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Retained Earnings and Dividends Paid

12 Months Ended

Dec. 31, 2021

31.	Retained Earnings and Dividends Paid

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


		2020		2021

		In millions of won
Legal reserve(*)	￦		1,604,910		1,604,910
Voluntary reserves			32,179,066		33,282,817
Retained earnings before appropriations			17,349,625		10,359,255

Retained earnings	￦		51,133,601		45,246,982

(*)

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

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


		2020		2021

		In millions of won
Reserve for investment on social overhead capital	￦		5,277,449		5,277,449
Reserve for research and human development(*)			330,000		330,000
Reserve for business expansion			26,361,617		27,465,368
Reserve for equalizing dividends			210,000		210,000

	￦		32,179,066		33,282,817

(*)

The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea.

(3)	Changes in retained earnings for the years ended December 31, 2020 and 2021 are as follows:


		2020			2021

		In millions of won
Beginning balance	￦		49,202,133			51,133,601
Profit (loss) for the period attributed to owner of the controlling Company			1,991,347			(5,315,055	)
Changes in equity method retained earnings			3,181			3,609
Remeasurements of defined benefit liability, net of tax			(62,857	)		201,067
Transfer of gain (loss) on valuation of financial assets at FVOCI			—			4,388
Dividends paid			—			(780,628	)
Transactions between consolidated entities			(203	)		—

Ending balance	￦		51,133,601			45,246,982

(4)	Dividends paid for the years ended December 31, 2019, 2020 and 2021 are as follows:


	2019
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		—		—


	2020
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		—		—


	2021
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		1,216		780,628

(5)	Changes in retained earnings of investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows:


		2020			2021

		In millions of won
Beginning balance	￦		(2,820	)		361
Changes			3,181			3,609

Ending balance	￦		361			3,970

(6)	Changes in remeasurement components related to defined benefit liability for the years ended December 31, 2020 and 2021 are as follows:


		2020			2021

		In millions of won
Beginning balance	￦		(117,779	)		(169,234	)
Changes			(77,828	)		327,957
Income tax effect			14,971			(126,890	)
Transfer to reserve for business expansion			11,402			67,011

Ending balance	￦		(169,234	)		98,844