6-K 1 d370212d6k.htm FORM 6-K

Form 6-K

Table of Contents

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the Month of September 2022

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

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

    Form 20-F  ☒             Form 40-F  ☐

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

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

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

    Yes  ☐             No  ☒

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

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

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QUARTERLY BUSINESS REPORT

(For the period from January 1, 2022 to June 30, 2022)

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

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

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

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I. Company Overview

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

2. Information of the company

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

(Phone number) 82-61-345-4213

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

3. Major businesses

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

• development of electric power resources;

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

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

• overseas business related to the businesses mentioned above;

• investment or contributions related to the businesses mentioned above;

• development and operation of certain real estate holdings; and

• other businesses entrusted by the government.

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

4. Consolidated subsidiaries

		(As of June 30, 2022)
Listed		Unlisted		Total
2		153		155

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5. Major changes in management

A. On January 27, 2022, Mr. Park, Jong-Bae, whose term of office expired, was reappointed as a non-standing director for a term of a year beginning on January 31, 2022.

B. On June 9, 2022, a non-standing director Mr. Seong, Si-Heon’s 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: KEPCO did not pay any dividend for fiscal year 2021. Dividend payments for fiscal year 2020 was Won 1,216 per share and Won 780.6 billion as a total.

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II. Business Overview

1. Consolidated financial results by segment for a six-month period ended June 30, 2021 and 2022

		(In billions of Won)
		January to June 2021								January to June 2022
		Sales				Operating profit				Sales				Operating profit
Electricity sales			28,260				-2,005				30,871				-15,005
Nuclear generation			5,451				1,357				5,030				588
Thermal generation			10,827				188				17,847				-35
Plant maintenance & engineering service			1,246				123				1,342				81
Others(1)			924				106				1,199				141
Subtotal			46,708				-231				56,289				-14,230
Adjustment for related- party transactions			-18,023				44				-24,297				-74
Total			28,685				-187				31,992				-14,303

Note:

(1) Others relate to business areas including overseas businesses, etc..

2. Changes in unit prices of major products

										(In Won per kWh)
Business sector				Company		January to June 2021				January to June 2022
Electricity sold		Residential					107.03				114.80
		Commercial					125.33				128.95
		Educational					96.84				101.34
		Industrial		KEPCO			102.84				107.91
		Agricultural					45.75				50.85
		Street lighting					112.87				118.99
		Overnight usage					65.14				69.48
Electricity from nuclear generation		Nuclear Generation		KHNP			69.72				57.81
Electricity from thermal generation		Thermal generation		KOSEP			99.99				157.60
				KOMIPO			89.15				163.55
				KOWEPO			96.90				155.57
				KOSPO			99.52				170.41
				EWP			102.62				167.64

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3. Power purchase from generation companies for a six-month period ended June 30, 2022

Company		Volume (GWh)				Expense (In billions of Won)
KHNP			84,699				4,905
KOSEP			20,621				3,108
KOMIPO			21,633				3,441
KOWEPO			19,725				3,059
KOSPO			23,814				4,040
EWP			17,667				2,931
Others			93,181				17,569
Total			281,340				39,053

4. Intellectual property as of June 30, 2022

		Patents				Utility models				Designs				Trademarks				Total
KEPCO			2,656				16				106				72				2,850
Generation subsidiaries			3,373				77				65				240				3,755
Total			6,029				93				171				312				6,605

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III. Financial Information

1. Condensed consolidated financial results as of and for a six-month period June 30, 2021 and 2022

												(In billions of Won)
Consolidated statements of comprehensive income										Consolidated statements of financial position
		January to June 2021(1)		January to June 2022		Change (%)						December 31, 2021		June 30, 2022		Change (%)
Sales		28,685		31,992		11.5				Total assets		211,115		221,223		4.8
Operating profit (loss)		-187		-14,303		7,548.7				Total liabilities		145,797		165,799		13.7
Net income		-550		-10,762		1,856.7				Total equity		65,318		55,424		-15.1

Note:

(1) The figures for the six three-month period ended June 30, 2021 were changed from the Form 6-K dated September 15, 2021 due to the amendment of K-IFRS 1016, effective since January 1, 2022.

2. Condensed separate financial results as of and for a six-month period June 30, 2021 and 2022

												(In billions of Won)
Separate statements of comprehensive income										Separate statements of financial position
		January to June 2021		January to June 2022		Change (%)						December 31, 2021		June 30, 2022		Change (%)
Sales		28,260		30,871		9.2				Total assets		115,579		121,194		4.9
Operating profit (loss)		-2,005		-15,005		648.4				Total liabilities		68,532		84,302		23.7
Net income		-1,206		-10,811		796.4				Total equity		47,047		36,392		-22.6

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IV. Board of Directors (KEPCO Only)

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

* 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 six-month period ended June 30, 2022

				Classification
Number of meetings		Number of agendas		Resolutions		Reports
6		19		14		5

* The audit committee held 6 meetings with 31 agenda (of which, 19 were approved as proposed and 12 were accepted as reported).

3. Major activities of the Board of Directors

Date		Agenda		Results		Type
January 26, 2022		Approval of the safety management plan of 2022		Approved as proposed		Resolution
		Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.		Approved as proposed		Resolution
February 24, 2022		Approval to call for the annual general meeting of shareholders for the fiscal year 2021		Approved as proposed		Resolution
		Approval of consolidated and separate financial statements for the fiscal year 2021		Approved as proposed		Resolution
		Approval of the maximum aggregate amount of remuneration for directors in 2022		Approved as proposed		Resolution
		Report on internal control over financial reporting for the fiscal year 2021		Accepted as reported		Report
		Report on the evaluation of internal control over financial reporting for the fiscal year 2021		Accepted as reported		Report
		Report on audit results for 2021		Accepted as reported		Report
		Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)		Accepted as reported		Report

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March 18, 2022		Approval of establishment of research-based spin-off companies of KEPCO		Approved as proposed		Resolution
		Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States		Approved as proposed		Resolution
		Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu		Approved as proposed		Resolution
April 8, 2022		Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director		Approved as proposed		Resolution
		Approval of amendments to the Regulation for Employee Remuneration and Welfare		Approved as proposed		Resolution
June 24, 2022		Approval of forming Director Nomination Committee and evaluation standards for the candidates of a non-standing director		Approved as proposed		Resolution
		Approval of the mid-to-long term financial management plan (2022-2026)		Approved as proposed		Resolution
		Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.		Approved as proposed		Resolution
		Report on audit results for the first quarter of 2022		Accepted as reported		Report
June 27, 2022		Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation		Approved as proposed		Resolution

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4. Attendance Status of Non-standing directors

Date

Agenda

Seong, Si- Heon

Park, Jong- Bae

Bang, Su- Ran

Park, Hyo- Sung

Lee, Kee- Man

Hwang, Cheol- Ho

Lee, Kye- Sung

Kim, Jae- Shin

January 26, 2022

Approval of the safety management plan of 2022

For

For

For

For

For

For

For

For

Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.

For

For

For

For

For

For

For

For

February 24, 2022

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

For

For

For

For

For

For

For

For

Approval of consolidated and separate financial statements for the fiscal year 2021

For

For

For

For

For

For

For

For

Approval of the maximum aggregate amount of remuneration for directors in 2022

For

For

For

For

For

For

For

For

Report on internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on audit results for 2021

Agenda for Report

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)

Agenda for Report

March 18, 2022

Approval of establishment of research-based spin-off companies of KEPCO

For

For

For

For

For

For

For

For

Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States

For

For

For

For

For

For

For

For

Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu

For

For

For

For

For

For

For

For

April 8, 2022

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

For

For

For

For

For

For

For

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

For

For

June 24, 2022

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

For

For

For

For

For

For

For

For

Approval of the mid-to-long term financial management plan (2022-2026)

For

For

For

For

For

For

For

For

Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.

For

For

For

For

For

For

For

For

Report on audit results for the first quarter of 2022

Agenda for Report

June 27, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

For

For

For

For

For

For

For

Attendance Rate

100%

100%

100%

100%

100%

100%

100%

100%

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5. Attendance Status of Standing directors

Date

Agenda

Cheong, Seung- Il

Choi, Young- Ho

Lee, Heyn- Bin

Lee, Jong- Hwan

Park, Heon- Gyu

Kim, Tae- Ok

Lee, Heung- Joo

January 26, 2022

Approval of the safety management plan of 2022

For

For

For

For

For

For

For

Approval of a debt guarantee on the financing agreement of Jeju Hanlim Offshore Wind Co., Ltd.

For

For

For

For

For

For

For

February 24, 2022

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

For

For

For

For

For

For

For

Approval of consolidated and separate financial statements for the fiscal year 2021

For

For

For

For

For

For

For

Approval of the maximum aggregate amount of remuneration for directors in 2022

For

For

For

For

For

For

For

Report on internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on the evaluation of internal control over financial reporting for the fiscal year 2021

Agenda for Report

Report on audit results for 2021

Agenda for Report

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2022-2023)

Agenda for Report

March 18, 2022

Approval of establishment of research-based spin-off companies of KEPCO

For

For

For

For

For

For

For

Approval to provide a guarantee for tax equity investors of the Guam Mangilao Solar Power project in the United States

For

For

For

For

For

For

For

Approval of plans for sales of the remainder of real estate holdings within a substation in Uijeongbu

For

For

For

For

For

For

For

April 8, 2022

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

For

For

For

For

For

For

For

Approval of amendments to the Regulation for Employee Remuneration and Welfare

For

For

For

For

For

For

For

June 24, 2022

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

For

For

For

For

For

For

For

Approval of the mid-to-long term financial management plan (2022-2026)

For

For

For

For

For

For

For

Approval of partial sale of equity interests of KEPCO Engineering and Construction Co., Inc.

For

For

For

For

For

For

For

Report on audit results for the first quarter of 2022

Agenda for Report

June 27, 2022

Approval of amendment to the Terms and Condition for Electricity Supply and Rules for Operation

For

For

For

For

For

For

For

Attendance Rate

100%

100%

100%

100%

100%

100%

100%

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6. Major activities of the ESG Committee

Date		Agenda		Results		Type
May 20, 2022		Report on implementation strategy of KEPCO ESG Management		Accepted as reported		Report
June 24, 2022		Approval of implementation strategy of KEPCO ESG Management		Approved as proposed		Resolution
		Report on publication plan of Sustainability Report of 2022		Accepted as reported		Report
		Report on implementation structure of KEPCO ethical & compliance management and Korean government’s plan to introduce its ethical & compliance system		Accepted as reported		Report

7. Attendance Status of the ESG Committee

Date		Agenda		Seong, Si-Heon		Bang, Su-Ran		Hwang, Cheol-Ho
May 20, 2022		Report on implementation strategy of KEPCO ESG Management		Agenda for Report
June 24, 2022		Approval of implementation strategy of KEPCO ESG Management		For		For		For
		Report on publication plan of Sustainability Report of 2022		Agenda for Report
		Report on implementation structure of KEPCO ethical & compliance management and Korean government’s plan to introduce its ethical & compliance system		Agenda for Report

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8. Major activities of the Audit Committee

Date		Agenda		Results		Type
January 26, 2022		Approval of audit plans for 2022		Approved as proposed		Resolution
		Approval of amendments to Code of Conduct and Guidelines for Practice of KEPCO Executives and Employees		Approved as proposed		Resolution
		Approval of plans on KEPCO Integrity Certification awards		Approved as proposed		Resolution
		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 audit education plans in 2022		Accepted as reported		Report
		Report on audit progress by independent auditors for fiscal year 2021		Accepted as reported		Report
February 24, 2022		Approval of for the consolidated and separate financial statements and business report for the fiscal year 2021		Approved as proposed		Resolution
		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 internal control over financial reporting for the fiscal year 2021		Accepted as reported		Report
		Report on the evaluation on internal control over financial reporting for the fiscal year 2021		Accepted as reported		Report
		Report on audit results for 2021		Accepted as reported		Report
March 18, 2022		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 2021		Accepted as reported		Report
April 22, 2022		Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees		Approved as proposed		Resolution
		Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes		Approved as proposed		Resolution
		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Report on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission		Accepted as reported		Report
		Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission		Accepted as reported		Report

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May 20, 2022		Prior approval for non-audit service for subsidiaries by the independent auditor		Approved as proposed		Resolution
		Approval of appointment of independent auditors of subsidiaries		Approved as proposed		Resolution
		Approval of amendments to the Guidelines for Disciplinary Actions		Approved as proposed		Resolution
		Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes		Approved as proposed		Resolution
		Independent auditor’s review report on the financial statements of the first quarter of the fiscal year 2022		Accepted as reported		Report
June 24, 2022		Approval of amendments to the Guidelines for Handling of Whistleblowing Report and Protection of Whistleblowers		Approved as proposed		Resolution
		Approval of amendments to the Guidelines for Immunity of Proactive Performance		Approved as proposed		Resolution
		Report on audit results for the first quarter of 2022		Accepted as reported		Report
		Auditor’s review report for the fiscal year of 2021		Accepted as reported		Report
		Independent auditor’s report on the audit plans for the fiscal year 2022		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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9. Attendance Status of the Audit Committee

Date		Agenda		Kim, Jae-Shin		Park, Hyo-Sung		Choi, Young-Ho
January 26, 2022		Approval of Audit plans for 2022		Attended		Attended		Attended
		Approval of Amendments to Code of Conduct and Guidelines for Practice of KEPCO executives and staff members
		Approval of plans on KEPCO Integrity Certification awards
		Approval of appointment of independent auditors of subsidiaries
		Prior approval for non-audit service for subsidiaries by the independent auditor
		Report on audit education plans in 2022
		Report on audit progress by independent auditors for fiscal year 2021
February 24, 2022		Approval of for the consolidated and separate financial statements and business report for the fiscal year 2021		Attended		Attended		Attended
		Approval of appointment of independent auditors of subsidiaries
		Prior approval for non-audit service for subsidiaries by the independent auditor
		Report on internal control over financial reporting for the fiscal year 2021
		Report on the evaluation on internal control over financial reporting for the fiscal year 2021
		Report on audit results for 2021
March 18, 2022		Approval of investigation result on the agenda for the annual general meeting of shareholders		Attended		Attended		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 2021
April 22, 2022		Approval of amendments to the Guidelines for Preventing Conflict of Interests of KEPCO Executives and Employees		Attended		Attended		Attended
		Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes
		Approval of appointment of independent auditors of subsidiaries
		Report on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission
		Report on audit progress by independent auditor on the Form 20-F for the fiscal year 2021 to be filed with the U.S. Securities and Exchange Commission
May 20, 2022		Prior approval for non-audit service for subsidiaries by the independent auditor		Attended		Attended		Attended
		Approval of appointment of independent auditors of subsidiaries
		Approval of amendments to the Guidelines for Disciplinary Actions
		Approval of amendments to the Guidelines to Sue or Accuse Employees for Work-related Crimes
		Independent auditor’s review report on the financial statements of the first quarter of the fiscal year 2022
June 24, 2022		Approval of amendments to the Guidelines for Handling of Whistleblowing Report and Protection of Whistleblowers		Attended		Attended		Attended
		Approval of amendments to the Guidelines for Immunity of Proactive Performance
		Report on audit results for the first quarter of 2022
		Auditor’s review report for the fiscal year of 2021
		Independent auditor’s report on the audit plans for the fiscal year 2022
Attendance Rate				100%		100%		100%

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V. Shareholder’s Meetings

1. Summary of shareholder’s meetings for a six-month period ended June 30, 2022

Type		Agenda		Results
Annual General Meeting held on March 28, 2022		Approval of the consolidated and separate financial statements for the fiscal year 2021		Approved as proposed
		Approval of the maximum aggregate amount of remuneration for directors in 2022		Approved as proposed

VI. Shareholders

1. List of shareholders as of June 30, 2022

				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				43,174,965				6.73
Public (Non-Koreans)		Common Shares			1,140				79,287,674				12.35
		American depositary shares (ADS)			1				11,024,022				1.72
Public (Koreans)					711,202				180,400,358				28.10
Total					712,346				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 six-month period ended June 30, 2022 (KEPCO Only)

1. Directors

										(In thousands of Won)
Type				Number of directors		Total remuneration				Average remuneration per person				Remarks
Standing director				6			668,069				111,344			Excluding members of the Audit Committee
Non-standing director				6			90,000				15,000
Member of Audit Committee		Standing director		1			125,702				125,702			—
		Non-standing director		2			30,000				15,000			—
Total				15			913,771				60,918			—

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			18,311				73				18,384				14.9				805,735,594				44,231
Female			5,384				47				5,431				12.8				193,209,851				36,392
Total			23,695				120				23,815				14.4				998,945,444				42,461

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VIII. Other Information Necessary for the Protection of Investors

1. Pending legal proceedings as of June 30, 2022

						(In billions of Won)
Type		Number of lawsuits				Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants			671				1,001
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs			211				801

2. Sanctions as of June 30, 2022

Prosecution Date		Subject				Sanctions		Relevant laws (charges)		Proceedings
		Position		Tenure
June 30, 2021		CEO of Korea Hydro & Nuclear Power Co., Ltd. (Currently)		4yrs		Prosecution without detention		The Act on the Aggravated Punishment, etc. of specific economic crimes (Occupational breach of trust), The Criminal Act		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/ Jun, Chul-soo
				Name:		Jun, Chul-soo
				Title:		General Manager of International Finance & IR Team
Date: September 15, 2022

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KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

For the six-month periods ended June 30, 2022 and 2021

(With Independent Auditor’s Review Report Thereon)

1

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INDEX TO FINANCIAL STATEMENTS

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

2

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Independent Auditor’s Review Report

(English Translation of a Report Originally Issued in Korean)

The Board of Directors and Shareholders

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 June 30, 2022, and the related consolidated interim statements of comprehensive income (loss) for the three-month and six-month periods ended June 30, 2022 and 2021, consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the six-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 International Financial Reporting Standards as adopted by the Republic of Korea (“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 Standards on Auditing (“KSAs”) 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, 2021, 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 KSAs, and our report dated March 14, 2022 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2021 presented for comparative purposes, is not different, in all material respects, from the above audited consolidated statement of financial position.

August 16, 2022

This review report is effective as of August 16, 2022, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying consolidated interim financial statements and may result in modifications to this review report.

3

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of June 30, 2022 (Unaudited) and December 31, 2021

In millions of won		Note				June 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	3,090,752				2,635,238
Current financial assets, net			5,6,9,11,12,13,44,46				2,893,948				1,868,796
Trade and other receivables, net			5,8,20,24,44,45,46				8,037,602				8,122,415
Inventories, net			14				9,466,113				7,608,182
Income tax receivables							38,679				41,344
Current non-financial assets			15				2,282,251				1,758,991
Assets held-for-sale			16,41				44,749				15,879
Total current assets							25,854,094				22,050,845
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44,46				3,629,543				2,909,810
Non-current trade and other receivables, net			5,8,20,44,45,46				2,233,915				1,906,861
Property, plant and equipment, net			2,18,24,27,48				173,510,383				173,125,649
Investment properties, net			19,27				208,259				212,784
Goodwill			16				99,770				105,647
Intangible assets other than goodwill, net			21,27,45				991,944				1,044,077
Investments in associates			4,17				5,619,941				5,232,373
Investments in joint ventures			4,17				2,934,163				2,239,011
Defined benefit assets, net			25				64,704				20,871
Deferred tax assets							5,769,685				1,901,992
Non-current non-financial assets			15				306,106				364,818
Total non-current assets							195,368,413				189,063,893
Total Assets			2,4			W	221,222,507				211,114,738

(Continued)

4

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of June 30, 2022 (Unaudited) and December 31, 2021

In millions of won		Note				June 30, 2022				December 31, 2021
Liabilities
Current liabilities
Trade and other payables, net			5,22,24,44,46			W	9,343,091				8,153,426
Current financial liabilities, net			5,12,23,44,46				18,004,100				14,037,125
Income tax payables							317,606				229,460
Current non-financial liabilities			20,28,29				6,772,236				6,466,333
Current provisions			26,44				2,681,000				2,845,876
Total current liabilities							37,118,033				31,732,220
Non-current liabilities
Non-current trade and other payables, net			5,22,24,44,46				6,105,228				5,996,498
Non-current financial liabilities, net			5,12,23,44,46				81,340,403				66,570,419
Non-current non-financial liabilities			28,29				10,531,213				10,216,364
Employee benefits liabilities, net			25,44				1,338,387				1,679,158
Deferred tax liabilities							6,775,801				7,100,938
Non-current provisions			26,44				22,589,720				22,501,424
Total non-current liabilities							128,680,752				114,064,801
Total Liabilities			4			W	165,798,785				145,797,021
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			2, 31
Legal reserves							1,604,910				1,604,910
Voluntary reserves							27,782,969				33,282,817
Unappropriated retained earnings							5,408,294				10,365,123
							34,796,173				45,252,850
Other components of equity			33
Other capital surplus							1,231,091				1,231,109
Accumulated other comprehensive income (loss)							444,559				(57,632	)
Other equity							13,294,973				13,294,973
							14,970,623				14,468,450
Equity attributable to owners of the controlling company							53,820,374				63,774,878
Non-controlling interests			16,32				1,603,348				1,542,839
Total Equity			2			W	55,423,722				65,317,717
Total Liabilities and Equity						W	221,222,507				211,114,738

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three and six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won, except per share information						June 30, 2022								June 30, 2021
		Note				Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Sales			2,4,34,44,46
Sales of goods						W	14,889,749				30,927,545				12,985,753				27,686,828
Sales of services							172,501				283,574				94,936				192,611
Sales of construction services			20				288,665				429,459				349,348				480,439
Revenue related to transfer of assets from customers			28				177,120				351,527				163,636				324,950
							15,528,035				31,992,105				13,593,673				28,684,828
Cost of sales			2,14,25,42,46
Cost of sales of goods							(20,856,601	)			(44,186,239	)			(13,268,380	)			(26,958,586	)
Cost of sales of services							(153,266	)			(294,088	)			(57,171	)			(164,951	)
Cost of sales of construction services							(265,121	)			(397,499	)			(329,884	)			(443,604	)
							(21,274,988	)			(44,877,826	)			(13,655,435	)			(27,567,141	)
Gross profit (loss)							(5,746,953	)			(12,885,721	)			(61,762	)			1,117,687
Selling and administrative expenses			25,35,42,46				(769,395	)			(1,417,549	)			(691,141	)			(1,304,960	)
Operating loss			4				(6,516,348	)			(14,303,270	)			(752,903	)			(187,273	)
Other income			36				98,906				174,194				89,136				189,045
Other expenses			36				(41,562	)			(90,805	)			(70,782	)			(89,938	)
Other gains (losses), net			37				59,978				50,131				(33	)			19,478
Finance income			5,12,38				977,101				1,258,707				148,568				629,296
Finance expenses			5,12,39				(1,664,484	)			(2,588,018	)			(474,454	)			(1,491,184	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,16,17
Share in profit of associates and joint ventures							321,036				712,717				77,670				327,528
Gain on disposal of investments in associates and joint ventures							394				4,931				42				41
Share in loss of associates and joint ventures							(15,402	)			(103,966	)			—				(50,707	)
Loss on disposal of investments in associates and joint ventures							(67	)			(382	)			(83	)			(161	)
Loss on disposal of investments in subsidiaries							(31,532	)			(31,533	)			(1,090	)			(1,192	)
							274,429				581,767				76,539				275,509

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three and six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won, except per share information						June 30, 2022								June 30, 2021
		Note				Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Loss before income tax						W	(6,811,980	)			(14,917,294	)			(983,929	)			(655,067	)
Income tax benefit			40				1,976,160				4,155,550				321,962				105,498
Loss for the period							(4,835,820	)			(10,761,744	)			(661,967	)			(549,569	)
Other comprehensive income (loss), net of tax			5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability			25,31			W	200,266				348,594				1,521				67,751
Share in other comprehensive income (loss) of associates and joint ventures			31				881				2,368				375				(1,176	)
Net change in fair value of financial assets at fair value through other comprehensive income (loss)			33				(41,797	)			(20,443	)			16,332				35,065
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				27,298				(7,446	)			40,183				36,858
Foreign currency translation of foreign operations			33				16,242				93,477				6,732				27,984
Share in other comprehensive income (loss) of associates and joint ventures			33				298,140				463,454				46,014				184,552
Other comprehensive income (loss) for the period							501,030				880,004				111,157				351,034
Total comprehensive income (loss) for the period						W	(4,334,790	)			(9,881,740	)			(550,810	)			(198,535	)
Profit (loss) attributable to:
Owners of the controlling company			43			W	(4,837,193	)			(10,790,049	)			(683,950	)			(604,252	)
Non-controlling interests							1,373				28,305				21,983				54,683
						W	(4,835,820	)			(10,761,744	)			(661,967	)			(549,569	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company						W	(4,364,493)				(9,954,640	)			(568,821	)			(269,721	)
Non-controlling interests							29,703				72,900				18,011				71,186
						W	(4,334,790	)			(9,881,740	)			(550,810	)			(198,535	)
Loss per share (in won)			43
Basic and diluted loss per share						W	(7,535	)			(16,808	)			(1,065	)			(941	)

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

7

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won		Equity attributable to owners of the controlling company
		Contributed capital				Retained earnings				Other components of equity				Subtotal				Non- controlling interests				Total equity
Balance at January 1, 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			—				(604,252	)			—				(604,252	)			54,683				(549,569	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				65,183				—				65,183				2,568				67,751
Share in other comprehensive loss of associates and joint ventures, net of tax			—				(1,176	)			—				(1,176	)			—				(1,176	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—				—				35,064				35,064				1				35,065
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			—				—				35,545				35,545				1,313				36,858
Foreign currency translation of foreign operations, net of tax			—				—				15,363				15,363				12,621				27,984
Share in other comprehensive income of associates and joint ventures, net of tax			—				—				184,552				184,552				—				184,552
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			—				—				(373	)			(373	)			2,845				2,472
Transactions between consolidated entities			—				—				3,777				3,777				(3,850	)			(73	)
Changes in consolidation scope			—				—				—				—				45,805				45,805
Dividends paid (hybrid bond)			—				—				—				—				(6,692	)			(6,692	)
Others			—				4,454				(4,454	)			—				—				—
Balance at June 30, 2021		W	4,053,578				49,817,182				14,378,975				68,249,735				1,448,840				69,698,575

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won		Equity attributable to owners of the controlling company
		Contributed capital				Retained earnings				Other components of equity				Subtotal				Non- controlling interests				Total equity
Balance at January 1, 2022		W	4,053,578				45,252,850				14,468,450				63,774,878				1,542,839				65,317,717
Total comprehensive income (loss) for the period
Profit (loss) for the period			—				(10,790,049	)			—				(10,790,049	)			28,305				(10,761,744	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax			—				330,850				—				330,850				17,744				348,594
Share in other comprehensive income of associates and joint ventures, net of tax			—				2,368				—				2,368				—				2,368
Net change in fair value of equity investments at fair value through other comprehensive income, net of tax			—				—				(20,442	)			(20,442	)			(1	)			(20,443	)
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			—				—				(10,757	)			(10,757	)			3,311				(7,446	)
Foreign currency translation of foreign operations, net of tax			—				—				69,936				69,936				23,541				93,477
Share in other comprehensive income of associates and joint ventures, net of tax			—				—				463,454				463,454				—				463,454
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—				—				—				—				(33,276	)			(33,276	)
Issuance of shares of capital by subsidiaries and others			—				154				1,048				1,202				26,294				27,496
Transactions between consolidated entities			—				—				(515	)			(515	)			(2,454	)			(2,969	)
Changes in consolidation scope							—				(551	)			(551	)			3,737				3,186
Dividends paid (hybrid bond)			—				—				—				—				(6,692	)			(6,692	)
Balance at June 30, 2022		W	4,053,578				34,796,173				14,970,623				53,820,374				1,603,348				55,423,722

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won		June 30, 2022				June 30, 2021
Cash flows from operating activities
Loss for the period		W	(10,761,744	)			(549,569	)
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Income tax benefit			(4,155,550	)			(105,498	)
Depreciation			6,167,846				5,846,924
Amortization			77,632				84,883
Employee benefit expense			235,034				246,937
Bad debt expense			3,705				9,524
Interest expense			1,203,655				919,385
Loss on disposal of financial assets			907				385
Loss on disposal of property, plant and equipment			51,770				29,058
Loss on abandonment of property, plant and equipment			101,753				110,074
Impairment loss on property, plant and equipment			—				3,315
Impairment loss on intangible assets			14				—
Loss on disposal of intangible assets			39				37
Increase in provisions			838,592				1,107,891
Loss on foreign currency translation, net			1,108,939				434,314
Gain on valuation of financial assets at fair value through profit or loss			(2,334	)			(2,121	)
Loss on valuation of financial assets at fair value through profit or loss			13,838				4,817
Valuation and transaction gain on derivative instruments, net			(912,179	)			(391,172	)
Share in profit of associates and joint ventures, net			(608,751	)			(276,821	)
Gain on disposal of financial assets			(1,107	)			(2,393	)
Gain on disposal of property, plant and equipment			(77,975	)			(22,274	)
Gain on disposal of intangible assets			(132	)			—
Gain on disposal of associates and joint ventures			(4,931	)			(41	)
Loss on disposal of associates and joint ventures			382				161
Loss on disposal of subsidiaries			31,533				1,192
Interest income			(138,271	)			(107,132	)
Dividend income			(15,278	)			(6,143	)
Others, net			(5,326	)			(835	)
			3,913,805				7,884,467
Changes in operating assets and liabilities:
Trade receivables			477,547				604,791
Non-trade receivables			(124,887	)			470,459
Accrued income			(154,515	)			(65,348	)
Other receivables			33,600				2,739
Other current assets			(733,491	)			(386,905	)
Inventories			(2,218,674	)			(496,072	)
Other non-current assets			20,133				38,291
Trade payables			607,098				159,320
Non-trade payables			47,001				(185,305	)
Accrued expenses			215,154				3,670
Other current liabilities			372,139				303,615
Other non-current liabilities			289,523				240,892
Investments in associates and joint ventures (dividends received)			363,226				142,748
Provisions			(788,975	)			(1,300,461	)
Payments of employee benefit obligations			(97,038	)			(70,082	)
Plan assets			(70	)			(1,625	)
		W	(1,692,229	)			(539,273	)

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows, Continued

For the six-month periods ended June 30, 2022 and 2021 (Unaudited)

In millions of won		June 30, 2022				June 30, 2021
Cash generated from operating activities		W	(8,540,168	)			6,795,625
Dividends received			15,278				6,143
Interest paid			(1,051,434	)			(961,601	)
Interest received			88,640				92,667
Income taxes paid			(261,074	)			(549,452	)
Net cash provided by (used in) operating activities			(9,748,758	)			5,383,382
Cash flows from investing activities
Proceeds from disposals of associates and joint ventures			34,385				3,362
Acquisition of investments in associates and joint ventures			(282,560	)			(237,525	)
Proceeds from disposals of property, plant and equipment			234,159				135,954
Acquisition of property, plant and equipment			(5,922,168	)			(6,795,592	)
Proceeds from disposals of intangible assets			61				—
Acquisition of intangible assets			(38,701	)			(36,906	)
Proceeds from disposals of financial assets			2,937,811				4,574,901
Acquisition of financial assets			(3,886,202	)			(4,875,562	)
Increase in loans			(297,298	)			(85,296	)
Collection of loans			45,736				152,921
Increase in deposits			(125,485	)			(105,017	)
Decrease in deposits			72,677				69,053
Proceeds from disposals of assets held-for-sale			9,576				950
Receipt of government grants			29,128				21,205
Net cash outflow from changes in consolidation scope			(1,004	)			(53,141	)
Other cash outflow from investing activities, net			(95,441	)			(118,023	)
Net cash used in investing activities			(7,285,326	)			(7,348,716	)
Cash flows from financing activities
Proceeds from short-term borrowings, net			1,897,911				3,335,734
Proceeds from long-term borrowings and debt securities			20,882,363				4,616,161
Repayment of long-term borrowings and debt securities			(5,119,736	)			(4,273,653	)
Payment of lease liabilities			(312,338	)			(322,048	)
Settlement of derivative instruments, net			149,360				27,978
Change in non-controlling interest			13,859				49,430
Dividends paid (hybrid bond)			(6,692	)			(6,692	)
Dividends paid			(33,276	)			(811,261	)
Other cash outflow from financing activities, net			(1,695	)			(6,504	)
Net cash provided by financing activities			17,469,756				2,609,145
Net increase in cash and cash equivalents before effect of exchange rate fluctuations			435,672				643,811
Effect of exchange rate fluctuations on cash held			19,842				54,064
Net increase in cash and cash equivalents			455,514				697,875
Cash and cash equivalents at January 1			2,635,238				2,029,584
Cash and cash equivalents at June 30		W	3,090,752				2,727,459

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

June 30, 2022 and 2021 (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 June 30, 2022, 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 91,105,897 shares (14.19%) as of December 31, 2021, the most recent closing date of shareholder list.

