6-K 1 d180953d6k.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 December 2020

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):              

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-              

This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

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QUARTERLY BUSINESS REPORT

(For the period from January 1, 2020 to September 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.

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I. Company Overview

1. Name of the company: Korea Electric Power Corporation (KEPCO)

2. Information of the company

(Address) 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

(Phone number) 82-61-345-4213

(Website) http://www.kepco.co.kr

3. Major businesses

KEPCO, as the parent company, is engaged in the following activities:

• development of electric power resources;

• generation, transmission, transformation and distribution of electricity and other related activities;

• research and development of technology related to the businesses mentioned above;

• overseas business related to the businesses mentioned above;

• investment or contributions related to the businesses mentioned above;

• development and operation of certain real estate holdings; and

• other businesses entrusted by the government.

Businesses operated by KEPCO’s major subsidiaries are as follows: nuclear power generation by Korea Hydro & Nuclear Power (KHNP), thermal power generation by Korea South-East Power (KOSEP), Korea Midland Power (KOMIPO), Korea Western Power (KOWEPO), Korea Southern Power (KOSPO) and Korea East-West Power (EWP), other businesses including engineering service by KEPCO Engineering & Construction (KEPCO E&C), maintenance and repair of power plants by KEPCO Plant Service & Engineering (KEPCO KPS), ICT service by KEPCO KDN, nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF) and other overseas businesses and related investments.

4. Consolidated subsidiaries

		(As of September 30, 2020)
Domestic		Overseas		Total
45		79		124

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5. Major changes in management

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

B. On March 17, 2020, Mr. 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.

E. On August 30, 2020, Mr. Kim, Dong-Sub retired from his position.

F. On September 1, 2020, Ms. Bang, Su-Ran was appointed as a non-standing director in replacement of Mr. Park, Cheol-Su, whose term of office expired.

G. On September 14, Mr. Park, Hyung-Duck and Mr. Lim, Hyun-Seung, whose term of office expired, were reappointed as standing directors for a term of a year beginning on September 14, 2020.

H. On September 14, 2020, Mr. Lee, Heyn-Bin was appointed as a standing director in replacement of Mr. Kim, Hoe-Chun, whose term of office expired.

6. Changes in major shareholders

On December 31, 2014, Korea Development Bank merged with Korea Finance Corporation, andbecame 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.

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II. Business Overview

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

		(In billions of Won)
Business sector		January to September 2019								January to September 2020
		Sales				Operating profit				Sales				Operating profit
Electricity sales			44,172				-1,479				43,490				1,569
Nuclear generation			6,629				779				7,363				1,203
Thermal generation			18,390				826				15,838				240
Others(*)			2,501				248				2,958				256
Subtotal			71,692				374				69,649				3,268
Adjustment for related-party transactions			-27,460				-63				-25,772				-115
Total			44,232				311				43,877				3,153

• 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 September 2019		January to September 2020
Electricity sold		Residential		KEPCO		105.44		108.36
		Commercial				130.81		132.05
		Educational				104.93		105.12
		Industrial				106.29		107.33
		Agricultural				47.90		48.59
		Street lighting				115.98		116.41
		Overnight usage				66.83		66.52
Electricity from nuclear generation		Nuclear Generation		KHNP		58.02		61.53
Electricity from thermal generation		Thermal generation		KOSEP		93.42		86.63
				KOMIPO		103.20		83.77
				KOWEPO		99.62		93.89
				KOSPO		103.65		97.39
				EWP		98.46		93.98

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

Company		Volume (GWh)				Expense (In billions of Won)
KHNP			115,298				7,104
KOSEP			37,116				3,111
KOMIPO			35,993				3,366
KOWEPO			28,893				2,715
KOSPO			32,605				3,176
EWP			31,803				2,992
Others			113,903				10,799
Total			395,611				33,263

4. Intellectual property as of September 30, 2020

		Patents								Utility models				Designs				Trademarks								Total
		Domestic				Overseas												Domestic				Overseas
KEPCO			3,005				290				72				86				110				47				3,610
Generation subsidiaries			2,710				383				106				56				164				23				3,442
Total			5,715				673				178				142				274				70				7,052

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III. Financial Information

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

(In billions of Won)

Consolidated statements of comprehensive income														Consolidated statements of financial position
		January to September 2019				January to September 2020				Change (%)						December 31, 2019				September 30, 2020				Change (%)
Sales			44,232				43,877				-0.8			Total assets			197,598				201,777				2.1
Operating profit			311				3,153				914.6			Total liabilities			128,708				131,642				2.3
Net income			-932				1,508				n/m			Total equity			68,890				70,135				1.8

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

(In billions of Won)

Separate statements of comprehensive income														Separate statements of financial position
		January to September 2019				January to September 2020				Change (%)						December 31, 2019				September 30, 2020				Change (%)
Sales			44,172				43,490				-1.5			Total assets			109,809				111,679				1.7
Operating profit			-1,479				1,569				n/m			Total liabilities			58,351				59,211				1.5
Net income			-1,527				1,145				n/m			Total equity			51,458				52,468				2.0

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IV. Board of Directors (KEPCO Only)

1. The board of directors is required to consist of not more than 15 directors including the president. Under our Articles of Incorporation, there may not be more than seven standing directors including the president, and more than eight non-standing directors. The number of non-standing directors must exceed the number of standing directors, including our president.

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

2. Board meetings and agendas for a nine-month period ended September 30, 2020

Number of meetings		Number of agendas		Classification
				Resolutions		Reports
9		33		23		10

* The audit committee held 9 meetings with 30 agendas (of which, 16 were approved as proposed and 14 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

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		Report on the annual management of commercial papers in 2019		Accepted as reported		Report
		Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)		Accepted as reported		Report
		Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2020-2021)		Accepted as reported		Report
March 20, 2020		Approval of utilization project of Gwanak-Dongjak regional office site		Approved as proposed		Resolution
		Approval of contribution to a gas-fired power project 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
July 24, 2020		Approval of closing the shareholders’ registry for the extraordinary general meeting of shareholders		Approved as proposed		Resolution

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		Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020		Approved as proposed		Resolution
		Approval of termination of the power purchase agreement of solar power project in Colorado, the United States		Approved as proposed		Resolution
August 28, 2020		Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2020		Approved as proposed		Resolution
		Report on audit results for the second quarter of 2020		Accepted as reported		Report
		Report on financial statements for the first half of 2020		Accepted as reported		Report

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

Before Appointment

February 28, 2020

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

For

For

For

For

For

For

For

For

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

For

For

For

For

For

For

For

For

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

For

For

For

For

For

For

For

For

Before Appointment

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

Table of Contents

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

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

Before Appointment

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

Before Appointment

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

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

For

For

For

For

For

For

For

For

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

For

Retired

For

For

For

For

For

For

For

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

—

—

—

—

—

—

—

—

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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

—

Retired

—

—

—

—

—

—

—

July 24, 2020

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

For

For

For

For

For

For

For

For

Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020

For

Retired

For

For

For

For

For

For

For

Approval of termination of the power purchase agreement of solar power project in Colorado, the United States

For

For

For

For

For

For

For

For

August 28, 2020

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2020

For

Retired

For

For

For

For

For

For

For

Report on audit results for the second quarter of 2020

Agenda for Report

Report on financial statements for the first half of 2020

Agenda for Report

Attendance Rate

88.9%

100%

100%

100%

100%

100%

100%

87.5%

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.

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5. Attendance Status of Standing directors

Date

Agenda

JongKap KIM

Kim, Hoe- Chun

Kim, Dong- Sub

Park, Hyung- Duck

Kim, Sung- Arm

Lim, Hyun- Seung

January 22, 2020

Approval of the safety management plan of 2020

For

For

For

For

For

For

February 28, 2020

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

For

For

For

For

For

For

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

For

For

For

For

For

For

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

For

For

For

For

For

For

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

For

For

For

For

For

For

Approval of amendments to the Articles of Incorporation

For

For

For

For

For

For

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

For

For

For

For

For

For

Report on audit results for 2019

Agenda for Report

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

Agenda for Report

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

Agenda for Report

Report on the annual management of commercial papers in 2019

Agenda for Report

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

Agenda for Report

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2020-2021)

Agenda for Report

March 20, 2020

Approval of utilization project of Gwanak-Dongjak regional office site

For

For

For

For

For

For

Table of Contents

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

—

—

—

—

—

—

July 24, 2020

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

For

For

For

For

For

For

Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020

For

For

For

For

For

For

Table of Contents

Approval of termination of the power purchase agreement of solar power project in Colorado, the United States

For

For

For

For

For

For

August 28, 2020

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2020

For

For

For

For

For

For

Report on audit results for the second quarter of 2020

Agenda for Report

Report on financial statements for the first half of 2020

Agenda for Report

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.

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

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		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
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
July 24, 2020		Amendments to internal audit regulations		Approved as proposed		Resolution
		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
August 28, 2020		Approval of investigation result on the agendas for the extraordinary general meeting of shareholders		Approved as proposed		Resolution

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		Report on audit results for the second quarter of 2020		Accepted as reported		Report
		Independent Auditor’s review report for the first half of 2020		Accepted as reported		Report
September 28, 2020		Approval of amendment to the guidelines for disciplinary actions		Approved as proposed		Resolution

* 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
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

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		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
July 24, 2020		Amendments to internal audit regulations		For		For		Absent
		Approval of appointment of independent auditors of subsidiaries		For		For		Absent
August 28, 2020		Approval of investigation result on the agendas for the extraordinary general meeting of shareholders		For		For		Absent
		Report on audit results for the second quarter of 2020		For		For		Absent
		Independent Auditor’s review report for the first half of 2020		For		For		Absent
September 28, 2020		Approval of amendment to the guidelines for disciplinary actions		For		For		Absent
		Attendance Rate		100%		100%		—

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

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V. Shareholders

1. List of shareholders as of September 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				51,098,474				7.96
Public (Non-Koreans)		Common Shares			1,072				85,345,631				13.30
		American depositary shares (ADS)			1				26,389,914				4.11
Public (Koreans)					560,524				151,053,000				23.53
Total					561,600				641,964,077				100.00

• Percentages are based on issued shares of common stock.

• All of our shareholder have equal voting rights.

• Citibank, N.A. is our depositary bank and each ADS represents one-half of one share of our common stock.

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

1. Directors

																(In thousands of Won)
Type				Number of directors				Total remuneration				Average remuneration per person				Remarks
Standing director					5				922,707				159,087			Excluding the members of Audit Committee
Non-standing director					6				135,000				22,500
Member of Audit Committee		Standing director			0				—				—			Vacant after December 13, 2019
		Non-standing director			2				45,000				22,500			—
Total					13				1,102,707				79,906			—

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			17,873				88				17,961				15.3				1,191,126,191				66,317
Female			4,935				65				5,000				12.7				254,562,052				50,912
Total			22,808				153				22,961				14.7				1,445,688,243				62,963

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VII. Other Information Necessary for the Protection of Investors

1. Summary of shareholder’s meetings for a nine-month period ended September 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
Extraordinary General Meeting held on September 14, 2020		Election of three Standing Directors		Approved as proposed
		Election of two Non-Standing Directors as Members of the Audit Committee		Approved as proposed

2. Pending legal proceedings as of September 30, 2020

						(In billions of Won)
Type		Number of lawsuits				Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants			654				726
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs			196				275

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

By: /s/ Kim, Byung-in

Name: Kim, Byung-in

Title: Vice President

Date: December 9, 2020

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

For the nine-month periods ended September 30, 2020 and 2019

(With Independent Auditor’s Review Report)

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INDEX TO FINANCIAL STATEMENTS

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

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Independent Auditor’s Review Report

Based on a report originally issued in Korean

The Shareholders and Board of Directors

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 to as the “Group”), which comprise the consolidated interim statement of financial position as of September 30, 2020, the consolidated interim statements of comprehensive income (loss) for the three and nine-month periods ended September 30, 2020 and 2019, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the nine-month periods then ended, and 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 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 Matter

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.

November 16, 2020

This review report is effective as of November 16, 2020, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying consolidated interim financial statements and may result in modifications to this review report.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of September 30, 2020 (Unaudited) and December 31, 2019

In millions of won		Note				September 30, 2020				December 31, 2019
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	1,576,098				1,810,129
Current financial assets, net			5,6,9,11,12,13,44,46				4,355,654				1,586,509
Trade and other receivables, net			5,8,20,24,44,45,46				7,288,588				7,701,452
Inventories, net			14				6,919,912				7,050,700
Income tax receivables							50,431				99,718
Current non-financial assets			15				813,055				1,206,377
Assets held-for-sale			16,41				—				28,116
Total current assets							21,003,738				19,483,001
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44,46				2,774,396				2,563,498
Non-current trade and other receivables, net			5,8,20,44,45,46				1,920,428				2,002,297
Property, plant and equipment, net			18,24,27,48				166,629,555				164,701,827
Investment properties, net			19,27				226,860				158,580
Goodwill			16				97,977				97,977
Intangible assets other than goodwill, net			21,27,45				1,098,679				1,069,976
Investments in associates			4,17				4,246,154				4,251,802
Investments in joint ventures			4,17				1,893,063				1,663,029
Defined benefit assets, net			25				230				1,047
Deferred tax assets							1,646,596				1,437,829
Non-current non-financial assets			15				239,730				166,929
Total non-current assets							180,773,668				178,114,791
Total Assets			4			W	201,777,406				197,597,792

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of September 30, 2020 (Unaudited) and December 31, 2019

In millions of won		Note				September 30, 2020				December 31, 2019
Liabilities
Current liabilities
Trade and other payables, net			5,22,24,44,46			W	5,004,275				6,649,402
Current financial liabilities, net			5,12,23,44,46				9,381,195				8,930,903
Income tax payables							410,000				358,277
Current non-financial liabilities			20,28,29				6,483,513				5,688,353
Current provisions			26,44				2,045,564				2,604,721
Total current liabilities							23,324,547				24,231,656
Non-current liabilities
Non-current trade and other payables, net			5,22,24,44,46				7,012,377				6,965,760
Non-current financial liabilities, net			5,12,23,44,46				61,035,050				59,115,598
Non-current non-financial liabilities			28,29				9,413,409				8,834,452
Employee benefits liabilities, net			25,44				2,475,969				1,929,854
Deferred tax liabilities							8,994,427				8,564,775
Non-current provisions			26,44				19,386,017				19,066,048
Total non-current liabilities							108,317,249				104,476,487
Total Liabilities			4			W	131,641,796				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							32,179,065				34,785,425
Unappropriated retained earnings							16,679,682				12,811,798
							50,463,657				49,202,133
Other components of equity			33
Other capital surplus							1,227,328				1,226,364
Accumulated other comprehensive loss							(303,764	)			(280,730	)
Other equity							13,294,973				13,294,973
							14,218,537				14,240,607
Equity attributable to owners of the controlling company							68,735,772				67,496,318
Non-controlling interests			16,32				1,399,838				1,393,331
Total Equity						W	70,135,610				68,889,649
Total Liabilities and Equity						W	201,777,406				197,597,792

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three and nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won, except per share information						September 30, 2020								September 30, 2019
		Note				Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Sales			4,34,44,46
Sales of goods						W	15,196,434				42,368,932				15,403,628				42,709,508
Sales of services							99,310				312,898				91,174				271,591
Sales of construction services			20				257,484				728,862				268,409				812,124
Revenue related to transfer of assets from customers			28				158,149				466,345				149,074				438,440
							15,711,377				43,877,037				15,912,285				44,231,663
Cost of sales			14,25,42,46
Cost of sales of goods							(12,442,834	)			(37,783,291	)			(13,592,540	)			(40,777,212	)
Cost of sales of services							(48,991	)			(357,706	)			(233,813	)			(519,036	)
Cost of sales of construction services							(239,800	)			(656,564	)			(242,919	)			(737,290	)
							(12,731,625	)			(38,797,561	)			(14,069,272	)			(42,033,538	)
Gross profit							2,979,752				5,079,476				1,843,013				2,198,125
Selling and administrative expenses			25,35,42,46				(647,547	)			(1,926,907	)			(603,747	)			(1,887,399	)
Operating profit			4				2,332,205				3,152,569				1,239,266				310,726
Other income			36				117,429				308,276				146,520				317,677
Other expenses			36				(221,892	)			(331,867	)			(27,566	)			(78,704	)
Other gains (losses), net			37				4,334				155,842				(414,139	)			(482,815	)
Finance income			5,12,38				384,946				751,680				501,302				1,150,828
Finance expenses			5,12,39				(702,142	)			(1,965,427	)			(1,122,317	)			(2,637,285	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,17
Share in profit of associates and joint ventures							47,364				316,845				4,687				271,571
Gain on disposal of investments in associates and joint ventures							13,299				13,299				—				7,131
Share in loss of associates and joint ventures							(30,360	)			(93,312	)			(19,082	)			(98,141	)
Loss on disposal of investments in associates and joint ventures							—				(16	)			(2,086	)			(156	)
Impairment loss on investments in associates and joint ventures							(7,026	)			(7,026	)			—				—
							23,277				229,790				(16,481	)			180,405
Profit (loss) before income tax							1,938,157				2,300,863				306,585				(1,239,168	)
Income tax benefit (expense)			40				(686,833	)			(793,079	)			(65,504	)			306,915
Profit (loss) for the period						W	1,251,324				1,507,784				241,081				(932,253	)

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three and nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won, except per share information						September 30, 2020								September 30, 2019
		Note				Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Other comprehensive income (loss), net of tax			5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability			25,31			W	(72,246	)			(167,804	)			(52,860	)			(238,882	)
Share in other comprehensive loss of associates and joint ventures			31				(5,075	)			(3,957	)			(39	)			(487	)
Net change in fair value of equity investments at fair value through other comprehensive income			33				10,153				(30,110	)			(8,434	)			(8,897	)
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			5,12,33				9,812				58,693				(5,494	)			9,062
Foreign currency translation of foreign operations			33				(15,487	)			(20,214	)			62,216				122,494
Share in other comprehensive income (loss) of associates and joint ventures			33				11,812				(29,925	)			5,548				41,252
Other comprehensive income (loss) for the period							(61,031	)			(193,317	)			937				(75,458	)
Total comprehensive income (loss) for the period						W	1,190,293				1,314,467				242,018				(1,007,711	)
Profit (loss) attributable to:
Owners of the controlling company			43			W	1,236,341				1,425,532				222,789				(1,012,555	)
Non-controlling interests							14,983				82,252				18,292				80,302
						W	1,251,324				1,507,784				241,081				(932,253	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company						W	1,194,236				1,238,693				211,643				(1,105,189	)
Non-controlling interests							(3,943	)			75,774				30,375				97,478
						W	1,190,293				1,314,467				242,018				(1,007,711	)
Earnings (loss) per share (in won)			43
Basic and diluted earnings (loss) per share						W	1,926				2,221				347				(1,577	)

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won		Equity attributable to owners of the controlling company																Non- controlling interests				Total equity
		Contributed capital				Retained earnings				Other components of equity				Subtotal
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
Profit (loss) for the period			—				(1,012,555	)			—				(1,012,555	)			80,302				(932,253	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—				(225,516	)			—				(225,516	)			(13,366	)			(238,882	)
Share in other comprehensive loss of associates and joint ventures, net of tax			—				(487	)			—				(487	)			—				(487	)
Net change in fair value of equity investments at fair value through other comprehensive income, net of tax			—				—				(8,897	)			(8,897	)			—				(8,897	)
Others			—				(840	)			840				—				—				—
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			—				—				8,775				8,775				287				9,062
Foreign currency translation of foreign operations, net of tax			—				—				92,244				92,244				30,250				122,494
Share in other comprehensive income of associates and joint ventures, net of tax			—				—				41,247				41,247				5				41,252
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(82,552	)			(82,552	)
Issuance of shares of capital by subsidiaries and others			—				—				—				—				18,186				18,186
Transactions between consolidated entities			—				—				(8,246	)			(8,246	)			2,806				(5,440	)
Changes in consolidation scope			—				—				—				—				18,968				18,968
Dividends paid (hybrid bond)			—				—				—				—				(10,039	)			(10,039	)
Others			—				—				—				—				371				371
Balance at September 30, 2019		W	4,053,578				50,279,721				14,297,191				68,630,490				1,394,055				70,024,545

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won		Equity attributable to owners of the controlling company																Non- controlling interests				Total equity
		Contributed capital				Retained earnings				Other components of equity				Subtotal
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 for the period
Profit for the period			—				1,425,532				—				1,425,532				82,252				1,507,784
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				(159,847	)			—				(159,847	)			(7,957	)			(167,804	)
Share in other comprehensive loss of associates and joint ventures, net of tax			—				(3,957	)			—				(3,957	)			—				(3,957	)
Net change in fair value of equity investments at fair value through other comprehensive income, net of tax			—				—				(30,110	)			(30,110	)			—				(30,110	)
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			—				—				48,638				48,638				10,055				58,693
Foreign currency translation of foreign operations, net of tax			—				—				(11,638	)			(11,638	)			(8,576	)			(20,214	)
Share in other comprehensive loss of associates and joint ventures, net of tax			—				—				(29,925	)			(29,925	)			—				(29,925	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(80,790	)			(80,790	)
Issuance of shares of capital by subsidiaries and others			—				—				1,869				1,869				17,576				19,445
Transactions between consolidated entities			—				(204	)			(904	)			(1,108	)			1,040				(68	)
Changes in consolidation scope			—				—				—				—				2,946				2,946
Dividends paid (hybrid bond)			—				—				—				—				(10,039	)			(10,039	)
Balance at September 30, 2020		W	4,053,578				50,463,657				14,218,537				68,735,772				1,399,838				70,135,610

