Form 6-K

Classification

Number of meetings

Number of agendas

Resolutions

Reports

6-K 1 d403757d6k.htm FORM 6-K Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

the Securities Exchange Act of 1934

For the Month of December 2022

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

Form 20-F ☒ Form 40-F ☐

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

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

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

Yes ☐ No ☒

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

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

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2022 to September 30, 2022)

THIS IS A SUMMARY IN ENGLISH OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE FINANCIAL SERVICES COMMISSION OF KOREA.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS. NON-MATERIAL OR PREVIOUSLY DISCLOSED INFORMATION IS OMITTED OR ABRIDGED.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

I.	Company Overview

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

2.	Information of the company

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

(Phone number) 82-61-345-4213

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

3.	Major businesses

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

•

development of electric power resources;

•

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

•

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

•

overseas business related to the businesses mentioned above;

•

investment or contributions related to the businesses mentioned above;

•

development and operation of certain real estate holdings; and

•

other businesses entrusted by the government.

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

4.	Consolidated subsidiaries


	(As of September 30, 2022)

Listed	Unlisted	Total
2	157	159

5.	Major changes in management

On January 27, 2022, Mr. Park, Jong-Bae, whose term of office expired, was reappointed as a non-standing director for a term of a year beginning on January 31, 2022.

On June 9, 2022, a non-standing director Mr. Seong, Si-Heon’s term of office expired.

On August 17, 2022, a non-standing director Mr. Hwang, Cheol-Ho resigned from his position.

On August 18, 2022, Mr. Kim, Jong-Woon was appointed as a non-standing director for a term of two years.

6.	Changes in major shareholders

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

7.	Information regarding KEPCO shares

Issued share capital: Won 3.2 trillion (Authorized capital: Won 6 trillion)

Total number of issued shares: 641,964,077

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

Dividends: KEPCO did not pay any dividend for fiscal year 2021. Dividend payments for fiscal year 2020 was Won 1,216 per share and Won 780.6 billion as a total.

II.

Business Overview

1.	Consolidated financial results by segment for a nine-month period ended September 30, 2021 and 2022


	(In billions of Won)

	January to September 2021⁽¹⁾				January to September 2022
	Sales		Operating profit		Sales		Operating profit
Electricity sales		44,377		-3,244		50,119		-23,948
Nuclear generation		7,301		1,101		7,885		1,164
Thermal generation		18,400		676		29,850		804
Plant maintenance & engineering service		1,848		168		2,096		148
Others⁽²⁾		1,437		154		1,895		237
Subtotal		73,363		-1,145		91,845		-21,595
Adjustment for related- party transactions		-28,216		21		-40,080		-239

Total		45,147		-1,124		51,765		-21,834

Note:

(1)	The figures for the first nine months period ended September 30, 2021 were changed from the Form 6-K dated December 9, 2021 due to the amendment of K-IFRS 1016, effective since January 1, 2022.

(2)	Others relate to business areas including overseas businesses, etc..

2.	Changes in unit prices of major products


					(In Won per kWh)

Business sector		Company	January to September 2021		January to September 2022
Electricity sold	Residential	KEPCO		109.10		119.30
	Commercial			128.89		135.99
	Educational			101.98		109.31
	Industrial			104.45		113.22
	Agricultural			45.41		53.96
	Street lighting			114.20		123.48
	Overnight usage			64.57		70.41
Electricity from nuclear generation	Nuclear Generation	KHNP		62.99		59.26
Electricity from thermal generation	Thermal generation	KOSEP		98.17		164.70
		KOMIPO		91.49		177.93
		KOWEPO		102.63		174.03
		KOSPO		106.60		178.30
		EWP		105.92		178.36

3.	Power purchase from generation companies for a nine-month period ended September 30, 2022


Company	Volume (GWh)		Expense (In billions of Won)
KHNP		129,666		7,696
KOSEP		31,945		5,119
KOMIPO		33,994		5,951
KOWEPO		30,170		5,241
KOSPO		37,971		6,751
EWP		27,554		4,884
Others		138,012		27,857

Total		429,312		63,499

4.	Intellectual property as of September 30, 2022


	Patents		Utility models		Designs		Trademarks		Total
KEPCO		2,753		16		111		72		2,952
Generation subsidiaries		3,319		73		83		239		3,714

Total		6,072		89		194		311		6,666

III.

Financial Information

1.	Condensed consolidated financial results as of and for a nine-month period September 30, 2021 and 2022


					(In billions of Won)
Consolidated statements of comprehensive income				Consolidated statements of financial position
	January to September 2021⁽¹⁾	January to September 2022	Change		December 31, 2021	September 30, 2022	Change
Sales	45,147	51,765	6,618	Total assets	211,115	228,205	17,090
Operating profit (loss)	-1,124	-21,834	-20,710	Total liabilities	145,797	177,784	31,987
Net income (loss)	-1,575	-16,646	-15,071	Total equity	65,318	50,421	-14,897

Note:

(1)	The figures for a nine-month period ended September 30, 2021 were changed from the Form 6-K dated December 9, 2021 due to the amendment of K-IFRS 1016, effective since January 1, 2022.

2.	Condensed separate financial results as of and for a nine-month period September 30, 2021 and 2022


					(In billions of Won)
Separate statements of comprehensive income				Separate statements of financial position
	January to September 2021	January to September 2022	Change		December 31, 2021	September 30, 2022	Change
Sales	44,377	50,119	5,742	Total assets	115,579	125,803	10,224
Operating profit (loss)	-3,244	-23,948	-20,704	Total liabilities	68,532	95,910	27,378
Net income (loss)	-2,233	-17,387	-15,154	Total equity	47,047	29,892	-17,155

IV.

Board of Directors (KEPCO Only)

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

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

2. Board meetings and agenda for a nine-month period ended September 30, 2022

*	The audit committee held 9 meetings with 38 agenda (of which, 24 were approved as proposed and 14 were accepted as reported).

3. Major activities of the Board of Directors


Date	Agenda	Results	Type
January 26, 2022	Approval of the safety management plan of 2022	Approved as proposed	Resolution
January 26, 2022	Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.	Approved as proposed	Resolution

February 24, 2022	Approval to call for the annual general meeting of shareholders for the fiscal year 2021	Approved as proposed	Resolution
February 24, 2022	Approval of consolidated and separate financial statements for the fiscal year 2021	Approved as proposed	Resolution

	Approval of the maximum aggregate amount of remuneration for directors in 2022	Approved as proposed	Resolution

	Report on internal control over financial reporting for the fiscal year 2021	Accepted as reported	Report

	Report on the evaluation of internal control over financial reporting for the fiscal year 2021	Accepted as reported	Report

	Report on audit results for 2021	Accepted as reported	Report

	Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)	Accepted as reported	Report

March 18, 2022	Approval of establishment of research-based spin-off companies of KEPCO	Approved as proposed	Resolution
	Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States	Approved as proposed	Resolution
	Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu	Approved as proposed	Resolution

April 8, 2022	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director	Approved as proposed	Resolution
	Approval of amendments to the Regulation for Employee Remuneration and Welfare	Approved as proposed	Resolution


June 24, 2022	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director	Approved as proposed	Resolution

	Approval of the mid-to-long term financial management plan (2022-2026)	Approved as proposed	Resolution

	Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.	Approved as proposed	Resolution

	Report on audit results for the first quarter of 2022	Accepted as reported	Report

June 27, 2022	Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation	Approved as proposed	Resolution

July 15, 2022	Approval of the additional contribution to Korea Institute of Energy Technology	Approved as proposed	Resolution

	Approval of provision of debt guarantee for the HVDC-VSC subsea transmission system construction and operation project in UAE	Approved as proposed	Resolution

	Approval to consign contract administration regarding construction works to Public Procurement Service	Approved as proposed	Resolution

August 19, 2022	Approval of amendments to the Articles of Incorporation	Approved as proposed	Resolution

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

	Approval of changing composition of Director Nomination Committee for the candidates of non-standing director	Approved as proposed	Resolution

	Approval of establishment of and contribution to a special purpose company for construction and operation of Jafurah combined heat and power plant in Saudi Arabia	Approved as proposed	Resolution

	Report on financial statements for the first half of 2022	Accepted as reported	Report

September 15, 2022	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director as the employee representative	Approved as proposed	Resolution

	Approval of forming Director Nomination Committee and evaluation standards for the candidates of a standing director and member of the Audit Committee	Approved as proposed	Resolution

	Approval to appoint members of the ESG Committee	Approved as proposed	Resolution

	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2022	Approved as proposed	Resolution

September 30, 2022	Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation	Approved as proposed	Resolution

4. Attendance Status of Non-standing directors

Date

Agenda

Seong,
Si-

Heon

Park,
Jong-

Bae

Bang,
Su-
Ran

Park,
Hyo-

Sung

Lee,
Kee-

Man

Hwang,
Cheol-
Ho

Lee,
Kye-

Sung

Kim,
Jae-
Shin

Kim,

Jong-

Woon

January 26, 2022

Approval of the safety management plan of 2022

For

Before Appointment

Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.

For

Before Appointment

February 24, 2022

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

For

Before Appointment

Approval of consolidated and separate financial statements for the fiscal year 2021

For

Before Appointment

Approval of the maximum aggregate amount of remuneration for directors in 2022

For

Before Appointment

Report on internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on audit results for 2021

Agenda for Report

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)

Agenda for Report

March 18, 2022

Approval of establishment of research-based spin-off companies of KEPCO

For

Before Appointment

Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States

For

Before Appointment

Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu

For

Before Appointment

April 8, 2022

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

For

Before Appointment

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

Before Appointment

June 24, 2022

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

For

Before Appointment

Approval of the mid-to-long term financial management plan (2022-2026)

For

Before Appointment

Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.

For

Before Appointment

Report on audit results for the first quarter of 2022

Agenda for Report

June 27, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

Before Appointment

July 15, 2022

Approval of the additional contribution to Korea Institute of Energy Technology

For

Absent

For

Before Appointment

Approval of provision of debt guarantee for the HVDC-VSC subsea transmission system construction and operation project in UAE

For

Absent

For

Before Appointment

Approval to consign contract administration regarding construction works to Public Procurement Service

For

Absent

For

Before Appointment

August 19, 2022

Approval of amendments to the Articles of Incorporation

For

Retired

For

Before Appointment

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

For

Retired

For

Before Appointment

Approval of changing composition of Director Nomination Committee for the candidates of non-standing director

For

Retired

For

Before Appointment

Approval of establishment of and contribution to a special purpose company for construction and operation of Jafurah combined heat and power plant in Saudi Arabia

For

Retired

For

Before Appointment

Report on financial statements for the first half of 2022

Agenda for Report

September 15, 2022

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

Retired

For

Retired

For

Approval of forming Director Nomination Committee and evaluation standards for the candidates of a standing director and member of the Audit Committee

Retired

For

Retired

For

Approval to appoint members of the ESG Committee

Retired

For

Retired

For

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2022

Retired

For

Retired

For

September 30, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

Retired

For

Retired

For

Attendance Rate

100%

90%

100%

5. Attendance Status of Standing directors

Date

Agenda

Cheong,
Seung-

Choi,
Young-

Lee,
Heyn-

Bin

Lee,
Jong-
Hwan

Park,
Heon-

Gyu

Kim,
Tae-

Lee,
Heung-

Joo

January 26, 2022

Approval of the safety management plan of 2022

For

Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.

For

February 24, 2022

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

For

Approval of consolidated and separate financial statements for the fiscal year 2021

For

Approval of the maximum aggregate amount of remuneration for directors in 2022

For

Report on internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on audit results for 2021

Agenda for Report

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)

Agenda for Report

March 18, 2022

Approval of establishment of research-based spin-off companies of KEPCO

For

Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States

For

Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu

For

April 8, 2022

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

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

June 24, 2022

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

For

Approval of the mid-to-long term financial management plan (2022-2026)

For

Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.

For

Report on audit results for the first quarter of 2022

Agenda for Report

June 27, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

July 15, 2022

Approval of the additional contribution to Korea Institute of Energy Technology

For

Absent

Approval of provision of debt guarantee for the HVDC-VSC subsea transmission system construction and operation project in UAE

For

Absent

Approval to consign contract administration regarding construction works to Public Procurement Service

For

Absent

August 19, 2022

Approval of amendments to the Articles of Incorporation

For

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

For

Approval of changing composition of Director Nomination Committee for the candidates of non-standing director

For

Approval of establishment of and contribution to a special purpose company for construction and operation of Jafurah combined heat and power plant in Saudi Arabia

For

Report on financial statements for the first half of 2022

Agenda for Report

September 15, 2022

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

For

Approval of forming Director Nomination Committee and evaluation standards for the candidates of a standing director and member of the Audit Committee

For

Approval to appoint members of the ESG Committee

For

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2022

For

September 30, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

Attendance Rate

100%

90%

6. Major activities of the ESG Committee


Date	Agenda	Results	Type
May 20, 2022	Report on implementation strategy of KEPCO ESG Management	Accepted as reported	Report

June 24, 2022	Approval of implementation strategy of KEPCO ESG Management	Approved as proposed	Resolution
	Report on publication plan of Sustainability Report of 2022	Accepted as reported	Report
	Report on implementation structure of KEPCO ethical & compliance management and Korean government’s plan to introduce its ethical & compliance system	Accepted as reported	Report

7. Attendance Status of the ESG Committee


Date	Agenda	Seong, Si-Heon	Bang, Su-Ran	Hwang, Cheol-Ho
May 20, 2022	Report on implementation strategy of KEPCO ESG Management	Agenda for Report

June 24, 2022	Approval of implementation strategy of KEPCO ESG Management	For	For	For
	Report on publication plan of Sustainability Report of 2022	Agenda for Report
	Report on implementation structure of KEPCO ethical & compliance management and Korean government’s plan to introduce its ethical & compliance system	Agenda for Report

8. Major activities of the Audit Committee


Date	Agenda	Results	Type
January 26, 2022	Approval of audit plans for 2022	Approved as proposed	Resolution
	Approval of amendments to Code of Conduct and Guidelines for Practice of KEPCO Executives and Employees	Approved as proposed	Resolution
	Approval of plans on KEPCO Integrity Certification awards	Approved as proposed	Resolution
	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Report on audit education plans in 2022	Accepted as reported	Report
	Report on audit progress by independent auditors for fiscal year 2021	Accepted as reported	Report

February 24, 2022	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2021	Approved as proposed	Resolution
	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Report on internal control over financial reporting for the fiscal year 2021	Accepted as reported	Report
	Report on the evaluation on internal control over financial reporting for the fiscal year 2021	Accepted as reported	Report
	Report on audit results for 2021	Accepted as reported	Report

March 18, 2022	Approval of investigation result on the agenda for the annual general meeting of shareholders	Approved as proposed	Resolution
	Approval of auditor’s report for the annual general meeting of shareholders	Approved as proposed	Resolution
	Report on audit results by the independent auditor for the fiscal year 2021	Accepted as reported	Report

April 22, 2022	Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees	Approved as proposed	Resolution
	Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes	Approved as proposed	Resolution
	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Report on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report
	Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report


May 20, 2022	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Approval of amendments to the Guidelines for Disciplinary Actions	Approved as proposed	Resolution
	Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes	Approved as proposed	Resolution
	Independent auditor’s review report on the financial statements of the first quarter of the fiscal year 2022	Accepted as reported	Report

June 24, 2022	Approval of amendments to the Guidelines for Handling of Whistleblowing Report and Protection of Whistleblowers	Approved as proposed	Resolution
	Approval of amendments to the Guidelines for Immunity of Proactive Performance	Approved as proposed	Resolution
	Report on audit results for the first quarter of 2022	Accepted as reported	Report
	Auditor’s review report for the fiscal year of 2021	Accepted as reported	Report
	Independent auditor’s report on the audit plans for the fiscal year 2022	Accepted as reported	Report

July 15, 2022	Approval of amendments to Code of Conduct and Guidelines for Practice of KEPCO Executives and Employees	Approved as proposed	Resolution
July 15, 2022	Approval of amendment to Guidelines for Internal Audit Regulations	Approved as proposed	Resolution

August 19, 2022	Approval of amendments to Internal Audit Regulations	Approved as proposed	Resolution
	Report on audit results for the second quarter of 2022	Accepted as reported	Report
	Auditor’s review report for the first half of 2022	Accepted as reported	Report

September 19, 2022	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Approved as proposed	Resolution
September 19, 2022	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution

*	The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company and takes administrative measures as appropriate in accordance with relevant internal regulations.

9. Attendance Status of the Audit Committee


Date	Agenda	Kim, Jae-Shin	Park, Hyo-Sung	Choi, Young-Ho
January 26, 2022	Approval of Audit plans for 2022

	Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members

	Approval of plans on KEPCO Integrity Certification awards

	Approval of appointment of independent auditors of subsidiaries	Attended	Attended	Attended

	Prior approval for non-audit service for subsidiaries by the independent auditor

	Report on audit education plans in 2022

	Report on audit progress by independent auditors for fiscal year 2021

February 24, 2022	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2021

	Approval of appointment of independent auditors of subsidiaries

	Prior approval for non-audit service for subsidiaries by the independent auditor

	Report on internal control over financial reporting for the fiscal year 2021	Attended	Attended	Attended

	Report on the evaluation on internal control over financial reporting for the fiscal year 2021

	Report on audit results for 2021

March 18, 2022	Approval of investigation result on the agenda for the annual general meeting of shareholders

	Approval of auditor’s report for the annual general meeting of shareholders	Attended	Attended	Attended

	Report on audit results by the independent auditor for the fiscal year 2021



April 22, 2022	Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees

	Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes

	Approval of appointment of independent auditors of subsidiaries

	Report on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission	Attended	Attended	Attended

	Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission

May 20, 2022	Prior approval for non-audit service for subsidiaries by the independent auditor

	Approval of appointment of independent auditors of subsidiaries

	Approval of amendments to the Guidelines for Disciplinary Actions	Attended	Attended	Attended

	Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes

	Independent auditor’s review report on the financial statements of the first quarter of the fiscal year 2022

June 24, 2022	Approval of amendments to the Guidelines for Handling of Whistleblowing Report and Protection of Whistleblowers

	Approval of amendments to the Guidelines for Immunity of Proactive Performance	Attended	Attended	Attended

	Report on audit results for the first quarter of 2022

	Auditor’s review report for the fiscal year of 2021

	Independent auditor’s report on the audit plans for the fiscal year 2022

July 15, 2022	Approval of amendments to Code of Conduct and Guidelines for Practice of KEPCO Executives and Employees	Attended	Attended	Attended
	Approval of amendment to Guidelines for Internal Audit Regulations	Attended	Attended	Attended

August 19, 2022	Approval of amendments to Internal Audit Regulations

	Report on audit results for the second quarter of 2022	Attended	Attended	Attended

	Auditor’s review report for the first half of 2022

September 19, 2022	Approval of investigation result on the agenda for the extraordinary general meeting of shareholders	Attended	Attended	Attended

	Approval of appointment of independent auditors of subsidiaries

Attendance Rate		100%	100%	100%

V.	Shareholder’s Meetings

1.	Summary of shareholder’s meetings for a nine-month period ended September 30, 2022


Type	Agenda	Results
Annual General Meeting held on March 28, 2022	Approval of the consolidated and separate financial statements for the fiscal year 2021	Approved as proposed
Annual General Meeting held on March 28, 2022	Approval of the maximum aggregate amount of remuneration for directors in 2022	Approved as proposed

Extraordinary General Meeting held on October 31, 2022	Approval of amendments to the Articles of Incorporation of KEPCO	Approved as proposed

VI.

Shareholders

1.	List of shareholders as of September 30, 2022


		Number of shareholders		Shares owned		Percentage of total (%)
Government of the Republic of Korea			1		116,841,794		18.20
Korea Development Bank			1		211,235,264		32.90
Subtotal			2		328,077,058		51.10
National Pension Service			1		40,688,679		6.34
Public (Non-Koreans)	Common Shares		1,150		79,997,046		12.46
Public (Non-Koreans)	American depositary shares (ADS)		1		10,675,991		1.66
Public (Koreans)			712,769		182,525,303		28.44

Total			713,923		641,964,077		100.00

•

Percentages are based on issued shares of common stock.

•

All of our shareholder have equal voting rights.

•

Citibank, N.A. is our depositary bank and each ADS represents one-half of one share of our common stock.

VII.

Directors and employees as of and for a nine-month period ended September 30, 2022 (KEPCO Only)

Directors


							(In thousands of Won)
Type		Number of directors	Total remuneration		Average remuneration per person		Remarks
Standing director		6		870,555		145,092	Excluding members of the Audit Committee
Non-standing director		6		135,000		22,500	Excluding members of the Audit Committee
Member of Audit Committee	Standing director	1		157,909		157,909	—
Member of Audit Committee	Non-standing director	2		45,000		22,500	—

Total		15		1,208,464		80,564	—

Employees


									(In thousands of Won)

Type	Number of employees						Average continuous service year		Total salaries		Average salaries per person
Type	Regular		Non-regular		Total		Average continuous service year		Total salaries		Average salaries per person
Male		18,198		80		18,278		14.8		1,222,353,729		66,914
Female		5,369		50		5,419		12.9		290,393,125		54,196

Total		23,567		130		23,697		14.4		1,512,746,855		64,028

VIII.

Other Information Necessary for the Protection of Investors

1.	Pending legal proceedings as of September 30, 2022


			(In billions of Won)

Type	Number of lawsuits		Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants		665		1,007
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs		225		783

2.	Sanctions as of September 30, 2022


Prosecution Date	Subject		Sanctions	Relevant laws (charges)	Proceedings
Prosecution Date	Position	Tenure	Sanctions	Relevant laws (charges)	Proceedings
June 30, 2021	CEO of Korea Hydro & Nuclear Power Co., Ltd. (Former)	4yrs	Prosecution without detention	The Act on the Aggravated Punishment, etc. of specific economic crimes (Occupational breach of trust), The Criminal Act	In the progress in the district court

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Interim Consolidated Financial Statements

For the nine-month periods ended September 30, 2022 and 2021

(With Independent Auditor’s Review Report Thereon)

INDEX TO FINANCIAL STATEMENTS


	Page
Independent Auditor’s Review Report

Interim Consolidated Statements of Financial Position		4

Interim Consolidated Statements of Comprehensive Income (Loss)		6

Interim Consolidated Statements of Changes in Equity		8

Interim Consolidated Statements of Cash Flows		10

Notes to the Interim Consolidated Financial Statements		12

LOGO

Independent Auditor’s Review Report

(English Translation of a Report Originally Issued in Korean)

The Shareholders and Board of Directors

Korea Electric Power Corporation:

We have reviewed the accompanying interim consolidated financial statements of Korea Electric Power Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the interim consolidated statement of financial position as of September 30, 2022, and the related interim consolidated statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2022 and 2021, interim consolidated statements of changes in equity and interim consolidated statements of cash flows for the nine-month periods then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Interim Consolidated Financial Statements

Management is responsible for the preparation and presentation of these interim consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these interim consolidated financial statements based on our review. We conducted our review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing (“KSAs”) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements are not prepared, in all material respects, in accordance with KIFRS 1034 Interim Financial Reporting.

Other Matter

We have audited the consolidated statement of financial position of the Group as of December 31, 2021, and the related consolidated statement of comprehensive income (loss), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended (not presented herein) in accordance with KSAs, and our report dated March 14, 2022 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2021 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

LOGO

November 14, 2022

This review report is effective as of November 14, 2022, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying interim consolidated financial statements and may result in modifications to this review report.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Financial Position

As of September 30, 2022 (Unaudited) and December 31, 2021


In millions of won	*Note*		September 30, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents		5,6,7,44	W	5,873,363		2,635,238
Current financial assets, net		5,6,9,11,12,13,44,46		2,355,547		1,868,796
Trade and other receivables, net		5,8,20,24,44,45,46		8,366,043		8,122,415
Inventories, net		14		9,518,666		7,608,182
Income tax receivables				49,691		41,344
Current non-financial assets		15		1,709,149		1,758,991
Assets held-for-sale		16,41		44,768		15,879

Total current assets				27,917,227		22,050,845

Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,44,46		4,592,818		2,909,810
Non-current trade and other receivables, net		5,8,20,44,45,46		2,355,242		1,906,861
Property, plant and equipment, net		2,18,24,27,48		173,881,901		173,125,649
Investment properties, net		19,27		208,805		212,784
Goodwill		16		100,090		105,647
Intangible assets other than goodwill, net		21,27,45		958,475		1,044,077
Investments in associates		4,17		6,042,416		5,232,373
Investments in joint ventures		4,17		3,449,859		2,239,011
Defined benefit assets, net		25		99,665		20,871
Deferred tax assets				8,292,214		1,901,992
Non-current non-financial assets		15		306,715		364,818

Total non-current assets				200,288,200		189,063,893

Total Assets		2,4	W	228,205,427		211,114,738

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Financial Position, Continued

As of September 30, 2022 (Unaudited) and December 31, 2021


In millions of won	*Note*		September 30, 2022			December 31, 2021
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,44,46	W	10,731,790			8,153,426
Current financial liabilities, net		5,12,23,44,46		21,119,473			14,037,125
Income tax payables				430,727			229,460
Current non-financial liabilities		20,28,29		7,134,783			6,466,333
Current provisions		26,44		2,193,346			2,845,876

Total current liabilities				41,610,119			31,732,220

Non-current liabilities
Non-current trade and other payables, net		5,22,24,44,46		6,257,084			5,996,498
Non-current financial liabilities, net		5,12,23,44,46		88,454,955			66,570,419
Non-current non-financial liabilities		28,29		10,526,823			10,216,364
Employee benefits liabilities, net		25,44		1,141,196			1,679,158
Deferred tax liabilities				7,054,892			7,100,938
Non-current provisions		26,44		22,739,002			22,501,424

Total non-current liabilities				136,173,952			114,064,801

Total Liabilities		4	W	177,784,071			145,797,021

Equity
Contributed capital		1,30,44
Share capital			W	3,209,820			3,209,820
Share premium				843,758			843,758

				4,053,578			4,053,578

Retained earnings		2,31
Legal reserves				1,604,910			1,604,910
Voluntary reserves				27,782,969			33,282,817
Unappropriated retained earnings				(345,122	)		10,365,123

				29,042,757			45,252,850

Other components of equity		33
Other capital surplus				1,230,265			1,231,109
Accumulated other comprehensive income (loss)				1,022,147			(57,632	)
Other equity				13,294,973			13,294,973

				15,547,385			14,468,450

Equity attributable to owners of the controlling company				48,643,720			63,774,878

Non-controlling interests		16,32		1,777,636			1,542,839

Total Equity		2	W	50,421,356			65,317,717

Total Liabilities and Equity			W	228,205,427			211,114,738

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss)

For the three and nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won, except per share information			September 30, 2022						September 30, 2021
	*Note*		Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Sales		2,4,34,44,46
Sales of goods			W	19,176,859			50,104,404			15,987,619			43,674,447
Sales of services				177,365			460,940			111,642			304,253
Sales of construction services		20		241,233			670,692			196,977			677,416
Revenue related to transfer of assets from customers		28		177,501			529,027			165,981			490,931

				19,772,958			51,765,063			16,462,219			45,147,047

Cost of sales		2,14,25,42,46
Cost of sales of goods				(26,222,290	)		(70,408,529	)		(16,295,502	)		(43,254,088	)
Cost of sales of services				(171,600	)		(465,688	)		(199,841	)		(364,793	)
Cost of sales of construction services				(208,150	)		(605,649	)		(172,766	)		(616,369	)

				(26,602,040	)		(71,479,866	)		(16,668,109	)		(44,235,250	)

Gross profit (loss)				(6,829,082	)		(19,714,803	)		(205,890	)		911,797

Selling and administrative expenses		25,35,42,46		(701,859	)		(2,119,408	)		(730,801	)		(2,035,761	)

Operating loss		4		(7,530,941	)		(21,834,211	)		(936,691	)		(1,123,964	)

Other income		36		96,782			265,363			72,026			261,049

Other expenses		36		(76,066	)		(161,258	)		(36,860	)		(126,776	)

Other gains (losses), net		37		(15,193	)		34,938			58,949			78,426

Finance income		5,12,38		1,720,492			2,979,199			644,548			1,273,843

Finance expenses		5,12,39		(2,662,680	)		(5,250,698	)		(1,178,328	)		(2,669,511	)

Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Gain on valuation of investments in associates and joint ventures				315,770			1,028,487			135,277			446,664
Gain on disposal of investments in associates and joint ventures				4,830			9,761			833			875
Loss on valuation of investments in associates and joint ventures				24,941			(79,026	)		(92,047	)		(126,613	)
Loss on disposal of investments in associates and joint ventures				(1,294	)		(1,676	)		—			(161	)
Loss on disposal of investments in subsidiaries				—			(31,532	)		(1	)		(1,194	)

				344,247			926,014			44,062			319,571

Loss before income tax				(8,123,359	)		(23,040,653	)		(1,332,294	)		(1,987,362	)

Income tax benefit (expense)		40		2,239,146			6,394,696			306,409			411,908

Loss for the period			W	(5,884,213	)		(16,645,957	)		(1,025,885	)		(1,575,454	)

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Comprehensive Income (Loss), Continued

For the three and nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won, except per share information			September 30, 2022						September 30, 2021
	*Note*		Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Other comprehensive income (loss), net of tax		5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability		25,31	W	169,621			518,215			33,954			101,705
Share in other comprehensive income (loss) of associates and joint ventures		31		(4,015	)		(1,647	)		(2,097	)		(3,273	)
Net change in fair value of equity investments at fair value through other comprehensive income (loss)		33		52,680			32,237			24,155			59,222
Items that are or may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting		5,12,33		(36,095	)		(43,541	)		(52,647	)		(15,789	)
Foreign currency translation of foreign operations		33		149,339			242,816			24,132			52,116
Share in other comprehensive income (loss) of associates and joint ventures		33		457,379			920,833			112,821			297,373

Other comprehensive income for the period				788,909			1,668,913			140,318			491,354

Total comprehensive loss for the period			W	(5,095,304	)		(14,977,044	)		(885,567	)		(1,084,100	)

Profit (loss) attributable to:
Owners of the controlling company		43	W	(5,905,386	)		(16,695,435	)		(1,045,241	)		(1,649,493	)
Non-controlling interests				21,173			49,478			19,356			74,039

			W	(5,884,213	)		(16,645,957	)		(1,025,885	)		(1,575,454	)

Total comprehensive income (loss) attributable to:
Owners of the controlling company			W	(5,176,519	)		(15,131,160	)		(924,473	)		(1,194,193	)
Non-controlling interests				81,215			154,116			38,906			110,093

			W	(5,095,304	)		(14,977,044	)		(885,567	)		(1,084,100	)

Loss per share (in won)		43
Basic and diluted loss per share			W	(9,199	)		(26,007	)		(1,628	)		(2,569	)

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity

For the nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
Balance as of January 1, 2021	W	4,053,578		51,133,601			14,109,501			69,296,680			1,370,166			70,666,846
Total comprehensive income (loss) for the period
Profit (Loss) for the period		—		(1,649,493	)		—			(1,649,493	)		74,039			(1,575,454	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		94,520			—			94,520			7,185			101,705
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		(3,273	)		—			(3,273	)		—			(3,273	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax		—		—			59,219			59,219			3			59,222
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		—		—			(18,165	)		(18,165	)		2,376			(15,789	)
Foreign currency translation of foreign operations, net of tax		—		—			25,626			25,626			26,490			52,116
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			297,373			297,373			—			297,373
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		(780,628	)		—			(780,628	)		(30,620	)		(811,248	)
Issuance of shares of capital by subsidiaries and others		—		—			(334	)		(334	)		2,848			2,514
Transactions between consolidated entities		—		—			7,452			7,452			(1,234	)		6,218
Changes in consolidation scope		—		—			44			44			50,926			50,970
Dividends paid (hybrid bond)		—		—			—			—			(10,039	)		(10,039	)
Others		—		4,454			(4,454	)		—			—			—

Balance as of September 30, 2021	W	4,053,578		48,799,181			14,476,262			67,329,021			1,492,140			68,821,161

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Changes in Equity, Continued

For the nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won	Equity attributable to owners of the controlling company
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
Balance as of January 1, 2022	W	4,053,578		45,252,850			14,468,450			63,774,878			1,542,839			65,317,717
Total comprehensive income (loss) for the period
Profit (Loss) for the period		—		(16,695,435	)		—			(16,695,435	)		49,478			(16,645,957	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		486,143			—			486,143			32,072			518,215
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		(1,647	)		—			(1,647	)		—			(1,647	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax		—		—			32,238			32,238			(1	)		32,237
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		—		—			(48,282	)		(48,282	)		4,741			(43,541	)
Foreign currency translation of foreign operations, net of tax		—		—			174,990			174,990			67,826			242,816
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			920,833			920,833			—			920,833
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		—			—			—			(33,882	)		(33,882	)
Issuance of shares of capital by subsidiaries and others		—		846			256			1,102			104,054			105,156
Transactions between consolidated entities		—		—			(515	)		(515	)		(2,413	)		(2,928	)
Changes in consolidation scope		—		—			(585	)		(585	)		22,961			22,376
Dividends paid (hybrid bond)		—		—			—			—			(10,039	)		(10,039	)

Balance as of September 30, 2022	W	4,053,578		29,042,757			15,547,385			48,643,720			1,777,636			50,421,356

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows

For the nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won	September 30, 2022			September 30, 2021
Cash flows from operating activities
Loss for the period	W	(16,645,957	)		(1,575,454	)

Adjustments to reconcile profit (loss) for the period to net cash provided by operating activities:
Income tax benefit		(6,394,696	)		(411,908	)
Depreciation		9,290,943			8,825,171
Amortization		117,107			125,319
Employee benefits expense		356,140			372,063
Bad debt expense		3,103			26,244
Interest expense		1,925,955			1,410,523
Loss on disposal of financial assets		1,018			652
Loss on disposal of property, plant and equipment		68,574			43,850
Loss on abandonment of property, plant and equipment		124,941			139,180
Impairment loss on property, plant and equipment		(4,659	)		3,317
Impairment loss on intangible assets		14			—
Loss on disposal of intangible assets		48			38
Increase in provisions		1,010,626			1,416,567
Loss on foreign currency translation, net		2,665,455			999,307
Gain on valuation of financial assets at fair value through profit or loss		(5,808	)		(2,817	)
Loss on valuation of financial assets at fair value through profit or loss		27,389			6,889
Valuation and transaction gain on derivative instruments, net		(2,368,029	)		(901,127	)
Gain on valuation of investments in associates and joint ventures, net		(949,461	)		(320,051	)
Gain on disposal of financial assets		(9,104	)		(5,456	)
Gain on disposal of property, plant and equipment		(132,845	)		(45,081	)
Gain on disposal of intangible assets		(41	)		—
Gain on disposal of associates and joint ventures		(9,761	)		(875	)
Loss on disposal of associates and joint ventures		1,676			161
Loss on disposal of subsidiaries		31,532			1,194
Interest income		(228,421	)		(162,126	)
Dividends income		(18,138	)		(9,172	)
Others, net		201,250			(81,913	)

		5,704,808			11,429,949

Changes in working capital:
Trade receivables		(21,890	)		925,869
Non-trade receivables		57,647			222,816
Accrued income		35,609			323,394
Other receivables		67,064			13,856
Other current assets		(421,607	)		(262,187	)
Inventories		(2,628,383	)		(1,258,753	)
Other non-current assets		50,144			(18,698	)
Trade payables		2,171,177			538,317
Non-trade payables		(111,039	)		(368,573	)
Accrued expenses		(31,698	)		(317,674	)
Other current liabilities		709,021			536,087
Other non-current liabilities		370,499			306,719
Investments in associates and joint ventures (dividends received)		382,890			178,230
Provisions		(1,175,676	)		(1,694,682	)
Payments of employee benefit obligations		(156,264	)		(121,188	)
Plan assets		(35,877	)		(12,782	)

	W	(738,383	)		(1,009,249	)

(Continued)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Interim Consolidated Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2022 and 2021 (Unaudited)


In millions of won	September 30, 2022			September 30, 2021
Cash generated from operating activities	W	(11,679,532	)		8,845,246
Dividends received		18,138			9,172
Interest paid		(1,744,315	)		(1,471,668	)
Interest received		139,562			135,609
Income taxes paid		(393,037	)		(757,137	)

Net cash provided by (used in) operating activities		(13,659,184	)		6,761,222

Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures		41,875			4,138
Acquisition of investments in associates and joint ventures		(328,386	)		(310,945	)
Proceeds from disposals of property, plant and equipment		355,968			182,740
Acquisition of property, plant and equipment		(8,853,462	)		(9,333,282	)
Proceeds from disposals of intangible assets		115			10
Acquisition of intangible assets		(55,711	)		(50,956	)
Proceeds from disposals of financial assets		13,843,713			5,346,373
Acquisition of financial assets		(14,044,373	)		(5,857,552	)
Increase in loans		(336,653	)		(151,553	)
Collection of loans		62,439			180,791
Increase in deposits		(164,784	)		(150,038	)
Decrease in deposits		89,717			110,736
Proceeds from disposals of assets held-for-sale		9,665			1,137
Receipt of government grants		34,110			25,377
Net cash outflow from changes in consolidation scope		3,203			(66,359	)
Other cash outflow from investing activities, net		(156,483	)		(369,792	)

Net cash used in investing activities		(9,499,047	)		(10,439,175	)

Cash flows from financing activities
Proceeds from short-term borrowings, net		3,928,031			709,725
Proceeds from long-term borrowings and debt securities		30,592,865			11,195,049
Repayment of long-term borrowings and debt securities		(8,372,768	)		(7,112,603	)
Payment of lease liabilities		(442,645	)		(445,248	)
Settlement of derivative instruments, net		489,503			88,101
Change in non-controlling interests		99,516			53,543
Dividends paid (hybrid bond)		(10,039	)		(10,039	)
Dividends paid		(33,882	)		(811,264	)
Other cash outflow from financing activities, net		(13,449	)		(7,003	)

Net cash provided by financing activities		26,237,132			3,660,261

Net increase(decrease) in cash and cash equivalents before effect of exchange rate fluctuations		3,078,901			(17,692	)

Effect of exchange rate fluctuations on cash held		159,224			74,613

Net increase in cash and cash equivalents		3,238,125			56,921

Cash and cash equivalents at January 1		2,635,238			2,029,584

Cash and cash equivalents at September 30	W	5,873,363			2,086,505

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements

September 30, 2022 and 2021 (Unaudited)

1.	Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”) was incorporated on January 1, 1982 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO also provides power plant construction services. KEPCO’s stock was first listed on the Korea Stock Exchange on August 10, 1989 and subsequently on the New York Stock Exchange on October 27, 1994 through its depository receipts. KEPCO’s headquarter is located in Naju, Jeollanam-do.

