6-K 1 d135031d6k.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 2021

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    X     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    X    

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

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

Table of Contents

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2021 to September 30, 2021)

THIS IS A SUMMARY IN ENGLISH OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE FINANCIAL SERVICES COMMISSION OF KOREA.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS. NON-MATERIAL OR PREVIOUSLY DISCLOSED INFORMATION IS OMITTED OR ABRIDGED.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

Table of Contents

I. Company Overview

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

2. Information of the company

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

(Phone number) 82-61-345-4213

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

3. Major businesses

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

• development of electric power resources;

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

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

• overseas business related to the businesses mentioned above;

• investment or contributions related to the businesses mentioned above;

• development and operation of certain real estate holdings; and

• other businesses entrusted by the government.

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

4. Consolidated subsidiaries

		(As of September 30, 2021)
Listed		Unlisted		Total
2		150		152

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5. Major changes in management

A. On February 1, 2021, Mr. Park, Hyung-Duck and Mr. Kim, Sung-Arm resigned from his position.

B. On March 25, 2021, Mr. Kim, Tae-Ok was appointed as a standing director in replacement of Mr. Kim, Sung-Arm, who resigned from his position.

C. On April 14, 2021, Mr. Park, Hyo-Sung, Mr. Lee, Kee-Man and Mr. Hwang, Cheol-Ho were appointed as non-standing directors in replacement of Mr. Kim, Jwa-Kwan, Mr. Yang, Bong-Ryull and Mr. Jung, Yeon-Gil whose term of office expired.

D. On May 28, 2021, Mr. Cheong, Seung-Il was appointed as the President and Chief Executive Officer in replacement of Mr. JongKap KIM whose term of office expired.

E. On October 14, 2021, Mr. Lee, Heung-Joo was appointed as a standing director in replacement of Mr. Lim, Hyun-Seung whose term of office expired.

6. Changes in major shareholders

There is no change in major shareholders in the last 5 years.

7. Information regarding KEPCO shares

A. Issued share capital: Won 3.2 trillion (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: Dividend payments for fiscal year 2020 was Won 1,216 per share and Won 780.6 billion as a total. KEPCO did not pay any dividends for fiscal year 2019 and 2018.

Table of Contents

II. Business Overview

1. Consolidated financial results by segment for a nine-month period ended September 30, 2021 and 2020

		(In billions of Won)
		January to September 2020								January to September 2021
		Sales				Operating profit				Sales				Operating profit
Electricity sales			43,490				1,569				44,377				-3,244
Nuclear generation			7,363				1,203				7,301				1,101
Thermal generation			15,838				240				18,309				670
Others(*)			2,958				256				3,285				322
Subtotal			69,649				3,268				73,272				-1,151
Adjustment for related-party transactions			-25,772				-115				-28,216				21
Total			43,877				3,153				45,056				-1,130

• 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 2020				January to September 2021
Electricity sold		Residential		KEPCO			108.36				109.01
		Commercial					132.05				128.89
		Educational					105.12				101.98
		Industrial					107.33				104.45
		Agricultural					48.59				45.41
		Street lighting					116.41				114.20
		Overnight usage					66.52				64.57
Electricity from nuclear generation		Nuclear Generation		KHNP			61.53				62.99
Electricity from thermal generation		Thermal generation		KOSEP			86.63				98.17
				KOMIPO			83.77				91.49
				KOWEPO			93.89				102.63
				KOSPO			97.39				106.60
				EWP			93.98				105.92

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3. Power purchase from generation companies for a nine-month period ended September 30, 2021

Company		Volume (GWh)				Expense (In billions of Won)
KHNP			112,456				7,095
KOSEP			32,519				2,932
KOMIPO			35,373				3,619
KOWEPO			33,500				3,408
KOSPO			36,497				3,891
EWP			31,834				3,307
Others			131,768				13,241
Total			413,947				37,493

4. Intellectual property as of September 30, 2021

		Patents				Utility models				Designs				Trademarks				Total
KEPCO			2,241				17				102				72				2,432
Generation subsidiaries			3,370				83				57				221				3,752
Total			5,611				100				159				293				6,184

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III. Financial Information

1. Condensed consolidated financial results as of and for a nine-month period ended September 30, 2020 and 2021

(In billions of Won)

Consolidated statements of comprehensive income														Consolidated statements of financial position
		January to September 2020				January to September 2021				Change (%)						December 31, 2020				September 30, 2021				Change (%)
Sales			43,877				45,056				2.7			Total assets			203,142				207,014				1.9
Operating profit			3,153				-1,130				n/m			Total liabilities			132,475				138,199				4.3
Net income			1,508				-1,581				n/m			Total equity			70,667				68,815				-2.6

2. Condensed separate financial results as of and for a nine-month period ended September 30, 2020 and 2021

(In billions of Won)

Separate statements of comprehensive income														Separate statements of financial position
		January to September 2020				January to September 2021				Change (%)						December 31, 2020				September 30, 2021				Change (%)
Sales			43,490				44,377				2.0			Total assets			113,103				114,085				0.9
Operating profit			1,569				-3,244				n/m			Total liabilities			59,772				63,710				6.6
Net income			1,145				-2,233				n/m			Total equity			53,331				50,375				-5.5

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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.

* Subcommittees under the board of directors : The Audit Committee consists of one standing director and two non-standing directors. All such members of the audit committee are independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Korean Commercial Act and the New York Stock Exchange listing standards. The ESG Committee consists of three non-standing directors.

2. Board meetings and agenda for a nine-month period ended September 30, 2021

Number of meetings		Number of agendas		Classification
				Resolutions		Reports
11		39		31		8

* The audit committee held 9 meetings with 32 agenda (of which, 15 were approved as proposed and 17 were accepted as reported).

3. Major activities of the Board of Directors

Date		Agenda		Results		Type
January 15, 2021		Approval of the safety management plan of 2021		Approved as proposed		Resolution
		Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director		Approved as proposed		Resolution
		Report on liquidation of the fund relating to overseas exploration and production projects		Accepted as reported		Report
February 9, 2021		Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO		Approved as proposed		Resolution
February 19, 2021		Approval to call for the annual general meeting of shareholders for the fiscal year 2020		Approved as proposed		Resolution
		Approval of consolidated and separate financial statements for the fiscal year 2020		Approved as proposed		Resolution
		Approval of Agreement on Management Performance Assessment for the President & CEO		Approved as proposed		Resolution

Table of Contents

		Approval of amendments to the Articles of Incorporation		Approved as proposed		Resolution
		Approval of the maximum aggregate amount of remuneration for directors in 2021		Approved as proposed		Resolution
		Report on internal control over financial reporting for the fiscal year 2020		Accepted as reported		Report
		Report on the evaluation of internal control over financial reporting for the fiscal year 2020		Accepted as reported		Report
		Report on audit results for 2020		Accepted as reported		Report
March 5, 2021		Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020		Approved as proposed		Resolution
		Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
		Approval to revise the call for the annual general meeting of shareholders for the fiscal year 2020		Approved as proposed		Resolution
April 16, 2021		Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director		Approved as proposed		Resolution
		Approval of amendments to the Regulation for Employee Remuneration and Welfare		Approved as proposed		Resolution
May 13, 2021		Approval of nomination of the candidate of a member of Audit Committee		Approved as proposed		Resolution
		Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021		Approved as proposed		Resolution
May 21, 2021		Approval of personnel increase		Approved as proposed		Resolution
		Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
		Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)		Approved as proposed		Resolution
		Report on audit results for the first quarter of 2021		Accepted as reported		Report
June 25, 2021		Approval of the mid-to-long term financial management plan (2021-2025)		Approved as proposed		Resolution
		Approval of amendment to the Terms and Condition for Electricity Supply		Approved as proposed		Resolution

Table of Contents

		Approval of investment in the fund for mutually beneficial cooperation between large enterprises and small and medium enterprises in 2020		Approved as proposed		Resolution
July 21, 2021		Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021		Approved as proposed		Resolution
		Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
		Approval of nomination of the candidate of a member of Audit Committee		Approved as proposed		Resolution
		Approval to appoint members of the ESG Committee		Approved as proposed		Resolution
		Approval of investment in the Intra-company Employee Welfare Fund in 2021		Approved as proposed		Resolution
		Undisclosed		—		—
		Approval to proceed the 2nd phase of the company-wide adoption plan of the Sales & marketing and Distribution Information System 4.0 (SDIS 4.0)		Approved as proposed		Resolution
		Report on organizational restructuring results		Accepted as reported		Report
August 20, 2021		Approval of 9th long-term plan for power transmission and substation facilities		Approved as proposed		Resolution
		Report on audit results for the second quarter of 2021		Accepted as reported		Report
		Report on financial statements for the first half of 2021		Accepted as reported		Report
September 16, 2021		Approval of amendments to the Regulation for Employee Remuneration and Welfare		Approved as proposed		Resolution
		Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021		Approved as proposed		Resolution

* The agenda on July 21, 2021 is undisclosed as it is one of major secrets regarding the company’s operation, according to the Article 11 (2) of the Regulations Concerning the Board of Directors.

Table of Contents

4. Attendance Status of Non-standing directors

Date

Agenda

Kim, Jwa- Kwan

Yang, Bong- Ryull

Jung, Yeon- Gil

Noh, Geum- Sun

Choi, Seung- Kook

Park, Jong- Bae

Seong, Si- Heon

Bang, Su- Ran

Park, Hyo- Sung

Lee, Kee- Man

Hwang, Cheol- Ho

Lee, Kye- Sung

Kim, Jae- Shin

January 15, 2021

Approval of the safety management plan of 2021

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

Before Appointment

Before Appointment

Before Appointment

Before Appointment

Report on liquidation of the fund relating to overseas exploration and production projects

Agenda for Report

February 9, 2021

Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO

For

For

For

For

For

For

For

For

Before Appointment

Before Appointment

Before Appointment

Before Appointment

Before Appointment

February 19, 2021

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

Absent

For

For

For

For

For

Absent

For

Approval of consolidated and separate financial statements for the fiscal year 2020

Absent

For

For

For

For

For

Absent

For

Approval of Agreement on Management Performance Assessment for the President & CEO

Absent

For

For

For

For

For

Absent

For

Before Appointment

Before Appointment

Before Appointment

Before Appointment

Before Appointment

Approval of amendments to the Articles of Incorporation

Absent

For

For

For

For

For

Absent

For

Approval of the maximum aggregate amount of remuneration for directors in 2021

Absent

For

For

For

For

For

Absent

For

Table of Contents

Report on internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on audit results for 2020

Agenda for Report

March 5, 2021

Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020

For

Absent

For

For

For

For

Absent

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

Absent

For

For

For

For

Absent

For

Before Appointment

Before Appointment

Before Appointment

Before Appointment

Before Appointment

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

For

Absent

For

For

For

For

Absent

For

April 16, 2021

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

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Before Appointment

Before Appointment

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

For

For

May 13, 2021

Approval of nomination of the candidate of a member of Audit Committee

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Before Appointment

Before Appointment

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

For

For

For

For

For

For

For

Table of Contents

May 21, 2021

Approval of personnel increase

For

For

For

For

For

For

For

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Before Appointment

Before Appointment

Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)

For

For

For

For

For

For

For

For

Report on audit results for the first quarter of 2021

Agenda for Report

June 25, 2021

Approval of the mid-to-long term financial management plan (2021-2025)

For

For

Absent

For

For

For

For

For

Approval of amendment to the Terms and Condition for Electricity Supply

Retired

Retired

Retired

For

For

Absent

For

For

For

For

For

Before Appointment

Before Appointment

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

For

For

Absent

For

For

For

For

For

July 21, 2021

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

For

For

For

For

For

For

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

Retired

Retired

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Approval of nomination of the candidate of a member of Audit Committee

For

For

For

For

For

For

For

For

Table of Contents

Approval to appoint members of the ESG Committee

For

For

For

For

For

For

For

For

Approval of investment in the Intra-company Employee Welfare Fund in 2021

For

For

For

For

For

For

For

For

Undisclosed*

—

—

—

—

—

—

—

—

Approval to proceed the 2nd phase of the company-wide adoption plan of the Sales & marketing and Distribution Information System 4.0 (SDIS 4.0)

For

For

For

For

For

For

For

For

Report on organizational restructuring results

Agenda for Report

August 20, 2021

Approval of 9th long-term plan for power transmission and substation facilities

Retired

Retired

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Report on audit results for the second quarter of 2021

Agenda for Report

Report on financial statements for the first half of 2021

Agenda for Report

September 16, 2021

Approval of amendments to the Regulation for Employee Remuneration and Welfare

Retired

Retired

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

Retired

Retired

Retired

Retired

Retired

For

For

For

For

For

For

For

For

Attendance Rate

75%

75%

100%

100%

100%

90.9%

81.8%

100%

100%

100%

100%

100%

100%

* The agenda and its voting results of the board on July 21, 2021 is undisclosed as it is one of major secrets regarding the company’s operation, according to the Article 11 (2) of the Regulations Concerning the Board of Directors.

Table of Contents

5. Attendance Status of Standing directors

Date

Agenda

Cheong, Seung- Il

Choi, Young- Ho

Lee, Heyn- Bin

Lim, Hyun- Seung

Park, Heon- Gyu

Lee, Jong- Hwan

Kim, Tae- Ok

Jong Kap KIM

Park, Hyung- Duck

Kim, Sung- Arm

January 15, 2021

Approval of the safety management plan of 2021

Before Appointment

For

For

For

Before Appointment

For

Before Appointment

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

Report on liquidation of the fund relating to overseas exploration and production projects

Agenda for Report

February 9, 2021

Approval of forming Director Nomination Committee and evaluation standards for the candidates of the President & CEO

Before Appointment

For

For

For

Before Appointment

For

Before Appointment

For

Retired

Retired

February 19, 2021

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

For

For

For

For

Absent

Approval of consolidated and separate financial statements for the fiscal year 2020

For

For

For

For

Absent

Approval of Agreement on Management Performance Assessment for the President & CEO

Before Appointment

For

For

For

Before Appointment

For

Before Appointment

Absent

Retired

Retired

Approval of amendments to the Articles of Incorporation

For

For

For

For

Absent

Approval of the maximum aggregate amount of remuneration for directors in 2021

For

For

For

For

Absent

Report on internal control over financial reporting for the fiscal year 2020

Agenda for Report

Table of Contents

Report on the evaluation of internal control over financial reporting for the fiscal year 2020

Agenda for Report

Report on audit results for 2020

Agenda for Report

March 5, 2021

Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2020

For

For

For

For

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

Before Appointment

For

For

For

Before Appointment

For

Before Appointment

For

Retired

Retired

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

For

For

For

For

For

April 16, 2021

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

Before Appointment

For

For

For

Before Appointment

For

For

For

Retired

Retired

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

May 13, 2021

Approval of nomination of the candidate of a member of Audit Committee

Before Appointment

For

For

For

Before Appointment

For

For

For

Retired

Retired

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

For

For

For

For

For

Table of Contents

May 21, 2021

Approval of personnel increase

For

For

For

For

For

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

Before Appointment

For

For

For

Before Appointment

For

For

For

Retired

Retired

Approval of the additional contribution to Korea Institute of Energy Technology (KENTECH, previously disclosed as KEPCO Tech University)

For

For

For

For

For

For

Report on audit results for the first quarter of 2021

Agenda for Report

June 25, 2021

Approval of the mid-to-long term financial management plan (2021-2025)

For

For

For

For

For

For

For

Approval of amendment to the Terms and Condition for Electricity Supply

For

For

For

For

For

For

For

Retired

Retired

Retired

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

For

July 21, 2021

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

For

For

For

For

For

For

Approval to close the shareholders’ registry for the extraordinary general meeting of shareholders

For

For

For

For

For

For

For

Retired

Retired

Retired

Approval of nomination of the candidate of a member of Audit Committee

For

For

For

For

For

For

For

Approval to appoint members of the ESG Committee

For

For

For

For

For

For

For

Table of Contents

Approval of investment in the Intra-company Employee Welfare Fund in 2021

For

For

For

For

For

For

For

Undisclosed*

—

—

—

—

—

—

—

Approval to proceed the 2nd phase of the company-wide adoption plan of the Sales & marketing and Distribution Information System 4.0 (SDIS 4.0)

For

For

For

For

For

For

For

Report on organizational restructuring results

Agenda for Report

August 20, 2021

Approval of 9th long-term plan for power transmission and substation facilities

For

For

For

For

For

For

For

Retired

Retired

Retired

Report on audit results for the second quarter of 2021

Agenda for Report

Report on financial statements for the first half of 2021

Agenda for Report

September 16, 2021

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

For

Retired

Retired

Retired

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2021

For

For

For

For

For

For

For

Attendance Rate

100%

100%

100%

100%

100%

100%

100%

85.7%

100%

100%

* The agenda on July 21, 2021 is undisclosed as it is one of major secrets regarding the company’s operation, according to the Article 11 (2) of the Regulations Concerning the Board of Directors.

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6. Major activities of the Audit Committee

Date		Agenda		Results		Type
January 15, 2021		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Prior approval for non-audit service for subsidiaries by the independent auditor		Approved as proposed		Resolution
		Approval of Audit plans for 2021		Approved as proposed		Resolution
		Report on Audit education plans in 2021		Accepted as reported		Report
		Report on independence of independent auditors		Accepted as reported		Report
February 19, 2021		Approval of for the consolidated and separate financial statements and business report for the fiscal year 2020		Approved as proposed		Resolution
		Report on internal control over financial reporting for the fiscal year 2020		Accepted as reported		Report
		Report on the evaluation on internal control over financial reporting for the fiscal year 2020		Accepted as reported		Report
		Report on audit progress by independent auditors for fiscal year 2020		Accepted as reported		Report
		Report on audit results for 2020		Accepted as reported		Report
March 12, 2021		Approval of investigation result on the agenda 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 2020		Accepted as reported		Report
April 16, 2021		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Prior approval for non-audit service for subsidiaries by the independent auditor		Approved as proposed		Resolution
		Report on the Form 20-F for the fiscal year 2020 to be filed with the U.S. Securities and Exchange Commission		Accepted as reported		Report
		Auditor’s report for the fiscal year 2020 in accordance with U.S. accounting principles		Accepted as reported		Report
April 28, 2021		Approval of investigation result on the agenda for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
May 21, 2021		Report on audit results for the first quarter of 2021		Accepted as reported		Report
		Auditor’s review report for the first quarter of 2021		Accepted as reported		Report

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June 25, 2021		Approval of post evaluation results on independent auditor of the fiscal year 2020		Accepted as reported		Report
		Independent auditor’s report on the audit plans for the fiscal year 2021		Accepted as reported		Report
July 21, 2021		Approval of investigation result on the agenda for the extraordinary general meeting of shareholders		Approved as proposed		Resolution
		Approval of joint selection of independent auditors for the period from fiscal year 2022 to 2024		Approved as proposed		Resolution
		Report on the audit progress by independent auditor and its independence		Accepted as reported		Report
		Report on accounting principles for the cost pass-through tariff system		Accepted as reported		Report
August 20, 2021		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Approval of appointment of the chairperson of the Audit		Approved as proposed		Resolution
		Approval of amendments to the guidelines for the handling of whistleblowing report and protection of whistleblowers		Approved as proposed		Resolution
		Report on awarding excellent audit & inspection performances for the first half of 2021		Approved as proposed		Resolution
		Report on audit results for the second quarter of 2021		Accepted as reported		Report
		Auditor’s review report for the first half of 2021		Accepted as reported		Report

* The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company and takes administrative measures as appropriate in accordance with relevant internal regulations.

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7. Attendance Status of the Audit Committee

Date

Agenda

Noh, Geum-Sun

Kim, Jae-Shin

Jung, Yeon-Gil

Park, Hyo-Sung

Choi, Young-Ho

January 15, 2021

Approval of appointment of independent auditors of subsidiaries

Attended

Before Appointment

Attended

Before Appointment

Attended

Prior approval for non-audit service for subsidiaries by the independent auditor

Approval of Audit plans for 2021

Report on Audit education plans in 2021

Report on independence of independent auditors

February 19, 2021

Approval of for the consolidated and separate financial statements and business report for the fiscal year 2020

Attended

Before Appointment

Attended

Before Appointment

Attended

Report on internal control over financial reporting for the fiscal year 2020

Report on the evaluation on internal control over financial reporting for the fiscal year 2020

Report on audit progress by independent auditors for fiscal year 2020

Report on audit results for 2020

March 12, 2021

Approval of investigation result on the agenda for the annual general meeting of shareholders

Attended

Before Appointment

Attended

Before Appointment

Attended

Approval of auditor’s report for the annual general meeting of shareholders

Report on audit results by the independent auditor for the fiscal year 2020

April 16, 2021

Approval of appointment of independent auditors of subsidiaries

Attended

Before Appointment

Attended

Before Appointment

Attended

Prior approval for non-audit service for subsidiaries by the independent auditor

Report on the Form 20-F for the fiscal year 2020 to be filed with the U.S. Securities and Exchange Commission

Auditor’s report for the fiscal year 2020 in accordance with U.S. accounting principles

April 28, 2021

Approval of investigation result on the agenda for the extraordinary general meeting of shareholders

Attended

Before Appointment

Attended

Before Appointment

Attended

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May 21, 2021

Report on audit results for the first quarter of 2021

Attended

Before Appointment

Attended

Before Appointment

Attended

Auditor’s review report for the first quarter of 2021

June 25, 2021

Approval of post evaluation results on independent auditor

Attended

Before Appointment

Retired

Attended

Attended

Independent auditor’s report on the audit plans for the fiscal year 2021

July 21, 2021

Approval of investigation result on the agenda for the extraordinary general meeting of shareholders

Attended

Before Appointment

Retired

Attended

Attended

Approval of joint selection of independent auditors for the period from fiscal year 2022 to 2024

Report on the audit progress by independent auditor and its independence

Report on accounting principles for the cost pass-through tariff system

August 20, 2021

Approval of appointment of independent auditors of subsidiaries

Retired

Attended

Retired

Attended

Attended

Approval of appointment of the chairperson of the Audit

Approval of amendments to the guidelines for the handling of whistleblowing report and protection of whistleblowers

Report on awarding excellent audit & inspection performances for the first half of 2021

Report on audit results for the second quarter of 2021

Auditor’s review report for the first half of 2021

Attendance Rate

100%

100%

100%

100%

100%

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V. Shareholder’s Meetings

1. Summary of shareholder’s meetings for a nine-month period ended September 30, 2021

Type		Agenda		Results
Annual General Meeting held on March 25, 2021		Approval of the consolidated and separate financial statements for the fiscal year 2020		Approved as proposed
		Approval of the maximum aggregate amount of remuneration for directors in 2021		Approved as proposed
		Election of a Standing Director		Approved as proposed
		Approval of amendments to the Articles of Incorporation		Approved as proposed
Extraordinary General Meeting held on May 28, 2021		Election of the President & CEO		Approved as proposed
		Election of a Standing Director		Approved as proposed
		Election of a Non-Standing Director as a Member of the Audit Committee		Approved as proposed
Extraordinary General Meeting held on August 10, 2021		Election of a Standing Director as a Member of the Audit Committee		Approved as proposed

VI. Shareholders

1. List of shareholders as of September 30, 2021

				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				41,187,537				6.42
Public (Non-Koreans)		Common Shares			1,259				68,974,748				10.74
		American depositary shares (ADS)			1				25,514,771				3.98
Public (Koreans)					735,785				178,209,963				27.76
Total					737,048				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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VII. Directors and employees as of and for a nine-month period ended September 30, 2021 (KEPCO Only)

1. Directors

												(In thousands of Won)
Type				Number of directors				Total remuneration				Average remuneration per person				Remarks
Standing director					6				997,978				166,329			Excluding members of the Audit Committee
Non-standing director					6				135,000				22,500
Member of Audit Committee		Standing director			1				157,862				157,862			—
		Non-standing director			2				45,000				22,500			—
Total					15				1,335,840				89,056			—

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			18,083				118				18,201				14.8				1,227,766,914				67,456
Female			5,186				122				5,308				12.6				281,347,199				53,004
Total			23,269				240				23,509				14.3				1,509,114,113				64,193

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VIII. Other Information Necessary for the Protection of Investors

1. Pending legal proceedings as of September 30, 2021

		(In billions of Won)
Type		Number of lawsuits				Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants			677				648
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs			276				771

2. Sanctions as of September 30, 2021

Prosecution Date		Subject				Sanctions		Relevant laws (charges)		Proceedings
		Position		Tenure
June 30, 2021		CEO of Korea Hydro & Nuclear Power Co., Ltd. (Currently)		3yrs		Prosecution without detention		The Act on the Aggravated Punishment, etc. of specific economic crimes (Occupational breach of trust), The Criminal Act (Interference with business)		In the progress in the district court

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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/ Sim, Kwang-sub
Name:		Sim, Kwang-sub
Title:		Corporate Vice President

Date: December 9, 2021

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

For the three-month and nine-month periods ended September 30, 2021 and 2020

(With Independent Auditor’s Review Report Thereon)

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INDEX TO FINANCIAL STATEMENTS

		Page
Independent Auditor’s Review Report
Consolidated Interim Statements of Financial Position			1
Consolidated Interim Statements of Comprehensive Income (Loss)			3
Consolidated Interim Statements of Changes in Equity			5
Consolidated Interim Statements of Cash Flows			7
Notes to the Consolidated Interim Financial Statements			9

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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:

We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated interim statement of financial position as of September 30, 2021, and the related consolidated interim statements of comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2021 and 2020, 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 Standard (“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 Responsibility

Our responsibility is to express a conclusion 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 information 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 Korean Auditing Standards (“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 of the Group as of December 31, 2020, 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 10, 2021 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2020 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

November 15, 2021

This review report is effective as of November 15, 2021, 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, 2021 (Unaudited) and December 31, 2020

In millions of won		Note				September 30, 2021				December 31, 2020
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	2,086,505				2,029,584
Current financial assets, net			5,6,9,11,12,13,44,46				3,462,053				2,800,220
Trade and other receivables, net			5,8,20,24,44,45,46				7,095,475				7,918,470
Inventories, net			14				7,477,116				6,742,909
Income tax receivables							42,980				49,675
Current non-financial assets			15				1,177,603				1,020,158
Assets held-for-sale			16,41				1				925
Total current assets							21,341,733				20,561,941
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44,46				2,935,003				2,472,821
Non-current trade and other receivables, net			5,8,20,44,45,46				1,874,522				1,861,569
Property, plant and equipment, net			18,24,27,48				170,050,428				168,709,387
Investment properties, net			19,27				224,546				225,195
Goodwill			16				105,690				98,166
Intangible assets other than goodwill, net			21,27,45				998,946				1,055,730
Investments in associates			4,17				4,784,999				4,250,787
Investments in joint ventures			4,17				2,232,079				1,919,746
Defined benefit assets, net			25				—				7,231
Deferred tax assets							1,877,837				1,733,146
Non-current non-financial assets			15				588,544				246,392
Total non-current assets							185,672,594				182,580,170
Total Assets			4			W	207,014,327				203,142,111

(Continued)

1

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of September 30, 2021 (Unaudited) and December 31, 2020

In millions of won		Note				September 30, 2021				December 31, 2020
Liabilities
Current liabilities
Trade and other payables, net			5,22,24,44,46			W	6,367,188				6,256,521
Current financial liabilities, net			5,12,23,44,46				13,510,464				10,724,689
Income tax payables							268,524				476,898
Current non-financial liabilities			20,28,29				6,555,393				5,971,450
Current provisions			26,44				2,048,068				2,451,664
Total current liabilities							28,749,637				25,881,222
Non-current liabilities
Non-current trade and other payables, net			5,22,24,44,46				6,422,921				6,480,412
Non-current financial liabilities, net			5,12,23,44,46				62,214,786				59,365,011
Non-current non-financial liabilities			28,29				10,032,508				9,661,941
Employee benefits liabilities, net			25,44				2,019,717				1,910,860
Deferred tax liabilities							8,399,086				9,100,247
Non-current provisions			26,44				20,360,379				20,075,572
Total non-current liabilities							109,449,397				106,594,043
Total Liabilities			4			W	138,199,034				132,475,265
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							33,282,817				32,179,066
Unappropriated retained earnings							13,905,586				17,349,625
							48,793,313				51,133,601
Other components of equity			33
Other capital surplus							1,231,267				1,224,105
Accumulated other comprehensive loss							(49,978	)			(409,577	)
Other equity							13,294,973				13,294,973
							14,476,262				14,109,501
Equity attributable to owners of the controlling company							67,323,153				69,296,680
Non-controlling interests			16,32				1,492,140				1,370,166
Total Equity						W	68,815,293				70,666,846
Total Liabilities and Equity						W	207,014,327				203,142,111

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

2

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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, 2021 and 2020 (Unaudited)

In millions of won, except per share information						September 30, 2021								September 30, 2020
		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	15,987,619				43,583,834				15,196,434				42,368,932
Sales of services							111,642				304,253				99,310				312,898
Sales of construction services			20				196,977				677,416				257,484				728,862
Revenue related to transfer of assets from customers			28				165,981				490,931				158,149				466,345
							16,462,219				45,056,434				15,711,377				43,877,037
Cost of sales			14,25,42,46
Cost of sales of goods							(16,295,502	)			(43,169,343	)			(12,442,834	)			(37,783,291	)
Cost of sales of services							(199,841	)			(364,793	)			(48,991	)			(357,706	)
Cost of sales of construction services							(172,766	)			(616,369	)			(239,800	)			(656,564	)
							(16,668,109	)			(44,150,505	)			(12,731,625	)			(38,797,561	)
Gross profit (loss)							(205,890	)			905,929				2,979,752				5,079,476
Selling and administrative expenses			25,35,42,46				(730,801	)			(2,035,761	)			(647,547	)			(1,926,907	)
Operating profit (loss)			4				(936,691	)			(1,129,832	)			2,332,205				3,152,569
Other income			36				72,026				261,049				117,429				308,276
Other expenses			36				(36,860	)			(126,776	)			(221,892	)			(331,867	)
Other gains (losses), net			37				58,949				78,426				4,334				155,842
Finance income			5,12,38				644,548				1,273,843				384,946				751,680
Finance expenses			5,12,39				(1,178,328	)			(2,669,511	)			(702,142	)			(1,965,427	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,16,17
Share in profit of associates and joint ventures							135,277				446,664				47,364				316,845
Gain on disposal of investments in associates and joint ventures							833				875				13,299				13,299
Share in loss of associates and joint ventures							(92,047	)			(126,613	)			(30,360	)			(93,312	)
Loss on disposal of investments in associates and joint ventures							—				(161	)			—				(16	)
Loss on impairment of investments in associates and joint ventures							—				—				(7,026	)			(7,026	)
Loss on disposal of investments in subsidiaries							(1	)			(1,194	)			—				—
							44,062				319,571				23,277				229,790
Profit (loss) before income tax							(1,332,294	)			(1,993,230	)			1,938,157				2,300,863
Income tax benefit (expense)			40				306,409				411,908				(686,833	)			(793,079	)
Profit (loss) for the period						W	(1,025,885	)			(1,581,322	)			1,251,324				1,507,784

(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, 2021 and 2020 (Unaudited)

In millions of won, except per share information						September 30, 2021								September 30, 2020
		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	33,954				101,705				(72,246	)			(167,804	)
Share in other comprehensive loss of associates and joint ventures			31				(2,097	)			(3,273	)			(5,075	)			(3,957	)
Net change in fair value of equity investments at fair value through other comprehensive income (loss)			33				24,155				59,222				10,153				(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			5,12,33				(52,647	)			(15,789	)			9,812				58,693
Foreign currency translation of foreign operations			33				24,132				52,116				(15,487	)			(20,214	)
Share in other comprehensive income (loss) of associates and joint ventures			33				112,821				297,373				11,812				(29,925	)
Other comprehensive income (loss) for the period							140,318				491,354				(61,031	)			(193,317	)
Total comprehensive income (loss) for the period						W	(885,567	)			(1,089,968	)			1,190,293				1,314,467
Profit (loss) attributable to:
Owners of the controlling company			43			W	(1,045,241	)			(1,655,361	)			1,236,341				1,425,532
Non-controlling interests							19,356				74,039				14,983				82,252
						W	(1,025,885	)			(1,581,322	)			1,251,324				1,507,784
Total comprehensive income (loss) attributable to:
Owners of the controlling company						W	(924,473	)			(1,200,061	)			1,194,236				1,238,693
Non-controlling interests							38,906				110,093				(3,943	)			75,774
						W	(885,567	)			(1,089,968	)			1,190,293				1,314,467
Earnings (loss) per share (in won)			43
Basic and diluted earnings (loss) per share						W	(1,628	)			(2,579	)			1,926				2,221

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

4

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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, 2021 and 2020 (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 (loss) 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 loss, 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

(Continued)

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Consolidated Interim Statements of Changes in Equity, Continued

