6-K 1 d83930d6k.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 September 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.

Table of Contents

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2020 to June 30, 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.

Table of Contents

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 June 30, 2020)

Domestic		Overseas		Total
44		79		123

Table of Contents

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

C. On May 27, 2020, Ms. Noh, Geum-Sun and Mr. Choi, Seung-Kook, whose term of office expired, were reappointed as non-standing directors for a term of a year beginning on June 12, 2020.

D. On June 10, 2020, Mr. Seong, Si-Heon was appointed as a non-standing director in replacement of Mr. Kim, Chang-Joon, whose term of office expired.

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.

Table of Contents

II. Business Overview

1. Consolidated financial results by segment for a six-month period ended June 30, 2020 and 2019

(In billions of Won)

Business sector		January to June 2019								January to June 2020
		Sales				Operating profit				Sales				Operating profit
Electricity sales			28,243				-2,152				27,855				-36
Nuclear generation			4,593				801				4,798				629
Thermal generation			11,796				301				10,253				112
Others(*)			1,631				181				1,926				142
Subtotal			46,263				-869				44,833				848
Adjustment for related- party transactions			-17,944				-60				-16,667				-27
Total			28,319				-929				28,166				820

• 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.

2. Changes in unit prices of major products

(In Won per kWh)

Business sector				Company		January to June 2019		January to June 2020
Electricity sold		Residential		KEPCO		105.90		108.69
		Commercial				126.73		128.01
		Educational				99.61		104.14
		Industrial				103.96		105.39
		Agricultural				48.05		48.65
		Street lighting				114.57		114.91
		Overnight usage				67.42		67.21
Electricity from nuclear generation		Nuclear Generation		KHNP		57.76		57.70
Electricity from thermal generation		Thermal generation		KOSEP		100.84		92.40
				KOMIPO		104.60		84.02
				KOWEPO		100.84		95.02
				KOSPO		106.87		101.97
				EWP		99.53		89.04

Table of Contents

3. Power purchase from generation companies for a six-month period ended June 30, 2020

Company		Volume (GWh)				Expense (In billions of Won)
KHNP			80,233				4,636
KOSEP			23,364				1,906
KOMIPO			22,405				2,112
KOWEPO			18,069				1,720
KOSPO			19,975				2,037
EWP			19,976				1,857
Others			75,505				7,385
Total			259,527				21,653

4. Intellectual property as of June 30, 2020

		Patents								Utility models				Designs				Trademarks
		Domestic				Overseas												Domestic				Overseas				Total
KEPCO			2,731				275				68				85				109				47				3,315
Generation subsidiaries			2,633				376				116				56				164				23				3,368
Total			5,364				651				184				141				273				70				6,683

Table of Contents

III. Financial Information

1. Condensed consolidated financial results as of and for a six-month period ended June 30, 2019 and 2020

(In billions of Won)

Consolidated statements of comprehensive income														Consolidated statements of financial position
		January to June 2019				January to June 2020				Change (%)						December 31, 2019				June 30, 2020				Change (%)
Sales			28,319				28,166				-0.5			Total assets			197,598				201,225				1.8
Operating profit			-929				820				n/m			Total liabilities			128,708				132,265				2.8
Net income			-1,173				256				n/m			Total equity			68,890				68,960				0.1

2. Condensed separate financial results as of and for a six-month period ended June 30, 2019 and 2020

(In billions of Won)

Separate statements of comprehensive income														Separate statements of financial position
		January to June 2019				January to June 2020				Change (%)						December 31, 2019				June 30, 2020				Change (%)
Sales			28,243				27,855				-1.4			Total assets			109,809				111,049				1.1
Operating profit			-2,152				-36				98.3			Total liabilities			58,351				59,666				2.3
Net income			-1,524				38				n/m			Total equity			51,458				51,383				-0.1

Table of Contents

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 six-month period ended June 30, 2020

Number of meetings		Number of agendas		Classification
				Resolutions		Reports
7		27		19		8

* The audit committee held 6 meetings with 24 agendas (of which, 12 were approved as proposed and 12 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

Table of Contents

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 and establishment of Operation & Maintenance company in Pulau Indah, Malaysia		Approved as proposed		Resolution
April 10, 2020		Approval of amendments to the Regulation for Employee Remuneration and Welfare		Approved as proposed		Resolution
		Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States		Approved as proposed		Resolution
May 29, 2020		Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee		Approved as proposed		Resolution
		Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director		Approved as proposed		Resolution
		Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
		Report on audit results for the first quarter of 2020		Accepted as reported		Report
June 26, 2020		Approval of amendments to the Electricity Usage Agreement and Rules for Operation		Approved as proposed		Resolution
		Approval of the mid-to-long term financial management plan (2020-2024)		Approved as proposed		Resolution
		Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service		Approved as proposed		Resolution
		Approval of investment for Indonesia Jawa 9&10 Thermal Development Project		Deferred		Resolution
		Approval of disclosure on revised plan for amendment to the electricity tariff system		Accepted as reported		Report
June 30, 2020		Approval of investment for Indonesia Jawa 9&10 Thermal Development Project		Approved as proposed		Resolution

Table of Contents

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

Seong, Si- Heon

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

Before Appointment

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

Before Appointment

Approval of contribution to a gas-fired power project and establishment of Operation & Maintenance company in Pulau Indah, Malaysia

For

For

For

For

For

For

For

For

Table of Contents

April 10, 2020

Approval of amendments to the Regulation for Employee Remuneration and Welfare

Absent

For

For

For

For

For

For

Absent

Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States

Absent

For

For

For

For

For

For

Absent

May 29, 2020

Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee

For

For

For

For

For

For

For

For

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 of closing the shareholders’ registry for the extraordinary general meeting of shareholders

For

For

For

For

For

For

For

For

Report on audit results for the first quarter of 2020

Agenda for Report

June 26, 2020

Approval of amendments to the Electricity Usage Agreement and Rules for Operation

For

For

For

For

For

For

For

For

For

Approval of the mid-to-long term financial management plan (2020-2024)

For

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

For

Approval of investment for Indonesia Jawa 9&10 Thermal Development Project

—

—

—

—

—

—

—

—

—

Approval of disclosure on revised plan for amendment to the electricity tariff system

Agenda for Report

June 30, 2020

Approval of investment for Indonesia Jawa 9&10 Thermal Development Project

—

—

—

—

—

—

—

—

—

Attendance Rate

85.7%

100%

100%

100%

100%

100%

100%

83.3%

100%

* Individual director’s vote results regarding the proposed approval of investment for Indonesia Jawa 9&10 Thermal Development Project on June 26, 2020 and June 30, 2020 are not disclosed.

Table of Contents

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

Table of Contents

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 and establishment of Operation & Maintenance company in Pulau Indah, Malaysia

For

For

For

For

For

For

April 10, 2020

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

Approval of change of investment and the provision of guarantee for the Guam Phase II Solar Power Project in the United States

For

For

For

For

For

For

May 29, 2020

Approval of forming Director Nomination Committee and evaluation standards for the candidates of standing director and member of Audit Committee

For

For

For

For

For

For

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

For

For

For

For

For

For

Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders

For

For

For

For

For

For

Report on audit results for the first quarter of 2020

Agenda for Report

June 26, 2020

Approval of amendments to the Electricity Usage Agreement and Rules for Operation

For

For

For

For

For

For

Approval of the mid-to-long term financial management plan (2020-2024)

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

Approval of investment for Indonesia Jawa 9&10 Thermal Development Project

—

—

—

—

—

—

Approval of disclosure on revised plan for amendment to the electricity tariff system

Agenda for Report

June 30, 2020

Approval of investment for Indonesia Jawa 9&10 Thermal Development Project

—

—

—

—

—

—

Attendance Rate

100%

100%

100%

100%

100%

100%

* Individual director’s vote results regarding the proposed approval of investment for Indonesia Jawa 9&10 Thermal Development Project on June 26, 2020 and June 30, 2020 are not disclosed.

Table of Contents

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
April 10, 2020		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Report on the Form 20-F for the fiscal year 2019 to be filed with the U.S. Securities and Exchange Commission		Accepted as reported		Report
		Auditor’s report for the fiscal year 2019 in accordance with U.S. accounting principles		Accepted as reported		Report

Table of Contents

May 29, 2020		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members		Approved as proposed		Resolution
		Approval of amendments to the Guidelines for Immunity of Proactive Performance		Approved as proposed		Resolution
		Report on audit results for the first quarter of 2020		Accepted as reported		Report
		Auditor’s review report for the first quarter of 2020		Accepted as reported		Report
June 26, 2020		Approval of post evaluation results on independent auditor		Approved as proposed		Resolution
		Approval of establishment of and amendments to internal regulations regarding prior consulting		Approved as proposed		Resolution
		Independent auditor’s report on the audit plans for the fiscal year 2020		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 Regional Headquarters and Regional Offices also have separate audit teams which conduct internal inspections with respect to the relevant headquarters or offices.

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

Table of Contents

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
April 10, 2020		Approval of appointment of independent auditors of subsidiaries		For		For		Absent
		Report on the Form 20-F for the fiscal year 2019 to be filed with the U.S. Securities and Exchange Commission		For		For		Absent
		Auditor’s report for the fiscal year 2019 in accordance with U.S. accounting principles		For		For		Absent
May 29, 2020		Approval of appointment of independent auditors of subsidiaries		For		For		Absent
		Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members		For		For		Absent
		Approval of amendments to the Guidelines for Immunity of Proactive Performance		For		For		Absent
		Report on audit results for the first quarter of 2020		For		For		Absent
		Auditor’s review report for the first quarter of 2020		For		For		Absent
June 26, 2020		Approval of post evaluation results on independent auditor		For		For		Absent
		Approval of establishment of and amendments to internal regulations regarding prior consulting		For		For		Absent
		Independent auditor’s report on the audit plans for the fiscal year 2020		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.

Table of Contents

V. Shareholders

1. List of shareholders as of June 30, 2020

				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				51,935,237				8.09
Public		Common Shares			1,048				104,179,375				16.23
(Non-Koreans)		American depositary shares (ADS)			1				26,808,599				4.18
Public (Koreans)					517,238				130,963,808				20.40
Total					518,290				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.

Table of Contents

VI. Directors and employees as of and for a six-month period ended June 30, 2020 (KEPCO Only)

1. Directors

																	(In thousands of Won)
Type				Number of directors				Total remuneration				Average remuneration per person				Remarks
Standing director					6				627,115				104,519				Excluding the members of Audit Committee
Non-standing director					6				90,000				15,000
Member of Audit Committee		Standing director			0				—				—				Vacant after December 13, 2019
		Non-standing director			2				30,000				15,000				—
Total					14				747,115				53,365				—

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			17,880				102				17,982				15.8				800,207,598				44,500
Female			4,776				78				4,854				13.1				174,095,376				35,866
Total			22,656				180				22,836				15.2				974,302,974				42,665

Table of Contents

VII. Other Information Necessary for the Protection of Investors

1. Summary of shareholder’s meetings for a six-month period ended June 30, 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 June 30, 2020

(In billions of Won)                

Type		Number of lawsuits				Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants			636				685
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs			181				315

Table of Contents

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: September 10, 2020

Table of Contents

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

For the six-month periods ended June 30, 2020 and 2019

(With Independent Auditor’s Review Report)

1

Table of Contents

INDEX TO FINANCIAL STATEMENTS

		Page
Independent Auditor’s Review Report			3
Consolidated Interim Statements of Financial Position			4
Consolidated Interim Statements of Comprehensive Income (Loss)			6
Consolidated Interim Statements of Changes in Equity			8
Consolidated Interim Statements of Cash Flows			10
Notes to the Consolidated Interim Financial Statements			12

2

Table of Contents

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 statements of financial position as of June 30, 2020, the consolidated interim statements of comprehensive income (loss) for the three and six-month periods ended June 30, 2020 and 2019, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the six-month periods ended June 30, 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 review, 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 (not presented herein), in accordance with KGAAS, and 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 purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

August 14, 2020

This review report is effective as of August 14, 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.

3

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of June 30, 2020 and December 31, 2019

(Unaudited)

In millions of won		Note				June 30, 2020				December 31, 2019
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	1,747,240				1,810,129
Current financial assets, net			5,6,9,11,12,13,44,46				2,801,904				1,586,509
Trade and other receivables, net			5,8,20,24,44,45,46				6,933,289				7,701,452
Inventories, net			14				7,121,417				7,050,700
Income tax receivables							30,568				99,718
Current non-financial assets			15				1,554,147				1,206,377
Assets held-for-sale			16,41				23,291				28,116
Total current assets							20,211,856				19,483,001
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44,46				2,821,990				2,563,498
Non-current trade and other receivables, net			5,8,20,44,45,46				2,030,781				2,002,297
Property, plant and equipment, net			18,24,27,48				166,837,925				164,701,827
Investment properties, net			19,27				159,918				158,580
Goodwill			16				97,977				97,977
Intangible assets other than goodwill, net			21,27,45				1,161,885				1,069,976
Investments in associates			4,17				4,292,120				4,251,802
Investments in joint ventures			4,17				1,794,138				1,663,029
Defined benefit assets, net			25				—				1,047
Deferred tax assets							1,564,877				1,437,829
Non-current non-financial assets			15				251,746				166,929
Total non-current assets							181,013,357				178,114,791
Total Assets			4			W	201,225,213				197,597,792

(Continued)

4

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of June 30, 2020 and December 31, 2019

(Unaudited)

In millions of won		Note				June 30, 2020				December 31, 2019
Liabilities
Current liabilities
Trade and other payables, net			5,22,24,44,46			W	5,710,156				6,649,402
Current financial liabilities, net			5,12,23,44,46				8,167,525				8,930,903
Income tax payables							329,597				358,277
Current non-financial liabilities			20,28,29				6,155,499				5,688,353
Current provisions			26,44				2,964,435				2,604,721
Total current liabilities							23,327,212				24,231,656
Non-current liabilities
Non-current trade and other payables, net			5,22,24,44,46				7,046,470				6,965,760
Non-current financial liabilities, net			5,12,23,44,46				62,711,083				59,115,598
Non-current non-financial liabilities			28,29				9,259,502				8,834,452
Employee benefits liabilities, net			25,44				2,277,089				1,929,854
Deferred tax liabilities							8,457,668				8,564,775
Non-current provisions			26,44				19,186,158				19,066,048
Total non-current liabilities							108,937,970				104,476,487
Total Liabilities			4			W	132,265,182				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							32,179,066				34,785,425
Unappropriated retained earnings							15,509,657				12,811,798
							49,293,633				49,202,133
Other components of equity			33
Other capital surplus							1,224,915				1,226,364
Accumulated other comprehensive loss							(327,976	)			(280,730	)
Other equity							13,294,973				13,294,973
							14,191,912				14,240,607
Equity attributable to owners of the controlling company							67,539,123				67,496,318
Non-controlling interests			16,32				1,420,908				1,393,331
Total Equity						W	68,960,031				68,889,649
Total Liabilities and Equity						W	201,225,213				197,597,792

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

5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three and six-month periods ended June 30, 2020 and 2019

(Unaudited)

In millions of won, except per share information						June 30, 2020								June 30, 2019
		Note				Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Sales			4,34,44,46
Sales of goods						W	12,559,654				27,172,498				12,551,869				27,305,880
Sales of services							93,363				213,588				85,538				180,417
Sales of construction services			20				263,957				471,378				287,661				543,715
Revenue related to transfer of assets from customers			28				155,559				308,196				145,906				289,366
							13,072,533				28,165,660				13,070,974				28,319,378
Cost of sales			14,25,42,46
Cost of sales of goods							(11,662,703	)			(25,340,457	)			(12,293,502	)			(27,184,671	)
Cost of sales of services							(53,692	)			(308,715	)			(161,500	)			(285,223	)
Cost of sales of construction services							(252,766	)			(416,764	)			(257,356	)			(494,372	)
							(11,969,161	)			(26,065,936	)			(12,712,358	)			(27,964,266	)
Gross profit							1,103,372				2,099,724				358,616				355,112
Selling and administrative expenses			25,35,42,46				(713,562	)			(1,279,360	)			(657,275	)			(1,283,651	)
Operating profit (loss)			4				389,810				820,364				(298,659	)			(928,539	)
Other non-operating income			36				111,008				197,532				95,454				171,157
Other non-operating expense			36				(100,049	)			(116,661	)			(35,795	)			(51,138	)
Other gains (losses), net			37				89,570				151,508				(58,392	)			(68,676	)
Finance income			5,12,38				411,180				794,671				348,350				649,525
Finance expenses			5,12,39				(684,460	)			(1,691,222	)			(816,592	)			(1,514,968	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,17
Share in profit of associates and joint ventures							29,520				269,482				61,152				266,884
Gain on disposal of investments in associates and joint ventures							—				—				2,863				9,064
Share in loss of associates and joint ventures							(28,828	)			(62,952	)			(48,517	)			(79,060	)
Loss on disposal of investments in associates and joint ventures							—				(16	)			—				(2	)
							692				206,514				15,498				196,886
Profit (loss) before income tax							217,751				362,706				(750,136	)			(1,545,753	)
Income tax expense (benefit)			40				14,899				106,246				(337,958	)			(372,419	)
Net profit (loss) for the period						W	202,852				256,460				(412,178	)			(1,173,334	)

(Continued)

6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three and six-month periods ended June 30, 2020 and 2019

(Unaudited)

In millions of won, except per share information						June 30, 2020								June 30, 2019
		Note				Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Other comprehensive income (loss)			5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			25,31			W	(59,274	)			(95,559	)			(88,261	)			(186,023	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax			31				1,366				1,118				(654	)			(448	)
Net change in fair value of equity investments at fair value through other comprehensive loss			33				11,282				(40,262	)			(19,334	)			(463	)
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				24,864				48,881				9,293				14,556
Foreign currency translation of foreign operations, net of tax			33				(49,450	)			(4,728	)			36,041				60,278
Share in other comprehensive income (loss) of associates and joint ventures, net of tax			33				(2,906	)			(41,737	)			8,424				35,704
Other comprehensive income (loss), net of tax							(74,118	)			(132,287	)			(54,491	)			(76,396	)
Total comprehensive income (loss) for the period						W	128,734				124,173				(466,669	)			(1,249,730	)
Profit (loss) attributable to:
Owners of the controlling company			43			W	166,212				189,191				(447,546	)			(1,235,344	)
Non-controlling interests							36,640				67,269				35,368				62,010
						W	202,852				256,460				(412,178	)			(1,173,334	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company						W	100,858				44,457				(504,129	)			(1,316,832	)
Non-controlling interests							27,876				79,716				37,460				67,102
						W	128,734				124,173				(466,669	)			(1,249,730	)
Profit (loss) per share (in won)			43
Basic and diluted earnings (loss) per share						W	259				295				(697	)			(1,924	)

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

7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the six-month periods ended June 30, 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			—				(1,235,344	)			—				(1,235,344	)			62,010				(1,173,334	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—				(174,173	)			—				(174,173	)			(11,850	)			(186,023	)
Share in other comprehensive loss of associates and joint ventures, net of tax			—				(448	)			—				(448	)			—				(448	)
Net change in fair value of equity investments at fair value through other comprehensive loss			—				—				(463	)			(463	)			—				(463	)
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			—				—				14,269				14,269				287				14,556
Foreign currency translation of foreign operations, net of tax			—				—				43,626				43,626				16,652				60,278
Share in other comprehensive income of associates and joint ventures, net of tax			—				—				35,701				35,701				3				35,704
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(70,152	)			(70,152	)
Issuance of shares of capital by subsidiaries and others			—				—				(7,859	)			(7,859	)			10,358				2,499
Transactions between consolidated entities			—				—				(141	)			(141	)			3,054				2,913
Changes in consolidation scope			—				—				—				—				19,636				19,636
Dividends paid (hybrid bond)			—				—				—				—				(6,692	)			(6,692	)
Others			—				(1,504	)			1,504				—				—				—
Balance at June 30, 2019		W	4,053,578				50,107,650				14,257,865				68,419,093				1,372,143				69,791,236