As of September 30, 2022, KEPCO’s share capital amounts to W3,209,820 million and KEPCO’s shareholders are as follows:


	Number of shares		Percentage of ownership
The Government of the Republic of Korea		116,841,794		18.20	%
Korea Development Bank		211,235,264		32.90	%
Other (*)		313,887,019		48.90	%

		641,964,077		100.00	%

(*)	The number of shares held by foreign shareholders are 91,593,568 shares (14.27%) as of September 5, 2022, the most recent closing date of shareholder list.

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

2.	Basis of Preparation

(1)

Statement of compliance

These consolidated financial statements have been prepared in accordance with KIFRS, as prescribed in the Act on External Audits of Corporations in the Republic of Korea. The accompanying interim condensed consolidated financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditors’ review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

(2)

Basis of measurement

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

•

financial assets at fair value through profit or loss

•

financial assets at fair value through other comprehensive income or loss

•

derivative financial instruments are measured at fair value

•

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

(3)

Functional and presentation currency

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued

(4)

Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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

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

(i)

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

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

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

(ii)

Deferred tax

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

(iii)

Valuations of financial instruments at fair values

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

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

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

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

(iv)

Defined employee benefit liabilities

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued

(4)

Use of estimates and judgments, continued

(v)

Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of September 30, 2022 and 2021 are W1,543,724 million and W1,282,807 million, respectively.

(vi)

Construction contracts

The Group recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Group’s progress towards complete satisfaction of providing the power plant construction, which has been identified as a single performance obligation. In applying the cost-based input method, it is necessary to use estimates and assumptions related to the Group’s efforts or inputs expected to be incurred. Costs incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however, it can also be affected by uncertainties resulting from unexpected future events.

(5)

Changes in accounting policies

(i)

Property, Plant and Equipment: Proceeds before Intended Use – Amendments to KIFRS 1016

The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The Group applied the amendment retrospectively to items of property, plant and equipment that are capable of operating on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments, and the impacts on the Group’s consolidated financial statements on the date of initial application (January 1, 2022) are as follows:

①

The impacts on the Group’s consolidated statement of financial position as of December 31, 2021 are as follows:


In millions of won	Original carrying amount		Adjustment		New carrying amount
Current assets	W	22,050,845		—		22,050,845
Non-current assets		189,058,025		5,868		189,063,893

Total Assets		211,108,870		5,868		211,114,738

Current liabilities		31,732,220		—		31,732,220
Non-current liabilities		114,064,801		—		114,064,801

Total Liabilities		145,797,021		—		145,797,021

Contributed capital		4,053,578		—		4,053,578
Retained earnings		45,246,982		5,868		45,252,850
Other components of equity		14,468,450		—		14,468,450
Non-controlling interests		1,542,839		—		1,542,839

Total Equity		65,311,849		5,868		65,317,717

Total Liabilities and Equity	W	211,108,870		5,868		211,114,738

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued

(5)

Changes in accounting policies, continued

②

The impacts on the Group’s interim consolidated statement of comprehensive income(loss) for the nine-month period ended September 30, 2021 are as follows:


In millions of won except per share information	Original carrying amount			Adjustment			New carrying amount
Sales	W	45,056,434			90,613			45,147,047
Cost of sales		(44,150,505	)		(84,745	)		(44,235,250	)

Gross profit		905,929			5,868			911,797

Selling and administrative expenses		(2,035,761	)		—			(2,035,761	)

Operating loss		(1,129,832	)		5,868			(1,123,964	)

Other non-operating income		261,049			—			261,049
Other non-operating expense		(126,776	)		—			(126,776	)
Other gains, net		78,426			—			78,426
Finance income		1,273,843			—			1,273,843
Finance expenses		(2,669,511	)		—			(2,669,511	)
Profit related to associates, joint ventures and subsidiaries		319,571			—			319,571

Loss before income tax		(1,993,230	)		5,868			(1,987,362	)

Income tax benefit		411,908			—			411,908

Net Loss for the period		(1,581,322	)		5,868			(1,575,454	)

Other comprehensive income (loss)		491,354			—			491,354

Total comprehensive income (loss) for the period		(1,089,968	)		5,868			(1,084,100	)

Loss per share (in won)	W	(2,579	)		10			(2,569	)

③

The impacts on the Group’s interim consolidated statement of cash flows for the nine-month period ended September 30, 2021 are as follows:


In millions of won	Original carrying amount			Adjustment			New carrying amount
Cash flows from operating activities	W	6,751,076			10,146			6,761,222
Cash flows from investing activities		(10,429,029	)		(10,146	)		(10,439,175	)
Cash flows from financing activities		3,660,261			—			3,660,261

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

2.	Basis of Preparation, Continued

(5)

Changes in accounting policies, continued

(ii)

Other changes in accounting standards effective from January 1, 2022 are as follows. The Group believes that these amendments have no significant impact on the Group’s interim 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, 2022, even though the early adoption of these standards is possible.

Onerous Contracts – Costs of Fulfilling a Contract – Amendments to KIFRS 1037

Onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The amendment specifies that the costs of fulfilling a contract comprise incremental costs, such as the costs of materials or labor, and an allocation of other costs directly related to the contract, such as an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract, when assessing whether a contract is an onerous contract. The Group will apply the amendment to the contracts for which all obligations have not been fulfilled at the date of initial application.

Reference to the Conceptual Framework – Amendments to KIFRS 1103

The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements.

An exception has been added to the recognition principle in KIFRS 1103 to avoid ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of KIFRS 1037 or KIFRS 2121 Levies. It requires an entity to apply criteria in KIFRS 1037 and KIFRS 2121 respectively to determine whether a present obligation exists at the acquisition date. The amendment added a new paragraph to KIFRS 1103 to clarify that the contingent assets should not be recognized at the date of acquisition.

KIFRS 1101 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter

The amendment permits a subsidiary that elects to apply paragraph D16(a) of KIFRS 1101 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to KIFRS. This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of KIFRS 1101.

KIFRS 1109 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities

The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. There is no restricted and similar amendment to KIFRS 1039.

KIFRS 1041 Agriculture – Taxation in fair value measurements

The amendments remove the requirement in paragraph 22 of KIFRS 1041 that entities exclude cash flows for taxation when measuring the fair value of assets within the scope of KIFRS 1041.

3.	Significant Accounting Policies

The accounting policies applied by the Group in these interim consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2021, except for the changes described in Note 2.(5).

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

4.	Segment, Geographic and Other Information

(1)

Segment determination and explanation of the measurements

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

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(2)

Financial information of the segments for the three and nine-month periods ended September 30, 2022 and 2021, respectively, are as follows:


In millions of won
September 30, 2022
Segment	Total segment revenue						Intersegment revenue						Revenue from external customers				Operating Profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related associates, joint ventures and subsidiaries
	Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended		nine- month period ended		Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended
Transmission and distribution	W	19,247,360			50,118,847			492,966			1,312,771			18,754,394		48,806,076		(8,942,513	)		(23,947,575	)		1,032,300			3,089,222			20,579			44,614			374,938			894,874			184,099			583,570
Electric power generation (Nuclear)		2,854,428			7,884,651			2,819,843			7,780,138			34,585		104,513		576,108			1,163,698			1,031,671			3,048,937			12,432			26,891			139,069			417,083			(1,662	)		6,334
Electric power generation (Non-nuclear)		12,003,164			29,850,362			11,365,891			28,005,911			637,273		1,844,451		838,382			803,741			1,057,054			3,131,389			13,666			35,284			184,063			513,472			161,101			334,732
Plant maintenance & engineering service		753,326			2,095,566			644,722			1,781,931			108,604		313,635		66,588			147,994			31,094			92,526			2,957			9,116			296			979			709			1,378
Others		696,832			1,895,167			458,730			1,198,779			238,102		696,388		95,836			236,933			43,723			135,105			50,665			137,628			41,613			135,809			—			—
Consolidation adjustments		(15,782,152	)		(40,079,530	)		(15,782,152	)		(40,079,530	)		—		—		(165,342	)		(239,002	)		(33,269	)		(89,129	)		(10,149	)		(25,112	)		(17,679	)		(36,262	)		—			—

	W	19,772,958			51,765,063			—			—			19,772,958		51,765,063		(7,530,941	)		(21,834,211	)		3,162,573			9,408,050			90,150			228,421			722,300			1,925,955			344,247			926,014


In millions of won
September 30, 2021
Segment	Total segment revenue						Intersegment revenue						Revenue from external customers				Operating Profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related associates, joint ventures and subsidiaries
	Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended		nine- month period ended		Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended			Three- month period ended			nine- month period ended
Transmission and distribution	W	16,116,215			44,376,644			390,536			1,198,276			15,725,679		43,178,368		(1,239,374	)		(3,244,427	)		993,314			2,958,418			9,146			26,368			170,806			490,562			9,769			250,162
Electric power generation (Nuclear)		1,850,415			7,301,141			1,817,148			7,215,096			33,267		86,045		(255,867	)		1,101,402			894,964			2,715,856			5,479			16,941			118,839			356,518			(757	)		(11,273	)
Electric power generation (Non-nuclear)		7,572,426			18,399,798			7,150,226			17,324,902			422,200		1,074,896		488,466			676,070			1,087,777			3,160,934			4,914			14,532			163,125			462,850			34,678			79,429
Plant maintenance & engineering service		602,659			1,848,283			494,521			1,562,767			108,138		285,516		44,990			167,873			30,318			91,217			2,066			6,450			191			619			372			1,253
Others		513,211			1,436,664			340,276			914,442			172,935		522,222		47,096			153,706			38,016			114,142			40,411			118,265			45,829			121,915			—			—
Consolidation adjustments		(10,192,707	)		(28,215,483	)		(10,192,707	)		(28,215,483	)		—		—		(22,002	)		21,412			(25,706	)		(90,077	)		(7,022	)		(20,430	)		(7,652	)		(21,941	)		—			—

	W	16,462,219			45,147,047			—			—			16,462,219		45,147,047		(936,691	)		(1,123,964	)		3,018,683			8,950,490			54,994			162,126			491,138			1,410,523			44,062			319,571

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(3)

Information related to segment assets and segment liabilities as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won
September 30, 2022
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	125,802,570			5,982,409		4,144,824			95,910,161
Electric power generation (Nuclear)		65,946,606			149,954		1,593,479			39,215,400
Electric power generation (Non-nuclear)		62,247,191			3,305,812		2,423,903			38,683,424
Plant maintenance & engineering service		3,805,376			54,100		126,349			1,103,525
Others		13,699,358			—		809,287			6,157,932
Consolidation adjustments		(43,295,674	)		—		(66,739	)		(3,286,371	)

	W	228,205,427			9,492,275		9,031,103			177,784,071


In millions of won

December 31, 2021
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	115,578,517			4,700,863		6,754,298			68,531,927
Electric power generation (Nuclear)		64,628,651			141,885		1,959,479			38,361,337
Electric power generation (Non-nuclear)		57,310,164			2,575,019		3,337,681			35,803,289
Plant maintenance & engineering service		3,672,366			53,617		110,330			1,086,926
Others		10,861,823			—		637,715			4,961,880
Consolidation adjustments		(40,936,783	)		—		(12,001	)		(2,948,338	)

	W	211,114,738			7,471,384		12,787,502			145,797,021

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

4.	Segment, Geographic and Other Information, Continued

(4)

Geographic information

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


In millions of won	Revenue from external customers								*Non-current assets (2)**
	September 30, 2022				September 30, 2021				September 30, 2022		December 31, 2021
Geographical unit	Three- month period ended		Nine- month period ended		Three-month period ended		Nine- month period ended		September 30, 2022		December 31, 2021
Domestic	W	19,317,163		50,533,212		16,142,768		44,094,597		180,016,862		178,751,575
Overseas (*1)		455,795		1,231,851		319,451		1,052,450		4,931,399		3,572,784

	W	19,772,958		51,765,063		16,462,219		45,147,047		184,948,261		182,324,359

(*1)	Middle East and other Asian countries make up the majority of overseas revenue and non-current assets. Since the overseas revenue or non-current assets attributable to particular countries are not material, they are not disclosed individually.

(*2)	The amounts exclude financial assets, deferred tax assets and defined benefit assets.

(5)

Information on significant customers

There is no single customer which accounts for 10% or more of the Group’s revenue for the nine-month periods ended September 30, 2022 and 2021.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

5.	Classification of Financial Instruments

(1)

Classification of financial assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		—		5,873,363		—		5,873,363
Current financial assets
Current financial assets at fair value through profit or loss		1,094,146		—		—		—		1,094,146
Current financial assets at amortized costs		—		—		21,940		—		21,940
Current derivative assets		229,808		—		—		267,536		497,344
Other financial assets		—		—		742,117		—		742,117
Trade and other receivables		—		—		8,366,043		—		8,366,043

		1,323,954		—		15,003,463		267,536		16,594,953

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		571,524		—		—		—		571,524
Non-current financial assets at fair value through other comprehensive income		—		512,762		—		—		512,762
Non-current financial assets at amortized costs		—		—		10,110		—		10,110
Non-current derivative assets		1,273,696		—		—		670,189		1,943,885
Other financial assets		—		—		1,554,537		—		1,554,537
Trade and other receivables		—		—		2,355,242		—		2,355,242

		1,845,220		512,762		3,919,889		670,189		6,948,060

	W	3,169,174		512,762		18,923,352		937,725		23,543,013

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

5.	Classification of Financial Instruments, Continued

(1)

Classification of financial assets as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won	December 31, 2021
	Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		—		2,635,238		—		2,635,238
Current financial assets
Current financial assets at fair value through profit or loss		360,833		—		—		—		360,833
Current financial assets at amortized costs		—		—		15,422		—		15,422
Current derivative assets		93,374		—		—		33,564		126,938
Other financial assets		—		—		1,365,603		—		1,365,603
Trade and other receivables		—		—		8,122,415		—		8,122,415

		454,207		—		12,138,678		33,564		12,626,449

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		672,031		—		—		—		672,031
Non-current financial assets at fair value through other comprehensive income		—		435,107		—		—		435,107
Non-current financial assets at amortized costs		—		—		9,851		—		9,851
Non-current derivative assets		349,653		—		—		171,192		520,845
Other financial assets		—		—		1,271,976		—		1,271,976
Trade and other receivables		—		—		1,906,861		—		1,906,861

		1,021,684		435,107		3,188,688		171,192		4,816,671

	W	1,475,891		435,107		15,327,366		204,756		17,443,120

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

5.	Classification of Financial Instruments, Continued

(2)

Classification of financial liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
Current liabilities
Borrowings	W	—		10,447,745		—		10,447,745
Debt securities		—		10,666,316		—		10,666,316
Derivative liabilities		5,412		—		—		5,412
Trade and other payables		—		10,731,790		—		10,731,790

		5,412		31,845,851		—		31,851,263

Non-current liabilities
Borrowings		—		2,880,278		—		2,880,278
Debt securities		—		85,502,396		—		85,502,396
Derivative liabilities		55,485		—		16,796		72,281
Trade and other payables		—		6,257,084		—		6,257,084

		55,485		94,639,758		16,796		94,712,039

	W	60,897		126,485,609		16,796		126,563,302


In millions of won	December 31, 2021
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
Current liabilities
Borrowings	W	—		4,382,218		—		4,382,218
Debt securities		—		9,647,616		—		9,647,616
Derivative liabilities		6,838		—		453		7,291
Trade and other payables		—		8,153,426		—		8,153,426

		6,838		22,183,260		453		22,190,551

Non-current liabilities
Borrowings		—		2,265,624		—		2,265,624
Debt securities		—		64,234,055		—		64,234,055
Derivative liabilities		49,418		—		21,322		70,740
Trade and other payables		—		5,996,498		—		5,996,498

		49,418		72,496,177		21,322		72,566,917

	W	56,256		94,679,437		21,775		94,757,468

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

5.	Classification of Financial Instruments, Continued

(3)

Classification of comprehensive income (loss) from financial instruments for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won		September 30, 2022						September 30, 2021
		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Cash and cash equivalents	Interest income	W	10,165			24,598			2,065			4,463
	Gain (loss) on foreign currency transactions and translations		43,515			89,342			26,626			37,475
Financial assets at fair value through profit or loss	Interest income		16,558			36,181			4,506			13,270
	Dividends income		2,822			3,880			280			1,645
	Gain (loss) on valuation of financial assets		(10,077	)		(21,581	)		(1,376	)		(4,072	)
	Gain (loss) on disposal of financial assets		7,886			8,086			345			2,353
	Gain (loss) on foreign currency transactions and translations		—			—			(1,600	)		—
Financial assets at fair value through other comprehensive income	Dividends income		38			14,258			2,749			7,527
Financial assets at amortized cost	Interest income		747			1,392			33			396
	Gain (loss) on foreign currency transactions and translations		9,205			12,430			2,573			3,311
Loans	Interest income		15,305			26,316			4,706			13,379
	Gain (loss) on foreign currency transactions and translations		882			1,555			414			724
Trade and other receivables	Interest income		37,192			117,192			36,861			111,048
	Gain (loss) on disposal of financial assets		—			—			2,452			2,451
	Gain (loss) on foreign currency transactions and translations		(61,990	)		(2,700	)		(1,931	)		9,570
Short-term financial instruments	Interest income		4,726			10,577			2,024			8,025
	Gain (loss) on foreign currency transactions and translations		—			3,513			19,543			32,823
Long-term financial instruments	Interest income		5,369			11,963			4,765			11,423
	Gain (loss) on foreign currency transactions and translations		2			4			16			28
Other financial assets	Interest income		88			202			35			122
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities		560,849			1,431,109			357,848			969,614
	Loss on repayment of financial liabilities		—			(15	)		—			(10	)
	Interest expense of trade and other payables		21,371			119,746			49,733			144,631
	Interest expense of others		140,080			375,100			83,557			296,278
	Other finance income		578			897			57			1,048
	Other finance expenses		92			1,406			647			1,860
	Gain (loss) on foreign currency transactions and translations		(1,861,582	)		(3,196,170	)		(656,050	)		(1,140,974	)
Derivative assets (trading)	Gain (loss) on valuation of derivatives		722,537			1,170,378			253,594			466,486
	Gain (loss) on transaction of derivatives		160,008			196,632			26,324			33,796
Derivatives (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)		525,102			884,996			212,445			362,698
	Gain (loss) on valuation of derivatives (equity, before tax)		(68,139	)		(94,765	)		(97,858	)		(36,186	)
	Gain (loss) on transaction of derivatives		48,203			116,023			17,592			38,146

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

6.	Restricted Deposits

Restricted deposits as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won		September 30, 2022		December 31, 2021

Cash and cash equivalents	Escrow accounts	W	19		—
	Deposits for government project and others		33,607		22,286
	Collateral provided for borrowings		251,057		264,813
	Collateral provided for lawsuit		57		42
	Deposits for transmission regional support program		12,373		5,921
	Deposits for other business purposes		4,418		3,050
Short-term financial instruments	Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others		114,000		114,000
	Collateral provided for borrowings		—		11,745
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants		422,549		531,720
Long-term financial instruments	Escrow accounts		—		70
	Guarantee deposits for banking accounts at oversea branches		21		333
	Collateral provided for borrowings		11,745		—
	Decommissioning costs of nuclear power plants		454,609		324,609
	Funds for developing small and medium enterprises		—		10,000
Other non-current assets	Deposits for other business purposes		3,000		—


		W	1,307,455		1,288,589

7.	Cash and Cash Equivalents

Cash and cash equivalents as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021

Cash	W	33,391		19,623
Other demand deposits		2,016,411		1,825,751
Short-term deposits classified as cash equivalents		1,230,918		407,921
Short-term investments classified as cash equivalents		2,592,643		381,943


	W	5,873,363		2,635,238

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

8.	Trade and Other Receivables

(1)

Trade and other receivables as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	7,787,555		(199,618	)		—			7,587,937
Other receivables		802,444		(22,829	)		(1,509	)		778,106

		8,589,999		(222,447	)		(1,509	)		8,366,043

Non-current assets
Trade receivables		233,628		(1,784	)		—			231,844
Other receivables		2,195,635		(62,595	)		(9,642	)		2,123,398

		2,429,263		(64,379	)		(9,642	)		2,355,242


	W	11,019,262		(286,826	)		(11,151	)		10,721,285


In millions of won	December 31, 2021
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	7,743,735		(203,838	)		—			7,539,897
Other receivables		602,113		(18,555	)		(1,040	)		582,518

		8,345,848		(222,393	)		(1,040	)		8,122,415

Non-current assets
Trade receivables		185,512		(1,501	)		—			184,011
Other receivables		1,792,895		(64,155	)		(5,890	)		1,722,850

		1,978,407		(65,656	)		(5,890	)		1,906,861


	W	10,324,255		(288,049	)		(6,930	)		10,029,276

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

8.	Trade and Other Receivables, Continued

(2)

Other receivables as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	329,603		(21,274	)		(9	)		308,320
Accrued income		41,002		—			—			41,002
Deposits		269,560		—			(1,500	)		268,060
Finance lease receivables (*1)		74,928		(262	)		—			74,666
Others		87,351		(1,293	)		—			86,058

		802,444		(22,829	)		(1,509	)		778,106

Non-current assets
Non-trade receivables		129,085		(46,827	)		(281	)		81,977
Accrued income		2,280		—			—			2,280
Deposits		463,103		—			(9,361	)		453,742
Finance lease receivables (*2)		1,316,146		(688	)		—			1,315,458
Others		285,021		(15,080	)		—			269,941

		2,195,635		(62,595	)		(9,642	)		2,123,398


	W	2,998,079		(85,424	)		(11,151	)		2,901,504

(*1)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W130,065 million.

(*2)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,215,781 million.


In millions of won	December 31, 2021
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	232,172		(17,084	)		(9	)		215,079
Accrued income		57,300		—			—			57,300
Deposits		212,666		—			(1,031	)		211,635
Finance lease receivables (*1)		60,613		(178	)		—			60,435
Others		39,362		(1,293	)		—			38,069

		602,113		(18,555	)		(1,040	)		582,518

Non-current assets
Non-trade receivables		123,537		(56,407	)		(281	)		66,849
Accrued income		1,828		—			—			1,828
Deposits		441,393		—			(5,609	)		435,784
Finance lease receivables (*2)		1,140,080		(590	)		—			1,139,490
Others		86,057		(7,158	)		—			78,899

		1,792,895		(64,155	)		(5,890	)		1,722,850


	W	2,395,008		(82,710	)		(6,930	)		2,305,368

(*1)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W111,915 million.

(*2)	Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,082,712 million.

(3)

Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. However once trade receivables are overdue, the Group imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Group holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with delinquent payments.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

8.	Trade and Other Receivables, Continued

(4)

Aging analysis of trade receivables as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021

Trade receivables: (not overdue)	W	7,660,534			7,603,472

Trade receivables: (impairment reviewed)		360,649			325,775

Less than 60 days		6,302			11,577
60 ~ 90 days		33,488			27,201
90 ~ 120 days		29,550			28,230
120 days ~ 1 year		86,417			51,945
Over 1 year		204,892			206,822

		8,021,183			7,929,247
Less: allowance for doubtful accounts		(201,402	)		(205,339	)

	W	7,819,781			7,723,908

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

(5)

Changes in the allowance for doubtful accounts for the nine-month periods ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022						December 31, 2021
	Trade receivables			Other receivables			Trade receivables			Other receivables

Beginning balance	W	205,339			82,710			208,990			132,379
Bad debts expense		9,557			19			19,039			18,411
Write-off		(11,464	)		(848	)		(21,809	)		(58,762	)
Reversal		(1,918	)		(4,555	)		(1,071	)		(79	)
Others		(112	)		8,098			190			(9,239	)


Ending balance	W	201,402			85,424			205,339			82,710

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

9.	Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate	W	70,550		127,554		629		206,160
Cooperative		—		6,325		—		5,797
Others (*)		1,023,596		175,582		360,204		202,003

		1,094,146		309,461		360,833		413,960

Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives		—		262,063		—		258,071

	W	1,094,146		571,524		360,833		672,031

(*)	‘Others’ include MMT, etc.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income

(1)

Changes in financial assets at fair value through other comprehensive income for nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance

Equity securities
Listed	W	273,826		—		—			59,676			11,557			345,059
Unlisted		160,790		8,201		—			(253	)		(1,526	)		167,212

		434,616		8,201		—			59,423			10,031			512,271

Debt securities
Corporate bond		491		—		—			—			—			491

		435,107		8,201		—			59,423			10,031			512,762

Current financial assets at fair value through other comprehensive income	W	—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income		435,107		8,201		—			59,423			10,031			512,762

In millions of won	December 31, 2021
	Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance

Equity securities

Listed	W	194,669		1,500		(8,208	)		81,112			4,753			273,826
Unlisted		163,890		8,929		(13	)		(12,335	)		319			160,790

		358,559		10,429		(8,221	)		68,777			5,072			434,616

Debt securities
Corporate bond		—		500		—			—			(9	)		491

		358,559		10,929		(8,221	)		68,777			5,063			435,107

Current financial assets at fair value through other comprehensive income	W	—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income		358,559		10,929		(8,221	)		68,777			5,063			435,107

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)

Financial assets at fair value through other comprehensive income as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		66,338		66,338
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		107		107
SM Korea Line Corp.		180		0.00	%		1		—		—
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%		15		—		—
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		29		29
PAN Ocean Co., Ltd.		1,492		0.00	%		14		7		7
STX Heavy Industries Co., Ltd.		7,419		0.03	%		107		28		28
Codes Combine Co., Ltd.		291		0.00	%		1		—		—
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		178,675		178,675
Denison Mines Corp.		58,284,000		9.76	%		84,134		98,419		98,419
Fission Uranium Corp.		100,000		0.02	%		41		69		69
SangSangin Industry Co., Ltd.		5,831		0.01	%		38		4		4
Vitzrosys Co., Ltd.		399		0.00	%		2		1		1
EMnI Co., Ltd.		628		0.00	%		25		2		2
Vissem electronics, Co., Ltd.		229		0.00	%		11		1		1
KC Industry Co., Ltd.		139		0.00	%		6		—		—
Ihsung CNI Co., Ltd.		142,860		4.81	%		1,500		1,313		1,313
Aone Alform Co., Ltd.		2,672		0.08	%		19		66		66

							324,790		345,059		345,059

Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
Set Holding (*2)		1,100,220		2.50	%		229,255		131,037		131,037
SGC Greenpower		580,000		5.00	%		2,900		2,900		2,900
Le Soleil KHNP LLC		137,600		19.00	%		1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%		1,500		2,617		2,617
H Robotics Co., Ltd.		903,601		8.05	%		4,000		5,638		5,638
Good Tcells Co., Ltd.		11,364		0.34	%		500		456		456
IPSbio Co., Ltd.		1,975		3.13	%		1,000		1,000		1,000
Nine B Co., Ltd.		5,000		4.96	%		1,000		1,000		1,000
Orano Expansion		5,742,405		4.72	%		—		—		—
Common Computer Co., Ltd.		3,856		1.87	%		1,000		1,000		1,000
Fine Powerex Co., Ltd.		72,633		4.92	%		1,500		1,500		1,500
Electric Contractors’ Financial Cooperative Co., Ltd.		—		—			38		38		38
Information&Communication Financial Cooperative Co., Ltd.		—		—			15		15		15
Agencore Co., Ltd.		104,350		5.67	%		1,500		1,200		1,200
Samhong Machinery Co, Ltd.		476,192		19.23	%		5,000		5,000		5,000
Aloha Factory Co., Ltd.		2,970		3.61	%		1,000		1,000		1,000
Dailyshot Co., Ltd.		339		1.85	%		1,001		1,001		1,001
Hwan Young Steel Co., Ltd. and others (*3)		—		—			13,085		9,280		9,280

							270,870		167,212		167,212

Debt securities
Aron Flying Ship Co., Ltd. (*1)							500		491		491

						W	596,160		512,762		512,762

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

(*2)

The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the nine-month period ended September 30, 2022.

(*3)	Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 408 companies including Hwan Young Steel Co., Ltd.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

10.

Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)

Financial assets at fair value through other comprehensive income as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won	December 31, 2021
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		87,733		87,733
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		—		—
SM Korea Line Corp.		180		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		42		42
PAN Ocean Co., Ltd.		1,492		0.00	%		14		8		8
STX Heavy Industries Co., Ltd.		7,419		0.03	%		107		35		35
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		89,747		89,747
Denison Mines Corp.		58,284,000		9.76	%		84,134		94,376		94,376
Fission Uranium Corp.		100,000		0.02	%		41		73		73
SangSangin Industry Co., Ltd.		5,831		0.01	%		38		6		6
Vitzrosys Co., Ltd.		399		0.00	%		2		2		2
EMnI Co., Ltd.		628		0.00	%		25		2		2
Vissem electronics, Co., Ltd.		229		0.00	%		11		2		2
KC Industry Co., Ltd.		139		0.00	%		6		1		1
Ihsung CNI Co., Ltd.		142,860		4.81	%		1,500		1,779		1,779
Aone Alform Co., Ltd.		2,672		0.08	%		19		18		18

							324,790		273,826		273,826

Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
Set Holding (*2)		1,100,220		2.50	%		229,255		131,036		131,036
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,658		2,658
SGC Greenpower		580,000		5.00	%		2,900		2,900		2,900
Le Soleil KHNP LLC		137,600		19.00	%		1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%		1,500		2,618		2,618
H Robotics Co., Ltd.		903,601		8.05	%		4,000		5,639		5,639
Good Tcells Co., Ltd.		11,364		0.34	%		500		457		457
IPSbio Co., Ltd.		1,975		3.13	%		1,000		1,000		1,000
Nine B Co., Ltd.		5,000		4.96	%		1,000		1,000		1,000
Orano Expansion		5,742,405		4.72	%		—		—		—
Common Computer Co., Ltd.		3,856		1.87	%		1,000		1,000		1,000
Fine Powerex Co., Ltd.		72,633		4.92	%		1,500		1,500		1,500
Electric Contractors’ Financial Cooperative Co., Ltd.		—		—			38		38		38
Information&Communication Financial Cooperative Co., Ltd.		—		—			15		15		15
Hwan Young Steel Co., Ltd. and others (*3)		—		—			12,008		8,399		8,399

							263,904		160,790		160,790

Debt securities
Aron Flying Ship Co., Ltd. (*1)							500		491		491

						W	589,194		435,107		435,107

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

(*2)

(*3)	Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 372 companies including Hwan Young Steel Co., Ltd.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

11.

Financial Assets at Amortized Cost

Financial assets at amortized cost as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value

Government bonds	W	1,950		—		—		—		1,950
Others		30,100		—		—		—		30,100


	W	32,050		—		—		—		32,050


Current	W	21,940		—		—		—		21,940
Non-current		10,110		—		—		—		10,110


In millions of won	December 31, 2021
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value

Government bonds	W	1,308		—		—		—		1,308
Others		23,965		—		—		—		23,965


	W	25,273		—		—		—		25,273


Current	W	15,422		—		—		—		15,422
Non-current		9,851		—		—		—		9,851

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives

(1)

Derivatives as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Derivative assets
Currency forward	W	22,360		32,235		559		6,899
Currency swap		471,139		1,771,018		125,877		506,957
Interest rate swap		3,845		133,010		502		6,980
Others		—		7,622		—		9

	W	497,344		1,943,885		126,938		520,845

Derivative liabilities
Currency forward	W	319		—		301		—
Currency swap		5,093		26,834		4,446		16,708
Interest rate swap		—		19,337		2,544		28,138
Others (*1,2,3)		—		26,110		—		25,894

	W	5,412		72,281		7,291		70,740

(*1)	The Group has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’ (See note 46).

