6-K 1 d875463d6k.htm FORM 6-K

Form 6-K

Table of Contents

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 June 2020

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.

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QUARTERLY BUSINESS REPORT

(For the period from January 1, 2020 to March 31, 2020)

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.

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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) and other overseas businesses and related investments.

4. Consolidated subsidiaries

(As of March 31, 2020)

Domestic		Overseas		Total
41		79		120

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5. Major changes in management

A. On January 31, 2020, Mr. Park, Jong-Bae was appointed as a non-standing director in replacement of Mr. Kim, Tae-Yoo, who resigned from his position.

B. On March 17, 2020, Mr, Yang, Bong-Ryull, Mr. Kim, Jwa-Kwan and Mr. Jung, Yeon-Gil, whose term of office expired on April 3, 2020, were reappointed as non-standing directors for a term of a year beginning on April 4, 2020.

6. Changes in major shareholders

On December 31, 2014, Korea Development Bank merged with Korea Finance Corporation, and became the largest shareholder of KEPCO.

7. Information regarding KEPCO shares

A. Issued share capital: Won 3,210 billion (Authorized capital: Won 6 trillion)

B. Total number of issued shares: 641,964,077

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

C. Dividends: KEPCO did not pay any dividends for fiscal year of 2019 and 2018. Dividend payments for fiscal year 2017 and 2016 were Won 790 and Won 1,980 per share respectively.

II. Business Overview

1. Consolidated financial results by segment for a three-month period ended March 31, 2020 and 2019

(In billions of Won)

		January to March 2019								January to March 2020
		Sales				Operating profit				Sales				Operating profit
Electricity sales			15,118				-2,411				14,906				-547
Nuclear generation			2,557				655				2,485				327
Thermal generation			7,357				1,103				5,922				587
Others(*)			720				68				904				68
Subtotal			25,752				-585				24,217				435
Adjustment for related- party transactions			-10,504				-45				-9,124				-4
Total			15,248				-630				15,093				431

• The figures may not add up to the relevant total numbers due to rounding.

^(*)  Others relate to subsidiaries including KEPCO E&C, KEPCO KPS, KEPCO NF and KEPCO KDN, among others.

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2. Changes in unit prices of major products

(In Won per kWh)

Business sector				Company		January to March 2019				January to March 2020
Electricity sold		Residential		KEPCO			109.24				110.84
		Commercial					130.09				130.98
		Educational					100.77				103.50
		Industrial					107.86				108.63
		Agricultural					47.96				48.28
		Street lighting					110.06				110.17
		Overnight usage					72.78				72.69
Electricity from nuclear generation		Nuclear Generation		KHNP			68.33				62.59
Electricity from thermal generation		Thermal generation		KOSEP			102.67				96.32
				KOMIPO			108.38				91.41
				KOWEPO			115.29				100.63
				KOSPO			106.49				112.88
				EWP			108.96				111.51

3. Power purchase from generation companies for a three-month period ended March 31, 2020

Company		Volume (GWh)				Expense (In billions of Won)
KHNP			38,302				2,401
KOSEP			12,922				1,231
KOMIPO			11,105				1,177
KOWEPO			10,255				1,032
KOSPO			10,127				1,137
EWP			11,224				1,097
Others			43,172				4,511
Total			137,107				12,586

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4. Intellectual property as of March 31, 2020

		Patents								Utility models				Designs				Trademarks								Total
		Domestic				Overseas												Domestic				Overseas
KEPCO			2,530				266				64				84				108				47				3,099
Generation subsidiaries			2,586				372				114				55				162				23				3,312
Total			5,116				638				178				139				270				70				6,411

III. Financial Information

1. Condensed consolidated financial results as of and for a three-month period ended March 31, 2019 and 2020

(In billions of Won)

Consolidated statements of comprehensive income														Consolidated statements of financial position
		January to March 2019				January to March 2020				Change (%)						December 31, 2019				March 31, 2020				Change (%)
Sales			15,248				15,093				-1.0			Total assets			197,598				199,094				0.8
Operating profit			-630				431				n/m			Total liabilities			128,708				130,272				1.2
Net income			-761				54				n/m			Total equity			68,890				68,822				-0.1

2. Condensed separate financial results as of and for a three-month period ended March 31, 2019 and 2020

(In billions of Won)

Separate statements of comprehensive income														Separate statements of financial position
		January to March 2019				January to March 2020				Change (%)						December 31, 2019				March 31, 2020				Change (%)
Sales			15,118				14,906				-1.4			Total assets			109,809				110,161				0.3
Operating profit			-2,411				-547				77.3			Total liabilities			58,351				59,008				1.1
Net income			-1,650				-226				86.3			Total equity			51,458				51,153				-0.6

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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.

* The Audit Committee consists of one standing director and two non-standing directors.

2. Board meetings and agendas for a three-month period ended March 31, 2020

Number of meetings		Number of agendas		Classification
				Resolutions		Reports
3		15		9		6

* The audit committee held 3 meetings with 13 agendas (of which, 6 were approved as proposed and 7 were accepted as reported).

3. Major activities of the Board of Directors

Date		Agenda		Results		Type
January 22, 2020		Approval of the safety management plan of 2020		Approved as proposed		Resolution
February 28, 2020		Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director		Approved as proposed		Resolution
		Approval to call for the annual general meeting of shareholders for the fiscal year 2019		Approved as proposed		Resolution
		Approval of consolidated and separate financial statements for the fiscal year 2019		Approved as proposed		Resolution
		Approval of the maximum aggregate amount of remuneration for directors in 2020		Approved as proposed		Resolution
		Approval of amendments to the Articles of Incorporation		Approved as proposed		Resolution
		Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service		Approved as proposed		Resolution
		Report on audit results for 2019		Accepted as reported		Report
		Report on internal control over financial reporting for the fiscal year 2019		Accepted as reported		Report
		Report on the evaluation of internal control over financial reporting for the fiscal year 2019		Accepted as reported		Report
		Report on the annual management of commercial papers in 2019		Accepted as reported		Report
		Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)		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 (2020-2021)		Accepted as reported		Report
March 20, 2020		Approval of utilization project of Gwanak-Dongjak regional office site		Approved as proposed		Resolution
		Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia		Approved as proposed		Resolution

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4. Attendance Status of Non-standing directors

Date

Agenda

Kim, Jwa- Kwan

Kim, Chang- Joon

Yang, Bong- Ryull

Jung, Yeon- Gil

Noh, Geum- Sun

Choi, Seung- Kook

Park, Cheol- Su

Park, Jong- Bae

January 22, 2020

Approval of the safety management plan of 2020

For

For

For

For

For

For

For

Before Appointment

February 28, 2020

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

For

For

For

For

For

For

For

For

Approval to call for the annual general meeting of shareholders for the fiscal year 2019

For

For

For

For

For

For

For

For

Approval of consolidated and separate financial statements for the fiscal year 2019

For

For

For

For

For

For

For

For

Approval of the maximum aggregate amount of remuneration for directors in 2020

For

For

For

For

For

For

For

For

Approval of amendments to the Articles of Incorporation

For

For

For

For

For

For

For

For

Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service

For

For

For

For

For

For

For

For

Report on audit results for 2019

Agenda for Report

Report on internal control over financial reporting for the fiscal year 2019

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2019

Agenda for Report

Report on the annual management of commercial papers in 2019

Agenda for Report

Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)

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 (2020-2021)

Agenda for Report

March 20, 2020

Approval of utilization project of Gwanak-Dongjak regional office site

For

For

For

For

For

For

For

For

Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia

For

For

For

For

For

For

For

For

Attendance Rate

100%

100%

100%

100%

100%

100%

100%

100%

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5. Attendance Status of Standing directors

Date

Agenda

JongKap KIM

Kim, Hoe- Chun

Kim, Dong- Sub

Park, Hyung- Duck

Kim, Sung- Arm

Lim, Hyun- Seung

January 22, 2020

Approval of the safety management plan of 2020

For

For

For

For

For

For

February 28, 2020

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

For

For

For

For

For

For

Approval to call for the annual general meeting of shareholders for the fiscal year 2019

For

For

For

For

For

For

Approval of consolidated and separate financial statements for the fiscal year 2019

For

For

For

For

For

For

Approval of the maximum aggregate amount of remuneration for directors in 2020

For

For

For

For

For

For

Approval of amendments to the Articles of Incorporation

For

For

For

For

For

For

Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service

For

For

For

For

For

For

Report on audit results for 2019

Agenda for Report

Report on internal control over financial reporting for the fiscal year 2019

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2019

Agenda for Report

Report on the annual management of commercial papers in 2019

Agenda for Report

Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)

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 (2020-2021)

Agenda for Report

March 20, 2020

Approval of utilization project of Gwanak-Dongjak regional office site

For

For

For

For

For

For

Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia

For

For

For

For

For

For

Attendance Rate

100%

100%

100%

100%

100%

100%

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6. Major activities of the Audit Committee

Date		Agenda		Results		Type
January 22, 2020		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Approval of Audit plans for 2020		Approved as proposed		Resolution
		Report on education plans for auditors in 2020		Accepted as reported		Report
		Prior report on independence of independent auditors		Accepted as reported		Report
February 28. 2020		Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019		Approved as proposed		Resolution
		Report on internal control over financial reporting for the fiscal year 2019		Accepted as reported		Report
		Report on the evaluation on internal control over financial reporting for the fiscal year 2019		Accepted as reported		Report
		Report on agendas with audit service by independent auditors for fiscal year 2019		Accepted as reported		Report
		Report on audit results for fiscal year 2019		Accepted as reported		Report
March 20, 2020		Prior approval for non-audit service for subsidiaries by the independent auditor		Approved as proposed		Resolution
		Approval of investigation result on the agendas 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 2019		Accepted as reported		Report

* 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. KEPCO’s District Divisions and Branch Offices also have separate audit teams which conduct internal inspections with respect to the relevant divisions or offices.

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7. Attendance Status of the Audit Committee

Date		Agenda		Noh, Geum-Sun		Jung, Yeon-Gil		Lee, Jung-Hee(*)
January 22, 2020		Approval of appointment of independent auditors of subsidiaries		For		For		Absent
		Approval of Audit plans for 2020		For		For		Absent
		Report on education plans for auditors in 2020		For		For		Absent
		Prior report on independence of independent auditors		For		For		Absent
February 28. 2020		Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019		For		For		Absent
		Report on internal control over financial reporting for the fiscal year 2019		For		For		Absent
		Report on the evaluation on internal control over financial reporting for the fiscal year 2019		For		For		Absent
		Report on agendas with audit service by independent auditors for fiscal year 2019		For		For		Absent
		Report on audit results for fiscal year 2019		For		For		Absent
March 20, 2020		Prior approval for non-audit service for subsidiaries by the independent auditor		For		For		Absent
		Approval of investigation result on the agendas for the annual general meeting of shareholders		For		For		Absent
		Approval of auditor’s report for the annual general meeting of shareholders		For		For		Absent
		Report on audit results by the independent auditor for the fiscal year 2019		For		For		Absent
		Attendance Rate		100%		100%		—

^(*)  Lee, Jung-Hee voluntarily resigned as a standing director and as a member of the audit committee on December 13, 2019. Under Korean law, Lee, Jung-Hee retains the rights and is subject to obligations as a member of the audit committee and a standing director, to the extent such rights and obligations are connected to performance of his duties as a member of the audit committee, until his successor to take his place at our audit committee is approved and appointed at a general meeting of the shareholders.

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V. Shareholders

1. List of shareholders as of December 31, 2019

				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				50,592,477				7.88
Public (Non-Koreans)		Common Shares			1,024				127,250,445				19.82
		American depositary shares (ADS)			1				27,593,238				4.30
Public (Koreans)					431,598				108,450,859				16.90
Total					432,626				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.

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VI. Directors and employees as of and for a three-month period ended March 31, 2020 (KEPCO Only)

1. Directors

				(In thousands of Won)
Type				Number of directors				Total remuneration				Average remuneration per person				Remarks
Standing director					6				193,655				32,276			Excluding the members of Audit Committee
Non-standing director					6				41,854				6,976
Member of Audit Committee		Standing director			0				—				—			Vacant after December 13, 2019
		Non-standing director			2				15,000				7,500			—
Total					14				250,509				17,894			—

2. Employees

		(In thousands of Won)
Type		Number of employees												Average continuous service year				Total salaries				Average salaries per person
		Regular				Non-regular				Total
Male			17,762				78				17,840				15.7				405,882,117				22,751
Female			4,748				58				4,806				13.0				88,239,744				18,360
Total			22,510				136				22,646				15.1				494,121,861				21,819

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VII. Other Information Necessary for the Protection of Investors

1. Summary of shareholder’s meetings for a three-month period ended March 31, 2020

Type		Agenda		Results
Annual General Meeting held on March 27, 2020		Approval of the consolidated and separate financial statements for the fiscal year 2019		Approved as proposed
		Approval of the maximum aggregate amount of remuneration for directors in 2020		Approved as proposed
		Approval of amendments to the Articles of Incorporation		Approved as proposed

2. Pending legal proceedings as of March 31, 2020

		(In billions of Won)
Type		Number of lawsuits				Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants			636				676
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs			199				439

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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.

By:		/s/ Kim, Byung-in
Name:		Kim, Byung-in
Title:		Vice President

Date: June 4, 2020

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KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

March 31, 2020

(Unaudited)

(With Independent Auditor’s Report Thereon)

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INDEX TO FINANCIAL STATEMENTS

		Page
Independent Auditor’s Review Report			1
Consolidated Interim Statements of Financial Position			2
Consolidated Interim Statements of Comprehensive Income (Loss)			4
Consolidated Interim Statements of Changes in Equity			6
Consolidated Interim Statements of Cash Flows			8
Notes to the Consolidated Interim Financial Statements			10

2

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Ernst & Young Han Young Taeyoung Building, 111, Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 150-777 Korea   Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Independent Auditor’s Review Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders

Korea Electric Power Corporation:

Report on Review of Consolidated Interim Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred as the “Group”), which comprise the consolidated interim statement of financial position as of March 31, 2020, the consolidated interim statements of comprehensive income (loss), consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the three-month periods ended March 31, 2020 and 2019 and the notes to the accompanying consolidated interim financial statements, including a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“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 Review Responsibility

Our responsibility is to issue a report on these consolidated interim 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 statements 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 auditing standards generally accepted in the Republic of Korea (“KGAAS”) 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 reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements are not prepared, in all material respects, in accordance with KIFRS 1034 ‘Interim Financial Reporting’.

Other Matters

We have audited the consolidated statement of financial position as of December 31, 2019, 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, in accordance with KGAAS (not presented herein), our report dated March 17, 2020 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2019 presented for comparative purpose is not different, in all material respects, from the above audited consolidated statement of financial position.

May 15, 2020

This review report is effective as of May 15, 2020, 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 consolidated interim financial statements and may result in modifications to this review report.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of March 31, 2020 and December 31, 2019

(Unaudited)

In millions of won		Note				March 31, 2020				December 31, 2019
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	1,458,491				1,810,129
Current financial assets, net			5,6,9,11,12,13,44				3,464,952				1,586,509
Trade and other receivables, net			5,8,20,24,44,45,46				6,673,798				7,701,452
Inventories, net			14				6,870,199				7,050,700
Income tax receivables							27,884				99,718
Current non-financial assets			15				1,223,019				1,206,377
Assets held-for-sale			16,41				23,290				28,116
Total current assets							19,741,633				19,483,001
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44				2,984,955				2,563,498
Non-current trade and other receivables, net			5,8,20,44,45,46				2,060,052				2,002,297
Property, plant and equipment, net			18,24,27,48				165,095,908				164,701,827
Investment properties, net			19,27				138,968				158,580
Goodwill			16				97,977				97,977
Intangible assets other than goodwill, net			21,27,45				1,100,947				1,069,976
Investments in associates			4,17				4,392,883				4,251,802
Investments in joint ventures			4,17				1,708,886				1,663,029
Defined benefit assets, net			25				—				1,047
Deferred tax assets							1,514,464				1,437,829
Non-current non-financial assets			15				257,500				166,929
Total non-current assets							179,352,540				178,114,791
Total Assets			4			W	199,094,173				197,597,792

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of March 31, 2020 and December 31, 2019

(Unaudited)

In millions of won		Note				March 31, 2020				December 31, 2019
Liabilities
Current liabilities
Trade and other payables, net			5,22,24,44,46			W	5,652,069				6,649,402
Current financial liabilities, net			5,12,23,44,46				7,934,830				8,930,903
Income tax payables							490,469				358,277
Current non-financial liabilities			20,28,29				6,138,821				5,688,353
Current provisions			26,44				2,879,638				2,604,721
Total current liabilities							23,095,827				24,231,656
Non-current liabilities
Non-current trade and other payables, net			5,22,24,44,46				7,139,179				6,965,760
Non-current financial liabilities, net			5,12,23,44,46				61,278,808				59,115,598
Non-current non-financial liabilities			28,29				9,004,528				8,834,452
Employee benefits liabilities, net			25,44				2,073,620				1,929,854
Deferred tax liabilities							8,458,164				8,564,775
Non-current provisions			26,44				19,221,929				19,066,048
Total non-current liabilities							107,176,228				104,476,487
Total Liabilities			4			W	130,272,055				128,708,143
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			31
Legal reserves							1,604,910				1,604,910
Voluntary reserves							34,785,425				34,785,425
Unappropriated retained earnings							12,793,451				12,811,798
							49,183,786				49,202,133
Other components of equity			33
Other capital surplus							1,224,402				1,226,364
Accumulated other comprehensive loss							(318,784	)			(280,730	)
Other equity							13,294,973				13,294,973
							14,200,591				14,240,607
Equity attributable to owners of the controlling company							67,437,955				67,496,318
Non-controlling interests			16,32				1,384,163				1,393,331
Total Equity						W	68,822,118				68,889,649
Total Liabilities and Equity						W	199,094,173				197,597,792

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won, except per share information		Note				March 31, 2020				March 31, 2019
Sales			4,34,44,46
Sales of goods						W	14,612,845				14,754,012
Sales related to provision of services							120,225				94,879
Sales related to construction contracts			20				207,421				256,054
Revenue related to transfer of assets from customers			28				152,636				143,459
							15,093,127				15,248,404
Cost of sales			14,25,42,46
Cost of sales of goods							(13,677,754	)			(14,891,171	)
Cost of sales related to provision of services							(255,024	)			(123,722	)
Cost of sales related to construction contracts							(163,997	)			(237,015	)
							(14,096,775	)			(15,251,908	)
Gross profit (loss)							996,352				(3,504	)
Selling and administrative expenses			25,35,42,46				565,798				626,376
Operating income (loss)			4				430,554				(629,880	)
Other non-operating income			36				86,524				80,597
Other non-operating expense			36				(16,613	)			(20,236	)
Other gains (losses), net			37				61,940				(10,284	)
Finance income			5,12,38				800,765				301,575
Finance expenses			5,12,39				(1,424,036	)			(698,776	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,17
Gain on valuation of investments in associates and joint ventures							239,961				205,732
Gain on disposal of investments in associates and joint ventures							—				6,200
Loss on valuation of investments in associates and joint ventures							(34,124	)			(30,543	)
Loss on disposal of investments in associates and joint ventures							(16	)			(2	)
							205,821				181,387
Profit (loss) before income tax							144,955				(795,617	)
Income tax expense (benefit)			40				91,347				(34,461	)
Net profit (loss) for the period						W	53,608				(761,156	)

(Continued)

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Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won, except per share information		Note				March 31, 2020				March 31, 2019
Other comprehensive income (loss)			5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			25,31			W	(36,285	)			(97,763	)
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax			31				(248	)			206
Net change in fair value of financial assets at fair value through other comprehensive income (loss)			33				(51,545	)			18,871
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			5,12,33				24,017				5,263
Foreign currency translation of foreign operations, net of tax			33				44,723				24,237
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax			33				(38,831	)			27,280
Other comprehensive loss, net of tax							(58,169	)			(21,906	)
Total comprehensive loss for the period						W	(4,561	)			(783,062	)
Profit (loss) attributable to:
Owners of the controlling company			43			W	22,979				(787,798	)
Non-controlling interests							30,629				26,642
						W	53,608				(761,156	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company						W	(56,401	)			(812,702	)
Non-controlling interests							51,840				29,640
						W	(4,561	)			(783,062	)
Earnings (loss) per share (in won)			43
Basic and diluted earnings (loss) per share						W	36				(1,227	)

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

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Consolidated Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2020 and 2019

(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 at January 1, 2019		W	4,053,578				51,519,119				14,171,228				69,743,925				1,348,837				71,092,762
Total comprehensive income (loss) for the period
Net profit (loss) for the period			—				(787,798	)			—				(787,798	)			26,642				(761,156	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				(94,641	)			—				(94,641	)			(3,122	)			(97,763	)
Share in other comprehensive income of associates and joint ventures, net of tax			—				206				—				206				—				206
Net change in fair value of equity investments at fair value through other comprehensive income			—				—				13,105				13,105				5,766				18,871
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			—				—				4,908				4,908				355				5,263
Foreign currency translation of foreign operations, net of tax			—				—				24,237				24,237				—				24,237
Share in other comprehensive income (loss) of associates and joint ventures, net of tax			—				—				27,281				27,281				(1	)			27,280
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(58,455	)			(58,455	)
Transactions between consolidated entities			—				—				(254	)			(254	)			2,592				2,338
Changes in consolidation scope			—				—				—				—				15,409				15,409
Dividends paid (hybrid bond)			—				—				—				—				(3,346	)			(3,346	)
Others			—				(1,504	)			1,504				—				—				—
Balance at March 31, 2019		W	4,053,578				50,635,382				14,242,009				68,930,969				1,334,677				70,265,646

(Continued)

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Consolidated Interim Statements of Changes in Equity, Continued

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won		Equity attributable to owners of the controlling company																Non- controlling interests
		Contributed capital				Retained earnings				Other components of equity				Subtotal								Total equity
Balance at January 1, 2020		W	4,053,578				49,202,133				14,240,607				67,496,318				1,393,331				68,889,649
Total comprehensive income (loss) for the period
Net profit for the period			—				22,979				—				22,979				30,629				53,608
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				(41,078	)			—				(41,078	)			4,793				(36,285	)
Share in other comprehensive income of associates and joint ventures, net of tax			—				(248	)			—				(248	)			—				(248	)
Net change in fair value of equity investments at fair value through other comprehensive income			—				—				(51,544	)			(51,544	)			(1	)			(51,545	)
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			—				—				13,962				13,962				10,055				24,017
Foreign currency translation of foreign operations, net of tax			—				—				38,364				38,364				6,359				44,723
Share in other comprehensive income (loss) of associates and joint ventures, net of tax			—				—				(38,836	)			(38,836	)			5				(38,831	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(66,735	)			(66,735	)
Issuance of shares of capital by subsidiaries and others			—				—				(1,962	)			(1,962	)			9,073				7,111
Dividends paid (hybrid bond)			—				—				—				—				(3,346	)			(3,346	)
Balance at March 31, 2020		W	4,053,578				49,183,786				14,200,591				67,437,955				1,384,163				68,822,118

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

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Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won		March 31, 2020				March 31, 2019
Cash flows from operating activities
Net profit (loss) for the year		W	53,608				(761,156	)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Income tax expense (benefit)			91,347				(34,461	)
Depreciation			2,800,959				2,619,248
Amortization			38,115				36,826
Employee benefit expense			108,957				95,188
Bad debts expense			18,488				5,800
Interest expense			516,383				503,377
Loss on sale of financial assets			47				58
Loss on disposal of property, plant and equipment			7,786				13,992
Loss on abandonment of property, plant, and equipment			77,208				98,537
Loss on impairment of property, plant, and equipment			—				2,279
Increase in provisions, net			429,557				333,586
Loss on foreign currency translation, net			681,083				194,934
Gain on valuation of financial assets at fair value through profit or loss			(6,225	)			(4,961	)
Loss on valuation of financial assets at fair value through profit or loss			225				696
Valuation and transaction gain on derivative instruments, net			(504,911	)			(181,059	)
Share in income of associates and joint ventures, net			(205,837	)			(175,189	)
Gain on sale of financial assets			—				(850	)
Gain on disposal of property, plant and equipment			(27,357	)			(8,833	)
Gain on disposal of intangible assets			—				(97	)
Gain on disposal of associates and joint ventures			—				(6,200	)
Loss on disposal of associates and joint ventures			16				2
Interest income			(66,506	)			(61,304	)
Dividend income			(42	)			(1,313	)
Others, net			(25,617	)			(6,726	)
			3,933,676				3,423,530
Changes in operating assets and liabilities:
Trade receivables			1,007,582				925,080
Non-trade receivables			149,028				86,112
Accrued income			(6,591	)			193,753
Other receivables			18,836				19,588
Other current assets			(87,992	)			30,488
Inventories			56,677				(101,573	)
Other non-current assets			(30,165	)			(30,886	)
Trade payables			(508,736	)			(525,831	)
Non-trade payables			(398,060	)			(252,938	)
Accrued expenses			(155,967	)			(258,941	)
Other payables			1,189				—
Other current liabilities			461,592				256,414
Other non-current liabilities			119,912				49,820
Investments in associates and joint ventures (dividends received)			26,638				54,645
Provisions			(47,032	)			(169,446	)
Payments of employee benefit obligations			(17,589	)			(19,244	)
Plan assets			(1,669	)			(270	)
		W	587,653				256,771

(Continued)

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Consolidated Interim Statements of Cash Flows, Continued

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won		March 31, 2020				March 31, 2019
Cash generated from operating activities		W	4,574,937				2,919,145
Dividends received (financial assets at fair value through other comprehensive income)			42				1,313
Interest paid			(513,938	)			(538,055	)
Interest received			38,701				42,330
Income taxes paid			(55,602	)			(84,967	)
Net cash provided by operating activities			4,044,140				2,339,766
Cash flows from investing activities
Proceeds from disposals of associates and joint ventures			93				—
Acquisition of associates and joint ventures			(36,008	)			(45,670	)
Proceeds from disposals of property, plant and equipment			96,279				89,476
Acquisition of property, plant and equipment			(3,020,721	)			(2,271,156	)
Proceeds from disposals of intangible assets			2,662				457
Acquisition of intangible assets			(13,783	)			(69,743	)
Proceeds from disposals of investment properties			41,059				—
Proceeds from disposals of financial assets			1,447,028				399,260
Acquisition of financial assets			(3,201,943	)			(1,565,586	)
Increase in loans			(132,858	)			(54,284	)
Collection of loans			117,028				70,933
Increase in deposits			(139,862	)			(67,671	)
Decrease in deposits			131,505				71,328
Proceeds from disposals of assets held-for-sale			4,841				—
Receipt of government grants			150				4,427
Net cash inflow from changes in consolidation scope			—				16,737
Other cash outflow from investing activities, net			(26,726	)			(4,364	)
Net cash used in investing activities			(4,731,256	)			(3,425,856	)
Cash flows from financing activities
Proceeds from (repayment of) short-term borrowings, net			(972,383	)			1,869,635
Proceeds from long-term borrowings and debt securities			3,296,239				3,480,192
Repayment of long-term borrowings and debt securities			(1,804,494	)			(3,440,060	)
Payment of lease liabilities			(199,867	)			(111,403	)
Settlement of derivative instruments, net			22,517				24,435
Change in non-controlling interest			9,868				10
Dividends paid (hybrid bond)			(3,346	)			(3,346	)
Dividends paid			(20,724	)			(16,082	)
Other cash outflow from financing activities, net			(5	)			—
Net cash provided by financing activities			327,805				1,803,381
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations			(359,311	)			717,291
Effect of exchange rate fluctuations on cash held			7,673				2,587
Net increase (decrease) in cash and cash equivalents			(351,638	)			719,878
Cash and cash equivalents at January 1			1,810,129				1,358,345
Cash and cash equivalents at March 31		W	1,458,491				2,078,223

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

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Notes to the Consolidated Interim Financial Statements

March 31, 2020

(Unaudited)

1. Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in Korean International Financial Reporting Standards (“KIFRS”) 1110 ‘Consolidated Financial Statements’, 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 listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju, Jeollanam-do.

As of March 31, 2020, KEPCO’s share capital amounts to W3,209,820 million and KEPCO’s shareholders are as follows:

		Number of shares				Percentage of ownership
Government of the Republic of Korea			116,841,794				18.20	%
Korea Development Bank			211,235,264				32.90	%
Others (*)			313,887,019				48.90	%
			641,964,077				100.00	%

(*) The number of shares held by foreign shareholders are 154,843,683 shares (24.12%) as of December 31, 2019.

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 interim financial statements have been prepared in accordance with KIFRS 1034 ‘Interim Financial Reporting’ as part of the period covered by KEPCO and subsidiaries’ (the “Group”) KIFRS annual financial statements.

(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 (“Won”), which is KEPCO’s functional currency and the currency of the primary economic environment in which the Group operates.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 key assumptions concerning the future, 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 are as follows:

(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 does not realize estimated future taxable income during the carryforward periods.

(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).