(Continued)

8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the six-month periods ended June 30, 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, 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			—				189,191				—				189,191				67,269				256,460
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				(98,606	)			—				(98,606	)			3,047				(95,559	)
Share in other comprehensive income of associates and joint ventures, net of tax			—				1,118				—				1,118				—				1,118
Net change in fair value of equity investments at fair value through other comprehensive loss			—				—				(40,262	)			(40,262	)			—				(40,262	)
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			—				—				38,826				38,826				10,055				48,881
Foreign currency translation of foreign operations, net of tax			—				—				(4,067	)			(4,067	)			(661	)			(4,728	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax			—				—				(41,743	)			(41,743	)			6				(41,737	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(66,732	)			(66,732	)
Issuance of shares of capital by subsidiaries and others			—				—				(544	)			(544	)			17,299				16,755
Transactions between consolidated entities			—				(203	)			(905	)			(1,108	)			1,039				(69	)
Changes in consolidation scope			—				—				—				—				2,947				2,947
Dividends paid (hybrid bond)			—				—				—				—				(6,692	)			(6,692	)
Balance at June 30, 2020		W	4,053,578				49,293,633				14,191,912				67,539,123				1,420,908				68,960,031

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

9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the six-month periods ended June 30, 2020 and 2019

(Unaudited)

In millions of won		June 30, 2020				June 30, 2019
Cash flows from operating activities
Profit (loss) for the period		W	256,460				(1,173,334	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Income tax expense (benefit)			106,246				(372,419	)
Depreciation			5,645,802				5,307,622
Amortization			77,610				82,395
Employee benefit expense			225,370				193,062
Bad debt expense			23,688				20,460
Interest expense			1,020,873				1,016,529
Loss on sale of financial assets			365				261
Loss on disposal of property, plant and equipment			19,253				26,747
Loss on abandonment of property, plant, and equipment			137,601				184,205
Loss on impairment of property, plant, and equipment			2,425				29,685
Loss on impairment of intangible assets			3,505				—
Loss on disposal of intangible assets			—				61,696
Increase to provisions			840,093				457,678
Loss on foreign currency translation, net			414,990				388,954
Gain on valuation of financial assets at fair value through profit or loss			(10,100	)			(8,391	)
Loss on valuation of financial assets at fair value through profit or loss			1,085				296
Valuation and transaction gain on derivative instruments, net			(453,039	)			(359,945	)
Share in income of associates and joint ventures, net			(206,530	)			(187,824	)
Gain on disposal of financial assets			(3,826	)			(964	)
Gain on disposal of property, plant and equipment			(56,163	)			(29,187	)
Gain on disposal of intangible assets			(1,556	)			(97	)
Gain on disposal of associates and joint ventures			—				(9,064	)
Loss on disposal of associates and joint ventures			16				2
Interest income			(130,576	)			(124,579	)
Dividend income			(4,085	)			(3,740	)
Others, net			(11,509	)			4,769
			7,641,538				6,678,151
Changes in working capital:
Trade receivables			713,513				881,127
Non-trade receivables			134,228				377,035
Accrued income			111,634				208,177
Other receivables			(1,236	)			38,972
Other current assets			(358,611	)			(245,379	)
Inventories			(283,163	)			(275,220	)
Other non-current assets			(113,267	)			160,292
Trade payables			(1,180,390	)			(1,430,773	)
Non-trade payables			(21,648	)			122,495
Accrued expenses			(102,675	)			(444,200	)
Other payables			—				(320	)
Other current liabilities			511,705				252,250
Other non-current liabilities			365,112				246,205
Investments in associates and joint ventures (dividends received)			90,526				166,267
Provisions			(705,831	)			(836,864	)
Payments of employee benefit obligations			(34,519	)			(29,153	)
Plan assets			(3,304	)			(270	)
			(877,926	)			(809,359	)

(Continued)

10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows, Continued

For the six-month periods ended June 30, 2020 and 2019

(Unaudited)

In millions of won		June 30, 2020				June 30, 2019
Cash generated from operating activities		W	7,020,072				4,695,458
Dividends received (financial assets at fair value through other comprehensive income)			4,085				3,740
Interest paid			(1,022,791	)			(1,001,541	)
Interest received			114,247				74,784
Income taxes paid			(274,398	)			(110,575	)
Net cash provided by operating activities			5,841,215				3,661,866
Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			93				—
Acquisition of investments in associates and joint ventures			(67,063	)			(58,733	)
Proceeds from disposals of property, plant and equipment			193,054				189,701
Acquisition of property, plant and equipment			(6,920,206	)			(5,973,013	)
Proceeds from disposals of intangible assets			37,164				261
Acquisition of intangible assets			(92,768	)			(156,095	)
Proceeds from disposals of financial assets			3,681,126				1,303,298
Acquisition of financial assets			(4,738,796	)			(2,618,226	)
Increase in loans			(154,179	)			(138,622	)
Collection of loans			139,310				80,497
Increase in deposits			(139,251	)			(130,139	)
Decrease in deposits			128,707				132,868
Proceeds from disposals of assets held-for-sale			4,862				779
Receipt of government grants			21,436				7,435
Use of government grants			(104	)			(18	)
Net cash outflow from changes in consolidation scope			(25,094	)			(2,106	)
Other cash outflow from investing activities, net			(112,060	)			(64,906	)
Net cash used in investing activities			(8,043,769	)			(7,427,019	)
Cash flows from financing activities
Proceeds from (repayment of) short-term borrowings, net			198,766				849,287
Proceeds from long-term borrowings and debt securities			7,520,906				6,999,686
Repayment of long-term borrowings and debt securities			(5,279,770	)			(3,827,361	)
Payment of lease liabilities			(353,977	)			(264,809	)
Settlement of derivative instruments, net			106,247				36,252
Change in non-controlling interest			9,806				5,203
Dividends paid (hybrid bond)			(6,692	)			(6,692	)
Dividends paid			(67,011	)			(70,955	)
Net cash provided by financing activities			2,128,275				3,720,611
Net decrease in cash and cash equivalents before effect of exchange rate fluctuations			(74,279	)			(44,542	)
Effect of exchange rate fluctuations on cash held			11,390				(5,686	)
Net decrease in cash and cash equivalents			(62,889	)			(50,228	)
Cash and cash equivalents at January 1			1,810,129				1,358,345
Cash and cash equivalents at June 30		W	1,747,240				1,308,117

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

11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

June 30, 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 June 30, 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 130,987,974 shares (20.40%) as of the most recent closing date of Register of Shareholders (June 15, 2020).

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.

12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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).

13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and 2019 are W1,200,336 million and W1,189,843 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.

14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 KASB 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.

15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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.

16

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three and six-month periods ended June 30, 2020 and 2019, respectively, are as follows:

In millions of won
June 30, 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
		Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended
Transmission and distribution		W	12,949,805				27,855,438				308,207				622,550				12,641,598				27,232,888				511,584				(35,737	)			953,481				1,891,259				13,274				29,555				189,008				389,396				(10,308	)			119,577
Electric power generation (Nuclear)			2,313,385				4,798,440				2,267,478				4,723,706				45,907				74,734				301,691				629,119				898,674				1,779,294				5,968				11,913				124,358				248,714				(363	)			(1,350	)
Electric power generation (Non-nuclear)			4,331,240				10,252,902				4,149,281				9,822,314				181,959				430,588				(475,019	)			111,882				1,009,093				1,998,647				6,049				11,616				158,632				319,242				8,858				84,240
Plant maintenance & engineering service			615,533				1,161,160				557,986				970,706				57,547				190,454				33,143				65,071				29,502				59,037				3,310				6,866				403				893				2,505				4,047
Others			406,081				764,771				260,559				527,775				145,522				236,996				41,351				77,288				32,498				59,892				43,921				87,118				42,580				79,075				—				—
Consolidation adjustments			(7,543,511	)			(16,667,051	)			(7,543,511	)			(16,667,051	)			—				—				(22,940	)			(27,259	)			(38,909	)			(64,717	)			(8,453	)			(16,492	)			(10,492	)			(16,447	)			—				—
		W	13,072,533				28,165,660				—				—				13,072,533				28,165,660				389,810				820,364				2,884,339				5,723,412				64,069				130,576				504,489				1,020,873				692				206,514

In millions of won
June 30, 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
		Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended				Three- month period ended				Six-month period ended
Transmission and distribution		W	13,124,910				28,242,598				349,872				731,943				12,775,038				27,510,656				259,763				(2,151,618	)			920,147				1,803,721				17,026				36,117				195,859				381,867				7,031				152,100
Electric power generation (Nuclear)			2,036,486				4,593,449				2,056,634				4,590,868				(20,148	)			2,581				145,771				801,533				814,412				1,588,427				8,721				17,623				128,006				255,753				748				2,279
Electric power generation (Non-nuclear)			4,438,608				11,796,262				4,285,900				11,344,452				152,708				451,810				(801,897	)			301,023				976,666				1,941,134				6,220				11,560				165,046				331,323				6,456				43,081
Plant maintenance & engineering service			663,006				1,162,488				575,005				1,001,391				88,001				161,097				94,337				130,833				33,224				64,021				3,248				7,013				620				2,055				1,263				(574	)
Others			247,785				468,139				172,410				274,905				75,375				193,234				18,556				49,890				18,029				39,171				35,254				66,623				31,557				61,039				—				—
Consolidation adjustments			(7,439,821	)			(17,943,558	)			(7,439,821	)			(17,943,559	)			—				—				(15,189	)			(60,200	)			(28,534	)			(46,457	)			(7,194	)			(14,357	)			(7,936	)			(15,508	)			—				—
		W	13,070,974				28,319,378				—				—				13,070,974				28,319,378				(298,659	)			(928,539	)			2,733,944				5,390,017				63,275				124,579				513,152				1,016,529				15,498				196,886

17

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
June 30, 2020
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	111,049,348				3,770,560				3,689,752				59,665,959
Electric power generation (Nuclear)			60,761,501				71,579				1,327,846				34,843,299
Electric power generation (Non-nuclear)			54,965,196				2,191,385				1,912,778				33,622,353
Plant maintenance & engineering service			3,501,542				52,734				58,402				1,148,829
Others			8,719,811				—				237,148				4,003,678
Consolidation adjustments			(37,772,185	)			—				(212,952	)			(1,018,936	)
		W	201,225,213				6,086,258				7,012,974				132,265,182

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)
		June 30, 2020								June 30, 2019								June 30, 2020				December 31, 2019
Geographical unit		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Domestic		W	12,711,311				27,494,423				12,702,461				27,591,897				171,751,766				169,366,365
Overseas (*1)			361,222				671,237				368,513				727,481				2,843,943				2,743,755
		W	13,072,533				28,165,660				13,070,974				28,319,378				174,595,709				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.

18

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month periods ended June 30, 2020 and 2019.

5. Classification of Financial Instruments

(1) Classification of financial assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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	—				—				1,747,240				—				1,747,240
Current financial assets
Current financial assets at fair value through profit or loss			700,808				—				—				—				700,808
Current financial assets at amortized costs			—				—				13,354				—				13,354
Current derivative assets			4,088				—				—				58,708				62,796
Other financial assets			—				—				2,024,946				—				2,024,946
Trade and other receivables			—				—				6,933,289				—				6,933,289
			704,896				—				10,718,829				58,708				11,482,433
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			633,220				—				—				—				633,220
Non-current financial assets at fair value through other comprehensive income			—				322,158				—				—				322,158
Non-current financial assets at amortized costs			—				—				1,319				—				1,319
Non-current derivative assets			417,191				—				—				230,283				647,474
Other financial assets			—				—				1,217,819				—				1,217,819
Trade and other receivables			—				—				2,030,781				—				2,030,781
			1,050,411				322,158				3,249,919				230,283				4,852,771
		W	1,755,307				322,158				13,968,748				288,991				16,335,204

19

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of June 30, 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

20

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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	—				1,448,682				—				1,448,682
Debt securities			—				6,652,378				—				6,652,378
Derivative liabilities			9,082				—				57,383				66,465
Trade and other payables			—				5,710,156				—				5,710,156
			9,082				13,811,216				57,383				13,877,681
Non-current liabilities
Borrowings			—				3,498,927				—				3,498,927
Debt securities			—				59,109,116				—				59,109,116
Derivative liabilities			49,816				—				53,224				103,040
Trade and other payables			—				7,046,470				—				7,046,470
			49,816				69,654,513				53,224				69,757,553
		W	58,898				83,465,729				110,607				83,635,234

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

21

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income (loss) from financial instruments for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won				June 30, 2020								June 30, 2019
				Three- month period ended				Six- month period ended				Three- month period ended				Six- month  period ended
Cash and cash equivalents		Interest income		W	6,866				24,126				17,350				35,245
		Gain (Loss) on foreign currency transactions and translations			(507	)			12,945				(356	)			(53	)
Financial assets at fair value through profit or loss		Interest income			6,359				9,081				2,569				3,255
		Gain on valuation of financial assets			3,015				9,015				3,830				8,095
		Gain (loss) on disposal of financial assets			3,508				3,461				(89	)			703
		Loss on foreign currency transactions and translations			(138	)			(138	)			—				—
Financial assets at fair value through other comprehensive income		Dividends income			4,043				4,085				2,427				3,740
Financial assets at amortized cost		Interest income			231				321				7				25
		Gain (Loss) on foreign currency transactions and translations			(461	)			791				(433	)			(428	)
Loans		Interest income			19,167				32,519				13,364				26,038
		Gain (Loss) on foreign currency transactions and translations			(151	)			252				(108	)			(573	)
Trade and other receivables		Interest income			9,801				22,294				22,004				41,032
		Gain (Loss) on foreign currency transactions and translations			(8,636	)			11,879				10,833				7,186
Short-term financial instruments		Interest income			8,530				17,032				7,835				18,686
		Gain (Loss) on foreign currency transactions and translations			(19,384	)			25,449				12,611				27,266
Long-term financial instruments		Interest income			3,589				6,451				—				1
Other financial assets		Interest income			9,527				18,752				146				297
Financial liabilities carried at amortized cost		Interest expense of borrowings and debt securities			348,995				706,503				352,919				699,869
		Loss on repayment of financial liabilities			(30	)			(30	)			—				—
		Interest expense of trade and other payables			47,195				97,988				2,929				31,306
		Interest expense of others			108,300				216,382				157,304				285,354
		Other finance income			138				287				—				—
		Gain (Loss) on foreign currency transactions and translations			246,025				(529,122	)			(219,315	)			(429,017	)
Derivative assets (trading)		Gain (Loss) on valuation of derivatives			(2,729	)			246,091				78,944				160,854
		Gain (Loss) on transaction of derivatives			(5,339	)			14,997				18,894				31,895
Derivatives (applying hedge accounting)		Gain (Loss) on valuation of derivatives (profit or loss)			(104,038	)			124,137				76,662				150,329
		Gain on valuation of derivatives (equity, before tax)			45,354				77,697				19,529				34,163
		Gain on transaction of derivatives			60,234				67,814				4,386				16,867

22

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

6. Restricted Deposits

Restricted deposits as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won				June 30, 2020				December 31, 2019
Cash and cash equivalents		Escrow		W	558				—
		Deposits for government project and others			6,823				9,287
		Collateral provided for borrowings			73,311				63,198
		Collateral provided for lawsuit			2				3
		Deposits for transmission regional support program			9,971				3,002
Short-term financial instruments		Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others			106,500				93,000
Non-current financial assets at fair value through profit or loss		Decommissioning costs of nuclear power plants			540,729				541,969
Long-term financial instruments		Escrow			98				74
		Guarantee deposits for banking accounts at oversea branches			338				326
		Collateral provided for borrowings			11,745				11,745
		Decommissioning costs of nuclear power plants			288,282				250,464
		Funds for developing small and medium enterprises (*)			200,000				200,000
				W	1,238,357				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 June 30, 2020 and December 31, 2019.

7. Cash and Cash Equivalents

Cash and cash equivalents as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Cash		W	2,813				266
Other demand deposits			1,256,673				1,117,499
Short-term deposits classified as cash equivalents			260,222				527,235
Short-term investments classified as cash equivalents			227,532				165,129
		W	1,747,240				1,810,129

23

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	6,552,461				(218,942	)			—				6,333,519
Other receivables			637,407				(35,958	)			(1,679	)			599,770
			7,189,868				(254,900	)			(1,679	)			6,933,289
Non-current assets
Trade receivables			293,899				(203	)			—				293,696
Other receivables			1,830,379				(88,924	)			(4,370	)			1,737,085
			2,124,278				(89,127	)			(4,370	)			2,030,781
		W	9,314,146				(344,027	)			(6,049	)			8,964,070
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

24

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	224,353				(35,647	)			—				188,706
Accrued income			69,279				—				—				69,279
Deposits			262,417				—				(1,679	)			260,738
Finance lease receivables			58,967				(311	)			—				58,656
Others			22,391				—				—				22,391
			637,407				(35,958	)			(1,679	)			599,770
Non-current assets
Non-trade receivables			184,253				(79,836	)			—				104,417
Accrued income			952				—				—				952
Deposits			367,769				—				(4,370	)			363,399
Finance lease receivables			1,163,023				(325	)			—				1,162,698
Others			114,382				(8,763	)			—				105,619
			1,830,379				(88,924	)			(4,370	)			1,737,085
		W	2,467,786				(124,882	)			(6,049	)			2,336,855
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

25

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Trade receivables: (not overdue)		W	6,540,156				7,338,757
Trade receivables: (impairment reviewed)			306,204				147,187
Less than 60 days			4,008				6,555
60 ~ 90 days			31,455				1,899
90 ~ 120 days			9,705				2,106
120 days ~ 1 year			50,210				37,357
Over 1 year			210,826				99,270
			6,846,360				7,485,944
Less: allowance for doubtful accounts			(219,145	)			(212,759	)
Less: present value discount			—				(382	)
		W	6,627,215				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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Trade receivables				Other receivables				Trade receivables				Other receivables
Beginning balance		W	212,759				114,155				215,868				104,726
Bad debt expense			22,183				7,188				29,221				19,206
Write-off, etc.			(6,551	)			(633	)			(10,106	)			(1,146	)
Reversals			(3,217	)			—				(41,940	)			—
Others			(6,029	)			4,172				19,716				(8,631	)
Ending balance		W	219,145				124,882				212,759				114,155

26

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

9. Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		W	31,212				146,315				894				160,952
Cooperative			—				5,460				—				5,155
Others (*)			669,596				283,555				130,491				244,857
			700,808				435,330				131,385				410,964
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—				197,890				—				150,916
Others			—				—				—				53,996
			—				197,890				—				204,912
		W	700,808				633,220				131,385				615,876

(*) ‘Others’ include MMT, etc.

27

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Acquisitions				Disposals				Valuation				Others				Ending balance
Listed		W	201,201				—				—				(59,179	)			(200	)			141,822
Unlisted			177,969				2,900				(1	)			(163	)			(369	)			180,336
			379,170				2,900				(1	)			(59,342	)			(569	)			322,158
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			379,170				2,900				(1	)			(59,342	)			(569	)			322,158

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

28

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				73,469				73,469
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				124				124
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				59				59
PAN Ocean Co., Ltd.			1,492				0.00	%			14				6				6
Dongbu Corp.			955				0.00	%			12				9				9
KSP Co., Ltd.			22,539				0.06	%			24				37				37
STX Heavy Industries Co., Ltd.			8,639				0.03	%			213				19				19
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				40,262				40,262
Energy Fuels Inc.			1,711,814				1.49	%			16,819				3,070				3,070
Bunji Corporation Limited			99,763				0.07	%			18,445				—				—
Denison Mines Corp.			58,284,000				9.76	%			84,134				24,594				24,594
Fission 3.0			75,000				0.05	%			—				3				3
Fission Uranium Corp.			800,000				0.16	%			785				169				169
											359,339				141,822				141,822
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
SMG Energy Co., Ltd.			580,000				5.00	%			2,900				2,900				2,900
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,693				2,693
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)											9,968				6,339				6,339
											268,860				180,336				180,336
										W	628,199				322,158				322,158

(*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 six-month period ended June 30, 2020.