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

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives, Continued

(2)

Currency forward contracts which are not designated as hedging instruments as of September 30, 2022 are as follows:

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


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

Nonghyup Bank		2022.09.16		2022.10.12	W	1,468	USD	1,053	W	1,393.75
Kookmin Bank		2022.09.19		2022.10.12		3,940	USD	2,835		1,389.53
Nonghyup Bank		2022.09.20		2022.10.12		10,060	USD	7,244		1,388.70
Hana Bank		2022.09.20		2022.10.12		3,780	USD	2,722		1,388.90
Kookmin Bank		2022.09.20		2022.10.13		55,538	USD	40,000		1,388.46
Woori Bank		2022.09.20		2022.10.13		49,708	USD	35,801		1,388.45
JP Morgan		2022.09.29		2022.10.27		21,579	USD	15,000		1,438.60
Kookmin Bank		2022.09.23		2022.10.25		21,130	USD	15,000		1,408.68
Korea Development Bank		2022.09.23		2022.10.24		21,141	USD	15,000		1,409.40
Mizuho Bank		2022.09.23		2022.10.19		14,047	USD	10,000		1,404.70
Mizuho Bank		2022.09.30		2022.11.01		21,460	USD	15,000		1,430.66
Morgan Stanley		2022.09.23		2022.10.20		28,121	USD	20,000		1,406.05
Morgan Stanley		2022.09.30		2022.11.02		21,464	USD	15,000		1,430.95
Nonghyup Bank		2022.09.29		2022.10.28		21,593	USD	15,000		1,439.50
Standard Chartered		2022.09.27		2022.10.26		22,795	USD	16,000		1,424.70
Busan Bank		2022.09.23		2022.10.21		21,093	USD	15,000		1,406.20
Busan Bank		2022.09.30		2022.11.03		21,426	USD	15,000		1,428.37
Hana Bank		2022.09.29		2022.10.29		21,582	USD	15,000		1,438.80
MUFG		2022.09.28		2022.10.06		28,729	USD	20,000		1,436.47
Busan Bank		2022.09.29		2022.10.06		11,480	USD	8,000		1,434.94
JP Morgan		2022.09.30		2022.10.04		13,919	USD	10,000		1,391.90
JP Morgan		2022.09.27		2022.11.30		7,115	USD	5,000		1,423.00
JP Morgan		2022.09.27		2022.11.14		7,111	USD	5,000		1,422.15
Standard Chartered		2022.09.30		2022.10.04		6,975	USD	5,000		1,395.00
Standard Chartered		2022.09.16		2022.11.18		6,967	USD	5,000		1,393.40
Standard Chartered		2022.09.22		2022.11.25		13,921	USD	10,000		1,392.10
MUFG		2022.09.16		2022.11.21		8,319	USD	6,000		1,386.50
MUFG		2022.09.30		2022.11.30		7,139	USD	5,000		1,427.80
Mizuho Bank		2022.09.16		2022.10.04		27,786	USD	20,000		1,389.30
Mizuho Bank		2022.09.26		2022.11.28		5,708	USD	4,000		1,427.05
Mizuho Bank		2022.09.26		2022.11.11		7,135	USD	5,000		1,426.95
Mizuho Bank		2022.09.27		2022.10.28		14,249	USD	10,000		1,424.94
Mizuho Bank		2022.09.30		2022.10.27		7,138	USD	5,000		1,427.65
Nonghyup Bank		2022.09.27		2022.11.24		14,250	USD	10,000		1,425.00
Busan Bank		2022.05.30		2022.11.08		12,393	USD	10,000		1,239.30
Busan Bank		2022.09.19		2022.10.21		8,348	USD	6,000		1,391.40
SMBC		2022.09.20		2022.10.26		27,764	USD	20,000		1,388.21
MUFG		2022.09.16		2022.10.21		13,948	USD	10,000		1,394.80
Mizuho Bank		2022.09.16		2022.10.21		32,578	USD	23,451		1,389.20
Mizuho Bank		2022.09.23		2022.10.26		14,063	USD	10,000		1,406.25
Mizuho Bank		2022.09.23		2022.10.26		14,048	USD	10,000		1,404.79
JP Morgan		2022.09.16		2022.10.21		13,945	USD	10,000		1,394.50
JP Morgan		2022.09.14		2022.10.13		13,897	USD	10,000		1,389.70
JP Morgan		2022.09.22		2022.10.21		27,818	USD	20,000		1,390.90
HSBC		2020.10.19		2024.10.29		140,913	USD	125,000		1,127.30
HSBC		2022.09.19		2022.10.21		13,905	USD	10,000		1,390.47
Shinhan Bank		2022.09.22		2022.11.25		24,813	USD	17,668		1,404.45
MUFG		2022.09.23		2022.11.25		28,126	USD	20,000		1,406.30
HSBC		2022.09.23		2022.11.25		21,073	USD	15,000		1,404.88
Shinhan Bank		2022.09.23		2022.11.25		21,103	USD	15,000		1,406.85
Hana Bank		2022.03.08		2022.10.07		2,023	EUR	1,493		1,355.60

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives, Continued

(3)

Currency swap contracts which are not designated as hedging instruments as of September 30, 2022 are as follows:

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


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

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
Woori Bank	2021~2026		118,170		USD 100,000	1.11%	1.13%		1,181.70
Korea Development Bank	2021~2026		118,170		USD 100,000	1.11%	1.13%		1,181.70
Hana Bank	2021~2026		118,170		USD 100,000	1.11%	1.13%		1,181.70
Hana Bank	2022~2025		385,800		USD 300,000	3.11%	3.63%		1,286.00
Woori Bank	2022~2025		257,200		USD 200,000	3.12%	3.63%		1,286.00
JP Morgan	2022~2027		128,600		USD 100,000	3.56%	4.00%		1,286.00
Woori Bank	2022~2027		128,600		USD 100,000	3.56%	4.00%		1,286.00
Kookmin Bank	2022~2027		128,600		USD 100,000	3.56%	4.00%		1,286.00
Nomura	2015~2025		111,190		USD 100,000	2.60%	3.25%		1,111.90
Korea Development Bank	2015~2025		111,190		USD 100,000	2.62%	3.25%		1,111.90
Woori Bank	2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Hana Bank	2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Woori Bank	2017~2027		111,610		USD 100,000	2.25%	3.13%		1,116.10
Korea Development Bank	2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Hana Bank	2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Korea Development Bank	2018~2028		108,600		HKD 800,000	2.69%	3.35%		135.75
Shinhan Bank	2018~2028		115,387		HKD 850,000	2.66%	3.35%		135.75
Korea Development Bank	2018~2023		170,280		USD 150,000	2.15%	3.75%		1,135.20
Woori Bank	2018~2023		170,280		USD 150,000	2.18%	3.75%		1,135.20
Hana Bank	2018~2023		113,520		USD 100,000	2.17%	3.75%		1,135.20
Shinhan Bank	2018~2023		227,040		USD 200,000	2.17%	3.75%		1,135.20
Citibank	2019~2024		239,956		CHF 200,000	1.44%	0.00%		1,199.78
Korea Development Bank	2019~2027		119,978		CHF 100,000	1.43%	0.05%		1,199.78
Woori Bank	2021~2026		222,800		USD 200,000	0.93%	1.25%		1,114.00
Shinhan Bank	2021~2026		111,400		USD 100,000	0.92%	1.25%		1,114.00
Korea Development Bank	2021~2026		111,400		USD 100,000	0.93%	1.25%		1,114.00
Nonghyup Bank	2021~2026		111,400		USD 100,000	0.93%	1.25%		1,114.00
Woori Bank	2022~2027		262,000		USD 200,000	3.62%	4.25%		1,310.00
Export-Import Bank of Korea	2022~2027		131,000		USD 100,000	3.63%	4.25%		1,310.00
Kookmin Bank	2022~2027		131,000		USD 100,000	3.62%	4.25%		1,310.00
Hana Bank	2022~2027		131,000		USD 100,000	3.61%	4.25%		1,310.00
Korea Development Bank	2022~2027		262,000		USD 200,000	3.63%	4.25%		1,310.00
HSBC	2019~2024		USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%	USD	0.69

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives, Continued

(4)

Currency swap contracts which are designated as hedging instruments as of September 30, 2022 are as follows:

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


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

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
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
Kookmin Bank	2021~2026		114,230		USD 100,000	1.27%	1.25%		1,142.30
Korea Development Bank	2021~2026		114,230		USD 100,000	1.27%	1.25%		1,142.30
Hana Bank	2021~2026		114,230		USD 100,000	1.27%	1.25%		1,142.30
Korea Development Bank	2022~2027		123,710		USD 100,000	3.41%	3.63%		1,237.10
Woori Bank	2022~2027		123,710		USD 100,000	3.41%	3.63%		1,237.10
JP Morgan	2022~2027		123,710		USD 100,000	3.41%	3.63%		1,237.10
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	2022~2025		128,560		USD 100,000	3.37%	4.13%		1,285.60
Hana Bank	2022~2025		128,560		USD 100,000	3.37%	4.13%		1,285.60
Kookmin Bank	2022~2025		128,560		USD 100,000	3.37%	4.13%		1,285.60
Woori Bank	2021~2026		220,600		USD 200,000	0.47%	0.75%		1,103.00
Shinhan Bank	2021~2026		220,600		USD 200,000	0.47%	0.75%		1,103.00
Hana Bank	2021~2026		55,150		USD 50,000	0.48%	0.75%		1,103.00
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
JP Morgan	2022~2025		126,180		USD 100,000	2.80%	3.60%		1,261.80
Hana Bank	2022~2025		126,180		USD 100,000	2.80%	3.60%		1,261.80
Korea Development Bank	2022~2025		252,360		USD 200,000	2.83%	3.60%		1,261.80
Woori Bank	2022~2025		126,180		USD 100,000	2.85%	3.60%		1,261.80

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives, Continued

(5)

Interest rate swap contracts which are not designated as hedging instruments as of September 30, 2022 are as follows:


In millions of won
Counterparty	Contract year			Contract interest rate per annum
Counterparty	Contract year	Contract amount		Pay	Receive

Nomura (*1)	2018~2038	W	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%
Shinhan Bank	2021~2025		100,000	2.32%	3M CD + 0.43%
Hana Bank	2022~2027		200,000	3.02%	3M CD + 0.61%
Hana Bank	2022~2027		200,000	3.04%	3M CD + 0.58%
Hana Bank	2022~2027		250,000	3.38%	3M CD + 0.59%
Nomura	2022~2027		200,000	3.55%	3M CD + 0.60%
Shinhan Bank	2022~2027		150,000	3.53%	3M CD + 0.55%
Hana Bank	2022~2027		200,000	3.70%	3M CD + 0.59%
Nomura	2022~2027		300,000	3.89%	3M CD + 0.67%
Hana Bank	2022~2027		200,000	3.93%	3M CD + 0.67%
Nomura	2022~2027		200,000	3.80%	3M CD + 0.68%
Nomura	2022~2027		300,000	4.04%	3M CD + 0.60%
Hana Bank	2022~2027		100,000	4.68%	3M CD + 1.04%
Hana Bank	2022~2027		100,000	5.45%	3M CD + 1.20%
Nomura	2017~2032		52,457	3M Libor + 2.22%	2.60%
Nomura	2017~2032		59,423	3M Libor + 2.24%	2.62%
Nomura (*2)	2021~2041		30,000	1.84%	2.60%
Nomura (*3)	2021~2041		50,000	1.87%	2.38%

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

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

(*3)	1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(6)

Interest rate swap contracts which are designated as hedging instruments as of September 30, 2022 are as follows:


In thousands of USD
Counterparty	Contract year			Contract interest rate per annum
Counterparty	Contract year	Contract amount		Pay	Receive

Export-Import Bank of Korea	2015~2031	USD	15,893	2.67%	6M USD Libor
ING Bank	2015~2031	USD	7,861	2.67%	6M USD Libor
BNP Paribas	2015~2031	USD	7,861	2.67%	6M USD Libor
BNP Paribas	2009~2027	USD	56,182	4.16%	6M USD Libor
KFW	2009~2027	USD	56,182	4.16%	6M USD Libor
Export-Import Bank of Korea	2016~2036	USD	68,470	3.00%	6M USD Libor

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

12.

Derivatives, Continued

(7)

Gain and loss on valuation and transaction of derivatives for the three and nine-month periods ended September 30, 2022 and 2021 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):


In millions of won	Net income effects of valuation gain (loss)								Net income effects of transaction gain (loss)												Accumulated other *comprehensive income (loss) ()**
	September 30, 2022				September 30, 2021				September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended

Currency forward	W	21,986		44,504		9,951		38,357		75,062			107,172			20,902			28,534			—			—			—			—
Currency swap		1,178,727		1,888,889		445,178		765,414		137,352			216,948			26,078			53,315			(73,080	)		(116,149	)		(100,369	)		(45,284	)
Interest rate swap		46,926		121,981		10,910		25,413		(4,203	)		(11,465	)		(3,064	)		(9,906	)		4,941			21,384			2,511			9,097

	W	1,247,639		2,055,374		466,039		829,184		208,211			312,655			43,916			71,943			(68,139	)		(94,765	)		(97,858	)		(36,187	)

(*)	For the nine-month periods ended September 30, 2022 and 2021, the net loss on valuation of derivatives applying cash flow hedge accounting of W43,541 and W15,789 million, net of tax, are included in other comprehensive loss, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

13.

Other Financial Assets

(1)

Other financial assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022						December 31, 2021
	Current			Non-current			Current			Non-current

Loans	W	110,025			1,002,473			88,406			903,397
Less: Allowance for doubtful accounts		(20	)		(52,645	)		(10	)		(52,667	)
Less: Present value discount		(949	)		(33,353	)		(807	)		(29,248	)

		109,056			916,475			87,589			821,482

Long-term / short-term financial instruments		633,061			638,062			1,278,014			450,494


	W	742,117			1,554,537			1,365,603			1,271,976

(2)

Loans as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Face value		Allowance for doubtful accounts			Present value discount			Carrying value

Short-term loans
Loans for tuition	W	29,964		—			(949	)		29,015
Loans for housing		28,431		—			—			28,431
Other loans		51,630		(20	)		—			51,610

		110,025		(20	)		(949	)		109,056

Long-term loans
Loans for tuition		444,985		(37,783	)		(33,353	)		373,849
Loans for housing		308,448		—			—			308,448
Loans for related parties		210,562		(14,862	)		—			195,700
Other loans		38,478		—			—			38,478

		1,002,473		(52,645	)		(33,353	)		916,475


	W	1,112,498		(52,665	)		(34,302	)		1,025,531


In millions of won	December 31, 2021
	Face value		Allowance for doubtful accounts			Present value discount			Carrying value

Short-term loans
Loans for tuition	W	28,975		—			(807	)		28,168
Loans for housing		25,750		—			—			25,750
Other loans		33,681		(10	)		—			33,671

		88,406		(10	)		(807	)		87,589

Long-term loans
Loans for tuition		431,002		(37,783	)		(29,248	)		363,971
Loans for housing		282,833		—			—			282,833
Loans for related parties		150,541		(14,861	)		—			135,680
Fisheries loan		203		—			—			203
Other loans		38,818		(23	)		—			38,795

		903,397		(52,667	)		(29,248	)		821,482


	W	991,803		(52,677	)		(30,055	)		909,071

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

13.

Other Financial Assets, Continued

(3)

Changes in the allowance for doubtful accounts of loans for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021

Beginning balance	W	52,677			20,267
Bad debts expense		—			30,942
Others		(12	)		1,468


Ending balance	W	52,665			52,677

(4)

Long-term and short-term financial instruments as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current

Time deposits	W	428,567		118,471		976,899		103,607
Others		204,494		519,591		301,115		346,887


	W	633,061		638,062		1,278,014		450,494

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

14.

Inventories

Inventories as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Acquisition cost		Valuation allowance			Book value

Raw materials	W	4,243,420		(1,300	)		4,242,120
Merchandises		3,573		—			3,573
Work-in-progress		175,965		(714	)		175,251
Finished goods		40,327		—			40,327
Supplies		2,783,552		(12,673	)		2,770,879
Inventories-in-transit		2,270,803		—			2,270,803
Other inventories		15,713		—			15,713


	W	9,533,353		(14,687	)		9,518,666


In millions of won	December 31, 2021
	Acquisition cost		Valuation allowance			Book value

Raw materials	W	3,655,588		(1,247	)		3,654,341
Merchandises		512		—			512
Work-in-progress		180,220		—			180,220
Finished goods		27,254		—			27,254
Supplies		2,541,028		(3,869	)		2,537,159
Inventories-in-transit		1,195,148		—			1,195,148
Other inventories		13,548		—			13,548


	W	7,613,298		(5,116	)		7,608,182

The reversal of the allowance for loss on inventory valuation deducted from the cost of sales for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 amounts to W840 million and W11,422 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 were W10,411 million and W7,761 million, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

15.

Non-Financial Assets

Non-financial assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current

Advanced payments	W	196,710		52,104		161,466		124,305
Prepaid expenses		412,737		156,468		756,729		151,095
Others (*)		1,099,702		98,143		840,796		89,418


	W	1,709,149		306,715		1,758,991		364,818

(*)	Details of others as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current

Greenhouse gas emissions rights	W	285,585		—		524,658		—
Other quick assets		814,117		98,143		316,138		89,418


	W	1,099,702		98,143		840,796		89,418

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries

(1)

Consolidated subsidiaries as of September 30, 2022 and December 31, 2021 are as follows:


Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2022			December 31, 2021
Korea Hydro & Nuclear Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea South-East Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Midland Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Western Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Southern Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea East-West Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KEPCO Engineering & Construction Company, Inc. (*1)	Engineering and construction for utility plant and others	Korea		65.77	%		65.77	%
KEPCO Plant Service & Engineering Co., Ltd.	Utility plant maintenance and others	Korea		51.00	%		51.00	%
KEPCO Nuclear Fuel Co., Ltd.	Nuclear fuel	Korea		96.36	%		96.36	%
KEPCO KDN Co., Ltd.	Electric power information technology and others	Korea		100.00	%		100.00	%
KEPCO International HongKong Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO International Philippines Inc.	Holding company	Philippines		100.00	%		100.00	%
KEPCO Gansu International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO Philippines Holdings Inc.	Holding company	Philippines		100.00	%		100.00	%
KEPCO Philippines Corporation	Operation of utility plant	Philippines		100.00	%		100.00	%
KEPCO Ilijan Corporation	Construction and operation of utility plant	Philippines		51.00	%		51.00	%
KEPCO Lebanon SARL	Operation of utility plant	Lebanon		100.00	%		100.00	%
KEPCO Neimenggu International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO Shanxi International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KOMIPO Global Pte Ltd.	Holding company	Singapore		100.00	%		100.00	%
KEPCO Netherlands B.V.	Holding company	Netherlands		100.00	%		100.00	%
KEPCO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSEP Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KEPCO Middle East Holding Company	Holding company	Bahrain		100.00	%		100.00	%
Qatrana Electric Power Company	Construction and operation of utility plant	Jordan		80.00	%		80.00	%
KHNP Canada Energy Ltd.	Holding company	Canada		100.00	%		100.00	%
KEPCO Bylong Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
Korea Waterbury Uranium Limited Partnership	Resources development	Canada		80.00	%		80.00	%
KEPCO Holdings de Mexico	Holding company	Mexico		100.00	%		100.00	%
KST Electric Power Company, S.A.P.I. de C.V.	Construction and operation of utility plant	Mexico		56.00	%		56.00	%
KEPCO Energy Service Company	Operation of utility plant	Mexico		100.00	%		100.00	%
KEPCO Netherlands S3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
PT. KOMIPO Pembangkitan Jawa Bali	Operation of utility plant	Indonesia		51.00	%		51.00	%
PT. Cirebon Power Service (*2)	Operation of utility plant	Indonesia		27.50	%		27.50	%
KOWEPO International Corporation	Operation of utility plant	Philippines		99.99	%		99.99	%
KOSPO Jordan LLC	Operation of utility plant	Jordan		100.00	%		100.00	%
EWP America Inc.	Holding company	USA		100.00	%		100.00	%
EWP Renewable Corporation	Holding company	USA		100.00	%		100.00	%
KNF Canada Energy Limited	Holding company	Canada		100.00	%		100.00	%
EWP Barbados 1 SRL	Holding company	Barbados		100.00	%		100.00	%
California Power Holdings, LLC	Power generation	USA		100.00	%		100.00	%
Gyeonggi Green Energy Co., Ltd.	Power generation	Korea		62.01	%		62.01	%
PT. Tanggamus Electric Power	Power generation	Indonesia		52.50	%		52.50	%
Gyeongju Wind Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KOMIPO America Inc.	Holding company	USA		100.00	%		100.00	%
EWPRC Biomass Holdings, LLC	Holding company	USA		—			100.00	%
PT. EWP Indonesia	Holding company	Indonesia		99.96	%		99.96	%
KEPCO Netherlands J3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
Korea Offshore Wind Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Global One Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Global Energy Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Mira Power Limited (*3)	Power generation	Pakistan		76.00	%		76.00	%

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(1)

Consolidated subsidiaries as of September 30, 2022 and December 31, 2021 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2022			December 31, 2021
KOSEP Material Co., Ltd.	Recycling fly ashes	Korea		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd. (*4)	RDF power generation	Korea		85.03	%		85.03	%
KEPCO KPS Philippines Corp.	Utility plant maintenance and others	Philippines		99.99	%		99.99	%
KOSPO Chile SpA	Holding company	Chile		100.00	%		100.00	%
PT. KOWEPO Sumsel Operation And Maintenance Services	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
Hee Mang Sunlight Power Co., Ltd.	Operation of utility plant	Korea		100.00	%		100.00	%
Fujeij Wind Power Company	Operation of utility plant	Jordan		100.00	%		100.00	%
KOSPO Youngnam Power Co., Ltd. (*5)	Operation of utility plant	Korea		50.00	%		50.00	%
Chitose Solar Power Plant LLC	Power generation	Japan		65.00	%		65.00	%
KEPCO Energy Solution Co., Ltd.	Energy service	Korea		100.00	%		100.00	%
KEPCO Solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KOSPO Power Services Ltda.	Utility plant maintenance and others	Chile		65.00	%		65.00	%
Energy New Industry Specialized Investment Private Investment Trust	Holding company	Korea		99.01	%		99.01	%
KOEN Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
EWP Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Lao International	Utility plant maintenance and others	Laos		100.00	%		100.00	%
KEPCO US Inc.	Holding company	USA		100.00	%		100.00	%
KEPCO Alamosa LLC	Holding company	USA		50.10	%		50.10	%
KEPCO Solar of Alamosa LLC	Power generation	USA		—			100.00	%
KEPCO Mangilao Holdings LLC	Holding company	USA		100.00	%		100.00	%
Mangilao Investment LLC	Holding company	USA		80.06	%		100.00	%
KEPCO Mangilao Solar, LLC	Power generation	USA		100.00	%		100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	Korea		79.03	%		79.03	%
PT. Siborpa Eco Power	Construction and operation of utility plant	Indonesia		55.00	%		55.00	%
BSK E-New Industry Fund VII	Holding company	Korea		81.67	%		81.67	%
e-New Industry LB Fund 1	Holding company	Korea		76.11	%		76.11	%
Songhyun e-New Industry Fund	Holding company	Korea		80.65	%		80.65	%
BSK E-New Industry Fund X	Holding company	Korea		66.80	%		66.80	%
PT. Korea Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KOLAT SpA	Utility plant maintenance and others	Chile		100.00	%		100.00	%
KEPCO California, LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mojave Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Incheon Fuel Cell Co., Ltd.	Power generation	Korea		60.00	%		60.00	%
KOEN Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOMIPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOWEPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
EWP Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
PT. KOMIPO Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KNF Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO USA Inc.	Holding company	USA		100.00	%		100.00	%
Nambu USA LLC	Holding company	USA		100.00	%		100.00	%
Tamra Offshore Wind Power Co., Ltd.	Power generation	Korea		63.00	%		63.00	%
KEPCO MCS Co., Ltd.	Electric meter reading and others	Korea		100.00	%		100.00	%
KEPCO FMS Co., Ltd.	Security service and others	Korea		100.00	%		100.00	%
Firstkeepers Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Secutec Co., Ltd.	Security service	Korea		100.00	%		100.00	%
SE Green Energy Co., Ltd.	Power generation	Korea		84.80	%		84.80	%
KEPCO Mangilao America LLC (*6)	Holding company	USA		100.00	%		100.00	%
Mangilao Intermediate Holdings LLC	Holding company	USA		100.00	%		100.00	%
KEPCO CSC Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOAK Power Limited	Hydro power facility maintenance	Pakistan		100.00	%		100.00	%
KOMIPO Europe B.V.	Holding company	Netherlands		100.00	%		100.00	%
Haenanum Energy Fund	Holding company	Korea		99.64	%		99.64	%

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(1)

Consolidated subsidiaries as of September 30, 2022 and December 31, 2021 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2022			December 31, 2021
Paju Ecoenergy Co., Ltd.	Power generation	Korea		89.00	%		89.00	%
Guam Ukudu Power LLC	Power generation	USA		100.00	%		100.00	%
TS Energy No. 25 Co., Ltd.	Power generation	Korea		90.00	%		90.00	%
KPS Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KEPCO E&C Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Moha solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Ogiri Solar Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KHNP USA LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Vanphong Power Service LLC	Utility plant maintenance and others	Vietnam		100.00	%		100.00	%
Energy Innovation Fund I	Holding company	Korea		71.91	%		71.91	%
KHNP Chile SpA	Holding company	Chile		100.00	%		100.00	%
Yeong Yang Apollon Photovoltaic Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Corporation Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
SolarVader Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Innovation Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Horus Photovoltaic Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Solar Management Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
LSG Hydro Power Limited	Holding company	Pakistan		99.80	%		99.80	%
KOEN Bio Co., Ltd.	Wood pellet utilization business	Korea		70.00	%		70.00	%
KOMIPO Energy Solution America, LLC	Holding company	USA		100.00	%		100.00	%
Elara Investment Holdings, LLC (*7)	Holding company	USA		0.10	%		0.10	%
Elara Equity Holdings, LLC	Holding company	USA		54.00	%		54.00	%
Elara Class B Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Elara Class B Member, LLC	Holding company	USA		100.00	%		100.00	%
Elara Development Holdings, LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Development, LLC (formerly, Elara Development, LLC)	Holding company	USA		100.00	%		100.00	%
Elara Energy Holdings, LLC (*7)	Holding company	USA		43.94	%		43.94	%
Elara Energy Project, LLC	Power generation	USA		100.00	%		100.00	%
KOMIPO Iberian Solar Group, S.L.U.	Holding company	Spain		100.00	%		100.00	%
Jeongam Wind Power Co., Ltd.	Power generation	Korea		80.00	%		80.00	%
KOWEPO Europe B.V.	Holding company	Netherlands		100.00	%		100.00	%
CVS Equity Holdings, LLC	Holding company	USA		100.00	%		100.00	%
CVS Class B Holdings, LLC	Holding company	USA		100.00	%		100.00	%
CVS Development Holdings, LLC	Holding company	USA		100.00	%		100.00	%
CVS Development, LLC	Holding company	USA		100.00	%		100.00	%
CVS Class B Member, LLC	Holding company	USA		100.00	%		100.00	%
CVS Energy Holdings, LLC	Holding company	USA		81.80	%		100.00	%
Concho Valley Energy, LLC	Holding company	USA		100.00	%		100.00	%
Concho Valley Solar, LLC	Power generation	USA		100.00	%		100.00	%
Yeongdeok Sunrise Wind Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KHNP Spain, S.L.	Holding company	Spain		100.00	%		100.00	%
UI Carbon-Neutrality Fund	Holding company	Korea		78.97	%		—
KA Power Limited	Power generation	Pakistan		100.00	%		—
Seobusambo highway photovoltaics Co., Ltd.	Power generation	Korea		80.00	%		—
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.) (*8)	Power generation	Korea		100.00	%		—
EWP Australia Pty., Ltd.	Holding company	Australia		100.00	%		—
Columboola Solar Farm Hold Co Pty., Ltd. (*9)	Power generation	Australia		74.04	%		—
Digital Innovation Growth Fund (*10)	Holding company	Korea		76.92	%		—
J Wind First, LLC (*11)	Company specializing in liquidization	Korea		—			—

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(1)

Consolidated subsidiaries as of September 30, 2022 and December 31, 2021 are as follows, continued:

(*1)	Considering treasury stocks, the effective percentage of ownership is 66.08%. The Group is planning to sell part of its shares (14.77%) based on the resolution of the board of directors on June 24, 2022.

(*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 under the shareholders’ agreement.

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

(*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)	The subsidiary is included in the consolidated financial statements as the Group owns 50%+1 stake and has the ability to appoint a majority of the board members under the shareholders’ agreement.

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

(*7)	The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group has control over the board of directors under the shareholders’ agreement.

(*8)	For the nine-month period ended September 30, 2022, the Group included Western Power Changgi Solar Co., Ltd. as a subsidiary, considering that it acquired control over the entity after the entity undertook selective reduction of capital.

(*9)	Excluding preferred stocks, the percentage of ownership with voting rights is 100%.

(*10)

The entity was transferred from an associate to a subsidiary due to changes in the consolidated scope during the nine-month period ended September 30, 2022

(*11)

Although the Group does not hold a stake as of September 30, 2022, considering the purpose and design of the structured entity, the Group is exposed to volatility in the profits of the structured entity. In addition, Group has the ability to direct activities that can most significantly affect the operations of the structured entity, so it has been determined that the Group has control over the entity.

(2)

Subsidiaries included in and excluded from consolidation during the nine-month period ended September 30, 2022 are as follows:


Subsidiaries		Reason
UI Carbon-Neutrality Fund		Newly established
KA Power Limited		Newly established
Seobusambo highway photovoltaics Co., Ltd.		Newly established
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)		Change in the scope of consolidation
EWP Australia Pty., Ltd.		Newly established
Columboola Solar Farm Hold Co Pty., Ltd.		New investment
Digital Innovation Growth Fund		Change in the scope of consolidation
J Wind First, LLC		Newly established

Subsidiaries excluded from consolidation during the nine-month period ended September 30, 2022.


Subsidiaries		Reason
EWPRC Biomass Holdings, LLC		Liquidation
KEPCO Solar of Alamosa LLC		Disposal

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won
September 30, 2022
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	65,946,606		39,215,400		7,884,651		450,859
Korea South-East Power Co., Ltd.		12,349,404		6,909,007		6,417,959		(12,602	)
Korea Midland Power Co., Ltd.		14,360,296		10,307,883		6,119,431		(186,826	)
Korea Western Power Co., Ltd.		12,014,003		7,983,687		5,377,254		(92,127	)
Korea Southern Power Co., Ltd.		12,484,420		7,761,402		6,867,236		57,630
Korea East-West Power Co., Ltd.		11,039,068		5,721,445		5,068,482		177,596
KEPCO Engineering & Construction Company, Inc.		768,168		241,277		310,976		4,044
KEPCO Plant Service & Engineering Co., Ltd.		1,488,654		313,947		1,028,291		68,018
KEPCO Nuclear Fuel Co., Ltd.		869,755		413,784		221,017		29,984
KEPCO KDN Co., Ltd.		681,978		135,335		535,282		28,603
KEPCO International HongKong Ltd.		160,853		—		—		4,213
KEPCO International Philippines Inc.		137,496		471		—		3,174
KEPCO Gansu International Ltd.		8,073		677		—		(16	)
KEPCO Philippines Holdings Inc.		183,458		72		—		16,726
KEPCO Philippines Corporation		4,472		388		—		99
KEPCO Ilijan Corporation		291,841		14,036		22,848		19,001
KEPCO Lebanon SARL		2,147		11,864		—		30
KEPCO Neimenggu International Ltd.		294,756		3,908		—		978
KEPCO Shanxi International Ltd.		678,821		250,589		—		(8,316	)
KOMIPO Global Pte Ltd.		423,084		1,307		—		42,684
KEPCO Netherlands B.V.		167,484		253		—		8,598
KEPCO Australia Pty., Ltd.		604		12		—		78
KOSEP Australia Pty., Ltd.		71,519		11,502		37,841		18,338
KOMIPO Australia Pty., Ltd.		82,689		11,899		37,842		17,372
KOWEPO Australia Pty., Ltd.		81,667		10,190		37,841		16,759
KOSPO Australia Pty., Ltd.		71,259		10,186		37,841		18,537
KEPCO Middle East Holding Company		131,362		113,397		—		569
Qatrana Electric Power Company		584,372		306,642		18,305		15,712
KHNP Canada Energy Ltd.		114,721		36		—		69
KEPCO Bylong Australia Pty., Ltd.		47,887		490,770		—		(60,138	)
Korea Waterbury Uranium Limited Partnership		20,955		229		—		(82	)
KEPCO Holdings de Mexico		1,647		2,152		—		(574	)
KST Electric Power Company, S.A.P.I. de C.V.		740,672		540,860		189,536		16,323
KEPCO Energy Service Company		1,796		580		4,372		(369	)
KEPCO Netherlands S3 B.V.		65,400		65		—		3,401
PT. KOMIPO Pembangkitan Jawa Bali		22,303		5,369		17,597		5,866
PT. Cirebon Power Service		3,929		1,350		6,826		232
KOWEPO International Corporation		—		11		—		—
KOSPO Jordan LLC		54,071		28,717		12,372		4,080
EWP America Inc. (*1)		63,732		3,739		17,167		4,592
KNF Canada Energy Limited		2,371		29		—		(40	)
EWP Barbados 1 SRL		437,792		1,448		2,379		22,918
Gyeonggi Green Energy Co., Ltd.		226,268		220,433		80,296		(14,040	)
PT. Tanggamus Electric Power		256,750		183,530		6,478		6,431
Gyeongju Wind Power Co., Ltd.		95,286		56,215		16,279		5,837
KOMIPO America Inc. (*2)		683,075		337,561		11,072		(14,309	)
PT. EWP Indonesia		111,632		1,478		—		3,561
KEPCO Netherlands J3 B.V.		153,138		117		—		47
Korea Offshore Wind Power Co., Ltd.		368,700		188,682		37,138		8,987
Global One Pioneer B.V.		185		104		—		(54	)
Global Energy Pioneer B.V.		395		91		—		(47	)
Mira Power Limited		483,794		370,699		38,946		6,749
KOSEP Material Co., Ltd.		3,927		682		3,410		614
Commerce and Industry Energy Co., Ltd.		79,613		33,009		20,392		(3,168	)
KEPCO KPS Philippines Corp.		5,767		1,180		3,735		491
KOSPO Chile SpA		176,550		72,389		—		(219	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
September 30, 2022
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
PT. KOWEPO Sumsel Operation And Maintenance Services	W	131		293		—		—
Hee Mang Sunlight Power Co., Ltd.		5,721		2,488		677		265
Fujeij Wind Power Company		256,504		190,663		—		14,597
KOSPO Youngnam Power Co., Ltd.		423,086		314,411		363,591		7,694
Chitose Solar Power Plant LLC		114,270		98,312		11,324		1,332
KEPCO Energy Solution Co., Ltd.		316,808		2,799		26,823		2,978
KEPCO Solar Co., Ltd.		238,127		22,819		18,653		6,812
KOSPO Power Services Ltda.		5,727		2,170		13,256		1,214
Energy New Industry Specialized Investment Private Investment Trust (*3)		455,242		2,441		—		5,603
KOEN Bylong Pty., Ltd.		10		116		—		—
KOMIPO Bylong Pty., Ltd.		10		116		—		(19	)
KOWEPO Bylong Pty., Ltd.		9		102		—		(7	)
KOSPO Bylong Pty., Ltd.		40		162		—		(6	)
EWP Bylong Pty., Ltd.		8		59		—		—
KOWEPO Lao International		19,949		43		7,403		10,199
KEPCO US Inc.		1		—		—		(18,839	)
KEPCO Alamosa LLC		291		37		62		(35,956	)
KEPCO Mangilao Holdings LLC		93,114		39,498		251		44
Mangilao Investment LLC		327,196		36		—		(1	)
KEPCO Mangilao Solar, LLC		263,571		204,126		6,460		5,083
Jeju Hanlim Offshore Wind Co., Ltd.		120,679		47,487		—		(4,424	)
PT. Siborpa Eco Power		13,653		—		—		(28	)
PT. Korea Energy Indonesia		1,802		67		1,405		(214	)
KOLAT SpA		44,426		14,838		645		(97	)
KEPCO California, LLC		52,680		5,272		585		(167	)
KEPCO Mojave Holdings, LLC		110,579		85,520		—		(3,458	)
Incheon Fuel Cell Co., Ltd.		252,232		230,274		77,638		(244	)
KOEN Service Co., Ltd.		9,746		7,291		26,719		492
KOMIPO Service Co., Ltd.		5,793		5,204		25,632		680
KOWEPO Service Co., Ltd.		8,358		6,534		25,210		432
KOSPO Service Co., Ltd.		5,109		5,082		20,211		(743	)
EWP Service Co., Ltd.		4,621		3,507		18,486		446
PT. KOMIPO Energy Indonesia		1,968		165		112		(1,052	)
KNF partners Co., Ltd.		2,068		882		4,170		355
KOSPO USA Inc.		349,200		514		—		(1,649	)
Nambu USA LLC		336,739		—		—		570
Tamra Offshore Wind Power Co., Ltd.		134,832		98,866		13,394		1,323
KEPCO MCS Co., Ltd.		106,756		53,188		241,664		12,430
KEPCO FMS Co., Ltd.		20,094		18,724		74,790		(241	)
Firstkeepers Co., Ltd.		23,339		19,388		63,005		2,656
Secutec Co., Ltd.		15,981		10,877		51,976		1,258
SE Green Energy Co., Ltd.		147,489		113,531		35,511		313
KEPCO Mangilao America LLC		—		1		—		—
Mangilao Intermediate Holdings LLC		491,747		418,121		—		(4,616	)
KEPCO CSC Co., Ltd.		11,586		8,789		33,490		1,503
KOAK Power Limited		14,059		922		—		8
KOMIPO Europe B.V.		85,064		64		842		1,056

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
September 30, 2022
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Haenanum Energy Fund	W	7,425		3		—		(39	)
Paju Ecoenergy Co., Ltd.		60,622		3,280		14,863		1,347
Guam Ukudu Power LLC		218,079		224,539		—		(6,655	)
TS Energy No. 25 Co., Ltd.		315,001		291,098		5,732		3,508
KPS Partners Co., Ltd.		3,786		2,269		9,136		265
KEPCO E&C Service Co., Ltd.		5,533		2,285		12,063		1,083
Moha solar Co., Ltd.		32,743		33,848		169		21
Ogiri Solar Power Co., Ltd.		1,033		20		—		(27	)
KHNP USA LLC		1,463		48		827		443
KOMIPO Vanphong Power Service LLC		15,946		3,364		16,093		8,421
Energy Innovation Fund I		36,214		200		—		(734	)
KHNP Chile SpA		6,112		4,706		—		(11	)
Yeong Yang Apollon Photovoltaic Co., Ltd.		1,655		1,565		182		(52	)
Yeong Yang Corporation Co., Ltd.		1,648		1,554		180		(60	)
SolarVader Co., Ltd.		1,668		1,557		184		(36	)
Yeong Yang Innovation Co., Ltd.		1,648		1,555		176		(57	)
Yeong Yang Horus Photovoltaic Co., Ltd.		1,644		1,555		175		(59	)
Yeong Yang Solar Management Co., Ltd.		1,671		1,557		188		(35	)
LSG Hydro Power Limited		1		10		—		(10	)
KOEN Bio Co., Ltd.		311		209		476		(90	)
KOMIPO Iberian Solar Group, S.L.U.		83,360		69,941		—		(1,447	)
Jeongam Wind Power Co., Ltd.		83,378		69,682		8,317		1,106
KOWEPO Europe B.V.		43,761		2,554		—		742
Yeongdeok Sunrise Wind Power Co., Ltd.		20,479		3		—		(8	)
KHNP Spain, S.L.		3		—		—		(1	)
KA Power Limited		4,477		445		—		547
Seobusambo highway photovoltaics Co., Ltd.		3,630		1,109		—		(96	)
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)		46,005		43,697		4,814		(2,418	)
EWP Australia Pty., Ltd.		39,707		—		—		(3	)
Columboola Solar Farm Hold Co Pty., Ltd.		337,772		236,409		—		556
Digital Innovation Growth Fund		12,593		1		11		(266	)
J Wind First, LLC		25,546		25,546		112		—