For the nine-month periods ended September 30, 2021 and 2020 (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, 2021		W	4,053,578				51,133,601				14,109,501				69,296,680				1,370,166				70,666,846
Total comprehensive income (loss) for the period
Profit (Loss) for the period			—				(1,655,361	)			—				(1,655,361	)			74,039				(1,581,322	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				94,520				—				94,520				7,185				101,705
Share in other comprehensive loss of associates and joint ventures, net of tax			—				(3,273	)			—				(3,273	)			—				(3,273	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—				—				59,219				59,219				3				59,222
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			—				—				(18,165	)			(18,165	)			2,376				(15,789	)
Foreign currency translation of foreign operations, net of tax			—				—				25,626				25,626				26,490				52,116
Share in other comprehensive income of associates and joint ventures, net of tax			—				—				297,373				297,373				—				297,373
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				(780,628	)			—				(780,628	)			(30,620	)			(811,248	)
Issuance of shares of capital by subsidiaries and others			—				—				(334	)			(334	)			2,848				2,514
Transactions between consolidated entities			—				—				7,452				7,452				(1,234	)			6,218
Changes in consolidation scope			—				—				44				44				50,926				50,970
Dividends paid (hybrid bond)			—				—				—				—				(10,039	)			(10,039	)
Others			—				4,454				(4,454	)			—				—				—
Balance at September 30, 2021		W	4,053,578				48,793,313				14,476,262				67,323,153				1,492,140				68,815,293

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

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Consolidated Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2021 and 2020 (Unaudited)

In millions of won		September 30, 2021				September 30, 2020
Cash flows from operating activities
Profit (loss) for the period		W	(1,581,322	)			1,507,784
Adjustments to reconcile profit (loss) for the period to net cash provided by operating activities:
Income tax expense (benefit)			(411,908	)			793,079
Depreciation			8,821,221				8,434,997
Amortization			125,319				116,674
Employee benefits expense			371,735				344,075
Bad debt expense			26,244				13,111
Interest expense			1,410,523				1,504,125
Loss on disposal of financial assets			652				408
Loss on disposal of property, plant and equipment			43,850				19,253
Loss on abandonment of property, plant and equipment			139,180				184,800
Loss on impairment of property, plant and equipment			3,317				1,357
Loss on impairment of intangible assets			—				3,505
Loss on disposal of intangible assets			38				—
Increase in provisions			1,416,567				1,426,303
Loss on foreign currency translation, net			999,307				132,151
Gain on valuation of financial assets at fair value through profit or loss			(2,817	)			(10,872	)
Loss on valuation of financial assets at fair value through profit or loss			6,889				975
Valuation and transaction gain on derivative instruments, net			(901,127	)			(273,712	)
Share in profit of associates and joint ventures, net			(320,051	)			(223,533	)
Gain on disposal of financial assets			(5,456	)			(4,065	)
Gain on disposal of property, plant and equipment			(45,081	)			(56,163	)
Gain on disposal of intangible assets			—				(1,556	)
Gain on disposal of associates and joint ventures			(875	)			(13,299	)
Loss on disposal of associates and joint ventures			161				16
Loss on impairment of associates and joint ventures			—				7,026
Loss on disposal of subsidiaries			1,194				—
Interest income			(162,126	)			(189,196	)
Dividends income			(9,172	)			(4,649	)
Others, net			(81,913	)			(14,736	)
			11,425,671				12,190,074
Changes in working capital:
Trade receivables			925,869				415,861
Non-trade receivables			222,816				203,577
Accrued income			323,394				(40,754	)
Other receivables			13,856				6,784
Other current assets			(262,187	)			66,470
Inventories			(1,258,753	)			(211,523	)
Other non-current assets			(18,698	)			(91,990	)
Trade payables			538,317				(1,254,499	)
Non-trade payables			(368,573	)			(310,530	)
Accrued expenses			(317,674	)			(194,777	)
Other current liabilities			536,087				846,901
Other non-current liabilities			306,719				481,209
Investments in associates and joint ventures (dividends received)			178,230				137,412
Provisions			(1,694,682	)			(1,529,417	)
Payments of employee benefit obligations			(121,188	)			(55,236	)
Plan assets			(12,782	)			(31,145	)
		W	(1,009,249	)			(1,561,657	)

(Continued)

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Consolidated Interim Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2021 and 2020 (Unaudited)

In millions of won		September 30, 2021				September 30, 2020
Cash generated from operating activities		W	8,835,100				12,136,201
Dividends received (financial assets at fair value through other comprehensive income)			9,172				4,649
Interest paid			(1,471,668	)			(1,584,564	)
Interest received			135,609				160,648
Income taxes paid			(757,137	)			(404,966	)
Net cash provided by operating activities			6,751,076				10,311,968
Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			4,138				95
Acquisition of investments in associates and joint ventures			(310,945	)			(136,719	)
Proceeds from disposals of property, plant and equipment			182,740				253,125
Acquisition of property, plant and equipment			(9,323,136	)			(9,511,578	)
Proceeds from disposals of intangible assets			10				10,872
Acquisition of intangible assets			(50,956	)			(81,266	)
Proceeds from disposals of financial assets			5,346,373				5,253,403
Acquisition of financial assets			(5,857,552	)			(8,013,396	)
Increase in loans			(151,553	)			(153,674	)
Collection of loans			180,791				166,836
Increase in deposits			(150,038	)			(215,135	)
Decrease in deposits			110,736				218,801
Proceeds from disposals of assets held-for-sale			1,137				32,578
Receipt of government grants			25,377				23,718
Net cash outflow from changes in consolidation scope			(66,359	)			(25,094	)
Other cash outflow from investing activities, net			(369,792	)			(134,020	)
Net cash used in investing activities			(10,429,029	)			(12,311,454	)
Cash flows from financing activities
Proceeds from short-term borrowings, net			709,725				234,763
Proceeds from long-term borrowings and debt securities			11,195,049				8,927,076
Repayment of long-term borrowings and debt securities			(7,112,603	)			(6,902,016	)
Payment of lease liabilities			(445,248	)			(467,300	)
Settlement of derivative instruments, net			88,101				62,117
Change in non-controlling interests			53,543				9,923
Dividends paid (hybrid bond)			(10,039	)			(10,039	)
Dividends paid			(811,264	)			(81,073	)
Other cash outflow from financing activities, net			(7,003	)			(2,409	)
Net cash provided by financing activities			3,660,261				1,771,042
Net decrease in cash and cash equivalents before effect of exchange rate fluctuations			(17,692	)			(228,444	)
Effect of exchange rate fluctuations on cash held			74,613				(5,587	)
Net increase (decrease) in cash and cash equivalents			56,921				(234,031	)
Cash and cash equivalents at January 1			2,029,584				1,810,129
Cash and cash equivalents at September 30		W	2,086,505				1,576,098

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, 2021 and 2020 (Unaudited)

1. Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”) 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 first listed on the Korea Stock Exchange on August 10, 1989 and subsequently on the New York Stock Exchange on October 27, 1994 through its depository receipts. KEPCO’s headquarter is located in Naju, Jeollanam-do.

As of September 30, 2021, KEPCO’s share capital amounts to W3,209,820 million and KEPCO’s shareholders are as follows:

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

(*) The number of shares held by foreign shareholders are 94,489,519 shares (14.72%) as of August 5, 2021.

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

2. Basis of Preparation

(1) Statement of compliance

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

(2) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statements of financial position:

• financial assets at fair value through profit or loss

• financial assets at fair value through other comprehensive income or loss

• derivative financial instruments are measured at fair value

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

(3) Functional and presentation currency

These consolidated financial statements are presented in Korean won (“Won”), which is also the functional currency of KEPCO and most of the significant operating subsidiaries.

(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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

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 followings are the key assumptions 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.

(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 determines the estimated future taxable income is not sufficient to realize the deferred tax assets recognized.

(iii) Valuations of financial instruments at fair values

The Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(iv) Defined employee benefit liabilities

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

(v) Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of September 30, 2021 and 2020 are W1,282,807 million and W1,234,928 million, respectively.

(vi) Construction contracts

The Group recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Group’s progress towards complete satisfaction of providing the power plant construction, which has been identified as a single performance obligation. 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. Cost incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however, it can also be affected by uncertainties resulting from unexpected future events.

(5) Changes in accounting policies

Changes in accounting standards effective from January 1, 2021 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, 2021, even though the early adoption of these standards is possible.

Amendments to KIFRS 1109 ’Financial Instruments’, KIFRS 1039 ‘Financial Instruments: Recognition and Measurement’, KIFRS 1107 ‘Financial Instruments: Disclosures’, KIFRS 1104 ‘Insurance Contracts’ and KIFRS 1116 ‘Lease’ – Interest Rate Benchmark Reform Phase II

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

• A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

• Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued

• Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

(6) Adoption of cost pass-through tariff system

The Group adopted the cost pass-through tariff system from January 1, 2021 with the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020 and amended the supply contract and related enforcement regulations. The new system is applicable to electricity bills charged from January 1, 2021. The Group believes that the adoption of the aforementioned system has no significant impact on the Group’s accounting policies, including ‘Revenue from Contracts with Customers’.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

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, 2020, except for the changes described in Note 2.(5).

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 chief operating decision makers of the Group including but not limited to 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 arm’s-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 consolidating 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, 2021 and 2020 (Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three and nine-month periods ended September 30, 2021 and 2020, respectively, are as follows:

In millions of won
September 30, 2021
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	16,116,215				44,376,644				390,536				1,198,276				15,725,679				43,178,368				(1,239,374	)			(3,244,427	)			993,314				2,958,418				9,146				26,368				170,806				490,562				9,769				250,162
Electric power generation (Nuclear)			1,850,415				7,301,141				1,817,148				7,215,096				33,267				86,045				(255,867	)			1,101,402				894,964				2,715,856				5,479				16,941				118,839				356,518				(757	)			(11,273	)
Electric power generation (Non-nuclear)			7,572,426				18,309,185				7,150,226				17,324,902				422,200				984,283				488,466				670,202				1,087,777				3,156,984				4,914				14,532				163,125				462,850				34,678				79,429
Plant maintenance & engineering service			602,659				1,848,283				494,521				1,562,767				108,138				285,516				44,990				167,873				30,318				91,217				2,066				6,450				191				619				372				1,253
Others			513,211				1,436,664				340,276				914,442				172,935				522,222				47,096				153,706				38,016				114,142				40,411				118,265				45,829				121,915				—				—
Consolidation adjustments			(10,192,707	)			(28,215,483	)			(10,192,707	)			(28,215,483	)			—				—				(22,002	)			21,412				(25,706	)			(90,077	)			(7,022	)			(20,430	)			(7,652	)			(21,941	)			—				—
		W	16,462,219				45,056,434				—				—				16,462,219				45,056,434				(936,691	)			(1,129,832	)			3,018,683				8,946,540				54,994				162,126				491,138				1,410,523				44,062				319,571
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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won
September 30, 2021
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	114,104,931				4,620,454				5,026,275				63,709,547
Electric power generation (Nuclear)			61,851,535				118,677				1,415,003				35,331,669
Electric power generation (Non-nuclear)			56,189,378				2,235,269				2,423,343				34,260,141
Plant maintenance & engineering service			3,595,558				42,678				66,130				1,079,585
Others			10,577,310				—				450,656				4,824,246
Consolidation adjustments			(39,304,385	)			—				(7,315	)			(1,006,154	)
		W	207,014,327				7,017,078				9,374,092				138,199,034
In millions of won
December 31, 2020
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	113,115,667				4,204,090				6,535,380				59,772,046
Electric power generation (Nuclear)			61,850,865				116,867				2,419,939				35,652,467
Electric power generation (Non-nuclear)			54,531,155				1,807,409				3,758,795				33,292,680
Plant maintenance & engineering service			3,492,571				42,167				141,226				1,061,949
Others			8,923,046				—				577,056				4,039,220
Consolidation adjustments			(38,771,193	)			—				(30,731	)			(1,343,097	)
		W	203,142,111				6,170,533				13,401,665				132,475,265

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

4. Segment, Geographic and Other Information, Continued

(4) Geographic information

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

In millions of won		Revenue from external customers																Non-current assets (*2)
		September 30, 2021								September 30, 2020								September 30, 2021				December 31, 2020
Geographical unit		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Domestic		W	16,142,768				44,003,984				15,376,137				42,870,560				175,512,169				173,673,478
Overseas (*1)			319,451				1,052,450				335,240				1,006,477				3,473,063				2,831,925
		W	16,462,219				45,056,434				15,711,377				43,877,037				178,985,232				176,505,403

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

(5) Information on significant customers

There is no single customer which accounts for 10% or more of the Group’s revenue for the nine-month periods ended September 30, 2021 and 2020.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

5. Classification of Financial Instruments

(1) Classification of financial assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		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	—				—				2,086,505				—				2,086,505
Current financial assets
Current financial assets at fair value through profit or loss			1,355,811				—				—				—				1,355,811
Current financial assets at amortized costs			—				—				14,155				—				14,155
Current derivative assets			58,444				—				—				35,890				94,334
Other financial assets			—				—				1,997,753				—				1,997,753
Trade and other receivables			—				—				7,095,475				—				7,095,475
			1,414,255				—				11,193,888				35,890				12,644,033
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			714,306				—				—				—				714,306
Non-current financial assets at fair value through other comprehensive income			—				438,574				—				—				438,574
Non-current financial assets at amortized costs			—				—				1,212				—				1,212
Non-current derivative assets			361,484				—				—				176,453				537,937
Other financial assets			—				—				1,242,974				—				1,242,974
Trade and other receivables			—				—				1,874,522				—				1,874,522
			1,075,790				438,574				3,118,708				176,453				4,809,525
		W	2,490,045				438,574				14,312,596				212,343				17,453,558

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won		December 31, 2020
		Financial assets at fair value through profit or loss				Financial assets at fair value through other comprehensive income				Financial assets at amortized cost				Derivative assets (applying hedge accounting)				Total
Current assets
Cash and cash equivalents		W	—				—				2,029,584				—				2,029,584
Current financial assets
Current financial assets at fair value through profit or loss			1,196,101				—				—				—				1,196,101
Current financial assets at amortized costs			—				—				13,149				—				13,149
Current derivative assets			18,332				—				—				11,193				29,525
Other financial assets			—				—				1,561,445				—				1,561,445
Trade and other receivables			—				—				7,918,470				—				7,918,470
			1,214,433				—				11,522,648				11,193				12,748,274
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			685,281				—				—				—				685,281
Non-current financial assets at fair value through other comprehensive income			—				358,559				—				—				358,559
Non-current financial assets at amortized costs			—				—				1,273				—				1,273
Non-current derivative assets			92,432				—				—				44,456				136,888
Other financial assets			—				—				1,290,820				—				1,290,820
Trade and other receivables			—				—				1,861,569				—				1,861,569
			777,713				358,559				3,153,662				44,456				4,334,390
		W	1,992,146				358,559				14,676,310				55,649				17,082,664

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		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	—				3,916,246				—				3,916,246
Debt securities			—				9,591,962				—				9,591,962
Derivative liabilities			1,702				—				554				2,256
Trade and other payables			—				6,367,188				—				6,367,188
			1,702				19,875,396				554				19,877,652
Non-current liabilities
Borrowings			—				2,164,257				—				2,164,257
Debt securities			—				59,998,353				—				59,998,353
Derivative liabilities			20,762				—				31,414				52,176
Trade and other payables			—				6,422,921				—				6,422,921
			20,762				68,585,531				31,414				68,637,707
		W	22,464				88,460,927				31,968				88,515,359
In millions of won		December 31, 2020
		Financial liabilities at fair value through profit or loss				Financial liabilities recognized at amortized cost				Derivative liabilities (applying hedge accounting)				Total
Current liabilities
Borrowings		W	—				2,113,181				—				2,113,181
Debt securities			—				8,561,624				—				8,561,624
Derivative liabilities			13,053				—				36,831				49,884
Trade and other payables			—				6,256,521				—				6,256,521
			13,053				16,931,326				36,831				16,981,210
Non-current liabilities
Borrowings			—				3,003,999				—				3,003,999
Debt securities			—				56,045,777				—				56,045,777
Derivative liabilities			144,873				—				170,362				315,235
Trade and other payables			—				6,480,412				—				6,480,412
			144,873				65,530,188				170,362				65,845,423
		W	157,926				82,461,514				207,193				82,826,633

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (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, 2021 and 2020 are as follows:

In millions of won				September 30, 2021								September 30, 2020
				Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Cash and cash equivalents		Interest income		W	2,065				4,463				1,375				7,421
		Gain (loss) on foreign currency transactions and translations			26,626				37,475				(1,417	)			11,528
Financial assets at fair value through profit or loss		Interest income			4,506				13,270				3,946				13,027
		Dividends income			280				1,645				—				—
		Gain (loss) on valuation of financial assets			(1,376	)			(4,072	)			882				9,897
		Gain on disposal of financial assets			345				2,353				196				3,657
		Loss on foreign currency transactions and translations			(1,600	)			—				(107	)			(245	)
Financial assets at fair value through other comprehensive income		Dividends income			2,749				7,527				564				4,649
Financial assets at amortized cost		Interest income			33				396				149				470
		Gain (loss) on foreign currency transactions and translations			2,573				3,311				(682	)			109
Loans		Interest income			4,706				13,379				4,052				12,954
		Gain (loss) on foreign currency transactions and translations			414				724				(191	)			61
Trade and other receivables		Interest income			36,861				111,048				42,420				125,018
		Gain on disposal of financial assets			2,452				2,451				—				—
		Gain (loss) on foreign currency transactions and translations			(1,931	)			9,570				(8,228	)			3,651
Short-term financial instruments		Interest income			2,024				8,025				3,808				20,840
		Gain (loss) on foreign currency transactions and translations			19,543				32,823				(21,431	)			4,018
Long-term financial instruments		Interest income			4,765				11,423				2,754				9,206
		Gain on foreign currency transactions and translations			16				28				—				—
Other financial assets		Interest income			35				122				116				260
Financial liabilities carried at amortized cost		Interest expense of borrowings and debt securities			357,848				969,614				325,202				1,031,705
		Loss on repayment of financial liabilities			—				(10	)			(5	)			(35	)
		Interest expense of trade and other payables			49,733				144,631				53,151				151,139
		Interest expense of others			83,557				296,278				104,899				321,281
		Other finance income			57				1,048				364				651
		Other finance expenses			647				1,860				—				—
		Gain (loss) on foreign currency transactions and translations			(656,050	)			(1,140,974	)			315,706				(213,417	)
Derivative assets (trading)		Gain (loss) on valuation of derivatives			253,594				466,486				(82,657	)			163,434
		Gain (loss) on transaction of derivatives			26,324				33,796				(332	)			14,665
Derivatives (applying hedge accounting)		Gain (loss) on valuation of derivatives (profit or loss)			212,445				362,698				(98,921	)			25,216
		Gain (loss) on valuation of derivatives (equity, before tax)			(97,858	)			(36,186	)			17,481				95,178
		Gain on transaction of derivatives			17,592				38,146				2,583				70,397

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

6. Restricted Deposits

Restricted deposits as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won				September 30, 2021				December 31, 2020
Cash and cash equivalents		Escrow accounts		W	929				544
		Deposits for government project and others			20,501				5,066
		Collateral provided for borrowings			232,956				117,747
		Collateral provided for lawsuit			42				42
		Deposits for transmission regional support program			8,968				5,469
Short-term financial instruments		Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others			114,000				109,000
Non-current financial assets at fair value through profit or loss		Decommissioning costs of nuclear power plants			581,281				577,481
Long-term financial instruments		Escrow accounts			70				76
		Guarantee deposits for banking accounts at oversea branches			333				306
		Collateral provided for borrowings			11,745				11,745
		Decommissioning costs of nuclear power plants			264,609				258,282
		Funds for developing small and medium enterprises (*)			10,000				210,000
				W	1,245,434				1,295,758

(*) As of December 31, 2020, it consisted of the deposits for small and medium enterprises at the Industrial Bank of Korea (IBK) and others for construction of Bitgaram Energy Valley and support for high potential businesses amounting to W 200,000, and the deposits were returned during the nine-month period ended September 30, 2021.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

7. Cash and Cash Equivalents

Cash and cash equivalents as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Cash		W	6,607				871
Other demand deposits			1,461,577				1,291,058
Short-term deposits classified as cash equivalents			483,741				432,263
Short-term investments classified as cash equivalents			134,580				305,392
		W	2,086,505				2,029,584

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	6,537,476				(211,623	)			—				6,325,853
Other receivables			806,125				(35,586	)			(917	)			769,622
			7,343,601				(247,209	)			(917	)			7,095,475
Non-current assets
Trade receivables			187,522				(342	)			—				187,180
Other receivables			1,747,933				(56,588	)			(4,003	)			1,687,342
			1,935,455				(56,930	)			(4,003	)			1,874,522
		W	9,279,056				(304,139	)			(4,920	)			8,969,997
In millions of won		December 31, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	7,370,923				(208,184	)			—				7,162,739
Other receivables			799,598				(42,332	)			(1,535	)			755,731
			8,170,521				(250,516	)			(1,535	)			7,918,470
Non-current assets
Trade receivables			227,261				(806	)			—				226,455
Other receivables			1,728,486				(90,047	)			(3,325	)			1,635,114
			1,955,747				(90,853	)			(3,325	)			1,861,569
		W	10,126,268				(341,369	)			(4,860	)			9,780,039

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	410,174				(34,120	)			—				376,054
Accrued income			73,267				—				—				73,267
Deposits			232,412				—				(917	)			231,495
Finance lease receivables (*1)			58,526				(173	)			—				58,353
Others			31,746				(1,293	)			—				30,453
			806,125				(35,586	)			(917	)			769,622
Non-current assets
Non-trade receivables			97,060				(48,893	)			—				48,167
Accrued income			1,422				—				—				1,422
Deposits			414,591				—				(4,003	)			410,588
Finance lease receivables (*2)			1,142,954				(600	)			—				1,142,354
Others			91,906				(7,095	)			—				84,811
			1,747,933				(56,588	)			(4,003	)			1,687,342
		W	2,554,058				(92,174	)			(4,920	)			2,456,964

(*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W113,215 million.

(*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,111,374 million.

In millions of won		December 31, 2020
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	441,031				(37,062	)			—				403,969
Accrued income			38,956				—				—				38,956
Deposits			239,011				—				(1,535	)			237,476
Finance lease receivables (*1)			57,084				(365	)			—				56,719
Others			23,516				(4,905	)			—				18,611
			799,598				(42,332	)			(1,535	)			755,731
Non-current assets
Non-trade receivables			215,136				(80,451	)			—				134,685
Accrued income			834				—				—				834
Deposits			364,855				—				(3,325	)			361,530
Finance lease receivables (*2)			1,065,982				(625	)			—				1,065,357
Others			81,679				(8,971	)			—				72,708
			1,728,486				(90,047	)			(3,325	)			1,635,114
		W	2,528,084				(132,379	)			(4,860	)			2,390,845

(*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W105,127 million.

(*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,087,559 million.

(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. However 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Trade receivables: (not overdue)		W	6,391,900				7,274,773
Trade receivables: (impairment reviewed)			333,098				323,411
Less than 60 days			3,446				3,505
60 ~ 90 days			27,706				28,729
90 ~ 120 days			18,844				10,687
120 days ~ 1 year			48,787				34,036
Over 1 year			234,315				246,454
			6,724,998				7,598,184
Less: allowance for doubtful accounts			(211,965	)			(208,990	)
		W	6,513,033				7,389,194

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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Trade receivables				Other receivables				Trade receivables				Other receivables
Beginning balance		W	208,990				132,379				212,759				114,155
Bad debts expense			16,282				11,046				24,021				27,329
Write-off			(12,539	)			(34,127	)			(20,332	)			(1,910	)
Reversal			(986	)			(98	)			(3,373	)			(2,464	)
Others			218				(17,026	)			(4,085	)			(4,731	)
Ending balance		W	211,965				92,174				208,990				132,379

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

9. Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		W	1,228				201,132				1,313				155,122
Cooperative			—				5,790				—				5,692
Other (*)			1,354,583				255,548				1,194,788				312,401
			1,355,811				462,470				1,196,101				473,215
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—				251,836				—				212,066
		W	1,355,811				714,306				1,196,101				685,281

(*) ‘Other’ includes MMT, etc.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

10. Financial Assets at Fair Value through Other Comprehensive Income

(1) Changes in financial assets at fair value through other comprehensive income for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Acquisition				Disposal				Valuation				Others				Ending balance
Equity securities
Listed		W	194,669				1,500				(8,208	)			78,508				5,137				271,606
Unlisted			163,890				3,376				(13	)			(344	)			(441	)			166,468
			358,559				4,876				(8,221	)			78,164				4,696				438,074
Debt securities
Corporate bond			—				500				—				—				—				500
			358,559				5,376				(8,221	)			78,164				4,696				438,574
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			358,559				5,376				(8,221	)			78,164				4,696				438,574

In millions of won		December 31, 2020
		Beginning balance				Acquisition				Disposal				Valuation				Others				Ending balance
Listed		W	201,201				—				(4	)			(7,809	)			1,281				194,669
Unlisted			177,969				2,900				(1	)			(23,128	)			6,150				163,890
			379,170				2,900				(5	)			(30,937	)			7,431				358,559
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	)			(30,937	)			7,431				358,559

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

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

(2) Financial assets at fair value through other comprehensive income as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Shares				Ownership				Acquisition cost				Book value				Fair value
Equity securities
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				99,845				99,845
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				107				107
SM Korea Line Corp.			180				0.00	%			1				1				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				44				44
PAN Ocean Co., Ltd.			1,492				0.00	%			14				11				11
STX Heavy Industries Co., Ltd.			7,419				0.03	%			107				39				39
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				70,034				70,034
Denison Mines Corp.			58,284,000				9.76	%			84,134				99,583				99,583
Fission Uranium Corp.			100,000				0.02	%			41				76				76
SangSangin Industry Co., Ltd.			5,831				0.01	%			38				6				6
Vitzrosys Co., Ltd.			399				0.00	%			2				2				2
EMnI Co., Ltd.			1,257				0.01	%			25				2				2
Vissem electronics, Co., Ltd.			229				0.00	%			11				1				1
KC Industry Co., Ltd.			139				0.00	%			6				1				1
Ihsung CNI Co., Ltd.			142,860				4.81	%			1,500				1,786				1,786
Aone Alform Co., Ltd.			2,672				0.08	%			19				66				66
											324,790				271,606				271,606
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				143,765				143,765
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,657				2,657
SGC Greenpower			580,000				5.00	%			2,900				2,900				2,900
Le Soleil KHNP Co., Ltd.			724,182				19.00	%			1,376				1,376				1,376
Ihsung CNI Co., Ltd.			127,660				4.30	%			1,500				1,500				1,500
H Robotics Co., Ltd.			422,832				4.55	%			1,000				1,000				1,000
Good Tcells Co., Ltd.			11,364				0.34	%			500				500				500
IPSbio Co., Ltd.			1,975				3.13	%			1,000				1,000				1,000
Nine B Co., Ltd.			5,000				4.96	%			1,000				1,000				1,000
Orano Expansion			5,742,405				4.70	%			1				1				1
Hwan Young Steel Co., Ltd. and others (*3)											12,747				9,615				9,615
											277,631				166,468				166,468
Debt securities
Aron Flying Ship Co., Ltd. (*1)											500				500				500
										W	602,921				438,574				438,574

(*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, 2021.

(*3) Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 343 companies including Hwan Young Steel Co., Ltd.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

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

(2) Financial assets at fair value through other comprehensive income as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won		December 31, 2020
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				91,356				91,356
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				107				107
SM Korea Line Corp.			180				0.00	%			1				1				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				49				49
PAN Ocean Co., Ltd.			1,492				0.00	%			14				7				7
Dongbu Corp.			955				0.02	%			12				13				13
KSP Co., Ltd.			22,539				0.08	%			53				34				34
STX Heavy Industries Co., Ltd.			7,419				0.12	%			107				29				29
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				53,127				53,127
Energy Fuels Inc.			1,711,814				1.31	%			16,819				7,888				7,888
Bunji Corporation Limited			99,763				0.07	%			18,445				—				—
Denison Mines Corp.			58,284,000				9.76	%			84,134				41,776				41,776
Fission 3.0			75,000				0.05	%			—				6				6
Fission Uranium Corp.			800,000				0.16	%			785				266				266
SangSangin Industry Co., Ltd.			5,831				0.02	%			38				4				4
Vitzrosys Co., Ltd.			399				0.00	%			2				2				2
EMnI Co., Ltd.			1,257				0.00	%			25				2				2
											359,327				194,669				194,669
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				143,765				143,765
SGC Energy Co., Ltd.			580,000				5.00	%			2,900				2,900				2,900
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,440				2,440
Seobu Highway Solar Co., Ltd.			19,460				2.86	%			195				195				195
Dongbu Highway Solar Co., Ltd.			19,020				4.99	%			190				190				190
H Robotics Co., Ltd.			9,192				4.55	%			1,000				1,000				1,000
Good Tcells Co., Ltd.			11,364				0.34	%			500				500				500
Ihsung CNI Co., Ltd.			13,526				9.11	%			3,000				3,000				3,000
Hwan Young Steel Co., Ltd. and others (*3)											12,104				8,746				8,746
											275,496				163,890				163,890
										W	634,823				358,559				358,559

(*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 2020.

(*3) Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 283 companies including Hwan Young Steel Co., Ltd.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

11. Financial Assets at Amortized Cost

Financial assets at amortized cost as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,367				—				—				—				1,367
Others			14,000				—				—				—				14,000
		W	15,367				—				—				—				15,367
Current		W	14,155				—				—				—				14,155
Non-current			1,212				—				—				—				1,212
In millions of won		December 31, 2020
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,422				—				—				—				1,422
Others			13,000				—				—				—				13,000
		W	14,422				—				—				—				14,422
Current		W	13,149				—				—				—				13,149
Non-current			1,273				—				—				—				1,273

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

12. Derivatives

(1) Derivatives as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Derivative assets
Currency forward		W	5,329				7,156				18,332				—
Currency swap			88,245				516,501				11,193				127,386
Interest rate swap			760				14,280				—				9,502
		W	94,334				537,937				29,525				136,888
Derivative liabilities
Currency forward		W	38				—				10,014				4,977
Currency swap			—				301				36,088				232,669
Interest rate swap			2,218				40,654				3,782				66,451
Others (*1,2,3)			—				11,221				—				11,138
		W	2,256				52,176				49,884				315,235

(*1) 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’.

(*2) The Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and 4 other third party investors, and recognized its fair value as other derivative liabilities.