(*3) Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 258 companies including Hwan Young Steel Ind. Co., Ltd.

29

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 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.

30

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

11. Financial Assets at Amortized Cost

Financial assets at amortized cost as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,673				—				—				—				1,673
Others			13,000				—				—				—				13,000
		W	14,673				—				—				—				14,673
Current		W	13,354				—				—				—				13,354
Non-current			1,319				—				—				—				1,319
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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Derivative assets
Currency forward		W	4,089				72,025				21				43,931
Currency swap			58,707				562,184				27,597				229,258
Interest rate swap			—				10,631				—				7,592
Others (*1)			—				2,634				—				2,634
		W	62,796				647,474				27,618				283,415
Derivative liabilities
Currency forward		W	2,877				—				7,081				—
Currency swap			56,400				18,740				59,327				45,184
Interest rate swap			983				83,309				451				50,756
Others (*2, 3)			6,205				991				6,205				956
		W	66,465				103,040				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.

31

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of June 30, 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
Shinhan Bank			2020.06.10				2020.07.02				808				USD 677				1,193.37
JP Morgan			2020.06.23				2020.07.13				18,362				USD 15,173				1,210.20
Woori Bank			2020.06.26				2020.07.13				11,431				USD 9,538				1,198.42
Citibank			2020.06.30				2020.07.14				23,858				USD 19,889				1,199.55
Kookmin Bank			2020.05.28				2020.07.02				2,480				USD 2,000				1,239.85
Morgan Stanley			2020.06.01				2020.07.06				6,146				USD 5,000				1,229.16
Mizuho Bank			2020.06.01				2020.07.07				6,126				USD 5,000				1,225.25
Shinhan Bank			2020.06.01				2020.08.24				6,337				USD 5,163				1,227.35
CCB			2020.06.02				2020.07.07				6,113				USD 5,000				1,222.55
Hana Bank			2020.06.03				2020.07.09				6,110				USD 5,000				1,222.05
Shinhan Bank			2020.06.03				2020.08.17				7,619				USD 6,255				1,218.10
Shinhan Bank			2020.06.03				2020.08.19				9,161				USD 7,521				1,218.18
Shinhan Bank			2020.06.05				2020.09.02				6,969				USD 5,732				1,215.75
Hana Bank			2020.06.08				2020.07.13				6,025				USD 5,000				1,205.00
Standard Chartered			2020.06.09				2020.07.15				4,788				USD 4,000				1,197.00
Credit Agricole			2020.06.11				2020.07.16				5,943				USD 5,000				1,188.55
Woori Bank			2020.06.18				2020.07.20				6,065				USD 5,000				1,213.00
CCB			2020.06.18				2020.07.22				6,062				USD 5,000				1,212.40
Nonghyup Bank			2020.06.22				2020.07.23				6,059				USD 5,000				1,211.70
Hana Bank			2020.06.24				2020.07.27				6,034				USD 5,000				1,206.80
Standard Chartered			2020.06.24				2020.07.29				6,020				USD 5,000				1,203.95
Mizuho Bank			2020.06.25				2020.07.30				4,811				USD 4,000				1,202.65
Korea Development Bank			2020.06.29				2020.08.03				5,998				USD 5,000				1,199.55
CCB			2020.06.15				2020.07.06				4,843				USD 4,000				1,210.65
CCB			2020.06.18				2020.07.06				3,639				USD 3,000				1,213.10
BNP Paribas			2020.06.18				2020.07.06				9,098				USD 7,500				1,213.05
Hana Bank			2020.06.19				2020.07.13				6,060				USD 5,000				1,211.90
Korea Development Bank			2020.06.19				2020.07.06				21,575				USD 17,800				1,212.10
MUFG			2020.06.22				2020.07.13				5,458				USD 4,500				1,212.90
Korea Development Bank			2020.06.23				2020.07.13				6,049				USD 5,000				1,209.85
Mizuho Bank			2020.06.24				2020.07.23				4,812				USD 4,000				1,202.88
Hana Bank			2020.06.25				2020.07.23				3,616				USD 3,000				1,205.21
Korea Development Bank			2020.06.26				2020.07.23				2,997				USD 2,500				1,198.65
Nova Scotia			2020.06.01				2020.07.03				6,129				USD 5,000				1,225.70
MUFG			2020.06.03				2020.07.06				7,295				USD 6,000				1,215.75
Standard Chartered			2020.06.03				2020.07.06				7,293				USD 6,000				1,215.45
Nova Scotia			2020.06.05				2020.07.09				7,292				USD 6,000				1,215.41
BNP Paribas			2020.06.05				2020.07.09				6,074				USD 5,000				1,214.75
MUFG			2020.06.05				2020.07.09				1,775				USD 1,461				1,214.50
HSBC			2020.06.05				2020.07.23				2,594				USD 2,145				1,209.45
Nova Scotia			2020.06.10				2020.07.13				7,154				USD 6,000				1,192.35
BNP Paribas			2020.06.10				2020.07.13				5,956				USD 5,000				1,191.10
Nonghyup Bank			2020.06.10				2020.07.13				7,160				USD 6,000				1,193.35
HSBC			2020.06.10				2020.07.13				3,572				USD 3,000				1,190.75
Nova Scotia			2020.06.24				2020.07.27				6,002				USD 5,000				1,200.45
HSBC			2020.06.24				2020.07.27				6,001				USD 5,000				1,200.25
HSBC			2019.12.13				2020.09.10				46,580				USD 40,000				1,164.50

32

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of June 30, 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
Nova Scotia			2019.12.13				2020.09.10			W	34,959				USD 30,000			W	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
Suhyup Bank			2020.06.05				2020.07.06				3,645				USD 3,000				1,215.10
Nonghyup Bank			2020.06.09				2020.07.06				4,794				USD 4,000				1,198.40
Nova Scotia			2020.06.09				2020.07.06				3,593				USD 3,000				1,197.57
Hana Bank			2020.06.12				2020.07.06				8,357				USD 7,000				1,193.82
Hana Bank			2020.06.24				2020.07.13				3,614				USD 3,000				1,204.75
Nova Scotia			2020.06.23				2020.07.23				4,843				USD 4,000				1,210.70
Nonghyup Bank			2020.06.25				2020.07.23				8,435				USD 7,000				1,205.00
Suhyup Bank			2020.06.26				2020.07.23				7,787				USD 6,500				1,198.00
Nova Scotia			2020.06.30				2020.07.23				3,589				USD 3,000				1,196.45
Mizuho Bank			2020.06.30				2020.07.23				4,186				USD 3,500				1,196.00
Shinhan Bank			2020.06.04				2020.07.06				4,757				USD 3,906				1,217.95
Nova Scotia			2020.06.05				2020.07.06				2,537				USD 2,100				1,208.05
Shinhan Bank			2020.06.08				2020.07.08				6,024				USD 5,000				1,204.83
Standard Chartered			2020.06.11				2020.07.15				4,775				USD 4,000				1,193.70
Shinhan Bank			2020.06.18				2020.07.22				12,088				USD 10,000				1,208.80
Credit Agricole			2020.06.22				2020.07.24				6,074				USD 5,000				1,214.80
Woori Bank			2020.06.23				2020.07.24				4,831				USD 4,000				1,207.75
Hana Bank			2020.06.26				2020.07.24				4,795				USD 4,000				1,198.68
Woori Bank			2020.06.30				2020.07.31				11,963				USD 10,000				1,196.30
Shinhan Bank			2020.06.30				2020.07.31				5,034				USD 4,200				1,198.50
Hana Bank			2019.07.31				2020.07.14				4,993				USD 4,257				1,173.00

33

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of June 30, 2020 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information

Counterparty		Contract year		Contract amounts								Contract interest rate				Contract exchange rate (in won, USD)
				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
Woori Bank		2020~2025			241,320			USD	200,000			0.54%		1.13%			1,206.60
Korea Development Bank		2020~2025			241,320			USD	200,000			0.54%		1.13%			1,206.60
Kookmin Bank		2020~2025			120,660			USD	100,000			0.54%		1.13%			1,206.60
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	100,000			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

34

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of June 30, 2020 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information

Counterparty		Contract year		Contract amounts								Contract interest rate				Contract exchange rate (in won, USD)
				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
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
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
Woori Bank		2020~2025			245,560			USD	200,000			0.93%		1.75%			1,227.80
Hana Bank		2020~2025			245,560			USD	200,000			0.93%		1.75%			1,227.80
Korea Development Bank		2020~2025			122,780			USD	100,000			0.93%		1.75%			1,227.80

35

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of June 30, 2020 are as follows:

In millions of won and thousands of USD

Counterparty

Contract year

Contract amount

Contract interest rate per annum

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. The Group entered into an agreement with the counterparty on July 7, 2020 for early settlement of the contract on September 18, 2020.

(*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 June 30, 2020 are as follows:

In millions of won and thousands of USD

Counterparty

Contract year

Contract amount

Contract interest rate per annum

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

78,092

3.00

%

6M USD Libor

36

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

12. Derivatives, Continued

(7) Gains and losses on valuation and transaction of derivatives for the three and six-month periods ended June 30, 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) (*)
		June 30, 2020								June 30, 2019								June 30, 2020								June 30, 2019								June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Currency forward		W	(7,951	)			30,971				7,484				22,533				(3,409	)			10,128				5,145				10,242				—				—				—				—
Currency swap			(96,687	)			358,262				162,335				309,763				60,507				76,197				18,291				38,911				45,487				63,974				21,935				43,527
Interest rate swap			(2,129	)			(19,005	)			(14,213	)			(21,113	)			(2,203	)			(3,514	)			(156	)			(391	)			(133	)			13,723				(2,406	)			(9,364	)
		W	(106,767	)			370,228				155,606				311,183				54,895				82,811				23,280				48,762				45,354				77,697				19,529				34,163

(*) For the six-month period ended June 30, 2020, the net gain on valuation of derivatives applying cash flow hedge accounting of W48,881 million, net of tax, is included in other comprehensive income (loss).

37

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

13. Other Financial Assets

(1) Other financial assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Loans		W	71,259				747,657				64,111				725,755
Less: allowance for doubtful accounts			(8	)			(12,596	)			(31	)			(15,063	)
Less: present value discount			(924	)			(32,611	)			(847	)			(35,218	)
			70,327				702,450				63,233				675,474
Long-term / short-term financial instruments			1,954,619				515,369				1,351,971				608,256
		W	2,024,946				1,217,819				1,415,204				1,283,730

(2) Loans as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Face value				Allowance for doubtful accounts				Present value discount				Book value
Short-term loans
Loans for tuition		W	34,568				—				(924	)			33,644
Loans for housing			19,988				—				—				19,988
Fisheries loan			309				—				—				309
Other loans			16,394				(8	)			—				16,386
			71,259				(8	)			(924	)			70,327
Long-term loans
Loans for tuition			420,628				—				(32,611	)			388,017
Loans for housing			217,335				—				—				217,335
Loans for related parties			44,367				(2,465	)			—				41,902
Other loans			65,327				(10,131	)			—				55,196
			747,657				(12,596	)			(32,611	)			702,450
		W	818,916				(12,604	)			(33,535	)			772,777

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

38

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	15,094				4,952
Bad debt expense			(2,466	)			10,142
Others			(24	)			—
Ending balance		W	12,604				15,094

(4) Long-term and short-term financial instruments as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Time deposits		W	1,436,768				162,059				1,034,971				257,857
CP			19,918				—				40,000				—
CD			5,000				—				15,000				—
RP			137,132				2,874				40,000				—
Others			355,801				350,436				222,000				350,399
		W	1,954,619				515,369				1,351,971				608,256

39

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

14. Inventories

Inventories as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,778,712				(1,430	)			3,777,282
Merchandises			1,247				—				1,247
Work-in-progress			177,849				—				177,849
Finished goods			40,675				(410	)			40,265
Supplies			2,191,968				(4,627	)			2,187,341
Inventories-in-transit			922,636				—				922,636
Other inventories			14,797				—				14,797
		W	7,127,884				(6,467	)			7,121,417

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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 were W2,413 million and W4,872 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 were W3,081 million and W3,127 million, respectively.

40

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

15. Non-Financial Assets

Non-financial assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
			Current				Non-current				Current				Non-current
Advanced payments		W	221,353				49,924				147,784				2,694
Prepaid expenses			309,651				148,015				308,017				84,421
Others (*)			1,023,143				53,807				750,576				79,814
		W	1,554,147				251,746				1,206,377				166,929

(*) Details of others as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
			Current				Non-current				Current				Non-current
Greenhouse gas emissions rights		W	753,927				—				437,562				—
Other quick assets			269,216				53,807				313,014				79,814
		W	1,023,143				53,807				750,576				79,814

41

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows:

						Percentage of ownership (%)
Subsidiaries		Key operation activities		Location		June 30, 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	%

42

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows, continued:

						Percentage of ownership (%)
Subsidiaries		Key operation activities		Location		June 30, 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			100.00	%			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	%

43

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of June 30, 2020 and December 31, 2019 are as follows, continued:

						Percentage of ownership (%)
Subsidiaries		Key operation activities		Location		June 30, 2020				December 31, 2019
SE Green Energy Co., Ltd.		Power generation		KOREA			84.80	%			84.80	%
KEPCO Mangilao America LLC (*6)		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	%			—
TS Energy No. 25 Co., Ltd.		Power generation		KOREA			90.00	%			—
KPS Partners Co., Ltd.		Facility maintenance		KOREA			100.00	%			—
KEPCO E&C Service Co., Ltd.		Facility maintenance		KOREA			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 the 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) As of the end of the reporting period, the Group does not have a shareholding, however, this subsidiary is included in the consolidated financial statements as the Group has control over KEPCO-LG CNS Mangilao Holdings LLC by virtue of the right to nominate all 4 members of the board of directors.

(*6) As of the end of the reporting period, the Group does not have a shareholding, however, this subsidiary is included in the consolidated financial statements as the Group has control over KEPCO Mangilao America LLC by virtue of the right to nominate the CEO and key management members.

(2) Subsidiaries newly included in the consolidation scope during the six-month period ended June 30, 2020 are as follows, and there are no subsidiaries that are excluded from the consolidation scope during the six-month period ended June 30, 2020.

<Subsidiaries newly included in the consolidation scope during the six-month period ended June 30, 2020>

Subsidiaries		Reason
Guam Ukudu Power LLC		Newly established
TS Energy No. 25 Co., Ltd.		Newly established
KPS Partners Co., Ltd.		Newly established
KEPCO E&C Service Co., Ltd.		Newly established

44

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
June 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.		W	60,761,501				34,843,299				4,798,441				355,325
Korea South-East Power Co., Ltd.			11,238,565				6,167,196				2,213,790				58,041
Korea Midland Power Co., Ltd.			12,814,987				9,112,004				2,244,892				28,877
Korea Western Power Co., Ltd.			10,399,962				6,671,927				1,772,835				(121,093	)
Korea Southern Power Co., Ltd.			11,058,313				6,848,314				2,073,640				(31,077	)
Korea East-West Power Co., Ltd.			9,453,370				4,822,911				1,947,746				(62,672	)
KEPCO Engineering & Construction Company, Inc.			699,600				221,742				177,952				2,337
KEPCO Plant Service & Engineering Co., Ltd.			1,313,396				262,559				576,442				64,880
KEPCO Nuclear Fuel Co., Ltd.			857,175				466,892				126,470				(2,828	)
KEPCO KDN Co., Ltd.			631,370				197,636				280,297				9,336
KEPCO International HongKong Ltd.			145,047				—				—				1,622
KEPCO International Philippines Inc.			128,704				116				—				17,871
KEPCO Gansu International Ltd.			8,554				565				—				(4	)
KEPCO Philippines Holdings Inc.			198,056				5,464				—				24,220
KEPCO Philippines Corporation			6,676				34				—				(106	)
KEPCO Ilijan Corporation			371,669				55,692				42,180				24,804
KEPCO Lebanon SARL			1,870				10,149				—				(33	)
KEPCO Neimenggu International Ltd.			221,449				—				—				13,302
KEPCO Shanxi International Ltd.			549,739				212,776				—				(4,989	)
KOMIPO Global Pte., Ltd.			283,100				1,086				—				4,654
KEPCO Netherlands B.V.			127,598				32				—				542
KOREA Imouraren Uranium Investment Corp.			14,132				137				—				(629	)
KEPCO Australia Pty., Ltd.			411				14				—				39
KOSEP Australia Pty., Ltd.			33,491				2,169				8,275				872
KOMIPO Australia Pty., Ltd.			45,511				5,192				8,315				2,057
KOWEPO Australia Pty., Ltd.			42,899				2,869				8,275				873
KOSPO Australia Pty., Ltd.			37,679				2,875				8,275				1,896
KEPCO Middle East Holding Company			98,655				84,565				—				(775	)
Qatrana Electric Power Company			502,625				316,031				10,854				12,576
KHNP Canada Energy, Ltd.			41,750				42				—				(5	)
KEPCO Bylong Australia Pty., Ltd.			41,149				374,933				—				(15,341	)
Korea Waterbury Uranium Limited Partnership			20,907				176				—				(36	)
KEPCO Holdings de Mexico			183				7				—				9
KST Electric Power Company			590,364				458,316				30,233				37,691
KEPCO Energy Service Company			2,359				1,550				2,784				627
KEPCO Netherlands S3 B.V.			49,375				75				—				2,069
PT. KOMIPO Pembangkitan Jawa Bali			14,118				3,735				11,549				4,757
PT. Cirebon Power Service			2,542				503				4,327				153
KOWEPO International Corporation			—				11				—				—
KOSPO Jordan LLC			18,675				942				4,335				1,178
EWP Philippines Corporation			1,788				940				—				(4	)
EWP America Inc. (*1)			54,379				5,510				6,347				(4,354	)
KNF Canada Energy Limited			1,892				29				—				(23	)
EWP Barbados 1 SRL			326,961				1,195				1,509				33,854
Gyeonggi Green Energy Co., Ltd.			291,650				256,181				30,581				141
PT. Tanggamus Electric Power			238,745				209,877				2,074				(3,533	)
Gyeongju Wind Power Co., Ltd.			109,978				72,793				8,311				2,197
KOMIPO America Inc.			30,748				615				—				(719	)
KOSEP USA, Inc.			1				5,338				—				—
PT. EWP Indonesia			32,720				582				—				4,807
KEPCO Netherlands J3 B.V.			124,437				100				—				(39	)
Korea Offshore Wind Power Co., Ltd.			348,675				181,451				13,610				256
Global One Pioneer B.V.			241				77				—				(41	)
Global Energy Pioneer B.V.			417				92				—				(48	)
Mira Power Limited			393,773				307,715				12,317				(3,830	)
KOSEP Material Co., Ltd.			2,244				686				1,731				(30	)
Commerce and Industry Energy Co., Ltd.			92,141				43,794				14,893				1,080
KEPCO KPS Philippines Corp.			3,304				462				3,258				(19	)