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won		September 30, 2020				September 30, 2019
Cash flows from operating activities
Profit (loss) for the period		W	1,507,784				(932,253	)
Adjustments to reconcile profit (loss) for the period to net cash provided by operating activities:
Income tax expense (benefit)			793,079				(306,915	)
Depreciation			8,434,997				7,988,982
Amortization			116,674				115,614
Employee benefits expense			344,075				294,755
Bad debt expense (reversal)			13,111				(8,136	)
Interest expense			1,504,125				1,537,845
Loss on disposal of financial assets			408				490
Loss on disposal of property, plant and equipment			19,253				43,287
Loss on abandonment of property, plant and equipment			184,800				257,569
Impairment loss on property, plant and equipment			1,357				37,152
Impairment loss on intangible assets			3,505				513,519
Loss on disposal of intangible assets			—				28
Increase to provisions			1,426,303				365,800
Loss on foreign currency translation, net			132,151				838,889
Gain on valuation of financial assets at fair value through profit or loss			(10,872	)			(9,161	)
Loss on valuation of financial assets at fair value through profit or loss			975				1,442
Valuation and transaction gain on derivative instruments, net			(273,712	)			(704,830	)
Share in profit of associates and joint ventures, net			(223,533	)			(173,429	)
Gain on disposal of financial assets			(4,065	)			(2,584	)
Gain on disposal of property, plant and equipment			(56,163	)			(35,765	)
Gain on disposal of intangible assets			(1,556	)			(206	)
Gain on disposal of associates and joint ventures			(13,299	)			(7,131	)
Loss on disposal of associates and joint ventures			16				156
Impairment loss on associates and joint ventures			7,026				—
Interest income			(189,196	)			(195,998	)
Dividends income			(4,649	)			(6,002	)
Others, net			(14,736	)			302,596
			12,190,074				10,847,967
Changes in working capital:
Trade receivables			415,861				1,119,726
Non-trade receivables			203,577				197,790
Accrued income			(40,754	)			898,666
Other receivables			6,784				66,706
Other current assets			66,470				(173,524	)
Inventories			(211,523	)			(349,263	)
Other non-current assets			(91,990	)			(535,919	)
Trade payables			(1,254,499	)			(1,409,167	)
Non-trade payables			(310,530	)			(123,249	)
Accrued expenses			(194,777	)			(885,076	)
Other payables			—				(1,274	)
Other current liabilities			846,901				1,050,488
Other non-current liabilities			481,209				427,797
Investments in associates and joint ventures (dividends received)			137,412				167,018
Provisions			(1,529,417	)			(1,329,940	)
Payments of employee benefit obligations			(55,236	)			(42,722	)
Plan assets			(31,145	)			(9,564	)
		W	(1,561,657	)			(931,507	)

(Continued)

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Consolidated Interim Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2020 and 2019 (Unaudited)

In millions of won		September 30, 2020				September 30, 2019
Cash generated from operating activities		W	12,136,201				8,984,207
Dividends received (financial assets at fair value through other comprehensive income)			4,649				4,431
Interest paid			(1,584,564	)			(1,546,746	)
Interest received			160,648				116,014
Income taxes paid			(404,966	)			(326,135	)
Net cash provided by operating activities			10,311,968				7,231,771
Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			95				—
Acquisition of investments in associates and joint ventures			(136,719	)			(67,268	)
Proceeds from disposals of property, plant and equipment			253,125				255,846
Acquisition of property, plant and equipment			(9,511,578	)			(8,549,004	)
Proceeds from disposals of intangible assets			10,872				7,421
Acquisition of intangible assets			(81,266	)			(143,125	)
Proceeds from disposals of financial assets			5,253,403				1,641,588
Acquisition of financial assets			(8,013,396	)			(3,719,145	)
Increase in loans			(153,674	)			(195,468	)
Collection of loans			166,836				119,043
Increase in deposits			(215,135	)			(201,674	)
Decrease in deposits			218,801				202,955
Proceeds from disposals of assets held-for-sale			32,578				1,562
Receipt of government grants			23,718				11,214
Net cash outflow from changes in consolidation scope			(25,094	)			(2,820	)
Other cash outflow from investing activities, net			(134,020	)			(97,167	)
Net cash used in investing activities			(12,311,454	)			(10,736,042	)
Cash flows from financing activities
Proceeds from short-term borrowings, net			234,763				634,535
Proceeds from long-term borrowings and debt securities			8,927,076				8,608,168
Repayment of long-term borrowings and debt securities			(6,902,016	)			(5,164,783	)
Payment of lease liabilities			(467,300	)			(405,881	)
Settlement of derivative instruments, net			62,117				106,224
Change in non-controlling interests			9,923				12,346
Dividends paid (hybrid bond)			(10,039	)			(10,039	)
Dividends paid			(81,073	)			(84,526	)
Other cash outflow from financing activities, net			(2,409	)			—
Net cash provided by financing activities			1,771,042				3,696,044
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations			(228,444	)			191,773
Effect of exchange rate fluctuations on cash held			(5,587	)			(4,513	)
Net increase (decrease) in cash and cash equivalents			(234,031	)			187,260
Cash and cash equivalents at January 1			1,810,129				1,358,345
Cash and cash equivalents at September 30		W	1,576,098				1,545,605

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

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Notes to the Consolidated Interim Financial Statements

September 30, 2020 and 2019 (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 September 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 111,735,545 shares (17.41%) as of the most recent closing date of Register of Shareholders (August 10, 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

• derivative financial instruments are measured at fair value

• liabilities for defined benefit plans are recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets

(3) Functional and presentation currency

These consolidated financial statements are presented in Korean won (“Won”), which is KEPCO’s functional currency and the currency of the primary economic environment in which the Group operates.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 benefit liabilities

The Group offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and 2019 are W1,234,928 million and W1,263,640 million, respectively.

(vi) Construction contracts

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

4. Segment, Geographic and Other Information

(1) Segment determination and explanation of the measurements

The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by the Group’s the chief operating decision maker, the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Group’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation (Non-nuclear)’, ‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Group’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under KIFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an arms-length basis at market prices that would be applicable to an independent third-party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidation adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

4. Segment, Geographic and Other Information, Continued

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

In millions of won
September 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				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Transmission and distribution		W	15,634,734				43,490,173				237,370				859,921				15,397,364				42,630,252				1,604,785				1,569,048				942,140				2,833,398				9,546				39,101				169,841				559,237				(9,136	)			110,441
Electric power generation (Nuclear)			2,564,740				7,363,180				2,541,315				7,265,021				23,425				98,159				573,749				1,202,869				858,728				2,638,023				7,389				19,302				124,356				373,071				(249	)			(1,600	)
Electric power generation (Non-nuclear)			5,585,324				15,838,226				5,528,421				15,350,735				56,903				487,491				128,328				240,210				996,899				2,995,546				3,986				15,601				155,175				474,417				33,677				117,917
Plant maintenance & engineering service			633,785				1,794,945				520,669				1,491,375				113,116				303,570				78,732				143,803				29,861				88,898				2,441				9,306				186				1,078				(1,015	)			3,032
Others			398,591				1,163,361				278,021				805,796				120,569				357,565				34,853				112,141				35,511				95,402				42,565				129,684				40,285				119,360				—				—
Consolidation adjustments			(9,105,797	)			(25,772,848	)			(9,105,796	)			(25,772,848	)			—				—				(88,242	)			(115,502	)			(34,881	)			(99,596	)			(7,307	)			(23,798	)			(6,591	)			(23,038	)			—				—
		W	15,711,377				43,877,037				—				—				15,711,377				43,877,037				2,332,205				3,152,569				2,828,258				8,551,671				58,620				189,196				483,252				1,504,125				23,277				229,790
In millions of won
September 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				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Transmission and distribution		W	15,929,809				44,172,408				295,434				1,027,377				15,634,375				43,145,031				672,729				(1,478,889	)			911,592				2,715,313				17,382				53,500				197,267				579,134				(18,789	)			133,311
Electric power generation (Nuclear)			2,035,375				6,628,824				2,037,944				6,628,812				(2,569	)			12				(22,944	)			778,589				800,107				2,388,534				11,487				29,110				127,890				383,643				(4,126	)			(1,847	)
Electric power generation (Non-nuclear)			6,593,542				18,389,805				6,489,504				17,833,957				104,038				555,848				525,190				826,213				987,258				2,928,392				7,829				19,390				158,543				489,867				5,565				48,646
Plant maintenance & engineering service			593,605				1,756,093				510,385				1,511,776				83,220				244,317				73,802				204,634				30,516				94,536				3,447				10,460				441				2,496				869				295
Others			276,949				745,086				183,728				458,631				93,221				286,455				(6,528	)			43,362				13,144				52,316				38,659				105,281				41,924				102,963				—				—
Consolidation adjustments			(9,516,995	)			(27,460,553	)			(9,516,995	)			(27,460,553	)			—				—				(2,983	)			(63,183	)			(28,038	)			(74,495	)			(7,385	)			(21,743	)			(4,749	)			(20,258	)			—				—
		W	15,912,285				44,231,663				—				—				15,912,285				44,231,663				1,239,266				310,726				2,714,579				8,104,596				71,419				195,998				521,316				1,537,845				(16,481	)			180,405

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

4. Segment, Geographic and Other Information, Continued

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

In millions of won
September 30, 2020
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	111,679,104				4,240,668				4,828,647				59,210,957
Electric power generation (Nuclear)			61,148,407				71,462				1,672,051				34,974,545
Electric power generation (Non-nuclear)			53,991,354				1,775,220				2,853,613				32,654,676
Plant maintenance & engineering service			3,463,718				51,867				89,654				1,116,820
Others			8,853,689				—				374,106				4,051,148
Consolidation adjustments			(37,358,866	)			—				(225,227	)			(366,350	)
		W	201,777,406				6,139,217				9,592,844				131,641,796
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)
		September 30, 2020								September 30, 2019								September 30, 2020				December 31, 2019
Geographical unit		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Domestic		W	15,376,137				42,870,560				15,557,106				43,149,004				171,599,659				169,366,365
Overseas (*1)			335,240				1,006,477				355,179				1,082,659				2,832,359				2,743,755
		W	15,711,377				43,877,037				15,912,285				44,231,663				174,432,018				172,110,120

(*1) Middle East and other Asian countries make up the majority of overseas revenue and non-current assets. Since the overseas revenue or non-current assets attributable to particular countries are not material, they are not disclosed individually.

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 nine-month periods ended September 30, 2020 and 2019.

5. Classification of Financial Instruments

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

In millions of won		September 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	—				—				1,576,098				—				1,576,098
Current financial assets
Current financial assets at fair value through profit or loss			2,480,351				—				—				—				2,480,351
Current financial assets at amortized costs			—				—				13,129				—				13,129
Current derivative assets			61,130				—				—				46,029				107,159
Other financial assets			—				—				1,755,015				—				1,755,015
Trade and other receivables			—				—				7,288,588				—				7,288,588
			2,541,481				—				10,632,830				46,029				13,220,340
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			675,117				—				—				—				675,117
Non-current financial assets at fair value through other comprehensive income			—				337,083				—				—				337,083
Non-current financial assets at amortized costs			—				—				1,314				—				1,314
Non-current derivative assets			281,197				—				—				171,774				452,971
Other financial assets			—				—				1,307,911				—				1,307,911
Trade and other receivables			—				—				1,920,428				—				1,920,428
			956,314				337,083				3,229,653				171,774				4,694,824
		W	3,497,795				337,083				13,862,483				217,803				17,915,164

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of September 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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

5. Classification of Financial Instruments, Continued

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

In millions of won		September 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	—				1,480,667				—				1,480,667
Debt securities			—				7,879,336				—				7,879,336
Derivative liabilities			9,963				—				11,229				21,192
Trade and other payables			—				5,004,275				—				5,004,275
			9,963				14,364,278				11,229				14,385,470
Non-current liabilities
Borrowings			—				3,504,247				—				3,504,247
Debt securities			—				57,416,970				—				57,416,970
Derivative liabilities			52,352				—				61,481				113,833
Trade and other payables			—				7,012,377				—				7,012,377
			52,352				67,933,594				61,481				68,047,427
		W	62,315				82,297,872				72,710				82,432,897
In millions of won		December 31, 2019
		Financial liabilities at fair value through profit or loss				Financial liabilities recognized at amortized cost				Derivative liabilities (applying hedge accounting)				Total
Current liabilities
Borrowings		W	—				1,315,134				—				1,315,134
Debt securities			—				7,542,705				—				7,542,705
Derivative liabilities			13,286				—				59,778				73,064
Trade and other payables			—				6,649,402				—				6,649,402
			13,286				15,507,241				59,778				15,580,305
Non-current liabilities
Borrowings			—				3,389,743				—				3,389,743
Debt securities			—				55,628,959				—				55,628,959
Derivative liabilities			39,861				—				57,035				96,896
Trade and other payables			—				6,965,760				—				6,965,760
			39,861				65,984,462				57,035				66,081,358
		W	53,147				81,491,703				116,813				81,661,663

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

5. Classification of Financial Instruments, Continued

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

In millions of won				September 30, 2020								September 30, 2019
				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Cash and cash equivalents		Interest income		W	1,375				7,421				22,672				57,917
		Gain (loss) on foreign currency transactions and translations			(1,417	)			11,528				5,302				13,096
Financial assets at fair value through profit or loss		Interest income			3,946				13,027				1,358				4,613
		Gain (loss) on valuation of financial assets			882				9,897				(376	)			7,719
		Gain on disposal of financial assets			196				3,657				1,391				2,094
		Loss on foreign currency transactions and translations			(107	)			(245	)			—				—
Financial assets at fair value through other comprehensive income		Dividends income			564				4,649				2,262				6,002
Financial assets at amortized cost		Interest income			149				470				6				31
		Gain (loss) on foreign currency transactions and translations			(682	)			109				(346	)			(774	)
Loans		Interest income			4,052				12,954				13,427				39,465
		Gain (loss) on foreign currency transactions and translations			(191	)			61				514				(59	)
Trade and other receivables		Interest income			42,420				125,018				25,216				66,248
		Gain (loss) on foreign currency transactions and translations			(8,228	)			3,651				(40,744	)			(33,560	)
Short-term financial instruments		Interest income			3,808				20,840				8,644				27,330
		Gain (loss) on foreign currency transactions and translations			(21,431	)			4,018				38,120				65,386
Long-term financial instruments		Interest income			2,754				9,206				—				1
Other financial assets		Interest income			116				260				96				393
Financial liabilities carried at amortized cost		Interest expense of borrowings and debt securities			325,202				1,031,705				359,155				1,059,024
		Loss on repayment of financial liabilities			(5	)			(35	)			—				—
		Interest expense of trade and other payables			53,151				151,139				17,969				49,275
		Interest expense of others			104,899				321,281				144,192				429,546
		Other finance income			364				651				—				—
		Gain (loss) on foreign currency transactions and translations			315,706				(213,417	)			(479,415	)			(916,278	)
Derivatives (trading)		Gain (loss) on valuation of derivatives			(82,657	)			163,434				156,956				317,810
		Gain (loss) on transaction of derivatives			(332	)			14,665				13,668				45,563
Derivatives (applying hedge accounting)		Gain (loss) on valuation of derivatives (profit or loss)			(98,921	)			25,216				139,704				290,033
		Gain (loss) on valuation of derivatives (equity, before tax)			17,481				95,178				(7,627	)			26,536
		Gain on transaction of derivatives			2,583				70,397				34,557				51,424

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

6. Restricted Deposits

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

In millions of won				September 30, 2020				December 31, 2019
Cash and cash equivalents		Escrow		W	571				—
		Deposits for government project and others			6,029				9,287
		Collateral provided for borrowings			70,049				63,198
		Collateral provided for lawsuit			2				3
		Deposits for transmission regional support program			8,304				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			575,033				541,969
Long-term financial instruments		Escrow			82				74
		Guarantee deposits for banking accounts at oversea branches			330				326
		Collateral provided for borrowings			11,745				11,745
		Decommissioning costs of nuclear power plants			258,282				250,464
		Funds for developing small and medium enterprises (*)			200,000				200,000
				W	1,236,927				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 September 30, 2020 and December 31, 2019.

7. Cash and Cash Equivalents

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

In millions of won		September 30, 2020				December 31, 2019
Cash		W	1,198				266
Other demand deposits			1,127,645				1,117,499
Short-term deposits classified as cash equivalents			300,307				527,235
Short-term investments classified as cash equivalents			146,948				165,129
		W	1,576,098				1,810,129

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

8. Trade and Other Receivables

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

In millions of won		September 30, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	6,838,969				(209,598	)			—				6,629,371
Other receivables			688,983				(28,476	)			(1,290	)			659,217
			7,527,952				(238,074	)			(1,290	)			7,288,588
Non-current assets
Trade receivables			263,629				(194	)			—				263,435
Other receivables			1,748,440				(87,623	)			(3,824	)			1,656,993
			2,012,069				(87,817	)			(3,824	)			1,920,428
		W	9,540,021				(325,891	)			(5,114	)			9,209,016
In millions of won		December 31, 2019
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	7,147,683				(208,505	)			—				6,939,178
Other receivables			792,147				(27,579	)			(2,294	)			762,274
			7,939,830				(236,084	)			(2,294	)			7,701,452
Non-current assets
Trade receivables			338,261				(4,254	)			(382	)			333,625
Other receivables			1,759,930				(86,576	)			(4,682	)			1,668,672
			2,098,191				(90,830	)			(5,064	)			2,002,297
		W	10,038,021				(326,914	)			(7,358	)			9,703,749

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

8. Trade and Other Receivables, Continued

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

In millions of won		September 30, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	313,372				(28,215	)			—				285,157
Accrued income			55,674				—				—				55,674
Deposits			236,680				—				(1,290	)			235,390
Finance lease receivables			55,801				(261	)			—				55,540
Others			27,456				—				—				27,456
			688,983				(28,476	)			(1,290	)			659,217
Non-current assets
Non-trade receivables			136,107				(79,227	)			—				56,880
Accrued income			984				—				—				984
Deposits			375,108				—				(3,824	)			371,284
Finance lease receivables			1,133,095				(454	)			—				1,132,641
Others			103,146				(7,942	)			—				95,204
			1,748,440				(87,623	)			(3,824	)			1,656,993
		W	2,437,423				(116,099	)			(5,114	)			2,316,210
In millions of won		December 31, 2019
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	376,438				(27,201	)			—				349,237
Accrued income			68,921				—				—				68,921
Deposits			273,887				—				(2,294	)			271,593
Finance lease receivables			60,304				(378	)			—				59,926
Others			12,597				—				—				12,597
			792,147				(27,579	)			(2,294	)			762,274
Non-current assets
Non-trade receivables			196,821				(78,654	)			—				118,167
Accrued income			2,222				—				—				2,222
Deposits			338,989				—				(4,682	)			334,307
Finance lease receivables			1,118,537				(484	)			—				1,118,053
Others			103,361				(7,438	)			—				95,923
			1,759,930				(86,576	)			(4,682	)			1,668,672
		W	2,552,077				(114,155	)			(6,976	)			2,430,946

(3) Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. But once trade receivables are overdue, the Group imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Group holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with delinquent payments.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

8. Trade and Other Receivables, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Trade receivables: (not overdue)		W	6,793,410				7,338,757
Trade receivables: (impairment reviewed)			309,188				147,187
Less than 60 days			3,155				6,555
60 ~ 90 days			51,145				1,899
90 ~ 120 days			7,478				2,106
120 days ~ 1 year			38,520				37,357
Over 1 year			208,890				99,270
			7,102,598				7,485,944
Less: allowance for doubtful accounts			(209,792	)			(212,759	)
Less: present value discount			—				(382	)
		W	6,892,806				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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 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			18,297				502				29,221				19,206
Write-off, etc.			(12,869	)			(593	)			(10,106	)			(1,146	)
Reversals			(3,223	)			—				(41,940	)			—
Others			(5,172	)			2,035				19,716				(8,631	)
Ending balance		W	209,792				116,099				212,759				114,155

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

9. Financial Assets at Fair Value through Profit or Loss

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		W	64,961				145,887				894				160,952
Cooperative			—				5,468				—				5,155
Others (*)			2,415,390				308,366				130,491				244,857
			2,480,351				459,721				131,385				410,964
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—				215,396				—				150,916
Others			—				—				—				53,996
			—				215,396				—				204,912
		W	2,480,351				675,117				131,385				615,876

(*) ‘Others’ include MMT, etc.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 30, 2020
		Beginning balance				Acquisitions				Disposals				Valuation				Others				Ending balance
Listed		W	201,201				—				(4	)			(46,135	)			(273	)			154,789
Unlisted			177,969				2,900				(1	)			(163	)			1,589				182,294
			379,170				2,900				(5	)			(46,298	)			1,316				337,083
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				(5	)			(46,298	)			1,316				337,083

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 30, 2020
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				79,356				79,356
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				156				156
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				52				52
PAN Ocean Co., Ltd.			1,492				0.00	%			14				5				5
Dongbu Corp.			955				0.00	%			12				10				10
KSP Co., Ltd.			22,539				0.06	%			53				28				28
STX Heavy Industries Co., Ltd.			7,419				0.03	%			107				30				30
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk.			480,000,000				1.50	%			65,028				42,930				42,930
Energy Fuels Inc.			1,711,814				1.31	%			16,819				3,336				3,336
Bunji Corporation Limited			99,763				0.07	%			18,445				—				—
Denison Mines Corp.			58,284,000				9.76	%			84,134				28,655				28,655
Fission 3.0			75,000				0.05	%			—				5				5
Fission Uranium Corp.			800,000				0.16	%			785				225				225
											359,262				154,789				154,789
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				2,632				2,632
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)											11,987				8,358				8,358
											270,879				182,294				182,294
										W	630,141				337,083				337,083

(*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 nine-month period ended September 30, 2020.