(*3) The Group has an obligation to purchase the shares of Hyundai Green Power Co., Ltd., an associate of the Group from financial investors, and the fair value of the obligation is recorded in ‘Others’.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of September 30, 2021 are as follows:

In millions of won and thousands of USD except contract exchange rate information

Counterparty		Contract date				Maturity date				Contract amounts								Contract exchange rate (in won)
										Pay				Receive
Korea Development Bank			2021.04.01				2021.10.01			W	56,599				USD 50,178			W	1,127.95
Korea Development Bank			2021.09.27				2022.01.07				59,049				USD 50,050				1,179.80
Kookmin Bank			2021.09.23				2021.10.14				11,821				USD 10,000				1,182.12
Woori bank			2021.09.23				2021.10.19				5,901				USD 5,000				1,180.25
Mizuho Bank			2021.09.29				2021.10.05				5,926				USD 5,000				1,185.20
Standard Chartered			2021.09.23				2021.10.20				5,884				USD 5,000				1,176.80
Nonghyup Bank			2021.09.27				2021.10.21				5,878				USD 5,000				1,175.60
Kookmin Bank			2021.09.30				2021.10.22				11,845				USD 10,000				1,184.50
Morgan Stanley			2021.09.30				2021.10.25				5,918				USD 5,000				1,183.60
Shinhan Bank			2021.09.29				2021.10.12				12,395				USD 10,460				1,185.00
Korea Development Bank			2021.09.07				2021.10.05				4,054				USD 3,500				1,158.42
HSBC			2021.09.23				2021.10.05				9,455				USD 8,000				1,181.90
HSBC			2021.09.30				2021.10.15				10,670				USD 9,000				1,185.55
HSBC			2021.09.30				2021.10.05				28,447				USD 24,000				1,185.30
Nonghyup Bank			2021.09.23				2021.10.21				11,785				USD 10,000				1,178.45
MUFG			2021.09.27				2021.10.25				11,751				USD 10,000				1,175.10
MUFG			2021.09.29				2021.10.26				11,857				USD 10,000				1,185.65
HSBC			2021.09.30				2021.10.27				11,846				USD 10,000				1,184.60
HSBC			2021.09.14				2021.10.13				7,490				USD 6,400				1,170.30
Mizuho Bank			2021.09.27				2021.10.25				5,901				USD 5,000				1,180.12
SMBC			2021.09.27				2021.10.26				13,763				USD 11,700				1,177.00
Deutsche Bank			2021.09.27				2021.10.27				5,887				USD 5,000				1,177.30
Woori bank			2021.09.27				2021.10.27				7,056				USD 6,000				1,176.05
Busan Bank			2021.09.16				2021.10.14				14,604				USD 12,500				1,168.30
JP Morgan			2021.09.24				2021.10.26				11,762				USD 10,000				1,176.22
Hana Bank			2021.09.24				2021.10.22				3,287				USD 2,800				1,174.05
HSBC			2020.10.19				2024.10.29				140,913				USD 125,000				1,127.30
Standard Chartered			2021.08.23				2021.10.01				5,703				USD 4,846				1,176.80
HSBC			2021.08.26				2021.10.08				7,018				USD 6,000				1,169.61
Woori bank			2021.08.30				2021.10.08				5,188				USD 4,452				1,165.50
Woori bank			2021.08.31				2021.10.08				3,497				USD 3,000				1,165.70
MUFG			2021.09.09				2021.10.15				5,848				USD 5,000				1,169.50
Standard Chartered			2021.09.09				2021.10.15				11,710				USD 10,000				1,171.00
HSBC			2021.09.09				2021.10.15				5,849				USD 5,000				1,169.74
HSBC			2021.09.09				2021.10.15				5,844				USD 5,000				1,168.74
HSBC			2021.09.15				2021.10.22				3,503				USD 3,000				1,167.65
MUFG			2021.09.27				2021.10.29				11,775				USD 10,000				1,177.45
HSBC			2021.09.27				2021.10.29				11,762				USD 10,000				1,176.15
Standard Chartered			2021.09.27				2021.10.29				11,752				USD 10,000				1,175.20
Shinhan Bank			2021.09.27				2021.10.29				5,885				USD 5,000				1,177.00
Woori bank			2021.09.28				2021.11.05				3,552				USD 3,000				1,183.90
Woori bank			2021.09.29				2021.11.05				5,937				USD 5,000				1,187.35
Woori bank			2021.09.29				2021.11.05				5,933				USD 5,000				1,186.65
Shinhan Bank			2021.09.29				2021.11.05				5,925				USD 5,000				1,184.90
Woori bank			2021.09.29				2021.11.05				4,732				USD 4,000				1,182.95

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of September 30, 2021 are as follows:

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

Counterparty		Contract year				Contract amount								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
Kookmin Bank			2020~2026				76,355				USD 70,445			5.83%		6.00%			1,083.90
Woori Bank			2021~2026				118,170				USD 100,000			1.11%		1.13%			1,181.70
Korea Development Bank			2021~2026				118,170				USD 100,000			1.11%		1.13%			1,181.70
Hana Bank			2021~2026				118,170				USD 100,000			1.11%		1.13%			1,181.70
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
Woori Bank			2021~2026				222,800				USD 200,000			0.93%		1.25%			1,114.00
Shinhan Bank			2021~2026				111,400				USD 100,000			0.92%		1.25%			1,114.00
Korea Development Bank			2021~2026				111,400				USD 100,000			0.93%		1.25%			1,114.00
Nonghyup Bank			2021~2026				111,400				USD 100,000			0.93%		1.25%			1,114.00
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, 2021 and 2020 (Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of September 30, 2021 are as follows:

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

Counterparty		Contract year				Contract amount								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
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
Kookmin Bank			2021~2026				114,230				USD 100,000			1.27%		1.25%			1,142.30
Korea Development Bank			2021~2026				114,230				USD 100,000			1.27%		1.25%			1,142.30
Hana Bank			2021~2026				114,230				USD 100,000			1.27%		1.25%			1,142.30
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
Woori Bank			2021~2026				220,600				USD 200,000			0.47%		0.75%			1,103.00
Shinhan Bank			2021~2026				220,600				USD 200,000			0.47%		0.75%			1,103.00
Hana Bank			2021~2026				55,150				USD 50,000			0.48%		0.75%			1,103.00
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, 2021 and 2020 (Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of September 30, 2021 are as follows:

In millions of won
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 (*1)		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		2017~2032			52,457			3M Libor + 2.22%		2.60%
Nomura		2017~2032			59,423			3M Libor + 2.24%		2.62%
Nomura (*2)		2021~2041			30,000			1.84%		2.60%
Nomura (*3)		2021~2041			50,000			1.87%		2.38%

(*1) 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.

(*2) 1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(*3) 1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(6) Interest rate swap contracts which are designated as hedging instruments as of September 30, 2021 are as follows:

In thousands of USD
Counterparty		Contract year		Contract amount				Contract interest rate per annum
								Pay		Receive
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
BNP Paribas		2009~2027			USD 64,961			4.16%		6M USD Libor
KFW		2009~2027			USD 64,961			4.16%		6M USD Libor
Export-Import Bank of Korea		2016~2036			USD 73,386			3.00%		6M USD Libor

(7) Gain and loss on valuation and transaction of derivatives for the three and nine-month periods ended September 30, 2021 and 2020 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):

In millions of won		Net income effects of valuation gain (loss)																Net income effects of transaction gain (loss)																Accumulated other comprehensive income (loss) (*)
		September 30, 2021								September 30, 2020								September 30, 2021								September 30, 2020								September 30, 2021								September 30, 2020
		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	9,951				38,357				(15,981	)			14,990				20,902				28,534				(3,272	)			6,856				—				—				—				—
Currency swap			445,178				765,414				(170,967	)			187,295				26,078				53,315				10,777				86,974				(100,369	)			(45,284	)			17,025				80,999
Interest rate swap			10,910				25,413				5,370				(13,635	)			(3,064	)			(9,906	)			(5,254	)			(8,768	)			2,511				9,097				456				14,179
		W	466,039				829,184				(181,578	)			188,650				43,916				71,943				2,251				85,062				(97,858	)			(36,187	)			17,481				95,178

(*) For the three and nine-month period ended September 30, 2021, the net loss on valuation of derivatives applying cash flow hedge accounting of W15,789 million, net of tax, is included in other comprehensive income (loss).

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

13. Other Financial Assets

(1) Other financial assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Loans		W	91,147				881,680				78,806				762,555
Less: Allowance for doubtful accounts			—				(21,684	)			(1	)			(20,266	)
Less: Present value discount			(857	)			(30,797	)			(842	)			(30,090	)
			90,290				829,199				77,963				712,199
Long-term / short-term financial instruments			1,907,463				413,775				1,483,482				578,621
		W	1,997,753				1,242,974				1,561,445				1,290,820

(2) Loans as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Face value				Allowance for doubtful accounts				Present value discount				Carrying value
Short-term loans
Loans for tuition		W	29,427				—				(857	)			28,570
Loans for housing			24,730				—				—				24,730
Other loans			36,990				—				—				36,990
			91,147				—				(857	)			90,290
Long-term loans
Loans for tuition			438,869				(9,091	)			(30,797	)			398,981
Loans for housing			278,088				—				—				278,088
Loans for related parties			160,359				(12,593	)			—				147,766
Fisheries loan			201				—				—				201
Other loans			4,163				—				—				4,163
			881,680				(21,684	)			(30,797	)			829,199
		W	972,827				(21,684	)			(31,654	)			919,489

In millions of won		December 31, 2020
		Face value				Allowance for doubtful accounts				Present value discount				Carrying value
Short-term loans
Loans for tuition		W	33,864				—				(842	)			33,022
Loans for housing			21,988				—				—				21,988
Fisheries loan			3,816				—				—				3,816
Other loans			19,138				(1	)			—				19,137
			78,806				(1	)			(842	)			77,963
Long-term loans
Loans for tuition			420,274				(9,091	)			(30,090	)			381,093
Loans for housing			237,100				—				—				237,100
Loans for related parties			50,682				(1,047	)			—				49,635
Other loans			54,499				(10,128	)			—				44,371
			762,555				(20,266	)			(30,090	)			712,199
		W	841,361				(20,267	)			(30,932	)			790,162

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	20,267				15,094
Bad debts expense			—				5,173
Others			1,417				—
Ending balance		W	21,684				20,267

(4) Long-term and short-term financial instruments as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Time deposits		W	1,609,844				115,321				996,265				160,433
CP			15,000				—				—				—
CD			30,000				—				50,000				—
RP			20,000				—				203,008				—
Others			232,619				298,454				234,209				418,188
		W	1,907,463				413,775				1,483,482				578,621

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

14. Inventories

Inventories as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,583,509				(885	)			3,582,624
Merchandises			593				—				593
Work-in-progress			161,794				—				161,794
Finished goods			89,189				—				89,189
Supplies			2,497,483				(3,867	)			2,493,616
Inventories-in-transit			1,136,147				—				1,136,147
Other inventories			13,153				—				13,153
		W	7,481,868				(4,752	)			7,477,116
In millions of won		December 31, 2020
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,602,073				(885	)			3,601,188
Merchandises			234				—				234
Work-in-progress			148,067				—				148,067
Finished goods			42,070				—				42,070
Supplies			2,280,682				(7,892	)			2,272,790
Inventories-in-transit			666,967				—				666,967
Other inventories			11,593				—				11,593
		W	6,751,686				(8,777	)			6,742,909

The reversals of the allowance for loss on inventory valuation due to increase in the net realizable value of inventories deducted from cost of sales for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 were W10,164 million and W2,020 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 were W6,139 million and W4,998 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

15. Non-Financial Assets

Non-financial assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Advanced payments		W	206,259				129,503				169,737				32,693
Prepaid expenses			564,462				157,949				216,073				140,730
Others (*)			406,882				301,092				634,348				72,969
		W	1,177,603				588,544				1,020,158				246,392
(*)   Details of others as of September 30, 2021 and December 31, 2020 are as follows:
In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Greenhouse gas emissions rights		W	259,787				—				357,355				—
Other quick assets			147,095				301,092				276,993				72,969
		W	406,882				301,092				634,348				72,969

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of September 30, 2021 and December 31, 2020 are as follows:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2021				December 31, 2020
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)		Engineering and construction for utility plant and others		KOREA			65.77	%			65.77	%
KEPCO Plant Service & Engineering Co., Ltd.		Utility plant maintenance and others		KOREA			51.00	%			51.00	%
KEPCO Nuclear Fuel Co., Ltd.		Nuclear fuel		KOREA			96.36	%			96.36	%
KEPCO KDN Co., Ltd.		Electric power information technology and others		KOREA			100.00	%			100.00	%
KEPCO International HongKong Ltd.		Holding company		HONG KONG			100.00	%			100.00	%
KEPCO International Philippines Inc.		Holding company		PHILIPPINES			100.00	%			100.00	%
KEPCO Gansu International Ltd.		Holding company		HONG KONG			100.00	%			100.00	%
KEPCO Philippines Holdings Inc.		Holding company		PHILIPPINES			100.00	%			100.00	%
KEPCO Philippines Corporation		Operation of utility plant		PHILIPPINES			100.00	%			100.00	%
KEPCO Ilijan Corporation		Construction and operation of utility plant		PHILIPPINES			51.00	%			51.00	%
KEPCO Lebanon SARL		Operation of utility plant		LEBANON			100.00	%			100.00	%
KEPCO Neimenggu International Ltd.		Holding company		HONG KONG			100.00	%			100.00	%
KEPCO Shanxi International Ltd.		Holding company		HONG KONG			100.00	%			100.00	%
KOMIPO Global Pte Ltd.		Holding company		SINGAPORE			100.00	%			100.00	%
KEPCO Netherlands B.V.		Holding company		NETHERLANDS			100.00	%			100.00	%
Korea Imouraren Uranium Investment Corp.		Holding company		FRANCE			100.00	%			100.00	%
KEPCO Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
KOSEP Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
KOMIPO Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
KOWEPO Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
KOSPO Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
KEPCO Middle East Holding Company		Holding company		BAHRAIN			100.00	%			100.00	%
Qatrana Electric Power Company		Construction and operation of utility plant		JORDAN			80.00	%			80.00	%
KHNP Canada Energy Ltd.		Holding company		CANADA			100.00	%			100.00	%
KEPCO Bylong Australia Pty., Ltd.		Resources development		AUSTRALIA			100.00	%			100.00	%
Korea Waterbury Uranium Limited Partnership		Resources development		CANADA			80.00	%			80.00	%
KEPCO Holdings de Mexico		Holding company		MEXICO			100.00	%			100.00	%
KST Electric Power Company, S.A.P.I. de C.V.		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 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	%
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	%
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	%

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of September 30, 2021 and December 31, 2020 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2021				December 31, 2020
KOSEP Material Co., Ltd.		Recycling fly ashes		KOREA			86.22	%			86.22	%
Commerce and Industry Energy Co., Ltd. (*4)		RDF power generation		KOREA			85.03	%			85.03	%
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	%
Hee mang 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	%
Chitose Solar Power Plant LLC		Power generation		JAPAN			65.00	%			80.10	%
KEPCO Energy Solution Co., Ltd.		Energy service		KOREA			100.00	%			100.00	%
KEPCO Solar Co., Ltd.		Power generation		KOREA			100.00	%			100.00	%
KOSPO Power Services Ltda.		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 (*5)		Holding company		USA			100.00	%			100.00	%
Mangilao Investment LLC		Holding company		USA			100.00	%			100.00	%
KEPCO Mangilao Solar, LLC		Power generation		USA			100.00	%			100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.		Power generation		KOREA			79.56	%			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	%
BSK E-New Industry Fund X		Holding company		KOREA			66.80	%			66.80	%
PT. Korea Energy Indonesia		Utility plant maintenance and others		INDONESIA			95.00	%			95.00	%
KOLAT SpA		Utility plant maintenance and others		CHILE			100.00	%			100.00	%
KEPCO California, LLC		Holding company		USA			100.00	%			100.00	%
KEPCO Mojave Holdings, LLC		Holding company		USA			100.00	%			100.00	%
Incheon Fuel Cell Co., Ltd.		Power generation		KOREA			60.00	%			60.00	%
KOEN Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
KOMIPO Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
KOWEPO Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
KOSPO Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
EWP Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
PT. KOMIPO Energy Indonesia		Utility plant maintenance and others		INDONESIA			95.00	%			95.00	%
KNF Partners Co., Ltd.		Facility maintenance		KOREA			100.00	%			100.00	%
KOSPO USA Inc.		Holding company		USA			100.00	%			100.00	%
Nambu USA LLC		Holding company		USA			100.00	%			100.00	%
Tamra Offshore Wind Power Co., Ltd.		Power generation		KOREA			63.00	%			63.00	%
KEPCO MCS Co., Ltd.		Electric meter reading and others		KOREA			100.00	%			100.00	%
KEPCO FMS Co., Ltd.		Security service and others		KOREA			100.00	%			100.00	%
Firstkeepers Co., Ltd.		Facility maintenance		KOREA			100.00	%			100.00	%
Secutec Co., Ltd.		Security service		KOREA			100.00	%			100.00	%
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 and service		KOREA			100.00	%			100.00	%
KOAK Power Limited		Hydro power facility maintenance		PAKISTAN			100.00	%			100.00	%
KOMIPO Europe B.V.		Holding company		NETHERLANDS			100.00	%			100.00	%
Haenanum Energy Fund		Holding company		KOREA			99.64	%			99.64	%

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of September 30, 2021 and December 31, 2020 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						September 30, 2021				December 31, 2020
Paju Ecoenergy Co., Ltd.		Power generation		KOREA			89.00	%			89.00	%
Guam Ukudu Power LLC		Power generation		USA			100.00	%			100.00	%
TS Energy No. 25 Co., Ltd.		Power generation		KOREA			90.00	%			90.00	%
KPS Partners Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
KEPCO E&C Service Co., Ltd.		Facility maintenance and service		KOREA			100.00	%			100.00	%
Moha solar Co., Ltd.		Power generation		KOREA			100.00	%			100.00	%
Ogiri Solar Power Co., Ltd.		Power generation		KOREA			70.00	%			70.00	%
KHNP USA LLC		Holding company		USA			100.00	%			100.00	%
KOMIPO Vanphong Power Service LLC		Utility plant maintenance and others		VIETNAM			100.00	%			100.00	%
Energy Innovation Fund I		Holding company		KOREA			71.91	%			71.91	%
KHNP Chile SpA		Holding company		CHILE			100.00	%			—
Yeong Yang Apollon Photovoltaic Co., Ltd.		Power generation		KOREA			100.00	%			—
Yeong Yang Corporation Co., Ltd.		Power generation		KOREA			100.00	%			—
SolarVader Co., Ltd.		Power generation		KOREA			100.00	%			—
Yeong Yang Innovation Co., Ltd.		Power generation		KOREA			100.00	%			—
Yeong Yang Horus Photovoltaic Co., Ltd.		Power generation		KOREA			100.00	%			—
Yeong Yang Solar Management Co., Ltd.		Power generation		KOREA			100.00	%			—
LSG Hydro Power Limited		Holding company		PAKISTAN			99.80	%			—
KOEN Bio Co., Ltd.		Wood pellet utilization business		KOREA			70.00	%			—
KOMIPO Energy Solution America, LLC		Holding company		USA			100.00	%			—
Elara Investment Holdings, LLC (*7)		Holding company		USA			0.10	%			—
Elara Equity Holdings, LLC		Holding company		USA			51.22	%			—
Elara Class B Holdings, LLC		Holding company		USA			100.00	%			—
Elara Class B Member, LLC		Holding company		USA			100.00	%			—
Elara Development Holdings, LLC		Holding company		USA			100.00	%			—
Elara Development, LLC		Holding company		USA			100.00	%			—
Elara Energy Holdings, LLC		Holding company		USA			100.00	%			—
Elara Energy Project, LLC		Power generation		USA			100.00	%			—
KOMIPO Iberian Solar Group, S.L.U.		Holding company		SPAIN			100.00	%			—
Jeongam Wind Power Co., Ltd.		Power generation		KOREA			80.00	%			—
KOWEPO Europe B.V.		Holding company		NETHERLANDS			100.00	%			—
CVS Equity Holdings, LLC		Holding company		USA			100.00	%			—
CVS Class B Holdings, LLC		Holding company		USA			100.00	%			—
CVS Development Holdings, LLC		Holding company		USA			100.00	%			—
CVS Development, LLC		Holding company		USA			100.00	%			—
CVS Class B Member, LLC		Holding company		USA			100.00	%			—
CVS Energy Holdings, LLC		Holding company		USA			100.00	%			—
Concho Valley Energy, LLC		Holding company		USA			100.00	%			—
Concho Valley Solar, LLC		Power generation		USA			100.00	%			—

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

(*2) The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group obtained the majority of the voting power through the shareholders’ agreement.

(*3) As of 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 the entity 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 the entity by virtue of the right to nominate the CEO and key management members.

(*7) The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group has control over the entity by virtue of the right to nominate all 3 members of the board of directors under the shareholders’ agreement.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(2) Subsidiaries newly included in and excluded from consolidation for the nine-month period ended September 30, 2021 are as follows:

Subsidiaries included in consolidation during the nine-month period ended September 30, 2021.

Subsidiaries		Reason
KHNP Chile SpA		Newly established
Yeong Yang Apollon Photovoltaic Co., Ltd.		New investment
Yeong Yang Corporation Co., Ltd.		New investment
SolarVader Co., Ltd.		New investment
Yeong Yang Innovation Co., Ltd.		New investment
Yeong Yang Horus Photovoltaic Co., Ltd.		New investment
Yeong Yang Solar Management Co., Ltd.		New investment
LSG Hydro Power Limited		Newly established
KOEN Bio Co., Ltd.		Newly established
KOMIPO Energy Solution America, LLC		Newly established
Elara Investment Holdings, LLC		Newly established
Elara Equity Holdings, LLC		Newly established
Elara Class B Holdings, LLC		Newly established
Elara Class B Member, LLC		Newly established
Elara Development Holdings, LLC		Newly established
Elara Development, LLC		Newly established
Elara Energy Holdings, LLC		Newly established
Elara Energy Project, LLC		New investment
KOMIPO Iberian Solar Group, S.L.U.		New investment
Prime Swedish Holding AB		Newly established
Jeongam Wind Power Co., Ltd.		Change in the scope of consolidation
KOWEPO Europe B.V.		Newly established
CVS Equity Holdings, LLC		Newly established
CVS Class B Holdings, LLC		Newly established
CVS Development Holdings, LLC		Newly established
CVS Development, LLC		Newly established
CVS Class B Member, LLC		Newly established
CVS Energy Holdings, LLC		Newly established
Concho Valley Energy, LLC		Newly established
Concho Valley Solar, LLC		New investment

Subsidiaries excluded from consolidation during the nine-month period ended September 30, 2021.

Subsidiaries		Reason
DG Fairhaven Power, LLC		Disposal
VI Carbon Professional Private Special Asset Investment Trust 1		Liquidation
Prime Swedish Holding AB		Change in the scope of consolidation
KOSEP USA, Inc.		Liquidation

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won
September 30, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Korea Hydro & Nuclear Power Co., Ltd.		W	61,861,369				35,331,669				7,301,141				581,495
Korea South-East Power Co., Ltd.			11,133,978				6,145,773				3,552,468				(46,286	)
Korea Midland Power Co., Ltd.			13,515,704				9,662,137				3,690,143				54,762
Korea Western Power Co., Ltd.			10,788,079				6,902,703				3,553,719				(7,315	)
Korea Southern Power Co., Ltd.			11,013,726				6,622,998				4,038,639				10,424
Korea East-West Power Co., Ltd.			9,749,067				4,926,529				3,474,216				79,325
KEPCO Engineering & Construction Company, Inc.			679,500				185,709				243,786				217
KEPCO Plant Service & Engineering Co., Ltd.			1,405,728				294,807				997,927				101,857
KEPCO Nuclear Fuel Co., Ltd.			868,479				434,077				171,058				28,877
KEPCO KDN Co., Ltd.			642,751				164,992				435,512				17,668
KEPCO International HongKong Ltd.			131,678				—				—				724
KEPCO International Philippines Inc.			153,171				228				—				7,887
KEPCO Gansu International Ltd.			7,149				559				—				(23	)
KEPCO Philippines Holdings Inc.			169,606				54				—				37,413
KEPCO Philippines Corporation			6,158				16				—				(48	)
KEPCO Ilijan Corporation			337,408				36,859				46,110				9,568
KEPCO Lebanon SARL			1,756				9,788				—				(59	)
KEPCO Neimenggu International Ltd.			237,440				2,332				—				2,596
KEPCO Shanxi International Ltd.			552,146				206,772				—				5,380
KOMIPO Global Pte Ltd.			299,763				571				—				10,408
KEPCO Netherlands B.V.			129,091				330				—				1,065
Korea Imouraren Uranium Investment Corp.			14,232				51				—				(24	)
KEPCO Australia Pty., Ltd.			473				11				—				21
KOSEP Australia Pty., Ltd.			39,196				3,959				12,857				4,616
KOMIPO Australia Pty., Ltd.			48,447				4,039				12,857				3,957
KOWEPO Australia Pty., Ltd.			49,271				3,564				12,857				4,615
KOSPO Australia Pty., Ltd.			41,917				3,295				12,857				2,468
KEPCO Middle East Holding Company			100,640				88,653				—				(1,082	)
Qatrana Electric Power Company			498,987				292,017				15,891				13,927
KHNP Canada Energy Ltd.			113,798				564				—				(493	)
KEPCO Bylong Australia Pty., Ltd.			43,917				389,500				—				(36,055	)
Korea Waterbury Uranium Limited Partnership			20,923				201				—				(57	)
KEPCO Holdings de Mexico			147				26				—				(7	)
KST Electric Power Company, S.A.P.I. de C.V.			590,186				445,785				123,373				14,127
KEPCO Energy Service Company			5,931				447				9,588				4,411
KEPCO Netherlands S3 B.V.			49,448				117				—				1,694
PT. KOMIPO Pembangkitan Jawa Bali			14,999				4,113				13,541				2,041
PT. Cirebon Power Service			2,581				886				6,092				276
KOWEPO International Corporation			—				10				—				—
KOSPO Jordan LLC			35,152				16,821				6,676				1,623
EWP America Inc. (*1)			47,129				1,940				15,783				6,538
KNF Canada Energy Limited			2,130				32				—				(32	)
EWP Barbados 1 SRL			351,696				1,526				2,121				13,589
Gyeonggi Green Energy Co., Ltd.			246,984				223,728				67,810				(2,170	)
PT. Tanggamus Electric Power			216,258				171,007				2,871				6,365
Gyeongju Wind Power Co., Ltd.			95,822				61,252				10,586				1,470
KOMIPO America Inc. (*2)			303,615				115,989				122				(2,486	)
PT. EWP Indonesia			46,046				1,221				—				4,153
KEPCO Netherlands J3 B.V.			122,971				151				—				(73	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
September 30, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Korea Offshore Wind Power Co., Ltd.		W	361,026				193,222				23,178				738
Global One Pioneer B.V.			139				102				—				(87	)
Global Energy Pioneer B.V.			314				129				—				(108	)
Mira Power Limited			426,370				313,185				56,444				30,051
KOSEP Material Co., Ltd.			3,213				1,000				3,266				329
Commerce and Industry Energy Co., Ltd.			86,655				36,345				23,616				2,013
KEPCO KPS Philippines Corp.			6,032				2,317				6,226				794
KOSPO Chile SpA			142,209				55,834				—				(698	)
PT. KOWEPO Sumsel Operation And Maintenance Services			115				258				—				—
Hee mang sunlight Power Co., Ltd.			6,820				3,974				391				(76	)
Fujeij Wind Power Company			212,522				183,334				—				12,202
KOSPO Youngnam Power Co., Ltd.			390,541				293,232				217,929				2,647
Chitose Solar Power Plant LLC			130,161				112,927				13,673				2,474
KEPCO Energy Solution Co., Ltd.			316,288				4,450				10,238				2,178
KEPCO Solar Co., Ltd.			225,875				17,469				7,522				1,060
KOSPO Power Services Ltda.			6,767				1,807				12,320				2,407
Energy New Industry Specialized Investment Private Investment Trust (*3)			313,418				2,443				—				2,581
KOEN Bylong Pty., Ltd.			8				86				—				—
KOMIPO Bylong Pty., Ltd.			8				86				—				—
KOWEPO Bylong Pty., Ltd.			8				85				—				(18	)
KOSPO Bylong Pty., Ltd.			84				167				—				(8	)
EWP Bylong Pty., Ltd.			6				35				—				—
KOWEPO Lao International			12,958				—				6,288				4,206
KEPCO US Inc.			17,592				—				—				—
KEPCO Alamosa LLC			34,115				358				92				(89	)
KEPCO Solar of Alamosa LLC			60,406				44,032				6,262				440
KEPCO Mangilao Holdings LLC			28,081				31,515				—				(14	)
Mangilao Investment LLC			43,082				29				—				(14	)
KEPCO Mangilao Solar, LLC			157,212				117,711				—				(900	)
Jeju Hanlim Offshore Wind Co., Ltd.			32,057				8,392				—				(2,069	)
PT. Siborpa Eco Power			11,313				1				—				(80	)
PT. Korea Energy Indonesia			1,967				210				1,240				92
KOLAT SpA			29,668				716				38				(399	)
KEPCO California, LLC			45,303				6,945				—				(1,026	)
KEPCO Mojave Holdings, LLC			97,619				70,245				—				(3,172	)
Incheon Fuel Cell Co., Ltd.			267,245				246,103				23,149				(66	)
KOEN Service Co., Ltd.			9,473				8,562				26,111				534
KOMIPO Service Co., Ltd.			4,881				5,497				24,057				406
KOWEPO Service Co., Ltd.			8,370				6,154				23,397				1,115
KOSPO Service Co., Ltd.			2,931				4,629				15,936				(2,606	)
EWP Service Co., Ltd.			5,392				3,914				18,682				903
PT. KOMIPO Energy Indonesia			1,921				552				628				(927	)
KNF partners Co., Ltd.			1,725				852				3,896				146
KOSPO USA Inc.			285,940				347				—				1,629
Nambu USA LLC			277,401				—				—				412
Tamra Offshore Wind Power Co., Ltd.			143,727				108,265				13,709				854
KEPCO MCS Co., Ltd.			91,863				51,105				260,178				18,317
KEPCO FMS Co., Ltd.			14,772				14,852				66,542				(1,885	)
Firstkeepers Co., Ltd.			18,536				17,923				56,538				(691	)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
September 30, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Secutec Co., Ltd.		W	14,591				11,769				48,899				2,116
SE Green Energy Co., Ltd.			157,392				124,028				27,955				3,744
KEPCO Mangilao America LLC			2,154				1				—				—
Mangilao Intermediate Holdings LLC			172,745				155,711				—				(5,219	)
KEPCO CSC Co., Ltd.			10,662				6,943				31,072				453
KOAK Power Limited			15,750				646				—				32
KOMIPO Europe B.V.			71,294				86				302				(283	)
Haenanum Energy Fund			7,480				11				40				(65	)
Paju Ecoenergy Co., Ltd.			57,528				1,059				11,346				3,027
Guam Ukudu Power LLC			30,313				30,099				—				(1,200	)
TS Energy No. 25 Co., Ltd.			274,413				239,548				246				(7,006	)
KPS Partners Co., Ltd.			2,686				1,555				6,721				155
KEPCO E&C Service Co., Ltd.			3,864				1,841				11,879				1,058
Moha solar Co., Ltd.			27,017				27,803				3				(367	)
Ogiri Solar Power Co., Ltd.			1,041				1				—				(1	)
KHNP USA LLC			887				19				740				371
KOMIPO Vanphong Power Service LLC			2,203				305				1,742				26
Energy Innovation Fund I			16,820				2				—				(778	)
KHNP Chile SpA			5,282				3,861				—				23
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,073				916				—				(5	)
Yeong Yang Corporation Co., Ltd.			1,072				906				—				(5	)
SolarVader Co., Ltd.			1,072				908				—				(5	)
Yeong Yang Innovation Co., Ltd.			1,072				906				—				(5	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,070				907				—				(5	)
Yeong Yang Solar Management Co., Ltd.			1,072				906				—				(5	)
LSG Hydro Power Limited			1				—				—				—
KOEN Bio Co., Ltd.			377				55				51				(178	)
KOMIPO Iberian Solar Group, S.L.U.			72,745				58,325				—				1,079
Jeongam Wind Power Co., Ltd.			86,454				74,392				7,580				466
KOWEPO Europe B.V.			40,198				—				—				—

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

(*2) Financial information of KOMIPO America Inc. consists of 17 other subsidiaries’ financial information, including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Korea Hydro & Nuclear Power Co., Ltd.		W	61,859,753				35,652,467				9,938,941				647,641
Korea South-East Power Co., Ltd.			10,858,645				5,954,129				4,258,904				(139,149	)
Korea Midland Power Co., Ltd.			13,028,436				9,357,603				4,293,364				(29,880	)
Korea Western Power Co., Ltd.			10,357,023				6,594,779				3,605,986				(108,953	)
Korea Southern Power Co., Ltd.			10,658,015				6,411,524				4,015,941				(17,588	)
Korea East-West Power Co., Ltd.			9,619,485				4,974,645				4,155,416				(65,427	)
KEPCO Engineering & Construction Company, Inc.			699,244				200,169				431,723				20,160
KEPCO Plant Service & Engineering Co., Ltd.			1,345,857				296,515				1,299,186				85,916
KEPCO Nuclear Fuel Co., Ltd.			798,368				390,155				331,228				14,542
KEPCO KDN Co., Ltd.			647,496				174,192				641,308				45,207
KEPCO International HongKong Ltd.			120,213				—				—				1,571
KEPCO International Philippines Inc.			133,215				366				—				35,182
KEPCO Gansu International Ltd.			7,753				512				—				(19	)
KEPCO Philippines Holdings Inc.			187,375				127				—				65,792
KEPCO Philippines Corporation			6,173				17				—				(187	)
KEPCO Ilijan Corporation			322,066				47,234				81,400				39,443
KEPCO Lebanon SARL			1,669				9,195				—				(59	)
KEPCO Neimenggu International Ltd.			213,444				2,492				—				26,593
KEPCO Shanxi International Ltd.			508,363				196,408				—				2,278
KOMIPO Global Pte Ltd.			263,378				656				—				12,460
KEPCO Netherlands B.V.			117,449				71				—				14,503
Korea Imouraren Uranium Investment Corp.			13,955				123				—				(675	)
KEPCO Australia Pty., Ltd.			451				17				—				71
KOSEP Australia Pty., Ltd.			34,249				3,500				14,327				2,150
KOMIPO Australia Pty., Ltd.			45,250				3,782				14,327				2,685
KOWEPO Australia Pty., Ltd.			44,270				2,909				14,327				1,663
KOSPO Australia Pty., Ltd.			38,341				2,750				14,327				2,242
KEPCO Middle East Holding Company			90,601				78,553				—				(1,539	)
Qatrana Electric Power Company			464,507				287,859				21,279				24,717
KHNP Canada Energy Ltd.			63,794				26				—				(7	)
KEPCO Bylong Australia Pty., Ltd.			44,691				349,542				—				16,897
Korea Waterbury Uranium Limited Partnership			20,908				165				—				(76	)
KEPCO Holdings de Mexico			148				27				—				(14	)
KST Electric Power Company, S.A.P.I. de C.V.			531,367				410,743				65,695				37,899
KEPCO Energy Service Company			2,255				994				5,880				507
KEPCO Netherlands S3 B.V.			44,042				54				—				2,833
PT. KOMIPO Pembangkitan Jawa Bali			12,946				3,298				20,306				4,775
PT. Cirebon Power Service			1,825				550				8,642				344
KOWEPO International Corporation			—				10				—				—
KOSPO Jordan LLC			31,620				15,654				9,356				1,570
EWP America Inc. (*1)			37,681				2,683				14,312				(14,327	)
KNF Canada Energy Limited			1,871				22				—				(50	)
EWP Barbados 1 SRL			313,409				1,170				2,950				44,729
Gyeonggi Green Energy Co., Ltd.			265,768				240,366				64,660				(9,968	)
PT. Tanggamus Electric Power			217,730				184,057				3,491				11,942
Gyeongju Wind Power Co., Ltd.			105,726				68,629				13,939				2,108
KOMIPO America Inc.			105,926				918				342				(1,783	)
KOSEP USA, Inc.			1				4,837				—				—
PT. EWP Indonesia			33,900				1,125				—				7,083
KEPCO Netherlands J3 B.V.			138,824				84				—				28,242