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

(v) Unbilled revenue

Energy delivered but not metered nor billed is estimated at the reporting date based on consumption statistics and selling price estimates. Determination of the unbilled revenues at the end of the reporting period is sensitive to the estimated consumptions and prices based on statistics. Unbilled revenue recognized as of March 31, 2020 and 2019 are W1,240,270 million and W1,348,717 million, respectively.

(vi) Construction contracts

For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress towards complete satisfaction of that performance obligation. The Group applies a single method of measuring progress for each performance obligation satisfied over time and applies that method consistently to similar performance obligations and in similar circumstances. Revenue and costs are recognized based on the progress towards complete satisfaction of a performance obligation utilizing the cost-based input method at the end of the reporting period. 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 in the future, costs incurred which are not related to the performance obligation, changes in the Group’s efforts or inputs due to change of the performance obligation, etc. Total revenue is measured based on an agreed contract price; however, it may fluctuate due to the variation of performance obligations. The measurement of revenue is affected by various uncertainties resulting from unexpected future events.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies

Changes in accounting standards effective from January 1, 2020 are as follows. The Group believes that these amendments have no significant impact on the Group’s consolidated interim 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, 2020, even though the early adoption of these standards is possible.

Amendments to KIFRS 1103 Business Combination—Definition of a Business

The amendment to KIFRS 1103 clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Furthermore, it clarified that a business can exist without including all of the inputs and processes needed to create outputs.

Amendments to KIFRS 1107 Financial Instruments : disclosures, KIFRS 1109 Financial Instruments, and KIFRS 1039 Financial Instruments : Recognition and Measurements – Interest Rate Benchmark Reform

The amendments to KIFRS 1109 and KIFRS 1039 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument.

Amendments to KIFRS 1001 Presentation of Financial Statements and KIFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Material

The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.”

The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users.

The Conceptual Framework for Financial Reporting

The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards.

The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts.

3. Significant Accounting Policies

The accounting policies applied by the Group in these consolidated interim 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, 2019.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 the Group’s the chief operating decision maker, 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 arms-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 consolidation 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three-month periods ended March 31, 2020 and 2019, respectively, are as follows:

In millions of won
March 31, 2020
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
Transmission and distribution		W	14,905,633				314,343				14,591,290				(547,321	)			937,777				16,281				200,388				129,884
Electric power generation (Nuclear)			2,485,055				2,456,228				28,827				327,428				880,620				5,945				124,356				(988	)
Electric power generation (Non-nuclear)			5,921,662				5,673,033				248,629				586,900				989,554				5,567				160,610				75,382
Plant maintenance & engineering service			545,627				412,720				132,907				31,928				29,536				3,555				489				1,543
Others			358,690				267,216				91,474				35,937				27,393				43,197				36,495				—
Consolidation adjustments			(9,123,540	)			(9,123,540	)			—				(4,318	)			(25,806	)			(8,039	)			(5,955	)			—
		W	15,093,127				—				15,093,127				430,554				2,839,074				66,506				516,383				205,821
In millions of won
March 31, 2019
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
Transmission and distribution		W	15,117,687				382,070				14,735,617				(2,411,381	)			883,574				19,092				186,008				145,069
Electric power generation (Nuclear)			2,556,962				2,534,233				22,729				655,762				774,015				8,902				127,747				1,531
Electric power generation (Non-nuclear)			7,357,654				7,058,553				299,101				1,102,920				964,468				5,340				166,277				36,625
Plant maintenance & engineering service			499,482				426,386				73,096				36,496				30,796				3,765				1,435				(1,838	)
Others			220,356				102,495				117,861				31,335				21,142				31,369				29,482				—
Consolidation adjustments			(10,503,737	)			(10,503,737	)			—				(45,012	)			(17,921	)			(7,164	)			(7,572	)			—
		W	15,248,404				—				15,248,404				(629,880	)			2,656,074				61,304				503,377				181,387

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
Match 31, 2020
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	110,161,326				3,818,750				1,417,315				59,008,538
Electric power generation (Nuclear)			60,047,554				57,499				689,048				34,281,584
Electric power generation (Non-nuclear)			54,483,751				2,174,654				666,328				32,751,482
Plant maintenance & engineering service			3,439,013				50,866				21,613				1,121,527
Others			8,488,580				—				229,622				3,934,541
Consolidation adjustments			(37,526,051	)			—				10,578				(825,617	)
		W	199,094,173				6,101,769				3,034,504				130,272,055
In millions of won
December 31, 2019
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	109,809,254				3,716,931				6,340,593				58,350,681
Electric power generation (Nuclear)			59,562,190				59,081				2,574,358				33,909,152
Electric power generation (Non-nuclear)			54,758,933				2,088,581				4,955,784				33,117,193
Plant maintenance & engineering service			3,528,879				50,238				95,810				1,124,855
Others			7,833,516				—				344,795				3,531,496
Consolidation adjustments			(37,894,980	)			—				(81,555	)			(1,325,234	)
		W	197,597,792				5,914,831				14,229,785				128,708,143

(4) Geographic information

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

In millions of won		Revenue from external customers								Non-current assets (*2)
Geographical unit		March 31, 2020				March 31, 2019				March 31, 2020				December 31, 2019
Domestic		W	14,783,111				14,889,435				169,924,332				169,366,365
Overseas (*1)			310,016				358,969				2,868,737				2,743,755
		W	15,093,127				15,248,404				172,793,069				172,110,120

(*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) Amounts exclude financial assets, defined benefit assets and deferred tax assets.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(5) Information on significant customers

There is no individual customer comprising more than 10% of the Group’s revenue for the three-month periods ended March 31, 2020 and 2019.

5. Classification of Financial Instruments

(1) Classification of financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		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	—				—				1,458,491				—				1,458,491
Current financial assets
Current financial assets at fair value through profit or loss			1,313,009				—				—				—				1,313,009
Current financial assets at amortized costs			—				—				12,316				—				12,316
Current derivative assets			6,501				—				—				145,256				151,757
Other financial assets			—				—				1,987,870				—				1,987,870
Trade and other receivables			—				—				6,673,798				—				6,673,798
			1,319,510				—				10,132,475				145,256				11,597,241
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			662,540				—				—				—				662,540
Non-current financial assets at fair value through other comprehensive income			—				304,425				—				—				304,425
Non-current financial assets at amortized costs			—				—				1,317				—				1,317
Non-current derivative assets			444,096				—				—				260,440				704,536
Other financial assets			—				—				1,312,137				—				1,312,137
Trade and other receivables			—				—				2,060,052				—				2,060,052
			1,106,636				304,425				3,373,506				260,440				5,045,007
		W	2,426,146				304,425				13,505,981				405,696				16,642,248

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won		December 31, 2019
		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	—				—				1,810,129				—				1,810,129
Current financial assets
Current financial assets at fair value through profit or loss			131,385				—				—				—				131,385
Current financial assets at amortized costs			—				—				12,302				—				12,302
Current derivative assets			21				—				—				27,597				27,618
Other financial assets			—				—				1,415,204				—				1,415,204
Trade and other receivables			—				—				7,701,452				—				7,701,452
			131,406				—				10,939,087				27,597				11,098,090
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			615,876				—				—				—				615,876
Non-current financial assets at fair value through other comprehensive income			—				379,170				—				—				379,170
Non-current financial assets at amortized costs			—				—				1,307				—				1,307
Non-current derivative assets			165,183				—				—				118,232				283,415
Other financial assets			—				—				1,283,730				—				1,283,730
Trade and other receivables			—				—				2,002,297				—				2,002,297
			781,059				379,170				3,287,334				118,232				4,565,795
		W	912,465				379,170				14,226,421				145,829				15,663,885

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		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—					286,926				—				286,926
Debt securities			—				7,555,473				—				7,555,473
Derivative liabilities			9,204				—				83,227				92,431
Trade and other payables			—				5,652,069				—				5,652,069
			9,204				13,494,468				83,227				13,586,899
Non-current liabilities
Borrowings			—				3,605,389				—				3,605,389
Debt securities			—				57,540,519				—				57,540,519
Derivative liabilities			75,819				—				57,081				132,900
Trade and other payables			—				7,139,179				—				7,139,179
			75,819				68,285,087				57,081				68,417,987
		W	85,023				81,779,555				140,308				82,004,886

In millions of won		December 31, 2019
		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	—				1,315,134				—				1,315,134
Debt securities			—				7,542,705				—				7,542,705
Derivative liabilities			13,286				—				59,778				73,064
Trade and other payables			—				6,649,402				—				6,649,402
			13,286				15,507,241				59,778				15,580,305
Non-current liabilities
Borrowings			—				3,389,743				—				3,389,743
Debt securities			—				55,628,959				—				55,628,959
Derivative liabilities			39,861				—				57,035				96,896
Trade and other payables			—				6,965,760				—				6,965,760
			39,861				65,984,462				57,035				66,081,358
		W	53,147				81,491,703				116,813				81,661,663

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income (loss) from financial instruments for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won				March 31, 2020				March 31, 2019
Cash and cash equivalents		Interest income		W	28,455				17,895
Financial assets at fair value through profit or loss		Interest income			2,722				686
		Gain on valuation of financial assets			6,000				4,265
		Gain (loss) on disposal of financial assets			(47	)			792
Financial assets at fair value through other comprehensive income		Dividends income			42				1,313
Financial assets at amortized cost		Interest income			90				18
Loans		Interest income			2,157				12,674
Trade and other receivables		Interest income			12,493				19,028
Short-term financial instruments		Interest income			8,502				10,851
Long-term financial instruments		Interest income			2,862				1
Other financial assets		Interest income			9,225				151
Financial liabilities carried at amortized cost		Interest expense of borrowings and debt securities			357,508				346,950
		Interest expense of trade and other payables			50,793				28,377
		Interest expense of others			108,082				128,050
		Other finance income			149				—
		Loss on foreign currency transactions and translations			(694,693	)			(198,850	)
Derivatives (trading)		Gain on valuation of derivatives (profit or loss)			248,820				81,910
		Gain on transaction of derivatives			20,336				13,001
Derivatives (applying hedge accounting)		Gain on valuation of derivatives (profit or loss)			228,175				73,667
		Gain on valuation of derivatives (equity, before tax)			32,343				14,634
		Gain on transaction of derivatives			7,580				12,481

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

6. Restricted Deposits

Restricted deposits as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won				March 31, 2020		December 31, 2019
Cash and cash equivalents		Deposits for government project		W8,215			9,287
		Collateral provided for borrowings		81,269			63,198
		Collateral provided for lawsuit		2			3
		Deposits for transmission regional support program		7,868			3,002
Short-term financial instruments		Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises		93,000			93,000
Non-current financial assets at fair value through profit or loss		Decommissioning costs of nuclear power plants		557,693			541,969
Long-term financial instruments		Escrow		98			74
		Guarantee deposits for banking accounts at oversea branches		344			326
		Collateral provided for borrowings		11,745			11,745
		Decommissioning costs of nuclear power plants		268,073			250,464
		Funds for developing small and medium enterprises (*)		200,000			200,000
				W1,228,307			1,173,068

(*) Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for high potential businesses as of March 31, 2020 and December 31, 2019.

7. Cash and Cash Equivalents

Cash and cash equivalents as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Cash		W	1,059				266
Other demand deposits			1,024,726				1,117,499
Short-term deposits classified as cash equivalents			373,040				527,235
Short-term investments classified as cash equivalents			59,666				165,129
		W	1,458,491				1,810,129

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	6,210,754				(224,522	)			—				5,986,232
Other receivables			717,278				(27,761	)			(1,951	)			687,566
			6,928,032				(252,283	)			(1,951	)			6,673,798
Non-current assets
Trade receivables			329,374				(221	)			(330	)			328,823
Other receivables			1,826,199				(90,178	)			(4,792	)			1,731,229
			2,155,573				(90,399	)			(5,122	)			2,060,052
		W	9,083,605				(342,682	)			(7,073	)			8,733,850

In millions of won		December 31, 2019
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	7,147,683				(208,505	)			—				6,939,178
Other receivables			792,147				(27,579	)			(2,294	)			762,274
			7,939,830				(236,084	)			(2,294	)			7,701,452
Non-current assets
Trade receivables			338,261				(4,254	)			(382	)			333,625
Other receivables			1,759,930				(86,576	)			(4,682	)			1,668,672
			2,098,191				(90,830	)			(5,064	)			2,002,297
		W	10,038,021				(326,914	)			(7,358	)			9,703,749

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	271,672				(27,433	)			—				244,239
Accrued income			96,641				—				—				96,641
Deposits			269,334				—				(1,951	)			267,383
Finance lease receivables			65,172				(328	)			—				64,844
Others			14,459				—				—				14,459
			717,278				(27,761	)			(1,951	)			687,566
Non-current assets
Non-trade receivables			188,665				(80,397	)			—				108,268
Accrued income			3,371				—				—				3,371
Deposits			357,958				—				(4,792	)			353,166
Finance lease receivables			1,165,814				(365	)			—				1,165,449
Others			110,391				(9,416	)			—				100,975
			1,826,199				(90,178	)			(4,792	)			1,731,229
		W	2,543,477				(117,939	)			(6,743	)			2,418,795

In millions of won		December 31, 2019
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	376,438				(27,201	)			—				349,237
Accrued income			68,921				—				—				68,921
Deposits			273,887				—				(2,294	)			271,593
Finance lease receivables			60,304				(378	)			—				59,926
Others			12,597				—				—				12,597
			792,147				(27,579	)			(2,294	)			762,274
Non-current assets
Non-trade receivables			196,821				(78,654	)			—				118,167
Accrued income			2,222				—				—				2,222
Deposits			338,989				—				(4,682	)			334,307
Finance lease receivables			1,118,537				(484	)			—				1,118,053
Others			103,361				(7,438	)			—				95,923
			1,759,930				(86,576	)			(4,682	)			1,668,672
		W	2,552,077				(114,155	)			(6,976	)			2,430,946

(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. But 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Trade receivables: (not overdue)		W	6,227,864				7,338,757
Trade receivables: (impairment reviewed)			312,264				147,187
Less than 60 days			4,132				6,555
60 ~ 90 days			41,277				1,899
90 ~ 120 days			12,376				2,106
120 days ~ 1 year			59,829				37,357
Over 1 year			194,650				99,270
			6,540,128				7,485,944
Less: allowance for doubtful accounts			(224,743	)			(212,759	)
Less: present value discount			(330	)			(382	)
		W	6,315,055				7,272,803

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 trade 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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Trade receivables				Other receivables				Trade receivables				Other receivables
Beginning balance		W	212,759				114,155				215,868				104,726
Bad debts expense			21,310				34				29,221				19,206
Write-off, etc.			(2,694	)			665				(10,106	)			(1,146	)
Reversal			(2,833	)			(24	)			(41,940	)			—
Others			(3,799	)			3,109				19,716				(8,631	)
Ending balance		W	224,743				117,939				212,759				114,155

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

9. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		W	—				200,594				894				160,952
Cooperative			—				32,888				—				5,155
Others (*)			1,313,009				226,775				130,491				244,857
			1,313,009				460,257				131,385				410,964
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—				154,978				—				150,916
Others			—				47,305				—				53,996
			—				202,283				—				204,912
		W	1,313,009				662,540				131,385				615,876

(*) ‘Others’ include MMT, etc.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income

(1) Changes in financial assets at fair value through other comprehensive income for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Acquisitions				Disposals				Valuation				Others				Ending balance
Listed		W	201,201				—				—				(73,636	)			(538	)			127,027
Unlisted			177,969				—				—				(141	)			(430	)			177,398
			379,170				—				—				(73,777	)			(968	)			304,425
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			379,170				—				—				(73,777	)			(968	)			304,425

In millions of won		December 31, 2019
		Beginning balance				Acquisitions				Disposals				Valuation				Others				Ending balance
Listed		W	210,055				—				—				(11,734	)			2,880				201,201
Unlisted			189,439				1,876				(19,315	)			3,715				2,254				177,969
			399,494				1,876				(19,315	)			(8,019	)			5,134				379,170
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			399,494				1,876				(19,315	)			(8,019	)			5,134				379,170

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income, Continued

(2) Financial assets at fair value through other comprehensive income as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				70,186				70,186
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				55				55
SM Korea Line Corp.			18				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				57				57
PAN Ocean Co., Ltd.			1,492				0.00	%			14				4				4
Dongbu Corp.			955				0.00	%			12				7				7
KSP Co., Ltd.			22,539				0.06	%			24				26				26
STX Heavy Industries Co., Ltd.			8,639				0.05	%			213				14				14
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				35,545				35,545
Energy Fuels Inc.			1,711,814				1.91	%			16,819				2,435				2,435
Bunji Corporation Limited			99,763				0.07	%			18,445				—				—
Denison Mines Corp.			58,284,000				10.42	%			84,134				18,591				18,591
Fission 3.0			75,000				0.14	%			—				3				3
Fission Uranium Corp.			700,000				0.16	%			785				103				103
											359,339				127,027				127,027
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
PT. Kedap Sayaaq			671				10.00	%			18,540				—				—
Set Holding (*2)			1,100,220				2.50	%			229,255				166,865				166,865
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,742				2,742
Seobu Highway Solar Co., Ltd.			19,460				2.86	%			195				195				195
Dongbu Highway Solar Co., Ltd.			19,020				4.99	%			190				190				190
Others (*3)											9,956				6,252				6,252
											265,948				177,398				177,398
										W	625,287				304,425				304,425

(*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 three-month periods ended March 31, 2020.

(*3) Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 245 companies including Borneo Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income, Continued

(2) Financial assets at fair value through other comprehensive income as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won		December 31, 2019
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				107,090				107,090
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				80				80
SM Korea Line Corp.			18				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				52				52
PAN Ocean Co., Ltd.			1,492				0.00	%			14				7				7
Dongbu Corp.			955				0.00	%			12				8				8
KSP Co., Ltd.			22,539				0.06	%			24				40				40
STX Heavy Industries Co., Ltd.			8,639				0.03	%			213				26				26
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				62,026				62,026
Energy Fuels Inc.			1,711,814				1.91	%			16,819				3,764				3,764
Bunji Corporation Limited			99,763				0.07	%			18,445				—				—
Denison Mines Corp.			58,284,000				10.42	%			84,134				27,903				27,903
Fission 3.0			75,000				0.14	%			—				5				5
Fission Uranium Corp.			800,000				0.16	%			785				199				199
											359,339				201,202				201,202
Unlisted (*1)
Intellectual Discovery Co., Ltd.			1,000,000				6.00	%			5,000				954				954
Seobu Highway Solar Co., Ltd.			19,460				10.00	%			192				192				192
Dongbu Highway Solar Co., Ltd.			19,020				4.99	%			192				192				192
Muan Sunshine Solar Power Plant Co., Ltd.			298,300				19.00	%			1,491				1,491				1,491
Smart Power Co., Ltd.			133,333				4.14	%			200				200				200
PT. Kedap Sayaaq			671				10.00	%			18,540				—				—
Set Holding (*2)			1,100,220				2.50	%			229,255				166,863				166,863
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,596				2,596
Others (*3)			—								9,235				5,480				5,480
											266,717				177,968				177,968
										W	626,056				379,170				379,170

(*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 year ended December 31, 2019.

(*3) Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 224 companies including Borneo Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

11. Financial assets at amortized cost

Financial assets at amortized cost as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,633				—				—				—				1,633
Others			12,000				—				—				—				12,000
		W	13,633				—				—				—				13,633
Current		W	12,316				—				—				—				12,316
Non-current			1,317				—				—				—				1,317
In millions of won		December 31, 2019
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,609				—				—				—				1,609
Others			12,000				—				—				—				12,000
		W	13,609				—				—				—				13,609
Current		W	12,302				—				—				—				12,302
Non-current			1,307				—				—				—				1,307

12. Derivatives

(1) Derivatives as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Derivative assets
Currency forward		W	6,502				77,555				21				43,931
Currency swap			145,255				614,201				27,597				229,258
Interest rate swap			—				10,146				—				7,592
Others (*1)			—				2,634				—				2,634
		W	151,757				704,536				27,618				283,415
Derivative liabilities
Currency forward		W	2,999				—				7,081				—
Currency swap			82,230				50,326				59,327				45,184
Interest rate swap			997				81,565				451				50,756
Others (*2, 3)			6,205				1,009				6,205				956
		W	92,431				132,900				73,064				96,896

(*1) As described in Note 16, the Group has a right to purchase the shares of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Group, and the amount is the fair value of the stock option.

(*2) As described in Note 46, 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’.

(*3) The Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and other 4 investors, and recognized its evaluated amount as other derivative liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty		Contract date				Maturity date				Contract amounts								Contract exchange rate (in won)
										Pay				Receive
Hana Bank			2014.04.10				2021.07.12			W	55,120				USD 52,000			W	1,060.00
Hana Bank			2014.04.28				2021.07.12				50,784				USD 48,000				1,058.00
Bank of America			2014.04.29				2021.07.12				105,400				USD 100,000				1,054.00
Hana Bank			2014.05.09				2021.07.12				104,600				USD 100,000				1,046.00
Hana Bank			2017.12.22				2021.07.12				105,079				USD 100,000				1,050.79
Korea Development Bank			2017.12.27				2021.07.12				104,849				USD 100,000				1,048.49
Woori Bank			2020.03.10				2020.04.08				5,966				USD 5,000				1,193.14
Hana Bank			2020.03.18				2020.04.09				6,166				USD 5,000				1,233.20
Kookmin Bank			2020.03.19				2020.04.10				6,296				USD 5,000				1,259.10
Hana Bank			2020.03.19				2020.04.10				6,367				USD 5,000				1,273.30
Hana Bank			2020.03.19				2020.04.10				3,823				USD 3,000				1,274.30
Hana Bank			2020.03.20				2020.04.13				6,353				USD 5,000				1,270.55
Hana Bank			2020.03.20				2020.04.13				6,323				USD 5,000				1,264.55
CCB			2020.03.20				2020.04.16				6,270				USD 5,000				1,254.00
Morgan Stanley			2020.03.20				2020.04.17				6,237				USD 5,000				1,247.30
Woori Bank			2020.03.20				2020.04.22				6,206				USD 5,000				1,241.20
Kookmin Bank			2020.03.23				2020.04.20				3,792				USD 3,000				1,264.00
Hana Bank			2020.03.27				2020.04.24				6,126				USD 5,000				1,225.15
Korea Development Bank			2020.03.31				2020.04.27				6,096				USD 5,000				1,219.20
MUFG			2020.03.11				2020.04.02				2,385				USD 2,000				1,192.55
Korea Development Bank			2020.03.20				2020.04.06				2,519				USD 2,000				1,259.60
Korea Development Bank			2020.03.24				2020.04.06				1,254				USD 1,000				1,254.00
Korea Development Bank			2020.03.24				2020.04.02				1,254				USD 1,000				1,254.35
Korea Development Bank			2020.03.25				2020.04.13				9,841				USD 8,000				1,230.10
Korea Development Bank			2020.03.26				2020.04.13				4,909				USD 4,000				1,227.25
Hana Bank			2020.03.26				2020.04.13				4,908				USD 4,000				1,227.00
Hana Bank			2020.03.27				2020.04.13				8,484				USD 7,000				1,211.95
HSBC			2020.03.05				2020.04.09				5,315				USD 4,500				1,181.00
Credit Agricole			2020.03.10				2020.04.13				8,357				USD 7,000				1,193.90
Mizuho Bank			2020.03.25				2020.04.20				7,352				USD 6,000				1,225.30
HSBC			2020.03.27				2020.04.07				6,034				USD 5,000				1,206.70
Nonghyup Bank			2020.03.27				2020.04.10				12,087				USD 10,000				1,208.70
Mizuho Bank			2020.03.27				2020.04.17				6,032				USD 5,000				1,206.30
Nonghyup Bank			2020.03.31				2020.04.24				6,083				USD 5,000				1,216.60
Mizuho Bank			2020.03.31				2020.04.24				6,080				USD 5,000				1,215.90
HSBC			2020.03.31				2020.04.24				6,076				USD 5,000				1,215.15
HSBC			2019.12.13				2020.09.10				46,580				USD 40,000				1,164.50
Nova Scotia			2019.12.13				2020.09.10				34,959				USD 30,000				1,165.30
Nova Scotia			2019.12.16				2020.12.03				11,657				USD 10,000				1,165.70
Nonghyup Bank			2019.12.16				2020.12.03				23,324				USD 20,000				1,166.20
Hana Bank			2020.03.17				2020.04.06				9,916				USD 8,000				1,239.45
Hana Bank			2020.03.19				2020.04.13				7,697				USD 6,000				1,282.75
Mizuho Bank			2020.03.24				2020.04.13				11,289				USD 9,000				1,254.35
Suhyup Bank			2020.03.25				2020.04.23				9,808				USD 8,000				1,226.00

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty		Contract date				Maturity date				Contract amounts								Contract exchange rate (in won)
										Pay				Receive
Hana Bank			2020.03.26				2020.04.23			W	8,569				USD     7,000			W	1,224.20
Mizuho Bank			2020.03.26				2020.04.23				6,125				USD 5,000				1,225.00
Nova Scotia			2020.03.27				2020.04.13				6,108				USD 5,000				1,221.50
BNP Paribas			2020.03.27				2020.04.06				7,288				USD 6,000				1,214.70
Hana Bank			2020.03.27				2020.04.06				7,289				USD 6,000				1,214.80
Standard Chartered			2020.03.03				2020.04.06				2,642				USD 2,220				1,190.25
Shinhan Bank			2020.03.06				2020.04.06				7,147				USD 6,000				1,191.22
Nova Scotia			2020.03.06				2020.04.10				3,569				USD 3,000				1,189.80
Nova Scotia			2020.03.06				2020.04.10				3,564				USD 3,000				1,187.90
Woori Bank			2020.03.19				2020.04.16				490				USD 380				1,288.30
Woori Bank			2020.03.19				2020.04.10				3,452				USD 2,700				1,278.60
Woori Bank			2020.03.25				2020.04.20				5,097				USD 4,150				1,228.20
Nova Scotia			2020.03.26				2020.04.20				5,522				USD 4,500				1,227.20
Hana Bank			2019.07.31				2020.07.14				4,993				USD 4,257				1,173.00

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty						Contract amounts								Contract interest rate				Contract exchange rate (in won, USD)
		Contract year				Pay				Receive				Pay		Receive
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
Citibank			2012~2022				112,930				USD 100,000			2.79%		3.00%			1,129.30
JP Morgan			2012~2022				112,930				USD 100,000			2.79%		3.00%			1,129.30
Bank of America			2012~2022				112,930				USD 100,000			2.79%		3.00%			1,129.30
Shinhan Bank			2016~2022				112,930				USD 100,000			2.79%		3.00%			1,129.30
HSBC			2012~2022				111,770				USD 100,000			2.89%		3.00%			1,117.70
Hana Bank			2012~2022				111,770				USD 100,000			2.87%		3.00%			1,117.70
Standard Chartered			2012~2022				111,770				USD 100,000			2.89%		3.00%			1,117.70
Deutsche Bank			2012~2022				55,885				USD 50,000			2.79%		3.00%			1,117.70
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
HSBC			2019~2024				USD   205,500				AUD 300,000			3M Libor + 0.78%		3M BBSW + 0.97%			USD 0.69

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
						Contract amounts								Contract interest rate				Contract exchange rate (in won, USD)
Counterparty		Contract year				Pay				Receive				Pay		Receive
HSBC			2014~2020			W	99,901				AUD 100,000			3.52%		5.75%		W	999.01
HSBC			2014~2020				100,482				AUD 100,000			3.48%		5.75%			1,004.82
Standard Chartered			2013~2020				USD 117,250				AUD 125,000			3M Libor + 1.25%		5.75%			USD 0.94
Standard Chartered			2014~2020				126,032				USD 117,250			3.55%		3M Libor + 1.25%			1,074.90
Korea Development Bank			2017~2020				114,580				USD 100,000			1.75%		2.38%			1,145.80
Hana Bank			2017~2020				114,580				USD 100,000			1.75%		2.38%			1,145.80
Export-import bank of Korea			2017~2020				114,580				USD 100,000			1.75%		2.38%			1,145.80
Kookmin Bank			2020~2025				118,780				USD 100,000			1.29%		2.13%			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			2016~2021				121,000				USD 100,000			2.15%		2.50%			1,210.00
Morgan Stanley			2016~2021				121,000				USD 100,000			3M Libor + 2.10%		2.50%			1,210.00
BNP Paribas			2016~2021				121,000				USD 100,000			3M Libor + 2.10%		2.50%			1,210.00
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
Korea Development Bank			2019~2022				112,650				USD 100,000			1.80%		3.38%			1,126.50
Kookmin Bank			2019~2022				112,650				USD 100,000			1.80%		3.38%			1,126.50
Woori Bank			2019~2022				112,650				USD 100,000			1.80%		3.38%			1,126.50
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			2019~2022				117,340				USD 100,000			1.06%		2.38%			1,173.40
Hana Bank			2019~2022				117,340				USD 100,000			1.06%		2.38%			1,173.40
Kookmin Bank			2019~2022				117,340				USD 100,000			1.06%		2.38%			1,173.40
Hana Bank			2018~2021				212,960				USD 200,000			2.10%		3.00%			1,064.80
Korea Development Bank			2018~2021				212,960				USD 200,000			2.10%		3.00%			1,064.80
Credit Agricole			2014~2020				110,680				USD 100,000			2.29%		2.50%			1,106.80
Societe Generale			2014~2020				55,340				USD 50,000			2.16%		2.50%			1,106.80
Hana Bank			2014~2020				55,340				USD 50,000			2.16%		2.50%			1,106.80
Hana Bank			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
Standard Chartered			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
HSBC			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
Nomura			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
BNP Paribas			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
HSBC			2014~2020				55,340				USD 50,000			2.21%		2.50%			1,106.80
Hana Bank			2017~2022				226,600				USD 200,000			1.94%		2.63%			1,133.00
Korea Development Bank			2017~2022				113,300				USD 100,000			1.94%		2.63%			1,133.00
Nomura			2017~2022				113,300				USD 100,000			1.95%		2.63%			1,133.00
Woori Bank			2017~2022				56,650				USD 50,000			1.95%		2.63%			1,133.00
Kookmin Bank			2017~2022				56,650				USD 50,000			1.95%		2.63%			1,133.00
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

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of USD

Contract interest rate per annum

Counterparty

Contract year

Contract amount

Pay

Receive

Hana Bank

2017~2022

W

100,000

2.01%

3M CD + 0.24%

Hana Bank

2017~2022

100,000

2.06%

3M CD + 0.27%

Nomura (*1)

2017~2037

30,000

2.05%

3.08%

Hana Bank

2017~2021

200,000

2.45%

3M CD + 0.32%

Nomura (*2)

2018~2038

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%

Societe Generale

2017~2022

200,000

3M Libor + 3.44%

3.77%

Nomura

2017~2027

52,457

3M Libor + 2.25%

2.60%

Nomura

2017~2027

59,423

3M Libor + 2.27%

2.62%

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

(*1) 2.05% 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 exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from September 18, 2022.

