assessments and whether there were any indicators of management bias.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with KIFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with KGAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with KGAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

  • - Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  • - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

  • - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

  • - Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

  • - Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

  • - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Jungik Park.

March 10, 2021

This audit report is effective as of March 10, 2021, the independent auditor's report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor's report date to the time this report is used. Such events and circumstances could significantly affect the accompanying consolidated financial statements and may result in modifications to report.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Financial Statements

For the years ended December 31, 2020 and 2019

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

Jong-Kap Kim

President/CEO

Korea Electric Power Corporation

Corporate Address: #55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, KOREA Phone Number: 061-345-3114(day) / 061-345-3203(night)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Financial Position

In millions of won

2020

2019

Assets

Current assets

Cash and cash equivalents

5,6,7,45

W

2,029,584

1,810,129

Current financial assets, net

5,6,9,11,12,13,45,47

2,800,220

1,586,509

Trade and other receivables, net

5,8,20,24,45,46,47

7,918,470

7,701,452

Inventories, net

14

6,742,909

7,050,700

Income tax receivables

41

49,675

99,718

Current non-financial assets

15

1,020,158

1,206,377

Assets held-for-sale

16,42

925

28,116

Total current assets

20,561,941

19,483,001

Non-current assets

Non-current financial assets, net

5,6,9,10,11,12,13,45,47

2,472,821

2,563,498

Non-current trade and other receivables, net

5,8,20,45,46,47

1,861,569

2,002,297

Property, plant and equipment, net

18,24,27,49

168,709,387

164,701,827

Investment properties, net

19,27

225,195

158,580

Goodwill

16

98,166

97,977

Intangible assets other than goodwill, net

21,27,46

1,055,730

1,069,976

Investments in associates

4,17

4,250,787

4,251,802

Investments in joint ventures

4,17

1,919,746

1,663,029

Defined benefit assets, net

25

7,231

1,047

Deferred tax assets

41

1,733,146

1,437,829

Non-current non-financial assets

15

246,392

166,929

Total non-current assets

182,580,170

178,114,791

Total Assets

4

W

203,142,111

197,597,792

(Continued)

Note

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Financial Position, Continued

In millions of won

Liabilities Current liabilities

Trade and other payables, net Current financial liabilities, net Income tax payables

Current non-financial liabilities Current provisions

Total current liabilities Non-current liabilities

Non-current trade and other payables, net Non-current financial liabilities, net Non-current non-financial liabilities Employee benefits liabilities, net Deferred tax liabilities Non-current provisions

Total non-current liabilities

Note

2020

2019

5,22,24,45,47

W

6,256,521 6,649,402

5,12,23,45,47

10,724,689 8,930,903

41

476,898

358,277

20,28,29

5,971,450 5,688,353

26,45

2,451,664 2,604,721

25,881,222

24,231,656

5,22,24,45,47

6,480,412 6,965,760

5,12,23,45,47

59,365,011 59,115,598

28,29

9,661,941 8,834,452

25,45

1,910,860 1,929,854

41

9,100,247 8,564,775

26,45

20,075,572 19,066,048

106,594,043

104,476,487

Total Liabilities

4

W

132,475,265

128,708,143

Equity Contributed capital

Share capital Share premium

1,30,45

Retained earnings 31

Legal reserves

Voluntary reserves Unappropriated retained earningsOther components of equity 34

Other capital surplus

Accumulated other comprehensive loss Other equity

W

3,209,820 843,758 4,053,578

3,209,820 843,758 4,053,578

1,604,910 1,604,910

32,179,066 34,785,425

17,349,625 12,811,798

51,133,601

1,224,105

(409,577)

13,294,973 14,109,501

49,202,133

1,226,364

(280,730)

13,294,973 14,240,607

Equity attributable to owners of the controlling company

69,296,680 67,496,318

Non-controlling interests 16,33

1,370,166 1,393,331

Total Equity

W

70,666,846

68,889,649

Total Liabilities and Equity

W

203,142,111

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

197,597,792

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2020 and 2019

In millions of won, except per share information

Note

2020

2019

Sales

Sales of goods Sales of services

Sales of construction services Revenue related to transfer of assets from customers

4,35,45,47

20 28

Cost of sales 14,25,43,47

Cost of sales of goods

Cost of sales of services

Cost of sales of construction services

W

56,684,312 429,350 812,175 643,477 58,569,314

56,894,876 408,290 1,264,916

604,808 59,172,890

(50,353,315) (55,750,468)

(441,851) (1,030,601)

(1,009,430) (51,804,596)

(998,766) (57,779,835)Gross profit

6,764,718

1,393,055

Selling and administrative expenses 25,36,43,47

(2,678,443) (2,669,576)Operating profit (loss)

4

4,086,275 (1,276,521)Other income

37

392,971

393,165

Other expenses

37

(417,720) (241,913)Other gains (losses), net

38

35,094 (582,258)Finance income 5,12,39

1,510,249

1,009,706

Finance expenses 5,12,40

Profit (loss) related to associates,

joint ventures and subsidiaries 4,16,17 Share in profit of associates and joint ventures

Gain on disposal of investments in associates and joint ventures

Share in loss of associates and joint ventures Loss on disposal of investments in associates and joint ventures

Impairment loss on investments in associates and joint ventures

Loss on disposal of investments in subsidiaries

Profit (loss) before income tax

(2,896,443)

(2,782,156)

398,972 257,673

10,165 70,094

(119,848)

(16)

(90,853)

(2)

(1,556) (6,610) 281,107 2,991,533

(22,517)

(256) 214,139

(3,265,838)

Income tax benefit (expense)

41

(899,064)

1,002,303

Profit (loss) for the year

W

2,092,469

(2,263,535)

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Comprehensive Income (Loss), Continued

For the years ended December 31, 2020 and 2019

In millions of won, except per share information

Note

2020

2019

Other comprehensive income (loss), net of tax Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit liability Share in other comprehensive income (loss)

of associates and joint ventures

Net change in fair value of equity investments at fair value through other comprehensive income 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 Foreign currency translation of

5,12,25,31,34

25,31

31

34

5,12,34

foreign operations 34

Share in other comprehensive income (loss) of associates and

joint ventures 34

W

(69,804)

42,315

3,181 (6,789)

(8,532) (11,732)

64,561 19,242

(76,442) 72,816

(132,805) 19,344

Other comprehensive income (loss) for the year

(219,841) 135,196

Total comprehensive income (loss) for the year

Profit (loss) attributable to:

Owners of the controlling company 44 Non-controlling interests

Total comprehensive income (loss)

attributable to:

Owners of the controlling company Non-controlling interests

Earnings (loss) per share (in won) 44

Basic and diluted earnings (loss) per share

W

1,872,628 (2,128,339)

W

1,991,347 (2,345,517)

101,122

W

2,092,469 (2,263,535)

W

1,802,824 (2,239,147)

W

69,804 1,872,628

W

3,102

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

81,982

110,808 (2,128,339)

(3,654)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity

For the years ended December 31, 2020 and 2019

In millions of wonBalance at January 1, 2019

Total comprehensive income (loss) for the year

Profit (loss) for the year

Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit liability, net of tax

Share in other comprehensive loss of associates and joint ventures, net of tax

Net change in fair value of equity investments at fair value through other comprehensive income, net of tax

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

Foreign currency translation of foreign operations, net of tax Share in other comprehensive income of associates and joint ventures, net of tax Transactions with owners of the

Company, recognized directly in equity

Dividends paid

Issuance of shares of capital by subsidiaries and others Transactions between consolidated entities

Changes in consolidation scope Dividends paid (hybrid bond)

Others

Balance at December 31, 2019

  • W 4,053,578

  • W 4,053,578

Equity attributable to owners of the controlling company

Other

Non-

Contributed Retained components

controlling

Total

capital earnings of equity Subtotal

interests

equity

1,348,837

71,092,762

81,982

(2,263,535)

6,155

42,315

-

(6,789)

-

(11,732)

5,201

19,242

17,469

72,816

1

19,344

(99,255)

(99,255)

21,071

21,071

323

(8,137)

24,932

24,932

(13,385)

(13,385)

-

-

1,393,331

68,889,649

51,519,119

  • - (2,345,517)

-

-

-

- -

-

- - - - - -

14,171,228

69,743,925

- (2,345,517)

36,160

-36,160

(6,789) - (6,789)

-

- -

-

- - - - -

(840)

49,202,133

  • (11,732) (11,732)

  • 14,041 14,041

  • 55,347 55,347

  • 19,343 19,343

- -

(8,460)

- - 840 14,240,607

- -

(8,460)

- - - 67,496,318

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2020 and 2019

In millions of wonBalance at January 1, 2020

Total comprehensive income (loss) for the year

Profit for the year

Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit liability, net of tax

Share in other comprehensive loss of associates and joint ventures, net of tax

Net change in fair value of equity investments at fair value through other comprehensive income, net of tax

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 Foreign currency translation of foreign operations, net of tax Share in other comprehensive loss of associates and joint ventures, net of tax

Transactions with owners of the

Company, recognized directly in equity

Dividends paid

Issuance of shares of capital by subsidiaries and others Transactions between consolidated entities

Changes in consolidation scope Dividends paid (hybrid bond)

Balance at December 31, 2020

W 4,053,578 49,202,133

Equity attributable to owners of the controlling company

Other

Non-

Contributed Retained components

controlling

Total

capital earnings of equity Subtotal

interests

equity

1,393,331

68,889,649

101,122

2,092,469

(6,947)

(69,804)

-

3,181

1

(8,532)

6,038

64,561

(30,410)

(76,442)

-

(132,805)

(81,011)

(81,011)

(5,297)

(5,445)

1,040

(1,274)

5,684

5,684

(13,385)

(13,385)

1,370,166

70,666,846

  • - 1,991,347

  • - (62,857)

-

-

- -

-

- - - - -

W 4,053,578

3,181

-

- -

-

- -

(203)

- - 51,133,601

14,240,607 67,496,318

  • - 1,991,347

  • - (62,857)

-3,181

(8,533)

(8,533)

58,523

58,523

  • (46,032) (46,032)

  • (132,805) (132,805)

-

(148)

(2,111)

- - 14,109,501

-

(148)

(2,314)

- - 69,296,680

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows

For the years ended December 31, 2020 and 2019

In millions of won

2020

2019

Cash flows from operating activities

Profit (loss) for the year

W

2,092,469

(2,263,535)

Adjustments to reconcile net profit (loss) to net cash flows

provided by operating activities:

Income tax expense (benefit)

899,064

(1,002,303)

Depreciation

11,377,553

10,971,825

Amortization

170,466

156,915

Employee benefit expense

492,288

725,120

Bad debt expense

50,686

16,629

Interest expense

1,995,425

2,046,811

Loss on disposal of financial assets

648

2,106

Loss on disposal of property, plant and equipment

162,725

72,508

Loss on abandonment of property, plant, and equipment

255,346

364,233

Loss on impairment of property, plant, and equipment

80,413

50,034

Loss on impairment of intangible assets

3,599

513,609

Loss on disposal of intangible assets

392

827

Increase in provisions

1,832,765

2,301,215

Loss (gain) on foreign currency translation, net

(782,167)

370,309

Gain on valuation of financial assets at fair value through

profit or loss

(12,904)

(5,575)

Loss on valuation of financial assets at fair value through

profit or loss

7,396

4,513

Valuation and transaction loss (gain) on derivative

instruments, net

390,322

(403,765)

Share in profit of associates and joint ventures, net

(279,124)

(166,820)

Gain on disposal of financial assets

(11,992)

(3,866)

Gain on disposal of property, plant and equipment

(93,195)

(43,784)

Gain on disposal of intangible assets

(1,556)

(206)

Gain on disposal of associates and joint ventures

(10,165)

(70,094)

Loss on disposal of associates and joint ventures

16

2

Impairment loss on associates and joint ventures

1,556

22,517

Loss on disposal of subsidiaries

6,610

256

Interest income

(242,586)

(268,118)

Dividend income

(7,316)

(13,838)

Others, net

30,411

128,237

16,316,676

15,769,297

Changes in working capital:

Trade receivables

(107,639)

95,345

Non-trade receivables

459,524

64,027

Accrued income

(258,963)

83,589

Other receivables

(32,536)

(116,583)

Other current assets

(462,125)

(271,986)

Inventories

(723,495)

(980,216)

Other non-current assets

(140,017)

(611,066)

Trade payables

(262,985)

(546,159)

Non-trade payables

(363,260)

192,506

Accrued expenses

(222,113)

(454,501)

Other current liabilities

388,163

373,403

Other non-current liabilities

755,005

650,468

Investments in associates and joint ventures

(dividends received)

237,695

215,612

Provisions

(1,499,436)

(1,473,461)

Payments of employee benefit obligations

(74,848)

(65,242)

Plan assets

(582,275)

(348,386)

W

(2,889,305)

(3,192,650)

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Consolidated Statements of Cash Flows, Continued

For the years ended December 31, 2020 and 2019

In millions of won

2020

2019

Cash generated from operating activities

W

15,519,840

10,313,112

Dividends received (financial assets at fair value through other

comprehensive income)

7,316

24,255

Interest paid

(2,081,663)

(2,027,850)

Interest received

215,183

186,122

Income taxes paid

(452,203)

(282,211)

Net cash provided by operating activities

13,208,473

8,213,428

Cash flows from investing activities

Proceeds from disposals of associates and joint ventures

5,444

-

Acquisition of investments in associates and joint ventures

(342,116)

(107,821)

Proceeds from disposals of property, plant and equipment

331,777

522,742

Acquisition of property, plant and equipment

(13,281,294)

(14,000,359)

Proceeds from disposals of intangible assets

10,871

7,702

Acquisition of intangible assets

(120,371)

(229,426)

Proceeds from disposals of financial assets

8,020,406

2,783,474

Acquisition of financial assets

(9,203,450)

(2,165,342)

Increase in loans

(336,744)

(335,773)

Collection of loans

215,292

292,745

Increase in deposits

(276,255)

(280,637)

Decrease in deposits

280,941

275,314

Proceeds from disposals of assets held-for-sale

32,578

30,662

Receipt of government grants

41,209

21,705

Cash outflow from merger

-

(154,311)

Net cash outflow from changes in consolidation scope

(24,624)

(2,917)

Other cash outflow from investing activities, net

(185,475)

(157,116)

Net cash used in investing activities

(14,831,811)

(13,499,358)

Cash flows from financing activities

Proceeds from short-term borrowings, net

345,338

188,957

Proceeds from long-term borrowings and debt securities

10,170,107

13,221,407

Repayment of long-term borrowings and debt securities

(7,976,658)

(7,068,290)

Payment of lease liabilities

(613,977)

(573,437)

Settlement of derivative instruments, net

42,263

102,146

Change in non-controlling interest

11,554

17,365

Dividends paid (hybrid bond)

(13,385)

(13,385)

Dividends paid

(81,298)

(99,356)

Other cash outflow from financing activities, net

(3,120)

-

Net cash provided by financing activities

1,880,824

5,775,407

Net increase in cash and cash equivalents before

effect of exchange rate fluctuations

257,486

489,477

Effect of exchange rate fluctuations on cash held

(38,031)

(37,693)

Net increase in cash and cash equivalents

219,455

451,784

Cash and cash equivalents at January 1, 2020

1,810,129

1,358,345

Cash and cash equivalents at December 31, 2020

W

2,029,584

1,810,129

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

  • 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's stock was listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO's head office is located in Naju, Jeollanam-do.

    As of December 31, 2020, KEPCO's share capital amounts to W3,209,820 million and KEPCO's shareholders are as follows:

    Percentage of

    Number of shares ownership

    Government of the Republic of Korea

    116,841,794

    18.20%

    Korea Development Bank

    211,235,264

    32.90%

    Others (*)

    313,887,019

    48.90%

    641,964,077

    100.00%

    (*) The number of shares held by foreign shareholders are 106,414,565 shares (16.58%) as of December 31, 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

    The consolidated financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred to as the "Group") were authorized for issuance by the Board of Directors on February 19, 2021, which will be submitted for approval at the shareholders' meeting held on March 25, 2021.

  • (1) Statement of compliance

    These consolidated financial statements have been prepared in accordance with KIFRS, as prescribed in the Act on External Audits of Corporations in the Republic of Korea.

  • (2) Basis of measurement

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

    • financial assets at fair value through profit or loss

    • financial assets at fair value through other comprehensive income

    • 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.

2.

Basis of Preparation, Continued

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 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).

2.

Basis of Preparation, Continued

Use of estimates and judgments, continued

  • (v) Unbilled revenue

    Energy delivered but not metered nor billed is estimated at the reporting date based on consumption statistics and selling price estimates. Determination of the unbilled revenues at the end of the reporting period is sensitive to the estimated consumptions and prices based on statistics. Unbilled revenue recognized as of December 31, 2020 and 2019 are W1,691,294 million and W1,580,804 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.

(vii)Early shutdown of Wolsong unit 1 nuclear power plant and changes in new nuclear power plants construction

The 30-year designed life of Wolsong unit 1 nuclear power plant of the Group had expired on November 20, 2012. On February 27, 2015, however, approval from the Nuclear Safety and Security Commission (NSSC) was received to continue its operation until November 20, 2022.

According to the Eighth Basic Plan for Electricity Supply and Demand announced by the Ministry of Trade, Industry and Energy in 2017, Wolsong unit 1 nuclear power plant was expected to go through a comprehensive evaluation for the feasibility of continuous operation including economic efficiency and acceptability of household and community in 2018 in order to decide whether to shut down early. On June 15, 2018, the board of directors of Korea Hydro & Nuclear Power Co., Ltd. ("KHNP"), a subsidiary of KEPCO, has decided to shut down Wolsong unit 1 on the grounds that its deficit was increasing and its economic efficiency was low due to the nonoptimal utilization rate. On December 24, 2019, NSSC approved permanent shutdown of unit 1.

In addition, the Group has also decided to discontinue the construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2 pursuant to the government policy. Accordingly, the Group recognized impairment loss and other expenses during the year ended December 31, 2018.

Among the new nuclear power plants under construction, Shin-Hanwool unit 3 and 4, for which approval for power generation business was previously obtained, are not included in the list of construction suspension as determined by the board of directors of KHNP. However, it is highly likely that the construction of Shin-Hanwool unit 3 and 4 will be suspended according to the government's policy. Accordingly, the Group recognized impairment loss during the year ended December 31, 2018, as the Group believed that there was a significant change in its operating environment.