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Korea Offshore Wind Power Co., Ltd.		W	354,643				187,576				26,838				98
Global One Pioneer B.V.			177				60				—				(76	)
Global Energy Pioneer B.V.			338				64				—				(70	)
Mira Power Limited			348,737				266,565				31,172				(2,960	)
KOSEP Material Co., Ltd.			2,312				429				3,457				189
Commerce and Industry Energy Co., Ltd.			89,681				41,384				31,603				1,623
KEPCO KPS Philippines Corp.			3,119				284				5,151				158
KOSPO Chile SpA			128,795				48,813				—				(542	)
PT. KOWEPO Sumsel Operation And Maintenance Services			108				241				—				(15	)
Hee mang sunlight Power Co., Ltd.			7,261				4,339				423				(142	)
Fujeij Wind Power Company			194,844				174,051				—				13,720
KOSPO Youngnam Power Co., Ltd.			389,071				294,408				254,966				3,405
VI Carbon Professional Private Special Asset Investment Trust 1			3,006				4				—				7
Chitose Solar Power Plant LLC			133,643				118,783				17,073				1,521
KEPCO Energy Solution Co., Ltd.			313,754				4,093				5,585				3,656
KEPCO Solar Co., Ltd.			230,443				23,098				3,933				1,888
KOSPO Power Services Ltda.			4,354				1,644				10,846				1,011
Energy New Industry Specialized Investment Private Investment Trust (*2)			279,489				24,173				23,682				8,248
KOEN Bylong Pty., Ltd.			6				75				—				(11	)
KOMIPO Bylong Pty., Ltd.			7				76				—				(11	)
KOWEPO Bylong Pty., Ltd.			6				64				—				—
KOSPO Bylong Pty., Ltd.			153				213				—				(2	)
EWP Bylong Pty., Ltd.			6				35				—				28
KOWEPO Lao International			8,982				392				8,466				4,706
KEPCO US Inc.			16,154				—				—				(21	)
KEPCO Alamosa LLC			31,353				270				127				(237	)
KEPCO Solar of Alamosa LLC			68,336				42,910				9,096				(2,052	)
KEPCO Mangilao Holdings LLC			25,785				28,924				—				(502	)
Mangilao Investment LLC			38,090				14				—				(15	)
KEPCO Mangilao Solar, LLC			69,830				34,029				—				(253	)
Jeju Hanlim Offshore Wind Co., Ltd.			20,525				9,805				—				(3,049	)
PT. Siborpa Eco Power			10,491				14				—				(361	)
PT. Korea Energy Indonesia			1,746				196				2,428				190
KOLAT SpA			31,109				425				243				(216	)
KEPCO California, LLC			41,973				4,683				—				(1,330	)
KEPCO Mojave Holdings, LLC			95,326				67,138				—				(4,358	)
Incheon Fuel Cell Co., Ltd.			192,184				170,976				—				(979	)
KOEN Service Co., Ltd.			6,239				5,598				32,150				129
KOMIPO Service Co., Ltd.			3,381				3,649				28,596				(479	)
KOWEPO Service Co., Ltd.			6,045				4,849				29,559				726
KOSPO Service Co., Ltd.			5,617				4,708				25,103				832
EWP Service Co., Ltd.			4,568				4,074				23,223				(15	)
PT. KOMIPO Energy Indonesia			2,473				154				2,391				52
KNF Partners Co., Ltd.			1,470				743				5,487				256
KOSPO USA Inc.			120,380				266				—				(1,611	)
Nambu USA LLC			42,739				—				—				544
Tamra Offshore Wind Power Co., Ltd.			150,957				112,184				22,200				4,575
KEPCO MCS Co., Ltd.			59,227				36,786				342,053				19,190
KEPCO FMS Co., Ltd.			14,390				12,585				89,228				837

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss) for the  period
Firstkeepers Co., Ltd.		W	13,981				12,234				68,538				2,994
Secutec Co., Ltd.			11,473				9,771				62,256				1,609
SE Green Energy Co., Ltd.			152,205				122,606				19,731				2,463
KEPCO Mangilao America LLC			1,793				—				—				—
Mangilao Intermediate Holdings LLC			100,609				80,210				—				(3,708	)
KEPCO CSC Co., Ltd.			8,817				5,551				38,465				2,479
KOAK Power Limited			15,864				1,118				—				607
KOMIPO Europe B.V.			43,198				46				333				(386	)
Haenanum Energy Fund			28,219				132				128				(13	)
Paju Ecoenergy Co., Ltd.			57,320				3,506				3,069				247
Guam Ukudu Power LLC			3,165				3,589				—				(1,577	)
TS Energy No. 25 Co., Ltd.			184,667				142,709				—				(3,779	)
KPS Partners Co., Ltd.			2,139				1,127				3,562				313
KEPCO E&C Service Co., Ltd.			2,514				1,549				4,989				464
Moha solar Co., Ltd.			7,390				7,809				—				(364	)
Ogiri Solar Power Co., Ltd.			1,032				—				—				—
KHNP USA LLC			464				23				229				119
KOMIPO Vanphong Power Service LLC			1,727				12				—				(34	)
Energy Innovation Fund I			8,412				1				25				(201	)

(*1) Financial information of EWP America Inc. includes that of four other subsidiaries, EWP Renewable Corporation, DG Fairhaven 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 four other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund and BSK E-New Industry Fund X.

(4) Significant restrictions on abilities to subsidiaries as of September 30, 2021 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 of the Group.
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. Group’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.
Jeongam Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied, and payments to the contracting party may be restricted depending on the financial management priority of the contract. Group’s shares cannot be wholly or partially transferred without prior consent of other stakeholders including shareholders or 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 of the Group.
Gyeongju Wind Power Co., Ltd.		Dividends and settlement amounts for renewable energy 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 dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(5) As of September 30, 2021, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:

Company		Nature and extent of any significant restrictions
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.
Jeongam Wind Power Co., Ltd.		When the Group requests other shareholders to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares at fair value.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won
September 30, 2021
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	314,057				805,535				218,421				1,031,059				2,369,072
Non-current assets			23,351				600,193				461,079				3,793,722				4,878,345
Current liabilities			(25,195	)			(244,981	)			(169,265	)			(639,298	)			(1,078,739	)
Non-current liabilities			(11,664	)			(49,826	)			(16,444	)			(2,640,594	)			(2,718,528	)
Net assets			300,549				1,110,921				493,791				1,544,889				3,450,150
Book value of non-controlling interests			147,269				544,352				167,494				633,025				1,492,140
Sales			46,110				997,927				243,786				854,002				2,141,825
Profit for the period			9,568				101,857				217				107,235				218,877
Profit for the period attributable to non-controlling interests			4,688				49,910				74				19,367				74,039
Cash flows from operating activities			87,732				130,795				(1,029	)			256,760				474,258
Cash flows from investing activities			1,080				(53,154	)			(204	)			(191,436	)			(243,714	)
Cash flows from financing activities before dividends to non-controlling interests			(8,046	)			(29,532	)			(8,132	)			20,672				(25,038	)
Dividends to non-controlling interests			—				(25,269	)			(3,639	)			(1,712	)			(30,620	)
Effect of exchange rate fluctuation			13,405				1,399				52				8,511				23,367
Net increase (decrease) of cash and cash equivalents			94,171				24,239				(12,952	)			92,795				198,253

In millions of won
December 31, 2020
Description		KEPCO Ilijan Corporation				KEPCO Plant Service & Engineering Co., Ltd.				KEPCO Engineering & Construction Company, Inc.				Others				Total
Percentage of ownership			49.00	%			49.00	%			33.92	%
Current assets		W	236,602				755,454				235,805				801,813				2,029,674
Non-current assets			85,464				590,403				463,439				3,499,258				4,638,564
Current liabilities			(12,322	)			(254,495	)			(186,296	)			(414,673	)			(867,786	)
Non-current liabilities			(34,912	)			(42,020	)			(13,873	)			(2,511,848	)			(2,602,653	)
Net assets			274,832				1,049,342				499,075				1,374,550				3,197,799
Book value of non-controlling interests			134,668				514,177				169,286				552,035				1,370,166
Sales			81,400				1,299,186				431,723				956,692				2,769,001
Profit for the period			39,443				85,916				20,160				107,661				253,180
Profit for the period attributable to non-controlling interests			19,327				42,099				6,838				32,858				101,122
Cash flows from operating activities			121,835				74,159				15,225				240,987				452,206
Cash flows from investing activities			7,561				26,748				(34,333	)			(661,820	)			(661,844	)
Cash flows from financing activities before dividends to non-controlling interests			(31,793	)			(47,809	)			(9,165	)			371,448				282,681
Dividends to non-controlling interests			(30,319	)			(42,336	)			(4,000	)			(4,643	)			(81,298	)
Effect of exchange rate fluctuation			(8,153	)			(2,171	)			(22	)			(7,893	)			(18,239	)
Net increase (decrease) of cash and cash equivalents			59,131				8,591				(32,295	)			(61,921	)			(26,494	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

(i) Details of goodwill as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Acquisition cost		W	105,690				98,166
Less: Accumulated impairment			—				—
Carrying book value		W	105,690				98,166

(ii) Changes in goodwill for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning				Increase				Decrease				Ending
Acquisition cost			W    98,166				7,524				—				105,690
Less: Accumulated impairment			—				—				—				—
Carrying book value			98,166				7,524				—				105,690
In millions of won		December 31, 2020
		Beginning				Increase				Decrease				Ending
Acquisition cost			W    97,977				189				—				98,166
Less: Accumulated impairment			—				—				—				—
Carrying book value			97,977				189				—				98,166

(8) Disposals of subsidiaries

The Group has completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1 and KOSEP USA, Inc., and has disposed of shares of DG Fairhaven Power, LLC during the nine-month period ended September 30, 2021. The Group had completed the liquidation process of EWP Philippines Corporation and had disposed of shares of DG Whitefield, LLC and Springfield Power, LLC during the year ended December 31, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
September 30, 2021
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				1,747,462
Gemeng International Energy Co., Ltd.		Power generation			CHINA				34.00	%			413,153				665,338
PT. Bayan Resources TBK		Resources development			INDONESIA				20.00	%			615,860				537,635
Korea Power Exchange (*2)		Management of power market and others			KOREA				100.00	%			127,839				274,081
GS Donghae Electric Power Co., Ltd.		Power generation			KOREA				34.00	%			204,000				257,160
PT. Cirebon Electric Power		Power generation			INDONESIA				27.50	%			40,365				120,266
Hyundai Green Power Co., Ltd.		Operation of utility plant			KOREA				29.00	%			88,885				121,904
S-Power Co., Ltd.		Power generation			KOREA				49.00	%			132,300				119,827
Indeck Niles Development, LLC (*3)		Power generation			USA				59.74	%			265,506				248,933
Dongducheon Dream Power Co., Ltd. (*4)		Power generation			KOREA				33.61	%			148,105				76,396
Shin Pyeongtaek Power Co., Ltd.		Power generation			KOREA				40.00	%			72,000				81,066
SPC Power Corporation		Power generation			PHILIPPINES				38.00	%			20,635				68,797
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			LAOS				25.00	%			87,426				80,329
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant			NEPAL				69.06	%			70,228				66,511
Korea Electric Power Corporation Fund (*6)		Developing electric enterprises			KOREA				98.09	%			48,410				43,700
YTN Co., Ltd.		Broadcasting			KOREA				21.43	%			59,000				40,943
PT Wampu Electric Power		Power generation			INDONESIA				46.00	%			21,292				34,759
Others (Daeryun Power Co., Ltd. and 68 others)													240,752				199,892
												W	2,750,256				4,784,999
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			JAMAICA				40.00	%		W	301,910				293,823
KEPCO SPC Power Corporation (*7)		Construction and operation of utility plant			PHILIPPINES				75.20	%			94,579				210,731
Datang Chifeng Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			121,928				215,742
Amman Asia Electric Power Company (*7)		Power generation			JORDAN				60.00	%			111,476				199,979
Rabigh Electricity Company		Power generation			SAUDI ARABIA				40.00	%			109,743				146,411
PT Barito Wahana Tenaga		Power generation			INDONESIA				30.61	%			59,431				75,665
Kelar S.A. (*7)		Power generation			CHILE				65.00	%			78,060				88,709
RE Holiday Holdings LLC		Power generation			USA				50.00	%			42,948				71,163
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				58,210
Solar Philippines Calatagan Corporation		Power generation			PHILIPPINES				38.00	%			47,903				52,869
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			CHINA				40.00	%			39,872				44,938
OneEnergy Asia Limited		Power generation			VIETNAM				40.00	%			75,874				79,687
PT. Tanjung Power Indonesia		Power generation			INDONESIA				35.00	%			26,892				45,466
South Jamaica Power Company Limited		Power generation			JAMAICA				20.00	%			20,521				39,118
Chile Solar JV SpA		Power generation			CHILE				50.00	%			37,689				33,956
Shuweihat Asia Power Investment B.V.		Holding company			NETHERLAND				49.00	%			44,405				34,239
Others (Chun-cheon Energy Co., Ltd. and 75 others)													769,354				541,373
													2,010,474				2,232,079
												W	4,760,731				7,017,078

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2021 and December 31, 2020 are as follows, continued:

(*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) Under the shareholder agreement, 50% of the investment is committed by March 2022. Besides, the effective percentage of ownership is more than 50% as of September 30, 2021, 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.

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

(*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% 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.

(*7) 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, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Investees		Key operation activities		Location		Percentage of ownership				Acquisition cost				Book value
<Associates>
Korea Gas Corporation (*1)		Importing and wholesaling LNG		KOREA			20.47	%		W	94,500				1,647,325
Gemeng International Energy Co., Ltd.		Power generation		CHINA			34.00	%			413,153				679,708
PT. Bayan Resources TBK		Resources development		INDONESIA			20.00	%			615,860				425,234
Korea Power Exchange (*2)		Management of power market and others		KOREA			100.00	%			127,839				269,122
GS Donghae Electric Power Co., Ltd.		Power generation		KOREA			34.00	%			204,000				244,426
PT. Cirebon Electric Power		Power generation		INDONESIA			27.50	%			40,365				117,811
Hyundai Green Power Co., Ltd.		Power generation		KOREA			29.00	%			88,885				132,774
S-Power Co., Ltd.		Power generation		KOREA			49.00	%			132,300				110,292
Indeck Niles Development, LLC (*3)		Power generation		USA			24.08	%			45,562				20,627
Dongducheon Dream Power Co., Ltd. (*4)		Power generation		KOREA			33.61	%			148,105				80,637
Shin Pyeongtaek Power Co., Ltd.		Power generation		KOREA			40.00	%			72,000				69,591
SPC Power Corporation		Power generation		PHILIPPINES			38.00	%			20,635				69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation		LAOS			25.00	%			87,426				64,570
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant		NEPAL			60.35	%			50,268				42,677
Korea Electric Power Corporation Fund (*6)		Developing electric enterprises		KOREA			98.09	%			51,500				41,926
YTN Co., Ltd.		Broadcasting		KOREA			21.43	%			59,000				40,549
PT Wampu Electric Power		Power generation		INDONESIA			46.00	%			21,292				27,865
Others (Daeryun Power Co., Ltd. and 60 others)											209,071				165,741
										W	2,481,761				4,250,787
<Joint ventures>
Jamaica Public Service Company Limited		Power generation		JAMAICA			40.00	%		W	301,910				266,221
KEPCO SPC Power Corporation (*7)		Construction and operation of utility plant		PHILIPPINES			75.20	%			94,579				201,663
Datang Chifeng Renewable Power Co., Ltd.		Power generation		CHINA			40.00	%			121,928				188,478
Amman Asia Electric Power Company (*7)		Power generation		JORDAN			60.00	%			111,476				161,253
Rabigh Electricity Company		Power generation		SAUDI ARABIA			40.00	%			109,743				97,157
PT Barito Wahana Tenaga		Power generation		INDONESIA			30.61	%			59,395				63,029
Kelar S.A. (*7)		Power generation		CHILE			65.00	%			78,060				71,449
RE Holiday Holdings LLC		Power generation		USA			50.00	%			42,948				68,809
RE Pioneer Holdings LLC		Power generation		USA			50.00	%			27,891				49,639
Solar Philippines Calatagan Corporation		Power generation		PHILIPPINES			38.00	%			47,903				49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation		CHINA			40.00	%			39,872				42,530
OneEnergy Asia Limited		Power generation		VIETNAM			40.00	%			56,654				56,654
PT. Tanjung Power Indonesia		Power generation		INDONESIA			35.00	%			26,892				33,063
South Jamaica Power Company Limited		Power generation		JAMAICA			20.00	%			20,521				31,897
Chile Solar JV SpA		Power generation		CHILE			50.00	%			37,689				34,883
Shuweihat Asia Power Investment B.V.		Holding company		NETHERLAND			49.00	%			44,405				13,264
Others (Daegu Green Power Co., Ltd. and 66 others)											721,526				490,740
											1,943,392				1,919,746
										W	4,425,153				6,170,533

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2021 and December 31, 2020 are as follows, continued:

(*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) Under the shareholder agreement, 50% of the investment is committed by March 2022. Besides, the effective percentage of ownership is more than 50% as of September 30, 2021, 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.

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

(*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% 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.

(*7) 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.

(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, 2021 and December 31, 2020 are as follows:

In millions of won
Investees		September 30, 2021				December 31, 2020
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		W	146,064				45,048
Korea Gas Corporation			919,485				584,010
YTN Co., Ltd.			31,815				27,000
SPC Power Corporation			215,119				139,698
PT. Bayan Resources TBK			1,627,604				798,510

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won
September 30, 2021
Investees		Beginning balance				Acquisition				Disposals				Dividends received				Share of income (loss)				Other comprehensive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,647,325				—				—				—				80,916				17,970				1,251				1,747,462
Gemeng International Energy Co., Ltd.			679,708				—				—				(11,886	)			(79,812	)			77,328				—				665,338
PT. Bayan Resources TBK			425,234				—				—				(67,861	)			138,772				41,518				(28	)			537,635
Korea Power Exchange			269,122				—				—				—				5,053				—				(94	)			274,081
GS Donghae Electric Power Co., Ltd.			244,426				—				—				—				12,734				—				—				257,160
PT. Cirebon Electric Power			117,811				—				—				(18,040	)			9,438				930				10,127				120,266
Hyundai Green Power Co., Ltd.			132,774				—				—				(8,889	)			(636	)			(1,345	)			—				121,904
S-Power Co., Ltd.			110,292				—				—				—				9,535				—				—				119,827
Indeck Niles Development, LLC			20,627				219,943				—				—				(7,554	)			3,780				12,137				248,933
Dongducheon Dream Power Co., Ltd.			80,637				—				—				—				(4,241	)			—				—				76,396
Shin Pyeongtaek Power Co., Ltd.			69,591				—				—				—				11,468				—				7				81,066
SPC Power Corporation			69,912				—				—				(13,159	)			4,569				7,475				—				68,797
Xe-Pian Xe-Namnoy Power Co., Ltd.			64,570				—				—				—				8,274				7,485				—				80,329
Nepal Water & Energy Development Company Private Limited			42,677				19,960				—				—				(410	)			4,284				—				66,511
Korea Electric Power Corporation Fund			41,926				—				(3,090	)			—				(752	)			5,616				—				43,700
YTN Co., Ltd.			40,549				—				—				(270	)			658				14				(8	)			40,943
PT Wampu Electric Power			27,865				—				—				—				3,221				991				2,682				34,759
Others (Daeryun Power Co., Ltd. and 69 others)			165,741				18,802				(78	)			(5,038	)			6,263				(1,740	)			15,942				199,892
		W	4,250,787				258,705				(3,168	)			(125,143	)			197,496				164,306				42,016				4,784,999
<Joint ventures>
Jamaica Public Service Company Limited		W	266,221				—				—				(1,357	)			8,998				23,738				(3,777	)			293,823
KEPCO SPC Power Corporation			201,663				—				—				(24,013	)			33,359				(278	)			—				210,731
Datang Chifeng Renewable Power Co., Ltd.			188,478				—				—				—				8,718				18,546				—				215,742
Amman Asia Electric Power Company			161,253				—				—				—				13,724				25,002				—				199,979
Rabigh Electricity Company			97,157				—				—				—				21,943				27,311				—				146,411
PT Barito Wahana Tenaga			63,029				36				—				—				(266	)			12,866				—				75,665
Kelar S.A.			71,449				—				—				—				4,060				6,341				6,859				88,709
RE Holiday Holdings LLC			68,809				—				—				(9,887	)			4,563				7,678				—				71,163
RE Pioneer Holdings LLC			49,639				—				—				(837	)			3,618				5,790				—				58,210
Solar Philippines Calatagan Corporation			49,017				—				—				(495	)			3,477				870				—				52,869
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			42,530				—				—				(2,884	)			1,340				3,952				—				44,938
OneEnergy Asia Limited			56,654				19,220				—				—				(115	)			3,928				—				79,687
PT. Tanjung Power Indonesia			33,063				—				—				—				4,465				8,503				(565	)			45,466
South Jamaica Power Company Limited			31,897				—				—				—				4,182				3,039				—				39,118
Chile Solar JV SpA			34,883				—				—				—				698				(1,625	)			—				33,956
Shuweihat Asia Power Investment B.V.			13,264				—				—				(1,773	)			3,471				19,277				—				34,239
Others (Chun-cheon Energy Co., Ltd. and 76 others)			490,740				56,695				(11,710	)			(11,841	)			6,320				8,474				2,695				541,373
			1,919,746				75,951				(11,710	)			(53,087	)			122,555				173,412				5,212				2,232,079
		W	6,170,533				334,656				(14,878	)			(178,230	)			320,051				337,718				47,228				7,017,078

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (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, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Investees		Beginning balance				Acquisition				Disposals				Dividends received				Share of income (loss)				Other comprehensive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,693,967				—				—				(7,182	)			(14,104	)			(25,023	)			(333	)			1,647,325
Gemeng International Energy Co., Ltd.			670,896				—				—				(11,620	)			15,965				4,468				(1	)			679,708
PT. Bayan Resources TBK			445,141				—				—				(15,720	)			17,139				(21,256	)			(70	)			425,234
Korea Power Exchange			258,899				—				—				—				1,860				1				8,362				269,122
GS Donghae Electric Power Co., Ltd.			255,983				—				—				(25,796	)			14,265				—				(26	)			244,426
PT. Cirebon Electric Power			123,425				—				—				(9,782	)			11,330				434				(7,596	)			117,811
Hyundai Green Power Co., Ltd.			124,253				—				—				(8,889	)			17,410				—				—				132,774
S-Power Co., Ltd.			115,784				—				—				—				(5,429	)			—				(63	)			110,292
Indeck Niles Development, LLC			—				45,562				—				—				(13,344	)			(9,846	)			(1,745	)			20,627
Dongducheon Dream Power Co., Ltd.			76,547				—				—				—				4,095				—				(5	)			80,637
Shin Pyeongtaek Power Co., Ltd.			66,956				—				—				—				11,877				(3,604	)			(5,638	)			69,591
SPC Power Corporation			63,583				—				—				(10,764	)			5,491				11,649				(47	)			69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.			72,935				—				—				—				(2,896	)			(5,469	)			—				64,570
Nepal Water & Energy Development Company Private Limited			31,145				14,697				—				—				(1,699	)			(1,466	)			—				42,677
Korea Electric Power Corporation Fund			41,126				—				—				—				(908	)			1,708				—				41,926
YTN Co., Ltd.			39,747				—				—				(90	)			1,086				(6	)			(188	)			40,549
PT Wampu Electric Power			29,355				—				—				(1,303	)			3,245				(1,639	)			(1,793	)			27,865
Others (Daeryun Power Co., Ltd. and 67 others)			142,060				35,996				(207	)			(7,029	)			(6,291	)			1,138				74				165,741
		W	4,251,802				96,255				(207	)			(98,175	)			59,092				(48,911	)			(9,069	)			4,250,787
<Joint ventures>
Jamaica Public Service Company Limited		W	253,607				—				—				(4,352	)			24,669				(10,891	)			3,188				266,221
KEPCO SPC Power Corporation			214,794				—				—				(48,486	)			48,479				(12,995	)			(129	)			201,663
Datang Chifeng Renewable Power Co., Ltd.			185,307				—				—				(13,453	)			15,317				1,307				—				188,478
Amman Asia Electric Power Company			192,164				—				—				(28,281	)			20,165				(22,795	)			—				161,253
Rabigh Electricity Company			109,096				—				—				(14,956	)			25,474				(22,458	)			1				97,157
PT Barito Wahana Tenaga			—				59,395				—				—				4,923				(1,289	)			—				63,029
Kelar S.A.			70,462				—				—				—				14,864				(9,186	)			(4,691	)			71,449
RE Holiday Holdings LLC			42,070				—				—				—				33,072				(6,333	)			—				68,809
RE Pioneer Holdings LLC			31,156				—				—				(1,246	)			24,466				(4,737	)			—				49,639
Solar Philippines Calatagan Corporation			48,930				—				—				(6,439	)			6,745				(219	)			—				49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			41,024				—				—				—				1,231				275				—				42,530
OneEnergy Asia Limited			—				56,654				—				—				—				—				—				56,654
PT. Tanjung Power Indonesia			34,327				—				—				—				7,522				(9,220	)			434				33,063
South Jamaica Power Company Limited			13,863				—				—				—				20,468				(2,432	)			(2	)			31,897
Chile Solar JV SpA			34,859				—				—				—				187				(163	)			—				34,883
Shuweihat Asia Power Investment B.V.			18,318				—				—				(4,337	)			5,919				(6,636	)			—				13,264
Others (Daegu Green Power Co., Ltd. and 66 others)			373,052				173,019				—				(17,969	)			(33,469	)			(5,605	)			1,712				490,740
			1,663,029				289,068				—				(139,519	)			220,032				(113,377	)			513				1,919,746
		W	5,914,831				385,323				(207	)			(237,694	)			279,124				(162,288	)			(8,556	)			6,170,533

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won
September 30, 2021
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	37,635,939				29,451,628				17,925,109				367,464
Gemeng International Energy Co., Ltd.			8,946,520				6,130,363				1,890,564				(183,636	)
PT. Bayan Resources TBK			2,215,134				750,390				1,978,229				830,904
Korea Power Exchange			330,789				56,708				81,860				5,555
GS Donghae Electric Power Co., Ltd.			2,157,914				1,401,562				570,148				37,452
PT. Cirebon Electric Power			695,667				258,334				209,560				35,438
Hyundai Green Power Co., Ltd.			817,021				396,664				73,309				(1,535	)
S-Power Co., Ltd.			786,948				539,487				393,869				19,131
Indeck Niles Development, LLC			1,045,849				741,024				—				(11,206	)
Dongducheon Dream Power Co., Ltd.			1,406,726				1,141,273				516,456				(9,956	)
Shin Pyeongtaek Power Co., Ltd.			1,003,912				770,078				443,029				27,560
SPC Power Corporation			263,788				24,143				46,162				31,513
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,243,674				918,106				114,686				32,913
Nepal Water & Energy Development Company Private Limited			120,931				26,034				—				(343	)
Korea Electric Power Corporation Fund			44,731				184				8				(474	)
YTN Co., Ltd.			294,964				103,896				93,320				2,369
PT Wampu Electric Power			205,956				130,394				14,512				7,153
<Joint ventures>
Jamaica Public Service Company Limited			2,170,774				1,467,319				789,576				29,972
KEPCO SPC Power Corporation			306,462				26,235				132,891				44,559
Datang Chifeng Renewable Power Co., Ltd.			805,282				265,928				88,902				22,340
Amman Asia Electric Power Company			763,851				430,552				12,386				22,878
Rabigh Electricity Company			2,435,858				1,925,801				217,348				47,476
PT Barito Wahana Tenaga			247,174				—				—				11,269
Kelar S.A.			636,596				504,322				64,883				6,618
RE Holiday Holdings LLC			316,177				173,852				10,474				7,336
RE Pioneer Holdings LLC			247,742				131,322				7,926				5,369
Solar Philippines Calatagan Corporation			104,817				43,832				14,962				9,211
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			196,324				83,979				21,338				3,351
OneEnergy Asia Limited			135,540				103				—				(289	)
PT. Tanjung Power Indonesia			723,337				593,434				65,195				12,904
South Jamaica Power Company Limited			473,010				277,409				163,140				14,153
Chile Solar JV SpA			71,166				3,255				2,245				1,141
Shuweihat Asia Power Investment B.V.			69,876				—				—				18,174

(*) The profit for the nine-month period ended September 30, 2021 is reduced by the associate entity’s net income attributable to non-controlling interests.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	35,909,775				28,174,619				20,833,722				(172,060	)
Gemeng International Energy Co., Ltd.			7,427,157				5,428,013				1,955,707				64,077
PT. Bayan Resources TBK			1,544,875				795,131				1,646,390				219,406
Korea Power Exchange			337,577				68,455				104,698				979
GS Donghae Electric Power Co., Ltd.			2,174,835				1,455,935				685,579				41,955
PT. Cirebon Electric Power			730,020				301,615				246,014				40,676
Hyundai Green Power Co., Ltd.			874,574				416,732				390,442				55,591
S-Power Co., Ltd.			782,561				554,393				421,519				(10,805	)
Indeck Niles Development, LLC			772,124				738,826				—				(29,392	)
Dongducheon Dream Power Co., Ltd.			1,374,640				1,095,926				524,890				10,982
Shin Pyeongtaek Power Co., Ltd.			1,020,650				814,369				520,468				32,002
SPC Power Corporation			255,462				17,705				47,091				39,677
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,138,994				876,336				140,069				(11,318	)
Nepal Water & Energy Development Company Private Limited			109,321				41,093				—				(444	)
Korea Electric Power Corporation Fund			42,988				249				82				(730	)
YTN Co., Ltd.			295,151				105,923				126,730				7,095
PT Wampu Electric Power			199,841				139,264				20,265				7,372
<Joint ventures>
Jamaica Public Service Company Limited			1,664,412				1,027,418				1,042,422				35,916
KEPCO SPC Power Corporation			289,271				21,102				184,481				66,311
Datang Chifeng Renewable Power Co., Ltd.			747,990				276,796				119,955				39,439
Amman Asia Electric Power Company			725,101				456,346				20,586				33,608
Rabigh Electricity Company			2,294,880				1,898,701				293,722				94,927
PT Barito Wahana Tenaga			205,894				—				—				28,631
Kelar S.A.			598,901				492,838				93,375				16,863
RE Holiday Holdings LLC			320,908				183,290				19,659				13,247
RE Pioneer Holdings LLC			236,565				137,287				12,410				8,821
Solar Philippines Calatagan Corporation			97,947				47,098				23,182				15,249
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			182,342				76,018				26,378				2,914
OneEnergy Asia Limited			78,005				150				—				(578	)
PT. Tanjung Power Indonesia			645,152				550,687				90,255				20,487
South Jamaica Power Company Limited			405,804				246,310				209,596				12,208
Chile Solar JV SpA			74,776				5,011				4,390				1,476
Shuweihat Asia Power Investment B.V.			27,073				4				—				12,080