(*3) Equity securities acquired through debt-for-equity swaps of electricity rate bonds, etc. It consists of 269 companies including Hwan Young Steel Ind. Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

11. Financial Assets at Amortized Cost

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

In millions of won		September 30, 2020
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,443				—				—				—				1,443
Others			13,000				—				—				—				13,000
		W	14,443				—				—				—				14,443
Current		W	13,129				—				—				—				13,129
Non-current			1,314				—				—				—				1,314

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Derivative assets
Currency forward		W	61,129				—				21				43,931
Currency swap			46,030				441,298				27,597				229,258
Interest rate swap			—				9,038				—				7,592
Others (*1)			—				2,635				—				2,634
		W	107,159				452,971				27,618				283,415
Derivative liabilities
Currency forward		W	2,844				—				7,081				—
Currency swap			10,281				36,890				59,327				45,184
Interest rate swap			1,862				75,975				451				50,756
Others (*2, 3)			6,205				968				6,205				956
		W	21,192				113,833				73,064				96,896

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

(*2) As described in Note 46, the Group has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’.

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of September 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
Woori Bank			2020.09.07				2020.10.07				47,971				USD 40,400				1,187.41
Shinhan Bank			2020.07.21				2020.10.13				5,222				USD 4,360				1,197.58
Shinhan Bank			2020.07.21				2020.10.13				5,619				USD 4,692				1,197.58
Shinhan Bank			2020.07.21				2020.10.15				4,073				USD 3,402				1,197.23
Shinhan Bank			2020.07.21				2020.10.19				4,424				USD 3,696				1,197.17
Shinhan Bank			2020.07.22				2020.10.08				5,253				USD 4,402				1,193.35
Shinhan Bank			2020.07.28				2020.10.08				5,437				USD 4,561				1,192.10
Mizuho Bank			2020.08.05				2020.11.03				9,083				USD 7,626				1,191.00
Mizuho Bank			2020.08.05				2020.11.03				5,237				USD 4,400				1,190.30
Shinhan Bank			2020.08.13				2020.11.10				7,085				USD 5,994				1,182.10
Hana Bank			2020.08.27				2020.11.16				8,937				USD 7,538				1,185.60
Shinhan Bank			2020.08.27				2020.11.25				5,792				USD 4,885				1,185.50
Nonghyup Bank			2020.08.28				2020.10.06				5,920				USD 5,000				1,184.00
Mizuho Bank			2020.08.28				2020.11.17				11,794				USD 9,954				1,184.80
Morgan Stanley			2020.09.04				2020.10.08				5,950				USD 5,000				1,189.90
Korea Development Bank			2020.09.08				2020.10.12				5,935				USD 5,000				1,187.00
Hana Bank			2020.09.10				2020.10.14				3,554				USD 3,000				1,184.75
Mizuho Bank			2020.09.10				2020.10.15				5,925				USD 5,000				1,184.95
Woori Bank			2020.09.11				2020.10.19				8,311				USD 7,000				1,187.25
Nonghyup Bank			2020.09.14				2020.10.22				4,738				USD 4,000				1,184.60
Mizuho Bank			2020.09.14				2020.10.23				5,919				USD 5,000				1,183.80
Standard Chartered			2020.09.15				2020.10.26				7,093				USD 6,000				1,182.15
Hana Bank			2020.09.15				2020.10.27				7,084				USD 6,000				1,180.70
CCB			2020.09.15				2020.10.27				4,716				USD 4,000				1,179.00
Shinhan Bank			2020.09.15				2020.11.30				5,029				USD 4,252				1,182.93
Shinhan Bank			2020.09.15				2020.12.01				7,565				USD 6,406				1,180.93
Shinhan Bank			2020.09.15				2020.12.08				9,121				USD 7,723				1,181.02
Nonghyup Bank			2020.09.16				2020.10.28				3,530				USD 3,000				1,176.50
Credit Agricole			2020.09.25				2020.10.30				5,849				USD 5,000				1,169.80
Korea Development Bank			2020.09.28				2020.11.03				5,871				USD 5,000				1,174.14
MUFG			2020.09.10				2020.10.06				5,927				USD 5,000				1,185.41
Nonghyup Bank			2020.09.11				2020.10.06				10,102				USD 8,500				1,188.50
Mizuho Bank			2020.09.22				2020.10.13				10,477				USD 9,000				1,164.10
Hana Bank			2020.09.28				2020.10.13				10,563				USD 9,000				1,173.70
Korea Development Bank			2020.09.22				2020.10.06				4,006				EUR 2,924				1,370.07
Standard Chartered			2020.09.15				2020.10.16				2,787				USD 2,364				1,178.80
Mizuho Bank			2020.09.15				2020.10.16				5,893				USD 5,000				1,178.67
MUFG			2020.09.18				2020.10.22				4,854				USD 4,154				1,168.45
Credit Agricole			2020.09.18				2020.10.22				5,842				USD 5,000				1,168.40
Nova Scotia			2020.09.18				2020.10.22				7,374				USD 6,331				1,164.85
Hana Bank			2020.09.07				2020.10.06				2,969				USD 2,500				1,187.40
Nonghyup Bank			2020.09.14				2020.10.13				1,658				USD 1,400				1,184.40

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of September 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
Busan Bank			2020.09.29				2020.10.23			W	3,860				USD 3,300			W	1,169.60
Soohyup Bank			2020.09.29				2020.10.23				3,275				USD 2,800				1,169.80
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
Nova Scotia			2020.09.18				2021.01.12				46,700				USD 40,000				1,167.50
Mizuho Bank			2020.09.18				2021.03.11				15,177				USD 13,000				1,167.45
HSBC			2020.09.18				2021.06.11				31,506				USD 27,000				1,166.90
Standard Chartered			2020.09.03				2020.10.08				4,509				USD 3,800				1,186.70
Shinhan Bank			2020.09.10				2020.10.13				4,740				USD 4,000				1,184.93
Shinhan Bank			2020.09.10				2020.10.13				4,382				USD 3,700				1,184.45
Credit Agricole			2020.09.23				2020.10.26				5,007				USD 4,300				1,164.40
Woori Bank			2020.09.24				2020.10.26				8,189				USD 7,000				1,169.90
Shinhan Bank			2020.09.24				2020.10.26				11,707				USD 10,000				1,170.70
Hana Bank			2020.09.24				2020.10.26				5,861				USD 5,000				1,172.15
Nova Scotia			2020.09.24				2020.10.28				5,872				USD 5,000				1,174.40
Shinhan Bank			2020.09.28				2020.10.30				10,211				USD 8,700				1,173.73
Shinhan Bank			2020.09.29				2020.10.30				7,487				USD 6,400				1,169.85
Woori Bank			2020.09.29				2020.10.30				5,614				USD 4,800				1,169.50

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of September 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 200,000			1.44%		0.00%			1,199.78
Korea Development Bank			2019~2027				119,978				CHF 100,000			1.43%		0.05%			1,199.78
HSBC			2019~2024				USD 205,500				AUD 300,000			3M Libor + 0.78%		3M BBSW + 0.97%			USD 0.69

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of September 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)
						Pay				Receive				Pay		Receive
Kookmin Bank			2020~2025			W	118,780				USD 100,000			1.29%		2.13%		W	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			2020~2026				118,910				USD 100,000			0.61%		1.00%			1,189.10
Hana Bank			2020~2026				118,910				USD 100,000			0.61%		1.00%			1,189.10
Woori Bank			2020~2026				118,910				USD 100,000			0.62%		1.00%			1,189.10
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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of September 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%

Hana Bank

2017~2021

200,000

2.45%

3M CD + 0.32%

Nomura (*)

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

(*) 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 the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(6) Interest rate swap contracts which are designated as hedging instruments as of September 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 74,264

4.16%

6M USD Libor

KFW

2009~2027

USD 74,264

4.16%

6M USD Libor

Export-import bank of Korea

2016~2036

USD 78,092

3.00%

6M USD Libor

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

12. Derivatives, Continued

(7) Gains and losses on valuation and transaction of derivatives for the three and nine-month periods ended September 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)																Other comprehensive income (loss) (*)
		September 30, 2020								September 30, 2019								September 30, 2020								September 30, 2019								September 30, 2020								September 30, 2019
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Currency forward		W	(15,981	)			14,990				27,848				50,381				(3,272	)			6,856				5,024				15,266				—				—				—				—
Currency swap			(170,967	)			187,295				279,069				588,832				10,777				86,974				44,208				83,119				17,025				80,999				(9,091	)			34,436
Interest rate swap			5,370				(13,635	)			(10,257	)			(31,370	)			(5,254	)			(8,768	)			(1,007	)			(1,398	)			456				14,179				1,464				(7,900	)
		W	(181,578	)			188,650				296,660				607,843				2,251				85,062				48,225				96,987				17,481				95,178				(7,627	)			26,536

(*) For the nine-month period ended September 30, 2020, the net gain on valuation of derivatives applying cash flow hedge accounting of W58,693 million, net of tax, is included in other comprehensive income (loss).

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

13. Other Financial Assets

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Loans		W	76,834				847,612				64,111				725,755
Less: allowance for doubtful accounts			(4	)			(11,181	)			(31	)			(15,063	)
Less: present value discount			(910	)			(31,988	)			(847	)			(35,218	)
			75,920				804,443				63,233				675,474
Long-term / short-term financial instruments			1,679,095				503,468				1,351,971				608,256
		W	1,755,015				1,307,911				1,415,204				1,283,730

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

In millions of won		September 30, 2020
		Face value				Allowance for doubtful accounts				Present value discount				Book value
Short-term loans
Loans for tuition		W	35,914				—				(910	)			35,004
Loans for housing			21,048				—				—				21,048
Fisheries loan			3,813				—				—				3,813
Other loans			16,059				(4	)			—				16,055
			76,834				(4	)			(910	)			75,920
Long-term loans
Loans for tuition			428,282				—				(31,988	)			396,294
Loans for housing			226,435				—				—				226,435
Loans for related parties			128,173				(1,047	)			—				127,126
Other loans			64,722				(10,134	)			—				54,588
			847,612				(11,181	)			(31,988	)			804,443
		W	924,446				(11,185	)			(32,898	)			880,363

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

13. Other Financial Assets, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	15,094				4,952
Bad debt expense (reversal)			(2,465	)			10,142
Others			(1,444	)			—
Ending balance		W	11,185				15,094

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Time deposits		W	1,316,483				173,129				1,034,971				257,857
CP			49,565				9,915				40,000				—
CD			15,000				—				15,000				—
RP			55,105				—				40,000				—
Others			242,942				320,424				222,000				350,399
		W	1,679,095				503,468				1,351,971				608,256

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

14. Inventories

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

In millions of won		September 30, 2020
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,625,704				(1,430	)			3,624,274
Merchandises			1,354				—				1,354
Work-in-progress			173,082				—				173,082
Finished goods			49,612				—				49,612
Supplies			2,339,559				(4,640	)			2,334,919
Inventories-in-transit			716,609				—				716,609
Other inventories			20,062				—				20,062
		W	6,925,982				(6,070	)			6,919,912
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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 were W3,898 million and W4,872 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the nine-month period ended September 30, 2020 and for the year ended December 31, 2019 were W4,169 million and W3,127 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

15. Non-financial Assets

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advanced payments		W	198,624				41,979				147,784				2,694
Prepaid expenses			261,904				144,675				308,017				84,421
Others (*)			352,527				53,076				750,576				79,814
		W	813,055				239,730				1,206,377				166,929
(*)   Details of others as of September 30, 2020 and December 31, 2019 are as follows:
In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Greenhouse gas emissions rights		W	225,244				—				437,562				—
Other quick assets			127,283				53,076				313,014				79,814
		W	352,527				53,076				750,576				79,814

16. Consolidated Subsidiaries

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

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 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	%

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2020				December 31, 2019
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	%
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	%

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2020				December 31, 2019
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 Mangilao Holdings LLC (formerly, 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 Mangilao Solar, LLC (formerly, 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	%

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2020				December 31, 2019
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	%
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	%			—
Moha Solar Co., Ltd.		Power generation		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 Mangilao Holdings LLC (formerly, 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 nine-month period ended September 30, 2020 are as follows, and there are no subsidiaries that are excluded from the consolidation scope during the nine-month period ended September 30, 2020.

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

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

In millions of won
September 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.		W	61,148,407				34,974,545				7,363,180				631,758
Korea South-East Power Co., Ltd.			10,754,822				5,829,563				3,268,175				(80,048	)
Korea Midland Power Co., Ltd.			12,939,529				9,161,161				3,462,529				109,565
Korea Western Power Co., Ltd.			10,153,457				6,374,461				2,794,778				(63,088	)
Korea Southern Power Co., Ltd.			10,699,665				6,445,600				3,220,480				22,154
Korea East-West Power Co., Ltd.			9,431,688				4,831,697				3,092,264				(89,743	)
KEPCO Engineering & Construction Company, Inc.			675,397				190,215				273,354				10,210
KEPCO Plant Service & Engineering Co., Ltd.			1,354,551				322,468				899,921				68,005
KEPCO Nuclear Fuel Co., Ltd.			818,876				428,615				194,804				(1,676	)
KEPCO KDN Co., Ltd.			614,894				175,522				426,866				15,174
KEPCO International HongKong Ltd.			136,486				—				—				1,919
KEPCO International Philippines Inc.			142,620				113				—				34,999
KEPCO Gansu International Ltd.			8,375				553				—				(6	)
KEPCO Philippines Holdings Inc.			207,600				5,491				—				46,274
KEPCO Philippines Corporation			6,632				24				—				(160	)
KEPCO Ilijan Corporation			343,056				50,143				61,882				36,536
KEPCO Lebanon SARL			1,812				9,917				—				(47	)
KEPCO Neimenggu International Ltd.			215,165				1,276				—				13,101
KEPCO Shanxi International Ltd.			537,290				210,209				—				(7,289	)
KOMIPO Global Pte., Ltd.			280,186				1,082				—				7,089
KEPCO Netherlands B.V.			125,970				81				—				1,779
KOREA Imouraren Uranium Investment Corp.			14,334				156				—				(654	)
KEPCO Australia Pty., Ltd.			428				11				—				57
KOSEP Australia Pty., Ltd.			33,645				3,361				11,501				1,881
KOMIPO Australia Pty., Ltd.			44,683				3,713				11,502				2,449
KOWEPO Australia Pty., Ltd.			44,387				3,558				11,501				1,394
KOSPO Australia Pty., Ltd.			38,150				2,897				11,501				2,127
KEPCO Middle East Holding Company			97,069				83,681				—				(1,164	)
Qatrana Electric Power Company			502,362				314,459				16,197				18,173
KHNP Canada Energy, Ltd.			46,106				27				—				(9	)
KEPCO Bylong Australia Pty., Ltd.			44,472				371,837				—				(6,997	)
Korea Waterbury Uranium Limited Partnership			20,907				162				—				(55	)
KEPCO Holdings de Mexico			172				36				—				6
KST Electric Power Company			584,050				450,769				47,198				41,816
KEPCO Energy Service Company			2,748				1,233				4,182				835
KEPCO Netherlands S3 B.V.			48,294				67				—				4,145
PT. KOMIPO Pembangkitan Jawa Bali			12,609				1,431				16,077				6,256
PT. Cirebon Power Service			1,924				731				6,403				164
KOWEPO International Corporation			—				11				—				—
KOSPO Jordan LLC			17,804				670				6,376				1,510
EWP Philippines Corporation			1,790				945				—				(8	)
EWP America Inc. (*1)			51,709				3,468				11,069				(3,842	)
KNF Canada Energy Limited			1,918				17				—				(36	)
EWP Barbados 1 SRL			321,794				1,053				2,251				36,084
Gyeonggi Green Energy Co., Ltd.			280,225				254,207				43,380				(9,301	)
PT. Tanggamus Electric Power			229,847				196,111				2,595				2,136
Gyeongju Wind Power Co., Ltd.			108,155				72,494				9,305				673
KOMIPO America Inc.			29,737				990				218				(995	)
KOSEP USA, Inc.			1				5,217				—				—
PT. EWP Indonesia			34,583				569				—				6,385
KEPCO Netherlands J3 B.V.			121,633				92				—				(17	)
Korea Offshore Wind Power Co., Ltd.			350,266				180,987				21,952				2,310

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

In millions of won
September 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
Global One Pioneer B.V.		W	210				92				—				(85	)
Global Energy Pioneer B.V.			382				101				—				(85	)
Mira Power Limited			382,354				298,099				21,832				(4,384	)
KOSEP Material Co., Ltd.			2,376				836				2,586				(47	)
Commerce and Industry Energy Co., Ltd.			90,878				41,885				22,174				1,726
KEPCO KPS Philippines Corp.			2,945				245				4,032				(167	)
KOSPO Chile SpA			137,825				51,550				—				(543	)
PT. KOWEPO Sumsel Operation And Maintenance Services			110				245				—				(15	)
HeeMang Sunlight Power Co., Ltd.			7,619				4,662				318				(108	)
Fujeij Wind Power Company			235,560				211,077				—				11,905
KOSPO Youngnam Power Co., Ltd.			369,813				278,654				198,156				(110	)
VI Carbon Professional Private Special Asset Investment Trust 1			3,003				4				—				4
Chitose Solar Power Plant LLC			143,342				126,270				13,869				1,823
KEPCO Energy Solution Co., Ltd.			310,994				2,755				2,846				2,193
Solar School Plant Co., Ltd.			214,735				8,070				2,061				1,205
KOSPO Power Services Limitada			3,500				629				7,959				1,232
Energy New Industry Specialized Investment Private Investment Trust (*2)			262,632				2,863				9,953				4,003
KOEN Bylong Pty., Ltd.			6				64				—				—
KOMIPO Bylong Pty., Ltd.			6				64				—				—
KOWEPO Bylong Pty., Ltd.			6				63				—				(2	)
KOSPO Bylong Pty., Ltd.			152				212				—				(2	)
EWP Bylong Pty., Ltd.			6				35				—				28
KOWEPO Lao International			8,733				215				6,482				3,986
KEPCO US Inc.			17,444				—				—				—
KEPCO Alamosa LLC			33,662				92				97				(239	)
KEPCO Solar of Alamosa, LLC			62,768				46,611				7,138				68
KEPCO Mangilao Holdings LLC (formerly, KEPCO-LG CNS Mangilao Holdings LLC)			27,811				31,187				—				(500	)
Mangilao Investment LLC			40,943				63				—				(5	)
KEPCO Mangilao Solar, LLC (formerly, KEPCO-LG CNS Mangilao Solar, LLC)			59,804				21,257				—				(195	)
Jeju Hanlim Offshore Wind Co., Ltd.			12,054				419				—				(2,136	)
PT. Siborpa Eco Power			11,383				6				—				(289	)
PT. Korea Energy Indonesia			1,763				186				1,913				191
KOLAT SpA			30,684				532				102				(149	)
KEPCO California, LLC			45,504				5,074				—				(1,138	)
KEPCO Mojave Holdings, LLC			102,817				71,309				—				(3,303	)
Incheon Fuel Cell Co., Ltd.			157,778				136,400				—				(816	)
KOEN Service Co., Ltd.			8,116				7,501				24,260				102
KOMIPO Service Co., Ltd.			4,198				3,855				20,874				(380	)
KOWEPO Service Co., Ltd.			6,411				3,685				21,955				1,797
KOSPO Service Co., Ltd.			3,772				3,528				16,582				(458	)
EWP Service Co., Ltd.			4,952				3,288				17,594				1,155
PT. KOMIPO Energy Indonesia			1,825				27				1,304				(537	)
KNF Partners Co., Ltd.			3,196				871				5,438				1,839
KOSPO USA Inc.			89,038				313				—				(1,628	)
Nambu USA LLC			638				—				—				400
Tamra Offshore Wind Power Co., Ltd.			149,970				114,455				14,459				1,316
KEPCO MCS Co., Ltd.			87,346				56,559				262,558				26,428
KEPCO FMS Co., Ltd.			9,718				13,168				60,079				(4,148	)
Firstkeepers Co., Ltd.			8,874				7,172				47,189				2,951