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

(*2)	Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
Korea Hydro & Nuclear Power Co., Ltd.	W	64,638,690		38,361,337		9,324,391		302,232
Korea South-East Power Co., Ltd.		11,487,325		6,510,826		5,188,856		(58,096	)
Korea Midland Power Co., Ltd.		13,761,908		9,912,907		5,353,915		60,737
Korea Western Power Co., Ltd.		10,822,780		7,116,671		4,970,805		(171,562	)
Korea Southern Power Co., Ltd.		11,350,984		7,099,881		5,671,989		(113,352	)
Korea East-West Power Co., Ltd.		9,895,739		5,163,005		4,743,030		10,872
KEPCO Engineering & Construction Company, Inc.		705,043		191,592		433,127		16,452
KEPCO Plant Service & Engineering Co., Ltd.		1,420,705		311,607		1,375,668		98,132
KEPCO Nuclear Fuel Co., Ltd.		837,249		405,614		323,729		25,799
KEPCO KDN Co., Ltd.		721,634		189,242		673,261		67,244
KEPCO International HongKong Ltd.		128,968		—		—		341
KEPCO International Philippines Inc.		154,317		482		—		8,766
KEPCO Gansu International Ltd.		7,151		559		—		(25	)
KEPCO Philippines Holdings Inc.		191,757		128		—		60,192
KEPCO Philippines Corporation		6,122		19		—		(68	)
KEPCO Ilijan Corporation		259,069		38,555		60,532		12,981
KEPCO Lebanon SARL		1,729		9,794		—		(86	)
KEPCO Neimenggu International Ltd.		241,299		3,106		—		16,762
KEPCO Shanxi International Ltd.		551,407		207,844		—		3,526
KOMIPO Global Pte Ltd.		302,340		1,351		—		11,462
KEPCO Netherlands B.V.		133,610		866		—		5,395
KEPCO Australia Pty., Ltd.		481		11		—		25
KOSEP Australia Pty., Ltd.		44,798		5,561		22,013		8,268
KOMIPO Australia Pty., Ltd.		54,162		5,648		22,013		5,942
KOWEPO Australia Pty., Ltd.		54,564		4,766		22,013		7,387
KOSPO Australia Pty., Ltd.		43,886		4,502		22,013		5,940
KEPCO Middle East Holding Company		104,068		89,756		—		1,144
Qatrana Electric Power Company		480,809		262,725		21,368		19,156
KHNP Canada Energy Ltd.		109,326		25		—		29
KEPCO Bylong Australia Pty., Ltd.		44,319		394,349		—		(37,065	)
Korea Waterbury Uranium Limited Partnership		20,920		159		—		(57	)
KEPCO Holdings de Mexico		148		27		—		(8	)
KST Electric Power Company, S.A.P.I. de C.V.		584,625		435,796		151,467		18,499
KEPCO Energy Service Company		2,500		956		12,070		574
KEPCO Netherlands S3 B.V.		51,045		150		—		3,199
PT. KOMIPO Pembangkitan Jawa Bali		13,499		3,314		18,296		885
PT. Cirebon Power Service		2,545		631		8,664		505
KOWEPO International Corporation		—		10		—		—
KOSPO Jordan LLC		33,782		16,298		9,698		816
EWP America Inc. (*1)		46,687		1,278		18,335		6,807
KNF Canada Energy Limited		2,101		17		—		(43	)
EWP Barbados 1 SRL		354,024		1,172		2,861		16,168
Gyeonggi Green Energy Co., Ltd.		243,977		224,132		93,794		(5,588	)
PT. Tanggamus Electric Power		212,161		167,409		2,903		3,017
Gyeongju Wind Power Co., Ltd.		96,937		60,702		15,289		3,132
KOMIPO America Inc. (*2)		329,986		56,325		1,715		(1,311	)
PT. EWP Indonesia		47,031		1,226		—		4,615
KEPCO Netherlands J3 B.V.		151,478		172		—		27,365
Korea Offshore Wind Power Co., Ltd.		359,393		188,507		36,020		3,820
Global One Pioneer B.V.		119		116		—		(132	)
Global Energy Pioneer B.V.		293		131		—		(147	)
Mira Power Limited		424,183		311,459		70,287		34,018
KOSEP Material Co., Ltd.		3,405		842		4,518		442
Commerce and Industry Energy Co., Ltd.		85,315		35,543		30,531		1,345
KEPCO KPS Philippines Corp.		8,051		3,652		9,768		1,493
KOSPO Chile SpA		142,956		56,688		—		(851	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
PT. KOWEPO Sumsel Operation And Maintenance Services	W	116		259		—		—
Hee Mang Sunlight Power Co., Ltd.		6,242		3,272		499		47
Fujeij Wind Power Company		200,783		169,340		—		14,739
KOSPO Youngnam Power Co., Ltd.		393,745		292,765		318,770		6,339
Chitose Solar Power Plant LLC		125,578		109,470		16,630		1,794
KEPCO Energy Solution Co., Ltd.		317,676		4,938		21,423		3,104
KEPCO Solar Co., Ltd.		231,567		22,229		11,305		2,014
KOSPO Power Services Ltda.		8,007		5,800		21,133		(356	)
Energy New Industry Specialized Investment Private Investment Trust (*3)		336,932		28,536		19,405		11,116
KOEN Bylong Pty., Ltd.		8		86		—		—
KOMIPO Bylong Pty., Ltd.		8		86		—		(8	)
KOWEPO Bylong Pty., Ltd.		8		86		—		(18	)
KOSPO Bylong Pty., Ltd.		73		168		—		(20	)
EWP Bylong Pty., Ltd.		8		54		—		—
KOWEPO Lao International		12,974		70		8,543		5,681
KEPCO US Inc.		17,601		—		—		—
KEPCO Alamosa LLC		34,100		297		124		(62	)
KEPCO Solar of Alamosa LLC		57,104		41,953		8,008		(742	)
KEPCO Mangilao Holdings LLC		28,504		32,501		—		(556	)
Mangilao Investment LLC		43,459		29		—		(14	)
KEPCO Mangilao Solar, LLC		206,018		166,095		—		(865	)
Jeju Hanlim Offshore Wind Co., Ltd.		41,325		5,139		—		(2,893	)
PT. Siborpa Eco Power		11,306		—		—		(105	)
PT. Korea Energy Indonesia		1,917		215		1,681		37
KOLAT SpA		28,349		849		180		(464	)
KEPCO California, LLC		43,732		4,113		1,310		160
KEPCO Mojave Holdings, LLC		95,294		71,358		—		(4,254	)
Incheon Fuel Cell Co., Ltd.		259,111		236,901		46,034		962
KOEN Service Co., Ltd.		8,963		6,557		35,190		2,326
KOMIPO Service Co., Ltd.		4,384		4,475		32,323		(96	)
KOWEPO Service Co., Ltd.		7,289		5,869		31,700		303
KOSPO Service Co., Ltd.		5,762		4,990		26,257		31
EWP Service Co., Ltd.		5,483		5,455		24,957		14
PT. KOMIPO Energy Indonesia		2,996		395		2,077		106
KNF partners Co., Ltd.		1,800		969		5,664		152
KOSPO USA Inc.		286,081		293		—		968
Nambu USA LLC		277,698		—		—		568
Tamra Offshore Wind Power Co., Ltd.		146,736		106,961		21,731		5,168
KEPCO MCS Co., Ltd.		80,277		39,139		349,116		19,043
KEPCO FMS Co., Ltd.		17,188		15,577		94,210		214
Firstkeepers Co., Ltd.		17,152		16,041		77,189		19
Secutec Co., Ltd.		13,176		10,662		65,963		1,774
SE Green Energy Co., Ltd.		153,105		119,461		38,867		4,025
KEPCO Mangilao America LLC		2,173		1		—		—
Mangilao Intermediate Holdings LLC		220,690		205,421		—		(6,975	)
KEPCO CSC Co., Ltd.		8,093		6,799		41,854		(2,101	)
KOAK Power Limited		14,363		393		—		(551	)
KOMIPO Europe B.V.		70,431		97		402		(503	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(3)

Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
Haenanum Energy Fund	W	7,463		3		40		(74	)
Paju Ecoenergy Co., Ltd.		57,795		2,118		15,425		2,234
Guam Ukudu Power LLC		30,133		30,438		—		(2,030	)
TS Energy No. 25 Co., Ltd.		353,324		318,977		421		(7,525	)
KPS Partners Co., Ltd.		2,809		1,529		9,520		323
KEPCO E&C Service Co., Ltd.		4,054		1,889		15,985		1,242
Moha solar Co., Ltd.		32,808		33,933		48		(706	)
Ogiri Solar Power Co., Ltd.		1,041		1		—		9
KHNP USA LLC		766		10		1,001		267
KOMIPO Vanphong Power Service LLC		3,758		860		3,853		958
Energy Innovation Fund I		22,616		3,202		—		(888	)
KHNP Chile SpA		5,294		3,879		—		17
Yeong Yang Apollon Photovoltaic Co., Ltd.		1,775		1,632		5		(30	)
Yeong Yang Corporation Co., Ltd.		1,776		1,623		9		(19	)
SolarVader Co., Ltd.		1,772		1,627		—		(26	)
Yeong Yang Innovation Co., Ltd.		1,773		1,622		5		(21	)
Yeong Yang Horus Photovoltaic Co., Ltd.		1,771		1,624		9		(24	)
Yeong Yang Solar Management Co., Ltd.		1,774		1,625		—		(23	)
LSG Hydro Power Limited		1		—		—		—
KOEN Bio Co., Ltd.		394		199		51		(305	)
KOMIPO Iberian Solar Group, S.L.U.		70,993		56,707		—		1,354
Jeongam Wind Power Co., Ltd.		86,853		74,267		10,476		1,027
KOWEPO Europe B.V.		39,973		1,449		—		(744	)
Yeongdeok Sunrise Wind Power Co., Ltd.		21,252		768		—		(116	)
KHNP Spain, S.L.		5		—		—		—

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

(*2)	Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(4)

Significant restrictions on abilities to subsidiaries as of September 30, 2022 are as follows:


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

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

Jeongam Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied, and payments to the contracting party may be restricted depending on the financial management priority of the contract. Group’s shares cannot be wholly or partially transferred without prior consent of other stakeholders including shareholders or financial institutions.

Incheon Fuel Cell Co., Ltd.		Acquisition or disposal of assets of more than W20 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Group.

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

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

(5)

As of September 30, 2022, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:


Company		Unrecognized Commitments
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.

Jeongam Wind Power Co., Ltd.		When the Group requests other shareholders to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares at fair value.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(6)

Details of non-controlling interests prior to intra-Group eliminations as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won
September 30, 2022
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	291,103			819,764			333,605			1,451,591			2,896,063
Non-current assets		738			668,890			434,563			4,743,169			5,847,360
Current liabilities		(9,795	)		(294,363	)		(221,488	)		(975,508	)		(1,501,154	)
Non-current liabilities		(4,241	)		(19,584	)		(19,789	)		(2,945,407	)		(2,989,021	)
Net assets		277,805			1,174,707			526,891			2,273,845			4,253,248
Book value of non-controlling interests		136,125			575,607			178,721			887,183			1,777,636
Sales		22,848			1,028,291			310,976			1,201,695			2,563,810
Profit for the period		19,001			68,018			4,044			60,125			151,188
Profit for the period attributable to non-controlling interests		9,310			33,329			1,372			5,467			49,478
Cash flows from operating activities		66,925			16,058			(20,923	)		151,837			213,897
Cash flows from investing activities		22,187			52,290			5,187			(330,633	)		(250,969	)
Cash flows from financing activities before dividends to non-controlling interests		(1,632	)		(31,759	)		14,612			269,197			250,418
Dividends to non-controlling interests		(1,289	)		(26,438	)		(3,071	)		(3,084	)		(33,882	)
Effect of exchange rate fluctuation		42,333			1,873			412			27,303			71,921
Net increase (decrease) of cash and cash equivalents		128,524			12,024			(3,783	)		114,620			251,385

In millions of won
December 31, 2021
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	234,224			793,995			253,958			1,030,049			2,312,226
Non-current assets		24,845			626,710			451,085			3,829,243			4,931,883
Current liabilities		(30,783	)		(265,017	)		(183,100	)		(599,373	)		(1,078,273	)
Non-current liabilities		(7,772	)		(46,590	)		(8,492	)		(2,666,345	)		(2,729,199	)
Net assets		220,514			1,109,098			513,451			1,593,574			3,436,637
Book value of non-controlling interests		108,052			543,458			174,163			717,166			1,542,839
Sales		60,532			1,375,668			433,127			1,277,848			3,147,175
Profit for the year		12,981			98,132			16,452			120,488			248,053
Profit for the year attributable to non-controlling interests		6,361			48,085			5,581			25,803			85,830
Cash flows from operating activities		116,440			133,160			(16,270	)		295,532			528,862
Cash flows from investing activities		2,216			(39,444	)		19,061			(301,402	)		(319,569	)
Cash flows from financing activities before dividends to non-controlling interests		(88,927	)		(30,599	)		(8,467	)		125,685			(2,308	)
Dividends to non-controlling interests		—			(25,269	)		(3,639	)		(2,608	)		(31,516	)
Effect of exchange rate fluctuation		10,683			885			38			7,243			18,849
Net increase (decrease) of cash and cash equivalents		40,412			38,733			(9,277	)		124,450			194,318

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

16.

Consolidated Subsidiaries, Continued

(7)

Changes in goodwill

(i)

Details of goodwill as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Acquisition cost	W	100,090		105,647
Less: Accumulated impairment		—		—

Carrying book value	W	100,090		105,647

(ii)

Changes in goodwill for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning		Increase		Decrease			Ending
Acquisition cost	W	105,647		—		(5,557	)		100,090
Less: Accumulated impairment		—		—		—			—

Carrying book value	W	105,647		—		(5,557	)		100,090


In millions of won	December 31, 2021
	Beginning		Increase		Decrease			Ending
Acquisition cost	W	98,166		7,481		—			105,647
Less: Accumulated impairment		—		—		—			—

Carrying book value	W	98,166		7,481		—			105,647

(8)

Disposals of subsidiaries

The Group has completed the liquidation process of EWPRC Biomass Holdings, LLC and has disposed of shares of KEPCO Solar of Alamosa LLC during the nine-month period ended September 30, 2022. The Group had completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1, KOSEP USA, Inc., and Korea Imouraren Uranium Investment Corp. and had disposed of shares of DG Fairhaven Power, LLC during the year ended December 31, 2021.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures

(1)

Investments in associates and joint ventures as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
September 30, 2022
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation	Importing and wholesaling LNG		Korea		20.47	%	W	94,500		1,930,789
PT. Bayan Resources TBK	Resources development		Indonesia		20.00	%		615,860		873,115
Gemeng International Energy Co., Ltd.	Power generation		China		34.00	%		413,153		623,179
Goseong Green Power Co., Ltd.	Power generation		Korea		29.00	%		262,740		293,724
Korea Power Exchange (*1)	Management of power market and others		Korea		100.00	%		127,839		272,661
Indeck Niles Development, LLC	Power generation		USA		50.00	%		263,901		399,974
GS Donghae Electric Power Co., Ltd.	Power generation		Korea		34.00	%		204,000		254,949
S-Power Co., Ltd.	Power generation		Korea		49.00	%		132,300		138,015
PT. Cirebon Electric Power	Power generation		Indonesia		27.50	%		40,365		148,478
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service		Korea		29.00	%		88,885		119,345
Shin Pyeongtaek Power Co., Ltd.	Power generation		Korea		40.00	%		72,000		137,868
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation		Laos		25.00	%		87,426		137,718
Dongducheon Dream Power Co., Ltd. (*2)	Power generation		Korea		33.61	%		148,105		87,836
Nepal Water & Energy Development Company Private Limited (*3)	Construction and operation of utility plant		Nepal		69.06	%		70,228		79,519
SPC Power Corporation	Power generation		Philippines		38.00	%		20,635		69,300
Korea Electric Power Corporation Fund (*4)	Developing electric enterprises		Korea		98.09	%		28,325		32,801
YTN Co., Ltd.	Broadcasting		Korea		21.43	%		59,000		52,623
PT Wampu Electric Power	Power generation		Indonesia		46.00	%		21,292		41,310
PT. Cirebon Energi Prasarana (*5)	Power generation		Indonesia		10.00	%		26,710		74,018
Others (Gwangyang Green Energy Co., Ltd. and 76 others)								293,842		275,194

								3,071,106		6,042,416


<Joint ventures>
Jamaica Public Service Company Limited	Power generation		Jamaica		40.00	%		301,910		374,805
Datang Chifeng Renewable Power Co., Ltd.	Power generation		China		40.00	%		121,928		212,077
Amman Asia Electric Power Company (*6)	Power generation		Jordan		60.00	%		111,476		262,276
KEPCO SPC Power Corporation (*6)	Construction and operation of utility plant		Philippines		75.20	%		94,579		214,925
Rabigh Electricity Company	Power generation		Saudi Arabia		40.00	%		109,743		245,228
PT Barito Wahana Tenaga	Power generation		Indonesia		30.61	%		59,573		151,457
Kelar S.A. (*6)	Power generation		Chile		65.00	%		78,060		122,455
PT. Tanjung Power Indonesia	Power generation		Indonesia		35.00	%		57,039		104,633
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,948		93,585
Nghi Son 2 Power LLC	Power generation		Vietnam		50.00	%		175,261		454,657
Solar Philippines Calatagan Corporation	Power generation		Philippines		38.00	%		47,903		59,866
OneEnergy Asia Limited	Power generation		Vietnam		40.00	%		115,949		176,825
Shuweihat Asia Power Investment B.V.	Holding company		Netherlands		49.00	%		44,405		75,967
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,891		61,981
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		China		40.00	%		39,872		47,938
South Jamaica Power Company Limited	Power generation		Jamaica		20.00	%		20,430		48,884
Chile Solar JV SpA	Power generation		Chile		50.00	%		37,689		34,740
Prime Swedish Holding AB	Holding company		Sweden		45.00	%		35,410		37,809
Others (Dangjin Eco Power Co., Ltd. and 81 others)								813,596		669,751

								2,335,662		3,449,859

							W	5,406,768		9,492,275

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of September 30, 2022 and December 31, 2021 are as follows, continued:

(*1)

The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

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

(*4)	The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*5)	The effective percentage of ownership is less than 20% but the Group exercises significant influence by participating in making major operating and financial decision. Accordingly, the entity is classified as an associate.

(*6)	The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation (*1)	Importing and wholesaling LNG		Korea		20.47	%	W	94,500		1,815,513
PT. Bayan Resources TBK	Resources development		Indonesia		20.00	%		615,860		661,289
Gemeng International Energy Co., Ltd.	Power generation		China		34.00	%		413,153		595,218
Goseong Green Power Co., Ltd.	Power generation		Korea		29.00	%		262,740		260,858
Korea Power Exchange (*2)	Management of power market and others		Korea		100.00	%		127,839		269,728
Indeck Niles Development, LLC (*3,5)	Power generation		USA		56.25	%		268,113		246,273
GS Donghae Electric Power Co., Ltd.	Power generation		Korea		34.00	%		204,000		243,772
S-Power Co., Ltd.	Power generation		Korea		49.00	%		132,300		122,786
PT. Cirebon Electric Power	Power generation		Indonesia		27.50	%		40,365		121,969
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service		Korea		29.00	%		88,885		121,955
Shin Pyeongtaek Power Co., Ltd.	Power generation		Korea		40.00	%		72,000		93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation		Laos		25.00	%		87,426		92,441
Dongducheon Dream Power Co., Ltd. (*4)	Power generation		Korea		33.61	%		148,105		74,198
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation of utility plant		Nepal		69.06	%		70,228		66,333
SPC Power Corporation	Power generation		Philippines		38.00	%		20,635		65,046
Korea Electric Power Corporation Fund (*6)	Developing electric enterprises		Korea		98.09	%		48,410		47,983
YTN Co., Ltd.	Broadcasting		Korea		21.43	%		59,000		51,828
PT Wampu Electric Power	Power generation		Indonesia		46.00	%		21,292		35,077
Others (Gwangyang Green Energy Co., Ltd. and 71 others)								284,984		247,032

								3,059,835		5,232,373


<Joint ventures>
Jamaica Public Service Company Limited	Power generation		Jamaica		40.00	%		301,910		294,649
Datang Chifeng Renewable Power Co., Ltd.	Power generation		China		40.00	%		121,928		204,587
Amman Asia Electric Power Company (*7)	Power generation		Jordan		60.00	%		111,476		178,679
KEPCO SPC Power Corporation (*7)	Construction and operation of utility plant		Philippines		75.20	%		94,579		198,979
Rabigh Electricity Company	Power generation		Saudi Arabia		40.00	%		109,743		143,678
PT Barito Wahana Tenaga	Power generation		Indonesia		30.61	%		59,535		81,595
Kelar S.A. (*7)	Power generation		Chile		65.00	%		78,060		86,695
PT. Tanjung Power Indonesia	Power generation		Indonesia		35.00	%		26,892		46,546
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,948		73,167
Nghi Son 2 Power LLC	Power generation		Vietnam		50.00	%		2,781		—
Solar Philippines Calatagan Corporation	Power generation		Philippines		38.00	%		47,903		58,231
OneEnergy Asia Limited	Power generation		Vietnam		40.00	%		76,916		79,700
Shuweihat Asia Power Investment B.V.	Holding company		Netherlands		49.00	%		44,405		37,069
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,891		47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		China		40.00	%		39,872		44,217
South Jamaica Power Company Limited	Power generation		Jamaica		20.00	%		20,430		37,360
Chile Solar JV SpA	Power generation		Chile		50.00	%		37,689		32,457
Others (Dangjin Eco Power Co., Ltd. and 78 others)								824,533		594,387

								2,069,491		2,239,011

							W	5,129,326		7,471,384

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(1)

Investments in associates and joint ventures as of September 30, 2022 and December 31, 2021 are as follows, continued:

(*1)	Due to changes in equity, the nominal and effective percentage of ownership are 20.47%.

(*2)

(*3)	According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

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

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

(*6)	The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*7)	The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

(2)

The fair value of associates which are actively traded on an open market and have a readily available market value as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
Investees	September 30, 2022		December 31, 2021

<Associates>
Korea Electric Power Industrial Development Co., Ltd.	W	77,523		115,339
Korea Gas Corporation		638,820		738,990
YTN Co., Ltd.		60,840		26,550
SPC Power Corporation		142,794		203,589
PT. Bayan Resources TBK		4,198,669		1,495,801

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(3)

Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won
September 30, 2022
Investees	Beginning balance		Acquisition		Disposals			Dividends received			Share of income (loss)			Other comprehensive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,815,513		—		—			(51,559	)		122,657			41,751			2,427			1,930,789
PT. Bayan Resources TBK		661,289		—		—			(253,780	)		380,429			85,172			5			873,115
Gemeng International Energy Co., Ltd.		595,218		—		—			—			(13,061	)		41,022			—			623,179
Goseong Green Power Co., Ltd.		260,858		—		—			—			32,866			—			—			293,724
Korea Power Exchange		269,728		—		—			—			3,051			—			(118	)		272,661
Indeck Niles Development, LLC		246,273		—		(4,212	)		—			72,781			21,560			63,572			399,974
GS Donghae Electric Power Co., Ltd.		243,772		—		—			—			11,177			—			—			254,949
S-Power Co., Ltd.		122,786		—		—			—			15,229			—			—			138,015
PT. Cirebon Electric Power		121,969		—		—			(6,281	)		6,355			687			25,748			148,478
Hyundai Green Power Co., Ltd.		121,955		—		—			(4,008	)		1,393			1,346			(1,341	)		119,345
Shin Pyeongtaek Power Co., Ltd.		93,074		—		—			—			44,778			—			16			137,868
Xe-Pian Xe-Namnoy Power Co., Ltd.		92,441		—		—			—			21,436			23,841			—			137,718
Dongducheon Dream Power Co., Ltd.		74,198		—		—			—			13,622			—			16			87,836
Nepal Water & Energy Development Company Private Limited		66,333		—		—			—			(496	)		13,682			—			79,519
SPC Power Corporation		65,046		—		—			(2,692	)		1,542			5,406			(2	)		69,300
Korea Electric Power Corporation Fund		47,983		—		(20,085	)		—			6,983			(2,080	)		—			32,801
YTN Co., Ltd.		51,828		—		—			(450	)		1,293			(35	)		(13	)		52,623
PT Wampu Electric Power		35,077		—		—			(5,551	)		1,898			2,641			7,245			41,310
PT. Cirebon Energi Prasarana		—		24,052		—			—			33,027			4,833			12,106			74,018
Others (Gwangyang Green Energy Co., Ltd. and 79 others)		247,032		22,032		(11,388	)		(9,097	)		22,005			(4,135	)		8,745			275,194

		5,232,373		46,084		(35,685	)		(333,418	)		778,965			235,691			118,406			6,042,416


<Joint ventures>
Jamaica Public Service Company Limited		294,649		—		—			(2,538	)		20,641			63,933			(1,880	)		374,805
Datang Chifeng Renewable Power Co., Ltd.		204,587		—		—			—			(5,783	)		13,273			—			212,077
Amman Asia Electric Power Company		178,679		—		—			—			15,210			68,387			—			262,276
KEPCO SPC Power Corporation		198,979		—		—			(11,501	)		19,341			8,106			—			214,925
Rabigh Electricity Company		143,678		—		—			(11,248	)		27,350			85,448			—			245,228
PT Barito Wahana Tenaga		81,595		39		—			—			8,302			61,521			—			151,457
Kelar S.A.		86,695		—		—			—			171			15,330			20,259			122,455
PT. Tanjung Power Indonesia		46,546		30,147		—			(5,996	)		3,881			31,500			(1,445	)		104,633
RE Holiday Holdings LLC		73,167		—		—			(1,369	)		640			21,147			—			93,585
Nghi Son 2 Power LLC		—		172,480		—			—			48,518			233,659			—			454,657
Solar Philippines Calatagan Corporation		58,231		—		—			(1,708	)		4,719			(1,376	)		—			59,866
OneEnergy Asia Limited		79,700		39,033		—			—			(30,175	)		88,267			—			176,825
Shuweihat Asia Power Investment B.V.		37,069		—		—			(2,984	)		(1,130	)		43,012			—			75,967
RE Pioneer Holdings LLC		47,015		—		—			—			(333	)		15,299			—			61,981
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		44,217		—		—			(2,698	)		3,057			3,362			—			47,938
South Jamaica Power Company Limited		37,360		—		—			—			3,243			8,281			—			48,884
Chile Solar JV SpA		32,457		—		—			—			(46	)		2,329			—			34,740
Prime Swedish Holding AB		15,441		20,896		—			—			(212	)		—			1,684			37,809
Others (Dangjin Eco Power Co., Ltd. and 82 others)		578,946		19,842		(15,891	)		(9,430	)		53,102			41,274			1,908			669,751

		2,239,011		282,437		(15,891	)		(49,472	)		170,496			802,752			20,526			3,449,859

	W	7,471,384		328,521		(51,576	)		(382,890	)		949,461			1,038,443			138,932			9,492,275

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(3)

Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Investees	Beginning balance		Acquisition		Disposals			Dividends received			Share of income (loss)			Other comprehensive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,647,325		—		—			—			209,357			13,017			(54,186	)		1,815,513
PT. Bayan Resources TBK		425,234		—		—			(68,666	)		267,874			36,885			(38	)		661,289
Gemeng International Energy Co., Ltd.		679,708		—		—			(11,886	)		(154,930	)		82,326			—			595,218
Goseong Green Power Co., Ltd.		2,186		259,840		—			—			(1,168	)		—			—			260,858
Korea Power Exchange		269,122		—		—			—			(10	)		—			616			269,728
Indeck Niles Development, LLC		20,627		222,551		—			—			(13,160	)		6,652			9,603			246,273
GS Donghae Electric Power Co., Ltd.		244,426		—		—			(15,640	)		14,972			—			14			243,772
S-Power Co., Ltd.		110,292		—		—			—			12,437			57			—			122,786
PT. Cirebon Electric Power		117,811		—		—			(18,253	)		10,679			1,396			10,336			121,969
Hyundai Green Power Co., Ltd.		132,774		—		—			(8,888	)		(562	)		(1,346	)		(23	)		121,955
Shin Pyeongtaek Power Co., Ltd.		69,591		—		—			—			23,476			—			7			93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.		64,570		—		—			—			19,306			8,565			—			92,441
Dongducheon Dream Power Co., Ltd.		80,637		—		—			—			(6,439	)		—			—			74,198
Nepal Water & Energy Development Company Private Limited		42,677		19,960		—			—			(616	)		4,312			—			66,333
SPC Power Corporation		69,912		—		—			(20,468	)		5,311			10,291			—			65,046
Korea Electric Power Corporation Fund		41,926		—		(3,090	)		—			9,065			82			—			47,983
YTN Co., Ltd.		40,549		—		—			(270	)		11,192			22			335			51,828
PT Wampu Electric Power		27,865		—		—			—			3,196			1,355			2,661			35,077
Others (Gwangyang Green Energy Co., Ltd. and 73 others)		163,555		66,302		(394	)		(4,324	)		7,143			(1,863	)		16,613			247,032

		4,250,787		568,653		(3,484	)		(148,395	)		417,123			161,751			(14,062	)		5,232,373


<Joint ventures>
Jamaica Public Service Company Limited		266,221		—		—			(4,578	)		12,963			23,820			(3,777	)		294,649
Datang Chifeng Renewable Power Co., Ltd.		188,478		—		—			(14,191	)		9,342			20,958			—			204,587
Amman Asia Electric Power Company		161,253		—		—			(27,428	)		18,487			26,367			—			178,679
KEPCO SPC Power Corporation		201,663		—		—			(35,763	)		37,073			(3,994	)		—			198,979
Rabigh Electricity Company		97,157		—		—			(7,221	)		17,896			35,846			—			143,678
PT Barito Wahana Tenaga		63,029		140		—			—			4,194			14,232			—			81,595
Kelar S.A.		71,449		—		—			—			2,121			6,416			6,709			86,695
PT. Tanjung Power Indonesia		33,063		—		—			—			5,027			9,029			(573	)		46,546
RE Holiday Holdings LLC		68,809		—		—			(9,577	)		6,299			7,636			—			73,167
Nghi Son 2 Power LLC		—		—		—			—			—			—			—			—
Solar Philippines Calatagan Corporation		49,017		—		—			(5,961	)		5,961			9,214			—			58,231
OneEnergy Asia Limited		56,654		20,262		—			—			(1,138	)		3,922			—			79,700
Shuweihat Asia Power Investment B.V.		13,264		—		—			(2,467	)		4,564			21,708			—			37,069
RE Pioneer Holdings LLC		49,639		—		—			(14,199	)		5,556			6,019			—			47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		42,530		—		—			(2,884	)		1,562			3,009			—			44,217
South Jamaica Power Company Limited		31,897		—		—			—			2,515			2,949			(1	)		37,360
Chile Solar JV SpA		34,883		—		—			—			831			(3,257	)		—			32,457
Others (Dangjin Eco Power Co., Ltd. and 80 others)		490,740		114,557		(11,710	)		(15,578	)		6,680			6,431			3,267			594,387

		1,919,746		134,959		(11,710	)		(139,847	)		139,933			190,305			5,625			2,239,011

	W	6,170,533		703,612		(15,194	)		(288,242	)		557,056			352,056			(8,437	)		7,471,384

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(4)

Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won
September 30, 2022
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)	W	56,034,824		46,349,275		33,566,734		599,203
PT. Bayan Resources TBK		4,674,624		1,318,437		4,248,470		2,166,756
Gemeng International Energy Co., Ltd.		8,668,405		6,404,108		2,337,257		(3,583	)
Goseong Green Power Co., Ltd.		5,568,637		4,546,719		1,534,055		87,878
Korea Power Exchange		368,465		95,804		88,497		2,390
Indeck Niles Development, LLC		1,348,185		761,706		246,910		79,620
GS Donghae Electric Power Co., Ltd.		2,193,078		1,443,227		792,840		32,874
S-Power Co., Ltd.		859,613		575,255		811,681		30,913
PT. Cirebon Electric Power		770,357		230,438		188,338		22,814
Hyundai Green Power Co., Ltd.		779,771		368,236		74,893		3,671
Shin Pyeongtaek Power Co., Ltd.		1,205,268		830,939		801,415		111,094
Xe-Pian Xe-Namnoy Power Co., Ltd.		1,536,703		981,739		137,947		85,767
Dongducheon Dream Power Co., Ltd.		1,516,307		1,218,276		1,390,760		39,032
Nepal Water & Energy Development Company Private Limited		230,206		116,474		28,594		(746	)
SPC Power Corporation		272,426		29,227		60,121		22,157
Korea Electric Power Corporation Fund		33,537		100		7,156		6,852
YTN Co., Ltd.		351,598		106,026		106,935		5,872
PT Wampu Electric Power		227,501		137,697		15,302		6,312
PT. Cirebon Energi Prasarana		3,801,289		3,061,111		245,493		54,330

<Joint ventures>
Jamaica Public Service Company Limited		2,645,445		1,746,094		1,117,447		48,294
Datang Chifeng Renewable Power Co., Ltd.		885,097		354,903		90,418		21,309
Amman Asia Electric Power Company		875,829		438,703		19,519		25,369
KEPCO SPC Power Corporation		314,722		28,918		187,166		33,780
Rabigh Electricity Company		2,838,395		2,093,647		243,820		58,205
PT Barito Wahana Tenaga		494,760		—		—		32,974
Kelar S.A.		739,868		556,564		65,393		(4,394	)
PT. Tanjung Power Indonesia		868,890		569,938		72,051		11,429
RE Holiday Holdings LLC		394,534		207,363		12,009		(749	)
Nghi Son 2 Power LLC		3,906,050		2,996,737		434,243		97,037
Solar Philippines Calatagan Corporation		125,089		44,561		13,730		8,111
OneEnergy Asia Limited		1,195,114		816,832		—		(11,078	)
Shuweihat Asia Power Investment B.V.		155,035		—		—		(2,307	)
RE Pioneer Holdings LLC		298,235		174,273		9,908		251
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		184,116		64,270		21,358		2,721
South Jamaica Power Company Limited		591,534		347,098		229,108		16,434
Chile Solar JV SpA		157,754		88,273		4,297		(615	)
Prime Swedish Holding AB		83,294		94		—		(457	)

(*)	The profit for the nine-month period ended September 30, 2022 is reduced by the associate entity’s net income attributable to non-controlling interests.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(4)

Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the year
<Associates>
Korea Gas Corporation (*)	W	43,669,902		34,550,567		27,520,756		950,757
PT. Bayan Resources TBK		2,884,474		743,452		3,264,057		1,456,893
Gemeng International Energy Co., Ltd.		8,151,333		5,976,164		2,511,377		(404,570	)
Goseong Green Power Co., Ltd.		5,412,537		4,509,791		740,028		51,450
Korea Power Exchange		331,640		61,912		110,075		492
Indeck Niles Development, LLC		1,051,557		729,078		—		(25,184	)
GS Donghae Electric Power Co., Ltd.		2,149,060		1,432,083		760,323		44,035
S-Power Co., Ltd.		856,963		603,519		608,259		24,998
PT. Cirebon Electric Power		697,614		254,089		273,650		39,965
Hyundai Green Power Co., Ltd.		812,287		391,754		101,818		(280	)
Shin Pyeongtaek Power Co., Ltd.		1,028,028		764,551		653,117		57,202
Xe-Pian Xe-Namnoy Power Co., Ltd.		1,321,406		947,430		161,686		76,996
Dongducheon Dream Power Co., Ltd.		1,398,244		1,139,521		750,127		(16,685	)
Nepal Water & Energy Development Company Private Limited		153,184		58,545		—		(642	)
SPC Power Corporation		242,058		18,535		54,042		35,441
Korea Electric Power Corporation Fund		49,150		237		9,773		9,534
YTN Co., Ltd.		367,950		126,062		137,439		51,044
PT Wampu Electric Power		209,172		132,917		20,294		7,102

<Joint ventures>
Jamaica Public Service Company Limited		2,174,800		1,469,297		1,113,943		41,277
Datang Chifeng Renewable Power Co., Ltd.		827,213		315,746		120,989		24,398
Amman Asia Electric Power Company		731,745		433,946		17,753		30,815
KEPCO SPC Power Corporation		290,981		26,381		181,443		49,499
Rabigh Electricity Company		2,410,335		1,910,203		266,822		34,268
PT Barito Wahana Tenaga		266,584		39		—		25,839
Kelar S.A.		655,236		526,063		84,504		3,641
PT. Tanjung Power Indonesia		713,715		580,727		89,491		14,511
RE Holiday Holdings LLC		335,130		188,796		19,724		10,897
Nghi Son 2 Power LLC		2,982,805		3,020,684		548,027		84,276
Solar Philippines Calatagan Corporation		117,324		46,759		19,418		11,782
OneEnergy Asia Limited		136,247		777		—		(2,844	)
Shuweihat Asia Power Investment B.V.		75,652		—		—		23,905
RE Pioneer Holdings LLC		220,390		126,361		12,925		9,307
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		198,437		87,895		29,094		3,905
South Jamaica Power Company Limited		474,664		287,852		224,159		5,743
Chile Solar JV SpA		68,445		3,531		3,060		1,408