Korean government plans to refund to the Group for reasonable expenditures incurred in relation to the phase-out of nuclear power plants in accordance with the energy transformation policy established by Korean government. In doing so, after discussions with relevant government agencies and upon approval by the Congress, Korean government is considering using available resource including utilizing relevant fund to make the refund. Also, Korean government has stated that it plans to establish relevant legal basis of providing refund including utilizing available resource, if necessary.

As of December 31, 2020, there is no indication that the above-mentioned impairment no longer exists or has been reduced.

2.

Basis of Preparation, Continued

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 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 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 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.

Amendments to KIFRS 1116 Covid-19 Related Rent Concessions

The amendments provide relief to lessees from applying KIFRS 1116 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under KIFRS 1116 if the change were not a lease modification. The amendment applies to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted.

  • 3. Significant Accounting Policies

    The significant accounting policies applied by the Group in preparation of its consolidated financial statements are consistent with those followed in the preparation of the Group's consolidated financial statements as of and for the year ended December 31, 2019, except for the changes described in Note 2.(5).

  • (1) Basis of consolidation

    The consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Subsidiaries are controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

    Income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of The Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

    When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

    Transactions within the Group are eliminated during the consolidation.

    Changes in the Group's ownership interests in a subsidiary that do not result in the Group losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Group.

    When the Group loses control of a subsidiary, the income or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to income or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under KIFRS 1109 'Financial Instruments' or, when applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.

  • (2) Business combinations

    A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

    The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in income or loss as incurred.

3.

Significant Accounting Policies, Continued

Business combinations, continued

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at the acquisition date, except that:

  • - deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with KIFRS 1012 'Income Taxes' and KIFRS 1019 'Employee Benefits', respectively;

  • - assets (or disposal groups) that are classified as held for sale in accordance with KIFRS 1105 'Non-current Assets Held for Sale' are measured in accordance with that standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree (if any), the excess is recognized immediately in income or loss as a bargain purchase gain.

Non-controlling interest that is present on acquisition day and entitles the holder to a proportionate share of the entity's net assets in an event of liquidation, may be initially measured either at fair value or at the non-controlling interest's proportionate share of the recognized amounts of the acquiree's identifiable net assets. The choice of measurement can be elected on a transaction-by-transaction basis. Other types of non-controlling interests are measured at fair value or, when applicable, on the basis specified in other KIFRSs.

When the consideration transferred by the Group in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the 'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not re-measured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is re-measured at subsequent reporting dates in accordance with KIFRS 1109 'Financial Instruments', or with KIFRS 1037 'Provisions, Contingent Liabilities and Contingent Assets', as appropriate, with the corresponding gain or loss being recognized in income or loss.

When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is re-measured to fair value at the acquisition date (i.e. the date when the Group obtains control) and the resulting gain or loss, if any, is recognized in income or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to income or loss where such treatment would be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

The assets and liabilities acquired under business combinations under common control are recognized at the carrying amounts recognized previously in the consolidated financial statements of the ultimate parent. The difference between consideration transferred and carrying amounts of net assets acquired is recognized as part of share premium.

3.

Significant Accounting Policies, Continued

Investments in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not control or joint control over those policies. If the Group holds 20% ~ 50% of the voting power of the investee, it is presumed that the Group has significant influence.

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. If the investment is classified as held for sale, in which case it is accounted for in accordance with KIFRS 1105 'Non-current Assets Held for Sale', any retained portion of an investment in associates that has not been classified as held for sale shall be accounted for using the equity method until disposal of the portion that is classified as held for sale takes place. After the disposal takes place, the Group shall account for any retained interest in associates in accordance with KIFRS 1109 'Financial Instruments' unless the retained interest continues to be an associate, in which case the entity uses the equity method.

Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group's share of the income or loss and other comprehensive income of the associate. When the Group's share of losses of an associate exceeds the Group's interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in income or loss.

Upon disposal of an associate that results in the Group losing significant influence over that associate, any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with KIFRS 1109. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate.

In addition, the Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to income or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to income or loss (as a reclassification adjustment) when it loses significant influence over that associate.

The requirements of KIFRS 1028 'Investments in Associates and Joint Ventures' are applied to determine whether it is necessary to recognize any impairment loss with respect to the Group's investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with KIFRS 1036 'Impairment of Assets' as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount, any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with KIFRS 1036 to the extent that the recoverable amount of the investment subsequently increases.

When the Group transacts with its associate, incomes and losses resulting from the transactions with the associate are recognized in the Group's consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

  • 3. Significant Accounting Policies, Continued

  • (4) Joint arrangements

    A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified into two types - joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint ventures) have rights to the net assets of the arrangement.

    The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. The Group determines the type of joint arrangement in which it is involved by considering the structure and form of the arrangement, the terms agreed by the parties in the contractual arrangement and other facts and circumstances.

    If the Group is a joint operator, the Group is to recognize and measure the assets and liabilities (and recognize the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant KIFRSs applicable to the particular assets, liabilities, revenues and expenses. If the joint arrangement is a joint venture, the Group is to account for that investment using the equity method accounting in accordance with KIFRS 1028 'Investment in Associates and Joint Ventures' (refer to note 3.(3)), except when the Group is applicable to the KIFRS 1105 'Non-current Assets Held for Sale'.

  • (5) Non-current assets held-for-sale

    Non-current assets and disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

    When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.

    Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

  • (6) Goodwill

    The Group measures goodwill which acquired in a business combination at the amount recognized at the date on which it obtains control of the acquiree (acquisition date) less any accumulated impairment losses. Goodwill acquired in a business combination is allocated to each CGU that is expected to benefit from the synergies arising from the business acquired.

    The Group assesses at the end of each reporting period and whenever there is an indication that the asset may be impaired. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

    Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

    On disposal of the relevant CGU, the amount of goodwill is included in the determination of the gain or loss on disposal.

3.

Significant Accounting Policies, Continued

Revenue from Contracts with Customers

The Group recognizes revenue by applying the five-step approach (Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when the entity satisfied a performance obligation). The Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, excluding amounts collected on behalf of third parties. Also, the Group recognizes revenue when the Group satisfies a performance obligation by transferring a promised good or service to a customer.

The Group adopted the cost pass-through tariff system from January 1, 2021 with the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020, and the Group is currently analyzing the accounting policies regarding the adoption of the new system.

  • (i) Identify the performance obligations in the contract

    The Group is engaged in the generation, transmission and distribution of electricity and development of electric power resources, and electricity sales revenue accounts for 95.15% of consolidated revenue for the year ended December 31, 2020.

    Under KIFRS 1115, supplying electricity is a series of distinct goods or services identified as a single performance obligation. The Group is also engaged in contracts with customers for transmission and distribution, provision of power generation byproducts, EPC business, O&M, etc. that are identified as separate performance obligations for each contract.

  • (ii) Variable consideration

    The Group may be subject to a variation of consideration paid by the customer due to the progressive electricity billing system, discounts on electricity bills for policy purposes, penalties and delinquent payment, etc. The Group estimates an amount of variable consideration by using the expected value method that the Group expects to better predict the amount of consideration to which it will be entitled, and includes in the transaction price some or all of an amount of variable consideration only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

  • (iii) Performance obligations satisfied over time

    The Group satisfies its performance obligations for contracts such as EPC business, O&M, etc. over time. The Group recognizes revenue based on the percentage-of-completion on a reasonable basis.

    The Group recognizes revenue over time if one of the following criteria is met:

    • (a) the customer simultaneously receives and consumes the benefits provided by the Group's performance as the entity performs;

    • (b) the Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

    • (c) the Group's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

3.

Significant Accounting Policies, Continued

(8)

Leases

The lessee and the lessor account for each lease component separately from non-lease component, in the lease contracts or contracts that contain lease. However, the Group applied a practical expedient to each type of underlying asset in accounting as a lessee, and instead of separating the non-lease component from the lease component, it applied a method of accounting for each lease component and the related non-lease component as a single lease contract. The lessor's accounting has not changed significantly. Therefore, a lease that transfers most of the risks and rewards of ownership of the underlying asset is classified as a finance lease, and a lease that does not transfer most of the risks and rewards of ownership of the underlying asset is classified as an operating lease.

  • (i) The Group as a lessor

    In the case of finance leases, the Group recognizes the same amount of the net investment in the lease as finance lease receivables, and recognizes interest income using the effective interest method. Income from operating leases is recognized using the straight-line basis over the lease term, and lease opening direct costs incurred during the negotiation and contract phase of the operating lease contract are added to the carrying amount of the lease asset and recognized as expenses over the lease term on a straight-line basis.

  • (ii) The Group as a lessee

    (a) Right-of-use assets

    The Group recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

    (b) Lease liabilities

    At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period on which the event or condition that triggers the payment occurs.

    In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment of an option to purchase the underlying asset.

    (c) Short-term leases and leases of low-value assets

    The Group applies the short-term leases recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the leases of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

    Book value and changes in book value of right-of-use assets and lease liabilities during the period are described in Note 24.

3.

Significant Accounting Policies, Continued

  • (9) Foreign currencies

    Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary items in foreign currencies are retranslated to the functional currency using the reporting date's exchange rate. Non-monetary items that are measured at fair value in foreign currencies are retranslated to the functional currency at the exchange rate at the date that the fair value was determined, while nonmonetary items that are measured in terms of historical cost in foreign currencies shall not be retranslated.

    Exchange differences are recognized in profit or loss in the period in which they arise except for:

    • - Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;

    • - Exchange differences on transactions entered into in order to hedge certain foreign currency risks (refer to Note 3.(23)

      Derivative financial instruments, including hedge accounting); and

    • - Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to income or loss on disposal or partial disposal of the net investment.

    For the purpose of presenting financial statements, the assets and liabilities of the Group's foreign operations are expressed in Korean won using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (if applicable, in non-controlling interest).

    On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the controlling interests shall be reclassified from equity to profit or loss (as a reclassification adjustment). The cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the non-controlling interests shall be derecognised, but shall not be reclassified to profit or loss.

    On the partial disposal of a subsidiary that includes a foreign operation, the entity shall re-attribute the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income to the non-controlling interests in that foreign operation. In any other partial disposal of a foreign operation the entity shall reclassify to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income.

    Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation shall be treated as assets and liabilities of the foreign operation.

    Thus they shall be expressed in the functional currency of the foreign operation and shall be translated at the closing rate.

    And such exchange differences shall be recognized in equity.

  • (10) Borrowing costs

    The Group capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale.

    Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

    All other borrowing costs are recognized in income or loss in the period in which they are incurred.

3.

Significant Accounting Policies, Continued

(11) Government grants

Government grants are not recognized unless there is reasonable assurance that the Group will comply with the grant's conditions and that the grant will be received.

Benefit from a government loan at a below-market interest rate is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

  • (i) If the Group received grants related to assets

    Government grants whose primary condition is that the Group purchase, construct or otherwise acquire long-term assets are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.

  • (ii) If the Group received grants related to income

    Government grants which are intended to compensate the Group for expenses incurred are recognized as other income (government grants) in profit or loss over the periods in which the Group recognizes the related costs as expenses.

(12)Employee benefits

When an employee has rendered service to the Group during a period, the Group recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense).

For defined benefit pension plans and other post-employment benefits, the net periodic pension expense is actuarially determined by "Pension Actuarial System" developed by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. However, if there is not a deep market, market yields on government bonds are used.

Net defined benefit liability's measurement is composed of actuarial gains and losses, return on plan assets excluding net interest on net defined benefit liability, and any change in the effect of the asset ceiling, excluding net interest, which are immediately recognized in other comprehensive income. The actuarial gains or losses recognized in other comprehensive income which will not be reclassified into net profit or loss for later periods are immediately recognized in retained earnings. Past service cost will be recognized as expenses upon the earlier of the date of change or reduction to the plan, or the date of recognizing termination benefits.

The retirement benefit obligation recognized in the statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses and unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

3. Significant Accounting Policies, Continued

(13) Income taxes

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

(i) Current tax

Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.

Current tax assets and liabilities are offset only if, the Group:

  • (a) has a legally enforceable right to set off the recognized amounts; and

  • (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

(ii)Deferred tax

Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.

The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets or deferred tax liabilities on investment properties measured at fair value, unless any contrary evidence exists, are measured using the assumption that the carrying amount of the property will be recovered entirely through sale.

The Group recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Group recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries and associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.

(iii) Current and deferred tax for the year

Current and deferred tax are recognized in income or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

3. Significant Accounting Policies, Continued

(14)Property, plant and equipment

Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are recognized in the carrying amount of property, plant and equipment at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss as incurred.

Property, plant and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset's future economic benefits are expected to be consumed. For loaded nuclear fuel related to long-term raw materials and spent nuclear fuels related to asset retirement costs, the Group uses the unit-of-production method to measure and recognize depreciation expenses.

The estimated useful lives of the Group's property, plant and equipment are as follows:

Useful lives (years)

Buildings

8 ~ 40

Structures

5 ~ 50

Machinery

2 ~ 32

Vehicles

3~ 8

Loaded heavy water

30

Asset retirement costs

18, 30, 40, 60

Right-of-use assets

1 ~ 65

Ships

9

Others

4 ~ 15

A component that is significant compared to the total cost of property, plant and equipment is depreciated over its separate useful life.

Depreciation methods, residual values and useful lives of property, plant and equipment are reviewed at the end of each reporting period and if change is deemed appropriate, it is treated as a change in accounting estimate.

Property, plant and equipment are derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of a property, plant and equipment, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in income or loss when the asset is derecognized.

3. Significant Accounting Policies, Continued

(15) Investment property

Property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing are recognized in profit or loss as incurred.

Investment property except for land, are depreciated on a straight-line basis over 8 ~ 40 years as estimated useful lives.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income or loss in the period in which the property is derecognized.

(16)Intangible assets

(i) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

(ii)Research and development

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:

  • - The technical feasibility of completing the intangible asset so that it will be available for use or sale;

  • - The intention to complete the intangible asset and use or sell it;

  • - The ability to use or sell the intangible asset;

  • - How the intangible asset will generate probable future economic benefits;

  • - The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

  • - The ability to measure reliably the expenditure attributable to the intangible asset during its development.

    The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. When the development expenditure does not meet the criteria listed above, an internally-generated intangible asset cannot be recognized and the expenditure is recognized in income or loss in the period in which it is incurred.

    Internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.

3.

Significant Accounting Policies, Continued

(16) Intangible assets, continued

The estimated useful lives and amortization methods of the Group's intangible assets are as follows:

Useful lives (years)

Amortization methods

Usage rights for donated assets

10 ~ 30

Straight line

Software

4, 5

Straight line

Industrial rights

5 ~ 10

Straight line

Development expenses

5

Straight line

Leasehold rights

8 ~ 10

Straight line

Others

3 ~ 50 or indefinite

Straight line

Mining right

-

Unit of production

(iii) Intangible assets acquired in a business combination

Intangible assets that are acquired in a business combination are recognized separately from goodwill are initially recognized at their fair value at the acquisition date.

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

(iv) Derecognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in income or loss when the asset is derecognized.

(17) Greenhouse gas emissions rights (allowances) and obligations

In connection with Enforcement of Allocation and Trading of Greenhouse Gas Emissions Allowances, the Group applies the following accounting policies for greenhouse gas emissions rights and obligations.

(i)Greenhouse gas emissions rights

Greenhouse gas emissions rights consist of the allowances received free of charge from the government and the ones purchased. The cost of the greenhouse gas emissions rights includes expenditures arising directly from the acquisition and any other costs incurred during normal course of the acquisition.

Greenhouse gas emissions rights are held by the Group to fulfill the legal obligation and recorded as intangible assets. To the extent that the portion to be submitted to the government within one year from the end of reporting period, the greenhouse gas emissions rights are classified as current assets. Greenhouse gas emissions rights recorded as intangible assets are initially measured at cost and substantially remeasured at cost less accumulated impairment losses.

Greenhouse gas emissions rights are derecognized on submission to the government or when no future economic benefits are expected from its use or disposal.

(ii) Greenhouse gas emissions obligations

Greenhouse gas emissions obligations are the Group's present legal obligation to submit the greenhouse gas emissions

allowances to the government and recognized when an outflow of resources is probable and a reliable estimate can be made of the amount of the obligation. Greenhouse gas emissions obligations are measured as the sum of the carrying amount of the allocated rights that will be submitted to the government and the best estimate of expenditure required to settle the obligation at the end of the reporting period for any excess emission.

3. Significant Accounting Policies, Continued

  • (18) Impairment of non-financial assets other than goodwill

    At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets with definite useful lives to determine whether there is any indication that those assets may have been impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

    Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

    Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

    If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

    When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, to the extent the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

  • (19) Inventories

    Inventories are measured at the lower of cost and net realizable value. Cost of inventories for inventories in transit are measured by using specific identification method. Cost of inventories, except for those in transit, are measured under the weighted average method and consists of the purchase price, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

    Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, are recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs.

  • (20) Provisions

    Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

    The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

3. Significant Accounting Policies, Continued

(20) Provisions, continued

Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

(i)Provision for employment benefits

The Group determines the provision for employment benefits as the incentive payments based on the results of the individual performance evaluation or management assessment.

  • (ii) Provision for decommissioning costs of nuclear power plants

    The Group records the fair value of estimated decommissioning costs as a liability in the period in which the Group incurs a legal obligation associated with retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. Accretion expense consists of period-to-period changes in the liability for decommissioning costs resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows.

  • (iii) Provision for disposal of spent nuclear fuel

    Under the Radioactive Waste Management Act, the Group is levied to pay the spent nuclear fuel fund for the management of spent nuclear fuel. The Group recognizes the provision of present value of the payments.

  • (iv) Provision for low and intermediate radioactive wastes

    Under the Radioactive Waste Management Act, the Group recognizes the provision for the disposal of low and intermediate radioactive wastes in best estimate of the expenditure required to settle the present obligation.

  • (v) Provision for Polychlorinated Biphenyls ("PCBs")

    Under the regulation of Persistent Organic Pollutants Management Act, enacted in 2007, the Group is required to remove PCBs, a toxin, from the insulating oil of its transformers by 2025. As a result of the enactments, the Group is required to inspect the PCBs contents of transformers and dispose of PCBs in excess of safety standards under the legally settled procedures. The Group's estimates and assumptions used to determine fair value can be affected by many factors, such as the estimated costs of inspection and disposal, inflation rate, discount rate, regulations and the general economy.

  • (vi) Provisions for power plant regional support program

    Power plant regional support programs consist of scholarship programs to local students, local economy support programs, local culture support programs, environment development programs, and local welfare programs. The Group recognizes the provision in relation to power plant regional support program.

  • (vii) Provisions for transmission and transformation facilities-neighboring areas support program

    The Group has present obligation to conduct transmission and transformation facilities-neighboring areas support program under Act on assistance to transmission and transformation facilities-neighboring areas. The Group recognizes the provision of estimated amount to fulfill the obligation.

