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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

18.

Property, Plant and Equipment

(1)

Property, plant and equipment as of December 31, 2018 and 2019 are as follows:


		2018
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
		In millions of won
Land	￦		13,554,292		(21,968	)		—			—			13,532,324
Buildings			19,431,536		(63,189	)		(7,494,176	)		(3,669	)		11,870,502
Structures			66,335,506		(190,854	)		(23,615,312	)		(8,399	)		42,520,941
Machinery			82,047,823		(173,242	)		(34,151,878	)		(439,350	)		47,283,353
Ships			3,655		—			(3,353	)		—			302
Vehicles			287,954		(4,220	)		(215,649	)		(116	)		67,969
Equipment			1,558,309		(418	)		(1,175,408	)		(42	)		382,441
Tools			1,073,145		(675	)		(880,432	)		(38	)		192,000
Construction-in- progress			29,026,880		(54,740	)		—			(205,713	)		28,766,427
Finance lease assets			2,390,701		(26	)		(2,194,971	)		—			195,704
Asset retirement costs			9,424,181		—			(3,706,004	)		(146,423	)		5,571,754
Others			11,875,394		—			(9,515,917	)		—			2,359,477

	￦		237,009,376		(509,332	)		(82,953,100	)		(803,750	)		152,743,194


		2019
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
		In millions of won
Land	￦		13,848,063		(21,817	)		—			—			13,826,246
Buildings			20,756,351		(61,920	)		(8,305,683	)		(4,962	)		12,383,786
Structures			70,900,343		(186,554	)		(25,711,840	)		(9,633	)		44,992,316
Machinery			89,224,339		(158,907	)		(38,865,392	)		(451,647	)		49,748,393
Ships			3,104		—			(2,903	)		—			201
Vehicles			309,829		(2,275	)		(239,128	)		(116	)		68,310
Equipment			1,716,210		(241	)		(1,342,053	)		(42	)		373,874
Tools			1,098,127		(403	)		(934,023	)		(40	)		163,661
Construction-in-progress			28,584,806		(61,211	)		—			(165,336	)		28,358,259
Right-of-use assets			7,574,010		—			(2,790,437	)		—			4,783,573
Asset retirement costs			11,690,188		—			(4,169,238	)		(146,423	)		7,374,527
Others			12,955,782		—			(10,327,101	)		—			2,628,681

	￦		258,661,152		(493,328	)		(92,687,798	)		(778,199	)		164,701,827

(2)

Changes in property, plant and equipment for the years ended December 31, 2018 and 2019 are as follows:


		2018
		Beginning balance			Acquisition			Disposal			Depreciation			*Impairment(1)**			Others			Ending balance
		In millions of won
Land	￦		13,318,542			2,254			(18,240	)		—			—			251,736			13,554,292
(Government grants)			(21,968	)		—			—			—			—			—			(21,968	)
Buildings			12,053,526			10,156			(8,545	)		(767,845	)		(1,896	)		648,295			11,933,691
(Government grants)			(63,539	)		(4,213	)		31			6,836			—			(2,304	)		(63,189	)
Structures			44,104,778			11,123			(587,278	)		(2,476,278	)		(360	)		1,659,810			42,711,795
(Government grants)			(196,414	)		—			3,270			10,292			—			(8,002	)		(190,854	)
Machinery(*2)			46,875,798			460,676			(250,159	)		(4,973,252	)		(393,839	)		5,737,371			47,456,595
(Government grants)			(183,188	)		(1,185	)		823			18,099			—			(7,791	)		(173,242	)
Ships			403			—			—			(103	)		—			2			302
Vehicles			81,038			2,774			(402	)		(32,620	)		—			21,399			72,189
(Government grants)			(6,322	)		(45	)		—			2,146			—			1			(4,220	)
Equipment			420,672			36,884			(265	)		(187,821	)		(36	)		113,425			382,859
(Government grants)			(761	)		(22	)		—			365			—			—			(418	)
Tools			200,663			12,331			(268	)		(83,283	)		(6	)		63,238			192,675
(Government grants)			(1,027	)		(44	)		—			432			—			(36	)		(675	)
Construction-in-progress			25,572,541			11,749,397			(47,463	)		—			(167,603	)		(8,285,705	)		28,821,167
(Government grants)			(49,084	)		(23,895	)		—			—			—			18,239			(54,740	)
Finance lease assets			297,679			—			—			(101,888	)		—			(61	)		195,730
(Government grants)			(27	)		—			—			1			—			—			(26	)
Asset retirement costs			6,039,484			1,988			—			(610,435	)		(146,424	)		287,141			5,571,754
Others			2,439,620			8,691			(715	)		(709,579	)		—			621,460			2,359,477