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

In millions of won
September 30, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the period
Secutec Co., Ltd.		W	12,963				10,180				45,618				2,691
SE Green Energy Co., Ltd.			148,042				118,628				11,063				2,278
KEPCO Mangilao America LLC			2,026				—				—				—
Mangilao Intermediate Holdings LLC			92,778				70,425				—				(3,320	)
KEPCO CSC Co., Ltd.			5,368				3,306				23,561				1,276
KOAK Power Limited			15,997				534				—				730
KOMIPO Europe B.V.			20,498				7				234				(99	)
Haenanum Energy Fund			28,206				99				112				7
Paju Ecoenergy Co., Ltd.			54,846				1,196				392				82
Guam Ukudu Power LLC			551				—				—				(136	)
TS Energy No. 25 Co., Ltd.			75,319				47,692				—				(1,840	)
KPS Partners Co., Ltd.			1,517				623				1,407				195
KEPCO E&C Service Co., Ltd.			2,379				1,367				2,315				512
Moha Solar Co., Ltd.			7,056				7,324				—				(212	)

(*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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 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 Youngnaem 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 Mangilao Holdings LLC (formerly, KEPCO-LG CNS Mangilao Holdings LLC)			27,439				30,287				—				(1,240	)
Mangilao Investment LLC			39,972				—				—				—
KEPCO Mangilao Solar, LLC (formerly, KEPCO-LG CNS Mangilao Solar, LLC)			39,373				11				—				(524	)
Jeju Hanlim Offshore Wind Co., Ltd.			14,328				558				—				(2,459	)
PT. Siborpa Eco Power			11,574				71				—				(1,165	)
PT. Korea Energy Indonesia			1,592				121				2,462				323
KOLAT SpA			31,178				167				656				(296	)
KEPCO California, LLC			44,074				936				358				(513	)
KEPCO Mojave Holdings, LLC			103,815				69,544				—				(4,215	)
Incheon Fuel Cell Co., Ltd.			22,669				475				—				(1,010	)
KOEN Service Co., Ltd.			5,347				4,252				25,890				543
KOMIPO Service Co., Ltd.			3,327				2,622				24,556				146
KOWEPO Service Co., Ltd.			4,228				3,302				23,982				389
KOSPO Service Co., Ltd.			3,493				2,788				18,741				135
EWP Service Co., Ltd.			4,786				4,064				20,837				162
PT. KOMIPO Energy Indonesia			2,647				196				1,392				79
KNF Partners Co., Ltd.			1,378				890				3,383				187
KOSPO USA Inc.			5,896				127				—				(1,408	)
Nambu USA LLC			245				1				—				245
Tamra Offshore Wind Power Co., Ltd.			156,708				121,724				19,670				1,154
KEPCO MCS Co., Ltd.			26,510				22,151				129,393				3,408
KEPCO FMS Co., Ltd.			11,336				10,638				37,627				198
Firstkeepers Co., Ltd.			1,552				2,800				121				(2,239	)
Secutec Co., Ltd.			322				229				—				(597	)
SE Green Energy Co., Ltd.			132,727				105,619				—				816

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 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 September 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. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.

(5) As of September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

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

In millions of won
September 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	224,950				759,253				217,238				901,655				2,103,096
Non-current assets			118,106				595,298				458,159				3,640,167				4,811,730
Current liabilities			(10,960	)			(184,738	)			(155,633	)			(442,722	)			(794,053	)
Non-current liabilities			(39,183	)			(137,730	)			(34,582	)			(2,455,099	)			(2,666,594	)
Net assets			292,913				1,032,083				485,182				1,644,001				3,454,179
Book value of non-controlling interests			143,527				505,721				164,574				586,016				1,399,838
Sales			61,882				899,921				273,354				639,628				1,874,785
Profit for the period			36,536				68,005				10,210				67,516				182,267
Profit for the period attributable to non-controlling interests			17,903				33,322				3,463				27,564				82,252
Cash flows from operating activities			96,341				69,792				(8,711	)			211,391				368,813
Cash flows from investing activities			6,481				31,026				(15,574	)			(467,097	)			(445,164	)
Cash flows from financing activities before dividends to non-controlling interests			(32,275	)			(46,951	)			(8,830	)			217,228				129,172
Dividends to non-controlling interests			(30,850	)			(42,336	)			(4,000	)			(3,887	)			(81,073	)
Effect of exchange rate fluctuation			(247	)			(927	)			12				(211	)			(1,373	)
Net increase (decrease) of cash and cash equivalents			39,450				10,604				(37,103	)			(42,576	)			(29,625	)

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 interests			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 interests			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 interests			(68,678	)			(44,332	)			(34,632	)			223,233				75,591
Dividends to non-controlling interests			(48,750	)			(39,466	)			(1,807	)			(9,233	)			(99,256	)
Effect of exchange rate fluctuation			2,111				(593	)			(14	)			2,501				4,005
Net increase (decrease) of cash and cash equivalents			(9,152	)			(9,177	)			37,847				79,517				99,035

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

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

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

In millions of won		September 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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures

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

In millions of won
September 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				1,636,364
Gemeng International Energy Co., Ltd.		Power generation			CHINA				34.00	%			413,153				695,713
PT. Bayan Resources TBK		Resources development			INDONESIA				20.00	%			615,860				419,774
Korea Power Exchange (*2)		Management of power market and others			KOREA				100.00	%			127,839				270,592
GS Donghae Electric Power Co., Ltd.		Power generation			KOREA				34.00	%			204,000				251,558
Hyundai Green Power Co., Ltd.		Power generation			KOREA				29.00	%			88,885				133,715
PT. Cirebon Electric Power		Power generation			INDONESIA				27.50	%			40,365				123,034
S-Power Co., Ltd.		Power generation			KOREA				49.00	%			132,300				116,412
Dongducheon Dream Power Co., Ltd. (*3)		Power generation			KOREA				33.61	%			148,105				83,597
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			LAOS				25.00	%			87,426				71,095
Shin Pyeongtaek Power Co., Ltd.		Power generation			KOREA				40.00	%			72,000				68,430
SPC Power Corporation		Power generation			PHILIPPINES				38.00	%			20,635				74,965
Korea Electric Power Corporation Fund (*4)		Developing electric enterprises			KOREA				98.09	%			51,500				40,876
YTN Co., Ltd.		Broadcasting			KOREA				21.43	%			59,000				39,591
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant			NEPAL				60.35	%			50,268				44,809
PT. Wampu Electric Power		Power generation			INDONESIA				46.00	%			21,292				28,281
Others (Daeryun Power Co., Ltd. and 56 others)													217,641				147,348
												W	2,444,769				4,246,154
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			JAMAICA				40.00	%			301,910				277,049
KEPCO SPC Power Corporation (*6)		Construction and operation of utility plant			PHILIPPINES				75.20	%			94,579				217,071
Amman Asia Electric Power Company (*6)		Power generation			JORDAN				60.00	%			111,476				194,379
Datang Chifeng Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			121,928				201,097
Rabigh Electricity Company		Power generation			SAUDI ARABIA				40.00	%			109,743				119,238
Kelar S.A. (*6)		Power generation			CHILE				65.00	%			78,060				72,208
Solar Philippines Calatagan Corporation		Power generation			PHILIPPINES				38.00	%			47,903				51,745
RE Barren Ridge 1 Holdings LLC		Power generation			USA				50.00	%			28,021				5,772
RE Holiday Holdings LLC		Power generation			USA				50.00	%			42,948				70,903
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			10,858				43,998
Chun-cheon Energy Co., Ltd.		Power generation			KOREA				29.90	%			52,700				29,201
Chile Solar JV SpA		Power generation			CHILE				50.00	%			37,689				33,962
PT. Tanjung Power Indonesia		Power generation			INDONESIA				35.00	%			26,892				34,196
Shuweihat Asia Power Investment B.V.		Holding company			NETHERLANDS				49.00	%			44,405				13,964
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				52,071
Others (Daegu Green Power Co., Ltd. and 58 others)													596,453				476,209
													1,733,456				1,893,063
												W	4,178,225				6,139,217

(*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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 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			NETHERLANDS				49.00	%			44,405				18,318
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				31,156
Others (Daegu Green Power Co., Ltd. and 48 others)													338,693				309,127
													1,475,696				1,663,029
												W	4,015,652				5,914,831

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

(*2) The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

(*4) The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. For this reason, the entity is classified as an associate.

(*5) The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate.

(*6) The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won
Investees		September 30, 2020				December 31, 2019
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		W	33,089				33,089
Korea Gas Corporation			465,885				715,365
YTN Co., Ltd.			30,150				18,450
SPC Power Corporation			150,532				117,230
PT. Bayan Resources TBK			664,547				880,860

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

In millions of won
September 30, 2020
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of profit (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,693,967				—				—				(7,182	)			(31,160	)			(18,722	)			(539	)			1,636,364
Gemeng International Energy Co., Ltd.			670,896				—				—				—				266				24,944				(393	)			695,713
PT. Bayan Resources TBK			445,141				—				—				(15,720	)			8,989				(18,597	)			(39	)			419,774
Korea Power Exchange			258,899				—				—				—				11,755				—				(62	)			270,592
GS Donghae Electric Power Co., Ltd.			255,983				—				—				(12,898	)			8,473				—				—				251,558
Hyundai Green Power Co., Ltd.			124,253				—				—				(8,889	)			18,351				—				—				133,715
PT. Cirebon Electric Power			123,425				—				—				(9,954	)			7,840				1,723				—				123,034
S-Power Co., Ltd.			115,784				—				—				—				628				—				—				116,412
Dongducheon Dream Power Co., Ltd.			76,547				—				—				—				7,050				—				—				83,597
Xe-Pian Xe-Namnoy Power Co., Ltd.			72,935				—				—				—				(1,174	)			(666	)			—				71,095
Shin Pyeongtaek Power Co., Ltd.			66,956				—				—				—				10,715				(3,603	)			(5,638	)			68,430
SPC Power Corporation			63,583				—				—				(5,564	)			4,567				12,425				(46	)			74,965
Korea Electric Power Corporation Fund			41,126				—				—				—				(819	)			569				—				40,876
YTN Co., Ltd.			39,747				—				—				(90	)			(49	)			(10	)			(7	)			39,591
Nepal Water & Energy Development Company Private Limited			31,145				14,697				—				—				(1,554	)			521				—				44,809
PT. Wampu Electric Power			29,355				—				—				(1,326	)			(181	)			433				—				28,281
Others (Daeryun Power Co., Ltd. and 58 others)			142,060				9,748				(108	)			(6,786	)			1,456				(395	)			1,373				147,348
		W	4,251,802				24,445				(108	)			(68,409	)			45,153				(1,378	)			(5,351	)			4,246,154

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

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

In millions of won
September 30, 2020
Investees		Beginning balance				Acquisitions				Disposals				Dividends received				Share of profit (loss)				Other comprehen- sive income (loss)				Others				Ending balance
<Joint ventures>
Jamaica Public Service Company Limited		W	253,607				—				—				—				16,948				3,054				3,440				277,049
KEPCO SPC Power Corporation			214,794				—				—				(37,733	)			36,286				3,852				(128	)			217,071
Amman Asia Electric Power Company			192,164				—				—				—				15,527				(13,312	)			—				194,379
Datang Chifeng Renewable Power Co., Ltd.			185,307				—				—				(13,453	)			8,890				20,353				—				201,097
Rabigh Electricity Company			109,096				—				—				—				23,259				(13,117	)			—				119,238
Kelar S.A.			70,462				—				—				—				12,797				(11,087	)			36				72,208
Solar Philippines Calatagan Corporation			48,930				—				—				(2,872	)			4,412				1,275				—				51,745
RE Barren Ridge 1 Holdings LLC			42,916				—				—				(834	)			(34,557	)			(1,753	)			—				5,772
RE Holiday Holdings LLC			42,070				—				—				—				29,942				(1,109	)			—				70,903
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			41,024				—				—				—				1,444				1,530				—				43,998
Chun-cheon Energy Co., Ltd.			34,872				—				—				—				(5,671	)			—				—				29,201
Chile Solar JV SpA			34,859				—				—				—				69				(966	)			—				33,962
PT. Tanjung Power Indonesia			34,327				—				—				—				6,698				(6,829	)			—				34,196
Shuweihat Asia Power Investment B.V.			18,318				—				—				(3,295	)			4,556				(5,615	)			—				13,964
RE Pioneer Holdings LLC			31,156				—				—				(830	)			22,758				(1,013	)			—				52,071
Others (Daegu Green Power Co., Ltd. and 58 others)			309,127				137,345				—				(9,986	)			35,022				(915	)			5,616				476,209
			1,663,029				137,345				—				(69,003	)			178,380				(25,652	)			8,964				1,893,063
		W	5,914,831				161,790				(108	)			(137,412	)			223,533				(27,030	)			3,613				6,139,217

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won

September 30, 2020

Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	35,705,634				28,011,088				15,451,374				(249,515	)
Gemeng International Energy Co., Ltd.			7,411,388				5,365,173				1,289,823				17,904
PT. Bayan Resources TBK			1,565,186				891,433				1,204,621				141,882
Korea Power Exchange			334,838				64,245				78,204				10,057
GS Donghae Electric Power Co., Ltd.			2,212,480				1,472,604				511,226				24,919
Hyundai Green Power Co., Ltd.			989,796				528,708				363,526				58,837
PT. Cirebon Electric Power			769,918				322,520				181,773				27,975
S-Power Co., Ltd.			783,472				542,759				328,704				1,613
Dongducheon Dream Power Co., Ltd.			1,412,448				1,124,765				389,049				19,937
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,211,398				922,599				102,969				(4,389	)
Shin Pyeongtaek Power Co., Ltd.			956,512				752,756				416,492				29,476
SPC Power Corporation			278,917				19,668				35,630				31,092
Korea Electric Power Corporation Fund			41,855				186				87				(639	)
YTN Co., Ltd.			283,513				98,753				84,123				(3	)
Nepal Water & Energy Development Company Private Limited			86,460				14,659				—				(198	)
PT. Wampu Electric Power			210,213				148,733				14,405				(70	)
<Joint ventures>
Jamaica Public Service Company Limited			1,717,161				1,056,547				779,292				29,326
KEPCO SPC Power Corporation			307,018				18,360				138,184				50,097
Amman Asia Electric Power Company			814,028				490,063				16,207				25,880
Datang Chifeng Renewable Power Co., Ltd.			759,171				256,427				81,070				23,370
Rabigh Electricity Company			2,554,297				2,099,824				230,418				92,464
Kelar S.A.			640,498				533,570				72,259				13,578
Solar Philippines Calatagan Corporation			108,279				50,253				15,158				9,135
RE Barren Ridge 1 Holdings LLC			99,099				87,555				6,817				(871	)
RE Holiday Holdings LLC			322,343				180,538				10,409				7,112
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			195,141				85,146				18,664				3,448
Chun-cheon Energy Co., Ltd.			605,166				506,684				176,714				(18,967	)
Chile Solar JV SpA			69,991				2,066				2,892				1,240
PT. Tanjung Power Indonesia			705,040				607,338				72,133				18,117
Shuweihat Asia Power Investment B.V.			28,500				—				—				(220	)
RE Pioneer Holdings LLC			239,014				134,871				7,711				5,498

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 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.

57

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won
September 30, 2020
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	7,694,545				22.02	%			1,694,339				—				—				(57,975	)			1,636,364
Gemeng International Energy Co., Ltd.			2,046,215				34.00	%			695,713				—				—				—				695,713
PT. Bayan Resources TBK			673,752				20.00	%			134,750				361,403				—				(76,379	)			419,774
Korea Power Exchange			270,592				100.00	%			270,592				—				—				—				270,592
GS Donghae Electric Power Co., Ltd.			739,876				34.00	%			251,558				—				—				—				251,558
Hyundai Green Power Co., Ltd.			461,088				29.00	%			133,715				—				—				—				133,715
PT. Cirebon Electric Power			447,397				27.50	%			123,034				—				—				—				123,034
S-Power Co., Ltd.			240,713				49.00	%			117,949				—				(1,537	)			—				116,412
Dongducheon Dream Power Co., Ltd.			287,683				34.01	%			97,841				1,757				(3,419	)			(12,582	)			83,597
Xe-Pian Xe-Namnoy Power Co., Ltd.			288,799				25.00	%			72,200				305				(1,121	)			(289	)			71,095
Shin Pyeongtaek Power Co., Ltd.			203,755				40.00	%			81,502				3,559				(16,631	)			—				68,430
SPC Power Corporation			259,248				38.00	%			98,514				—				—				(23,549	)			74,965
Korea Electric Power Corporation Fund			41,669				98.09	%			40,873				—				—				3				40,876
YTN Co., Ltd.			184,759				21.43	%			39,591				—				—				—				39,591
Nepal Water & Energy Development Company Private Limited			71,801				61.05	%			43,838				971				—				—				44,809
PT. Wampu Electric Power			61,480				46.00	%			28,281				—				—				—				28,281
<Joint ventures>
Jamaica Public Service Company Limited			660,615				40.00	%			264,246				42,937				—				(30,134	)			277,049
KEPCO SPC Power Corporation			288,658				75.20	%			217,071				—				—				—				217,071
Amman Asia Electric Power Company			323,965				60.00	%			194,379				—				—				—				194,379
Datang Chifeng Renewable Power Co., Ltd.			502,744				40.00	%			201,097				—				—				—				201,097
Rabigh Electricity Company			454,473				40.00	%			181,789				—				(61,746	)			(805	)			119,238
Kelar S.A.			106,928				65.00	%			69,503				2,705				—				—				72,208
Solar Philippines Calatagan Corporation			58,026				38.00	%			22,050				29,695				—				—				51,745
RE Barren Ridge 1 Holdings LLC			11,545				50.00	%			5,772				—				—				—				5,772
RE Holiday Holdings LLC			141,806				50.00	%			70,903				—				—				—				70,903
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			109,995				40.00	%			43,998				—				—				—				43,998
Chun-cheon Energy Co., Ltd.			98,482				29.90	%			29,446				3				—				(248	)			29,201
Chile Solar JV SpA			67,925				50.00	%			33,962				—				—				—				33,962
PT. Tanjung Power Indonesia			97,702				35.00	%			34,196				—				—				—				34,196
Shuweihat Asia Power Investment B.V.			28,500				49.00	%			13,964				—				—				—				13,964
RE Pioneer Holdings LLC			104,143				50.00	%			52,071				—				—				—				52,071

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of September 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		September 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			3				188				6				185
Gunsan Bio Energy Co., Ltd.			212				3,504				1,090				3,292
Daehan Wind Power PSC			2,812				2,812				—				—
Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)			(16,585	)			22,146				12,890				38,731
Nghi Son 2 Power LLC			79,115				181,939				61,165				102,824
Samcheok Eco Materials Co., Ltd.			(293	)			495				(497	)			788
Naepo Green Energy Co., Ltd.			(9,281	)			—				9,281				9,281
Barakah One Company			(50,276	)			65,820				116,096				116,096
Pioneer Gas Power Limited			13,144				13,258				114				114
Incheon New Power Co., Ltd.			164				164				—				—
Ecollite Co., Ltd.			1,190				1,190				—				—
Green Energy Electricity Generation Co., Ltd.			503				503				—				—
Bigeum Resident Photovoltaic Power Co., Ltd.			62				62				—				—

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of September 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 and 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 and 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 and 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 and 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 and when Sprott Chile Solar I SpA intends to sell its shares.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of September 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.
Pyeongchang Wind Power Co., Ltd.		Principals and interests 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. Shares cannot be wholly or partially transferred without prior written consent of the stakeholders.
Daeryun Power Co., Ltd.		Principals and interests 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.
KNH Solar Co., Ltd.		Principals and interests on subordinated loans or dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without the consent of other shareholders.
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 the consent of the stakeholders.
Korea Power Engineering Service Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the board of directors.
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 the consent of the stakeholders.
Daejung Offshore Wind Power Co., Ltd.		Before the commencement of the operation, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Naepo Green Energy Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.
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 the consent of the stakeholders.
KPGE Inc.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
Indeck Niles Asset Management, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Indeck Niles Development, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
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 the consent of the stakeholders.
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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of September 30, 2020 are as follows, continued:

Company		Nature and extent of any significant restrictions
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. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Yeonggwang Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Jamaica Public Service Company Limited		Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained.
PT. Tanjung Power Indonesia		Dividends can only be paid when all conditions of the loan agreement are satisfied.
DE Energia SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied.
Daesan Green Energy Co., Ltd.		Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Taebaek Gadeoksan Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