(*)	The profit for the year ended December 31, 2021 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
September 30, 2022
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	9,685,550		20.47	%		1,982,632		—		—			(51,843	)		1,930,789
PT. Bayan Resources TBK		3,356,187		20.00	%		671,237		278,257		—			(76,379	)		873,115
Gemeng International Energy Co., Ltd.		2,264,297		34.00	%		769,861		—		—			(146,682	)		623,179
Goseong Green Power Co., Ltd.		1,021,918		29.00	%		296,356		—		(2,632	)		—			293,724
Korea Power Exchange		272,661		100.00	%		272,661		—		—			—			272,661
Indeck Niles Development, LLC		586,479		50.00	%		293,240		106,734		—			—			399,974
GS Donghae Electric Power Co., Ltd.		749,851		34.00	%		254,949		—		—			—			254,949
S-Power Co., Ltd.		284,357		49.00	%		139,335		—		(1,320	)		—			138,015
PT. Cirebon Electric Power		539,919		27.50	%		148,478		—		—			—			148,478
Hyundai Green Power Co., Ltd.		411,535		29.00	%		119,345		—		—			—			119,345
Shin Pyeongtaek Power Co., Ltd.		374,329		40.00	%		149,732		3,559		(15,423	)		—			137,868
Xe-Pian Xe-Namnoy Power Co., Ltd.		554,964		25.00	%		138,741		305		(1,039	)		(289	)		137,718
Dongducheon Dream Power Co., Ltd.		298,031		34.01	%		101,360		1,757		(2,699	)		(12,582	)		87,836
Nepal Water & Energy Development Company Private Limited		113,732		69.06	%		78,547		972		—			—			79,519
SPC Power Corporation		243,199		38.00	%		92,416		—		—			(23,116	)		69,300
Korea Electric Power Corporation Fund		33,437		98.09	%		32,798		—		—			3			32,801
YTN Co., Ltd.		245,572		21.43	%		52,623		—		—			—			52,623
PT Wampu Electric Power		89,804		46.00	%		41,310		—		—			—			41,310
PT. Cirebon Energi Prasarana		740,178		10.00	%		74,018		—		—			—			74,018

<Joint ventures>
Jamaica Public Service Company Limited		899,351		40.00	%		359,740		29,357		—			(14,292	)		374,805
Datang Chifeng Renewable Power Co., Ltd.		530,194		40.00	%		212,077		—		—			—			212,077
Amman Asia Electric Power Company		437,126		60.00	%		262,276		—		—			—			262,276
KEPCO SPC Power Corporation		285,804		75.20	%		214,925		—		—			—			214,925
Rabigh Electricity Company		744,748		40.00	%		297,899		—		(51,867	)		(804	)		245,228
PT Barito Wahana Tenaga		494,760		30.61	%		151,457		—		—			—			151,457
Kelar S.A.		183,303		65.00	%		119,148		3,307		—			—			122,455
PT. Tanjung Power Indonesia		298,951		35.00	%		104,633		—		—			—			104,633
RE Holiday Holdings LLC		187,171		50.00	%		93,585		—		—			—			93,585
Nghi Son 2 Power LLC		909,313		50.00	%		454,657		—		—			—			454,657
Solar Philippines Calatagan Corporation		80,528		38.00	%		30,601		—		—			29,265			59,866
OneEnergy Asia Limited		378,282		40.00	%		151,314		25,511		—			—			176,825
Shuweihat Asia Power Investment B.V.		155,035		49.00	%		75,967		—		—			—			75,967
RE Pioneer Holdings LLC		123,962		50.00	%		61,981		—		—			—			61,981
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		119,846		40.00	%		47,938		—		—			—			47,938
South Jamaica Power Company Limited		244,435		20.00	%		48,887		—		—			(3	)		48,884
Chile Solar JV SpA		69,481		50.00	%		34,740		—		—			—			34,740
Prime Swedish Holding AB		83,201		45.00	%		37,440		369		—			—			37,809

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(5)

Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won
December 31, 2021
Investees	Net assets			Percentage of ownership (*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	9,119,335			20.47	%		1,866,728			—		—			(51,215	)		1,815,513
PT. Bayan Resources TBK		2,141,022			20.00	%		428,204			309,464		—			(76,379	)		661,289
Gemeng International Energy Co., Ltd.		2,175,169			34.00	%		739,557			—		—			(144,339	)		595,218
Goseong Green Power Co., Ltd.		902,746			29.00	%		261,796			—		(938	)		—			260,858
Korea Power Exchange		269,728			100.00	%		269,728			—		—			—			269,728
Indeck Niles Development, LLC		322,479			56.25	%		181,395			64,878		—			—			246,273
GS Donghae Electric Power Co., Ltd.		716,977			34.00	%		243,772			—		—			—			243,772
S-Power Co., Ltd.		253,444			49.00	%		124,188			—		(1,402	)		—			122,786
PT. Cirebon Electric Power		443,525			27.50	%		121,969			—		—			—			121,969
Hyundai Green Power Co., Ltd.		420,533			29.00	%		121,955			—		—			—			121,955
Shin Pyeongtaek Power Co., Ltd.		263,477			40.00	%		105,391			3,559		(15,876	)		—			93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.		373,976			25.00	%		93,494			305		(1,069	)		(289	)		92,441
Dongducheon Dream Power Co., Ltd.		258,723			34.01	%		87,992			1,757		(2,969	)		(12,582	)		74,198
Nepal Water & Energy Development Company Private Limited		94,639			69.06	%		65,361			972		—			—			66,333
SPC Power Corporation		223,523			38.00	%		84,939			—		—			(19,893	)		65,046
Korea Electric Power Corporation Fund		48,913			98.09	%		47,979			—		—			4			47,983
YTN Co., Ltd.		241,863			21.43	%		51,828			—		—			—			51,828
PT Wampu Electric Power		76,255			46.00	%		35,077			—		—			—			35,077

<Joint ventures>
Jamaica Public Service Company Limited		705,503			40.00	%		282,201			29,357		—			(16,909	)		294,649
Datang Chifeng Renewable Power Co., Ltd.		511,467			40.00	%		204,587			—		—			—			204,587
Amman Asia Electric Power Company		297,799			60.00	%		178,679			—		—			—			178,679
KEPCO SPC Power Corporation		264,600			75.20	%		198,979			—		—			—			198,979
Rabigh Electricity Company		500,132			40.00	%		200,053			—		(55,571	)		(804	)		143,678
PT Barito Wahana Tenaga		266,545			30.61	%		81,595			—		—			—			81,595
Kelar S.A.		129,173			65.00	%		83,962			2,733		—			—			86,695
PT. Tanjung Power Indonesia		132,988			35.00	%		46,546			—		—			—			46,546
RE Holiday Holdings LLC		146,334			50.00	%		73,167			—		—			—			73,167
Nghi Son 2 Power LLC		(37,879	)		50.00	%		(18,940	)		—		—			18,940			—
Solar Philippines Calatagan Corporation		70,565			38.00	%		26,815			—		—			31,416			58,231
OneEnergy Asia Limited		135,470			40.00	%		54,188			25,512		—			—			79,700
Shuweihat Asia Power Investment B.V.		75,652			49.00	%		37,069			—		—			—			37,069
RE Pioneer Holdings LLC		94,029			50.00	%		47,015			—		—			—			47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		110,542			40.00	%		44,217			—		—			—			44,217
South Jamaica Power Company Limited		186,812			20.00	%		37,362			—		—			(2	)		37,360
Chile Solar JV SpA		64,914			50.00	%		32,457			—		—			—			32,457

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(6)

As of September 30, 2022 and December 31, 2021, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:


In millions of won	September 30, 2022					December 31, 2021
	Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
Eurasia Energy Holdings	W	40			230		15			190
Gunsan Bio Energy Co., Ltd.		94			3,958		282			3,864
Daehan Wind Power PSC		—			—		(3,855	)		—
Dayone Energy Co., Ltd.		783			24,235		(1,244	)		23,452
Nghi Son 2 Power LLC		(18,940	)		—		(114,340	)		18,940
Samcheok Eco Materials Co., Ltd.		71			533		(323	)		462
Naepo Green Energy Co., Ltd.		4,190			11,937		5,469			7,747
Barakah One Company		136,874			179,710		(26,502	)		42,836
Pioneer Gas Power Limited		26,616			64,245		21,691			37,629
Incheon New Power Co., Ltd.		(163	)		—		(31	)		163
Bigeum Resident Photovoltaic Power Co., Ltd.		283			581		182			298
KAPES, Inc.		717			4,232		317			3,515
Chester Solar IV SpA		416			437		21			21
Chester Solar V SpA		32			32		—			—
Diego de Almagro Solar SpA		185			185		—			—
International Offshore Power Transmission Holding Company Limited		50			50		—			—
SEP Co., Ltd.		12			12		—			—

(7)

As of September 30, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

(i)

Gemeng International Energy Co., Ltd.

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

(ii)

Taebaek Wind Power Co., Ltd.

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

(iii)

Pyeongchang Wind Power Co., Ltd.

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

(iv)

Daeryun Power Co., Ltd.

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

The Group has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(7)

As of September 30, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(v)

Daegu Green Power Co., Ltd.

The Group has a right to purchase all the shares of Daegu Green Power Co., Ltd. held by the financial investors at the yield-based transfer amount agreed with the shareholders. The Group can exercise its right 5, 10 and 13 years after the date of the investment

(vi)

Yeonggwang Wind Power Co., Ltd.

In case the Group intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is a non-controlling shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Group.

(vii)

Chester Solar I SpA

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

(viii)

Chester Solar IV SpA

(ix)

Chester Solar V SpA

(x)

Diego de Almagro Solar SpA

(xi)

Laurel SpA

(xii)

Samcheok Eco Materials Co., Ltd.

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

(xiii)

Hyundai Green Power Co., Ltd.

As of September 30, 2022, the Group has call option against the financial investors (IBK and others) and also has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when claimed by the financial investors at certain period of time in the future. Also, at certain period of time in the future, the Group has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Group”), the operating investor of Hyundai Green Power Co., Ltd., according to the conditions of the agreement and also has an obligation to sell its shares upon request from Hyundai Steel Group.

(xiv)

Kosture Co., Ltd.

The Group acquires the shares with the settled amount of coal provided to Kosture Co., Ltd. every year until completion of the subscription set forth in the shareholders’ agreement.

(xv)

Omisan Wind Power Co., Ltd.

When the Group requests Unison Co., Ltd. to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares or transfer them to others at fair value.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(7)

As of September 30, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(xvi)

Changjuk Wind Power Co., Ltd.

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

(xvii)

Geumsungsan Wind Power Co., Ltd.

The Group has a right to purchase shares owned by Daemyung Energy Co., Ltd., within the range of 18%, for 3 years after the commencement of the operation.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(8)

Significant restrictions on the Group’s abilities on associates and joint ventures as of September 30, 2022 are as follows:


Company		Nature and extent of any significant restrictions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chun-cheon Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, principals and interests on subordinated loans shall not be paid until the collateralized debt is fully repaid.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

17.

Investments in Associates and Joint Ventures, Continued

(8)

Significant restrictions on the Group’s abilities on associates or joint ventures as of September 30, 2022 are as follows, continued:


Company		Nature and extent of any significant restrictions

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

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

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

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

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

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

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

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

Omisan Wind Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, either of Omisan Wind Power Co., Ltd. and Unison Co., Ltd. shall not transfer their shares to others wholly or partially until 4 years have passed from the completion of power complex without the written consent from the other party. In case the shares of each party becomes less than 10% of outstanding shares after the transfer, it also requires the written consent from the other party.

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

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

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

Geumsungsan Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred for 3 years after the commencement of operation, and also cannot be transferred or disposed to the third party in a way not permitted in the financial documents without prior written consent of an agent bank.

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

Cheongju Eco Park Co., Ltd.		Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied, or permitted by related financing contracts, or prior written consent of financial institutions is obtained.

Goheung New Energy Co., Ltd.		Payment of dividends or repayment of loans such as subordinated loans to the investors can only be made when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

18.

Property, Plant and Equipment

(1)

Property, plant and equipment as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	14,146,802		(23,479	)		—			(29,863	)		14,093,460
Buildings		23,359,155		(48,611	)		(10,706,804	)		(6,509	)		12,597,231
Structures		80,726,870		(167,166	)		(31,965,496	)		(6,721	)		48,587,487
Machinery		102,958,339		(131,720	)		(52,819,349	)		(508,671	)		49,498,599
Ships		17,264		—			(3,342	)		—			13,922
Vehicles		397,198		(1,962	)		(303,807	)		(116	)		91,313
Equipment		2,112,530		(557	)		(1,696,686	)		(42	)		415,245
Tools		1,292,397		(108	)		(1,120,826	)		(6	)		171,457
Construction-in-progress		33,979,408		(135,638	)		—			(157,529	)		33,686,241
Right-of-use assets		7,922,854		—			(4,156,020	)		—			3,766,834
Asset retirement costs		14,424,632		—			(5,977,346	)		(146,423	)		8,300,863
Others		15,522,377		—			(12,863,128	)		—			2,659,249

	W	296,859,826		(509,241	)		(121,612,804	)		(855,880	)		173,881,901


In millions of won	December 31, 2021
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	14,135,452		(23,474	)		—			(27,487	)		14,084,491
Buildings		22,974,569		(52,122	)		(10,041,270	)		(7,073	)		12,874,104
Structures		78,474,620		(172,021	)		(30,171,363	)		(13,205	)		48,118,031
Machinery		101,052,961		(140,082	)		(48,791,577	)		(514,991	)		51,606,311
Ships		2,068		—			(1,891	)		—			177
Vehicles		371,207		(1,675	)		(281,833	)		(117	)		87,582
Equipment		1,989,115		(149	)		(1,591,890	)		(42	)		397,034
Tools		1,256,189		(64	)		(1,073,086	)		(38	)		183,001
Construction-in-progress		30,313,624		(111,822	)		—			(157,530	)		30,044,272
Right-of-use assets		7,848,138		—			(3,788,741	)		—			4,059,397
Asset retirement costs		14,348,920		—			(5,277,109	)		(146,423	)		8,925,388
Others		14,852,245		—			(12,106,384	)		—			2,745,861

	W	287,619,108		(501,409	)		(113,125,144	)		(866,906	)		173,125,649

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

18.

Property, Plant and Equipment, Continued

(2)

Changes in property, plant and equipment for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance			Acquisition			Disposal			Depreciation			Others			Ending balance
Land	W	14,107,965			2,272			(46,346	)		—			53,048			14,116,939
(Government grants)		(23,474	)		—			1			—			(6	)		(23,479	)
Buildings		12,926,226			832			(14,269	)		(675,712	)		408,765			12,645,842
(Government grants)		(52,122	)		—			—			4,112			(601	)		(48,611	)
Structures		48,290,052			1,295			(194,025	)		(1,968,378	)		2,625,709			48,754,653
(Government grants)		(172,021	)		—			680			7,162			(2,987	)		(167,166	)
Machinery		51,746,393			210,486			(132,899	)		(4,388,031	)		2,194,370			49,630,319
(Government grants)		(140,082	)		—			230			13,022			(4,890	)		(131,720	)
Ships		177			—			—			(607	)		14,352			13,922
Vehicles		89,257			1,375			(69	)		(30,526	)		33,238			93,275
(Government grants)		(1,675	)		(18	)		—			463			(732	)		(1,962	)
Equipment		397,183			64,100			(210	)		(149,177	)		103,906			415,802
(Government grants)		(149	)		—			—			103			(511	)		(557	)
Tools		183,065			14,956			(56	)		(58,564	)		32,164			171,565
(Government grants)		(64	)		—			—			22			(66	)		(108	)
Construction-in-progress		30,156,094			8,485,737			(5,945	)		—			(4,814,007	)		33,821,879
(Government grants)		(111,822	)		9,924			—			—			(33,740	)		(135,638	)
Right-of-use assets		4,059,397			129,718			(1,760	)		(409,773	)		(10,748	)		3,766,834
Asset retirement costs		8,925,388			—			—			(851,092	)		226,567			8,300,863
Others		2,745,861			5,280			(21,825	)		(783,617	)		713,550			2,659,249

	W	173,125,649			8,925,957			(416,493	)		(9,290,593	)		1,537,381			173,881,901

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

18.

Property, Plant and Equipment, Continued

(2)

Changes in property, plant and equipment for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won	December 31, 2021
	Beginning balance			Acquisition			Disposal			Depreciation			Impairment			Others			Ending balance
Land	W	13,943,326			9,561			(54,447	)		—			—			209,525			14,107,965
(Government grants)		(23,475	)		—			1			—			—			—			(23,474	)
Buildings		12,616,532			9,036			(19,974	)		(889,539	)		—			1,210,171			12,926,226
(Government grants)		(57,231	)		—			—			5,174			—			(65	)		(52,122	)
Structures		46,258,855			630			(319,287	)		(2,582,488	)		(741	)		4,933,083			48,290,052
(Government grants)		(180,009	)		—			1,811			9,517			—			(3,340	)		(172,021	)
Machinery		50,038,787			268,126			(135,803	)		(5,759,155	)		—			7,334,438			51,746,393
(Government grants)		(157,785	)		—			531			17,519			—			(347	)		(140,082	)
Ships		255			—			—			(103	)		—			25			177
Vehicles		78,983			4,807			(4,298	)		(37,980	)		—			47,745			89,257
(Government grants)		(632	)		(26	)		—			460			—			(1,477	)		(1,675	)
Equipment		407,843			54,875			(667	)		(184,007	)		—			119,139			397,183
(Government grants)		(227	)		—			—			95			—			(17	)		(149	)
Tools		192,387			19,389			(89	)		(81,984	)		—			53,362			183,065
(Government grants)		(239	)		—			—			209			—			(34	)		(64	)
Construction-in-progress		30,963,725			12,175,384			(66,965	)		—			(3,315	)		(12,912,735	)		30,156,094
(Government grants)		(79,126	)		5,027			—			—			—			(37,723	)		(111,822	)
Right-of-use assets		4,542,166			78,213			(11,787	)		(558,565	)		—			9,370			4,059,397
Asset retirement costs		7,413,171			92			(209	)		(844,518	)		—			2,356,852			8,925,388
Others		2,752,081			5,311			(2,332	)		(869,310	)		—			860,111			2,745,861

	W	168,709,387			12,630,425			(613,515	)		(11,774,675	)		(4,056	)		4,178,083			173,125,649

(3)

One of The group’s subsidiaries, Korea Hydro & Nuclear Power Co., Ltd., has recognized proceeds and costs from selling items produced before its intended use, by accounting W68,755 million as revenue and W47,863 as expense in profit or loss for the nine-month period ended September 30, 2022.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

19.

Investment Properties

(1)

Investment properties as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	195,214		—			—			195,214
Buildings		19,951		(23	)		(6,337	)		13,591

	W	215,165		(23	)		(6,337	)		208,805


In millions of won	December 31, 2021
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	201,605		—			—			201,605
Buildings		19,543		(30	)		(8,334	)		11,179

	W	221,148		(30	)		(8,334	)		212,784

(2)

Changes in investment properties for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance			Depreciation			Others			Ending balance
Land	W	201,605			—			(6,391	)		195,214
Buildings		11,209			(351	)		2,756			13,614
(Government grants)		(30	)		1			6			(23	)

	W	212,784			(350	)		(3,629	)		208,805


In millions of won	December 31, 2021
	Beginning balance			Depreciation			Others			Ending balance
Land	W	200,391			—			1,214			201,605
Buildings		24,833			(1,387	)		(12,237	)		11,209
(Government grants)		(29	)		1			(2	)		(30	)

	W	225,195			(1,386	)		(11,025	)		212,784

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

19.

Investment Properties, Continued

(3)

Income and expenses related to investment properties for the three and nine-month period ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022						September 30, 2021
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Rental income	W	2,647			7,610			2,517			7,331
Operating and maintenance expenses related to rental income		(139	)		(394	)		(376	)		(1,101	)

	W	2,508			7,216			2,141			6,230

(4)

Fair value of investment properties as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Book value		Fair value		Book value		Fair value
Land	W	195,214		292,351		201,605		268,702
Buildings		13,591		15,438		11,179		13,636

	W	208,805		307,789		212,784		282,338

The Group determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Group. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined in consideration of the fluctuation on the publicly announced individual land price after the KIFRS transition date (January 1, 2010).

(5)

All of the Group’s investment properties are held under freehold interests.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

20.

Construction Contracts

(1)

Changes in total contract amount in which revenue is not yet recognized for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won

September 30, 2022

Beginning
balance

Increase
(decrease) (*)

Recognized as
revenue

Ending
balance

Nuclear power plant construction in UAE and others

2,783,935

291,180

(670,692

)

2,404,423

(*)	For the nine-month period ended September 30, 2022, the increased balance of contracts from new orders is W370,861 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W79,681 million.

In millions of won

December 31, 2021

Beginning
balance

Increase
(decrease) (*)

Recognized as
revenue

Ending
balance

Nuclear power plant construction in UAE and others

3,152,725

386,208

(754,998

)

2,783,935

(*)	For the year ended December 31, 2021, the increased balance of contracts from new orders is W458,635 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W72,427 million.

(2)

Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of September 30, 2022 and December 31, 2021 are as follows:

In millions of won

September 30, 2022

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in UAE and others

22,576,674

21,378,929

1,197,745

28,564

In millions of won

December 31, 2021

Accumulated
earned revenue

Accumulated
expense

Accumulated
profit

Unearned
advance receipts

Nuclear power plant construction in UAE and others

22,051,129

20,967,097

1,084,032

23,238

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

20.

Construction Contracts, Continued

(3)

Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of September 30, 2022 and December 31, 2021 are as follows:

In millions of won

September 30, 2022

December 31, 2021

Contract assets
(*1)

Contract liabilities
(*2)

Contract assets
(*1)

Contract liabilities
(*2)

Nuclear power plant construction in UAE and others

263,593

22,226

82,306

5,330

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

(*2)	Included in non-financial liabilities as advance received in the consolidated statements of financial position. The revenue recognized on September 30, 2022 from the amounts included in contract liabilities at the end of the prior year is W3,637 million.

(4)

The contract with BOC (purchaser) states that disclosure of information related to UAE nuclear power plant construction projects such as contract date, contractual completion date, completion progress, unbilled construction, impairment losses, etc. are not allowed without consent from the purchaser. BOC did not agree to disclose such information. Accordingly, the Group did not disclose such information based on KIFRS 1115 129.2(2) as it is probable that BOC may file a lawsuit for breach of contract if the Group does so. Also, the Group reported to the audit committee that those items will not be disclosed in the notes to the consolidated financial statements.

(5)

Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the nine-month period ended September 30, 2022 are as follows:


In millions of won	September 30, 2022
	Effect from changes in accounting estimates														Contract assets from construction contracts				Trade receivables from construction contracts
	Expected loss on construction contracts		Changes in estimates of contract revenue and costs			Amounts recognized in current profit or loss			Amounts recognized in future profit or loss		Changes in estimated total contract costs		Revenue recognized from performance obligations satisfied in previous periods		Gross		Allowance for doubtful accounts		Gross		Allowance for doubtful accounts
Transmission and distribution	W	—		41,619			6,924			34,695		116,245		—		156,793		—		88,934		—
Plant maintenance & engineering service		1,942		(1,466	)		(29,681	)		28,215		20,644		13,412		86,288		3		60,724		19,045
Others		—		—			—			—		—		—		20,512		—		—		—

	W	1,942		40,153			(22,757	)		62,910		136,889		13,412		263,593		3		149,658		19,045

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

21.

Intangible Assets other than Goodwill

(1)

Intangible assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	965,232		(58	)		(778,386	)		(20	)		186,768
Copyrights, patents rights and other industrial rights		104,194		—			(65,766	)		(9,178	)		29,250
Mining rights		677,269		—			(46,971	)		(585,185	)		45,113
Development expenditures		936,207		(3,057	)		(876,261	)		—			56,889
Intangible assets under development		72,142		(1,845	)		—			(8,903	)		61,394
Usage rights of donated assets and others		592,825		—			(432,326	)		—			160,499
Leasehold rights		28,185		—			(23,057	)		—			5,128
Greenhouse gas emissions rights		44,886		—			—			—			44,886
Others		551,640		(68	)		(171,069	)		(11,955	)		368,548

	W	3,972,580		(5,028	)		(2,393,836	)		(615,241	)		958,475


In millions of won	December 31, 2021
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	867,185		(91	)		(704,589	)		—			162,505
Copyrights, patents rights and other industrial rights		103,428		—			(59,063	)		(9,178	)		35,187
Mining rights		623,122		—			(39,803	)		(541,417	)		41,902
Development expenditures		978,768		(3,820	)		(905,805	)		(19	)		69,124
Intangible assets under development		94,275		(7,326	)		—			(12,845	)		74,104
Usage rights of donated assets and others		592,870		—			(423,087	)		—			169,783
Leasehold rights		28,185		—			(22,337	)		—			5,848
Greenhouse gas emissions rights		78,137		—			—			—			78,137
Others		574,957		(71	)		(155,404	)		(11,995	)		407,487

	W	3,940,927		(11,308	)		(2,310,088	)		(575,454	)		1,044,077

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

21.

Intangible Assets other than Goodwill, Continued

(2)

Changes in intangible assets for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance
Software	W	162,596			16,466		(51	)		(62,145	)		—			69,960			186,826
(Government grants)		(91	)		—		—			40			—			(7	)		(58	)
Copyrights, patents rights and other industrial rights		35,187			144		(38	)		(5,768	)		—			(275	)		29,250
Mining rights		41,902			2,573		—			(3,773	)		—			4,411			45,113
Development expenditures		72,944			—		—			(18,391	)		—			5,393			59,946
(Government grants)		(3,820	)		—		—			1,081			—			(318	)		(3,057	)
Intangible assets under development		81,430			19,855		—			—			(14	)		(38,032	)		63,239
(Government grants)		(7,326	)		—		—			—			—			5,481			(1,845	)
Usage rights of donated assets and others		169,783			—		—			(8,461	)		—			(823	)		160,499
Leasehold rights		5,848			—		—			(720	)		—			—			5,128
Greenhouse gas emissions rights		78,137			64,148		—			—			—			(97,399	)		44,886
Others		407,558			1,960		(79	)		(18,973	)		—			(21,850	)		368,616
(Government grants)		(71	)		—		—			3			—			—			(68	)

	W	1,044,077			105,146		(168	)		(117,107	)		(14	)		(73,459	)		958,475


In millions of won	December 31, 2021
	Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance
Software	W	152,163			18,834		(1	)		(77,881	)		—			69,481			162,596
(Government grants)		(136	)		—		—			64			—			(19	)		(91	)
Copyrights, patents rights and other industrial rights		42,916			166		(131	)		(7,771	)		—			7			35,187
Mining rights		42,390			1,022		—			(3,526	)		—			2,016			41,902
Development expenditures		95,166			309		—			(37,033	)		—			14,502			72,944
(Government grants)		(5,043	)		—		—			1,439			—			(216	)		(3,820	)
Intangible assets under development		67,018			51,988		—			—			—			(37,576	)		81,430
(Government grants)		(7,203	)		—		—			—			—			(123	)		(7,326	)
Usage rights of donated assets and others		184,475			—		—			(13,594	)		—			(1,098	)		169,783
Leasehold rights		6,340			—		—			(834	)		—			342			5,848
Greenhouse gas emissions rights		61,373			78,091		—			(31	)		—			(61,296	)		78,137
Others		416,346			2,229		—			(26,998	)		14			15,967			407,558
(Government grants)		(75	)		—		—			4			—			—			(71	)

	W	1,055,730			152,639		(132	)		(166,161	)		14			1,987			1,044,077

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

21.

Intangible Assets other than Goodwill, Continued

(3)

Significant specific intangible assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won and thousands of Australian dollars
September 30, 2022
Type	Description	Currency	Amount		Remaining useful lives
Software	ORACLE license for SDIS integrated DB	KRW		5,921	3 years and 7 months
Copyrights, patents rights and other industrial rights	Contributions to ARP NRC DC	KRW		21,915	5 years and 3 months
Mining rights	Mining rights of Bylong mine	AUD		—	— (*)
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		18,907	4 years and 2 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		8,171	7 years and 9 months
Others	Occupancy and use of public waters	KRW		77,565	14 years and 4 months
	Greenhouse gas emissions rights	KRW		44,886	—
	Business rights	KRW		156,149	27 years and 2 months

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


In millions of won and thousands of Australian dollars
December 31, 2021
Type	Description	Currency	Amount		Remaining useful lives
Software	DAS MS-SQL CORE license	KRW		3,817	2 years and 8 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		1,851	9 months
	Contributions to ARP NRC DC	KRW		25,045	6 years
Mining rights	Mining rights of Bylong mine	AUD		—	— (*)
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		22,310	4 years and 11 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		8,962	8 years and 6 months
Others	Occupancy and use of public waters	KRW		81,623	15 years and 1 month
	Greenhouse gas emissions rights	KRW		78,137	—
	Business rights	KRW		160,459	27 years and 11 months

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

(4)

For the nine-month periods ended September 30, 2022 and 2021, the Group recognized research and development expenses of W488,514 million and W488,134 million, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

22.

Trade and Other Payables

Trade and other payables as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Trade payables	W	7,015,541		—		4,780,260		—
Non-trade payables		1,437,956		2,151,158		1,536,976		2,032,260
Accrued expenses		1,471,204		8,276		1,174,765		8,095
Leasehold deposits received		2,451		35		1,699		741
Other deposits received		116,203		27,235		72,063		68,050
Lease liabilities		685,321		3,995,328		583,558		3,826,945
Dividends payable		3,114		—		4,105		—
Others (*)		—		75,052		—		60,407

	W	10,731,790		6,257,084		8,153,426		5,996,498

(*)

Details of others as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Advance received from local governments	W	—		3,477		—		3,477
Others		—		71,575		—		56,930

	W	—		75,052		—		60,407

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities

(1)

Borrowings and debt securities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Current liabilities
Short-term borrowings	W	6,856,931			2,920,563
Current portion of long-term borrowings		3,592,103			1,463,703
Current portion of debt securities		10,671,831			9,652,986
Less: Current portion of discount on long-term borrowings		(1,289	)		(2,048	)
Less: Current portion of discount on debt securities		(5,515	)		(5,370	)

		21,114,061			14,029,834

Non-current liabilities
Long-term borrowings		2,897,190			2,278,481
Debt securities		85,689,155			64,385,784
Less: Discount on long-term borrowings		(16,912	)		(12,857	)
Less: Discount on debt securities		(187,584	)		(152,760	)
Add: Premium on debt securities		825			1,031

		88,382,674			66,499,679

	W	109,496,735			80,529,513

(2)

Repayment schedule of borrowings and debt securities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
September 30, 2022
Type	Borrowings		Debt Securities
Less than 1 year	W	10,449,034		10,671,831
1~ 5 years		1,387,551		55,872,335
Over 5 years		1,509,639		29,816,820

	W	13,346,224		96,360,986


In millions of won
December 31, 2021
Type	Borrowings		Debt Securities
Less than 1 year	W	4,384,266		9,652,986
1~ 5 years		1,013,500		34,156,038
Over 5 years		1,264,981		30,229,746

	W	6,662,747		74,038,770

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(3)

Short-term borrowings as of September 30, 2022 and December 31, 2021 are as follows:

In millions of won and thousands of foreign currencies

September 30, 2022

Type

Creditor

Interest rate (%)

Maturity

Foreign
currency

Local
currency

Local short-term borrowings

DB financial investment and others

2.80~4.60

2022.10.04 ~ 2023.04.07

—

4,548,760

Local short-term borrowings

Nonghyup Bank and others

3M CD + 1.11~1.14

2023.05.25 ~ 2023.06.09

—

1,500,000

Foreign short-term borrowings

Shinhan Bank

2.77~2.91

2022.10.25 ~ 2022.11.02

USD

66,987

96,113

Foreign short-term borrowings

Shinhan Bank and others

SOFR(1M) + 0.65~1.63

2022.10.22 ~ 2023.02.27

USD

146,183

209,743

Foreign short-term borrowings

Korea Development Bank and others

2.21~3.64

2022.10.21 ~ 2023.01.30

USD

339,610

487,273

Local bank overdraft

Woori Bank

Standard overdraft
rate + 1.32

2023.02.24

—

15,042

6,856,931

In millions of won and thousands of foreign currencies

December 31, 2021

Type

Creditor

Interest rate (%)

Maturity

Foreign
currency

Local
currency

Local short-term borrowings

DB financial investment and others

1.96~4.60

2022.01.07 ~ 2022.12.31

—

2,030,886

Electronic short-term bonds

BNK Securities and others

1.35~1.77

2022.01.21 ~ 2022.02.08

—

100,000

Foreign short-term borrowings

Shinhan Bank and others

0.34~0.45

2022.01.04 ~ 2022.03.30

USD

157,533

186,755

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD

173,042

205,142

Foreign short-term borrowings

Shinhan Bank and others

0.57~0.80

2022.06.17 ~ 2022.08.31

USD

78,319

92,847

Foreign short-term borrowings

Credit Agricole and others

0.04

2022.06.28

EUR

72,199

96,915

Local bank overdraft

Korea Development Bank and others

1.73~2.25

2022.01.07 ~ 2022.02.26

—

208,018

2,920,563

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(4)

Long-term borrowings as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won and thousands of foreign currencies
September 30, 2022
Type		Interest rate (%)		Maturity		Foreign currency		Local currency

Local long-term borrowings
Korea Development Bank	Others		0.50		2023~2044		—	W	2,227
	Facility		2.50~4.60		2022~2028		—		31,186
	Facility		CB rate+0.90		2029		—		9,985
	Operating funds		1yr KoFC bond rate + 0.81~0.91		2023~2024		—		54,300
Hana Bank and others	Commercial Paper		3M CD+0.13~1.20		2023~2027		—		3,250,000
	Facility		4.60~4.92		2027~2028		—		8,986
	Facility		3yr KTB rate-1.25		2022~2028		—		4,098
Export-Import Bank of Korea	Project loans		1.50		2026		—		11,785
	Facility		1.32		2028		—		32,000
	Operating funds		1.78		2023		—		15,700
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		3,053
	Facility		3yr KTB rate-2.25		2022~2024		—		597
	Project loans		—		2023~2027		—		5,642
	Others		1.75		2028		—		4,350
Shinhan Bank	Facility		CB rate+1.10		2028		—		12,782
	Commercial Paper		3M CD+0.38		2025		—		150,000
	Others		3.95		2034		—		80,242
	Others		Standard overdraft rate+1.00 CB rate+0.90		2029~2034		—		87,231
Kookmin Bank	Facility		MOR+0.79 3M CD+1.79		2022~2031		—		50,136
Others	Facility		2.80~6.80		2023~2039		—		669,024
	Facility		CB rate+1.10 3.58		2028~2036		—		53,633
	PF Refinancing		1.75~4.06 CB rate+1.25		2029~2035		—		123,907
	PF Refinancing		3.80~5.00		2030~2034		—		67,676
	Others		4.40~7.90		2038~2039		—		87,685
	Others		1.80~5.80		2031~2044		—		63,230

									4,879,455

Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2026		USD 8,744		12,545
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036		USD 86,515		124,132
	Direct loan and others		3M Libor+2.75~3.70		2027		JOD 96,729		195,751
	PF Loan		6M Libor+1.70~2.50		2032		USD 94,916		136,185
POSCO and others	Shareholder’s loan		8.00		2025		USD 10,612		15,226
	Shareholder’s loan		8.00		2031		JOD 4,853		9,821
Samsung Life Insurance and others	Syndicated Loan		3.10~8.00		2032		JPY 4,752,934		47,209
Woori Bank and others	Syndicated Loan		JPY 6M Libor+2.00		2032		JPY 2,613,385		25,957
Solar Construction Lendings, LLC	PF Loan		5.0		2025		USD 32,600		46,774
Kiwoom Solar Power Professional Investor Private Placement Investment Trust V	Senior borrowing		3.90		2029		EUR 43,429		61,183
IFC and others	Others		6M Libor+5.00 SOFR(1M)+0.11~0.75 SOFR(3M)+1.98		2025~2031		USD 464,748		666,820
Federal Financing Bank and others	PF Loan		6.00		2038		USD 59,680		85,628
DBS Bank and others	Facility		1M BBSY+1.40~2.25		2025		AUD 194,762		181,737
Others	Others		4.60		2028		USD 606		870

									1,609,838

									6,489,293
Less: Discount on long-term borrowings									(18,201	)
Less: Current portion of long-term borrowings									(3,592,103	)
Add: Current portion of discount on long-term borrowings									1,289

								W	2,880,278

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(4)

Long-term borrowings as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won and thousands of foreign currencies
December 31, 2021
Type		Interest rate (%)		Maturity		Foreign currency		Local currency

Local long-term borrowings
Korea Development Bank	Others		0.50		2023~2044		—	W	2,509
	Facility		2.50~4.60		2022~2028		—		39,430
	Operating funds		2.33		2022		—		20,000
	Operating funds		1yr KoFC bond rate + 0.81~0.95		2022~2023		—		64,300
Hana Bank	Commercial Paper		3M CD+0.13~0.43		2022~2025		—		1,050,000
	Facility		4.60		2028		—		9,647
	Facility		3yr KTB rate-1.25		2022~2028		—		4,485
IBK	PF Refinancing		CD+1.25		2030		—		8,589
Export-Import Bank of Korea	Project loans		1.50		2026		—		13,258
	Facility		1.32		2028		—		32,000
	Operating funds		1.78		2023		—		15,700
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		8,971
	Facility		3yr KTB rate-2.25		2022~2024		—		995
	Project loans		—		2023		—		1,197
	Others		1.75		2028		—		4,893
Shinhan Bank and others	Facility		CB rate+1.10		2028		—		14,470
	Commercial Paper		3M CD+0.38		2025		—		150,000
	Others		3.95		2034		—		84,179
	Others		Standard overdraft rate+1.00		2034		—		84,179
Kookmin Bank	Facility		MOR+0.79 3M CD+1.79		2022~2031		—		59,333
Others	Facility		2.80~6.80		2024~2039		—		620,185
	Facility		CB rate+0.90~1.10 3M CD+1.60 3.37		2028~2037		—		171,733
	PF Refinancing		3.80~5.00		2030~2034		—		71,742
	PF Refinancing		1.75		2029		—		22,265
	Others		4.40~7.90		2022~2038		—		116,367
	Others		1.80~4.50		2031~2034		—		49,928

									2,720,355

Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2026		USD 8,744		10,366
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036		USD 89,823		106,485
	Direct loan and others		3M Libor+2.75~3.70		2027		JOD 107,868		180,363
	PF Loan		6M Libor+1.70~2.50		2032		USD 103,340		122,509
POSCO and others	Shareholder’s loan		8.00		2025		USD 11,953		14,171
	Shareholder’s loan		8.00		2031		JOD 4,853		8,114
Samsung Life Insurance and others	Syndicated Loan		3.10~8.00		2032		JPY 5,144,387		53,000
Woori Bank and others	Syndicated Loan		JPY 6M Libor+2.00		2032		JPY 2,820,708		29,060
Kiwoom Solar Power Professional Investor Private Placement Investment Trust V	Senior borrowing		3.90		2029		EUR 36,311		48,741
IFC and others	Others		6M Libor+5.00		2031		USD 230,018		272,686
Federal Financing Bank and others	PF Loan		2.39~6.00		2031~2038		USD 94,135		111,597
Others	Others		—		—		USD 54,607		64,737

									1,021,829

									3,742,184
Less: Discount on long-term borrowings									(14,905	)
Less: Current portion of long-term borrowings									(1,463,703	)
Add: Current portion of discount on long-term borrowings									2,048

								W	2,265,624

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(5)

Local debt securities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
	Issue date	Maturity	Interest rate (%)	September 30, 2022			December 31, 2021
Electricity Bonds	2012.03.27~2022.09.29	2022.10.24~2052.04.21	1.02~5.69	W	52,380,000			34,080,000
Corporate Bonds (*)	2009.10.16~2022.08.24	2022.10.22~2052.08.24	1.00~5.84		28,762,012			28,194,472
Corporate Bonds	2021.05.26	2025.08.31~2041.05.25	2.00~4.94		26,434			—

					81,168,446			62,274,472
Less: Discount on local debt securities					(55,889	)		(52,723	)
Less: Current portion of local debt securities					(8,637,075	)		(7,432,647	)
Add: Current portion of discount on local debt securities					2,473			2,510

				W	72,477,955			54,791,612

(*)

Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to W1,619 million, may exercise the early redemption rights on the 5th year (March 31, 2021) from the date of issuance of the bonds and every year on March 31 thereafter, until the year before the redemption date.