(*2) 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 exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from June 15, 2023.

(6) Interest rate swap contracts which are designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of USD

Contract interest rate per annum

Counterparty

Contract year

Contract amount

Pay

Receive

BNP Paribas

2009~2027

USD 92,120

4.16%

6M USD Libor

KFW

2009~2027

USD 92,120

4.16%

6M USD Libor

Export-import bank of Korea

2016~2036

USD 80,514

3.00%

6M USD Libor

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(7) Gains and losses on valuation and transaction of derivatives for the three-month periods ended March 31, 2020 and 2019 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) (*)
		March 31, 2020				March 31, 2019				March 31, 2020				March 31, 2019				March 31, 2020				March 31, 2019
Currency forward		W	38,922				15,049				13,537				5,097				—				—
Currency swap			455,934				147,428				15,690				20,620				18,487				21,592
Interest rate swap			(16,876	)			(6,900	)			(1,311	)			(235	)			13,856				(6,958	)
Other derivatives			(985	)			—				—				—				—				—
		W	476,995				155,577				27,916				25,482				32,343				14,634

(*) For the three-month period ended March 31, 2020, the net gain on valuation of derivatives applying cash flow hedge accounting of W24,017 million, net of tax, is included in other comprehensive income (loss).

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

13. Other Financial Assets

(1) Other financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Loans		W	73,390				739,459				64,111				725,755
Less: allowance for doubtful accounts			(8	)			(15,087	)			(31	)			(15,063	)
Less: present value discount			(987	)			(34,526	)			(847	)			(35,218	)
Long-term / short-term financial instruments			1,915,475				622,291				1,351,971				608,256
		W	1,987,870				1,312,137				1,415,204				1,283,730

(2) Loans as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Face value				Allowance for doubtful accounts				Present value discount				Book value
Short-term loans
Loans for tuition		W	36,939				—				(987	)			35,952
Loans for housing			18,646				—				—				18,646
Other loans			17,805				(8	)			—				17,797
			73,390				(8	)			(987	)			72,395
Long-term loans
Loans for tuition			427,611				—				(34,526	)			393,085
Loans for housing			211,721				—				—				211,721
Loans for related parties			83,476				(4,930	)			—				78,546
Other loans			16,651				(10,157	)			—				6,494
			739,459				(15,087	)			(34,526	)			689,846
		W	812,849				(15,095	)			(35,513	)			762,241

In millions of won		December 31, 2019
		Face value				Allowance for doubtful accounts				Present value discount				Book value
Short-term loans
Loans for tuition		W	33,636				—				(847	)			32,789
Loans for housing			17,113				—				—				17,113
Other loans			13,362				(31	)			—				13,331
			64,111				(31	)			(847	)			63,233
Long-term loans
Loans for tuition			419,905				—				(35,197	)			384,708
Loans for housing			199,454				—				—				199,454
Loans for related parties			89,132				(4,930	)			—				84,202
Other loans			17,264				(10,133	)			(21	)			7,110
			725,755				(15,063	)			(35,218	)			675,474
		W	789,866				(15,094	)			(36,065	)			738,707

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	15,094				4,952
Bad debts expense			1				10,142
Ending balance		W	15,095				15,094

(4) Long-term and short-term financial instruments as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Time deposits		W	1,507,670				271,850				1,034,971				257,857
CP			109,478				—				40,000				—
CD			5,000				—				15,000				—
RP			70,104				—				40,000				—
Others			223,223				350,441				222,000				350,399
		W	1,915,475				622,291				1,351,971				608,256

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

14. Inventories

Inventories as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,692,985				(1,430	)			3,691,555
Merchandises			375				—				375
Work-in-progress			170,568				—				170,568
Finished goods			25,966				—				25,966
Supplies			2,120,230				(4,593	)			2,115,637
Inventories-in-transit			851,061				—				851,061
Other inventories			15,037				—				15,037
		W	6,876,222				(6,023	)			6,870,199

In millions of won		December 31, 2019
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,790,443				(1,430	)			3,789,013
Merchandises			340				—				340
Work-in-progress			165,073				—				165,073
Finished goods			58,280				—				58,280
Supplies			2,121,363				(4,369	)			2,116,994
Inventories-in-transit			906,267				—				906,267
Other inventories			14,733				—				14,733
		W	7,056,499				(5,799	)			7,050,700

The reversal of the allowance for loss on inventory valuation due to increase in the net realizable value of inventory deducted from cost of sales for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 were W580 million and W4,872 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 were W804 million and W3,127 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

15. Non-Financial Assets

Non-financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advance payment		W	150,749				54,921				147,784				2,694
Prepaid expenses			269,113				154,219				308,017				84,421
Others (*1)			803,157				48,360				750,576				79,814
		W	1,223,019				257,500				1,206,377				166,929

(*1) Details of others as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Greenhouse gas emissions rights		W	557,298				—				437,562				—
Other quick assets (*2)			245,859				48,360				313,014				79,814
		W	803,157				48,360				750,576				79,814

(*2) During the year ended December 31, 2019, the Group converted its loans with Orano Expansion into equity. The Group recognized an impairment loss of W49,201 million as it was determined that there is objective evidence of impairment related to the rights of equity interest in Orano Expansion.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						March 31, 2020				December 31, 2019
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)		Architectural engineering 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	%
KOREA Imouraren Uranium Investment Corp.		Holding company		FRANCE			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		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 Philippines Corporation		Holding company		PHILIPPINES			100.00	%			100.00	%
EWP America Inc.		Holding company		USA			100.00	%			100.00	%
EWP Renewable Corporation		Holding company		USA			100.00	%			100.00	%
DG Fairhaven Power, LLC		Power generation		USA			100.00	%			100.00	%
DG Whitefield, LLC		Power generation		USA			100.00	%			100.00	%
Springfield Power, LLC		Power generation		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	%			100.00	%
KOSEP USA, INC.		Power generation		USA			100.00	%			100.00	%
PT. EWP Indonesia		Holding company		INDONESIA			99.96	%			99.96	%

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						March 31, 2020				December 31, 2019
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	%
KOSEP Material Co., Ltd.		Recycling fly ashes		KOREA			86.22	%			86.22	%
Commerce and Industry Energy Co., Ltd. (*4)		Power generation		KOREA			85.00	%			85.00	%
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	%
HeeMang 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.		Operation of utility plant		KOREA			50.00	%			50.00	%
VI Carbon Professional Private Special Asset Investment Trust 1		Holding company		KOREA			96.67	%			96.67	%
Chitose Solar Power Plant LLC		Power generation		JAPAN			80.10	%			80.10	%
KEPCO Energy Solution Co., Ltd.		Energy service		KOREA			100.00	%			100.00	%
Solar School Plant Co., Ltd.		Power generation		KOREA			100.00	%			100.00	%
KOSPO Power Services Limitada		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	%			100.00	%
KEPCO-LG CNS Mangilao Holdings LLC (*5)		Holding company		USA			70.00	%			70.00	%
Mangilao Investment LLC		Holding company		USA			100.00	%			100.00	%
KEPCO-LG CNS Mangilao Solar, LLC		Power generation		USA			100.00	%			100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.		Power generation		KOREA			75.99	%			75.99	%
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	%
PT. Korea Energy Indonesia		Utility plant maintenance		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		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		KOREA			100.00	%			100.00	%
Secutec Co., Ltd.		Security service		KOREA			100.00	%			100.00	%

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						March 31, 2020				December 31, 2019
SE Green Energy Co., Ltd.		Power generation		KOREA			84.80	%			84.80	%
KEPCO Mangilao America LLC		Holding company		USA			100.00	%			100.00	%
Mangilao Intermediate Holdings LLC		Holding company		USA			100.00	%			100.00	%
KEPCO CSC Co., Ltd.		Facility maintenance		KOREA			100.00	%			100.00	%
KOAK Power Limited		Facility maintenance		PAKISTAN			100.00	%			100.00	%
KOMIPO Europe B.V.		Holding company		SWEDEN			100.00	%			100.00	%
Haenanum Energy Fund		Holding company		KOREA			99.64	%			99.64	%
Paju Ecoenergy Co., Ltd.		Power generation		KOREA			89.00	%			89.00	%
Guam Ukudu Power LLC		Power generation		USA			100.00	%			—

(*1) Considering treasury stocks, the effective percentage of ownership is 66.08%.

(*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 through the shareholders’ agreement.

(*3) As of reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited which is November 30.

(*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 Group does not hold a stake, but it is included in subsidiaries because the Group has control over KEPCO-LG CNS Mangilao Holdings LLC with nomination rights among 4 out of 6 board members.

(2) A subsidiary newly included in the consolidation scope during the three-month period ended March 31, 2020 is as follows, and there are no subsidiaries that are excluded from the consolidation scope during the three-month period ended March 31, 2020.

<A subsidiary newly included in the consolidation scope during the three-month period ended March 31, 2020.>

Subsidiary		Reason
Guam Ukudu Power LLC		Newly established

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.		W	60,047,554				34,281,584				2,485,055				189,483
Korea South-East Power Co., Ltd.			11,400,012				6,251,903				1,333,627				142,461
Korea Midland Power Co., Ltd.			12,552,895				8,809,070				1,232,340				73,907
Korea Western Power Co., Ltd.			10,205,970				6,359,865				1,059,445				(5,078	)
Korea Southern Power Co., Ltd.			10,685,335				6,409,393				1,146,052				28,901
Korea East-West Power Co., Ltd.			9,639,539				4,921,251				1,150,197				31,861
KEPCO Engineering & Construction Company, Inc.			689,412				206,825				89,698				5,043
KEPCO Plant Service & Engineering Co., Ltd.			1,366,462				355,371				248,918				23,086
KEPCO Nuclear Fuel Co., Ltd.			783,067				391,680				76,095				(2,934	)
KEPCO KDN Co., Ltd.			600,072				167,651				130,916				6,158
KEPCO International HongKong Ltd.			146,877				1				—				806
KEPCO International Philippines Inc.			131,303				392				—				17,649
KEPCO Gansu International Ltd.			8,713				576				—				—
KEPCO Philippines Holdings Inc.			173,487				5,657				—				1,014
KEPCO Philippines Corporation			6,680				70				—				(87	)
KEPCO Ilijan Corporation			371,952				64,244				21,717				10,827
KEPCO Lebanon SARL			1,923				10,332				—				(12	)
KEPCO Neimenggu International Ltd.			212,021				—				—				(76	)
KEPCO Shanxi International Ltd.			568,748				223,258				—				(2,608	)
KOMIPO Global Pte., Ltd.			284,389				813				—				473
KEPCO Netherlands B.V.			129,206				112				—				(244	)
KOREA Imouraren Uranium Investment Corp.			14,139				143				—				(605	)
KEPCO Australia Pty., Ltd.			356				13				—				19
KOSEP Australia Pty., Ltd.			31,148				3,914				3,286				(529	)
KOMIPO Australia Pty., Ltd.			38,725				3,934				3,286				(276	)
KOWEPO Australia Pty., Ltd.			39,265				4,095				3,286				(529	)
KOSPO Australia Pty., Ltd.			32,700				2,622				3,286				139
KEPCO Middle East Holding Company			99,778				84,736				—				(88	)
Qatrana Electric Power Company			518,930				335,271				5,395				6,247
KHNP Canada Energy, Ltd.			35,046				39				—				(2	)
KEPCO Bylong Australia Pty., Ltd.			38,437				376,180				—				(49,872	)
Korea Waterbury Uranium Limited Partnership			20,147				166				—				(17	)
KEPCO Holdings de Mexico			150				18				—				(9	)
KST Electric Power Company			591,363				473,207				12,070				22,062
KEPCO Energy Service Company			2,030				1,443				1,467				424
KEPCO Netherlands S3 B.V.			54,110				68				—				903
PT. KOMIPO Pembangkitan Jawa Bali			12,042				5,219				4,713				2,124
PT. Cirebon Power Service			2,067				349				2,143				(199	)
KOWEPO International Corporation			—				11				—				—
KOSPO Jordan LLC			18,509				1,042				1,961				590
EWP Philippines Corporation			1,770				932				—				(6	)
EWP America Inc. (*1)			55,199				2,709				3,267				(1,740	)
KNF Canada Energy Limited			1,853				25				—				(11	)
EWP Barbados 1 SRL			317,326				777				746				22,173
Gyeonggi Green Energy Co., Ltd.			226,237				191,861				7,096				(970	)
PT. Tanggamus Electric Power			239,669				212,354				1,111				(5,796	)
Gyeongju Wind Power Co., Ltd.			112,866				76,036				5,001				1,843
KOMIPO America Inc.			9,362				626				—				(576	)
KOSEP USA, Inc.			1				5,435				—				—
PT. EWP Indonesia			32,125				598				—				2,366
KEPCO Netherlands J3 B.V.			126,722				95				—				(17	)
Korea Offshore Wind Power Co., Ltd.			333,352				166,018				6,092				365
Global One Pioneer B.V.			159				57				—				(11	)
Global Energy Pioneer B.V.			337				66				—				(12	)
Mira Power Limited			389,700				299,076				—				(2,012	)
KOSEP Material Co., Ltd.			2,457				1,214				531				(344	)
Commerce and Industry Energy Co., Ltd.			88,667				41,100				7,462				300
KEPCO KPS Philippines Corp.			5,611				1,945				2,503				809

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
March 31, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
KOSPO Chile SpA		W	143,445				53,141				—				(130	)
PT. KOWEPO Sumsel Operation And Maintenance Services			107				236				—				(16	)
HeeMang Sunlight Power Co., Ltd.			11,891				8,890				74				(64	)
Fujeij Wind Power Company			239,849				221,327				—				5,336
KOSPO Youngnam Power Co., Ltd.			417,951				321,350				88,060				5,332
VI Carbon Professional Private Special Asset Investment Trust 1			2,997				4				—				(1	)
Chitose Solar Power Plant LLC			143,979				128,313				3,538				148
KEPCO Energy Solution Co., Ltd.			312,305				5,409				895				851
Solar School Plant Co., Ltd.			209,247				3,389				351				398
KOSPO Power Services Limitada			3,278				1,344				2,598				398
Energy New Industry Specialized Investment Private Investment Trust (*2)			216,849				1,798				627				(709	)
KOEN Bylong Pty., Ltd.			4				40				—				—
KOMIPO Bylong Pty., Ltd.			4				40				—				—
KOWEPO Bylong Pty., Ltd.			4				39				—				—
KOSPO Bylong Pty., Ltd.			3				37				—				—
EWP Bylong Pty., Ltd.			2				36				—				—
KOWEPO Lao International			7,121				416				2,119				1,583
KEPCO US Inc.			18,173				—				—				—
KEPCO Alamosa LLC			35,280				160				32				(96	)
KEPCO Solar of Alamosa, LLC			68,953				52,498				1,958				(301	)
KEPCO-LG CNS Mangilao Holdings LLC			28,974				32,314				—				(324	)
Mangilao Investment LLC			42,209				—				—				—
KEPCO-LG CNS Mangilao Solar, LLC			41,447				4				—				(119	)
Jeju Hanlim Offshore Wind Co., Ltd.			13,493				473				—				(751	)
PT. Siborpa Eco Power			12,034				12				—				(121	)
PT. Korea Energy Indonesia			1,499				114				617				69
KOLAT SpA			28,918				326				100				4
KEPCO California, LLC			47,236				1,935				—				(245	)
KEPCO Mojave Holdings, LLC			107,680				72,579				—				(1,063	)
Incheon Fuel Cell Co., Ltd.			138,224				116,501				—				(472	)
KOEN Service Co., Ltd.			5,221				4,416				7,888				292
KOMIPO Service Co., Ltd.			3,280				2,611				6,948				(54	)
KOWEPO Service Co., Ltd.			4,403				3,203				7,241				275
KOSPO Service Co., Ltd.			3,873				2,846				6,003				325
EWP Service Co., Ltd.			3,904				3,242				5,693				152
PT. KOMIPO Energy Indonesia			2,198				313				310				(348	)
KNF Partners Co., Ltd.			1,206				800				1,135				(81	)
KOSPO USA Inc.			5,597				131				—				(611	)
Nambu USA LLC			260				1				—				1
Tamra Offshore Wind Power Co., Ltd.			157,739				122,854				4,156				686
KEPCO MCS Co., Ltd.			54,100				39,546				71,173				10,196
KEPCO FMS Co., Ltd.			4,711				8,729				15,905				(4,717	)
Firstkeepers Co., Ltd.			9,501				7,896				15,538				2,853
Secutec Co., Ltd.			7,336				4,925				13,975				2,319
SE Green Energy Co., Ltd.			132,813				105,675				—				2
KEPCO Mangilao America LLC			1,451				—				—				(4	)
Mangilao Intermediate Holdings LLC			40,170				13,573				—				(186	)
KEPCO CSC Co., Ltd.			2,129				2,606				5,840				(1,263	)
KOAK Power Limited			15,367				9				—				(104	)
KOMIPO Europe B.V.			7,533				117				65				(19	)
Haenanum Energy Fund			28,159				34				—				24
Paju Ecoenergy Co., Ltd.			53,839				—				—				—
Guam Ukudu Power LLC			713				—				—				—

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

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

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

In millions of won
December 31, 2019
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the year
Korea Hydro & Nuclear Power Co., Ltd.		W	59,570,219				33,917,275				8,969,072				306,007
Korea South-East Power Co., Ltd.			10,938,358				5,866,642				5,385,387				41,006
Korea Midland Power Co., Ltd.			12,684,828				8,977,766				4,479,707				(28,449	)
Korea Western Power Co., Ltd.			10,514,438				6,637,451				4,448,992				(46,061	)
Korea Southern Power Co., Ltd.			10,884,799				6,608,301				5,084,907				(41,342	)
Korea East-West Power Co., Ltd.			9,724,311				5,022,921				4,855,964				56,698
KEPCO Engineering & Construction Company, Inc.			735,207				242,994				448,635				26,398
KEPCO Plant Service & Engineering Co., Ltd.			1,356,983				294,757				1,244,613				157,737
KEPCO Nuclear Fuel Co., Ltd.			831,604				429,799				309,055				24,618
KEPCO KDN Co., Ltd.			604,458				159,807				625,567				42,205
KEPCO International HongKong Ltd.			138,942				633				—				3,330
KEPCO International Philippines Inc.			107,224				371				—				67,991
KEPCO Gansu International Ltd.			10,448				545				—				(20	)
KEPCO Philippines Holdings Inc.			200,503				6,656				—				66,200
KEPCO Philippines Corporation			6,706				332				—				(52	)
KEPCO Ilijan Corporation			371,377				56,156				95,072				40,818
KEPCO Lebanon SARL			1,835				9,786				—				255
KEPCO Neimenggu International Ltd.			200,858				—				—				(354	)
KEPCO Shanxi International Ltd.			538,604				208,895				—				151
KOMIPO Global Pte., Ltd.			269,302				463				—				10,400
KEPCO Netherlands B.V.			122,577				101				—				948
KOREA Imouraren Uranium Investment Corp.			14,173				111				—				(49,716	)
KEPCO Australia Pty., Ltd.			364				14				—				(395,914	)
KOSEP Australia Pty., Ltd.			32,782				2,911				15,514				3,935
KOMIPO Australia Pty., Ltd.			40,898				2,909				15,514				3,766
KOWEPO Australia Pty., Ltd.			44,182				5,772				15,514				2,761
KOSPO Australia Pty., Ltd.			37,254				5,012				15,514				2,638
KEPCO Middle East Holding Company			102,164				87,834				—				5,934
Qatrana Electric Power Company			490,723				322,857				20,773				21,807
KHNP Canada Energy, Ltd.			44,639				43				—				(10	)
KEPCO Bylong Australia Pty., Ltd.			45,207				355,163				—				(220,909	)
Korea Waterbury Uranium Limited Partnership			20,717				167				—				(77	)
KEPCO Holdings de Mexico			187				25				—				(14	)
KST Electric Power Company			539,952				449,459				55,783				(20,797	)
KEPCO Energy Service Company			2,262				1,995				5,984				(481	)
KEPCO Netherlands S3 B.V.			50,352				49				—				2,637
PT. KOMIPO Pembangkitan Jawa Bali			12,391				5,719				18,722				4,312
PT. Cirebon Power Service			2,089				313				8,049				406
KOWEPO International Corporation			—				10				—				(2	)
KOSPO Jordan, LLC			17,489				1,521				10,878				2,634
EWP Philippines Corporation			1,691				888				—				(111	)
EWP America Inc. (*1)			66,622				2,619				21,719				(6,497	)
KNF Canada Energy Limited			1,933				24				—				(48	)
EWP Barbados 1 SRL			279,295				1,031				2,914				2,368
Gyeonggi Green Energy Co., Ltd.			194,425				159,078				13,717				(73,394	)
PT. Tanggamus Electric Power			228,601				195,826				2,256				(4,529	)
Gyeongju Wind Power Co., Ltd.			113,745				75,427				15,548				3,384
KOMIPO America Inc.			9,424				593				118				(1,033	)
KOSEP USA, Inc.			1				5,147				—				(119	)
PT. EWP Indonesia			34,455				5				—				5,124

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the year
KEPCO Netherlands J3 B.V.		W	120,006				74				—				(79	)
Korea Offshore Wind Power Co., Ltd.			284,495				117,527				—				(12,768	)
Global One Pioneer B.V.			180				73				—				(86	)
Global Energy Pioneer B.V.			348				80				—				(90	)
Mira Power Limited			356,111				285,577				—				(971	)
KOSEP Material Co., Ltd.			2,788				1,186				3,357				22
Commerce and Industry Energy Co., Ltd.			90,637				43,985				32,728				(7,532	)
KEPCO KPS Philippines Corp.			5,198				1,341				6,246				2
KOSPO Chile SpA			134,827				49,183				—				(456	)
PT. KOWEPO Sumsel Operation And Maintenance Services			135				262				—				(1,104	)
HeeMang Sunlight Power Co., Ltd.			12,185				8,545				643				75
Fujeij Wind Power Company			218,333				196,964				—				5,515
KOSPO Youngnam Power Co., Ltd.			398,495				307,226				318,338				3,514
VI Carbon Professional Private Special Asset Investment Trust 1			3,002				—				—				12
Chitose Solar Power Plant LLC			121,457				106,254				17,103				5,480
KEPCO Energy Solution Co., Ltd.			308,188				2,142				2,843				2,805
Solar School Plant Co., Ltd.			208,730				3,269				1,962				2,553
KOSPO Power Services Limitada			3,244				1,564				10,013				452
Energy New Industry Specialized Investment Private Investment Trust (*2)			100,116				17,359				2,418				(7,735	)
KOEN Bylong Pty., Ltd.			—				39				—				(14	)
KOMIPO Bylong Pty., Ltd.			4				43				—				(14	)
KOWEPO Bylong Pty., Ltd.			4				40				—				(12	)
KOSPO Bylong Pty., Ltd.			4				40				—				(12	)
EWP Bylong Pty., Ltd.			4				40				—				(12	)
KOWEPO Lao International			5,430				575				4,308				1,584
KEPCO US Inc.			17,231				—				—				—
KEPCO Alamosa LLC			33,515				183				145				(311	)
KEPCO Solar of Alamosa, LLC			65,468				50,348				8,739				(1,902	)
KEPCO-LG CNS Mangilao Holdings LLC			27,439				30,287				—				(1,240	)
Mangilao Investment LLC			39,972				—				—				—
KEPCO-LG CNS Mangilao Solar, LLC			39,373				11				—				(524	)
Jeju Hanlim Offshore Wind Co., Ltd.			14,328				558				—				(2,459	)
PT. Siborpa Eco Power			11,574				71				—				(1,165	)
PT. Korea Energy Indonesia			1,592				121				2,462				323
KOLAT SpA			31,178				167				656				(296	)
KEPCO California, LLC			44,074				936				358				(513	)
KEPCO Mojave Holdings, LLC			103,815				69,544				—				(4,215	)
Incheon Fuel Cell Co., Ltd.			22,669				475				—				(1,010	)
KOEN Service Co., Ltd.			5,347				4,252				25,890				543
KOMIPO Service Co., Ltd.			3,327				2,622				24,556				146
KOWEPO Service Co., Ltd.			4,228				3,302				23,982				389
KOSPO Service Co., Ltd.			3,493				2,788				18,741				135
EWP Service Co., Ltd.			4,786				4,064				20,837				162
PT. KOMIPO Energy Indonesia			2,647				196				1,392				79
KNF Partners Co., Ltd.			1,378				890				3,383				187
KOSPO USA Inc.			5,896				127				—				(1,408	)
Nambu USA LLC			245				1				—				245
Tamra Offshore Wind Power Co., Ltd.			156,708				121,724				19,670				1,154
KEPCO MCS Co., Ltd.			26,510				22,151				129,393				3,408
KEPCO FMS Co., Ltd.			11,336				10,638				37,627				198
Firstkeepers Co., Ltd.			1,552				2,800				121				(2,239	)
Secutec Co., Ltd.			322				229				—				(597	)
SE Green Energy Co., Ltd.			132,727				105,619				—				816

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the year
KEPCO Mangilao America LLC		W	—				—				—				—
Mangilao Intermediate Holdings LLC			13,220				12,774				—				(66	)
KEPCO CSC Co., Ltd.			837				51				—				(14	)
KOAK Power Limited			15,930				—				—				—
KOMIPO Europe B.V.			7,362				—				—				(286	)
Haenanum Energy Fund			28,101				1				—				1
Paju Ecoenergy Co., Ltd.			53,839				—				—				—

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

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

(4) Significant restrictions on the Group’s power over the subsidiaries as of March 31, 2020 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.
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. Shares cannot be wholly or partially transferred without prior written consent of 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.
Gyeongju Wind Power Co., Ltd.		Dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Korea Offshore Wind Power Co., Ltd.		Principals and interest payments on subordinated loans or payments for dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained.