18. Property, Plant and Equipment

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

In millions of won						September 30, 2020
						Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W					13,894,065				(23,474	)			—				—				13,870,591
Buildings							21,408,962				(58,522	)			(8,938,211	)			(4,967	)			12,407,262
Structures							72,471,943				(183,154	)			(27,305,236	)			(9,628	)			44,973,925
Machinery							91,748,549				(148,566	)			(42,555,678	)			(460,820	)			48,583,485
Ships							2,482				—				(2,197	)			—				285
Vehicles							320,140				(996	)			(253,100	)			(116	)			65,928
Equipment							1,818,013				(254	)			(1,457,579	)			(42	)			360,138
Tools							1,130,503				(213	)			(986,212	)			(39	)			144,039
Construction-in-progress							32,511,482				(73,250	)			—				(157,530	)			32,280,702
Right-of-use assets							7,881,211				—				(3,236,879	)			—				4,644,332
Asset retirement costs							11,682,537				—				(4,576,826	)			(146,423	)			6,959,288
Others							13,328,566				—				(10,988,986	)			—				2,339,580
		W					268,198,453				(488,429	)			(100,300,904	)			(779,565	)			166,629,555

In millions of won						December 31, 2019
						Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W					13,848,063				(21,817	)			—				—				13,826,246
Buildings							20,756,351				(61,920	)			(8,305,683	)			(4,962	)			12,383,786
Structures							70,900,343				(186,554	)			(25,711,840	)			(9,633	)			44,992,316
Machinery							89,224,339				(158,907	)			(38,865,392	)			(451,647	)			49,748,393
Ships							3,104				—				(2,903	)			—				201
Vehicles							309,829				(2,275	)			(239,128	)			(116	)			68,310
Equipment							1,716,210				(241	)			(1,342,053	)			(42	)			373,874
Tools							1,098,127				(403	)			(934,023	)			(40	)			163,661
Construction-in-progress							28,584,806				(61,211	)			—				(165,336	)			28,358,259
Right-of-use assets							7,574,010				—				(2,790,437	)			—				4,783,573
Asset retirement costs							11,690,188				—				(4,169,238	)			(146,423	)			7,374,527
Others							12,955,782				—				(10,327,101	)			—				2,628,681
		W					258,661,152				(493,328	)			(92,687,798	)			(778,199	)			164,701,827

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

18. Property, Plant and Equipment, Continued

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

In millions of won						September 30, 2020
						Beginning balance				Acquisitions				Disposals				Depreciation				Impairment				Others				Ending balance
Land		W					13,848,063				1,685				(25,806	)			(28	)			—				70,151				13,894,065
(Government grants)							(21,817	)			—				2				—				—				(1,659	)			(23,474	)
Buildings							12,445,706				2,608				(13,283	)			(635,450	)			—				666,203				12,465,784
(Government grants)							(61,920	)			—				—				3,914				—				(516	)			(58,522	)
Structures							45,178,870				11,284				(250,552	)			(1,807,726	)			—				2,025,203				45,157,079
(Government grants)							(186,554	)			—				1,277				7,141				—				(5,018	)			(183,154	)
Machinery							49,907,300				459,305				(143,484	)			(4,088,943	)			(1,357	)			2,599,230				48,732,051
(Government grants)							(158,907	)			—				328				12,876				—				(2,863	)			(148,566	)
Ships							201				—				—				(77	)			—				161				285
Vehicles							70,585				3,660				(81	)			(24,686	)			—				17,446				66,924
(Government grants)							(2,275	)			—				—				1,554				—				(275	)			(996	)
Equipment							374,115				49,923				(279	)			(133,347	)			—				69,980				360,392
(Government grants)							(241	)			—				—				118				—				(131	)			(254	)
Tools							164,064				14,413				(15	)			(56,934	)			—				22,724				144,252
(Government grants)							(403	)			—				133				57				—				—				(213	)
Construction-in-progress							28,419,470				8,978,302				(487	)			—				—				(5,043,333	)			32,353,952
(Government grants)							(61,211	)			8,495				—				—				—				(20,534	)			(73,250	)
Right-of-use assets							4,783,573				280,567				(782	)			(448,878	)			—				29,852				4,644,332
Asset retirement costs							7,374,527				107				—				(612,688	)			—				197,342				6,959,288
Others							2,628,681				3,136				(6,444	)			(650,805	)			—				365,012				2,339,580
		W					164,701,827				9,813,485				(439,473	)			(8,433,902	)			(1,357	)			988,975				166,629,555

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for nine-month period ended September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

19. Investment Properties

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

In millions of won		September 30, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	201,678				—				—				201,678
Buildings			59,375				(29	)			(34,164	)			25,182
		W	261,053				(29	)			(34,164	)			226,860

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

In millions of won		September 30, 2020
		Beginning balance				Depreciation				Others				Ending balance
Land		W	129,897				—				71,781				201,678
Buildings			28,696				(1,095	)			(2,390	)			25,211
(Government grants)			(13	)			—				(16	)			(29	)
		W	158,580				(1,095	)			69,375				226,860

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

19. Investment Properties, Continued

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

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Rental income		W	3,162				6,733				2,341				7,420
Operating and maintenance expenses related to rental income			(360	)			(1,095	)			(380	)			(859	)
Operating and maintenance expenses not related to rental income			—				—				—				(3,812	)
		W	2,802				5,638				1,961				2,749

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

In millions of won		September 30, 2020								December 31, 2019
		Book value				Fair value				Book value				Fair value
Land		W	201,678				310,118				129,897				202,042
Buildings			25,182				44,629				28,683				38,046
		W	226,860				354,747				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 properties are held under freehold interests.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

20. Construction Contracts

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

In millions of won

September 30, 2020

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

2,735,141

1,205,191

(728,862

)

3,211,470

(*) For the nine-month period ended September 30, 2020, the increase in balance of contracts from new orders and foreign exchange impact is W1,448,230 million and the decrease in balance of contracts due to changes in scope of construction work is W243,039 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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won

September 30, 2020

Accumulated earned revenue

Accumulated costs

Accumulated profit

Advance received

Nuclear power plant construction in UAE and others

W

21,400,304

19,941,705

1,458,599

20,178

In millions of won

December 31, 2019

Accumulated earned revenue

Accumulated costs

Accumulated profit

Advance received

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

In millions of won

September 30, 2020

December 31, 2019

Contract assets (*1)

Contract liabilities (*2)

Contract assets (*1)

Contract liabilities (*2)

Nuclear power plant construction in UAE and others

W

93,414

3,706

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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 nine-month period ended September 30, 2020 are as follows:

In millions of won		September 30, 2020
		Effect from changes in accounting estimates																				Contract 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	—				6,593				4,183				2,410				29,542				40,246				—				—				—
Plant maintenance & engineering service			937				(11,946	)			(10,661	)			(1,285	)			(12,843	)			53,167				2,157				35,868				12,332
		W	937				(5,353	)			(6,478	)			1,125				16,699				93,413				2,157				35,868				12,332

21. Intangible Assets other than Goodwill

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

In millions of won		September 30, 2020
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	748,968				(158	)			(598,333	)			—				150,477
Licenses and franchises			3,398				—				(3,398	)			—				—
Copyrights, patents rights and other industrial rights			101,259				—				(47,472	)			(9,178	)			44,609
Mining rights			601,127				—				(33,298	)			(525,155	)			42,674
Development expenditures			945,385				(5,424	)			(852,496	)			(19	)			87,446
Intangible assets under development			74,705				(6,812	)			—				(12,844	)			55,049
Usage rights of donated assets and others			593,369				—				(403,955	)			—				189,414
Leasehold rights			27,843				—				(21,296	)			—				6,547
Greenhouse gas emissions rights			94,294				—				—				—				94,294
Others			577,666				(76	)			(133,953	)			(15,468	)			428,169
		W	3,768,014				(12,470	)			(2,094,201	)			(562,664	)			1,098,679

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

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

In millions of won		September 30, 2020
		Beginning balance				Acquisitions				Disposals				Amortization				Impairment				Others				Ending balance
Software		W	164,995				9,893				—				(54,246	)			—				29,993				150,635
(Government grants)			(235	)			—				—				77				—				—				(158	)
Copyrights, patents rights and other industrial rights			53,261				165				—				(6,348	)			—				(2,469	)			44,609
Mining rights			43,723				1,662				—				(3,669	)			—				958				42,674
Development expenditures			93,843				426				—				(23,407	)			—				22,008				92,870
(Government grants)			(1,492	)			—				—				1,071				—				(5,003	)			(5,424	)
Intangible assets under development			60,490				34,322				—				—				—				(32,951	)			61,861
(Government grants)			(11,029	)			—				—				—				—				4,217				(6,812	)
Usage rights of donated assets and others			193,161				—				—				(12,720	)			—				8,973				189,414
(Government grants)			—				—				—				—				—				—				—
Leasehold rights			5,318				—				—				(623	)			—				1,852				6,547
Greenhouse gas emissions rights			41,656				34,138				(9,271	)			—				—				27,771				94,294
Others			426,364				660				(45	)			(16,812	)			(3,505	)			21,583				428,245
(Government grants)			(79	)			—				—				3				—				—				(76	)
		W	1,069,976				81,266				(9,316	)			(116,674	)			(3,505	)			76,932				1,098,679

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

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

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

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

In millions of won and thousands of Australian dollars

September 30, 2020

Type

Description

Currency

Amount

Remaining useful lives

Software

ERP system and others

KRW

169

5 months ~ 7 months

Copyrights, patents rights and other industrial rights

Smart technology verification and standard design project conducting right

KRW

4,936

2 years

Contributions to ARP NRC DC

KRW

30,260

7 years and 3 months

Mining rights

Mining right of Bylong mine

AUD

—

— (*)

Development expenditures

Electricity sales information system

KRW

9,993

1 year and 5 months

Usage rights of donated assets and others

Sejong Haengbogdosi sharing charge

KRW

27,982

6 years and 2 months

Dangjin power plant load facility usage right

KRW

3,148

6 months

Right of use electricity and gas supply facility (Community district of Songdo 6,8)

KRW

10,280

9 years and 9 months

Others

Occupancy and use of public waters

KRW

88,388

16 years and 4 months

Greenhouse gas emissions rights

KRW

94,294

—

Business rights

KRW

167,644

29 years and 2 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

KRW

31,385

6 years and 11 months

Dangjin power plant load facility usage right

KRW

7,870

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 nine-month periods ended September 30, 2020 and 2019, the Group recognized research and development expenses of W467,190 million and W500,269 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

22. Trade and Other Payables

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Trade payables		W	1,724,995				—				2,859,721				—
Non-trade payables			1,495,161				2,505,577				1,952,659				2,446,714
Accrued expenses			1,062,250				79,222				1,028,869				2,033
Leasehold deposits received			3,270				3				2,571				709
Other deposits received			86,186				66,605				163,382				68,702
Lease liabilities			628,224				4,349,692				635,349				4,434,784
Dividends payable			4,189				—				6,851				—
Others (*)			—				11,278				—				12,818
		W	5,004,275				7,012,377				6,649,402				6,965,760

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

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

In millions of won		September 30, 2020				December 31, 2019
Current liabilities
Short-term borrowings		W	1,333,597				1,098,555
Current portion of long-term borrowings			148,047				217,579
Current portion of debt securities			7,884,539				7,545,485
Less: Current portion of discount on long-term borrowings			(977	)			(1,000	)
Less: Current portion of discount on debt securities			(5,203	)			(2,780	)
			9,360,003				8,857,839
Non-current liabilities
Long-term borrowings			3,521,001				3,411,052
Debt securities			57,569,725				55,716,183
Less: Discount on long-term borrowings			(16,754	)			(21,309	)
Less: Discount on debt securities			(154,259	)			(88,920	)
Add: Premium on debt securities			1,504				1,696
			60,921,217				59,018,702
		W	70,281,220				67,876,541

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

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

In millions of won
September 30, 2020
Type		Borrowings				Debt securities
Less than 1 year		W	1,481,644				7,884,539
1 ~ 5 years			2,337,240				29,918,440
Over 5 years			1,183,761				27,651,285
		W	5,002,645				65,454,264

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

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

In millions of won and thousands of foreign currencies

September 30, 2020

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

0.59 ~ 4.60

2020.10.06 ~2020.12.31

—

W

820,012

Electronic short-term bonds

KB Securities and others

0.84 ~ 0.91

2020.10.06 ~2020.12.08

—

320,000

Foreign short-term borrowings

Shinhan Bank and others

0.70 ~ 0.77

2020.10.08 ~2020.12.28

USD

100,320

117,725

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 125bp

2022.04.29

USD

60,000

70,410

Foreign short-term borrowings

BDO Unibank

3M BVAL + 0.5

2020.12.20

PHP

225,000

5,450

W

1,333,597

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 + 0.5

2020.12.20

PHP

225,000

5,130

Foreign short-term borrowings

Mizuho Bank

4.60

2020.06.30

USD

11,027

12,767

Electronic short-term bonds

Mirae asset daewoo and others

1.72 ~ 2.20

2020.01.10 ~2020.02.05

—

400,000

Local bank overdraft

Korea development Bank and others

1.98 ~ 2.75

2020.01.01 ~2020.04.16

—

373,219

W

1,098,555

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

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

In millions of won and thousands of foreign currencies
September 30, 2020
Type				Interest rate (%)				Maturity				Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others			0.50				2020~2044				—			W	3,208
		Facility			2.50~4.60				2021~2028				—				52,986
		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				—				11,439
		Facility			3yr KTB rate-1.25 Standard overdraft rate+1.50~2.45				2020~2035				—				34,253
IBK		PF Refinancing			CD+1.25				2030				—				9,119
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				—				3,264
		Facility			3yr KTB rate-2.25				2020~2024				—				1,659
		Project loans			—				2023				—				5,642
		Others			KTB rate-2.25				2024~2028				—				10,194
Shinhan Bank		Facility			CB rate+1.10				2028				—				17,158
		Others			3.95				2034				—				90,497
		Others			Standard overdraft rate+1.00				2034				—				90,497
Kookmin Bank		Facility			MOR+0.79 3M CD+1.79				2021~2031				—				34,059
Others		Facility			1.75~6.80				2026~2037				—				489,640
		Facility			CB rate+1.10~1.20 3M CD+1.60 Standard overdraft rate+1.50~2.45				2023~2037				—				82,030
		PF Refinancing			4.10				2030				—				27,833
		Others			3.90~7.90				2021~2039				—				153,118
																	2,344,273
Foreign long-term borrowings
Korea Energy Agency		Project loans			—				2021~2023			USD	8,744				10,261
Export-Import Bank of Korea and others		Direct loan and others			1M Libor+1.80~3.20				2036			USD	98,849				115,999
		Direct loan and others			3M Libor+2.75~3.70				2027			JOD	140,162				231,989
		PF Loan			6M Libor+1.70~2.50				2032			USD	111,225				130,523
		Others			3.88				2021			USD	289,022				339,167
POSCO and others		Shareholder’s loan			8.00				2023			USD	12,523				14,696
		Shareholder’s loan			8.00				2031			JOD	4,853				8,032
Samsung Life Insurance and others		Syndicated Loan			3.10				2032			JPY	4,682,816				52,076
Woori Bank and others		Syndicated Loan			JPY 6M Libor+2.00				2032			JPY	3,020,746				33,593
IFC and others		Others			6M Libor+5.00				2031			USD	231,177				271,286
Federal Financing Bank and others		PF Loan			2.39~13.00				2031~2038			USD	98,836				115,984
Others		Others			—				—			USD	997				1,169
																	1,324,775
																	3,669,048
Less: Discount on long-term borrowings																	(17,731	)
Less: Current portion of long-term borrowings																	(148,047	)
Add: Current portion of discount on long-term borrowings																	977
																W	3,504,247

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of September 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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

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

In millions of won
		Issue date				Maturity				Interest rate (%)				September 30, 2020				December 31, 2019
Electricity bonds			2011.05.06~2020.04.29				2020.10.20~2049.10.24				1.32~4.58			W	28,410,000				28,450,000
Corporate bonds (*)			2009.10.16~2020.09.08				2020.10.17~2050.08.27				1.01~6.00				25,793,577				24,463,577
															54,203,577				52,913,577
Less: Discount on local debt securities															(46,398	)			(42,274	)
Less: Current portion of local debt securities															(6,460,000	)			(6,340,000	)
Add: Current portion of discount on local debt securities															1,922				1,409
														W	47,699,101				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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
September 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	327,056
FY-97			1997.01.31~1997.08.04				2027.02.01~2027.08.01				6.75~7.00			USD	314,717				369,320
FY-04			2004.04.23				2034.04.23				5.13			USD	286,920				336,701
FY-11			2011.07.13				2021.07.13				4.75			USD	500,000				586,750
FY-12			2012.09.19				2022.09.19				3.00			USD	750,000				880,125
FY-14			2014.07.30				2029.07.30				3.57			USD	100,000				117,350
FY-15			2015.06.15				2025.06.15				3.25			USD	300,000				352,050
FY-16			2016.01.21				2021.07.21				2.50			USD	300,000				352,050
FY-17			2017.06.19~2017.07.25				2022.06.19~2027.07.25				2.63~3.13			USD	800,000				938,800
FY-17			2017.10.30				2037.10.30				1.70			EUR	40,000				54,777
FY-17			2017.11.16				2037.11.16				2.36			SEK	450,000				58,406
FY-18			2018.01.29~2018.07.25				2021.01.29~2023.07.25				3.00~3.88			USD	1,800,000				2,112,300
FY-18			2018.03.13				2028.03.13				3.35			HKD	1,650,000				249,843
FY-19			2019.01.22~2019.06.24				2022.01.22~2024.06.24				2.50~3.38			USD	800,000				938,800
FY-19			2019.02.27				2024.02.27				0.13			CHF	200,000				253,880
FY-19			2019.07.19				2024.07.19~2027.07.19				0.00~0.05			CHF	300,000				380,820
FY-19			2019.07.22				2022.07.22				2.38			USD	300,000				352,050
FY-19			2019.10.30				2024.10.30				3M BBSW+97bp			AUD	300,000				249,393
FY-19			2019.12.19				2037.12.31				3.30~5.70			USD	394,220				462,617
FY-20			2020.02.03				2025.02.23				2.13			USD	300,000				352,050
FY-20			2020.06.15				2025.06.15				1.13			USD	500,000				586,750
FY-20			2020.05.06				2025.05.06				1.75			USD	500,000				586,750
FY-20			2020.08.03				2026.02.03				1.00			USD	300,000				352,049
																			11,250,687
Less: Discount on foreign debt securities																			(113,064	)
Add: Premium on foreign debt securities																			1,504
Less: Current portion of foreign debt securities																			(1,424,539	)
Add: Current portion of discount on foreign debt securities																			3,281
																		W	9,717,869

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of September 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		2019.10.30		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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020				September 30, 2019
Beginning balance		W	67,876,541				61,034,627
Cash flow			2,259,823				4,077,920
Effect of exchange rate fluctuations			208,232				902,866
Others			(63,376	)			(2,549	)
Ending balance		W	70,281,220				66,012,864

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 W29,509 million as expense for the nine-month period ended September 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 W1,646 million as expense for the nine-month period ended September 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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 30, 2020
		Acquisition cost				Accumulated depreciation				Book value
Land		W	724,637				(86,400	)			638,237
Buildings			71,514				(32,000	)			39,514
Structures			29,110				(3,906	)			25,204
Machinery			1,308				(581	)			727
Ships			4,313,704				(746,546	)			3,567,158
Vehicles			27,245				(12,791	)			14,454
Others (*)			2,713,693				(2,354,655	)			359,038
		W	7,881,211				(3,236,879	)			4,644,332

(*) Includes power purchase agreements (“PPA”) with GS EPS and another LNG combined power supplier.