  • (viii) Renewable Portfolio Standard ("RPS") provisions

    RPS program is required to generate a specified percentage of total electricity to be generated in the form of renewable energy and provisions are recognized for the governmental regulations to require the production of energies from renewable energy sources such as solar, wind and biomass.

3. Significant Accounting Policies, Continued

(21) Financial instruments

The Group recognizes financial assets and financial liabilities in the statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Upon initial recognition, financial assets and financial liabilities are measured at their fair value plus, in the case of a financial asset or financial liabilities not at fair value through profit or loss, transaction costs that are directly attributable to the asset's acquisition or issuance.

(i) Classification and measurement of financial assets

The Group classifies financial assets into three principal categories; measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL) based on the business model in which assets are managed and their cash flow characteristics. The Group assesses the hybrid financial instrument in which derivatives embedded as whole for classification.

Cash flow characteristics Solely payments of principal and

Business model

To collect contractual cash flows

interest (SPPI) Amortized costOther than SPPI

Both collecting contractual cash flows and selling financial assets To sell financial assets

FVTPL

FVOCI (*1)

(*2)

FVTPL

  • (*1) To eliminate or reduce an accounting mismatch, the Group may elect to recognize the amount of change in fair value in profit or loss.

  • (*2) On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at

FVTPL: 1) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and 2) its contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) its contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL.

On initial recognition of equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in fair value in OCI, and will not reclassify (recycle) those items in OCI to profit or loss subsequently.

(ii) Classification and measurement of financial liabilities

Financial liabilities are classified as FVTPL or other financial liabilities.

A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

A non-derivative financial liability that is not classified as at FVTPL is classified as other financial liabilities. Other financial liabilities are measured initially at its fair value minus transaction costs that are directly attributable to the acquisition or issue. Other financial liabilities are subsequently measured at amortized cost using the effective interest method.

3. Significant Accounting Policies, Continued

(21) Financial instruments, continued (iii) Impairment: Financial assets and contract assets

The Group applies a forward-looking 'expected credit loss' (ECL) model for debt instruments, lease receivables, contractual assets, loan commitments and financial guarantee contracts.

The Group recognizes loss allowances measured on either of the 12-month or lifetime ECL based on the extent of increase in credit risk since inception as shown in the below table.

Classification

Loss allowances

Stage 1

Credit risk has not increased

12-month ECL: ECLs that resulted from possible default

significantly since the initial recognition

events within the 12 months after the

reporting date

Stage 2

Credit risk has increased

Lifetime ECL: ECL that resulted from all possible default

significantly since the initial recognition

events over the expected life of a financial

Stage 3

Credit-impaired

instrument

Under KIFRS 1109, the Group always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables or contract assets that result from transactions that are within the scope of KIFRS 1115 and that do not contain a significant financing component in accordance with KIFRS 1115 and if the trade receivables or contract assets include a significant financing component, the Group may choose as its accounting policy to measure the loss allowance at an amount equal to lifetime expected credit losses.

The Group has chosen to measure the loss allowance at an amount equal to lifetime expected credit losses for the trade receivables, contract assets and lease receivables that contain a significant financing component.

(iv) Derecognition

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Group enters into transactions whereby it transfers assets recognized in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

The Group derecognizes a financial liability when it contractual obligations are discharged or cancelled, or expire. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(22) Service Concession Arrangements

The Group recognizes revenues from construction services and operating services related to service concession arrangements in accordance with KIFRS 1115 ' Revenue from Contracts with Customers'.

The Group recognizes a financial asset to the extent that it has an unconditional contractual right to receive cash or another financial asset for the construction services and an intangible asset to the extent that it receives a right (license) to charge users of the public service. Borrowing costs attributable to the arrangement are recognized as an expense in the period in which they are incurred unless the Group has a contractual right to receive an intangible asset (a right to charge users of the public service). In this case, borrowing costs attributable to the arrangement are capitalized during the construction phase of the arrangement.

3. Significant Accounting Policies, Continued

(23) Derivative financial instruments, including hedge accounting

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and cross currency swaps and others.

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value. The resulting gain or loss is recognized in income or loss immediately unless the derivative is designated and effective as a hedging instrument, in such case the timing of the recognition in income or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognized as a financial asset; a derivative with a negative fair value is recognized as a financial liability. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities.

(i) Separable embedded derivatives

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and when the host contracts are not measured at FVTPL.

An embedded derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the hybrid instrument to which the embedded derivative is part of, is more than 12 months and it is not expected to be realized or settled within 12 months. All other embedded derivatives are presented as current assets or current liabilities.

(ii)Hedge accounting

The Group designates certain hedging instruments, which include derivatives, embedded derivatives and non-derivatives in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

  • (iii) Fair value hedges

    Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in income or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The changes in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk relating to the hedged items are recognized in the consolidated statements of comprehensive income.

    Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized as income or loss as of that date.

  • (iv) Cash flow hedges

    The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in income or loss, and is included in the 'finance income and expense'.

3.

Significant Accounting Policies, Continued

(23) Derivative financial instruments, including hedge accounting, continued

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to income or loss in the periods when the hedged item is recognized in income or loss, in the same line of the consolidated statement of comprehensive income as the recognized hedged item. However, when the forecast transaction that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the non-financial asset or non-financial liability.

Hedge accounting is discontinued when the Group revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or it no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in income or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in income or loss.

(24)Assets held-for-sale

The Group classifies non-current assets or disposal groups as held for sale if their carrying amounts will be recovered principally through a sale or distribution rather than through continuing use. The criteria for assets-held-for-sale classification is regarded as met only when the disposal is highly probable, and the asset or disposal group is available for immediate distribution in its present condition. Management must be committed to the distribution expected within one year from the date of the classification.

Such non-current assets and disposal groups classified as held for sale or as held for distribution are measured at the lower of their carrying amount and fair value less costs to sell or to distribute.

4.

Segment, Geographic and Other Information

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.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2019

4.

Segment, Geographic and Other Information, Continued

(2)

Financial information of the segments for the years ended December 31, 2020 and 2019, respectively, are as follows:

In millions of won

Segment

2020

Revenue

Total segment revenue

Intersegment revenuefrom external customers

Operating profit (loss)

Depreciation and amortization

Interest incomeInterest expense

Profit (loss) related associates, joint ventures and subsidiaries

Transmission and distribution

Electric power generation (Nuclear)

Electric power generation (Non-nuclear)

Plant maintenance & engineering service Others

Consolidation adjustmentsW

57,989,410 9,938,941 20,329,611 2,703,472 1,582,001 (33,974,121)

1,224,602 9,817,147 19,552,376 2,283,333 1,096,663 (33,974,121)

56,764,808

121,794 777,235 420,139 485,338 -

2,785,145 1,338,642

(150,427)

238,007 111,055 (236,147)

3,836,355 3,564,120 4,034,024

119,056 122,092 (127,628)

48,220 25,581 20,843 11,789 167,005 (30,852)

737,973 503,485

169,176

(4,905)

622,346 115,096

1,250 1,740

162,843 (32,472)

- -

  • W 58,569,314

In millions of wonSegment

-

58,569,314

4,086,275

11,548,019

2019

242,586

Total segment revenue

1,995,425

Intersegment revenue

281,107

Revenue from external customers

Operating profit (loss)

Depreciation and amortization

Interest incomeInterest expense

Profit (loss) related associates, joint ventures and subsidiaries

Transmission and distribution

Electric power generation (Nuclear)

Electric power generation (Non-nuclear)

Plant maintenance & engineering service Others

Consolidation adjustmentsW

58,933,180 8,937,026 24,254,957 2,627,539 1,049,324 (36,629,136)

1,336,725 8,908,803 23,472,153 2,254,841 656,614 (36,629,136)

57,596,455

28,223 782,804 372,698 392,710 -

(2,848,347)

822,785 548,267 325,390 (14,804) (109,812)

3,814,428 3,227,695 3,955,333

125,546 127,364 (121,626)

73,478 37,277 35,626 14,214 141,262 (33,739)

777,120

140,757

511,864 (5,497)

655,466 77,641

2,861 1,238

134,248 (34,748)

- -

  • W 59,172,890

-

59,172,890

(1,276,521)

11,128,740

268,118

2,046,811

214,139

  • 4. Segment, Geographic and Other Information, Continued

  • (3) Information related to segment assets and segment liabilities as of and for the years ended December 31, 2020 and 2019 are as follows:

    In millions of won 2020

    Segment

    Transmission and distribution Electric power generation (Nuclear) Electric power generation (Non-nuclear) Plant maintenance & engineering service Others

    W

    Consolidation adjustments

    WIn millions of wonSegment

    Transmission and distribution

    • W 109,809,254

      Electric power generation (Nuclear) 59,562,190

      Electric power generation (Non-nuclear) 54,758,933

      Plant maintenance & engineering service 3,528,879

      Others 7,833,516

      Consolidation adjustments

    • W 197,597,792

    Investments in

    Segment

    associates and

    Acquisition of

    Segment

    assets

    joint ventures

    non-current assets

    liabilities

    113,115,667

    4,204,090

    6,535,380

    59,772,046

    61,850,865

    116,867

    2,419,939

    35,652,467

    54,531,155

    1,807,409

    3,758,795

    33,292,680

    3,492,571

    42,167

    141,226

    1,061,949

    8,923,046

    -

    577,056

    4,039,220

    (38,771,193)

    -

    (30,731)

    (1,343,097)

    203,142,111

    6,170,533

    13,401,665

    132,475,265

    2019

    Investments in

    associates and

    Acquisition of

    Segment

    joint ventures

    non-current assets

    liabilities

    3,716,931

    6,340,593

    58,350,681

    59,081

    2,574,358

    33,909,152

    2,088,581

    4,955,784

    33,117,193

    50,238

    95,810

    1,124,855

    -

    344,795

    3,531,496

    -

    (81,555)

    (1,325,234)

    5,914,831

    14,229,785

    128,708,143

    Segment assets

    (37,894,980)

  • (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

Geographical unit

2020

2019

Domestic

W

57,418,054

57,546,936

173,673,478

169,366,365

Overseas (*1)

1,151,260

1,625,954

2,831,925

2,743,755

W

58,569,314

59,172,890

176,505,403

172,110,120

Revenue from external customers

Non-current assets (*2)

2020

2019

  • (*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.

  • 4. Segment, Geographic and Other Information, Continued

  • (5) Information on significant customers

    There is no individual customer comprising more than 10% of the Group's revenue for the years ended December 31, 2020 and 2019.

  • 5. Classification of Financial Instruments

  • (1) Classification of financial assets as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

Financial assets at fair value through profit or lossFinancial assets at fair value through other comprehensive incomeFinancial assets at amortized costDerivative assets (applying hedge accounting)

TotalCurrent assets

Cash and cash equivalents Current financial assetsW

-

-2,029,584 - 2,029,584

Current financial assets at fair value through profit or loss Current financial assets at amortized costs Current derivative assets Other financial assets Trade and other receivables

1,196,101

- 18,332 - - 1,214,433

- - - - - -

- - 1,196,101

13,149 - 13,149

-

11,193 29,525

1,561,445 - 1,561,445

7,918,470 - 7,918,470

11,522,648

11,193 12,748,274

Non-current assets Non-current financial assets

Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income Non-current financial assets at amortized costs Non-current derivative assets Other financial assets

685,281 - - - 685,281

-

358,559 - - 358,559

Trade and other receivables

- 92,432 - - 777,713

  • W 1,992,146

- - - - 358,559 358,559

1,273 - 1,273

-

44,456 136,888

1,290,820 - 1,290,820

1,861,569 - 1,861,569

3,153,662 14,676,310

44,456 4,334,390

55,649 17,082,664

5.

Classification of Financial Instruments, Continued

Classification of financial assets as of December 31, 2020 and 2019 are as follows, continued:

In millions of wonCurrent assets

Cash and cash equivalents Current financial assets

Current financial assets at fair value through profit or loss Current financial assets at amortized costs Current derivative assets Other financial assets Trade and other receivables

Non-current assets Non-current financial assets

Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income Non-current financial assets at amortized costs Non-current derivative assets Other financial assets

Trade and other receivablesFinancial assets at fair value through profit or loss

W

-131,385

- 21 - - 131,406

Financial assets at fair value through other comprehensive income

-

- - - - - -

2019

Financial assets at amortized costDerivative assets (applying hedge accounting)

Total

1,810,129

-

1,810,129

- - 131,385

12,302 - 12,302

-

27,597 27,618

1,415,204 - 1,415,204

7,701,452 - 7,701,452

10,939,087

27,597 11,098,090

615,876 - - - 615,876

-W

- 165,183 - - 781,059 912,465

379,170 - - 379,170

- - - - 379,170 379,170

1,307 - 1,307

-

118,232 283,415

1,283,730 - 1,283,730

2,002,297 - 2,002,297

3,287,334 14,226,421

118,232 4,565,795

145,829 15,663,885

5.

Classification of Financial Instruments, Continued

Classification of financial liabilities as of December 31, 2020 and 2019 are as follows:

In millions of wonCurrent liabilities Borrowings Debt securities Derivative liabilities Trade and other payablesNon-current liabilities Borrowings

Debt securities Derivative liabilities Trade and other payables

Financial liabilities at fair value through profit or loss

W

2020

Financial liabilities recognized at amortized costDerivative liabilities

(applying hedge accounting)

Total

- - 13,053 - 13,053

- - 144,873 - 144,873

2,113,181 - 2,113,181

8,561,624 - 8,561,624

- 6,256,521 16,931,326

36,831 - 36,831

49,884 6,256,521 16,981,210

3,003,999 - 3,003,999

56,045,777 - 56,045,777

- 6,480,412 65,530,188

170,362 - 170,362

315,235 6,480,412 65,845,423

W

157,926

82,461,514

207,193

82,826,633

In millions of wonCurrent liabilities Borrowings Debt securities Derivative liabilities Trade and other payablesNon-current liabilities Borrowings

Debt securities Derivative liabilities Trade and other payables

Financial liabilities at fair value through profit or loss

W

2019

Financial liabilities recognized at amortized costDerivative liabilities

(applying hedge accounting)

Total

- - 13,286 - 13,286

- - 39,861 - 39,861

1,315,134 - 1,315,134

7,542,705 - 7,542,705

- 6,649,402 15,507,241

59,778 - 59,778

73,064 6,649,402 15,580,305

3,389,743 - 3,389,743

55,628,959 - 55,628,959

- 6,965,760 65,984,462

57,035 - 57,035

96,896 6,965,760 66,081,358

W

53,147

81,491,703

116,813

81,661,663

5.

Classification of Financial Instruments, Continued

Classification of comprehensive income (loss) from financial instruments for the years ended December 31, 2020 and 2019 are as follows:

In millions of won

Cash and cash equivalents

Financial assets at fair value through profit or lossFinancial assets at fair value through other comprehensive income

Financial assets at amortized costLoans

Trade and other receivables

Short-term financial instruments

Long-term financial instruments Other financial assets Derivatives

(applying hedge accounting)Financial liabilities at fair value through profit or loss

Financial liabilities carried at amortized costDerivatives

(applying hedge accounting)Interest income

Gain (loss) on foreign currency transactions and translations Interest income

Dividends income

Gain (loss) on valuation of derivatives Gain (loss) on transaction of derivatives Gain (loss) on valuation of financial assets Gain (loss) on disposal of financial assets Dividends income

Interest income

Gain (loss) on foreign currency transactions and translations Interest income

Gain (loss) on foreign currency transactions and translations Interest income

Gain (loss) on foreign currency transactions and translations Interest income

Gain (loss) on foreign currency transactions and translations Interest income

Interest income

Gain (loss) on valuation of derivatives (profit or loss) Gain (loss) on valuation of derivatives (equity, before tax) Gain (loss) on transaction of derivatives

Gain (loss) on valuation of derivatives Gain (loss) on transaction of derivatives

Interest expense of borrowings and debt securities

Gain (loss) on repayment of financial liabilities Interest expense of trade and other payables Interest expense of others

Gain (loss) on foreign currency transactions and translations Gain (loss) on valuation of derivatives (profit or loss)

Gain (loss) on valuation of derivatives (equity, before tax) Gain (loss) on transaction of derivatives

2020

2019

W

9,419

42,861

(15,911) (3,332)

19,114 29,411

4,734 6,984

(52,447) 151,604

36,563 63,329

5,508 1,062

11,344 1,760

2,582 6,854

612 539

(1,733) (690)

26,232 63,448

(527) (631)

151,035 69,941

23,458 (31,500)

25,540 49,070

(38,088) 39,845

10,406 12,794

228

54

(77,733) 123,730

9,925 38,305

36,053 65,651

(104,607) 27,686

(49,788) (493)

1,365,801

(35)

1,394,328 -

88,757 94,019

540,867 558,464

772,045 (220,928)

(409,867)

14,330

101,295 (2,578)

42,565 (42,072)

  • 6. Restricted Deposits

    Restricted deposits as of December 31, 2020 and 2019 are as follows:

    In millions of won

    2020

    2019

    Cash and cash equivalentsShort-term financial instrumentsNon-current financial assets at fair value through profit or loss Long-term financial instrumentsEscrow

    Deposits for government project and others Collateral provided for borrowings Collateral provided for lawsuit

    Deposits for transmission regional support program

    Restriction on withdrawal related to 'win-win growth program' for small and medium enterprises and others Decommissioning costs of nuclear power plants

    Escrow

    Guarantee deposits for banking accounts at oversea branches

    Collateral provided for borrowings Decommissioning costs of nuclear power plants

    Funds for developing small and medium enterprises (*)

    W

    544

    -5,066 9,287

    117,747 63,198

    42

    3

    5,469 3,002

    109,000 93,000

    577,481 541,969

    76 74

    306 326

    11,745 11,745

    258,282 250,464

    210,000 200,000

    W

    1,295,758

    1,173,068

    (*) Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for

  • high potential businesses as of December 31, 2020 and 2019.

  • 7. Cash and Cash Equivalents

    Cash and cash equivalents as of December 31, 2020 and 2019 are as follows:

In millions of won

Cash

W

871

266

Other demand deposits

1,291,058

1,117,499

Short-term deposits classified as cash equivalents

432,263

527,235

Short-term investments classified as cash equivalents

305,392

165,129

W

2,029,584

1,810,129

38

2020

2019

8.