(5) As of March 31, 2020, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:

Company		Group’s unexercised entitlements
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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(6) Details of non-controlling interest prior to intra-group eliminations as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
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	192,816				764,606				218,064				951,281				2,126,767
Non-current assets			179,136				601,856				471,348				3,466,596				4,718,936
Current liabilities			(17,685	)			(314,823	)			(181,155	)			(427,475	)			(941,138	)
Non-current liabilities			(46,559	)			(40,548	)			(25,670	)			(2,434,103	)			(2,546,880	)
Net assets			307,708				1,011,091				482,587				1,556,299				3,357,685
Book value of non-controlling interest			150,777				495,435				163,694				574,257				1,384,163
Sales			21,717				248,918				89,698				223,431				583,764
Profit for the period			10,827				23,086				5,043				26,639				65,595
Profit for the period attributable to non-controlling interest			5,305				11,312				1,710				12,302				30,629
Cash flows from operating activities			19,319				45,193				(7,793	)			75,342				132,061
Cash flows from investing activities			2,454				(37,737	)			(33,088	)			(331,439	)			(399,810	)
Cash flows from financing activities before dividends to non-controlling interest			(17,264	)			(1,155	)			(376	)			255,608				236,813
Dividends to non-controlling interest			(17,373	)			—				—				(3,346	)			(20,719	)
Effect of exchange rate fluctuation			2,384				(354	)			79				4,438				6,547
Net increase (decrease) of cash and cash equivalents			(10,480	)			5,947				(41,178	)			603				(45,108	)

In millions of won
December 31, 2019
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	173,931				779,764				257,593				864,596				2,075,884
Non-current assets			197,446				577,219				477,614				3,169,317				4,421,596
Current liabilities			(11,990	)			(247,737	)			(223,522	)			(450,311	)			(933,560	)
Non-current liabilities			(44,166	)			(47,020	)			(19,472	)			(2,193,501	)			(2,304,159	)
Net assets			315,221				1,062,226				492,213				1,390,101				3,259,761
Book value of non-controlling interest			154,458				520,491				166,959				551,423				1,393,331
Sales			95,072				1,244,613				448,635				855,023				2,643,343
Profit for the year			40,818				157,737				26,398				(48,963	)			175,990
Profit for the year attributable to non-controlling interest			20,001				77,291				8,954				(24,264	)			81,982
Cash flows from operating activities			101,707				164,373				27,081				219,450				512,611
Cash flows from investing activities			4,458				(89,159	)			47,219				(356,434	)			(393,916	)
Cash flows from financing activities before dividends to non-controlling interest			(68,678	)			(44,332	)			(34,632	)			223,233				75,591
Dividends to non-controlling interest			(48,750	)			(39,466	)			(1,807	)			(9,233	)			(99,256	)
Effect of exchange rate fluctuation			2,111				(593	)			(14	)			2,501				4,005
Net increase (decrease) of cash and cash equivalents			(9,152	)			(9,177	)			37,847				79,517				99,035

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

(i) Details of goodwill as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Acquisition cost		W	97,977				97,977
Accumulated impairment			—				—
Carrying book value		W	97,977				97,977

(ii) Changes in goodwill for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning				Increase				Decrease				Ending
Acquisition cost		W	97,977				—				—				97,977
Accumulated impairment			—				—				—				—
Carrying book value		W	97,977				—				—				97,977

In millions of won		December 31, 2019
		Beginning				Increase				Decrease				Ending
Acquisition cost		W	2,582				95,395				—				97,977
Accumulated impairment			—				—				—				—
Carrying book value		W	2,582				95,395				—				97,977

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
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				1,774,633
Gemeng International Energy Co., Ltd.		Power generation			CHINA				34.00%				413,153				687,990
PT. Bayan Resources TBK		Resources development			INDONESIA				20.00%				615,860				432,522
Korea Power Exchange (*2)		Management of power market and others			KOREA				100.00%				127,839				267,619
GS Donghae Electric Power Co., Ltd.		Power generation			KOREA				34.00%				204,000				250,335
Hyundai Green Power Co., Ltd.		Power generation			KOREA				29.00%				88,885				123,434
PT. Cirebon Electric Power		Power generation			INDONESIA				27.50%				40,365				125,354
S-Power Co., Ltd.		Power generation			KOREA				49.00%				132,300				118,140
Dongducheon Dream Power Co., Ltd. (*3)		Power generation			KOREA				33.61%				148,105				84,382
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			LAOS				25.00%				87,426				76,543
Shin Pyeongtaek Power Co., Ltd.		Power generation			KOREA				40.00%				72,000				74,694
SPC Power Corporation		Power generation			PHILIPPINES				38.00%				20,635				74,991
Korea Electric Power Corporation Fund (*4)		Developing electric enterprises			KOREA				98.09%				51,500				40,438
YTN Co., Ltd.		Broadcasting			KOREA				21.43%				59,000				39,369
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant			NEPAL				60.35%				50,268				48,055
PT. Wampu Electric Power		Power generation			INDONESIA				46.00%				21,292				31,610
Others (Daeryun Power Co., Ltd. and 54 others)													332,089				142,774
												W	2,559,217				4,392,883
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			JAMAICA				40.00%				301,910				282,862
KEPCO SPC Power Corporation (*6)		Construction and operation of utility plant			PHILIPPINES				75.20%				94,579				240,937
Amman Asia Electric Power Company (*6)		Power generation			JORDAN				60.00%				111,476				191,339
Datang Chifeng Renewable Power Co., Ltd.		Power generation			CHINA				40.00%				121,928				197,949
Rabigh Electricity Company		Power generation			SAUDI ARABIA				40.00%				109,743				102,321
Kelar S.A. (*6)		Power generation			CHILE				65.00%				78,060				79,789
Solar Philippines Calatagan Corporation		Power generation			PHILIPPINES				38.00%				47,903				50,043
RE Barren Ridge 1 Holdings LLC		Power generation			USA				50.00%				28,021				—
RE Holiday Holdings LLC		Power generation			USA				50.00%				42,948				33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			CHINA				40.00%				10,858				43,194
Chun-cheon Energy Co., Ltd.		Power generation			KOREA				29.90%				52,700				32,645
Chile Solar JV SpA		Power generation			CHILE				50.00%				37,689				32,681
PT. Tanjung Power Indonesia		Power generation			INDONESIA				35.00%				26,892				31,511
Shuweihat Asia Power Investment B.V.		Holding company			NETHERLAND				49.00%				44,405				31,688
RE Pioneer Holdings LLC		Power generation			USA				50.00%				27,891				21,654
Others (Daegu Green Power Co., Ltd. and 51 others)													355,440				336,572
													1,492,443				1,708,886
												W	4,051,660				6,101,769

(*1) The effective percentage of ownership is 21.57% considering treasury stocks.

(*2) 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. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

(*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. For this reason, the entity is classified as an associate.

(*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. For this reason, 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
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				1,693,967
Gemeng International Energy Co., Ltd.		Power generation		CHINA			34.00	%			413,153				670,896
PT. Bayan Resources TBK		Resources development		INDONESIA			20.00	%			615,860				445,141
Korea Power Exchange (*2)		Management of power market and others		KOREA			100.00	%			127,839				258,899
GS Donghae Electric Power Co., Ltd.		Power generation		KOREA			34.00	%			204,000				255,983
Hyundai Green Power Co., Ltd.		Power generation		KOREA			29.00	%			88,885				124,253
PT. Cirebon Electric Power		Power generation		INDONESIA			27.50	%			40,365				123,425
S-Power Co., Ltd.		Power generation		KOREA			49.00	%			132,300				115,784
Dongducheon Dream Power Co., Ltd. (*3)		Power generation		KOREA			33.61	%			148,105				76,547
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation		LAOS			25.00	%			87,426				72,935
Shin Pyeongtaek Power Co., Ltd.		Power generation		KOREA			40.00	%			72,000				66,956
SPC Power Corporation		Power generation		PHILIPPINES			38.00	%			20,635				63,583
Korea Electric Power Corporation Fund (*4)		Developing electric enterprises		KOREA			98.09	%			51,500				41,126
YTN Co., Ltd.		Broadcasting		KOREA			21.43	%			59,000				39,747
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant		NEPAL			57.76	%			35,571				31,145
PT. Wampu Electric Power		Power generation		INDONESIA			46.00	%			21,292				29,355
Others (Daeryun Power Co., Ltd. and 49 others)											327,525				142,060
										W	2,539,956				4,251,802
<Joint ventures>
Jamaica Public Service Company Limited		Power generation		JAMAICA			40.00	%			301,910				253,607
KEPCO SPC Power Corporation (*6)		Construction and operation of utility plant		PHILIPPINES			75.20	%			94,579				214,794
Amman Asia Electric Power Company (*6)		Power generation		JORDAN			60.00	%			111,476				192,164
Datang Chifeng Renewable Power Co., Ltd.		Power generation		CHINA			40.00	%			121,928				185,307
Rabigh Electricity Company		Power generation		SAUDI ARABIA			40.00	%			109,743				109,096
Kelar S.A. (*6)		Power generation		CHILE			65.00	%			78,060				70,462
Solar Philippines Calatagan Corporation		Power generation		PHILIPPINES			38.00	%			47,903				48,930
RE Barren Ridge 1 Holdings LLC		Power generation		USA			50.00	%			28,021				42,916
RE Holiday Holdings LLC		Power generation		USA			50.00	%			42,948				42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation		CHINA			40.00	%			10,858				41,024
Chun-cheon Energy Co., Ltd.		Power generation		KOREA			29.90	%			52,700				34,872
Chile Solar JV SpA		Power generation		CHILE			50.00	%			37,689				34,859
PT. Tanjung Power Indonesia		Power generation		INDONESIA			35.00	%			26,892				34,327
Shuweihat Asia Power Investment B.V.		Holding company		NETHERLAND			49.00	%			44,405				18,318
RE Pioneer Holdings LLC		Power generation		USA			50.00	%			27,891				31,156
Others (Daegu Green Power Co., Ltd. and 48 others)											338,693				309,127
											1,475,696				1,663,029
										W	4,015,652				5,914,831

(*1) The effective percentage of ownership is 21.57% considering treasury stocks.

(*2) 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. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

(*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. For this reason, the entity is classified as an associate.

(*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. For this reason, 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(2) The fair value of associates which are actively traded on an open market and have a readily available market value as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Investees		March 31, 2020				December 31, 2019
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		W	27,133				33,089
Korea Gas Corporation			406,350				715,365
YTN Co., Ltd.			13,230				18,450
SPC Power Corporation			121,139				117,230
PT. Bayan Resources TBK			723,067				880,860

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of income (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,693,967				—				—				(7,182	)			107,000				(18,960	)			(192	)			1,774,633
Gemeng International Energy Co., Ltd.			670,894				—				—				—				(9,685	)			26,781				—				687,990
PT. Bayan Resources TBK			445,141				—				—				—				7,425				(20,032	)			(12	)			432,522
Korea Power Exchange			258,899				—				—				—				8,720				—				—				267,619
GS Donghae Electric Power Co., Ltd.			255,983				—				—				(12,898	)			7,250				—				—				250,335
Hyundai Green Power Co., Ltd.			124,253				—				—				(8,889	)			8,070				—				—				123,434
PT. Cirebon Electric Power			123,425				—				—				(4,643	)			553				(771	)			6,790				125,354
S-Power Co., Ltd.			115,784				—				—				—				2,356				—				—				118,140
Dongducheon Dream Power Co., Ltd.			76,547				—				—				—				7,835				—				—				84,382
Xe-Pian Xe-Namnoy Power Co., Ltd.			72,935				—				—				—				1,428				2,180				—				76,543
Shin Pyeongtaek Power Co., Ltd.			66,956				—				—				—				7,738				—				—				74,694
SPC Power Corporation			63,583				—				—				—				8,593				2,789				26				74,991
Korea Electric Power Corporation Fund			41,126				—				—				—				(438	)			(250	)			—				40,438
YTN Co., Ltd.			39,747				—				—				(90	)			(271	)			(14	)			(3	)			39,369
Nepal Water & Energy Development Company Private Limited			31,145				14,697				—				—				(169	)			2,382				—				48,055
PT. Wampu Electric Power			29,355				—				—				—				598				—				1,657				31,610
Others (Daeryun Power Co., Ltd. and 55 others)			142,060				4,565				—				(6,196	)			2,428				(1,192	)			1,109				142,774
		W	4,251,800				19,262				—				(39,898	)			159,431				(7,087	)			9,375				4,392,883

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
March 31, 2020
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of income (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Joint ventures>
Jamaica Public Service Company Limited		W	253,607				—				—				—				14,704				14,551				—				282,862
KEPCO SPC Power Corporation			214,794				—				—				—				14,926				11,346				(129	)			240,937
Amman Asia Electric Power Company			192,164				—				—				—				5,194				(6,019	)			—				191,339
Datang Chifeng Renewable Power Co., Ltd.			185,307				—				—				—				5,121				7,521				—				197,949
Rabigh Electricity Company			109,093				—				—				—				(4,309	)			(2,463	)			—				102,321
Kelar S.A.			70,462				—				—				—				5,683				3,495				149				79,789
Solar Philippines Calatagan Corporation			48,930				—				—				(1,100	)			1,223				990				—				50,043
RE Barren Ridge 1 Holdings LLC			42,916				—				—				—				(4,798	)			(38,118	)			—				—
RE Holiday Holdings LLC			42,070				—				—				—				(1,179	)			(7,190	)			—				33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			41,024				—				—				—				509				1,661				—				43,194
Chun-cheon Energy Co., Ltd.			34,872				—				—				—				(2,227	)			—				—				32,645
Chile Solar JV SpA			34,859				—				—				—				527				(2,705	)			—				32,681
PT. Tanjung Power Indonesia			34,327				—				—				—				2,477				(5,159	)			(134	)			31,511
Shuweihat Asia Power Investment B.V.			18,318				—				—				(468	)			1,055				12,783				—				31,688
RE Pioneer Holdings LLC			31,156				—				—				—				(939	)			(8,563	)			—				21,654
Others (Daegu Green Power Co., Ltd. and 51 others)			309,127				16,746				—				(2,058	)			8,439				3,960				358				336,572
			1,663,026				16,746				—				(3,626	)			46,406				(13,910	)			244				1,708,886
		W	5,914,826				36,008				—				(43,524	)			205,837				(20,997	)			9,619				6,101,769

In millions of won
December 31, 2019
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of income (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,701,848				—				—				(25,704	)			8,511				12,687				(3,375	)			1,693,967
Gemeng International Energy Co., Ltd.			647,010				—				—				(11,468	)			26,300				9,209				(155	)			670,896
PT. Bayan Resources TBK			511,646				—				—				(71,100	)			6,181				(1,586	)			—				445,141
Korea Power Exchange			251,802				—				—				—				10,907				—				(3,810	)			258,899
GS Donghae Electric Power Co., Ltd.			—				—				—				—				—				—				255,983				255,983
Hyundai Green Power Co., Ltd.			127,160				—				—				(8,889	)			5,982				—				—				124,253
PT. Cirebon Electric Power			108,628				—				—				—				11,079				(65	)			3,783				123,425
S-Power Co., Ltd.			114,566				—				—				—				1,218				—				—				115,784
Dongducheon Dream Power Co., Ltd.			76,386				—				—				—				441				—				(280	)			76,547
Xe-Pian Xe-Namnoy Power Co., Ltd.			77,165				3,052				—				—				(10,210	)			2,928				—				72,935
Shin Pyeongtaek Power Co., Ltd.			67,600				—				—				—				(827	)			198				(15	)			66,956
SPC Power Corporation			57,558				—				—				(14,229	)			5,929				14,286				39				63,583
Korea Electric Power Corporation Fund			47,189				—				—				—				(6,931	)			868				—				41,126
YTN Co., Ltd.			40,338				—				—				(180	)			(449	)			5				33				39,747
Nepal Water & Energy Development Company Private Limited			30,961				—				—				—				(854	)			1,038				—				31,145
PT. Wampu Electric Power			31,097				—				—				—				(2,867	)			2				1,123				29,355
Others (Daeryun Power Co., Ltd. and 55 others)			173,866				14,607				—				(4,442	)			(16,992	)			(371	)			(24,608	)			142,060
		W	4,064,820				17,659				—				(136,012	)			37,418				39,199				228,718				4,251,802

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of income (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Joint ventures>
Jamaica Public Service Company Limited		W	239,632				—				—				(4,631	)			10,166				8,440				—				253,607
KEPCO SPC Power Corporation			208,306				—				—				(45,349	)			48,043				3,781				13				214,794
Amman Asia Electric Power Company			177,357				—				—				—				20,648				(5,841	)			—				192,164
Datang Chifeng Renewable Power Co., Ltd.			166,162				—				—				—				16,325				2,820				—				185,307
Rabigh Electricity Company			105,328				—				—				—				4,355				(1,734	)			1,147				109,096
Kelar S.A.			72,824				—				—				—				3,435				(8,416	)			2,619				70,462
Solar Philippines Calatagan Corporation			47,903				—				—				(4,633	)			4,305				1,355				—				48,930
RE Barren Ridge 1 Holdings LLC			41,415				—				—				(1,152	)			4,609				(1,957	)			1				42,916
RE Holiday Holdings LLC			51,094				—				—				—				(6,525	)			(2,500	)			1				42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			39,442				—				—				—				875				707				—				41,024
Chun-cheon Energy Co., Ltd.			42,505				—				—				—				(7,385	)			—				(248	)			34,872
Chile Solar JV SpA			36,865				—				—				—				842				(2,849	)			1				34,859
PT. Tanjung Power Indonesia			7,081				26,146				—				—				5,601				(4,489	)			(12	)			34,327
Shuweihat Asia Power Investment B.V.			27,251				—				—				(2,176	)			5,288				(12,045	)			—				18,318
RE Pioneer Holdings LLC			38,898				—				—				(939	)			(5,507	)			(1,296	)			—				31,156
Others (Daegu Green Power Co., Ltd. and 53 others)			511,462				64,016				(5,359	)			(20,721	)			24,327				1,835				(266,433	)			309,127
			1,813,525				90,162				(5,359	)			(79,601	)			129,402				(22,189	)			(262,911	)			1,663,029
		W	5,878,345				107,821				(5,359	)			(215,613	)			166,820				17,010				(34,193	)			5,914,831

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	39,550,174				31,034,900				7,967,770				537,199
Gemeng International Energy Co., Ltd.			7,223,131				5,199,630				441,661				(11,364	)
PT. Bayan Resources TBK			1,625,816				968,031				389,448				48,002
Korea Power Exchange			318,514				50,895				27,074				7,022
GS Donghae Electric Power Co., Ltd.			2,291,092				1,554,813				191,305				21,322
Hyundai Green Power Co., Ltd.			1,069,729				644,094				119,658				23,384
PT. Cirebon Electric Power			839,106				383,272				52,215				1,480
S-Power Co., Ltd.			816,552				572,204				159,854				5,248
Dongducheon Dream Power Co., Ltd.			1,466,197				1,175,676				182,247				22,774
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,271,744				961,073				31,522				6,099
Shin Pyeongtaek Power Co., Ltd.			966,882				769,813				181,402				22,789
SPC Power Corporation			296,919				24,906				13,171				6,988
Korea Electric Power Corporation Fund			41,515				293				19				(250	)
YTN Co., Ltd.			279,460				95,738				24,548				(1,037	)
Nepal Water & Energy Development Company Private Limited			105,853				28,614				—				(323	)
PT. Wampu Electric Power			229,764				161,046				4,257				1,452
<Joint ventures>
Jamaica Public Service Company Limited			1,756,036				1,082,226				258,746				9,468
KEPCO SPC Power Corporation			343,001				22,605				50,302				19,796
Amman Asia Electric Power Company			852,782				533,884				5,881				8,657
Datang Chifeng Renewable Power Co., Ltd.			791,370				296,498				32,661				13,947
Rabigh Electricity Company			2,643,303				2,224,948				73,043				30,993
Kelar S.A.			680,626				562,208				24,164				2,791
Solar Philippines Calatagan Corporation			104,897				51,349				5,254				3,218
RE Barren Ridge 1 Holdings LLC			136,473				87,348				12,838				(3,901	)
RE Holiday Holdings LLC			324,271				96,029				22,856				(2,711	)
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			197,381				89,397				6,039				1,271
Chun-cheon Energy Co., Ltd.			629,877				519,877				82,048				(7,448	)
Chile Solar JV SpA			69,706				4,343				2,144				1,677
PT. Tanjung Power Indonesia			714,946				624,914				24,849				6,062
Shuweihat Asia Power Investment B.V.			64,683				14				—				(65	)
RE Pioneer Holdings LLC			235,908				71,181				15,055				(3,774	)

(*) The profit for the three-month period ended March 31, 2020 is reduced by the associate entity’s net income attributable to non-controlling interests.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the year
<Associates>
Korea Gas Corporation (*)		W	39,311,855				31,165,334				24,982,640				38,764
Gemeng International Energy Co., Ltd.			6,758,957				4,785,740				2,024,730				95,435
PT. Bayan Resources TBK			1,302,637				622,576				1,707,387				252,855
Korea Power Exchange			315,683				54,926				107,034				8,268
GS Donghae Electric Power Co., Ltd.			2,301,774				1,548,883				688,055				75,842
Hyundai Green Power Co., Ltd.			1,086,738				658,279				507,653				26,222
PT. Cirebon Electric Power			852,457				403,639				277,370				39,581
S-Power Co., Ltd.			805,622				566,025				576,554				2,319
Dongducheon Dream Power Co., Ltd.			1,474,224				1,206,478				689,414				2,849
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,194,125				898,023				6,731				(40,437	)
Shin Pyeongtaek Power Co., Ltd.			981,387				807,107				119,162				11,847
SPC Power Corporation			250,544				22,459				63,218				39,876
Korea Electric Power Corporation Fund			42,162				239				127				(5,430	)
YTN Co., Ltd.			281,699				96,211				127,782				(1,230	)
Nepal Water & Energy Development Company Private Limited			78,309				26,783				—				(1,380	)
PT. Wampu Electric Power			222,266				158,451				18,165				(2,315	)
<Joint ventures>
Jamaica Public Service Company Limited			1,543,049				940,609				1,035,399				32,828
KEPCO SPC Power Corporation			308,274				22,643				187,867				64,152
Amman Asia Electric Power Company			821,997				501,723				23,866				34,424
Datang Chifeng Renewable Power Co., Ltd.			765,598				302,329				122,398				40,371
Rabigh Electricity Company			2,538,719				2,100,347				208,514				1,567
Kelar S.A.			634,633				530,335				86,702				8,867
Solar Philippines Calatagan Corporation			98,577				47,956				18,720				11,331
RE Barren Ridge 1 Holdings LLC			209,850				124,017				10,384				7,630
RE Holiday Holdings LLC			331,862				247,722				18,744				(345	)
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			189,157				86,596				23,910				2,188
Chun-cheon Energy Co., Ltd.			607,823				490,375				313,438				(24,490	)
Chile Solar JV SpA			69,903				186				591				1,686
PT. Tanjung Power Indonesia			654,365				556,287				109,825				16,489
Shuweihat Asia Power Investment B.V.			37,389				5				—				(159	)
RE Pioneer Holdings LLC			246,571				184,258				12,207				(1,912	)

(*) The profit for the year ended December 31, 2019 is reduced by the associate entity’s net income attributable to non-controlling interests.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	8,515,273				21.57	%			1,836,744				—				—				(62,111	)			1,774,633
Gemeng International Energy Co., Ltd.			2,023,500				34.00	%			687,990				—				—				—				687,990
PT. Bayan Resources TBK			657,785				20.00	%			131,558				377,344				—				(76,380	)			432,522
Korea Power Exchange			267,619				100.00	%			267,619				—				—				—				267,619
GS Donghae Electric Power Co., Ltd.			736,279				34.00	%			250,335				—				—				—				250,335
Hyundai Green Power Co., Ltd.			425,635				29.00	%			123,434				—				—				—				123,434
PT. Cirebon Electric Power			455,834				27.50	%			125,354				—				—				—				125,354
S-Power Co., Ltd.			244,349				49.00	%			119,731				—				(1,591	)			—				118,140
Dongducheon Dream Power Co., Ltd.			290,521				34.01	%			98,806				1,757				(3,599	)			(12,582	)			84,382
Xe-Pian Xe-Namnoy Power Co., Ltd.			310,671				25.00	%			77,668				305				(1,141	)			(289	)			76,543
Shin Pyeongtaek Power Co., Ltd.			197,069				40.00	%			78,827				12,800				(16,933	)			—				74,694
SPC Power Corporation			272,013				38.00	%			103,365				—				—				(28,374	)			74,991
Korea Electric Power Corporation Fund			41,222				98.09	%			40,435				—				—				3				40,438
YTN Co., Ltd.			183,721				21.43	%			39,369				—				—				—				39,369
Nepal Water & Energy Development Company Private Limited			77,239				60.96	%			47,083				972				—				—				48,055
PT. Wampu Electric Power			68,717				46.00	%			31,610				—				—				—				31,610
<Joint ventures>
Jamaica Public Service Company Limited			673,810				40.00	%			269,524				42,937				—				(29,599	)			282,862
KEPCO SPC Power Corporation			320,396				75.20	%			240,937				—				—				—				240,937
Amman Asia Electric Power Company			318,898				60.00	%			191,339				—				—				—				191,339
Datang Chifeng Renewable Power Co., Ltd.			494,872				40.00	%			197,949				—				—				—				197,949
Rabigh Electricity Company			418,355				40.00	%			167,342				—				(64,216	)			(805	)			102,321
Kelar S.A.			118,417				65.00	%			76,971				2,818				—				—				79,789
Solar Philippines Calatagan Corporation			53,548				38.00	%			20,348				29,695				—				—				50,043
RE Barren Ridge 1 Holdings LLC			49,125				50.00	%			24,563				—				—				(24,563	)			—
RE Holiday Holdings LLC			228,242				50.00	%			114,121				—				—				(80,420	)			33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			107,984				40.00	%			43,194				—				—				—				43,194
Chun-cheon Energy Co., Ltd.			110,000				29.90	%			32,890				3				—				(248	)			32,645
Chile Solar JV SpA			65,363				50.00	%			32,681				—				—				—				32,681
PT. Tanjung Power Indonesia			90,032				35.00	%			31,511				—				—				—				31,511
Shuweihat Asia Power Investment B.V.			64,669				49.00	%			31,688				—				—				—				31,688
RE Pioneer Holdings LLC			164,727				50.00	%			82,363				—				—				(60,709	)			21,654

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

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	8,146,521				21.57	%			1,757,205				—				—				(63,238	)			1,693,967
Gemeng International Energy Co., Ltd.			1,973,217				34.00	%			670,896				—				—				—				670,896
PT. Bayan Resources TBK			680,061				20.00	%			136,012				385,508				—				(76,379	)			445,141
Korea Power Exchange			260,757				100.00	%			260,757				—				—				(1,858	)			258,899
GS Donghae Electric Power Co., Ltd.			752,891				34.00	%			255,983				—				—				—				255,983
Hyundai Green Power Co., Ltd.			428,459				29.00	%			124,253				—				—				—				124,253
PT. Cirebon Electric Power			448,818				27.50	%			123,425				—				—				—				123,425
S-Power Co., Ltd.			239,597				49.00	%			117,403				—				(1,619	)			—				115,784
Dongducheon Dream Power Co., Ltd.			267,746				34.01	%			91,060				1,757				(3,688	)			(12,582	)			76,547
Xe-Pian Xe-Namnoy Power Co., Ltd.			296,102				25.00	%			74,026				305				(1,106	)			(290	)			72,935
Shin Pyeongtaek Power Co., Ltd.			174,280				40.00	%			69,712				12,800				(15,556	)			—				66,956
SPC Power Corporation			228,085				38.00	%			86,672				—				—				(23,089	)			63,583
Korea Electric Power Corporation Fund			41,923				98.09	%			41,122				—				—				4				41,126
YTN Co., Ltd.			185,488				21.43	%			39,747				—				—				—				39,747
Nepal Water & Energy Development Company Private Limited			51,526				58.59	%			30,173				972				—				—				31,145
PT. Wampu Electric Power			63,815				46.00	%			29,355				—				—				—				29,355
<Joint ventures>
Jamaica Public Service Company Limited			602,440				40.00	%			240,976				(80,161	)			—				92,792				253,607
KEPCO SPC Power Corporation			285,631				75.20	%			214,794				—				—				—				214,794
Amman Asia Electric Power Company			320,274				60.00	%			192,164				—				—				—				192,164
Datang Chifeng Renewable Power Co., Ltd.			463,269				40.00	%			185,307				—				—				—				185,307
Rabigh Electricity Company			438,372				40.00	%			175,349				—				(65,450	)			(803	)			109,096
Kelar S.A.			104,298				65.00	%			67,794				2,668				—				—				70,462
Solar Philippines Calatagan Corporation			50,621				38.00	%			19,236				29,694				—				—				48,930
RE Barren Ridge 1 Holdings LLC			85,833				50.00	%			42,916				—				—				—				42,916
RE Holiday Holdings LLC			84,140				50.00	%			42,070				—				—				—				42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			102,561				40.00	%			41,024				—				—				—				41,024
Chun-cheon Energy Co., Ltd.			117,448				29.90	%			35,117				—				—				(245	)			34,872
Chile Solar JV SpA			69,717				50.00	%			34,859				—				—				—				34,859
PT. Tanjung Power Indonesia			98,078				35.00	%			34,327				—				—				—				34,327
Shuweihat Asia Power Investment B.V.			37,384				49.00	%			18,318				—				—				—				18,318
RE Pioneer Holdings LLC			62,313				50.00	%			31,156				—				—				—				31,156

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

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of March 31, 2020 and December 31, 2019, 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		March 31, 2020								December 31, 2019
		Unrecognized equity interest				Accumulated unrecognized equity interest				Unrecognized equity interest				Accumulated unrecognized equity interest
Hadong Mineral Fiber Co., Ltd.		W	—				2				—				2
Eurasia Energy Holdings			10				196				6				186
Gunsan Bio Energy Co., Ltd.			70				3,362				1,090				3,292
Hyundai Energy Co., Ltd.			(540	)			38,191				12,890				38,731
Nghi Son 2 Power LLC			124,078				226,902				61,165				102,824
Samcheok Eco Materials Co., Ltd.			(6	)			782				(497	)			788
Naepo Green Energy Co., Ltd.			(4,367	)			4,914				9,281				9,281
Barakah One Company			22,887				138,983				116,096				116,096
Pioneer Gas Power Limited			3,195				3,309				114				114
Korea Nuclear Partners Co., Ltd.,			37				37				—				—
RE Barren ridge 1 Holdings LLC			1,059				1,059				—				—
Incheon New Power Co., Ltd.			29				29				—				—

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of March 31, 2020, 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.