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.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

24. Lease, Continued

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

In millions of won		September 30, 2020
		Beginning balance				Increase				Depreciation				Decrease				Others				Ending balance
Land		W	644,074				4,503				(37,375	)			—				27,035				638,237
Buildings			34,577				37,826				(28,821	)			(759	)			(3,309	)			39,514
Structures			25,644				260				(700	)			—				—				25,204
Machinery			824				—				(97	)			—				—				727
Ships			3,688,289				199,950				(321,081	)			—				—				3,567,158
Vehicles			13,708				7,549				(5,739	)			(21	)			(1,043	)			14,454
Others			376,457				30,479				(55,065	)			(2	)			7,169				359,038
		W	4,783,573				280,567				(448,878	)			(782	)			29,852				4,644,332

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

In millions of won		September 30, 2020
Less than 1 year		W	674,010
1 ~ 5 years			2,316,830
More than 5 years			2,630,647
			5,621,487
Less: Discount			(643,571	)
Present value of lease payment		W	4,977,916
In millions of won		December 31, 2019
Less than 1 year		W	686,445
1 ~ 5 years			2,334,883
More than 5 years			2,735,681
			5,757,009
Less: Discount			(686,876	)
Present value of lease payment		W	5,070,133

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

24. Lease, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Current lease liabilities		W	628,224				635,349
Non-current lease liabilities			4,349,692				4,434,784
		W	4,977,916				5,070,133

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

In millions of won		September 30, 2020
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	5,070,133				268,087				(552,527	)			85,227				106,996				4,977,916

(*) 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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Depreciation of right-of-use assets		W	149,598				448,878				145,607				419,178
Interest expenses of lease liabilities			28,515				85,227				21,994				64,199
Lease expenses for short-term leases			14,959				29,509				6,183				13,607
Lease expenses for leases of low-value assets			449				1,646				352				899
Variable lease payments			9,786				27,074				(4,362	)			(13,004	)
		W	203,307				592,334				169,774				484,879

(8) For the nine-month periods ended September 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 W610,757 million and W471,582 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 years lease term, and an 89.1MW level Fujeij wind power plant over a 20 years 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 2 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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won

September 30, 2020

September 30, 2019

Three-month period ended

Nine-month period ended

Three-month period ended

Nine-month period ended

Finance income on the net investment in the lease

W

28,002

89,691

24,857

66,039

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

In millions of won		September 30, 2020				December 31, 2019
Less than 1 year		W	170,017				173,093
1 ~ 2 years			155,536				150,895
2 ~ 3 years			153,805				150,596
3 ~ 4 years			150,173				149,364
4 ~ 5 years			146,789				145,964
More than 5 years			1,743,429				1,740,652
			2,519,749				2,510,564
Less: Unearned finance income			(1,330,853	)			(1,331,723	)
Net investment in the lease (*)		W	1,188,896				1,178,841

(*) Net investment in the lease includes present value of unguaranteed residual value amounting to W17,300 million as of September 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 1.68% up to 16.81% per year as of September 30, 2020. (prior year : 3.50%~16.48%)

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	862				1,133
Bad debt expense			—				—
Reversal of allowance for doubtful accounts			(147	)			(271	)
Ending balance		W	715				862

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

25. Employment Benefits

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

In millions of won		September 30, 2020				December 31, 2019
Net defined benefit asset		W	(230	)			(1,047	)
Net defined benefit obligations			2,471,722				1,925,134
Other long-term employee benefit obligations			4,247				4,720
		W	2,475,739				1,928,807

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

		September 30, 2020		December 31, 2019
Discount rate		1.62%~1.85%		1.92%~2.05%
Weighted average future salary and benefit levels		4.24%		4.39%
Weighted average duration		13.21 years		13.23 years

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

25. Employment Benefits, Continued

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

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Current service cost		W	121,972				357,070				105,704				307,849
Interest cost			20,793				60,627				21,277				61,576
Expected return on plan assets			(10,550	)			(31,288	)			(10,305	)			(30,724	)
Past service cost			—				(2,027	)			—				—
Gain from settlement			—				—				(132	)			(609	)
		W	132,215				384,382				116,544				338,092

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

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Cost of sales		W	96,917				280,593				86,655				251,495
Selling and administrative expenses			21,789				63,483				15,038				43,260
Others (Construction-in-progress and others)			13,509				40,306				14,851				43,337
		W	132,215				384,382				116,544				338,092

In addition, for the nine-month periods ended September 30, 2020 and 2019, employee benefit obligations expenses of             W 43,285 million and W54,583 million, respectively, are recognized as cost of sales; and W5,973 million and W11,167 million, respectively, are recognized as selling and administrative expenses; and W8,452 million and W10,617 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

25. Employment Benefits, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Present value of defined benefit obligation from funded plans		W	4,603,891				4,035,400
Fair value of plan assets			(2,132,399	)			(2,111,313	)
Net liabilities incurred from defined benefit plans		W	2,471,492				1,924,087

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	4,035,400				3,414,116
Current service cost			357,070				440,300
Interest cost (*)			60,627				83,619
Remeasurement component			252,195				(93,736	)
Past service cost			(2,027	)			301,442
Gain from settlement			—				(2,018	)
Actual payments			(99,426	)			(108,057	)
Others			52				(266	)
Ending balance		W	4,603,891				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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	2,111,313				1,775,331
Expected return			31,288				41,597
Remeasurement component			2,843				(11,186	)
Contributions by the employers			31,145				348,386
Actual payments			(44,190	)			(42,815	)
Ending balance		W	2,132,399				2,111,313

In addition, losses on accumulated remeasurement component amounted to W266,224 million and W117,779 million have been recognized as other comprehensive income or loss for the nine-month period ended September 30, 2020 and for the year ended December 31, 2019, respectively.

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September 30, 2020 and 2019 (Unaudited)

25. Employment Benefits, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Equity instruments		W	374,546				189,235
Debt instruments			460,773				648,265
Bank deposit			205,940				199,743
Others			1,091,140				1,074,070
		W	2,132,399				2,111,313

For the nine-month period ended September 30, 2020 and for the year ended December 31, 2019, actual returns on plan assets amounted to W34,131 million and W30,411 million, respectively.

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

In millions of won		September 30, 2020				December 31, 2019
Actuarial gain (loss) from changes in financial assumptions		W	120,542				(2,916	)
Experience adjustments, etc.			131,653				(90,820	)
Expected return			(2,843	)			11,186
		W	249,352				(82,550	)

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

26. Provisions

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Employment benefits
Provisions for employment benefits		W	985,979				—				975,619				—
Litigation
Litigation provisions			34,301				64,215				39,177				49,221
Decommissioning cost
Nuclear plants			—				16,256,233				—				15,994,039
Spent fuel			516,041				834,624				401,741				953,539
Radioactive waste			81,227				1,819,137				77,053				1,811,029
PCBs			—				146,310				—				152,981
Other recovery provisions			—				25,895				—				10,773
Others
Power plant regional support program			158,551				—				140,133				—
Transmission regional support program			97,562				—				139,785				—
Provisions for financial guarantee			—				75,641				111				81,246
Provisions for RPS			13,653				—				2,889				—
Provisions for greenhouse gas emissions obligations			—				—				682,459				—
Others			158,250				163,962				145,754				13,220
		W	2,045,564				19,386,017				2,604,721				19,066,048

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September 30, 2020 and 2019 (Unaudited)

26. Provisions, Continued

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

In millions of won		September 30, 2020
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	975,619				816,851				(806,486	)			—				(5	)			985,979
Litigation
Litigation provisions			88,398				38,456				(7,428	)			(20,919	)			9				98,516
Decommissioning cost
Nuclear plants			15,994,039				292,844				(30,650	)			—				—				16,256,233
Spent fuel			1,355,280				302,413				(307,028	)			—				—				1,350,665
Radioactive waste			1,888,082				49,496				(37,214	)			—				—				1,900,364
PCBs			152,981				2,263				(8,934	)			—				—				146,310
Other recovery provisions			10,773				14,881				—				—				241				25,895
Others
Power plant regional support program			140,133				39,445				(28,656	)			—				7,629				158,551
Transmission regional support program			139,785				107,014				(149,237	)			—				—				97,562
Provisions for tax			—				—				(25	)			25				—				—
Provisions for financial guarantee			81,357				10,507				—				(16,223	)			—				75,641
Provisions for RPS			2,889				13,653				—				(2,889	)			—				13,653
Provisions for greenhouse gas emissions obligations			682,459				95,383				(633,482	)			(119,408	)			(24,952	)			—
Others			158,974				206,495				(43,077	)			(2,346	)			2,166				322,212
		W	21,670,769				1,989,701				(2,052,217	)			(161,760	)			(14,912	)			21,431,581
In millions of won		December 31, 2019
		Beginning balance				Increase in provision				Payments				Reversals				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	976,347				900,033				(879,980	)			(20,781	)			—				975,619
Litigation
Litigation provisions			77,793				59,366				(17,236	)			(31,525	)			—				88,398
Decommissioning cost
Nuclear plants			13,388,134				2,639,562				(33,657	)			—				—				15,994,039
Spent fuel			1,291,354				440,029				(376,103	)			—				—				1,355,280
Radioactive waste			1,685,008				209,551				(6,787	)			—				310				1,888,082
PCBs			147,668				14,251				(8,938	)			—				—				152,981
Other recovery provisions			10,477				2,020				(2,033	)			—				309				10,773
Others
Power plant regional support program			137,668				41,341				(48,390	)			—				9,514				140,133
Transmission regional support program			151,698				169,616				(181,529	)			—				—				139,785
Provisions for tax			6,845				—				—				(6,847	)			2				—
Provisions for financial guarantee			15,586				83,910				(16,589	)			(1,551	)			1				81,357
Provisions for RPS			93,919				222,119				(313,149	)			—				—				2,889
Provisions for greenhouse gas emissions obligations			136,187				724,002				(152,463	)			(25,267	)			—				682,459
Others			61,862				113,751				(16,217	)			(833	)			411				158,974
		W	18,180,546				5,619,551				(2,053,071	)			(86,804	)			10,547				21,670,769

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

27. Government Grants

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

In millions of won		September 30, 2020				December 31, 2019
Land		W	(23,474	)			(21,817	)
Buildings			(58,522	)			(61,920	)
Structures			(183,154	)			(186,554	)
Machinery			(148,566	)			(158,907	)
Vehicles			(996	)			(2,275	)
Equipment			(254	)			(241	)
Tools			(213	)			(403	)
Construction-in-progress			(73,250	)			(61,211	)
Investment properties			(29	)			(13	)
Software			(158	)			(235	)
Development expenditures			(5,424	)			(1,492	)
Intangible assets under development			(6,812	)			(11,029	)
Other intangible assets			(76	)			(79	)
		W	(500,928	)			(506,176	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

27. Government Grants, Continued

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

In millions of won		September 30, 2020
		Beginning balance				Receipt				Acquisitions				Offset items with depreciation expense and others				Disposals				Others				Ending balance
Cash		W	—				(23,718	)			—				—				—				23,718				—
Land			(21,817	)			—				—				—				2				(1,659	)			(23,474	)
Buildings			(61,920	)			—				—				3,914				—				(516	)			(58,522	)
Structures			(186,554	)			—				—				7,141				1,277				(5,018	)			(183,154	)
Machinery			(158,907	)			—				—				12,876				328				(2,863	)			(148,566	)
Vehicles			(2,275	)			—				—				1,554				—				(275	)			(996	)
Equipment			(241	)			—				—				118				—				(131	)			(254	)
Tools			(403	)			—				—				57				133				—				(213	)
Construction-in-progress			(61,211	)			—				8,495				—				—				(20,534	)			(73,250	)
Investment properties			(13	)			—				—				—				—				(16	)			(29	)
Software			(235	)			—				—				77				—				—				(158	)
Development expenditures			(1,492	)			—				—				1,071				—				(5,003	)			(5,424	)
Intangible assets under development			(11,029	)			—				—				—				—				4,217				(6,812	)
Other intangible assets			(79	)			—				—				3				—				—				(76	)
		W	(506,176	)			(23,718	)			8,495				26,811				1,740				(8,080	)			(500,928	)

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

28. Deferred Revenue

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	9,201,538				8,606,563
Increase during the period			865,059				1,199,783
Recognized as revenue during the period			(466,345	)			(604,808	)
Ending balance		W	9,600,252				9,201,538

29. Non-financial Liabilities

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

In millions of won		September 30, 2020								December 31, 2019
		Current				Non-current				Current				Non-current
Advance received		W	3,717,412				336,797				3,825,240				192,863
Unearned revenue			31,782				6,458				30,988				6,589
Deferred revenue			615,277				8,984,975				590,928				8,610,610
Withholdings			473,649				9,667				160,977				10,901
Others			1,645,393				75,512				1,080,220				13,489
		W	6,483,513				9,413,409				5,688,353				8,834,452

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

30. Contributed Capital

(1) Details of share capital as of September 30, 2020 and December 31, 2019 are as follows:

In millions of won except share information

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

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

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

31. Retained Earnings and Dividends Paid

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

In millions of won		September 30, 2020				December 31, 2019
Legal reserve (*)		W	1,604,910				1,604,910
Voluntary reserves			32,179,065				34,785,425
Retained earnings before appropriations			16,679,682				12,811,798
Retained earnings		W	50,463,657				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 share capital. 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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 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			26,361,616				28,967,976
Reserve for equalizing dividends			210,000				210,000
		W	32,179,065				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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	49,202,133				51,519,119
Profit (loss) for the period attributed to owner of the controlling company			1,425,532				(2,345,517	)
Changes in equity method retained earnings			(3,957	)			(6,789	)
Remeasurement of defined benefit liability, net of tax			(159,847	)			36,160
Transfer of gain (loss) on valuation of financial assets at fair value through other comprehensive income			—				(840	)
Transactions between consolidated entities			(204	)			—
Ending balance		W	50,463,657				49,202,133

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

In millions of won except for share information

September 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 except for share information

December 31, 2019

Number of shares issued

Number of treasury stocks

Number of shares eligible for dividends

Dividends paid per share (in won)

Dividends paid

Common shares

641,964,077

—

641,964,077

W —

—

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

31. Retained Earnings and Dividends Paid, Continued

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	(2,820	)			3,969
Changes			(3,957	)			(6,789	)
Ending balance		W	(6,777	)			(2,820	)

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

In millions of won		September 30, 2020				December 31, 2019
Beginning balance		W	(117,779	)			(219,381	)
Changes			(241,396	)			76,395
Income tax effect			81,549				(40,235	)
Transfer to reserve for business expansion			11,402				65,442
Ending balance		W	(266,224	)			(117,779	)

32. Hybrid Bonds

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

In millions of won
Issuer		Hybrid bond				Issued date				Maturity				Yield (%)				September 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 interests) in the Group’s consolidated financial statements.

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September 30, 2020 and 2019 (Unaudited)

33. Other Components of Equity

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

In millions of won		September 30, 2020				December 31, 2019
Other capital surplus		W	1,227,328				1,226,364
Accumulated other comprehensive loss			(303,764	)			(280,730	)
Other equity			13,294,973				13,294,973
		W	14,218,537				14,240,607

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

In millions of won		September 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			—				1,869				1,869				—				—				—
Others			—				(905	)			(905	)			—				(8,461	)			(8,461	)
Ending balance		W	387,524				839,804				1,227,328				387,524				838,840				1,226,364

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September 30, 2020 and 2019 (Unaudited)

33. Other Components of Equity, Continued

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

In millions of won		September 30, 2020
		Financial asset at fair value through other comprehensive income valuation reserve				Shares in other comprehensive income (loss) of investments in associates and joint ventures				Reserve for overseas operations translation				Reserve for gain (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			(30,109	)			—				—				—				(30,109	)
Shares in other comprehensive loss of associates and joint ventures, net of tax			—				(29,925	)			—				—				(29,925	)
Foreign currency translation of foreign operations, net of tax			—				—				(11,638	)			—				(11,638	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				48,638				48,638
Ending balance		W	(122,708)				112,971				(306,536	)			12,509				(303,764	)

In millions of won		December 31, 2019
		Financial asset at fair value through other comprehensive income valuation reserve				Shares in other comprehensive income of investments in associates and joint ventures				Reserve for overseas operations translation				Reserve for gain (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 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

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September 30, 2020 and 2019 (Unaudited)

34. Sales

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

In millions of won		September 30, 2020
		Domestic								Overseas								Total
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
[Type of goods and services]
Sales of goods		W	15,118,574				42,137,256				77,860				231,676				15,196,434				42,368,932
Electricity			15,019,457				41,619,424				—				—				15,019,457				41,619,424
Heat supply			7,724				144,399				—				—				7,724				144,399
Others			91,393				373,433				77,860				231,676				169,253				605,109
Sales related to rendering of services			52,502				149,306				46,808				163,592				99,310				312,898
Sales related to construction services			46,912				117,653				210,572				611,209				257,484				728,862
Revenue related to transfer of assets from customers			158,149				466,345				—				—				158,149				466,345
		W	15,376,137				42,870,560				335,240				1,006,477				15,711,377				43,877,037
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	15,118,574				42,137,256				77,860				231,676				15,196,434				42,368,932
Performance obligations satisfied over time			257,563				733,304				257,380				774,801				514,943				1,508,105
		W	15,376,137				42,870,560				335,240				1,006,477				15,711,377				43,877,037

In millions of won		September 30, 2019
		Domestic								Overseas								Total
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
[Type of goods and services]
Sales of goods		W	15,333,341				42,496,430				70,287				213,078				15,403,628				42,709,508
Electricity			15,213,418				42,035,565				—				—				15,213,418				42,035,565
Heat supply			5,994				160,968				—				—				5,994				160,968
Others			113,929				299,897				70,287				213,078				184,216				512,975
Sales related to rendering of services			46,611				137,026				44,563				134,565				91,174				271,591
Sales related to construction services			28,080				77,108				240,329				735,016				268,409				812,124
Revenue related to transfer of assets from customers			149,074				438,440				—				—				149,074				438,440
		W	15,557,106				43,149,004				355,179				1,082,659				15,912,285				44,231,663
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	15,333,341				42,496,430				70,287				213,078				15,403,628				42,709,508
Performance obligations satisfied over time			223,765				652,574				284,892				869,581				508,657				1,522,155
		W	15,557,106				43,149,004				355,179				1,082,659				15,912,285				44,231,663

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September 30, 2020 and 2019 (Unaudited)

35. Selling and Administrative Expenses

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

In millions of won		September 30, 2020								September 30, 2019
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Salaries		W	286,503				801,281				190,717				582,369
Retirement benefit expense			23,915				69,456				17,626				54,427
Welfare and benefit expense			33,254				99,389				28,563				87,631
Insurance expense			2,499				8,821				3,156				9,779
Depreciation			57,253				164,174				53,943				169,986
Amortization of intangible assets			19,055				54,752				16,377				56,775
Bad debt expense (reversal)			(3,891	)			15,074				(31,141	)			(15,417	)
Commission			99,888				299,620				153,831				495,682
Advertising expense			6,580				18,942				9,913				23,690
Training expense			1,088				3,136				1,746				5,027
Vehicle maintenance expense			2,748				6,919				2,548				7,005
Publishing expense			541				2,065				628				2,099
Business promotion expense			935				2,705				690				2,183
Rent expense			14,321				27,542				17,566				31,725
Telecommunication expense			2,244				6,682				2,097				6,454
Transportation expense			148				808				206				659
Taxes and dues			1,013				58,344				6,032				47,108
Expendable supplies expense			1,719				5,616				1,313				4,520
Water, light and heating expense			2,961				9,892				3,475				10,043
Repairs and maintenance expense			10,851				41,265				14,940				44,057
Ordinary development expense			47,298				123,442				58,353				136,936
Travel expense			2,803				8,790				3,408				11,954
Clothing expense			3,259				6,540				1,061				3,197
Survey and analysis expense			194				573				207				636
Membership fee			139				1,115				119				865
Others			30,229				89,964				46,373				108,009
		W	647,547				1,926,907				603,747				1,887,399

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September 30, 2020 and 2019 (Unaudited)

36. Other Income and Expenses

(1) Other income for the three and nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine- month period ended				Three-month period ended				Nine- month period ended
Reversal of other provisions		W	2,269				22,161				1,331				3,517
Reversal of other allowance for doubtful accounts			6,685				2,465				—				—
Gains on government grants			52				181				62				201
Gains on assets contributed			693				23,177				20				2,791
Gains on liabilities exempted			27				1,240				119				838
Compensation and reparations revenue			41,398				81,795				80,860				119,524
Revenue from research contracts			1,456				2,138				1,952				4,529
Rental income			49,431				145,884				47,150				141,201
Others			15,418				29,235				15,026				45,076
		W	117,429				308,276				146,520				317,677

(2) Other expenses for the three and nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine- month period ended				Three-month period ended				Nine- month period ended
Compensation and reparations expenses		W	3,095				11,872				19				96
Accretion expenses of other provisions			590				704				2,601				2,984
Depreciation expenses on investment properties			360				1,095				380				4,671
Depreciation expenses on idle assets			1,640				4,916				1,634				4,906
Other bad debt expense			—				502				1,585				7,281
Donations			211,258				300,453				14,239				41,802
Others			4,949				12,325				7,108				16,964
		W	221,892				331,867				27,566				78,704

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September 30, 2020 and 2019 (Unaudited)

37. Other Gains (Losses)

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

In millions of won		September 30, 2020								September 30, 2019
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Other gains
Gains on disposal of property, plant and equipment		W	25,570				81,733				6,578				35,765
Gains on disposal of intangible assets			—				1,556				109				206
Reversal of impairment losses on property, plant and equipment			1,068				7,805				—				—
Gains on foreign currency translation			—				6,862				42,953				11,108
Gains on foreign currency transactions			11,785				34,937				13,129				30,295
Gains on insurance proceeds			3,124				8,789				4,199				4,212
Others			50,573				224,527				46,870				157,106
Other losses
Losses on disposal of property, plant and equipment			(36,251	)			(55,504	)			(16,540	)			(43,287	)
Losses on disposal of intangible assets			—				—				(28	)			(28	)
Impairment loss on property, plant and equipment			—				(9,162	)			(7,467	)			(37,152	)
Impairment loss on intangible assets			—				(3,505	)			(451,823	)			(513,519	)
Losses on foreign currency translation			(7,785	)			(9,436	)			—				(8,669	)
Losses on foreign currency transactions			(5,965	)			(37,591	)			(14,609	)			(43,524	)
Others			(37,785	)			(95,169	)			(37,510	)			(75,328	)
		W	4,334				155,842				(414,139	)			(482,815	)

38. Finance Income

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

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Interest income		W	58,620				189,196				71,419				195,998
Dividends income			564				4,649				2,262				6,002
Gains on disposal of financial assets			239				4,065				1,619				2,584
Gains on valuation of financial assets at fair value through profit or loss			881				10,872				770				9,161
Gains on valuation of derivatives			—				254,215				298,016				644,129
Gains on transaction of derivatives			27,569				134,835				55,985				121,554
Gains on foreign currency translation			290,624				139,045				68,458				154,795
Gains on foreign currency transactions			6,084				14,152				2,773				16,605
Other finance income			365				651				—				—
		W	384,946				751,680				501,302				1,150,828

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September 30, 2020 and 2019 (Unaudited)

39. Finance Expenses

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

In millions of won		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Interest expense		W	483,252				1,504,125				521,316				1,537,845
Losses on sale of financial assets			43				408				229				490
Losses on valuation of financial assets at fair value through profit or loss			—				975				1,146				1,442
Losses on valuation of derivatives			181,578				65,565				1,356				36,286
Losses on transaction of derivatives			25,318				49,773				7,760				24,567
Losses on foreign currency translation			—				268,622				561,345				996,123
Losses on foreign currency transactions			11,093				73,642				27,928				36,676
Losses on repayment of financial liabilities			5				35				—				—
Others			853				2,282				1,237				3,856
		W	702,142				1,965,427				1,122,317				2,637,285

Capitalization rates for the nine-month periods ended September 30, 2020 and 2019 are 2.16%~4.65% and 2.34%~3.74%, 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 34.47%, and for the previous period, the Group did not calculate the average effective tax rate, because income tax benefit occurred for the period.