Trade and Other Receivables

Trade and other receivables as of December 31, 2020 and 2019 are as follows:

In millions of wonCurrent assets Trade receivables Other receivablesNon-current assets Trade receivables Other receivables

Gross amountWAllowance for doubtful accounts

2020

7,370,923 799,598 8,170,521

W

227,261 1,728,486 1,955,747 10,126,268

(208,184) (42,332) (250,516)

(806) (90,047) (90,853)

(341,369)Present value discount

- (1,535) (1,535)

Book value

7,162,739 755,731 7,918,470

-

226,455

(3,325) 1,635,114

(3,325) 1,861,569

(4,860) 9,780,039

In millions of wonCurrent assets Trade receivables Other receivablesNon-current assets Trade receivables Other receivables

Gross amountW

7,147,683 792,147 7,939,830

W

338,261 1,759,930 2,098,191 10,038,021

Allowance for doubtful accounts

2019

(208,505) (27,579) (236,084)

(4,254) (86,576) (90,830)

(326,914)Present value discount

- (2,294) (2,294)

Book value

6,939,178 762,274 7,701,452

(382)

333,625

(4,682) 1,668,672

(5,064) 2,002,297

(7,358) 9,703,749

8.

Trade and Other Receivables, Continued

Other receivables as of December 31, 2020 and 2019 are as follows:

In millions of won

Gross

Allowance for

Book

amount

doubtful accounts

value

Current assets

Non-trade receivables

W

441,031

(37,062)

-

403,969

Accrued income

38,956

-

-

38,956

Deposits

239,011

-

(1,535)

237,476

Finance lease receivables(*1)

57,084

(365)

-

56,719

Others

23,516

(4,905)

-

18,611

799,598

(42,332)

(1,535)

755,731

Non-current assets

Non-trade receivables

215,136

(80,451)

-

134,685

Accrued income

834

-

-

834

Deposits

364,855

-

(3,325)

361,530

Finance lease receivables(*2)

1,065,982

(625)

-

1,065,357

Others

81,679

(8,971)

-

72,708

1,728,486

(90,047)

(3,325)

1,635,114

W

2,528,084

(132,379)

(4,860)

2,390,845

Present value discount

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

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

In millions of won

Gross

Allowance for

Book

amount

doubtful accounts

value

Current assets

Non-trade receivables

W

376,438

(27,201)

-

349,237

Accrued income

68,921

-

-

68,921

Deposits

273,887

-

(2,294)

271,593

Finance lease receivables(*1)

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(*2)

1,118,537

(484)

-

1,118,053

Others

103,361

(7,438)

-

95,923

1,759,930

(86,576)

(4,682)

1,668,672

W

2,552,077

(114,155)

(6,976)

2,430,946

2019

  • (*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W112,789 million.

  • (*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,218,934 million.

(3) Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. 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.

2020

Present value discount

  • 8. Trade and Other Receivables, Continued

  • (4) Aging analysis of trade receivables as of December 31, 2020 and 2019 are as follows:

  • (5) Aging analysis of other receivables as of December 31, 2020 and 2019 are as follows:

In millions of won

Trade receivables: (not overdue)

W

7,274,773

7,338,757

Trade receivables: (impairment reviewed)

323,411

147,187

Less than 60 days

3,505

6,555

60 ~ 90 days

28,729

1,899

90 ~ 120 days

10,687

2,106

120 days ~ 1 year

34,036

37,357

Over 1 year

246,454

99,270

7,598,184

7,485,944

Less: allowance for doubtful accounts

(208,990)

(212,759)

Less: present value discount

-

(382)

W

7,389,194

7,272,803

2019

  • 2020

    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.

    In millions of won

    Other receivables: (not overdue)

    W

    2,363,967

    2,327,640

    Other receivables: (impairment reviewed)

    164,117

    224,437

    Less than 60 days

    46,399

    98,220

    60 ~ 90 days

    31,183

    2,034

    90 ~ 120 days

    1,873

    14,135

    120 days ~ 1 year

    11,803

    26,212

    Over 1 year

    72,859

    83,836

    2,528,084

    2,552,077

    Less: allowance for doubtful accounts

    (132,379)

    (114,155)

    Less: present value discount

    (4,860)

    (6,976)

    W

    2,390,845

    2,430,946

    2020

    2019

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

    model.

8.

Trade and Other Receivables, Continued

(6)Changes in the allowance for doubtful accounts for the years ended December 31, 2020 and 2019 are as follows:

In millions of won

Trade receivables

Other receivables

Trade receivables

Other receivables

Beginning balance

W

212,759

114,155

215,868

104,726

Bad debt expense

24,021

27,329

29,221

19,206

Write-off, etc.

(20,332)

(1,910)

(10,106)

(1,146)

Reversals

(3,373)

(2,464)

(41,940)

-

Others

(4,085)

(4,731)

19,716

(8,631)

Ending balance

W

208,990

132,379

212,759

114,155

2020

2019

  • 9. Financial Assets at Fair Value through Profit or Loss

  • (1) Financial assets at fair value through profit or loss as of December 31, 2020 and 2019 are as follows:

    In millions of wonFinancial assets at fair value through profit or loss

    Beneficiary Certificate

    Cooperative

    Others (*)

    Financial assets designated as at fair value through profit or loss

    Debt with embedded derivatives Others

    (*) 'Others' include MMT, etc.

    2020

    Current

    W

    Non-current

    1,313 - 1,194,788 1,196,101

    - - -

    W

    155,122 5,692 312,401 473,215

    2019

    Current

    Non-current

    894 160,952

    - 5,155

    130,491 244,857

    131,385

    410,964

    212,066 - 150,916

    - - 53,996

    212,066

    1,196,101

    -685,281

    204,912

    131,385

    615,876

  • (2) Details of income (loss) from financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019 are as follows:

In millions of won

Beneficiary Certificate

W

6,127

12,458

Cooperative

645

76

Debt with embedded derivatives

3,598

2,697

Other

30,329

17,002

W

40,699

32,233

2020

2019

10.

Financial Assets at Fair Value through Other Comprehensive Income

Changes in financial assets at fair value through other comprehensive income for the years ended December 31, 2020 and 2019 are as follows:

In millions of won

Listed Unlisted

Current financial assets at fair value through other comprehensive income

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

In millions of won

Listed Unlisted

Current financial assets at fair value through other comprehensive income

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

Beginning balanceBeginning balance

201,201

177,969 2,900

379,170 2,900

- 379,170

210,055

189,439

399,494

399,494

-

Acquisitions

2020

Valuation

Others

Ending balance

(4)

(7,809)

1,281

194,669

(1)

(23,128)

6,150

163,890

(5)

(30,937)

7,431

358,559

-

-

-

-

(5)

(30,937)

7,431

358,559

2019

Valuation

Others

Ending balance

-

-

(11,734)

2,880

201,201

1,876

(19,315)

3,715

2,254

177,969

1,876

(19,315)

(8,019)

5,134

379,170

-

-

-

-

-

1,876

(19,315)

(8,019)

5,134

379,170

44

-

Disposals

- 2,900

AcquisitionsDisposals

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

Shares

Ownership

Acquisition cost

Book value

Fair value

Listed

Korea District Heating Corp.

2,264,068

19.55%

W

173,201

91,356

91,356

Ssangyong Motor Co., Ltd.

38,568

0.03%

428

107

107

SM Korea Line Corp.

180

0.00%

1

1

1

Namkwang Engineering & Construction Co., Ltd.

121

0.00%

15

1

1

Bumyang Construction Co., Ltd.

35

0.00%

2

-

-

ELCOMTEC Co., Ltd.

32,875

0.04%

217

49

49

PAN Ocean Co., Ltd.

1,492

0.00%

14

7

7

Dongbu Corp.

955

0.02%

12

13

13

KSP Co., Ltd.

22,539

0.08%

53

34

34

STX Heavy Industries Co., Ltd.

7,419

0.12%

107

29

29

Codes Combine Co., Ltd.

291

0.00%

1

1

1

PT Adaro Energy Tbk.

480,000,000

1.50%

65,028

53,127

53,127

Energy Fuels Inc.

1,711,814

1.31%

16,819

7,888

7,888

Bunji Corporation Limited

99,763

0.07%

18,445

-

-

Denison Mines Corp.

58,284,000

9.76%

84,134

41,776

41,776

Fission 3.0

75,000

0.05%

-

6

6

Fission Uranium Corp.

800,000

0.16%

785

266

266

SangSangin Industry Co., Ltd.(formerly, DMC Co., Ltd.)

5,831

0.02%

38

4

4

Vitzosys Co., Ltd.

399

0.00%

2

2

2

EMnI Co., Ltd.

1,257

0.00%

25

2

2

359,327

194,669

194,669

Unlisted (*1)

Intellectual Discovery Co., Ltd.

1,000,000

6.00%

W

5,000

954

954

Hwan Young Steel Co., Ltd.

10,916

0.14%

1,092

97

97

SAMBO AUTO. Co., Ltd.

15,066

0.02%

38

38

38

Mobo Co., Ltd.

504

0.00%

14

14

14

Dae Kwang Semiconductor Co., Ltd.

589

0.07%

6

6

6

Sanbon Department Store

828

0.01%

124

3

3

Miju Steel Mfg. Co., Ltd.

1,097

0.23%

50

50

50

Sungwon Co., Ltd.

117

0.07%

15

15

15

KC Development Co., Ltd.

839

0.02%

6

6

6

IMHWA Corp.

329

0.11%

5

5

5

DALIM Special Vehicle Co., Ltd.

58

0.08%

10

10

10

ASA JEONJU Co., Ltd.

34,846

1.34%

697

69

69

Moonkyung Silica Co., Ltd.

42

0.56%

-

-

-

Sungkwang Timber Co., Ltd.

3

0.08%

5

5

5

HJ Steel Co., Ltd.

218

0.07%

2

2

2

KS Remicon Co., Ltd.

12

0.04%

3

3

3

Joongang Platec Co., Ltd.

3,591

0.75%

72

35

35

Pyungsan SI Co., Ltd.

434

0.01%

9

9

9

Samgong Development Co., Ltd.

12

0.01%

7

7

7

Joongang Development Co., Ltd.

540

0.12%

8

8

8

AJS Co., Ltd.

12,906

0.23%

32

32

32

MSE Co., Ltd.

429

0.13%

9

9

9

Ilrim Nano Tec Co., Ltd.

1,520

0.07%

15

15

15

Youngjin Hi-Tech Co., Ltd.

2,512

0.25%

126

21

21

Buyoung Co., Ltd.

270

0.00%

3

3

3

Ilsuk Co., Ltd.

152

0.17%

10

10

10

Dongyang Telecom Co., Ltd.

1,760

0.01%

11

1

1

Jongwon Remicon Co., Ltd.

31

0.18%

13

13

13

Zyle Daewoo Motor Sales Co., Ltd.

22

0.00%

-

-

-

Daewoo Development Co., Ltd.

8

0.00%

-

-

-

Seyang Inc.

537

0.05%

27

27

27

45

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Fair value

Seungri Enterprise Co., Ltd.

93

0.05%

3

3

3

Shin-E P&C Co., Ltd.

1,569

0.64%

111

3

3

Ejung Ad Co., Ltd.

132

0.09%

3

3

3

Solvus Co., Ltd.

1,056

0.04%

3

3

3

Myung Co., Ltd.

89

0.05%

2

2

2

Shinil Engineering Co., Ltd.

887

0.06%

3

3

3

Biwang Industry Co., Ltd

406

0.04%

2

2

2

Young Sung Co., Ltd.

89

0.40%

26

26

26

Yuil Industrial Electronics Co., Ltd.

804

0.32%

15

15

15

Woojin Industry Corporation

3

0.00%

16

16

16

Kwang Sung Industry Co., Ltd.

325

0.35%

7

7

7

Futech Mold Co., Ltd.

274

0.27%

14

14

14

Woojoo Environment Ind. Co., Ltd.

101

0.11%

13

13

13

Hyungji Esquire Co., Ltd.

61

0.02%

22

22

22

Kolmar Pharma Co., Ltd.

1,426

0.01%

52

3

3

Morado Co., Ltd.

209

0.04%

2

2

2

Myung Sung Tex Co., Ltd.

20

0.00%

2

2

2

Kwang Sung Co., Ltd.

610

0.53%

31

31

31

Seen Business and Technology co., Ltd.

29,424

0.73%

148

7

7

Woobang Construction Co., Ltd.

8

0.00%

8

8

8

Shin Pyung Co., Ltd.

6

0.03%

3

3

3

JMC Heavy Industries Co., Ltd.

2,724

0.10%

27

2

2

Najin Steel Co., Ltd.

37

0.06%

5

5

5

Sinkwang Industry Co., Ltd.

1,091

1.68%

5

5

5

Elephant & Friends Co., Ltd.

563

0.61%

3

3

3

Mireco Co., Ltd.

109

0.25%

11

11

11

L&K Industry Co., Ltd.

1,615

0.60%

24

24

24

JO Tech Co., Ltd.

1,263

0.62%

25

25

25

Kendae Printing Co., Ltd.

422

0.60%

21

21

21

Dauning Co., Ltd.

231

0.41%

6

6

6

Korea Trecision Co., Ltd.

22

0.45%

5

5

5

Ace Track Co., Ltd.

3,130

1.08%

219

59

59

Dung Hwan Co., Ltd.

556

0.02%

6

6

6

Hurim Biocell Co., Ltd.

1,021

0.00%

5

5

5

Smart Power Co., Ltd.

133,333

4.14%

200

200

200

Sunjin Power Tech Co., Ltd.

4,941

0.92%

247

32

32

Beer Yeast Korea Inc.

1,388

0.43%

7

7

7

B CON Co., Ltd.

96

1.16%

6

6

6

Ace Integration Co., Ltd

105

0.09%

24

24

24

AceInti Agricultural Co., Ltd.

16

0.02%

5

5

5

KyungDong Co., Ltd.

130

0.01%

1

1

1

ChunWon Development Co., Ltd.

193

0.19%

39

39

39

SungLim Industrial Co., Ltd.

29

0.03%

1

1

1

Korea Minerals Co., Ltd.

191

0.05%

134

1

1

HyoDong Development Co., Ltd.

128

0.16%

25

25

25

Haspe Tech Co., Ltd.

652

0.55%

20

20

20

JoHyun Co., Ltd.

350

1.56%

18

18

18

KC Co., Ltd.

5,107

0.17%

26

26

26

SeongJi Industrial Co.,Ltd.

41

0.05%

1

1

1

46

Acquisition cost

2020

Book value

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Acquisition cost

Book value

Fair value

Dong Yang Metal Co., Ltd.

2,951

1.97%

161

147

147

Seyang Precision Ind.Co., Ltd.

829

0.23%

41

41

41

Dooriwon Food System Co., Ltd.

13

0.27%

1

1

1

ShinShin Co., Ltd

339

1.12%

17

17

17

Sung Kwang Co., Ltd.

23

0.37%

6

6

6

Shinheung petrol. Co., Ltd.

699

0.14%

35

35

35

Force TEC Co., Ltd.

3,501

0.02%

18

18

18

Samsung Tech Co., Ltd.

486

1.28%

97

36

36

Tae Hyung Co., Ltd.

28

0.43%

20

20

20

Younil Metal Co., Ltd.

41

0.21%

21

21

21

Hankook Precision Ind Co., Ltd.

110

0.06%

3

3

3

CJ Paradise Co.,Ltd

24

0.02%

12

12

12

Han Young Technology Company Co.,Ltd.

35

0.00%

-

-

-

STX Offshore & Shipbuilding Co., Ltd.

8,622

0.25%

1,078

1,078

1,078

Ptotronics Co., Ltd.

843

0.42%

84

6

6

NFT Co., Ltd.

136

0.40%

8

8

8

Hyundaitech Co.,Ltd.

1,363

0.87%

27

27

27

Dasan Material Co., Ltd.

29

0.04%

22

22

22

Fish World Co.,Ltd.

47

0.21%

2

2

2

SG Shinsung Engineering and Construction Co., Ltd.

10

0.00%

6

6

6

Samdo Industry Electric Co.,Ltd.

48

0.02%

1

1

1

Taejung Industries Co.,Ltd.

9,268

0.30%

5

5

5

Shinsei Trading Co., Ltd.

64

0.72%

6

6

6

Dynamic Co., Ltd.

111

0.19%

3

3

3

Green Alchemy Co.,Ltd.

38,202

1.48%

191

17

17

Youone TBM Engineering & Construction Co., Ltd.

615

0.27%

31

31

31

KM Leatech Co., Ltd.

1,648

0.98%

8

8

8

Semist Co.,Ltd.

555

0.80%

3

3

3

Sewon Bus Co.,Ltd

12

0.00%

-

-

-

Enertec Co., Ltd.

7,937

0.19%

44

44

44

Sangji Co., Ltd.

20

0.26%

4

4

4

Bellie Doughnuts Co., Ltd.

169

0.19%

10

10

10

AIRTECH Information communication Co., Ltd

2,379

0.60%

12

12

12

Shin kwang Industrial Co., Ltd.

884

0.35%

55

55

55

Kiscom Co., Ltd.

1,493

0.04%

1

1

1

Wonil laser Co., Ltd

157

0.37%

16

16

16

Pyung Hwa Industrial Co.,Ltd.

3,388

3.00%

85

85

85

PT. Kedap Saayq

671

10.00%

18,540

-

-

Set Holding (*2)

1,100,220

2.50%

229,255

143,765

143,765

PT. Cirebon Energi Prasarana

22,420

10.00%

2,612

2,440

2,440

Choheung packing Co.,Ltd.

61

0.13%

12

12

12

Jaewoo Co., Ltd.

359

0.24%

11

11

11

Wooyang HC Co., Ltd

1,375

0.01%

159

159

159

Sungsan Parts Co., Ltd.

629

0.80%

63

63

63

TheYeonriji Co., Ltd.

116

0.10%

6

6

6

Flusys Co., Ltd.

9

0.08%

2

2

2

DongSeo Electronics Co., Ltd.

347

0.07%

17

17

17

Daewoo Display Co., Ltd.

177

0.03%

5

5

5

Yeong-gwang Remicon Co., Ltd.

15

0.12%

2

2

2

NTS Co., Ltd.

143

0.22%

36

36

36

47

2020

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Acquisition cost

Book value

Fair value

AID CO., Ltd.

1,212

0.57%

36

36

36

Changwon Eco-friendly farming Corp.

3

0.01%

-

-

-

Kumo Hitech Co., Ltd.

6,697

0.53%

100

100

100

Kyung Pyo Industry Co., Ltd.

186

0.76%

19

19

19

Daedong Industry Co., Ltd.

617

0.55%

46

46

46

Doosung Heavy Industries Co., Ltd.

53

0.06%

5

5

5

Samjoo Hightech Co., Ltd.