(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.

(v) Jeongam Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Jeongam Wind Power Co., Ltd. after the construction of the power plant has been completed, the Group is obligated to acquire those shares at fair value.

(vi) 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 investores 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. 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.

(vii) Taebaek Guinemi Wind Power Co., Ltd.

At the commencement of the operation of the faciliity, the Group has a right to purchase all or part of the shares from the shareholders at fair value.

(viii) 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of March 31, 2020, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(ix) 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. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(x) Chester Solar IV 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. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xi) Chester Solar V 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. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xii) Diego de Almagro Solar 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. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xiii) Laurel 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. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2020 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 is obtained.
Pyeongchang 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. Shares cannot be wholly or partially transferred without prior written consent of financial institutions is obtained.
Daeryun Power Co., Ltd.		Principals 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.
KNH Solar Co., Ltd.		Principal and interest, dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without consent of other shareholders is obtained.
Jeongam Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied and reimbursement to the lender can be restricted depending on the priority of the loans. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Korea Power Engineering Service Co., Ltd.		Shares cannot be wholly or partially transferred without consent of the board of directors is obtained.
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 consent of the stakeholders is obtained.
Daejung Offshore Wind Power Co., Ltd.		Before the commencement of the operation, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Naepo Green Energy Co., Ltd.		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
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 consent of the stakeholders is obtained.
KPGE Inc.		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
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 consent of the stakeholders is obtained.
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 consent of the stakeholders is obtained.
Indeck Niles Asset Management, LLC		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Indeck Niles Development, LLC		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar IV SpA		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar V SpA		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Diego de Almagro Solar Spa		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Laurel SpA		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar I SpA		Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
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 consent of the stakeholders is obtained.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2020 are as follows, continued:

Company		Nature and extent of any significant restrictions
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 supply 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.
Yeonggwangbaeksu Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy supply 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 supply 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 are 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 supply 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 supply 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 written consent of financial institutions is obtained.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	13,872,943				(21,818	)			—				—				13,851,125
Buildings			20,928,979				(60,636	)			(8,515,996	)			(4,962	)			12,347,385
Structures			71,584,055				(186,443	)			(26,239,735	)			(9,633	)			45,148,244
Machinery			90,015,229				(154,530	)			(40,112,613	)			(461,226	)			49,286,860
Ships			2,279				—				(2,103	)			—				176
Vehicles			315,900				(1,736	)			(245,249	)			(116	)			68,799
Equipment			1,740,141				(204	)			(1,383,686	)			(42	)			356,209
Tools			1,104,394				(335	)			(950,685	)			(38	)			153,336
Construction-in-progress			29,529,249				(66,910	)			—				(165,335	)			29,297,004
Right-of-use assets			7,690,138				—				(2,943,473	)			—				4,746,665
Asset retirement costs			11,716,836				—				(4,286,426	)			(146,423	)			7,283,987
Others			13,107,350				—				(10,551,232	)			—				2,556,118
		W	261,607,493				(492,612	)			(95,231,198	)			(787,775	)			165,095,908

In millions of won		December 31, 2019
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	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
		W	258,661,152				(493,328	)			(92,687,798	)			(778,199	)			164,701,827

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Acquisitions				Disposals				Depreciation				Others				Ending balance
Land		W	13,848,063				34				(13,121	)			(6	)			37,973				13,872,943
(Government grants)			(21,817	)			—				—				—				(1	)			(21,818	)
Buildings			12,445,706				90				(2,206	)			(207,984	)			172,415				12,408,021
(Government grants)			(61,920	)			—				—				1,287				(3	)			(60,636	)
Structures			45,178,870				8				(102,121	)			(599,464	)			857,394				45,334,687
(Government grants)			(186,554	)			—				474				2,369				(2,732	)			(186,443	)
Machinery			49,907,300				84,884				(44,557	)			(1,342,794	)			836,557				49,441,390
(Government grants)			(158,907	)			—				126				4,252				(1	)			(154,530	)
Ships			201				—				—				(25	)			—				176
Vehicles			70,585				1,013				(38	)			(8,040	)			7,015				70,535
(Government grants)			(2,275	)			—				—				548				(9	)			(1,736	)
Equipment			374,115				10,767				(6	)			(44,589	)			16,126				356,413
(Government grants)			(241	)			—				—				44				(7	)			(204	)
Tools			164,064				1,644				(1	)			(18,381	)			6,345				153,671
(Government grants)			(403	)			—				—				68				—				(335	)
Construction-in-progress			28,419,470				2,933,690				(163	)			(3,891	)			(1,985,192	)			29,363,914
(Government grants)			(61,211	)			(1,464	)			—				—				(4,235	)			(66,910	)
Right-of-use assets			4,783,573				113,871				—				(148,636	)			(2,143	)			4,746,665
Asset retirement costs			7,374,527				23				—				(205,476	)			114,913				7,283,987
Others			2,628,681				264				(2,435	)			(229,871	)			159,479				2,556,118
		W	164,701,827				3,144,824				(164,048	)			(2,800,589	)			213,894				165,095,908

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won		December 31, 2019
		Beginning balance				Effect of change in accounting policy				Acquisitions				Disposals				Depreciation				Impairment (*1, 4)				Others (*2, 3)				Ending balance
Land		W	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
		W	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 Group 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.

(*3) ‘Others’ includes the amounts reclassified from construction-in-progress to other assets during the prior year relating to assets which were available for use two years before but were considered immaterial.

(*4) The Group recognized impairment loss of W3,819 million related to Wolsong unit 1, Shin-Hanul unit 3 & 4 and reversal of impairment loss of W16,693 million related to Wolsong unit 1.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

19. Investment Properties

(1) Investment properties as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	114,463				—				—				114,463
Buildings			57,356				(11	)			(32,840	)			24,505
		W	171,819				(11	)			(32,840	)			138,968

In millions of won		December 31, 2019
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	129,897				—				—				129,897
Buildings			64,590				(13	)			(35,894	)			28,683
		W	194,487				(13	)			(35,894	)			158,580

(2) Changes in investment properties for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Disposals				Depreciation				Others				Ending balance
Land		W	129,897				(5,528	)			—				(9,906	)			114,463
Buildings			28,696				(1,108	)			(370	)			(2,702	)			24,516
(Government grants)			(13	)			—				—				2				(11	)
		W	158,580				(6,636	)			(370	)			(12,606	)			138,968

In millions of won		December 31, 2019
		Beginning balance				Depreciation				Others				Ending balance
Land		W	139,940				—				(10,043	)			129,897
Buildings			19,669				(5,070	)			14,097				28,696
(Government grants)			(50	)			1				36				(13	)
		W	159,559				(5,069	)			4,090				158,580

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Rental income		W	1,279				2,207
Operating and maintenance expenses related to rental income			(357	)			(244	)
		W	922				1,963

(4) Fair value of investment properties as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Book value				Fair value				Book value				Fair value
Land		W	114,463				188,885				129,897				202,042
Buildings			24,505				33,129				28,683				38,046
		W	138,968				222,014				158,580				240,088

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 by considering fluctuations in the publicly announced individual land price after the KIFRS transition date. (January 1, 2010)

(5) All of the Group’s investment property is held under freehold interests.

20. Construction Contracts

(1) Changes in major contract amount in which revenue is not yet recognized for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won

March 31, 2020

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

2,735,141

238,788

(207,421

)

2,766,508

(*) For the three-month period ended March 31, 2020, the increased balance of contracts from new orders and foreign exchange impact is W260,616 million and the decreased balance of contracts due to changes in scope of construction work is W21,828 million.

In millions of won

December 31, 2019

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

3,620,788

379,269

(1,264,916

)

2,735,141

(*) For the year ended December 31, 2019, the increased balance of contracts from new orders and foreign exchange impact is W390,224 million and the decreased balance of contracts due to changes in scope of construction work is W10,955 million.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

20. Construction Contracts, Continued

(2) Accumulated earned revenue, costs and others related to the Group’s construction contracts as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won

March 31, 2020

Accumulated earned revenue

Accumulated costs

Accumulated profit

Nuclear power plant construction in UAE and others

W

20,850,778

19,431,806

1,418,972

In millions of won

December 31, 2019

Accumulated earned revenue

Accumulated costs

Accumulated profit

Nuclear power plant construction in UAE and others

W

20,971,487

19,566,647

1,404,840

(3) Gross amount due from customers recognized as assets and due to customers recognized as liabilities for contract work as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won

March 31, 2020

December 31, 2019

Assets (*1)

Liabilities (*2)

Assets (*1)

Liabilities (*2)

Nuclear power plant construction in UAE and others

W

54,177

60,298

53,827

73,420

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

(*2) Included in non-financial liabilities in the consolidated statements of financial position.

(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) Changes in estimates of contract revenues and costs related to the Group’s construction services for the three-month period ended March 31, 2020 are as follows:

In millions of won		March 31, 2020
																		Assets from construction contracts								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				Gross				Allowance for doubtful accounts				Gross				Allowance for doubtful accounts				Changes in estimated total contract costs
Transmission and distribution		W	—				34,933				23,063				11,870				19,837				—				—				—				—
Plant maintenance & engineering service			1,187				(31	)			(77	)			46				34,340				—				—				—				125
		W	1,187				34,902				22,986				11,916				54,177				—				—				—				125

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill

(1) Intangible assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	716,299				(208	)			(560,806	)			—				155,285
Licenses and franchises			3,398				—				(3,398	)			—				—
Copyrights, patents rights and other industrial rights			100,471				—				(42,720	)			(9,178	)			48,573
Mining rights			556,330				—				(30,914	)			(478,727	)			46,689
Development expenditures			930,071				(4,515	)			(832,035	)			(19	)			93,502
Intangible assets under development			67,478				(7,885	)			—				(12,845	)			46,748
Usage rights of donated assets and others			582,825				—				(394,339	)			—				188,486
Leasehold rights			27,843				—				(20,880	)			—				6,963
Greenhouse gas emissions rights			89,655				—				—				—				89,655
Others			564,987				(78	)			(124,248	)			(15,615	)			425,046
		W	3,639,357				(12,686	)			(2,009,340	)			(516,384	)			1,100,947

In millions of won		December 31, 2019
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	707,731				(235	)			(542,736	)			—				164,760
Licenses and franchises			3,398				—				(3,398	)			—				—
Copyrights, patents rights and other industrial rights			102,828				—				(40,389	)			(9,178	)			53,261
Mining rights			584,969				—				(28,456	)			(512,790	)			43,723
Development expenditures			916,834				(1,492	)			(822,972	)			(19	)			92,351
Intangible assets under development			73,335				(11,029	)			—				(12,845	)			49,461
Usage rights of donated assets and others			582,825				—				(389,664	)			—				193,161
Leasehold rights			25,989				—				(20,671	)			—				5,318
Greenhouse gas emissions rights			41,656				—				—				—				41,656
Others			557,749				(79	)			(119,446	)			(11,939	)			426,285
		W	3,597,314				(12,835	)			(1,967,732	)			(546,771	)			1,069,976

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Acquisitions				Disposals				Amortization				Others				Ending balance
Software		W	164,995				2,215				—				(17,248	)			5,531				155,493
(Government grants)			(235	)			—				—				27				—				(208	)
Copyrights, patents rights and other industrial rights			53,261				4				—				(2,092	)			(2,600	)			48,573
Mining rights			43,723				1,604				—				(1,451	)			2,813				46,689
Development expenditures			93,843				—				—				(7,113	)			11,287				98,017
(Government grants)			(1,492	)			—				—				270				(3,293	)			(4,515	)
Intangible assets under development			60,490				7,888				—				—				(13,745	)			54,633
(Government grants)			(11,029	)			—				—				—				3,144				(7,885	)
Usage rights of donated assets and others			193,161				—				—				(4,452	)			(223	)			188,486
(Government grants)			—				—				—				—				—				—
Leasehold rights			5,318				—				—				(208	)			1,853				6,963
Greenhouse gas emissions rights			41,656				1,725				(2,619	)			—				48,893				89,655
Others			426,364				347				(43	)			(5,849	)			4,305				425,124
(Government grants)			(79	)			—				—				1				—				(78	)
		W	1,069,976				13,783				(2,662	)			(38,115	)			57,965				1,100,947

In millions of won		December 31, 2019
		Beginning balance				Acquisitions				Disposals				Amortization				Impairment (*1)				Others (*2)				Ending balance
Software		W	157,681				42,694				(774	)			(81,883	)			—				47,277				164,995
(Government grants)			(420	)			—				—				202				—				(17	)			(235	)
Copyrights, patents rights and other industrial rights			67,112				171				(325	)			(9,196	)			—				(4,501	)			53,261
Mining rights			534,524				8,742				—				(7,186	)			(513,519	)			21,162				43,723
Development expenditures			92,486				687				—				(28,901	)			(68	)			29,639				93,843
(Government grants)			(2,110	)			—				—				833				—				(215	)			(1,492	)
Intangible assets under development			70,536				56,082				—				—				—				(66,128	)			60,490
(Government grants)			(10,564	)			—				—				—				—				(465	)			(11,029	)
Usage rights of donated assets and others			87,011				—				—				(15,632	)			—				121,782				193,161
(Government grants)			—				—				—				—				—				—				—
Leasehold rights			5,552				—				—				(741	)			—				507				5,318
Greenhouse gas emissions rights			7,050				118,743				(7,058	)			—				—				(77,079	)			41,656
Others			217,084				2,307				(164	)			(14,413	)			(22	)			221,572				426,364
(Government grants)			—				—				—				2				—				(81	)			(79	)
		W	1,225,942				229,426				(8,321	)			(156,915	)			(513,609	)			293,453				1,069,976

(*1) KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiaries, performed an impairment test over the mining rights and the Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss.

(*2) ‘Others’ include the business rights amounting to W172,434 million increased from the business combination between Korea East-West Power Co., Ltd. and Eumseong Natural Gas Power Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of Australian dollars

March 31, 2020

Type

Description

Currency

Amount

Remaining useful lives

Software

ERP system and others

KRW

344

11 months ~ 1 year and 1 month

Electricity sales information system

KRW

4,410

2 years 8 months

Copyrights, patents rights and other industrial rights

Smart technology verification and standard design project conducting right

KRW

6,170

2 years and 6 months

Contributions to ARP NRC DC

KRW

32,340

7 years 9 months

Mining rights

Mining right of Bylong mine

AUD

—

- (*)

Development expenditures

Electricity sales information system

KRW

13,520

1 year and 11 months

Usage rights of donated assets and others

Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right

KRW KRW

30,251 6,296

6 years and 8 months 1 year

Others

Occupancy and use of public waters

KRW

91,094

16 years and 10 months

Greenhouse gas emissions rights

KRW

25,933

—

Business rights

KRW

170,518

29 years and 8 months

(*) The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. recognized impairment losses in full during the year ended December 31, 2019.

In millions of won and thousands of Australian dollars

December 31, 2019

Type

Description

Currency

Amount

Remaining useful lives

Software

ERP system and others

KRW

432

1 year and 2 months ~ 1 year and 4 months

Electricity sales information system

KRW

4,824

3 years

Copyrights, patents rights and other industrial rights

Smart technology verification and standard design project conducting right

KRW

6,787

2 years and 9 months

Contributions to ARP NRC DC

KRW

34,755

8 years

Mining rights

Mining right of Bylong mine

AUD

—

- (*)

Development expenditures

Electricity sales information system

KRW

15,283

2 years and 3 months

Usage rights of donated assets and others

Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right

KRW KRW

31,385 7,870

6 years and 11 months 1 year and 3 months

Others

Occupancy and use of public waters

KRW

92,446

17 years and 1 month

Business rights

KRW

171,955

29 years and 11 months

(*) The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. recognized impairment losses in full during the year ended December 31, 2019.

(4) For the three-month periods ended March 31, 2020 and 2019, the Group recognized research and development expenses of W154,470 million and W154,437 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

22. Trade and Other Payables

Trade and other payables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Trade payables		W	2,381,499				—				2,859,721				—
Other trade payables			1,370,731				2,467,107				1,952,659				2,446,714
Accrued expenses			1,015,213				35,470				1,028,869				2,033
Leasehold deposits received			2,571				709				2,571				709
Other deposits received			168,781				68,274				163,382				68,702
Lease liabilities			658,582				4,556,341				635,349				4,434,784
Dividends payable			54,692				—				6,851				—
Others (*)			—				11,278				—				12,818
		W	5,652,069				7,139,179				6,649,402				6,965,760

(*) Details of others as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advance received from local governments		W	—				4,278				—				5,818
Others			—				7,000				—				7,000
		W	—				11,278				—				12,818

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Current liabilities
Short-term borrowings		W	102,622				1,098,555
Current portion of long-term borrowings			185,321				217,579
Current portion of debt securities			7,558,479				7,545,485
Less : Current portion of discount on long-term borrowings			(1,017	)			(1,000	)
Less : Current portion of discount on debt securities			(3,006	)			(2,780	)
			7,842,399				8,857,839
Non-current liabilities
Long-term borrowings			3,625,374				3,411,052
Debt securities			57,653,890				55,716,183
Less : Discount on long-term borrowings			(19,985	)			(21,309	)
Less : Discount on debt securities			(115,078	)			(88,920	)
Add : Premium on debt securities			1,707				1,696
			61,145,908				59,018,702
		W	68,988,307				67,876,541

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(2) Repayment schedule of borrowings and debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
Type		Borrowings				Debt securities
Less than 1 year		W	287,943				7,558,479
1~ 5 years			2,193,962				30,902,567
Over 5 years			1,431,412				26,751,323
		W	3,913,317				65,212,369

In millions of won
December 31, 2019
Type		Borrowings				Debt securities
Less than 1 year		W	1,316,134				7,545,485
1~ 5 years			2,113,404				31,552,963
Over 5 years			1,297,648				24,163,220
		W	4,727,186				63,261,668

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies

March 31, 2020

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

Woori Bank and others

1.86 ~ 3.93

2020.04.06 ~ 2020.06.30

—

W

5,284

Foreign short-term borrowings

Korea Development Bank and others

1.86 ~ 4.60

2020.05.06 ~ 2020.09.23

USD 63,468

77,596

Foreign short-term borrowings

BDO Unibank

3M BVAL + 50bp

2020.12.20

PHP 225,000

5,393

Bank overdraft

Kookmin Bank and others

2.10

2020.04.01

—

13,000

Bank overdraft

Woori Bank and others

Libor +1.26 ~ 1.76

2020.05.31 ~ 2021.02.26

—

1,349

W

102,622

In millions of won and thousands of foreign currencies

December 31, 2019

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

2.00 ~ 2.20

2020.01.13 ~2020.02.05

—

W

280,000

Foreign short-term borrowings

LG-CNS

4.60

2020.06.30

USD 23,699

27,439

Foreign short-term borrowings

BDO Unibank

3M BVAL + 50bp

2020.12.20

PHP 225,000

5,130

Foreign short-term borrowings

Mizuho Bank

4.60

2020.06.30

USD 11,027

12,767

Electronic short-term bonds

Mirae asset daewoo and others

1.72 ~ 2.20

2020.01.10 ~2020.02.05

—

400,000

Local bank overdraft

Korea development Bank and others

1.98 ~ 2.75

2020.01.01 ~2020.04.16

—

373,219

W

1,098,555

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
March 31, 2020
Type						Interest rate (%)				Maturity				Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank			Others				0.50				2020~2044				—			W	3,361
			Facility				2.50~4.60				2023~2028				—				57,762
			Operating funds				2.33~3.04				2020~2023				—				64,300
			Operating funds				1yr KoFC bond rate +0.95				2020~2022				—				24,000
Hana Bank			Commercial Paper				3M CD+0.13~0.32				2021~2024				—				1,150,000
			Facility				4.60				2028				—				12,127
			Facility				3yr KTB rate-1.25 Standard overdraft rate+2.45				2020~2035				—				30,095
IBK			PF Refinancing				CD+1.25				2030				—				10,259
Export-Import Bank of Korea			Project loans				1.50				2026				—				19,150
			Operating funds				1.78				2023				—				15,700
Korea Energy Agency			Development of power resources				3yr KTB rate-2.25				2023~2025				—				4,048
			Facility				3yr KTB rate-2.25				2020~2024				—				1,925
			Project loans				—				2023				—				1,197
			Others				KTB rate-2.25				2024~2028				—				15,283
Shinhan Bank			Facility				CB rate+1.10				2028				—				18,191
			Others				3.95				2035				—				97,941
			Others				Standard overdraft rate+1.00				2035				—				97,941
Kookmin Bank			Facility				MOR+0.79 3M CD+1.79				2023~2031				—				32,582
Others			Facility				1.75~6.80				2026~2037				—				523,604
			Facility				CB rate+1.20 3M CD+1.60 Standard overdraft rate+2.45				2023~2037				—				85,325
			PF Refinancing				4.10				2030				—				28,496
			Others				4.50~7.90				2022~2039				—				102,364
																			2,395,651
Foreign long-term borrowings
Korea Energy Agency			Project loans				—				2021~2023			USD	8,744				10,690
Export-Import Bank of Korea and others			Direct loan and others				1M Libor+1.80~3.20				2036			USD	101,943				124,635
			Direct loan and others				3M Libor+2.75~3.70				2027			JOD	146,380				252,418
			PF Loan				6M Libor+2.50~2.70				2032			USD	116,151				142,007
			Others				3.88				2021			USD	289,084				353,434
SCNT and others			Shareholder’s loan				8.00				2023			USD	12,357				15,107
			Shareholder’s loan				8.00				2031			JOD	4,853				8,368
Samsung Life Insurance and others			Syndicated Loan				3.10				2032			JPY	4,692,815				53,068
Woori Bank and others			Syndicated Loan				JPY 6M Libor+2.00				2032			JPY	3,027,196				34,232
IFC and others			Others				6M Libor+5.00				2031				PKR 39,986,650				295,501
Federal Financing Bank and others			PF Loan				2.39~13.00				2031~2038				USD 101,630				124,253
Others			Others				—				—				USD 1,088				1,331
																			1,415,044
																			3,810,695
Less : Discount on long-term borrowings																			(21,002	)
Less : Current portion of long-term borrowings																			(185,321	)
Add : Current portion of discount on long-term borrowings																			1,017
																		W	3,605,389

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2019
Type				Interest rate (%)		Maturity		Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others		0.50		2020~2044			—			W	3,500
		Facility		2.50~4.60		2023~2028			—				59,845
		Operating funds		2.33~3.04		2020~2022			—				55,000
		Operating funds		1yr KoFC bond rate +0.95		2020~2022			—				24,000
Hana Bank		Commercial Paper		3M CD+0.13~0.32		2021~2024			—				1,150,000
		Facility		4.60		2028			—				12,466
		Facility		3yr KTB rate-1.25		2020~2028			—				6,699
IBK		PF Refinancing		CD+1.25		2030			—				10,497
Export-Import Bank of Korea		Project loans		1.50		2026			—				19,150
		Operating funds		2.21		2020			—				35,000
Korea Energy Agency		Development of power resources		3yr KTB rate-2.25		2023~2025			—				4,350
		Facility		3yr KTB rate-2.25		2020~2024			—				2,058
		Project loans		—		2023			—				1,197
		Others		KTB rate-2.25		2024~2028			—				15,696
Shinhan Bank		Facility		CB rate+1.10		2028			—				18,698
		Others		3.95		2035			—				99,146
		Others		Standard overdraft rate+1.00		2035			—				99,146
Kookmin Bank		Facility		3.16		2020			—				10,000
		Facility		MOR+0.79		2023			—				23,333
Others		Facility		1.75~6.80		2026~2036			—				390,044
		Facility		CB rate+1.10~1.60 Standard overdraft rate+2.45		2023~2036			—				111,834
		PF Refinancing		4.10		2030			—				29,159
		Others		4.50~7.90		2022~2039			—				102,348
													2,283,166
Foreign long-term borrowings
Korea Energy Agency		Project loans		—		2021~2023		USD	8,744				10,123
Export-Import Bank of Korea and others		Direct loan and others		1M Libor+1.80~3.20		2036		USD	101,912				117,994
		Direct loan and others		3M Libor+2.75~3.70		2027		JOD	146,380				239,039
		PF Loan		6M Libor+2.50~2.70		2032		USD	118,684				137,412
		Others		3.88		2021		USD	289,709				334,685
SCNT and others		Shareholder’s loan		6.50~8.00		2023		USD	13,000				15,051
		Shareholder’s loan		8.00		2031		JOD	4,853				7,925
Samsung Life Insurance and others		Syndicated Loan		3.10		2032		JPY	4,981,038				52,972
Woori Bank and others		Syndicated Loan		JPY 6M Libor+2.00		2032		JPY	3,213,121				34,171
IFC and others		Others		6M Libor+5.00		2031			PKR 37,252,930				278,652
Federal Financing Bank and others		PF Loan		2.39~13.00		2031~2038		USD	101,380				117,377
Others		Others		—		—		USD	57				64
													1,345,465
													3,628,631
Less : Discount on long-term borrowings													(22,309	)
Less : Current portion of long-term borrowings													(217,579	)
Add : Current portion of discount on long-term borrowings													1,000
												W	3,389,743

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
		Issue date		Maturity		Interest rate (%)		March 31, 2020				December 31, 2019
Electricity bonds		2010.04.08~2020.03.30		2020.04.08~2049.10.24		1.32~5.26		W	29,700,000				28,450,000
Corporate bonds (*)		2009.10.16~2020.03.18		2020.04.05~2050.02.25		1.29~6.00			24,253,577				24,463,577
									53,953,577				52,913,577
Less : Discount on local debt securities									(41,214	)			(42,274	)
Less : Current portion of local debt securities									(5,830,000	)			(6,340,000	)
Add : Current portion of discount on local debt securities									1,405				1,409
								W	48,083,768				46,532,712

(*) Corporate bonds of HeeMang Sunlight Power Co., Ltd. amounting to W2,697 million can be redeemed on every March 31 for five years from its issue date, March 31, 2016.

(6) Foreign debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
March 31, 2020
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	249,076			W	304,520
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00		USD	314,717				384,773
FY-04		2004.04.23		2034.04.23		5.13		USD	286,920				350,788
FY-11		2011.07.13		2021.07.13		4.75		USD	500,000				611,300
FY-12		2012.09.19		2022.09.19		3.00		USD	750,000				916,950
FY-13		2013.09.25		2020.09.25		5.75		AUD	325,000				244,585
FY-14		2014.07.30~2014.12.02		2020.06.02~2029.07.30		2.50~3.57		USD	600,000				733,560
FY-15		2015.06.15		2025.06.15		3.25		USD	300,000				366,780
FY-16		2016.01.21		2021.07.21		2.50		USD	300,000				366,780
FY-17		2017.04.12~2017.07.25		2020.04.12~2027.07.25		2.38~3.13		USD	1,100,000				1,344,860
FY-17		2017.10.30		2037.10.30		1.70		EUR	40,000				53,946
FY-17		2017.11.16		2037.11.16		2.36		SEK	450,000				54,774
FY-18		2018.01.29~2018.07.25		2021.01.29~2023.07.25		3.00~3.88		USD	1,800,000				2,200,680
FY-18		2018.03.13		2028.03.13		3.35		HKD	1,650,000				260,139
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38		USD	800,000				978,080
FY-19		2019.02.27		2024.02.27		0.13		CHF	200,000				254,762
FY-19		2019.07.19		2024.07.19~2028.07.19		0.00~0.05		CHF	300,000				382,143
FY-19		2019.07.22		2022.07.22		2.38		USD	300,000				366,780
FY-19		2019.10.30		2024.10.30		3M BBSW+97bp		AUD	300,000				225,771
FY-19		2019.12.19		2037.12.31		3.30~5.70		USD	400,817				490,040
FY-20		2020.02.03		2025.02.23		1.29		USD	300,000				366,781
													11,258,792
Less : Discount on foreign debt securities													(76,870	)
Add : Premium on foreign debt securities													1,707
Less : Current portion of foreign debt securities													(1,728,479	)
Add : Current portion of discount on foreign debt securities													1,601
												W	9,456,751

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2019
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 249,074			W	288,379
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00			USD 314,717				364,379
FY-04		2004.04.23		2034.04.23		5.13			USD 286,920				332,196
FY-11		2011.07.13		2021.07.13		4.75			USD 500,000				578,900
FY-12		2012.09.19		2022.09.19		3.00			USD 750,000				868,350
FY-13		2013.09.25		2020.09.25		5.75			AUD 325,000				263,361
FY-14		2014.07.30~2014.12.02		2020.06.02~2029.07.30		2.50~3.57			USD 600,000				694,680
FY-15		2015.06.15		2025.06.15		3.25			USD 300,000				347,340
FY-16		2016.01.21		2021.07.21		2.50			USD 300,000				347,340
FY-17		2017.04.12~2017.07.25		2020.04.12~2027.07.25		2.38~3.13			USD 1,100,000				1,273,580
FY-17		2017.10.30		2037.10.30		1.70			EUR 40,000				51,897
FY-17		2017.11.16		2037.11.16		2.36			SEK 450,000				55,737
FY-18		2018.01.29~2018.07.25		2021.01.29~2023.07.25		3.00~3.88			USD 1,800,000				2,084,040
FY-18		2018.03.13		2028.03.13		3.35			HKD 1,650,000				245,289
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38			USD 800,000				926,240
FY-19		2019.02.27		2024.02.27		0.13			CHF 200,000				239,104
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05			CHF 300,000				358,656
FY-19		2019.07.22		2022.07.22		2.38			USD 300,000				347,340
FY-19		2019.10.31		2024.10.30		3M BBSW+97bp			AUD 300,000				243,102
FY-19		2019.12.19		2037.12.31		3.30~5.70			USD 378,460				438,181
													10,348,091
Less : Discount on foreign debt securities													(49,426	)
Add : Premium on foreign debt securities													1,696
Less : Current portion of foreign debt securities													(1,205,485	)
Add : Current portion of discount on foreign debt securities													1,371
												W	9,096,247

(7) Changes in borrowings and debt securities for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Beginning balance		W	67,876,541				61,034,627
Cash flow			519,362				1,909,767
Effect of exchange rate fluctuations			617,470				245,912
Others			(25,066	)			1,612
Ending balance		W	68,988,307				63,191,918

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 W14,158 million as expense for the three-month period ended March 31, 2020. 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 W569 million as expense for the three-month period ended March 31, 2020.