(6)

Foreign debt securities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won and thousands of foreign currencies
September 30, 2022
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~7.95		USD 278,701	W	399,880
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		451,556
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		411,673
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000		143,480
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		430,440
FY-17	2017.07.25	2027.07.25	3.13		USD 300,000		430,440
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		56,353
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		57,893
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		301,587
FY-18	2018.06.07~2018.07.25	2023.06.07~2023.07.25	3.75~3.88		USD 1,400,000		2,008,720
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		294,106
FY-19	2019.06.24	2024.06.24	2.50		USD 500,000		717,400
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		441,159
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000		279,935
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 360,899		517,818
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000		430,440
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000		717,400
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000		717,400
FY-20	2020.08.03	2026.02.03	1.00		USD 300,000		430,440
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000		645,660
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000		717,400
FY-21	2021.08.09	2026.08.09	1.25		USD 300,000		430,440
FY-21	2021.09.24	2026.09.24	1.13		USD 300,000		430,440
FY-22	2022.04.21	2027.04.21	3.63		USD 300,000		430,440
FY-22	2022.05.06	2025.05.06	3.60		USD 500,000		717,400
FY-22	2022.06.14	2025.06.14~2027.06.14	3.63~4.00		USD 800,000		1,147,840
FY-22	2022.06.28	2025.06.28	4.13		USD 300,000		430,440
FY-22	2022.07.27	2027.07.27	4.25		USD 700,000		1,004,360

							15,192,540
Less: Discount on foreign debt securities							(137,210	)
Add: Premium on foreign debt securities							825
Less: Current portion of foreign debt securities							(2,034,756	)
Add: Current portion of discount on foreign debt securities							3,042

						W	13,024,441

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

23.

Borrowings and Debt Securities, Continued

(6)

Foreign debt securities as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won and thousands of foreign currencies
December 31, 2021
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~7.95		USD 278,701	W	330,400
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		373,097
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		340,144
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		889,125
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000		118,550
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		355,650
FY-17	2017.06.19~2017.07.25	2022.06.19~2027.07.25	2.63~3.13		USD 800,000		948,400
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		53,694
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		58,968
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		250,850
FY-18	2018.06.07~2018.07.25	2023.06.07~2023.07.25	3.75~3.88		USD 1,400,000		1,659,700
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38		USD 800,000		948,400
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		259,494
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		389,241
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000		355,650
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000		257,667
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 371,947		440,943
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000		355,650
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000		592,750
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000		592,750
FY-20	2020.08.03	2026.02.03	0.61		USD 300,000		355,650
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000		533,475
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000		592,750
FY-21	2021.08.09	2026.08.09	1.25		USD 300,000		355,650
FY-21	2021.09.24	2026.09.24	1.13		USD 300,000		355,650

							11,764,298
Less: Discount on foreign debt securities							(105,407	)
Add: Premium on foreign debt securities							1,031
Less: Current portion of foreign debt securities							(2,220,339	)
Add: Current portion of discount on foreign debt securities							2,860

						W	9,442,443

(7)

Changes in borrowings and debt securities for the nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022			September 30, 2021
Beginning balance	W	80,529,513			69,724,581
Cash flow		26,148,128			4,792,171
Effect of exchange rate fluctuations		2,857,565			1,007,649
Others		(38,471	)		146,417

Ending balance	W	109,496,735			75,670,818

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

24.

Lease

1)	Group as a lessee

(1)

Lease contracts

The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized W171,857 million and W139,481 million respectively, as expense for the nine-month periods ended September 30, 2022 and 2021. The Group also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e., approximately less than W5 million), and recognized W1,637million and W1,430 million respectively, as expense for the nine-month periods ended September 30, 2022 and 2021. The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2)

Right-of-use assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Acquisition cost		Accumulated depreciation			Book value
Land	W	823,749		(206,237	)		617,512
Buildings		126,745		(53,114	)		73,631
Structures		28,964		(6,405	)		22,559
Machinery		1,642		(865	)		777
Ships		4,167,438		(1,457,874	)		2,709,564
Vehicles		35,783		(20,223	)		15,560
Others (*)		2,738,533		(2,411,302	)		327,231

	W	7,922,854		(4,156,020	)		3,766,834

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


In millions of won	December 31, 2021
	Acquisition cost		Accumulated depreciation			Book value
Land	W	814,795		(162,000	)		652,795
Buildings		106,823		(43,939	)		62,884
Structures		26,374		(5,226	)		21,148
Machinery		1,308		(743	)		565
Ships		4,217,735		(1,188,516	)		3,029,219
Vehicles		30,375		(16,757	)		13,618
Others (*)		2,650,728		(2,371,560	)		279,168

	W	7,848,138		(3,788,741	)		4,059,397

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

24.

Lease, Continued

(3)

Changes in right-of-use assets for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
Land	W	652,795		8,919		(50,154	)		—			5,952			617,512
Buildings		62,884		29,166		(20,355	)		(520	)		2,456			73,631
Structures		21,148		2,689		(1,278	)		—			—			22,559
Machinery		565		334		(122	)		—			—			777
Ships		3,029,219		—		(296,955	)		—			(22,700	)		2,709,564
Vehicles		13,618		11,388		(6,711	)		(969	)		(1,766	)		15,560
Others		279,168		77,222		(34,198	)		(271	)		5,310			327,231

	W	4,059,397		129,718		(409,773	)		(1,760	)		(10,748	)		3,766,834


In millions of won	December 31, 2021
	Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
Land	W	706,579		7,312		(57,231	)		—			(3,865	)		652,795
Buildings		47,222		22,336		(25,780	)		(1,469	)		20,575			62,884
Structures		20,486		2,198		(1,536	)		—			—			21,148
Machinery		695		—		(130	)		—			—			565
Ships		3,437,363		9,694		(411,291	)		—			(6,547	)		3,029,219
Vehicles		13,525		9,583		(8,162	)		(7	)		(1,321	)		13,618
Others		316,296		27,090		(54,435	)		(10,311	)		528			279,168

	W	4,542,166		78,213		(558,565	)		(11,787	)		9,370			4,059,397

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

24.

Lease, Continued

(4)

Lease liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Less than 1 year	W	717,375			620,121
1 ~ 5 years		2,336,112			2,158,145
More than 5 years		2,178,806			2,150,722

		5,232,293			4,928,988
Less: Discount		(551,644	)		(518,485	)

Present value of lease payment	W	4,680,649			4,410,503

(5)

The details of the liquidity classification of lease liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Current lease liabilities	W	685,321		583,558
Non-current lease liabilities		3,995,328		3,826,945

	W	4,680,649		4,410,503

(6)

Changes in lease liabilities for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance		Increase		Decrease			Interest expenses		*Others ()**		Ending balance
Lease liabilities	W	4,410,503		120,177		(514,236	)		71,591		592,614		4,680,649

In millions of won	December 31, 2021
	Beginning balance		Increase		Decrease			Interest expenses		*Others ()**		Ending balance
Lease liabilities	W	4,621,096		73,090		(665,687	)		93,651		288,353		4,410,503

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

24.

Lease, Continued

(7)

Details of expense relating to lease contracts as lessee for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Depreciation of right-of-use assets	W	139,301		409,773		135,675		425,366
Interest expenses of lease liabilities		24,610		71,591		22,438		69,485
Lease expenses for short-term leases		47,519		171,857		82,529		139,481
Lease expenses for leases of low-value assets		667		1,639		594		1430
Variable lease payments		37,271		91,966		35,125		45,721

	W	249,368		746,826		276,361		681,483

(8)

The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value asset, amounts to W779,698 million and W701,364 million, for the nine-month periods ended September 30, 2022 and 2021, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

24.

Lease, Continued

2)	Group as a lessor

(1)

Finance lease contracts

The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25-year lease term, and an 89.1MW level Fujeij wind power plant over a 20-year lease term. Also, the Group has provided fly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 26 energy storage system installation projects and 128 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Group entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

(2)

Profit and loss related to finance lease for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:

In millions of won

September 30, 2022

September 30, 2021

Three-month
period ended

Nine-month
period ended

Three-month
period ended

Nine-month
period ended

Finance income on the net investment in the lease

32,867

93,255

28,257

83,884

(3)

Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Less than 1 year	W	204,993			172,528
1 ~ 2 years		191,344			163,937
2 ~ 3 years		187,921			158,933
3 ~ 4 years		185,601			156,450
4 ~ 5 years		189,359			155,068
More than 5 years		1,777,704			1,588,403

		2,736,922			2,395,319
Less: Unearned finance income		(1,345,846	)		(1,194,627	)

Net investment in the lease (*)	W	1,391,076			1,200,692

(*)	Including the present value of unguaranteed residual value amounting to W25,357 million and W19,574 million, as of September 30, 2022 and December 31, 2021, respectively.

The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 0.00% up to 17.28% per year as of September 30, 2022. (prior year : 0.00% ~ 16.83%)

(4)

Changes in the allowance for doubtful accounts of finance lease receivables for the nine-month periods ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Beginning balance	W	768		990
Bad debt expense		182		—
Reversal of allowance of doubtful accounts		—		(222	)

Ending balance	W	950		768

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

25.

Employment Benefits

(1)

Employment benefit obligations as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Net defined benefit asset	W	99,665		20,871
Net defined benefit obligations		1,138,415		1,675,741
Other long-term employee benefit obligations		2,781		3,417

(2)

Principal assumptions used for actuarial valuation as of September 30, 2022 and December 31, 2021 are as follows:


	September 30, 2022	December 31, 2021
Discount rate	5.03% ~ 5.07%	2.51% ~ 2.60%
Future salary and benefit levels	4.28%	4.28%
Weighted average duration	8.50 years	10.39 years

(3)

Details of expense relating to defined benefit plans for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022						September 30, 2021
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Current service cost	W	123,273			364,785			129,133			385,582
Interest cost		28,784			84,440			22,872			66,980
Expected return on plan assets		(17,811	)		(52,947	)		(12,933	)		(38,594	)
Past service cost		95			95			—			—

	W	134,341			396,373			139,072			413,968

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


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Cost of sales	W	100,688		296,479		101,008		304,565
Selling and administrative expenses		20,418		59,661		24,118		67,498
Others (Construction-in-progress and others)		13,235		40,233		13,946		41,905

	W	134,341		396,373		139,072		413,968

In addition, for the nine-month periods ended September 30, 2022 and 2021, employee benefit obligations expenses of W81,345 million and W48,854 million, respectively, are recognized as cost of sales, and W14,745 million and W7,866 million, respectively, are recognized as selling and administrative expenses, and W10,046 million and W8,942 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

25.

Employment Benefits, Continued

(4)

Details of defined benefit obligations as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Present value of defined benefit obligation from funded plans	W	3,897,931			4,564,417
Fair value of plan assets		(2,859,181	)		(2,909,547	)

Net liabilities incurred from defined benefit plans	W	1,038,750			1,654,870

(5)

Changes in the present value of defined benefit obligations for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	4,564,417			4,570,614
Current service cost		364,785			524,942
Interest cost		84,440			91,877
Remeasurement component		(830,277)			(345,755	)
Past service cost		95			5,483
Actual payments		(285,604	)		(282,794	)
Others		75			50

Ending balance	W	3,897,931			4,564,417

(6)

Changes in the fair value of plan assets for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	2,909,547			2,670,832
Expected return		52,947			52,782
Remeasurement component		(9,850)			(8,457	)
Contributions by the employers		35,877			317,707
Actual payments		(129,340	)		(123,317	)

Ending balance	W	2,859,181			2,909,547

In addition, gain on accumulated remeasurement component amounting to W474,179 million and gain on accumulated remeasurement component amounting to W98,844 million have been recognized as other comprehensive income or loss for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021, respectively.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

25.

Employment Benefits, Continued

(7)

Details of the fair value of plan assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Equity instruments	W	226,924		344,002
Debt instruments		779,944		744,167
Bank deposits		546,698		407,809
Others		1,305,615		1,413,569

	W	2,859,181		2,909,547

For the nine-month period ended September 30, 2022 and for the year ended December 31, 2021, actual returns on plan assets amounted to W43,097 million and W44,325 million, respectively.

(8)

Remeasurement component recognized in other comprehensive income (loss) for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Actuarial gain from changes in financial assumptions	W	(961,043	)		(258,194	)
Experience adjustments, etc.		130,766			(87,561	)
Expected return		9,850			8,457

	W	(820,427)			(337,298	)

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

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

26.

Provisions

(1)

Provisions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Employment benefits
Provisions for employment benefits	W	1,058,888		—		1,048,939		—

Litigation
Litigation provisions		26,736		71,527		26,269		88,449

Decommissioning cost
Nuclear plants		—		19,747,238		—		19,461,461
Spent fuel		548,293		878,625		457,466		893,196
Radioactive waste		90,654		1,756,882		137,342		1,695,193
PCBs		—		95,626		—		103,665
Other recovery provisions		—		31,473		—		30,231

Others
Power plant regional support program		160,088		—		146,588		—
Transmission regional support program		140,430		—		250,288		—
Provisions for financial guarantee		26,190		53,433		21,032		59,809
Provisions for greenhouse gas emissions obligations		—		—		655,544		—
Others		142,067		104,198		102,408		169,420

	W	2,193,346		22,739,002		2,845,876		22,501,424

(2)

Changes in provisions for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
Employment benefits
Provisions for employment benefits	W	1,048,939		798,193		(788,210	)		(37	)		3			1,058,888

Litigation
Litigation provisions		114,718		23,619		(36,930	)		(3,144	)		—			98,263

Decommissioning cost
Nuclear plants		19,461,461		324,104		(38,289	)		—			(38	)		19,747,238
Spent fuel		1,350,662		322,172		(245,916	)		—			—			1,426,918
Radioactive waste		1,832,535		63,644		(48,643	)		—			—			1,847,536
PCBs		103,665		1,462		(9,501	)		—			—			95,626
Other recovery provisions		30,231		1,815		(527	)		(851	)		805			31,473

Others
Power plant regional support program		146,588		52,470		(38,970	)		—			—			160,088
Transmission regional support program		250,288		27,612		—			(137,470	)		—			140,430
Provisions for financial guarantee		80,841		793		—			(2,011	)		—			79,623
Provisions for RPS		—		401,467		(395,213	)		(6,254	)		—			—
Provisions for greenhouse gas emissions obligations		655,544		—		(575,371	)		(80,173	)		—			—
Others		271,828		20,259		(32,013	)		(19,466	)		5,657			246,265

	W	25,347,300		2,037,610		(2,209,583	)		(249,406	)		6,427			24,932,348

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

26.

Provisions, Continued

(2)

Changes in provisions for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows, continued:


In millions of won	December 31, 2021
	Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
Employment benefits
Provisions for employment benefits	W	1,024,574		1,048,569		(1,024,212	)		—			8			1,048,939

Litigation
Litigation provisions		113,002		67,443		(44,446	)		(15,763	)		(5,518	)		114,718

Decommissioning cost
Nuclear plants		16,974,884		2,545,803		(59,226	)		—			—			19,461,461
Spent fuel		1,354,001		452,063		(455,402	)		—			—			1,350,662
Radioactive waste		1,891,613		3,862		(51,666	)		(11,274	)		—			1,832,535
PCBs		119,019		2,182		(17,408	)		(128	)		—			103,665
Other recovery provisions		25,840		553		(169	)		—			4,007			30,231

Others
Power plant regional support program		144,272		49,596		(47,280	)		—			—			146,588
Transmission regional support program		96,895		306,409		(153,016	)		—			—			250,288
Provisions for financial guarantee		66,354		85,355		(72,109	)		—			1,241			80,841
Provisions for RPS		9,126		445,402		(430,344	)		(24,184	)		—			—
Provisions for greenhouse gas emissions obligations		393,121		547,911		(235,469	)		(2,174	)		(47,845	)		655,544
Others		314,535		104,416		(95,541	)		(40,139	)		(11,443	)		271,828

	W	22,527,236		5,659,564		(2,686,288	)		(93,662	)		(59,550	)		25,347,300

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

27.

Government Grants

(1)

Government grants as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Land	W	(23,479	)		(23,474	)
Buildings		(48,611	)		(52,122	)
Structures		(167,166	)		(172,021	)
Machinery		(131,720	)		(140,082	)
Vehicles		(1,962	)		(1,675	)
Equipment		(557	)		(149	)
Tools		(108	)		(64	)
Construction-in-progress		(135,638	)		(111,822	)
Investment properties		(23	)		(30	)
Software		(58	)		(91	)
Development expenditures		(3,057	)		(3,820	)
Intangible assets under development		(1,845	)		(7,326	)
Other intangible assets		(68	)		(71	)

	W	(514,292	)		(512,747	)

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

27.

Government Grants, Continued

(2)

Changes in government grants for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(34,110	)		—			—		—		34,110			—
Land		(23,474	)		—			—			—		1		(6	)		(23,479	)
Buildings		(52,122	)		—			—			4,112		—		(601	)		(48,611	)
Structures		(172,021	)		—			—			7,162		680		(2,987	)		(167,166	)
Machinery		(140,082	)		—			—			13,022		230		(4,890	)		(131,720	)
Vehicles		(1,675	)		—			(18	)		463		—		(732	)		(1,962	)
Equipment		(149	)		—			—			103		—		(511	)		(557	)
Tools		(64	)		—			—			22		—		(66	)		(108	)
Construction-in-progress		(111,822	)		—			9,924			—		—		(33,740	)		(135,638	)
Investment properties		(30	)		—			—			1		—		6			(23	)
Software		(91	)		—			—			40		—		(7	)		(58	)
Development expenditures		(3,820	)		—			—			1,081		—		(318	)		(3,057	)
Intangible assets under development		(7,326	)		—			—			—		—		5,481			(1,845	)
Other intangible assets		(71	)		—			—			3		—		—			(68	)

	W	(512,747	)		(34,110	)		9,906			26,009		911		(4,261	)		(514,292	)


In millions of won	December 31, 2021
	Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(37,920	)		—			—		—		37,920			—
Land		(23,475	)		—			—			—		1		—			(23,474	)
Buildings		(57,231	)		—			—			5,174		—		(65	)		(52,122	)
Structures		(180,009	)		—			—			9,517		1,811		(3,340	)		(172,021	)
Machinery		(157,785	)		—			—			17,519		531		(347	)		(140,082	)
Vehicles		(632	)		—			(26	)		460		—		(1,477	)		(1,675	)
Equipment		(227	)		—			—			95		—		(17	)		(149	)
Tools		(239	)		—			—			209		—		(34	)		(64	)
Construction-in-progress		(79,126	)		—			5,027			—		—		(37,723	)		(111,822	)
Investment properties		(29	)		—			—			1		—		(2	)		(30	)
Software		(136	)		—			—			64		—		(19	)		(91	)
Development expenditures		(5,043	)		—			—			1,439		—		(216	)		(3,820	)
Intangible assets under development		(7,203	)		—			—			—		—		(123	)		(7,326	)
Other intangible assets		(75	)		—			—			4		—		—			(71	)

	W	(511,210	)		(37,920	)		5,001			34,482		2,343		(5,443	)		(512,747	)

100

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

28.

Deferred Revenue

Deferred revenue for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows which are included in current and non-current non-financial liabilities in the consolidated statements of financial position:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	10,356,555			9,868,189
Increase		1,011,163			1,149,578
Recognized as revenue		(529,027	)		(661,212	)

Ending balance	W	10,838,691			10,356,555

29.

Non-financial Liabilities

Non-financial liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Current		Non-current		Current		Non-current
Advance received	W	4,318,758		272,630		4,157,916		398,056
Unearned revenue		46,518		7,096		40,187		6,517
Deferred revenue		692,442		10,146,249		659,397		9,697,158
Withholdings		464,877		5,749		345,892		5,171
Others		1,612,188		95,099		1,262,941		109,462

	W	7,134,783		10,526,823		6,466,333		10,216,364

101

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

30.

Contributed Capital

(1)

Details of share capital as of September 30, 2022 and December 31, 2021 are as follows:

In millions of won except share information

September 30, 2022

Shares
authorized

Shares issued

Par value
per share
(in won)

Owned by
government (*)

Owned by
others

Total

Common shares

1,200,000,000

641,964,077

5,000

1,640,385

1,569,435

3,209,820

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

In millions of won except share information

December 31, 2021

Shares
authorized

Shares issued

Par value
per share
(in won)

Owned by
government (*)

Owned by
others

Total

Common shares

1,200,000,000

641,964,077

5,000

1,640,385

1,569,435

3,209,820

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

(2)

Details in number of floating capital stock for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


Number of shares	September 30, 2022		December 31, 2021
Beginning balance		641,964,077		641,964,077

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

(3)

Details of share premium as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Share premium	W	843,758		843,758

102

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

31.

Retained Earnings and Dividends Paid

(1)

Details of retained earnings as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Legal reserve (*)	W	1,604,910			1,604,910
Voluntary reserves		27,782,969			33,282,817
Retained earnings before appropriations		(345,122	)		10,365,123

Retained earnings	W	29,042,757			45,252,850

(*)

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

(2)

Details of voluntary reserves as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Reserve for investment on social overhead capital	W	5,277,449		5,277,449
Reserve for research and human development (*)		330,000		330,000
Reserve for business expansion		21,965,520		27,465,368
Reserve for equalizing dividends		210,000		210,000

	W	27,782,969		33,282,817

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

(3)

Changes in retained earnings for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	45,252,850			51,133,601
Loss for the year attributed to owners of the controlling company		(16,695,435	)		(5,309,187	)
Changes in equity method retained earnings		(1,647	)		3,609
Remeasurements of defined benefit liability, net of tax		486,143			201,067
Transfer of gain or loss on valuation of financial assets at FVOCI		—			4,388
Dividends paid		—			(780,628	)
Issuance of shares of capital by subsidiaries and others		846			—

Ending balance	W	29,042,757			45,252,850

103

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

31.

Retained Earnings and Dividends Paid, Continued

(4)

Dividends paid for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won

September 30, 2022

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share
(in won)

Dividends
paid

Common shares

641,964,077

—

641,964,077

—

In millions of won

December 31, 2021

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share
(in won)

Dividends
paid

Common shares

641,964,077

—

641,964,077

1,216

780,628

(5)

Changes in retained earnings of investments in associates and joint ventures for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	3,970			361
Changes		(1,647	)		3,609

Ending balance	W	2,323			3,970

(6)

Changes in remeasurement components related to defined benefit liability for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Beginning balance	W	98,844			(169,234	)
Changes		788,355			327,957
Income tax effect		(302,212	)		(126,890	)
Transfer to reserve for business expansion		(110,808	)		67,011

Ending balance	W	474,179			98,844

104

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

32.

Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interests) as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
Issuer	Hybrid bond	Issued date		Maturity		Yield (%)		September 30, 2022			December 31, 2021
Korea South-East Power Co., Ltd.	1st hybrid bond		2012.12.07		2042.12.06		4.38	W	170,000			170,000
Korea South-East Power Co., Ltd.	2nd hybrid bond		2012.12.07		2042.12.06		4.44		230,000			230,000
Expense of issuance									(1,090	)		(1,090	)

								W	398,910			398,910

Although these instruments have contractual maturity dates, the contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Group decides not to pay dividends on common shares, they are not required to pay interest on the hybrid bonds.

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

105

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

33.

Other Components of Equity

(1)

Other components of equity as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Other capital surplus	W	1,230,265		1,231,109
Accumulated other comprehensive income (loss)		1,022,147		(57,632	)
Other equity		13,294,973		13,294,973

	W	15,547,385		14,468,450

(2)

Changes in other capital surplus for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022								December 31, 2021
	Gains on disposal of treasury stocks		Others			Subtotal			Gains on disposal of treasury stocks		Others			Subtotal
Beginning balance	W	387,524		843,585			1,231,109			387,524		836,581			1,224,105
Changes in consolidation scope		—		(585	)		(585	)		—		43			43
Issuance of share capital of subsidiary and others		—		256			256			—		(491	)		(491	)
Others		—		(515	)		(515	)		—		7,452			7,452

Ending balance	W	387,524		842,741			1,230,265			387,524		843,585			1,231,109

106

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

33.

Other Components of Equity, Continued

(3)

Changes in accumulated other comprehensive income (loss) for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Financial assets at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures		Reserve for overseas operations translation credit			Reserve for gain (loss) on valuation of derivatives			Total
Beginning balance	W	(46,498	)		311,252		(325,170	)		2,784			(57,632	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		32,238			—		—			—			32,238
Shares in other comprehensive income of associates and joint ventures, net of tax		—			920,833		—			—			920,833
Foreign currency translation of foreign operations, net of tax		—			—		174,990			—			174,990
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—		—			(48,282	)		(48,282	)

Ending balance	W	(14,260	)		1,232,085		(150,180	)		(45,498	)		1,022,147


In millions of won	December 31, 2021
	Financial assets at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures		Reserve for overseas operations translation credit			Reserve for gain (loss) on valuation of derivatives			Total
Beginning balance	W	(101,132	)		10,091		(340,930	)		22,394			(409,577	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		59,022			—		—			—			59,022
Shares in other comprehensive income of associates and joint ventures, net of tax		—			301,161		—			—			301,161
Foreign currency translation of foreign operations, net of tax		—			—		15,760			—			15,760
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—		—			(19,610	)		(19,610	)
Others		(4,388	)		—		—			—			(4,388	)

Ending balance	W	(46,498	)		311,252		(325,170	)		2,784			(57,632	)

(4)

Other equity as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Statutory revaluation reserve	W	13,295,098			13,295,098
Changes in other equity		(125	)		(125	)

	W	13,294,973			13,294,973

107

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

34.

Sales

Details of sales for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022
	Domestic				Overseas				Total
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
[Type of goods and services]
Sales of goods	W	19,008,823		49,637,832		168,036		466,572		19,176,859		50,104,404
Electricity		18,488,240		47,956,796		—		—		18,488,240		47,956,796
Heat supply		20,167		315,936		—		—		20,167		315,936
Others		500,416		1,365,100		168,036		466,572		668,452		1,831,672
Sales related to rendering of services		89,142		239,242		88,223		221,698		177,365		460,940
Sales related to construction services		41,698		127,111		199,535		543,581		241,233		670,692
Revenue related to transfer of assets from customers		177,501		529,027		—		—		177,501		529,027

	W	19,317,164		50,533,212		455,794		1,231,851		19,772,958		51,765,063

[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	19,008,823		49,637,832		168,036		466,572		19,176,859		50,104,404
Performance obligations satisfied over time		308,340		895,380		287,759		765,279		596,099		1,660,659

	W	19,317,163		50,533,212		455,795		1,231,851		19,772,958		51,765,063


In millions of won	September 30, 2021
	Domestic				Overseas				Total
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
[Type of goods and services]
Sales of goods	W	15,880,314		43,339,006		107,305		335,441		15,987,619		43,674,447
Electricity		15,551,044		42,518,198		—		—		15,551,044		42,518,198
Heat supply		8,277		133,797		—		—		8,277		133,797
Others		320,993		687,011		107,305		335,441		428,298		1,022,452
Sales related to rendering of services		63,078		168,197		48,564		136,056		111,642		304,253
Sales related to construction services		33,394		96,463		163,583		580,953		196,977		677,416
Revenue related to transfer of assets from customers		165,981		490,931		—		—		165,981		490,931

	W	16,142,767		44,094,597		319,452		1,052,450		16,462,219		45,147,047

[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	15,880,314		43,339,006		107,305		335,441		15,987,619		43,674,447
Performance obligations satisfied over time		262,453		755,591		212,147		717,009		474,600		1,472,600

	W	16,142,767		44,094,597		319,452		1,052,450		16,462,219		45,147,047

108

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

35.

Selling and Administrative Expenses

Selling and administrative expenses for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Salaries	W	282,679		830,817		299,012		840,153
Retirement benefit expense		22,615		74,406		26,369		75,364
Welfare and benefit expense		38,214		110,454		49,151		113,760
Insurance expense		3,365		15,152		5,121		11,840
Depreciation		57,330		167,758		54,924		162,795
Amortization of intangible assets		22,608		64,192		22,947		68,306
Bad debt expense		9,566		7,639		12,761		15,296
Commission		89,041		289,215		103,400		271,899
Advertising expense		4,920		23,890		6,315		18,866
Training expense		2,071		4,723		835		2,565
Vehicle maintenance expense		3,369		8,393		2,248		6,321
Publishing expense		385		2,073		482		2,157
Business promotion expense		778		2,389		826		2,277
Rent expense		17,386		35,782		13,688		29,639
Telecommunication expense		2,025		6,332		2,118		6,652
Transportation expense		263		767		183		560
Taxes and dues		4,979		98,422		5,107		76,285
Expendable supplies expense		1,326		6,464		1,585		5,064
Water, light and heating expense		4,089		13,776		3,027		9,105
Repairs and maintenance expense		36,196		100,688		19,722		53,489
Ordinary development expense		56,053		143,544		53,884		143,116
Travel expense		3,703		11,960		2,132		7,709
Clothing expense		2,207		4,113		1,015		3,823
Survey and analysis expense		247		761		210		617
Membership fee		181		1,303		199		1,155
Others		36,263		94,395		43,540		106,948

	W	701,859		2,119,408		730,801		2,035,761

109

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

36.

Other Income and Expenses

(1)

Other income for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Reversal of other provisions	W	7,712		11,983		—		6,559
Reversal of other allowance for doubtful accounts		10,168		4,555		19		98
Gains on government grants		71		216		188		386
Gains on assets contributed		689		944		572		3,483
Gains on liabilities exempted		65		1,142		61		1,783
Compensation and reparations revenue		20,038		50,597		14,179		67,898
Revenue from foundation fund		—		—		1		1
Revenue from research contracts		—		4,087		1,645		3,711
Rental income		53,781		156,521		51,331		152,006
Others		4,258		35,318		4,030		25,124

	W	96,782		265,363		72,026		261,049

(2)

Other expenses for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Compensation and reparations expenses	W	—		11		281		876
Accretion expenses of other provisions		152		794		1,966		3,055
Depreciation expenses on investment properties		124		350		376		1,101
Depreciation expenses on idle assets		911		2,718		879		2,733
Other bad debt expense		—		19		3,978		11,046
Donations		66,614		96,614		20,559		88,004
Others		8,265		60,752		8,821		19,961

	W	76,066		161,258		36,860		126,776

110

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

37.

Other Gains (Losses)

Composition of other gains (losses) for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022						September 30, 2021
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Other gains
Gains on disposal of property, plant and equipment	W	54,870			132,845			22,807			45,081
Gains on disposal of intangible assets		—			41			1			1
Gains on foreign currency translation		51,049			85,218			16,349			22,955
Gains on foreign currency transactions		14,691			51,812			15,784			33,051
Gains on insurance proceeds		—			5,154			—			144
Others		61,380			206,924			60,406			188,404
Other losses
Losses on disposal of property, plant and equipment		(16,804	)		(68,574	)		(14,792	)		(43,850	)
Losses on disposal of intangible assets		(100	)		(48	)		(1	)		(38	)
Impairment loss on property, plant and equipment		—			—			(2	)		(3,317	)
Impairment loss on intangible assets		—			(14	)		—			—
Losses on foreign currency translation		(41,476	)		(67,812	)		(8,839	)		(13,006	)
Losses on foreign currency transactions		(128,445	)		(216,569	)		(22,876	)		(44,008	)
Others		(10,358	)		(94,039	)		(9,888	)		(106,991	)

	W	(15,193	)		34,938			58,949			78,426

111

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

38.

Finance Income

Finance income for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Interest income	W	90,150		228,421		54,994		162,126
Dividends income		2,860		18,138		3,029		9,172
Gains on disposal of financial assets		7,997		9,104		3,063		5,456
Gains on valuation of financial assets at fair value through profit or loss		3,474		5,808		696		2,817
Gains on valuation of derivatives		1,265,228		2,092,910		474,131		845,687
Gains on transaction of derivatives		217,770		350,983		50,358		104,498
Gains on foreign currency translation		122,792		246,726		54,598		131,146
Gains on foreign currency transactions		9,643		26,212		3,621		11,893
Other finance income		578		897		58		1,048

	W	1,720,492		2,979,199		644,548		1,273,843

112

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

39.

Finance Expenses

Finance expenses for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022				September 30, 2021
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Interest expense	W	722,300		1,925,955		491,138		1,410,523
Losses on sale of financial assets		111		1,018		267		652
Losses on valuation of financial assets at fair value through profit or loss		13,551		27,389		2,072		6,889
Losses on valuation of derivatives		17,589		37,536		8,092		16,503
Losses on transaction of derivatives		9,559		38,328		6,442		32,555
Losses on foreign currency translation		1,688,881		2,929,587		627,101		1,140,402
Losses on foreign currency transactions		209,341		288,026		41,945		58,672
Losses on repayment of financial liabilities		—		15		—		10
Others		1,348		2,844		1,271		3,305

	W	2,662,680		5,250,698		1,178,328		2,669,511

Capitalization rates for the nine-month periods ended September 30, 2022 and 2021 are 2.17%~5.80% and 2.09%~4.33%, respectively.

113

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

40.

Income Taxes

Income tax expense is calculated by adjusting adjustments recognized in the current period, changes in deferred tax assets and liabilities resulting from temporary differences, and income tax expense related to items recognized as other than profit or loss. The Group did not calculate the average effective tax rate for the current and previous periods because income tax benefit occurred.

41.

Assets Held-for-Sale

Assets held-for-sale as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Land (*1,2)	W	31,766		2,907
Buildings (*1,2)		13,001		12,971
Structures (*1)		1		1

	W	44,768		15,879

(*1)

The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Group, made a resolution to sell its old office building in Yongin-si, Gyeonggi-do during the year ended December 31, 2021, and reclassified the buildings, structures, and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

(*2)

The board of directors of Korea Electric Power Corporation, the controlling company, made a resolution to sell the Uijeongbu substation during the nine-month period ended September 30, 2022, and reclassified the buildings and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

114

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

42.