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September 30, 2020 and 2019 (Unaudited)

41. Assets Held-for-Sale

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

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

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

In millions of won		September 30, 2020
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				10,592,027				10,592,027
Salaries			801,281				3,028,123				3,829,404
Retirement benefit expense			69,456				323,878				393,334
Welfare and benefit expense			99,389				352,548				451,937
Insurance expense			8,821				73,383				82,204
Depreciation			164,174				8,264,813				8,428,987
Amortization of intangible assets			54,752				61,921				116,673
Bad debt expense			15,074				—				15,074
Commission			299,620				209,648				509,268
Advertising expense			18,942				4,702				23,644
Training expense			3,136				7,148				10,284
Vehicle maintenance expense			6,919				5,334				12,253
Publishing expense			2,065				2,274				4,339
Business promotion expense			2,705				2,579				5,284
Rent expense			27,542				140,016				167,558
Telecommunication expense			6,682				7,488				14,170
Transportation expense			808				5,307				6,115
Taxes and dues			58,344				373,246				431,590
Expendable supplies expense			5,616				30,344				35,960
Water, light and heating expense			9,892				24,080				33,972
Repairs and maintenance expense			41,265				1,628,400				1,669,665
Ordinary development expense			123,442				343,748				467,190
Travel expense			8,790				45,785				54,575
Clothing expense			6,540				4,142				10,682
Survey and analysis expense			573				2,420				2,993
Membership fee			1,115				7,159				8,274
Power purchase			—				12,173,597				12,173,597
Others			89,964				1,083,451				1,173,415
		W	1,926,907				38,797,561				40,724,468

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September 30, 2020 and 2019 (Unaudited)

42. Expenses Classified by Nature, Continued

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

In millions of won		September 30, 2019
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				12,898,067				12,898,067
Salaries			582,369				2,778,388				3,360,757
Retirement benefit expense			54,427				306,078				360,505
Welfare and benefit expense			87,631				315,066				402,697
Insurance expense			9,779				69,076				78,855
Depreciation			169,986				7,814,325				7,984,311
Amortization of intangible assets			56,775				58,839				115,614
Bad debt expense			(15,417	)			—				(15,417	)
Commission			495,682				286,471				782,153
Advertising expense			23,690				6,302				29,992
Training expense			5,027				10,562				15,589
Vehicle maintenance expense			7,005				5,550				12,555
Publishing expense			2,099				2,115				4,214
Business promotion expense			2,183				2,776				4,959
Rent expense			31,725				138,558				170,283
Telecommunication expense			6,454				9,570				16,024
Transportation expense			659				3,109				3,768
Taxes and dues			47,108				371,669				418,777
Expendable supplies expense			4,520				21,490				26,010
Water, light and heating expense			10,043				25,630				35,673
Repairs and maintenance expense			44,057				1,530,595				1,574,652
Ordinary development expense			136,936				363,333				500,269
Travel expense			11,954				50,606				62,560
Clothing expense			3,197				4,013				7,210
Survey and analysis expense			636				2,716				3,352
Membership fee			865				11,731				12,596
Power purchase			—				13,766,681				13,766,681
Others			108,009				1,180,222				1,288,231
		W	1,887,399				42,033,538				43,920,937

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September 30, 2020 and 2019 (Unaudited)

43. Earnings (Loss) Per Share

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

In won

September 30, 2020

September 30, 2019

Type

Three- month period ended

Nine- month period ended

Three- month period ended

Nine- month period ended

Basic earnings (loss) per share

W

1,926

2,221

347

(1,577

)

(2) 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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won except number of shares		September 30, 2020								September 30, 2019
Type		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Profit (loss) attributable to controlling interest		W	1,236,341				1,425,532				222,789				(1,012,555	)
Profit (loss) used in the calculation of total basic earnings (loss) per share			1,236,341				1,425,532				222,789				(1,012,555	)
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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In number of shares		September 30, 2020								September 30, 2019
Type		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- 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 nine-month periods ended September 30, 2020 and 2019.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 shareholders 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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 30, 2020				December 31, 2019
Total borrowings and debt securities		W	70,281,220				67,876,541
Cash and cash equivalents			1,576,098				1,810,129
Net borrowings and debt securities			68,705,122				66,066,412
Total equity		W	70,135,610				68,889,649
Debt to equity ratio			97.96	%			95.90	%

(2) Financial risk management

The Group is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), credit risk. The Group monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. The Group uses derivative financial instruments to hedge certain risk exposures. The Group’s overall financial risk management strategy remains consistent with the prior year.

(i) Credit risk

Credit risk is the risk of finance loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales activities, securities and derivatives. In addition, credit risk exposure may exist within financial guarantees and unused line of credits. As these financial institutions the Group makes transactions with are reputable financial institutions, the credit risk from them are considered limited. The Group decides credit transaction limits based on evaluation of client’s credit, through information obtained from the credit bureau and disclosed financial position at committing contracts.

① Credit risk management

Electricity sales, the main operations of the Group are the necessity for daily life and industrial activities of Korean nationals, and have importance as one of the national key industries. The Group dominates the domestic market supplying electricity to customers. The Group is not exposed to significant credit risk as customers of the Group are diverse and are from various industries and areas. The Group uses publicly available information and its own internal data related to trade receivables, to rate its major customers and to measure the credit risk that a counterparty will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.

② Impairment and allowance account

In accordance with the Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 30, 2020				December 31, 2019
Cash and cash equivalents		W	1,576,098				1,810,129
Financial assets at fair value through profit or loss			3,096,420				747,261
Derivative assets (trading)			342,327				165,204
Financial assets at amortized cost			14,443				13,609
Loans			880,363				738,707
Long-term/short-term financial instruments			2,182,563				1,960,227
Derivative assets (applying hedge accounting)			217,803				145,829
Trade and other receivables			9,209,016				9,703,749
Financial guarantee contracts (*)			3,148,289				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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won				September 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	521,433				(453,873	)			442,748				(386,147	)
Discount rate		Increase (decrease) in defined benefit obligation			(443,359	)			523,325				(402,099	)			475,765

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the nine-month periods ended September 30, 2020 and 2019 are W15,690 million and W13,288 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Provisions

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

Type		Accounts		September 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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won				September 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	(418	)			420				(527	)			530
		Nuclear plants			(310,187	)			319,525				(316,184	)			325,828
		Spent fuel			(51,430	)			53,438				(51,607	)			53,621
Inflation rate		PCBs			423				(422	)			534				(532	)
		Nuclear plants			352,370				(342,290	)			346,082				(336,182	)
		Spent fuel			54,210				(52,245	)			54,396				(52,424	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In thousands of foreign currencies		Assets								Liabilities
Type		September 30, 2020				December 31, 2019				September 30, 2020				December 31, 2019
AED			55,855				57,403				35,013				40,061
AUD			4,468				143				298,999				1,036,785
BDT			95,874				85,547				—				635
BWP			920				1,437				—				—
EGP			—				—				918				—
CAD			416				86				1,882				3,112
CHF			—				—				500,667				500,753
CNY			—				—				—				26,140
CZK			—				—				4,389				243
EUR			197				208				44,040				111,199
GBP			—				—				295				191
HKD			—				—				1,651,501				1,648,815
IDR			323,046				376,136				—				219,801
INR			1,204,009				1,244,170				147,655				210,232
JOD			1,534				1,516				11				147
JPY			377,803				109,970				1,150,233				314,402
KZT			319				319				—				—
MGA			5,972,913				3,858,201				—				133,403
MMK			8,013				29,651				—				—
PHP			186,037				175,210				23,751				130,073
PKR			403,800				354,361				—				4,366
SAR			2,202				2,653				—				480
SEK			—				—				449,114				449,072
USD			1,508,033				1,227,054				12,293,391				9,963,928
UYU			172,374				58,781				753				8,213
VND			859,988				418,998				5,631				1,375
ZAR			221				450				—				6

A sensitivity analysis on the Group’s profit before income tax and equity assuming a 10% increase and decrease in currency exchange rates as of September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 30, 2020								December 31, 2019
Type		10% Increase				10% Decrease				10% Increase				10% Decrease
Increase (decrease) of profit before income tax		W	(1,387,456	)			1,387,456				(1,197,530	)			1,197,530
Increase (decrease) of equity (*)			(1,387,456	)			1,387,456				(1,197,530	)			1,197,530

(*) The effect on the 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 September 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won
Type		September 30, 2020				December 31, 2019
Short-term borrowings		W	75,860				—
Long-term borrowings			2,225,623				2,273,579
Debt securities			249,393				243,102
		W	2,550,876				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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 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	(19,132	)			19,132				(25,167	)			25,167
Increase (decrease) of equity (*)			(19,132	)			19,132				(25,167	)			25,167

(*) The effect on the 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 profit before income tax and equity assuming a 1% increase and decrease in price of electricity for the nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020								September 30, 2019
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	416,194				(416,194	)			420,356				(420,356	)
Increase (decrease) of equity (*)			416,194				(416,194	)			420,356				(420,356	)

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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		September 30, 2020
Type		Less than 1 year				1 ~ 2 years				2 ~ 5 years				More than 5 years				Total
Borrowings and debt securities		W	11,601,991				11,033,327				24,572,051				33,830,353				81,037,722
Lease liabilities			674,010				618,786				1,698,044				2,630,647				5,621,487
Trade and other payables			4,376,051				371,026				903,677				1,387,982				7,038,736
Financial guarantee contracts (*)			1,004,545				43,853				21,297				2,078,594				3,148,289
		W	17,656,597				12,066,992				27,195,069				39,927,576				96,846,234

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 September 30, 2020 and December 31, 2019 are W75,641 million and W81,357 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

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

In millions of won		September 30, 2020
Type		Less than 1 year				1 ~ 5 years				More than 5 years				Others (*)				Total
Cash and cash equivalents		W	1,576,098				—				—				—				1,576,098
Financial assets at fair value through other comprehensive income			—				—				—				337,083				337,083
Financial assets at amortized cost			13,129				1,314				—				—				14,443
Loans			76,829				390,599				445,833				—				913,261
Long-term/short-term financial instruments			1,679,095				225,570				—				277,898				2,182,563
Financial assets at fair value through profit or loss			2,480,351				—				—				675,117				3,155,468
Trade and other receivables			7,289,878				947,879				854,885				121,488				9,214,130
		W	13,115,380				1,565,362				1,300,718				1,411,586				17,393,046

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

(*) The maturities cannot be presently determined.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 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			(20,212	)			(17,973	)			(14,774	)			—				(52,959	)
- Hedging			(11,361	)			(1,081	)			(19,533	)			(40,736	)			(72,711	)
		W	(31,573	)			(19,054	)			(34,307	)			(40,736	)			(125,670	)

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 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	337,083				337,083				379,170				379,170
Derivative assets (trading)			342,327				342,327				165,204				165,204
Derivative assets (applying hedge accounting)			217,803				217,803				145,829				145,829
Financial assets at fair value through profit or loss			3,155,468				3,155,468				747,261				747,261
		W	4,052,681				4,052,681				1,437,464				1,437,464
Assets carried at amortized cost
Financial assets at amortized cost		W	14,443				14,443				13,609				13,609
Loans and receivables			880,363				880,363				738,707				738,707
Trade and other receivables			9,209,016				9,209,016				9,703,749				9,703,749
Long-term financial instruments			503,468				503,468				608,256				608,256
Short-term financial instruments			1,679,095				1,679,095				1,351,971				1,351,971
Cash and cash equivalents			1,576,098				1,576,098				1,810,129				1,810,129
		W	13,862,483				13,862,483				14,226,421				14,226,421
Liabilities recognized at fair value
Derivative liabilities (trading)		W	62,315				62,315				53,147				53,147
Derivative liabilities (applying hedge accounting)			72,710				72,710				116,813				116,813
		W	135,025				135,025				169,960				169,960
Liabilities carried at amortized cost
Secured borrowings		W	66,965				66,965				227,135				227,135
Unsecured debt securities			65,296,306				69,561,095				63,171,664				66,917,421
Lease liabilities			4,977,916				4,977,916				5,070,133				5,070,133
Unsecured borrowings			4,917,949				4,940,625				4,104,523				4,113,955
Trade and other payables (*)			7,038,736				7,038,736				8,545,029				8,545,029
Bank overdraft			—				—				373,219				373,219
		W	82,297,872				86,585,337				81,491,703				85,246,892

(*) Excludes lease liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 and December 31, 2019 are as follows:

Type		September 30, 2020				December 31, 2019
Derivatives			(-) 0.73% ~ 3.08	%			0.01% ~ 4.16	%
Borrowings and debt securities			(-) 0.13% ~ 4.38	%			0.17% ~ 3.90	%
Leases			0.60% ~ 16.81	%			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 September 30, 2020 and December 31, 2019 are as follows:

In millions of won		September 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	154,788				—				182,295				337,083
Derivative assets			—				557,496				2,634				560,130
Financial assets at fair value through profit or loss			—				3,150,000				5,468				3,155,468
		W	154,788				3,707,496				190,397				4,052,681
Financial liabilities at fair value
Derivative liabilities		W	—				135,025				—				135,025

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 nine-month period ended September 30, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won		September 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				—				398				(445	)			—				5,468
Financial assets at fair value through other comprehensive income Unlisted securities			177,968				2,900				—				(163	)			(1	)			1,591				182,295

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	122,577
1 ~ 2 years			81,718
		W	204,295

(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 September 30, 2020 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	29,236
1 ~ 2 years			29,268
2 ~ 3 years			29,301
Over 3 years			574,187
		W	661,992

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties

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

Type		Related party
Parent		Republic of Korea government
Subsidiaries (124 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 Mangilao Holdings LLC(former, KEPCO-LG CNS Mangilao Holdings LLC), Mangilao Investment LLC, KEPCO Mangilao Solar, LLC(former, 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., Moha Solar Co., Ltd.
Associates (73 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., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, 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, Goesan Solar Park Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

Type		Related party
Joint ventures (74 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., PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)
Others (2 others)		Korea Development Bank, Ulleungdo Natural Energy Co., Ltd.

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

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September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

<Sales and Others>

In millions of won						Sales and others
Company name		Transaction type				September 30, 2020				September 30, 2019
<Associates>
Korea Gas Corporation			Electricity sales			W	72,864				93,226
GS Donghae Electric Power Co., Ltd.			Electricity sales				17,148				14,288
Dongducheon Dream Power Co., Ltd.			Electricity sales				5,954				4,590
S-Power Co., Ltd.			Service				5,003				4,869
Hyundai Green Power Co., Ltd.			Design service				16,664				12,627
Korea Electric Power Industrial Development Co., Ltd.			Service				9,246				8,608
Daeryun Power Co., Ltd.			Electricity sales				1,429				1,411
Shin Pyeongtaek Power Co., Ltd.			Electricity sales				14,550				15,158
Korea Power Exchange			Service				21,190				5,303
Gangwon Wind Power Co., Ltd.			Electricity sales				2,084				2,369
Noeul Green Energy Co., Ltd.			Electricity sales				23				23
Gosung Green Power Co., Ltd.			Electricity sales				14,775				6,645
Busan Green Energy Co., Ltd.			Electricity sales				18				13
Samcheok Eco Materials Co., Ltd.			Electricity sales				566				447
Others (Taebaek Wind Power Co., Ltd. and 31 others)			Electricity sales				64,237				108,000
<Joint ventures>
Cheongna Energy Co., Ltd.			Services				5,720				8,287
Chun-cheon Energy Co., Ltd.			Electricity sales				1,937				1,636
Daegu Green Power Co., Ltd.			Electricity sales				1,016				852
KAPES, Inc.			Commission				192				233
Rabigh Electricity Company			Service				700				146
Nawah Energy Company P.J.S.C.			Service				85,738				73,352
KEPCO SPC Power Corporation			Others				38,998				19,889
Seokmun Energy Co., Ltd.			Service				1,545				1,158
Amman Asia Electric Power Company			Others				10,802				12,618
Kelar S.A.			Service				10,829				3,065
Yeonggwangbaeksu Wind Power Co., Ltd.			Electricity sales				1,336				1,310
Yeonggwang Wind Power Co., Ltd.			Electricity sales				614				526
Others (Honam Wind Power Co., Ltd. and 37 others)			Electricity sales				584,285				29,940
<Others>
Korea Development Bank			Electricity sales				2,951				3,092
			Interest income				3,429				1,489

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September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

<Purchase and Others>

In millions of won						Purchase and others
Company name		Transaction type				September 30, 2020				September 30, 2019
<Associates>
Korea Gas Corporation			Fuel purchase			W	2,544,927				3,034,910
GS Donghae Electric Power Co., Ltd.			Electricity purchase				490,918				542,355
Dongducheon Dream Power Co., Ltd.			Electricity purchase				389,049				528,511
S-Power Co., Ltd.			Service				293,461				401,453
Hyundai Green Power Co., Ltd.			Design service				349,772				360,087
Korea Electric Power Industrial Development Co., Ltd.			Service				166,459				185,368
Daeryun Power Co., Ltd.			Electricity purchase				68,649				104,593
Shin Pyeongtaek Power Co., Ltd.			Electricity purchase				416,730				48
Korea Power Exchange			Service				69,485				96,265
Gangwon Wind Power Co., Ltd.			Electricity purchase				16,803				17,891
Noeul Green Energy Co., Ltd.			Electricity purchase				8,614				11,263
Busan Green Energy Co., Ltd.			Electricity purchase				10,821				15,445
Samcheok Eco Materials Co., Ltd.			Electricity purchase				9,151				5,821
Others (Taebaek Wind Power Co., Ltd. and 15 others)			Electricity purchase				43,184				34,602
<Joint ventures>
Cheogna Energy Co., Ltd.			Service				65				58,747
Chun-cheon Energy Co., Ltd.			Electricity purchase				176,716				242,622
Daegu Green Power Co., Ltd.			Electricity purchase				165,927				223,741
KAPES, Inc.			Commission				162,021				62,294
Seokmun Energy Co., Ltd.			Service				33,345				19,644
Amman Asia Electric Power Company			Others				102				—
Yeonggwangbaeksu Wind Power Co., Ltd.			Electricity purchase				8,944				7,467
Yeonggwang Wind Power Co., Ltd.			Electricity purchase				15,403				24,204
Others (Honam Wind Power Co., Ltd. and 11 others)			Electricity purchase				55,761				15,321
<Others>
Korea Development Bank			Interest expense				3,149				2,987
			Dividends paid				—				15

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September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