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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Acquisition cost				Accumulated depreciation				Book value
Land		W	718,590				(61,603	)			656,987
Buildings			53,141				(23,343	)			29,798
Structures			28,458				(3,020	)			25,438
Machinery			1,308				(516	)			792
Ships			4,214,493				(533,878	)			3,680,615
Vehicles			24,736				(10,950	)			13,786
Others (*)			2,649,412				(2,310,163	)			339,249
		W	7,690,138				(2,943,473	)			4,746,665

In millions of won		December 31, 2019
		Acquisition cost				Accumulated depreciation				Book value
Land		W	693,103				(49,029	)			644,074
Buildings			54,980				(20,403	)			34,577
Structures			28,198				(2,554	)			25,644
Machinery			1,308				(484	)			824
Ships			4,113,754				(425,465	)			3,688,289
Vehicles			20,817				(7,109	)			13,708
Others (*)			2,661,850				(2,285,393	)			376,457
		W	7,574,010				(2,790,437	)			4,783,573

(*) Including power purchase agreements (“PPA”) with GS EPS and two other LNG combined power suppliers

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease, Continued

(3) Changes in right-of-use assets for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Increase				Depreciation				Others				Ending balance
Land		W	644,074				—				(12,357	)			25,270				656,987
Buildings			34,577				7,104				(6,823	)			(5,060	)			29,798
Structures			25,644				260				(466	)			—				25,438
Machinery			824				—				(32	)			—				792
Ships			3,688,289				100,740				(108,414	)			—				3,680,615
Vehicles			13,708				2,259				(1,948	)			(233	)			13,786
Others			376,457				3,508				(18,596	)			(22,120	)			339,249
		W	4,783,573				113,871				(148,636	)			(2,143	)			4,746,665

In millions of won		December 31, 2019
		Beginning balance				Changes in accounting policies (*)				Increase				Depreciation				Ending balance
Land		W	—				684,386				8,717				(49,029	)			644,074
Buildings			—				36,874				18,106				(20,403	)			34,577
Structures			—				20,840				7,358				(2,554	)			25,644
Machinery			—				—				1,308				(484	)			824
Ships			—				3,986,947				126,807				(425,465	)			3,688,289
Vehicles			—				11,258				9,559				(7,109	)			13,708
Others			—				403,346				49,141				(76,030	)			376,457
		W	—				5,143,651				220,996				(581,074	)			4,783,573

(*) Including transferred amount of W195,704 million, which was classified as finance lease assets as of December 31, 2018.

(4) Lease liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
Less than 1 year		W	703,062
1 ~ 5 years			2,438,325
More than 5 years			2,851,619
			5,993,006
Less : Discount			(778,083	)
Present value of lease payment		W	5,214,923

In millions of won		December 31, 2019
Less than 1 year		W	686,445
1 ~ 5 years			2,334,883
More than 5 years			2,735,681
			5,757,009
Less : Discount			(686,876	)
Present value of lease payment		W	5,070,133

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease, Continued

(5) The details of the liquidity classification of lease liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Current lease liabilities		W	658,582				635,349
Non-current lease liabilities			4,556,341				4,434,784
		W	5,214,923				5,070,133

(6) Changes in lease liabilities for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	5,070,133				108,102				(230,313	)			30,446				236,555				5,214,923

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

In millions of won		December 31, 2019
		Beginning balance				Changes in accounting policies				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	283,806				4,943,584				218,800				(659,387	)			85,950				197,380				5,070,133

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

(7) Details of expense relating to lease contracts as lessee for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Depreciation of right-of-use assets		W	148,636				135,141
Interest expenses of lease liabilities			30,446				20,381
Leases expenses for short-term leases			14,158				4,722
Leases expenses for leases of low-value assets			569				341
Variable lease payments			10,863				(4,281	)
		W	204,672				156,304

(8) For the three-month periods ended March 31, 2020 and 2019, the total cash outflow related to the lease contract, including cash outflows due to short-term leases and leases of low-value asset leases, amounts to W255,903 million and W132,566 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 30 energy storage system installation projects and 103 energy efficiency contracts as finance leases with a lease term of 1 to 10 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-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Finance income on the net investment in the lease		W	30,846				20,427

(3) Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Less than 1 year		W	181,968				173,093
1 ~ 2 years			158,435				150,895
2 ~ 3 years			158,489				150,596
3 ~ 4 years			156,398				149,364
4 ~ 5 years			153,271				145,964
More than 5 years			1,748,882				1,740,652
			2,557,442				2,510,564
Less : Unearned finance income			(1,326,456	)			(1,331,723	)
Net investment in the lease		W	1,230,986				1,178,841

The implicit interest rate for a lease term is determined on the lease contract date. The average implicit interest rate of the finance lease contracts is from 3.5% up to 16.66% per year as of March 31, 2020. (prior year : 3.5%~16.48%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	862				1,133
Bad debt expense			—				—
Reversal of allowance for doubtful accounts			(169	)			(271	)
Ending balance		W	693				862

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March 31, 2020

(Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Net defined benefit asset		W	—				(1,047	)
Net defined benefit obligations			2,069,031				1,925,134
Other long-term employee benefit obligations			4,589				4,720
		W	2,073,620				1,928,807

(2)    Principal assumptions on actuarial valuation as of March 31, 2020 and December 31, 2019 are as follows:

		March 31, 2020		December 31, 2019
Discount rate		1.88% ~ 2.05%		1.92% ~ 2.05%
Weighted average future salary and benefit levels		4.24%		4.39%
Weighted average duration		13.24 years		13.23 years

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March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(3) Details of expense relating to defined benefit plans for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Current service cost		W	114,569				99,702
Interest cost			19,458				19,756
Expected return on plan assets			(10,351	)			(10,215	)
Past service cost			(2,027	)			—
Loss from settlement			—				(234	)
		W	121,649				109,009

Expenses as described above are recognized in those items below in the financial statements.

In millions of won		March 31, 2020				March 31, 2019
Cost of sales		W	90,066				81,475
Selling and administrative expenses			18,892				13,713
Others (Construction-in-progress and others)			12,691				13,821
		W	121,649				109,009

In addition, for the three-month periods ended March 31, 2020 and 2019, employee benefit obligations expenses of W11,687 million and W16,253 million, respectively, are recognized as cost of sales; and W253 million and W3,490 million, respectively, are recognized as selling and administrative expenses; and W2,381 million and W3,256 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

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March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Present value of defined benefit obligation from funded plans		W	4,177,620				4,035,400
Fair value of plan assets			(2,108,589	)			(2,111,313	)
Net liabilities incurred from defined benefit plans		W	2,069,031				1,924,087

(5) Changes in the present value of defined benefit obligations for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	4,035,400				3,414,116
Current service cost			114,569				440,300
Interest cost (*)			19,458				83,619
Remeasurement component			43,857				(93,736	)
Past service cost			(2,027	)			301,442
Loss (profit) from settlement			—				(2,018	)
Actual payments			(33,791	)			(108,057	)
Others			154				(266	)
Ending balance		W	4,177,620				4,035,400

(*) Corporate bond (AAA rated) yield at year-end is applied to measure the interest cost on employee benefit obligations.

(6) Changes in the fair value of plan assets for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	2,111,313				1,775,331
Expected return			10,351				41,597
Remeasurement component			1,390				(11,186	)
Contributions by the employers			1,669				348,386
Actual payments			(16,202	)			(42,815	)
Others			68				—
Ending balance		W	2,108,589				2,111,313

In addition, losses on accumulated remeasurement component amounted to W147,455 million and W117,779 million have been recognized as other comprehensive income or loss for the three-month period ended March 31, 2020 and for the year ended December 31, 2019, respectively.

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March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Equity instruments		W	214,909				189,235
Debt instruments			612,514				648,265
Bank deposit			234,905				199,743
Others			1,046,261				1,074,070
		W	2,108,589				2,111,313

For the three-month period ended March 31, 2020 and for the year ended December 31, 2019, actual returns on plan assets amounted to W11,741 million and W30,411 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Actuarial gain from changes in financial assumptions		W	8,714				(2,916	)
Experience adjustments, etc.			35,143				(90,820	)
Expected return			(1,390	)			11,186
		W	42,467				(82,550	)

Remeasurement component recognized as other comprehensive income or loss is included in retained earnings.

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March 31, 2020

(Unaudited)

26. Provisions

(1) Provisions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
			Current				Non-current				Current				Non-current
Employment benefits
Provisions for employment benefits		W	1,061,789				—				975,619				—
Litigation
Litigation provisions			42,369				47,983				39,177				49,221
Decommissioning cost
Nuclear plants			—				16,083,989				—				15,994,039
Spent fuel			334,712				1,018,649				401,741				953,539
Radioactive waste			77,644				1,810,533				77,053				1,811,029
PCBs			—				150,571				—				152,981
Other recovery provisions			—				16,866				—				10,773
Others
Power plant regional support program			177,719				—				140,133				—
Transmission regional support program			176,575				—				139,785				—
Provisions for financial guarantee			11				76,902				111				81,246
Provisions for RPS			45,626				—				2,889				—
Provisions for greenhouse gas emissions obligations			818,132				—				682,459				—
Others			145,061				16,436				145,754				13,220
		W	2,879,638				19,221,929				2,604,721				19,066,048

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March 31, 2020

(Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	975,619				246,662				(160,492	)			—				—				1,061,789
Litigation
Litigation provisions			88,398				3,920				(17,606	)			(1,585	)			17,225				90,352
Decommissioning cost
Nuclear plants			15,994,039				97,614				(7,664	)			—				—				16,083,989
Spent fuel			1,355,280				147,871				(149,790	)			—				—				1,353,361
Radioactive waste			1,888,082				8,920				(8,825	)			—				—				1,888,177
PCBs			152,981				755				(3,165	)			—				—				150,571
Other recovery provisions			10,773				5,647				—				—				447				16,867
Others
Power plant regional support program			140,133				39,455				(9,498	)			—				7,629				177,719
Transmission regional support program			139,785				69,148				(32,358	)			—				—				176,575
Provisions for financial guarantee			81,357				164				(70	)			(4,975	)			436				76,912
Provisions for RPS			2,889				146,006				(58,214	)			(45,055	)			—				45,626
Provisions for greenhouse gas emissions obligations			682,459				117,525				—				—				18,148				818,132
Others			158,974				2,852				(935	)			(102	)			708				161,497
		W	21,670,769				886,539				(448,617	)			(51,717	)			44,593				22,101,567
In millions of won		December 31, 2019
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	976,347				900,033				(879,980	)			(20,781	)			—				975,619
Litigation
Litigation provisions			77,793				59,366				(17,236	)			(31,525	)			—				88,398
Decommissioning cost
Nuclear plants			13,388,134				2,639,562				(33,657	)			—				—				15,994,039
Spent fuel			1,291,354				440,029				(376,103	)			—				—				1,355,280
Radioactive waste			1,685,008				209,551				(6,787	)			—				310				1,888,082
PCBs			147,668				14,251				(8,938	)			—				—				152,981
Other recovery provisions			10,477				2,020				(2,033	)			—				309				10,773
Others
Power plant regional support program			137,668				41,341				(48,390	)			—				9,514				140,133
Transmission regional support program			151,698				169,616				(181,529	)			—				—				139,785
Provisions for tax			6,845				—				—				(6,847	)			2				—
Provisions for financial guarantee			15,586				83,910				(16,589	)			(1,551	)			1				81,357
Provisions for RPS			93,919				222,119				(313,149	)			—				—				2,889
Provisions for greenhouse gas emissions obligations			136,187				724,002				(152,463	)			(25,267	)			—				682,459
Others			61,862				113,751				(16,217	)			(833	)			411				158,974
		W	18,180,546				5,619,551				(2,053,071	)			(86,804	)			10,547				21,670,769

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March 31, 2020

(Unaudited)

27. Government Grants

(1) Government grants as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Land		W	(21,818	)			(21,817	)
Buildings			(60,636	)			(61,920	)
Structures			(186,443	)			(186,554	)
Machinery			(154,530	)			(158,907	)
Vehicles			(1,736	)			(2,275	)
Equipment			(204	)			(241	)
Tools			(335	)			(403	)
Construction-in-progress			(66,910	)			(61,211	)
Investment properties			(11	)			(13	)
Software			(208	)			(235	)
Development expenditures			(4,515	)			(1,492	)
Intangible assets under development			(7,885	)			(11,029	)
Other intangible assets			(78	)			(79	)
		W	(505,309	)			(506,176	)

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March 31, 2020

(Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Receipt				Acquisitions				Offset items with depreciation expense and others				Disposals				Others				Ending balance
Cash		W	—				(150	)			—				—				—				150				—
Land			(21,817	)			—				—				—				—				(1	)			(21,818	)
Buildings			(61,920	)			—				—				1,287				—				(3	)			(60,636	)
Structures			(186,554	)			—				—				2,369				474				(2,732	)			(186,443	)
Machinery			(158,907	)			—				—				4,252				126				(1	)			(154,530	)
Vehicles			(2,275	)			—				—				548				—				(9	)			(1,736	)
Equipment			(241	)			—				—				44				—				(7	)			(204	)
Tools			(403	)			—				—				68				—				—				(335	)
Construction-in-progress			(61,211	)			—				(1,464	)			—				—				(4,235	)			(66,910	)
Investment properties			(13	)			—				—				—				—				2				(11	)
Software			(235	)			—				—				27				—				—				(208	)
Development expenditures			(1,492	)			—				—				270				—				(3,293	)			(4,515	)
Intangible assets under development			(11,029	)			—				—				—				—				3,144				(7,885	)
Other intangible assets			(79	)			—				—				1				—				—				(78	)
		W	(506,176	)			(150	)			(1,464	)			8,866				600				(6,985	)			(505,309	)

In millions of won		December 31, 2019
		Beginning balance				Receipt				Acquisitions				Offset items with depreciation expense and others				Disposals				Others				Ending balance
Cash		W	—				(21,705	)			—				—				—				21,705				—
Land			(21,968	)			—				—				—				151				—				(21,817	)
Buildings			(63,189	)			—				—				6,214				—				(4,945	)			(61,920	)
Structures			(190,854	)			—				—				9,373				2,405				(7,478	)			(186,554	)
Machinery			(173,242	)			—				—				17,993				635				(4,293	)			(158,907	)
Vehicles			(4,220	)			—				—				2,170				5				(230	)			(2,275	)
Equipment			(418	)			—				—				262				—				(85	)			(241	)
Tools			(675	)			—				—				281				—				(9	)			(403	)
Construction-in-progress			(54,740	)			—				12,338				—				—				(18,809	)			(61,211	)
Finance lease assets			(26	)			—				—				—				—				26				—
Investment properties			(50	)			—				—				1				—				36				(13	)
Software			(420	)			—				—				202				—				(17	)			(235	)
Development expenditures			(2,110	)			—				—				833				—				(215	)			(1,492	)
Intangible assets under development			(10,564	)			—				—				—				—				(465	)			(11,029	)
Other intangible assets			—				—				—				2				—				(81	)			(79	)
		W	(522,476	)			(21,705	)			12,338				37,331				3,196				(14,860	)			(506,176	)

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March 31, 2020

(Unaudited)

28. Deferred Revenue

Deferred revenue related to the Group’s construction contracts for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	9,201,538				8,606,563
Increase during the period			263,973				1,199,783
Recognized as revenue during the period			(152,636	)			(604,808	)
Ending balance		W	9,312,875				9,201,538

29. Non-financial Liabilities

Non-financial liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advance received		W	3,739,785				222,858				3,825,240				192,863
Unearned revenue			30,806				6,593				30,988				6,589
Deferred revenue			584,668				8,728,207				590,928				8,610,610
Withholdings			318,829				10,920				160,977				10,901
Others			1,464,733				35,950				1,080,220				13,489
		W	6,138,821				9,004,528				5,688,353				8,834,452

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March 31, 2020

(Unaudited)

30. Contributed Capital

(1) Details of shares issued as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won except share information

March 31, 2020

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

W

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, 2019

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

W

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 issued capital stock for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

Number of shares		March 31, 2020				December 31, 2019
Beginning balance			641,964,077				641,964,077
Ending balance			641,964,077				641,964,077

(3) Details of share premium as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Share premium		W	843,758				843,758

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March 31, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Legal reserve (*)		W	1,604,910				1,604,910
Voluntary reserves			34,785,425				34,785,425
Retained earnings before appropriations			12,793,451				12,811,798
Retained earnings		W	49,183,786				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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
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			28,967,976				28,967,976
Reserve for equalizing dividends			210,000				210,000
		W	34,785,425				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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	49,202,133				51,519,119
Net profit (loss) for the period attributed to owner of the Group			22,979				(2,345,517	)
Changes in equity method retained earnings			(248	)			(6,789	)
Remeasurement of defined benefit liability, net of tax			(41,078	)			36,160
Transfer of gain (loss) on valuation of financial assets through other comprehensive income			—				(840	)
Ending balance		W	49,183,786				49,202,133

(4) Dividends paid for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won

March 31, 2020

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

W

—

—

In millions of won

December 31, 2019

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

W

—

—

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March 31, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(5) Changes in retained earnings of investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	(2,820	)			3,969
Changes			(248	)			(6,789	)
Ending balance		W	(3,068	)			(2,820	)

(6) Changes in remeasurement components related to defined benefit liability for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Beginning balance		W	(117,779	)			(219,381	)
Changes			(47,260	)			76,395
Income tax effect			6,182				(40,235	)
Transfer to reserve for business expansion			11,402				65,442
Ending balance		W	(147,455	)			(117,779	)

32. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interest) as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Issuer		Hybrid bond				Issued date				Maturity				Yield (%)				March 31, 2020				December 31, 2019
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.

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 Group’s consolidated financial statements.

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March 31, 2020

(Unaudited)

33. Other Components of Equity

(1) Other components of equity as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Other capital surplus		W	1,224,402				1,226,364
Accumulated other comprehensive loss			(318,784	)			(280,730	)
Other equity			13,294,973				13,294,973
		W	14,200,591				14,240,607

(2) Changes in other capital surplus for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020												December 31, 2019
		Gain on disposal of treasury stocks				Others				Subtotal				Gain on disposal of treasury stocks				Others				Subtotal
Beginning balance		W	387,524				838,840				1,226,364				387,524				847,301				1,234,825
Issuance of share capital of subsidiary and others			—				(1,962	)			(1,962	)			—				—				—
Others			—				—				—				—				(8,461	)			(8,461	)
Ending balance		W	387,524				836,878				1,224,402				387,524				838,840				1,226,364

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March 31, 2020

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33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Financial asset at fair value through other comprehensive income valuation reserve				Shares in other comprehensive income (loss) of investments in associates and joint ventures				Reserve for overseas operations translation				Reserve for loss on valuation of derivatives				Total
Beginning balance		W	(92,599	)			142,896				(294,898	)			(36,129	)			(280,730	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			(51,544	)			—				—				—				(51,544	)
Shares in other comprehensive income (loss) of associates and joint ventures, net of tax			—				(38,836	)			—				—				(38,836	)
Foreign currency translation of foreign operations, net of tax			—				—				38,364				—				38,364
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				13,962				13,962
Ending balance		W	(144,143	)			104,060				(256,534	)			(22,167	)			(318,784	)
In millions of won		December 31, 2019
		Financial asset 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				Reserve for loss on valuation of derivatives				Total
Beginning balance		W	(81,708	)			123,553				(350,245	)			(50,170	)			(358,570	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			(10,891	)			—				—				—				(10,891	)
Shares in other comprehensive income of associates and joint ventures, net of tax			—				19,343				—				—				19,343
Foreign currency translation of foreign operations, net of tax			—				—				55,347				—				55,347
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				14,041				14,041
Ending balance		W	(92,599	)			142,896				(294,898	)			(36,129	)			(280,730	)

(4) Other equity as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Statutory revaluation reserve		W	13,295,098				13,295,098
Changes in other equity			(125	)			(125	)
		W	13,294,973				13,294,973

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March 31, 2020

(Unaudited)

34. Sales

Details of sales for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020												March 31, 2019
		Domestic				Overseas				Total				Domestic				Overseas				Total
[Type of goods and services]
Sales of goods		W	14,550,236				62,609				14,612,845				14,676,701				77,311				14,754,012
Electricity			14,304,384				—				14,304,384				14,437,525				—				14,437,525
Heat supply			104,868				—				104,868				132,598				—				132,598
Others			140,984				62,609				203,593				106,578				77,311				183,889
Sales related to provision of services			52,233				67,992				120,225				51,758				43,121				94,879
Sales related to provision of construction services			28,006				179,415				207,421				17,517				238,537				256,054
Revenue related to transfer of assets from customers			152,636				—				152,636				143,459				—				143,459
		W	14,783,111				310,016				15,093,127				14,889,435				358,969				15,248,404
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	14,550,236				62,609				14,612,845				14,676,701				77,311				14,754,012
Performance obligations satisfied over time			232,875				247,407				480,282				212,734				281,658				494,392
		W	14,783,111				310,016				15,093,127				14,889,435				358,969				15,248,404

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March 31, 2020

(Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Salaries		W	196,094				196,655
Retirement benefit expense			19,145				17,203
Welfare and benefit expense			28,128				27,690
Insurance expense			2,579				3,019
Depreciation			53,126				59,055
Amortization of intangible assets			17,322				13,964
Bad debts expense			18,477				4,952
Commission			108,417				179,967
Advertising expense			5,409				6,883
Training expense			983				1,553
Vehicle maintenance expense			2,097				2,866
Publishing expense			837				1,439
Business development expense			834				771
Rent expense			5,586				6,882
Telecommunication expense			2,195				2,265
Transportation expense			428				211
Taxes and dues			7,148				4,016
Expendable supplies expense			1,939				1,753
Water, light and heating expense			4,479				4,455
Repairs and maintenance expense			13,614				12,731
Ordinary development expense			41,970				41,030
Travel expense			3,458				4,509
Clothing expense			696				443
Survey and analysis expense			188				217
Membership fee			541				434
Others			30,108				31,413
		W	565,798				626,376

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March 31, 2020

(Unaudited)

36. Other Non-operating Income and Expense

(1) Other non-operating income for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Reversal of other provisions		W	1,570				7,080
Reversal of other allowance for bad debts			24				—
Gains on government grants			71				71
Gains on assets contributed			10,437				64
Gains on liabilities exempted			830				103
Compensation and reparations revenue			19,495				18,842
Revenue from research contracts			937				1,150
Rental income			46,867				46,982
Others			6,293				6,305
		W	86,524				80,597

(2) Other non-operating expense for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Compensation and indemnification expense		W	313				—
Accretion expenses of other provisions			56				51
Depreciation expenses on investment properties			370				244
Depreciation expenses on idle assets			1,639				1,636
Other bad debts expense			35				847
Donations			11,143				11,985
Others			3,057				5,473
		W	16,613				20,236

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March 31, 2020

(Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Other gains
Gains on disposal of property, plant and equipment		W	27,357				8,833
Gains on disposal of intangible assets			—				97
Gains of disposal of investment property			34,423				—
Gains on foreign currency translation			12,018				4,540
Gains on foreign currency transactions			7,830				6,301
Gains on insurance proceeds			—				13
Others			61,244				66,345
Other losses
Losses on disposal of property, plant and equipment			(7,786	)			(13,992	)
Impairment loss on property, plant and equipment			—				(2,279	)
Losses on foreign currency translation			(8,581	)			(58,960	)
Losses on foreign currency transactions			(22,100	)			(9,860	)
Others			(42,465	)			(11,322	)
		W	61,940				(10,284	)

38. Finance Income

Finance income for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Interest income		W	66,506				61,304
Dividends income			42				1,313
Gains on disposal of financial assets			—				850
Gains on valuation of financial assets at fair value through profit or loss			6,225				4,961
Gains on valuation of derivatives			559,180				164,543
Gains on transaction of derivatives			39,897				35,144
Gains on foreign currency translation			124,239				29,293
Gains on foreign currency transactions			4,527				4,167
Others			149				—
		W	800,765				301,575

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March 31, 2020

(Unaudited)

39. Finance Expenses

Finance expenses for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020				March 31, 2019
Interest expense		W	516,383				503,377
Losses on sale of financial assets			47				58
Losses on valuation of financial assets at fair value through profit or loss			225				696
Losses on valuation of derivatives			82,185				8,966
Losses on transaction of derivatives			11,981				9,662
Losses on foreign currency translation			808,759				169,807
Losses on foreign currency transactions			3,867				4,524
Others			589				1,686
		W	1,424,036				698,776

Capitalization rates for the three-month periods ended March 31, 2020 and 2019 are 2.50%~4.60% and 2.37%~3.86% respectively.

40. Income Taxes

Income tax expense (benefit) 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 average effective tax rate for the current period is 63.02%, and for the previous period, the Group did not calculate the average effective tax rate, because income tax benefit occurred for the period.

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March 31, 2020

(Unaudited)

41. Assets Held-for-Sale

Assets held-for-sale as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Land		W	23,002				23,002
Buildings			—				193
Investment stocks (*1, 2)			288				4,921
		W	23,290				28,116

(*1) Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of March 31, 2020 and has been reclassified to assets held-for-sale, during the year ended December 31, 2019.

(*2) Garolim Tidal Power Plant Co., Ltd. was in the process of liquidating its business as of March 31, 2020 and has been reclassified to assets held-for-sale, during the year ended December 31, 2019.