	￦		150,882,414			12,266,870			(909,211	)		(9,904,933	)		(710,164	)		1,118,218			152,743,194

(*1)

Korea Hydro & Nuclear Power Co., Ltd. And Korea Western Power Co., Ltd., 100% owned subsidiaries, have determined that there are impairment indicators for the shutdowns of certain power generation units and fire, and performed an impairment test over the individual assets. As a result, the Company recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss in the consolidated statements of comprehensive income.

(*2)

As described in Note 26, the amount of acquisition of machinery includes ￦204,787 million of that the Company believes the possibility of economic benefit outflow is probable on the request for additional construction costs of Hyundai E&C, GS Engineering & Construction Corp. and Hansol SeenTec Co., Ltd.


		2019
		Beginning balance			Effect of change in accounting policy			Acquisition			Disposal			Depreciation			Impairment (1,4)			Others (2,3)			Ending balance
		In millions of won
Land	￦		13,554,292			—			40,752			(29,205	)		—			(25,626	)		307,850			13,848,063
(Government grants)			(21,968	)		—			—			151			—			—			—			(21,817	)
Buildings			11,933,691			—			3,195			(23,409	)		(821,680	)		(1,293	)		1,355,202			12,445,706
(Government grants)			(63,189	)		—			(592	)		—			6,214			—			(4,353	)		(61,920	)
Structures			42,711,795			—			1,663			(470,230	)		(2,399,283	)		(1,234	)		5,336,159			45,178,870
(Government grants)			(190,854	)		—			—			2,405			9,373			—			(7,478	)		(186,554	)
Machinery			47,456,595			—			326,606			(248,951	)		(5,452,669	)		(12,247	)		7,837,966			49,907,300
(Government grants)			(173,242	)		—			(1,050	)		635			17,993			—			(3,243	)		(158,907	)
Ships			302			—			—			—			(100	)		—			(1	)		201
Vehicles			72,189			—			3,789			4,558			(33,650	)		—			23,699			70,585
(Government grants)			(4,220	)		—			(228	)		5			2,170			—			(2	)		(2,275	)
Equipment			382,859			—			47,532			(162	)		(199,376	)		(227	)		143,489			374,115
(Government grants)			(418	)		—			(81	)		—			262			—			(4	)		(241	)
Tools			192,675			—			20,956			(31	)		(87,708	)		—			38,172			164,064
(Government grants)			(675	)		—			—			—			281			—			(9	)		(403	)
Construction-in-progress			28,821,167			—			13,544,091			(199,853	)		—			(8,828	)		(13,737,107	)		28,419,470
(Government grants)			(54,740	)		—			12,338			—			—			—			(18,809	)		(61,211	)
Finance lease assets			195,730			(195,730	)		—			—			—			—			—			—
(Government grants)			(26	)		26			—			—			—			—			—			—
Right-of-use assets			—			5,143,651			220,996			—			(581,074	)		—			—			4,783,573
Asset retirement costs			5,571,754			—			—			—			(626,856	)		—			2,429,629			7,374,527
Others			2,359,477			—			1,388			(221	)		(800,653	)		(581	)		1,069,271			2,628,681

	￦		152,743,194			4,947,947			14,221,355			(964,308	)		(10,966,756	)		(50,036	)		4,770,431			164,701,827

(*1)	KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiary, performed an impairment test over its land and others. The Company recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss.

(*2)	‘Others’ include the amounts of assets acquired by the business combination. (see Note 51)

(*3)	‘Others’ include immaterial amounts which have been reclassed from Construction-in-progress to other assets in the current period to reflect assets that had finished construction in the prior periods.

(*4)	As described in Note 2, the Company recognized impairment loss of ￦3,819 million related to Wolsong unit 1, Shin-Hanul unit 3 and 4 and reversal of impairment loss of ￦16,693 million related to Wolsong unit 1.