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 financial statements have been prepared in accordance with KIFRS, as prescribed in the Act on External Audits of Corporations in the Republic of Korea.

(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 (presented as “won” or “KRW”), which is also the functional currency of KEPCO and most of the significant operating subsidiaries.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and 2021 are W1,341,718 million and W1,397,539 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. Costs 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

(i) Property, Plant and Equipment: Proceeds before Intended Use – Amendments to KIFRS ‘1016’

The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The Group applied the amendment retrospectively to items of property, plant and equipment that are capable of operating on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments, and the impacts on the Group’s consolidated financial statements on the date of initial application (January 1, 2022) are as follows:

① The impacts on the Group’s consolidated statements of financial position as of December 31, 2021 are as follows:

In millions of won		Original carrying amount				Adjustment				New carrying amount
Current assets		W	22,050,845				—				22,050,845
Non-current assets			189,058,025				5,868				189,063,893
Total Assets			211,108,870				5,868				211,114,738
Current liabilities			31,732,220				—				31,732,220
Non-current liabilities			114,064,801				—				114,064,801
Total Liabilities			145,797,021				—				145,797,021
Contributed capital			4,053,578				—				4,053,578
Retained earnings			45,246,982				5,868				45,252,850
Other components of equity			14,468,450				—				14,468,450
Non-controlling interests			1,542,839				—				1,542,839
Total Equity			65,311,849				5,868				65,317,717
Total Liabilities and Equity		W	211,108,870				5,868				211,114,738

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies, continued

② The impacts on the Group’s consolidated interim statements of comprehensive income (loss) for the six-month period ended June 30, 2021 are as follows:

In millions of won except per share information		Original carrying amount				Adjustment				New carrying amount
Sales		W	28,594,215				90,613				28,684,828
Cost of sales			(27,482,396	)			(84,745	)			(27,567,141	)
Gross profit			1,111,819				5,868				1,117,687
Selling and administrative expenses			(1,304,960	)			—				(1,304,960	)
Operating loss			(193,141	)			5,868				(187,273	)
Other non-operating income			189,045				—				189,045
Other non-operating expense			(89,938	)			—				(89,938	)
Other gains, net			19,478				—				19,478
Finance income			629,296				—				629,296
Finance expenses			(1,491,184	)			—				(1,491,184	)
Profit related to associates, joint ventures and subsidiaries			275,509				—				275,509
Loss before income tax			(660,935	)			5,868				(655,067	)
Income tax benefit			105,498				—				105,498
Net Loss for the period			(555,437	)			5,868				(549,569	)
Other comprehensive income (loss)			351,034				—				351,034
Total comprehensive income (loss) for the period			(204,403	)			5,868				(198,535	)
Loss per share (in won)		W	(950	)			9				(941	)

③ The impacts on the Group’s consolidated interim statements of cash flows for the six-month period ended June 30, 2021 are as follows:

In millions of won		Original carrying amount				Adjustment				New carrying amount
Cash flows from operating activities		W	5,373,236				10,146				5,383,382
Cash flows from investing activities			(7,338,570	)			(10,146	)			(7,348,716	)
Cash flows from financing activities			2,609,145				—				2,609,145

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies, continued

(ii) Other changes in accounting standards effective from January 1, 2022 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, 2022, even though the early adoption of these standards is possible.

Onerous Contracts – Costs of Fulfilling a Contract – Amendments to KIFRS 1037

Onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The amendment specifies that the costs of fulfilling a contract comprise incremental costs, such as the costs of materials or labor, and an allocation of other costs directly related to the contract, such as an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract, when assessing whether a contract is an onerous contract. The Group will apply the amendment to the contracts for which all obligations have not been fulfilled at the date of initial application.

Reference to the Conceptual Framework – Amendments to KIFRS 1103

The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements.

An exception has been added to the recognition principle in KIFRS 1103 to avoid ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of KIFRS 1037 or KIFRS 2121 Levies. It requires an entity to apply criteria in KIFRS 1037 and IFRS 2121 respectively to determine whether a present obligation exists at the acquisition date. The amendment added a new paragraph to KIFRS 1103 to clarify that the contingent assets should not be recognized at the date of acquisition.

KIFRS 1101 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter

The amendment permits a subsidiary that elects to apply paragraph D16(a) of KIFRS 1101 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to KIFRS. This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of KIFRS 1101.

KIFRS 1109 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities

The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. There is no restricted and similar amendment to KIFRS 1039.

KIFRS 1041 Agriculture – Taxation in fair value measurements

The amendments remove the requirement in paragraph 22 of KIFRS 1041 that entities exclude cash flows for taxation when measuring the fair value of assets within the scope of KIFRS 1041.

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, 2021, except for the changes described in Note 2.(5).

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

4. Segment, Geographic and Other Information

(1) Segment determination and explanation of the measurements

The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by 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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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three and six-month periods ended June 30, 2022 and 2021, respectively, are as follows:

In millions of won
June 30, 2022
Segment		Total segment revenue								Intersegment revenue								Revenue from external customers								Operating Profit (loss)								Depreciation and amortization								Interest income								Interest expense								Profit (loss) related associates, joint ventures and subsidiaries
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Transmission and distribution		W	14,855,937				30,871,487				337,992				819,805				14,517,945				30,051,682				(5,842,698	)			(15,005,063	)			1,036,194				2,056,922				13,584				24,035				296,229				519,936				194,045				399,470
Electric power generation (Nuclear)			2,038,756				5,030,222				1,987,595				4,960,295				51,161				69,927				(62,767	)			587,590				1,004,214				2,017,266				9,269				14,459				139,484				278,013				6,238				7,996
Electric power generation (Non-nuclear)			7,905,919				17,847,198				7,313,539				16,640,021				592,380				1,207,177				(753,167	)			(34,641	)			1,032,439				2,074,336				13,538				21,618				170,921				329,409				73,236				173,631
Plant maintenance & engineering service			719,002				1,342,240				604,369				1,137,209				114,633				205,031				49,155				81,406				30,924				61,431				3,325				6,159				341				684				910				670
Others			591,877				1,198,338				339,961				740,050				251,916				458,288				60,453				141,098				51,832				91,383				45,220				86,963				44,100				94,196				—				—
Consolidation adjustments			(10,583,456	)			(24,297,380	)			(10,583,456	)			(24,297,380	)			—				—				32,676				(73,660	)			(33,140	)			(55,860	)			(7,934	)			(14,963	)			(11,331	)			(18,583	)			—				—
		W	15,528,035				31,992,105				—				—				15,528,035				31,992,105				(6,516,348	)			(14,303,270	)			3,122,463				6,245,478				77,002				138,271				639,744				1,203,655				274,429				581,767
In millions of won
June 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				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Transmission and distribution		W	13,432,735				28,260,429				479,068				807,740				12,953,667				27,452,689				(1,033,309	)			(2,005,053	)			983,181				1,965,104				8,486				17,222				157,294				319,756				76,827				240,393
Electric power generation (Nuclear)			2,494,055				5,450,726				2,463,639				5,397,948				30,416				52,778				481,865				1,357,269				914,463				1,820,892				6,494				11,462				118,839				237,679				(12,442	)			(10,516	)
Electric power generation (Non-nuclear)			5,047,152				10,827,372				4,710,931				10,174,676				336,221				652,696				(350,618	)			187,604				1,046,255				2,069,207				5,344				9,618				148,964				299,725				10,828				44,751
Plant maintenance & engineering service			676,212				1,245,624				578,263				1,068,246				97,949				177,378				56,952				122,883				30,321				60,899				2,315				4,384				(179	)			428				1,326				881
Others			467,437				923,453				292,017				574,166				175,420				349,287				65,928				106,610				43,221				76,126				37,126				77,854				39,317				76,086				—				—
Consolidation adjustments			(8,523,918	)			(18,022,776	)			(8,523,918	)			(18,022,776	)			—				—				26,279				43,414				(35,704	)			(64,371	)			(6,616	)			(13,408	)			(7,664	)			(14,289	)			—				—
		W	13,593,673				28,684,828				—				—				13,593,673				28,684,828				(752,903	)			(187,273	)			2,981,737				5,927,857				53,149				107,132				456,571				919,385				76,539				275,509

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won
June 30, 2022
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	121,194,278				5,402,353				2,640,597				84,802,595
Electric power generation (Nuclear)			65,273,239				154,259				1,282,230				38,895,968
Electric power generation (Non-nuclear)			61,759,068				2,943,767				1,674,212				38,151,748
Plant maintenance & engineering service			3,783,749				53,725				88,064				1,177,094
Others			11,863,788				—				396,480				5,410,299
Consolidation adjustments			(42,651,615	)			—				102,941				(2,638,919	)
		W	221,222,507				8,554,104				6,184,524				165,798,785
In millions of won
December 31, 2021
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	115,578,517				4,700,863				6,754,298				68,531,927
Electric power generation (Nuclear)			64,628,651				141,885				1,959,479				38,361,337
Electric power generation (Non-nuclear)			57,310,164				2,575,019				3,337,681				35,803,289
Plant maintenance & engineering service			3,672,366				53,617				110,330				1,086,926
Others			10,861,823				—				637,715				4,961,880
Consolidation adjustments			(40,936,783	)			—				(12,001	)			(2,948,338	)
		W	211,114,738				7,471,384				12,787,502				145,797,021

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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)
		June 30, 2022								June 30, 2021								June 30, 2022				December 31, 2021
Geographical unit		Three- month period ended				Six- month period ended				Three-month period ended				Six- month period ended
Domestic		W	15,032,054				31,216,049				13,125,634				27,951,829				179,355,579				178,751,575
Overseas (*1)			495,981				776,056				468,039				732,999				4,314,987				3,572,784
		W	15,528,035				31,992,105				13,593,673				28,684,828				183,670,566				182,324,359

(*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 six-month periods ended June 30, 2022 and 2021.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

5. Classification of Financial Instruments

(1) Classification of financial assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		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	—				—				3,090,752				—				3,090,752
Current financial assets
Current financial assets at fair value through profit or loss			1,862,594				—				—				—				1,862,594
Current financial assets at amortized costs			—				—				26,865				—				26,865
Current derivative assets			167,717				—				—				109,045				276,762
Other financial assets			—				—				727,727				—				727,727
Trade and other receivables			—				—				8,037,602				—				8,037,602
			2,030,311				—				11,882,946				109,045				14,022,302
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			597,336				—				—				—				597,336
Non-current financial assets at fair value through other comprehensive income			—				431,617				—				—				431,617
Non-current financial assets at amortized costs			—				—				10,113				—				10,113
Non-current derivative assets			716,400				—				—				380,651				1,097,051
Other financial assets			—				—				1,493,426				—				1,493,426
Trade and other receivables			—				—				2,233,915				—				2,233,915
			1,313,736				431,617				3,737,454				380,651				5,863,458
		W	3,344,047				431,617				15,620,400				489,696				19,885,760

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won		December 31, 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	—				—				2,635,238				—				2,635,238
Current financial assets
Current financial assets at fair value through profit or loss			360,833				—				—				—				360,833
Current financial assets at amortized costs			—				—				15,422				—				15,422
Current derivative assets			93,374				—				—				33,564				126,938
Other financial assets			—				—				1,365,603				—				1,365,603
Trade and other receivables			—				—				8,122,415				—				8,122,415
			454,207				—				12,138,678				33,564				12,626,449
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			672,031				—				—				—				672,031
Non-current financial assets at fair value through other comprehensive income			—				435,107				—				—				435,107
Non-current financial assets at amortized costs			—				—				9,851				—				9,851
Non-current derivative assets			349,653				—				—				171,192				520,845
Other financial assets			—				—				1,271,976				—				1,271,976
Trade and other receivables			—				—				1,906,861				—				1,906,861
			1,021,684				435,107				3,188,688				171,192				4,816,671
		W	1,475,891				435,107				15,327,366				204,756				17,443,120

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		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	—				8,376,211				—				8,376,211
Debt securities			—				9,607,500				—				9,607,500
Derivative liabilities			20,389				—				—				20,389
Trade and other payables			—				9,343,091				—				9,343,091
			20,389				27,326,802				—				27,347,191
Non-current liabilities
Borrowings			—				2,383,156				—				2,383,156
Debt securities			—				78,910,447				—				78,910,447
Derivative liabilities			22,854				—				23,946				46,800
Trade and other payables			—				6,105,228				—				6,105,228
			22,854				87,398,831				23,946				87,445,631
		W	43,243				114,725,633				23,946				114,792,822
In millions of won		December 31, 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	—				4,382,218				—				4,382,218
Debt securities			—				9,647,616				—				9,647,616
Derivative liabilities			6,838				—				453				7,291
Trade and other payables			—				8,153,426				—				8,153,426
			6,838				22,183,260				453				22,190,551
Non-current liabilities
Borrowings			—				2,265,624				—				2,265,624
Debt securities			—				64,234,055				—				64,234,055
Derivative liabilities			49,418				—				21,322				70,740
Trade and other payables			—				5,996,498				—				5,996,498
			49,418				72,496,177				21,322				72,566,917
		W	56,256				94,679,437				21,775				94,757,468

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income (loss) from financial instruments for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won				June 30, 2022								June 30, 2021
				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Cash and cash equivalents		Interest income		W	7,689				14,433				826				2,398
		Gain (Loss) on foreign currency transactions and translations			34,906				45,827				(949	)			10,849
Financial assets at fair value through profit or loss		Interest income			15,386				19,623				5,330				8,764
		Dividends income			805				1,058				1,227				1,365
		Loss on valuation of financial assets			(1,978	)			(11,504	)			(2,684	)			(2,696	)
		Gain (Loss) on disposal of financial assets			(506	)			200				1,512				2,008
		Gain on foreign currency transactions and translations			—				—				1,600				1,600
Financial assets at fair value through other comprehensive income		Dividends income			6,018				14,220				2,553				4,778
Financial assets at amortized cost		Interest income			390				645				116				363
		Gain (Loss) on foreign currency transactions and translations			3,524				3,225				(127	)			738
Loans		Interest income			5,725				11,011				4,240				8,673
		Gain (Loss) on foreign currency transactions and translations			479				673				(26	)			310
Trade and other receivables		Interest income			40,482				80,000				35,354				74,188
		Gain on foreign currency transactions and translations			61,988				59,290				23,887				11,501
Short-term financial instruments		Interest income			3,850				5,851				2,744				6,001
		Gain (Loss) on foreign currency transactions and translations			—				3,513				(6,226	)			13,280
Long-term financial instruments		Interest income			3,475				6,594				4,490				6,658
		Gain on foreign currency transactions and translations			1				2				13				13
Other financial assets		Interest income			5				114				48				87
Financial liabilities carried at amortized cost		Interest expense of borrowings and debt securities			470,334				870,260				297,416				611,766
		Loss on repayment of financial liabilities			—				(15	)			(10	)			(10	)
		Interest expense of trade and other payables			51,547				98,375				52,266				94,898
		Interest expense of others			117,863				235,020				106,890				212,721
		Other finance income			118				319				129				991
		Other finance expenses			681				1,314				597				1,213
		Gain (Loss) on foreign currency transactions and translations			(1,035,046	)			(1,334,588	)			2,316				(484,925	)
Derivative assets (trading)		Gain on valuation of derivatives			418,475				447,841				56,135				212,892
		Gain (Loss) on transaction of derivatives			21,134				36,624				(3,091	)			7,472
Derivatives (applying hedge accounting)		Gain (Loss) on valuation of derivatives (profit or loss)			269,683				359,894				(6,448	)			150,253
		Gain (Loss) on valuation of derivatives (equity, before tax)			45,467				(26,626	)			75,627				61,671
		Gain on transaction of derivatives			58,495				67,820				6,955				20,555

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

6. Restricted Deposits

Restricted deposits as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won				June 30, 2022				December 31, 2021
Cash and cash equivalents		Deposits for government project and others		W	31,652				22,286
		Collateral provided for borrowings			254,114				264,813
		Collateral provided for lawsuit			57				42
		Deposits for transmission regional support program			13,164				5,921
		Deposits for other business purposes			5,524				3,050
Short-term financial instruments		Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others			114,000				114,000
		Collateral provided for borrowings			—				11,745
Non-current financial assets at fair value through profit or loss		Decommissioning costs of nuclear power plants			454,234				531,720
Long-term financial instruments		Escrow accounts			—				70
		Guarantee deposits for banking accounts at oversea branches			19				333
		Collateral provided for borrowings			11,745				—
		Decommissioning costs of nuclear power plants			424,609				324,609
		Funds for developing small and medium enterprises			10,000				10,000
				W	1,319,118				1,288,589

7. Cash and Cash Equivalents

Cash and cash equivalents as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Cash		W	28,613				19,623
Other demand deposits			1,952,339				1,825,751
Short-term deposits classified as cash equivalents			842,123				407,921
Short-term investments classified as cash equivalents			267,677				381,943
		W	3,090,752				2,635,238

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	7,299,222				(194,674	)			—				7,104,548
Other receivables			956,173				(21,770	)			(1,349	)			933,054
			8,255,395				(216,444	)			(1,349	)			8,037,602
Non-current assets
Trade receivables			201,123				(1,290	)			—				199,833
Other receivables			2,112,866				(69,796	)			(8,988	)			2,034,082
			2,313,989				(71,086	)			(8,988	)			2,233,915
		W	10,569,384				(287,530	)			(10,337	)			10,271,517

In millions of won		December 31, 2021
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Trade receivables		W	7,743,735				(203,838	)			—				7,539,897
Other receivables			602,113				(18,555	)			(1,040	)			582,518
			8,345,848				(222,393	)			(1,040	)			8,122,415
Non-current assets
Trade receivables			185,512				(1,501	)			—				184,011
Other receivables			1,792,895				(64,155	)			(5,890	)			1,722,850
			1,978,407				(65,656	)			(5,890	)			1,906,861
		W	10,324,255				(288,049	)			(6,930	)			10,029,276

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	572,863				(20,227	)			(9	)			552,627
Accrued income			20,760				—				—				20,760
Deposits			243,336				—				(1,340	)			241,996
Finance lease receivables (*1)			69,152				(249	)			—				68,903
Others			50,062				(1,294	)			—				48,768
			956,173				(21,770	)			(1,349	)			933,054
Non-current assets
Non-trade receivables			131,669				(58,484	)			(281	)			72,904
Accrued income			2,351				—				—				2,351
Deposits			472,873				—				(8,707	)			464,166
Finance lease receivables (*2)			1,207,964				(745	)			—				1,207,219
Others			298,009				(10,567	)			—				287,442
			2,112,866				(69,796	)			(8,988	)			2,034,082
		W	3,069,039				(91,566	)			(10,337	)			2,967,136

(*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W119,983 million.

(*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,122,855 million.

In millions of won		December 31, 2021
		Gross amount				Allowance for doubtful accounts				Present value discount				Book value
Current assets
Non-trade receivables		W	232,172				(17,084	)			(9	)			215,079
Accrued income			57,300				—				—				57,300
Deposits			212,666				—				(1,031	)			211,635
Finance lease receivables (*1)			60,613				(178	)			—				60,435
Others			39,362				(1,293	)			—				38,069
			602,113				(18,555	)			(1,040	)			582,518
Non-current assets
Non-trade receivables			123,537				(56,407	)			(281	)			66,849
Accrued income			1,828				—				—				1,828
Deposits			441,393				—				(5,609	)			435,784
Finance lease receivables (*2)			1,140,080				(590	)			—				1,139,490
Others			86,057				(7,158	)			—				78,899
			1,792,895				(64,155	)			(5,890	)			1,722,850
		W	2,395,008				(82,710	)			(6,930	)			2,305,368

(*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W111,915 million.

(*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of W1,082,712 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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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Trade receivables: (not overdue)		W	7,162,025				7,603,472
Trade receivables: (impairment reviewed)			338,320				325,775
Less than 60 days			7,592				11,577
60 ~ 90 days			25,497				27,201
90 ~ 120 days			43,979				28,230
120 days ~ 1 year			64,535				51,945
Over 1 year			196,717				206,822
			7,500,345				7,929,247
Less: allowance for doubtful accounts			(195,964	)			(205,339	)
		W	7,304,381				7,723,908

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 other receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Group recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5) Changes in the allowance for doubtful accounts for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Trade receivables				Other receivables				Trade receivables				Other receivables
Beginning balance		W	205,339				82,710				208,990				132,379
Bad debts expense			23,616				5,632				19,039				18,411
Write-off			(7,282	)			(408	)			(21,809	)			(58,762	)
Reversal			(25,543	)			—				(1,071	)			(79	)
Others			(166	)			3,632				190				(9,239	)
Ending balance		W	195,964				91,566				205,339				82,710

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

9. Financial Assets at Fair Value through Profit or Loss

Financial assets at fair value through profit or loss as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate		W	54,450				130,255				629				206,160
Cooperative			—				6,222				—				5,797
Others (*)			1,808,144				194,021				360,204				202,003
			1,862,594				330,498				360,833				413,960
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—				266,838				—				258,071
		W	1,862,594				597,336				360,833				672,031

(*) ‘Others’ include MMT, etc.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

10. Financial Assets at Fair Value through Other Comprehensive Income

(1) Changes in financial assets at fair value through other comprehensive income for six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Acquisition				Disposal				Valuation				Others				Ending balance
Equity securities
Listed		W	273,826				—				—				(13,800	)			6,434				266,460
Unlisted			160,790				6,220				—				(185	)			(2,159	)			164,666
			434,616				6,220				—				(13,985	)			4,275				431,126
Debt securities
Corporate bond			491				—				—				—				—				491
			435,107				6,220				—				(13,985	)			4,275				431,617
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			435,107				6,220				—				(13,985	)			4,275				431,617
In millions of won		December 31, 2021
		Beginning balance				Acquisition				Disposal				Valuation				Others				Ending balance
Equity securities
Listed		W	194,669				1,500				(8,208	)			81,112				4,753				273,826
Unlisted			163,890				8,929				(13	)			(12,335	)			319				160,790
			358,559				10,429				(8,221	)			68,777				5,072				434,616
Debt securities
Corporate bond			—				500				—				—				(9	)			491
			358,559				10,929				(8,221	)			68,777				5,063				435,107
Current financial assets at fair value through other comprehensive income		W	—				—				—				—				—				—
Non-current financial assets at fair value through other comprehensive income			358,559				10,929				(8,221	)			68,777				5,063				435,107

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

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

(2) Financial assets at fair value through other comprehensive income as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				70,526				70,526
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				107				107
SM Korea Line Corp.			180				0.00	%			1				—				—
Namkwang Engineering & Construction Co., Ltd.			121				0.00	%			15				1				1
Bumyang Construction Co., Ltd.			35				0.00	%			2				—				—
ELCOMTEC Co., Ltd.			32,875				0.04	%			217				38				38
PAN Ocean Co., Ltd.			1,492				0.00	%			14				9				9
STX Heavy Industries Co., Ltd.			7,419				0.03	%			107				33				33
Codes Combine Co., Ltd.			291				0.00	%			1				—				—
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				119,571				119,571
Denison Mines Corp.			58,284,000				9.76	%			84,134				74,245				74,245
Fission Uranium Corp.			100,000				0.02	%			41				61				61
SangSangin Industry Co., Ltd.			5,831				0.01	%			38				4				4
Vitzrosys Co., Ltd.			399				0.00	%			2				2				2
EMnI Co., Ltd.			628				0.00	%			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				1,793				1,793
Aone Alform Co., Ltd.			2,672				0.08	%			19				66				66
											324,790				266,460				266,460
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
Set Holding (*2)			1,100,220				2.50	%			229,255				131,038				131,038
SGC Greenpower			580,000				5.00	%			2,900				2,900				2,900
Le Soleil KHNP LLC			137,600				19.00	%			1,376				1,376				1,376
Ihsung CNI Co., Ltd.			127,660				4.30	%			1,500				2,617				2,617
H Robotics Co., Ltd.			903,601				8.05	%			4,000				5,639				5,639
Good Tcells Co., Ltd.			11,364				0.34	%			500				456				456
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				4.72	%			—				—				—
Common Computer Co., Ltd.			3,856				1.87	%			1,000				1,000				1,000
Fine Powerex Co., Ltd.			72,633				4.92	%			1,500				1,500				1,500
Green Radiation Co., Ltd.			1,667				10.00	%			20				20				20
Agencore Co., Ltd.			104,350				5.67	%			1,500				1,200				1,200
Samhong Machinery Co, Ltd.			476,192				19.23	%			5,000				5,000				5,000
Electric Contractors’ Financial Cooperative Co., Ltd.			—				—				38				38				38
Information&Communication Financial Cooperative Co., Ltd.			—				—				15				15				15
Hwan Young Steel Co., Ltd. and others (*3)			—				—				12,487				8,713				8,713
											268,291				164,666				164,666
Debt securities
Aron Flying Ship Co., Ltd. (*1)											500				491				491
										W	593,581				431,617				431,617

(*1) The Group used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2) The Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the six-month period ended June 30, 2022.

(*3) Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 393 companies including Hwan Young Steel Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

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

(2) Financial assets at fair value through other comprehensive income as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won		December 31, 2021
		Shares				Ownership				Acquisition cost				Book value				Fair value
Listed
Korea District Heating Corp.			2,264,068				19.55	%		W	173,201				87,733				87,733
Ssangyong Motor Co., Ltd.			38,568				0.03	%			428				—				—
SM Korea Line Corp.			180				0.00	%			1				—				—
Namkwang Engineering & Construction Co., Ltd.			121				0.00	%			15				1				1
Bumyang Construction Co., Ltd.			35				0.00	%			2				—				—
ELCOMTEC Co., Ltd.			32,875				0.04	%			217				42				42
PAN Ocean Co., Ltd.			1,492				0.00	%			14				8				8
STX Heavy Industries Co., Ltd.			7,419				0.03	%			107				35				35
Codes Combine Co., Ltd.			291				0.00	%			1				1				1
PT Adaro Energy Tbk			480,000,000				1.50	%			65,028				89,747				89,747
Denison Mines Corp.			58,284,000				9.76	%			84,134				94,376				94,376
Fission Uranium Corp.			100,000				0.02	%			41				73				73
SangSangin Industry Co., Ltd.			5,831				0.01	%			38				6				6
Vitzrosys Co., Ltd.			399				0.00	%			2				2				2
EMnI Co., Ltd.			628				0.00	%			25				2				2
Vissem electronics, Co., Ltd.			229				0.00	%			11				2				2
KC Industry Co., Ltd.			139				0.00	%			6				1				1
Ihsung CNI Co., Ltd.			142,860				4.81	%			1,500				1,779				1,779
Aone Alform Co., Ltd.			2,672				0.08	%			19				18				18
											324,790				273,826				273,826
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
Set Holding (*2)			1,100,220				2.50	%			229,255				131,036				131,036
PT. Cirebon Energi Prasarana			22,420				10.00	%			2,612				2,658				2,658
SGC Greenpower			580,000				5.00	%			2,900				2,900				2,900
Le Soleil KHNP LLC			137,600				19.00	%			1,376				1,376				1,376
Ihsung CNI Co., Ltd.			127,660				4.30	%			1,500				2,618				2,618
H Robotics Co., Ltd.			903,601				8.05	%			4,000				5,639				5,639
Good Tcells Co., Ltd.			11,364				0.34	%			500				457				457
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				4.72	%			—				—				—
Common Computer Co., Ltd.			3,856				1.87	%			1,000				1,000				1,000
Fine Powerex Co., Ltd.			72,633				4.92	%			1,500				1,500				1,500
Electric Contractors’ Financial Cooperative Co., Ltd.			—				—				38				38				38
Information&Communication Financial Cooperative Co., Ltd.			—				—				15				15				15
Hwan Young Steel Co., Ltd. and others (*3)			—				—				12,008				8,399				8,399
											263,904				160,790				160,790
Debt securities
Aron Flying Ship Co., Ltd. (*1)											500				491				491
										W	589,194				435,107				435,107

(*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, 2021.