42. Expenses Classified by Nature

Expenses classified by nature for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				3,790,815				3,790,815
Salaries			196,094				1,035,352				1,231,446
Retirement benefit expense			19,145				101,753				120,898
Welfare and benefit expense			28,128				112,575				140,703
Insurance expense			2,579				22,998				25,577
Depreciation			53,126				2,745,824				2,798,950
Amortization of intangible assets			17,322				20,793				38,115
Bad debts expense			18,477				—				18,477
Commission			108,417				114,978				223,395
Advertising expense			5,409				1,309				6,718
Training expense			983				2,019				3,002
Vehicle maintenance expense			2,097				1,805				3,902
Publishing expense			837				772				1,609
Business promotion expense			834				899				1,733
Rent expense			5,586				14,459				20,045
Telecommunication expense			2,195				2,747				4,942
Transportation expense			428				1,357				1,785
Taxes and dues			7,148				91,965				99,113
Expendable supplies expense			1,939				10,170				12,109
Water, light and heating expense			4,479				8,303				12,782
Repairs and maintenance expense			13,614				532,266				545,880
Ordinary development expense			41,970				112,500				154,470
Travel expense			3,458				16,382				19,840
Clothing expense			696				571				1,267
Survey and analysis expense			188				754				942
Membership fee			541				4,493				5,034
Power purchase			—				4,819,457				4,819,457
Others			30,108				529,459				559,567
		W	565,798				14,096,775				14,662,573

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March 31, 2020

(Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the three-month periods ended March 31, 2020 and 2019 are as follows, continued:

In millions of won		March 31, 2019
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				4,735,035				4,735,035
Salaries			196,655				885,072				1,081,727
Retirement benefit expense			17,203				97,728				114,931
Welfare and benefit expense			27,690				99,274				126,964
Insurance expense			3,019				23,480				26,499
Depreciation			59,055				2,558,314				2,617,369
Amortization of intangible assets			13,964				22,862				36,826
Bad debts expense			4,952				—				4,952
Commission			179,967				83,966				263,933
Advertising expense			6,883				1,588				8,471
Training expense			1,553				2,545				4,098
Vehicle maintenance expense			2,866				1,629				4,495
Publishing expense			1,439				704				2,143
Business promotion expense			771				1,034				1,805
Rent expense			6,882				44,619				51,501
Telecommunication expense			2,265				2,456				4,721
Transportation expense			211				1,253				1,464
Taxes and dues			4,016				88,175				92,191
Expendable supplies expense			1,753				5,940				7,693
Water, light and heating expense			4,455				10,833				15,288
Repairs and maintenance expense			12,731				403,549				416,280
Ordinary development expense			41,030				113,407				154,437
Travel expense			4,509				16,131				20,640
Clothing expense			443				1,468				1,911
Survey and analysis expense			217				748				965
Membership fee			434				4,201				4,635
Power purchase			—				5,538,651				5,538,651
Others			31,413				507,246				538,659
		W	626,376				15,251,908				15,878,284

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March 31, 2020

(Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three-month periods ended March 31, 2020 and 2019 are as follows:

In won
Type		March 31, 2020				March 31, 2019
Basic earnings (loss) per share		W	36				(1,227	)

(2) Net 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-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won except number of shares
Type		March 31, 2020				March 31, 2019
Net income (loss) attributable to controlling interest		W	22,979				(787,798	)
Profit (loss) used in the calculation of total basic earnings per share			22,979				(787,798	)
Weighted average number of common shares			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-month periods ended March 31, 2020 and 2019 are as follows:

In number of shares
Type		March 31, 2020				March 31, 2019
The number of common shares issued at beginning of the year			641,964,077				641,964,077
Weighted average number of common shares			641,964,077				641,964,077

(4) There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the three-month periods ended March 31, 2020 and 2019.

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March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Total borrowings and debt securities		W	68,988,307				67,876,541
Cash and cash equivalents			1,458,491				1,810,129
Net borrowings and debt securities			67,529,816				66,066,412
Total shareholder’s equity		W	68,822,118				68,889,649
Debt to equity ratio			98.12	%			95.90	%

(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), 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 are 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 counterparty 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.

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March 31, 2020

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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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020				December 31, 2019
Cash and cash equivalents		W	1,458,491				1,810,129
Financial assets at fair value through profit or loss			1,975,549				747,261
Derivative assets (trading)			450,597				165,204
Financial assets at amortized cost			13,633				13,609
Loans			762,241				738,707
Long-term/short-term financial instruments			2,537,766				1,960,227
Derivative assets (applying hedge accounting)			405,696				145,829
Trade and other receivables			8,733,850				9,703,749
Financial guarantee contracts (*)			3,222,218				3,338,566

(*) 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.

(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% increase and decrease movements in the actuarial valuation assumptions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won				March 31, 2020								December 31, 2019
Type		Accounts		1% Increase				1% Decrease				1% Increase				1% Decrease
Future salary increases		Increase (decrease) in defined benefit obligation		W	444,505				(415,592	)			442,748				(386,147	)
Discount rate		Increase (decrease) in defined benefit obligation			(424,589	)			469,133				(402,099	)			475,765

Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the three-month periods ended March 31, 2020 and 2019 are W5,236 million and W4,435 million, respectively.

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March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Provisions

Changes in provisions due to movements in underlying assumptions as of March 31, 2020 and December 31, 2019 are as follows:

Type		Accounts		March 31, 2020				December 31, 2019
PCBs		Inflation rate			1.09	%			1.09	%
		Discount rate			1.97	%			1.97	%
Nuclear plants		Inflation rate			1.10	%			1.10	%
		Discount rate			2.43	%			2.43	%
Spent fuel		Inflation rate			2.93	%			2.93	%
		Discount rate			4.49	%			4.49	%

A sensitivity analysis of provisions assuming a 0.1% increase and decrease movements in the underlying assumptions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won				March 31, 2020								December 31, 2019
Type		Accounts		0.1% Increase				0.1% Decrease				0.1% Increase				0.1% Decrease
Discount rate		PCBs		W	(491	)			493				(527	)			530
		Nuclear plants			(314,222	)			323,763				(316,184	)			325,828
		Spent fuel			(51,534	)			53,545				(51,607	)			53,621
Inflation rate		PCBs			497				(495	)			534				(532	)
		Nuclear plants			348,165				(338,206	)			346,082				(336,182	)
		Spent fuel			54,319				(52,350	)			54,396				(52,424	)

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Management judgement affected 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 March 31, 2020 and December 31, 2019 are as follows:

In thousands of foreign currencies		Assets								Liabilities
Type		March 31, 2020				December 31, 2019				March 31, 2020				December 31, 2019
AED			56,827				57,403				23,213				40,061
AUD			141				143				622,752				1,036,785
BDT			87,885				85,547				692				635
BWP			1,037				1,437				—				—
CAD			207				86				2,158				3,112
CHF			—				—				500,717				500,753
CNY			—				—				26,140				26,140
CZK			—				—				2,198				243
EUR			1,136				208				55,063				111,199
GBP			—				—				88				191
HKD			—				—				1,648,846				1,648,815
IDR			120,976				376,136				23,886				219,801
INR			1,225,870				1,244,170				210,688				210,232
JOD			2,046				1,516				976				147
JPY			226,999				109,970				11,808				314,402
KZT			319				319				—				—
MGA			4,960,475				3,858,201				92,283				133,403
MMK			19,563				29,651				—				—
PHP			175,977				175,210				141,860				130,073
PKR			391,470				354,361				4,144				4,366
SAR			2,432				2,653				—				480
SEK			—				—				451,892				449,072
USD			1,288,156				1,227,054				10,967,882				9,963,928
UYU			120,291				58,781				5,150				8,213
VND			666,535				418,998				—				1,375
ZAR			328				450				3				6

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
Type		10% Increase				10% Decrease				10% Increase				10% Decrease
Increase (decrease) of profit before income tax		W	(1,329,232	)			1,329,232				(1,197,530	)			1,197,530
Increase (decrease) of shareholder’s equity (*)			(1,329,232	)			1,329,232				(1,197,530	)			1,197,530

(*) 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 March 31, 2020 and December 31, 2019. To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into cross-currency swap 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.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Interest rate risk

The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1% 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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Type		March 31, 2020				December 31, 2019
Short-term borrowings		W	6,742				—
Long-term borrowings			2,318,442				2,273,579
Debt securities			225,771				243,102
		W	2,550,955				2,516,681

A sensitivity analysis on the Group’s long-term borrowings and debt securities assuming a 1% increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	(6,377	)			6,377				(25,167	)			25,167
Increase (decrease) of shareholder’s equity (*)			(6,377	)			6,377				(25,167	)			25,167

(*) The effect on the shareholders’ equity excluding the impact of income taxes.

To manage its interest rate risks, the Group enters into certain interest swap agreements or maintains an appropriate mix of fixed and floating rate borrowings. These sensitivity analyses above are conducted without consideration of hedge effect of related derivatives.

③ Electricity rates risk

The Group is exposed to electricity rates risk due to the rate regulation of the government which considers the effect of electricity rate on 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 three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020								March 31, 2019
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	143,044				(143,044	)			144,375				(144,375	)
Increase (decrease) of shareholder’s equity (*)			143,044				(143,044	)			144,375				(144,375	)

(*) The effect on the shareholder’s equity excluding the impact of income taxes.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

(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.

In millions of won		March 31, 2020
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	9,596,848				11,412,828				26,557,863				34,016,596				81,584,135
Lease liabilities			703,062				651,962				1,786,363				2,851,619				5,993,006
Trade and other payables			4,993,486				836,799				659,569				1,086,471				7,576,325
Financial guarantee contracts (*)			1,004,459				—				44,998				2,172,761				3,222,218
		W	16,297,855				12,901,589				29,048,793				40,127,447				98,375,684

In millions of won		December 31, 2019
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	10,660,737				10,997,510				27,881,873				30,859,669				80,399,789
Lease liabilities			686,445				617,449				1,717,434				2,735,681				5,757,009
Trade and other payables			6,014,054				382,809				971,469				1,176,697				8,545,029
Financial guarantee contracts (*)			937,091				302,186				32,314				2,066,975				3,338,566
		W	18,298,327				12,299,954				30,603,090				36,839,022				98,040,393

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of March 31, 2020 and December 31, 2019 are W76,913 million and W81,357 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019. 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 March 31, 2020 and December 31, 2019 in detail are as follows:

In millions of won		March 31, 2020
Type		Less than 1 year				1~5 Years				More than 5 years				Others (*)				Total
Cash and cash equivalents		W	1,458,491				—				—				—				1,458,491
Financial assets at fair value through other comprehensive income			—				—				—				304,425				304,425
Financial assets at amortized cost			12,316				1,317				—				—				13,633
Loans			73,383				349,155				347,235				27,981				797,754
Long-term/short-term financial instruments			1,915,475				265,700				—				356,591				2,537,766
Financial assets at fair value through profit or loss			1,313,009				31,014				—				631,526				1,975,549
Trade and other receivables			6,675,749				1,023,467				857,503				184,204				8,740,923
		W	11,448,423				1,670,653				1,204,738				1,504,727				15,828,541

In millions of won		December 31, 2019
Type		Less than 1 year				1~5 Years				More than 5 years				Others (*)				Total
Cash and cash equivalents		W	1,810,129				—				—				—				1,810,129
Financial assets at fair value through other comprehensive income			—				—				—				379,170				379,170
Financial assets at amortized cost			12,302				1,307				—				—				13,609
Loans			64,081				346,583				336,502				27,606				774,772
Long-term/short-term financial instruments			1,351,971				269,863				—				338,393				1,960,227
Financial assets at fair value through profit or loss			131,385				79				—				615,797				747,261
Trade and other receivables			7,703,746				980,951				818,431				207,979				9,711,107
		W	11,073,614				1,598,783				1,154,933				1,568,945				15,396,275

(*) The maturities cannot be presently determined.

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March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Derivative liabilities classified by maturity periods from reporting date to maturity date of contract as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	(6,205	)			—				—				(1,009	)			(7,214	)
Gross settlement
- Trading			(8,164	)			(8,794	)			(52,057	)			(9,557	)			(78,572	)
- Hedging			(83,378	)			(1,304	)			(3,443	)			(52,184	)			(140,309	)
		W	(97,747	)			(10,098	)			(55,500	)			(62,750	)			(226,095	)

In millions of won		December 31, 2019
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	(3,017	)			—				—				—				(3,017	)
Gross settlement
- Trading			(15,011	)			(8,295	)			(39,654	)			4,235				(58,725	)
- Hedging			(59,846	)			(21,466	)			(1,914	)			(33,588	)			(116,814	)
		W	(77,874	)			(29,761	)			(41,568	)			(29,353	)			(178,556	)

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 arms-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.

In the case of trade receivables and payables, the Group considers the carrying value net of impairment as fair value. For disclosure purposes, the fair value of financial liabilities is estimated by discounting financial instruments with similar contractual cash flows based on the effective interest method.

(i) Fair value and book value of financial assets and liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
Type		Book value				Fair value				Book value				Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income		W	304,425				304,425				379,170				379,170
Derivative assets (trading)			450,597				450,597				165,204				165,204
Derivative assets (applying hedge accounting)			405,696				405,696				145,829				145,829
Financial assets at fair value through profit or loss			1,975,549				1,975,549				747,261				747,261
		W	3,136,267				3,136,267				1,437,464				1,437,464
Assets carried at amortized cost
Financial assets at amortized cost		W	13,633				13,633				13,609				13,609
Loans and receivables			762,241				762,241				738,707				738,707
Trade and other receivables			8,733,850				8,733,850				9,703,749				9,703,749
Long-term financial instruments			622,291				622,291				608,256				608,256
Short-term financial instruments			1,915,475				1,915,475				1,351,971				1,351,971
Cash and cash equivalents			1,458,491				1,458,491				1,810,129				1,810,129
		W	13,505,981				13,505,981				14,226,421				14,226,421
Liabilities recognized at fair value
Derivative liabilities (trading)		W	85,023				85,023				53,147				53,147
Derivative liabilities (applying hedge accounting)			140,308				140,308				116,813				116,813
		W	225,331				225,331				169,960				169,960
Liabilities carried at amortized cost
Secured borrowings		W	219,525				219,525				227,135				227,135
Unsecured bond			65,095,992				68,548,899				63,171,664				66,917,421
Lease liabilities			5,214,923				5,214,923				5,070,133				5,070,133
Unsecured borrowings			3,658,441				3,667,699				4,104,523				4,113,955
Trade and other payables (*)			7,576,325				7,576,325				8,545,029				8,545,029
Bank overdraft			14,349				14,349				373,219				373,219
		W	81,779,555				85,241,720				81,491,703				85,246,892

(*) Excludes lease liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows:

Type		March 31, 2020		December 31, 2019
Derivatives		0.01% ~ 4.16%		0.01% ~ 4.16%
Borrowings and debt securities		0.20% ~ 4.63%		0.17% ~ 3.90%
Leases		1.37% ~ 10.83%		1.38% ~ 10.83%

(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 levels as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	127,027				—				177,398				304,425
Derivative assets			—				853,659				2,634				856,293
Financial assets at fair value through profit or loss			—				1,970,045				5,504				1,975,549
		W	127,027				2,823,704				185,536				3,136,267
Financial liabilities at fair value
Derivative liabilities		W	—				225,331				—				225,331

In millions of won		December 31, 2019
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	201,202				—				177,968				379,170
Derivative assets			—				308,399				2,634				311,033
Financial assets at fair value through profit or loss			—				742,105				5,156				747,261
		W	201,202				1,050,504				185,758				1,437,464
Financial liabilities at fair value
Derivative liabilities		W	—				169,960				—				169,960

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

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.

Changes of financial assets and liabilities which are classified as level 3 for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		March 31, 2020
		Beginning balance				Effect of change in accounting policy				Acquisitions				Reclassified category				Valuation				Disposal				Foreign currency translation				Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative		W	5,156				—				354				—				(6	)			—				—				5,504
Financial assets at fair value through other comprehensive income Unlisted securities			177,968				—				—				—				(141	)			—				(429	)			177,398

In millions of won		December 31, 2019
		Beginning balance				Effect of change in accounting policy				Acquisitions				Reclassified category				Valuation				Disposal				Foreign currency translation				Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative		W	5,052				—				40				—				64				—				—				5,156
Financial assets at fair value through other comprehensive income Unlisted securities			189,439				—				1,876				—				3,715				(19,315	)			2,253				177,968

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

45. Service Concession Arrangements

(1) Gas Complex • Thermal Power Plant at Ilijan, Philippines (BOT)

(i) Significant terms and concession period of the arrangement

The Group has entered into a contract with National Power Corporation (the “NPC”), based in the Republic of the Philippines whereby the Group can collect the electricity rates which are composed of fixed costs and variable costs during the concession period from 2002 to 2022 after building, rehabilitating, and operating the power plant.

(ii) Rights and classification of the arrangement

The Group has the rights to use and own the power plant during the concession period from 2002 to 2022. At the end of the concession period, the Group has an obligation to transfer its ownership of the power plant to NPC.

(iii) The Group’s expected future collections of service concession arrangements as of March 31, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	127,706
1~2 years			127,706
More than 2 years			21,284
		W	276,696

(2) Hydroelectric Power Generation at Semangka, Indonesia (BOT)

(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 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, own and operate 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) The Group’s expected future collections of service concession arrangements as of March 31, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	30,445
1~2 years			30,478
2~3 years			30,513
Over 3 years			611,039
		W	702,475

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties

(1) Related parties of the Group as of March 31, 2020 are as follows:

Type		Related party
Parent		Republic of Korea government
Subsidiaries (120 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., KOREA Imouraren Uranium Investment Corp., 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., KOSEP USA, Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, EWP Philippines Corporation, 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, DG Fairhaven Power, LLC, DG Whitefield, LLC, EWP Renewable Corporation, EWPRC Biomass Holdings, LLC, Springfield Power, LLC, HeeMang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., VI Carbon Professional Private Special Asset Investment Trust 1, Chitose Solar Power Plant LLC., Solar School Plant Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Limitada, 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 Solar of Alamosa, LLC, KEPCO-LG CNS Mangilao Holdings LLC, Mangilao Investment LLC, KEPCO-LG CNS 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
Associates (71 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., Naepo Green Energy Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Cheongna Energy 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, Hyundai Energy Co., Ltd., Ecollite Co., Ltd., 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., Hadong Mineral Fiber 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., Korea Electric Vehicle Charging Service, Korea Nuclear Partners Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., YaksuESS 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., KPGE Inc., Gwangbaek Solar Power Investment Co., Ltd., Goduk Clean Energy Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd.
Joint ventures (67 joint ventures)		Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Jeongam 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 P.J.S.C., 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, Taebaek Gadeoksan Wind Power Co., Ltd., 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 AB, Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Solaseado Solar Power Co., Ltd.
Others (3 others)		Korea Development Bank, Ulleungdo Natural Energy Co., Ltd., Garolim Tidal Power Plant Co., Ltd.

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(2) Transactions between the Group and its subsidiaries are eliminated during the consolidation and are not disclosed in the notes.

(3) Related party transactions for the three-month periods ended March 31, 2020 and 2019 are as follows:

<Sales and Others>

In millions of won				Sales and others
Company name		Transaction type		March 31, 2020				March 31, 2019
<Associates>
Korea Gas Corporation		Electricity sales		W	32,422				52,311
GS Donghae Power Co., Ltd.		Electricity sales			14,197				21,817
Dongducheon Dream Power Co., Ltd.		Electricity sales			1,907				1,571
S-Power Co., Ltd.		Service			1,522				1,780
Hyundai Green Power Co., Ltd.		Design service			10,262				10,037
Korea Electric Power Industrial Development Co., Ltd.		Service			3,857				3,374
Daeryun Power Co., Ltd.		Electricity sales			496				509
Shin Pyeongtaek Power Co., Ltd.		Electricity sales			5,504				3,683
Korea Power Exchange		Service			4,186				1,443
Cheongna Energy Co., Ltd.		Service			2,828				5,574
Gangwon Wind Power Co., Ltd.		Electricity sales			2,015				2,299
Noeul Green Energy Co., Ltd.		Electricity sales			8				8
Gosung Green Power Co., Ltd.		Electricity sales			3,364				2,104
Busan Green Energy Co., Ltd.		Electricity sales			4				4
Samcheok Eco Materials Co., Ltd.		Electricity sales			183				189
Others (Taebaek Wind Power Co., Ltd. and 19 others)		Electricity sales			14,220				5,890
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales			569				365
Daegu Green Power Co., Ltd.		Electricity sales			306				245
KAPES, Inc.		Commission			96				111
Rabigh Electricity Company		Service			89				12,186
Nawah Energy Company P.J.S.C.		Service			40,600				22,359
KEPCO SPC Power Corporation		Others			332				1,023
Seokmun Energy Co., Ltd.		Service			759				354
Amman Asia Electric Power Company		Others			4,765				4,886
Kelar S.A.		Service			62				1,016
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales			441				423
Yeonggwang Wind Power Co., Ltd.		Electricity sales			241				34
Others (Honam Wind Power Co., Ltd. and 23 others)		Electricity sales			162,814				12,144
<Others>
Korea Development Bank		Electricity sales			861				933
		Interest income			2,439				96

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the three-month periods ended March 31, 2020 and 2019 are as follows, continued:

<Purchase and Others>

In millions of won				Purchase and others
Company name		Transaction type		March 31, 2020				March 31, 2019
<Associates>
Korea Gas Corporation		Electricity sales		W	1,134,037				1,339,296
GS Donghae Power Co., Ltd.		Electricity sales			183,028				193,197
Dongducheon Dream Power Co., Ltd.		Electricity sales			182,247				207,255
S-Power Co., Ltd.		Service			139,691				172,043
Hyundai Green Power Co., Ltd.		Design service			119,667				108,993
Korea Electric Power Industrial Development Co., Ltd.		Service			36,943				63,038
Daeryun Power Co., Ltd.		Electricity sales			33,063				52,402
Shin Pyeongtaek Power Co., Ltd.		Electricity sales			181,577				—
Korea Power Exchange		Service			24,971				42,875
Cheongna Energy Co., Ltd.		Service			60				56
Gangwon Wind Power Co., Ltd.		Electricity sales			6,326				7,984
Noeul Green Energy Co., Ltd.		Electricity sales			2,883				3,306
Busan Green Energy Co., Ltd.		Electricity sales			5,399				4,839
Samcheok Eco Materials Co., Ltd.		Electricity sales			2,776				11,183
Others (Taebaek Wind Power Co., Ltd. and 19 others)		Electricity sales			15,097				13,095
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales			81,900				103,152
Daegu Green Power Co., Ltd.		Electricity sales			76,443				100,682
KAPES, Inc.		Commission			29,805				15,074
Seokmun Energy Co., Ltd.		Service			13,240				6,723
Amman Asia Electric Power Company		Others			143				—
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales			4,081				3,475
Yeonggwang Wind Power Co., Ltd.		Electricity sales			6,807				5,438
Others (Honam Wind Power Co., Ltd. and 23 others)		Electricity sales			8,536				4,677
<Others>
Korea Development Bank		Interest expense			1,155				1,132
		Dividends paid			—				1

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won				Receivables								Payables
Company name		Type		March 31, 2020				December 31, 2019				March 31, 2020				December 31, 2019
<Associates>
Korea Gas Corporation		Trade receivables		W	6,424				9,267				—				—
		Non-trade receivables and others			7,275				38				—				—
		Trade payables			—				—				363,709				462,138
		Non-trade payables and others			—				—				389				560
Dongducheon Dream Power Co., Ltd.		Trade receivables			637				323				—				—
		Non-trade receivables and others			213				267				—				—
		Trade payables			—				—				43,181				85,920
		Non-trade payables and others			—				—				13				12
Goseong Green Power Co., Ltd.		Trade receivables			135				103				—				—
		Non-trade receivables and others			5,286				5,285				—				—
		Non-trade payables and others			—				—				65,627				65,626
GS Donghae Electric power Co., Ltd.		Trade receivables			312				175				—				—
		Non-trade receivables and others			13,137				367				—				—
		Trade payables			—				—				46,321				69,811
		Non-trade payables and others			—				—				21				16
Shin Pyeongtaek Power Co., Ltd.		Trade receivables			1,247				1,014				—				—
		Non-trade receivables and others			2,290				2,281				—				—
		Trade payables			—				—				61,648				64,696
		Non-trade payables and others			—				—				495				61
S-Power Co., Ltd.		Trade receivables			111				89				—				—
		Non-trade receivables and others			46				43				—				—
		Trade payables			—				—				45,172				53,705
Hyundai Green Power Co., Ltd.		Trade receivables			667				502				—				—
		Trade payables			—				—				35,743				41,587
Hyundai Energy Co., Ltd.		Trade receivables			123				128				—				—
		Non-trade receivables and others			12,046				12,532				—				—
		Trade payables			—				—				255				175
		Non-trade payables and others			—				—				9,718				9,178
Daeryun Power Co., Ltd.		Trade receivables			156				144				—				—
		Trade payables			—				—				6,747				19,843
Korea Electric Power Industrial Development Co., Ltd.		Trade receivables			359				243				—				—
		Non-trade receivables and others			2,164				43				—				—
		Trade payables			—				—				3,435				3,756
		Non-trade payables and others			—				—				2,802				3,827
Korea Power Exchange		Trade receivables			1,280				1,142				—				—
		Non-trade receivables and others			41				144				—				—
		Trade payables			—				—				1,256				—
		Non-trade payables and others			—				—				35,576				4,160
Others (Gangwon Wind Power Co., Ltd. and 29 others)		Trade receivables			2,160				1,536				—				—
		Non-trade receivables and others			12,019				6,191				—				—
		Trade payables			—				—				3,807				4,568
		Non-trade payables and others			—				—				3,045				2,983

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won				Receivables								Payables
Company name		Type		March 31, 2020				December 31, 2019				March 31, 2020				December 31, 2019
<Joint ventures>
KAPES, Inc.		Trade receivables		W	—				1				—				—
		Non-trade payables and others			—				—				16,153				50,738
Nawah Energy Company P.J.S.C.		Trade receivables			66,029				43,312				—				—
		Non-trade receivables and others			1,116				47				—				—
Daegu Green Power Co., Ltd.		Trade receivables			124				113				—				—
		Non-trade receivables and others			1				1				—				—
		Trade payables			—				—				25,627				28,980
Chun-cheon Energy Co., Ltd.		Trade receivables			106				260				—				—
		Non-trade receivables and others			214				5,362				—				—
		Trade payables			—				—				25,617				23,438
Amman Asia Electric Power Company		Non-trade payables and others			—				—				18,826				19,096
Kelar S.A.		Trade receivables			—				1,902				—				—
		Non-trade receivables and others			9,040				7,632				—				—
Jamaica Public Service Company Limited		Trade receivables			1,299				6,476				—				—
		Non-trade payables and others			—				—				—				57
Others (Seokmun Energy Co., Ltd. and 17 others)		Trade receivables			679				258				—				—
		Non-trade receivables and others			4,738				8,606				—				—
		Trade payables			—				—				13,771				1,166
		Non-trade payables and others			—				—				65,601				79,369
<Others>
Korea Development Bank		Accrued interest income			2,389				1,630				—				—
		Non-trade receivables and others			160,338				146,416				—				—
		Non-trade payables and others			—				—				289				152
		Derivatives			80,392				41,368				216				6,531

(5) Loans and others arising from related party transactions as of March 31, 2020 and December 31, 2019 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	28,676				54				—				1,485				30,215
		(Allowance for doubtful accounts)			(7,325	)			—				—				(1,977	)			(9,302	)
Associates		PT. Cirebon Electric Power			578				—				(609	)			31				—
Associates		Xe-Pian Xe-Namnoy Power Co., Ltd.			20,955				—				—				1,173				22,128
Associates		PT. Wampu Electric Power			16,502				—				—				1,232				17,734
Associates		Gunsan Bio Energy Co., Ltd.			12,396				—				—				—				12,396
		(Allowance for doubtful accounts)			(10,128	)			—				—				—				(10,128	)
Associates		Hyundai Energy Co., Ltd.			2,465				—				—				—				2,465
		(Allowance for doubtful accounts)			(2,465	)			—				—				—				(2,465	)
Joint ventures		RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			1,055				797				—				59				1,911
Joint ventures		HORUS SOLAR, S.A. DE C.V			3,323				585				—				186				4,094
Joint ventures		SUNMEX RENOVABLES, S.A. DE C.V.			144				122				—				8				274
Joint ventures		Kelar S.A.			42,158				—				—				2,360				44,518
Joint ventures		Chun-cheon Energy Co., Ltd.			5,057				—				(5,057	)			—				—
Joint ventures		DE Energia SpA			6,632				—				—				371				7,003
				W	120,023				1,558				(5,666	)			4,928				120,843

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(6) Borrowings arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Related parties		Type		December 31, 2019				Borrowings				Repayment				Others				March 31, 2020
Korea Development		Facility		W	59,845				—				(2,083	)			—				57,762
Bank		Others			3,500				—				(139	)			—				3,361
		Operating funds			179,000				52,961				(105,000	)			459				127,420
		Syndicated Loan			17,085				—				(1,019	)			1,050				17,116

(7) Guarantees provided to related parties as of March 31, 2020 are as follows:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit		Guarantee
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
Korea Electric Power Corporation		Barakah One Company		Debt guarantees		USD 900,000		Export-Import Bank of Korea and others
				Performance guarantees and others		USD 4,368,904
Korea Electric Power Corporation		RE Holiday Holdings LLC		Performance guarantees		USD 223,000		EPS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation		RE Pioneer Holdings LLC		Performance guarantees		USD 170,000		EPS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation		RE Barren Ridge 1 Holdings LLC		Performance guarantees		USD 149,000		Firstar Development, LLC, Santander Bank and others
Korea Electric Power Corporation		Rabigh Electricity Company		Performance guarantees		SAR 6,508		Hana Bank
Korea Electric Power Corporation				Debt guarantees		SAR 80,000
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
Korea Western Power Co., Ltd.		Cheongna Energy Co., Ltd.		Collateralized money invested		KRW 4,962		Hana Bank and others
				Guarantees for supplemental funding and others (*1)		—
Korea Western Power Co., Ltd.		Xe-Pian Xe-Namnoy Power Co., Ltd.		Payment guarantees for business reserve		USD 2,500		Krung Thai Bank
				Collateralized money invested		KRW 76,543
				Impounding bonus guarantees		USD 5,000		SK E&C
Korea Western Power Co., Ltd.		Rabigh Operation & Maintenance Company Limited		Performance guarantees and others		SAR 5,600		Saudi Arabia British Bank
Korea Western Power Co., Ltd.		Daegu Photovoltaic Co., Ltd.		Collateralized money invested		KRW 1,849		Korea Development Bank
Korea Western Power Co., Ltd.		Dongducheon Dream Power Co., Ltd.		Collateralized money invested (*7) Debt guarantees		KRW 48,250 KRW 20,300		Kookmin Bank and others BNK Securities
Korea Western Power Co., Ltd.		PT. Mutiara Jawa		Collateralized money invested		KRW 569		Woori Bank
Korea Western Power Co., Ltd.		Haeng Bok Do Si Photovoltaic Power Co., Ltd.		Collateralized money invested		KRW 209		Nonghyup Bank
Korea Western Power Co., Ltd.		Shin Pyeongtaek Power Co., Ltd.		Collateralized money invested		KRW 74,694		Kookmin Bank
				Guarantees for supplemental funding (*1)		—		Kookmin Bank and others