(*) The loss for the year ended December 31, 2020 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
September 30, 2021
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation (*)		W	8,184,312				22.02	%			1,802,186				—				—				(54,724	)			1,747,462
Gemeng International Energy Co., Ltd.			2,816,156				34.00	%			957,493				—				—				(292,155	)			665,338
PT. Bayan Resources TBK			1,464,744				20.00	%			292,949				321,066				—				(76,380	)			537,635
Korea Power Exchange			274,081				100.00	%			274,081				—				—				—				274,081
GS Donghae Electric Power Co., Ltd.			756,352				34.00	%			257,160				—				—				—				257,160
PT. Cirebon Electric Power			437,332				27.50	%			120,266				—				—				—				120,266
Hyundai Green Power Co., Ltd.			420,358				29.00	%			121,904				—				—				—				121,904
S-Power Co., Ltd.			247,461				49.00	%			121,256				—				(1,429	)			—				119,827
Indeck Niles Development, LLC			304,826				59.74	%			182,098				66,835				—				—				248,933
Dongducheon Dream Power Co., Ltd.			265,453				34.01	%			90,280				1,757				(3,059	)			(12,582	)			76,396
Shin Pyeongtaek Power Co., Ltd.			233,835				40.00	%			93,534				3,559				(16,027	)			—				81,066
SPC Power Corporation			239,645				38.00	%			91,065				—				—				(22,268	)			68,797
Xe-Pian Xe-Namnoy Power Co., Ltd.			325,569				25.00	%			81,393				305				(1,080	)			(289	)			80,329
Nepal Water & Energy Development Company Private Limited			94,897				69.06	%			65,539				972				—				—				66,511
Korea Electric Power Corporation Fund			44,547				98.09	%			43,697				—				—				3				43,700
YTN Co., Ltd.			191,068				21.43	%			40,943				—				—				—				40,943
PT Wampu Electric Power			75,562				46.00	%			34,759				—				—				—				34,759
<Joint ventures>
Jamaica Public Service Company Limited			703,455				40.00	%			281,382				29,357				—				(16,916	)			293,823
KEPCO SPC Power Corporation			280,227				75.20	%			210,731				—				—				—				210,731
Datang Chifeng Renewable Power Co., Ltd.			539,354				40.00	%			215,742				—				—				—				215,742
Amman Asia Electric Power Company			333,299				60.00	%			199,979				—				—				—				199,979
Rabigh Electricity Company			510,057				40.00	%			204,022				—				(56,806	)			(805	)			146,411
PT Barito Wahana Tenaga			247,174				30.61	%			75,665				—				—				—				75,665
Kelar S.A.			132,274				65.00	%			85,978				2,731				—				—				88,709
RE Holiday Holdings LLC			142,325				50.00	%			71,163				—				—				—				71,163
RE Pioneer Holdings LLC			116,421				50.00	%			58,210				—				—				—				58,210
Solar Philippines Calatagan Corporation			60,985				38.00	%			23,174				29,695				—				—				52,869
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			112,345				40.00	%			44,938				—				—				—				44,938
OneEnergy Asia Limited			135,437				40.00	%			54,175				25,512				—				—				79,687
PT. Tanjung Power Indonesia			129,903				35.00	%			45,466				—				—				—				45,466
South Jamaica Power Company Limited			195,601				20.00	%			39,120				—				—				(2	)			39,118
Chile Solar JV SpA			67,911				50.00	%			33,956				—				—				—				33,956
Shuweihat Asia Power Investment B.V.			69,876				49.00	%			34,239				—				—				—				34,239

(*) 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, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won
December 31, 2020
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation (*)		W	7,735,156				22.02	%			1,703,281				—				—				(55,956	)			1,647,325
Gemeng International Energy Co., Ltd.			1,999,144				34.00	%			679,709				—				—				(1	)			679,708
PT. Bayan Resources TBK			749,744				20.00	%			149,949				351,662				—				(76,377	)			425,234
Korea Power Exchange			269,122				100.00	%			269,122				—				—				—				269,122
GS Donghae Electric Power Co., Ltd.			718,900				34.00	%			244,426				—				—				—				244,426
PT. Cirebon Electric Power			428,405				27.50	%			117,811				—				—				—				117,811
Hyundai Green Power Co., Ltd.			457,842				29.00	%			132,774				—				—				—				132,774
S-Power Co., Ltd.			228,168				49.00	%			111,802				—				(1,510	)			—				110,292
Indeck Niles Development, LLC			33,298				24.08	%			8,017				12,610				—				—				20,627
Dongducheon Dream Power Co., Ltd.			278,714				34.01	%			94,791				1,757				(3,329	)			(12,582	)			80,637
Shin Pyeongtaek Power Co., Ltd.			206,281				40.00	%			82,512				3,559				(16,480	)			—				69,591
SPC Power Corporation			237,757				38.00	%			90,348				—				—				(20,436	)			69,912
Xe-Pian Xe-Namnoy Power Co., Ltd.			262,658				25.00	%			65,665				305				(1,110	)			(290	)			64,570
Nepal Water & Energy Development Company Private Limited			68,228				58.59	%			39,975				971				—				1,731				42,677
Korea Electric Power Corporation Fund			42,739				98.09	%			41,923				—				—				3				41,926
YTN Co., Ltd.			189,228				21.43	%			40,549				—				—				—				40,549
PT Wampu Electric Power			60,577				46.00	%			27,865				—				—				—				27,865
<Joint ventures>
Jamaica Public Service Company Limited			636,994				40.00	%			254,798				29,357				—				(17,934	)			266,221
KEPCO SPC Power Corporation			268,169				75.20	%			201,663				—				—				—				201,663
Datang Chifeng Renewable Power Co., Ltd.			471,194				40.00	%			188,478				—				—				—				188,478
Amman Asia Electric Power Company			268,755				60.00	%			161,253				—				—				—				161,253
Rabigh Electricity Company			396,179				40.00	%			158,472				—				(60,511	)			(804	)			97,157
PT Barito Wahana Tenaga			205,894				30.61	%			63,029				—				—				—				63,029
Kelar S.A.			106,063				65.00	%			68,941				2,508				—				—				71,449
RE Holiday Holdings LLC			137,618				50.00	%			68,809				—				—				—				68,809
RE Pioneer Holdings LLC			99,278				50.00	%			49,639				—				—				—				49,639
Solar Philippines Calatagan Corporation			50,849				38.00	%			19,323				29,694				—				—				49,017
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			106,324				40.00	%			42,530				—				—				—				42,530
OneEnergy Asia Limited			77,855				40.00	%			31,142				25,512				—				—				56,654
PT. Tanjung Power Indonesia			94,465				35.00	%			33,063				—				—				—				33,063
South Jamaica Power Company Limited			159,494				20.00	%			31,899				—				—				(2	)			31,897
Chile Solar JV SpA			69,765				50.00	%			34,883				—				—				—				34,883
Shuweihat Asia Power Investment B.V.			27,069				49.00	%			13,264				—				—				—				13,264

(*) 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, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of September 30, 2021 and December 31, 2020, 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, 2021								December 31, 2020
		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			15				190				(10	)			175
Gunsan Bio Energy Co., Ltd.			232				3,814				290				3,582
Daehan Wind Power PSC			(3,855	)			—				3,855				3,855
DAYONE Energy Co., Ltd.			(238	)			24,458				(14,035	)			24,696
Nghi Son 2 Power LLC			(91,866	)			41,414				30,456				133,280
Samcheok Eco Materials Co., Ltd.			(18	)			767				(3	)			785
Naepo Green Energy Co., Ltd.			3,392				5,670				(7,003	)			2,278
Barakah One Company			10,250				79,588				(46,758	)			69,338
Pioneer Gas Power Limited			14,619				30,557				15,824				15,938
Incheon New Power Co., Ltd.			37				231				194				194
Bigeum Resident Photovoltaic Power Co., Ltd.			117				233				116				116
KAPES, Inc.			463				3,661				3,198				3,198

(7) As of September 30, 2021, 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. The Group is under agreement of O&M with the entity. Pursuant to the agreement, the Group guarantees a certain level of utilization rate and it is obligated to pay the penalty in the event of suspension in power generating.

(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) 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 investors at the yield-based transfer amount agreed with the shareholders. The Group can exercise its right 5, 10 and 13 years after the date of the investment. The Group has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of September 30, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(vi) 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.

(vii) 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.

(viii) 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.

(ix) 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.

(x) 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.

(xi) 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.

(xii) Samcheok Eco Materials Co., Ltd.

For Samcheok Eco Materials Co., Ltd., ordinary shareholders have the right to buy the shares of preferred shareholders if preferred shareholders intend to sell their preferred stock until December 26, 2023, and ordinary shareholders shall guarantee the investment principle of preferred shareholders.

(xiii) Hyundai Green Power Co., Ltd.

As of September 30, 2021, the Group has call option against the financial investors (Korea Development Bank and others) and also has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when claimed by the financial investors at certain period of time in the future. Also, at certain period of time in the future, the Group has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Group”), the operating investor of Hyundai Green Power Co., Ltd., according to the conditions of the agreement and also has an obligation to sell its shares upon request from Hyundai Steel Group.

(xiv) KOSTURE Co., Ltd.

The Group acquires the shares with the settled amount of coal provided to KOSTURE Co., Ltd. every year until completion of the subscription set forth in the shareholders’ agreement.

(xv) Omisan Wind Power Co., Ltd.

When the Group requests Unison Co., Ltd. to transfer shares after the completion of the power generation complex, the Group has a right to purchase the shares at fair value.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of September 30, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(xvi) Changjuk Wind Power Co., Ltd.

In the case where non-controlling shareholders decide to dispose of their shares in Changjuk 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.

(xvii) Geumsungsan Wind Power Co., Ltd.

The Group has a right to purchase shares owned by Daemyung Energy Co., Ltd., within the range of 18%, for 3 years after the commencement of the operation.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of September 30, 2021 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 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. Shares cannot be wholly or partially transferred without prior consent of the majority of major stakeholders.
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.
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.		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.
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.
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.
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, 2021 and 2020 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of September 30, 2021 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 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 certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Yeonggwang Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy 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 is 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 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 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 prior written consent of financial institutions is obtained.
Bitsolar Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.
Omisan 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. Also, reimbursement to the lender can be restricted depending on the priority of the loans. Shares cannot be wholly or partially transferred without written consent of financial institutions.
Yangyang Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Industrial Solar 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.
KOSTURE Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Geumsungsan Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred for 3 years after the commencement of operation, and also cannot be transferred or disposed to the third party in a way not permitted in the financial documents without prior written consent of an agent bank.
Daewon Green Energy 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.
Cheongju Eco Park Co., Ltd.		Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied, or permitted by related financing contracts, or prior written consent of financial institutions is obtained.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	14,084,853				(23,474	)			—				(27,214	)			14,034,165
Buildings			22,599,497				(53,372	)			(9,810,462	)			(7,073	)			12,728,590
Structures			77,121,283				(172,205	)			(29,602,445	)			(13,205	)			47,333,428
Machinery			98,190,757				(144,743	)			(47,737,768	)			(515,041	)			49,793,205
Ships			2,054				—				(1,876	)			—				178
Vehicles			355,564				(1,615	)			(271,166	)			(117	)			82,666
Equipment			1,961,426				(170	)			(1,582,830	)			(42	)			378,384
Tools			1,225,829				(105	)			(1,059,084	)			(38	)			166,602
Construction-in-progress			32,004,566				(102,946	)			—				(157,530	)			31,744,090
Right-of-use assets			7,872,808				—				(3,715,137	)			—				4,157,671
Asset retirement costs			12,271,761				—				(5,123,577	)			(146,423	)			7,001,761
Others			14,497,815				—				(11,868,127	)			—				2,629,688
		W	282,188,213				(498,630	)			(110,772,472	)			(866,683	)			170,050,428

In millions of won		December 31, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	13,970,098				(23,475	)			—				(26,772	)			13,919,851
Buildings			21,773,824				(57,231	)			(9,150,218	)			(7,074	)			12,559,301
Structures			74,136,523				(180,009	)			(27,864,461	)			(13,207	)			46,078,846
Machinery			94,295,027				(157,785	)			(43,740,838	)			(515,402	)			49,881,002
Ships			2,482				—				(2,227	)			—				255
Vehicles			338,386				(632	)			(259,288	)			(115	)			78,351
Equipment			1,895,528				(227	)			(1,487,643	)			(42	)			407,616
Tools			1,195,721				(239	)			(1,003,295	)			(39	)			192,148
Construction-in-progress			31,121,255				(79,126	)			—				(157,530	)			30,884,599
Right-of-use assets			7,905,214				—				(3,363,048	)			—				4,542,166
Asset retirement costs			12,260,732				—				(4,701,138	)			(146,423	)			7,413,171
Others			13,979,980				—				(11,227,899	)			—				2,752,081
		W	272,874,770				(498,724	)			(102,800,055	)			(866,604	)			168,709,387

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Acquisition				Disposal				Depreciation				Impairment				Others				Ending balance
Land		W	13,943,326				8,986				(28,780	)			—				—				134,107				14,057,639
(Government grants)			(23,475	)			—				1				—				—				—				(23,474	)
Buildings			12,616,532				6,332				(13,490	)			(659,713	)			—				832,301				12,781,962
(Government grants)			(57,231	)			—				—				3,889				—				(30	)			(53,372	)
Structures			46,258,855				64,300				(221,004	)			(1,929,026	)			—				3,332,508				47,505,633
(Government grants)			(180,009	)			—				869				7,140				—				(205	)			(172,205	)
Machinery			50,038,787				210,344				(101,572	)			(4,354,287	)			—				4,144,676				49,937,948
(Government grants)			(157,785	)			—				245				13,230				—				(433	)			(144,743	)
Ships			255				—				—				(89	)			—				12				178
Vehicles			78,983				2,788				(4,242	)			(26,085	)			—				32,837				84,281
(Government grants)			(632	)			(26	)			—				324				—				(1,281	)			(1,615	)
Equipment			407,843				33,597				(1,223	)			(138,226	)			—				76,563				378,554
(Government grants)			(227	)			—				—				74				—				(17	)			(170	)
Tools			192,387				10,237				(72	)			(60,689	)			—				24,844				166,707
(Government grants)			(239	)			—				—				169				—				(35	)			(105	)
Construction-in-progress			30,963,725				8,682,207				(15,084	)			(186	)			(3,315	)			(7,780,311	)			31,847,036
(Government grants)			(79,126	)			1,482				—				—				—				(25,302	)			(102,946	)
Right-of-use assets			4,542,166				57,977				(11,670	)			(421,416	)			—				(9,386	)			4,157,671
Asset retirement costs			7,413,171				—				(209	)			(625,921	)			—				214,720				7,001,761
Others			2,752,081				3,629				(663	)			(629,308	)			(2	)			503,951				2,629,688
		W	168,709,387				9,081,853				(396,894	)			(8,820,120	)			(3,317	)			1,479,519				170,050,428

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won		December 31, 2020
		Beginning balance				Acquisition				Disposal				Depreciation				Impairment				Others				Ending balance
Land		W	13,848,063				5,330				(31,304	)			(273	)			—				121,510				13,943,326
(Government grants)			(21,817	)			—				2				—				—				(1,660	)			(23,475	)
Buildings			12,445,706				7,225				(16,015	)			(875,680	)			(2,107	)			1,057,403				12,616,532
(Government grants)			(61,920	)			—				—				5,206				—				(517	)			(57,231	)
Structures			45,178,870				36,091				(346,612	)			(2,313,920	)			(3,571	)			3,707,997				46,258,855
(Government grants)			(186,554	)			—				2,032				9,526				—				(5,013	)			(180,009	)
Machinery			49,907,300				407,521				(283,845	)			(5,526,816	)			(74,362	)			5,608,989				50,038,787
(Government grants)			(158,907	)			—				496				17,468				—				(16,842	)			(157,785	)
Ships			201				—				—				(106	)			—				160				255
Vehicles			70,585				3,880				(151	)			(35,036	)			—				39,705				78,983
(Government grants)			(2,275	)			—				4				2,064				—				(425	)			(632	)
Equipment			374,115				72,655				(86	)			(186,004	)			—				147,163				407,843
(Government grants)			(241	)			—				—				149				—				(135	)			(227	)
Tools			164,064				28,048				(193	)			(82,862	)			—				83,330				192,387
(Government grants)			(403	)			—				—				243				—				(79	)			(239	)
Construction-in-progress			28,419,470				12,726,469				(486	)			—				7,799				(10,189,527	)			30,963,725
(Government grants)			(61,211	)			8,783				—				—				—				(26,698	)			(79,126	)
Right-of-use assets			4,783,573				291,334				(827	)			(586,254	)			—				54,340				4,542,166
Asset retirement costs			7,374,527				131				(196	)			(819,708	)			—				858,417				7,413,171
Others			2,628,681				6,470				(8,145	)			(984,097	)			(366	)			1,109,538				2,752,081
		W	164,701,827				13,593,937				(685,326	)			(11,376,100	)			(72,607	)			2,547,656				168,709,387

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

19. Investment Properties

(1) Investment properties as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	199,264				—				—				199,264
Buildings			60,639				(31	)			(35,326	)			25,282
		W	259,903				(31	)			(35,326	)			224,546

In millions of won		December 31, 2020
		Acquisition cost				Government grants				Accumulated depreciation				Book value
Land		W	200,391				—				—				200,391
Buildings			59,347				(29	)			(34,514	)			24,804
		W	259,738				(29	)			(34,514	)			225,195

(2) Changes in investment properties for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Depreciation				Others				Ending balance
Land		W	200,391				—				(1,127	)			199,264
Buildings			24,833				(1,102	)			1,582				25,313
(Government grants)			(29	)			1				(3	)			(31	)
		W	225,195				(1,101	)			452				224,546

In millions of won		December 31, 2020
		Beginning balance				Depreciation				Others				Ending balance
Land		W	129,897				—				70,494				200,391
Buildings			28,696				(1,454	)			(2,409	)			24,833
(Government grants)			(13	)			1				(17	)			(29	)
		W	158,580				(1,453	)			68,068				225,195

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Rental income		W	2,517				7,331				3,162				6,733
Operating and maintenance expenses related to rental income			(376	)			(1,101	)			(360	)			(1,095	)
		W	2,141				6,230				2,802				5,638

(4) Fair value of investment properties as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Book value				Fair value				Book value				Fair value
Land		W	199,264				319,622				200,391				300,001
Buildings			25,282				36,216				24,804				44,597
		W	224,546				355,838				225,195				344,598

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 in consideration of the fluctuation on 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, 2021 and 2020 (Unaudited)

20. Construction Contracts

(1) Changes in total contract amount in which revenue is not yet recognized for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won

September 30, 2021

Beginning     balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

3,152,725

418,519

(677,416

)

2,893,828

(*) For the nine-month period ended September 30, 2021, the increased balance of contracts from new orders and foreign exchange impact is W492,509 million and the decreased balance of contracts due to changes in scope of construction work is W73,990 million.

In millions of won

December 31, 2020

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

2,735,141

1,229,759

(812,175

)

3,152,725

(*) For the year ended December 31, 2020, the increased balance of contracts from new orders and foreign exchange impact is W1,512,460 million and the decreased balance of contracts due to changes in scope of construction work is W282,701 million.

(2) Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won

September 30, 2021

Accumulated earned revenue

Accumulated expense

Accumulated profit

Unearned advance receipts

Nuclear power plant construction in UAE and others

W

22,010,764

20,722,921

1,287,843

21,883

In millions of won

December 31, 2020

Accumulated earned revenue

Accumulated expense

Accumulated profit

Unearned advance receipts

Nuclear power plant construction in UAE and others

W

21,460,431

20,242,735

1,217,696

97,348

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

20. Construction Contracts, Continued

(3) Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won

September 30, 2021

December 31, 2020

Contract assets (*1)

Contract liabilities (*2)

Contract assets (*1)

Contract liabilities (*2)

Nuclear power plant construction in UAE and others

W

179,589

6,404

79,662

88,126

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

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

(4) The contract with BOC (purchaser) states that disclosure of information related to UAE nuclear power plant construction projects such as contract date, contractual completion date, completion progress, unbilled construction, impairment losses, etc. are not allowed without consent from the purchaser. BOC did not agree to disclose such information. Accordingly, the Group did not disclose such information based on KIFRS 1115 129.2(2) as it is probable that BOC may file a lawsuit for breach of contract if the Group does so. Also, the Group reported to the audit committee that those items will not be disclosed in the notes to the consolidated financial statements.

(5) 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, 2021 are as follows:

In millions of won		September 30, 2021
		Effect from changes in accounting estimates																				Contract assets from construction contracts								Trade 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	—				7,444				(6,162	)			13,606				187,868				139,280				—				36,896				—
Plant maintenance & engineering service			1,703				(762	)			(603	)			(159	)			2,265				40,309				—				47,247				15,094
		W	1,703				6,682				(6,765	)			13,447				190,133				179,589				—				84,143				15,094

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

21. Intangible Assets other than Goodwill

(1) Intangible assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	830,405				(116	)			(683,862	)			—				146,427
Copyrights, patents rights and other industrial rights			102,946				—				(56,739	)			(9,178	)			37,029
Mining rights			617,267				—				(38,842	)			(536,375	)			42,050
Development expenditures			982,536				(3,969	)			(896,339	)			(19	)			82,209
Intangible assets under development			84,939				(7,295	)			—				(12,845	)			64,799
Usage rights of donated assets and others			592,885				—				(419,851	)			—				173,034
Leasehold rights			27,843				—				(22,127	)			—				5,716
Greenhouse gas emissions rights			38,088				—				—				—				38,088
Others			572,107				(72	)			(150,430	)			(12,011	)			409,594
		W	3,849,016				(11,452	)			(2,268,190	)			(570,428	)			998,946

In millions of won		December 31, 2020
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	775,667				(136	)			(623,504	)			—				152,027
Licenses and franchises			547				—				(547	)			—				—
Copyrights, patents rights and other industrial rights			101,866				—				(49,772	)			(9,178	)			42,916
Mining rights			604,703				—				(34,062	)			(528,251	)			42,390
Development expenditures			958,035				(5,043	)			(862,850	)			(19	)			90,123
Intangible assets under development			79,862				(7,203	)			—				(12,844	)			59,815
Usage rights of donated assets and others			592,930				—				(408,455	)			—				184,475
Leasehold rights			27,843				—				(21,503	)			—				6,340
Greenhouse gas emissions rights			61,373				—				—				—				61,373
Others			566,200				(75	)			(137,843	)			(12,011	)			416,271
		W	3,769,026				(12,457	)			(2,138,536	)			(562,303	)			1,055,730

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Acquisition				Disposal				Amortization				Others				Ending balance
Software		W	152,163				10,368				(1	)			(58,454	)			42,467				146,543
(Government grants)			(136	)			(9	)			—				49				(20	)			(116	)
Copyrights, patents rights and other industrial rights			42,916				102				(37	)			(5,870	)			(82	)			37,029
Mining rights			42,390				1,844				—				(3,500	)			1,316				42,050
Development expenditures			95,166				10				—				(28,073	)			19,075				86,178
(Government grants)			(5,043	)			—				—				1,074				—				(3,969	)
Intangible assets under development			67,018				28,792				—				—				(23,716	)			72,094
(Government grants)			(7,203	)			—				—				—				(92	)			(7,295	)
Usage rights of donated assets and others			184,475				—				—				(10,618	)			(823	)			173,034
Leasehold rights			6,340				—				—				(624	)			—				5,716
Greenhouse gas emissions rights			61,373				47,218				—				(20	)			(70,483	)			38,088
Others			416,346				756				—				(19,286	)			11,850				409,666
(Government grants)			(75	)			—				—				3				—				(72	)
		W	1,055,730				89,081				(38	)			(125,319	)			(20,508	)			998,946

In millions of won		December 31, 2020
		Beginning balance				Acquisition				Disposal				Amortization				Impairment				Others				Ending balance
Software		W	164,995				14,101				—				(77,501	)			—				50,568				152,163
(Government grants)			(235	)			—				—				99				—				—				(136	)
Copyrights, patents rights and other industrial rights			53,261				369				(390	)			(8,352	)			—				(1,972	)			42,916
Mining rights			43,723				1,664				—				(4,380	)			—				1,383				42,390
Development expenditures			93,843				10,273				—				(32,034	)			—				23,084				95,166
(Government grants)			(1,492	)			—				—				1,453				—				(5,004	)			(5,043	)
Intangible assets under development			60,490				53,638				—				—				(23	)			(47,087	)			67,018
(Government grants)			(11,029	)			—				—				—				—				3,826				(7,203	)
Usage rights of donated assets and others			193,161				—				—				(18,448	)			—				9,762				184,475
Leasehold rights			5,318				—				—				(831	)			—				1,853				6,340
Greenhouse gas emissions rights			41,656				37,109				(9,271	)			—				—				(8,121	)			61,373
Others			426,364				3,217				(46	)			(30,476	)			(3,576	)			20,863				416,346
(Government grants)			(79	)			—				—				4				—				—				(75	)
		W	1,069,976				120,371				(9,707	)			(170,466	)			(3,599	)			49,155				1,055,730

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won and thousands of Australian dollars

September 30, 2021

Type

Description

Currency

Amount

Remaining useful lives

Software

DAS MS-SQL CORE license

KRW

4,175

4 years

Copyrights, patents rights and other industrial rights

Smart technology verification and standard design project conducting right

KRW

2,468

1 year

Contributions to ARP NRC DC

KRW

26,089

6 years 3 months

Mining rights

Mining rights of Bylong mine

AUD

—

— (*)

Usage rights of donated assets and others

Sejong Haengbogdosi sharing charge

KRW

23,444

5 years and 2 months

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

KRW

9,226

8 years 9 months

Others

Occupancy and use of public waters

KRW

82,976

15 years and 4 months

Greenhouse gas emissions rights

KRW

38,088

—

Business rights

KRW

161,896

28 years and 2 months

(*) The carrying amount of mining rights is nil, 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, 2020

Type

Description

Currency

Amount

Remaining useful lives

Software

ERP system and others

KRW

81

2 months ~ 4 months

Copyrights, patents rights and other industrial rights

Smart technology verification and standard design project conducting right

KRW

4,936

1 year 9 months

Contributions to ARP NRC DC

KRW

29,219

7 years

Mining rights

Mining rights of Bylong mine

AUD

—

— (*)

Development expenditures

Electricity sales information system

KRW

8,229

1 year and 2 months

Usage rights of donated assets and others

Sejong Haengbogdosi sharing charge

KRW

26,847

5 years and 11 months

Dangjin power plant load facility usage right

KRW

1,574

3 months

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

KRW

10,016

9 years and 6 months

Others

Occupancy and use of public waters

KRW

87,035

16 years and 1 month

Greenhouse gas emissions rights

KRW

61,373

—

Business rights

KRW

166,207

28 years and 11 months

(*) The carrying amount of mining rights is nil, 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, 2021 and 2020, the Group recognized research and development expenses of W488,134 million and W467,190 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

22. Trade and Other Payables

Trade and other payables as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Trade payables		W	3,161,757				—				2,606,861				—
Non-trade payables			1,397,655				2,370,140				1,785,068				2,324,965
Accrued expenses			1,132,568				2,323				1,197,815				2,038
Leasehold deposits received			1,698				1,641				2,336				943
Other deposits received			79,187				69,739				83,505				67,645
Lease liabilities			590,511				3,919,259				576,665				4,044,431
Dividends payable			3,812				—				4,271				—
Others (*)			—				59,819				—				40,390
		W	6,367,188				6,422,921				6,256,521				6,480,412

(*) Details of others as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Advance received from local governments		W	—				4,278				—				4,278
Others			—				55,541				—				36,112
		W	—				59,819				—				40,390

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Current liabilities
Short-term borrowings		W	2,054,301				1,436,922
Current portion of long-term borrowings			1,863,779				677,982
Current portion of debt securities			9,598,216				8,565,301
Less: Current portion of discount on long-term borrowings			(1,834	)			(1,723	)
Less: Current portion of discount on debt securities			(6,254	)			(3,677	)
			13,508,208				10,674,805
Non-current liabilities
Long-term borrowings			2,178,762				3,018,898
Debt securities			60,151,392				56,188,234
Less: Discount on long-term borrowings			(14,505	)			(14,899	)
Less: Discount on debt securities			(154,145	)			(143,823	)
Add: Premium on debt securities			1,106				1,366
			62,162,610				59,049,776
		W	75,670,818				69,724,581

(2) Repayment schedule of borrowings and debt securities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
September 30, 2021
Type		Borrowings				Debt Securities
Less than 1 year		W	3,918,080				9,598,216
1~ 5 years			889,426				31,123,305
Over 5 years			1,289,336				29,028,087
		W	6,096,842				69,749,608

In millions of won
December 31, 2020
Type		Borrowings				Debt Securities
Less than 1 year		W	2,114,904				8,565,301
1~ 5 years			1,564,252				28,746,117
Over 5 years			1,454,646				27,442,117
		W	5,133,802				64,753,535

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won and thousands of foreign currencies

September 30, 2021

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

0.70 ~ 4.60

2021.10.05 ~ 2021.12.31

—

W

1,670,808

Foreign short-term borrowings

Shinhan Bank

0.38 ~ 0.40

2021.10.12 ~ 2021.12.27

USD

98,588

116,817

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD

131,359

155,646

Foreign short-term borrowings

Solar Construction Lending, LLC

5.00

2021.12.31

USD

93,705

111,030

W

2,054,301

In millions of won and thousands of foreign currencies

December 31, 2020

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

0.80 ~ 4.60

2021.01.05 ~ 2021.12.31

—

W

580,004

Electronic short-term bonds

KB Securities and others

0.75 ~ 1.35

2021.01.13 ~ 2021.03.18

—

470,000

Foreign short-term borrowings

Shinhan Bank

0.71 ~ 0.74

2021.01.04 ~ 2021.03.31

USD

55,393

60,268

Foreign short-term borrowings (*)

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD

73,704

81,290

Local bank overdraft

Woori Bank

Standard overdraft rate + 1.26

2021.02.26

—

29,960

Local bank overdraft

Korea Development Bank and others

1.42 ~ 1.88

2021.01.07 ~ 2021.04.26

—

215,400

W

1,436,922

(*) The contractual maturity is 2022 but is classified as short-term borrowing due to intention of early redemption in 3 months after borrowing.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won and thousands of foreign currencies
September 30, 2021
Type				Interest rate (%)				Maturity		Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others			0.50			2021~2044			—			W	2,618
		Facility			2.50~4.60			2022~2028			—				42,159
		Operating funds			2.33			2022			—				20,000
		Operating funds			1yr KoFC bond rate + 0.81~0.95			2022~2023			—				24,300
Hana Bank		Commercial Paper			3M CD+0.13~0.32			2021~2024			—				1,150,000
		Facility			4.60			2028			—				10,013
		Facility			3yr KTB rate-1.25 Standard overdraft rate+1.50			2021~2035			—				20,903
IBK		PF Refinancing			CD+1.25			2030			—				8,827
Export-Import Bank of Korea		Project loans			1.50			2026			—				14,731
		Facility			1.32			2028			—				32,000
		Operating funds			1.78			2023			—				15,700
Korea Energy Agency		Development of power resources			3yr KTB rate-2.25			2023~2025			—				1,730
		Facility			3yr KTB rate-2.25			2021~2024			—				1,128
		Project loans			—			2023			—				1,197
		Others			KTB rate-2.25			2024~2028			—				12,807
Shinhan Bank and others		Facility			CB rate+1.10			2028			—				15,020
		Commercial Paper			3M CD+0.38			2021~2025							150,000
		Others			3.95			2034			—				85,467
		Others			Standard overdraft rate+1.00			2034			—				85,467
Kookmin Bank		Facility			MOR+0.79 3M CD+1.79			2023~2031			—				61,083
Others		Facility			2.80~6.80			2028~2038			—				616,206
		Facility			CB rate+0.90~1.10 3M CD+1.60 Standard overdraft rate+1.50			2024~2037			—				90,429
		PF Refinancing			3.80~5.00			2030~2034			—				72,980
		PF Refinancing			1.75			2029			—				23,054
		Others			4.40~7.90			2022~2039							112,474
															2,670,293
Foreign long-term borrowings
Korea Energy Agency		Project loans			—			2021~2023		USD	8,744				10,360
Export-Import Bank of Korea and others		Direct loan and others			1M Libor+1.80~3.20			2036		USD	92,786				109,943
		Direct loan and others			3M Libor+2.75~3.70			2027		JOD	119,042				198,947
		PF Loan			6M Libor+1.70~2.50			2031		USD	103,340				122,447
		Others			3.88			2021		USD	288,812				342,213
POSCO and others		Shareholder’s loan			8.00			2031		USD	15,382				18,226
		Shareholder’s loan			8.00			2031		JOD	4,853				8,110
Samsung Life Insurance and others		Syndicated Loan			3.10~8.00			2032		JPY	5,144,387				54,437
Woori Bank and others		Syndicated Loan			JPY 6M Libor+2.00			2032		JPY	2,820,708				29,848
KiwoomSolar Power Professional Investor Private Placement Investment Trust V		Senior borrowing			3.90			2029		EUR	36,673				50,400
IFC and others		Others			6M Libor+5.00			2031		USD	241,132				285,718
Federal Financing Bank and others		PF Loan			2.39~6.00			2031~2038		USD	95,720				113,419
Others		Others			—			—		USD	23,782				28,180
															1,372,248
															4,042,541
Less: Discount on long-term borrowings															(16,339	)
Less: Current portion of long-term borrowings															(1,863,779	)
Add: Current portion of discount on long-term borrowings															1,834
														W	2,164,257