(*3) Equity securities, acquired through debt-for-equity swaps of electricity rate bonds and others, consist of 372 companies including Hwan Young Steel Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

11. Financial Assets at Amortized Cost

Financial assets at amortized cost as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,928				—				—				—				1,928
Others			35,050				—				—				—				35,050
		W	36,978				—				—				—				36,978
Current		W	26,865				—				—				—				26,865
Non-current			10,113				—				—				—				10,113

In millions of won		December 31, 2021
		Financial assets at amortized cost				Government grants				Allowance for doubtful accounts				Others				Book value
Government bonds		W	1,308				—				—				—				1,308
Others			23,965				—				—				—				23,965
		W	25,273				—				—				—				25,273
Current		W	15,422				—				—				—				15,422
Non-current			9,851				—				—				—				9,851

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

12. Derivatives

(1) Derivatives as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Derivative assets
Currency forward		W	14,000				17,278				559				6,899
Currency swap			262,762				998,658				125,877				506,957
Interest rate swap			—				81,106				502				6,980
Others			—				9				—				9
		W	276,762				1,097,051				126,938				520,845
Derivative liabilities
Currency forward		W	837				—				301				—
Currency swap			5,109				21,549				4,446				16,708
Interest rate swap			3				13,704				2,544				28,138
Others (*1,2,3)			14,440				11,547				—				25,894
		W	20,389				46,800				7,291				70,740

(*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

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of June 30, 2022 are as follows:

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

										Contract amounts								Contract
Counterparty		Contract date				Maturity date				Pay				Receive				exchange rate (in won)
JP Morgan			2022.06.08				2022.07.05			W	65,883			EUR	48,985			W	1,344.97
Deutsche Bank			2022.05.30				2022.07.05				53,884			EUR	40,000				1,347.10
Hana Bank			2022.06.02				2022.08.12				46,144			USD	36,875				1,251.34
JP Morgan			2022.06.24				2022.07.20				25,963			USD	20,000				1,298.15
JP Morgan			2022.06.28				2022.08.03				25,654			USD	20,000				1,282.70
Kookmin Bank			2022.06.17				2022.07.14				12,873			USD	10,000				1,287.28
Kookmin Bank			2022.06.27				2022.07.27				19,373			USD	15,000				1,291.50
Korea Development Bank			2022.06.17				2022.07.13				12,900			USD	10,000				1,290.00
Korea Development Bank			2022.06.27				2022.07.26				19,403			USD	15,000				1,293.50
Mizuho Bank			2022.06.24				2022.07.21				25,966			USD	20,000				1,298.30
Mizuho Bank			2022.06.28				2022.08.04				25,676			USD	20,000				1,283.80
Morgan Stanley			2022.06.24				2022.07.22				25,966			USD	20,000				1,298.30
Morgan Stanley			2022.06.30				2022.08.05				25,964			USD	20,000				1,298.20
Nonghyup Bank			2022.06.24				2022.07.18				25,976			USD	20,000				1,298.78
Nonghyup Bank			2022.06.27				2022.07.29				25,716			USD	20,000				1,285.80
Standard Chartered			2022.06.24				2022.07.19				19,496			USD	15,000				1,299.70
Standard Chartered			2022.06.28				2022.08.01				25,702			USD	20,000				1,285.10
Busan Bank			2022.06.24				2022.07.25				25,950			USD	20,000				1,297.50
Woori Bank			2022.06.28				2022.08.02				25,709			USD	20,000				1,285.45
Hana Bank			2022.06.17				2022.07.15				12,860			USD	10,000				1,286.01
Hana Bank			2022.06.27				2022.07.28				25,777			USD	20,000				1,288.87
MUFG			2022.06.08				2022.07.05				40,805			USD	32,500				1,255.55
Korea Development Bank			2022.06.09				2022.07.05				21,381			USD	17,000				1,257.68
MUFG			2022.06.10				2022.07.13				63,295			USD	50,000				1,265.90
MUFG			2022.06.13				2022.07.22				41,780			USD	32,500				1,285.55
MUFG			2022.06.15				2022.07.26				64,528			USD	50,000				1,290.56
Korea Development Bank			2022.06.15				2022.07.05				3,873			USD	3,000				1,291.05
JP Morgan			2022.06.16				2022.07.22				38,510			USD	30,000				1,283.67
MUFG			2022.06.27				2022.07.14				17,961			USD	14,000				1,282.90
MUFG			2022.06.28				2022.07.05				11,548			USD	9,000				1,283.10
Korea Development Bank			2022.06.29				2022.07.13				18,101			USD	14,000				1,292.90
JP Morgan			2022.06.30				2022.07.22				14,297			USD	11,000				1,299.70
Mizuho Bank			2022.05.30				2022.07.04				12,413			USD	10,000				1,241.32
Woori Bank			2022.05.31				2022.07.20				9,891			USD	8,000				1,236.35
JP Morgan			2022.06.27				2022.07.29				12,872			USD	10,000				1,287.20
MUFG			2022.06.27				2022.07.28				12,843			USD	10,000				1,284.30
Nonghyup Bank			2022.06.27				2022.07.04				12,819			USD	10,000				1,281.90
Busan Bank			2022.05.30				2022.11.08				12,393			USD	10,000				1,239.30

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of June 30, 2022 are as follows, continued:

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

										Contract amounts								Contract
Counterparty		Contract date				Maturity date				Pay				Receive				exchange rate (in won)
Busan Bank			2022.06.24				2022.07.22			W	25,977			USD	20,000			W	1,298.85
Busan Bank			2022.06.24				2022.07.22				25,923			USD	20,000				1,296.15
Busan Bank			2022.06.27				2022.07.13				38,484			USD	30,000				1,282.80
Busan Bank			2022.06.29				2022.07.13				13,559			USD	10,567				1,283.10
Nonghyup Bank			2022.06.27				2022.07.13				12,827			USD	10,000				1,282.65
Shinhan Bank			2022.06.27				2022.07.13				12,828			USD	10,000				1,282.77
JP Morgan			2022.06.23				2022.07.13				6,497			USD	5,000				1,299.35
JP Morgan			2022.06.23				2022.07.22				25,899			USD	20,000				1,294.95
HSBC			2020.10.19				2024.10.29				140,913			USD	125,000				1,127.30
Standard Chartered			2022.05.17				2022.07.08				4,540			USD	3,563				1,274.10
Shinhan Bank			2022.05.23				2022.07.15				19,009			USD	15,023				1,265.30
Hana Bank			2022.05.23				2022.07.15				12,662			USD	10,000				1,266.17
Busan Bank			2022.05.23				2022.07.15				12,647			USD	10,000				1,264.70
Standard Chartered			2022.05.25				2022.07.15				12,625			USD	10,000				1,262.45
Standard Chartered			2022.06.03				2022.07.22				10,736			USD	8,643				1,242.18
MUFG			2022.06.03				2022.07.22				18,594			USD	15,000				1,239.60
Hana Bank			2022.06.07				2022.07.29				14,416			USD	11,471				1,256.75
Standard Chartered			2022.06.09				2022.07.29				12,581			USD	10,000				1,258.10
Standard Chartered			2022.06.24				2022.07.29				12,973			USD	10,000				1,297.30
Standard Chartered			2022.06.27				2022.08.19				25,784			USD	20,000				1,289.20
Shinhan Bank			2022.06.27				2022.08.19				25,663			USD	20,000				1,283.15
Woori Bank			2022.06.30				2022.08.26				25,970			USD	20,000				1,298.50
HSBC			2022.06.30				2022.08.26				12,888			USD	10,000				1,288.80
Hana Bank			2022.03.08				2022.10.07				2,023			EUR	1,493				1,355.60
Hana Bank			2022.03.08				2022.09.30				2,022			EUR	1,493				1,355.00
Hana Bank			2022.03.08				2022.09.29				342			EUR	253				1,355.00
Hana Bank			2022.03.08				2022.07.20				301			EUR	223				1,351.40
Hana Bank			2022.06.16				2022.09.01				4,026			EUR	2,985				1,348.60

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of June 30, 2022 are as follows:

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

				Contract amount								Contract interest rate				Contract
Counterparty		Contract year		Pay				Receive				Pay		Receive		exchange rate (in won, USD)
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
Hana Bank		2022~2025			385,800				USD 300,000			3.11%		3.63%			1,286.00
Woori Bank		2022~2025			257,200				USD 200,000			3.12%		3.63%			1,286.00
JP Morgan		2022~2027			128,600				USD 100,000			3.56%		4.00%			1,286.00
Woori Bank		2022~2027			128,600				USD 100,000			3.56%		4.00%			1,286.00
Kookmin Bank		2022~2027			128,600				USD 100,000			3.56%		4.00%			1,286.00
Citibank		2012~2022			112,930				USD 100,000			2.79%		3.00%			1,129.30
JP Morgan		2012~2022			112,930				USD 100,000			2.79%		3.00%			1,129.30
Bank of America		2012~2022			112,930				USD 100,000			2.79%		3.00%			1,129.30
Shinhan Bank		2016~2022			112,930				USD 100,000			2.79%		3.00%			1,129.30
HSBC		2012~2022			111,770				USD 100,000			2.89%		3.00%			1,117.70
Hana Bank		2012~2022			111,770				USD 100,000			2.87%		3.00%			1,117.70
Standard Chartered		2012~2022			111,770				USD 100,000			2.89%		3.00%			1,117.70
Deutsche Bank		2012~2022			55,885				USD 50,000			2.79%		3.00%			1,117.70
Nomura		2015~2025			111,190				USD 100,000			2.60%		3.25%			1,111.90
Korea Development Bank		2015~2025			111,190				USD 100,000			2.62%		3.25%			1,111.90
Woori Bank		2015~2025			55,595				USD 50,000			2.62%		3.25%			1,111.90
Hana Bank		2015~2025			55,595				USD 50,000			2.62%		3.25%			1,111.90
Woori Bank		2017~2027			111,610				USD 100,000			2.25%		3.13%			1,116.10
Korea Development Bank		2017~2027			111,610				USD 100,000			2.31%		3.13%			1,116.10
Hana Bank		2017~2027			111,610				USD 100,000			2.31%		3.13%			1,116.10
Korea Development Bank		2018~2028			108,600				HKD 800,000			2.69%		3.35%			135.75
Shinhan Bank		2018~2028			115,387				HKD 850,000			2.66%		3.35%			135.75
Korea Development Bank		2018~2023			170,280				USD 150,000			2.15%		3.75%			1,135.20
Woori Bank		2018~2023			170,280				USD 150,000			2.18%		3.75%			1,135.20
Hana Bank		2018~2023			113,520				USD 100,000			2.17%		3.75%			1,135.20
Shinhan Bank		2018~2023			227,040				USD 200,000			2.17%		3.75%			1,135.20
Citibank		2019~2024			239,956				CHF 200,000			1.44%		0.00%			1,199.78
Korea Development Bank		2019~2027			119,978				CHF 100,000			1.43%		0.05%			1,199.78
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

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of June 30, 2022 are as follows:

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

						Contract amount								Contract interest rate				Contract
Counterparty		Contract year				Pay				Receive				Pay		Receive		exchange rate (in won)
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
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			2022~2027				123,710				USD 100,000			3.41%		3.63%			1,237.10
Woori Bank			2022~2027				123,710				USD 100,000			3.41%		3.63%			1,237.10
JP Morgan			2022~2027				123,710				USD 100,000			3.41%		3.63%			1,237.10
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
Korea Development Bank			2022~2025				128,560				USD 100,000			3.37%		4.13%			1,285.60
Woori Bank			2022~2025				128,560				USD 100,000			3.37%		4.13%			1,285.60
Kookmin Bank			2022~2025				128,560				USD 100,000			3.37%		4.13%			1,285.60
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
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
JP Morgan			2022~2025				126,180				USD 100,000			2.80%		3.60%			1,261.80
Hana Bank			2022~2025				126,180				USD 100,000			2.80%		3.60%			1,261.80
Korea Development Bank			2022~2025				252,360				USD 200,000			2.83%		3.60%			1,261.80
Woori Bank			2022~2025				126,180				USD 100,000			2.85%		3.60%			1,261.80

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of June 30, 2022 are as follows:

In millions of won
Counterparty		Contract year						Contract interest rate per annum
				Contract         amount				Pay		Receive
Hana Bank		2017~2022		W	100,000			2.06%		3M CD + 0.27%
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%
Shinhan Bank		2021~2025			100,000			2.32%		3M CD + 0.43%
Hana Bank		2022~2027			200,000			3.02%		3M CD + 0.61%
Hana Bank		2022~2027			200,000			3.04%		3M CD + 0.58%
Hana Bank		2022~2027			250,000			3.38%		3M CD + 0.59%
Nomura		2022~2027			200,000			3.55%		3M CD + 0.60%
Shinhan Bank		2022~2027			150,000			3.53%		3M CD + 0.55%
Hana Bank		2022~2027			200,000			3.70%		3M CD + 0.59%
Nomura		2022~2027			300,000			3.89%		3M CD + 0.67%
Hana Bank		2022~2027			200,000			3.93%		3M CD + 0.67%
Nomura		2022~2027			200,000			3.80%		3M CD + 0.68%
Nomura		2022~2027			300,000			4.04%		3M CD + 0.60%
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 June 30, 2022 are as follows:

In thousands of USD
Counterparty		Contract year						Contract interest rate per annum
				Contract         amount				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	56,182			4.16%		6M USD Libor
KFW		2009~2027		USD	56,182			4.16%		6M USD Libor
Export-Import Bank of Korea		2016~2036		USD	68,470			3.00%		6M USD Libor

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

12. Derivatives, Continued

(7) Gain and loss on valuation and transaction of derivatives for the three and six-month periods ended June 30, 2022 and 2021 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):

In millions of won		Net income effects of valuation gain (loss)																Net income effects of transaction gain (loss)																Accumulated other comprehensive income (loss) (*)
		June 30, 2022								June 30, 2021								June 30, 2022								June 30, 2021								June 30, 2022								June 30, 2021
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
Currency forward		W	27,131				22,518				(684	)			28,406				23,741				32,110				(40	)			7,632				—				—				—				—
Currency swap			606,227				710,162				44,690				320,236				61,278				79,596				7,293				27,237				39,845				(43,069	)			78,687				55,085
Interest rate swap			54,800				75,055				5,681				14,503				(5,390	)			(7,262	)			(3,389	)			(6,842	)			5,622				16,443				(3,060	)			6,586
		W	688,158				807,735				49,687				363,145				79,629				104,444				3,864				28,027				45,467				(26,626	)			75,627				61,671

(*) For the six-month periods ended June 30, 2022 and 2021, the net gain (loss) on valuation of derivatives applying cash flow hedge accounting of W(7,446) and W36,858 million, net of tax, are included in other comprehensive income (loss), repectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

13. Other Financial Assets

(1) Other financial assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Loans		W	85,386				983,267				88,406				903,397
Less: Allowance for doubtful accounts			(28	)			(52,645	)			(10	)			(52,667	)
Less: Present value discount			(819	)			(29,751	)			(807	)			(29,248	)
			84,539				900,871				87,589				821,482
Long-term / short-term financial instruments			643,188				592,555				1,278,014				450,494
		W	727,727				1,493,426				1,365,603				1,271,976

(2) Loans as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Face value				Allowance for doubtful accounts				Present value discount				Carrying value
Short-term loans
Loans for tuition		W	30,856				—				(819	)			30,037
Loans for housing			28,232				—				—				28,232
Other loans			26,298				(28	)			—				26,270
			85,386				(28	)			(819	)			84,539
Long-term loans
Loans for tuition			432,513				(37,783	)			(29,751	)			364,979
Loans for housing			298,270				—				—				298,270
Loans for related parties			216,778				(14,862	)			—				201,916
Other loans			35,706				—				—				35,706
			983,267				(52,645	)			(29,751	)			900,871
		W	1,068,653				(52,673	)			(30,570	)			985,410

In millions of won		December 31, 2021
		Face value				Allowance for doubtful accounts				Present value discount				Carrying value
Short-term loans
Loans for tuition		W	28,975				—				(807	)			28,168
Loans for housing			25,750				—				—				25,750
Other loans			33,681				(10	)			—				33,671
			88,406				(10	)			(807	)			87,589
Long-term loans
Loans for tuition			431,002				(37,783	)			(29,248	)			363,971
Loans for housing			282,833				—				—				282,833
Loans for related parties			150,541				(14,861	)			—				135,680
Fisheries loan			203				—				—				203
Other loans			38,818				(23	)			—				38,795
			903,397				(52,667	)			(29,248	)			821,482
		W	991,803				(52,677	)			(30,055	)			909,071

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	52,677				20,267
Bad debts expense			—				30,942
Others			(4	)			1,468
Ending balance		W	52,673				52,677

(4) Long-term and short-term financial instruments as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Time deposits		W	416,429				119,989				976,899				103,607
Others			226,759				472,566				301,115				346,887
		W	643,188				592,555				1,278,014				450,494

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

14. Inventories

Inventories as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	4,259,729				(1,247	)			4,258,482
Merchandises			4,332				—				4,332
Work-in-progress			161,402				—				161,402
Finished goods			66,156				—				66,156
Supplies			2,682,712				(11,419	)			2,671,293
Inventories-in-transit			2,290,098				—				2,290,098
Other inventories			14,350				—				14,350
		W	9,478,779				(12,666	)			9,466,113
In millions of won		December 31, 2021
		Acquisition cost				Valuation allowance				Book value
Raw materials		W	3,655,588				(1,247	)			3,654,341
Merchandises			512				—				512
Work-in-progress			180,220				—				180,220
Finished goods			27,254				—				27,254
Supplies			2,541,028				(3,869	)			2,537,159
Inventories-in-transit			1,195,148				—				1,195,148
Other inventories			13,548				—				13,548
		W	7,613,298				(5,116	)			7,608,182

The loss on inventory valuation due to decrease in the net realizable value of inventories included in cost of sales for the six-month period ended June 30, 2022 was W480 million and the reversal of the allowance for loss on inventory valuation deducted from cost of sales for the year ended December 31, 2021 was W11,422 million.

The amounts of loss from inventory valuation included in other gains or losses for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 were W8,030 million and W7,761 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

15. Non-Financial Assets

Non-financial assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Advanced payments		W	200,240				54,771				161,466				124,305
Prepaid expenses			660,654				155,611				756,729				151,095
Others (*)			1,421,357				95,724				840,796				89,418
		W	2,282,251				306,106				1,758,991				364,818

(*) Details of others as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Greenhouse gas emissions rights		W	418,428				—				524,658				—
Other quick assets			1,002,929				95,724				316,138				89,418
		W	1,421,357				95,724				840,796				89,418

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of June 30, 2022 and December 31, 2021 are as follows:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						June 30, 2022				December 31, 2021
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	%
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	%
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	%
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

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of June 30, 2022 and December 31, 2021 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						June 30, 2022				December 31, 2021
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. (*5)		Operation of utility plant		Korea			50.00	%			50.00	%
Chitose Solar Power Plant LLC		Power generation		Japan			65.00	%			65.00	%
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	%
KEPCO Mangilao Holdings LLC		Holding company		USA			100.00	%			100.00	%
Mangilao Investment LLC		Holding company		USA			79.47	%			100.00	%
KEPCO Mangilao Solar, LLC		Power generation		USA			100.00	%			100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.		Power generation		Korea			79.03	%			79.03	%
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 and service		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 and service		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

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of June 30, 2022 and December 31, 2021 are as follows, continued:

Subsidiaries		Key operation activities		Location		Percentage of ownership (%)
						June 30, 2022				December 31, 2021
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	%			100.00	%
Yeong Yang Apollon Photovoltaic Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
Yeong Yang Corporation Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
SolarVader Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
Yeong Yang Innovation Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
Yeong Yang Horus Photovoltaic Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
Yeong Yang Solar Management Co., Ltd.		Power generation		Korea			100.00	%			100.00	%
LSG Hydro Power Limited		Holding company		Pakistan			99.80	%			99.80	%
KOEN Bio Co., Ltd.		Wood pellet utilization business		Korea			70.00	%			70.00	%
KOMIPO Energy Solution America, LLC		Holding company		USA			100.00	%			100.00	%
Elara Investment Holdings, LLC (*7)		Holding company		USA			0.10	%			0.10	%
Elara Equity Holdings, LLC		Holding company		USA			54.00	%			54.00	%
Elara Class B Holdings, LLC		Holding company		USA			100.00	%			100.00	%
Elara Class B Member, LLC		Holding company		USA			100.00	%			100.00	%
Elara Development Holdings, LLC		Holding company		USA			100.00	%			100.00	%
KOMIPO Development, LLC (formerly, Elara Development, LLC)		Holding company		USA			100.00	%			100.00	%
Elara Energy Holdings, LLC (*7)		Holding company		USA			43.94	%			43.94	%
Elara Energy Project, LLC		Power generation		USA			100.00	%			100.00	%
KOMIPO Iberian Solar Group, S.L.U.		Holding company		Spain			100.00	%			100.00	%
Jeongam Wind Power Co., Ltd.		Power generation		Korea			80.00	%			80.00	%
KOWEPO Europe B.V.		Holding company		Netherlands			100.00	%			100.00	%
CVS Equity Holdings, LLC		Holding company		USA			100.00	%			100.00	%
CVS Class B Holdings, LLC		Holding company		USA			100.00	%			100.00	%
CVS Development Holdings, LLC		Holding company		USA			100.00	%			100.00	%
CVS Development, LLC		Holding company		USA			100.00	%			100.00	%
CVS Class B Member, LLC		Holding company		USA			100.00	%			100.00	%
CVS Energy Holdings, LLC		Holding company		USA			100.00	%			100.00	%
Concho Valley Energy, LLC		Holding company		USA			100.00	%			100.00	%
Concho Valley Solar, LLC		Power generation		USA			100.00	%			100.00	%
Yeongdeok Sunrise Wind Power Co., Ltd.		Power generation		Korea			70.00	%			70.00	%
KHNP Spain, S.L.		Holding company		Spain			100.00	%			100.00	%
UI Carbon-Neutrality Fund		Holding company		Korea			78.97	%			—
KA Power Limited		Power generation		Pakistan			100.00	%			—
Seobusambo highway photovoltaics Co., Ltd.		Power generation		Korea			80.00	%			—
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)		Power generation		Korea			100.00	%			—

(*1) Considering treasury stocks, the effective percentage of ownership is 66.08%. The Group is planning to sell part of its shares (14.77%) based on the resolution of the board of directors on June 24, 2022.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of June 30, 2022 and December 31, 2021 are as follows, continued:

(*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 under the shareholders’ agreement.

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

(*4) The Group guarantees a certain return on investment related to Commerce and Industry Energy Co., Ltd. for the financial investors. The financial investors have a right to sell their shares to the Group which can be exercised 84 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability.

(*5) The subsidiary is included in the consolidated financial statements as the Group owns 50%+1 stake and has the ability to appoint a majority of the board members under the shareholders’ agreement.

(*6) As of the end of the reporting period, the Company does not have a shareholding; however, this subsidiary is included in the consolidated financial statements as the Company 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 board of directors under the shareholders’ agreement.

(2) Subsidiaries included in and excluded from consolidation during the six-month period ended June 30, 2022 are as follows:

<Subsidiaries included in the consolidation scope during the six-month period ended June 30, 2022>

Subsidiaries		Reason
UI Carbon-Neutrality Fund		Newly established
KA Power Limited		Newly established
Seobusambo highway photovoltaics Co., Ltd.		Newly established
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)		Change in the scope of consolidation

Subsidiaries excluded from consolidation during the six-month period ended June 30, 2022.

Subsidiaries		Reason
EWPRC Biomass Holdings, LLC		Liquidation
KEPCO Solar of Alamosa LLC		Disposal

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won
June 30, 2022
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for  the period
Korea Hydro & Nuclear Power Co., Ltd.		W	65,273,239				38,895,968				5,030,222				146,022
Korea South-East Power Co., Ltd.			11,821,498				6,463,628				3,891,015				(105,874	)
Korea Midland Power Co., Ltd.			14,569,513				10,418,433				3,581,212				(127,755	)
Korea Western Power Co., Ltd.			11,994,765				7,919,531				3,165,901				(97,133	)
Korea Southern Power Co., Ltd.			12,487,293				7,774,496				4,122,703				(4,559	)
Korea East-West Power Co., Ltd.			10,886,351				5,575,998				3,086,367				93,709
KEPCO Engineering & Construction Company, Inc.			739,826				220,134				202,943				3,457
KEPCO Plant Service & Engineering Co., Ltd.			1,456,343				329,461				687,212				44,259
KEPCO Nuclear Fuel Co., Ltd.			916,914				481,869				116,571				13,740
KEPCO KDN Co., Ltd.			674,785				150,269				335,514				14,130
KEPCO International HongKong Ltd.			141,937				—				—				1,225
KEPCO International Philippines Inc.			123,800				424				—				2,992
KEPCO Gansu International Ltd.			7,495				609				—				(5	)
KEPCO Philippines Holdings Inc.			187,659				38				—				13,677
KEPCO Philippines Corporation			6,205				9				—				25
KEPCO Ilijan Corporation			271,651				21,317				22,201				18,466
KEPCO Lebanon SARL			1,959				10,691				—				51
KEPCO Neimenggu International Ltd.			264,286				3,450				—				1,016
KEPCO Shanxi International Ltd.			611,555				222,778				—				(5,303	)
KOMIPO Global Pte Ltd.			364,954				1,266				—				31,176
KEPCO Netherlands B.V.			147,290				278				—				8,269
KEPCO Australia Pty., Ltd.			550				12				—				52
KOSEP Australia Pty., Ltd.			63,332				11,832				24,922				12,452
KOMIPO Australia Pty., Ltd.			73,946				12,196				24,922				11,476
KOWEPO Australia Pty., Ltd.			72,211				9,780				24,922				10,880
KOSPO Australia Pty., Ltd.			62,455				9,788				24,922				12,810
KEPCO Middle East Holding Company			114,902				100,286				—				(946	)
Qatrana Electric Power Company			519,327				271,357				11,883				9,799
KHNP Canada Energy Ltd.			93,048				29				—				8
KEPCO Bylong Australia Pty., Ltd.			45,684				439,769				—				(31,490	)
Korea Waterbury Uranium Limited Partnership			20,939				212				—				(55	)
KEPCO Holdings de Mexico			1,059				1,342				—				(395	)
KST Electric Power Company, S.A.P.I. de C.V.			653,693				478,123				114,004				11,587
KEPCO Energy Service Company			1,771				445				2,829				(191	)
KEPCO Netherlands S3 B.V.			57,607				82				—				1,931
PT. KOMIPO Pembangkitan Jawa Bali			19,015				4,720				12,531				4,398
PT. Cirebon Power Service			3,489				1,248				4,515				147
KOWEPO International Corporation			—				11				—				—
KOSPO Jordan LLC			40,926				19,841				7,138				2,285
EWP America Inc. (*1)			54,379				3,504				7,853				1,425
KNF Canada Energy Limited			2,263				24				—				(24	)
EWP Barbados 1 SRL			400,337				2,074				1,541				12,821
Gyeonggi Green Energy Co., Ltd.			228,458				216,121				52,259				(7,528	)
PT. Tanggamus Electric Power			233,708				172,785				5,320				4,373
Gyeongju Wind Power Co., Ltd.			96,532				58,141				12,423				5,160
KOMIPO America Inc. (*2)			595,794				298,754				5,765				(12,042	)
PT. EWP Indonesia			94,963				1,332				—				2,402
KEPCO Netherlands J3 B.V.			137,993				109				—				(43	)
Korea Offshore Wind Power Co., Ltd.			372,115				192,907				27,125				8,177
Global One Pioneer B.V.			174				103				—				22
Global Energy Pioneer B.V.			363				89				—				36
Mira Power Limited			444,985				329,697				27,093				8,133
KOSEP Material Co., Ltd.			3,712				632				2,256				448
Commerce and Industry Energy Co., Ltd.			81,721				34,252				13,121				(2,303	)
KEPCO KPS Philippines Corp.			5,078				632				2,200				541
KOSPO Chile SpA			156,514				64,101				—				(1,593	)

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
June 30, 2022
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for  the period
PT. KOWEPO Sumsel Operation And Maintenance Services		W	121				271				—				—
Hee Mang Sunlight Power Co., Ltd.			5,810				2,717				404				126
Fujeij Wind Power Company			221,424				170,138				—				9,604
KOSPO Youngnam Power Co., Ltd.			386,735				284,988				205,936				765
Chitose Solar Power Plant LLC			108,664				94,088				7,130				681
KEPCO Energy Solution Co., Ltd.			314,504				2,492				18,505				982
KEPCO Solar Co., Ltd.			237,309				23,879				12,499				4,934
KOSPO Power Services Ltda.			6,236				3,281				9,735				811
Energy New Industry Specialized Investment Private Investment Trust (*3)			373,083				2,046				—				907
KOEN Bylong Pty., Ltd.			9				109				—				—
KOMIPO Bylong Pty., Ltd.			8				97				—				(7	)
KOWEPO Bylong Pty., Ltd.			8				96				—				(7	)
KOSPO Bylong Pty., Ltd.			75				186				—				—
EWP Bylong Pty., Ltd.			8				56				—				—
KOWEPO Lao International			16,312				42				4,805				6,755
KEPCO US Inc.			1				—				—				(18,305	)
KEPCO Alamosa LLC			262				33				61				(34,937	)
KEPCO Mangilao Holdings LLC			81,322				35,475				—				(4	)
Mangilao Investment LLC			50,083				32				—				—
KEPCO Mangilao Solar, LLC			240,312				188,553				819				(6,633	)
Jeju Hanlim Offshore Wind Co., Ltd.			89,270				15,488				—				(3,834	)
PT. Siborpa Eco Power			12,309				2				—				(22	)
PT. Korea Energy Indonesia			1,644				61				913				(234	)
KOLAT SpA			41,900				13,867				411				149
KEPCO California, LLC			47,388				4,448				284				(256	)
KEPCO Mojave Holdings, LLC			99,801				77,684				—				(2,207	)
Incheon Fuel Cell Co., Ltd.			253,357				229,997				50,284				1,159
KOEN Service Co., Ltd.			8,524				5,822				17,730				739
KOMIPO Service Co., Ltd.			5,245				4,696				16,909				640
KOWEPO Service Co., Ltd.			7,807				6,010				16,771				397
KOSPO Service Co., Ltd.			4,911				4,620				13,334				(478	)
EWP Service Co., Ltd.			4,391				3,553				12,316				170
PT. KOMIPO Energy Indonesia			2,105				153				20				(758	)
KNF partners Co., Ltd.			1,817				856				2,659				129
KOSPO USA Inc.			315,486				438				—				(884	)
Nambu USA LLC			303,277				—				—				402
Tamra Offshore Wind Power Co., Ltd.			136,905				101,187				8,873				1,075
KEPCO MCS Co., Ltd.			100,058				49,037				163,181				9,883
KEPCO FMS Co., Ltd.			7,223				15,011				39,073				(9,399	)
Firstkeepers Co., Ltd.			22,041				19,318				41,755				1,563
Secutec Co., Ltd.			14,551				10,894				34,714				664
SE Green Energy Co., Ltd.			154,762				120,981				23,158				137
KEPCO Mangilao America LLC			2,504				1				—				—
Mangilao Intermediate Holdings LLC			252,394				188,089				—				(2,439	)
KEPCO CSC Co., Ltd.			8,063				7,737				20,535				(969	)
KOAK Power Limited			14,293				975				—				(17	)
KOMIPO Europe B.V.			81,683				140				431				708

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
June 30, 2022
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for  the period
Haenanum Energy Fund		W	7,434				3				—				(29	)
Paju Ecoenergy Co., Ltd.			58,614				2,585				8,613				35
Guam Ukudu Power LLC			120,304				130,700				—				(10,829	)
TS Energy No. 25 Co., Ltd.			311,831				290,682				1,875				754
KPS Partners Co., Ltd.			3,548				2,106				5,974				167
KEPCO E&C Service Co., Ltd.			5,248				2,275				8,034				808
Moha solar Co., Ltd.			34,397				35,489				123				34
Ogiri Solar Power Co., Ltd.			1,035				7				—				(12	)
KHNP USA LLC			1,180				52				532				289
KOMIPO Vanphong Power Service LLC			10,378				1,960				9,782				5,153
Energy Innovation Fund I			34,232				6,400				—				(496	)
KHNP Chile SpA			5,628				4,211				—				—
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,664				1,582				133				(67	)
Yeong Yang Corporation Co., Ltd.			1,641				1,578				125				(90	)
SolarVader Co., Ltd.			1,661				1,582				129				(66	)
Yeong Yang Innovation Co., Ltd.			1,642				1,578				121				(87	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,633				1,575				121				(90	)
Yeong Yang Solar Management Co., Ltd.			1,648				1,589				127				(82	)
LSG Hydro Power Limited			1				10				—				(10	)
KOEN Bio Co., Ltd.			396				243				320				(40	)
KOMIPO Iberian Solar Group, S.L.U.			79,151				66,386				—				(1,601	)
Jeongam Wind Power Co., Ltd.			84,363				71,071				5,423				701
KOWEPO Europe B.V.			40,952				1,656				—				551
Yeongdeok Sunrise Wind Power Co., Ltd.			20,479				2				—				(8	)
KHNP Spain, S.L.			5				2				—				(2	)
KA Power Limited			4,075				—				—				—
Seobusambo highway photovoltaics Co., Ltd.			3,529				912				—				—
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)			49,199				44,721				4,727				(249	)

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

(*2) Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries 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 five other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund X, and UI Carbon-Neutrality Fund.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
December 31, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for the year
Korea Hydro & Nuclear Power Co., Ltd.		W	64,638,690				38,361,337				9,324,391				302,232
Korea South-East Power Co., Ltd.			11,487,325				6,510,826				5,188,856				(58,096	)
Korea Midland Power Co., Ltd.			13,761,908				9,912,907				5,353,915				60,737
Korea Western Power Co., Ltd.			10,822,780				7,116,671				4,970,805				(171,562	)
Korea Southern Power Co., Ltd.			11,350,984				7,099,881				5,671,989				(113,352	)
Korea East-West Power Co., Ltd.			9,895,739				5,163,005				4,743,030				10,872
KEPCO Engineering & Construction Company, Inc.			705,043				191,592				433,127				16,452
KEPCO Plant Service & Engineering Co., Ltd.			1,420,705				311,607				1,375,668				98,132
KEPCO Nuclear Fuel Co., Ltd.			837,249				405,614				323,729				25,799
KEPCO KDN Co., Ltd.			721,634				189,242				673,261				67,244
KEPCO International HongKong Ltd.			128,968				—				—				341
KEPCO International Philippines Inc.			154,317				482				—				8,766
KEPCO Gansu International Ltd.			7,151				559				—				(25	)
KEPCO Philippines Holdings Inc.			191,757				128				—				60,192
KEPCO Philippines Corporation			6,122				19				—				(68	)
KEPCO Ilijan Corporation			259,069				38,555				60,532				12,981
KEPCO Lebanon SARL			1,729				9,794				—				(86	)
KEPCO Neimenggu International Ltd.			241,299				3,106				—				16,762
KEPCO Shanxi International Ltd.			551,407				207,844				—				3,526
KOMIPO Global Pte Ltd.			302,340				1,351				—				11,462
KEPCO Netherlands B.V.			133,610				866				—				5,395
KEPCO Australia Pty., Ltd.			481				11				—				25
KOSEP Australia Pty., Ltd.			44,798				5,561				22,013				8,268
KOMIPO Australia Pty., Ltd.			54,162				5,648				22,013				5,942
KOWEPO Australia Pty., Ltd.			54,564				4,766				22,013				7,387
KOSPO Australia Pty., Ltd.			43,886				4,502				22,013				5,940
KEPCO Middle East Holding Company			104,068				89,756				—				1,144
Qatrana Electric Power Company			480,809				262,725				21,368				19,156
KHNP Canada Energy Ltd.			109,326				25				—				29
KEPCO Bylong Australia Pty., Ltd.			44,319				394,349				—				(37,065	)
Korea Waterbury Uranium Limited Partnership			20,920				159				—				(57	)
KEPCO Holdings de Mexico			148				27				—				(8	)
KST Electric Power Company, S.A.P.I. de C.V.			584,625				435,796				151,467				18,499
KEPCO Energy Service Company			2,500				956				12,070				574
KEPCO Netherlands S3 B.V.			51,045				150				—				3,199
PT. KOMIPO Pembangkitan Jawa Bali			13,499				3,314				18,296				885
PT. Cirebon Power Service			2,545				631				8,664				505
KOWEPO International Corporation			—				10				—				—
KOSPO Jordan LLC			33,782				16,298				9,698				816
EWP America Inc. (*1)			46,687				1,278				18,335				6,807
KNF Canada Energy Limited			2,101				17				—				(43	)
EWP Barbados 1 SRL			354,024				1,172				2,861				16,168
Gyeonggi Green Energy Co., Ltd.			243,977				224,132				93,794				(5,588	)
PT. Tanggamus Electric Power			212,161				167,409				2,903				3,017
Gyeongju Wind Power Co., Ltd.			96,937				60,702				15,289				3,132
KOMIPO America Inc. (*2)			329,986				56,325				1,715				(1,311	)
PT. EWP Indonesia			47,031				1,226				—				4,615
KEPCO Netherlands J3 B.V.			151,478				172				—				27,365
Korea Offshore Wind Power Co., Ltd.			359,393				188,507				36,020				3,820
Global One Pioneer B.V.			119				116				—				(132	)
Global Energy Pioneer B.V.			293				131				—				(147	)
Mira Power Limited			424,183				311,459				70,287				34,018
KOSEP Material Co., Ltd.			3,405				842				4,518				442
Commerce and Industry Energy Co., Ltd.			85,315				35,543				30,531				1,345
KEPCO KPS Philippines Corp.			8,051				3,652				9,768				1,493
KOSPO Chile SpA			142,956				56,688				—				(851	)