45

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
June 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
KOSPO Chile SpA		W	141,519				51,836				—				519
PT. KOWEPO Sumsel Operation And Maintenance Services			117				262				—				(15	)
HeeMang Sunlight Power Co., Ltd.			7,557				4,542				232				(49	)
Fujeij Wind Power Company			234,391				216,260				—				5,470
KOSPO Youngnam Power Co., Ltd.			392,690				300,222				150,659				1,198
VI Carbon Professional Private Special Asset Investment Trust 1			3,000				4				—				2
Chitose Solar Power Plant LLC			142,859				126,294				8,982				1,254
KEPCO Energy Solution Co., Ltd.			310,301				2,557				2,020				1,698
Solar School Plant Co., Ltd.			211,424				5,079				1,331				885
KOSPO Power Services Limitada			3,116				627				5,338				905
Energy New Industry Specialized Investment Private Investment Trust (*2)			233,953				2,321				7,875				3,735
KOEN Bylong Pty., Ltd.			—				57				—				(17	)
KOMIPO Bylong Pty., Ltd.			6				63				—				—
KOWEPO Bylong Pty., Ltd.			6				63				—				—
KOSPO Bylong Pty., Ltd.			4				41				—				—
EWP Bylong Pty., Ltd.			2				39				—				—
KOWEPO Lao International			8,029				407				4,285				2,713
KEPCO US Inc.			17,848				—				—				—
KEPCO Alamosa LLC			34,537				77				65				(128	)
KEPCO Solar of Alamosa, LLC			64,044				47,527				4,772				54
KEPCO-LG CNS Mangilao Holdings LLC			28,455				31,909				—				(503	)
Mangilao Investment LLC			41,651				5				—				(5	)
KEPCO-LG CNS Mangilao Solar, LLC			53,745				12,493				—				(77	)
Jeju Hanlim Offshore Wind Co., Ltd.			12,743				469				—				(1,497	)
PT. Siborpa Eco Power			11,718				15				—				(226	)
PT. Korea Energy Indonesia			1,779				183				1,286				102
KOLAT SpA			29,847				437				100				(84	)
KEPCO California, LLC			46,104				2,236				—				(873	)
KEPCO Mojave Holdings, LLC			105,751				72,352				—				(2,153	)
Incheon Fuel Cell Co., Ltd.			130,233				108,588				—				(550	)
KOEN Service Co., Ltd.			6,779				6,061				15,980				206
KOMIPO Service Co., Ltd.			3,571				3,147				13,626				(298	)
KOWEPO Service Co., Ltd.			5,566				3,460				14,677				1,178
KOSPO Service Co., Ltd.			3,138				3,275				10,237				(839	)
EWP Service Co., Ltd.			4,278				2,841				11,753				928
PT. KOMIPO Energy Indonesia			1,407				26				344				(1,076	)
KNF Partners Co., Ltd.			1,509				940				2,513				81
KOSPO USA Inc.			5,414				415				—				(988	)
Nambu USA LLC			497				—				—				245
Tamra Offshore Wind Power Co., Ltd.			153,053				117,126				10,619				1,727
KEPCO MCS Co., Ltd.			69,062				46,983				155,748				17,720
KEPCO FMS Co., Ltd.			8,522				12,796				37,582				(4,972	)
Firstkeepers Co., Ltd.			9,112				6,746				31,029				3,614
Secutec Co., Ltd.			10,748				5,943				29,669				4,711

46

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
June 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
SE Green Energy Co., Ltd.		W	131,554				105,787				287				(1,368	)
KEPCO Mangilao America LLC			2,073				—				—				—
Mangilao Intermediate Holdings LLC			86,490				63,052				—				(2,885	)
KEPCO CSC Co., Ltd.			7,213				3,973				17,388				2,454
KOAK Power Limited			14,889				106				—				(205	)
KOMIPO Europe B.V.			21,862				1,590				132				(73	)
Haenanum Energy Fund			28,180				66				84				13
Paju Ecoenergy Co., Ltd.			53,631				32				—				33
Guam Ukudu Power LLC			629				—				—				(71	)
TS Energy No. 25 Co., Ltd.			29,213				45				—				(298	)
KPS Partners Co., Ltd.			696				4				—				(8	)
KEPCO E&C Service Co., Ltd.			490				—				—				(10	)

(*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.

47

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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
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

48

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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

49

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 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 June 30, 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 June 30, 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.

50

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(6) Details of non-controlling interest prior to intra-group eliminations as of and for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
June 30, 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	222,590				740,357				228,041				1,017,863				2,208,851
Non-current assets			149,079				573,039				471,559				3,484,108				4,677,785
Current liabilities			(12,274	)			(209,885	)			(191,285	)			(473,684	)			(887,128	)
Non-current liabilities			(43,418	)			(52,674	)			(30,457	)			(2,438,599	)			(2,565,148	)
Net assets			315,977				1,050,837				477,858				1,589,688				3,434,360
Book value of non-controlling interest			154,829				514,910				162,089				589,080				1,420,908
Sales			42,180				576,442				177,952				434,177				1,230,751
Profit for the period			24,804				64,880				2,337				57,527				149,548
Profit for the period attributable to non-controlling interest			12,154				31,791				793				22,531				67,269
Cash flows from operating activities			63,217				45,514				15,863				226,787				351,381
Cash flows from investing activities			4,331				70,156				(13,868	)			(431,808	)			(371,189	)
Cash flows from financing activities before dividends to non-controlling interest			(17,901	)			(46,084	)			(8,510	)			164,495				92,000
Dividends to non-controlling interest			(17,199	)			(42,336	)			(4,000	)			(3,476	)			(67,011	)
Effect of exchange rate fluctuation			1,613				(630	)			41				2,207				3,231
Net increase (decrease) of cash and cash equivalents			34,061				26,620				(10,474	)			(41,795	)			8,412
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 (loss) for the year			40,818				157,737				26,398				(48,963	)			175,990
Profit (loss) 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

51

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

(i) Details of goodwill as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 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

52

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won
June 30, 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				1,701,973
Gemeng International Energy Co., Ltd.		Power generation			CHINA				34.00	%			413,153				677,508
PT. Bayan Resources TBK		Resources development			INDONESIA				20.00	%			615,860				439,203
Korea Power Exchange (*2)		Management of power market and others			KOREA				100.00	%			127,839				267,622
GS Donghae Electric Power Co., Ltd.		Power generation			KOREA				34.00	%			204,000				250,249
Hyundai Green Power Co., Ltd.		Power generation			KOREA				29.00	%			88,885				120,360
PT. Cirebon Electric Power		Power generation			INDONESIA				27.50	%			40,365				125,696
S-Power Co., Ltd.		Power generation			KOREA				49.00	%			132,300				115,060
Dongducheon Dream Power Co., Ltd. (*3)		Power generation			KOREA				33.61	%			148,105				77,853
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			LAOS				25.00	%			87,426				70,254
Shin Pyeongtaek Power Co., Ltd.		Power generation			KOREA				40.00	%			72,000				71,109
SPC Power Corporation		Power generation			PHILIPPINES				38.00	%			20,635				67,411
Korea Electric Power Corporation Fund (*4)		Developing electric enterprises			KOREA				98.09	%			51,500				41,152
YTN Co., Ltd.		Broadcasting			KOREA				21.43	%			59,000				39,978
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant			NEPAL				60.35	%			50,268				45,786
PT. Wampu Electric Power		Power generation			INDONESIA				46.00	%			21,292				32,061
Others (Daeryun Power Co., Ltd. and 57 others)													335,524				148,845
												W	2,562,652				4,292,120
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			JAMAICA				40.00	%			301,910				281,236
KEPCO SPC Power Corporation (*6)		Construction and operation of utility plant			PHILIPPINES				75.20	%			94,579				235,765
Amman Asia Electric Power Company (*6)		Power generation			JORDAN				60.00	%			111,476				191,893
Datang Chifeng Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			121,928				185,215
Rabigh Electricity Company		Power generation			SAUDI ARABIA				40.00	%			109,743				104,517
Kelar S.A. (*6)		Power generation			CHILE				65.00	%			78,060				70,375
Solar Philippines Calatagan Corporation		Power generation			PHILIPPINES				38.00	%			47,903				50,782
RE Barren Ridge 1 Holdings LLC		Power generation			USA				50.00	%			28,021				7,272
RE Holiday Holdings LLC		Power generation			USA				50.00	%			42,948				70,148
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			10,858				43,375
Chun-cheon Energy Co., Ltd.		Power generation			KOREA				29.90	%			52,700				29,865
Chile Solar JV SpA		Power generation			CHILE				50.00	%			37,689				33,257
PT. Tanjung Power Indonesia		Power generation			INDONESIA				35.00	%			26,892				32,233
Shuweihat Asia Power Investment B.V.		Holding company			NETHERLAND				49.00	%			44,405				9,725
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				51,689
Others (Daegu Green Power Co., Ltd. and 55 others)													405,292				396,791
													1,542,295				1,794,138
												W	4,104,947				6,086,258

(*1) The effective percentage of ownership is 22.02% 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.

53

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of June 30, 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.

54

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won
Investees		June 30, 2020				December 31, 2019
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		W	30,064				33,089
Korea Gas Corporation			495,180				715,365
YTN Co., Ltd.			14,760				18,450
SPC Power Corporation			121,290				117,230
PT. Bayan Resources TBK			703,905				880,860

(3) Changes in investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
June 30, 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	)			34,139				(18,652	)			(299	)			1,701,973
Gemeng International Energy Co., Ltd.			670,896				—				—				—				(8,464	)			16,176				(1,100	)			677,508
PT. Bayan Resources TBK			445,141				—				—				—				10,251				(16,160	)			(29	)			439,203
Korea Power Exchange			258,899				—				—				—				8,802				—				(79	)			267,622
GS Donghae Electric Power Co., Ltd.			255,983				—				—				(12,898	)			7,164				—				—				250,249
Hyundai Green Power Co., Ltd.			124,253				—				—				(8,889	)			4,996				—				—				120,360
PT. Cirebon Electric Power			123,425				—				—				(4,695	)			3,485				3,481				—				125,696
S-Power Co., Ltd.			115,784				—				—				—				(724	)			—				—				115,060
Dongducheon Dream Power Co., Ltd.			76,547				—				—				—				1,306				—				—				77,853
Xe-Pian Xe-Namnoy Power Co., Ltd.			72,935				—				—				—				(3,252	)			571				—				70,254
Shin Pyeongtaek Power Co., Ltd.			66,956				—				—				—				4,153				—				—				71,109
SPC Power Corporation			63,583				—				—				(5,564	)			2,649				6,790				(47	)			67,411
Korea Electric Power Corporation Fund			41,126				—				—				—				(582	)			608				—				41,152
YTN Co., Ltd.			39,747				—				—				(90	)			331				(6	)			(4	)			39,978
Nepal Water & Energy Development Company Private Limited			31,145				14,697				—				—				(1,571	)			1,515				—				45,786
PT. Wampu Electric Power			29,355				—				—				—				1,627				1,079				—				32,061
Others (Daeryun Power Co., Ltd. and 58 others)			142,060				7,218				(108	)			(6,536	)			5,823				(792	)			1,180				148,845
		W	4,251,802				21,915				(108	)			(45,854	)			70,133				(5,390	)			(378	)			4,292,120

55

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
June 30, 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				—				—				—				14,792				9,318				3,519				281,236
KEPCO SPC Power Corporation			214,794				—				—				(16,120	)			28,348				8,871				(128	)			235,765
Amman Asia Electric Power Company			192,164				—				—				—				10,434				(10,705	)			—				191,893
Datang Chifeng Renewable Power Co., Ltd.			185,307				—				—				(13,453	)			9,078				4,283				—				185,215
Rabigh Electricity Company			109,096				—				—				—				11,286				(15,865	)			—				104,517
Kelar S.A.			70,462				—				—				—				9,339				(9,525	)			99				70,375
Solar Philippines Calatagan Corporation			48,930				—				—				(2,872	)			3,501				1,223				—				50,782
RE Barren Ridge 1 Holdings LLC			42,916				—				—				(834	)			(33,341	)			(1,469	)			—				7,272
RE Holiday Holdings LLC			42,070				—				—				—				27,398				680				—				70,148
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			41,024				—				—				—				1,394				957				—				43,375
Chun-cheon Energy Co., Ltd.			34,872				—				—				—				(5,007	)			—				—				29,865
Chile Solar JV SpA			34,859				—				—				—				152				(1,754	)			—				33,257
PT. Tanjung Power Indonesia			34,327				—				—				—				5,031				(7,125	)			—				32,233
Shuweihat Asia Power Investment B.V.			18,318				—				—				(1,656	)			2,477				(9,414	)			—				9,725
RE Pioneer Holdings LLC			31,156				—				—				(830	)			21,061				302				—				51,689
Others (Daegu Green Power Co., Ltd. and 55 others)			309,127				66,598				—				(8,907	)			30,454				(475	)			(6	)			396,791
			1,663,029				66,598				—				(44,672	)			136,397				(30,698	)			3,484				1,794,138
		W	5,914,831				88,513				(108	)			(90,526	)			206,530				(36,088	)			3,106				6,086,258
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

56

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the six-month period ended June 30, 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

57

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
June 30, 2020
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	37,490,659				29,475,392				12,062,361				47,030
Gemeng International Energy Co., Ltd.			7,374,474				5,381,804				864,442				(7,771	)
PT. Bayan Resources TBK			1,629,322				911,121				839,807				91,428
Korea Power Exchange			333,105				65,482				51,246				7,104
GS Donghae Electric Power Co., Ltd.			2,194,161				1,458,136				342,547				21,068
Hyundai Green Power Co., Ltd.			1,093,509				678,473				231,631				12,785
PT. Cirebon Electric Power			826,136				369,059				116,272				12,136
S-Power Co., Ltd.			786,079				548,070				238,966				(1,092	)
Dongducheon Dream Power Co., Ltd.			1,413,034				1,141,975				242,996				3,312
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,254,566				969,091				67,835				(12,662	)
Shin Pyeongtaek Power Co., Ltd.			934,124				746,397				302,580				13,448
SPC Power Corporation			269,347				20,033				23,087				21,822
Korea Electric Power Corporation Fund			42,076				126				93				(398	)
YTN Co., Ltd.			283,296				96,733				54,216				1,769
Nepal Water & Energy Development Company Private Limited			85,604				12,166				—				(226	)
PT. Wampu Electric Power			229,179				159,480				9,630				3,866
<Joint ventures>
Jamaica Public Service Company Limited			1,688,125				1,017,782				515,946				21,045
KEPCO SPC Power Corporation			335,206				21,689				98,236				39,541
Amman Asia Electric Power Company			851,052				531,230				11,517				17,392
Datang Chifeng Renewable Power Co., Ltd.			763,745				300,707				62,989				23,841
Rabigh Electricity Company			2,619,640				2,198,883				148,795				67,228
Kelar S.A.			652,421				548,409				49,290				9,052
Solar Philippines Calatagan Corporation			104,903				49,411				10,782				6,739
RE Barren Ridge 1 Holdings LLC			105,725				91,182				2,863				(977	)
RE Holiday Holdings LLC			331,561				191,265				3,405				2,034
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			193,406				84,969				13,741				3,321
Chun-cheon Energy Co., Ltd.			610,231				509,528				126,067				(16,746	)
Chile Solar JV SpA			70,296				3,781				2,547				1,407
PT. Tanjung Power Indonesia			725,540				633,446				50,106				13,348
Shuweihat Asia Power Investment B.V.			19,852				5				—				(155	)
RE Pioneer Holdings LLC			247,008				143,630				3,001				2,115

(*) The profit for the six-month period ended June 30, 2020 is reduced by the associate entity’s net income attributable to non-controlling interests.

58

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month period ended June 30, 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.

59

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won
June 30, 2020
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	8,015,267				22.02	%			1,764,962				—				—				(62,989	)			1,701,973
Gemeng International Energy Co., Ltd.			1,992,670				34.00	%			677,508				—				—				—				677,508
PT. Bayan Resources TBK			718,201				20.00	%			143,640				371,942				—				(76,379	)			439,203
Korea Power Exchange			267,622				100.00	%			267,622				—				—				—				267,622
GS Donghae Electric Power Co., Ltd.			736,025				34.00	%			250,249				—				—				—				250,249
Hyundai Green Power Co., Ltd.			415,036				29.00	%			120,360				—				—				—				120,360
PT. Cirebon Electric Power			457,076				27.50	%			125,696				—				—				—				125,696
S-Power Co., Ltd.			238,009				49.00	%			116,624				—				(1,564	)			—				115,060
Dongducheon Dream Power Co., Ltd.			271,059				34.01	%			92,187				1,757				(3,509	)			(12,582	)			77,853
Xe-Pian Xe-Namnoy Power Co., Ltd.			285,475				25.00	%			71,369				305				(1,131	)			(289	)			70,254
Shin Pyeongtaek Power Co., Ltd.			187,727				40.00	%			75,091				12,800				(16,782	)			—				71,109
SPC Power Corporation			249,315				38.00	%			94,740				—				—				(27,329	)			67,411
Korea Electric Power Corporation Fund			41,950				98.09	%			41,149				—				—				3				41,152
YTN Co., Ltd.			186,564				21.43	%			39,978				—				—				—				39,978
Nepal Water & Energy Development Company Private Limited			73,438				61.02	%			44,815				971				—				—				45,786
PT. Wampu Electric Power			69,699				46.00	%			32,061				—				—				—				32,061
<Joint ventures>
Jamaica Public Service Company Limited			670,342				40.00	%			268,136				42,937				—				(29,837	)			281,236
KEPCO SPC Power Corporation			313,517				75.20	%			235,765				—				—				—				235,765
Amman Asia Electric Power Company			319,822				60.00	%			191,893				—				—				—				191,893
Datang Chifeng Renewable Power Co., Ltd.			463,037				40.00	%			185,215				—				—				—				185,215
Rabigh Electricity Company			420,757				40.00	%			168,303				—				(62,981	)			(805	)			104,517
Kelar S.A.			104,012				65.00	%			67,608				2,767				—				—				70,375
Solar Philippines Calatagan Corporation			55,492				38.00	%			21,087				29,695				—				—				50,782
RE Barren Ridge 1 Holdings LLC			14,543				50.00	%			7,272				—				—				—				7,272
RE Holiday Holdings LLC			140,297				50.00	%			70,148				—				—				—				70,148
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			108,438				40.00	%			43,375				—				—				—				43,375
Chun-cheon Energy Co., Ltd.			100,703				29.90	%			30,110				3				—				(248	)			29,865
Chile Solar JV SpA			66,515				50.00	%			33,257				—				—				—				33,257
PT. Tanjung Power Indonesia			92,095				35.00	%			32,233				—				—				—				32,233
Shuweihat Asia Power Investment B.V.			19,848				49.00	%			9,725				—				—				—				9,725
RE Pioneer Holdings LLC			103,378				50.00	%			51,689				—				—				—				51,689

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

60

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 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.

61

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of June 30, 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		June 30, 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			7				192				6				185
Gunsan Bio Energy Co., Ltd.			146				3,438				1,090				3,292
Daehan Wind Power PSC			2,618				2,618				—				—
Hyundai Energy Co., Ltd.			(2,322	)			36,409				12,890				38,731
Nghi Son 2 Power LLC			110,804				213,628				61,165				102,824
Samcheok Eco Materials Co., Ltd.			(3	)			785				(497	)			788
Naepo Green Energy Co., Ltd.			(3,766	)			5,515				9,281				9,281
Barakah One Company			(54,983	)			61,113				116,096				116,096
Pioneer Gas Power Limited			7,930				8,044				114				114
Korea Nuclear Partners Co., Ltd.,			68				68				—				—
Incheon New Power Co., Ltd.			107				107				—				—
Ecollite Co., Ltd.			1,180				1,180				—				—
Green Energy Electricity Generation Co., Ltd.			199				199				—				—
Bigeum Resident Photovoltaic Power Co., Ltd			11				11				—				—

62

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of June 30, 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., Ltd. 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.

63

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of June 30, 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.

64

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 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		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.
Chester Solar V SpA		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.
Diego de Almagro Solar SpA		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.
Laurel SpA		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.
Chester Solar I SpA		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.
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.

65

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 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.