Expenses Classified by Nature

Expenses classified by nature for the nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		24,335,923		24,335,923
Salaries		830,817		3,199,701		4,030,518
Retirement benefit expense		74,406		377,824		452,230
Welfare and benefit expense		110,454		402,054		512,508
Insurance expense		15,152		78,341		93,493
Depreciation		167,758		9,120,116		9,287,874
Amortization of intangible assets		64,192		52,915		117,107
Bad debt expense		7,639		—		7,639
Commission		289,215		220,500		509,715
Advertising expense		23,890		7,026		30,916
Training expense		4,723		8,627		13,350
Vehicle maintenance expense		8,393		7,418		15,811
Publishing expense		2,073		1,949		4,022
Business promotion expense		2,389		2,486		4,875
Rent expense		35,782		128,127		163,909
Telecommunication expense		6,332		7,368		13,700
Transportation expense		767		84,059		84,826
Taxes and dues		98,422		443,174		541,596
Expendable supplies expense		6,464		30,863		37,327
Water, light and heating expense		13,776		43,889		57,665
Repairs and maintenance expense		100,688		1,659,754		1,760,442
Ordinary development expense		143,544		344,970		488,514
Travel expense		11,960		59,022		70,982
Clothing expense		4,113		4,827		8,940
Survey and analysis expense		761		2,948		3,709
Membership fee		1,303		11,669		12,972
Power purchase		—		30,076,617		30,076,617
Others		94,395		767,699		862,094

	W	2,119,408		71,479,866		73,599,274

115

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

42.

Expenses Classified by Nature, Continued

Expenses classified by nature for the nine-month periods ended September 30, 2022 and 2021 are as follows, continued:


In millions of won	September 30, 2021
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		12,824,051		12,824,051
Salaries		840,153		3,135,537		3,975,690
Retirement benefit expense		75,364		353,419		428,783
Welfare and benefit expense		113,760		436,332		550,092
Insurance expense		11,840		82,541		94,381
Depreciation		162,795		8,658,542		8,821,337
Amortization of intangible assets		68,306		57,013		125,319
Bad debt expense		15,296		—		15,296
Commission		271,899		208,694		480,593
Advertising expense		18,866		5,093		23,959
Training expense		2,565		7,319		9,884
Vehicle maintenance expense		6,321		5,690		12,011
Publishing expense		2,157		2,163		4,320
Business promotion expense		2,277		2,409		4,686
Rent expense		29,639		133,223		162,862
Telecommunication expense		6,652		8,638		15,290
Transportation expense		560		31,928		32,488
Taxes and dues		76,285		417,234		493,519
Expendable supplies expense		5,064		29,651		34,715
Water, light and heating expense		9,105		31,479		40,584
Repairs and maintenance expense		53,489		1,669,725		1,723,214
Ordinary development expense		143,116		345,018		488,134
Travel expense		7,709		49,538		57,247
Clothing expense		3,823		5,483		9,306
Survey and analysis expense		617		2,532		3,149
Membership fee		1,155		8,067		9,222
Power purchase		—		15,003,665		15,003,665
Others		106,948		720,266		827,214

	W	2,035,761		44,235,250		46,271,011

116

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

43.

Earnings (Loss) Per Share

(1)

Basic earnings (loss) per share for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In won	September 30, 2022						September 30, 2021
Type	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Basic earnings (loss) per share	W	(9,199	)		(26,007	)		(1,628	)		(2,569	)

(2)

Profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won except number of shares	September 30, 2022						September 30, 2021
Type	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Net profit (loss) attributable to controlling interest	W	(5,905,386	)		(16,695,435	)		(1,045,241	)		(1,649,493	)
Profit (loss) used in the calculation of total basic earnings per share		(5,905,386	)		(16,695,435	)		(1,045,241	)		(1,649,493	)
Weighted average number of common shares		641,964,077			641,964,077			641,964,077			641,964,077

(3)

Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and nine-month periods ended September 30, 2022 and 2021 are as follows:


In number of shares	September 30, 2022				September 30, 2021
Type	Three-Month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
The number of common shares issued at beginning of the year		641,964,077		641,964,077		641,964,077		641,964,077
Weighted average number of common shares		641,964,077		641,964,077		641,964,077		641,964,077

There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the three and nine-month periods ended September 30, 2022 and 2021.

117

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management

(1)

Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022			December 31, 2021
Total borrowings and debt securities	W	109,496,735			80,529,513
Cash and cash equivalents		5,873,363			2,635,238

Net borrowings and debt securities		103,623,372			77,894,275

Total equity		50,421,356			65,317,717

Debt to equity ratio		205.51	%		119.25	%

(2)

Financial risk management

The Group is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), and credit risk. The Group monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. The Group uses derivative financial instruments to hedge certain risk exposures. The Group’s overall financial risk management strategy remains consistent with the prior year.

(i)

Credit risk

Credit risk is the risk of finance loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales activities, securities and derivatives. In addition, credit risk exposure may exist within financial guarantees and unused line of credits. As these financial institutions the Group makes transactions with are reputable financial institutions, the credit risk from them is considered limited. The Group decides credit transaction limits based on evaluation of client’s credit, through information obtained from the credit bureau and disclosed financial position at committing contracts.

①

Credit risk management

Electricity sales, the main operations of the Group are the necessity for daily life and industrial activities of Korean nationals and have importance as one of the national key industries. The Group dominates the domestic market supplying electricity to customers. The Group is not exposed to significant credit risk as customers of the Group are diverse and are from various industries and areas. The Group uses publicly available information and its own internal data related to trade receivables, to rate its major customers and to measure the credit risk that a counter party will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.

②

Impairment and allowance account

In accordance with the Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

118

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022		December 31, 2021
Cash and cash equivalents	W	5,873,363		2,635,238
Financial assets at fair value through profit or loss (*1)		1,565,153		932,736
Derivative assets (trading)		1,503,504		443,027
Financial assets at fair value through other comprehensive income (debt securities)		491		491
Financial assets at amortized cost		32,050		25,273
Loans		1,025,531		909,071
Long-term/short-term financial instruments		1,271,123		1,728,508
Derivative assets (applying hedge accounting)		937,725		204,756
Trade and other receivables		10,721,285		10,029,276
Financial guarantee contracts (*2)		4,216,344		3,718,015

(*1)	Equity investments held by the Group are excluded.

(*2)	Maximum exposure associated with the financial guarantee contracts is the maximum amounts of the obligation.

As of the reporting date, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.

(ii)

Market risk

Market risk is the risk that the Group’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, currency risk and other price risk.

119

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

(iii)

Sensitivity analysis

Significant assets and liabilities with uncertainties in underlying assumptions

①

Defined benefit obligation

A sensitivity analysis of defined benefit obligation assuming a 1%p increase and decrease movements in the actuarial valuation assumptions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won		September 30, 2022						December 31, 2021
Type	Accounts	1%p Increase			1%p Decrease			1%p Increase			1%p Decrease
Future salary increases	Increase (decrease) in defined benefit obligation	W	355,215			(315,825	)		466,832			(407,554	)
Discount rate	Increase (decrease) in defined benefit obligation		(294,013	)		342,012			(422,290	)		499,571

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the nine-month periods ended September 30, 2022 and 2021 are W20,638 million and W19,283 million, respectively.

②

Provisions

Changes in provisions due to movements in underlying assumptions as of September 30, 2022 and December 31, 2021 are as follows:


Type	Accounts	September 30, 2022			December 31, 2021
PCBs	Inflation rate		1.37	%		1.37	%
	Discount rate		1.88	%		1.88	%
Nuclear plants	Inflation rate		1.41	%		1.41	%
	Discount rate		2.20	%		2.20	%
Spent fuel	Inflation rate		2.93	%		2.93	%
	Discount rate		4.49	%		4.49	%

A sensitivity analysis of provisions assuming a 0.1%p increase and decrease movements in the underlying assumptions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won		September 30, 2022						December 31, 2021
Type	Accounts	0.1%p Increase			0.1%p Decrease			0.1%p Increase			0.1%p Decrease
Discount rate	PCBs	W	(147	)		147			(222	)		223
	Nuclear plants		(361,247	)		372,358			(369,540	)		381,026
	Spent fuel		(54,330	)		56,453			(51,430	)		53,438
Inflation rate	PCBs		148			(148	)		224			(224	)
	Nuclear plants		410,058			(398,200	)		403,420			(391,754	)
	Spent fuel		57,269			(55,191	)		54,210			(52,245	)

120

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Management judgment effected by uncertainties in underlying assumptions

①

Foreign currency risk

The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In thousands of foreign currencies	Assets				Liabilities
Type	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
AED		23,205		6,481		26,203		31,637
AUD		4,493		3,733		815,640		926,960
BDT		57,043		50,145		—		577
BWP		1,221		939		—		—
CAD		469		582		—		2,266
CHF		—		—		500,162		500,230
CZK		—		—		218		386
EGP		—		—		1,330		595
EUR		8,560		1,809		40,590		42,981
GBP		—		—		31		—
HKD		—		—		1,651,770		1,651,665
IDR		835,924		768,731		1,138,518		995,510
INR		1,579,162		1,715,900		343,577		342,833
JOD		1,148		1,852		199		118
JPY		365,637		697,747		168,182		153,383
KZT		1,510		1,510		—		—
MGA		1,795,159		4,262,857		332,964		475,807
MMK		210,335		210,335		—		—
MYR		8,252		1,964		—		—
PHP		234,584		164,167		14,594		104,245
PKR		461,443		200,844		260,291		74,423
RUB		—		—		3,381		—
SAR		1,128		2,615		70		—
SEK		—		—		449,200		449,167
THB		—		—		1,209		—
USD		1,328,904		1,381,441		13,402,287		12,023,085
UYU		217,119		90,930		3,720		3,097
VND		370,926		952,135		—		262,372
ZAR		56,068		31,971		—		—

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022					December 31, 2021
Type	10% Increase			10% Decrease		10% Increase			10% Decrease
Increase (decrease) of profit before income tax	W	(1,917,241	)		1,917,241		(1,439,185	)		1,439,185
Increase (decrease) of equity (*)		(1,917,241	)		1,917,241		(1,439,185	)		1,439,185

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of September 30, 2022 and December 31, 2021.

121

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into currency forward agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Group enters into currency forward agreements.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of September 30, 2022, the hedging instrument (cross-currency swap) hedges the risk of the hedged item(repayment of foreign debt securities and others).

②

Interest rate risk

The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1%p increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The Group’s borrowings and debt securities with floating interest rates as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
Type	September 30, 2022		December 31, 2021
Short-term borrowings	W	1,820,898		391,897
Long-term borrowings		5,197,884		2,405,244
Debt securities		306,369		257,667

	W	7,325,151		3,054,808

A sensitivity analysis on the Group’s borrowings and debt securities assuming a 1%p increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022					December 31, 2021
Type	1%p Increase			1%p Decrease		1%p Increase			1%p Decrease
Increase (decrease) of profit before income tax	W	(54,939	)		54,939		(30,548	)		30,548
Increase (decrease) of shareholder’s equity (*)		(54,939	)		54,939		(30,548	)		30,548

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

122

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

③

Electricity rates risk

The Group is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

A sensitivity analysis on the Group’s income for the period assuming a 1% increase and decrease in price of electricity for the nine-month periods ended September 30, 2022 and 2021 is as follows:


In millions of won	September 30, 2022					September 30, 2021
Type	1% Increase		1% Decrease			1% Increase		1% Decrease
Increase (decrease) of profit before income tax	W	479,568		(479,568	)		425,182		(425,182	)
Increase (decrease) of shareholder’s equity (*)		479,568		(479,568	)		425,182		(425,182	)

(*)	The effect on the shareholders’ equity excluding the impact of income taxes.

(iv)

Liquidity risk

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by continuously monitoring forecasted and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

In addition, the Group has established credit lines on its trade financing and bank overdrafts, and through payment guarantees it has received, it maintains an adequate credit (borrowing) line. In addition, the Group has the ability to utilize excess cash or long-term borrowings for major construction investments.

The expected maturities for non-derivative financial liabilities as of September 30, 2022 and December 31, 2021 in detail are as follows:


In millions of won	September 30, 2022
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	24,337,974		18,497,108		47,379,056		36,815,124		127,029,262
Lease liabilities		717,375		734,321		1,601,791		2,178,806		5,232,293
Trade and other payables		10,046,469		331,897		958,682		971,177		12,308,225
Financial guarantee contracts (*)		59,210		15,155		3,963,546		178,432		4,216,343

	W	35,161,028		19,578,481		53,903,075		40,143,539		148,786,123


In millions of won	December 31, 2021
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	15,833,589		11,229,657		28,663,693		36,223,543		91,950,482
Lease liabilities		620,121		636,724		1,521,421		2,150,722		4,928,988
Trade and other payables		7,569,869		777,017		725,231		667,304		9,739,421
Financial guarantee contracts (*)		435,729		—		3,105,599		176,687		3,718,015

	W	24,459,308		12,643,398		34,015,944		39,218,256		110,336,906

(*)	This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of September 30, 2022 and December 31, 2021 are W79,623 million and W80,841 million, respectively.

123

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

The following table shows the details of maturities of non-derivative financial liabilities as of September 30, 2022 and December 31, 2021. This table, based on the undiscounted cash flows of the non-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

The expected maturities for non-derivative financial assets as of September 30, 2022 and December 31, 2021 in detail are as follows:


In millions of won	September 30, 2022
Type	Less than 1 year		1~5 Years		More than 5 years		*Other ()**		Total
Cash and cash equivalents	W	5,873,363		—		—		—		5,873,363
Financial assets at fair value through other comprehensive income		—		—		—		512,762		512,762
Financial assets at amortized cost		21,940		10,101		9		—		32,050
Loans		110,004		434,768		515,061		—		1,059,833
Long-term/short-term financial instruments		633,061		—		4,212		633,850		1,271,123
Financial assets at fair value through profit or loss		1,094,146		638		3,492		567,394		1,665,670
Trade and other receivables		8,367,552		1,145,546		1,219,338		—		10,732,436

	W	16,100,066		1,591,053		1,742,112		1,714,006		21,147,237


In millions of won	December 31, 2021
Type	Less than 1 year		1~5 Years		More than 5 years		*Other ()**		Total
Cash and cash equivalents	W	2,635,238		—		—		—		2,635,238
Financial assets at fair value through other comprehensive income		—		—		—		435,107		435,107
Financial assets at amortized cost		15,422		9,840		11		—		25,273
Loans		88,396		443,146		407,584		—		939,126
Long-term/short-term financial instruments		1,278,014		171,636		286		278,572		1,728,508
Financial assets at fair value through profit or loss		360,833		346		3,130		668,555		1,032,864
Trade and other receivables		8,123,455		1,233,703		679,048		—		10,036,206

	W	12,501,358		1,858,671		1,090,059		1,382,234		16,832,322

(*)	The maturities cannot be presently determined.

124

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(2)

Financial risk management, continued

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	—			—			—			—			—
Gross settlement
- Trading and others		(6,304	)		(14,161	)		(42,040	)		9,422			(53,083	)
- Hedging		—			—			—			(16,795	)		(16,795	)

	W	(6,304	)		(14,161	)		(42,040	)		(7,373	)		(69,878	)


In millions of won	December 31, 2021
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	—			—			—			—			—
Gross settlement
- Trading and others		(6,628	)		(4,954	)		(33,635	)		(2,291	)		(47,508	)
- Hedging		(2,555	)		(638	)		(1,914	)		(23,704	)		(28,811	)

	W	(9,183	)		(5,592	)		(35,549	)		(25,995	)		(76,319	)

125

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk

The fair value of the Group’s actively-traded financial instruments (i.e., FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Group uses that technique.

For trade receivables and payables, the Group considers the carrying value net of impairment as fair value. While for disclosure purposes, the fair value of financial liabilities is estimated by discounting a financial instruments with similar contractual cash flows based on current market interest rates applied to similar financial instruments.

(i)

Fair value and book value of financial assets and liabilities as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
Type	Book value		Fair value		Book value		Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income	W	512,762		512,762		435,107		435,107
Derivative assets (trading)		1,503,504		1,503,504		443,027		443,027
Derivative assets (applying hedge accounting)		937,725		937,725		204,756		204,756
Financial assets at fair value through profit or loss		1,665,670		1,665,670		1,032,864		1,032,864

	W	4,619,661		4,619,661		2,115,754		2,115,754

Assets carried at amortized cost
Financial assets at amortized cost	W	32,050		32,050		25,273		25,273
Loans and receivables		1,025,531		1,025,531		909,071		909,071
Trade and other receivables		10,721,285		10,721,285		10,029,276		10,029,276
Long-term financial instruments		638,062		638,062		450,494		450,494
Short-term financial instruments		633,061		633,061		1,278,014		1,278,014
Cash and cash equivalents		5,873,363		5,873,363		2,635,238		2,635,238

	W	18,923,352		18,923,352		15,327,366		15,327,366

Liabilities recognized at fair value
Derivative liabilities (trading)	W	60,897		60,897		56,256		56,256
Derivative liabilities (applying hedge accounting)		16,796		16,796		21,775		21,775

	W	77,693		77,693		78,031		78,031

Liabilities carried at amortized cost
Secured borrowings	W	107,197		107,197		176,358		176,358
Unsecured bond		96,168,712		87,331,598		73,881,671		69,803,043
Lease liabilities		4,680,649		4,680,649		4,410,503		4,410,503
Unsecured borrowings		13,205,783		13,185,427		6,471,484		5,938,613
Trade and other payables (*)		12,308,225		12,308,225		9,739,421		9,739,421
Overdraft		15,043		15,043		—		—

	W	126,485,609		117,628,139		94,679,437		90,067,938

(*)	Excludes lease liabilities.

126

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk, continued

(ii)

Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount rate used for calculating fair value as of September 30, 2022 and December 31, 2021 are as follows:


Type	September 30, 2022	December 31, 2021
Derivatives	0.65% ~ 11.72%	(-) 0.63% ~ 3.88%
Borrowings and debt securities	0.75% ~ 5.40%	(-) 0.30% ~ 4.38%
Leases	0.00% ~ 17.28%	0.00% ~ 16.83%

(iii)

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.


Level 1:		Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2:		Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3:		Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	345,058		—		167,704		512,762
Derivative assets		—		2,441,229		—		2,441,229
Financial assets at fair value through profit or loss		—		1,659,345		6,324		1,665,669

	W	345,058		4,100,574		174,028		4,619,660

Financial liabilities at fair value
Derivative liabilities	W	—		77,693		—		77,693

In millions of won	December 31, 2021
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	273,826		—		161,281		435,107
Derivative assets		—		647,783		—		647,783
Financial assets at fair value through profit or loss		—		1,027,067		5,797		1,032,864

	W	273,826		1,674,850		167,078		2,115,754

Financial liabilities at fair value
Derivative liabilities	W	—		78,031		—		78,031

The fair value of financial assets (FVTPL and FVOCI) publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted financial assets (FVTPL and FVOCI) is calculated using the valuation results from an external pricing service in which weighted average borrowing rates of interest of evaluated companies are used as a discount rate. The fair value of derivatives is measured using valuation model which is determined at the present value of estimated future cash flows discounted at current market interest rate.

127

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

44.

Risk Management, Continued

(3)

Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the nine-month period ended September 30, 2022 and for the year ended December 31, 2021 are as follows:


In millions of won	September 30, 2022
	Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation and others			Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,797		400		—		128			—			—			6,325
Financial assets at fair value through other comprehensive income
Unlisted securities		160,790		8,201		—		(253	)		—			(1,524	)		167,214
Debt securities		491		—		—		—			—			—			491

In millions of won	December 31, 2021
	Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation and others			Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,692		—		—		105			—			—			5,797
Financial assets at fair value through other comprehensive income
Unlisted securities		163,889		8,929		—		(12,335	)		(13	)		320			160,790
Debt securities		—		500		—		—			—			(9	)		491

128

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

45.

Service Concession Arrangements

(i)

Significant terms and concession period of the arrangement

The Group has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Group provides electricity generated and charge tariff rates designed to recover capital cost, fixed O&M cost, water usage cost, variable O&M cost and special facilities cost during the concession period after building, rehabilitating, and operating the power plant for approximately 30 years (2018~2048) subsequent to the completion of plant construction.

(ii)

Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2018 to 2048. At the end of the concession period, PT PLN has an option to take over the ownership of the power plant from the Group.

(iii)

Classification method

This project allows PT PLN to acquire ownership of the plant after the end of the 30-years contract period

(iv)

The Group’s expected future collections of service concession arrangements as of September 30, 2022 are as follows:


In millions of won
Type	Amounts
Less than 1 year	W	35,826
1 ~ 2 years		35,991
2 ~ 3 years		35,911
Over 3 years		630,137

	W 737,865

129

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties

(1)

Related parties of the Group as of September 30, 2022 are as follows:


Type		Related party
Parent		Republic of Korea government

Subsidiaries (159 subsidiaries)		Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company, S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, KEPCO KPS Philippines Corp., KOSPO Chile SpA, PT. KOWEPO Sumsel Operation And Maintenance Services, Commerce and Industry Energy Co., Ltd., Gyeongju Wind Power Co., Ltd., California Power Holdings, LLC, EWP Renewable Corporation, Hee Mang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., KOEN Bylong Pty., Ltd., KOWEPO Bylong Pty., Ltd., KOSPO Bylong Pty., Ltd., EWP Bylong Pty., Ltd., KOWEPO Lao International, KOMIPO Bylong Pty., Ltd., Energy New Industry Specialized Investment Private Investment Trust., KEPCO US Inc., KEPCO Alamosa LLC, KEPCO Mangilao Holdings LLC, Mangilao Investment LLC, KEPCO Mangilao Solar, LLC, Jeju Hanlim Offshore Wind Co., Ltd., PT. Siborpa Eco Power, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., KEPCO Mangilao America LLC, Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd., Guam Ukudu Power LLC, TS Energy No. 25 Co., Ltd., KPS Partners Co., Ltd., KEPCO E&C Service Co., Ltd., Moha solar Co., Ltd., KHNP USA LLC, KOMIPO Vanphong Power Service LLC, Ogiri Solar Power Co., Ltd., BSK E-New Industry Fund X, Energy Innovation Fund I, KHNP Chile SpA, Yeong Yang Apollon Photovoltaic Co., Ltd., Yeong Yang Corporation Co., Ltd., SolarVader Co., Ltd., Yeong Yang Innovation Co., Ltd., Yeong Yang Horus Photovoltaic Co., Ltd., Yeong Yang Solar Management Co., Ltd., LSG Hydro Power Limited, KOEN Bio Co., Ltd., KOMIPO Energy Solution America, LLC, Elara Investment Holdings, LLC, Elara Equity Holdings, LLC, Elara Class B Holdings, LLC, Elara Class B Member, LLC, Elara Development Holdings, LLC, KOMIPO Development, LLC (formerly, Elara Development, LLC), Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., KOWEPO Europe B.V., CVS Equity Holdings, LLC, CVS Class B Holdings, LLC, CVS Development Holdings, LLC, CVS Development, LLC, CVS Class B Member, LLC, CVS Energy Holdings, LLC, Concho Valley Energy, LLC, Concho Valley Solar, LLC, Jeongam Wind Power Co., Ltd., Yeongdeok Sunrise Wind Power Co., Ltd., KHNP Spain, S.L., UI Carbon-Neutrality Fund, KA Power Limited, Seobusambo highway photovoltaics Co., Ltd., Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.), Digital Innovation Growth Fund, EWP Australia Pty., Ltd., Columboola Solar Farm Hold Co Pty., Ltd., J Wind First, LLC

Associates (96 associates)		Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Taebaek Wind Power Co., Ltd., Taebaek Guinemi Wind Power Co., Ltd., Pyeongchang Wind Power Co., Ltd., Daeryun Power Co., Ltd., Changjuk Wind Power Co., Ltd., KNH Solar Co., Ltd., S-Power Co., Ltd., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Hansuwon KNP Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., Yaksu ESS Co., Ltd., PND Solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., Gwangbaek Solar Power Investment Co., Ltd., Go deok Clean Energy Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Goesan Solar park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., Kosture Co., Ltd., Taebaek Gadeoksan Wind Power Co., Ltd., Chuncheon Green Energy Co., Ltd., Yeomsubong Wind Power Co., Ltd., Yeongyang Wind Power Corporation II, Haeparang Energy Co., Ltd., Saemangeum Sebit Power Plant Co., Ltd., Boulder Solar III, LLC, PlatformN. Co., Ltd., PT. Cirebon Energi Prasarana, Future Convergence Technology Laboratory. Co., Ltd., SC E&G. Co,. Ltd., Wang San Engineering. Co., Ltd., ACE, Co., Ltd., Environment and Energy Co., Ltd., Green Radiation Co., Ltd.

130

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(1)

Related parties of the Group as of September 30, 2022 are as follows, continued:


Type		Related party

Joint ventures (100 joint ventures)		Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P., ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co., Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Chile Solar JV SpA, Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., Horus Solar, S.A. de C.V., Recursos Solares PV de Mexico II, S.A. de C.V., Sunmex Renovables, S.A. de C.V., Stavro Holding II A.B., Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., Dayone Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco Co., Ltd., CAES, LLC, Hapcheon Floating Photovoltaic Power Plant Inc., Busan Industrial Solar Power Co., Ltd., Bitsolar Energy Co., Ltd., Naepo Green Energy Co., Ltd., Pulau Indah O&M Sdn. Bhd., Guadalupe Solar SpA, Omisan Wind Power Co., Ltd., Foresight Iberian Solar Group Holding, S.L., Yeongwol Eco Wind Co., Ltd., Gurae Resident Power Co., Ltd., Cheongju Eco Park Co., Ltd., Prime Swedish Holding AB, Enel X Midland Photovoltaic, LLC, Geumsungsan Wind Power Co., Ltd., KEPCO KPS CARABAO Corp., Goheung New Energy Co., Ltd., Gunsan Land Solar Co., Ltd., CapMan Lynx SCA, SICAR, International Offshore Power Transmission Holding Company Limited, Eumseong Eco Park Co., Ltd., Songsan Green Energy Co., Ltd., Changwon Nu-ri Energy Co., Ltd., Hasami Wind Farm Corporation, PungBack Wind Farm Corporation

Other		Korea Development Bank

131

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(2)

Transactions between the Group and its subsidiaries are eliminated during the consolidation and are not disclosed in notes.

(3)

Related party transactions for the nine-month periods ended September 30, 2022 and 2021 are as follows:

<Sales and Others>


In millions of won		Sales and others
Company name	Transaction type	September 30, 2022		September 30, 2021
<Associates>
Korea Gas Corporation	Electricity sales	W	623,684		71,063
GS Donghae Electric Power Co., Ltd.	Electricity sales		3,618		12,005
Dongducheon Dream Power Co., Ltd.	Electricity sales		6,932		12,226
Shin Pyeongtaek Power Co., Ltd.	Electricity sales		18,677		16,841
Hyundai Green Power Co., Ltd.	Electricity sales and design service		5,883		11,085
S-Power Co., Ltd.	Service		3,282		4,139
Korea Electric Power Industrial Development Co., Ltd.	Service		8,176		8,873
Korea Power Exchange	Service		15,784		18,104
Daeryun Power Co., Ltd.	Electricity sales		1,386		1,390
Goseong Green Power Co., Ltd.	Electricity sales		755,006		294,785
Gangwon Wind Power Co., Ltd.	Electricity sales		1,518		1,815
PT. Cirebon Electric Power	Others		8,729		19,455
Busan Green Energy Co., Ltd.	Electricity sales		144		45
Hyundai Eco Energy Co., Ltd.	Electricity sales		201		134
PT. Bayan Resources TBK	Others		254,457		67,861
Gemeng International Energy Co., Ltd.	Others		—		11,886
Samcheok Eco Materials Co., Ltd.	Electricity sales		416		471
SPC Power Corporation	Others		2,692		13,159
Noeul Green Energy Co., Ltd.	Electricity sales		23		23
Gangneung Eco Power Co., Ltd.	Service		16,985		9,866
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 46 others)	Electricity sales		23,304		10,149

<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity sales		1,738		1,724
KAPES, Inc.	Others		349		201
Daegu Green Power Co., Ltd.	Electricity sales		890		758
Daesan Green Energy Co., Ltd.	Electricity sales		205		379
Nawah Energy Company	Service		88,218		68,864
KEPCO SPC Power Corporation	Others		13,014		24,807
Amman Asia Electric Power Company	Others		14,531		8,537
Seokmun Energy Co., Ltd.	Service		1,202		1,434
Yeongam Solar Power Co., Ltd.	Electricity sales		264		250
Solaseado Solar Power Co., Ltd.	Electricity sales		1,377		2,166
Yeonggwang Wind Power Co., Ltd.	Electricity sales		663		629
Rabigh Electricity Company	Service		11,552		241
Kelar S.A.	Service		16,596		15,380
Cheongna Energy Co., Ltd.	Electricity sales		21,128		10,224
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales		1,415		3,861
Others (Busan Shinho Solar Power Co., Ltd. and 57 others)	Electricity sales		488,842		547,252

<Others>
Korea Development Bank	Electricity sales		3,125		3,239
	Interest income		1,356		638

132

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(3)

Related party transactions for the nine-month periods ended September 30, 2022 and 2021 are as follows, continued:

<Purchase and Others>


In millions of won		Purchase and others
Company name	Transaction type	September 30, 2022		September 30, 2021

<Associates>
Korea Gas Corporation	Purchase of power generation fuel	W	8,198,321		3,745,012
GS Donghae Electric Power Co., Ltd.	Electricity sales		778,883		547,657
Dongducheon Dream Power Co., Ltd.	Electricity sales		1,394,594		516,466
Shin Pyeongtaek Power Co., Ltd.	Electricity sales		801,604		443,186
S-Power Co., Ltd.	Service		780,541		375,102
Korea Electric Power Industrial Development Co., Ltd.	Service		184,327		179,191
Korea Power Exchange	Service		74,067		66,563
Daeryun Power Co., Ltd.	Electricity sales		301,418		110,532
Goseong Green Power Co., Ltd.	Electricity sales		1,442,236		508,325
Gangwon Wind Power Co., Ltd.	Electricity sales		28,940		11,131
Busan Green Energy Co., Ltd.	Electricity sales		12,088		13,441
Hyundai Eco Energy Co., Ltd.	Electricity sales		21,721		21,650
PT. Bayan Resources TBK	Others		72,858		—
Samcheok Eco Materials Co., Ltd.	Electricity sales		9,613		8,820
Noeul Green Energy Co., Ltd.	Electricity sales		8,131		6,987
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 46 others)	Electricity sales		188,434		141,202

<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity sales		418,270		224,053
KAPES, Inc.	Others		2,371		38,387
Daegu Green Power Co., Ltd.	Electricity sales		339,713		195,831
Daesan Green Energy Co., Ltd.	Electricity sales		80,980		67,724
Seokmun Energy Co., Ltd.	Service		46,360		30,434
Yeongam Solar Power Co., Ltd.	Electricity sales		33,265		35,918
Solaseado Solar Power Co., Ltd.	Electricity sales		17,758		21,912
Yeonggwang Wind Power Co., Ltd.	Electricity sales		22,674		17,935
Cheongna Energy Co., Ltd.	Electricity sales		78		57
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales		9,329		8,641
Others (Busan Shinho Solar Power Co., Ltd. and 54 others)	Electricity sales		149,032		33,418

<Others>
Korea Development Bank	Interest expenses		3,141		2,159
	Dividends		—		256,870

133

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(4)

Receivables and payables arising from related party transactions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won		Receivables				Payables
Company name	Type	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
<Associates>
Korea Gas Corporation	Trade receivables	W	6,082		10,015		—		—
	Non-trade receivables and others		19,575		187		—		—
	Trade payables		—		—		895,659		800,509
	Non-trade payables and others		—		—		203,665		759
Goseong Green Power Co., Ltd.	Trade receivables		1,286		495		—		—
	Non-trade receivables and others		83,065		76,855		—		—
	Trade payables		—		—		205,995		218,627
	Non-trade payables and others		—		—		456		59,987
Dongducheon Dream Power Co., Ltd.	Trade receivables		570		6,282		—		—
	Non-trade receivables and others		276		493		—		—
	Trade payables		—		—		218,230		114,613
GS Donghae Electric Power Co., Ltd.	Trade receivables		142		383		—		—
	Non-trade receivables and others		457		272		—		—
	Trade payables		—		—		109,884		113,529
	Non-trade payables and others		—		—		49		17
S-Power Co., Ltd.	Trade receivables		118		82		—		—
	Non-trade receivables and others		44		48		—		—
	Trade payables		—		—		62,440		91,277
Shin Pyeongtaek Power Co., Ltd.	Trade receivables		1,581		1,788		—		—
	Non-trade receivables and others		3,058		3,116		—		—
	Trade payables		—		—		127,648		79,828
	Non-trade payables and others		—		—		203		99
Daeryun Power Co., Ltd.	Trade receivables		139		213		—		—
	Trade payables		—		—		36,390		21,362
Busan Green Energy Co., Ltd.	Trade receivables		1		1		—		—
	Non-trade receivables and others		27,984		20,658		—		—
Gunsan Bio Energy Co., Ltd.	Non-trade receivables and others		11,728		11,728		—		—
Taebaek Gadeoksan Wind Power Co., Ltd.	Non-trade receivables and others		—		119		—		—
	Trade payables		—		—		1,540		8,397
	Non-trade payables and others		—		—		—		1,571
Others (Korea Electric Power Industrial Development Co., Ltd. and 43 others)	Trade receivables		24,833		3,260		—		—
	Non-trade receivables and others		43,905		8,215		—		—
	Trade payables		—		—		17,017		12,321
	Non-trade payables and others		—		—		101,442		9,421

134

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(4)

Receivables and payables arising from related party transactions as of September 30, 2022 and December 31, 2021 are as follows, continued:


In millions of won		Receivables				Payables
Company name	Type	September 30, 2022		December 31, 2021		September 30, 2022		December 31, 2021
<Joint ventures>
Nawah Energy Company	Trade receivables	W	93,532		73,784		—		—
	Non-trade receivables and others		4,396		4,404		—		—
Chun-cheon Energy Co., Ltd.	Trade receivables		107		126		—		—
	Non-trade receivables and others		165		167		—		—
	Trade payables		—		—		64,251		41,410
Daegu Green Power Co., Ltd.	Trade receivables		81		71		—		—
	Non-trade receivables and others		55		55		—		—
	Trade payables		—		—		39,245		35,766
Dayone Energy Co., Ltd.	Trade receivables		94		52		—		—
	Non-trade receivables and others		11,049		13,297		—		—
	Trade payables		—		—		—		1,009
	Non-trade payables and others		—		—		9,238		11,306
Amman Asia Electric Power Company	Trade receivables		3,559		2,515		—		—
	Non-trade payables and others		—		—		21,579		21,976
Kelar S.A.	Trade receivables		2,547		5,195		—		—
	Non-trade receivables and others		23,294		16,126		—		—
Others (Daesan Green Energy Co., Ltd. and 45 others)	Trade receivables		219,626		6,967		—		—
	Non-trade receivables and others		19,104		11,584		—		—
	Trade payables		—		—		38,128		20,802
	Non-trade payables and others		—		—		587		2,291

<Others>
Korea Development Bank	Accrued interest income		—		154		—		—
	Non-trade receivables and others		29,859		420,732		—		—
	Non-trade payables and others		—		—		19,120		21,172
	Derivatives		122,374		59,139		—		—

135

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(5)

Loans and others arising from related party transactions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
Type	Company name	Beginning balance			Loans		Collection			Others			Ending balance
Associates	KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd.	W	29,481			—		—			5,761			35,242
	(Allowance for doubtful accounts)		(8,241	)		—		—			(7,602	)		(15,843	)
Associates	Xe-Pian Xe-Namnoy Power Co., Ltd.		21,456			—		—			4,512			25,968
Associates	PT Wampu Electric Power		13,000			—		(4,934	)		2,504			10,570
Associates	PT Cirebon Energi Prasarana		—			27,599		—			5,318			32,917
Associates	Gunsan Bio Energy Co., Ltd.		12,396			—		—			—			12,396
	(Allowance for doubtful accounts)		(12,396	)		—		—			—			(12,396	)
Associates	Bigeum Resident Photovoltaic Power Co., Ltd.		11,212			—		—			—			11,212
Associates	Daejung Offshore Wind Power Co., Ltd.		1,000			—		—			—			1,000
Associates	Bitgoel Eco Energy Co., Ltd.		19,349			16,151		—			—			35,500
Associates	Saemangeum Sebit Power Plant Co., Ltd		—			37,249		—			—			37,249
Joint ventures	Solaseado Solar Power Co., Ltd.		35,000			—		—			—			35,000
Joint ventures	Recursos Solares PV de Mexico II, S.A. de C.V.		6,134			595		—			2,126			8,855
Joint ventures	Horus Solar, S.A. de C.V.		16,514			214		—			3,472			20,200
Joint ventures	Sunmex Renovables, S.A. de C.V.		13,571			1,090		—			2,872			17,533
Joint ventures	Kelar S.A.		43,167			—		—			9,077			52,244
Joint ventures	DE Energia SpA		6,791			—		—			1,428			8,219
Joint ventures	Daehan Wind Power PSC		13,674			—		—			2,876			16,550
Joint ventures	PT. Tanjung Power Indonesia		1,090			—		(1,114	)		24			—
Joint ventures	Bitsolar Energy Co., Ltd.		3,165			—		—			—			3,165
Joint ventures	Daesan Green Energy Co., Ltd.		—			3,514		—			—			3,514
Joint ventures	Nghi Son 2 Power LLC		—			185,306		—			26,110			211,416
Joint ventures	Pulau Indah Power Plant Sdn. Bhd.		—			5,441		—			332			5,773
Joint ventures	Guadalupe Solar SpA		3,360			—		(141	)		677			3,896
Joint ventures	Foresight Iberian Solar Group Holding, S.L.		59,333			3,198		—			3,086			65,617
Joint ventures	Capman Lynx SCA, SICAR		29,770			—		—			2,774			32,544