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
December 31, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for  the year
PT. KOWEPO Sumsel Operation And Maintenance Services		W	116				259				—				—
Hee Mang Sunlight Power Co., Ltd.			6,242				3,272				499				47
Fujeij Wind Power Company			200,783				169,340				—				14,739
KOSPO Youngnam Power Co., Ltd.			393,745				292,765				318,770				6,339
Chitose Solar Power Plant LLC			125,578				109,470				16,630				1,794
KEPCO Energy Solution Co., Ltd.			317,676				4,938				21,423				3,104
KEPCO Solar Co., Ltd.			231,567				22,229				11,305				2,014
KOSPO Power Services Ltda.			8,007				5,800				21,133				(356	)
Energy New Industry Specialized Investment Private Investment Trust (*3)			336,932				28,536				19,405				11,116
KOEN Bylong Pty., Ltd.			8				86				—				—
KOMIPO Bylong Pty., Ltd.			8				86				—				(8	)
KOWEPO Bylong Pty., Ltd.			8				86				—				(18	)
KOSPO Bylong Pty., Ltd.			73				168				—				(20	)
EWP Bylong Pty., Ltd.			8				54				—				—
KOWEPO Lao International			12,974				70				8,543				5,681
KEPCO US Inc.			17,601				—				—				—
KEPCO Alamosa LLC			34,100				297				124				(62	)
KEPCO Solar of Alamosa LLC			57,104				41,953				8,008				(742	)
KEPCO Mangilao Holdings LLC			28,504				32,501				—				(556	)
Mangilao Investment LLC			43,459				29				—				(14	)
KEPCO Mangilao Solar, LLC			206,018				166,095				—				(865	)
Jeju Hanlim Offshore Wind Co., Ltd.			41,325				5,139				—				(2,893	)
PT. Siborpa Eco Power			11,306				—				—				(105	)
PT. Korea Energy Indonesia			1,917				215				1,681				37
KOLAT SpA			28,349				849				180				(464	)
KEPCO California, LLC			43,732				4,113				1,310				160
KEPCO Mojave Holdings, LLC			95,294				71,358				—				(4,254	)
Incheon Fuel Cell Co., Ltd.			259,111				236,901				46,034				962
KOEN Service Co., Ltd.			8,963				6,557				35,190				2,326
KOMIPO Service Co., Ltd.			4,384				4,475				32,323				(96	)
KOWEPO Service Co., Ltd.			7,289				5,869				31,700				303
KOSPO Service Co., Ltd.			5,762				4,990				26,257				31
EWP Service Co., Ltd.			5,483				5,455				24,957				14
PT. KOMIPO Energy Indonesia			2,996				395				2,077				106
KNF partners Co., Ltd.			1,800				969				5,664				152
KOSPO USA Inc.			286,081				293				—				968
Nambu USA LLC			277,698				—				—				568
Tamra Offshore Wind Power Co., Ltd.			146,736				106,961				21,731				5,168
KEPCO MCS Co., Ltd.			80,277				39,139				349,116				19,043
KEPCO FMS Co., Ltd.			17,188				15,577				94,210				214
Firstkeepers Co., Ltd.			17,152				16,041				77,189				19
Secutec Co., Ltd.			13,176				10,662				65,963				1,774
SE Green Energy Co., Ltd.			153,105				119,461				38,867				4,025
KEPCO Mangilao America LLC			2,173				1				—				—
Mangilao Intermediate Holdings LLC			220,690				205,421				—				(6,975	)
KEPCO CSC Co., Ltd.			8,093				6,799				41,854				(2,101	)
KOAK Power Limited			14,363				393				—				(551	)
KOMIPO Europe B.V.			70,431				97				402				(503	)

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
December 31, 2021
Subsidiaries		Total assets				Total liabilities				Sales				Profit (loss)   for  the year
Haenanum Energy Fund		W	7,463				3				40				(74	)
Paju Ecoenergy Co., Ltd.			57,795				2,118				15,425				2,234
Guam Ukudu Power LLC			30,133				30,438				—				(2,030	)
TS Energy No. 25 Co., Ltd.			353,324				318,977				421				(7,525	)
KPS Partners Co., Ltd.			2,809				1,529				9,520				323
KEPCO E&C Service Co., Ltd.			4,054				1,889				15,985				1,242
Moha solar Co., Ltd.			32,808				33,933				48				(706	)
Ogiri Solar Power Co., Ltd.			1,041				1				—				9
KHNP USA LLC			766				10				1,001				267
KOMIPO Vanphong Power Service LLC			3,758				860				3,853				958
Energy Innovation Fund I			22,616				3,202				—				(888	)
KHNP Chile SpA			5,294				3,879				—				17
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,775				1,632				5				(30	)
Yeong Yang Corporation Co., Ltd.			1,776				1,623				9				(19	)
SolarVader Co., Ltd.			1,772				1,627				—				(26	)
Yeong Yang Innovation Co., Ltd.			1,773				1,622				5				(21	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,771				1,624				9				(24	)
Yeong Yang Solar Management Co., Ltd.			1,774				1,625				—				(23	)
LSG Hydro Power Limited			1				—				—				—
KOEN Bio Co., Ltd.			394				199				51				(305	)
KOMIPO Iberian Solar Group, S.L.U.			70,993				56,707				—				1,354
Jeongam Wind Power Co., Ltd.			86,853				74,267				10,476				1,027
KOWEPO Europe B.V.			39,973				1,449				—				(744	)
Yeongdeok Sunrise Wind Power Co., Ltd.			21,252				768				—				(116	)
KHNP Spain, S.L.			5				—				—				—

(*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. includes that of 17 other subsidiaries 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

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(4) Significant restrictions on abilities to subsidiaries as of June 30, 2022 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 O&M and 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.
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.

(5) As of June 30, 2022, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:

Company		Unrecognized Commitments
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

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(6) Details of non-controlling interests prior to intra-Group eliminations as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won
June 30, 2022
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	267,494				789,257				289,712				1,059,446				2,405,909
Non-current assets			4,157				667,086				450,114				4,241,659				5,363,016
Current liabilities			(18,595	)			(299,793	)			(199,430	)			(892,925	)			(1,410,743	)
Non-current liabilities			(2,722	)			(29,668	)			(20,704	)			(2,608,426	)			(2,661,520	)
Net assets			250,334				1,126,882				519,692				1,799,754				3,696,662
Book value of non-controlling interests			122,664				552,172				176,280				752,232				1,603,348
Sales			22,201				687,212				202,943				714,882				1,627,238
Profit for the period			18,466				44,259				3,457				17,714				83,896
Profit (loss) for the period attributable to non-controlling interests			9,048				21,687				1,173				(3,603	)			28,305
Cash flows from operating activities			70,187				7,287				19,123				313,924				410,521
Cash flows from investing activities			18,647				41,149				(14,556	)			(204,171	)			(158,931	)
Cash flows from financing activities before dividends to non-controlling interests			(1,506	)			(30,317	)			(6,613	)			(69,435	)			(107,871	)
Dividends to non-controlling interests			(1,252	)			(26,438	)			(3,071	)			(2,515	)			(33,276	)
Effect of exchange rate fluctuation			17,568				721				65				5,294				23,648
Net increase (decrease) of cash and cash equivalents			103,644				(7,598	)			(5,052	)			43,097				134,091
In millions of won
December 31, 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	234,224				793,995				253,958				1,030,049				2,312,226
Non-current assets			24,845				626,710				451,085				3,829,243				4,931,883
Current liabilities			(30,783	)			(265,017	)			(183,100	)			(599,373	)			(1,078,273	)
Non-current liabilities			(7,772	)			(46,590	)			(8,492	)			(2,666,345	)			(2,729,199	)
Net assets			220,514				1,109,098				513,451				1,593,574				3,436,637
Book value of non-controlling interests			108,052				543,458				174,163				717,166				1,542,839
Sales			60,532				1,375,668				433,127				1,277,848				3,147,175
Profit for the year			12,981				98,132				16,452				120,488				248,053
Profit for the year attributable to non-controlling interests			6,361				48,085				5,581				25,803				85,830
Cash flows from operating activities			116,440				133,160				(16,270	)			295,532				528,862
Cash flows from investing activities			2,216				(39,444	)			19,061				(301,402	)			(319,569	)
Cash flows from financing activities before dividends to non-controlling interests			(88,927	)			(30,599	)			(8,467	)			125,685				(2,308	)
Dividends to non-controlling interests			—				(25,269	)			(3,639	)			(2,608	)			(31,516	)
Effect of exchange rate fluctuation			10,683				885				38				7,243				18,849
Net increase (decrease) of cash and cash equivalents			40,412				38,733				(9,277	)			124,450				194,318

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

(i) Details of goodwill as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Acquisition cost		W	99,770				105,647
Less: Accumulated impairment			—				—
Carrying book value		W	99,770				105,647

(ii) Changes in goodwill for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning				Increase				Decrease				Ending
Acquisition cost		W	105,647				—				(5,877	)			99,770
Less: Accumulated impairment			—				—				—				—
Carrying book value		W	105,647				—				(5,877	)			99,770
In millions of won		December 31, 2021
		Beginning				Increase				Decrease				Ending
Acquisition cost		W	98,166				7,481				—				105,647
Less: Accumulated impairment			—				—				—				—
Carrying book value		W	98,166				7,481				—				105,647

(8) Disposals of subsidiaries

The Group has completed the liquidation process of EWPRC Biomass Holdings, LLC and has disposed of shares of KEPCO Solar of Alamosa LLC during the six-month period ended June 30, 2022. The Group had completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1, KOSEP USA, Inc., and Korea Imouraren Uranium Investment Corp. and had disposed of shares of DG Fairhaven Power, LLC during the year ended December 31, 2021.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
June 30, 2022
Investees		Key operation activities		Location				Percentage of ownership				Acquisition cost				Book value
<Associates>
Korea Gas Corporation		Importing and wholesaling LNG			Korea				20.47	%		W	94,500				1,974,470
PT. Bayan Resources TBK		Resources development			Indonesia				20.00	%			615,860				672,816
Gemeng International Energy Co., Ltd.		Power generation			China				34.00	%			413,153				569,587
Goseong Green Power Co., Ltd.		Power generation			Korea				29.00	%			262,740				276,767
Korea Power Exchange (*1)		Management of power market and others			Korea				100.00	%			127,839				272,554
Indeck Niles Development, LLC		Power generation			USA				50.00	%			268,113				318,976
GS Donghae Electric Power Co., Ltd.		Power generation			Korea				34.00	%			204,000				251,471
S-Power Co., Ltd.		Power generation			Korea				49.00	%			132,300				133,403
PT. Cirebon Electric Power		Power generation			Indonesia				27.50	%			40,365				125,715
Hyundai Green Power Co., Ltd.		Power generation equipment consignment and operation service			Korea				29.00	%			88,885				118,890
Shin Pyeongtaek Power Co., Ltd.		Power generation			Korea				40.00	%			72,000				113,581
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			Laos				25.00	%			87,426				110,363
Dongducheon Dream Power Co., Ltd. (*2)		Power generation			Korea				33.61	%			148,105				78,474
Nepal Water & Energy Development Company Private Limited (*3)		Construction and operation of utility plant			Nepal				69.06	%			70,228				71,900
SPC Power Corporation		Power generation			Philippines				38.00	%			20,635				65,596
Korea Electric Power Corporation Fund (*4)		Developing electric enterprises			Korea				98.09	%			28,325				34,325
YTN Co., Ltd.		Broadcasting			Korea				21.43	%			59,000				52,056
PT Wampu Electric Power		Power generation			Indonesia				46.00	%			21,292				41,768
PT. Cirebon Energi Prasarana (*5)		Power generation			Indonesia				10.00	%			26,710				59,813
Others (Gwangyang Green Energy Co., Ltd. and 73 others)													300,568				277,416
													3,082,044				5,619,941
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			Jamaica				40.00	%			301,910				333,810
Datang Chifeng Renewable Power Co., Ltd.		Power generation			China				40.00	%			121,928				207,208
Amman Asia Electric Power Company (*6)		Power generation			Jordan				60.00	%			111,476				224,605
KEPCO SPC Power Corporation (*6)		Construction and operation of utility plant			Philippines				75.20	%			94,579				193,292
Rabigh Electricity Company		Power generation			Saudi Arabia				40.00	%			109,743				196,026
PT Barito Wahana Tenaga		Power generation			Indonesia				30.61	%			59,573				122,596
Kelar S.A. (*6)		Power generation			Chile				65.00	%			78,060				94,132
PT. Tanjung Power Indonesia		Power generation			Indonesia				35.00	%			57,039				88,581
RE Holiday Holdings LLC		Power generation			USA				50.00	%			42,948				81,958
Nghi Son 2 Power LLC		Power generation			Vietnam				50.00	%			175,261				335,720
Solar Philippines Calatagan Corporation		Power generation			Philippines				38.00	%			47,903				55,867
OneEnergy Asia Limited		Power generation			Vietnam				40.00	%			93,113				118,427
Shuweihat Asia Power Investment B.V.		Holding company			Netherlands				49.00	%			44,405				60,371
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				53,037
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			China				40.00	%			39,872				48,350
South Jamaica Power Company Limited		Power generation			Jamaica				20.00	%			20,430				42,990
Chile Solar JV SpA		Power generation			Chile				50.00	%			37,689				32,776
Others (Dangjin Eco Power Co., Ltd. and 78 others)													830,753				644,417
													2,294,573				2,934,163
												W	5,376,617				8,554,104

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of June 30, 2022 and December 31, 2021 are as follows, continued:

(*1) 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. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

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

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

(*5) The effective percentage of ownership is less than 20% but the Group exercises significant influence by participating in making major operating and financial decision. Accordingly, the entity is classified as an associate.

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won
December 31, 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				1,815,513
PT. Bayan Resources TBK		Resources development			Indonesia				20.00	%			615,860				661,289
Gemeng International Energy Co., Ltd.		Power generation			China				34.00	%			413,153				595,218
Goseong Green Power Co., Ltd.		Power generation			Korea				29.00	%			262,740				260,858
Korea Power Exchange (*2)		Management of power market and others			Korea				100.00	%			127,839				269,728
Indeck Niles Development, LLC (*3,5)		Power generation			USA				56.25	%			268,113				246,273
GS Donghae Electric Power Co., Ltd.		Power generation			Korea				34.00	%			204,000				243,772
S-Power Co., Ltd.		Power generation			Korea				49.00	%			132,300				122,786
PT. Cirebon Electric Power		Power generation			Indonesia				27.50	%			40,365				121,969
Hyundai Green Power Co., Ltd.		Power generation equipment consignment and operation service			Korea				29.00	%			88,885				121,955
Shin Pyeongtaek Power Co., Ltd.		Power generation			Korea				40.00	%			72,000				93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.		Power generation			Laos				25.00	%			87,426				92,441
Dongducheon Dream Power Co., Ltd. (*4)		Power generation			Korea				33.61	%			148,105				74,198
Nepal Water & Energy Development Company Private Limited (*5)		Construction and operation of utility plant			Nepal				69.06	%			70,228				66,333
SPC Power Corporation		Power generation			Philippines				38.00	%			20,635				65,046
Korea Electric Power Corporation Fund (*6)		Developing electric enterprises			Korea				98.09	%			48,410				47,983
YTN Co., Ltd.		Broadcasting			Korea				21.43	%			59,000				51,828
PT Wampu Electric Power		Power generation			Indonesia				46.00	%			21,292				35,077
Others (Gwangyang Green Energy Co., Ltd. and 71 others)													284,984				247,032
													3,059,835				5,232,373
<Joint ventures>
Jamaica Public Service Company Limited		Power generation			Jamaica				40.00	%			301,910				294,649
Datang Chifeng Renewable Power Co., Ltd.		Power generation			China				40.00	%			121,928				204,587
Amman Asia Electric Power Company (*7)		Power generation			Jordan				60.00	%			111,476				178,679
KEPCO SPC Power Corporation (*7)		Construction and operation of utility plant			Philippines				75.20	%			94,579				198,979
Rabigh Electricity Company		Power generation			Saudi Arabia				40.00	%			109,743				143,678
PT Barito Wahana Tenaga		Power generation			Indonesia				30.61	%			59,535				81,595
Kelar S.A. (*7)		Power generation			Chile				65.00	%			78,060				86,695
PT. Tanjung Power Indonesia		Power generation			Indonesia				35.00	%			26,892				46,546
RE Holiday Holdings LLC		Power generation			USA				50.00	%			42,948				73,167
Nghi Son 2 Power LLC		Power generation			Vietnam				50.00	%			2,781				—
Solar Philippines Calatagan Corporation		Power generation			Philippines				38.00	%			47,903				58,231
OneEnergy Asia Limited		Power generation			Vietnam				40.00	%			76,916				79,700
Shuweihat Asia Power Investment B.V.		Holding company			Netherlands				49.00	%			44,405				37,069
RE Pioneer Holdings LLC		Power generation			USA				50.00	%			27,891				47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		Power generation			China				40.00	%			39,872				44,217
South Jamaica Power Company Limited		Power generation			Jamaica				20.00	%			20,430				37,360
Chile Solar JV SpA		Power generation			Chile				50.00	%			37,689				32,457
Others (Dangjin Eco Power Co., Ltd. and 78 others)													824,533				594,387
													2,069,491				2,239,011
												W	5,129,326				7,471,384

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of June 30, 2022 and December 31, 2021 are as follows, continued:

(*1) Due to changes in equity, the nominal and effective percentage of ownership are 20.47%.

(*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. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

(*3) According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

(*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. Accordingly, 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. Accordingly, 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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won
Investees		June 30, 2022				December 31, 2021
<Associates>
Korea Electric Power Industrial Development Co., Ltd.		W	104,939				115,339
Korea Gas Corporation			747,495				738,990
YTN Co., Ltd.			32,805				26,550
SPC Power Corporation			133,755				203,589
PT. Bayan Resources TBK			4,526,299				1,495,801

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won
June 30, 2022
Investees		Beginning balance				Acquisition				Disposals				Dividends received				Share of income (loss)				Other comprehensive income (loss)				Others				Ending balance
<Associates>
Korea Gas Corporation		W	1,815,513				—				—				(51,559	)			180,240				27,778				2,498				1,974,470
PT. Bayan Resources TBK			661,289				—				—				(246,588	)			225,526				32,620				(31	)			672,816
Gemeng International Energy Co., Ltd.			595,218				—				—				—				(44,509	)			18,878				—				569,587
Goseong Green Power Co., Ltd.			260,858				—				—				—				15,909				—				—				276,767
Korea Power Exchange			269,728				—				—				—				2,977				—				(151	)			272,554
Indeck Niles Development, LLC			246,273				—				—				—				32,954				39,749				—				318,976
GS Donghae Electric Power Co., Ltd.			243,772				—				—				—				7,699				—				—				251,471
S-Power Co., Ltd.			122,786				—				—				—				10,617				—				—				133,403
PT. Cirebon Electric Power			121,969				—				—				(6,103	)			(1,466	)			604				10,711				125,715
Hyundai Green Power Co., Ltd.			121,955				—				—				(4,009	)			938				1,346				(1,340	)			118,890
Shin Pyeongtaek Power Co., Ltd.			93,074				—				—				—				20,491				—				16				113,581
Xe-Pian Xe-Namnoy Power Co., Ltd.			92,441				—				—				—				6,896				11,026				—				110,363
Dongducheon Dream Power Co., Ltd.			74,198				—				—				—				4,260				—				16				78,474
Nepal Water & Energy Development Company Private Limited			66,333				—				—				—				(339	)			5,906				—				71,900
SPC Power Corporation			65,046				—				—				(2,690	)			(138	)			3,380				(2	)			65,596
Korea Electric Power Corporation Fund			47,983				—				(20,085	)			—				6,978				(551	)			—				34,325
YTN Co., Ltd.			51,828				—				—				(450	)			716				(28	)			(10	)			52,056
PT Wampu Electric Power			35,077				—				—				—				1,342				2,008				3,341				41,768
PT. Cirebon Energi Prasarana			—				24,052				—				—				30,223				—				5,538				59,813
Others (Gwangyang Green Energy Co., Ltd. and 73 others)			247,032				15,594				(15	)			(8,839	)			15,808				(1,883	)			9,719				277,416
			5,232,373				39,646				(20,100	)			(320,238	)			517,122				140,833				30,305				5,619,941
<Joint ventures>
Jamaica Public Service Company Limited			294,649				—				—				—				11,889				27,272				—				333,810
Datang Chifeng Renewable Power Co., Ltd.			204,587				—				—				—				(3,428	)			6,049				—				207,208
Amman Asia Electric Power Company			178,679				—				—				—				9,853				36,073				—				224,605
KEPCO SPC Power Corporation			198,979				—				—				(11,491	)			6,545				(741	)			—				193,292
Rabigh Electricity Company			143,678				—				—				(10,935	)			17,724				45,559				—				196,026
PT Barito Wahana Tenaga			81,595				39				—				—				4,229				36,733				—				122,596
Kelar S.A.			86,695				—				—				—				(4,206	)			3,808				7,835				94,132
PT. Tanjung Power Indonesia			46,546				30,147				—				(6,109	)			2,640				15,975				(618	)			88,581
RE Holiday Holdings LLC			73,167				—				—				(1,562	)			(112	)			10,465				—				81,958
Nghi Son 2 Power LLC			—				172,480				—				—				33,458				129,782				—				335,720
Solar Philippines Calatagan Corporation			58,231				—				—				(1,707	)			3,015				(3,672	)			—				55,867
OneEnergy Asia Limited			79,700				16,197				—				—				(27,805	)			50,335				—				118,427
Shuweihat Asia Power Investment B.V.			37,069				—				—				(1,933	)			(1,193	)			26,428				—				60,371
RE Pioneer Holdings LLC			47,015				—				—				(315	)			(880	)			7,217				—				53,037
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			44,217				—				—				(1,164	)			3,583				1,714				—				48,350
South Jamaica Power Company Limited			37,360				—				—				—				2,141				3,489				—				42,990
Chile Solar JV SpA			32,457				—				—				—				94				225				—				32,776
Others (Dangjin Eco Power Co., Ltd. and 79 others)			594,387				21,392				(14,798	)			(7,772	)			34,082				17,094				32				644,417
			2,239,011				240,255				(14,798	)			(42,988	)			91,629				413,805				7,249				2,934,163
		W	7,471,384				279,901				(34,898	)			(363,226	)			608,751				554,638				37,554				8,554,104

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
December 31, 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				—				—				—				209,357				13,017				(54,186	)			1,815,513
PT. Bayan Resources TBK			425,234				—				—				(68,666	)			267,874				36,885				(38	)			661,289
Gemeng International Energy Co., Ltd.			679,708				—				—				(11,886	)			(154,930	)			82,326				—				595,218
Goseong Green Power Co., Ltd.			2,186				259,840				—				—				(1,168	)			—				—				260,858
Korea Power Exchange			269,122				—				—				—				(10	)			—				616				269,728
Indeck Niles Development, LLC			20,627				222,551				—				—				(13,160	)			6,652				9,603				246,273
GS Donghae Electric Power Co., Ltd.			244,426				—				—				(15,640	)			14,972				—				14				243,772
S-Power Co., Ltd.			110,292				—				—				—				12,437				57				—				122,786
PT. Cirebon Electric Power			117,811				—				—				(18,253	)			10,679				1,396				10,336				121,969
Hyundai Green Power Co., Ltd.			132,774				—				—				(8,888	)			(562	)			(1,346	)			(23	)			121,955
Shin Pyeongtaek Power Co., Ltd.			69,591				—				—				—				23,476				—				7				93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.			64,570				—				—				—				19,306				8,565				—				92,441
Dongducheon Dream Power Co., Ltd.			80,637				—				—				—				(6,439	)			—				—				74,198
Nepal Water & Energy Development Company Private Limited			42,677				19,960				—				—				(616	)			4,312				—				66,333
SPC Power Corporation			69,912				—				—				(20,468	)			5,311				10,291				—				65,046
Korea Electric Power Corporation Fund			41,926				—				(3,090	)			—				9,065				82				—				47,983
YTN Co., Ltd.			40,549				—				—				(270	)			11,192				22				335				51,828
PT Wampu Electric Power			27,865				—				—				—				3,196				1,355				2,661				35,077
Others (Gwangyang Green Energy Co., Ltd. and 73 others)			163,555				66,302				(394	)			(4,324	)			7,143				(1,863	)			16,613				247,032
			4,250,787				568,653				(3,484	)			(148,395	)			417,123				161,751				(14,062	)			5,232,373
<Joint ventures>
Jamaica Public Service Company Limited			266,221				—				—				(4,578	)			12,963				23,820				(3,777	)			294,649
Datang Chifeng Renewable Power Co., Ltd.			188,478				—				—				(14,191	)			9,342				20,958				—				204,587
Amman Asia Electric Power Company			161,253				—				—				(27,428	)			18,487				26,367				—				178,679
KEPCO SPC Power Corporation			201,663				—				—				(35,763	)			37,073				(3,994	)			—				198,979
Rabigh Electricity Company			97,157				—				—				(7,221	)			17,896				35,846				—				143,678
PT Barito Wahana Tenaga			63,029				140				—				—				4,194				14,232				—				81,595
Kelar S.A.			71,449				—				—				—				2,121				6,416				6,709				86,695
PT. Tanjung Power Indonesia			33,063				—				—				—				5,027				9,029				(573	)			46,546
RE Holiday Holdings LLC			68,809				—				—				(9,577	)			6,299				7,636				—				73,167
Nghi Son 2 Power LLC			—				—				—				—				—				—				—				—
Solar Philippines Calatagan Corporation			49,017				—				—				(5,961	)			5,961				9,214				—				58,231
OneEnergy Asia Limited			56,654				20,262				—				—				(1,138	)			3,922				—				79,700
Shuweihat Asia Power Investment B.V.			13,264				—				—				(2,467	)			4,564				21,708				—				37,069
RE Pioneer Holdings LLC			49,639				—				—				(14,199	)			5,556				6,019				—				47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			42,530				—				—				(2,884	)			1,562				3,009				—				44,217
South Jamaica Power Company Limited			31,897				—				—				—				2,515				2,949				(1	)			37,360
Chile Solar JV SpA			34,883				—				—				—				831				(3,257	)			—				32,457
Others (Dangjin Eco Power Co., Ltd. and 80 others)			490,740				114,557				(11,710	)			(15,578	)			6,680				6,431				3,267				594,387
			1,919,746				134,959				(11,710	)			(139,847	)			139,933				190,305				5,625				2,239,011
		W	6,170,533				703,612				(15,194	)			(288,242	)			557,056				352,056				(8,437	)			7,471,384

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won
June 30, 2022
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)		W	45,106,351				35,211,506				22,832,411				880,508
PT. Bayan Resources TBK			3,282,611				989,358				2,472,066				1,275,042
Gemeng International Energy Co., Ltd.			8,414,180				6,334,107				1,408,502				(96,080	)
Gosung Green Power Co., Ltd.			5,491,708				4,514,746				912,365				42,978
Korea Power Exchange			361,568				89,014				57,123				2,316
Indeck Niles Development, LLC			1,238,637				793,692				—				1,215
GS Donghae Electric Power Co., Ltd.			2,089,695				1,350,074				517,881				22,644
S-Power Co., Ltd.			864,236				589,235				568,777				21,557
PT. Cirebon Electric Power			678,618				221,472				86,628				(5,618	)
Hyundai Green Power Co., Ltd.			786,776				376,810				49,366				2,101
Shin Pyeongtaek Power Co., Ltd.			1,117,049				803,059				474,767				50,754
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,400,214				954,630				86,884				27,648
Dongducheon Dream Power Co., Ltd.			1,455,016				1,184,248				887,774				11,769
Nepal Water & Energy Development Company Private Limited			203,583				100,883				14,354				(518	)
SPC Power Corporation			248,960				27,015				37,634				10,929
Korea Electric Power Corporation Fund			35,295				306				7,053				6,847
YTN Co., Ltd.			348,944				106,015				72,241				3,181
PT Wampu Electric Power			224,281				133,481				10,323				5,043
PT. Cirebon Energi Prasarana			3,288,487				2,690,357				155,827				34,103
<Joint ventures>
Jamaica Public Service Company Limited			2,368,222				1,567,636				697,161				29,990
Datang Chifeng Renewable Power Co., Ltd.			860,387				342,368				69,972				27,198
Amman Asia Electric Power Company			797,018				422,677				12,373				16,441
KEPCO SPC Power Corporation			289,726				32,688				108,730				16,764
Rabigh Electricity Company			2,584,623				1,959,792				155,702				37,228
PT Barito Wahana Tenaga			400,479				—				—				19,671
Kelar S.A.			686,316				546,082				40,520				(10,997	)
PT. Tanjung Power Indonesia			762,382				509,293				46,586				7,876
RE Holiday Holdings LLC			353,518				189,602				3,885				(2,275	)
Nghi Son 2 Power LLC			3,541,206				2,869,767				253,230				66,915
Solar Philippines Calatagan Corporation			117,932				42,869				9,746				5,976
OneEnergy Asia Limited			752,806				520,519				—				(5,153	)
Shuweihat Asia Power Investment B.V.			123,206				—				—				(5,691	)
RE Pioneer Holdings LLC			267,403				161,330				3,823				(957	)
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			189,965				69,090				15,513				4,035
South Jamaica Power Company Limited			527,592				312,630				142,772				10,915
Chile Solar JV SpA			121,241				55,690				2,413				(335	)

(*) The profit for the six-month period ended June 30, 2022 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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won
December 31, 2021
Investees		Total assets				Total liabilities				Sales				Profit (loss) for the year
<Associates>
Korea Gas Corporation (*)		W	43,669,902				34,550,567				27,520,756				950,757
PT. Bayan Resources TBK			2,884,474				743,452				3,264,057				1,456,893
Gemeng International Energy Co., Ltd.			8,151,333				5,976,164				2,511,377				(404,570	)
Gosung Green Power Co., Ltd.			5,412,537				4,509,791				740,028				51,450
Korea Power Exchange			331,640				61,912				110,075				492
Indeck Niles Development, LLC			1,051,557				729,078				—				(25,184	)
GS Donghae Electric Power Co., Ltd.			2,149,060				1,432,083				760,323				44,035
S-Power Co., Ltd.			856,963				603,519				608,259				24,998
PT. Cirebon Electric Power			697,614				254,089				273,650				39,965
Hyundai Green Power Co., Ltd.			812,287				391,754				101,818				(280	)
Shin Pyeongtaek Power Co., Ltd.			1,028,028				764,551				653,117				57,202
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,321,406				947,430				161,686				76,996
Dongducheon Dream Power Co., Ltd.			1,398,244				1,139,521				750,127				(16,685	)
Nepal Water & Energy Development Company Private Limited			153,184				58,545				—				(642	)
SPC Power Corporation			242,058				18,535				54,042				35,441
Korea Electric Power Corporation Fund			49,150				237				9,773				9,534
YTN Co., Ltd.			367,950				126,062				137,439				51,044
PT Wampu Electric Power			209,172				132,917				20,294				7,102
<Joint ventures>
Jamaica Public Service Company Limited			2,174,800				1,469,297				1,113,943				41,277
Datang Chifeng Renewable Power Co., Ltd.			827,213				315,746				120,989				24,398
Amman Asia Electric Power Company			731,745				433,946				17,753				30,815
KEPCO SPC Power Corporation			290,981				26,381				181,443				49,499
Rabigh Electricity Company			2,410,335				1,910,203				266,822				34,268
PT Barito Wahana Tenaga			266,584				39				—				25,839
Kelar S.A.			655,236				526,063				84,504				3,641
PT. Tanjung Power Indonesia			713,715				580,727				89,491				14,511
RE Holiday Holdings LLC			335,130				188,796				19,724				10,897
Nghi Son 2 Power LLC			2,982,805				3,020,684				548,027				84,276
Solar Philippines Calatagan Corporation			117,324				46,759				19,418				11,782
OneEnergy Asia Limited			136,247				777				—				(2,844	)
Shuweihat Asia Power Investment B.V.			75,652				—				—				23,905
RE Pioneer Holdings LLC			220,390				126,361				12,925				9,307
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			198,437				87,895				29,094				3,905
South Jamaica Power Company Limited			474,664				287,852				224,159				5,743
Chile Solar JV SpA			68,445				3,531				3,060				1,408