66

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	13,885,574				(23,464	)			—				—				13,862,110
Buildings			21,274,409				(59,495	)			(8,734,148	)			(4,962	)			12,475,804
Structures			72,010,758				(183,497	)			(26,771,923	)			(9,633	)			45,045,705
Machinery			91,263,830				(150,084	)			(41,319,022	)			(461,034	)			49,333,690
Ships			2,279				—				(2,128	)			—				151
Vehicles			312,052				(1,319	)			(246,819	)			(116	)			63,798
Equipment			1,786,680				(161	)			(1,420,214	)			(42	)			366,263
Tools			1,116,433				(270	)			(966,760	)			(38	)			149,365
Construction-in-progress			31,666,075				(77,426	)			—				(158,598	)			31,430,051
Right-of-use assets			7,732,107				—				(3,092,610	)			—				4,639,497
Asset retirement costs			11,600,069				—				(4,378,324	)			(146,423	)			7,075,322
Others			13,184,845				—				(10,788,676	)			—				2,396,169
		W	265,835,111				(495,716	)			(97,720,624	)			(780,846	)			166,837,925

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

67

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Acquisitions				Disposals				Depreciation				Impairment (Reversals)				Others				Ending balance
Land		W	13,848,063				51				(12,078	)			(23	)			—				49,561				13,885,574
(Government grants)			(21,817	)			—				2				—				—				(1,649	)			(23,464	)
Buildings			12,445,706				394				(5,402	)			(422,894	)			—				517,495				12,535,299
(Government grants)			(61,920	)			—				—				2,570				—				(145	)			(59,495	)
Structures			45,178,870				342				(184,491	)			(1,204,013	)			—				1,438,494				45,229,202
(Government grants)			(186,554	)			—				1,048				4,748				—				(2,739	)			(183,497	)
Machinery			49,907,300				207,657				(88,034	)			(2,720,010	)			(9,162	)			2,186,023				49,483,774
(Government grants)			(158,907	)			—				224				8,599				—				—				(150,084	)
Ships			201				—				—				(50	)			—				—				151
Vehicles			70,585				1,793				(50	)			(16,216	)			—				9,005				65,117
(Government grants)			(2,275	)			—				—				987				—				(31	)			(1,319	)
Equipment			374,115				33,916				(272	)			(88,878	)			—				47,543				366,424
(Government grants)			(241	)			—				—				87				—				(7	)			(161	)
Tools			164,064				7,994				(11	)			(37,709	)			—				15,297				149,635
(Government grants)			(403	)			—				—				134				—				(1	)			(270	)
Construction-in-progress			28,419,470				6,660,162				(163	)			—				6,737				(3,578,729	)			31,507,477
(Government grants)			(61,211	)			4,967				—				—				—				(21,182	)			(77,426	)
Right-of-use assets			4,783,573				137,393				(189	)			(299,281	)			—				18,001				4,639,497
Asset retirement costs			7,374,527				28				—				(414,163	)			—				114,930				7,075,322
Others			2,628,681				2,902				(4,329	)			(458,955	)			—				227,870				2,396,169
		W	164,701,827				7,057,599				(293,745	)			(5,645,067	)			(2,425	)			1,019,736				166,837,925

68

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the six-month period ended June 30 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’ include the amounts reclassified from construction-in-progress to other assets during the prior year relating to the assets which became usable 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.

69

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

19. Investment Properties

(1) Investment properties as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	134,708				—				—				134,708
Buildings			58,503				(11	)			(33,282	)			25,210
		W	193,211				(11	)			(33,282	)			159,918

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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Depreciation				Others				Ending balance
Land		W	129,897				—				4,811				134,708
Buildings			28,696				(735	)			(2,740	)			25,221
(Government grants)			(13	)			—				2				(11	)
		W	158,580				(735	)			2,073				159,918

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

70

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Rental income		W	2,292				3,571				2,872				5,079
Operating and maintenance expenses related to rental income			(378	)			(735	)			(235	)			(479	)
Operating and maintenance expenses not related to rental income			—				—				(3,812	)			(3,812	)
		W	1,914				2,836				(1,175	)			788

(4) Fair value of investment properties as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Book value				Fair value				Book value				Fair value
Land		W	134,708				225,470				129,897				202,042
Buildings			25,210				34,777				28,683				38,046
		W	159,918				260,247				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.

71

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

20. Construction Contracts

(1) Changes in major contract amount in which revenue is not yet recognized for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won

June 30, 2020

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

2,735,141

1,424,548

(471,378

)

3,688,311

(*) For the six-month period ended June 30, 2020, the increase in balance of contracts from new orders and foreign exchange impact is W1,446,846 million and the decrease in balance of contracts due to changes in scope of construction work is W22,298 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 increase in balance of contracts from new orders and foreign exchange impact is W390,224 million and the decrease in balance of contracts due to changes in scope of construction work is W10,955 million.

(2) Accumulated earned revenue, costs and others related to the Group’s construction contracts as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won

June 30, 2020

Accumulated earned revenue

Accumulated costs

Accumulated profit

Nuclear power plant construction in UAE and others

W

21,120,127

19,698,473

1,421,654

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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won

June 30, 2020

December 31, 2019

Assets (*1)

Liabilities (*2)

Assets (*1)

Liabilities (*2)

Nuclear power plant construction in UAE and others

W

54,579

3,988

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.

72

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

20. Construction Contracts, Continued

(5) Operating segments information related to the contracts for which the Group recognizes revenue based on the percentage-of-completion on a cost-based input method for the six-month period ended June 30, 2020 are as follows:

In millions of won		June 30, 2020
		Effect from changes in accounting estimates																				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				Changes in estimated total contract costs				Gross				Allowance for doubtful accounts				Gross				Allowance for doubtful accounts
Transmission and distribution		W	—				9,736				2,293				7,443				60,956				24,268				—				—				—
Plant maintenance & engineering service			997				(15,896	)			(30,293	)			14,397				(7,846	)			30,310				170				53,422				602
		W	997				(6,160	)			(28,000	)			21,840				53,110				54,578				170				53,422				602

21. Intangible Assets other than Goodwill

(1) Intangible assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	728,336				(181	)			(578,828	)			—				149,327
Licenses and franchises			3,398				—				(3,398	)			—				—
Copyrights, patents rights and other industrial rights			100,730				—				(45,075	)			(9,178	)			46,477
Mining rights			596,912				—				(32,538	)			(521,505	)			42,869
Development expenditures			943,013				(5,852	)			(842,402	)			(19	)			94,740
Intangible assets under development			68,293				(6,715	)			—				(12,845	)			48,733
Usage rights of donated assets and others			582,825				—				(399,015	)			—				183,810
Leasehold rights			27,843				—				(21,088	)			—				6,755
Greenhouse gas emissions rights			160,548				—				—				—				160,548
Others			573,300				(77	)			(129,048	)			(15,549	)			428,626
		W	3,785,198				(12,825	)			(2,051,392	)			(559,096	)			1,161,885

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

73

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Acquisitions				Disposals				Amortization				Impairment				Others				Ending balance
Software		W	164,995				5,926				(9,271	)			(34,521	)			—				22,379				149,508
(Government grants)			(235	)			—				—				54				—				—				(181	)
Copyrights, patents rights and other industrial rights			53,261				160				—				(4,189	)			—				(2,755	)			46,477
Mining rights			43,723				1,622				—				(2,938	)			—				462				42,869
Development expenditures			93,843				426				—				(15,511	)			—				21,834				100,592
(Government grants)			(1,492	)			—				—				644				—				(5,004	)			(5,852	)
Intangible assets under development			60,490				21,270				—				—				—				(26,312	)			55,448
(Government grants)			(11,029	)			—				—				—				—				4,314				(6,715	)
Usage rights of donated assets and others			193,161				—				—				(9,118	)			—				(233	)			183,810
(Government grants)			—				—				—				—				—				—				—
Leasehold rights			5,318				—				—				(416	)			—				1,853				6,755
Greenhouse gas emissions rights			41,656				62,852				(26,293	)			—				—				82,333				160,548
Others			426,364				512				(45	)			(11,617	)			(3,505	)			16,994				428,703
(Government grants)			(79	)			—				—				2				—				—				(77	)
		W	1,069,976				92,768				(35,609	)			(77,610	)			(3,505	)			115,865				1,161,885

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.

74

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of Australian dollars
June 30, 2020
Type		Description		Currency		Amount				Remaining useful lives
Software		ERP system and others		KRW			257			8 months ~ 10 months
		Electricity sales information system		KRW			5,278			2 years and 5 months
Copyrights, patents rights and other industrial rights		Smart technology verification and standard design project conducting right		KRW			5,553			2 years and 3 months
		Contributions to ARP NRC DC		KRW			31,300			7 years and 6 months
Mining rights		Mining right of Bylong mine		AUD			—			—  (*)
Development expenditures		Electricity sales information system		KRW			11,756			1 year and 8 months
Usage rights of donated assets and others		Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right		KRW KRW			29,116 4,722			6 years and 5 months 9 months
Others		Occupancy and use of public waters		KRW			89,741			16 years and 7 months
		Greenhouse gas emissions rights		KRW			160,548			—
		Business rights		KRW			169,081			29 years and 5 months

(*) The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

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. had recognized impairment losses in full.

(4) For the six-month periods ended June 30, 2020 and 2019, the Group recognized research and development expenses of W299,371 million and W311,088 million, respectively.

75

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

22. Trade and Other Payables

Trade and other payables as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Trade payables		W	1,675,174				—				2,859,721				—
Other trade payables			2,132,618				2,485,331				1,952,659				2,446,714
Accrued expenses			1,157,543				84,903				1,028,869				2,033
Leasehold deposits received			2,568				709				2,571				709
Other deposits received			88,421				65,780				163,382				68,702
Lease liabilities			648,003				4,398,469				635,349				4,434,784
Dividends payable			5,829				—				6,851				—
Others (*)			—				11,278				—				12,818
		W	5,710,156				7,046,470				6,649,402				6,965,760

(*) Details of others as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Current liabilities
Short-term borrowings		W	1,314,562				1,098,555
Current portion of long-term borrowings			135,151				217,579
Current portion of debt securities			6,655,161				7,545,485
Less: Current portion of discount on long-term borrowings			(1,031	)			(1,000	)
Less: Current portion of discount on debt securities			(2,783	)			(2,780	)
			8,101,060				8,857,839
Non-current liabilities
Long-term borrowings			3,516,969				3,411,052
Debt securities			59,268,007				55,716,183
Less: Discount on long-term borrowings			(18,042	)			(21,309	)
Less: Discount on debt securities			(160,484	)			(88,920	)
Add: Premium on debt securities			1,593				1,696
			62,608,043				59,018,702
		W	70,709,103				67,876,541

76

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(2) Repayment schedule of borrowings and debt securities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won
June 30, 2020
Type		Borrowings				Debt securities
Less than 1 year		W	1,449,713				6,655,161
1 ~ 5 years			2,216,228				32,001,468
Over 5 years			1,300,741				27,266,539
		W	4,966,682				65,923,168

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

77

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies

June 30, 2020

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

0.78 ~ 1.57

2020.07.09 ~ 2020.08.27

—

W

1,010,000

Electronic short-term bonds

KB Securities and others

0.61 ~ 0.95

2020.07.06 ~ 2020.09.04

—

180,000

Foreign short-term borrowings

Korea Development Bank and others

1.27 ~ 2.06

2020.08.24 ~ 2020.09.23

USD

21,460

25,766

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 55bp ~ 1M Libor + 125bp

2020.08.17 ~ 2020.09.02

USD

77,756

93,362

Foreign short-term borrowings

BDO Unibank

3M BVAL + 50bp

2020.12.20

PHP

225,000

5,434

W

1,314,562

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

78

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
June 30, 2020
Type				Interest rate (%)		Maturity				Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others		0.50			2020~2044				—			W	3,223
		Facility		2.50~4.60			2023~2028				—				55,671
		Operating funds		2.33~2.87			2022~2023				—				34,300
		Operating funds		1yr KoFC bond rate +0.95			2022				—				10,000
Hana Bank		Commercial Paper		3M CD+0.13~0.32			2021~2024				—				1,150,000
		Facility		4.60			2028				—				11,785
		Facility		3yr KTB rate-1.25 Standard overdraft rate+2.45			2020~2035				—				29,752
IBK		PF Refinancing		CD+1.25			2030				—				10,020
Export-Import Bank of Korea		Project loans		1.50			2026				—				17,677
		Operating funds		3.04			2023				—				15,700
Korea Energy Agency		Development of power resources		3yr KTB rate-2.25			2023~2025				—				3,747
		Facility		3yr KTB rate-2.25			2020~2024				—				1,792
		Project loans		—			2023				—				1,197
		Others		KTB rate-2.25			2024~2028				—				14,870
Shinhan Bank		Facility		CB rate+1.10			2028				—				17,677
		Others		3.95			2034				—				91,725
		Others		Standard overdraft rate+1.00			2034				—				91,725
Kookmin Bank		Facility		MOR+0.79 3M CD+1.79			2023~2031				—				31,846
Others		Facility		1.75~6.80			2026~2037				—				481,465
		Facility		CB rate+1.20 3M CD+1.60 Standard overdraft rate+2.45			2023~2037				—				79,028
		PF Refinancing		4.10			2030				—				27,833
		Others		4.50~7.90			2022~2039				—				107,131
															2,288,164
Foreign long-term borrowings
Korea Energy Agency		Project loans		—			2021~2023			USD	8,744				10,499
Export-Import Bank of Korea and others		Direct loan and others		1M Libor+1.80~3.20			2036			USD	98,818				118,651
		Direct loan and others		3M Libor+2.75~3.70			2027			JOD	140,162				237,365
		PF Loan		6M Libor+2.50~2.70			2032			USD	116,151				139,463
		Others		3.88			2021			USD	289,868				348,045
POSCO and others		Shareholder’s loan		8.00			2023			USD	12,927				15,521
		Shareholder’s loan		8.00			2031			JOD	4,853				8,218
Samsung Life Insurance and others		Syndicated Loan		3.10			2032			JPY	4,682,816				52,263
Woori Bank and others		Syndicated Loan		JPY 6M Libor+2.00			2032			JPY	3,020,746				33,713
IFC and others		Others		6M Libor+5.00			2031			USD	233,350				280,183
Federal Financing Bank and others		PF Loan		2.39~13.00			2031~2038			USD	98,792				118,620
Others		Others		—			—			USD	1,178				1,415
															1,363,956
															3,652,120
Less: Discount on long-term borrowings															(19,073	)
Less: Current portion of long-term borrowings															(135,151	)
Add: Current portion of discount on long-term borrowings															1,031
														W	3,498,927

79

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of June 30, 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

80

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won
		Issue date				Maturity				Interest rate (%)				June 30, 2020				December 31, 2019
Electricity bonds			2010.07.08~2020.04.29				2020.07.08~2049.10.24				1.32~5.06			W	28,960,000				28,450,000
Corporate bonds (*)			2009.10.16~2020.06.18				2020.07.02~2050.06.18				1.29~6.00				25,573,577				24,463,577
															54,533,577				52,913,577
Less: Discount on local debt securities															(45,503	)			(42,274	)
Less: Current portion of local debt securities															(5,890,000	)			(6,340,000	)
Add: Current portion of discount on local debt securities															1,642				1,409
														W	48,599,716				46,532,712

(*) Among the corporate bonds, each holder of HeeMang Sunlight Power Co., Ltd.’s private equity bonds, amounting to W2,697 million, may exercise the right to early redemption on the 5th year (March 31, 2021) from the date of issuance of the bond and thereafter every year on March 31, until the year immediately preceding the redemption date.

(6) Foreign debt securities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
June 30, 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	278,701			W	334,636
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00		USD	314,717				377,881
FY-04		2004.04.23		2034.04.23		5.13		USD	286,920				344,505
FY-11		2011.07.13		2021.07.13		4.75		USD	500,000				600,350
FY-12		2012.09.19		2022.09.19		3.00		USD	750,000				900,525
FY-13		2013.09.25		2020.09.25		5.75		AUD	325,000				268,164
FY-14		2014.07.30		2029.07.30		3.57		USD	100,000				120,070
FY-15		2015.06.15		2025.06.15		3.25		USD	300,000				360,210
FY-16		2016.01.21		2021.07.21		2.50		USD	300,000				360,210
FY-17		2017.06.19~2017.07.25		2022.06.19~2027.07.25		2.38~3.13		USD	800,000				960,560
FY-17		2017.10.30		2037.10.30		1.70		EUR	40,000				54,008
FY-17		2017.11.16		2037.11.16		2.36		SEK	450,000				57,924
FY-18		2018.01.29~2018.07.25		2021.01.29~2023.07.25		3.00~3.88		USD	1,800,000				2,161,260
FY-18		2018.03.13		2028.03.13		3.35		HKD	1,650,000				255,618
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38		USD	800,000				960,560
FY-19		2019.02.27		2024.02.27		0.13		CHF	200,000				252,446
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05		CHF	300,000				378,669
FY-19		2019.07.22		2022.07.22		2.38		USD	300,000				360,210
FY-19		2019.10.30		2024.10.30		3M BBSW+97bp		AUD	300,000				247,536
FY-19		2019.12.19		2037.12.31		3.30~5.70		USD	394,220				473,339
FY-20		2020.02.03		2025.02.23		2.13		USD	300,000				360,210
FY-20		2020.06.15		2025.06.15		1.13		USD	500,000				600,350
FY-20		2020.05.06		2025.05.06		1.75		USD	500,000				600,350
													11,389,591
Less: Discount on foreign debt securities													(117,764	)
Add: Premium on foreign debt securities													1,593
Less: Current portion of foreign debt securities													(765,161	)
Add: Current portion of discount on foreign debt securities													1,141
												W	10,509,400

81

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of June 30, 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 six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020				June 30, 2019
Beginning balance		W	67,876,541				61,034,627
Cash flow			2,439,902				4,021,612
Effect of exchange rate fluctuations			461,094				469,385
Others			(68,434	)			(3,666	)
Ending balance		W	70,709,103				65,521,958

82

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 W14,550 million as expense for the six-month period ended June 30, 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 W1,197 million as expense for the six-month period ended June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Acquisition cost				Accumulated depreciation				Book value
Land		W	722,394				(74,059	)			648,335
Buildings			55,650				(26,772	)			28,878
Structures			28,458				(3,453	)			25,005
Machinery			1,308				(548	)			760
Ships			4,214,611				(643,505	)			3,571,106
Vehicles			24,607				(10,634	)			13,973
Others (*)			2,685,079				(2,333,639	)			351,440
		W	7,732,107				(3,092,610	)			4,639,497

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

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

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

83

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

24. Lease, Continued

(3) Changes in right-of-use assets for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Increase				Depreciation				Decrease				Others				Ending balance
Land		W	644,074				925				(24,794	)			—				28,130				648,335
Buildings			34,577				14,690				(13,077	)			—				(7,312	)			28,878
Structures			25,644				260				(899	)			—				—				25,005
Machinery			824				—				(64	)			—				—				760
Ships			3,688,289				100,857				(218,040	)			—				—				3,571,106
Vehicles			13,708				4,484				(3,790	)			—				(429	)			13,973
Others			376,457				16,177				(38,617	)			(189	)			(2,388	)			351,440
		W	4,783,573				137,393				(299,281	)			(189	)			18,001				4,639,497

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

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

(4) Lease liabilities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
Less than 1 year		W	688,213
1 ~ 5 years			2,346,292
More than 5 years			2,635,507
			5,670,012
Less: Discount			(623,540	)
Present value of lease payment		W	5,046,472

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

84

Table of Contents

`KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

24. Lease, Continued

(5) The details of the liquidity classification of lease liabilities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Current lease liabilities		W	648,003				635,349
Non-current lease liabilities			4,398,469				4,434,784
		W	5,046,472				5,070,133

(6) Changes in lease liabilities for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	5,070,133				128,230				(410,689	)			56,712				202,086				5,046,472

(*) Includes 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 and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Depreciation of right-of-use assets		W	150,644				299,280				138,430				273,570
Interest expenses of lease liabilities			26,266				56,712				21,824				42,205
Lease expenses for short-term leases			4,912				14,550				2,702				7,424
Lease expenses for leases of low-value assets			799				1,197				206				547
Variable lease payments			6,425				17,288				(4,361	)			(8,642	)
		W	189,046				389,027				158,801				315,105

(8) For the six-month periods ended June 30, 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 W443,724 million and W306,342 million, respectively.