		W	318,826			280,357		(6,189	)		65,347			658,341

(6)

Borrowings arising from related party transactions as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won
Related parties	Type	Beginning balance		Borrowings		Repayment			Others			Ending balance
Korea Development Bank	Facility	W	98,020		61,092		(62,108	)		11,166			108,170
	Others		2,509		—		(282	)		—			2,227
	Operating funds		184,300		201,069		(230,000	)		13,214			168,583
	Syndicated Loan		14,530		—		(1,040	)		(511	)		12,979
	EBL and others		53,965		27,248		(85,010	)		3,797			—

		W	353,324		289,409		(378,440	)		27,666			291,959

136

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of September 30, 2022 are as follows:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
Korea Electric Power Corporation	Shuweihat Asia Operation & Maintenance Company	Performance guarantees	USD	11,000	Shuweihat Asia Power Investment B.V.
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	USD	1,387	Rabigh Electricity Company
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees	USD	70,000	SMBC Ho Chi Minh and others
		Debt guarantees	USD	285,000	SMBC Singapore
Korea Electric Power Corporation	Barakah One Company	Debt guarantees	USD	1,223,355	Export-Import Bank of Korea and others
		Performance guarantees and others	USD	4,343,326
Korea Electric Power Corporation	RE Holiday Holdings LLC	Performance guarantees (*10)	USD	222,077	EFS Renewables Holdings, LLC, CA-CIB and others
Korea Electric Power Corporation	RE Pioneer Holdings LLC	Performance guarantees	USD	106,873	EFS Renewables Holdings, LLC
Korea Electric Power Corporation	RE Barren Ridge 1 Holdings LLC	Performance guarantees (*10)	USD	68,838	Firstar Development, LLC
Korea Electric Power Corporation	Rabigh Electricity Company	Performance guarantees	SAR	1,215	Hana Bank
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees	USD	100,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company	Performance guarantees	USD	16,800	Shinhan Bank
Korea Electric Power Corporation	Horus Solar, S.A. de C.V.	Other performance guarantees	MXN	16,413	CENACE and others
Korea Electric Power Corporation	Recursos Solares PV de Mexico II, S.A. de C.V.	Other performance guarantees	MXN	1,518	SEMARNAT
			USD	393	CFE Transmission
Korea Electric Power Corporation	Sunmex Renovables, S.A. de C.V.	Other performance guarantees	USD	9,078	CENACE
			MXN	3,666	SEMARNAT
Korea Electric Power Corporation	Pulau Indah Power Plant Sdn. Bhd.	Collateralized money invested	KRW	13,210	Malaysian Trustee Berhad
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested	KRW	12,188	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Xe-Pian Xe-Namnoy Power Co., Ltd.	Collateralized money invested	KRW	137,718	Krung Thai Bank
		Impounding bonus guarantees	USD	5,000	SK E&C
Korea Western Power Co., Ltd.	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	SAR	11,200	National Bank of Kuwait
Korea Western Power Co., Ltd.	Daegu Photovoltaic Co., Ltd.	Collateralized money invested	KRW	2,618	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested (*5)	KRW	43,192	Kookmin Bank and others
		Debt guarantees	KRW	20,300	BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested	KRW	3,999	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested	KRW	257	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested	KRW	137,868	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Haemodum Solar Co., Ltd.	Collateralized money invested	KRW	3,296	Nonghyup Bank
Korea Western Power Co., Ltd.	Muan Solar Park Co., Ltd.	Collateralized money invested	KRW	7,632	IBK and others
Korea Western Power Co., Ltd.	Anjwa Smart Farm & Solar City Co., Ltd.	Collateralized money invested	KRW	8,447	Hana Bank and others
Korea Western Power Co., Ltd.	Seoroseoro Sunny Power Plant Co., Ltd.	Collateralized money invested	KRW	873	Hana Bank and others
Korea Western Power Co., Ltd.	YuDang Solar Co., Ltd.	Collateralized money invested	KRW	590	Hana Bank and others
		Guarantees for supplemental funding (*1)		—

137

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of September 30, 2022 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
Korea Western Power Co., Ltd.	Hapcheon Floating Photovoltaic Power Plant Inc.	Collateralized money invested	KRW	7,891	Nonghyup Bank and others
Korea Western Power Co., Ltd.	Yeongwol Eco Wind Co., Ltd.	Collateralized money invested	KRW	3,163	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Collateralized money invested	KRW	393	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	Gunsan Land Solar Co., Ltd.	Collateralized money invested	KRW	26,260	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	Eumseong Eco Park Co., Ltd.	Collateralized money invested	KRW	5,514	Kyobo Life Insurance Co., Ltd. and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd	PungBack Wind Farm Corporation	Collateralized money invested	KRW	7,885	Hanwha Life Insurance Co., Ltd and others
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested	KRW	6,383	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested	KRW	16,501	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested	KRW	29,912	Kookmin Bank and others
		Guarantees for supplemental funding (*1)	KRW	90,800
Korea East-West Power Co., Ltd.	Honam Wind Power Co., Ltd.	Collateralized money invested	KRW	4,426	Shinhan Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested	KRW	254,949	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested	KRW	2,880	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested	KRW	19,504	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested	KRW	17,415	Korea Development Bank
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested	KRW	15,177	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Other guarantees	USD	3,150	PT. Adaro Indonesia
		Guarantees for supplemental funding (*1)		—	Sumitomo mitsui banking and others
		Collateralized money invested	KRW	104,633	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees	USD	14,400	Credit Agricole Corporate & Investment Bank Seoul
		Collateralized money invested	KRW	48,884	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested	KRW	10,797	Mirae Asset Daewoo Co., Ltd. and others
		Collateralized loans	USD	5,728
		Payment guarantees (*8)	USD	950	Hana Bank
Korea East-West Power Co., Ltd.	Bitsolar Energy Co., Ltd.	Collateralized money invested	KRW	352	Mirae Asset Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	Cheongju Eco Park Co., Ltd.	Collateralized money invested	KRW	11,119	Kyobo Life Insurance Co., Ltd. and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Busan Industrial Solar Power Co., Ltd.	Collateralized money invested	KRW	1,056	Shinhan Bank and others
		Guarantees for supplemental funding (*1)		—

138

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of September 30, 2022 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
Korea East-West Power Co., Ltd.	Yangyang Wind Power Co., Ltd.	Collateralized money invested	KRW	11,057	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Daewon Green Energy Co., Ltd.	Collateralized money invested	KRW	4,896	Hana Bank and others
		Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.	Goheung New Energy Co., Ltd.	Collateralized money invested	KRW	3,701	Woori Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested	KRW	2,698	Shinhan Bank and others
		Performance guarantees and guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested	KRW	25,728	Korea Development Bank and others
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested	KRW	27,118	Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Kelar S.A.	Performance guarantees	USD	49,862	Hana Bank, MUFG
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Performance guarantees	USD	1,500	Shinhan Bank
		Payment guarantees (*7)	USD	1,900	Hana Bank
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested	KRW	6,171	Woori Bank and Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested	KRW	3,763	IBK
Korea Southern Power Co., Ltd.	Samcheok Eco Materials Co., Ltd.	Payment guarantees (*2)		—	SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.	Solaseado Solar Power Co., Ltd.	Collateralized money invested	KRW	10,498	Kookmin Bank and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	Collateralized money invested (*9)		—	IBK and others
		Guarantees for supplemental funding (*1)	KRW	30,000
		Guarantees for other supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.	Omisan Wind Power Co., Ltd.	Collateralized money invested	KRW	10,475	Shinhan Bank and others
		Guarantees for supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.	Geumsungsan Wind Power Co., Ltd.	Collateralized money invested	KRW	3,607	Kookmin Bank
		Guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Collateralized money invested	KRW	14,881	Standard Chartered
KOSPO Chile SpA	Kelar S.A.	Collateralized money invested	KRW	122,455	Export-Import Bank of Korea and others
KOSPO Chile SpA	Chester Solar I SpA	Collateralized money invested	KRW	917	IBK
KOSPO Chile SpA	Chester Solar IV SpA	Collateralized money invested		—	IBK
KOSPO Chile SpA	Chester Solar V SpA	Collateralized money invested		—	IBK
KOSPO Chile SpA	Diego de Almagro Solar SpA	Collateralized money invested		—	IBK
KOSPO Chile SpA	Laurel SpA	Collateralized money invested	KRW	156	IBK
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric Co., Ltd.	Collateralized money invested	KRW	320	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested	KRW	119,345	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees	USD	4,785	Mizuho Bank
Korea Midland Power Co., Ltd.	PT Cirebon Energi Prasarana	Performance guarantees	USD	2,293	PT. Perusahaan Listrik Negara
Korea Midland Power Co., Ltd.	PT Wampu Electric Power	Debt guarantees	USD	4,401	SMBC
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Collateralized money invested	KRW	1,797	IBK
		Guarantees for supplemental funding and others (*1)		—	IBK and others
Korea Midland Power Co., Ltd.	Yaksu ESS Co., Ltd.	Collateralized money invested	KRW	903	IBK

139

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of September 30, 2022 are as follows, continued:


In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested	KRW	376	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested	KRW	5,162	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested	KRW	2,305	IBK
Korea Midland Power Co., Ltd.	Goesan Solar park Co., Ltd.	Collateralized money invested	KRW	2,393	IBK
Korea Midland Power Co., Ltd.	Bitgoel Eco Energy Co., Ltd.	Collateralized money invested	KRW	4,225	IBK and others
		Guarantees for supplemental funding (*1)		—
Korea Midland Power Co., Ltd.	Energyco Co., Ltd.	Collateralized money invested	KRW	1,928	Nonghyup Bank
Korea Midland Power Co., Ltd.	Jeju Gimnyeong Wind Power Co., Ltd.	Collateralized money invested	KRW	562	Nonghyup Bank
Korea Midland Power Co., Ltd.	Dongbu Highway Solar Co., Ltd.	Collateralized money invested	KRW	278	Nonghyup Bank
Korea Midland Power Co., Ltd.	Seobu Highway Solar Co., Ltd.	Collateralized money invested	KRW	281	Nonghyup Bank
Korea Midland Power Co., Ltd.	Yeongyang Wind Power Corporation II	Collateralized money invested	KRW	7,645	Korea Development Bank and Samsung Fire & Marine Insurance Co., Ltd.
Korea Midland Power Co., Ltd.	Haeparang Energy Co., Ltd.	Collateralized money invested	KRW	2,210	Templeton hana asset management Co. Ltd
Korea Midland Power Co., Ltd.		Guarantees for supplemental funding (*1)		—
Korea South-East Power Co., Ltd.	Dayone Energy Co., Ltd.	Collateralized money invested (*3)		—	IBK
		Guarantees for supplemental funding and others (*1,4)	KRW	76,800	NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested	KRW	16,099	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested	KRW	15,453	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Guarantees for supplemental funding and others	KRW	4,503	Woori Bank
Korea South-East Power Co., Ltd.	Goseong Green Power Co., Ltd.	Collateralized money invested	KRW	293,724	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested	KRW	2,192	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND Solar Co., Ltd.	Collateralized money invested	KRW	1,246	IBK
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested	KRW	6,928	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested	KRW	1,975	IBK
Korea South-East Power Co., Ltd.	Chungsongmeon BongSan wind power Co., Ltd.	Collateralized money invested	KRW	3,482	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Yeongam Solar Power Co., Ltd.	Collateralized money invested	KRW	9,517	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested	KRW	3,208	Shinhan Bank and others
Korea South-East Power Co., Ltd.	Saemangeum Heemang Photovoltaic Co., Ltd.	Collateralized money invested	KRW	13,342	Woori Bank and others
Korea South-East Power Co., Ltd.	Nepal Water & Energy Development Company Pvt.,Ltd.	Collateralized money invested	USD	97,105	International Finance Corporation and others
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested	KRW	2,145	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested	KRW	5,745	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Go deok Clean Energy Co., Ltd.	Collateralized money invested	KRW	4,587	Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested	KRW	4,020	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gwangyang Green Energy Co., Ltd.	Collateralized money invested	KRW	25,259	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gangneung Sacheon Fuel Cell Co., Ltd.	Collateralized money invested	KRW	3,901	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Chun-cheon Green Energy Co., Ltd.	Collateralized money invested	KRW	9,279	Hana Bank and others
KEPCO Plant Service & Engineering Co., Ltd.	Incheon New Power Co., Ltd.	Collateralized money invested (*6)		—	Shinhan Bank
		Guarantees for supplemental funding and others (*1)		—

140

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(7)

Guarantees provided to related parties as of September 30, 2022 are as follows, continued:

(*1)	The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2)

Controlling and non-controlling common shareholders of Samcheok Eco Materials Co., Ltd. have pre-emption rights, if preferred shareholders intend to sell their shares until December 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of September 30, 2022, the Group has recognized derivative liabilities of W6,760 million related to the guarantee. Meanwhile, the Group is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*3)	The Group recognized an impairment loss on all of the equity securities of Dayone Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W47,067 million.

(*4)	Pursuant to the guarantee agreement, the Group recognized other provisions of W16,119 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*5)	The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral.

(*6)	The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W461 million.

(*7)	The Group provided a payment guarantee to Daehan Wind Power PSC for opening L/C for Debt Service Reserve Account (DSRA).

(*8)	This includes a guarantee related to L/C for debt repayment allowance provided to DE Energia SpA, a joint venture of the Group.

(*9)	The Group recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W29,200 million.

(*10)

The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

141

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

46.

Related Parties, Continued

(8)

As of September 30, 2022, there is no financial guarantee provided by related parties.

(9)

Derivatives transactions with related parties as of September 30, 2022 are as follows:

(i)

Currency Swap


In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty	Contract year		Contract amounts				Contract interest rate per annum						Contract exchange rate
Counterparty	Contract year		Pay		Receive		Pay			Receive			Contract exchange rate
Korea Development Bank		2019~2024	W	177,600		USD 150,000		1.24	%		2.50	%	W	1,184.00
		2020~2025		241,320		USD 200,000		0.54	%		1.13	%		1,206.60
		2021~2026		118,170		USD 100,000		1.11	%		1.13	%		1,181.70
		2015~2025		111,190		USD 100,000		2.62	%		3.25	%		1,111.90
		2017~2027		111,610		USD 100,000		2.31	%		3.13	%		1,116.10
		2018~2028		108,600		HKD 800,000		2.69	%		3.35	%		135.75
		2018~2023		170,280		USD 150,000		2.15	%		3.75	%		1,135.20
		2019~2027		119,978		CHF 100,000		1.43	%		0.05	%		1,199.78
		2021~2026		111,400		USD 100,000		0.93	%		1.25	%		1,114.00
		2022~2027		262,000		USD 200,000		3.63	%		4.25	%		1,310.00
		2020~2026		118,910		USD 100,000		0.61	%		1.00	%		1,189.10
		2021~2026		114,230		USD 100,000		1.27	%		1.25	%		1,142.30
		2022~2027		123,710		USD 100,000		3.41	%		3.63	%		1,237.10
		2018~2023		320,880		USD 300,000		2.03	%		3.75	%		1,069.60
		2022~2025		128,560		USD 100,000		3.37	%		4.13	%		1,285.60
		2018~2023		169,335		USD 150,000		2.26	%		3.88	%		1,128.90
		2020~2025		122,780		USD 100,000		0.93	%		1.75	%		1,227.80
		2022~2025		252,360		USD 200,000		2.83	%		3.60	%		1,261.80

(ii)

Currency forward

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

Counterparty

Contract
date

Maturity
date

Contract amounts

Contract
exchange
rate

Pay

Receive

Korea Development Bank

2022.09.23

2022.10.24

21,141

USD 15,000

1,409.40

(10)

The Group considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Group recorded salaries and other compensations related to the key management personnel as follows:


In millions of won	September 30, 2022				September 30, 2021
Type	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Salaries	W	232		794		419		1,041
Employee benefits		17		38		11		16

	W	249		832		430		1,057

142

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

47.

Statement of Cash Flows

(1)

Significant non-cash transactions for the nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won
Transactions	September 30, 2022		September 30, 2021
Transfer from construction-in-progress to other assets	W	4,814,007		7,780,311
Recognition of asset retirement cost and related provision for decommissioning costs		226,748		214,595
Transfer from provision for disposal of used nuclear fuel to accrued expenses		245,916		346,254
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities		11,231,689		11,453,907
Transfer from inventory to stored nuclear fuel		738,720		551,528
Transfer of right-of-use assets due to change in accounting policy and others		129,718		57,977

(2)

Changes in liabilities incurred from financing activities for the nine-month periods ended September 30, 2022 and 2021 are as follows:


In millions of won	September 30, 2022
						Non-cash changes
	Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	80,529,513		26,148,128			—		2,819,094		109,496,735
Lease liabilities		4,410,503		(442,644	)		120,177		592,613		4,680,649

	W	84,940,016		25,705,484			120,177		3,411,707		114,177,384


In millions of won	September 30, 2021
						Non-cash changes
	Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	69,724,581		4,792,171			—		1,154,066		75,670,818
Lease liabilities		4,621,096		(445,248	)		51,102		282,820		4,509,770

	W	74,345,677		4,346,923			51,102		1,436,886		80,180,588

143

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

48.

Commitments for Expenditure

(1)

The commitments for acquisition of property, plant and equipment as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
Contracts	Commitment amounts		Remaining liability balances		Commitment amounts		Remaining liability balances
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)	W	56,389		11,781		57,046		16,240
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)		50,151		37,638		46,616		34,102
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S		36,324		15,943		36,143		25,292
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S		—		—		40,010		5,540
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S		37,744		140		37,744		140
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others		57,554		13,890		56,860		34,576
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S		32,000		23,800		32,000		26,700
Advanced E-Type low-pressure electronic power meter 1,320,000 ea		—		—		65,972		23,262
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)		35,949		3,232		34,423		23,297
Purchase of cable (TR CNCE-W,1C,325SQ) 1,016,000M		—		—		66,581		40,254
Purchase of cable (TR CNCE-W,1C,600SQ) 485,000M		—		—		46,194		37,810
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 3,303,900M		—		—		87,382		83,628
Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments		192,283		103,934		188,338		168,456
Purchase of GIS (362KV, 6300A, 63KA) 19 – Shinyangsan S/S		31,464		16,964		31,464		31,464
Purchase of cable (PVC, 1C, 2500SQ) 57,868M and others (Goduk-Seoansung)		40,280		19,731		—		—
Purchase of cable (PVC, 1C, 2000SQ) 87,732M and others (Eulwangboonki)		33,464		27,193		—		—
GIS(362KV,6300A,63KA) 18 – Wolsung S/Y		32,090		32,090		—		—
Purchase of cable (FR CNCO-W,1C,325SQ) 672,300M		33,580		27,625		—		—
Purchase of cable (TR CNCE-W,1C,325SQ) 1,342,000M		83,707		72,992		—		—
Purchase of cable (TR CNCE-W,1C,600SQ) 377,000M		35,489		30,803		—		—
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 2,175,300M		56,590		47,194		—		—
Construction of Shin-Kori Units (#5,6)		9,800,424		2,684,244		9,800,424		3,479,667
Construction of Shin-Hanul Units (#1,2)		10,327,372		215,440		9,745,123		—
Other 32 contracts		833,187		558,816		792,485		620,593
Service of designing Seoul Combined Units (#1,2)		31,148		—		31,841		934
Purchase of furnace for construction of Shin-Seocheon thermal power plant		305,209		5,132		305,209		7,722
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant		105,226		6,214		105,226		6,301
Purchase of main machine for Jeju LNG combined		166,287		10,898		166,287		10,972
Purchase of equipments for the construction project of Boryeong indoor coal storage yard		317,350		299,671		317,350		317,350
Service of designing Taean Units (#9,10)		112,909		12,623		112,909		12,623
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant		126,302		55,163		126,302		61,735
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant		216,723		67,203		214,053		138,244
Construction of Gimpo combined heat & power plant		162,330		89,527		130,015		86,323
Purchase of gas turbines, steam turbines, and accessories for Gumi natural gas power plant		197,983		197,983		—		—
Construction of Gumi natural gas power plant		204,094		204,094		—		—
Installation of natural gas supply facility at Gumi natural gas power plant		70,620		70,620		—		—
Purchase of coal handling machine for construction of Samcheok Units (#1,2)		295,861		5,731		286,571		6,215
Purchase of main equipment for Namjeju		140,144		3		140,144		3
Purchase of main equipment for Shin-Sejong combined thermal power plant		234,392		176,750		234,392		200,122

144

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

48.

Commitments for Expenditure, Continued

(2)

As of September 30, 2022, details of contracts for inventory purchase commitment are as follows:

The Group imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Group entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:


Type	Periods	Contracted quantity
Concentrate	2022 ~ 2033	26,310 Ton U3O8
Transformed	2022 ~ 2030	19,012 Ton U
Enrichment	2022 ~ 2032	21,434 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Group, is 1,418 Ton U (contract periods : 2014 ~ 2023).

145

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

49.

Contingencies and Commitments

(1)

Ongoing litigations and claims related with contingent liabilities and contingent assets as of September 30, 2022 and December 31, 2021 are as follows:


In millions of won	September 30, 2022				December 31, 2021
	Number of cases		Claim amount		Number of cases		Claim amount
As the defendant		665	W	1,007,416		683	W	689,415
As the plaintiff		225		782,888		284		784,453

As of September 30, 2022, there are 3 ongoing litigations and 1 arbitration case that both defendant and plaintiff are the Group.

As of September 30, 2022, in connection with Shin-Hanul Unit 3 & 4, the Group has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Group does not believe that it has a present obligation to this vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of September 30, 2022.

The Group is the defendant against a number of claims. The following is potentially significant ongoing claim pertaining to the Group:

There are multiple ongoing claims against the Group related to ordinary wages, requesting payment of unpaid wages. The Group believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. Accordingly, the Group recognized W84,337 million as litigation provisions in relation to the lawsuit as of September 30, 2022.

In addition to the abovementioned significant ongoing claims, there are 7 arbitration cases pertaining to the Group as of September 30, 2022 and the significant arbitration cases for the nine-month period ended September 30, 2022 are as follows:

In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Group to the Indian Council of Arbitration due to disagreements in the contract, but the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

Two companies including GE Energy Products France SNC filed an arbitration against the Group to Korea Commercial Arbitration Board regarding additional payment of construction costs, but the Group has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

146

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

49.

Contingencies and Commitments, Continued

(2)

Guarantees of payments and commitments provided to other companies as of September 30, 2022 are as follows:

The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand in proportion to its ownership in the electricity purchase contract with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

The Group has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees of mutual investment of USD 5,947 thousand, which is equivalent to the ownership interest of PT BS Energy and PT Nusantara Hydro Alam, in order to guarantee the expenses related to hydroelectric power business of Tanggamus, Indonesia.

The Group has provided USD 18,500 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

The Group has provided the syndicate of lenders of PT Indo Raya Tenaga, the business corporation of PT Barito Wahana Tenaga, a guarantee by establishing the right of pledge on the shares of PT Barito Wahana Tenaga for project financing of PT Barito Wahana Tenaga as of September 30, 2022.

The Group has provided Axia Power Holdings B.V. and others a performance guarantee up to USD 54,000 thousand for the implementation of Cirebon thermal power generation project in Indonesia.

The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,588,165 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

The Group has provided the SMBC with the guarantees of mutual investment of USD 4,401 thousand, which is equivalent to the ownership interest of PT Mega Power Mandiri, in order to guarantee the expenses related to hydroelectric power business of Wampu, Indonesia.

The Group has provided USD 50,000 thousand for a performance guarantee to Morgan Stanley Capital Group Inc., to guarantee the electricity purchase contract in relation to photovoltaic power generation project in USA.

10)

The Group has provided RBC Community Investments Impact Renewables HoldCo-1, LLC. a performance guarantee regarding weatherization in relation with tax investors up to USD 3,000 thousand for the of the power plant construction for Concho Valley solar power project in the United States.

11)

The Group has provided USD 54,000 thousand for a performance guarantee to PT. Cirebon Electro Power, to guarantee the Cirebon coal-fired power plant operation and maintenance project in Indonesia.

12)

The Group has provided Nonghyup Bank a debt guarantee up to USD 4,785 thousand to guarantee Cirebon coal-fired power plant operation and maintenance project in Indonesia.

13)

The Group has provided Morgan Stanley Renewables Inc. a guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

14)

The Group has provided EUR 10,000 thousand for a performance guarantee to Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch through Kookmin Bank, to guarantee the opening of VAT payment loan account for Guba Buget wind power project in Sweden.

15)

The Group has provided EUR 5,022 thousand for a performance guarantee to Microsoft through Kookmin Bank, to guarantee the implementation of the power plant construction for Guba Buget wind power project in Sweden.

16)

The Group has provided EUR 9,980 thousand of a performance guarantee to Ellevio through Shinhan Bank, to guarantee the performance of the electric power transmission equipment connection construction for Guba Buget wind power project in Sweden.

147

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

49.

Contingencies and Commitments, Continued

(2)

Guarantees of payments and commitments provided to other companies as of September 30, 2022 are as follows, continued:

17)

The Group has provided Shinhan Bank a debt guarantee up to USD 60,000 thousand (current amount : USD 60,000 thousand) to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.

18)

The Group has provided Van Phong Power Company Ltd. a performance guarantee up to USD 5,000 thousand for the operation maintenance project in Van Phong, Vietnam.

(3)

Credit lines provided by financial institutions as of September 30, 2022 are as follows:


In millions of won and thousands of foreign currencies
Commitments	Financial institutions	Currency	Credit limit
Commitments on Bank-overdraft	Nonghyup Bank and others	KRW		1,810,500
Limit amount available for CP	Hana Bank and others	KRW		3,250,000
General Loan, etc.	Woori Bank	KRW		1,500,000
Limit amount available for card	Hana Bank and others	KRW		47,504
	Banco de Oro	PHP		5,000
Loan limit	Kookmin Bank and others	KRW		2,125,238
	DBS Bank Ltd and others	USD		1,580,000
Certification of payment on payables from foreign country	Nonghyup Bank	USD		11,950
Certification of payment on L/C	Shinhan Bank and others	USD		1,180,092
	Hana Bank and others	EUR		48,122
	Shinhan Bank	JPY		481,785
Certification of Performance guarantee on contract	Seoul Guarantee Insurance and others	KRW		130,956
	First Abu Dhabi Bank and others	USD		1,153,494
	Korea Development Bank and others	JPY		620,000
	Hana Bank and others	EUR		4,596
	Shinhan Bank	INR		44,872
	Hana Bank	SAR		1,215
Certification of bidding	Hana Bank	USD		5,200
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance	KRW		86,374
	Hana Bank and others	USD		331,579
	Hana Bank and others	MXN		21,597
Others	Nonghyup Bank and others	KRW		493,091
	Export-Import Bank of Korea and others	USD		687,897
	Standard Chartered	AED		50
	Hana Bank	EUR		34
Inclusive credit	Hana Bank	KRW		8,000
	Hana Bank and others	USD		135,000
Equity Bridge Loan Guarantee	Mizuho Bank	USD		1,625,955
Trade finance	Export-Import Bank of Korea and others	USD		1,020,000

148

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

49.

Contingencies and Commitments, Continued

(4)

As of September 30, 2022, promissory notes and assets provided as collaterals or pledges to financial institutions by the Group are follows:

In millions of won and thousands of foreign currencies

Obligor

Creditor

Assets provided as security

Currency

Amount

Description

Mira Power Limited

International Finance Corporation and others

Property, plant and equipment and others

USD

275,600

Collateral for borrowings

(*1)

Tamra Offshore Wind Power Co., Ltd.

Kyobo Life Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

171,600

Collateral for borrowings

(*2)

Gyeonggi Green Energy Co., Ltd.

Korea Development Bank and others

Cash and cash equivalents and others

KRW

327,080

Collateral for borrowings

(*2)

Commerce and Industry Energy Co., Ltd.

IBK and others

Property, plant and equipment and others

KRW

110,500

Collateral for borrowings

(*2)

KOSPO Youngnam Power Co., Ltd.

Shinhan Bank and others

Cash and cash equivalents and others

KRW

744,120

Collateral for borrowings

(*2)

Gyeongju Wind Power Co., Ltd.

Shinhan Bank and others

Property, plant and equipment and others

KRW

68,400

Collateral for borrowings

(*2)

Korea Offshore Wind Power Co., Ltd.

Woori Bank and others

Property, plant and equipment and others

KRW

293,400

Collateral for borrowings

(*2)

Qatrana Electric Power Company

The Islamic Development
Bank and others

Finance lease receivable and property, plant and equipment and others

JOD

136,623

Collateral for borrowings

(*1)

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

The Export – Import Bank of Korea and others

Finance lease receivable and property, plant and equipment and others

USD

401,277

Collateral for debt securities
(*1)

Incheon Fuel Cell Co., Ltd.

Kookmin Bank and others

Cash and cash equivalents and others

KRW

276,960

Collateral for borrowings

(*2)

TS Energy No. 25 Co., Ltd.

Kyobo Life Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

329,736

Collateral for borrowings

(*2)

Jeongam Wind Power Co., Ltd.

KDB Capital Corporation and others

Cash and cash equivalents and others

KRW

221,807

Collateral for borrowings

(*2)

(*1)	This is based on the amount of loan commitment limit.

(*2)	As of September 30, 2022, the Group has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.

The Group has W1,197 million of project loans from the Korea Energy Agency as of September 30, 2022. The Group has provided a promissory notes as a repayment guarantee.

149

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

49.

Contingencies and Commitments, Continued

(5)

The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of W67,643 million as of September 30, 2022, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W1,241 million and depreciation on the idle assets of W2,718 million are recorded in other expenses for the nine-month period ended September 30, 2022. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of September 30, 2022.

(6)

Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in the Gaeseong Industrial District as of September 30, 2022. The book value of facility is W13,198 million and trade receivables related to the companies residing in Gaeseong industrial complex has been fully written-off during the nine-month period ended September 30, 2022. The outcome of this event cannot be reasonably estimated as of September 30, 2022.

(7)

In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of September 30, 2022.

(8)

To prevent the spread of COVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with COVID-19. The Group was unable to reasonably estimate the impact of COVID-19 and the impact of the government support policies on the Group’s consolidated financial statements as of September 30, 2022, and the resulting effects have not been reflected in the consolidated financial statements.

(9)

The Korea Institute of Energy Technology(KENTECH) was established in April, 2020, in accordance with the “Basic plan for the establishment of KENTECH (July, 2019)”. By the special law to create KENTECH, the Group, government, and local government may contribute to the fund. The Group will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.

(10)

The ongoing armed conflict in Ukraine started in February 2022 and relevant sanctions against Russia imposed by the international community can impact not only sanctioned entities but also the entities doing business directly or indirectly with Ukraine or Russia and the entities exposed directly or indirectly to industries or economy of Russia or Ukraine. The Group cannot make reasonable estimation of the financial impact of the recent conflict in Ukraine on the future events.

150

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

50.

Subsequent Events

(1)

Subsequent to September 30, 2022, KEPCO and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., and Korea Western Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows:


In millions of won and thousands of foreign currencies
Company	Type	Issue date		Maturity		Interest rate (%)		Amount
Korea Electric Power Corporation	#1290 Corporate bond		2022.10.04		2024.10.04		5.50	W	230,000
	#1291 Corporate bond		2022.10.04		2025.10.04		5.60		130,000
	#1292 Corporate bond		2022.10.04		2027.10.04		5.62		20,000
	#1293 Corporate bond		2022.10.07		2024.10.07		5.55		250,000
	#1294 Corporate bond		2022.10.07		2025.10.07		5.65		100,000
	#1295 Corporate bond		2022.10.13		2024.10.13		5.60		340,000
	#1296 Corporate bond		2022.10.13		2025.10.13		5.69		70,000
	#1297 Corporate bond		2022.10.17		2024.10.17		5.75		180,000
	#1298 Corporate bond		2022.10.17		2025.10.17		5.90		100,000
	#1299 Corporate bond		2022.10.20		2024.10.20		5.90		150,000
	#1300 Corporate bond		2022.10.20		2025.10.20		5.90		20,000
	#1301 Corporate bond		2022.10.25		2024.10.25		5.99		80,000
	#1302 Corporate bond		2022.10.26		2024.10.26		5.90		60,000
	#1303 Corporate bond		2022.10.28		2024.10.28		5.90		290,000
	#1304 Corporate bond		2022.10.28		2025.10.28		5.99		120,000
	#1305 Corporate bond		2022.11.01		2024.11.01		5.90		290,000
	#1306 Corporate bond		2022.11.01		2025.11.01		5.90		40,000
	#1307 Corporate bond		2022.11.04		2024.11.04		5.98		270,000
	#1308 Corporate bond		2022.11.04		2025.11.04		5.88		90,000
	#1309 Corporate bond		2022.11.08		2024.11.08		5.99		270,000
	#1310 Corporate bond		2022.11.08		2025.11.08		5.99		30,000
	#1311 Corporate bond		2022.11.10		2024.11.10		5.95		480,000
	#1312 Corporate bond		2022.11.10		2025.11.10		5.95		80,000
	#12 Global bond		2022.10.06		2026.04.06		5.38		USD 500,000
	#13 Global bond		2022.10.06		2028.04.06		5.50		USD 300,000
Korea Hydro & Nuclear Power Co., Ltd.	#2 Foreign Corporate bond		2022.10.06		2032.10.06		5.16		HKD 1,935,000
			2022.11.01		2032.10.06				HKD 415,000
Korea South-East Power Co., Ltd.	#55-1 Corporate bond		2022.11.04		2024.11.04		6.06		70,000
	#55-2 Corporate bond		2022.11.04		2025.11.04		5.91		20,000
Korea Western Power Co., Ltd.	#55-1 Corporate bond		2022.10.25		2024.10.25		5.64		40,000
	#55-2 Corporate bond		2022.10.25		2025.10.25		5.96		100,000

(1)

On October 27, 2022, Korea South-East Power Co., Ltd. and Korea Western Power Co., Ltd., which are subsidiaries of KEPCO, decided to contribute W5,620 million respectively for the construction of the campus of Korea Institute of Energy Technology.

151

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Interim Consolidated Financial Statements, Continued

September 30, 2022 and 2021 (Unaudited)

51.

Adjusted Operating Profit (Loss)

The operating profit (loss) in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Group’s results from operating activities as presented in the Group’s interim consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the three and nine-month periods ended September 30, 2022 and 2021 to the operating profit or loss as presented in the Group’s interim consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.


In millions of won	September 30, 2022						September 30, 2021
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Operating profit (loss) on interim consolidated statements of comprehensive income (loss)	W	(7,530,941	)		(21,834,211	)		(936,691	)		(1,123,964	)
Add
Other income
Reversal of other provisions		7,712			11,983			—			6,559
Reversal of other allowance for doubtful accounts		10,168			4,555			19			98
Gains on government grants		71			216			188			386
Gains on assets contributed		689			944			572			3,483
Gains on liabilities exempted		65			1,142			61			1,783
Compensation and reparations revenue		20,038			50,597			14,179			67,898
Revenue from foundation fund		—			—			1			1
Revenue from research contracts		—			4,087			1,645			3,711
Rental income		53,781			156,521			51,331			152,006
Others		4,258			35,318			4,030			25,124
Other gains
Gains on disposal of property, plant and equipment		54,870			132,845			22,807			45,081
Gains on disposal of intangible assets		—			41			1			1
Gains on foreign currency translation		51,049			85,218			16,349			22,955
Gains on foreign currency transactions		14,691			51,812			15,784			33,051
Gains on insurance proceeds		—			5,154			—			144
Others		61,380			206,924			60,406			188,404
Deduct
Other expenses
Compensation and reparations expenses		—			(11	)		(281	)		(876	)
Accretion expenses of other provisions		(152	)		(794	)		(1,966	)		(3,055	)
Depreciation expenses on investment properties		(124	)		(350	)		(376	)		(1,101	)
Depreciation expenses on idle assets		(911	)		(2,718	)		(879	)		(2,733	)
Other bad debt expense		—			(19	)		(3,978	)		(11,046	)
Donations		(66,614	)		(96,614	)		(20,559	)		(88,004	)
Others		(8,265	)		(60,752	)		(8,821	)		(19,961	)
Other losses
Losses on disposal of property, plant and equipment		(16,804	)		(68,574	)		(14,792	)		(43,850	)
Losses on disposal of intangible assets		(100	)		(48	)		(1	)		(38	)
Impairment loss on property, plant and equipment		—			—			(2	)		(3,317	)
Impairment loss on intangible assets		—			(14	)		—			—
Losses on foreign currency translation		(41,476	)		(67,812	)		(8,839	)		(13,006	)
Losses on foreign currency transactions		(128,445	)		(216,569	)		(22,876	)		(44,008	)
Others		(10,358	)		(94,039	)		(9,888	)		(106,991	)

Adjusted operating profit (loss)	W	(7,525,418	)		(21,695,168	)		(842,576	)		(911,265	)

152