(*) The profit for the year ended December 31, 2021 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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
June 30, 2022
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	9,894,845				20.47	%			2,025,475				—				—				(51,005	)			1,974,470
PT. Bayan Resources TBK			2,293,253				20.00	%			458,651				290,545				—				(76,380	)			672,816
Gemeng International Energy Co., Ltd.			2,080,073				34.00	%			707,225				—				—				(137,638	)			569,587
Gosung Green Power Co., Ltd.			976,963				29.00	%			283,319				—				(6,552	)			—				276,767
Korea Power Exchange			272,554				100.00	%			272,554				—				—				—				272,554
Indeck Niles Development, LLC			444,945				50.00	%			222,473				—				—				96,503				318,976
GS Donghae Electric Power Co., Ltd.			739,621				34.00	%			251,471				—				—				—				251,471
S-Power Co., Ltd.			275,001				49.00	%			134,750				—				(1,347	)			—				133,403
PT. Cirebon Electric Power			457,146				27.50	%			125,715				—				—				—				125,715
Hyundai Green Power Co., Ltd.			409,966				29.00	%			118,890				—				—				—				118,890
Shin Pyeongtaek Power Co., Ltd.			313,990				40.00	%			125,596				3,559				(15,574	)			—				113,581
Xe-Pian Xe-Namnoy Power Co., Ltd.			445,584				25.00	%			111,396				305				(1,049	)			(289	)			110,363
Dongducheon Dream Power Co., Ltd.			270,768				34.01	%			92,088				1,757				(2,789	)			(12,582	)			78,474
Nepal Water & Energy Development Company Private Limited			102,700				69.06	%			70,928				972				—				—				71,900
SPC Power Corporation			221,945				38.00	%			84,339				—				—				(18,743	)			65,596
Korea Electric Power Corporation Fund			34,989				98.09	%			34,321				—				—				4				34,325
YTN Co., Ltd.			242,929				21.43	%			52,056				—				—				—				52,056
PT Wampu Electric Power			90,800				46.00	%			41,768				—				—				—				41,768
PT. Cirebon Energi Prasarana			598,130				10.00	%			59,813				—				—				—				59,813
<Joint ventures>
Jamaica Public Service Company Limited			800,586				40.00	%			320,234				29,357				—				(15,781	)			333,810
Datang Chifeng Renewable Power Co., Ltd.			518,019				40.00	%			207,208				—				—				—				207,208
Amman Asia Electric Power Company			374,341				60.00	%			224,605				—				—				—				224,605
KEPCO SPC Power Corporation			257,038				75.20	%			193,292				—				—				—				193,292
Rabigh Electricity Company			624,831				40.00	%			249,932				—				(53,102	)			(804	)			196,026
PT Barito Wahana Tenaga			400,479				30.61	%			122,596				—				—				—				122,596
Kelar S.A.			140,234				65.00	%			91,152				2,980				—				—				94,132
PT. Tanjung Power Indonesia			253,089				35.00	%			88,581				—				—				—				88,581
RE Holiday Holdings LLC			163,916				50.00	%			81,958				—				—				—				81,958
Nghi Son 2 Power LLC			671,439				50.00	%			335,720				—				—				—				335,720
Solar Philippines Calatagan Corporation			75,063				38.00	%			28,524				—				—				27,343				55,867
OneEnergy Asia Limited			232,287				40.00	%			92,916				25,511				—				—				118,427
Shuweihat Asia Power Investment B.V.			123,206				49.00	%			60,371				—				—				—				60,371
RE Pioneer Holdings LLC			106,074				50.00	%			53,037				—				—				—				53,037
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			120,875				40.00	%			48,350				—				—				—				48,350
South Jamaica Power Company Limited			214,963				20.00	%			42,993				—				—				(3	)			42,990
Chile Solar JV SpA			65,551				50.00	%			32,776				—				—				—				32,776

(*) 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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won
December 31, 2021
Investees		Net assets				Percentage of ownership (*)				Share in net assets				Investment differential				Intercompany transaction				Others				Book value
<Associates>
Korea Gas Corporation		W	9,119,335				20.47	%			1,866,728				—				—				(51,215	)			1,815,513
PT. Bayan Resources TBK			2,141,022				20.00	%			428,204				309,464				—				(76,379	)			661,289
Gemeng International Energy Co., Ltd.			2,175,169				34.00	%			739,557				—				—				(144,339	)			595,218
Gosung Green Power Co., Ltd.			902,746				29.00	%			261,796				—				(938	)			—				260,858
Korea Power Exchange			269,728				100.00	%			269,728				—				—				—				269,728
Indeck Niles Development, LLC			322,479				56.25	%			181,395				64,878				—				—				246,273
GS Donghae Electric Power Co., Ltd.			716,977				34.00	%			243,772				—				—				—				243,772
S-Power Co., Ltd.			253,444				49.00	%			124,188				—				(1,402	)			—				122,786
PT. Cirebon Electric Power			443,525				27.50	%			121,969				—				—				—				121,969
Hyundai Green Power Co., Ltd.			420,533				29.00	%			121,955				—				—				—				121,955
Shin Pyeongtaek Power Co., Ltd.			263,477				40.00	%			105,391				3,559				(15,876	)			—				93,074
Xe-Pian Xe-Namnoy Power Co., Ltd.			373,976				25.00	%			93,494				305				(1,069	)			(289	)			92,441
Dongducheon Dream Power Co., Ltd.			258,723				34.01	%			87,992				1,757				(2,969	)			(12,582	)			74,198
Nepal Water & Energy Development Company Private Limited			94,639				69.06	%			65,361				972				—				—				66,333
SPC Power Corporation			223,523				38.00	%			84,939				—				—				(19,893	)			65,046
Korea Electric Power Corporation Fund			48,913				98.09	%			47,979				—				—				4				47,983
YTN Co., Ltd.			241,863				21.43	%			51,828				—				—				—				51,828
PT Wampu Electric Power			76,255				46.00	%			35,077				—				—				—				35,077
<Joint ventures>
Jamaica Public Service Company Limited			705,503				40.00	%			282,201				29,357				—				(16,909	)			294,649
Datang Chifeng Renewable Power Co., Ltd.			511,467				40.00	%			204,587				—				—				—				204,587
Amman Asia Electric Power Company			297,799				60.00	%			178,679				—				—				—				178,679
KEPCO SPC Power Corporation			264,600				75.20	%			198,979				—				—				—				198,979
Rabigh Electricity Company			500,132				40.00	%			200,053				—				(55,571	)			(804	)			143,678
PT Barito Wahana Tenaga			266,545				30.61	%			81,595				—				—				—				81,595
Kelar S.A.			129,173				65.00	%			83,962				2,733				—				—				86,695
PT. Tanjung Power Indonesia			132,988				35.00	%			46,546				—				—				—				46,546
RE Holiday Holdings LLC			146,334				50.00	%			73,167				—				—				—				73,167
Nghi Son 2 Power LLC			(37,879	)			50.00	%			(18,940	)			—				—				18,940				—
Solar Philippines Calatagan Corporation			70,565				38.00	%			26,815				—				—				31,416				58,231
OneEnergy Asia Limited			135,470				40.00	%			54,188				25,512				—				—				79,700
Shuweihat Asia Power Investment B.V.			75,652				49.00	%			37,069				—				—				—				37,069
RE Pioneer Holdings LLC			94,029				50.00	%			47,015				—				—				—				47,015
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			110,542				40.00	%			44,217				—				—				—				44,217
South Jamaica Power Company Limited			186,812				20.00	%			37,362				—				—				(2	)			37,360
Chile Solar JV SpA			64,914				50.00	%			32,457				—				—				—				32,457

(*) 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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of June 30, 2022 and December 31, 2021, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Unrecognized equity interest				Accumulated unrecognized equity interest				Unrecognized equity interest				Accumulated unrecognized equity interest
Eurasia Energy Holdings		W	17				207				15				190
Gunsan Bio Energy Co., Ltd.			67				3,931				282				3,864
Daehan Wind Power PSC			—				—				(3,855	)			—
Dayone Energy Co., Ltd.			126				23,578				(1,244	)			23,452
Nghi Son 2 Power LLC			(18,940	)			—				(114,340	)			18,940
Samcheok Eco Materials Co., Ltd.			198				660				(323	)			462
Naepo Green Energy Co., Ltd.			1,795				9,542				5,469				7,747
Barakah One Company			30,147				72,983				(26,502	)			42,836
Pioneer Gas Power Limited			15,615				53,244				21,691				37,629
Incheon New Power Co., Ltd.			(60	)			103				(31	)			163
Bigeum Resident Photovoltaic Power Co., Ltd.			143				441				182				298
KAPES, Inc.			347				3,862				317				3,515
Chester Solar IV SpA			154				175				21				21

(7) As of June 30, 2022, 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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of June 30, 2022, 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 June 30, 2022, the Group has call option against the financial investors (IBK 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.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of June 30, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(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 or transfer them to others at fair value.

(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

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates and joint ventures as of June 30, 2022 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.
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.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of June 30, 2022 are as follows, continued:

Company		Nature and extent of any significant restrictions
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, either of Omisan Wind Power Co., Ltd. and Unison Co., Ltd. shall not transfer their shares to others wholly or partially until 4 years have passed from the completion of power complex without the written consent from the other party. In case the shares of each party becomes less than 10% of outstanding shares after the transfer, it also requires the written consent from the other party.
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.
Goheung New Energy Co., Ltd.		Payment of dividends or repayment of loans such as subordinated loans to the investors can only be made 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

June 30, 2022 and 2021 (Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	14,139,619				(23,473	)			—				(28,467	)			14,087,679
Buildings			23,261,993				(49,653	)			(10,486,257	)			(6,604	)			12,719,479
Structures			80,055,854				(168,050	)			(31,340,654	)			(6,721	)			48,540,429
Machinery			102,166,615				(134,937	)			(51,436,143	)			(512,425	)			50,083,110
Ships			17,265				—				(2,896	)			—				14,369
Vehicles			387,194				(1,515	)			(297,595	)			(116	)			87,968
Equipment			2,062,956				(605	)			(1,650,888	)			(42	)			411,421
Tools			1,281,486				(52	)			(1,106,713	)			(6	)			174,715
Construction-in-progress			32,769,282				(134,566	)			—				(157,530	)			32,477,186
Right-of-use assets			7,900,631				—				(4,026,616	)			—				3,874,015
Asset retirement costs			14,404,625				—				(5,742,125	)			(146,423	)			8,516,077
Others			15,119,371				—				(12,595,436	)			—				2,523,935
		W	293,566,891				(512,851	)			(118,685,323	)			(858,334	)			173,510,383

In millions of won		December 31, 2021
		Acquisition cost				Government grants				Accumulated depreciation				Accumulated impairment losses				Book value
Land		W	14,135,452				(23,474	)			—				(27,487	)			14,084,491
Buildings			22,974,569				(52,122	)			(10,041,270	)			(7,073	)			12,874,104
Structures			78,474,620				(172,021	)			(30,171,363	)			(13,205	)			48,118,031
Machinery			101,052,961				(140,082	)			(48,791,577	)			(514,991	)			51,606,311
Ships			2,068				—				(1,891	)			—				177
Vehicles			371,207				(1,675	)			(281,833	)			(117	)			87,582
Equipment			1,989,115				(149	)			(1,591,890	)			(42	)			397,034
Tools			1,256,189				(64	)			(1,073,086	)			(38	)			183,001
Construction-in-progress			30,313,624				(111,822	)			—				(157,530	)			30,044,272
Right-of-use assets			7,848,138				—				(3,788,741	)			—				4,059,397
Asset retirement costs			14,348,920				—				(5,277,109	)			(146,423	)			8,925,388
Others			14,852,245				—				(12,106,384	)			—				2,745,861
		W	287,619,108				(501,409	)			(113,125,144	)			(866,906	)			173,125,649

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Acquisition				Disposal				Depreciation				Others				Ending balance
Land		W	14,107,965				2,369				(39,300	)			(41	)			40,159				14,111,152
(Government grants)			(23,474	)			—				1				—				—				(23,473	)
Buildings			12,926,226				1,315				(10,149	)			(451,508	)			303,248				12,769,132
(Government grants)			(52,122	)			—				—				2,612				(143	)			(49,653	)
Structures			48,290,052				1,154				(142,886	)			(1,304,005	)			1,864,164				48,708,479
(Government grants)			(172,021	)			—				536				4,768				(1,333	)			(168,050	)
Machinery			51,746,393				145,328				(105,910	)			(2,923,333	)			1,355,569				50,218,047
(Government grants)			(140,082	)			—				184				8,675				(3,714	)			(134,937	)
Ships			177				—				—				(161	)			14,353				14,369
Vehicles			89,257				349				(2	)			(19,704	)			19,583				89,483
(Government grants)			(1,675	)			—				—				293				(133	)			(1,515	)
Equipment			397,183				33,757				(50	)			(98,796	)			79,932				412,026
(Government grants)			(149	)			—				—				54				(510	)			(605	)
Tools			183,065				9,954				(318	)			(38,930	)			20,996				174,767
(Government grants)			(64	)			—				—				12				—				(52	)
Construction-in-progress			30,156,094				5,807,570				—				—				(3,351,912	)			32,611,752
(Government grants)			(111,822	)			6,326				—				—				(29,070	)			(134,566	)
Right-of-use assets			4,059,397				94,849				(274	)			(270,472	)			(9,485	)			3,874,015
Asset retirement costs			8,925,388				—				—				(560,279	)			150,968				8,516,077
Others			2,745,861				2,374				(18,608	)			(516,805	)			311,113				2,523,935
		W	173,125,649				6,105,345				(316,776	)			(6,167,620	)			763,785				173,510,383

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won		December 31, 2021
		Beginning balance				Acquisition				Disposal				Depreciation				Impairment				Others				Ending balance
Land		W	13,943,326				9,561				(54,447	)			—				—				209,525				14,107,965
(Government grants)			(23,475	)			—				1				—				—				—				(23,474	)
Buildings			12,616,532				9,036				(19,974	)			(889,539	)			—				1,210,171				12,926,226
(Government grants)			(57,231	)			—				—				5,174				—				(65	)			(52,122	)
Structures			46,258,855				630				(319,287	)			(2,582,488	)			(741	)			4,933,083				48,290,052
(Government grants)			(180,009	)			—				1,811				9,517				—				(3,340	)			(172,021	)
Machinery			50,038,787				268,126				(135,803	)			(5,759,155	)			—				7,334,438				51,746,393
(Government grants)			(157,785	)			—				531				17,519				—				(347	)			(140,082	)
Ships			255				—				—				(103	)			—				25				177
Vehicles			78,983				4,807				(4,298	)			(37,980	)			—				47,745				89,257
(Government grants)			(632	)			(26	)			—				460				—				(1,477	)			(1,675	)
Equipment			407,843				54,875				(667	)			(184,007	)			—				119,139				397,183
(Government grants)			(227	)			—				—				95				—				(17	)			(149	)
Tools			192,387				19,389				(89	)			(81,984	)			—				53,362				183,065
(Government grants)			(239	)			—				—				209				—				(34	)			(64	)
Construction-in-progress			30,963,725				12,175,384				(66,965	)			—				(3,315	)			(12,912,735	)			30,156,094
(Government grants)			(79,126	)			5,027				—				—				—				(37,723	)			(111,822	)
Right-of-use assets			4,542,166				78,213				(11,787	)			(558,565	)			—				9,370				4,059,397
Asset retirement costs			7,413,171				92				(209	)			(844,518	)			—				2,356,852				8,925,388
Others			2,752,081				5,311				(2,332	)			(869,310	)			—				860,111				2,745,861
		W	168,709,387				12,630,425				(613,515	)			(11,774,675	)			(4,056	)			4,178,083				173,125,649

(3) The Group has recognized W1,075 million of revenues and W12,573 million of related expenses for the six-month period ended June 30, 2022 in relation to the proceeds from selling the goods produced before using in the manner intended by management.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

19. Investment Properties

(1) Investment properties as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Acquisition cost				Government grants				Accumulated depreciation				Book          value
Land		W	194,547				—				—				194,547
Buildings			20,003				(23	)			(6,268	)			13,712
		W	214,550				(23	)			(6,268	)			208,259

In millions of won		December 31, 2021
		Acquisition cost				Government grants				Accumulated depreciation				Book          value
Land		W	201,605				—				—				201,605
Buildings			19,543				(30	)			(8,334	)			11,179
		W	221,148				(30	)			(8,334	)			212,784

(2) Changes in investment properties for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Depreciation				Others				Ending balance
Land		W	201,605				—				(7,058	)			194,547
Buildings			11,209				(226	)			2,752				13,735
(Government grants)			(30	)			—				7				(23	)
		W	212,784				(226	)			(4,299	)			208,259

In millions of won		December 31, 2021
		Beginning balance				Depreciation				Others				Ending balance
Land		W	200,391				—				1,214				201,605
Buildings			24,833				(1,387	)			(12,237	)			11,209
(Government grants)			(29	)			1				(2	)			(30	)
		W	225,195				(1,386	)			(11,025	)			212,784

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the three and six-month period ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Rental income		W	2,426				4,963				2,480				4,814
Operating and maintenance expenses related to rental income			(154	)			(255	)			(363	)			(725	)
		W	2,272				4,708				2,117				4,089

(4) Fair value of investment properties as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Book value				Fair value				Book value				Fair value
Land		W	194,547				289,842				201,605				268,702
Buildings			13,712				15,229				11,179				13,636
		W	208,259				305,071				212,784				282,338

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

June 30, 2022 and 2021 (Unaudited)

20. Construction Contracts

(1) Changes in total contract amount in which revenue is not yet recognized for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won

June 30, 2022

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

2,783,935

145,689

(429,459

)

2,500,165

(*) For the six-month period ended June 30, 2022, the increased balance of contracts from new orders is W226,616 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W80,927 million.

In millions of won

December 31, 2021

Beginning balance

Increase (decrease) (*)

Recognized as revenue

Ending balance

Nuclear power plant construction in UAE and others

W

3,152,725

386,208

(754,998

)

2,783,935

(*) For the year ended December 31, 2021, the increased balance of contracts from new orders is W458,635 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is W72,427 million.

(2) Accumulated earned revenue, expense and others related to the Group’s construction contracts in progress as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won

June 30, 2022

Accumulated earned revenue

Accumulated expense

Accumulated profit

Unearned advance receipts

Nuclear power plant construction in UAE and others

W

22,357,078

21,198,163

1,158,915

32,168

In millions of won

December 31, 2021

Accumulated earned revenue

Accumulated expense

Accumulated profit

Unearned advance receipts

Nuclear power plant construction in UAE and others

W

22,051,129

20,967,097

1,084,032

23,238

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won

June 30, 2022

December 31, 2021

Contract assets (*1)

Contract liabilities (*2)

Contract assets (*1)

Contract liabilities (*2)

Nuclear power plant construction in UAE and others

W

188,949

24,018

82,306

5,330

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

(*2) Included in non-financial liabilities as advance received in the consolidated statements of financial position. The revenue recognized on June 30, 2022 from the amounts included in contract liabilities at the end of the prior year is W3,217 million.

(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 six-month period ended June 30, 2022 are as follows:

In millions of won		June 30, 2022
		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 cossts				Revenue recognized from performance obligations satisfied in previous periods				Gross				Allowance for doubtful accounts				Gross				Allowance for doubtful accounts
Transmission and distribution		W	—				21,198				2,098				19,100				57,292				—				81,643				—				103,940				—
Plant maintenance & engineering service			2,454				2,193				(44,762	)			46,955				18,627				7,045				78,032				7				38,828				6,049
Others			—				—				—				—				—				—				29,273				—				—				—
		W	2,454				23,391				(42,664	)			66,055				75,919				7,045				188,948				7				142,768				6,049

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

21. Intangible Assets other than Goodwill

(1) Intangible assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	934,912				(71	)			(753,890	)			(20	)			180,931
Copyrights, patents rights and other industrial rights			103,907				—				(63,537	)			(9,178	)			31,192
Mining rights			647,259				—				(45,772	)			(559,477	)			42,010
Development expenditures			945,739				(3,423	)			(869,936	)			—				72,380
Intangible assets under development			72,392				(1,817	)			—				(8,903	)			61,672
Usage rights of donated assets and others			592,840				—				(429,441	)			—				163,399
Leasehold rights			28,185				—				(22,816	)			—				5,369
Greenhouse gas emissions rights			71,124				—				—				—				71,124
Others			541,440				(69	)			(165,509	)			(11,995	)			363,867
		W	3,937,798				(5,380	)			(2,350,901	)			(589,573	)			991,944

In millions of won		December 31, 2021
		Acquisition cost				Government grants				Accumulated amortization				Accumulated impairment losses				Book value
Software		W	867,185				(91	)			(704,589	)			—				162,505
Copyrights, patents rights and other industrial rights			103,428				—				(59,063	)			(9,178	)			35,187
Mining rights			623,122				—				(39,803	)			(541,417	)			41,902
Development expenditures			978,768				(3,820	)			(905,805	)			(19	)			69,124
Intangible assets under development			94,275				(7,326	)			—				(12,845	)			74,104
Usage rights of donated assets and others			592,870				—				(423,087	)			—				169,783
Leasehold rights			28,185				—				(22,337	)			—				5,848
Greenhouse gas emissions rights			78,137				—				—				—				78,137
Others			574,957				(71	)			(155,404	)			(11,995	)			407,487
		W	3,940,927				(11,308	)			(2,310,088	)			(575,454	)			1,044,077

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Acquisition				Disposal				Amortization				Impairment				Others				Ending balance
Software		W	162,596				9,312				(52	)			(38,710	)			—				47,856				181,002
(Government grants)			(91	)			—				—				27				—				(7	)			(71	)
Copyrights, patents rights and other industrial rights			35,187				105				(1	)			(3,857	)			—				(242	)			31,192
Mining rights			41,902				1,579				—				(2,404	)			—				933				42,010
Development expenditures			72,944				—				—				(13,273	)			—				16,132				75,803
(Government grants)			(3,820	)			—				—				715				—				(318	)			(3,423	)
Intangible assets under development			81,430				15,686				—				—				(14	)			(33,613	)			63,489
(Government grants)			(7,326	)			—				—				—				—				5,509				(1,817	)
Usage rights of donated assets and others			169,783				—				—				(5,836	)			—				(548	)			163,399
Leasehold rights			5,848				—				—				(479	)			—				—				5,369
Greenhouse gas emissions rights			78,137				51,165				—				—				—				(58,178	)			71,124
Others			407,558				1,332				(79	)			(13,817	)			—				(31,058	)			363,936
(Government grants)			(71	)			—				—				2				—				—				(69	)
		W	1,044,077				79,179				(132	)			(77,632	)			(14	)			(53,534	)			991,944
In millions of won		December 31, 2021
		Beginning balance				Acquisition				Disposal				Amortization				Impairment				Others				Ending balance
Software		W	152,163				18,834				(1	)			(77,881	)			—				69,481				162,596
(Government grants)			(136	)			—				—				64				—				(19	)			(91	)
Copyrights, patents rights and other industrial rights			42,916				166				(131	)			(7,771	)			—				7				35,187
Mining rights			42,390				1,022				—				(3,526	)			—				2,016				41,902
Development expenditures			95,166				309				—				(37,033	)			—				14,502				72,944
(Government grants)			(5,043	)			—				—				1,439				—				(216	)			(3,820	)
Intangible assets under development			67,018				51,988				—				—				—				(37,576	)			81,430
(Government grants)			(7,203	)			—				—				—				—				(123	)			(7,326	)
Usage rights of donated assets and others			184,475				—				—				(13,594	)			—				(1,098	)			169,783
Leasehold rights			6,340				—				—				(834	)			—				342				5,848
Greenhouse gas emissions rights			61,373				78,091				—				(31	)			—				(61,296	)			78,137
Others			416,346				2,229				—				(26,998	)			14				15,967				407,558
(Government grants)			(75	)			—				—				4				—				—				(71	)
		W	1,055,730				152,639				(132	)			(166,161	)			14				1,987				1,044,077

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won and thousands of Australian dollars
June 30, 2022
Type		Description		Currency		Amount				Remaining useful lives
Software		ORACLE license for SDIS integrated DB		KRW			6,313			3 years and 10 months
Copyrights, patents rights and other industrial rights		Smart technology verification and standard design project conducting right		KRW			617			3 months
		Contributions to ARP NRC DC		KRW			22,958			5 years and 6 months
Mining rights		Mining rights of Bylong mine		AUD			—			—  (*)
Usage rights of donated assets and others		Sejong Haengbogdosi sharing charge		KRW			20,041			4 years and 5 months
		Right of use electricity and gas supply facility (Community district of Songdo)		KRW			8,435			8 years
Others		Occupancy and use of public waters		KRW			78,918			14 years and 7 months
		Greenhouse gas emissions rights		KRW			71,124			—
		Business rights		KRW			157,586			27 years and 5 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, 2021
Type		Description		Currency		Amount				Remaining useful lives
Software		DAS MS-SQL CORE license		KRW			3,817			2 years and 8 months
Copyrights, patents rights and other industrial rights		Smart technology verification and standard design project conducting right		KRW			1,851			9 months
		Contributions to ARP NRC DC		KRW			25,045			6 years
Mining rights		Mining rights of Bylong mine		AUD			—			—  (*)
Usage rights of donated assets and others		Sejong Haengbogdosi sharing charge		KRW			22,310			4 years and 11 months
		Right of use electricity and gas supply facility (Community district of Songdo)		KRW			8,962			8 years and 6 months
Others		Occupancy and use of public waters		KRW			81,623			15 years and 1 month
		Greenhouse gas emissions rights		KRW			78,137			—
		Business rights		KRW			160,459			27 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 six-month periods ended June 30, 2022 and 2021, the Group recognized research and development expenses of W313,469 million and W312,070 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

22. Trade and Other Payables

Trade and other payables as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Trade payables		W	5,403,328				—				4,780,260				—
Non-trade payables			1,628,040				2,136,809				1,536,976				2,032,260
Accrued expenses			1,607,857				7,895				1,174,765				8,095
Leasehold deposits received			1,680				741				1,699				741
Other deposits received			71,586				68,601				72,063				68,050
Lease liabilities			626,165				3,823,960				583,558				3,826,945
Dividends payable			4,435				—				4,105				—
Others (*)			—				67,222				—				60,407
		W	9,343,091				6,105,228				8,153,426				5,996,498

(*) Details of others as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Advance received from local governments		W	—				3,477				—				3,477
Others			—				63,745				—				56,930
		W	—				67,222				—				60,407

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Current liabilities
Short-term borrowings		W	4,869,200				2,920,563
Current portion of long-term borrowings			3,509,038				1,463,703
Current portion of debt securities			9,610,845				9,652,986
Less: Current portion of discount on long-term borrowings			(2,027	)			(2,048	)
Less: Current portion of discount on debt securities			(3,345	)			(5,370	)
			17,983,711				14,029,834
Non-current liabilities
Long-term borrowings			2,397,668				2,278,481
Debt securities			79,082,139				64,385,784
Less: Discount on long-term borrowings			(14,512	)			(12,857	)
Less: Discount on debt securities			(172,557	)			(152,760	)
Add: Premium on debt securities			865				1,031
			81,293,603				66,499,679
		W	99,277,314				80,529,513

(2) Repayment schedule of borrowings and debt securities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
June 30, 2022
Type		Borrowings				Debt Securities
Less than 1 year		W	8,378,238				9,610,845
1~ 5 years			963,140				48,638,229
Over 5 years			1,434,528				30,443,910
		W	10,775,906				88,692,984

In millions of won
December 31, 2021
Type		Borrowings				Debt Securities
Less than 1 year		W	4,384,266				9,652,986
1~ 5 years			1,013,500				34,156,038
Over 5 years			1,264,981				30,229,746
		W	6,662,747				74,038,770

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won and thousands of foreign currencies

June 30, 2022

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

1.95~4.60

2022.07.12 ~ 2022.12.31

—

W

2,371,011

Local short-term borrowings

Nonghyup Bank and others

3M CD + 1.11~1.14

2023.05.25 ~ 2023.05.26

—

1,500,000

Foreign short-term borrowings

Shinhan Bank and others

0.37~0.54

2022.07.18 ~ 2022.08.10

USD

74,767

96,667

Foreign short-term borrowings

Korea Development Bank and others

SOFR(1M) + 0.11~1.25 SOFR(3M) + 0.26~1.72

2022.07.21

USD

134,547

173,956

Foreign short-term borrowings

Shinhan Bank and others

0.71~3.21

2022.07.08 ~ 2022.12.27

USD

452,188

584,632

Foreign short-term borrowings

Societe Generale

—

2022.07.05

EUR

88,985

120,134

Local bank overdraft

Nonghyup Bank

3.48

2022.07.04

—

22,800

W

4,869,200

In millions of won and thousands of foreign currencies

December 31, 2021

Type

Creditor

Interest rate (%)

Maturity

Foreign currency

Local currency

Local short-term borrowings

DB financial investment and others

1.96~4.60

2022.01.07 ~ 2022.12.31

—

W

2,030,886

Electronic short-term bonds

BNK Securities and others

1.35~1.77

2022.01.21 ~ 2022.02.08

—

100,000

Foreign short-term borrowings

Shinhan Bank and others

0.34~0.45

2022.01.04 ~ 2022.03.30

USD

157,533

186,755

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD

173,042

205,142

Foreign short-term borrowings

Shinhan Bank and others

0.57~0.80

2022.06.17 ~ 2022.08.31

USD

78,319

92,847

Foreign short-term borrowings

Credit Agricole and others

0.04

2022.06.28

EUR

72,199

96,915

Local bank overdraft

Korea Development Bank and others

1.73~2.25

2022.01.07 ~ 2022.02.26

—

208,018

W

2,920,563

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won and thousands of foreign currencies
June 30, 2022
Type				Interest rate (%)				Maturity				Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others			0.50				2023~2044				—			W	2,321
		Facility			2.50~4.60				2022~2028				—				33,943
		Facility			CB rate+0.90				2029				—				9,985
		Operating funds			1yr KoFC bond rate + 0.81~0.91				2023~2024				—				54,300
Hana Bank and others		Commercial Paper			3M CD+0.13~0.68				2022~2027				—				3,150,000
		Facility			4.60				2028				—				8,901
		Facility			3yr KTB rate-1.25				2022~2028				—				4,153
Export-Import Bank of Korea		Project loans			1.50				2026				—				11,785
		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				—				7,989
		Facility			3yr KTB rate-2.25				2022~2024				—				730
		Project loans			—				2023~2027				—				1,197
		Others			1.75				2028				—				4,531
Shinhan Bank and others		Facility			CB rate+0.90~1.10				2028~2029				—				20,340
		Commercial Paper			3M CD+0.38				2025				—				150,000
		Others			3.95				2034				—				81,567
		Others			Standard overdraft rate+1.00				2034				—				81,567
Kookmin Bank		Facility			MOR+0.79 3M CD+1.79				2022~2031				—				53,202
Others		Facility			2.80~6.80				2022~2039				—				700,919
		Facility			CB rate+1.10 3M CD+1.60				2028~2036				—				54,013
		PF Refinancing			CB rate+1.25 1.75~3.60				2029~2035				—				127,221
		PF Refinancing			3.80~5.00				2032~2034				—				46,500
		Others			4.40~7.90				2038~2039				—				87,745
		Others			1.80~5.80				2031~2044				—				52,228
																	4,792,837
Foreign long-term borrowings
Korea Energy Agency		Project loans			—				2026				USD 8,744				11,305
Export-Import Bank of Korea and others		Direct loan and others			1M Libor+1.80~3.20				2036				USD 86,485				111,816
		Direct loan and others			3M Libor+2.75~3.70				2027				JOD 96,729				176,390
		PF Loan			6M Libor+1.70~2.50				2032				USD 100,304				129,683
POSCO and others		Shareholder’s loan			8.00				2025				USD 11,426				14,772
		Shareholder’s loan			8.00				2031				JOD 4,853				8,850
Samsung Life Insurance and others		Syndicated Loan			3.10~8.00				2032				JPY 4,787,963				45,316
Woori Bank and others		Syndicated Loan			JPY 6M Libor+2.00				2032				JPY 2,613,385				24,734
KiwoomSolar Power Professional Investor Private Placement Investment Trust V		Senior borrowing			3.90				2029				EUR 42,985				58,033
IFC and others		Others			6M Libor+5.00				2031				USD 222,587				287,783
Federal Financing Bank and others		PF Loan			6.00				2038				USD 59,738				77,234
Others		Others			—				—				USD 129,905				167,953
																	1,113,869
																	5,906,706
Less: Discount on long-term borrowings																	(16,539	)
Less: Current portion of long-term borrowings																	(3,509,038	)
Add: Current portion of discount on long-term borrowings																	2,027
																W	2,383,156

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2021
Type				Interest rate (%)				Maturity				Foreign currency				Local currency
Local long-term borrowings
Korea Development Bank		Others			0.50				2023~2044				—			W	2,509
		Facility			2.50~4.60				2022~2028				—				39,430
		Operating funds			2.33				2022				—				20,000
		Operating funds			1yr KoFC bond rate + 0.81~0.95				2022~2023				—				64,300
Hana Bank		Commercial Paper			3M CD+0.13~0.43				2022~2025				—				1,050,000
		Facility			4.60				2028				—				9,647
		Facility			3yr KTB rate-1.25				2022~2028				—				4,485
IBK		PF Refinancing			CD+1.25				2030				—				8,589
Export-Import Bank of Korea		Project loans			1.50				2026				—				13,258
		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				—				8,971
		Facility			3yr KTB rate-2.25				2022~2024				—				995
		Project loans			—				2023				—				1,197
		Others			1.75				2028				—				4,893
Shinhan Bank and others		Facility			CB rate+1.10				2028				—				14,470
		Commercial Paper			3M CD+0.38				2025				—				150,000
		Others			3.95				2034				—				84,179
		Others			Standard overdraft rate+1.00				2034				—				84,179
Kookmin Bank		Facility			MOR+0.79 3M CD+1.79				2022~2031				—				59,333
Others		Facility			2.80~6.80				2024~2039				—				620,185
		Facility			CB rate+0.90~1.10 3M CD+1.60 3.37				2028~2037				—				171,733
		PF Refinancing			3.80~5.00				2030~2034				—				71,742
		PF Refinancing			1.75				2029				—				22,265
		Others			4.40~7.90				2022~2038				—				116,367
		Others			1.80~4.50				2031~2034				—				49,928
																	2,720,355
Foreign long-term borrowings
Korea Energy Agency		Project loans			—				2026				USD 8,744				10,366
Export-Import Bank of Korea and others		Direct loan and others			1M Libor+1.80~3.20				2036				USD 89,823				106,485
		Direct loan and others			3M Libor+2.75~3.70				2027				JOD 107,868				180,363
		PF Loan			6M Libor+1.70~2.50				2032				USD 103,340				122,509
POSCO and others		Shareholder’s loan			8.00				2025				USD 11,953				14,171
		Shareholder’s loan			8.00				2031				JOD 4,853				8,114
Samsung Life Insurance and others		Syndicated Loan			3.10~8.00				2032				JPY 5,144,387				53,000
Woori Bank and others		Syndicated Loan			JPY 6M Libor+2.00				2032				JPY 2,820,708				29,060
KiwoomSolar Power Professional Investor Private Placement Investment Trust V		Senior borrowing			3.90				2029				EUR 36,311				48,741
IFC and others		Others			6M Libor+5.00				2031				USD 230,018				272,686
Federal Financing Bank and others		PF Loan			2.39~6.00				2031~2038				USD 94,135				111,597
Others		Others			—				—				USD 54,607				64,737
																	1,021,829
																	3,742,184
Less: Discount on long-term borrowings																	(14,905	)
Less: Current portion of long-term borrowings																	(1,463,703	)
Add: Current portion of discount on long-term borrowings																	2,048
																W	2,265,624

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
		Issue date		Maturity		Interest rate (%)		June 30, 2022				December 31, 2021
Electricity Bonds		2012.01.26~2022.06.29		2022.07.05~2052.04.21		1.02~4.48		W	45,940,000				34,080,000
Corporate Bonds (*)		2009.10.16~2022.06.22		2022.07.07~2052.06.22		1.00~6.00			28,572,366				28,194,472
Corporate Bonds		2021.05.26		2041.05.25		1.75			1,010				—
									74,513,376				62,274,472
Less: Discount on local debt securities									(55,363	)			(52,723	)
Less: Current portion of local debt securities									(7,841,969	)			(7,432,647	)
Add: Current portion of discount on local debt securities									2,345				2,510
								W	66,618,389				54,791,612

(*) Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to W1,691 million, may exercise the early redemption rights on the 5th year (March 31, 2021) from the date of issuance of the bonds and every year on March 31 thereafter, until the year before the redemption date.