In millions of won				Receivables								Payables
Company name		Type		September 30, 2020				December 31, 2019				September 30, 2020				December 31, 2019
<Associates>
Korea Gas Corporation		Trade receivables		W	5,959				9,267				—				—
		Non-trade receivables and others			333				38				—				—
		Trade payables			—				—				230,753				462,138
		Non-trade payables and others			—				—				736				560
Dongducheon Dream Power Co., Ltd.		Trade receivables			344				323				—				—
		Non-trade receivables and others			213				267				—				—
		Trade payables			—				—				39,208				85,920
		Non-trade payables and others			—				—				—				12
Goseong Green Power Co., Ltd.		Trade receivables			307				103				—				—
		Non-trade receivables and others			—				5,285				—				—
		Non-trade payables and others			—				—				63,443				65,626
GS Donghae Electric Power Co., Ltd.		Trade receivables			222				175				—				—
		Non-trade receivables and others			235				367				—				—
		Trade payables			—				—				46,638				69,811
		Non-trade payables and others			—				—				31				16
Shin Pyeongtaek Power Co., Ltd.		Trade receivables			1,291				1,014				—				—
		Non-trade receivables and others			562				2,281				—				—
		Trade payables			—				—				39,696				64,696
		Non-trade payables and others			—				—				129				61
S-Power Co., Ltd.		Trade receivables			147				89				—				—
		Non-trade receivables and others			46				43				—				—
		Trade payables			—				—				23,415				53,705
Hyundai Green Power Co., Ltd.		Trade receivables			266				502				—				—
		Trade payables			—				—				36,648				41,587
Daeryun Power Co., Ltd.		Trade receivables			125				144				—				—
		Trade payables			—				—				6,351				19,843
Korea Electric Power Industrial Development Co., Ltd.		Trade receivables			40				243				—				—
		Non-trade receivables and others			19				43				—				—
		Trade payables			—				—				412				3,756
		Non-trade payables and others			—				—				2,398				3,827
Korea Power Exchange		Trade receivables			1,716				1,142				—				—
		Non-trade receivables and others			62				144				—				—
		Trade payables			—				—				4,078				—
		Non-trade payables and others			—				—				77,611				4,160
Others (Gangwon Wind Power Co., Ltd. and 25 others)		Trade receivables			389				1,536				—				—
		Non-trade receivables and others			16,611				6,191				—				—
		Trade payables			—				—				2,652				4,568
		Non-trade payables and others			—				—				734				2,983

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September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

In millions of won				Receivables								Payables
Company name		Type		September 30, 2020				December 31, 2019				September 30, 2020				December 31, 2019
<Joint ventures>
KAPES, Inc.		Trade receivables		W	1				1				—				—
		Non-trade payables and others			—				—				4				50,738
Nawah Energy Company P.J.S.C.		Trade receivables			81,061				43,312				—				—
		Non-trade receivables and others			1,958				47				—				—
Daegu Green Power Co., Ltd.		Trade receivables			104				113				—				—
		Non-trade receivables and others			16				1				—				—
		Trade payables			—				—				16,266				28,980
Chun-cheon Energy Co., Ltd.		Trade receivables			124				260				—				—
		Non-trade receivables and others			165				5,362				—				—
		Trade payables			—				—				12,951				23,438
Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)		Trade receivables			150				128				—				—
		Non-trade receivables and others			11,570				12,532				—				—
		Trade payables			—				—				10				175
		Non-trade payables and others			—				—				9,318				9,178
Amman Asia Electric Power Company		Trade receivables			9				—				—				—
		Non-trade payables and others			—				—				20,165				19,096
Kelar S.A.		Trade receivables			1,772				1,902				—				—
		Non-trade receivables and others			10,595				7,632				—				—
Jamaica Public Service Company Limited		Trade receivables			2,494				6,476				—				—
		Non-trade receivables and others			166				—				—				—
		Non-trade payables and others			—				—				—				57
Others (Seokmun Energy Co., Ltd. and 22 others)		Trade receivables			16,317				259				—				—
		Non-trade receivables and others			4,048				8,606				—				—
		Trade payables			—				—				7,353				1,166
		Non-trade payables and others			—				—				9,894				79,369
<Others>
Korea Development Bank		Accrued interest income			148				1,630				—				—
		Non-trade receivables and others			421,846				146,416				—				—
		Non-trade payables and others			—				—				116				152
		Derivatives			57,200				41,368				3,454				6,531

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September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

(5) Loans and others arising from related party transactions as of September 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				—				354				29,084
		(Allowance for doubtful accounts)			(7,325	)			—				—				(829	)			(8,154	)
Associates		PT. Cirebon Electric Power			578				—				(609	)			31				—
Associates		Xe-Pian Xe-Namnoy Power Co., Ltd.			20,955				—				—				284				21,239
Associates		PT. Wampu Electric Power			16,502				—				(4,552	)			1,149				13,099
Associates		Gunsan Bio Energy Co., Ltd.			12,396				—				—				—				12,396
		(Allowance for doubtful accounts)			(10,128	)			—				—				—				(10,128	)
Associates		Bigeum Resident Photovoltaic Power Co., Ltd.			—				3,500				—				—				3,500
Associates		Daejung Offshore Wind Power Co., Ltd.			—				1,000				—				—				1,000
Joint ventures		Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)			2,465				—				(2,465	)			—				—
		(Allowance for doubtful accounts)			(2,465	)			—				2,465				—				—
Joint ventures		Solaseado Solar Power Co., Ltd.			—				64,000				—				—				64,000
Joint ventures		RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			1,055				7,269				—				(112	)			8,212
Joint ventures		HORUS SOLAR, S.A. DE C.V			3,323				10,579				—				(347	)			13,555
Joint ventures		SUNMEX RENOVABLES, S.A. DE C.V.			144				181				—				(6	)			319
Joint ventures		Kelar S.A.			42,158				—				—				572				42,730
Joint ventures		Chun-cheon Energy Co., Ltd.			5,057				—				(5,057	)			—				—
Joint ventures		DE Energia SpA			6,632				—				—				90				6,722
Joint ventures		Daehan Wind Power PSC			—				11,852				—				(311	)			11,541
Joint ventures		PT. Tanjung Power Indonesia			—				777				—				(17	)			760
				W	120,023				99,212				(10,218	)			858				209,875

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

In millions of won
Related parties		Type		December 31, 2019				Borrowings				Repayment				Others				September 30, 2020
Korea Development Bank		Facility		W	59,845				—				(6,859	)			—				52,986
		Others			3,500				—				(292	)			—				3,208
		Operating funds			179,000				52,961				(187,511	)			(150	)			44,300
		Syndicated Loan			17,085				—				(1,074	)			785				16,796
		EBL			—				36,837				—				(1,632	)			35,205

(7) Guarantees provided to related parties as of September 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
				Debt guarantees		USD	285,000			SMBC Singapore
Korea Electric Power Corporation		Barakah One Company		Debt guarantees		USD	900,000			Export-Import Bank of Korea and others
				Performance guarantees and others		USD	4,435,420
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
				Performance guarantees		SAR	68,054
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	4,919			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	71,095
				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	2,061			Korea Development Bank
Korea Western Power Co., Ltd.		Dongducheon Dream Power Co., Ltd.		Collateralized money invested (*7)		KRW	47,578			Kookmin Bank and others
				Debt guarantees		KRW	20,300			BNK Securities
Korea Western Power Co., Ltd.		PT. Mutiara Jawa		Collateralized money invested		KRW	1,399			Woori Bank
Korea Western Power Co., Ltd.		Haeng Bok Do Si Photovoltaic Power Co., Ltd.		Collateralized money invested		KRW	214			Nonghyup Bank
Korea Western Power Co., Ltd.		Shin Pyeongtaek Power Co., Ltd.		Collateralized money invested		KRW	68,430			Kookmin Bank
				Guarantees for supplemental funding (*1)			—			Kookmin Bank and others

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 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	5,252			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Seokmun Energy Co., Ltd.		Collateralized money invested		KRW	17,241			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Chun-cheon Energy Co., Ltd.		Collateralized money invested		KRW	29,201			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	3,844			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	251,558			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	3,193			Kookmin Bank and others
Korea East-West Power Co., Ltd.		Yeonggwang Wind Power Co., Ltd.		Collateralized money invested		KRW	16,104			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	21,408			IBK
				Guarantees for supplemental funding (*1)		KRW	18,989
Korea East-West Power Co., Ltd.		Taebaek Gadeoksan Wind Power Co., Ltd.		Collateralized money invested		KRW	8,051			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	34,196			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	33,362			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	9,523			Mirae Asset Daewoo Co., Ltd. and others
				Debt guarantees		USD	5,728
				Payment guarantees (*10)		USD	1,066			Hana Bank
Korea Southern Power Co., Ltd.		KNH Solar Co., Ltd.		Collateralized money invested		KRW	2,363			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	26,490			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	23,558			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		Performance guarantees		USD	3,600			Shinhan Bank
				Payment guarantees (*9)		USD	1,898			Hana Bank
Korea Southern Power Co., Ltd.		Pyeongchang Wind Power Co., Ltd.		Collateralized money invested		KRW	5,027			Woori Bank and Shinhan Bank and others
				Performance guarantees			—

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 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	2,991			IBK
				Guarantees for supplemental funding (*1)			—
Korea Southern Power Co., Ltd.		Jeongam Wind Power Co., Ltd.		Guarantees for supplemental funding and performance guarantees (*1)			—			SK Securities.Co., LTD., KDB Capital Corporation, and others
				Collateralized money invested		KRW	4,444
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	7,026			Kookmin Bank and others
Kospo Chile SpA		Kelar S.A.		Collateralized money invested		KRW	72,208			Export-Import Bank of Korea and others
		Chester Solar I SpA		Collateralized money invested		KRW	1,371			IBK
		Chester Solar IV SpA		Collateralized money invested		KRW	776
		Chester Solar V SpA		Collateralized money invested		KRW	176
		Diego de Almagro Solar Spa		Collateralized money invested		KRW	1,185
		Laurel SpA		Collateralized money invested		KRW	804
Korea Midland Power Co., Ltd.		YeongGwang Yaksu Wind Electric. Co., Ltd.		Collateralized money invested		KRW	389			IBK and others
Korea Midland Power Co., Ltd.		Hyundai Green Power Co., Ltd.		Collateralized money invested		KRW	133,715			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	527			IBK
Korea Midland Power Co., Ltd.		Namjeongsusang Solar Power Operation Co., Ltd.		Collateralized money invested		KRW	358			IBK
Korea Midland Power Co., Ltd.		Gwangbaek Solar Power Investment Co., Ltd.		Collateralized money invested		KRW	4,644			Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.		Muan Sunshine Solar Power Plant Co., Ltd.		Collateralized money invested		KRW	777			IBK
Korea Midland Power Co., Ltd.		Goesan SolarPark Co., Ltd.		Collateralized money invested		KRW	1,763			IBK
Korea South-East Power Co., Ltd.		Dayone Energy Co., Ltd. (formerly, 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	116,412			Korea Development Bank and others
Korea South-East Power Co., Ltd.		RES Technology AD		Collateralized money invested		KRW	16,909			UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		ASM-BG Investicii AD		Collateralized money invested		KRW	19,041			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	2,229			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Gangneung Eco Power Co., Ltd.		Collateralized money invested		KRW	2,385			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		PND solar., Ltd.		Collateralized money invested		KRW	1,112			IBK
Korea South-East Power Co., Ltd.		Hyundai Eco Energy Co., Ltd.		Collateralized money invested		KRW	3,984			Samsung Life Insurance and others
Korea South-East Power Co., Ltd.		Jaeun Resident Wind Power Plant Co., Ltd.		Collateralized money invested		KRW	2,314			IBK
Korea South-East Power Co., Ltd.		Cheongsong Myeonbongsan Wind Power Plant Co., Ltd.		Collateralized money invested		KRW	4,196			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Youngam Solar Power Co., Ltd.		Collateralized money invested		KRW	5,863			Kookmin Bank and others
Korea South-East Power Co., Ltd.		Samsu Wind Power Co., Ltd.		Collateralized money invested		KRW	2,525			Shinhan Bank and others

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 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	6,799			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Hydro & Nuclear Power Co., Ltd.		Busan Green Energy Co., Ltd.		Collateralized money invested		KRW	9,379			Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Cheong-Song Noraesan Wind Power Co., Ltd.		Collateralized money invested		KRW	3,126			Woori Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Hydro & Nuclear Power Co., Ltd.		Jeju SolarOne Co., Ltd.		Collateralized money invested		KRW	160			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 September 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 Dayone Energy Co., Ltd. (formerly, 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 opening LC for Debt Service Reserve Account (DSRA).

(*10) This includes a guarantee related to LC for debt repayment allowance provided to DE Energia SpA, a joint venture of the Group.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

46. Related Parties, Continued

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

(9) Derivatives transactions with related parties as of September 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
		2020~2026			118,910			USD	100,000				0.61	%			1.00	%			1,189.10
		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		2020.09.08		2020.10.12			5,935			USD	5,000				1,187.00
		2020.09.28		2020.11.03			5,871			USD	5,000				1,174.14
		2020.09.22		2020.10.06			4,006			EUR	2,924				1,370.07

(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 nine-month periods ended September 30, 2020 and 2019 are as follows:

In millions of won		September 30, 2020								September 30, 2019
Type		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Salaries		W	182				1,099				245				1,100
Retirement benefits			15				47				11				15
		W	197				1,146				256				1,115

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

47. Statements of Cash Flows

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

In millions of won
Transactions		September 30, 2020				September 30, 2019
Transfer from construction-in-progress to other assets		W	5,460,342				6,250,122
Recognition of asset retirement cost and related provision for decommissioning costs			197,325				463,258
Transfer from provision for disposal of used nuclear fuel to accrued expenses			307,028				256,994
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			8,026,406				8,717,999
Transfer from inventory to stored nuclear fuel			398,217				—
Increase in right-of-use assets by change in accounting policy			280,567				4,994,477

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

In millions of won		September 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				2,259,823				—				144,856				70,281,220
Lease liabilities			5,070,133				(467,300	)			268,087				106,996				4,977,916
		W	72,946,674				1,792,523				268,087				251,852				75,259,136

In millions of won		September 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				4,077,920				—				—				900,317				66,012,864
Lease liabilities			283,806				(405,881	)			208,698				4,584,189				322,871				4,993,683
		W	61,318,433				3,672,039				208,698				4,584,189				1,223,188				71,006,547

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

48. Commitments for Expenditure

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

In millions of won		September 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				29,898				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			35,708				—				36,063				6,243
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M			37,288				35,742				—				—
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 4,464,000M			76,724				72,238				—				—
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M			42,068				41,012				—				—
Concrete pole (10M, general purpose, 350KGF) 102,435 ea and five other equipments			92,511				92,511				—				—
Construction of Shin-Kori units (#5,6)			8,625,387				3,544,345				8,625,387				4,479,956
Construction of Shin-Hanul units (#1,2)			9,443,635				359,380				8,306,149				—
Other 28 contracts			248,063				63,866				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)			395,603				761				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				30,391				305,209				43,388
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant			105,226				9,283				105,226				10,736
Electricity construction of Shin-Seocheon thermal power plant			265,957				27,456				231,196				87,874
Purchase of main machine for Jeju LNG combined			166,287				11,235				166,287				12,088
Service of designing Taean units (#9,10)			112,813				13,192				112,483				12,862
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			104,600				41,840				104,600				104,600
Purchase of Gimpo Thermal Combined Steam Turbine, HRSG and Power Block			210,900				147,630				—				—
Purchase of coal handling machine for construction of Samcheok units (#1,2)			284,497				29,060				282,927				42,785
Purchase of furnace main equipment 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				9,192				138,486				84,982

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

48. Commitments for Expenditure, Continued

(2) As of September 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 U
Molded (Light)		2020		756 Ton U
Molded (Medium)		2020		401 Ton U
Molded (Initial core)		2020 ~ 2023		415 Ton U

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

49. Contingencies and Commitments

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

In millions of won		September 30, 2020								December 31, 2019
		Number of cases				Claim amount				Number of cases				Claim amount
As the defendant			654			W	726,493				586			W	697,835
As the plaintiff			196				275,403				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 nine-month period ended September 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 September 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 September 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 September 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 September 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 W11,786 million as litigation provisions in relation to the lawsuit as of September 30, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

49. Contingencies and Commitments, Continued

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

In addition to the abovementioned significant ongoing claims, there are 10 arbitration cases pertaining to the Group as of September 30, 2020 and the significant arbitration cases for the nine-month period ended September 30, 2020 are as follows:

① The Group has 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 September 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 in 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).

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of September 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			47,104
		Banco de Oro		PHP			5,000
Loan limit		Kookmin Bank and others		KRW			1,657,613
		DBS Bank Ltd and others		USD			2,082,700
Certification of payment on payables from foreign country		Nonghyup Bank		USD			8,700
Certification of payment on L/C		Shinhan Bank and others		USD			921,934
		Shinhan Bank		JPY			714,901
		Hana Bank		SAR			68,054
Certification of Performance guarantee on contract		Seoul Guarantee Insurance and others		KRW			62,408
		First Abu Dhabi Bank and others		USD			728,796
		Korea Development Bank and others		JPY			637,495
		Hana Bank		EUR			4,065
		Hana Bank and others		INR			191,883
		Hana Bank		CAD			148
		Maybank		MYR			7,500
Certification of bidding		Hana Bank		USD			10,000
		Societe Generale		EUR			15
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			6,508
Others		Nonghyup Bank and others		KRW			589,493
		Export-Import Bank of Korea and others		USD			1,943,860
		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			70,028
Trade finance		BNP Paribas and others		USD			750,000

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

49. Contingencies and Commitments, Continued

(4) As of September 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 September 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 September 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 W71,159 million as of September 30, 2020 to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W38 million and depreciation on the idle assets of W4,916 million are recorded in other expenses for the nine-month period ended September 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 September 30, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 September 30, 2020. The book value of facility is W15,793 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 September 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 September 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 September 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 consolidated interim financial statements as of September 30, 2020, and the resulting effects have not been reflected in the consolidated interim financial statements.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 acquired and liabilities assumed through the business combination at the acquisition date for the year ended December 31, 2019 are as follows:

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 consolidated statement of comprehensive income (loss) for the year ended December 31, 2019.

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (Unaudited)

51. Subsequent Events

Subsequent to September 30, 2020, KEPCO, Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., and Korea Southern Power Co., Ltd., issued a corporate bonds for funding debt repayment, facility investments, and operations as follows:

In millions of won
Company		Type		Issue date		Maturity		Interest rate (%)				Amount
Korea Electric Power Corporation		# 1037		2020.11.04		2022.11.04			1.02			W	30,000
		# 1038		2020.11.04		2023.11.04			1.14				100,000
		# 1039		2020.11.04		2025.11.04			1.43				70,000
Korea Midland Power Co., Ltd.		# 59-1 corporate bond		2020.10.30		2023.10.30			1.20				50,000
		# 59-2 corporate bond		2020.10.30		2025.10.30			1.45				60,000
Korea Western Power Co., Ltd.		Corporate bond		2020.11.05		2022.11.05			1.00				60,000
		Corporate bond		2020.11.05		2025.11.05			1.42				10,000
		Corporate bond		2020.11.05		2050.11.05			1.76				80,000
Korea Southern Power Co., Ltd.		Unsecured public bond		2020.11.13		2022.11.11			1.04				110,000

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2020 and 2019 (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 nine-month periods ended September 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		September 30, 2020								September 30, 2019
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Operating profit on consolidated interim statements of comprehensive income (loss)		W	2,332,205				3,152,569				1,239,266				310,726
Add
Other income
Reversal of other provisions			2,269				22,161				1,331				3,517
Reversal of other allowance for doubtful accounts			6,685				2,465				—				—
Gains on government grants			52				181				62				201
Gains on assets contributed			693				23,177				20				2,791
Gains on liabilities exempted			27				1,240				119				838
Compensation and reparations revenue			41,398				81,795				80,860				119,524
Revenue from research contracts			1,456				2,138				1,952				4,529
Rental income			49,431				145,884				47,150				141,201
Others			15,418				29,235				15,026				45,076
Other gains
Gains on disposal of property, plant and equipment			25,570				81,733				6,578				35,765
Gains on disposal of intangible assets			—				1,556				109				206
Reversal of impairment losses on property, plant and equipment			1,068				7,805				—				—
Gains on foreign currency translation			—				6,862				42,953				11,108
Gains on foreign currency transactions			11,785				34,937				13,129				30,295
Gains on insurance proceeds			3,124				8,789				4,199				4,212
Others			50,573				224,527				46,870				157,106
Deduct
Other expenses
Compensation and reparations expenses			(3,095	)			(11,872	)			(19	)			(96	)
Accretion expenses of other provisions			(590	)			(704	)			(2,601	)			(2,984	)
Depreciation expenses on investment properties			(360	)			(1,095	)			(380	)			(4,671	)
Depreciation expenses on idle assets			(1,640	)			(4,916	)			(1,634	)			(4,906	)
Other bad debt expense			—				(502	)			(1,585	)			(7,281	)
Donations			(211,258	)			(300,453	)			(14,239	)			(41,802	)
Others			(4,949	)			(12,325	)			(7,108	)			(16,964	)
Other losses
Losses on disposal of property, plant and equipment			(36,251	)			(55,504	)			(16,540	)			(43,287	)
Losses on disposal of intangible assets			—				—				(28	)			(28	)
Impairment loss on property, plant and equipment			—				(9,162	)			(7,467	)			(37,152	)
Impairment loss on intangible assets			—				(3,505	)			(451,823	)			(513,519	)
Losses on foreign currency translation			(7,785	)			(9,436	)			—				(8,669	)
Losses on foreign currency transactions			(5,965	)			(37,591	)			(14,609	)			(43,524	)
Others			(37,785	)			(95,169	)			(37,510	)			(75,328	)
Adjusted operating profit		W	2,232,076				3,284,820				944,081				66,884

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