85

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 115 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 and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won

June 30, 2020

June 30, 2019

Three-month period ended

Six-month period ended

Three-month period ended

Six-month period ended

Finance income on the net investment in the lease

W

30,843

61,689

20,755

41,182

(3) Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Less than 1 year		W	179,924				173,093
1 ~ 2 years			158,767				150,895
2 ~ 3 years			156,231				150,596
3 ~ 4 years			153,032				149,364
4 ~ 5 years			150,384				145,964
More than 5 years			1,812,436				1,740,652
			2,610,774				2,510,564
Less: Unearned finance income			(1,388,784	)			(1,331,723	)
Net investment in the lease (*)		W	1,221,990				1,178,841

(*) Net investment in the lease includes present value of unguaranteed residual value amounting to W17,304 million as of June 30, 2020.

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 16.74% per year as of June 30, 2020. (prior year : 3.5%~16.48%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	862				1,133
Bad debt expense			—				—
Reversal of allowance for doubtful accounts			(226	)			(271	)
Ending balance		W	636				862

86

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Net defined benefit asset		W	—				(1,047	)
Net defined benefit obligations			2,272,642				1,925,134
Other long-term employee benefit obligations			4,447				4,720
		W	2,277,089				1,928,807

(2) Principal assumptions on actuarial valuation as of June 30, 2020 and December 31, 2019 are as follows:

		June 30, 2020		December 31, 2019
Discount rate		1.68% ~ 1.89%		1.92% ~ 2.05%
Weighted average future salary and benefit levels		4.25%		4.39%
Weighted average duration		13.24 years		13.23 years

87

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

25. Employment Benefits, Continued

(3) Details of expense relating to defined benefit plans for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Current service cost		W	120,529				235,098				102,443				202,145
Interest cost			20,376				39,834				20,544				40,300
Expected return on plan assets			(10,387	)			(20,738	)			(10,203	)			(20,419	)
Past service cost			—				(2,027	)			—				—
Loss from settlement			—				—				(243	)			(478	)
		W	130,518				252,167				112,541				221,548

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

In millions of won		June 30, 2020								June 30, 2019
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Cost of sales		W	93,610				183,676				83,365				164,840
Selling and administrative expenses			22,802				41,694				14,511				28,222
Others (Construction-in-progress and others)			14,106				26,797				14,665				28,486
		W	130,518				252,167				112,541				221,548

In addition, for the six-month periods ended June 30, 2020 and 2019, employee benefit obligations expenses of W27,336 million and W38,008 million, respectively, are recognized as cost of sales; and W3,847 million and W8,579 million, respectively, are recognized as selling and administrative expenses; and W5,364 million and W7,365 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

88

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Present value of defined benefit obligation from funded plans		W	4,384,192				4,035,400
Fair value of plan assets			(2,111,550	)			(2,111,313	)
Net liabilities incurred from defined benefit plans		W	2,272,642				1,924,087

(5) Changes in the present value of defined benefit obligations for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	4,035,400				3,414,116
Current service cost			235,098				440,300
Interest cost (*)			39,834				83,619
Remeasurement component			135,655				(93,736	)
Past service cost			(2,027	)			301,442
Loss (profit) from settlement			—				(2,018	)
Actual payments			(60,012	)			(108,057	)
Others			244				(266	)
Ending balance		W	4,384,192				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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	2,111,313				1,775,331
Expected return			20,738				41,597
Remeasurement component			1,688				(11,186	)
Contributions by the employers			3,304				348,386
Actual payments			(25,493	)			(42,815	)
Ending balance		W	2,111,550				2,111,313

In addition, losses on accumulated remeasurement component amounted to W204,983 million and W117,779 million have been recognized as other comprehensive income or loss for the six-month period ended June 30, 2020 and for the year ended December 31, 2019, respectively.

89

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Equity instruments		W	216,244				189,235
Debt instruments			608,589				648,265
Bank deposit			232,348				199,743
Others			1,054,369				1,074,070
		W	2,111,550				2,111,313

For the six-month period ended June 30, 2020 and for the year ended December 31, 2019, actual returns on plan assets amounted to W22,426 million and W30,411 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Actuarial gain from changes in financial assumptions		W	89,222				(2,916	)
Experience adjustments, etc.			46,433				(90,820	)
Expected return			(1,688	)			11,186
		W	133,967				(82,550	)

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

90

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

26. Provisions

(1) Provisions as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Employment benefits
Provisions for employment benefits			W1,117,596				—				975,619				—
Litigation
Litigation provisions			35,588				56,454				39,177				49,221
Decommissioning cost
Nuclear plants			—				16,170,373				—				15,994,039
Spent fuel			473,351				880,010				401,741				953,539
Radioactive waste			79,537				1,806,954				77,053				1,811,029
PCBs			—				148,252				—				152,981
Other recovery provisions			—				29,778				—				10,773
Others
Power plant regional support program			166,900				—				140,133				—
Transmission regional support program			149,777				—				139,785				—
Provisions for financial guarantee			4				77,465				111				81,246
Provisions for RPS			50,180				—				2,889				—
Provisions for greenhouse gas emissions obligations			769,240				—				682,459				—
Others			122,262				16,872				145,754				13,220
			W2,964,435				19,186,158				2,604,721				19,066,048

91

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	975,619				563,484				(421,509	)			—				2				1,117,596
Litigation
Litigation provisions			88,398				26,420				(21,353	)			(18,648	)			17,225				92,042
Decommissioning cost
Nuclear plants			15,994,039				195,230				(18,896	)			—				—				16,170,373
Spent fuel			1,355,280				190,329				(192,248	)			—				—				1,353,361
Radioactive waste			1,888,082				21,290				(22,881	)			—				—				1,886,491
PCBs			152,981				1,508				(6,237	)			—				—				148,252
Other recovery provisions			10,773				18,704				—				—				301				29,778
Others
Power plant regional support program			140,133				39,445				(20,307	)			—				7,629				166,900
Transmission regional support program			139,785				106,823				(96,831	)			—				—				149,777
Provisions for financial guarantee			81,357				6,038				—				(9,926	)			—				77,469
Provisions for RPS			2,889				207,384				(160,093	)			—				—				50,180
Provisions for greenhouse gas emissions obligations			682,459				88,331				—				(23,349	)			21,799				769,240
Others			158,974				15,095				(34,603	)			(2,845	)			2,513				139,134
		W	21,670,769				1,480,081				(994,958	)			(54,768	)			49,469				22,150,593

In millions of won		December 31, 2019
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits			W976,347				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
			W18,180,546				5,619,551				(2,053,071	)			(86,804	)			10,547				21,670,769

92

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

27. Government Grants

(1) Government grants as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Land		W	(23,464	)			(21,817	)
Buildings			(59,495	)			(61,920	)
Structures			(183,497	)			(186,554	)
Machinery			(150,084	)			(158,907	)
Vehicles			(1,319	)			(2,275	)
Equipment			(161	)			(241	)
Tools			(270	)			(403	)
Construction-in-progress			(77,426	)			(61,211	)
Investment properties			(11	)			(13	)
Software			(181	)			(235	)
Development expenditures			(5,852	)			(1,492	)
Intangible assets under development			(6,715	)			(11,029	)
Other intangible assets			(77	)			(79	)
		W	(508,552	)			(506,176	)

93

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				Receipt				Acquisitions				Offset items with depreciation expense and others				Disposals				Others				Ending balance
Cash		W	—				(21,436	)			—				—				—				21,436				—
Land			(21,817	)			—				—				—				2				(1,649	)			(23,464	)
Buildings			(61,920	)			—				—				2,570				—				(145	)			(59,495	)
Structures			(186,554	)			—				—				4,748				1,048				(2,739	)			(183,497	)
Machinery			(158,907	)			—				—				8,599				224				—				(150,084	)
Vehicles			(2,275	)			—				—				987				—				(31	)			(1,319	)
Equipment			(241	)			—				—				87				—				(7	)			(161	)
Tools			(403	)			—				—				134				—				(1	)			(270	)
Construction-in-progress			(61,211	)			—				4,967				—				—				(21,182	)			(77,426	)
Investment properties			(13	)			—				—				—				—				2				(11	)
Software			(235	)			—				—				54				—				—				(181	)
Development expenditures			(1,492	)			—				—				644				—				(5,004	)			(5,852	)
Intangible assets under development			(11,029	)			—				—				—				—				4,314				(6,715	)
Other intangible assets			(79	)			—				—				2				—				—				(77	)
		W	(506,176	)			(21,436	)			4,967				17,825				1,274				(5,006	)			(508,552	)

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	)

94

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

28. Deferred Revenue

Deferred revenue related to the Group’s construction contracts for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	9,201,538				8,606,563
Increase during the period			540,429				1,199,783
Recognized as revenue during the period			(308,196	)			(604,808	)
Ending balance		W	9,433,771				9,201,538

29. Non-financial Liabilities

Non-financial liabilities as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advance received		W	3,984,221				343,027				3,825,240				192,863
Unearned revenue			31,266				6,376				30,988				6,589
Deferred revenue			604,970				8,828,801				590,928				8,610,610
Withholdings			340,581				10,879				160,977				10,901
Others			1,194,461				70,419				1,080,220				13,489
		W	6,155,499				9,259,502				5,688,353				8,834,452

95

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

30. Contributed Capital

(1) Details of shares issued as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won except share information

June 30, 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

Number of shares		June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Share premium			W    843,758				843,758

96

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Legal reserve (*)		W	1,604,910				1,604,910
Voluntary reserves			32,179,066				34,785,425
Retained earnings before appropriations			15,509,657				12,811,798
Retained earnings		W	49,293,633				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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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			26,361,617				28,967,976
Reserve for equalizing dividends			210,000				210,000
		W	32,179,066				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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 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			189,191				(2,345,517	)
Changes in equity method retained earnings			1,118				(6,789	)
Remeasurement of defined benefit liability, net of tax			(98,606	)			36,160
Transfer of gain (loss) on valuation of financial assets at fair value through other comprehensive income			—				(840	)
Transactions between consolidated entities			(203	)			—
Ending balance		W	49,293,633				49,202,133

(4) Dividends paid for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won

June 30, 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

—

—

97

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(5) Changes in retained earnings of investments in associates and joint ventures for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	(2,820	)			3,969
Changes			1,118				(6,789	)
Ending balance		W	(1,702	)			(2,820	)

(6) Changes in remeasurement components related to defined benefit liability for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Beginning balance		W	(117,779	)			(219,381	)
Changes			(137,015	)			76,395
Income tax effect			38,409				(40,235	)
Transfer to reserve for business expansion			11,402				65,442
Ending balance		W	(204,983	)			(117,779	)

32. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interest) as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won
Issuer		Hybrid bond		Issued date				Maturity				Yield (%)				June 30, 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.

98

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

33. Other Components of Equity

(1) Other components of equity as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Other capital surplus		W	1,224,915				1,226,364
Accumulated other comprehensive loss			(327,976	)			(280,730	)
Other equity			13,294,973				13,294,973
		W	14,191,912				14,240,607

(2) Changes in other capital surplus for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 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 subsidiaries and others			—				(544	)			(544	)			—				—				—
Others			—				(905	)			(905	)			—				(8,461	)			(8,461	)
Ending balance		W	387,524				837,391				1,224,915				387,524				838,840				1,226,364

99

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Financial asset at fair value through other comprehensive income  (loss) valuation reserve				Shares in other comprehensive income (loss) of investments in associates and  joint ventures				Reserve for overseas operations translation				Reserve for income (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			(40,262	)			—				—				—				(40,262	)
Shares in other comprehensive income (loss) of associates and joint ventures, net of tax			—				(41,743	)			—				—				(41,743	)
Foreign currency translation of foreign operations, net of tax			—				—				(4,067	)			—				(4,067	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				38,826				38,826
Ending balance		W	(132,861	)			101,153				(298,965	)			2,697				(327,976	)
In millions of won		December 31, 2019
		Financial asset at fair value through other comprehensive income  (loss) valuation reserve				Shares in other comprehensive income of investments in associates and  joint ventures				Reserve for overseas operations translation				Reserve for income (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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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

100

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

34. Sales

Details of sales for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020
		Domestic								Overseas								Total
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
[Type of goods and services]
Sales of goods		W	12,468,447				27,018,682				91,207				153,816				12,559,654				27,172,498
Electricity			12,295,584				26,599,967				—				—				12,295,584				26,599,967
Heat supply			31,807				136,675				—				—				31,807				136,675
Others			141,056				282,040				91,207				153,816				232,263				435,856
Sales related to rendering of services			44,571				96,804				48,792				116,784				93,363				213,588
Sales related to construction services			42,735				70,741				221,222				400,637				263,957				471,378
Revenue related to transfer of assets from customers			155,559				308,196				—				—				155,559				308,196
		W	12,711,312				27,494,423				361,221				671,237				13,072,533				28,165,660
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	12,468,447				27,018,682				91,207				153,816				12,559,654				27,172,498
Performance obligations satisfied over time			242,865				475,741				270,014				517,421				512,879				993,162
		W	12,711,312				27,494,423				361,221				671,237				13,072,533				28,165,660

In millions of won		June 30, 2019
		Domestic								Overseas								Total
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
[Type of goods and services]
Sales of goods		W	12,486,388				27,163,089				65,480				142,791				12,551,869				27,305,880
Electricity			12,384,623				26,822,148				—				—				12,384,623				26,822,148
Heat supply			22,376				154,974				—				—				22,376				154,974
Others			79,389				185,967				65,480				142,791				144,870				328,758
Sales related to rendering of services			38,656				90,414				46,882				90,003				85,538				180,417
Sales related to construction services			31,511				49,028				256,151				494,687				287,661				543,715
Revenue related to transfer of assets from customers			145,906				289,366				—				—				145,906				289,366
		W	12,702,461				27,591,897				368,513				727,481				13,070,974				28,319,378
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	12,486,388				27,163,089				65,480				142,791				12,551,869				27,305,880
Performance obligations satisfied over time			216,073				428,808				303,033				584,690				519,105				1,013,498
		W	12,702,461				27,591,897				368,513				727,481				13,070,974				28,319,378

101

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Salaries		W	318,683				514,778				194,997				391,652
Retirement benefit expense			26,396				45,541				19,598				36,801
Welfare and benefit expense			38,008				66,136				31,378				59,068
Insurance expense			3,743				6,323				3,604				6,623
Depreciation			53,796				106,921				56,988				116,043
Amortization of intangible assets			18,376				35,697				26,434				40,398
Bad debt expense (reversal)			489				18,966				10,772				15,724
Commission			91,316				199,732				161,884				341,851
Advertising expense			6,952				12,361				6,894				13,777
Training expense			1,065				2,048				1,728				3,281
Vehicle maintenance expense			2,074				4,171				1,591				4,457
Publishing expense			687				1,524				32				1,471
Business promotion expense			936				1,770				722				1,493
Rent expense			7,635				13,221				7,277				14,159
Telecommunication expense			2,243				4,438				2,092				4,357
Transportation expense			232				660				242				453
Taxes and dues			50,183				57,331				37,060				41,076
Expendable supplies expense			1,957				3,897				1,454				3,207
Water, light and heating expense			2,452				6,931				2,113				6,568
Repairs and maintenance expense			16,801				30,414				16,386				29,117
Ordinary development expense			34,174				76,143				37,553				78,583
Travel expense			2,529				5,987				4,037				8,546
Clothing expense			2,585				3,281				1,693				2,136
Survey and analysis expense			191				379				212				429
Membership fee			435				976				312				746
Others			29,624				59,734				30,222				61,635
		W	713,562				1,279,360				657,275				1,283,651

102

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

36. Other Non-operating Income and Expense

(1) Other non-operating income for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Reversal of other provisions		W	18,322				19,892				—				2,186
Reversal of other allowance for doubtful accounts			2,441				2,465				960				960
Gains on government grants			58				129				67				139
Gains on assets contributed			12,047				22,484				2,707				2,771
Gains on liabilities exempted			384				1,214				616				719
Compensation and reparations revenue			20,902				40,397				19,822				38,664
Revenue from research contracts			—				682				1,427				2,577
Rental income			49,586				96,453				47,069				94,051
Others			7,268				13,816				22,786				29,090
		W	111,008				197,532				95,454				171,157

(2) Other non-operating expense for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Compensation and reparations expenses		W	8,465				8,778				77				77
Accretion expenses of other provisions			58				114				5,225				383
Depreciation expenses on investment properties			364				735				4,047				4,291
Depreciation expenses on idle assets			1,638				3,276				1,636				3,272
Other bad debt expense			7,152				7,187				4,849				5,696
Donations			78,051				89,195				15,578				27,563
Others			4,321				7,376				4,383				9,856
		W	100,049				116,661				35,795				51,138

103

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Other gains
Gains on disposal of property, plant and equipment		W	—				56,163				20,353				29,187
Gains on disposal of intangible assets			1,556				1,556				—				97
Reversal of impairment losses on property, plant and equipment			6,737				6,737				—				—
Gains on foreign currency translation			4,853				16,872				13,907				10,955
Gains on foreign currency transactions			15,323				23,152				10,866				17,166
Gains on insurance proceeds			5,665				5,665				—				13
Others			112,712				173,955				43,890				110,235
Other losses
Losses on disposal of property, plant and equipment			(17,084	)			(19,253	)			(12,755	)			(26,747	)
Losses on impairment of property, plant and equipment			(9,162	)			(9,162	)			(27,406	)			(29,685	)
Losses on impairment of intangible assets			(3,505	)			(3,505	)			(61,696	)			(61,696	)
Losses on foreign currency translation			(3,080	)			(11,661	)			—				(51,468	)
Losses on foreign currency transactions			(9,526	)			(31,626	)			(19,055	)			(28,915	)
Others			(14,919	)			(57,385	)			(26,496	)			(37,818	)
		W	89,570				151,508				(58,392	)			(68,676	)

38. Finance Income

Finance income for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Interest income		W	64,069				130,576				63,275				124,579
Dividends income			4,044				4,085				2,427				3,740
Gains on disposal of financial assets			3,825				3,826				114				964
Gains on valuation of financial assets at fair value through profit or loss			3,875				10,100				3,830				8,391
Gains on valuation of derivatives			—				413,664				181,570				346,113
Gains on transaction of derivatives			67,369				107,266				30,425				65,569
Gains on foreign currency translation			264,319				116,799				57,044				86,337
Gains on foreign currency transactions			3,540				8,068				9,665				13,832
Other finance income			139				287				—				—
		W	411,180				794,671				348,350				649,525

104

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

39. Finance Expenses

Finance expenses for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Interest expense		W	504,490				1,020,873				513,152				1,016,529
Losses on sale of financial assets			318				365				203				261
Losses on valuation of financial assets at fair value through profit or loss			860				1,085				—				296
Losses on valuation of derivatives			106,766				43,436				25,964				34,930
Losses on transaction of derivatives			12,473				24,455				7,145				16,807
Losses on foreign currency translation			—				537,000				264,971				434,778
Losses on foreign currency transactions			58,681				62,548				4,224				8,748
Losses on repayment of financial liabilities			30				30				—				—
Others			842				1,430				933				2,619
		W	684,460				1,691,222				816,592				1,514,968

Capitalization rates for the six-month periods ended June 30, 2020 and 2019 are 2.41%~4.00% and 1.60%~3.85% 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 29.29%, and for the previous period, the Group did not calculate the average effective tax rate, because income tax benefit occurred for the period.