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2020
Type				Interest rate (%)				Maturity		Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others			0.50			2021~2044			—			W	2,946
		Facility			2.50~4.60			2021~2028			—				50,293
		Operating funds			2.33			2022			—				20,000
		Operating funds			1yr KoFC bond rate + 0.81~0.95			2022~2023			—				24,300
Hana Bank		Commercial Paper			3M CD+0.13~0.32			2021~2024			—				1,150,000
		Facility			4.60			2028			—				11,088
		Facility			3yr KTB rate-1.25 Standard overdraft rate+1.50~2.45			2021~2035			—				43,419
IBK		PF Refinancing			CD+1.25			2030			—				9,543
Export-Import Bank of Korea		Project loans			1.50			2026			—				16,204
		Facility			1.32			2028			—				32,000
		Operating funds			1.78			2023			—				15,700
Korea Energy Agency		Development of power resources			3yr KTB rate-2.25			2023~2025			—				2,509
		Facility			3yr KTB rate-2.25			2021~2024			—				1,527
		Project loans			—			2023			—				1,197
		Others			KTB rate-2.25			2024~2028			—				14,045
Shinhan Bank		Facility			CB rate+1.10			2028			—				16,632
		Others			3.95			2034			—				89,257
		Others			Standard overdraft rate+1.00			2034			—				89,257
Kookmin Bank		Facility			MOR+0.79 3M CD+1.79			2021~2031			—				46,512
Others		Facility			1.75~6.80			2026~2037			—				510,262
		Facility			CB rate+1.10~1.20 3M CD+1.60 Standard overdraft rate+1.50~2.45			2023~2037			—				89,506
		PF Refinancing			4.10			2030			—				26,509
		Others			3.90~7.90			2023~2039			—				222,356
															2,485,062
Foreign long-term borrowings
Korea Energy Agency		Project loans			—			2021~2023		USD	8,744				9,513
Export-Import Bank of Korea and others		Direct loan and others			1M Libor+1.80~3.20			2036		USD	96,014				104,463
		Direct loan and others			3M Libor+2.75~3.70			2027		JOD	132,228				202,912
		PF Loan			6M Libor+1.70~2.50			2032		USD	111,225				121,013
		Others			3.88			2021		USD	289,509				314,986
POSCO and others		Shareholder’s loan			8.00			2023		USD	14,061				15,298
		Shareholder’s loan			8.00			2031		JOD	4,853				7,447
Samsung Life Insurance and others		Syndicated Loan			3.10			2032		JPY	4,682,816				49,369
Woori Bank and others		Syndicated Loan			JPY 6M Libor+2.00			2032		JPY	3,020,746				31,847
IFC and others		Others			6M Libor+5.00			2031		USD	224,115				243,837
Federal Financing Bank and others		PF Loan			2.39~6.00			2031~2038		USD	97,347				105,913
Others		Others			—			—		USD	4,798				5,220
															1,211,818
															3,696,880
Less: Discount on long-term borrowings															(16,622	)
Less: Current portion of long-term borrowings															(677,982	)
Add: Current portion of discount on long-term borrowings															1,723
														W	3,003,999

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
		Issue date				Maturity				Interest rate (%)				September 30, 2021				December 31, 2020
Electricity Bonds			2011.10.18~2021.09.23				2021.10.18~2049.10.24				1.02~4.20			W	30,610,000				27,810,000
Corporate Bonds (*)			2009.10.16~2021.09.15				2021.10.12~2051.06.29				0.86~6.00				27,384,992				26,463,577
															57,994,992				54,273,577
Less: Discount on local debt securities															(50,391	)			(46,730	)
Less: Current portion of local debt securities															(7,383,167	)			(7,243,217	)
Add: Current portion of discount on local debt securities															1,972				2,108
														W	50,563,406				46,985,738

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

(6) Foreign debt securities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won and thousands of foreign currencies
September 30, 2021
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	330,233
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00		USD	314,717				372,908
FY-04		2004.04.23		2034.04.23		5.13		USD	286,920				339,972
FY-12		2012.09.19		2022.09.19		3.00		USD	750,000				888,675
FY-14		2014.07.30		2029.07.30		3.57		USD	100,000				118,490
FY-15		2015.06.15		2025.06.15		3.25		USD	300,000				355,470
FY-17		2017.06.19~2017.07.25		2022.06.19~2027.07.25		2.63~3.13		USD	800,000				947,920
FY-17		2017.10.30		2037.10.30		1.70		EUR	40,000				54,972
FY-17		2017.11.16		2037.11.16		2.36		SEK	450,000				60,552
FY-18		2018.06.07~2018.07.25		2023.06.07~2023.07.25		3.75~3.88		USD	1,400,000				1,658,860
FY-18		2018.03.13		2028.03.13		3.35		HKD	1,650,000				251,114
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38		USD	800,000				947,920
FY-19		2019.02.27		2024.02.27		0.13		CHF	200,000				253,564
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05		CHF	300,000				380,346
FY-19		2019.07.22		2022.07.22		2.38		USD	300,000				355,470
FY-19		2019.10.30		2024.10.30		3M BBSW+0.97		AUD	300,000				255,102
FY-19		2019.12.19		2037.12.31		3.30~5.70		USD	380,296				450,613
FY-20		2020.02.03		2025.02.03		2.13		USD	300,000				355,470
FY-20		2020.05.06		2025.05.06		1.75		USD	500,000				592,450
FY-20		2020.06.15		2025.06.15		1.13		USD	500,000				592,450
FY-20		2020.08.03		2026.02.03		1.00		USD	300,000				355,470
FY-21		2021.01.27		2026.01.27		0.75		USD	450,000				533,205
FY-21		2021.04.27		2026.04.27		1.25		USD	500,000				592,450
FY-21		2021.08.09		2026.08.09		1.25		USD	300,000				355,470
FY-21		2021.09.24		2026.09.24		1.13		USD	300,000				355,470
													11,754,616
Less: Discount on foreign debt securities													(110,008	)
Add: Premium on foreign debt securities													1,106
Less: Current portion of foreign debt securities													(2,215,049	)
Add: Current portion of discount on foreign debt securities													4,282
												W	9,434,947

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2020
Type		Issue date		Maturity		Interest rate (%)		Foreign currency				Local currency
FY-96		1996.04.01~1996.12.06		2026.12.01~2096.04.01		6.00~7.95		USD	278,701			W	303,227
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00		USD	314,717				342,412
FY-04		2004.04.23		2034.04.23		5.13		USD	286,920				312,169
FY-11		2011.07.13		2021.07.13		4.75		USD	500,000				544,000
FY-12		2012.09.19		2022.09.19		3.00		USD	750,000				816,000
FY-14		2014.07.30		2029.07.30		3.57		USD	100,000				108,800
FY-15		2015.06.15		2025.06.15		3.25		USD	300,000				326,400
FY-16		2016.01.21		2021.07.21		2.50		USD	300,000				326,400
FY-17		2017.06.19~2017.07.25		2022.06.19~2027.07.25		2.63~3.13		USD	800,000				870,400
FY-17		2017.10.30		2037.10.30		1.70		EUR	40,000				53,530
FY-17		2017.11.16		2037.11.16		2.36		SEK	450,000				59,747
FY-18		2018.01.29~2018.07.25		2021.01.29~2023.07.25		3.00~3.88		USD	1,800,000				1,958,400
FY-18		2018.03.13		2028.03.13		3.35		HKD	1,650,000				231,578
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38		USD	800,000				870,400
FY-19		2019.02.27		2024.02.27		0.13		CHF	200,000				246,866
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05		CHF	300,000				370,299
FY-19		2019.07.22		2022.07.22		2.38		USD	300,000				326,400
FY-19		2019.10.30		2024.10.30		3M BBSW+0.97		AUD	300,000				250,968
FY-19		2019.12.19		2037.12.31		3.30~5.70		USD	387,098				421,163
FY-20		2020.02.03		2025.02.03		2.13		USD	300,000				326,400
FY-20		2020.05.06		2025.05.06		1.75		USD	500,000				544,000
FY-20		2020.06.15		2025.06.15		1.13		USD	500,000				544,000
FY-20		2020.08.03		2026.02.03		1.00		USD	300,000				326,399
													10,479,958
Less: Discount on foreign debt securities													(100,770	)
Add: Premium on foreign debt securities													1,366
Less: Current portion of foreign debt securities													(1,322,084	)
Add: Current portion of discount on foreign debt securities													1,569
												W	9,060,039

(7) Changes in borrowings and debt securities for the nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021				September 30, 2020
Beginning balance		W	69,724,581				67,876,541
Cash flow			4,792,171				2,259,823
Effect of exchange rate fluctuations			1,007,649				208,232
Others			146,417				(63,376	)
Ending balance		W	75,670,818				70,281,220

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

24. Lease

1) Group as a lessee

(1) Lease contracts

The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized W139,481 million and W29,509 million respectively, as expense for the nine-month periods ended September 30, 2021 and 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 W 1,430 million and W1,646 million respectively, as expense for the nine-month periods ended September 30, 2021 and 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, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Acquisition cost				Accumulated depreciation				Book value
Land		W	813,924				(147,858	)			666,066
Buildings			100,833				(42,546	)			58,287
Structures			25,694				(4,831	)			20,863
Machinery			1,308				(710	)			598
Ships			4,259,083				(1,138,566	)			3,120,517
Vehicles			31,403				(17,833	)			13,570
Others (*)			2,640,563				(2,362,793	)			277,770
		W	7,872,808				(3,715,137	)			4,157,671

(*) Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

In millions of won		December 31, 2020
		Acquisition cost				Accumulated depreciation				Book value
Land		W	811,014				(104,435	)			706,579
Buildings			82,749				(35,527	)			47,222
Structures			24,175				(3,689	)			20,486
Machinery			1,308				(613	)			695
Ships			4,280,331				(842,968	)			3,437,363
Vehicles			29,281				(15,756	)			13,525
Others (*)			2,676,356				(2,360,060	)			316,296
		W	7,905,214				(3,363,048	)			4,542,166

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

24. Lease, Continued

(3) Changes in right-of-use assets for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Increase		Depreciation				Decrease				Others				Ending balance
Land		W	706,579			5,703			(42,842	)			—				(3,374	)		666,066
Buildings			47,222			29,985			(19,580	)			(1,361	)			2,021			58,287
Structures			20,486			1,519			(1,142	)			—				—			20,863
Machinery			695			—			(97	)			—				—			598
Ships			3,437,363			—			(312,896	)			—				(3,950	)		3,120,517
Vehicles			13,525			7,694			(6,063	)			(7	)			(1,579	)		13,570
Others			316,296			13,076			(38,796	)			(10,302	)			(2,504	)		277,770
		W	4,542,166			57,977			(421,416	)			(11,670	)			(9,386	)		4,157,671
In millions of won		December 31, 2020
		Beginning balance				Increase		Depreciation				Decrease				Others				Ending balance
Land		W	644,074			12,269			(52,069	)			—				102,305			706,579
Buildings			34,577			53,182			(37,609	)			(803	)			(2,125	)		47,222
Structures			25,644			260			(1,485	)			—				(3,933	)		20,486
Machinery			824			—			(129	)			—				—			695
Ships			3,688,289			183,789			(427,221	)			—				(7,494	)		3,437,363
Vehicles			13,708			9,009			(7,747	)			(21	)			(1,424	)		13,525
Others			376,457			32,825			(59,994	)			(3	)			(32,989	)		316,296
		W	4,783,573			291,334			(586,254	)			(827	)			54,340			4,542,166

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

24. Lease, Continued

(4) Lease liabilities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Less than 1 year		W	617,249				614,442
1 ~ 5 years			2,171,223				2,133,538
More than 5 years			2,258,443				2,461,557
			5,046,915				5,209,537
Less: Discount			(537,145	)			(588,441	)
Present value of lease payment		W	4,509,770				4,621,096

(5) The details of the liquidity classification of lease liabilities as September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Current lease liabilities		W	590,511				576,665
Non-current lease liabilities			3,919,259				4,044,431
		W	4,509,770				4,621,096

(6) Changes in lease liabilities for the nine—month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	4,621,096				51,102				(514,733	)			69,485				282,820				4,509,770
In millions of won		December 31, 2020
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	5,070,133				280,114				(725,759	)			111,782				(115,174	)			4,621,096

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

24. Lease, Continued

(7) Details of expense relating to lease contracts as lessee for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Depreciation of right-of-use assets		W	135,675				421,416				149,598				448,878
Interest expenses of lease liabilities			22,438				69,485				28,515				85,227
Lease expenses for short-term leases			82,529				139,481				14,959				29,509
Lease expenses for leases of low-value assets			594				1,430				449				1,646
Variable lease payments			35,125				45,721				9,786				27,074
		W	276,361				677,533				203,307				592,334

(8) The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value asset, amounts to W701,364 million and W610,757 million, for the nine-month periods ended September 30, 2021 and 2020, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

24. Lease, Continued

2) Group as a lessor

(1) Finance lease contracts

The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25-year lease term, and an 89.1MW level Fujeij wind power plant over a 20-year lease term. Also, the Group has provided fly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 26 energy storage system installation projects and 123 energy efficiency contracts as finance leases with a lease term of 2 to 11 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, 2021 and 2020 are as follows:

In millions of won

September 30, 2021

September 30, 2020

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

28,257

83,884

28,002

89,691

(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, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Less than 1 year		W	171,741				162,211
1 ~ 2 years			163,431				148,485
2 ~ 3 years			157,230				144,913
3 ~ 4 years			154,936				139,605
4 ~ 5 years			152,457				136,962
More than 5 years			1,626,275				1,583,576
			2,426,070				2,315,752
Less: Unearned finance income			(1,224,589	)			(1,192,686	)
Net investment in the lease (*)		W	1,201,481				1,123,066

(*) Including the present value of unguaranteed residual value amounting to W19,125 million and W16,407 million, as of September 30, 2021 and December 31, 2020, respectively.

The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 1.39% up to 16.99% per year as of September 30, 2021. (prior year : 1.39% ~ 16.60%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the nine-month periods ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	990				862
Bad debt expense			—				128
Reversal of allowance of doubtful accounts			(217	)			—
Ending balance		W	773				990

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Net defined benefit asset		W	—				7,231
Net defined benefit obligations			2,016,403				1,907,013
Other long-term employee benefit obligations			3,314				3,847

(2) Principal assumptions on actuarial valuation as of September 30, 2021 and December 31, 2020 are as follows:

		September 30, 2021		December 31, 2020
Discount rate		2.41% ~ 2.54%		1.87% ~ 2.12%
Future salary and benefit levels		4.28%		4.28%
Weighted average duration		10.11 years		10.77 years

(3) Details of expense relating to defined benefit plans for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Current service cost		W	129,133				385,582				121,972				357,070
Interest cost			22,872				66,980				20,793				60,627
Expected return on plan assets			(12,933	)			(38,594	)			(10,550	)			(31,288	)
Past service cost			—				—				—				(2,027	)
		W	139,072				413,968				132,215				384,382

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

In millions of won		September 30, 2021								September 30, 2020
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Cost of sales		W	101,008				304,237				96,917				280,593
Selling and administrative expenses			24,118				67,498				21,789				63,483
Others (Construction-in-progress and others)			13,946				42,233				13,509				40,306
		W	139,072				413,968				132,215				384,382

In addition, for the nine-month periods ended September 30, 2021 and 2020, employee benefit obligations expenses of W48,753 million and W43,285 million, respectively, are recognized as cost of sales, and W7,866 million and W5,973 million, respectively, are recognized as selling and administrative expenses, and W9,043 million and W8,452 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, 2021 and 2020 (Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Present value of defined benefit obligation from funded plans		W	4,637,386				4,570,614
Fair value of plan assets			(2,620,983	)			(2,670,832	)
Net liabilities incurred from defined benefit plans		W	2,016,403				1,899,782

(5) Changes in the present value of defined benefit obligations for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	4,570,614				4,035,400
Current service cost			385,582				509,520
Interest cost			66,980				83,248
Remeasurement component			(167,038	)			84,385
Past service cost			—				(2,027	)
Actual payments			(218,814	)			(139,956	)
Others			62				44
Ending balance		W	4,637,386				4,570,614

(6) Changes in the fair value of plan assets for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	2,670,832				2,111,313
Expected return			38,594				42,742
Remeasurement component			(3,599	)			(390	)
Contributions by the employers			12,782				582,275
Actual payments			(97,626	)			(65,108	)
Ending balance		W	2,620,983				2,670,832

In addition, loss on accumulated remeasurement component amounting to W7,703 million and W169,234 million has been recognized as other comprehensive income or loss for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Equity instruments		W	273,632				253,358
Debt instruments			759,918				822,582
Bank deposit			281,658				284,655
Others			1,305,775				1,310,237
		W	2,620,983				2,670,832

For the nine-month period ended September 30, 2021 and for the year ended December 31, 2020, actual returns on plan assets amounted to W34,995 million and W42,352 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Actuarial gain from changes in financial assumptions		W	(215,148	)			(2,979	)
Experience adjustments, etc.			48,110				87,364
Expected return			3,599				390
		W	(163,439	)			84,775

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, 2021 and 2020 (Unaudited)

26. Provisions

(1) Provisions as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Employment benefits
Provisions for employment benefits		W	1,028,106				—				1,024,574				—
Litigation
Litigation provisions			32,172				41,952				46,287				66,715
Decommissioning cost
Nuclear plants			—				17,217,047				—				16,974,884
Spent fuel			405,017				948,025				487,529				866,472
Radioactive waste			84,395				1,840,401				46,369				1,845,244
PCBs			—				109,541				—				119,019
Other recovery provisions			—				29,982				—				25,840
Others
Power plant regional support program			162,102				—				144,272				—
Transmission regional support program			101,210				—				96,895				—
Provisions for financial guarantee			22,039				64,434				22,250				44,104
Provisions for RPS			—				—				9,126				—
Provisions for greenhouse gas emissions obligations			—				—				393,121				—
Others			213,027				108,997				181,241				133,294
		W	2,048,068				20,360,379				2,451,664				20,075,572

(2) Changes in provisions for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Increase in provision				Payment				Reversal				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	1,024,574				796,193				(781,524	)			(11,146	)			9				1,028,106
Litigation
Litigation provisions			113,002				18,331				(48,032	)			(9,177	)			—				74,124
Decommissioning cost
Nuclear plants			16,974,884				282,098				(39,935	)			—				—				17,217,047
Spent fuel			1,354,001				345,295				(346,254	)			—				—				1,353,042
Radioactive waste			1,891,613				52,364				(19,181	)			—				—				1,924,796
PCBs			119,019				1,636				(11,114	)			—				—				109,541
Other recovery provisions			25,840				432				(257	)			—				3,967				29,982
Others
Power plant regional support program			144,272				44,200				(31,766	)			—				5,396				162,102
Transmission regional support program			96,895				115,684				(111,369	)			—				—				101,210
Provisions for financial guarantee			66,354				29,181				(8,769	)			(579	)			286				86,473
Provisions for RPS			9,126				342,097				(327,039	)			(24,184	)			—				—
Provisions for greenhouse gasemissions obligations			393,121				—				(283,315	)			(134,759	)			24,953				—
Others			314,535				70,525				(47,012	)			(17,415	)			1,391				322,024
		W	22,527,236				2,098,036				(2,055,567	)			(197,260	)			36,002				22,408,447

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September 30, 2021 and 2020 (Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows, continued:

In millions of won		December 31, 2020
		Beginning balance				Increase in provision				Payment				Reversal				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	975,619				1,078,382				(1,028,218	)			—				(1,209	)			1,024,574
Litigation
Litigation provisions			88,398				81,990				(34,662	)			(22,724	)			—				113,002
Decommissioning cost
Nuclear plants			15,994,039				1,028,580				(47,735	)			—				—				16,974,884
Spent fuel			1,355,280				394,642				(395,921	)			—				—				1,354,001
Radioactive waste			1,888,082				71,529				(67,998	)			—				—				1,891,613
PCBs			152,981				3,017				(14,839	)			(22,140	)			—				119,019
Other recovery provisions			10,773				15,280				—				—				(213	)			25,840
Others
Power plant regional support program			140,133				39,445				(42,935	)			—				7,629				144,272
Transmission regional support program			139,785				151,796				(194,686	)			—				—				96,895
Provisions for tax			—				—				(24	)			25				(1	)			—
Provisions for financial guarantee			81,357				11,303				(20,962	)			(5,317	)			(27	)			66,354
Provisions for RPS			2,889				494,199				(487,962	)			—				—				9,126
Provisions for greenhouse gasemissions obligations			682,459				331,684				(633,482	)			65,389				(52,929	)			393,121
Others			158,974				210,051				(48,919	)			(4,593	)			(978	)			314,535
		W	21,670,769				3,911,898				(3,018,343	)			10,640				(47,728	)			22,527,236

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September 30, 2021 and 2020 (Unaudited)

27. Government Grants

(1) Government grants as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Land		W	(23,474	)			(23,475	)
Buildings			(53,372	)			(57,231	)
Structures			(172,205	)			(180,009	)
Machinery			(144,743	)			(157,785	)
Vehicles			(1,615	)			(632	)
Equipment			(170	)			(227	)
Tools			(105	)			(239	)
Construction-in-progress			(102,946	)			(79,126	)
Investment properties			(31	)			(29	)
Software			(116	)			(136	)
Development expenditures			(3,969	)			(5,043	)
Intangible assets under development			(7,295	)			(7,203	)
Other intangible assets			(72	)			(75	)
		W	(510,113	)			(511,210	)

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September 30, 2021 and 2020 (Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Beginning balance				Receipt				Acquisition				Offset the items of depreciation expense and others				Disposal				Others				Ending balance
Cash		W	—				(25,377	)			—				—				—				25,377				—
Land			(23,475	)			—				—				—				1				—				(23,474	)
Buildings			(57,231	)			—				—				3,889				—				(30	)			(53,372	)
Structures			(180,009	)			—				—				7,140				869				(205	)			(172,205	)
Machinery			(157,785	)			—				—				13,230				245				(433	)			(144,743	)
Vehicles			(632	)			—				(26	)			324				—				(1,281	)			(1,615	)
Equipment			(227	)			—				—				74				—				(17	)			(170	)
Tools			(239	)			—				—				169				—				(35	)			(105	)
Construction-in-progress			(79,126	)			—				1,482				—				—				(25,302	)			(102,946	)
Investment properties			(29	)			—				—				1				—				(3	)			(31	)
Software			(136	)			—				(9	)			49				—				(20	)			(116	)
Development expenditures			(5,043	)			—				—				1,074				—				—				(3,969	)
Intangible assets under development			(7,203	)			—				—				—				—				(92	)			(7,295	)
Other intangible assets			(75	)			—				—				3				—				—				(72	)
		W	(511,210	)			(25,377	)			1,447				25,953				1,115				(2,041	)			(510,113	)

In millions of won		December 31, 2020
		Beginning balance				Receipt				Acquisition				Offset the items of depreciation expense and others				Disposal				Others				Ending balance
Cash		W	—				(41,209	)			—				—				—				41,209				—
Land			(21,817	)			—				—				—				2				(1,660	)			(23,475	)
Buildings			(61,920	)			—				—				5,206				—				(517	)			(57,231	)
Structures			(186,554	)			—				—				9,526				2,032				(5,013	)			(180,009	)
Machinery			(158,907	)			—				—				17,468				496				(16,842	)			(157,785	)
Vehicles			(2,275	)			—				—				2,064				4				(425	)			(632	)
Equipment			(241	)			—				—				149				—				(135	)			(227	)
Tools			(403	)			—				—				243				—				(79	)			(239	)
Construction-in-progress			(61,211	)			—				8,783				—				—				(26,698	)			(79,126	)
Investment properties			(13	)			—				—				1				—				(17	)			(29	)
Software			(235	)			—				—				99				—				—				(136	)
Development expenditures			(1,492	)			—				—				1,453				—				(5,004	)			(5,043	)
Intangible assets under development			(11,029	)			—				—				—				—				3,826				(7,203	)
Other intangible assets			(79	)			—				—				4				—				—				(75	)
		W	(506,176	)			(41,209	)			8,783				36,213				2,534				(11,355	)			(511,210	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

28. Deferred Revenue

Deferred revenue for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows which are included in current and non-current non-financial liabilities in the consolidated statements of financial position:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	9,868,189				9,201,538
Increase			791,757				1,310,128
Recognized as revenue			(490,931	)			(643,477	)
Ending balance		W	10,169,015				9,868,189

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September 30, 2021 and 2020 (Unaudited)

29. Non-financial Liabilities

Non-financial liabilities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Current				Non-current				Current				Non-current
Advance received		W	3,986,950				402,801				3,693,043				331,596
Unearned revenue			46,024				5,955				35,068				6,122
Deferred revenue			648,314				9,520,701				625,596				9,242,593
Withholdings			454,665				4,896				257,059				9,909
Others			1,419,440				98,155				1,360,684				71,721
		W	6,555,393				10,032,508				5,971,450				9,661,941

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September 30, 2021 and 2020 (Unaudited)

30. Contributed Capital

(1) Details of share capital as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won except share information

September 30, 2021

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, 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.

(2) Details in number of floating capital stock for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

Number of shares		September 30, 2021				December 31, 2020
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, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Share premium		W	843,758				843,758

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September 30, 2021 and 2020 (Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Legal reserve (*)		W	1,604,910				1,604,910
Voluntary reserves			33,282,816				32,179,066
Retained earnings before appropriations			13,905,587				17,349,625
Retained earnings		W	48,793,313				51,133,601

(*) The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders.

(2) Details of voluntary reserves as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
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			27,465,367				26,361,617
Reserve for equalizing dividends			210,000				210,000
		W	33,282,816				32,179,066

(*) 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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	51,133,601				49,202,133
Profit (loss) for the period attributed to owners of the controlling company			(1,655,361	)			1,991,347
Changes in equity method retained earnings			(3,273	)			3,181
Remeasurements of defined benefit liability, net of tax			94,520				(62,857	)
Dividends paid			(780,628	)			—
Transactions between consolidated entities			—				(203	)
Others			4,454				—
Ending balance		W	48,793,313				51,133,601

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September 30, 2021 and 2020 (Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(4) Dividends paid for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won

September 30, 2021

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

1,216

780,628

In millions of won

December 31, 2020

Number of shares issued

Number of treasury stocks

Number of shares eligible for dividends

Dividends paid per share (In won)

Dividends paid

Common shares

641,964,077

—

641,964,077

W

—

—

(5) Changes in retained earnings of investments in associates and joint ventures for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	361				(2,820	)
Changes			(3,273	)			3,181
Ending balance		W	(2,912	)			361

(6) Changes in remeasurement components related to defined benefit liability for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Beginning balance		W	(169,234	)			(117,779	)
Changes			156,253				(77,828	)
Income tax effect			(61,733	)			14,971
Transfer to reserve for business expansion			67,011				11,402
Ending balance		W	(7,703	)			(169,234	)

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September 30, 2021 and 2020 (Unaudited)

32. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interests) as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
Issuer		Hybrid bond		Issued date				Maturity				Yield (%)				September 30, 2021				December 31, 2020
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, 2021 and 2020 (Unaudited)

33. Other Components of Equity

(1) Other components of equity as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Other capital surplus		W	1,231,267				1,224,105
Accumulated other comprehensive loss			(49,978	)			(409,577	)
Other equity			13,294,973				13,294,973
		W	14,476,262				14,109,501

(2) Changes in other capital surplus for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021												December 31, 2020
			Gains on disposal of treasury stocks				Others				Subtotal				Gains on disposal of treasury stocks				Others				Subtotal
Beginning balance		W	387,524				836,581				1,224,105				387,524				838,840				1,226,364
Changes in consolidation scope			—				44				44				—				—				—
Issuance of share capital of subsidiary and others			—				(334	)			(334	)			—				(148	)			(148	)
Others			—				7,452				7,452				—				(2,111	)			(2,111	)
Ending balance		W	387,524				843,743				1,231,267				387,524				836,581				1,224,105

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September 30, 2021 and 2020 (Unaudited)

33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		Financial assets 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 credit				Reserve for gain (loss) on valuation of derivatives				Total
Beginning balance		W	(101,132	)			10,091				(340,930	)			22,394				(409,577	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			59,219				—				—				—				59,219
Shares in other comprehensive income of associates and joint ventures, net of tax			—				297,373				—				—				297,373
Foreign currency translation of foreign operations, net of tax			—				—				25,626				—				25,626
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				(18,165	)			(18,165	)
Others			(4,454	)			—				—				—				(4,454	)
Ending balance		W	(46,367	)			307,464				(315,304	)			4,229				(49,978	)
In millions of won		December 31, 2020
		Financial assets 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 credit				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			(8,533	)			—				—				—				(8,533	)
Shares in other comprehensive loss of associates and joint ventures, net of tax			—				(132,805	)			—				—				(132,805	)
Foreign currency translation of foreign operations, net of tax			—				—				(46,032	)			—				(46,032	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				58,523				58,523
Ending balance		W	(101,132)				10,091				(340,930	)			22,394				(409,577	)

(4) Other equity as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
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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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

34. Sales

Details of sales for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021
		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	15,880,314				43,248,393				107,305				335,441				15,987,619				43,583,834
Electricity			15,551,044				42,427,585				—				—				15,551,044				42,427,585
Heat supply			8,277				133,797				—				—				8,277				133,797
Others			320,993				687,011				107,305				335,441				428,298				1,022,452
Sales related to rendering of services			63,078				168,197				48,564				136,056				111,642				304,253
Sales related to construction services			33,395				96,463				163,583				580,953				196,977				677,416
Revenue related to transfer of assets from customers			165,981				490,931				—				—				165,981				490,931
		W	16,142,768				44,003,984				319,452				1,052,450				16,462,219				45,056,434
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	15,880,314				43,248,393				107,305				335,441				15,987,619				43,583,834
Performance obligations satisfied over time			262,454				755,591				212,147				717,009				474,600				1,472,600
		W	16,142,768				44,003,984				319,452				1,052,450				16,462,219				45,056,434
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

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September 30, 2021 and 2020 (Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Salaries		W	299,012				840,153				286,503				801,281
Retirement benefit expense			26,369				75,364				23,915				69,456
Welfare and benefit expense			49,151				113,760				33,254				99,389
Insurance expense			5,121				11,840				2,499				8,821
Depreciation			54,924				162,795				57,253				164,174
Amortization of intangible assets			22,947				68,306				19,055				54,752
Bad debt expense			12,761				15,296				(3,891	)			15,074
Commission			103,400				271,899				99,888				299,620
Advertising expense			6,315				18,866				6,580				18,942
Training expense			835				2,565				1,088				3,136
Vehicle maintenance expense			2,248				6,321				2,748				6,919
Publishing expense			482				2,157				541				2,065
Business promotion expense			826				2,277				935				2,705
Rent expense			13,688				29,639				14,321				27,542
Telecommunication expense			2,118				6,652				2,244				6,682
Transportation expense			183				560				148				808
Taxes and dues			5,107				76,285				1,013				58,344
Expendable supplies expense			1,585				5,064				1,719				5,616
Water, light and heating expense			3,027				9,105				2,961				9,892
Repairs and maintenance expense			19,722				53,489				10,851				41,265
Ordinary development expense			53,884				143,116				47,298				123,442
Travel expense			2,132				7,709				2,803				8,790
Clothing expense			1,015				3,823				3,259				6,540
Survey and analysis expense			210				617				194				573
Membership fee			199				1,155				139				1,115
Others			43,540				106,948				30,229				89,964
		W	730,801				2,035,761				647,547				1,926,907

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September 30, 2021 and 2020 (Unaudited)

36. Other Income and Expenses

(1) Other income for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Reversal of other provisions		W	—				6,559				2,269				22,161
Reversal of other allowance for doubtful accounts			19				98				6,685				2,465
Gains on government grants			188				386				52				181
Gains on assets contributed			572				3,483				693				23,177
Gains on liabilities exempted			61				1,783				27				1,240
Compensation and reparations revenue			14,179				67,898				41,398				81,795
Revenue from foundation fund			1				1				—				—
Revenue from research contracts			1,645				3,711				1,456				2,138
Rental income			51,331				152,006				49,431				145,884
Others			4,030				25,124				15,418				29,235
		W	72,026				261,049				117,429				308,276

(2) Other expenses for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Compensation and reparations expenses		W	281				876				3,095				11,872
Accretion expenses of other provisions			1,966				3,055				590				704
Depreciation expenses on investment properties			376				1,101				360				1,095
Depreciation expenses on idle assets			879				2,733				1,640				4,916
Other bad debt expense			3,978				11,046				—				502
Donations			20,559				88,004				211,258				300,453
Others			8,821				19,961				4,949				12,325
		W	36,860				126,776				221,892				331,867

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September 30, 2021 and 2020 (Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		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	22,807				45,081				25,570				81,733
Gains on disposal of intangible assets			1				1				—				1,556
Reversal of impairment losses on property, plant and equipment			—				—				1,068				7,805
Gains on foreign currency translation			16,349				22,955				—				6,862
Gains on foreign currency transactions			15,784				33,051				11,785				34,937
Gains on insurance proceeds			—				144				3,124				8,789
Others			60,406				188,404				50,573				224,527
Other losses
Losses on disposal of property, plant and equipment			(14,792	)			(43,850	)			(36,251	)			(55,504	)
Losses on disposal of intangible assets			(1	)			(38	)			—				—
Losses on impairment of property, plant and equipment			(2	)			(3,317	)			—				(9,162	)
Losses on impairment of intangible assets			—				—				—				(3,505	)
Losses on foreign currency translation			(8,839	)			(13,006	)			(7,785	)			(9,436	)
Losses on foreign currency transactions			(22,876	)			(44,008	)			(5,965	)			(37,591	)
Others			(9,888	)			(106,991	)			(37,785	)			(95,169	)
		W	58,949				78,426				4,334				155,842

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September 30, 2021 and 2020 (Unaudited)

38. Finance Income

Finance income for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Interest income		W	54,994				162,126				58,620				189,196
Dividends income			3,029				9,172				564				4,649
Gains on disposal of financial assets			3,063				5,456				239				4,065
Gains on valuation of financial assets at fair value through profit or loss			696				2,817				881				10,872
Gains on valuation of derivatives			474,131				845,687				—				254,215
Gains on transaction of derivatives			50,358				104,498				27,569				134,835
Gains on foreign currency translation			54,598				131,146				290,624				139,045
Gains on foreign currency transactions			3,621				11,893				6,084				14,152
Other finance income			58				1,048				365				651
		W	644,548				1,273,843				384,946				751,680

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September 30, 2021 and 2020 (Unaudited)

39. Finance Expenses

Finance expenses for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021								September 30, 2020
		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Interest expense		W	491,138				1,410,523				483,252				1,504,125
Losses on sale of financial assets			267				652				43				408
Losses on valuation of financial assets at fair value through profit or loss			2,072				6,889				—				975
Losses on valuation of derivatives			8,092				16,503				181,578				65,565
Losses on transaction of derivatives			6,442				32,555				25,318				49,773
Losses on foreign currency translation			627,101				1,140,402				—				268,622
Losses on foreign currency transactions			41,945				58,672				11,093				73,642
Losses on repayment of financial liabilities			—				10				5				35
Others			1,271				3,305				853				2,282
		W	1,178,328				2,669,511				702,142				1,965,427

Capitalization rates for the nine-month periods ended September 30, 2021 and 2020 are 2.09%~4.33% and 2.16%~4.65%, respectively.