522

0.08%

3

3

3

Samkwang Chemical Co., Ltd.

204

1.27%

51

51

51

SG Corp.

213

0.54%

21

21

21

Shinseung Chemical Industy Co., Ltd.

5

0.01%

60

60

60

KJ Alloy Co., Ltd.

368

0.20%

7

7

7

SM Hi-tech Co., Ltd.

22

0.39%

22

22

22

Keum Mun Industry Co., Ltd.

1,320

0.97%

330

56

56

Puruen Environment Co., Ltd.

967

1.34%

19

19

19

Miretech Co., Ltd.

9,111

0.27%

18

18

18

SIE Co., Ltd.

12

0.02%

1

1

1

Sejin Hightech Co., Ltd.

17,980

0.16%

18

18

18

Eun Sung Enterprise Co., Ltd.

1,131

0.72%

17

17

17

Dongdo Basalt Industry Co., Ltd.

182

1.50%

73

73

73

Shinyoung Textiles Co., Ltd.

523

1.01%

52

23

23

Ilwoo Steel Co., Ltd.

41

0.28%

17

17

17

Dong-un Tech Co., Ltd.

1,159

6.28%

81

81

81

Wongwang Door Corp.

575

1.00%

29

29

29

Seobu Highway Solar Co., Ltd.

19,460

2.86%

195

195

195

Dongbu Highway Solar Co., Ltd.

19,020

4.99%

190

190

190

Mansu Co.,Ltd.

344

0.25%

15

15

15

Eanskorea Co., Ltd.

39

0.05%

2

2

2

Youngdongseafood Co., Ltd.

165

0.33%

8

8

8

Hyunwoo Winstar Co., Ltd.

1

0.00%

-

-

-

Sehwa Diecasting Co., Ltd.

299

1.66%

44

44

44

Sungchang Tech Co., Ltd.

159

0.31%

10

10

10

Yuchang Industry Co., Ltd.

90

0.11%

5

5

5

Jeongpum Co., Ltd.

322

0.35%

16

16

16

Korea Steel Power Co., Ltd.

2,761

1.88%

55

55

55

Amanex Co., Ltd.

10

0.02%

9

9

9

Dae-A Leisure Co., Ltd.

23

0.00%

4

4

4

Caffe Bene Co.,Ltd.

1,908

0.03%

2

2

2

Daechang HRSG Co.,Ltd.

618

0.12%

62

62

62

Shinjin International Corp.

4

0.01%

1

1

1

Daewoon Shell Tech Co., Ltd.

666

2.81%

33

33

33

Jinhung Packaging Co.,Ltd

4,329

3.02%

22

22

22

Donglim Eng Co., Ltd.

26

0.11%

3

3

3

SIP Co., Ltd.

274

0.55%

7

7

7

Clizen Co., Ltd.

615

0.34%

31

31

31

DAEDONGMILLENNIUM Co., Ltd.

159

0.42%

32

32

32

Daeji Product Co., Ltd.

15

0.05%

1

-

-

Cheong Hae Myeong Ga Co.,Ltd.

1,867

0.11%

5

5

5

Jaein Circuit Co., Ltd.

498

1.12%

65

65

65

SSET Co., Ltd.

181

0.30%

18

18

18

Sewon PM Tech Co., Ltd.

963

1.11%

48

48

48

Dawon Yuhwa Co., Ltd.

506

1.94%

25

25

25

Ogokbaekkwa Co., Ltd.

101

0.12%

1

1

1

Shinwoo Toptech Co., Ltd.

834

0.51%

83

83

83

KMLC Co., Ltd.

281

0.14%

22

22

22

48

2020

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Ownership

Book value

Seinfood Co., Ltd.

13

0.17%

7

7

7

TaeSung Eco-Tech. Co., Ltd.

1,368

4.55%

34

34

34

Kukex Inc.

639

0.05%

3

3

3

Youngshin Plus Co., Ltd.

104

0.12%

5

5

5

Chang won Engineering Co., Ltd.

22

0.00%

4

4

4

Samsung Silup Co., Ltd.

47

0.19%

5

5

5

Samwon Bio Tech Co., Ltd.

390

0.25%

6

6

6

IZU KOREA Co., Ltd.

48

0.00%

2

2

2

Dongdo CNP Co., Ltd.

234

0.36%

6

6

6

Dae Bang Industry Co.,Ltd.

115

0.13%

6

6

6

S.I.T. Co.,Ltd

2,213

0.44%

22

22

22

Taejin Hiech Co., Ltd.

78

0.26%

3

3

3

Headone Co.,Ltd.

69

0.12%

7

7

7

Enaindustry Co., Ltd.

201

0.28%

141

141

141

TCT Co., Ltd.

3,277

0.55%

82

82

82

E-Won Solutech Co., Ltd.

158

0.16%

40

40

40

MJT Co., Ltd.

1,013

0.20%

51

51

51

KPL Circuit Co., Ltd.

283

0.08%

14

14

14

Road Solar Co., Ltd.

12

0.00%

-

-

-

Sung Ae Co., Ltd.

190

0.80%

10

10

10

Han Mi Flexible Co.,Ltd.

143

0.20%

43

43

43

Samhwa Casting Co., Ltd.

200

0.04%

100

100

100

Millennium PNT Co., Ltd.

227

0.37%

6

6

6

GN Chem Co., Ltd.

40

0.07%

1

1

1

GW Industry Co., Ltd.

505

0.07%

51

51

51

TM Construction Co., Ltd.

4

0.00%

-

-

-

Dae Myung Co., Ltd.

114

0.08%

3

3

3

Nanomicart Co., Ltd.

176

1.06%

35

35

35

Young San Heavy Industries Co., Ltd.

74

0.11%

7

7

7

Samchungwon Co., Ltd.

15

0.24%

2

2

2

Wooyang Frozen Foods Co., Ltd.

66

0.82%

27

27

27

Nanomic Co., Ltd.

94

0.63%

38

38

38

Samsung Nonferrous Metal Co., Ltd.

89

0.26%

9

9

9

Daewha Fuel Pump Ind., Ltd.

83

0.05%

10

10

10

HIC Co., Ltd.

7,408

0.71%

111

111

111

Addies Direct Co., Ltd.

1

0.00%

-

-

-

WorldCnM Inc.

131

1.09%

10

10

10

Superone Co., Ltd.

1,585

1.45%

8

8

8

Deok-u Co., Ltd.

1,626

1.92%

195

195

195

Buyoung Panji Co., Ltd.

478

0.44%

12

12

12

International Paint Korea Co., Ltd.

111

0.48%

11

11

11

EI Lighting Co., Ltd.

358

0.36%

18

18

18

Hightech Mnp Co., Ltd.

123

0.35%

6

6

6

Dongjin Foundry Industry Co., Ltd.

966

4.10%

193

193

193

Yooseung Co., Ltd.

10

0.08%

1

1

1

Sungkwang Co., Ltd.

48

0.35%

2

2

2

Taeyang gasteel Co., Ltd.

8

0.02%

1

1

1

Ajin KSB Co., Ltd.

204

0.31%

18

18

18

Sewon Ceramic Co., Ltd.

530

1.01%

5

5

5

Choyang Tech Co., Ltd.

465

1.01%

23

23

23

49

Shares

2020

Acquisition cost

Fair value

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

2020

Shares

Ownership

Acquisition cost

Book value

Fair value

TK Co., Ltd.

307

0.70%

15

15

15

Sungdo Co., Ltd.

130

1.10%

52

52

52

KSM Tecj Co., Ltd.

25

0.11%

1

1

1

Arari Co., Ltd.

14

0.05%

1

1

1

Potech Co., Ltd.

39

0.13%

14

14

14

C&S Corporation Co., Ltd.

1,304

0.01%

13

13

13

Sungshin Parts Co., Ltd.

345

0.40%

14

14

14

Global The One of Korea Co., Ltd.

62

0.06%

3

3

3

Steellife Co., Ltd.

85

0.06%

4

4

4

D&C Castech Co., Ltd.

330

1.89%

25

25

25

Geumhan Co., Ltd.

498

0.24%

7

7

7

Mokgan Co., Ltd.

5

0.02%

1

1

1

Wenex Co., Ltd.

373

0.53%

19

19

19

Sulim Co., Ltd.

30

0.20%

6

6

6

Shinkwang Engineering

24

0.36%

2

2

2

Ek Cookware Co., Ltd.

60

0.04%

1

1

1

KTTW Co., Ltd.

28

0.05%

2

2

2

Avajar Co., Ltd.

1,061

0.01%

1

1

1

Koomin Precisions Co., Ltd.

124

0.26%

12

12

12

Woosung I.B. Co.,Ltd

7,071

0.07%

14

14

14

CAP Korea Co., Ltd.

16

0.30%

3

3

3

MSM Co., Ltd.

25

0.08%

-

-

-

Ddpopstyle Co., Ltd.

22

0.14%

1

1

1

Finemetal Co., Ltd.

49

0.08%

1

1

1

Sungkyeong Co., Ltd.

52

0.24%

2

2

2

RMK Co., Ltd.

63

0.90%

22

22

22

Tpp Co., Ltd.

36,645

11.72%

1,832

1,832

1,832

Kuklim Plastic New Technology Co., Ltd.

393

0.29%

8

8

8

Dukeong Metal Heat Treatment Co., Ltd.

843

3.61%

84

84

84

Newko Co., Ltd.

331

0.06%

10

10

10

KMC&R Co., Ltd.

16

0.11%

1

1

1

Dongsung Mulsan Co., Ltd.

137

0.34%

14

14

14

Pizzakorea Co., Ltd.

42

0.18%

9

9

9

Geumdani Co., Ltd.

2,377

1.82%

36

36

36

Mezzanine I-pack Co., Ltd.

38

0.02%

1

1

1

Newclean Livestock Co., Ltd.

86

0.17%

4

4

4

Ltop Co., Ltd.

36

0.06%

7

7

7

Simile Aluminium Co., Ltd.

428

0.31%

9

9

9

GT Tooling Co., Ltd.

604

0.17%

6

6

6

Panax Korea Co., Ltd.

58

0.14%

9

9

9

Team Korea Co., Ltd.

4,782

0.37%

24

24

24

Donghwa TCA Co., Ltd.

1,012

0.30%

25

25

25

Hankook Piaget Co., Ltd.

4

0.01%

1

1

1

Coco Food Co., Ltd.

648

1.24%

33

33

33

Woori Industry Co., Ltd.

102

1.05%

21

21

21

Para Belleza Co., Ltd

1,211

1.74%

74

74

74

Dongsung Co., Ltd.

1,983

1.63%

198

198

198

Ssangyong Youngweol Plant Service&Engineering Co., Ltd.

83

0.07%

4

4

4

SH Co., Ltd.

31

0.20%

6

6

6

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Namsunnam Co., Ltd.

1,275

0.19%

Daeyoung Co., Ltd.

75

0.01%

Chandown Food Co., Ltd.

46

0.14%

Getron Co., Ltd.

7,259

0.20%

Jungmun Co., Ltd.

19

0.26%

Andong Trading Corporation Co., Ltd.

42

0.00%

JM Tech Co., Ltd.

403

0.67%

SGC Energy Co., Ltd.

580,000

5.00%

Ihsung CNI Co., Ltd.

13,526

18.22%

H Robotics Co., Ltd.

9,192

4.55%

Good Tcells Co., Ltd.

11,364

0.34%

6

8

9

37

2

2

82

2,900

3,000

1,000

500

275,496

W

634,823

2020

Acquisition cost

Book value

6

6

8

8

9

9

37

37

2

2

2

2

82

82

2,900

2,900

3,000

3,000

1,000

1,000

500

500

163,890

163,890

358,559

358,559

Fair value

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

  • (*2) The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss for the year ended December 31, 2020.

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

2019

Shares

Ownership

Acquisition cost

Book value

Fair value

Listed

Korea District Heating Corp.

2,264,068

19.55%

W

173,201

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%

W

5,000

954

954

Hwan Young Steel Co., Ltd.

10,916

0.14%

1,092

97

97

SAMBO AUTO. Co., Ltd.

15,066

0.02%

38

38

38

Mobo Co., Ltd.

504

0.00%

14

14

14

Dae Kwang Semiconductor Co., Ltd.

589

0.07%

6

6

6

Sanbon Department Store

828

0.01%

124

3

3

Miju Steel Mfg. Co., Ltd.

1,097

0.23%

50

50

50

Sungwon Co., Ltd.

117

0.07%

15

15

15

Hana Civil Engineering Co., Ltd.

23

0.00%

1

1

1

KC Development Co., Ltd.

839

0.02%

6

6

6

IMHWA Corp.

329

0.11%

5

5

5

DALIM Special Vehicle Co., Ltd.

58

0.08%

10

10

10

ASA JEONJU Co., Ltd.

34,846

1.34%

697

69

69

Moonkyung Silica Co., Ltd.

42

0.56%

-

-

-

Sungkwang Timber Co., Ltd.

3

0.08%

5

5

5

Yongbo Co., Ltd.

61

0.20%

3

3

3

HJ Steel Co., Ltd.

218

0.07%

2

2

2

KS Remicon Co., Ltd.

12

0.04%

3

3

3

Joongang Platec Co., Ltd.

3,591

0.75%

72

35

35

Pyungsan SI Co., Ltd.

434

0.01%

9

9

9

Samgong Development Co., Ltd.

12

0.01%

7

7

7

Joongang Development Co., Ltd.

540

0.12%

8

8

8

AJS Co., Ltd.

12,906

0.23%

32

32

32

MSE Co., Ltd.

429

0.13%

9

9

9

Ilrim Nano Tec Co., Ltd.

1,520

0.07%

15

15

15

Youngjin Hi-Tech Co., Ltd.

2,512

0.25%

126

21

21

Buyoung Co., Ltd.

270

0.00%

3

3

3

Ilsuk Co., Ltd.

152

0.17%

10

10

10

Dongyang Telecom Co., Ltd.

1,760

0.01%

11

11

11

Jongwon Remicon Co., Ltd.

31

0.18%

13

13

13

Zyle Daewoo Motor Sales Co., Ltd.

22

0.00%

-

-

-

Daewoo Development Co., Ltd.

8

0.00%

-

-

-

Seyang Inc.

537

0.05%

27

27

27

52

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Fair value

Seungri Enterprise Co., Ltd.

93

0.05%

3

3

3

Onggane Food Co., Ltd

5

0.07%

1

1

1

Shin-E P&C Co., Ltd.

1,569

0.64%

111

3

3

Ejung Ad Co., Ltd.

132

0.09%

3

3

3

Solvus Co., Ltd.

1,056

0.04%

3

3

3

Myung Co., Ltd.

89

0.05%

2

2

2

Shinil Engineering Co., Ltd.

887

0.06%

3

3

3

Biwang Industry Co., Ltd

406

0.04%

2

2

2

Young Sung Co., Ltd.

89

0.40%

27

27

27

Yuil Industrial Electronics Co., Ltd.

804

0.32%

16

16

16

DN TEK Inc.

12,401

0.29%

62

6

6

Woojin Industry Corporation

3

0.00%

16

16

16

Kwang Sung Industry Co., Ltd.

325

0.35%

7

7

7

Futech Mold Co., Ltd.

274

0.27%

14

14

14

Woojoo Environment Ind. Co., Ltd.

101

0.11%

13

13

13

Hyungji Esquire Co., Ltd.

61

0.02%

22

22

22

Kolmar Pharma Co., Ltd.

1,426

0.01%

52

3

3

Morado Co., Ltd.

209

0.04%

2

2

2

Myung Sung Tex Co., Ltd.

20

0.00%

2

2

2

Kwang Sung Co., Ltd.

610

0.53%

31

31

31

Seen Business and Technology co., Ltd.

29,424

0.73%

147

7

7

Woobang Construction Co., Ltd.

8

0.00%

8

8

8

Shin Pyung Co., Ltd.

6

0.03%

3

3

3

JMC Heavy Industries Co., Ltd.

2,724

0.10%

27

2

2

Najin Steel Co., Ltd.

37

0.06%

5

5

5

Sinkwang Industry Co., Ltd.

1,091

1.68%

5

5

5

Elephant & Friends Co., Ltd.

563

0.61%

3

3

3

Mireco Co., Ltd.

109

0.25%

11

11

11

L&K Industry Co., Ltd.

1,615

0.60%

24

24

24

JO Tech Co., Ltd.

1,263

0.62%

25

25

25

Kendae Printing Co., Ltd.

422

0.60%

21

21

21

Dauning Co., Ltd.

231

0.41%

6

6

6

Korea Trecision Co., Ltd.

22

0.45%

5

5

5

Ace Track Co., Ltd.

3,130

1.08%

219

59

59

Yoo-A Construction Co., Ltd.

105

0.20%

11

11

11

Dung Hwan Co., Ltd.

531

0.02%

5

5

5

Hurim Biocell Co., Ltd.

1,021

0.00%

5

5

5

Smart Power Co., Ltd.

133,333

4.14%

200

200

200

Sunjin Power Tech Co., Ltd.

4,941

0.92%

247

32

32

Haseung Industries Co.,Ltd.

55

0.62%

28

28

28

Beer Yeast Korea Inc.

1,388

0.43%

7

7

7

B CON Co., Ltd.

96

1.16%

6

6

6

Ace Integration Co., Ltd

105

0.09%

23

23

23

AceInti Agricultural Co., Ltd.

16

0.02%

5

5

5

KyungDong Co., Ltd.

130

0.01%

1

1

1

ChunWon Development Co., Ltd.

193

0.19%

39

39

39

SungLim Industrial Co., Ltd.

29

0.03%

1

1

1

Korea Minerals Co., Ltd.

191

0.05%

135

1

1

HyoDong Development Co., Ltd.

128

0.15%

25

25

25

Haspe Tech Co., Ltd.

652

0.55%

20

20

20

JoHyun Co., Ltd.

350

1.56%

18

18

18

KC Co., Ltd.

5,107

0.17%

26

26

26

SeongJi Industrial Co.,Ltd.

41

0.05%

1

1

1

53

Acquisition cost

2019

Book value

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Acquisition cost

Book value

Fair value

Dong Yang Metal Co., Ltd.

2,951

1.97%

161

148

148

Seyang Precision Ind.Co., Ltd.

829

0.23%

41

41

41

Dooriwon Food System Co., Ltd.

13

0.27%

1

1

1

ShinShin Co., Ltd

339

1.12%

17

17

17

Sung Kwang Co., Ltd.

23

0.37%

6

6

6

Shinheung petrol. Co., Ltd.

699

0.14%

35

35

35

Force TEC Co., Ltd.

3,501

0.02%

18

18

18

Samsung Tech Co., Ltd.