105

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

41. Assets Held-for-Sale

Assets held-for-sale as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Land		W	23,002				23,002
Buildings			—				193
Investment stocks (*1, 2)			289				4,921
		W	23,291				28,116

(*1) Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of June 30, 2020 after the distribution of residual assets, 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 June 30, 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 six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				6,884,401				6,884,401
Salaries			514,778				2,033,503				2,548,281
Retirement benefit expense			45,541				211,012				256,553
Welfare and benefit expense			66,136				235,490				301,626
Insurance expense			6,323				46,967				53,290
Depreciation			106,921				5,534,870				5,641,791
Amortization of intangible assets			35,697				41,913				77,610
Bad debt expense			18,966				—				18,966
Commission			199,732				155,890				355,622
Advertising expense			12,361				3,179				15,540
Training expense			2,048				4,306				6,354
Vehicle maintenance expense			4,171				3,512				7,683
Publishing expense			1,524				1,482				3,006
Business promotion expense			1,770				1,818				3,588
Rent expense			13,221				82,596				95,817
Telecommunication expense			4,438				5,087				9,525
Transportation expense			660				2,498				3,158
Taxes and dues			57,331				278,455				335,786
Expendable supplies expense			3,897				20,765				24,662
Water, light and heating expense			6,931				15,483				22,414
Repairs and maintenance expense			30,414				1,119,904				1,150,318
Ordinary development expense			76,143				223,228				299,371
Travel expense			5,987				31,709				37,696
Clothing expense			3,281				3,393				6,674
Survey and analysis expense			379				1,491				1,870
Membership fee			976				6,726				7,702
Power purchase			—				8,295,057				8,295,057
Others			59,734				821,201				880,935
		W	1,279,360				26,065,936				27,345,296

106

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the six-month periods ended June 30, 2020 and 2019 are as follows, continued:

In millions of won		June 30, 2019
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				8,304,989				8,304,989
Salaries			391,652				1,816,355				2,208,007
Retirement benefit expense			36,801				202,848				239,649
Welfare and benefit expense			59,068				208,297				267,365
Insurance expense			6,623				47,255				53,878
Depreciation			116,043				5,184,017				5,300,060
Amortization of intangible assets			40,398				41,997				82,395
Bad debt expense			15,724				—				15,724
Commission			341,851				174,776				516,627
Advertising expense			13,777				4,044				17,821
Training expense			3,281				6,003				9,284
Vehicle maintenance expense			4,457				3,606				8,063
Publishing expense			1,471				1,415				2,886
Business promotion expense			1,493				2,001				3,494
Rent expense			14,159				89,584				103,743
Telecommunication expense			4,357				4,170				8,527
Transportation expense			453				2,243				2,696
Taxes and dues			41,076				268,046				309,122
Expendable supplies expense			3,207				14,487				17,694
Water, light and heating expense			6,568				17,213				23,781
Repairs and maintenance expense			29,117				932,408				961,525
Ordinary development expense			78,583				232,505				311,088
Travel expense			8,546				33,900				42,446
Clothing expense			2,136				2,955				5,091
Survey and analysis expense			429				1,745				2,174
Membership fee			746				11,333				12,079
Power purchase			—				9,474,179				9,474,179
Others			61,635				881,895				943,530
		W	1,283,651				27,964,266				29,247,917

107

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three and six-month periods ended June 30, 2020 and 2019 are as follows:

In won

June 30, 2020

June 30, 2019

Type

Three- month period ended

Six- month period ended

Three- month period ended

Six- month period ended

Basic earnings (loss) per share

W

259

295

(697

)

(1,924

)

(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 and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won except number of shares		June 30, 2020								June 30, 2019
Type		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Net profit (loss) attributable to controlling interest		W	166,212				189,191				(447,546	)			(1,235,344	)
Profit (loss) used in the calculation of total basic earnings per share			166,212				189,191				(447,546	)			(1,235,344	)
Weighted average number of common shares			641,964,077				641,964,077				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 and six-month periods ended June 30, 2020 and 2019 are as follows:

In number of shares		June 30, 2020								June 30, 2019
Type		Three- Month period ended				Six- month period ended				Three- month period ended				Six- month period ended
The number of common shares issued at beginning of the year			641,964,077				641,964,077				641,964,077				641,964,077
Weighted average number of common shares			641,964,077				641,964,077				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 and six-month periods ended June 30, 2020 and 2019.

108

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Total borrowings and debt securities		W	70,709,103				67,876,541
Cash and cash equivalents			1,747,240				1,810,129
Net borrowings and debt securities			68,961,863				66,066,412
Total shareholder’s equity		W	68,960,031				68,889,649
Debt to equity ratio			100.00	%			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.

109

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020				December 31, 2019
Cash and cash equivalents		W	1,747,240				1,810,129
Financial assets at fair value through profit or loss			1,276,294				747,261
Derivative assets (trading)			421,279				165,204
Financial assets at amortized cost			14,673				13,609
Loans			772,777				738,707
Long-term/short-term financial instruments			2,469,988				1,960,227
Derivative assets (applying hedge accounting)			288,991				145,829
Trade and other receivables			8,964,070				9,703,749
Financial guarantee contracts (*)			3,194,466				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%p increase and decrease movements in the actuarial valuation assumptions as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won				June 30, 2020								December 31, 2019
Type		Accounts		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Future salary increases		Increase (decrease) in defined benefit obligation		W	491,880				(428,832	)			442,748				(386,147	)
Discount rate		Increase (decrease) in defined benefit obligation			(428,217	)			505,402				(402,099	)			475,765

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the six-month periods ended June 30, 2020 and 2019 are W10,461 million and W8,864 million, respectively.

110

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Provisions

Changes in provisions due to movements in underlying assumptions as of June 30, 2020 and December 31, 2019 are as follows:

Type		Accounts		June 30, 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%p increase and decrease movements in the underlying assumptions as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won				June 30, 2020								December 31, 2019
Type		Accounts		0.1%p Increase				0.1%p Decrease				0.1%p Increase				0.1%p Decrease
Discount rate		PCBs		W	(454	)			456				(527	)			530
		Nuclear plants			(312,226	)			321,666				(316,184	)			325,828
		Spent fuel			(51,534	)			53,545				(51,607	)			53,621
Inflation rate		PCBs			460				(459	)			534				(532	)
		Nuclear plants			350,258				(340,239	)			346,082				(336,182	)
		Spent fuel			54,319				(52,350	)			54,396				(52,424	)

111

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In thousands of foreign currencies		Assets								Liabilities
Type		June 30, 2020				December 31, 2019				June 30, 2020				December 31, 2019
AED			31,867				57,403				15,510				40,061
AUD			141				143				623,411				1,036,785
BDT			89,186				85,547				305				635
BWP			986				1,437				251				—
CAD			216				86				41				3,112
CHF			—				—				500,741				500,753
CNY			—				—				26,140				26,140
CZK			—				—				2,201				243
EUR			674				208				42,017				111,199
GBP			—				—				58				191
HKD			—				—				1,651,488				1,648,815
IDR			155,780				376,136				5,989				219,801
INR			1,228,275				1,244,170				388,316				210,232
JOD			2,035				1,516				8				147
JPY			242,897				109,970				1,016,386				314,402
KZT			319				319				319				—
MGA			6,009,106				3,858,201				111,842				133,403
MMK			73,195				29,651				25,208				—
PHP			271,982				175,210				135,817				130,073
PKR			416,130				354,361				7,099				4,366
SAR			2,252				2,653				1,011				480
SEK			—				—				449,104				449,072
USD			1,464,874				1,227,054				10,857,516				9,963,928
UYU			129,615				58,781				5,989				8,213
VND			512,551				418,998				—				1,375
ZAR			239				450				4				6

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
Type		10% Increase				10% Decrease				10% Increase				10% Decrease
Increase (decrease) of profit before income tax		W	(1,300,055	)			1,300,055				(1,197,530	)			1,197,530
Increase (decrease) of shareholder’s equity (*)			(1,300,055	)			1,300,055				(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 June 30, 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.

112

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 1p% 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won
Type		June 30, 2020				December 31, 2019
Short-term borrowings		W	98,796				—
Long-term borrowings			2,249,832				2,273,579
Debt securities			247,536				243,102
		W	2,596,164				2,516,681

A sensitivity analysis on the Group’s long-term borrowings and debt securities assuming a 1%p increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
Type		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Increase (decrease) of profit before income tax		W	(12,981	)			12,981				(25,167	)			25,167
Increase (decrease) of shareholder’s equity (*)			(12,981	)			12,981				(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 six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	266,000				(266,000	)			268,221				(268,221	)
Increase (decrease) of shareholder’s equity (*)			266,000				(266,000	)			268,221				(268,221	)

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

113

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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		June 30, 2020
Type		Less than 1 year				1 ~ 2 Years				2 ~ 5 Years				More than 5 years				Total
Borrowings and debt securities		W	9,100,225				10,793,573				26,072,711				32,433,684				78,400,193
Lease liabilities			688,213				611,088				1,735,205				2,635,507				5,670,013
Trade and other payables			5,062,153				371,999				863,234				1,412,769				7,710,155
Financial guarantee contracts (*)			1,010,681				35,221				21,791				2,126,772				3,194,465
		W	15,861,272				11,811,881				28,692,941				38,608,732				94,974,826

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 June 30, 2020 and December 31, 2019 are W77,469 million and W81,357 million, respectively.

114

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 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 June 30, 2020 and December 31, 2019 in detail are as follows:

In millions of won		June 30, 2020
Type		Less than 1 year				1 ~ 5 Years				More than 5 years				Others (*)				Total
Cash and cash equivalents		W	1,747,240				—				—				—				1,747,240
Financial assets at fair value through other comprehensive income			—				—				—				322,158				322,158
Financial assets at amortized cost			13,354				31				1,288				—				14,673
Loans			71,251				308,835				426,226				—				806,312
Long-term/short-term financial instruments			1,954,619				212,729				354				302,286				2,469,988
Financial assets at fair value through profit or loss			700,808				—				6,800				626,420				1,334,028
Trade and other receivables			6,934,968				912,938				1,000,931				121,282				8,970,119
		W	11,422,240				1,434,533				1,435,599				1,372,146				15,664,518

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.

115

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
Type		Less than 1 year				1 ~ 2 Years				2 ~ 5 Years				More than 5 years				Total
Net settlement
- Trading		W	—				—				—				—				—
Gross settlement
- Trading			(22,117	)			(10,456	)			(10,426	)			(16,505	)			(59,504	)
- Hedging			(57,536	)			(4,283	)			(8,683	)			(40,104	)			(110,606	)
		W	(79,653	)			(14,739	)			(19,109	)			(56,609	)			(170,110	)

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	)

116

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 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	322,158				322,158				379,170				379,170
Derivative assets (trading)			421,279				421,279				165,204				165,204
Derivative assets (applying hedge accounting)			288,991				288,991				145,829				145,829
Financial assets at fair value through profit or loss			1,334,028				1,334,028				747,261				747,261
		W	2,366,456				2,366,456				1,437,464				1,437,464
Assets carried at amortized cost
Financial assets at amortized cost		W	14,673				14,673				13,609				13,609
Loans and receivables			772,777				772,777				738,707				738,707
Trade and other receivables			8,964,070				8,964,070				9,703,749				9,703,749
Long-term financial instruments			515,369				515,369				608,256				608,256
Short-term financial instruments			1,954,619				1,954,619				1,351,971				1,351,971
Cash and cash equivalents			1,747,240				1,747,240				1,810,129				1,810,129
		W	13,968,748				13,968,748				14,226,421				14,226,421
Liabilities recognized at fair value
Derivative liabilities (trading)		W	58,898				58,898				53,147				53,147
Derivative liabilities (applying hedge accounting)			110,607				110,607				116,813				116,813
		W	169,505				169,505				169,960				169,960
Liabilities carried at amortized cost
Secured borrowings		W	66,965				66,965				227,135				227,135
Unsecured bond			65,761,494				69,850,086				63,171,664				66,917,421
Lease liabilities			5,046,472				5,046,472				5,070,133				5,070,133
Unsecured borrowings			4,880,644				4,893,884				4,104,523				4,113,955
Trade and other payables (*)			7,710,154				7,710,154				8,545,029				8,545,029
Bank overdraft			—				—				373,219				373,219
		W	83,465,729				87,567,561				81,491,703				85,246,892

(*) Excludes lease liabilities.

117

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

(ii) Interest rates used for determining fair value

The interest rates applied to discount estimated cash flows were determined by adding a credit spread to the government yield as of the end of the reporting period.

The discount rate used for calculating fair value as of June 30, 2020 and December 31, 2019 are as follows:

Type		June 30, 2020		December 31, 2019
Derivatives		(-)0.64% ~ 4.16%		0.01% ~ 4.16%
Borrowings and debt securities		0.06% ~ 4.75%		0.17% ~ 3.90%
Leases		0.70% ~ 16.74%		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 June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	141,822				—				180,336				322,158
Derivative assets			—				707,636				2,634				710,270
Financial assets at fair value through profit or loss			—				1,328,568				5,460				1,334,028
		W	141,822				2,036,204				188,430				2,366,456
Financial liabilities at fair value
Derivative liabilities		W	—				169,505				—				169,505

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

118

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month period ended June 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		June 30, 2020
		Beginning balance				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				359				—				391				(446	)			—				5,460
Financial assets at fair value through other comprehensive income Unlisted securities			177,968				2,900				—				(163	)			(1	)			(368	)			180,336

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

119

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	125,418
1 ~ 2 years			114,967
		W	240,385

(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 June 30, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	29,909
1 ~ 2 years			29,942
2 ~ 3 years			29,976
Over 3 years			591,617
		W	681,444

120

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties

(1)    Related parties of the Group as of June 30, 2020 are as follows:

Type		Related party
Parent		Republic of Korea government
Subsidiaries (123 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, TS Energy No. 25 Co., Ltd., KEPCO E&C Service Co., Ltd., KPS Partners Co., Ltd.
Associates (74 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., Bigeum Resident Photovoltaic Power Co., Ltd., Jeju SolarOne Co., Ltd., Energy Innovation Growth Fund 1
Joint ventures (71 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., Sam-Yang Photovoltaic Power Co., Ltd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, Pulau Indah Power Plant Sdn. Bhd.
Others (3 others)		Korea Development Bank, Ulleungdo Natural Energy Co., Ltd., Garolim Tidal Power Plant Co., Ltd.

121

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 six-month periods ended June 30, 2020 and 2019 are as follows:

<Sales and Others>

In millions of won				Sales and others
Company name		Transaction type		June 30, 2020				June 30, 2019
<Associates>
Korea Gas Corporation		Electricity sales		W	50,712				71,793
GS Donghae Power Co., Ltd.		Electricity sales			16,120				13,057
Dongducheon Dream Power Co., Ltd.		Electricity sales			4,262				3,045
S-Power Co., Ltd.		Service			3,305				3,388
Hyundai Green Power Co., Ltd.		Design service			11,632				11,436
Korea Electric Power Industrial Development Co., Ltd.		Service			6,474				5,867
Daeryun Power Co., Ltd.		Electricity sales			978				973
Shin Pyeongtaek Power Co., Ltd.		Electricity sales			12,174				10,178
Korea Power Exchange		Service			13,750				3,459
Cheongna Energy Co., Ltd.		Service			4,347				7,011
Gangwon Wind Power Co., Ltd.		Electricity sales			2,045				2,329
Noeul Green Energy Co., Ltd.		Electricity sales			15				15
Gosung Green Power Co., Ltd.		Electricity sales			10,313				4,306
Busan Green Energy Co., Ltd.		Electricity sales			9				9
Samcheok Eco Materials Co., Ltd.		Electricity sales			362				288
Others (Taebaek Wind Power Co., Ltd. and 20 others)		Electricity sales			26,798				15,029
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales			1,328				807
Daegu Green Power Co., Ltd.		Electricity sales			715				529
KAPES, Inc.		Commission			185				227
Rabigh Electricity Company		Service			576				12,219
Nawah Energy Company P.J.S.C.		Service			66,901				47,764
KEPCO SPC Power Corporation		Others			16,879				19,397
Seokmun Energy Co., Ltd.		Service			1,255				584
Amman Asia Electric Power Company		Others			8,606				8,712
Kelar S.A.		Service			1,919				2,007
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales			963				866
Yeonggwang Wind Power Co., Ltd.		Electricity sales			461				75
Others (Honam Wind Power Co., Ltd. and 24 others)		Electricity sales			392,026				23,046
<Others>
Korea Development Bank		Electricity sales			1,770				1,880
		Interest income			2,961				816

122

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the six-month periods ended June 30, 2020 and 2019 are as follows, continued:

<Purchase and Others>

In millions of won				Purchase and others
Company name		Transaction type		June 30, 2020				June 30, 2019
<Associates>
Korea Gas Corporation		Fuel purchase		W	1,806,750				2,173,304
GS Donghae Power Co., Ltd.		Electricity purchase			325,469				370,440
Dongducheon Dream Power Co., Ltd.		Electricity purchase			242,996				344,850
S-Power Co., Ltd.		Service			208,163				280,002
Hyundai Green Power Co., Ltd.		Design service			219,728				226,596
Korea Electric Power Industrial Development Co., Ltd.		Service			115,561				129,167
Daeryun Power Co., Ltd.		Electricity purchase			44,222				63,673
Shin Pyeongtaek Power Co., Ltd.		Electricity purchase			302,787				21
Korea Power Exchange		Service			44,372				68,748
Cheongna Energy Co., Ltd.		Service			67				58,747
Gangwon Wind Power Co., Ltd.		Electricity purchase			11,859				13,737
Noeul Green Energy Co., Ltd.		Electricity purchase			6,172				6,960
Busan Green Energy Co., Ltd.		Electricity purchase			10,918				9,566
Samcheok Eco Materials Co., Ltd.		Electricity purchase			4,793				3,889
Others (Taebaek Wind Power Co., Ltd. and 20 others)		Electricity purchase			32,058				23,473
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity purchase			126,069				172,257
Daegu Green Power Co., Ltd.		Electricity purchase			114,980				162,207
KAPES, Inc.		Commission			145,011				59,062
Seokmun Energy Co., Ltd.		Service			21,274				14,650
Amman Asia Electric Power Company		Others			102				—
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity purchase			2,931				5,039
Yeonggwang Wind Power Co., Ltd.		Electricity purchase			6,397				13,660
Others (Honam Wind Power Co., Ltd. and 24 others)		Electricity purchase			24,896				8,388
<Others>
Korea Development Bank		Interest expense			4,974				2,053
		Dividends paid			—				7

123

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won				Receivables								Payables
Company name		Type		June 30, 2020				December 31, 2019				June 30, 2020				December 31, 2019
<Associates>
Korea Gas Corporation		Trade receivables		W	6,921				9,267				—				—
		Non-trade receivables and others			163				38				—				—
		Trade payables			—				—				275,498				462,138
		Non-trade payables and others			—				—				378				560
Dongducheon Dream Power Co., Ltd.		Trade receivables			381				323				—				—
		Non-trade receivables and others			213				267				—				—
		Trade payables			—				—				39,826				85,920
		Non-trade payables and others			—				—				—				12
Goseong Green Power Co., Ltd.		Trade receivables			1,148				103				—				—
		Non-trade receivables and others			—				5,285				—				—
		Non-trade payables and others			—				—				65,823				65,626
GS Donghae Electric power Co., Ltd.		Trade receivables			461				175				—				—
		Non-trade receivables and others			257				367				—				—
		Trade payables			—				—				42,943				69,811
		Non-trade payables and others			—				—				24				16
Shin Pyeongtaek Power Co., Ltd.		Trade receivables			1,344				1,014				—				—
		Non-trade receivables and others			2,507				2,281				—				—
		Trade payables			—				—				37,160				64,696
		Non-trade payables and others			—				—				243				61
S-Power Co., Ltd.		Trade receivables			171				89				—				—
		Non-trade receivables and others			46				43				—				—
		Trade payables			—				—				27,063				53,705
Hyundai Green Power Co., Ltd.		Trade receivables			884				502				—				—
		Trade payables			—				—				47,670				41,587
Hyundai Energy Co., Ltd.		Trade receivables			109				128				—				—
		Non-trade receivables and others			10,400				12,532				—				—
		Trade payables			—				—				58				175
		Non-trade payables and others			—				—				9,519				9,178
Daeryun Power Co., Ltd.		Trade receivables			183				144				—				—
		Trade payables			—				—				4,831				19,843
Korea Electric Power Industrial Development Co., Ltd.		Trade receivables			731				243				—				—
		Non-trade receivables and others			17				43				—				—
		Trade payables			—				—				2,272				3,756
		Non-trade payables and others			—				—				10,633				3,827
Korea Power Exchange		Trade receivables			2,510				1,142				—				—
		Non-trade receivables and others			41				144				—				—
		Non-trade payables and others			—				—				3,558				4,160
Others (Gangwon Wind Power Co., Ltd. and 30 others)		Trade receivables			1,296				1,536				—				—
		Non-trade receivables and others			3,895				6,191				—				—
		Trade payables			—				—				3,157				4,568
		Non-trade payables and others			—				—				3,902				2,983