(6) Foreign debt securities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won and thousands of foreign currencies
June 30, 2022
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	360,333
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00			USD 314,717				406,898
FY-04		2004.04.23		2034.04.23		5.13			USD 286,920				370,959
FY-12		2012.09.19		2022.09.19		3.00			USD 750,000				969,674
FY-14		2014.07.30		2029.07.30		3.57			USD 100,000				129,290
FY-15		2015.06.15		2025.06.15		3.25			USD 300,000				387,870
FY-17		2017.07.25		2027.07.25		3.13			USD 300,000				387,870
FY-17		2017.10.30		2037.10.30		1.70			EUR 40,000				54,000
FY-17		2017.11.16		2037.11.16		2.36			SEK 450,000				56,840
FY-18		2018.03.13		2028.03.13		3.35			HKD 1,650,000				271,871
FY-18		2018.06.07~2018.07.25		2023.06.07~2023.07.25		3.75~3.88			USD 1,400,000				1,810,060
FY-19		2019.02.27		2024.02.27		0.13			CHF 200,000				270,806
FY-19		2019.06.24		2024.06.24		2.50			USD 500,000				646,450
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05			CHF 300,000				406,209
FY-19		2019.07.22		2022.07.22		2.38			USD 300,000				387,870
FY-19		2019.10.30		2024.10.30		3M BBSW+0.97			AUD 300,000				266,856
FY-19		2019.12.19		2037.12.31		3.30~5.70			USD 360,899				466,607
FY-20		2020.02.03		2025.02.03		2.13			USD 300,000				387,870
FY-20		2020.05.06		2025.05.06		3.60			USD 500,000				646,450
FY-20		2020.06.15		2025.06.15		1.13			USD 500,000				646,450
FY-20		2020.08.03		2026.02.03		1.00			USD 300,000				387,870
FY-21		2021.01.27		2026.01.27		0.75			USD 450,000				581,805
FY-21		2021.04.27		2026.04.27		1.25			USD 500,000				646,450
FY-21		2021.08.09		2026.08.09		1.25			USD 300,000				387,870
FY-21		2021.09.24		2026.09.24		1.13			USD 300,000				387,870
FY-22		2022.04.21		2027.04.21		3.63			USD 300,000				387,870
FY-22		2022.05.06		2025.05.06		1.75			USD 500,000				646,450
FY-22		2022.06.14		2025.06.14~2027.06.14		3.63~4.00			USD 800,000				1,034,320
FY-22		2022.06.28		2025.06.28		4.13			USD 300,000				387,870
													14,179,608
Less: Discount on foreign debt securities													(120,539	)
Add: Premium on foreign debt securities													865
Less: Current portion of foreign debt securities													(1,768,876	)
Add: Current portion of discount on foreign debt securities													1,000
												W	12,292,058

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 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	330,400
FY-97		1997.01.31~1997.08.04		2027.02.01~2027.08.01		6.75~7.00			USD 314,717				373,097
FY-04		2004.04.23		2034.04.23		5.13			USD 286,920				340,144
FY-12		2012.09.19		2022.09.19		3.00			USD 750,000				889,125
FY-14		2014.07.30		2029.07.30		3.57			USD 100,000				118,550
FY-15		2015.06.15		2025.06.15		3.25			USD 300,000				355,650
FY-17		2017.06.19~2017.07.25		2022.06.19~2027.07.25		2.63~3.13			USD 800,000				948,400
FY-17		2017.10.30		2037.10.30		1.70			EUR 40,000				53,694
FY-17		2017.11.16		2037.11.16		2.36			SEK 450,000				58,968
FY-18		2018.03.13		2028.03.13		3.35			HKD 1,650,000				250,850
FY-18		2018.06.07~2018.07.25		2023.06.07~2023.07.25		3.75~3.88			USD 1,400,000				1,659,700
FY-19		2019.01.22~2019.06.24		2022.01.22~2024.06.24		2.50~3.38			USD 800,000				948,400
FY-19		2019.02.27		2024.02.27		0.13			CHF 200,000				259,494
FY-19		2019.07.19		2024.07.19~2027.07.19		0.00~0.05			CHF 300,000				389,241
FY-19		2019.07.22		2022.07.22		2.38			USD 300,000				355,650
FY-19		2019.10.30		2024.10.30		3M BBSW+0.97			AUD 300,000				257,667
FY-19		2019.12.19		2037.12.31		3.30~5.70			USD 371,947				440,943
FY-20		2020.02.03		2025.02.03		2.13			USD 300,000				355,650
FY-20		2020.05.06		2025.05.06		1.75			USD 500,000				592,750
FY-20		2020.06.15		2025.06.15		1.13			USD 500,000				592,750
FY-20		2020.08.03		2026.02.03		0.61			USD 300,000				355,650
FY-21		2021.01.27		2026.01.27		0.75			USD 450,000				533,475
FY-21		2021.04.27		2026.04.27		1.25			USD 500,000				592,750
FY-21		2021.08.09		2026.08.09		1.25			USD 300,000				355,650
FY-21		2021.09.24		2026.09.24		1.13			USD 300,000				355,650
													11,764,298
Less: Discount on foreign debt securities													(105,407	)
Add: Premium on foreign debt securities													1,031
Less: Current portion of foreign debt securities													(2,220,339	)
Add: Current portion of discount on foreign debt securities													2,860
												W	9,442,443

(7) Changes in borrowings and debt securities for the six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022				June 30, 2021
Beginning balance		W	80,529,513				69,724,581
Cash flow			17,660,538				3,678,242
Effect of exchange rate fluctuations			1,106,835				447,654
Others			(19,572	)			80,992
Ending balance		W	99,277,314				73,931,469

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 W124,338 million and W56,952 million respectively, as expense for the six-month periods ended June 30, 2022 and 2021. 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 W972 million and W836 million respectively, as expense for the six-month periods ended June 30, 2022 and 2021. The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2) Right-of-use assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Acquisition cost				Accumulated depreciation				Book value
Land		W	814,473				(192,276	)			622,197
Buildings			120,429				(48,002	)			72,427
Structures			28,884				(5,944	)			22,940
Machinery			1,642				(823	)			819
Ships			4,167,438				(1,359,958	)			2,807,480
Vehicles			36,498				(21,249	)			15,249
Others (*)			2,731,267				(2,398,364	)			332,903
		W	7,900,631				(4,026,616	)			3,874,015

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

In millions of won		December 31, 2021
		Acquisition cost				Accumulated depreciation				Book value
Land		W	814,795				(162,000	)			652,795
Buildings			106,823				(43,939	)			62,884
Structures			26,374				(5,226	)			21,148
Machinery			1,308				(743	)			565
Ships			4,217,735				(1,188,516	)			3,029,219
Vehicles			30,375				(16,757	)			13,618
Others (*)			2,650,728				(2,371,560	)			279,168
		W	7,848,138				(3,788,741	)			4,059,397

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

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

24. Lease, Continued

(3) Changes in right-of-use assets for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Increase				Depreciation				Decrease				Others				Ending balance
Land		W	652,795				886				(30,750	)			—				(734	)			622,197
Buildings			62,884				18,610				(12,747	)			(272	)			3,952				72,427
Structures			21,148				2,609				(817	)			—				—				22,940
Machinery			565				334				(80	)			—				—				819
Ships			3,029,219				—				(199,039	)			—				(22,700	)			2,807,480
Vehicles			13,618				8,286				(4,426	)			(2	)			(2,227	)			15,249
Others			279,168				64,124				(22,613	)			—				12,224				332,903
		W	4,059,397				94,849				(270,472	)			(274	)			(9,485	)			3,874,015
In millions of won		December 31, 2021
		Beginning balance				Increase				Depreciation				Decrease				Others				Ending balance
Land		W	706,579				7,312				(57,231	)			—				(3,865	)			652,795
Buildings			47,222				22,336				(25,780	)			(1,469	)			20,575				62,884
Structures			20,486				2,198				(1,536	)			—				—				21,148
Machinery			695				—				(130	)			—				—				565
Ships			3,437,363				9,694				(411,291	)			—				(6,547	)			3,029,219
Vehicles			13,525				9,583				(8,162	)			(7	)			(1,321	)			13,618
Others			316,296				27,090				(54,435	)			(10,311	)			528				279,168
		W	4,542,166				78,213				(558,565	)			(11,787	)			9,370				4,059,397

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

24. Lease, Continued

(4) Lease liabilities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Less than 1 year		W	656,648				620,121
1 ~ 5 years			2,162,259				2,158,145
More than 5 years			2,166,565				2,150,722
			4,985,472				4,928,988
Less: Discount			(535,347	)			(518,485	)
Present value of lease payment		W	4,450,125				4,410,503

(5) The details of the liquidity classification of lease liabilities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Current lease liabilities		W	626,165				583,558
Non-current lease liabilities			3,823,960				3,826,945
		W	4,450,125				4,410,503

(6) Changes in lease liabilities for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	4,410,503				91,310				(359,319	)			46,981				260,650				4,450,125

In millions of won		December 31, 2021
		Beginning balance				Increase				Decrease				Interest expenses				Others (*)				Ending balance
Lease liabilities		W	4,621,096				73,090				(665,687	)			93,651				288,353				4,410,503

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

24. Lease, Continued

(7) Details of expense relating to lease contracts as lessee for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Depreciation of right-of-use assets		W	135,429				270,472				142,679				289,691
Interest expenses of lease liabilities			24,617				46,981				23,513				47,047
Lease expenses for short-term leases			68,517				124,338				51,035				56,952
Lease expenses for leases of low-value assets			468				972				413				836
Variable lease payments			14,353				54,695				6,865				10,596
		W	243,384				497,458				224,505				405,122

(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 W539,325 million and W437,478 million, for the six-month periods ended June 30, 2022 and 2021, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 129 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 six-month periods ended June 30 2022 and 2021 are as follows:

In millions of won

June 30, 2022

June 30, 2021

Three-month period ended

Six-month period ended

Three-month period ended

Six-month period ended

Finance income on the net investment in the lease

W

30,784

60,388

27,459

55,627

(3) Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Less than 1 year		W	189,135				172,528
1 ~ 2 years			174,982				163,937
2 ~ 3 years			171,027				158,933
3 ~ 4 years			167,701				156,450
4 ~ 5 years			171,459				155,068
More than 5 years			1,645,650				1,588,403
			2,519,954				2,395,319
Less: Unearned finance income			(1,242,838	)			(1,194,627	)
Net investment in the lease (*)		W	1,277,116				1,200,692

(*) Including the present value of unguaranteed residual value amounting to W22,337 million and W19,574 million, as of June 30, 2022 and December 31, 2021, 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 0.00% up to 17.10% per year as of June 30, 2022. (prior year : 0.00% ~ 16.83%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the six-month periods ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	768				990
Bad debt expense			226				—
Reversal of allowance of doubtful accounts			—				(222	)
Ending balance		W	994				768

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Net defined benefit asset		W	64,704				20,871
Net defined benefit obligations			1,335,436				1,675,741
Other long-term employee benefit obligations			2,951				3,417

(2) Principal assumptions used for actuarial valuation as of June 30, 2022 and December 31, 2021 are as follows:

		June 30, 2022		December 31, 2021
Discount rate		4.17% ~ 4.21%		2.51% ~ 2.60%
Future salary and benefit levels		4.28%		4.28%
Weighted average duration		9.12 years		10.39 years

(3) Details of expense relating to defined benefit plans for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Current service cost		W	120,927				241,512				127,820				256,449
Interest cost			28,207				55,656				22,302				44,108
Expected return on plan assets			(17,472	)			(35,136	)			(12,765	)			(25,661	)
		W	131,662				262,032				137,357				274,896

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

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Cost of sales		W	98,423				195,791				101,719				203,557
Selling and administrative expenses			19,727				39,243				21,666				43,380
Others (Construction-in-progress and others)			13,512				26,998				13,972				27,959
		W	131,662				262,032				137,357				274,896

In addition, for the six-month periods ended June 30, 2022 and 2021, employee benefit obligations expenses of W51,203 million and W33,380 million, respectively, are recognized as cost of sales, and W12,548 million and W5,615million, respectively, are recognized as selling and administrative expenses, and W7,018 million and W6,026 million, respectively, are recognized as construction-in-progress and others, relates to the Group’s defined contribution plans.

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June 30, 2022 and 2021 (Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Present value of defined benefit obligation from funded plans		W	4,104,336				4,564,417
Fair value of plan assets			(2,833,604	)			(2,909,547	)
Net liabilities incurred from defined benefit plans		W	1,270,732				1,654,870

(5) Changes in the present value of defined benefit obligations for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	4,564,417				4,570,614
Current service cost			241,512				524,942
Interest cost			55,656				91,877
Remeasurement component			(556,712	)			(345,755	)
Past service cost			—				5,483
Actual payments			(200,599	)			(282,794	)
Others			62				50
Ending balance		W	4,104,336				4,564,417

(6) Changes in the fair value of plan assets for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	2,909,547				2,670,832
Expected return			35,136				52,782
Remeasurement component			(7,588	)			(8,457	)
Contributions by the employers			70				317,707
Actual payments			(103,561	)			(123,317	)
Ending balance		W	2,833,604				2,909,547

In addition, gain on accumulated remeasurement component amounting to W318,886 million and gain on accumulated remeasurement component amounting to W98,844 million have been recognized as other comprehensive income or loss for the six-month period ended June 30, 2022 and for the year ended December 31, 2021, respectively.

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June 30, 2022 and 2021 (Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Equity instruments		W	266,886				344,002
Debt instruments			741,516				744,167
Bank deposits			499,783				407,809
Others			1,325,419				1,413,569
		W	2,833,604				2,909,547

For the six-month period ended June 30, 2022 and for the year ended December 31, 2021, actual returns on plan assets amounted to W27,548 million and W44,325 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Actuarial gain from changes in financial assumptions		W	(667,032	)			(258,194	)
Experience adjustments, etc.			110,320				(87,561	)
Expected return			7,588				8,457
		W	(549,124	)			(337,298	)

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

June 30, 2022 and 2021 (Unaudited)

26. Provisions

(1) Provisions as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Employment benefits
Provisions for employment benefits		W	1,109,762				—				1,048,939				—
Litigation
Litigation provisions			26,514				72,939				26,269				88,449
Decommissioning cost
Nuclear plants			—				19,651,541				—				19,461,461
Spent fuel			580,275				846,004				457,466				893,196
Radioactive waste			106,217				1,724,929				137,342				1,695,193
PCBs			—				98,354				—				103,665
Other recovery provisions			—				30,852				—				30,231
Others
Power plant regional support program			176,945				—				146,588				—
Transmission regional support program			177,057				—				250,288				—
Provisions for financial guarantee			23,849				53,499				21,032				59,809
Provisions for greenhouse gas emissions obligations			344,718				—				655,544				—
Others			135,663				111,602				102,408				169,420
		W	2,681,000				22,589,720				2,845,876				22,501,424

(2) Changes in provisions for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Increase in provision				Payment				Reversal				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	1,048,939				528,427				(467,606	)			—				2				1,109,762
Litigation
Litigation provisions			114,718				22,099				(35,317	)			(2,047	)			—				99,453
Decommissioning cost
Nuclear plants			19,461,461				216,069				(25,989	)			—				—				19,651,541
Spent fuel			1,350,662				212,476				(136,859	)			—				—				1,426,279
Radioactive waste			1,832,535				46,200				(47,589	)			—				—				1,831,146
PCBs			103,665				975				(6,286	)			—				—				98,354
Other recovery provisions			30,231				1,381				(54	)			(767	)			61				30,852
Others
Power plant regional support program			146,588				52,470				(22,113	)			—				—				176,945
Transmission regional support program			250,288				5,686				(78,917	)			—				—				177,057
Provisions for financial guarantee			80,841				749				(3,549	)			(693	)			—				77,348
Provisions for RPS			—				264,401				(258,147	)			(6,254	)			—				—
Provisions for greenhouse gas emissions obligations			655,544				104,761				(343,216	)			(72,371	)			—				344,718
Others			271,828				4,888				(23,239	)			(6,709	)			497				247,265
		W	25,347,300				1,460,582				(1,448,881	)			(88,841	)			560				25,270,720

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June 30, 2022 and 2021 (Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows, continued:

In millions of won		December 31, 2021
		Beginning balance				Increase in provision				Payment				Reversal				Others				Ending balance
Employment benefits
Provisions for employment benefits		W	1,024,574				1,048,569				(1,024,212	)			—				8				1,048,939
Litigation
Litigation provisions			113,002				67,443				(44,446	)			(15,763	)			(5,518	)			114,718
Decommissioning cost
Nuclear plants			16,974,884				2,545,803				(59,226	)			—				—				19,461,461
Spent fuel			1,354,001				452,063				(455,402	)			—				—				1,350,662
Radioactive waste			1,891,613				3,862				(51,666	)			(11,274	)			—				1,832,535
PCBs			119,019				2,182				(17,408	)			(128	)			—				103,665
Other recovery provisions			25,840				553				(169	)			—				4,007				30,231
Others
Power plant regional support program			144,272				49,596				(47,280	)			—				—				146,588
Transmission regional support program			96,895				306,409				(153,016	)			—				—				250,288
Provisions for financial guarantee			66,354				85,355				(72,109	)			—				1,241				80,841
Provisions for RPS			9,126				445,402				(430,344	)			(24,184	)			—				—
Provisions for greenhouse gas emissions obligations			393,121				547,911				(235,469	)			(2,174	)			(47,845	)			655,544
Others			314,535				104,416				(95,541	)			(40,139	)			(11,443	)			271,828
		W	22,527,236				5,659,564				(2,686,288	)			(93,662	)			(59,550	)			25,347,300

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June 30, 2022 and 2021 (Unaudited)

27. Government Grants

(1) Government grants as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Land		W	(23,473	)			(23,474	)
Buildings			(49,653	)			(52,122	)
Structures			(168,050	)			(172,021	)
Machinery			(134,937	)			(140,082	)
Vehicles			(1,515	)			(1,675	)
Equipment			(605	)			(149	)
Tools			(52	)			(64	)
Construction-in-progress			(134,566	)			(111,822	)
Investment properties			(23	)			(30	)
Software			(71	)			(91	)
Development expenditures			(3,423	)			(3,820	)
Intangible assets under development			(1,817	)			(7,326	)
Other intangible assets			(69	)			(71	)
		W	(518,254	)			(512,747	)

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June 30, 2022 and 2021 (Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Receipt				Acquisition				Offset the items of depreciation expense and         others				Disposal				Others				Ending balance
Cash		W	—				(29,128	)			—				—				—				29,128				—
Land			(23,474	)			—				—				—				1				—				(23,473	)
Buildings			(52,122	)			—				—				2,612				—				(143	)			(49,653	)
Structures			(172,021	)			—				—				4,768				536				(1,333	)			(168,050	)
Machinery			(140,082	)			—				—				8,675				184				(3,714	)			(134,937	)
Vehicles			(1,675	)			—				—				293				—				(133	)			(1,515	)
Equipment			(149	)			—				—				54				—				(510	)			(605	)
Tools			(64	)			—				—				12				—				—				(52	)
Construction-in-progress			(111,822	)			—				6,326				—				—				(29,070	)			(134,566	)
Investment properties			(30	)			—				—				—				—				7				(23	)
Software			(91	)			—				—				27				—				(7	)			(71	)
Development expenditures			(3,820	)			—				—				715				—				(318	)			(3,423	)
Intangible assets under development			(7,326	)			—				—				—				—				5,509				(1,817	)
Other intangible assets			(71	)			—				—				2				—				—				(69	)
		W	(512,747	)			(29,128	)			6,326				17,158				721				(584	)			(518,254	)

In millions of won		December 31, 2021
		Beginning balance				Receipt				Acquisition				Offset the items of depreciation expense and         others				Disposal				Others				Ending balance
Cash		W	—				(37,920	)			—				—				—				37,920				—
Land			(23,475	)			—				—				—				1				—				(23,474	)
Buildings			(57,231	)			—				—				5,174				—				(65	)			(52,122	)
Structures			(180,009	)			—				—				9,517				1,811				(3,340	)			(172,021	)
Machinery			(157,785	)			—				—				17,519				531				(347	)			(140,082	)
Vehicles			(632	)			—				(26	)			460				—				(1,477	)			(1,675	)
Equipment			(227	)			—				—				95				—				(17	)			(149	)
Tools			(239	)			—				—				209				—				(34	)			(64	)
Construction-in-progress			(79,126	)			—				5,027				—				—				(37,723	)			(111,822	)
Investment properties			(29	)			—				—				1				—				(2	)			(30	)
Software			(136	)			—				—				64				—				(19	)			(91	)
Development expenditures			(5,043	)			—				—				1,439				—				(216	)			(3,820	)
Intangible assets under development			(7,203	)			—				—				—				—				(123	)			(7,326	)
Other intangible assets			(75	)			—				—				4				—				—				(71	)
		W	(511,210	)			(37,920	)			5,001				34,482				2,343				(5,443	)			(512,747	)

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June 30, 2022 and 2021 (Unaudited)

28. Deferred Revenue

Deferred revenue for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 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		June 30, 2022				December 31, 2021
Beginning balance		W	10,356,555				9,868,189
Increase			723,494				1,149,578
Recognized as revenue			(351,527	)			(661,212	)
Ending balance		W	10,728,522				10,356,555

29. Non-financial Liabilities

Non-financial liabilities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Current				Non-current				Current				Non-current
Advance received		W	4,256,924				343,813				4,157,916				398,056
Unearned revenue			45,012				6,915				40,187				6,517
Deferred revenue			648,226				10,080,296				659,397				9,697,158
Withholdings			369,601				5,661				345,892				5,171
Others			1,452,473				94,528				1,262,941				109,462
		W	6,772,236				10,531,213				6,466,333				10,216,364

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June 30, 2022 and 2021 (Unaudited)

30. Contributed Capital

(1) Details of share capital as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won except share information

June 30, 2022

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, 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.

(2) Details in number of floating capital stock for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

Number of shares		June 30, 2022				December 31, 2021
Beginning balance			641,964,077				641,964,077
Ending balance			641,964,077				641,964,077

(3) Details of share premium as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Share premium		W	843,758				843,758

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June 30, 2022 and 2021 (Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Legal reserve (*)		W	1,604,910				1,604,910
Voluntary reserves			27,782,969				33,282,817
Retained earnings before appropriations			5,408,294				10,365,123
Retained earnings		W	34,796,173				45,252,850

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

(2) Details of voluntary reserves as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
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			21,965,520				27,465,368
Reserve for equalizing dividends			210,000				210,000
		W	27,782,969				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 six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	45,252,850				51,133,601
Loss for the year attributed to owners of the controlling company			(10,790,049	)			(5,309,187	)
Changes in equity method retained earnings			2,368				3,609
Remeasurements of defined benefit liability, net of tax			330,850				201,067
Transfer of gain or loss on valuation of financial assets at FVOCI			—				4,388
Dividends paid			—				(780,628	)
Issuance of shares of capital by subsidiaries and others			154				—
Ending balance		W	34,796,173				45,252,850

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June 30, 2022 and 2021 (Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(4) Dividends paid for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won

June 30, 2022

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

—

—

In millions of won

December 31, 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

(5) Changes in retained earnings of investments in associates and joint ventures for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	3,970				361
Changes			2,368				3,609
Ending balance		W	6,338				3,970

(6) Changes in remeasurement components related to defined benefit liability for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Beginning balance		W	98,844				(169,234	)
Changes			531,269				327,957
Income tax effect			(200,419	)			(126,890	)
Transfer to reserve for business expansion			(110,808	)			67,011
Ending balance		W	318,886				98,844

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June 30, 2022 and 2021 (Unaudited)

32. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interests) as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
Issuer		Hybrid bond		Issued date				Maturity				Yield (%)				June 30, 2022				December 31, 2021
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.

As these instruments have no contractual obligation to pay principal and interest, these instruments have been classified as equity (non-controlling interest) in the Group’s consolidated financial statements.

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June 30, 2022 and 2021 (Unaudited)

33. Other Components of Equity

(1) Other components of equity as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Other capital surplus		W	1,231,091				1,231,109
Accumulated other comprehensive income (loss)			444,559				(57,632	)
Other equity			13,294,973				13,294,973
		W	14,970,623				14,468,450

(2) Changes in other capital surplus for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022												December 31, 2021
		Gains on disposal of treasury stocks				Others				Subtotal				Gains on disposal of treasury stocks				Others				Subtotal
Beginning balance		W	387,524				843,585				1,231,109				387,524				836,581				1,224,105
Changes in consolidation scope			—				(551	)			(551	)			—				43				43
Issuance of share capital of subsidiary and others			—				1,048				1,048				—				(491	)			(491	)
Others			—				(515	)			(515	)			—				7,452				7,452
Ending balance		W	387,524				843,567				1,231,091				387,524				843,585				1,231,109

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June 30, 2022 and 2021 (Unaudited)

33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		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	(46,498	)			311,252				(325,170	)			2,784				(57,632	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			(20,442	)			—				—				—				(20,442	)
Shares in other comprehensive income of associates and joint ventures, net of tax			—				463,454				—				—				463,454
Foreign currency translation of foreign operations, net of tax			—				—				69,936				—				69,936
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				(10,757	)			(10,757	)
Ending balance		W	(66,940	)			774,706				(255,234	)			(7,973	)			444,559
In millions of won		December 31, 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			59,022				—				—				—				59,022
Shares in other comprehensive income of associates and joint ventures, net of tax			—				301,161				—				—				301,161
Foreign currency translation of foreign operations, net of tax			—				—				15,760				—				15,760
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				—				(19,610	)			(19,610	)
Others			(4,388	)			—				—				—				(4,388	)
Ending balance		W	(46,498	)			311,252				(325,170	)			2,784				(57,632	)

(4) Other equity as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
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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June 30, 2022 and 2021 (Unaudited)

34. Sales

Details of sales for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022
		Domestic								Overseas								Total
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
[Type of goods and services]
Sales of goods		W	14,715,159				30,629,009				174,590				298,536				14,889,749				30,927,545
Electricity			14,090,198				29,468,556				—				—				14,090,198				29,468,556
Heat supply			63,121				295,769				—				—				63,121				295,769
Others			561,840				864,684				174,590				298,536				736,430				1,163,220
Sales related to rendering of services			86,309				150,100				86,192				133,474				172,501				283,574
Sales related to construction services			53,466				85,413				235,199				344,046				288,665				429,459
Revenue related to transfer of assets from customers			177,120				351,527				—				—				177,120				351,527
		W	15,032,054				31,216,049				495,981				776,056				15,528,035				31,992,105
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	14,715,159				30,629,009				174,590				298,536				14,889,749				30,927,545
Performance obligations satisfied over time			316,895				587,040				321,391				477,520				638,286				1,064,560
		W	15,032,054				31,216,049				495,981				776,056				15,528,035				31,992,105
In millions of won		June 30, 2021
		Domestic								Overseas								Total
		Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended				Three- month period ended				Six- month period ended
[Type of goods and services]
Sales of goods		W	12,873,736				27,458,692				112,017				228,136				12,985,753				27,686,828
Electricity			12,673,633				26,967,154				—				—				12,673,633				26,967,154
Heat supply			22,928				125,520				—				—				22,928				125,520
Others			177,175				366,018				112,017				228,136				289,192				594,154
Sales related to rendering of services			50,997				105,119				43,939				87,492				94,936				192,611
Sales related to construction services			37,264				63,068				312,084				417,371				349,348				480,439
Revenue related to transfer of assets from customers			163,636				324,950				—				—				163,636				324,950
		W	13,125,633				27,951,829				468,040				732,999				13,593,673				28,684,828
[Timing of revenue recognition]
Performance obligations satisfied at a point in time		W	12,873,736				27,458,692				112,017				228,136				12,985,753				27,686,828
Performance obligations satisfied over time			251,897				493,137				356,023				504,863				607,920				998,000
		W	13,125,633				27,951,829				468,040				732,999				13,593,673				28,684,828

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June 30, 2022 and 2021 (Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six- month period ended				Three-month period ended				Six- month period ended
Salaries		W	277,279				548,138				272,753				541,141
Retirement benefit expense			24,710				51,791				24,297				48,995
Welfare and benefit expense			38,064				72,240				33,602				64,609
Insurance expense			4,535				11,787				2,399				6,719
Depreciation			57,336				110,428				40,001				107,871
Amortization of intangible assets			22,558				41,584				21,662				45,359
Bad debt expense			(10,343	)			(1,927	)			7,634				2,535
Commission			117,417				200,174				89,844				168,499
Advertising expense			5,317				18,970				6,028				12,551
Training expense			1,618				2,652				1,001				1,730
Vehicle maintenance expense			2,894				5,024				2,113				4,073
Publishing expense			808				1,688				816				1,675
Business promotion expense			839				1,611				745				1,451
Rent expense			9,241				18,396				9,539				15,951
Telecommunication expense			2,141				4,307				2,285				4,534
Transportation expense			263				504				195				377
Taxes and dues			83,341				93,443				61,516				71,178
Expendable supplies expense			2,606				5,138				1,710				3,479
Water, light and heating expense			4,541				9,687				2,265				6,078
Repairs and maintenance expense			42,880				64,492				25,286				33,767
Ordinary development expense			45,171				87,491				42,029				89,232
Travel expense			4,550				8,257				2,588				5,577
Clothing expense			1,760				1,906				1,916				2,808
Survey and analysis expense			300				514				241				407
Membership fee			522				1,122				475				956
Others			29,047				58,132				38,201				63,408
		W	769,395				1,417,549				691,141				1,304,960

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June 30, 2022 and 2021 (Unaudited)

36. Other Income and Expenses

(1) Other income for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Reversal of other provisions		W	1,915				4,271				4,400				6,581
Reversal of other allowance for doubtful accounts			—				—				79				79
Gains on government grants			70				145				70				198
Gains on assets contributed			104				255				6				2,911
Gains on liabilities exempted			1,002				1,160				1,625				1,722
Compensation and reparations revenue			14,801				30,476				20,055				53,719
Revenue from research contracts			4,411				6,237				1,788				2,066
Rental income			51,918				102,740				50,144				100,675
Others			24,685				28,910				10,969				21,094
		W	98,906				174,194				89,136				189,045

(2) Other expenses for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Compensation and reparations expenses		W	11				11				295				595
Accretion expenses of other provisions			119				642				747				1,111
Depreciation expenses on investment properties			125				226				363				725
Depreciation expenses on idle assets			917				1,807				878				1,854
Other bad debt expense			3,225				5,632				3,288				7,068
Donations			20,487				30,000				60,976				67,445
Others			16,678				52,487				4,235				11,140
		W	41,562				90,805				70,782				89,938

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June 30, 2022 and 2021 (Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Other gains
Gains on disposal of property, plant and equipment		W	70,935				77,975				13,128				22,274
Gains on disposal of intangible assets			132				132				—				—
Gains on foreign currency translation			22,684				34,169				—				6,606
Gains on foreign currency transactions			25,023				37,121				9,341				17,267
Gains on insurance proceeds			5,154				5,154				—				144
Others			89,248				145,544				66,230				127,998
Other losses
Losses on disposal of property, plant and equipment			(21,794	)			(51,770	)			(20,638	)			(29,058	)
Losses on disposal of intangible assets			(20	)			(39	)			—				(37	)
Impairment loss on property, plant and equipment			—				—				(3,315	)			(3,315	)
Impairment loss on intangible assets			(14	)			(14	)			—				—
Losses on foreign currency translation			(23,489	)			(26,336	)			(3,402	)			(4,167	)
Losses on foreign currency transactions			(62,162	)			(88,124	)			(7,595	)			(21,132	)
Others			(45,719	)			(83,681	)			(53,782	)			(97,102	)
		W	59,978				50,131				(33	)			19,478

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June 30, 2022 and 2021 (Unaudited)

38. Finance Income

Finance income for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Interest income		W	77,002				138,271				53,149				107,132
Dividends income			6,823				15,278				3,780				6,143
Gains on disposal of financial assets			167				1,107				1,813				2,393
Gains on valuation of financial assets at fair value through profit or loss			722				2,334				74				2,121
Gains on valuation of derivatives			688,158				827,682				49,687				371,556
Gains on transaction of derivatives			96,851				133,213				14,465				54,140
Gains on foreign currency translation			94,281				123,934				21,323				76,548
Gains on foreign currency transactions			12,979				16,569				4,148				8,272
Other finance income			118				319				129				991
		W	977,101				1,258,707				148,568				629,296

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June 30, 2022 and 2021 (Unaudited)

39. Finance Expenses

Finance expenses for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Interest expense		W	639,744				1,203,655				456,572				919,385
Losses on sale of financial assets			673				907				301				385
Losses on valuation of financial assets at fair value through profit or loss			2,700				13,838				2,758				4,817
Losses on valuation of derivatives			—				19,947				—				8,411
Losses on transaction of derivatives			17,222				28,769				10,601				26,113
Losses on foreign currency translation			934,843				1,240,706				—				513,301
Losses on foreign currency transactions			68,621				78,685				3,327				16,727
Losses on repayment of financial liabilities			—				15				10				10
Others			681				1,496				885				2,035
		W	1,664,484				2,588,018				474,454				1,491,184

Capitalization rates for the six-month periods ended June 30, 2022 and 2021 are 2.22%~2.88% and 2.11%~4.33%, respectively.