486

1.28%

97

36

36

Tae Hyung Co., Ltd.

28

0.43%

20

20

20

Younil Metal Co., Ltd.

41

0.21%

21

21

21

Hankook Precision Ind Co., Ltd.

110

0.06%

11

3

3

Borneo International Furniture Co., Ltd.

4,000

0.16%

97

13

13

CJ Paradise Co.,Ltd

24

0.02%

12

12

12

Han Young Technology Company Co.,Ltd.

35

0.00%

-

-

-

STX Offshore & Shipbuilding Co., Ltd.

8,622

0.25%

1,078

1,078

1,078

Ptotronics Co., Ltd.

843

0.42%

84

6

6

NFT Co., Ltd.

136

0.40%

8

8

8

Echoroba Co.,Ltd.

157

0.02%

3

3

3

Hyundaitech Co.,Ltd.

1,363

0.87%

27

27

27

Dasan Material Co., Ltd.

29

0.04%

22

22

22

Fish World Co.,Ltd.

47

0.21%

2

2

2

SG Shinsung Engineering and Construction Co., Ltd.

10

0.00%

6

6

6

Samdo Industry Electric Co.,Ltd.

48

0.02%

1

1

1

Taejung Industries Co.,Ltd.

9,268

0.30%

5

5

5

Shinsei Trading Co., Ltd.

64

0.72%

6

6

6

Dynamic Co., Ltd.

111

0.19%

3

3

3

Green Alchemy Co.,Ltd.

38,202

1.48%

191

17

17

Youone TBM Engineering & Construction Co., Ltd.

615

0.27%

31

31

31

KM Leatech Co., Ltd.

1,648

0.98%

8

8

8

Semist Co.,Ltd.

555

0.80%

3

3

3

Sewon Bus Co.,Ltd

12

0.00%

-

-

-

Enertec Co., Ltd.

7,937

0.19%

44

44

44

Sangji Co., Ltd.

20

0.26%

4

4

4

Bellie Doughnuts Co., Ltd.

64

0.07%

4

4

4

Possbell Engineering Co., Ltd.

36

0.64%

1

1

1

AIRTECH Information communication Co., Ltd

2,379

0.60%

12

12

12

Shin kwang Industrial Co., Ltd.

884

0.35%

55

55

55

Kiscom Co., Ltd.

1,493

0.04%

1

1

1

Wonil laser Co., Ltd

157

0.37%

16

16

16

Pyung Hwa Industrial Co.,Ltd.

3,388

3.00%

85

85

85

PT. Kedap Saayq

671

10.00%

18,540

-

-

Set Holding (*2)

1,100,220

2.50%

229,255

166,863

166,863

PT. Cirebon Energi Prasarana

22,420

10.00%

2,612

2,596

2,596

Choheung packing Co.,Ltd.

61

0.13%

12

12

12

Jaewoo Co., Ltd.

359

0.24%

11

11

11

Wooyang HC Co., Ltd

1,375

0.01%

159

159

159

Sungsan Parts Co., Ltd.

629

0.80%

63

63

63

KMT Co., Ltd.

1,411

0.93%

21

21

21

TheYeonriji Co., Ltd.

116

0.10%

6

6

6

Flusys Co., Ltd.

9

0.08%

2

2

2

DongSeo Electronics Co., Ltd.

323

0.07%

16

16

16

Daewoo Display Co., Ltd.

177

0.03%

5

5

5

Yeong-gwang Remicon Co., Ltd.

15

0.12%

2

2

2

NTS Co., Ltd.

143

0.22%

36

36

36

54

2019

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Shares

Ownership

Acquisition cost

Book value

Fair value

AID CO., Ltd.

1,212

0.57%

36

36

36

Changwon Eco-friendly farming Corp.

3

0.01%

-

-

-

Kumo Hitech Co., Ltd.

6,697

0.53%

100

100

100

Kyung Pyo Industry Co., Ltd.

186

0.76%

19

19

19

Daedong Industry Co., Ltd.

617

0.55%

46

46

46

Doosung Heavy Industries Co., Ltd.

53

0.06%

5

5

5

Samjoo Hightech Co., Ltd.

522

0.08%

3

3

3

Samkwang Chemical Co., Ltd.

204

1.27%

51

51

51

SG Corp.

213

0.54%

21

21

21

Shinseung Chemical Industy Co., Ltd.

5

0.01%

60

60

60

KJ Alloy Co., Ltd.

368

0.20%

7

7

7

SM Hi-tech Co., Ltd.

22

0.39%

22

22

22

Keum Mun Industry Co., Ltd.

1,320

0.97%

330

56

56

Puruen Environment Co., Ltd.

967

1.34%

19

19

19

Miretech Co., Ltd.

9,111

0.27%

18

18

18

SIE Co., Ltd.

12

0.02%

1

1

1

Sejin Hightech Co., Ltd.

17,980

0.16%

18

18

18

Namcheong Corp.

7,096

0.28%

284

11

11

Eun Sung Enterprise Co.

1,131

0.72%

17

17

17

Dongdo Basalt Industry Co., Ltd.

182

1.50%

73

73

73

Shinyoung Textiles Co., Ltd.

523

1.01%

52

23

23

Bugook Cast Iron Co.

135

0.71%

14

14

14

Ilwoo Steel Co., Ltd.

41

0.28%

17

17

17

Dong-un Tech Co., Ltd.

1,159

6.28%

81

81

81

Wongwang Door Corp.

575

1.00%

29

29

29

Seobu Highway Solar Co., Ltd.

19,460

10.00%

192

192

192

Dongbu Highway Solar Co., Ltd.

19,020

4.99%

192

192

192

Muan sunshine solar power plant

298,300

19.00%

1,492

1,492

1,492

mansu Co.,Ltd.

344

0.25%

15

15

15

Eanskorea Co., Ltd.

39

0.05%

2

2

2

Youngdongseafood Co., Ltd.

165

0.33%

8

8

8

Hyunwoo Winstar Co., Ltd.

1

0.00%

-

-

-

Sehwa Diecasting Co., Ltd.

299

1.66%

44

44

44

Sungchang Tech Co., Ltd.

159

0.31%

10

10

10

Yuchang Industry Co., Ltd.

90

0.11%

5

5

5

Jeongpum Co., Ltd.

322

0.35%

16

16

16

Korea Steel Power Co., Ltd.

2,761

1.88%

55

55

55

DMC Co., Ltd.

5,831

0.02%

38

38

38

Amanex Co., Ltd.

10

0.02%

9

9

9

Dae-A Leisure Co., Ltd.

23

0.00%

4

4

4

Caffe Bene Co.,Ltd.

1,908

0.03%

2

2

2

Daechang HRSG Co.,Ltd.

618

0.12%

62

62

62

Shinjin International Corp.

4

0.01%

1

1

1

Daewoon Shell Tech Co., Ltd.

666

2.81%

33

33

33

Jinhung Packaging Co.,Ltd

4,329

3.02%

9

22

22

Donglim Eng Co., Ltd.

26

0.11%

3

3

3

SIP Co., Ltd.

274

0.55%

7

7

7

Clizen Co., Ltd.

615

0.34%

31

31

31

DAEDONGMILLENNIUM Co., Ltd.

159

0.42%

32

32

32

Daeji Product Co., Ltd.

15

0.05%

1

-

-

Cheong Hae Myeong Ga Co.,Ltd.

1,867

0.11%

5

5

5

55

2019

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2019 are as follows, continued:

In millions of won

Ownership

Shinhan Sangi Co., Ltd.

29

0.20%

Jaein Circuit Co., Ltd.

498

1.12%

SSET Co., Ltd.

181

0.30%

Sewon PM Tech Co., Ltd.

963

1.11%

Dawon Yuhwa Co., Ltd.

506

1.94%

Ogokbaekkwa Co., Ltd.

101

0.12%

Shinwonn Toptech Co., Ltd.

834

0.51%

KMLC Co., Ltd.

281

0.14%

Seinfood Co., Ltd.

13

0.17%

TaeSung Eco-Tech. Co., Ltd.

1,368

4.55%

Kukex Inc.

639

0.05%

Youngshin Plu Co., Ltd.

104

0.12%

Chang won Engineering Co., Ltd.

22

0.00%

Samsung Silup Co., Ltd.

47

0.19%

Samwon Bio Tech Co., Ltd.

390

0.25%

IZU KOREA Co., Ltd.

48

0.00%

Dongdo CNP Co., Ltd.

234

0.36%

Hando Precision Co.,Ltd

38

0.26%

Dae Bang Industry Co.,Ltd.

115

0.13%

S.I.T. Co.,Ltd

2,213

0.44%

Taejin Hiech Co., Ltd.

78

0.26%

Headone Co.,Ltd.

69

0.12%

Enaindustry Co., Ltd.

201

0.09%

TCT Co., Ltd.

3,277

0.55%

E-Won Solutech Co., Ltd.

158

0.16%

MJT Co., Ltd.

1,013

0.20%

KPL Circuit Co., Ltd.

283

0.08%

Road Solar Co., Ltd.

12

0.00%

Sung Ae Co., Ltd.

190

0.80%

Han Mi Flexible Co.,Ltd.

143

0.20%

Samhwa Casting Co., Ltd.

200

0.00%

Millennium PNT Co., Ltd.

227

0.37%

GN Chem Co., Ltd.

40

0.07%

GW Industry Co., Ltd.

505

0.07%

TM Construction Co., Ltd

4

0.00%

Dae Myung Co., Ltd

114

0.08%

Nanomicart Co., Ltd.

176

1.06%

Young San Heavy Industries Co., Ltd.

74

0.11%

Samchungwon Co., Ltd.

15

0.24%

Wooyang Frozen Foods Co., Ltd.

66

0.82%

Nanomic Co., Ltd.

94

0.63%

Dong Hwan Co., Ltd.

25

0.02%

Shares

4

65

18

48

25

1

83

22

7

34

3

5

4

5

6

2

6

4

6

22

3

7

141

82

40

51

14

-

10

43

100

6

1

51

-

3

35

7

2

27

38

1

266,717

W

626,056

2019

Acquisition cost

Book value

4

4

65

65

18

18

48

48

25

25

1

1

83

83

22

22

7

7

34

34

3

3

5

5

4

4

5

5

6

6

2

2

6

6

4

4

6

6

22

22

3

3

7

7

141

141

82

82

40

40

51

51

14

14

-

-

10

10

43

43

100

100

6

6

1

1

51

51

-

-

3

3

35

35

7

7

2

2

27

27

38

38

1

1

177,968

177,968

379,170

379,170

Fair value

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

  • (*2) The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss for the year ended December 31, 2019.

11. Financial Assets at Amortized Cost Financial assets at amortized cost as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

Financial assets at amortized cost

Government grants

Allowance for doubtful accountsOthers

Book valueGovernment bonds Others

W

1,422 - - - 1,422

13,000 - - - 13,000

W

14,422

-

-

-

14,422

Current Non-currentW

13,149 - - - 13,149

1,273 - - - 1,273

In millions of won

2019

Financial assets at amortized cost

Government grants

Allowance for doubtful accountsOthers

Book valueGovernment bonds Others

W

1,609 - - - 1,609

12,000 - - - 12,000

W

13,609

-

-

-

13,609

Current Non-currentW

12,302 - - - 12,302

1,307 - - - 1,307

12.

Derivatives

(1)

Derivatives as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

2019

Current

Non-current

Current

Non-currentDerivative assets Currency forward Currency swap Interest rate swap Others

W

18,332 11,193 - -

- 127,386

21 43,931

27,597 229,258

9,502 - 7,592

- - 2,634

W

29,525

136,888

27,618

283,415

Derivative liabilities Currency forward Currency swap Interest rate swap Others (*1, 2, 3)

W

10,014 36,088 3,782 -4,977 232,669 66,451 11,138

7,081

-59,327 45,184

451 50,756

6,205 956

W

49,884

315,235

73,064

96,896

  • (*1) As described in Note 47, the Group has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in 'Others'.

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

  • (*3) The Group has an obligation to buy the interests of financial investors regarding Hyundai Green Power Co., Ltd., and the fair value of this purchase obligation was recognized as derivative liabilities.

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:

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

Contract amountsCounterpartyContract dateMaturity date

Contract exchange ratePay

Receive

(in won)

  • Hana Bank 2014.04.10 2021.07.12

    W

    55,120

    USD 52,000

    W 1,060.00

  • Hana Bank 2014.04.28 2021.07.12

    50,784

    USD 48,000 1,058.00

  • Bank of America 2014.04.29 2021.07.12

    105,400

    USD 100,000 1,054.00

  • Hana Bank 2014.05.09 2021.07.12

    104,600

    USD 100,000 1,046.00

  • Hana Bank 2017.12.22 2021.07.12

    105,079

    USD 100,000 1,050.79

  • Korea Development Bank 2017.12.27 2021.07.12

    104,849

    USD 100,000 1,048.49

  • Shinhan Bank 2020.11.25 2021.01.29

    895

    USD 809 1,106.50

  • Woori Bank 2020.12.28 2021.01.28

    53,371

    USD 48,790 1,093.88

  • Shinhan Bank 2020.12.29 2021.01.25

    27,776

    USD 25,379 1,094.44

  • Shinhan Bank 2020.10.08 2021.01.04

    7,836

    USD 6,771 1,157.15

  • Shinhan Bank 2020.10.08 2021.01.05

    7,586

    USD 6,552 1,157.75

  • Shinhan Bank 2020.10.19 2021.01.18

    10,498

    USD 9,188 1,142.68

  • Shinhan Bank 2020.10.21 2021.01.19

    7,633

    USD 6,717 1,136.45

  • Shinhan Bank 2020.11.05 2021.02.02

    6,471

    USD 5,729 1,129.45

  • CCB 2020.11.30 2021.01.05

    5,522

    USD 5,000 1,104.45

  • Standard Chartered 2020.12.09 2021.01.14

    3,248

    USD 3,000 1,082.80

  • Mizuho Bank 2020.12.14 2021.01.20

    2,180

    USD 2,000 1,090.05

  • Hana Bank 2020.12.17 2021.01.25

    5,456

    USD 5,000 1,091.25

  • Korea Development Bank 2020.12.18 2021.01.28

    5,469

    USD 5,000 1,093.75

  • Woori Bank 2020.12.23 2021.02.02

    5,540

    USD 5,000 1,107.95

  • Hana Bank 2020.12.24 2021.02.08

    3,303

    USD 3,000 1,101.10

  • Morgan Stanley 2020.12.24 2021.02.09

    5,504

    USD 5,000 1,100.80

  • Standard Chartered 2020.12.28 2021.02.10

    3,296

    USD 3,000 1,098.50

  • Credit Agricole 2020.12.28 2021.02.15

    3,284

    USD 3,000 1,094.55

  • Nonghyup Bank 2020.12.29 2021.02.17

    6,572

    USD 6,000 1,095.30

  • Korea Development Bank 2020.12.30 2021.02.19

    5,436

    USD 5,000 1,087.16

  • Korea Development Bank 2020.12.15 2021.01.05

    1,092

    USD 1,000 1,092.10

    HSBC HSBC HSBC HSBC

  • 2020.12.23 2021.01.05

    3,881

    USD 3,500 1,108.85

  • 2020.12.24 2021.01.05

    3,306

    USD 3,000 1,101.95

  • 2020.12.24 2021.01.22

    1,651

    USD 1,500 1,100.80

  • 2020.12.29 2021.01.13

    14,210

    USD 13,000 1,093.10

  • Korea Development Bank 2020.12.29 2021.01.05

    6,791

    USD 6,200 1,095.35

  • Shinhan Bank 2020.12.30 2021.01.22

    9,249

    USD 8,500 1,088.10

  • MUFG 2020.12.29 2021.01.12

    4,380

    USD 4,000 1,095.05

  • BNP Paribas 2020.12.30 2021.01.19

    4,351

    USD 4,000 1,087.80

  • Nova Scotia 2020.09.18 2021.01.12

    46,700

    USD 40,000 1,167.50

  • Mizuho Bank 2020.09.18 2021.03.11

    15,177

    USD 13,000 1,167.45

  • HSBC 2020.09.18 2021.06.11

    31,506

    USD 27,000 1,166.90

  • HSBC 2020.10.19 2024.10.29

    140,913

    USD 125,000 1,127.30

  • Woori Bank 2020.12.03 2021.01.08

    1,461

    USD 1,330 1,098.70

  • Shinhan Bank 2020.12.04 2021.01.08

    9,775

    USD 9,000 1,086.15

  • Credit Agricole 2020.12.10 2021.01.08

    3,915

    USD 3,600 1,087.45

  • Standard Chartered 2020.12.17 2021.01.15

    4,044

    USD 3,700 1,093.10

  • Hana Bank 2020.12.23 2021.01.21

    3,321

    USD 3,000 1,107.15

  • Hana Bank 2020.12.24 2021.01.21

    5,504

    USD 5,000 1,100.70

  • Woori Bank 2020.12.28 2021.01.04

    19,076

    USD 17,400 1,096.30

  • Standard Chartered 2020.12.28 2021.01.15

    6,577

    USD 6,000 1,096.20

  • Shinhan Bank 2020.12.28 2021.01.29

    9,870

    USD 9,000 1,096.70

  • Credit Agricole 2020.12.30 2021.01.29

    4,915

    USD 4,500 1,092.30

  • Standard Chartered 2020.12.30 2021.01.29

    4,344

    USD 4,000 1,086.00

  • Woori Bank 2020.12.30 2021.02.05

8,691

USD 8,000 1,086.40

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:

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

Contract

exchange rateContract amounts

Contract interest rate

(in won, USD)