124

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows, continued:

In millions of won				Receivables								Payables
Company name		Type		June 30, 2020				December 31, 2019				June 30, 2020				December 31, 2019
<Joint ventures>
KAPES, Inc.		Trade receivables		W	1				1				—				—
		Non-trade receivables and others			86				—				—				—
		Non-trade payables and others			—				—				16,195				50,738
Nawah Energy Company P.J.S.C.		Trade receivables			71,443				43,312				—				—
		Non-trade receivables and others			587				47				—				—
Daegu Green Power Co., Ltd.		Trade receivables			156				113				—				—
		Non-trade receivables and others			16				1				—				—
		Trade payables			—				—				13,695				28,980
Chun-cheon Energy Co., Ltd.		Trade receivables			143				260				—				—
		Non-trade receivables and others			165				5,362				—				—
		Trade payables			—				—				17,080				23,438
Amman Asia Electric Power Company		Non-trade payables and others			—				—				19,355				19,096
Kelar S.A.		Trade receivables			—				1,902				—				—
		Non-trade receivables and others			9,880				7,632				—				—
Jamaica Public Service Company Limited		Trade receivables			1,914				6,476				—				—
		Non-trade payables and others			—				—				—				57
Others (Seokmun Energy Co., Ltd. and 18 others)		Trade receivables			5,771				258				—				—
		Non-trade receivables and others			74,180				8,606				—				—
		Trade payables			—				—				9,929				1,166
		Non-trade payables and others			—				—				9,782				79,369
<Others>
Korea Development Bank		Accrued interest income			284				1,630				—				—
		Non-trade receivables and others			404,974				146,416				—				—
		Non-trade payables and others			—				—				241				152
		Derivatives			70,469				41,368				1,189				6,531

(5) Loans and others arising from related party transactions as of June 30, 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				—				981				29,711
		(Allowance for doubtful accounts)			(7,325	)			—				—				(1,325	)			(8,650	)
Associates		PT. Cirebon Electric Power			578				—				(609	)			31				—
Associates		Xe-Pian Xe-Namnoy Power Co., Ltd.			20,955				—				—				776				21,731
Associates		PT. Wampu Electric Power			16,502				—				—				1,217				17,719
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				—				—
Associates		Bigeum Resident Photovoltaic Power Co., Ltd.			—				1,500				—				—				1,500
Associates		Daejung Offshore Wind Power Co., Ltd.			—				1,000				—				—				1,000
Joint ventures		PT. Tanjung Power Indonesia			—				464				—				(7	)			457
Joint ventures		RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			1,055				1,456				—				8				2,519
Joint ventures		HORUS SOLAR, S.A. DE C.V			3,323				10,579				—				(33	)			13,869
Joint ventures		SUNMEX RENOVABLES, S.A. DE C.V.			144				180				—				2				326
Joint ventures		Kelar S.A.			42,158				—				—				1,562				43,720
Joint ventures		Chun-cheon Energy Co., Ltd.			5,057				—				(5,057	)			—				—
Joint ventures		DE Energia SpA			6,632				—				—				246				6,878
Joint ventures		Daehan Wind Power PSC			—				11,852				—				—				11,852
				W	120,023				27,085				(5,666	)			3,458				144,900

125

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(6) Borrowings arising from related party transactions as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won
Related parties		Type		December 31, 2019				Borrowings				Repayment				Others				June 30, 2020
Korea Development		Facility		W	59,845				—				(4,174	)			—				55,671
Bank		Others			3,500				—				(277	)			—				3,223
		Operating funds			179,000				52,961				(178,306	)			(542	)			53,113
		Syndicated Loan			17,085				—				(1,073	)			845				16,857
		EBL			—				32,232				—				(714	)			31,518

(7) Guarantees provided to related parties as of June 30, 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	4,439,920
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		Performance guarantees		USD	16,800			Shinhan Bank
Korea Electric Power Corporation		Pulau Indah Power Plant Sdn. Bhd.		Performance guarantees		MYR	7,500			Maybank
Korea Western Power Co., Ltd.		Cheongna Energy Co., Ltd.		Collateralized money invested		KRW	4,623			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	70,254
				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	2,006			Korea Development Bank
Korea Western Power Co., Ltd.		Dongducheon Dream Power Co., Ltd.		Collateralized money invested (*7) Debt guarantees		KRW KRW	42,653 20,300			Kookmin Bank and others BNK Securities
Korea Western Power Co., Ltd.		PT. Mutiara Jawa		Collateralized money invested		KRW	1,589			Woori Bank
Korea Western Power Co., Ltd.		Haeng Bok Do Si Photovoltaic Power Co., Ltd.		Collateralized money invested		KRW	215			Nonghyup Bank
Korea Western Power Co., Ltd.		Shin Pyeongtaek Power Co., Ltd.		Collateralized money invested		KRW	71,109			Kookmin Bank
				Guarantees for supplemental funding (*1)			—			Kookmin Bank and others

126

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 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	5,130			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Seokmun Energy Co., Ltd.		Collateralized money invested		KRW	17,058			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Chun-cheon Energy Co., Ltd.		Collateralized money invested		KRW	29,865			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	4,182			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	250,249			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	3,285			Kookmin Bank and others
Korea East-West Power Co., Ltd.		Yeonggwang Wind Power Co., Ltd.		Collateralized money invested		KRW	17,797			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	20,836			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	8,095			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	32,233			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	33,949			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	9,743			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	2,306			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	26,469			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	23,083			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	4,961			Woori Bank and Shinhan Bank and others
				Performance guarantees			—

127

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 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	2,990			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	4,386
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	6,428			Kookmin Bank and others
Kospo Chile SpA		Kelar S.A.		Collateralized money invested		KRW	70,375			Export-Import Bank of Korea and others
		Chester Solar I SpA		Collateralized money invested		KRW	1,187			IBK
		Chester Solar IV SpA		Collateralized money invested		KRW	331
		Chester Solar V SpA		Collateralized money invested		KRW	77
		Diego de Almagro Solar Spa		Collateralized money invested		KRW	685
		Laurel SpA		Collateralized money invested		KRW	467
Korea Midland Power Co., Ltd.		YeongGwang Yaksu Wind Electric. Co., Ltd.		Collateralized money invested		KRW	408			IBK and others
Korea Midland Power Co., Ltd.		Hyundai Green Power Co., Ltd.		Collateralized money invested		KRW	120,360			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	5,271			SMBC
Korea Midland Power Co., Ltd.		Green Energy Electricity Generation Co., Ltd.		Collateralized money invested			—			IBK
				Guarantees for supplemental funding and others (*1)			—			IBK and others
Korea Midland Power Co., Ltd.		YaksuESS Co., Ltd.		Collateralized money invested		KRW	441			IBK
Korea Midland Power Co., Ltd.		Namjeongsusang Solar Power Operation Co., Ltd.		Collateralized money invested		KRW	523			IBK
Korea Midland Power Co., Ltd.		Gwangbaek Solar Power Investment Co., Ltd.		Collateralized money invested		KRW	4,652			Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.		Muan Sunshine Solar Power Plant Co., Ltd.		Collateralized money invested		KRW	1,253			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	115,060			Korea Development Bank and others
Korea South-East Power Co., Ltd.		RES Technology AD		Collateralized money invested		KRW	15,915			UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		ASM-BG Investicii AD		Collateralized money invested		KRW	17,480			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	2,265			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Gangneung Eco Power Co., Ltd.		Collateralized money invested		KRW	2,398			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		PND solar., Ltd.		Collateralized money invested		KRW	1,157			IBK
Korea South-East Power Co., Ltd.		Hyundai Eco Energy Co., Ltd.		Collateralized money invested		KRW	4,112			Samsung Life Insurance and others
Korea South-East Power Co., Ltd.		Jaeun Resident Wind Power Plant Co., Ltd.		Collateralized money invested		KRW	2,322			IBK
Korea South-East Power Co., Ltd.		Cheongsong Myeonbongsan Wind Power Plant Co., Ltd.		Collateralized money invested		KRW	4,259			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Youngam Solar Power Co., Ltd.		Collateralized money invested		KRW	6,100			Kookmin Bank and others
Korea South-East Power Co., Ltd.		Samsu Wind Power Co., Ltd.		Collateralized money invested		KRW	2,537			Shinhan Bank and others

128

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 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	6,709			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Hydro & Nuclear Power Co., Ltd.		Busan Green Energy Co., Ltd.		Collateralized money invested		KRW	9,495			Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Cheong-Song Noraesan Wind Power Co., Ltd.		Collateralized money invested		KRW	3,304			Woori Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Hydro & Nuclear Power Co., Ltd.		Jeju SolarOne Co., Ltd.		Collateralized money invested		KRW	143			IBK and others
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 thousand 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 June 30, 2020, the Group has recognized derivative liabilities of W6,205 million related to 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.

129

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

46. Related Parties, Continued

(8) As of June 30, 2020, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of June 30, 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
			2020~2025				241,320				USD 200,000				0.54	%			1.13	%			1,206.60
			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
			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
			2020~2025				122,780				USD 100,000				0.93	%			1.75	%			1,227.80

(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			2017.12.27				2021.07.12			W	104,849				USD 100,000			W	1,048.49
Bank			2020.06.29				2020.08.03				5,998				USD 5,000				1,199.55
			2020.06.19				2020.07.06				21,575				USD 17,800				1,212.10
			2020.06.23				2020.07.13				6,049				USD 5,000				1,209.85
			2020.06.26				2020.07.23				2,997				USD 2,500				1,198.65

(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 and six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 2020								June 30, 2019
Type		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Salaries		W	728				917				639				855
Employee benefits			18				32				2				4
		W	746				949				641				859

130

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

47. Statements of Cash Flows

(1) Significant non-cash transactions for the six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won
Transactions		June 30, 2020				June 30, 2019
Transfer from construction-in-progress to other assets		W	4,358,767				3,903,246
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			192,248				151,832
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			6,786,498				8,513,498
Transfer from inventory to stored nuclear fuel			230,102				737,363
Change in accounting policy and increase in right-of-use assets			137,393				4,633,091

(2) Changes in liabilities incurred from financing activities for the six-month periods ended June 30, 2020 and 2019 are as follows:

In millions of won		June 30, 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				2,439,902				—				392,660				70,709,103
Lease liabilities			5,070,133				(353,977	)			128,230				202,086				5,046,472
		W	72,946,674				2,085,925				128,230				594,746				75,755,575

In millions of won		June 30, 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				4,021,612				—				—				465,719				65,521,958
Lease liabilities			283,806				(264,809	)			150,579				4,626,657				155,064				4,951,297
		W	61,318,433				3,756,803				150,579				4,626,657				620,783				70,473,255

131

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
Contracts		Amounts				Balance				Amounts				Balance
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)		W	56,574				16,038				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				11,117				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) 1,400,000M			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			34,782				—				36,063				6,243
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M			33,019				33,019				—				—
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 4,464,000M			76,724				76,724				—				—
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M			37,538				37,538				—				—
Construction of Shin-Kori units (#5,6)			8,625,387				3,752,534				8,625,387				4,479,956
Construction of Shin-Hanul units (#1,2)			9,443,635				500,144				8,306,149				—
Other 29 contracts			449,581				126,023				352,710				122,890
Service of designing Seoul Combined units (#1,2)			31,515				1,153				30,778				2,119
Purchase of main machine for construction of Seoul Combined units (#1,2)			331,249				—				331,249				15,918
Construction of Seoul Combined units (#1,2)			394,655				24,999				387,722				31,150
Service of designing Shin-Boryeong units (#1,2)			121,163				521				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			243,324				28,148				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)			112,813				13,192				112,483				12,862
Purchase of furnace for construction of Taean units (#9,10)			556,206				20,415				556,206				17,579
Purchase of turbine generator for construction of Taean units (#9,10)			214,208				13,602				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				1,962				97,345				1,630
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			104,600				41,840				104,600				104,600
Purchase of coal handling machine for construction of Samcheok units (#1,2)			284,497				33,689				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			138,486				9,694				138,486				84,982

132

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

48. Commitments for Expenditure, Continued

(2) As of June 30, 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

133

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2020 and December 31, 2019 are as follows:

In millions of won		June 30, 2020								December 31, 2019
		Number of cases				Claim amount				Number of cases				Claim amount
As the defendant			636			W	685,058				586			W	697,835
As the plaintiff			181				315,224				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, and NSSC won the case during the six-month period ended June 30, 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 June 30, 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 the 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 June 30, 2020.

The Group is the defendant against a number of claims. The following is potentially significant ongoing claims pertaining to the Group:

① There is an ongoing claim against the Group from a group of plaintiffs (consisting of 3,910 individuals) regarding the contribution to plan assets and payment of retirement benefits. The Group recognized W11,730 million as litigation provisions in relation to the lawsuit as of June 30, 2020.

② There is an ongoing claim against the Group due to disagreements over contract details regarding the construction of the waste refinement power generation plant for Next Energy Co., Ltd., including commencement of commercial operation, however, the Group has not recognized any provision, as the outcome of the lawsuit and the related amount and timing of economic benefit outflow that the Group may be liable for cannot be reasonably estimated as of June 30, 2020.

③ 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 W17,639 million as litigation provisions in relation to the lawsuit as of June 30, 2020.

134

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2020 and December 31, 2019 are as follows, continued:

In addition to the abovementioned significant ongoing claims, there are 9 arbitration cases pertaining to the Group as of June 30, 2020 and the significant arbitration cases for the six-month period ended June 30, 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 Two companies including GE Energy Products France SNC 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 June 30, 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 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.

⑥ The Group has provided a guarantee to complete the construction of the waste refinement power generation plant of Next Energy Co., Ltd. (contract amount : W14.7 billion) to the financial institution agents, thus the Group is liable to compensate the financial institution agents for any damages incurred in the event of incompletion of the construction. Also, the power generation guarantee agreement was concluded in connection with the consignment service for management and operations (the repayment period of the principal of the loan) after the completion of the construction. If the amount of power generated falls short of the contracted power generation amount, the Company will be liable to pay compensation for the shortage. The Group expected outflow of resources to be highly probable due to the guarantee provided to complete the construction. Hence, the Group recognized W13,889 million as a provision (recognized as a variable consideration for the contract amount of the project).

135

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of June 30, 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			1,895,500
Commitments on Bank-daylight overdraft		Nonghyup Bank		KRW			280,000
Limit amount available for CP		Hana Bank		KRW			1,150,000
Limit amount available for card		Hana Bank and others		KRW			46,944
		Banco de Oro		PHP			5,000
Loan limit		Kookmin Bank and others		KRW			1,657,613
		DBS Bank and others		USD			2,262,700
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			926,934
Certification of Performance guarantee on contract		Seoul Guarantee Insurance and others		KRW			62,783
		First Abu Dhabi Bank and others		USD			729,175
		Korea Development Bank and others		JPY			637,495
		Hana Bank		EUR			2,059
		Hana Bank and others		INR			191,883
		Hana Bank		CAD			464
		Maybank		MYR			7,500
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			603,223
		Hana Bank		SAR			86,508
Others		Nonghyup Bank and others		KRW			548,008
		Export-Import Bank of Korea and others		USD			1,652,293
		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

136

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(4) As of June 30, 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 June 30, 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 June 30, 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 W72,468 million as of June 30, 2020 to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W15 million and depreciation on the idle assets of W3,276 million are recorded in other expenses for the six-month period ended June 30, 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 June 30, 2020.

137

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 June 30, 2020. The book value of facility is W16,057 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 June 30, 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 June 30, 2020.

(8) In connection with the consignment of management and operation project of the 54MW solar power plant in Hitachi Chuo, Japan, negotiations with the insurance company and other stakeholders are underway due to disagreements over the method of restoration and cost burden of the facilities damaged due to the typhoon. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of June 30, 2020.

(9) 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 June 30, 2020, and the resulting effects have not been reflected in the interim consolidated financial statements.

138

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

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

139

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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.

140

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2020

(Unaudited)

51. Subsequent Events

(1) Subsequent to June 30, 2020, Korea South-East Power Co., Ltd., Korea Midland 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 South-East Power Co., Ltd.		Foreign corporate bond			2020.08.03				2026.08.03				1.00				USD 300,000
Korea Midland Power Co., Ltd.		#57-1 non-guaranteed corporate bond			2020.07.21				2030.07.21				1.51				KRW 90,000
		#57-2 non-guaranteed corporate bond			2020.07.21				2040.07.21				1.64				KRW 100,000
Korea East-West Power Co., Ltd.		#20-1 corporate bond			2020.07.16				2025.07.16				1.35				KRW 40,000
		#20-2 corporate bond			2020.07.16				2040.07.16				1.70				KRW 90,000
		#20-3 corporate bond			2020.07.16				2050.07.16				1.70				KRW 80,000

(2) Korea Hydro & Nuclear Power Co., Ltd., KEPCO KPS Co., Ltd., and others, which are subsidiaries of the Group, decided to participate in the foundation, the Nuclear Power Plant Decommissioning Research Institute, to demonstrate and promote the advancement of nuclear power plant decommissioning technology, and to foster the related industry. The contribution made amounted to W193,370 million.

141

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 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 and six-month periods ended June 30, 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		June 30, 2020								June 30, 2019
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Operating profit (loss) on the consolidated interim statements of comprehensive income (loss)		W	389,810				820,364				(298,659	)			(928,539	)
Add
Other income
Reversal of other provisions			18,322				19,892				—				2,186
Reversal of other allowance for bad debt			2,441				2,465				960				960
Gains on government grants			58				129				67				139
Gains on assets contributed			12,047				22,484				2,707				2,771
Gains on liabilities exempted			384				1,214				616				719
Compensation and reparations revenue			20,902				40,397				19,822				38,664
Revenue from research contracts			—				682				1,427				2,577
Rental income			49,586				96,453				47,069				94,051
Others			7,268				13,816				22,786				29,090
Other gains
Gains on disposal of property, plant and equipment			—				56,163				20,353				29,187
Gains on disposal of intangible assets			1,556				1,556				—				97
Reversal of impairment losses on property, plant and equipment			6,737				6,737				—				—
Gains on foreign currency translation			4,853				16,872				13,907				10,955
Gains on foreign currency transactions			15,323				23,152				10,866				17,166
Gains on insurance proceeds			5,665				5,665				—				13
Others			112,712				173,955				43,890				110,235
Deduct
Other expenses
Compensation and reparations expense			(8,465	)			(8,778	)			(77	)			(77	)
Accretion expenses of other provisions			(58	)			(114	)			(5,225	)			(383	)
Depreciation expenses on investment properties			(364	)			(735	)			(4,047	)			(4,291	)
Depreciation expenses on idle assets			(1,638	)			(3,276	)			(1,636	)			(3,272	)
Other bad debt expense			(7,152	)			(7,187	)			(4,849	)			(5,696	)
Donations			(78,051	)			(89,195	)			(15,578	)			(27,563	)
Others			(4,321	)			(7,376	)			(4,383	)			(9,856	)
Other losses
Losses on disposal of property, plant and equipment			(17,084	)			(19,253	)			(12,755	)			(26,747	)
Losses on impairment of property, plant and equipment			(9,162	)			(9,162	)			(27,406	)			(29,685	)
Losses on impairment of intangible assets			(3,505	)			(3,505	)			(61,696	)			(61,696	)
Losses on foreign currency translation			(3,080	)			(11,661	)			—				(51,468	)
Losses on foreign currency transactions			(9,526	)			(31,626	)			(19,055	)			(28,915	)
Others			(14,919	)			(57,385	)			(26,496	)			(37,818	)
Adjusted operating profit (loss)		W	490,339				1,052,743				(297,392	)			(877,196	)

142