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June 30, 2022 and 2021 (Unaudited)

40. Income Taxes

Income tax expense 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 and previous periods because income tax benefit occurred.

41. Assets Held-for-Sale

Assets held-for-sale as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Land (*1,2)		W	31,766				2,907
Buildings (*1,2)			12,982				12,971
Structures (*1)			1				1
		W	44,749				15,879

(*1) The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Group, made a resolution to sell its old office building in Yongin-si, Gyeonggi-do during the year ended December 31, 2021, and reclassified the buildings, structures, and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

(*2) The board of directors of Korea Electric Power Corporation, the controlling company, made a resolution to sell the Uijeongbu substation during the six-month period ended June 30, 2022, and reclassified the buildings and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

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June 30, 2022 and 2021 (Unaudited)

42. Expenses Classified by Nature

Expenses classified by nature for the six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				14,666,067				14,666,067
Salaries			548,138				2,114,045				2,662,183
Retirement benefit expense			51,791				246,994				298,785
Welfare and benefit expense			72,240				257,982				330,222
Insurance expense			11,787				52,155				63,942
Depreciation			110,428				6,055,383				6,165,811
Amortization of intangible assets			41,584				36,049				77,633
Bad debt expense			(1,927	)			—				(1,927	)
Commission			200,174				148,451				348,625
Advertising expense			18,970				4,871				23,841
Training expense			2,652				4,879				7,531
Vehicle maintenance expense			5,024				4,829				9,853
Publishing expense			1,688				1,360				3,048
Business promotion expense			1,611				1,802				3,413
Rent expense			18,396				57,535				75,931
Telecommunication expense			4,307				5,066				9,373
Transportation expense			504				47,324				47,828
Taxes and dues			93,443				321,245				414,688
Expendable supplies expense			5,138				21,260				26,398
Water, light and heating expense			9,687				33,308				42,995
Repairs and maintenance expense			64,492				1,066,980				1,131,472
Ordinary development expense			87,491				225,978				313,469
Travel expense			8,257				40,075				48,332
Clothing expense			1,906				2,349				4,255
Survey and analysis expense			514				2,033				2,547
Membership fee			1,122				11,345				12,467
Power purchase			—				18,996,872				18,996,872
Others			58,132				451,589				509,721
		W	1,417,549				44,877,826				46,295,375

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June 30, 2022 and 2021 (Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the six-month periods ended June 30, 2022 and 2021 are as follows, continued:

In millions of won		June 30, 2021
		Selling and administrative expenses				Cost of sales				Total
Raw materials used		W	—				7,435,690				7,435,690
Salaries			541,141				2,100,271				2,641,412
Retirement benefit expense			48,995				236,937				285,932
Welfare and benefit expense			64,609				248,635				313,244
Insurance expense			6,719				51,636				58,355
Depreciation			107,871				5,736,474				5,844,345
Amortization of intangible assets			45,359				39,524				84,883
Bad debt expense			2,535				—				2,535
Commission			168,499				141,053				309,552
Advertising expense			12,551				3,229				15,780
Training expense			1,730				4,440				6,170
Vehicle maintenance expense			4,073				3,654				7,727
Publishing expense			1,675				1,415				3,090
Business promotion expense			1,451				1,578				3,029
Rent expense			15,951				75,022				90,973
Telecommunication expense			4,534				5,884				10,418
Transportation expense			377				15,288				15,665
Taxes and dues			71,178				316,854				388,032
Expendable supplies expense			3,479				20,319				23,798
Water, light and heating expense			6,078				18,710				24,788
Repairs and maintenance expense			33,767				1,068,637				1,102,404
Ordinary development expense			89,232				222,838				312,070
Travel expense			5,577				33,736				39,313
Clothing expense			2,808				2,888				5,696
Survey and analysis expense			407				1,688				2,095
Membership fee			956				7,741				8,697
Power purchase			—				9,309,438				9,309,438
Others			63,408				463,562				526,970
		W	1,304,960				27,567,141				28,872,101

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June 30, 2022 and 2021 (Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In won		June 30, 2022								June 30, 2021
Type		Three-month     period ended				Six-month     period ended				Three-month     period ended				Six-month     period ended
Basic earnings (loss) per share		W	(7,535	)			(16,808	)			(1,065	)			(941	)

(2) Profit (loss) for the years and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won except number of shares		June 30, 2022								June 30, 2021
Type		Three-month     period ended				Six-month     period  ended				Three-month     period ended				Six-month     period  ended
Net profit (loss) attributable to controlling interest		W	(4,837,192	)			(10,790,049	)			(683,950	)			(604,252	)
Profit (loss) used in the calculation of total basic earnings per share			(4,837,192	)			(10,790,049	)			(683,950	)			(604,252	)
Weighted average number of common shares			641,964,077				641,964,077				641,964,077				641,964,077

(3) Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and six-month periods ended June 30, 2022 and 2021 are as follows:

In number of shares		June 30, 2022								June 30, 2021
Type		Three-Month     period ended				Six-month      period ended				Three-month     period ended				Six-month     period  ended
The number of common shares issued at beginning of the year			641,964,077				641,964,077				641,964,077				641,964,077
Weighted average number of common shares			641,964,077				641,964,077				641,964,077				641,964,077

There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the three and six-month periods ended June 30, 2022 and 2021.

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June 30, 2022 and 2021 (Unaudited)

44. Risk Management

(1) Capital risk management

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

Details of the Group’s capital management accounts as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Total borrowings and debt securities		W	99,277,314				80,529,513
Cash and cash equivalents			3,090,752				2,635,238
Net borrowings and debt securities			96,186,562				77,894,275
Total equity			55,423,722				65,317,717
Debt to equity ratio			173.55	%			119.25	%

(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 is 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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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Group’s level of maximum exposure to credit risk as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022				December 31, 2021
Cash and cash equivalents		W	3,090,752				2,635,238
Financial assets at fair value through profit or loss (*1)			2,353,757				932,736
Derivative assets (trading)			884,117				443,027
Financial assets at fair value through other comprehensive income (debt securities)			491				491
Financial assets at amortized cost			36,978				25,273
Loans			985,410				909,071
Long-term/short-term financial instruments			1,235,743				1,728,508
Derivative assets (applying hedge accounting)			489,696				204,756
Trade and other receivables			10,271,517				10,029,276
Financial guarantee contracts (*2)			3,959,957				3,718,015

(*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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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won				June 30, 2022								December 31, 2021
Type		Accounts		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Future salary increases		Increase (decrease) in defined benefit obligation		W	388,341				(341,174	)			466,832				(407,554	)
Discount rate		Increase (decrease) in defined benefit obligation			(331,964	)			388,560				(422,290	)			499,571

Changes of employee benefits assuming a 1%p increase and decrease movements in discount rate on plan asset for the six-month periods ended June 30, 2022 and 2021 are W13,849 million and W12,911 million, respectively.

② Provisions

Changes in provisions due to movements in underlying assumptions as of June 30, 2022 and December 31, 2021 are as follows:

Type		Accounts		June 30, 2022				December 31, 2021
PCBs		Inflation rate			1.37	%			1.37	%
		Discount rate			1.88	%			1.88	%
Nuclear plants		Inflation rate			1.41	%			1.41	%
		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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won				June 30, 2022								December 31, 2021
Type		Accounts		0.1%p Increase				0.1%p Decrease				0.1%p Increase				0.1%p Decrease
Discount rate		PCBs		W	(172	)			173				(222	)			223
		Nuclear plants			(364,058	)			375,294				(369,540	)			381,026
		Spent fuel			(54,306	)			56,428				(51,430	)			53,438
Inflation rate		PCBs			173				(173	)			224				(224	)
		Nuclear plants			407,830				(396,037	)			403,420				(391,754	)
		Spent fuel			57,243				(55,166	)			54,210				(52,245	)

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and December 31, 2021 are as follows:

In thousands of foreign currencies		Assets								Liabilities
Type		June 30, 2022				December 31, 2021				June 30, 2022				December 31, 2021
AED			18,778				6,481				25,094				31,637
AUD			4,474				3,733				778,557				926,960
BDT			59,723				50,145				—				577
BWP			904				939				—				—
CAD			467				582				—				2,266
CHF			—				—				500,235				500,230
CZK			—				—				289				386
EGP			—				—				1,497				595
EUR			10,900				1,809				89,485				42,981
GBP			—				—				127				—
HKD			—				—				1,651,734				1,651,665
IDR			660,921				768,731				965,501				995,510
INR			1,710,320				1,715,900				483,812				342,833
JOD			1,161				1,852				206				118
JPY			369,211				697,747				59,155				153,383
KZT			1,510				1,510				—				—
MGA			4,415,029				4,262,857				443,827				475,807
MMK			210,335				210,335				—				—
MXN			—				—				47				—
MYR			8,093				1,964				—				—
PHP			341,540				164,167				19,702				104,245
PKR			467,929				200,844				237,281				74,423
RUB			—				—				3,878				—
SAR			1,153				2,615				—				—
SEK			—				—				—				449,167
THB			—				—				1,610				—
USD			1,436,349				1,381,441				14,193,107				12,023,085
UYU			153,474				90,930				4,653				3,097
VND			1,629,597				952,135				32,301				262,372
ZAR			41,815				31,971				—				—

A sensitivity analysis on the Group’s income for the years assuming a 10% increase and decrease in currency exchange rates as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
Type		10% Increase				10% Decrease				10% Increase				10% Decrease
Increase (decrease) of profit before income tax		W	(1,819,241	)			1,819,241				(1,439,185	)			1,439,185
Increase (decrease) of equity (*)			(1,819,241	)			1,819,241				(1,439,185	)			1,439,185

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

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of June 30, 2022 and December 31, 2021.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022, 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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won
Type		June 30, 2022				December 31, 2021
Short-term borrowings		W	1,770,623				391,897
Long-term borrowings			4,500,665				2,405,244
Debt securities			267,866				257,667
		W	6,539,154				3,054,808

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 six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
Type		1%p Increase				1%p Decrease				1%p Increase				1%p Decrease
Increase (decrease) of profit before income tax		W	(32,696	)			32,696				(30,548	)			30,548
Increase (decrease) of shareholder’s equity (*)			(32,696	)			32,696				(30,548	)			30,548

(*) 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

June 30, 2022 and 2021 (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 six-month periods ended June 30, 2022 and 2021 is as follows:

In millions of won		June 30, 2022								June 30, 2021
Type		1% Increase				1% Decrease				1% Increase				1% Decrease
Increase (decrease) of profit before income tax		W	294,686				(294,686	)			269,672				(269,672	)
Increase (decrease) of shareholder’s equity (*)			294,686				(294,686	)			269,672				(269,672	)

(*) 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 June 30, 2022 and December 31, 2021 in detail are as follows:

In millions of won		June 30, 2022
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	21,620,420				17,629,922				41,744,365				41,356,160				122,350,867
Lease liabilities			656,648				657,266				1,504,993				2,166,565				4,985,472
Trade and other payables			8,716,926				404,225				950,848				926,195				10,998,194
Financial guarantee contracts (*)			390,808				29,376				3,378,465				161,308				3,959,957
		W	31,384,802				18,720,789				47,578,671				44,610,228				142,294,490

In millions of won		December 31, 2021
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Borrowings and debt securities		W	15,833,589				11,229,657				28,663,693				36,223,543				91,950,482
Lease liabilities			620,121				636,724				1,521,421				2,150,722				4,928,988
Trade and other payables			7,569,869				777,017				725,231				667,304				9,739,421
Financial guarantee contracts (*)			435,729				—				3,105,599				176,687				3,718,015
		W	24,459,308				12,643,398				34,015,944				39,218,256				110,336,906

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of June 30, 2022 and December 31, 2021 are W77,348 million and W80,841 million, respectively.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

The following table shows the details of maturities of non-derivative financial liabilities as of June 30, 2022 and December 31, 2021. This table, based on the undiscounted cash flows of the non-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

The expected maturities for non-derivative financial assets as of June 30, 2022 and December 31, 2021 in detail are as follows:

In millions of won		June 30, 2022
Type		Less than 1 year				1~5 Years				More than 5 years				Other(*)				Total
Cash and cash equivalents		W	3,090,752				—				—				—				3,090,752
Financial assets at fair value through other comprehensive income			—				—				—				431,617				431,617
Financial assets at amortized cost			26,865				5,709				4,404				—				36,978
Loans			85,358				498,580				432,042				—				1,015,980
Long-term/short-term financial instruments			643,188				—				4,183				588,372				1,235,743
Financial assets at fair value through profit or loss			1,862,594				494				3,262				593,580				2,459,930
Trade and other receivables			8,038,951				1,355,686				887,217				—				10,281,854
		W	13,747,708				1,860,469				1,331,108				1,613,569				18,552,854

In millions of won		December 31, 2021
Type		Less than 1 year				1~5 Years				More than 5 years				Other(*)				Total
Cash and cash equivalents		W	2,635,238				—				—				—				2,635,238
Financial assets at fair value through other comprehensive income			—				—				—				435,107				435,107
Financial assets at amortized cost			15,422				9,840				11				—				25,273
Loans			88,396				443,146				407,584				—				939,126
Long-term/short-term financial instruments			1,278,014				171,636				286				278,572				1,728,508
Financial assets at fair value through profit or loss			360,833				346				3,130				668,555				1,032,864
Trade and other receivables			8,123,455				1,233,703				679,048				—				10,036,206
		W	12,501,358				1,858,671				1,090,059				1,382,234				16,832,322

(*) The maturities cannot be presently determined.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	—				—				—				—				—
Gross settlement
- Trading and others			(4,300	)			(11,261	)			(16,598	)			(366	)			(32,525	)
- Hedging			—				—				—				(23,946	)			(23,946	)
		W	(4,300	)			(11,261	)			(16,598	)			(24,312	)			(56,471	)
In millions of won		December 31, 2021
Type		Less than 1 year				1~2 Years				2~5 Years				More than 5 years				Total
Net settlement
- Trading		W	—				—				—				—				—
Gross settlement
- Trading and others			(6,628	)			(4,954	)			(33,635	)			(2,291	)			(47,508	)
- Hedging			(2,555	)			(638	)			(1,914	)			(23,704	)			(28,811	)
		W	(9,183	)			(5,592	)			(35,549	)			(25,995	)			(76,319	)

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 current market interest rates applied to similar financial instruments.

(i) Fair value and book value of financial assets and liabilities as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
Type		Book value				Fair value				Book value				Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income		W	431,617				431,617				435,107				435,107
Derivative assets (trading)			884,117				884,117				443,027				443,027
Derivative assets (applying hedge accounting)			489,696				489,696				204,756				204,756
Financial assets at fair value through profit or loss			2,459,930				2,459,930				1,032,864				1,032,864
		W	4,265,360				4,265,360				2,115,754				2,115,754
Assets carried at amortized cost
Financial assets at amortized cost		W	36,978				36,978				25,273				25,273
Loans and receivables			985,410				985,410				909,071				909,071
Trade and other receivables			10,271,517				10,271,517				10,029,276				10,029,276
Long-term financial instruments			592,555				592,555				450,494				450,494
Short-term financial instruments			643,188				643,188				1,278,014				1,278,014
Cash and cash equivalents			3,090,752				3,090,752				2,635,238				2,635,238
		W	15,620,400				15,620,400				15,327,366				15,327,366
Liabilities recognized at fair value
Derivative liabilities (trading)		W	43,243				43,243				56,256				56,256
Derivative liabilities (applying hedge accounting)			23,946				23,946				21,775				21,775
		W	67,189				67,189				78,031				78,031
Liabilities carried at amortized cost
Secured borrowings		W	111,970				111,970				176,358				176,358
Unsecured bond			88,517,947				83,092,047				73,881,671				69,803,043
Lease liabilities			4,450,125				4,450,125				4,410,503				4,410,503
Unsecured borrowings			10,647,397				11,035,942				6,471,484				5,938,613
Trade and other payables (*)			10,998,194				10,998,194				9,739,421				9,739,421
		W	114,725,633				109,688,278				94,679,437				90,067,938

(*) Excludes lease liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (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 June 30, 2022 and December 31, 2021 are as follows:

Type		June 30, 2022		December 31, 2021
Derivatives		(-) 0.28% ~ 6.85%		(-) 0.63% ~ 3.88%
Borrowings and debt securities		0.96% ~ 4.49%		(-) 0.30% ~ 4.38%
Leases		0.08% ~ 17.10%		0.00% ~ 16.83%

(iii) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.

Level 1:		Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2:		Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
Level 3:		Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	266,461				—				165,156				431,617
Derivative assets			—				1,373,813				—				1,373,813
Financial assets at fair value through profit or loss			—				2,453,708				6,222				2,459,930
		W	266,461				3,827,521				171,378				4,265,360
Financial liabilities at fair value
Derivative liabilities		W	—				67,189				—				67,189
In millions of won		December 31, 2021
Type		Level 1				Level 2				Level 3				Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income		W	273,826				—				161,281				435,107
Derivative assets			—				647,783				—				647,783
Financial assets at fair value through profit or loss			—				1,027,067				5,797				1,032,864
		W	273,826				1,674,850				167,078				2,115,754
Financial liabilities at fair value
Derivative liabilities		W	—				78,031				—				78,031

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

June 30, 2022 and 2021 (Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the six-month period ended June 30, 2022 and for the year ended December 31, 2021 are as follows:

In millions of won		June 30, 2022
		Beginning balance				Acquisitions				Reclassified category				Valuation				Disposal				Foreign currency translation and others				Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative		W	5,797				300				—				125				—				—				6,222
Financial assets at fair value through other comprehensive income
Unlisted securities			160,789				6,220				—				(185	)			—				(2,159	)			164,665
Debt securities			491				—				—				—				—				—				491
In millions of won		December 31, 2021
		Beginning balance				Acquisitions				Reclassified category				Valuation				Disposal				Foreign currency translation and others				Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative		W	5,692				—				—				105				—				—				5,797
Financial assets at fair value through other comprehensive income
Unlisted securities			163,889				8,929				—				(12,335	)			(13	)			320				160,790
Debt securities			—				500				—				—				—				(9	)			491

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

45. Service Concession Arrangements

(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 June 30, 2022 are as follows:

In millions of won
Type		Amounts
Less than 1 year		W	32,278
1 ~ 2 years			32,427
2 ~ 3 years			32,354
Over 3 years			572,266
		W669,325

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June 30, 2022 and 2021 (Unaudited)

46. Related Parties

(1) Related parties of the Group as of June 30, 2022 are as follows:

Type		Related party
Parent		Republic of Korea government
Subsidiaries (155 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., 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, 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 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, KOMIPO Development, LLC (formerly, 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., Yeongdeok Sunrise Wind Power Co., Ltd., KHNP Spain, S.L., UI Carbon-Neutrality Fund, KA Power Limited, Seobusambo highway photovoltaics Co., Ltd., Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)
Associates (93 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, Hansuwon KNP 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., 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., Chuncheon Green Energy Co., Ltd., Yeomsubong Wind Power Co., Ltd., Yeongyang Wind Power Corporation II, Haeparang Energy Co., Ltd., Saemangeum Sebit Power Plant Co., Ltd., Boulder Solar III, LLC, PlatformN. Co., Ltd., PT. Cirebon Energi Prasarana

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(1) Related parties of the Group as of June 30, 2022 are as follows, continued:

Type		Related party
Joint ventures (96 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 A.B., Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., 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 Co., Ltd., 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., Goheung New Energy Co., Ltd., Gunsan Land Solar Co., Ltd., CapMan Lynx SCA, SICAR, International Offshore Power Transmission Holding Company Limited, Eumseong Eco Park Co., Ltd.
Other		Korea Development Bank

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June 30, 2022 and 2021 (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 six-month periods ended June 30, 2022 and 2021 are as follows:

<Sales and Others>

In millions of won				Sales and others
Company name		Transaction type		June 30, 2022				June 30, 2021
<Associates>
Korea Gas Corporation		Electricity sales			W       100,911				48,774
GS Donghae Electric Power Co., Ltd.		Electricity sales			2,509				10,778
Dongducheon Dream Power Co., Ltd.		Electricity sales			4,613				8,565
Shin Pyeongtaek Power Co., Ltd.		Electricity sales			11,978				13,992
Hyundai Green Power Co., Ltd.		Electricity sales and design service			5,258				10,138
S-Power Co., Ltd.		Service			2,162				2,986
Korea Electric Power Industrial Development Co., Ltd.		Service			5,898				6,105
Korea Power Exchange		Service			10,438				10,958
Daeryun Power Co., Ltd.		Electricity sales			907				933
Goseong Green Power Co., Ltd.		Electricity sales			493,811				131,182
Gangwon Wind Power Co., Ltd.		Electricity sales			1,474				1,766
PT. Cirebon Electric Power		Others			14,046				9,503
Busan Green Energy Co., Ltd.		Electricity sales			9				32
Hyundai Eco Energy Co., Ltd.		Electricity sales			93				81
PT. Bayan Resources TBK					247,265				80,660
Samcheok Eco Materials Co., Ltd.		Electricity sales			272				297
SPC Power Corporation					2,690				13,177
Noeul Green Energy Co., Ltd.		Electricity sales			15				15
Gangneung Eco Power Co., Ltd.		Service			9,803				6,499
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 46 others)		Electricity sales			14,780				6,480
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales			1,172				1,150
KAPES, Inc.		Others			202				191
Daegu Green Power Co., Ltd.		Electricity sales			560				513
Daesan Green Energy Co., Ltd.		Electricity sales			155				299
Nawah Energy Company		Service			58,120				43,708
KEPCO SPC Power Corporation		Others			12,433				24,838
Amman Asia Electric Power Company		Others			9,659				5,044
Seokmun Energy Co., Ltd.		Service			863				1,034
Yeongam Solar Power Co., Ltd.		Electricity sales			174				159
Solaseado Solar Power Co., Ltd.		Electricity sales			911				—
Yeonggwang Wind Power Co., Ltd.		Electricity sales			467				438
Rabigh Electricity Company		Service			11,239				191
Kelar S.A.		Service			11,827				8,486
Cheongna Energy Co., Ltd.		Electricity sales			19,000				8,752
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales			926				903
Others (Busan Shinho Solar Power Co., Ltd. and 54 others)		Electricity sales			311,761				394,516
<Others>
Korea Development Bank		Electricity sales			1,910				1,987
		Interest income			1,084				491

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June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the six-month periods ended June 30, 2022 and 2021 are as follows, continued:

<Purchase and Others>

In millions of won				Purchase and others
Company name		Transaction type		June 30, 2022				June 30, 2021
<Associates>
Korea Gas Corporation		Electricity sales		W	5,449,469				2,258,103
GS Donghae Electric Power Co., Ltd.		Electricity sales			508,544				332,009
Dongducheon Dream Power Co., Ltd.		Electricity sales			891,595				296,912
Shin Pyeongtaek Power Co., Ltd.		Electricity sales			474,870				261,866
S-Power Co., Ltd.		Service			537,461				255,323
Korea Electric Power Industrial Development Co., Ltd.		Service			123,066				125,884
Korea Power Exchange		Service			48,405				42,705
Daeryun Power Co., Ltd.		Electricity sales			196,085				58,704
Goseong Green Power Co., Ltd.		Electricity sales			905,921				210,694
Gangwon Wind Power Co., Ltd.		Electricity sales			22,349				8,948
Busan Green Energy Co., Ltd.		Electricity sales			5,971				7,138
Hyundai Eco Energy Co., Ltd.		Electricity sales			15,193				8,850
PT. Bayan Resources TBK		Others			45,226				—
Samcheok Eco Materials Co., Ltd.		Electricity sales			7,055				4,616
Noeul Green Energy Co., Ltd.		Electricity sales			4,730				3,998
Others (YeongGwang Yaksu Wind Electric Co., Ltd. and 46 others)		Electricity sales			120,398				77,963
<Joint ventures>
Chun-cheon Energy Co., Ltd.		Electricity sales			253,277				140,058
KAPES, Inc.		Others			2,075				36,875
Daegu Green Power Co., Ltd.		Electricity sales			231,236				124,102
Daesan Green Energy Co., Ltd.		Electricity sales			37,994				52,188
Seokmun Energy Co., Ltd.		Service			29,191				21,198
Yeongam Solar Power Co., Ltd.		Electricity sales			23,615				4,947
Solaseado Solar Power Co., Ltd.		Electricity sales			16,919				18,205
Yeonggwang Wind Power Co., Ltd.		Electricity sales			15,338				8,732
Cheongna Energy Co., Ltd.		Electricity sales			78				62
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales			7,025				6,882
Others (Busan Shinho Solar Power Co., Ltd. and 54 others)		Electricity sales			93,005				37,595
<Others>
Korea Development Bank		Interest expenses			1,842				1,430
		Dividends			—				256,870

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June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won				Receivables								Payables
Company name		Type		June 30, 2022				December 31, 2021				June 30, 2022				December 31, 2021
<Associates>
Korea Gas Corporation		Trade receivables		W	7,636				10,015				—				—
		Non-trade receivables and others			—				187				—				—
		Trade payables			—				—				647,964				800,509
		Non-trade payables and others			—				—				660				759
Goseong Green Power Co., Ltd.		Trade receivables			1,543				495				—				—
		Non-trade receivables and others			77,084				76,855				—				—
		Trade payables			—				—				112,635				218,627
		Non-trade payables and others			—				—				376				59,987
Dongducheon Dream Power Co., Ltd.		Trade receivables			594				6,282				—				—
		Non-trade receivables and others			547				493				—				—
		Trade payables			—				—				114,613				114,613
GS Donghae Electric Power Co., Ltd.		Trade receivables			390				383				—				—
		Non-trade receivables and others			240				272				—				—
		Trade payables			—				—				75,478				113,529
		Non-trade payables and others			—				—				63				17
S-Power Co., Ltd.		Trade receivables			70				82				—				—
		Non-trade receivables and others			44				48				—				—
		Trade payables			—				—				67,602				91,277
		Non-trade payables and others			—				—				21				—
Shin Pyeongtaek Power Co., Ltd.		Trade receivables			1,728				1,788				—				—
		Non-trade receivables and others			1,068				3,116				—				—
		Trade payables			—				—				27,411				79,828
		Non-trade payables and others			—				—				233				99
Daeryun Power Co., Ltd.		Trade receivables			146				213				—				—
		Trade payables			—				—				21,811				21,362
Busan Green Energy Co., Ltd.		Trade receivables			1				1				—				—
		Non-trade receivables and others			21,623				20,658				—				—
		Non-trade payables and others			—				—				772				—
Gunsan Bio Energy Co., Ltd.		Non-trade receivables and others			11,728				11,728				—				—
Taebaek Gadeoksan Wind Power Co., Ltd.		Non-trade receivables and others			21				119				—				—
		Trade payables			—				—				3,458				8,397
		Non-trade payables and others			—				—				—				1,571
Others (Korea Electric Power Industrial Development Co., Ltd. and 41 others)		Trade receivables			4,387				3,260				—				—
		Non-trade receivables and others			11,448				8,215				—				—
		Trade payables			—				—				14,206				12,321
		Non-trade payables and others			—				—				123,658				9,421

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June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of June 30, 2022 and December 31, 2021 are as follows, continued:

In millions of won				Receivables								Payables
Company name		Type		June 30, 2022				December 31, 2021				June 30, 2022				December 31, 2021
<Joint ventures>
Nawah Energy Company		Trade receivables		W	81,364				73,784				—				—
		Non-trade receivables and others			3,115				4,404				—				—
Chun-cheon Energy Co., Ltd.		Trade receivables			106				126				—				—
		Non-trade receivables and others			165				167				—				—
		Trade payables			—				—				37,025				41,410
Daegu Green Power Co., Ltd.		Trade receivables			—				71				—				—
		Non-trade receivables and others			55				55				—				—
		Trade payables			—				—				28,151				35,766
Dayone Energy Co., Ltd.		Trade receivables			52				52				—				—
		Non-trade receivables and others			10,439				13,297				—				—
		Trade payables			—				—				862				1,009
		Non-trade payables and others			—				—				9,358				11,306
Amman Asia Electric Power Company		Trade receivables			2,690				2,515				—				—
		Non-trade payables and others			—				—				21,704				21,976
Kelar S.A.		Trade receivables			3,493				5,195				—				—
		Non-trade receivables and others			19,781				16,126				—				—
Others (Daesan Green Energy Co., Ltd. and 38 others)		Trade receivables			48,332				6,967				—				—
		Non-trade receivables and others			16,606				11,584				—				—
		Trade payables			—				—				25,152				20,802
		Non-trade payables and others			—				—				6,350				2,291
<Others>
Korea Development Bank		Accrued interest income			128				154				—				—
		Non-trade receivables and others			29,770				420,732				—				—
		Non-trade payables and others			—				—				19,502				21,172
		Derivatives			98,938				59,139				—				—

