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Hybrid Bonds
 12 Months Ended
Dec. 31, 2017
Hybrid Bonds [Abstract]  
Hybrid Bonds
33. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interest) as of December 31, 2016 and 2017 are as follows:

 

Issuer

   Hybrid bond     Issued date     Maturity     Yield (%)           2016      2017  
    In millions of won         

Korea Western Power Co., Ltd.

     1st hybrid bond       2012.10.18       —         —       ￦       100,000        —    

Korea South-East Power Co., Ltd.

     1st hybrid bond       2012.12.07       2042.12.06       4.38         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

 

       (1,340 )       (1,090 ) 
           

 

 

     

 

 

  
          ￦       498,660        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 Company decides not to pay dividends on ordinary shares, they are not required to pay interest on the hybrid bonds.

Substantially, as these instruments have no contractual obligation to pay principal and interest, these instruments have been classified as equity (non-controlling interest) in the Company’s consolidated financial statements.

Korea Western Power Co., Ltd., a subsidiary of the Company, repaid all of its hybrid bond classified as equity (non-controlling interest) in full during the year ended December 31, 2017.