Counterparty

Contract year

Pay

Receive

Pay

Receive

Standard Chartered

2014~2029

W

102,470

USD 100,000

3.14%

3.57%

W

1,024.70

Societe Generale

2014~2024

105,017

USD 100,000

4.92%

5.13%

1,050.17

Hana Bank

2015~2024

107,970

USD 100,000

4.75%

5.13%

1,079.70

Credit Agricole

2015~2024

94,219

USD 86,920

4.85%

5.13%

1,083.97

Woori Bank

2019~2027

21,708

USD 19,417

5.04%

6.75%

1,118.00

Woori Bank

2019~2024

296,000

USD 250,000

1.21%

2.50%

1,184.00

Korea Development Bank

2019~2024

177,600

USD 150,000

1.24%

2.50%

1,184.00

Hana Bank

2019~2024

118,400

USD 100,000

1.24%

2.50%

1,184.00

Woori Bank

2020~2025

241,320

USD 200,000

0.54%

1.13%

1,206.60

Korea Development Bank

2020~2025

241,320

USD 200,000

0.54%

1.13%

1,206.60

Kookmin Bank

2020~2025

120,660

USD 100,000

0.54%

1.13%

1,206.60

Kookmin Bank

2020~2026

76,355

USD 70,445

5.83%

6.00%

1,083.90

Citibank

2012~2022

112,930

USD 100,000

2.79%

3.00%

1,129.30

JP Morgan

2012~2022

112,930

USD 100,000

2.79%

3.00%

1,129.30

Bank of America

2012~2022

112,930

USD 100,000

2.79%

3.00%

1,129.30

Shinhan Bank

2016~2022

112,930

USD 100,000

2.79%

3.00%

1,129.30

HSBC

2012~2022

111,770

USD 100,000

2.89%

3.00%

1,117.70

Hana Bank

2012~2022

111,770

USD 100,000

2.87%

3.00%

1,117.70

Standard Chartered

2012~2022

111,770

USD 100,000

2.89%

3.00%

1,117.70

Deutsche Bank

2012~2022

55,885

USD 50,000

2.79%

3.00%

1,117.70

Nomura

2015~2025

111,190

USD 100,000

2.60%

3.25%

1,111.90

Korea Development Bank

2015~2025

111,190

USD 100,000

2.62%

3.25%

1,111.90

Woori Bank

2015~2025

55,595

USD 50,000

2.62%

3.25%

1,111.90

Hana Bank

2015~2025

55,595

USD 50,000

2.62%

3.25%

1,111.90

Woori Bank

2017~2027

111,610

USD 100,000

2.25%

3.13%

1,116.10

Korea Development Bank

2017~2027

111,610

USD 100,000

2.31%

3.13%

1,116.10

Hana Bank

2017~2027

111,610

USD 100,000

2.31%

3.13%

1,116.10

Korea Development Bank

2018~2028

108,600

HKD 800,000

2.69%

3.35%

135.75

Shinhan Bank

2018~2028

115,387

HKD 850,000

2.66%

3.35%

135.75

Korea Development Bank

2018~2023

170,280

USD 150,000

2.15%

3.75%

1,135.20

Woori Bank

2018~2023

170,280

USD 150,000

2.18%

3.75%

1,135.20

Hana Bank

2018~2023

113,520

USD 100,000

2.17%

3.75%

1,135.20

Shinhan Bank

2018~2023

227,040

USD 200,000

2.17%

3.75%

1,135.20

Citibank

2019~2024

239,956

CHF 200,000

1.44%

0.00%

1,199.78

Korea Development Bank

2019~2027

119,978

CHF 100,000

1.43%

0.05%

1,199.78

HSBC

2019~2024

USD 205,500

AUD 300,000

3M Libor + 0.78%

3M BBSW + 0.97%

USD 0.69

59

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of December 31, 2020 are as follows:

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

Contract amounts

Contract interest rate

Contract exchange rate

Counterparty

Contract year

Pay

Receive

Pay

Receive

(in won)

Kookmin Bank

2020~2025

W

118,780

USD 100,000

1.29%

2.13%

W

1,187.80

Shinhan Bank

2020~2025

118,780

USD 100,000

1.29%

2.13%

1,187.80

Hana Bank

2020~2025

118,780

USD 100,000

1.29%

2.13%

1,187.80

Korea Development Bank

2020~2026

118,910

USD 100,000

0.61%

1.00%

1,189.10

Hana Bank

2020~2026

118,910

USD 100,000

0.61%

1.00%

1,189.10

Woori Bank

2020~2026

118,910

USD 100,000

0.62%

1.00%

1,189.10

Korea Development Bank

2016~2021

121,000

USD 100,000

2.15%

2.50%

1,210.00

Morgan Stanley

2016~2021

121,000

USD 100,000

3M Libor + 2.10%

2.50%

1,210.00

BNP Paribas

2016~2021

121,000

USD 100,000

3M Libor + 2.10%

2.50%

1,210.00

Nomura

2017~2037

52,457

EUR 40,000

2.60%

1.70%

1,311.42

Nomura

2017~2037

59,423

SEK 450,000

2.62%

2.36%

132.05

Korea Development Bank

2019~2022

112,650

USD 100,000

1.80%

3.38%

1,126.50

Kookmin Bank

2019~2022

112,650

USD 100,000

1.80%

3.38%

1,126.50

Woori Bank

2019~2022

112,650

USD 100,000

1.80%

3.38%

1,126.50

Korea Development Bank

2018~2023

320,880

USD 300,000

2.03%

3.75%

1,069.60

BNP Paribas

2019~2024

111,841

CHF 100,000

1.78%

0.13%

1,118.41

Kookmin Bank

2019~2024

111,841

CHF 100,000

1.78%

0.13%

1,118.41

Korea Development Bank

2019~2022

117,340

USD 100,000

1.06%

2.38%

1,173.40

Hana Bank

2019~2022

117,340

USD 100,000

1.06%

2.38%

1,173.40

Kookmin Bank

2019~2022

117,340

USD 100,000

1.06%

2.38%

1,173.40

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

60

  • 12. Derivatives, Continued

  • (5) Interest rate swap contracts which are not designated as hedging instruments as of December 31, 2020 are as follows:

  • (6) Interest rate swap contracts which are designated as hedging instruments as of December 31, 2020 are as follows:

    Contract year

    amount

    Pay

    Receive

    Hana Bank

    2017~2022

    W

    100,000

    2.01%

    3M CD + 0.24%

    Hana Bank

    2017~2022

    100,000

    2.06%

    3M CD + 0.27%

    Hana Bank

    2017~2021

    200,000

    2.45%

    3M CD + 0.32%

    Nomura (*)

    2018~2038

    30,000

    2.56%

    3.75%

    Hana Bank

    2018~2023

    200,000

    2.15%

    3M CD + 0.19%

    Hana Bank

    2018~2023

    200,000

    2.17%

    3M CD + 0.19%

    Hana Bank

    2018~2023

    150,000

    2.03%

    3M CD + 0.21%

    Hana Bank

    2019~2024

    200,000

    1.87%

    3M CD + 0.13%

    Societe Generale

    2017~2022

    200,000

    3M Libor + 3.44%

    3.77%

    Nomura

    2017~2032

    52,457

    3M Libor + 2.22%

    2.60%

    Nomura

    2017~2032

    59,423

    3M Libor + 2.24%

    2.62%

  • In millions of won and thousands of USD

    Contract interest rate per annum

    Contract

    Counterparty

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

  • In millions of won and thousands of USD

Contract interest rate per annum

Contract

Counterparty

Contract year

amount

Pay

Receive

Export-import bank of Korea

2015~2031

USD 15,893

2.67%

6M USD Libor

ING Bank

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2009~2027

USD 69,509

4.16%

6M USD Libor

KFW

2009~2027

USD 69,509

4.16%

6M USD Libor

Export-import bank of Korea

2016~2036

USD 75,929

3.00%

6M USD Libor

61

12. Derivatives, Continued

(7) Gains and losses on valuation and transaction of derivatives for the years ended December 31, 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

Net income effects of

Accumulated other

valuation gain (loss)

transaction gain (loss)

comprehensive income (loss) (*)

2020

2019

2020

2019

Currency forward

W

(40,590)

24,265

(17,911)

12,488

-

-

Currency swap

(406,607)

310,732

93,557

110,813

105,642

38,802

Interest rate swap

(1,845)

(16,231)

(10,253)

(36,886)

5,578

(3,075)

Other derivatives

(6,673)

(1,416)

-

-

-

-

W

(455,715)

317,350

65,393

86,415

111,220

35,727

2020

2019

(*) For the year ended December 31, 2020, the net gain on valuation of derivatives applying cash flow hedge accounting of

W64,561 million, net of tax, is included in other comprehensive income (loss).

  • 13. Other Financial Assets

  • (1) Other financial assets as of December 31, 2020 and 2019 are as follows:

    In millions of won

    2020

    Current

    Non-current

    Current

    2019

    Non-currentLoans

    Less: allowance for doubtful accounts Less: present value discount

    Long-term / short-term financial instruments

    W

    78,806

    (1)

    (842) 77,963

    1,483,482

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

    578,621

    64,111

    725,755

    (31) (15,063)

    (847) (35,218)

    63,233

    1,351,971

    675,474

    608,256

    W

    1,561,445

  • (2) Loans as of December 31, 2020 and 2019 are as follows:

In millions of wonShort-term loans Loans for tuition Loans for housing Fisheries loan Other loansLong-term loans Loans for tuition Loans for housing Loans for related parties Other loans

Face value

1,290,820

2020

Allowance for doubtful accounts

1,415,204

Present value discount

1,283,730

Book valueW

33,864

-

(842) 33,022

21,988 - - 21,988

3,816 - - 3,816

19,138 78,806

420,274

237,100

50,682

54,499

762,555

W

(1) - 19,137

(1)

(842)

77,963

(9,091)

(30,090) 381,093

- - 237,100

(1,047) - 49,635

(10,128) - 44,371

(20,266)

841,361

(30,090)

(20,267)

712,199

(30,932)

790,162

In millions of wonShort-term loans Loans for tuition Loans for housing Other loansLong-term loans Loans for tuition Loans for housing Loans for related parties Other loans

Face valueAllowance for doubtful accounts

2019

Present value discount

Book valueW

33,636

-

(847) 32,789

17,113 - - 17,113

13,362 64,111

(31) - 13,331

(31)

(847)

63,233

419,905

-

(35,197) 384,708

199,454 - - 199,454

89,132 17,264 725,755

W

789,866

(4,930) - 84,202

(10,133) (15,063)

(15,094)

(21) 7,110

(35,218)

(36,065)

675,474

738,707

13. Other Financial Assets, ContinuedChanges in the allowance for doubtful accounts of loans for the years ended December 31, 2020 and 2019 are as follows:

In millions of won

2020

2019

Beginning balance

Bad debt expense (reversal)

Ending balance

W

15,094 4,952

5,173 10,142

W

20,267 15,094

(4) Long-term and short-term financial instruments as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

Current

2019

Non-current

Current

Non-currentTime deposits CP

CD RP Others

W

996,265 -

50,000

203,008

234,209

160,433 - - - 418,188

1,034,971

40,000

15,000

40,000

222,000

257,857 - - - 350,399

W

1,483,482

578,621

1,351,971

608,256

14.

Inventories

Inventories as of December 31, 2020 and 2019 are as follows:

In millions of won

Acquisition cost

Raw materials MerchandisesW

3,602,073 234

Work-in-progress 148,067

Finished goods 42,070

Supplies

2,280,682

Inventories-in-transit 666,967

Other inventories 11,593

W

6,751,686

In millions of won

Acquisition costRaw materials Merchandises Work-in-progress Finished goods Supplies Inventories-in-transit Other inventoriesW

3,790,443

340

165,073

58,280

2,121,363

906,267

14,733

W

7,056,499

2020

Valuation allowance

Book value

(885)

3,601,188

-

234

-

148,067

-

42,070

(7,892)

2,272,790

-

666,967

-

11,593

(8,777)

6,742,909

Book value

3,789,013

340

165,073

58,280

2,116,994

906,267

14,733

7,050,700

2019

Valuation allowance

(1,430)

-

-

- (4,369)

-

-(5,799)

The reversal of the allowance for loss on inventory valuation due to increase in the net realizable value of inventory deducted from cost of sales for the years ended December 31, 2020 and 2019 were W2,020 million and W4,872 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the years ended December 31, 2020 and 2019 were W4,998 million and W3,127 million, respectively.

15. Non-financial Assets Non-financial assets as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

2019

Current

Non-current

Current

Non-currentAdvanced payments Prepaid expenses Others (*1)

W

169,737 216,073 634,348

32,693 140,730 72,969

147,784 2,694

308,017 84,421

750,576 79,814

W

1,020,158

246,392

1,206,377

166,929

(*1) Details of others as of December 31, 2020 and 2019 are as follows:

In millions of won

2020

2019

Current

Non-current

Current

Non-currentGreenhouse gas emissions rightsW

Other quick assets (*2)

357,355 276,993

- 72,969

437,562 313,014

- 79,814

W

634,348

72,969

750,576

79,814

(*2) The Group recognized an impairment loss of W49,201 million as it was determined that there is an objective evidence of impairment related to the rights of equity interest in Orano Expansion during the year ended December 31, 2019.

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of December 31, 2020 and 2019 are as follows:

Subsidiaries

Key operation activities

Percentage of ownership (%)Location

2020

2019

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.

(*1)

KEPCO Plant Service & Engineering Co., Ltd. KEPCO Nuclear Fuel Co., Ltd.

KEPCO KDN Co., Ltd.

KEPCO International HongKong Ltd. KEPCO International Philippines Inc. KEPCO Gansu International Ltd. KEPCO Philippines Holdings Inc. KEPCO Philippines Corporation

KEPCO Ilijan Corporation

KEPCO Lebanon SARL

KEPCO Neimenggu International Ltd. KEPCO Shanxi International Ltd. KOMIPO Global Pte Ltd. KEPCO Netherlands B.V.

KOREA Imouraren Uranium Investment Corp. KEPCO Australia Pty., Ltd.

KOSEP Australia Pty., Ltd. KOMIPO Australia Pty., Ltd. KOWEPO Australia Pty., Ltd. KOSPO Australia Pty., Ltd.

KEPCO Middle East Holding Company

Qatrana Electric Power Company

KHNP Canada Energy, Ltd. KEPCO Bylong Australia Pty., Ltd.

Korea Waterbury Uranium Limited Partnership 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 PT. Cirebon Power Service (*2) KOWEPO International Corporation KOSPO Jordan LLC

EWP Philippines Corporation EWP America Inc.

EWP Renewable Corporation DG Fairhaven Power, LLC (*7) DG Whitefield, LLC Springfield Power, LLC KNF Canada Energy Limited EWP Barbados 1 SRL California Power Holdings, LLC Gyeonggi Green Energy Co., Ltd. PT. Tanggamus Electric Power Gyeongju Wind Power Co., Ltd. KOMIPO America Inc.

EWPRC Biomass Holdings, LLC KOSEP USA, INC.

PT. EWP Indonesia

Power generation Power generation Power generation Power generation Power generation Power generation

Architectural engineering for utility plant and others

Utility plant maintenance and others Nuclear fuel

Electric power information technology and others Holding company Holding company Holding company Holding company Operation of utility plant Construction and operation of utility plant

Operation of utility plant Holding company Holding company Holding company Holding company Holding company Resources development Resources development Resources development Resources development Resources development Holding company

Construction and operation of utility plant

Holding company Resources development Resources development Holding company

Construction and operation of utility plant

Operation of utility plant Holding company Operation of utility plant Operation of utility plant Operation of utility plant Operation of utility plant Holding company Holding company Holding company Power generation

KOREA KOREA KOREA KOREA KOREA KOREA

KOREA

KOREA KOREA

KOREA

HONG KONG PHILIPPINES HONG KONG PHILIPPINES PHILIPPINES

PHILIPPINES

LEBANON HONG KONG HONG KONG SINGAPORE NETHERLANDS

FRANCE AUSTRALIA AUSTRALIA AUSTRALIA AUSTRALIA AUSTRALIA BAHRAIN

JORDAN

CANADA AUSTRALIA CANADA MEXICO

MEXICO

MEXICO NETHERLANDS

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

65.77% 65.77%

51.00% 51.00%

96.36% 96.36%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

51.00% 51.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

80.00% 80.00%

100.00% 100.00%

100.00% 100.00%

80.00% 80.00%

100.00% 100.00%

56.00% 56.00%

100.00% 100.00%

100.00% 100.00%

INDONESIA INDONESIA PHILIPPINES

51.00% 51.00%

27.50% 27.50%

99.99% 99.99%

JORDAN PHILIPPINES

100.00% 100.00%

- 100.00%

USA USA USA

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%Power generation USA - 100.00%

Power generation USA - 100.00%Holding company Holding company Power generation Power generation Power generation Power generation Holding company Holding company Power generation Holding company

CANADA BARBADOS

100.00% 100.00%

100.00% 100.00%

USA

100.00% 100.00%

KOREA INDONESIA

62.01% 62.01%

52.50% 52.50%

KOREA USA USA USA INDONESIA

70.00% 70.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

99.96% 99.96%

16. Consolidated Subsidiaries, ContinuedConsolidated subsidiaries as of December 31, 2020 and 2019 are as follows, continued:

Subsidiaries

KEPCO Netherlands J3 B.V.

Korea Offshore Wind Power Co., Ltd. Global One Pioneer B.V.

Global Energy Pioneer B.V. Mira Power Limited (*3) KOSEP Material Co., Ltd.

Commerce and Industry Energy Co., Ltd. (*4) KEPCO KPS Philippines Corp.

KOSPO Chile SpA

PT. KOWEPO Sumsel Operation And Maintenance

Services

Hee mang 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 KEPCO Energy Solution Co., Ltd. KEPCO Solar Co., Ltd.

(formerly, Solar School Plant Co., Ltd.) KOSPO Power Services Ltda.

Energy New Industry Specialized Investment

Private Investment Trust

KOEN Bylong Pty., Ltd. KOMIPO Bylong Pty., Ltd. KOWEPO Bylong Pty., Ltd. KOSPO Bylong Pty., Ltd. EWP Bylong Pty., Ltd. KOWEPO Lao International KEPCO US Inc.

KEPCO Alamosa LLC

KEPCO Solar of Alamosa, LLC

KEPCO Mangilao Holdings LLC (formerly, KEPCO-

LG CNS Mangilao Holdings LLC) (*5)

Mangilao Investment LLC

KEPCO Mangilao Solar, LLC (formerly, KEPCO-LG

CNS Mangilao Solar, LLC)

Jeju Hanlim Offshore Wind Co., Ltd.

PT. Siborpa Eco Power

BSK E-New Industry Fund VII e-New Industry LB Fund 1 Songhyun e-New Industry Fund BSK E-New Industry Fund X 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.