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September 30, 2021 and 2020 (Unaudited)

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 Group did not calculate the average effective tax rate for the current period because income tax benefit occurred, and the average effective tax rate for the previous period is 34.47%.

41. Assets Held-for-Sale

Assets held-for-sale as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Buildings		W	1				1
Others (*)			—				924
		W	1				925

(*) As DG Fairhaven Power, LLC were sold during the nine-month period ended September 30, 2021, the assets of DG Fairhaven Power, LLC were classified as assets held-for-sale as of December 31, 2020.

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September 30, 2021 and 2020 (Unaudited)

42. Expenses Classified by Nature

Expenses classified by nature for the nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				12,748,998				12,748,998
Salaries			840,153				3,132,014				3,972,167
Retirement benefit expense			75,364				352,990				428,354
Welfare and benefit expense			113,760				436,034				549,794
Insurance expense			11,840				82,541				94,381
Depreciation			162,795				8,654,592				8,817,387
Amortization of intangible assets			68,306				57,013				125,319
Bad debt expense			15,296				—				15,296
Commission			271,899				208,633				480,532
Advertising expense			18,866				5,093				23,959
Training expense			2,565				7,312				9,877
Vehicle maintenance expense			6,321				5,690				12,011
Publishing expense			2,157				2,153				4,310
Business promotion expense			2,277				2,409				4,686
Rent expense			29,639				132,459				162,098
Telecommunication expense			6,652				8,638				15,290
Transportation expense			560				31,928				32,488
Taxes and dues			76,285				417,037				493,322
Expendable supplies expense			5,064				29,604				34,668
Water, light and heating expense			9,105				31,479				40,584
Repairs and maintenance expense			53,489				1,669,725				1,723,214
Ordinary development expense			143,116				345,018				488,134
Travel expense			7,709				49,521				57,230
Clothing expense			3,823				5,483				9,306
Survey and analysis expense			617				2,495				3,112
Membership fee			1,155				8,067				9,222
Power purchase			—				15,003,665				15,003,665
Others			106,948				719,914				826,862
		W	2,035,761				44,150,505				46,186,266

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September 30, 2021 and 2020 (Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the nine-month periods ended September 30, 2021 and 2020 are as follows, continued:

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, 2021 and 2020 (Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In won

September 30, 2021

September 30, 2020

Type

Three- month period ended

Nine- month period ended

Three- month period ended

Nine- month period ended

Basic earnings (loss) per share

W

(1,628

)

(2,579

)

1,926

2,221

(2) Net profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won except number of shares		September 30, 2021								September 30, 2020
Type		Three- month period ended				Nine- month period ended				Three- month period ended				Nine- month period ended
Net profit (loss) attributable to controlling interest		W	(1,045,241	)			(1,655,361	)			1,236,341				1,425,532
Profit (loss) used in the calculation of total basic earnings per share			(1,045,241	)			(1,655,361	)			1,236,341				1,425,532
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, 2021 and 2020 are as follows:

In number of shares		September 30, 2021								September 30, 2020
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, 2021 and 2020.

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September 30, 2021 and 2020 (Unaudited)

44. Risk Management

(1) Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Total borrowings and debt securities		W	75,670,818				69,724,581
Cash and cash equivalents			2,086,505				2,029,584
Net borrowings and debt securities			73,584,313				67,694,997
Total equity			68,815,293				70,666,846
Debt to equity ratio			106.93	%			95.79	%

(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), and 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 counter party 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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September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021				December 31, 2020
Cash and cash equivalents		W	2,086,505				2,029,584
Financial assets at fair value through profit or loss (*1)			1,974,237				1,808,404
Derivative assets (trading)			419,928				110,764
Financial assets at fair value through other comprehensive income (debt securities)			500				—
Financial assets at amortized cost			15,367				14,422
Loans			919,489				790,162
Long-term/short-term financial instruments			2,321,238				2,062,103
Derivative assets (applying hedge accounting)			212,343				55,649
Trade and other receivables			8,969,997				9,780,039
Financial guarantee contracts (*2)			3,672,356				3,224,696

(*1) Equity investments held by the Group are excluded.

(*2) 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.

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September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

(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, 2021 and December 31, 2020 are as follows:

In millions of won				September 30, 2021								December 31, 2020
Type		Accounts		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Future salary increases		Increase (decrease) in defined benefit obligation		W	496,383				(434,911	)			488,087				(425,708	)
Discount rate		Increase (decrease) in defined benefit obligation			(420,428	)			493,619				(443,527	)			524,856

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, 2021 and 2020 are W19,283 million and W15,690 million, respectively.

② Provisions

Changes in provisions due to movements in underlying assumptions as of September 30, 2021 and December 31, 2020 are as follows:

Type		Accounts		September 30, 2021				December 31, 2020
PCBs		Inflation rate			1.06	%			1.06	%
		Discount rate			1.83	%			1.83	%
Nuclear plants		Inflation rate			1.07	%			1.07	%
		Discount rate			2.20	%			2.20	%
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, 2021 and December 31, 2020 are as follows:

In millions of won				September 30, 2021								December 31, 2020
Type		Accounts		0.1%p Increase				0.1%p Decrease				0.1%p Increase				0.1%p Decrease
Discount rate		PCBs		W	(205	)			206				(292	)			293
		Nuclear plants			(319,798	)			329,466				(326,926	)			336,928
		Spent fuel			(51,522	)			53,533				(51,558	)			53,571
Inflation rate		PCBs			207				(207	)			295				(294	)
		Nuclear plants			363,561				(353,166	)			357,676				(347,450	)
		Spent fuel			54,306				(52,337	)			54,345				(52,375	)

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September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Management judgment effected 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, 2021 and December 31, 2020 are as follows:

In thousands of foreign currencies		Assets								Liabilities
Type		September 30, 2021				December 31, 2020				September 30, 2021				December 31, 2020
AED			21,855				39,678				30,391				31,594
AUD			132				133				749,237				707,538
BDT			47,513				93,442				2,248				—
BWP			939				890				—				—
EGP			—				—				683				948
CAD			417				247				1,813				1,840
CHF			—				—				500,398				500,406
CZK			—				—				440				2,033
EUR			687				310				47,319				121,069
GBP			—				—				71				43
HKD			—				—				1,651,632				1,651,839
IDR			522,002				342,496				320,007				555,241
INR			1,538,813				1,231,895				211,595				155,134
JOD			1,722				1,673				151				—
JPY			1,031,189				825,269				188,878				484,585
KZT			1,510				1,510				—				—
MGA			10,466,091				5,645,349				581,502				—
MMK			199,053				11,032				—				—
MYR			1,492				—				—				—
PHP			249,064				191,122				125,979				104,161
PKR			310,722				371,328				4,601				12,222
SAR			2,241				2,178				—				—
SEK			—				—				449,156				449,824
USD			1,706,886				1,445,522				12,237,958				12,234,563
UYU			176,239				78,265				1,627				1,585
VND			1,093,304				672,563				165,313				—
ZAR			46,916				303				—				—

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
Type		10% Increase				10% Decrease				10% Increase				10% Decrease
Increase (decrease) of profit before income tax		W	(1,407,858	)			1,407,858				(1,336,821	)			1,336,821
Increase (decrease) of equity (*)			(1,407,858	)			1,407,858				(1,336,821	)			1,336,821

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

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of September 30, 2021 and December 31, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into currency forward 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.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of September 30, 2021, the hedging instrument (cross-currency swap) hedges the risk of the hedged item(repayment of foreign debt securities and others).

② Interest rate risk

The Group is exposed to interest rate risk due to its borrowing with floating interest rates. A 1%p 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, 2021 and December 31, 2020 are as follows:

In millions of won
Type		September 30, 2021				December 31, 2020
Short-term borrowings		W	272,463				171,518
Long-term borrowings			2,391,651				2,191,322
Debt securities			255,102				250,968
		W	2,919,216				2,613,808

A sensitivity analysis on the Group’s 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, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
Type		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Increase (decrease) of profit before income tax		W	(21,894	)			21,894				(26,138	)			26,138
Increase (decrease) of shareholder’s equity (*)			(21,894	)			21,894				(26,138	)			26,138

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

The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

③ Electricity rates risk

The Group is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

A sensitivity analysis on the Group’s income for the period assuming a 1% increase and decrease in price of electricity for the nine-month periods ended September 30, 2021 and 2020 is as follows:

In millions of won		September 30, 2021								September 30, 2020
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	424,276				(424,276	)			416,194				(416,194	)
Increase (decrease) of shareholder’s equity (*)			424,276				(424,276	)			416,194				(416,194	)

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

(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.

The expected maturities for non-derivative financial liabilities as of September 30, 2021 and December 31, 2020 in detail are as follows:

In millions of won		September 30, 2021
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	15,320,213				11,943,110				27,085,639				33,376,868				87,725,830
Lease liabilities			617,249				621,690				1,549,533				2,258,443				5,046,915
Trade and other payables			5,776,677				390,828				895,611				1,217,223				8,280,339
Financial guarantee contracts (*)			391,623				—				3,031,833				248,900				3,672,356
		W	22,105,762				12,955,628				32,562,616				37,101,434				104,725,440

In millions of won		December 31, 2020
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	12,413,346				10,919,041				24,778,020				34,215,888				82,326,295
Lease liabilities			614,442				569,161				1,564,377				2,461,557				5,209,537
Trade and other payables			5,679,856				373,907				894,903				1,167,171				8,115,837
Financial guarantee contracts (*)			926,244				348,860				26,230				1,923,362				3,224,696
		W	19,633,888				12,210,969				27,263,530				39,767,978				98,876,365

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of September 30, 2021 and December 31, 2020 are W86,473 million and W66,354 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

The following table shows the details of maturities of non-derivative financial liabilities as of September 30, 2021 and December 31, 2020. 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, 2021 and December 31, 2020 in detail are as follows:

In millions of won		September 30, 2021
Type		Less than 1 year				1~5 Years				More than 5 years				Other				Total
Cash and cash equivalents		W	2,086,505				—				—				—				2,086,505
Financial assets at fair value through other comprehensive income			—				—				—				438,574				438,574
Financial assets at amortized cost			14,155				1,211				1				—				15,367
Loans			91,146				382,033				477,964				—				951,143
Long-term/short-term financial instruments			1,907,463				177,990				297				235,488				2,321,238
Financial assets at fair value through profit or loss			1,355,811				337				2,920				711,049				2,070,117
Trade and other receivables			7,096,392				1,016,041				862,484				—				8,974,917
		W	12,551,472				1,577,612				1,343,666				1,385,111				16,857,861

In millions of won		December 31, 2020
Type		Less than 1 year				1~5 Years				More than 5 years				Other				Total
Cash and cash equivalents		W	2,029,584				—				—				—				2,029,584
Financial assets at fair value through other comprehensive income			—				—				—				358,559				358,559
Financial assets at amortized cost			13,149				1,265				8				—				14,422
Loans			78,805				385,571				325,212				31,506				821,094
Long-term/short-term financial instruments			1,483,482				252,349				386				325,886				2,062,103
Financial assets at fair value through profit or loss			1,196,101				—				2,690				682,591				1,881,382
Trade and other receivables			7,920,005				1,160,400				704,494				—				9,784,899
		W	12,721,126				1,799,585				1,032,790				1,398,542				16,952,043

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	—				—				—				—				—
Gross settlement
- Trading			(4,440	)			(776	)			(7,650	)			(3,449	)			(16,315	)
- Hedging			(1,616	)			(693	)			(2,080	)			(33,776	)			(38,165	)
		W	(6,056	)			(1,469	)			(9,730	)			(37,225	)			(54,480	)
In millions of won		December 31, 2020
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	—				—				—				—				—
Gross settlement
- Trading			(12,777	)			(22,827	)			(118,704	)			(4,380	)			(158,688	)
- Hedging			(37,858	)			(39,528	)			(75,450	)			(55,208	)			(208,044	)
		W	(50,635	)			(62,355	)			(194,154	)			(59,588	)			(366,732	)

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(3) Fair value risk

The fair value of the Group’s actively-traded financial instruments (i.e.,FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s 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.

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

(i) Fair value and book value of financial assets and liabilities as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
Type		Book value				Fair value				Book value				Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income		W	438,574				438,574				358,559				358,559
Derivative assets (trading)			419,928				419,928				110,764				110,764
Derivative assets (applying hedge accounting)			212,343				212,343				55,649				55,649
Financial assets at fair value through profit or loss			2,070,117				2,070,117				1,881,382				1,881,382
		W	3,140,962				3,140,962				2,406,354				2,406,354
Assets carried at amortized cost
Financial assets at amortized cost		W	15,367				15,367				14,422				14,422
Loans and receivables			919,489				919,489				790,162				790,162
Trade and other receivables			8,969,997				8,969,997				9,780,039				9,780,039
Long-term financial instruments			413,775				413,775				578,621				578,621
Short-term financial instruments			1,907,463				1,907,463				1,483,482				1,483,482
Cash and cash equivalents			2,086,505				2,086,505				2,029,584				2,029,584
		W	14,312,596				14,312,596				14,676,310				14,676,310
Liabilities recognized at fair value
Derivative liabilities (trading)		W	22,464				22,464				157,926				157,926
Derivative liabilities (applying hedge accounting)			31,968				31,968				207,193				207,193
		W	54,432				54,432				365,119				365,119
Liabilities carried at amortized cost
Secured borrowings		W	186,228				186,228				63,614				63,614
Unsecured bond			69,590,315				69,423,222				64,607,401				68,839,316
Lease liabilities			4,509,770				4,509,770				4,621,096				4,621,096
Unsecured borrowings			5,894,275				4,939,931				4,808,206				5,513,242
Trade and other payables (*)			8,280,339				8,280,339				8,115,837				8,115,837
Bank overdraft			—				—				245,360				245,360
		W	88,460,927				87,339,490				82,461,514				87,398,465

(*) Excludes lease liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

(ii) Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount rate used for calculating fair value as of September 30, 2021 and December 31, 2020 are as follows:

Type		September 30, 2021				December 31, 2020
Derivatives			(-) 0.68% ~ 3.88%				(-) 0.73% ~ 3.08%
Borrowings and debt securities			(-) 0.39% ~ 4.27%				(-) 0.53% ~ 4.38%
Leases			0.22% ~ 16.99%				0.57% ~ 16.60%

(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 level as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	271,606				—				166,968				438,574
Derivative assets			—				632,271				—				632,271
Financial assets at fair value through profit or loss			—				2,064,327				5,790				2,070,117
		W	271,606				2,696,598				172,758				3,140,962
Financial liabilities at fair value
Derivative liabilities		W	—				54,432				—				54,432

In millions of won		December 31, 2020
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	194,670				—				163,889				358,559
Derivative assets			—				166,413				—				166,413
Financial assets at fair value through profit or loss			—				1,875,690				5,692				1,881,382
		W	194,670				2,042,103				169,581				2,406,354
Financial liabilities at fair value
Derivative liabilities		W	—				365,119				—				365,119

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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the nine-month period ended September 30, 2021 and for the year ended December 31, 2020 are as follows:

In millions of won		September 30, 2021
		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	5,692				—				—				98				—				—				5,790
Financial assets at fair value through other comprehensive income Unlisted securities			163,889				3,876				—				(343	)			(13	)			(441	)			166,968

In millions of won		December 31, 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				—				623				(446	)			—				5,692
Financial assets at fair value through other comprehensive income Unlisted securities			177,968				2,900				—				(23,128	)			(1	)			6,150				163,889

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

45. Service Concession Arrangements

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

(i) Significant terms and concession period of the arrangement

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

(ii) Rights and classification of the arrangement

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

(iii) The Group’s expected future collections of service concession arrangements as of September 30, 2021 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	82,512

(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 after building, rehabilitating, and operating the power plant for 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 and own 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, 2021 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	29,552
1 ~ 2 years			29,586
2 ~ 3 years			29,723
Over 3 years			550,042
		W	638,903

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties

(1) Related parties of the Group as of September 30, 2021 are as follows:

Type		Related party
Parent		Republic of Korea government
Subsidiaries (152 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., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, 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, EWP Renewable Corporation, EWPRC Biomass Holdings, LLC, Hee mang sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., 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, Mangilao Investment LLC, KEPCO 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., KPS Partners Co., Ltd., KEPCO E&C Service Co., Ltd., Moha solar Co., Ltd., KHNP USA LLC, KOMIPO Vanphong Power Service LLC, Ogiri Solar Power Co., Ltd., BSK E-New Industry Fund X, Energy Innovation Fund I, KHNP Chile SpA, Yeong Yang Apollon Photovoltaic Co., Ltd., Yeong Yang Corporation Co., Ltd., SolarVader Co., Ltd., Yeong Yang Innovation Co., Ltd., Yeong Yang Horus Photovoltaic Co., Ltd., Yeong Yang Solar Management Co., Ltd., LSG Hydro Power Limited, KOEN Bio Co., Ltd., KOMIPO Energy Solution America, LLC, Elara Investment Holdings, LLC, Elara Equity Holdings, LLC, Elara Class B Holdings, LLC, Elara Class B Member, LLC, Elara Development Holdings, LLC, Elara Development, LLC, Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., KOWEPO Europe B.V., CVS Equity Holdings, LLC, CVS Class B Holdings, LLC, CVS Development Holdings, LLC, CVS Development, LLC, CVS Class B Member, LLC, CVS Energy Holdings, LLC, Concho Valley Energy, LLC, Concho Valley Solar, LLC, Jeongam Wind Power Co., Ltd.
Associates (86 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., 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, 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., 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., Yaksu ESS 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., Go deok Clean Energy Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Jeju SolarOne Co., Ltd., Goesan Solar park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., KOSTURE Co., Ltd., Digital Innovation Growth Fund, Taebaek Gadeoksan Wind Power Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(1) Related parties of the Group as of September 30, 2021 are as follows, continued:

Type		Related party
Joint ventures (92 joint ventures)		Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam 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, 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, 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, Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., 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, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., DAYONE Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco LLC, CAES, LLC, Hapcheon Floating Photovoltaic Power Plant Inc., Busan Industrial Solar Power Co., Ltd., Bitsolar Energy Co., Ltd., Naepo Green Energy Co., Ltd., Pulau Indah O&M Sdn. Bhd., Guadalupe Solar SpA, Omisan Wind Power Co., Ltd., Foresight Iberian Solar Group Holding, S.L., Yeongwol Eco Wind Co., Ltd., Gurae Resident Power Co., Ltd., Cheongju Eco Park Co., Ltd., Prime Swedish Holding AB, Enel X Midland Photovoltaic, LLC, Geumsungsan Wind Power Co., Ltd., KEPCO KPS CARABAO Corp.
Other		Korea Development Bank

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

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

(3) Related party transactions for the nine-month periods ended September 30, 2021 and 2020 are as follows:

<Sales and Others>

In millions of won						Sales and others
Company name		Transaction type				September 30, 2021				September 30, 2020
<Associates>
Korea Gas Corporation			Electricity sales			W	71,063				72,864
GS Donghae Electric Power Co., Ltd.			Electricity sales				12,005				17,148
Dongducheon Dream Power Co., Ltd.			Electricity sales				12,226				5,954
Shin Pyeongtaek Power Co., Ltd.			Electricity sales				16,841				14,550
Hyundai Green Power Co., Ltd.			Electricity sales, design service				11,085				16,664
S-Power Co., Ltd.			Service				4,139				5,003
Korea Electric Power Industrial Development Co., Ltd.			Service				8,873				9,246
Korea Power Exchange			Service				18,104				21,190
Daeryun Power Co., Ltd.			Electricity sales				1,390				1,429
Goseong Green Power Co., Ltd.			Electricity sales				294,785				14,775
Gangwon Wind Power Co., Ltd.			Electricity sales				1,815				2,084
PT. Cirebon Electric Power			Others				19,455				11,878
Busan Green Energy Co., Ltd.			Electricity sales				45				18
Hyundai Eco Energy Co., Ltd.			Electricity sales				134				122
PT. Bayan Resources TBK			Others				67,861				15,720
Gemeng International Energy Co., Ltd.			Others				11,886				—
Samcheok Eco Materials Co., Ltd.			Electricity sales				471				566
SPC Power Corporation			Others				13,159				5,564
Noeul Green Energy Co., Ltd.			Electricity sales				23				23
Gangneung Eco Power Co., Ltd.			Service				9,866				7,375
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 45 others)			Electricity sales				10,149				23,578
<Joint ventures>
Chun-cheon Energy Co., Ltd.			Electricity sales				1,724				1,937
KAPES, Inc.			Commission				201				192
Daegu Green Power Co., Ltd.			Electricity sales				758				1,016
Daesan Green Energy Co., Ltd.			Electricity sales				379				72
Nawah Energy Company			Service				68,864				85,738
KEPCO SPC Power Corporation			Others				24,807				38,998
Amman Asia Electric Power Company			Others				8,537				10,802
Seokmun Energy Co., Ltd.			Service				1,434				1,545
Yeongam Solar Power Co., Ltd.			Electricity sales				250				92
Solaseado Solar Power Co., Ltd.			Electricity sales				2,166				1,672
Yeonggwang Wind Power Co., Ltd.			Electricity sales				629				614
Rabigh Electricity Company			Others				241				700
Kelar S.A.			Others				15,380				10,829
Cheongna Energy Co., Ltd.			Electricity sales				10,224				5,720
Datang Chifeng Renewable Power Co., Ltd.			Others				—				13,453
Yeonggwangbaeksu Wind Power Co., Ltd.			Electricity sales				3,861				1,336
Others (Busan Shinho Solar Power Co., Ltd. and 49 others)			Electricity sales				547,252				568,995
<Others>
Korea Development Bank			Electricity sales				3,239				2,951
			Interest income				638				3,429

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the nine-month periods ended September 30, 2021 and 2020 are as follows, continued:

<Purchase and Others>

In millions of won						Purchase and others
Company name		Transaction type				September 30, 2021				September 30, 2020
<Associates>
Korea Gas Corporation			Fuel purchase			W	3,745,012				2,544,927
GS Donghae Electric Power Co., Ltd.			Electricity purchase				547,657				490,918
Dongducheon Dream Power Co., Ltd.			Electricity purchase				516,466				389,049
Shin Pyeongtaek Power Co., Ltd.			Electricity purchase				443,186				416,730
Hyundai Green Power Co., Ltd.			Design service				—				349,772
S-Power Co., Ltd.			Service				375,102				293,461
Korea Electric Power Industrial Development Co., Ltd.			Service				179,191				166,459
Korea Power Exchange			Service				66,563				69,485
Daeryun Power Co., Ltd.			Electricity purchase				110,532				68,649
Goseong Green Power Co., Ltd.			Electricity purchase				508,325				—
Gangwon Wind Power Co., Ltd.			Electricity purchase				11,131				16,803
Busan Green Energy Co., Ltd.			Electricity purchase				13,441				10,821
Hyundai Eco Energy Co., Ltd.			Electricity purchase				21,650				12,780
Samcheok Eco Materials Co., Ltd.			Electricity purchase				8,820				9,151
Noeul Green Energy Co., Ltd.			Electricity purchase				6,987				8,614
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 45 others)			Electricity purchase				141,202				30,404
<Joint ventures>
Chun-cheon Energy Co., Ltd.			Electricity purchase				224,053				176,716
KAPES, Inc.			Commission				38,387				162,021
Daegu Green Power Co., Ltd.			Electricity purchase				195,831				165,927
Daesan Green Energy Co., Ltd.			Electricity purchase				67,724				—
Amman Asia Electric Power Company			Others				—				102
Seokmun Energy Co., Ltd.			Service				30,434				33,345
Yeongam Solar Power Co., Ltd.			Electricity purchase				35,918				—
Solaseado Solar Power Co., Ltd.			Electricity purchase				21,912				18,164
Yeonggwang Wind Power Co., Ltd.			Electricity purchase				17,935				15,403
Cheongna Energy Co., Ltd.			Electricity purchase				57				65
Yeonggwangbaeksu Wind Power Co., Ltd.			Electricity purchase				8,641				8,944
Others (Busan Shinho Solar Power Co., Ltd. and 49 others)			Electricity purchase				33,418				37,597
<Others>
Korea Development Bank			Interest expense				2,159				3,149
			Dividends				256,870				—

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of September 30, 2021 and December 31, 2020 are as follows:

IIn millions of won				Receivables								Payables
Company name		Type		September 30, 2021				December 31, 2020				September 30, 2021				December 31, 2020
<Associates>
Korea Gas Corporation		Trade receivables		W	5,782				9,969				—				—
		Non-trade receivables and others			28				95				—				—
		Trade payables			—				—				546,339				428,763
		Non-trade payables and others			—				—				561				617
GS Donghae Electric power Co., Ltd.		Trade receivables			175				386				—				—
		Non-trade receivables and others			291				321				—				—
		Trade payables			—				—				94,024				91,213
		Non-trade payables and others			—				—				9				36
Goseong Green Power Co., Ltd.		Trade receivables			1,405				2,181				—				—
		Non-trade receivables and others			23,217				9,214				—				—
		Trade payables			—				—				75,593				—
		Non-trade payables and others			—				—				60,110				64,986
Korea Power Exchange		Trade receivables			1,102				1,608				—				—
		Non-trade receivables and others			—				24				—				—
		Trade payables			—				—				1,314				1,362
		Non-trade payables and others			—				—				48,477				70,456
Dongducheon Dream Power Co., Ltd.		Trade receivables			5,613				388				—				—
		Non-trade receivables and others			446				213				—				—
		Trade payables			—				—				71,367				65,794
Shin Pyeongtaek Power Co., Ltd.		Trade receivables			1,561				1,348				—				—
		Non-trade receivables and others			564				2,823				—				—
		Trade payables			—				—				60,825				47,948
		Non-trade payables and others			—				—				172				85
S-Power Co., Ltd.		Trade receivables			159				137				—				—
		Non-trade receivables and others			48				46				—				—
		Trade payables			—				—				28,057				23,415
		Non-trade payables and others			—				—				78				—
Daeryun Power Co., Ltd.		Trade receivables			131				189				—				—
		Trade payables			—				—				12,271				16,079
Busan Green Energy Co., Ltd.		Trade receivables			1				5				—				—
		Non-trade receivables and others			24,154				13,946				—				—
Hyundai Green Power Co., Ltd.		Trade receivables			551				554				—				—
		Trade payables			—				—				—				9,825
Others (Korea Electric Power Industrial Development Co., Ltd. and 37 others)		Trade receivables			1,393				1,576				—				—
		Non-trade receivables and others			19,157				8,165				—				—
		Trade payables			—				—				7,386				4,996
		Non-trade payables and others			—				—				4,852				4,785

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of September 30, 2021 and December 31, 2020 are as follows, continued:

In millions of won				Receivables								Payables
Company name		Type		September 30, 2021				December 31, 2020				September 30, 2021				December 31, 2020
<Joint ventures>
Nawah Energy Company		Trade receivables		W	68,916				49,280				—				—
		Non-trade receivables and others			4,202				2,062				—				—
Chun-cheon Energy Co., Ltd.		Trade receivables			106				98				—				—
		Non-trade receivables and others			200				165				—				—
		Trade payables			—				—				29,021				27,428
Daegu Green Power Co., Ltd.		Trade receivables			50				44				—				—
		Non-trade receivables and others			—				55				—				—
		Trade payables			—				—				23,906				26,213
KAPES, Inc.		Trade receivables			1				2				—				—
		Non-trade receivables and others			—				5,172				—				—
		Non-trade payables and others			—				—				4				20,577
Seokmun Energy Co., Ltd.		Trade receivables			94				62				—				—
		Non-trade receivables and others			100				9,460				—				—
		Trade payables			—				—				3,922				4,898
		Non-trade payables and others			—				—				—				9,559
DAYONE Energy Co., Ltd.		Trade receivables			73				57				—				—
		Non-trade receivables and others			11,117				11,749				—				—
		Trade payables			—				—				219				10
		Non-trade payables and others			—				—				9,323				9,119
Amman Asia Electric Power Company		Trade receivables			2,365				—				—				—
		Non-trade payables and others			—				—				21,883				20,134
Yeongam Solar Power Co., Ltd.		Trade receivables			23				26				—				—
		Trade payables			—				—				817				14,652
Kelar S.A.		Trade receivables			283				2,183				—				—
		Non-trade receivables and others			15,070				10,893				—				—
Others (Daesan Green Energy Co., Ltd. and 32 others)		Trade receivables			140,975				9,014				—				—
		Non-trade receivables and others			12,216				9,228				—				—
		Trade payables			—				—				6,328				12,136
		Non-trade payables and others			—				—				3,127				92,780
<Others>
Korea Development Bank		Accrued interest income			287				51				—				—
		Non-trade receivables and others			371,589				206,916				—				—
		Non-trade payables and others			—				—				98				123
		Derivatives			63,005				20,167				—				20,001

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(5) Loans and others arising from related party transactions as of September 30, 2021 and December 31, 2020 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	27,149				34				—				2,235				29,418
		(Allowance for doubtful accounts)			(5,246	)			—				—				(2,970	)			(8,216	)
Associates		Xe-Pian Xe-Namnoy Power Co., Ltd.			19,692				—				—				1,754				21,446
Associates		PT Wampu Electric Power			12,358				—				(670	)			1,768				13,456
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				757				—				—				4,257
Associates		Daejung Offshore Wind Power Co., Ltd.			1,000				—				—				—				1,000
Associates		Bitgoel Eco Energy Co., Ltd.			—				9,051				—				—				9,051
Joint ventures		Solaseado Solar Power Co., Ltd.			64,000				—				—				—				64,000
Joint ventures		Recursos Solares PV de Mexico II, S.A. de C.V.			4,844				1,518				(1,450	)			454				5,366
Joint ventures		Horus Solar, S.A. de C.V.			13,380				1,253				(844	)			1,214				15,003
Joint ventures		Sunmex Renovables, S.A. de C.V.			1,842				3,790				—				253				5,885
Joint ventures		Kelar S.A.			39,616				—				—				3,529				43,145
Joint ventures		DE Energia SpA			6,232				—				—				555				6,787
Joint ventures		Daehan Wind Power PSC			10,700				1,927				—				1,040				13,667
Joint ventures		PT. Tanjung Power Indonesia			705				314				—				71				1,090
Joint ventures		Bitsolar Energy Co., Ltd.			3,165				—				—				—				3,165
Joint ventures		Pulau Indah Power Plant Sdn. Bhd.			—				10,006				—				(3,122	)			6,884
Joint ventures		Guadalupe Solar SpA			—				3,365				—				—				3,365
Joint ventures		Foresight Iberian Solar Group Holding, S.L.			—				9,376				—				51,801				61,177
				W	205,205				41,391				(2,964	)			58,582				302,214

