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Contingencies and Commitments (Tables)

12 Months Ended

Dec. 31, 2019

Contingencies and Commitments [Abstract]

Ongoing litigations related with contingent liabilities and contingent assets

Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2018 and 2019 are as follows:


	2018				2019
	Number of cases		Claim amount		Number of cases		Claim amount
	In millions of won
As the defendant		570	￦	673,882		586	￦	697,835
As the plaintiff		174		793,491		199		707,287

Credit lines provided by financial institutions

Credit lines provided by financial institutions as of December 31, 2019 are as follows:


Commitments	Financial institutions	Currency	Limited amount		Used amount
		In millions of won and thousands of foreign currencies
Commitments on Bank-overdraft	Nonghyup Bank and others	KRW		1,825,500		373,219
Commitments on Bank-daylight overdraft	Nonghyup Bank and others	KRW		280,000		—
Limit amount available for CP	Hana Bank and others	KRW		1,250,000		1,150,000
Limit amount available for card	Hana Bank and others	KRW		51,904		6,686
	Banco de Oro	PHP		5,000		3,000
Loan limit	Kookmin Bank and others	KRW		1,050,503		685,429
Loan limit	DBS Bank and others	USD		2,492,700		14,400
Certification of payment on payables from foreign country	Nonghyup Bank	USD		4,680		3,892
Certification of payment on L/C	Shinhan Bank	KRW		7,749		—
	Shinhan Bank and others	USD		1,051,334		171,975
	Societe Generale	MYR		2,500		2,500
Certification of Performance guarantee on contract	Seoul Guarantee Insurance and others	KRW		84,011		66,892
	First Abu Dhabi Bank and others	USD		596,862		465,093
	Korea Development Bank and others	JPY		637,495		637,495
	Hana Bank and others	EUR		4,158		4,158
	Hana Bank and others	INR		191,883		191,883
	Hana Bank	CAD		464		464
	Shinhan Bank	ZAR		55,730		55,730
Certification of bidding	Hana Bank	USD		10,000		197
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance	KRW		44,047		44,047
	Export-Import Bank of Korea and others	USD		714,654		649,402
	Hana Bank	SAR		86,508		86,508
	SMBC Bank	QAR		15,000		15,000
Others	Nonghyup Bank and others	KRW		537,064		47,638
	Export-Import Bank of Korea and others	USD		1,562,194		1,315,378
	Shinhan Bank	JPY		381,210		381,210
	Standard Chartered	AED		50		50
Inclusive credit	Hana Bank	KRW		8,000		772
	Hana Bank and others	USD		30,975		17,502
	Shinhan Bank	INR		92,348		92,348
Trade finance	BNP Paribas and others	USD		700,000		—

Blank check and assets provided as collaterals or pledges to financial institutions by the Company

As of December 31, 2019, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows:

Guarantor

Guarantee

Type of guarantee

Currency

Amount

Description

In millions of won and thousands of foreign currencies

Mira Power Limited

International Finance

Corporation and

others

Property, plant and

equipment and others

USD

275,600

Collateral for borrowings(*1)

Tamra Offshore Wind Power Co., Ltd.

Kyobo Life Insurance Co., Ltd. and others

Property, plant and

equipment and others

KRW

171,600

Collateral for borrowings(*2)

SE Green Energy Co., Ltd.

DB Insurance Co., Ltd. and others

Property, plant and

equipment and others

KRW

149,500

Collateral for borrowings(*2)

Gyeonggi Green Energy Co., Ltd.

Korea

Development

Bank and others

Cash and cash

equivalents

KRW

327,080

Collateral for borrowings(*2)

Commerce and Industry Energy Co., Ltd.

IBK and others

Land, buildings,

structures and

machinery and others

KRW

110,500

Collateral for borrowings(*2)

KOSPO Youngnam Power Co., Ltd.

Shinhan Bank

and others

Cash and cash

equivalents

KRW

396,120

Collateral for borrowings(*2)

Gyeongju Wind Power Co., Ltd.

Samsung Fire &

Marine Insurance

Co., Ltd. and

Others

Property, plant and

equipment and others

KRW

110,240

Collateral for borrowings (*2)

Korea Offshore Wind Power Co., Ltd.

Woori Bank and

Others

Utility plant and others

KRW

293,400

Collateral for borrowings(*2)

Qatrana Electric Power Company

The Islamic

Development

Bank and others

Finance lease receivable

and property, plant and equipment and others

JOD

236,570

Collateral for borrowings(*1)

KST Electric Power Company

The Export—Import

Bank of Korea and

others

Finance lease receivable

and property, plant and equipment and others

USD

401,277

Collateral for debt securities(*1)

(*1)	This is based on the amount of loan commitment limit.

(*2)	As of December 31, 2019, the Company has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.

The Company has ￦1,197 million of project loans from Korea Energy Agency as of December 31, 2019. The Company has provided a blank check as a repayment guarantee.

(5)

The Company temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of ￦75,634 million as of December 31, 2019, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of ￦49 million and depreciation on the idle assets of ￦6,542 million are recorded in other expenses for the year ended December 31, 2019. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Company is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of December 31, 2019.

(6)

Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Company can exercise the property rights for the Company’s facility in the Gaeseong Industrial District as of December 31, 2019. The book value of facility is ￦16,611 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex is ￦2,911 million. The outcome of this event cannot be reasonably estimated as of December 31, 2019.

(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 Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of December 31, 2019.