Key operation activities

Holding company

Power generation Holding company Holding company Power generation Recycling fly ashes Power generation

Utility plant maintenance and others Holding company

Utility plant maintenance and others

Operation of utility plant

Operation of utility plant Operation of utility plant

Holding company

Power generation Energy service

Power generation

Utility plant maintenance and others Holding company

Resources development Resources development Resources development Resources development Resources development

Utility plant maintenance and others Holding company

Holding company Power generation

Holding company Holding company Power generation

Power generation

Construction and operation of utility plant

Holding company Holding company Holding company Holding company

Utility plant maintenance and others Utility plant maintenance and others Holding company

Holding company Power generation

Facility maintenance and service Facility maintenance and service Facility maintenance and service Facility maintenance and service Facility maintenance and service Utility plant maintenance and others Facility maintenance

Holding company Holding company Power generation

Electric meter reading and others Security service and others Facility maintenance

LocationNETHERLANDS

KOREA NETHERLANDS NETHERLANDSPercentage of ownership (%)

2020

2019

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

PAKISTAN

76.00% 76.00%

KOREA

86.22% 86.22%

KOREA PHILIPPINES

85.03% 85.03%

99.99% 99.99%

CHILE

100.00% 100.00%

INDONESIA

95.00% 95.00%

KOREA JORDAN KOREA

100.00% 100.00%

100.00% 100.00%

50.00% 50.00%

KOREA

96.67% 96.67%

JAPAN KOREA

80.10% 80.10%

100.00% 100.00%

KOREA CHILE KOREA

100.00% 100.00%

65.00% 65.00%

99.01% 99.01%

AUSTRALIA AUSTRALIA AUSTRALIA AUSTRALIA AUSTRALIA

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

LAOS USA USA USA

100.00% 100.00%

100.00% 100.00%

50.10% 50.10%

100.00% 100.00%

USA USA USA KOREA INDONESIA

100.00% 70.00%

100.00% 100.00%

100.00% 100.00%

75.99% 75.99%

55.00% 55.00%

KOREA KOREA KOREA KOREA INDONESIA

81.67% 81.67%

76.11% 76.11%

80.65% 80.65%

66.80%

-95.00% 95.00%

CHILE USA USA

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

KOREA KOREA KOREA KOREA KOREA KOREA INDONESIA

60.00% 60.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

95.00% 95.00%

KOREA USA USA

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

KOREA KOREA KOREA KOREA

63.00% 63.00%

100.00% 100.00%

100.00% 100.00%

100.00% 100.00%

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of December 31, 2020 and 2019 are as follows, continued:

Percentage of ownership (%)

Key operation activities

Location

2020

2019

Secutec Co., Ltd.

Security service

KOREA

100.00%

100.00%

SE Green Energy Co., Ltd.

Power generation

KOREA

84.80%

84.80%

KEPCO Mangilao America LLC (*6)

Holding company

USA

100.00%

100.00%

Mangilao Intermediate Holdings LLC

Holding company

USA

100.00%

100.00%

KEPCO CSC Co., Ltd.

Facility maintenance and service

KOREA

100.00%

100.00%

KOAK Power Limited

Facility maintenance

PAKISTAN

100.00%

100.00%

KOMIPO Europe B.V.

Holding company

NETHERLANDS

100.00%

100.00%

Haenanum Energy Fund

Holding company

KOREA

99.64%

99.64%

Paju Ecoenergy Co., Ltd.

Power generation

KOREA

89.00%

89.00%

Guam Ukudu Power LLC

Power generation

USA

100.00%

-

TS Energy No. 25 Co., Ltd.

Power generation

KOREA

90.00%

-

KPS Partners Co., Ltd.

Facility maintenance and service

KOREA

100.00%

-

KEPCO E&C Service Co., Ltd.

Facility maintenance and service

KOREA

100.00%

-

Moha Solar Co., Ltd.

Power generation

KOREA

100.00%

-

Ogiri Solar Power Co., Ltd.

Power generation

KOREA

70.00%

-

KHNP USA LLC

Holding company

USA

100.00%

-

KOMIPO Vanphong Power Service LLC

Utility plant maintenance and others

VIETNAM

100.00%

-

Energy Innovation Fund I

Holding company

KOREA

71.91%

-

Subsidiaries

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

  • (*2) The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group obtained the majority of the voting power through the shareholders' agreement.

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

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

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

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

  • (*7) As 100% of the shares held were sold after the end of the reporting period, the assets of DG Fairhaven Power, LLC were classified as assets held-for-sale.

16. Consolidated Subsidiaries, Continued

(2) Subsidiaries newly included in and excluded from consolidation for the year ended December 31, 2020 are as follows :

Reason

Guam Ukudu Power LLC

Newly established

TS Energy No. 25 Co., Ltd.

New investment

KPS Partners Co., Ltd.

Newly established

KEPCO E&C Service Co., Ltd.

Newly established

Moha Solar Co., Ltd.

New investment

Ogiri Solar Power Co., Ltd.

Newly established

KHNP USA LLC

Newly established

KOMIPO Vanphong Power Service LLC

Newly established

Energy Innovation Fund I

Additional acquisition

BSK E-New Industry Fund X

Newly established

Subsidiaries

Subsidiaries

Reason

EWP Philippines Corporation

Liquidation

DG Whitefield, LLC

Sale of shares

Springfield Power, LLC

Sale of shares

16.

Consolidated Subsidiaries, ContinuedSummary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows:

In millions of won 2020

Total

Total

Profit (loss)

Subsidiaries

assets

liabilities

Sales

for the period

Korea Hydro & Nuclear Power Co., Ltd.

W

61,859,753

35,652,467

9,938,941

647,641

Korea South-East Power Co., Ltd.

10,858,645

5,954,129

4,258,904

(139,149)

Korea Midland Power Co., Ltd.

13,028,436

9,357,603

4,293,364

(29,880)

Korea Western Power Co., Ltd.

10,357,023

6,594,779

3,605,986

(108,953)

Korea Southern Power Co., Ltd.

10,658,015

6,411,524

4,015,941

(17,588)

Korea East-West Power Co., Ltd.

9,619,485

4,974,645

4,155,416

(65,427)

KEPCO Engineering & Construction Company, Inc.

699,244

200,169

431,723

20,160

KEPCO Plant Service & Engineering Co., Ltd.

1,345,857

296,515

1,299,186

85,916

KEPCO Nuclear Fuel Co., Ltd.

798,368

390,155

331,228

14,542

KEPCO KDN Co., Ltd.

647,496

174,192

641,308

45,207

KEPCO International HongKong Ltd.

120,213

-

-

1,571

KEPCO International Philippines Inc.

133,215

366

-

35,182

KEPCO Gansu International Ltd.

7,753

512

-

(19)

KEPCO Philippines Holdings Inc.

187,375

127

-

65,792

KEPCO Philippines Corporation

6,173

17

-

(187)

KEPCO Ilijan Corporation

322,066

47,234

81,400

39,443

KEPCO Lebanon SARL

1,669

9,195

-

(59)

KEPCO Neimenggu International Ltd.

213,444

2,492

-

26,593

KEPCO Shanxi International Ltd.

508,363

196,408

-

2,278

KOMIPO Global Pte Ltd.

263,378

656

-

12,460

KEPCO Netherlands B.V.

117,449

71

-

14,503

KOREA Imouraren Uranium Investment Corp.

13,955

123

-

(675)

KEPCO Australia Pty., Ltd.

451

17

-

71

KOSEP Australia Pty., Ltd.

34,249

3,500

14,327

2,150

KOMIPO Australia Pty., Ltd.

45,250

3,782

14,327

2,685

KOWEPO Australia Pty., Ltd.

44,270

2,909

14,327

1,663

KOSPO Australia Pty., Ltd.

38,341

2,750

14,327

2,242

KEPCO Middle East Holding Company

90,601

78,553

-

(1,539)

Qatrana Electric Power Company

464,507

287,859

21,279

24,717

KHNP Canada Energy, Ltd.

63,794

26

-

(7)

KEPCO Bylong Australia Pty., Ltd.

44,691

349,542

-

16,897

Korea Waterbury Uranium Limited Partnership

20,908

165

-

(76)

KEPCO Holdings de Mexico

148

27

-

(14)

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

531,367

410,743

65,695

37,899

KEPCO Energy Service Company

2,255

994

5,880

507

KEPCO Netherlands S3 B.V.

44,042

54

-

2,833

PT. KOMIPO Pembangkitan Jawa Bali

12,946

3,298

20,306

4,775

PT. Cirebon Power Service

1,825

550

8,642

344

KOWEPO International Corporation

-

10

-

-

KOSPO Jordan LLC

31,620

15,654

9,356

1,570

EWP America Inc. (*1)

37,681

2,683

14,312

(14,327)

KNF Canada Energy Limited

1,871

22

-

(50)

EWP Barbados 1 SRL

313,409

1,170

2,950

44,729

Gyeonggi Green Energy Co., Ltd.

265,768

240,366

64,660

(9,968)

PT. Tanggamus Electric Power

217,730

184,057

3,491

11,942

Gyeongju Wind Power Co., Ltd.

105,726

68,629

13,939

2,108

KOMIPO America Inc.

105,926

918

342

(1,783)

KOSEP USA, Inc.

1

4,837

-

-

PT. EWP Indonesia

33,900

1,125

-

7,083

KEPCO Netherlands J3 B.V.

138,824

84

-

28,242

Korea Offshore Wind Power Co., Ltd.

354,643

187,576

26,838

98

Global One Pioneer B.V.

177

60

-

(76)

Global Energy Pioneer B.V.

338

64

-

(70)

Mira Power Limited

348,737

266,565

31,172

(2,960)

KOSEP Material Co., Ltd.

2,312

429

3,457

189

Commerce and Industry Energy Co., Ltd.

89,681

41,384

31,603

1,623

KEPCO KPS Philippines Corp.

3,119

284

5,151

158

71

16.

Consolidated Subsidiaries, ContinuedSummary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows, continued:

In millions of won 2020

Total

Total

Profit (loss)

assets

liabilities

for the period

KOSPO Chile SpA

W

128,795

48,813

-

(542)

PT. KOWEPO Sumsel Operation And Maintenance

Services

108

241

-

(15)

Hee mang sunlight Power Co., Ltd.

7,261

4,339

423

(142)

Fujeij Wind Power Company

194,844

174,051

-

13,720

KOSPO Youngnam Power Co., Ltd.

389,071

294,408

254,966

3,405

VI Carbon Professional Private Special Asset Investment

Trust 1

3,006

4

-

7

Chitose Solar Power Plant LLC

133,643

118,783

17,073

1,521

KEPCO Energy Solution Co., Ltd.

313,754

4,093

5,585

3,656

KEPCO Soalr Co., Ltd.

(formerly, Solar School Plant Co., Ltd.)

230,443

23,098

3,933

1,888

KOSPO Power Services Ltda.

4,354

1,644

10,846

1,011

Energy New Industry Specialized Investment Private

Investment Trust (*2)

279,489

24,173

23,682

8,248

KOEN Bylong Pty., Ltd.

6

75

-

(11)

KOMIPO Bylong Pty., Ltd.

7

76

-

(11)

KOWEPO Bylong Pty., Ltd.

6

64

-

-

KOSPO Bylong Pty., Ltd.

153

213

-

(2)

EWP Bylong Pty., Ltd.

6

35

-

28

KOWEPO Lao International

8,982

392

8,466

4,706

KEPCO US Inc.

16,154

-

-

(21)

KEPCO Alamosa LLC

31,353

270

127

(237)

KEPCO Solar of Alamosa, LLC

68,336

42,910

9,096

(2,052)

KEPCO Mangilao Holdings LLC (formerly, KEPCO-LG CNS

Mangilao Holdings LLC)

25,785

28,924

-

(502)

Mangilao Investment LLC

38,090

14

-

(15)

KEPCO Mangilao Solar, LLC (formerly, KEPCO-LG CNS

Mangilao Solar, LLC)

69,830

34,029

-

(253)

Jeju Hanlim Offshore Wind Co., Ltd.

20,525

9,805

-

(3,049)

PT. Siborpa Eco Power

10,491

14

-

(361)

PT. Korea Energy Indonesia

1,746

196

2,428

190

KOLAT SpA

31,109

425

243

(216)

KEPCO California, LLC

41,973

4,683

-

(1,330)

KEPCO Mojave Holdings, LLC

95,326

67,138

-

(4,358)

Incheon Fuel Cell Co., Ltd.

192,184

170,976

-

(979)

KOEN Service Co., Ltd.

6,239

5,598

32,150

129

KOMIPO Service Co., Ltd.

3,381

3,649

28,596

(479)

KOWEPO Service Co., Ltd.

6,045

4,849

29,559

726

KOSPO Service Co., Ltd.

5,617

4,708

25,103

832

EWP Service Co., Ltd.

4,568

4,074

23,223

(15)

PT. KOMIPO Energy Indonesia

2,473

154

2,391

52

KNF Partners Co., Ltd.

1,470

743

5,487

256

KOSPO USA Inc.

120,380

266

-

(1,611)

Nambu USA LLC

42,739

-

-

544

Tamra Offshore Wind Power Co., Ltd.

150,957

112,184

22,200

4,575

KEPCO MCS Co., Ltd.

59,227

36,786

342,053

19,190

KEPCO FMS Co., Ltd.

14,390

12,585

89,228

837

Firstkeepers Co., Ltd.

13,981

12,234

68,538

2,994

Secutec Co., Ltd.

11,473

9,771

62,256

1,609

SE Green Energy Co., Ltd.

152,205

122,606

19,731

2,463

KEPCO Mangilao America LLC

1,793

-

-

-

Mangilao Intermediate Holdings LLC

100,609

80,210

-

(3,708)

KEPCO CSC Co., Ltd.

8,817

5,551

38,465

2,479

KOAK Power Limited

15,864

1,118

-

607

KOMIPO Europe B.V.

43,198

46

333

(386)

Haenanum Energy Fund

28,219

132

128

(13)

72

Subsidiaries

Sales

16. Consolidated Subsidiaries, Continued

Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows, continued:

In millions of won 2020

Total

Total

Profit (loss)

Subsidiaries

assets

liabilities

Sales

for the period

Paju Ecoenergy Co., Ltd.

W

57,320

3,506

3,069

247

Guam Ukudu Power LLC

3,165

3,589

-

(1,577)

TS Energy No. 25 Co., Ltd.

184,667

142,709

-

(3,779)

KPS Partners Co., Ltd.

2,139

1,127

3,562

313

KEPCO E&C Service Co., Ltd.

2,514

1,549

4,989

464

Moha Solar Co., Ltd.

7,390

7,809

-

(364)

Ogiri Solar Power Co., Ltd.

1,032

-

-

-

KHNP USA LLC

464

23

229

119

KOMIPO Vanphong Power Service LLC

1,727

12

-

(34)

Energy Innovation Fund I

8,412

1

25

(201)

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

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

16.

Consolidated Subsidiaries, ContinuedSummary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows, continued:

In millions of won 2019

Total

Total

Profit (loss)

Subsidiaries

assets

liabilities

Sales

for the year

Korea Hydro & Nuclear Power Co., Ltd.

W

59,570,219

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, S.A.P.I. de C.V.

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

74

16.

Consolidated Subsidiaries, ContinuedSummary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows, continued:

In millions of won 2019

Total

Profit (loss)

Subsidiaries

assets

for the peirod

KEPCO Netherlands J3 B.V.

W

120,006

74

-

(79)

Korea Offshore Wind Power Co., Ltd.

284,495

117,527

-

(12,768)

Global One Pioneer B.V.

180

73

-

(86)

Global Energy Pioneer B.V.

348

80

-

(90)

Mira Power Limited

356,111

285,577

-

(971)

KOSEP Material Co., Ltd.

2,788

1,186

3,357

22

Commerce and Industry Energy Co., Ltd.

90,637

43,985

32,728

(7,532)

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)

Hee mang sunlight Power Co., Ltd.

12,185

8,545

643

75

Fujeij Wind Power Company

218,333

196,964

-

5,515

KOSPO Youngnaem 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

KEPCO Solar Co., Ltd.

(formerly, Solar School Plant Co., Ltd.)

208,730

3,269

1,962

2,553

KOSPO Power Services Ltda.

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

75

Total liabilities

Sales

  • 16. Consolidated Subsidiaries, Continued

  • (3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2019 are as follows, continued:

    In millions of won 2019

    Subsidiaries

    KEPCO Mangilao America LLC

    W

    -

    -

    -

    -

    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

    -

    -

    -

    Total

    Total

    Profit (loss)

    assets

    liabilities

    Sales

    for the period

    • (*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 December 31, 2020 are as follows:

Company

Nature and extent of any significant restrictionsGyeonggi Green Energy Co., Ltd.

KOSPO Youngnam Power Co., Ltd.

Incheon Fuel Cell Co., Ltd.

Gyeongju Wind Power Co., Ltd.

Acquisition or disposal of assets of more than W35 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors. 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. Acquisition or disposal of assets of more than W20 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors. 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. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.

(5)

As of December 31, 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.

16.

Consolidated Subsidiaries, ContinuedDetails of non-controlling interests prior to intra-group eliminations as of and for the years ended December 31, 2020 and 2019 are as follows:

In millions of won 2020

DescriptionPercentage of ownership Current assets

KEPCO Ilijan Corporation

49.00%

W 236,602

Non-current assets 85,464

Current liabilities (12,322)

Non-current liabilities (34,912)

Net assets 274,832

Book value of non-controlling interests 134,668

Sales 81,400

Profit for the period 39,443 Profit for the period attributable to

non-controlling interests 19,327

Cash flows from operating activities 121,835

Cash flows from investing activities 7,561 Cash flows from financing activities before dividends to non-controlling

interests (31,793)

Dividends to non-controlling interests (30,319)

Effect of exchange rate fluctuation (8,153) Net increase (decrease) of cash and cash

equivalentsIn millions of wonDescriptionPercentage of ownership Current assets Non-current assets Current liabilities Non-current liabilities Net assets

Book value of non-controlling interests Sales

Profit (loss) for the year

Profit (loss) for the year attributable to non-controlling interests

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

Dividends to non-controlling interests Effect of exchange rate fluctuation

Net increase (decrease) of cash and cash equivalents

59,131

KEPCO Ilijan CorporationW

173,931 779,764

197,446 577,219

(11,990) (247,737)

(44,166) (47,020)

315,221 154,458 95,072

101,707 164,373

(68,678) (44,332)

(48,750) (39,466)

49.00%

40,818 157,737

20,001 77,291

(9,152)

4,458 (89,159)

2,111

KEPCO Plant

KEPCO

Service &

Engineering &

Engineering

Construction

Co., Ltd.

Company, Inc.

Others

Total

49.00%

33.92%

755,454

235,805

801,813

2,029,674

590,403

463,439

3,499,258

4,638,564

(254,495)

(186,296)

(414,673)

(867,786)

(42,020)

(13,873)

(2,511,848)

(2,602,653)

1,049,342

499,075

1,374,550

3,197,799

514,177

169,286

552,035

1,370,166

1,299,186

431,723

956,692

2,769,001

85,916

20,160

107,661

253,180

42,099

6,838

32,858

101,122

74,159

15,225

240,987

452,206

26,748

(34,333)

(661,820)

(661,844)

(47,809)

(9,165)

371,448

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