(6) Borrowings arising from related party transactions as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won
Related parties		Type		December 31, 2020				Borrowings				Repayment				Others				September 30, 2021
Korea Development Bank		Facility		W	50,293				9,985				(8,134	)			—				52,144
		Others			2,946				—				(328	)			—				2,618
		Operating funds			144,300				—				(100,000	)			—				44,300
		Syndicated Loan			15,923				—				(1,042	)			43				14,924
		EBL			40,093				32,597				—				5,124				77,814
				W	253,555				42,582				(109,504	)			5,167				191,800

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 30, 2021 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 1,223,355			Export-Import Bank of Korea and others
				Performance guarantees and others			USD 4,355,120
Korea Electric Power Corporation		RE Holiday Holdings LLC		Performance guarantees (*11)			USD 206,494			EFS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation		RE Pioneer Holdings LLC		Performance guarantees			USD 158,718			EFS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation		RE Barren Ridge 1 Holdings LLC		Performance guarantees (*11)			USD 135,783			Firstar Development, LLC, Santander Bank and others
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		Horus Solar, S.A. de C.V.		Other performance guarantees			MXN 14,843			CENACE and others
Korea Electric Power Corporation		Recursos Solares PV de Mexico II, S.A. de C.V.		Other performance guarantees			MXN 1,518			SEMARNAT
Korea Electric Power Corporation		Sunmex Renovables, S.A. de C.V.		Other performance guarantees			USD 3,873			CENACE
Korea Electric Power Corporation							MXN 3,666			SEMARNAT
Korea Electric Power Corporation		Pulau Indah Power Plant Sdn. Bhd.		Collateralized money invested			KRW 14,576			Malaysian Trustee Berhad and others
Korea Western Power Co., Ltd.		Cheongna Energy Co., Ltd.		Collateralized money invested			KRW 9,709			Kookmin Bank and others
				Guarantees for supplemental funding (*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 80,329
				Impounding bonus guarantees			USD 5,000			SK E&C
Korea Western Power Co., Ltd.		Rabigh Operation & Maintenance Company Limited		Performance guarantees and others			SAR 11,200			National Bank of Kuwait
Korea Western Power Co., Ltd.		Daegu Photovoltaic Co., Ltd.		Collateralized money invested			KRW 2,182			Korea Development Bank
Korea Western Power Co., Ltd.		Dongducheon Dream Power Co., Ltd.		Collateralized money invested (*6)			KRW 41,408			Kookmin Bank and others
				Debt guarantees			KRW 20,300			BNK Securities
Korea Western Power Co., Ltd.		PT. Mutiara Jawa		Collateralized money invested			KRW 2,209			Woori Bank
Korea Western Power Co., Ltd.		Haeng Bok Do Si Photovoltaic Power Co., Ltd.		Collateralized money invested			KRW 224			Nonghyup Bank
Korea Western Power Co., Ltd.		Shin Pyeongtaek Power Co., Ltd.		Collateralized money invested			KRW 81,066			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Haemodum Solar Co., Ltd.		Collateralized money invested			KRW 3,065			Nonghyup Bank
Korea Western Power Co., Ltd.		Sam-Yang Photovoltaic Power Co., Ltd.		Collateralized money invested			KRW 6,078			Korea Development Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Muan Solar Park Co., Ltd.		Collateralized money invested			KRW 5,422			IBK and others
Korea Western Power Co., Ltd.		Anjwa Smart Farm & Solar City Co., Ltd.		Collateralized money invested Guarantees for supplemental funding (*1)			KRW 6,805 —			Hana Bank and others

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 30, 2021 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit				Guarantee
Korea Western Power Co., Ltd.		Seoroseoro Sunny Power Plant Co., Ltd.		Collateralized money invested			KRW 685			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		YuDang Solar Co., Ltd.		Collateralized money invested			KRW 512			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Hapcheon Floating Photovoltaic Power Plant Inc.		Collateralized money invested			KRW 6,857			Nonghyup Bank and others
Korea Western Power Co., Ltd.		Yeongwol Eco Wind Co., Ltd.		Collateralized money invested			KRW 2,998			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Gurae Resident Power Co., Ltd.		Collateralized money invested Guarantees for supplemental funding (*1)			KRW 419 —			Hana Bank and others
Korea East-West Power Co., Ltd.		Busan Shinho Solar Power Co., Ltd.		Collateralized money invested			KRW 5,621			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Seokmun Energy Co., Ltd.		Collateralized money invested			KRW 12,538			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Chun-cheon Energy Co., Ltd.		Collateralized money invested			KRW 26,002			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 3,828			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 257,160			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Yeonggwangbaeksu Wind Power Co., Ltd.		Collateralized money invested			KRW 2,620			Kookmin Bank and others
Korea East-West Power Co., Ltd.		Yeonggwang Wind Power Co., Ltd.		Collateralized money invested			KRW 16,712			KDB Capital Corporation and others
Korea East-West Power Co., Ltd.		Daesan Green Energy Co., Ltd.		Collateralized money invested			KRW 22,758			IBK
				Guarantees for supplemental funding (*1)			KRW 18,989
Korea East-West Power Co., Ltd.		Taebaek Gadeoksan Wind Power Co., Ltd.		Collateralized money invested Guarantees for supplemental funding (*1)			KRW 13,962			Hana Bank 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 45,466			MUFG and others
Korea East-West Power Co., Ltd.		South Jamaica Power Company Limited		Performance guarantees			USD 14,400			Credit Agricole Corporate & Investment Bank Seoul
				Collateralized money invested			KRW 39,118			JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.		DE Energia SpA		Collateralized money invested			KRW 8,916			Mirae Asset Daewoo Co., Ltd. and others
				Collateralized loans			USD 5,728
				Payment guarantees (*9)			USD 950			Hana Bank
Korea East-West Power Co., Ltd.		Bitsolar Energy Co., Ltd.		Collateralized money invested			KRW 381			Mirae Asset Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.		Cheongju Eco Park Co., Ltd.		Collateralized money invested			KRW 5,532			Kyobo Life Insurance Co., Ltd. and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Busan Industrial Solar Power Co., Ltd.		Collateralized money invested			KRW 563			Shinhan Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Yangyang Wind Power Co., Ltd.		Collateralized money invested Guarantees for supplemental funding (*1)			KRW 10,373 —			Hana Bank and others
Korea East-West Power Co., Ltd.		Daewon Green Energy Co., Ltd.		Collateralized money invested Guarantees for supplemental funding (*1)			KRW 3,288 —			Hana Bank and others
Korea Southern Power Co., Ltd.		KNH Solar Co., Ltd.		Collateralized money invested			KRW 2,226			Shinhan Bank and others
				Performance guarantees and guarantees for supplemental funding (*1)			—

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 30, 2021 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.		Daeryun Power Co., Ltd.		Collateralized money invested		KRW 25,727		Korea Development Bank and others
Korea Southern Power Co., Ltd.		Daegu Green Power Co., Ltd.		Collateralized money invested		KRW 22,688		Shinhan Bank and others
				Performance guarantees		—
Korea Southern Power Co., Ltd.		Kelar S.A.		Performance guarantees		USD 57,987		Hana Bank, MUFG
Korea Southern Power Co., Ltd.		Daehan Wind Power PSC		Performance guarantees		USD 1,500		Shinhan Bank
				Payment guarantees (*8)		USD 1,898		Hana Bank
Korea Southern Power Co., Ltd.		Pyeongchang Wind Power Co., Ltd.		Collateralized money invested		KRW 5,233		Woori Bank and Shinhan Bank and others
				Performance guarantees		—
Korea Southern Power Co., Ltd.		Taebaek Guinemi Wind Power Co., Ltd.		Collateralized money invested		KRW 3,188		IBK
Korea Southern Power Co., Ltd.		Samcheok Eco Materials Co., Ltd.		Payment guarantees (*3)		—		SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.		Solaseado Solar Power Co., Ltd.		Collateralized money invested		KRW 7,171		Kookmin Bank and others
Korea Southern Power Co., Ltd.		Naepo Green Energy Co., Ltd.		Collateralized money invested (*10)		—		IBK and others
				Guarantees for supplemental funding (*1)		KRW 30,000
				Guarantees for other supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.		Omisan Wind Power Co., Ltd.		Collateralized money invested		KRW 10,671		Shinhan Bank and others
				Guarantees for supplemental funding and performance guarantees (*1)		—
Korea Southern Power Co., Ltd.		Geumsungsan Wind Power Co., Ltd.		Collateralized money invested		KRW 6,531		Kookmin Bank
				Guarantees for supplemental funding (*1)		—
KOSPO Chile SpA		Kelar S.A.		Collateralized money invested		KRW 88,709		Export-Import Bank of Korea and others
KOSPO Chile SpA		Chester Solar I SpA		Collateralized money invested		KRW 1,352		IBK
KOSPO Chile SpA		Chester Solar IV SpA		Collateralized money invested		KRW 285		IBK
KOSPO Chile SpA		Chester Solar V SpA		Collateralized money invested		KRW 53		IBK
KOSPO Chile SpA		Diego de Almagro Solar SpA		Collateralized money invested		KRW 661		IBK
KOSPO Chile SpA		Laurel SpA		Collateralized money invested		KRW 521		IBK
Korea Midland Power Co., Ltd.		YeongGwang Yaksu Wind Electric Co., Ltd.		Collateralized money invested		KRW 289		IBK and others
Korea Midland Power Co., Ltd.		Hyundai Green Power Co., Ltd.		Collateralized money invested		KRW 121,904		Korea Development Bank and others
Korea Midland Power Co., Ltd.		PT. Cirebon Electric Power		Debt guarantees		USD 10,038		Mizuho Bank
Korea Midland Power Co., Ltd.		PT Wampu Electric Power		Debt guarantees		USD 4,817		SMBC
Korea Midland Power Co., Ltd.		Green Energy Electricity Generation Co., Ltd.		Collateralized money invested Guarantees for supplemental funding and others (*1)		KRW 1,936 —		IBK IBK and others
Korea Midland Power Co., Ltd.		Yaksu ESS Co., Ltd.		Collateralized money invested		KRW 660		IBK
Korea Midland Power Co., Ltd.		Namjeongsusang Solar Power Operation Co., Ltd.		Collateralized money invested		KRW 395		IBK
Korea Midland Power Co., Ltd.		Gwangbaek Solar Power Investment Co., Ltd.		Collateralized money invested		KRW 4,823		Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.		Muan Sunshine Solar Power Plant Co., Ltd.		Collateralized money invested		KRW 1,160		IBK
Korea Midland Power Co., Ltd.		Goesan Solar park Co., Ltd.		Collateralized money invested		KRW 1,864		IBK
Korea Midland Power Co., Ltd.		Bitgoel Eco Energy Co., Ltd.		Collateralized money invested		KRW 4,402		IBK and others
				Guarantees for supplemental funding (*1)		—
Korea Midland Power Co., Ltd.		Energyco LLC		Collateralized money invested		KRW 1,698		Nonghyup Bank
Korea Midland Power Co., Ltd.		Jeju Gimnyeong Wind Power Co., Ltd.		Collateralized money invested		KRW 512		Nonghyup Bank
Korea Midland Power Co., Ltd.		Dongbu Highway Solar Co., Ltd.		Collateralized money invested		KRW 275		Nonghyup Bank

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of September 30, 2021 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit		Guarantee
Korea Midland Power Co., Ltd.		Seobu Highway Solar Co., Ltd.		Collateralized money invested		KRW 264		Nonghyup Bank
Korea South-East Power Co., Ltd.		DAYONE Energy Co., Ltd.		Collateralized money invested (*4)		—		IBK
				Guarantees for supplemental funding and others (*1,5)		KRW 76,800		NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.		RES Technology AD		Collateralized money invested		KRW 17,223		UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		ASM-BG Investicii AD		Collateralized money invested		KRW 18,794		UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		Expressway Solar-light Power Generation Co., Ltd.		Guarantees for supplemental funding and others (*1,2)		KRW 2,500		Woori Bank
Korea South-East Power Co., Ltd.		Goseong Green Power Co., Ltd.		Collateralized money invested		KRW 2,741		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Gangneung Eco Power Co., Ltd.		Collateralized money invested		KRW 2,308		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		PND Solar Co., Ltd.		Collateralized money invested		KRW 1,205		IBK
Korea South-East Power Co., Ltd.		Hyundai Eco Energy Co., Ltd.		Collateralized money invested		KRW 5,064		Samsung Life Insurance and others
Korea South-East Power Co., Ltd.		Jaeun Resident Wind Power Plant Co., Ltd.		Collateralized money invested		KRW 2,011		IBK
Korea South-East Power Co., Ltd.		Chungsongmeon BongSan wind power Co., Ltd.		Collateralized money invested		KRW 3,787		Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Yeongam Solar Power Co., Ltd.		Collateralized money invested		KRW 6,323		Kookmin Bank and others
Korea South-East Power Co., Ltd.		Samsu Wind Power Co., Ltd.		Collateralized money invested		KRW 2,365		Shinhan Bank and others
Korea South-East Power Co., Ltd.		Saemangeum Heemang Photovoltaic Co., Ltd.		Collateralized money invested		KRW 10,291		Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Noeul Green Energy Co., Ltd.		Collateralized money invested		KRW 4,325		Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Busan Green Energy Co., Ltd.		Collateralized money invested		KRW 6,547		Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Go deok Clean Energy Co., Ltd.		Collateralized money invested		KRW 4,975		Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Cheong-Song Noraesan Wind Power Co., Ltd.		Collateralized money invested		KRW 3,704		Woori Bank and others
KEPCO Plant Service & Engineering Co., Ltd.		Incheon New Power Co., Ltd.		Collateralized money invested (*7) Guarantees for supplemental funding and others (*1)		—   —		Shinhan Bank

(*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) 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 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of September 30, 2021, the Group has recognized derivative liabilities of W6,760 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.

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

(*5) Pursuant to the guarantee agreement, the Group recognized other provisions of W26,772 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

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

(*7) The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W461 million.

(*8) The Group provided a payment guarantee to Daehan Wind Power PSC for opening LC for Debt Service Reserve Account (DSRA).

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

(*10) The Group recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is W29,200 million.

(*11) The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

46. Related Parties, Continued

(8) As of September 30, 2021, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of September 30, 2021 are as follows:

(i) Currency Swap

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty		Contract year		Contract amounts								Contract interest rate per annum								Contract exchange rate
				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
		2021~2026			118,170				USD 100,000				1.11	%			1.13	%			1,181.70
		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
		2021~2026			111,400				USD 100,000				0.93	%			1.25	%			1,114.00
		2020~2026			118,910				USD 100,000				0.61	%			1.00	%			1,189.10
		2019~2022			112,650				USD 100,000				1.80	%			3.38	%			1,126.50
		2021~2026			114,230				USD 100,000				1.27	%			1.25	%			1,142.30
		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
		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 USD except contract exchange rate information
Counterparty		Contract date		Maturity date		Contract amounts								Contract exchange rate
						Pay				Receive
Korea Development Bank		2021.04.01		2021.10.01		W	56,599				USD 50,178			W	1,127.95
		2021.09.27		2022.01.07			59,049				USD 50,050				1,179.80
		2021.09.07		2021.10.05			4,054				USD 3,500				1,158.42

(10) The Group considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Group recorded salaries and other compensations related to the key management personnel as follows:

In millions of won		September 30, 2021								September 30, 2020
Type		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Salaries		W	419				1,041				182				1,099
Employee benefits			11				16				15				47
		W	430				1,057				197				1,146

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

47. Statement of Cash Flows

(1) Significant non-cash transactions for the nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won
Transactions		September 30, 2021				September 30, 2020
Transfer from construction-in-progress to other assets		W	7,780,311				5,460,342
Recognition of asset retirement cost and related provision for decommissioning costs			214,595				197,325
Transfer from provision for disposal of used nuclear fuel to accrued expenses			346,254				307,028
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			11,453,907				8,026,406
Transfer from inventory to stored nuclear fuel			551,528				398,217
Transfer of right-of-use assets due to change in accounting policy and others			57,977				280,567

(2) Changes in liabilities incurred from financing activities for the nine-month periods ended September 30, 2021 and 2020 are as follows:

In millions of won		September 30, 2021
										Non-cash changes
		Beginning balance				Cash flows				Increase				Effect of exchange rate fluctuations and others				Ending balance
Borrowings and debt securities		W	69,724,581				4,792,171				—				1,154,066				75,670,818
Lease liabilities			4,621,096				(445,248	)			51,102				282,820				4,509,770
		W	74,345,677				4,346,923				51,102				1,436,886				80,180,588

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

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
Contracts		Commitment amounts				Remaining liability balances				Commitment amounts				Remaining liability balances
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)		W	57,046				16,509				56,574				16,038
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)			46,616				34,102				45,390				32,876
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S			36,143				25,292				36,143				29,898
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S			40,010				5,540				40,010				8,328
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S			37,744				140				37,744				2,244
Purchase of cable (FR CNCO-W, 1C, 325SQ) 1,400,000M			—				—				59,716				37,249
Purchase of switch (Eco) 9,360 units			—				—				40,631				24,031
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M			—				—				37,288				23,100
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 4,464,000M			—				—				82,622				51,130
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M			—				—				42,068				35,358
Concrete pole (10M, general purpose, 350KGF) 102,435 ea and five other equipments			91,831				29,866				91,889				80,904
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others			54,714				45,037				—				—
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S			32,000				26,700				—				—
Advanced E-Type low-pressure electronic power meter 1,320,000 ea			51,274				24,602				—				—
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)			34,425				34,425				—				—
Purchase of cable (TR CNCE-W,1C,325SQ) 1,016,000M			60,099				52,008				—				—
Purchase of cable (TR CNCE-W,1C,600SQ) 485,000M			41,995				39,556				—				—
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 3,303,900M			76,707				75,643				—				—
Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments			171,216				171,216				—				—
Construction of Shin-Kori units (#5,6)			9,800,424				3,749,932				8,625,387				3,256,117
Construction of Shin-Hanul units (#1,2)			9,632,885				—				9,443,635				160,512
Other 30 contracts			737,269				604,648				107,586				58,466
Service of designing Seoul Combined units (#1,2)			31,841				934				31,841				984
Service of designing Shin-Boryeong units (#1,2)			121,179				243				121,163				521
Purchase of furnace for construction of Shin-Seocheon thermal power plant			305,209				17,123				305,209				29,042
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant			105,226				7,285				105,226				8,279
Electricity construction of Shin-Seocheon thermal power plant			330,771				53				282,234				13,524
Purchase of main machine for Jeju LNG combined			166,287				11,018				166,287				11,182
Service of designing Taean units (#9,10)			112,909				13,029				112,813				12,933
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			126,302				61,380				104,600				41,840
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant			213,015				142,025				210,900				147,630
Construction of Gimpo combined heat & power plant			119,184				66,197				—				—
Purchase of coal handling machine for construction of Samcheok units (#1,2)			285,158				8,673				285,158				22,751
Purchase of furnace main equipment for construction of Samcheok units (#1,2)			—				—				1,065,141				11,609
Purchase of turbine main equipment for Samcheok units (#1,2)			—				—				211,349				125
Purchase of main equipment for Namjeju			140,144				3				140,144				112

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

48. Commitments for Expenditure, Continued

(2) As of September 30, 2021, details of contracts for inventory purchase commitment are as follows:

The Group imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Group entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:

Type		Periods		Contracted quantity
Concentrate		2020 ~ 2030		32,435 Ton U3O8
Transformed		2020 ~ 2030		18,088 Ton U
Enrichment		2020 ~ 2030		17,667 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Group, is 1,625 Ton U (contract periods : 2014 ~ 2024).

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of September 30, 2021 and December 31, 2020 are as follows:

In millions of won		September 30, 2021								December 31, 2020
		Number of cases				Claim amount				Number of cases				Claim amount
As the defendant			677			W	647,848				663			W	550,535
As the plaintiff			276				770,583				200				729,798

A group of plaintiffs (consisting of 2,167 individuals) filed a lawsuit against NSSC (Nuclear Safety and Security Commission) regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal has been dismissed on May 29, 2020, resulting in plaintiffs’ loss. 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, but the appeal had been closed on April 29, 2021. The Group joined these litigations as a stakeholder after obtaining permission from the court.

As of September 30, 2021, in connection with Shin-Hanul unit 3 & 4, the Group has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Group does not believe that it has a present obligation to this vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of September 30, 2021.

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.

2) There is an ongoing second trial against the Group regarding the completion of the waste oil refining power generation plant of Next energy Co., Ltd. The Group recognized the amount of probable outflow of resources as a provision.

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. Accordingly, the Group recognized W8,142 million as litigation provisions in relation to the lawsuit as of September 30, 2021.

In addition to the abovementioned significant ongoing claims, there are 6 arbitration cases pertaining to the Group as of September 30, 2021 and the significant arbitration cases for the nine-month period ended September 30, 2021 are as follows:

1) 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.

2) 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.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of September 30, 2021 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 (EBL) 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 with the guarantees of mutual investment of USD 2,192 thousand, which is equivalent to the ownership interest of PT BS Energy and PT Nusantara Hydro Alam, in order to guarantee the expenses related to hydroelectric power business of Tanggamus, Indonesia.

5) The Group has provided USD 16,000 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

6) The Group has provided the syndicate of lenders of PT Indo Raya Tenaga, the business corporation of PT Barito Wahana Tenaga, a guarantee by establishing the right of pledge on the shares of PT Barito Wahana Tenaga for project financing of PT Barito Wahana Tenaga as of September 30, 2021.

7) The Group has provided a guarantee to complete the construction of the waste oil refining power generation plant of Next energy Co.,Ltd. (contract amount : W14,700 million) to the financial institution agents, thus the Group is liable to compensate to financial institution agents for the 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 Group will be liable to pay compensation for the shortage. The Group has recognized a provision based on the assessment of expected outflow of resources.

8) The Group has provided Axia Power Holdings B.V. and others a performance guarantee up to USD 54,000 thousand for the implementation of Cirebon thermal power generation project in Indonesia.

9) The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,907,215 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

10) The Group has provided Export-Import Bank of Korea and others a performance guarantee up to USD 12,090 thousand for the excess project costs of hydroelectric power generation project of Tanggamus, Indonesia.

11) The Group has provided Export-Import Bank of Korea and others a borrowing guarantee up to USD 5,911 thousand for the DSRA guarantee of hydroelectric power generation project of Tanggamus, Indonesia.

12) The Group has provided PT. Cirebon Energi Prasarana a performance guarantee up to USD 43,500 thousand for the fulfillment of subscription obligation regarding Cirebon 2 coal-fired power generation project in Indonesia.

13) The Group has provided Van Phong Power Company Ltd. a performance guarantee up to USD 5,000 thousand for the operation maintenance project in Van Phong, Vietnam.

14) The Group has provided Morgan Stanley Capital Group Inc. a performance guarantee up to USD 30,000 thousand for the implementation of photovoltaic power generation project in USA.

15) The Group has provided Morgan Stanley Renewables Inc. a performance guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of September 30, 2021 are as follows:

16) The Group has provided EUR 10,000 thousand for a performance guarantee to Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch through Kookmin Bank, to guarantee the opening of VAT payment loan account for Guba Buget wind power project in Sweden.

17) The Group has provided EUR 5,022 thousand for a performance guarantee to Microsoft through Kookmin Bank, to guarantee the implementation of the power plant construction for Guba Buget wind power project in Sweden.

18) The Group has provided EUR 9,980 thousand of a performance guarantee to Ellevio through Shinhan Bank, to guarantee the performance of the electric power transmission equipment connection construction for Guba Buget wind power project in Sweden.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of September 30, 2021 are as follows:

In millions of won and thousands of foreign currencies
Commitments		Financial institutions		Currency		Credit limit
Commitments on Bank-overdraft		Nonghyup Bank and others		KRW			1,815,500
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			2,178,893
		DBS Bank Ltd and others		USD			1,909,700
Certification of payment on payables from foreign country		Nonghyup Bank		USD			8,700
Certification of payment on L/C		Shinhan Bank and others		USD			907,026
		Shinhan Bank		JPY			707,337
		Hana Bank		EUR			23,120
Certification of Performance guarantee on contract		Seoul Guarantee Insurance and others		KRW			102,658
		First Abu Dhabi Bank and others		USD			940,741
		Korea Development Bank and others		JPY			620,000
		Hana Bank		EUR			4,675
		Shinhan Bank		INR			51,678
Certification of bidding		Hana Bank		USD			10,000
		Hana Bank		EUR			2
Advance payment bond, Warranty bond, Retention bond and others		Seoul Guarantee Insurance		KRW			40,153
		Export-Import Bank of Korea and others		USD			591,228
		Hana Bank		SAR			6,508
		Hana Bank		MXN			20,027
Others		Nonghyup Bank and others		KRW			664,613
		Export-Import Bank of Korea and others		USD			2,603,680
		Standard Chartered		AED			50
		Hana Bank		EUR			34
Inclusive credit		Hana Bank		KRW			8,000
		Hana Bank and others		USD			135,078
Trade finance		BNP Paribas and others		USD			750,000

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments, Continued

(4) As of September 30, 2021, blank check and assets provided as collaterals or pledges to financial institutions by the Group are 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)

Gyeonggi Green Energy Co., Ltd.

Korea Development Bank and others

Cash and cash equivalents and others

KRW

327,080

Collateral for borrowings (*2)

Commerce and Industry Energy Co., Ltd.

IBK and others

Property, plant and equipment 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.

Shinhan Bank and others

Property, plant and equipment and others

KRW

68,400

Collateral for borrowings (*2)

Korea Offshore Wind Power Co., Ltd.

Woori Bank and others

Property, plant and equipment and others

KRW

190,800

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, S.A.P.I. de C.V.

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)

TS Energy No. 25 Co., Ltd.

Kyobo Life Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

521,281

Collateral for borrowings (*2)

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

(*2) As of September 30, 2021, 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, 2021. The Group has provided a blank check as a repayment guarantee.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

49. Contingencies and Commitments, Continued

(5) The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of W67,881 million as of September 30, 2021, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W15 million and depreciation on the idle assets of W1,854 million are recorded in other expenses for the nine-month period ended September 30, 2021. 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, 2021.

(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, 2021. The book value of facility is W14,987 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, 2021.

(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, 2021.

(8) To prevent the spread of COVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with COVID-19. The Group was unable to reasonably estimate the impact of COVID-19 and the impact of the government support policies on the Group’s consolidated financial statements as of September 30, 2021, and the resulting effects have not been reflected in the consolidated financial statements.

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

50. Subsequent Events

Subsequent to September 30, 2021, the Company and its subsidiaries including 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., and Korea East-West Power Co., Ltd. issued corporate bonds for the purposes of operations, repayment of debts, maintenance of facility and others as follows:

In millions of won
Company		Type		Issue date				Maturity				Interest rate (%)				Amount
Korea Electric Power Corporation		#1075 Corporate bond			2021.10.01				2026.10.01				2.20			W	200,000
		#1076 Corporate bond			2021.10.01				2028.10.01				2.30				50,000
		#1077 Corporate bond			2021.10.08				2026.10.08				2.31				100,000
		#1078 Corporate bond			2021.10.08				2031.10.08				2.54				100,000
		#1079 Corporate bond			2021.10.21				2028.10.21				2.53				40,000
		#1080 Corporate bond			2021.10.21				2031.10.21				2.59				150,000
		#1081 Corporate bond			2021.10.25				2028.10.25				2.59				50,000
		#1082 Corporate bond			2021.10.25				2031.10.25				2.61				130,000
		#1083 Corporate bond			2021.11.04				2022.11.04				1.63				250,000
		#1084 Corporate bond			2021.11.04				2023.11.04				2.13				50,000
		#1085 Corporate bond			2021.11.04				2026.11.04				2.53				100,000
		#1086 Corporate bond			2021.11.11				2028.11.11				2.56				100,000
		#1087 Corporate bond			2021.11.11				2031.11.11				2.58				50,000
		#1088 Corporate bond			2021.11.12				2028.11.12				2.59				100,000
		#1089 Corporate bond			2021.11.12				2031.11.12				2.59				50,000
Korea Hydro & Nuclear Power Co., Ltd.		#61-1 Corporate bond			2021.10.14				2026.10.14				2.34				50,000
		#61-2 Corporate bond			2021.10.14				2041.10.14				2.49				90,000
		#61-3 Corporate bond			2021.10.14				2051.10.14				2.45				160,000
		#62-1 Corporate bond			2021.11.03				2026.11.03				2.55				100,000
		#62-2 Corporate bond			2021.11.03				2041.11.03				2.60				50,000
		#62-3 Corporate bond			2021.11.03				2051.11.03				2.59				90,000
Korea South-East Power Co., Ltd.		#52-1 Corporate bond			2021.11.09				2022.11.09				1.90				220,000
		#52-2 Corporate bond			2021.11.09				2051.11.09				2.47				10,000
Korea Midland Power Co., Ltd.		#64-1 non-guaranteed Corporate bond			2021.11.11				2023.11.11				2.21				10,000
		#64-2 non-guaranteed Corporate bond			2021.11.11				2024.11.11				2.42				40,000
		#64-3 non-guaranteed Corporate bond			2021.11.11				2026.11.11				2.60				20,000
		#64-4 non-guaranteed Corporate bond			2021.11.11				2031.11.11				2.63				40,000
Korea Western Power Co., Ltd.		#50-1 Corporate bond			2021.11.10				2024.11.10				2.36				20,000
		#50-2 Corporate bond			2021.11.10				2026.11.10				2.60				60,000
		#50-3 Corporate bond			2021.11.10				2041.11.10				2.50				10,000
Korea Southern Power Co., Ltd.		#62-1 Unsecured public bond			2021.10.20				2023.10.19				1.99				10,000
		#62-2 Unsecured public bond			2021.10.20				2023.10.20				1.99				50,000
		#62-3 Unsecured public bond			2021.10.20				2024.10.20				2.19				50,000
		#62-4 Unsecured public bond			2021.10.20				2031.10.20				2.52				110,000
		#63-1 Unsecured public bond			2021.11.04				2041.11.04				2.66				60,000
		#63-2 Unsecured public bond			2021.11.04				2051.11.04				2.59				60,000
Korea East-West Power Co., Ltd.		#21-7 Corporate bond			2021.11.04				2024.11.03				2.53				40,000
		#21-8 Corporate bond			2021.11.04				2026.11.03				2.76				100,000
		#21-9 Corporate bond			2021.11.04				2041.11.03				2.62				10,000

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2021 and 2020 (Unaudited)

51. 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, 2021 and 2020 to the operating profit 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, 2021								September 30, 2020
		Three-month period ended				Nine-month period ended				Three-month period ended				Nine-month period ended
Operating profit(loss) on consolidated interim statements of comprehensive income (loss)		W	(936,691	)			(1,129,832	)			2,332,205				3,152,569
Add
Other income
Reversal of other provisions			—				6,559				2,269				22,161
Reversal of other allowance for doubtful accounts			19				98				6,685				2,465
Gains on government grants			188				386				52				181
Gains on assets contributed			572				3,483				693				23,177
Gains on liabilities exempted			61				1,783				27				1,240
Compensation and reparations revenue			14,179				67,898				41,398				81,795
Revenue from foundation fund			1				1				—				—
Revenue from research contracts			1,645				3,711				1,456				2,138
Rental income			51,331				152,006				49,431				145,884
Others			4,030				25,124				15,418				29,235
Other gains
Gains on disposal of property, plant and equipment			22,807				45,081				25,570				81,733
Gains on disposal of intangible assets			1				1				—				1,556
Reversal of impairment losses on property, plant and equipment			—				—				1,068				7,805
Gains on foreign currency translation			16,349				22,955				—				6,862
Gains on foreign currency transactions			15,784				33,051				11,785				34,937
Gains on insurance proceeds			—				144				3,124				8,789
Others			60,406				188,404				50,573				224,527
Deduct
Other expenses
Compensation and reparations expenses			(281	)			(876	)			(3,095	)			(11,872	)
Accretion expenses of other provisions			(1,966	)			(3,055	)			(590	)			(704	)
Depreciation expenses on investment properties			(376	)			(1,101	)			(360	)			(1,095	)
Depreciation expenses on idle assets			(879	)			(2,733	)			(1,640	)			(4,916	)
Other bad debt expense			(3,978	)			(11,046	)			—				(502	)
Donations			(20,559	)			(88,004	)			(211,258	)			(300,453	)
Others			(8,821	)			(19,961	)			(4,949	)			(12,325	)
Other losses
Losses on disposal of property, plant and equipment			(14,792	)			(43,850	)			(36,251	)			(55,504	)
Losses on disposal of intangible assets			(1	)			(38	)			—				—
Losses on impairment of property, plant and equipment			(2	)			(3,317	)			—				(9,162	)
Losses on impairment of intangible assets			—				—				—				(3,505	)
Losses on foreign currency translation			(8,839	)			(13,006	)			(7,785	)			(9,436	)
Losses on foreign currency transactions			(22,876	)			(44,008	)			(5,965	)			(37,591	)
Others			(9,888	)			(106,991	)			(37,785	)			(95,169	)
Adjusted operating profit (loss)		W	(842,576	)			(917,133	)			2,232,076				3,284,820

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