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Retained Earnings and Dividends Paid

12 Months Ended

Dec. 31, 2019

Disclosure of Retained Earnings and Dividends Paid [Abstract]

Retained Earnings and Dividends Paid

31.

Retained Earnings and Dividends Paid

(1)

Details of retained earnings as of December 31, 2018 and 2019 are as follows:


		2018		2019
		In millions of won
Legal reserve(*)	￦		1,604,910		1,604,910
Voluntary reserves			35,906,267		34,785,425
Retained earnings before appropriations			14,007,942		12,811,798

Retained earnings	￦		51,519,119		49,202,133

(*)

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 December 31, 2018 and 2019 are as follows:


		2018		2019
		In millions of won
Reserve for investment on social overhead capital	￦		5,277,449		5,277,449
Reserve for research and human development(*)			330,000		330,000
Reserve for business expansion			30,088,818		28,967,976
Reserve for equalizing dividends			210,000		210,000

	￦		35,906,267		34,785,425

(*)

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 years ended December 31, 2018 and 2019 are as follows:


		2018			2019
		In millions of won
Beginning balance	￦		53,370,558			51,519,119
Effect of change in accounting policy			71,928			—
Net profit (loss) for the period attributed to owner of the Company			(1,314,567	)		(2,345,517	)
Changes in equity method retained earnings			(1,153	)		(6,789	)
Remeasurements of defined benefit liability, net of tax			(100,495	)		36,160
Transfer of gain (loss) on valuation of financial assets through other comprehensive income			—			(840	)
Dividends paid			(507,152	)		—

Ending balance	￦		51,519,119			49,202,133

(4)

Dividends paid for the years ended December 31, 2017, 2018 and 2019 are as follows:

2017

In millions of won

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share

Dividends
paid

(In won)

Common shares

641,964,077

—

641,964,077

￦

1,980

1,271,089

2018

In millions of won

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share

Dividends
paid

(In won)

Common shares

641,964,077

—

641,964,077

￦

790

507,152

2019

In millions of won

Number of
shares issued

Number of
treasury stocks

Number of
shares eligible for
dividends

Dividends paid
per share

Dividends
paid

(In won)

Common shares

641,964,077

—

641,964,077

￦

—

(5)

Changes in retained earnings of investments in associates and joint ventures for the years ended December 31, 2018 and 2019 are as follows:


		2018			2019
		In millions of won
Beginning balance	￦		5,122			3,969
Changes			(1,153	)		(6,789	)

Ending balance	￦		3,969			(2,820	)

(6)

Changes in remeasurement components for the years ended December 31, 2018 and 2019 are as follows:


		2018			2019
		In millions of won
Beginning balance	￦		(43,513	)		(219,381	)
Changes			(154,198	)		76,395
Income tax effect			53,703			(40,235	)
Transfer to reserve for business expansion			(75,373	)		65,442

Ending balance	￦		(219,381	)		(117,779	)