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit		Guarantee
Korea East-West Power Co., Ltd.		Busan Shinho Solar Power Co., Ltd.		Collateralized money invested		KRW 4,863		Korea Development Bank and others
Korea East-West Power Co., Ltd.		Seokmun Energy Co., Ltd.		Collateralized money invested		KRW 16,373		Kookmin Bank and others
				Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.		Chun-cheon Energy Co., Ltd.		Collateralized money invested		KRW 32,645		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 4,134		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 250,335		Korea Development Bank and others
				Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.		Yeonggwangbaeksu Wind Power Co., Ltd.		Collateralized money invested		KRW 3,245		Kookmin Bank and others
Korea East-West Power Co., Ltd.		Yeonggwang Wind Power Co., Ltd.		Collateralized money invested		KRW 18,388		KDB Capital Corporation and others
				Guarantees for supplemental funding (*1)		—
Korea East-West Power Co., Ltd.		Daesan Green Energy Co., Ltd.		Collateralized money invested		KRW 17,133		IBK
				Guarantees for supplemental funding (*1)		KRW 18,989		IBK
Korea East-West Power Co., Ltd.		Taebaek Gadeoksan Wind Power Co., Ltd.		Collateralized money invested		KRW 8,133		Samsung Fire & Marine Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.		PT. Tanjung Power Indonesia		Debt guarantees		USD 24,544		Sumitomo mitsui banking
				Other guarantees		USD 3,150		PT Adaro Indonesia
				Guarantees for supplemental funding (*1)		—		Sumitomo mitsui banking and others
				Collateralized money invested		KRW 31,511		MUFG and others
Korea East-West Power Co., Ltd.		South Jamaica Power Company Limited		Performance guarantees		USD 14,400		Societe Generale
				Collateralized money invested		KRW 22,506		JCSD Trustee Services Limited and others
EWP Barbados 1 SRL		South Jamaica Power Company Limited		Guarantees for supplemental funding (*1, 3)		—		JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.		DE Energia SpA		Collateralized money invested		KRW 9,665		Mirae Asset Daewoo Co., Ltd. and others
Korea East-West Power Co., Ltd.				Debt guarantees		USD 5,728
Korea Southern Power Co., Ltd.		KNH Solar Co., Ltd.		Collateralized money invested		KRW 2,268		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 26,651		Korea Development Bank and others
				Guarantees for supplemental funding and others (*1)		KRW 8,000
Korea Southern Power Co., Ltd.		Daegu Green Power Co., Ltd.		Collateralized money invested		KRW 25,623		Shinhan Bank and others
				Performance guarantees		—
Korea Southern Power Co., Ltd.		Kelar S.A.		Performance guarantees		USD 61,692		Hana Bank, MUFG
Korea Southern Power Co., Ltd.		Daehan Wind Power PSC		Debt guarantees (*9)		USD 16,000		Shinhan Bank
				Performance guarantees		USD 3,600
				Debt guarantees (*9)		USD 240
				Performance Debt guarantees (*9)		USD 1,898		Hana Bank
Korea Southern Power Co., Ltd.		Pyeongchang Wind Power Co., Ltd.		Collateralized money invested		KRW 5,080		Woori Bank and Shinhan Bank and others
				Performance guarantees		—

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit		Guarantee
Korea Southern Power Co., Ltd.		Taebaek Guinemi Wind Power Co., Ltd.		Collateralized money invested		KRW 2,754		IBK
				Guarantees for supplemental funding (*1)		—
Korea Southern Power Co., Ltd.		Jeongam Wind Power Co., Ltd.		Guarantees for supplemental funding (*1) and performance guarantees		—		SK Securities.Co., LTD., KDB Capital Corporation, and others
				Collateralized money invested		KRW 4,410
Korea Southern Power Co., Ltd.		Samcheok Eco Materials Co., Ltd.		Payment guarantees (*4)		—		SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.		Solaseado Solar Power Co., Ltd.		Collateralized money invested		KRW 3,751		Kookmin Bank and others
Kospo Chile SpA		Kelar S.A.		Collateralized money invested		KRW 79,789		Export-Import Bank of Korea and others
		Chester Solar I SpA		Collateralized money invested		KRW 1,068		IBK
		Chester Solar IV SpA		Collateralized money invested		KRW 107
		Chester Solar V SpA		Collateralized money invested		KRW 5
		Diego de Almagro Solar Spa		Collateralized money invested		KRW 452
		Laurel SpA		Collateralized money invested		KRW 355
Korea Midland Power Co., Ltd.		YeongGwang Yaksu Wind Electric. Co., Ltd.		Collateralized money invested		KRW 380		IBK and others
Korea Midland Power Co., Ltd.		Hyundai Green Power Co., Ltd.		Collateralized money invested		KRW 123,434		Korea Development Bank and others
Korea Midland Power Co., Ltd.		PT. Cirebon Electric Power		Debt guarantees		USD 10,560		Mizuho Bank
Korea Midland Power Co., Ltd.		PT. Wampu Electric Power		Debt guarantees		USD 4,854		SMBC
Korea Midland Power Co., Ltd.		Green Energy Electricity Generation Co., Ltd.		Collateralized money invested		KRW 15		IBK
				Guarantees for supplemental funding and others (*1)		—		IBK and others
Korea Midland Power Co., Ltd.		YaksuESS Co., Ltd.		Collateralized money invested		KRW 614		IBK
Korea Midland Power Co., Ltd.		Namjeongsusang Solar Power Operation Co., Ltd.		Collateralized money invested		KRW 621		IBK
Korea Midland Power Co., Ltd.		Gwangbaek Solar Power Investment Co., Ltd.		Collateralized money invested		KRW 4,654		Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.		Muan Sunshine Solar Power Plant Co., Ltd.		Collateralized money invested		KRW 1,570		IBK
Korea South-East Power Co., Ltd.		Hyundai Energy Co., Ltd.		Collateralized money invested (*5)		—		IBK
				Guarantees for supplemental funding and others (*1, 6)		KRW 76,800		NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.		S-Power Co., Ltd.		Collateralized money invested		KRW 118,140		Korea Development Bank and others
Korea South-East Power Co., Ltd.		RES Technology AD		Collateralized money invested		KRW 17,056		UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		ASM-BG Investicii AD		Collateralized money invested		KRW 20,583		UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		Expressway Solar-light Power Generation Co., Ltd.		Guarantees for supplemental funding (*1, 2)		KRW 2,500		Woori Bank
Korea South-East Power Co., Ltd.		Goseong Green Power Co., Ltd.		Collateralized money invested		KRW 2,308		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Gangneung Eco Power Co., Ltd.		Collateralized money invested		KRW 2,411		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		PND solar., Ltd.		Collateralized money invested		KRW 988		IBK
Korea South-East Power Co., Ltd.		Hyundai Eco Energy Co., Ltd.		Collateralized money invested		KRW 3,595		Samsung Life Insurance and others
Korea South-East Power Co., Ltd.		Jaeun Resident Wind Power Plant Co., Ltd.		Collateralized money invested		KRW 2,376		IBK
Korea South-East Power Co., Ltd.		Cheongsong Myeonbongsan Wind Power Plant Co., Ltd.		Collateralized money invested		KRW 4,303		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Youngam Solar Power Co., Ltd.		Collateralized money invested		KRW 6,460		Kookmin Bank and others
Korea South-East Power Co., Ltd.		Samsu Wind Power Co., Ltd.		Collateralized money invested		KRW 2,637		Shinhan Bank and others

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit		Guarantee
Korea Hydro & Nuclear Power Co., Ltd.		Noeul Green Energy Co., Ltd.		Collateralized money invested		KRW 6,723		Hana Bank and others
				Guarantees for supplemental funding (*1)		—
Korea Hydro & Nuclear Power Co., Ltd.		Busan Green Energy Co., Ltd.		Collateralized money invested		KRW 10,028		Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Cheong-Song Noraesan Wind Power Co., Ltd.		Collateralized money invested		KRW 2,664		Woori Bank and others
				Guarantees for supplemental funding (*1)		—
KEPCO Plant Service & Engineering Co., Ltd.		Incheon New Power Co., Ltd.		Collateralized money invested (*8)		—		Shinhan Bank
				Guarantees for supplemental funding (*1)		—

(*1) The Group guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2) The Group has granted the right to Hana Financial Investment Co., Ltd., as an agent for the creditors to Expressway Solar-light Power Generation Co., Ltd. (“ESPG”), to the effect that in the event of acceleration of ESPG’s payment obligations under certain borrowings to such creditors, Hana Financial may demand the Group to dispose of shares in ESPG held by the Group and apply the resulting proceeds to repayment of ESPG’s obligations.

(*3) This includes a guarantee for the shareholder’s capital payment in connection with the business of 190MW gas complex thermal power plant in Jamaica. EWP Barbados 1 SRL’s capital contribution amount is USD 18,400,000 and there is no residual guarantee amount among total collateral limit.

(*4) 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 23, 2020. And promised yield of the preferred stock is guaranteed through the transaction. As of March 31, 2020, the Group has recognized derivative liabilities of W6,205 million related to the 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.

(*5) The Group recognized an impairment loss on all of the equity securities of Hyundai Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W47,067 million.

(*6) Pursuant to the guarantee agreement, the Group recognized other provisions of W28,717 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*7) The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral.

(*8) The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. during the year ended December 31,2019, and the acquisition cost of the securities provided as collateral is W461 million.

(*9) The Group provided a payment guarantee to Daehan Wind Power PSC for reimbursement of Equity Bridge Loan(EBL), opening LC for Debt Service Reserve Account(DSRA), guarantee for the swap termination costs and others.

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March 31, 2020

(Unaudited)

46. Related Parties, Continued

(8) As of March 31, 2020, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of March 31, 2020 are as follows:

(i) Currency Swap

In millions of won and thousands of foreign currencies
Counterparty		Contract year				Contract Amount								Contract interest rate per annum								Contract exchange rate (in won)
						Pay				Receive				Pay				Receive
Korea Development Bank			2019~2024			W	177,600				USD 150,000				1.24	%			2.50	%		W	1,184.00
			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
			2017~2020				114,580				USD 100,000				1.75	%			2.38	%			1,145.80
			2016~2021				121,000				USD 100,000				2.15	%			2.50	%			1,210.00
			2019~2022				112,650				USD 100,000				1.80	%			3.38	%			1,126.50
			2018~2023				320,880				USD 300,000				2.03	%			3.75	%			1,069.60
			2019~2022				117,340				USD 100,000				1.06	%			2.38	%			1,173.40
			2018~2021				212,960				USD 200,000				2.10	%			3.00	%			1,064.80
			2017~2022				113,300				USD 100,000				1.94	%			2.63	%			1,133.00
			2018~2023				169,335				USD 150,000				2.26	%			3.88	%			1,128.90

(ii) Currency forward

In millions of won and thousands of foreign currencies
Counterparty		Contract date				Maturity date				Contract amounts								Contract exchange rate (in won)
										Pay				Receive
Korea Development Bank			2017.12.27				2021.07.12			W	104,849				USD 100,000			W	1,048.49
			2020.03.31				2020.04.27				6,096				USD 5,000				1,219.20
			2020.03.20				2020.04.06				2,519				USD 2,000				1,259.60
			2020.03.24				2020.04.06				1,254				USD 1,000				1,254.00
			2020.03.24				2020.04.02				1,254				USD 1,000				1,254.35
			2020.03.25				2020.04.13				9,841				USD 8,000				1,230.10
			2020.03.26				2020.04.13				4,909				USD 4,000				1,227.25

(10) The Group considers executive directors and executive head officer in charge of planning, operation, control of business activity as the key members of management. Salaries and other compensations to the key members of management of the Group for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won
Type		March 31, 2020				March 31, 2019
Salaries		W	189				216
Employee benefits			14				2
		W	203				218

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March 31, 2020

(Unaudited)

47. Statements of Cash Flows

(1) Significant non-cash transactions for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won
Transactions		March 31, 2020				March 31, 2019
Transfer from construction-in-progress to other assets		W	1,874,217				1,721,968
Recognition of asset retirement cost and related provision for decommissioning costs			114,813				140,718
Transfer from provision for disposal of used nuclear fuel to accrued expenses			149,790				117,402
Change in accounting policy and increase in right-of-use assets			113,871				4,590,988

(2) Changes in liabilities incurred from financing activities for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020
										Non-cash changes
		Beginning balance				Cash flows				Increase				Effect of exchange rate fluctuations and others				Ending balance
Borrowings and debt securities		W	67,876,541				519,362				—				592,404				68,988,307
Lease liabilities			5,070,133				(199,867	)			108,102				236,555				5,214,923
		W	72,946,674				319,495				108,102				828,959				74,203,230

In millions of won		March 31, 2019
										Non-cash changes
		Beginning balance				Cash flows				Increase				Changes in accounting policies				Effect of exchange rate fluctuations and others				Ending balance
Borrowings and debt securities		W	61,034,627				1,909,767				—				—				247,524				63,191,918
Lease liabilities			283,806				(111,403	)			95,508				4,584,555				71,587				4,924,053
		W	61,318,433				1,798,364				95,508				4,584,555				319,111				68,115,971

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March 31, 2020

(Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
Contracts		Amounts				Balance				Amounts				Balance
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)		W	56,408				21,619				56,408				24,721
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)			45,390				32,876				45,390				32,876
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S			36,143				33,020				36,143				36,143
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S			40,010				12,511				40,010				15,300
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S			37,744				2,244				37,744				9,700
Purchase of cable (FR CNCO-W, 1C, 325SQ) 1,400,000			59,716				37,249				59,716				37,249
Purchase of switch (Eco) 9,360 units			40,631				24,031				40,631				24,031
Purchase of cable (TR CNCE-W/AL, 1C, 400SQ) 2,654,400M			36,063				—				36,063				6,243
Construction of Shin-Kori units (#5,6)			8,625,387				4,063,319				8,625,387				4,479,956
Construction of Shin-Hanul units (#1,2)			9,443,635				596,664				8,306,149				—
Other 27 contracts			346,700				116,728				352,710				122,890
Service of designing Seoul Combined units (#1,2)			31,515				2,855				30,778				2,119
Purchase of main machine for construction of Seoul Combined units (#1,2)			331,249				15,216				331,249				15,918
Construction of Seoul Combined units (#1,2)			391,517				24,999				387,722				31,150
Service of designing Shin-Boryeong units (#1,2)			121,163				846				120,668				888
Purchase of main machine for construction of Shin-Boryeong units (#1,2)			816,317				4,048				816,317				4,955
Purchase of furnace for construction of Shin-Seocheon thermal power plant			305,209				37,142				305,209				43,388
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant			105,226				10,275				105,226				10,736
Electricity construction of Shin-Seocheon thermal power plant			231,196				79,483				231,196				87,874
Purchase of main machine for Jeju LNG combined			166,287				11,428				166,287				12,088
Service of designing Taean IGCC plant units			46,101				2,332				46,101				2,332
Service of designing Taean units (#9,10)			112,483				12,862				112,483				12,862
Purchase of furnace for construction of Taean units (#9,10)			556,206				20,403				556,206				17,579
Purchase of turbine generator for construction of Taean units (#9,10)			214,208				13,525				214,208				10,857
Purchase of coal handling machine for construction of Taean (#9,10) and IGCC units (conditional contract for installation)			205,764				282				205,764				282
Purchase of oxygen plant for construction of Taean IGCC units			97,345				1,938				97,345				1,630
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			104,600				104,600				104,600				104,600
Purchase of coal handling machine for construction of Samcheok units (#1,2)			284,497				33,879				282,927				42,785
Purchase of furnace for construction of Samcheok units (#1,2)			1,092,287				11,710				1,066,824				11,771
Purchase of turbine main equipment for Samcheok units (#1,2)			212,188				125				223,550				132
Purchase of main equipment for Namjeju			146,594				54,612				138,486				84,982

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March 31, 2020

(Unaudited)

48. Commitments for Expenditure, Continued

(2) As of March 31, 2020, 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		2020 ~ 2030		32,435 Ton U3O8
Transformed		2020 ~ 2030		18,088 Ton U
Enrichment		2020 ~ 2030		17,667 Ton SWU
Molded (Light)		2020		756 Ton U
Molded (Medium))		2020		401 Ton U
Molded (Initial core)		2020 ~ 2023		415 Ton U

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March 31, 2020

(Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020								December 31, 2019
		Number of cases				Claim amount				Number of cases				Claim amount
As the defendant			636			W	675,571				586			W	697,835
As the plaintiff			199				438,988				199				707,287

A group of plaintiffs (consisting of 2,167 individuals) filed a lawsuit against NSSC (Nuclear Safety and Security Commission) regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal was ongoing as of March 31, 2020. Also, Greenpeace and others filed an administrative litigation against NSSC requesting cancelation of the construction permit of Shin-Kori unit 5 and 6 in September 12, 2016 and lost the lawsuit in February 14, 2019. They appealed the case in March 18, 2019. The Group joined these litigations as a stakeholder after obtaining permission from the Court.

As of March 31, 2020, 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 March 31, 2020.

The Group is the defendant against a number of claims. The following is potentially significant ongoing claims 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. For this reason, the Group recognized W33,536 million as litigation provisions in relation to the lawsuit as of March 31, 2020.

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March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of March 31, 2020 and December 31, 2019 are as follows, continued:

In addition to the abovementioned significant ongoing claims, there are 10 arbitration cases pertaining to the Group as of March 31, 2020 and the significant arbitration cases for the three-month period ended March 31, 2020 are as follows:

① KEPCO and KEPCO KDN Co., Ltd., a subsidiary of KEPCO, have been accused of breach of contract in relation to ERP software, which is provided by SAP Korea Ltd. The litigation was filed in the International Court of Arbitration of the International Chamber of Commerce. The Group recognized W1,056 million of litigation provision in relation to the lawsuit during the year ended December 31, 2019.

② 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.

③ Doosan Heavy Industries & Construction Co., Ltd. and two other companies 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.

(2) Guarantees of payments and commitments provided to other companies as of March 31, 2020 are as follows:

① 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.

② The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and investment guarantee up to USD 43,500 thousand to Mizuho bank and others 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.

③ The Group has provided MUFG Bank, Ltd. (MUFG) borrowing guarantee up to USD 41,258 thousand proportion to its ownership in the equity bridge loan guarantee with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

④ The Group has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank guarantee of mutual investment of USD 2,192 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.

⑤ The Group has provided the Export-Import Bank of Korea and SMBC guarantee of mutual investment of USD 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 PT. Wampu Electric Power, an associate of the Group.

⑥ The Group provides the DekaBank with an investment guarantee of EUR 13,800 thousand to Stavro Vind AB, to enter into a loan contract for the Sweden Wind Power (Stavro) construction operation project.

⑦ The Group is obligated to complete the construction of the waste oil refining for power generation business of Next energy Co., Ltd. (contract amount : W14,700 million) as a construction company. The Group is liable to compensate to financial institution agents for the liquidated damages in case of incompletion of the construction. Also, the Group has made performance guarantee agreement with Next energy Co., Ltd. after the completion of the construction, which obliges the Group to provide supplemental funding if the amount of power generated or the operation time of the power plant does not reach the agreed level. The Group expected outflow of resources is probable due to guarantee of completing the construction. Hence, the Group recognized revenue over time after deducting W5,244 million as the variable consideration for the contract amount of the project.

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March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of March 31, 2020 are as follows:

In millions of won and thousands of foreign currencies
Commitments		Financial institutions		Currency				Limited amount
Commitments on Bank-overdraft		Nonghyup Bank and others			KRW				1,850,500
Commitments on Bank-daylight overdraft		Nonghyup Bank and others			KRW				280,000
Limit amount available for CP		Hana Bank and others			KRW				1,150,000
Limit amount available for card		Hana Bank and others			KRW				30,000
		Banco de Oro			PHP				5,000
Loan limit		Kookmin Bank and others			KRW				1,325,208
		DBS Bank and others			USD				2,472,700
Certification of payment on payables from foreign country		Nonghyup Bank			USD				8,700
Certification of payment on L/C		Shinhan Bank			KRW				7,749
		Shinhan Bank and others			USD				971,934
Certification of Performance guarantee on contract		Seoul Guarantee Insurance and others			KRW				72,782
		First Abu Dhabi Bank and others			USD				599,143
		Korea Development Bank and others			JPY				637,495
		Hana Bank and others			EUR				4,158
		Hana Bank and others			INR				191,883
		Hana Bank			CAD				464
		Shinhan Bank			ZAR				55,730
Certification of bidding		Hana Bank			USD				10,000
Advance payment bond, Warranty bond, Retention bond and others		Seoul Guarantee Insurance			KRW				44,047
		Export-Import Bank of Korea and others			USD				654,435
		Hana Bank			SAR				86,508
		SMBC Bank			QAR				15,000
Others		Nonghyup Bank and others			KRW				554,030
		Export-Import Bank of Korea and others			USD				1,562,194
		Shinhan Bank			JPY				381,210
		Standard Chartered			AED				50
Inclusive credit		Hana Bank			KRW				8,000
		Hana Bank and others			USD				30,722
		Shinhan Bank			INR				92,348
Trade finance		BNP Paribas and others			USD				700,000

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March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(4) As of March 31, 2020, blank check and assets provided as collaterals or pledges to financial institutions by the Group are as follows:

In millions of won and thousands of foreign currencies

Guarantor

Guarantee

Type of guarantee

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)

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 and others

KRW

327,800

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 and others

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)

Incheon Fuel Cell Co., Ltd.

Kookmin Bank and others

Cash and cash equivalents and others

KRW

276,960

Collateral for borrowings (*2)

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

(*2) As of March 31, 2020, 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 Korea Energy Agency as of March 31, 2020. The Group has provided a blank check as repayment guarantee.

(5) The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of

W74,106 million as of March 31, 2020 to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W7 million and depreciation on the idle assets of W1,639 million are recorded in other expenses for the three-month period ended March 31, 2020. 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 March 31, 2020.

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March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(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 March 31, 2020. The book value of facility is W16,334 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex is W2,911 million. The outcome of this event cannot be reasonably estimated as of March 31, 2020.

(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 March 31, 2020.

(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 interim consolidated financial statements as of March 31, 2020, and the resulting effects have not been reflected in the interim consolidated financial statements.

50. Business Combination

(1) The details of business combinations that occurred for the year ended December 31, 2019 are as follows:

In millions of won
Company		Key operation activities		Date of merger				Transfer price
Eumseong Natural Gas Power Co., Ltd.		Power generation			2019.12.23				225,758

Eumseong Natural Gas Power Co., Ltd. was established in August 2019 by spin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8^th Basic Plan for Long-Term Electricity Supply and Demand. Korea East-West Power Co., Ltd., a subsidiary of the Group, acquired 100% of its interest in Eumseong Natural Gas Power Co., Ltd. for stable power supply and profit generation through diversification of power sources, and merged with Eumseong Natural Gas Power Co., Ltd. on December 23, 2019.

(2) Details of the transfer price at fair value given by the acquirer of the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type		Amounts
Cash and cash equivalents		W	166,700
Fair value of the shares owned before the acquisition			59,058
		W	225,758

(3) The fair values of assets and liabilities acquired through the business combination at the acquisition date for the year ended December 31, 2019 are as follows:

In millions of won
Type		Amounts
Fair value of the identifiable assets		W
Current assets
Cash and cash equivalents			2,389
Trade and other receivables			55
Non-current assets
Property, plant and equipment			54
Intangible assets			172,434
Other assets			60
Fair value of the identifiable liabilities
Current liabilities
Borrowings			(2,900	)
Non-current liabilities
Deferred tax liabilities			(41,729	)
		W	130,363

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March 31, 2020

(Unaudited)

50. Business Combination, Continued

(4) Details of goodwill resulting from the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type		Amounts
Fair value of transfer price		W	225,758
Less : Fair value of the identifiable net assets			(130,363	)
		W	95,395

Goodwill arose from the business combination due to the transfer price including the premium to obtain control paid in order to acquire Eumseong Natural Gas Power Co., Ltd. It also includes expectation of synergy effect and future growth in profits derived from business combination with LNG combined power generation project. These business rights can be separated from goodwill which satisfies the recognition requirements and thus the business rights have been recognized as a separate intangible asset.

On the contrary, the expected benefits such as direct fuel acquisition and reduce costs for O&M did not satisfy the recognition requirements for identifiable intangible assets and thus were not recognized separately from the goodwill.

(5) Net cash outflows from the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type		Amounts
Cash paid for the acquisition		W	156,700
Less : Cash and cash equivalents received			(2,389	)
		W	154,311

(6) Fees for legal service, due diligence and others relating to the business combination amounted to W24 million. The fees were excluded from the transfer price and recognized as selling and administrative expenses in the statement of comprehensive income (loss) for the year ended December 31, 2019.

(7) There is no sale or net profit included in the statement of comprehensive income (loss) for the year ended December 31,2019, in relation to additional business launched by Eumseong Natural Gas Power Co., Ltd.

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March 31, 2020

(Unaudited)

51. Subsequent Events

Subsequent to March 31, 2020, Korea Hydro & Nuclear Power Co., Ltd., Korea Southern Power Co., Ltd. and Korea East-West Power Co., Ltd., issued a foreign bond and corporate bonds for funding debt repayment, facility investments, and operations as follows:

In millions of won and thousands of foreign currencies
Company		Type		Issue date		Maturity		Interest rate						Amount
Korea Hydro & Nuclear Power Co., Ltd.		#55-1 corporate bond		2020.04.02		2040.04.02			1.80	%		KRW			50,000
		#55-2 corporate bond		2020.04.02		2050.04.02			1.80	%		KRW			50,000
		#56-1 corporate bond		2020.04.28		2025.04.28			1.62	%		KRW			60,000
		#56-2 corporate bond		2020.04.28		2040.04.28			1.81	%		KRW			90,000
		#56-3 corporate bond		2020.04.28		2050.04.28			1.83	%		KRW			150,000
Korea Southern Power Co., Ltd.		#52-1 non-guaranteed corporate bond		2020.04.27		2025.04.27			1.64	%		KRW			70,000
		#52-2 non-guaranteed corporate bond		2020.04.27		2030.04.27			1.79	%		KRW			30,000
Korea East-West Power Co., Ltd.		#20-1 foreign corporate bond		2020.05.06		2025.05.06			1.75	%		USD			500,000

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March 31, 2020

(Unaudited)

52. 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 consolidated interim statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the three-month periods ended March 31, 2020 and 2019 to the operating profit or loss as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.

In millions of won		March 31, 2020				March 31, 2019
Operating income (loss) on the consolidated interim statements of comprehensive income (loss)		W	430,554				(629,880	)
Add
Other income
Reversal of other provisions			1,570				7,080
Reversal of other allowance for bad debts			24				—
Gains on government grants			71				71
Gains on assets contributed			10,437				64
Gains on liabilities exempted			830				103
Compensation and reparations revenue			19,495				18,842
Revenue from research contracts			937				1,150
Rental income			46,867				46,982
Others			6,293				6,305
Other gains
Gains on disposal of property, plant and equipment			27,357				8,833
Gains on disposal of intangible assets			—				97
Gains on disposal of investment properties			34,423				—
Gains on foreign currency translation			12,018				4,540
Gains on foreign currency transactions			7,830				6,301
Gains on insurance proceeds			—				13
Others			61,244				66,345
Deduct
Other expense
Compensation and indemnification expense			(313	)			—
Accretion expenses of other provisions			(56	)			(51	)
Depreciation expenses on investment properties			(370	)			(244	)
Depreciation expenses on idle assets			(1,639	)			(1,636	)
Other bad debts expense			(35	)			(847	)
Donations			(11,143	)			(11,985	)
Others			(3,057	)			(5,473	)
Other losses
Losses on disposal of property, plant and equipment			(7,786	)			(13,992	)
Impairment loss on property, plant and equipment			—				(2,279	)
Losses on foreign currency translation			(8,581	)			(58,960	)
Losses on foreign currency transactions			(22,100	)			(9,860	)
Others			(42,465	)			(11,322	)
Adjusted operating profit (loss)		W	562,405				(579,803	)

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