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June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(5) Loans and others arising from related party transactions as of June 30, 2022 and December 31, 2021 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	29,481				—				—				2,482				31,963
		(Allowance for doubtful accounts)			(8,241	)			—				—				(3,277	)			(11,518	)
Associates		Xe-Pian Xe-Namnoy Power Co., Ltd.			21,456				—				—				1,944				23,400
Associates		PT Wampu Electric Power			13,000				263				(4,834	)			928				9,357
Associates		PT Cirebon Energi Prasarana			—				26,816				—				2,340				29,156
Associates		Gunsan Bio Energy Co., Ltd.			12,396				—				—				—				12,396
		(Allowance for doubtful accounts)			(12,396	)			—				—				—				(12,396	)
Associates		Bigeum Resident Photovoltaic Power Co., Ltd.			11,212				—				—				—				11,212
Associates		Daejung Offshore Wind Power Co., Ltd.			1,000				—				—				—				1,000
Associates		Bitgoel Eco Energy Co., Ltd.			19,349				4,878				—				—				24,227
Associates		Saemangeum Sebit Power Plant Co., Ltd			—				37,249				—				—				37,249
Joint ventures		Solaseado Solar Power Co., Ltd.			35,000				—				—				—				35,000
Joint ventures		Recursos Solares PV de Mexico II, S.A. de C.V.			6,134				707				—				602				7,443
Joint ventures		Horus Solar, S.A. de C.V.			16,514				—				—				1,495				18,009
Joint ventures		Sunmex Renovables, S.A. de C.V.			13,571				162				—				1,233				14,966
Joint ventures		Kelar S.A.			43,167				—				—				3,910				47,077
Joint ventures		DE Energia SpA			6,791				—				—				615				7,406
Joint ventures		Daehan Wind Power PSC			13,674				—				—				1,239				14,913
Joint ventures		PT. Tanjung Power Indonesia			1,090				—				(1,114	)			24				—
Joint ventures		Bitsolar Energy Co., Ltd.			3,165				—				—				—				3,165
Joint ventures		Daesan Green Energy Co., Ltd.			—				3,514				—				—				3,514
Joint ventures		Nghi Son 2 Power LLC			—				185,306				—				5,202				190,508
Joint ventures		Pulau Indah Power Plant Sdn. Bhd.			—				4,368				—				77				4,445
Joint ventures		Guadalupe Solar SpA			3,360				—				(104	)			295				3,551
Joint ventures		Foresight Iberian Solar Group Holding, S.L.			59,333				2,095				—				346				61,774
Joint ventures		Capman Lynx SCA, SICAR			29,770				—				—				1,001				30,771
				W	318,826				265,358				(6,052	)			20,456				598,588

(6) Borrowings arising from related party transactions as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won
Related parties		Type		Beginning balance				Borrowings				Repayment				Others				Ending balance
Korea Development Bank		Facility		W	98,020				56,469				(60,370	)			9,024				103,143
		Others			2,509				—				(188	)			—				2,321
		Operating funds			184,300				155,962				(230,000	)			40				110,302
		Syndicated Loan			14,530				—				(1,040	)			(1,123	)			12,367
		EBL and others			53,965				26,476				(58,854	)			6,176				27,763
				W	353,324				238,907				(350,452	)			14,117				255,896

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 2022 are as follows:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit				Creditor
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	4,349,360
Korea Electric Power Corporation		RE Holiday Holdings LLC		Performance guarantees (*10)		USD	222,077			EFS Renewables Holdings, LLC, CA-CIB and others
Korea Electric Power Corporation		RE Pioneer Holdings LLC		Performance guarantees		USD	106,873			EFS Renewables Holdings, LLC
Korea Electric Power Corporation		RE Barren Ridge 1 Holdings LLC		Performance guarantees (*10)		USD	68,838			Firstar Development, LLC
Korea Electric Power Corporation		Rabigh Electricity Company		Performance guarantees		SAR	1,215			Hana Bank
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	16,413			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
						USD	393			CFE Transmission
Korea Electric Power Corporation		Sunmex Renovables, S.A. de C.V.		Other performance guarantees		USD	9,078			CENACE
						MXN	3,666			SEMARNAT
Korea Electric Power Corporation		Pulau Indah Power Plant Sdn. Bhd.		Collateralized money invested		KRW	13,210			Malaysian Trustee Berhad
Korea Western Power Co., Ltd.		Cheongna Energy Co., Ltd.		Collateralized money invested		KRW	12,794			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Xe-Pian Xe-Namnoy Power Co., Ltd.		Collateralized money invested		KRW	110,363			Krung Thai Bank
				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	2,444			Korea Development Bank
Korea Western Power Co., Ltd.		Dongducheon Dream Power Co., Ltd.		Collateralized money invested (*5)		KRW	43,192			Kookmin Bank and others
				Debt guarantees		KRW	20,300			BNK Securities
Korea Western Power Co., Ltd.		PT. Mutiara Jawa		Collateralized money invested		KRW	3,435			Woori Bank
Korea Western Power Co., Ltd.		Haeng Bok Do Si Photovoltaic Power Co., Ltd.		Collateralized money invested		KRW	242			Nonghyup Bank
Korea Western Power Co., Ltd.		Shin Pyeongtaek Power Co., Ltd.		Collateralized money invested		KRW	113,581			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Haemodum Solar Co., Ltd.		Collateralized money invested		KRW	3,262			Nonghyup Bank
Korea Western Power Co., Ltd.		Muan Solar Park Co., Ltd.		Collateralized money invested		KRW	6,843			IBK and others
Korea Western Power Co., Ltd.		Anjwa Smart Farm & Solar City Co., Ltd.		Collateralized money invested		KRW	7,933			Hana Bank and others

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 2022 are as follows, continued

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit				Creditor
Korea Western Power Co., Ltd.		Seoroseoro Sunny Power Plant Co., Ltd.		Collateralized money invested		KRW	852			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		YuDang Solar Co., Ltd.		Collateralized money invested		KRW	509			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Hapcheon Floating Photovoltaic Power Plant Inc.		Collateralized money invested		KRW	7,168			Nonghyup Bank and others
Korea Western Power Co., Ltd.		Yeongwol Eco Wind Co., Ltd.		Collateralized money invested		KRW	3,169			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd.		Gurae Resident Power Co., Ltd.		Collateralized money invested		KRW	394			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd		Gunsan Land Solar Co., Ltd.		Collateralized money invested		KRW	21,943			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Western Power Co., Ltd		Eumseong Eco Park Co., Ltd.		Collateralized money invested		KRW	5,741			Kyobo Life Insurance Co., Ltd. and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Busan Shinho Solar Power Co., Ltd.		Collateralized money invested		KRW	6,053			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Seokmun Energy Co., Ltd.		Collateralized money invested		KRW	15,187			Kookmin Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Chun-cheon Energy Co., Ltd.		Collateralized money invested		KRW	26,577			Kookmin Bank and others
				Guarantees for supplemental funding (*1)		KRW	90,800
Korea East-West Power Co., Ltd.		Honam Wind Power Co., Ltd.		Collateralized money invested		KRW	4,319			Shinhan Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		GS Donghae Electric Power Co., Ltd.		Collateralized money invested		KRW	251,471			Korea Development Bank and others
Korea East-West Power Co., Ltd.		Yeonggwangbaeksu Wind Power Co., Ltd.		Collateralized money invested		KRW	2,914			Kookmin Bank and others
Korea East-West Power Co., Ltd.		Yeonggwang Wind Power Co., Ltd.		Collateralized money invested		KRW	18,926			KDB Capital Corporation and others
Korea East-West Power Co., Ltd.		Daesan Green Energy Co., Ltd.		Collateralized money invested		KRW	16,215			Korea Development Bank
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Taebaek Gadeoksan Wind Power Co., Ltd.		Collateralized money invested		KRW	15,126			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		PT. Tanjung Power Indonesia		Other guarantees		USD	3,150			PT. Adaro Indonesia
				Guarantees for supplemental funding (*1)			—			Sumitomo mitsui banking and others
				Collateralized money invested		KRW	88,581			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	42,990			JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.		DE Energia SpA		Collateralized money invested		KRW	9,729			Mirae Asset Daewoo Co., Ltd. and others
				Collateralized loans		USD	5,728
				Payment guarantees (*8)		USD	950			Hana Bank
Korea East-West Power Co., Ltd.		Bitsolar Energy Co., Ltd.		Collateralized money invested		KRW	352			Mirae Asset Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.		Cheongju Eco Park Co., Ltd.		Collateralized money invested		KRW	9,531			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	961			Shinhan Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Yangyang Wind Power Co., Ltd.		Collateralized money invested		KRW	11,106			Hana Bank and others
				Guarantees for supplemental funding (*1)			—
Korea East-West Power Co., Ltd.		Daewon Green Energy Co., Ltd.		Collateralized money invested		KRW	4,148			Hana Bank and others
				Guarantees for supplemental funding (*1)			—

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 2022 are as follows, continued

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit				Creditor
Korea East-West Power Co., Ltd.		Goheung New Energy Co., Ltd.		Collateralized money invested		KRW	3,746			Woori Bank and others
				Guarantees for supplemental funding (*1)			—
Korea Southern Power Co., Ltd.		KNH Solar Co., Ltd.		Collateralized money invested		KRW	2,534			Shinhan Bank and others
				Performance guarantees and guarantees for supplemental funding (*1)			—
Korea Southern Power Co., Ltd.		Daeryun Power Co., Ltd.		Collateralized money invested		KRW	25,206			Korea Development Bank and others
Korea Southern Power Co., Ltd.		Daegu Green Power Co., Ltd.		Collateralized money invested		KRW	25,314			Shinhan Bank and others
				Performance guarantees			—
Korea Southern Power Co., Ltd.		Kelar S.A.		Performance guarantees		USD	54,282			Hana Bank, MUFG
Korea Southern Power Co., Ltd.		Daehan Wind Power PSC		Performance guarantees		USD	1,500			Shinhan Bank
				Payment guarantees (*7)		USD	1,898			Hana Bank
Korea Southern Power Co., Ltd.		Pyeongchang Wind Power Co., Ltd.		Collateralized money invested		KRW	5,935			Woori Bank and Shinhan Bank and others
				Performance guarantees			—
Korea Southern Power Co., Ltd.		Taebaek Guinemi Wind Power Co., Ltd.		Collateralized money invested		KRW	3,777			IBK
Korea Southern Power Co., Ltd.		Samcheok Eco Materials Co., Ltd.		Payment guarantees (*2)			—			SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.		Solaseado Solar Power Co., Ltd.		Collateralized money invested		KRW	9,325			Kookmin Bank and others
Korea Southern Power Co., Ltd.		Naepo Green Energy Co., Ltd.		Collateralized money invested (*9)			—			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	10,534			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	3,766			Kookmin Bank
				Guarantees for supplemental funding (*1)			—
KOSPO Chile SpA		Kelar S.A.		Collateralized money invested		KRW	94,132			Export-Import Bank of Korea and others
KOSPO Chile SpA		Chester Solar I SpA		Collateralized money invested		KRW	1,014			IBK
KOSPO Chile SpA		Chester Solar IV SpA		Collateralized money invested			—			IBK
KOSPO Chile SpA		Chester Solar V SpA		Collateralized money invested		KRW	25			IBK
KOSPO Chile SpA		Diego de Almagro Solar SpA		Collateralized money invested		KRW	77			IBK
KOSPO Chile SpA		Laurel SpA		Collateralized money invested		KRW	318			IBK and others
Korea Midland Power Co., Ltd.		YeongGwang Yaksu Wind Electric Co., Ltd.		Collateralized money invested		KRW	313			IBK and others
Korea Midland Power Co., Ltd.		Hyundai Green Power Co., Ltd.		Collateralized money invested		KRW	118,890			Korea Development Bank and others
Korea Midland Power Co., Ltd.		PT. Cirebon Electric Power		Debt guarantees		USD	6,243			Mizuho Bank
Korea Midland Power Co., Ltd.		PT Cirebon Energi Prasarana		Performance guarantees		USD	2,293			PT. Perusahaan Listrik Negara
Korea Midland Power Co., Ltd.		PT Wampu Electric Power		Debt guarantees		USD	4,401			SMBC
Korea Midland Power Co., Ltd.		Green Energy Electricity Generation Co., Ltd.		Collateralized money invested		KRW	1,993			IBK
				Guarantees for supplemental funding and others (*1)			—			IBK and others
Korea Midland Power Co., Ltd.		Yaksu ESS Co., Ltd.		Collateralized money invested		KRW	820			IBK
Korea Midland Power Co., Ltd.		Namjeongsusang Solar Power Operation Co., Ltd.		Collateralized money invested		KRW	311			IBK
Korea Midland Power Co., Ltd.		Gwangbaek Solar Power Investment Co., Ltd.		Collateralized money invested		KRW	4,770			Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.		Muan Sunshine Solar Power Plant Co., Ltd.		Collateralized money invested		KRW	2,004			IBK
Korea Midland Power Co., Ltd.		Goesan Solar park Co., Ltd.		Collateralized money invested		KRW	2,269			IBK
Korea Midland Power Co., Ltd.		Bitgoel Eco Energy Co., Ltd.		Collateralized money invested		KRW	4,302			IBK and others
				Guarantees for supplemental funding (*1)			—
Korea Midland Power Co., Ltd.		Energyco Co., Ltd.		Collateralized money invested		KRW	1,853			Nonghyup Bank
Korea Midland Power Co., Ltd.		Jeju Gimnyeong Wind Power Co., Ltd.		Collateralized money invested		KRW	231			Nonghyup Bank
Korea Midland Power Co., Ltd.		Dongbu Highway Solar Co., Ltd.		Collateralized money invested		KRW	278			Nonghyup Bank

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 2022 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor		Principal obligor		Type of guarantees		Credit limit				Creditor
Korea Midland Power Co., Ltd.		Seobu Highway Solar Co., Ltd.		Collateralized money invested		KRW	278			Nonghyup Bank
Korea Midland Power Co., Ltd.		Yeongyang Wind Power Corporation II		Collateralized money invested		KRW	7,688			Korea Development Bank and Samsung Fire & Marine Insurance Co., Ltd.
Korea Midland Power Co., Ltd.		Haeparang Energy Co., Ltd.		Collateralized money invested		KRW	2,237			Templeton hana asset management Co. Ltd
Korea Midland Power Co., Ltd.				Guarantees for supplemental funding (*1)			—
Korea South-East Power Co., Ltd.		Dayone Energy Co., Ltd.		Collateralized money invested (*3)			—			IBK
				Guarantees for supplemental funding and others (*1,4)		KRW	76,800			NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.		RES Technology AD		Collateralized money invested		KRW	13,360			UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		ASM-BG Investicii AD		Collateralized money invested		KRW	11,715			UniCredit Bulbank and others
Korea South-East Power Co., Ltd.		Expressway Solar-light Power Generation Co., Ltd.		Guarantees for supplemental funding and others		KRW	4,232			Woori Bank
Korea South-East Power Co., Ltd.		Goseong Green Power Co., Ltd.		Collateralized money invested		KRW	276,767			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Gangneung Eco Power Co., Ltd.		Collateralized money invested		KRW	2,096			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		PND Solar Co., Ltd.		Collateralized money invested		KRW	1,169			IBK
Korea South-East Power Co., Ltd.		Hyundai Eco Energy Co., Ltd.		Collateralized money invested		KRW	6,459			Samsung Life Insurance and others
Korea South-East Power Co., Ltd.		Jaeun Resident Wind Power Plant Co., Ltd.		Collateralized money invested		KRW	2,254			IBK
Korea South-East Power Co., Ltd.		Chungsongmeon BongSan wind power Co., Ltd.		Collateralized money invested		KRW	3,552			Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.		Yeongam Solar Power Co., Ltd.		Collateralized money invested		KRW	9,617			Kookmin Bank and others
Korea South-East Power Co., Ltd.		Samsu Wind Power Co., Ltd.		Collateralized money invested		KRW	3,310			Shinhan Bank and others
Korea South-East Power Co., Ltd.		Saemangeum Heemang Photovoltaic Co., Ltd.		Collateralized money invested		KRW	12,579			Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Noeul Green Energy Co., Ltd.		Collateralized money invested		KRW	3,565			Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Busan Green Energy Co., Ltd.		Collateralized money invested		KRW	6,814			Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Go deok Clean Energy Co., Ltd.		Collateralized money invested		KRW	4,721			Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Cheong-Song Noraesan Wind Power Co., Ltd.		Collateralized money invested		KRW	4,026			Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Gwangyang Green Energy Co., Ltd.		Collateralized money invested		KRW	25,346			Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Gangneung Sacheon Fuel Cell Co., Ltd.		Collateralized money invested		KRW	4,324			Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.		Chun-cheon Green Energy Co., Ltd.		Collateralized money invested		KRW	3,112			Hana Bank and others
KEPCO Plant Service & Engineering Co., Ltd.		Incheon New Power Co., Ltd.		Collateralized money invested (*6)			—			Shinhan Bank
				Guarantees for supplemental funding and others (*1)			—

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

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of June 30, 2022 are as follows, continued:

(*2) 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 June 30, 2022, 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.

(*3) 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.

(*4) Pursuant to the guarantee agreement, the Group recognized other provisions of W16,119 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

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

(*6) 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.

(*7) The Group provided a payment guarantee to Daehan Wind Power PSC for opening L/C for Debt Service Reserve Account (DSRA).

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

(*9) 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.

(*10) 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

June 30, 2022 and 2021 (Unaudited)

46. Related Parties, Continued

(8) As of June 30, 2022, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of June 30, 2022 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
			2021~2026				114,230			USD	100,000				1.27	%			1.25	%			1,142.30
			2022~2027				123,710			USD	100,000				3.41	%			3.63	%			1,237.10
			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
			2022~2025				128,560			USD	100,000				3.37	%			4.13	%			1,285.60
			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
			2022~2025				252,360			USD	200,000				2.83	%			3.60	%			1,261.80

(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			2022.06.17				2022.07.13			W	12,900			USD	10,000			W	1,290.00
			2022.06.27				2022.07.26				19,403			USD	15,000				1,293.50
			2022.06.09				2022.07.05				21,381			USD	17,000				1,257.68
			2022.06.15				2022.07.05				3,873			USD	3,000				1,291.05
			2022.06.29				2022.07.13				18,101			USD	14,000				1,292.90

(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		June 30, 2022								June 30, 2021
Type		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Salaries		W	329				561				622				811
Employee benefits			13				21				5				13
		W	342				582				627				824

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June 30, 2022 and 2021 (Unaudited)

47. Statement of Cash Flows

(1) Significant non-cash transactions for the six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won
Transactions		June 30, 2022				June 30, 2021
Transfer from construction-in-progress to other assets		W	3,351,912				5,551,157
Recognition of asset retirement cost and related provision for decommissioning costs			151,272				150,313
Transfer from provision for disposal of used nuclear fuel to accrued expenses			136,859				240,670
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			7,056,890				10,198,066
Transfer from inventory to stored nuclear fuel			297,354				401,802
Transfer of right-of-use assets due to change in accounting policy and others			94,849				49,668

(2) Changes in liabilities incurred from financing activities for the six-month periods ended June 30, 2022 and 2021 are as follows:

In millions of won		June 30, 2022
										Non-cash changes
		Beginning balance				Cash flows				Increase				Effect of exchange rate fluctuations and others				Ending balance
Borrowings and debt securities		W	80,529,513				17,660,538				—				1,087,263				99,277,314
Lease liabilities			4,410,503				(312,338	)			91,310				260,650				4,450,125
		W	84,940,016				17,348,200				91,310				1,347,913				103,727,439

In millions of won		June 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				3,678,242				—				528,646				73,931,469
Lease liabilities			4,621,096				(322,048	)			43,484				133,698				4,476,230
		W	74,345,677				3,356,194				43,484				662,344				378,407,699

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
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	56,389				12,537				57,046				16,240
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)			50,151				37,638				46,616				34,102
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S			36,324				15,943				36,143				25,292
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S			—				—				40,010				5,540
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S			37,744				140				37,744				140
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others			57,554				17,523				56,860				34,576
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S			32,000				23,800				32,000				26,700
Advanced E-Type low-pressure electronic power meter 1,320,000 ea			—				—				65,972				23,262
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)			35,124				7,105				34,423				23,297
Purchase of cable (TR CNCE-W,1C,325SQ) 1,016,000M			64,415				4,559				66,581				40,254
Purchase of cable (TR CNCE-W,1C,600SQ) 485,000M			44,502				22,773				46,194				37,810
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 3,303,900M			84,137				56,249				87,382				83,628
Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments			202,795				134,359				188,338				168,456
Purchase of GIS (362KV, 6300A, 63KA) 19 – Shinyangsan S/S			31,464				16,964				31,464				31,464
Purchase of cable (PVC, 1C, 2500SQ) 57,868M and others (Goduk-Seoansung)			38,082				32,571				—				—
Purchase of cable (PVC, 1C, 2000SQ) 87,732M and others (Eulwangboonki)			33,464				33,464				—				—
GIS(362KV,6300A,63KA) 18 – Wolsung S/Y			32,090				32,090				—				—
Construction of Shin-Kori Units (#5,6)			9,800,424				2,872,946				9,800,424				3,479,667
Construction of Shin-Hanul Units (#1,2)			10,327,372				303,367				9,745,123				—
Other 32 contracts			831,563				613,396				792,485				620,593
Service of designing Seoul Combined Units (#1,2)			31,148				—				31,841				934
Purchase of furnace for construction of Shin-Seocheon thermal power plant			305,209				6,053				305,209				7,722
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant			105,226				6,301				105,226				6,301
Purchase of main machine for Jeju LNG combined			166,287				10,898				166,287				10,972
Purchase of equipments for the construction project of Boryeong indoor coal storage yard			317,350				305,800				—				—
Service of designing Taean Units (#9,10)			112,909				12,623				112,909				12,623
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			126,302				57,718				126,302				61,735
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant			216,552				79,876				214,053				138,244
Construction of Gimpo combined heat & power plant			161,546				104,421				130,015				86,323
Purchase of coal handling machine for construction of Samcheok Units (#1,2)			295,861				8,891				286,571				6,215
Purchase of main equipment for Namjeju			140,144				3				140,144				3
Purchase of main equipment for Shin-Sejong combined thermal power plant			234,392				186,465				234,392				200,122

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June 30, 2022 and 2021 (Unaudited)

48. Commitments for Expenditure, Continued

(2) As of June 30, 2022, 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		2022 ~ 2033		26,310 Ton U3O8
Transformed		2022 ~ 2030		19,012 Ton U
Enrichment		2022 ~ 2032		21,434 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 1,418 Ton U (contract periods: 2014 ~ 2023).

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Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of June 30, 2022 and December 31, 2021 are as follows:

In millions of won		June 30, 2022								December 31, 2021
		Number of cases				Claim amount				Number of cases				Claim amount
As the defendant			671			W	1,001,092				683			W	689,415
As the plaintiff			221				801,205				284				784,453

As of June 30, 2022, there are 2 ongoing litigations and 1 arbitration case that both defendant and plaintiff are the Group

As of June 30, 2022, 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 June 30, 2022.

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

1) 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 W6,663 million as litigation provisions in relation to the lawsuit as of June 30, 2022.

In addition to the abovementioned significant ongoing claims, there are 4 arbitration cases pertaining to the Group as of June 30, 2022 and the significant arbitration cases for the six-month period ended June 30, 2022 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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June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of June 30, 2022 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 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 the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees of mutual investment of USD 5,911 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.

4) The Group has provided USD 18,500 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.

5) 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 June 30, 2022.

6) 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.

7) The Group has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,588,165 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

8) The Group has provided the SMBC with the guarantees of mutual investment of USD 4,401 thousand, which is equivalent to the ownership interest of PT Mega Power Mandiri, in order to guarantee the expenses related to hydroelectric power business of Wampu, Indonesia.

9) The Group has provided Shinhan Bank a performance guarantee up to USD 65,250 thousand to guarantee the electricity purchase contract, on behalf of Morgan Stanley Capital Group Inc, in relation to photovoltaic power generation project in USA.

10) The Group has provided Primoris Renewable Energy, Inc. a performance guarantee up to USD 76,700 thousand for the implementation of the power plant construction for Concho Valley solar power project in the United States.

11) The Group has provided USD 54,000 thousand of a performance guarantee to PT. Cirebon Electro Power, for Cirebon coal-fired power plant operation and maintenance project in Indonesia.

12) The Group has provided Kookmin Bank a guarantee up to W20,000 million for the fulfillment of subscription obligation regarding Jeju wind power project.

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

14) 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.

15) 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.

16) 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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June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of June 30, 2022 are as follows, continued:

17) The Group has provided Shinhan Bank a debt guarantee up to USD 60,000 thousand (current amount: USD 60,000 thousand) to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.

18) The Group has provided EDF Energy service, LLC a performance guarantee up to USD 9,500 thousand to guarantee the electricity purchase contract in relation to photovoltaic power generation project in USA.

19) 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.

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June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of June 30, 2022 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			1,810,500
Limit amount available for CP		Hana Bank and others		KRW			3,150,000
Limit amount available for card		Hana Bank and others		KRW			47,504
		Banco de Oro		PHP			5,000
Loan limit		Kookmin Bank and others		KRW			2,061,488
		DBS Bank Ltd and others		USD			1,535,000
Certification of payment on payables from foreign country		Nonghyup Bank		USD			8,700
Certification of payment on L/C		Shinhan Bank and others		USD			1,043,980
		Hana Bank and others		EUR			48,122
		Shinhan Bank		JPY			707,337
Certification of Performance guarantee on contract		Seoul Guarantee Insurance and others		KRW			195,239
		First Abu Dhabi Bank and others		USD			878,026
		Korea Development Bank and others		JPY			620,000
		Hana Bank and others		EUR			3,965
		Shinhan Bank		INR			44,872
		Hana Bank		SAR			1,215
Certification of bidding		Hana Bank		USD			5,200
Advance payment bond, Warranty bond, Retention bond and others		Seoul Guarantee Insurance		KRW			49,874
		Hana Bank and others		USD			331,710
		Hana Bank		SAR			6,508
		Hana Bank and others		MXN			21,597
Others		Nonghyup Bank and others		KRW			539,091
		Export-Import Bank of Korea and others		USD			2,637,092
		Standard Chartered		AED			50
Inclusive credit		Hana Bank		KRW			8,000
		Hana Bank and others		USD			135,078
Trade finance		Export-Import Bank of Korea and others		USD			920,000

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June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments, Continued

(4) As of June 30, 2022, promissory notes and assets provided as collaterals or pledges to financial institutions by the Group are follows:

In millions of won and thousands of foreign currencies

Obligor

Creditor

Assets provided as security

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

293,400

Collateral for borrowings (*2)

Qatrana Electric Power Company

The Islamic Development Bank and others

Finance lease receivable and property, plant and equipment and others

JOD

236,570

Collateral for borrowings (*1)

KST Electric Power Company, 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

329,736

Collateral for borrowings (*2)

Jeongam Wind Power Co., Ltd.

KDB Capital Corporation and others

Cash and cash equivalents and others

KRW

221,631

Collateral for borrowings (*2)

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

(*2) As of June 30, 2022, 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 the Korea Energy Agency as of June 30, 2022. The Group has provided a promissory notes as a repayment guarantee.

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June 30, 2022 and 2021 (Unaudited)

49. Contingencies and Commitments, Continued

(5) The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of W68,554 million as of June 30, 2022, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of W777 million and depreciation on the idle assets of W1,807 million are recorded in other expenses for the six-month period ended June 30, 2022. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of June 30, 2022.

(6) Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in the Gaeseong Industrial District as of June 30, 2022. The book value of facility is W13,821 million and trade receivables related to the companies residing in Gaeseong industrial complex has been fully written-off during the six-month period ended June 30, 2022. The outcome of this event cannot be reasonably estimated as of June 30, 2022.

(7) In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of June 30, 2022.

(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 June 30, 2022, and the resulting effects have not been reflected in the consolidated financial statements.

(9) The Korea Institute of Energy Technology(KENTECH) was established in April, 2020, in accordance with the “Basic plan for the establishment of KENTECH (July, 2019)”. By the special law to create KENTECH, the Group, government, and local government may contribute to the fund. The Group will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.

(10) The ongoing armed conflict in Ukraine started in February 2022 and relevant sanctions against Russia imposed by the international community can impact not only sanctioned entities but also the entities doing business directly or indirectly with Ukraine or Russia and the entities exposed directly or indirectly to industries or economy of Russia or Ukraine. The Group cannot make reasonable estimation of the financial impact of the recent conflict in Ukraine on the future events.

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June 30, 2022 and 2021 (Unaudited)

50. Subsequent Events

(1) Subsequent to June 30, 2022, the Company and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd. and Korea Western Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows:

In millions of won and thousands of USD
Company		Type		Issue date				Maturity				Interest rate (%)				Amount
Korea Electric Power Corporation		#1227 Corporate bond			2022.07.04				2024.07.04				4.10			W	80,000
		#1228 Corporate bond			2022.07.04				2025.07.04				4.20				140,000
		#1229 Corporate bond			2022.07.04				2027.07.04				4.30				50,000
		#1230 Corporate bond			2022.07.07				2024.07.07				4.00				110,000
		#1231 Corporate bond			2022.07.07				2025.07.07				4.05				130,000
		#1232 Corporate bond			2022.07.07				2027.07.07				4.15				30,000
		#1233 Corporate bond			2022.07.12				2024.07.12				4.09				120,000
		#1234 Corporate bond			2022.07.12				2025.07.12				4.22				90,000
		#1235 Corporate bond			2022.07.12				2027.07.12				4.27				90,000
		#1236 Corporate bond			2022.07.15				2024.07.15				4.10				120,000
		#1237 Corporate bond			2022.07.15				2025.07.15				4.15				60,000
		#1238 Corporate bond			2022.07.15				2027.07.15				4.17				110,000
		#1239 Corporate bond			2022.07.20				2024.07.20				4.05				130,000
		#1240 Corporate bond			2022.07.20				2025.07.20				4.15				150,000
		#1241 Corporate bond			2022.07.20				2027.07.20				4.20				120,000
		#1242 Corporate bond			2022.07.25				2024.07.25				4.05				150,000
		#1243 Corporate bond			2022.07.25				2025.07.25				4.10				90,000
		#1244 Corporate bond			2022.07.25				2027.07.25				4.15				40,000
		#1245 Corporate bond			2022.07.27				2024.07.27				4.04				90,000
		#1246 Corporate bond			2022.07.27				2025.07.27				4.10				100,000
		#1247 Corporate bond			2022.07.27				2027.07.27				4.15				40,000
		#1248 Corporate bond			2022.08.02				2024.08.02				4.03				130,000
		#1249 Corporate bond			2022.08.02				2025.08.02				4.08				160,000
		#1250 Corporate bond			2022.08.02				2027.08.02				4.10				110,000
		#1251 Corporate bond			2022.08.04				2024.08.04				4.03				120,000
		#1252 Corporate bond			2022.08.04				2025.08.04				4.10				180,000
		#1253 Corporate bond			2022.08.04				2027.08.04				4.12				60,000
		#1254 Corporate bond			2022.08.09				2024.08.09				4.07				180,000
		#1255 Corporate bond			2022.08.09				2025.08.09				4.15				90,000
		#1256 Corporate bond			2022.08.09				2027.08.09				4.18				80,000
		#1257 Corporate bond			2022.08.12				2024.08.12				4.10				120,000
		#1258 Corporate bond			2022.08.12				2025.08.12				4.18				140,000
		#1259 Corporate bond			2022.08.12				2027.08.12				4.25				50,000
Korea Hydro & Nuclear Power Co., Ltd.		#11 Global bond			2022.07.27				2027.07.27				4.25			USD	700,000
		#67-1 Corporate bond			2022.07.29				2027.07.29				3.86				20,000
		#67-2 Corporate bond			2022.07.29				2042.07.29				3.89				20,000
		#67-3 Corporate bond			2022.07.29				2052.07.29				3.82				30,000
Korea South-East Power Co., Ltd.		#54-1 Corporate bond			2022.07.21				2024.07.21				4.08				40,000
		#54-2 Corporate bond			2022.07.21				2025.07.21				4.07				100,000
		#54-3 Corporate bond			2022.07.21				2042.07.21				4.04				50,000
		#54-4 Corporate bond			2022.07.21				2052.07.21				3.71				10,000
Korea Midland Power Co., Ltd.		#70-1 Unsecured     Corporate bond			2022.07.14				2024.07.14				3.89				60,000
		#70-2 Unsecured     Corporate bond			2022.07.14				2042.07.14				3.70				10,000
Korea Western Power Co., Ltd.		#54-1 Corporate bond			2022.07.19				2024.07.19				3.98				110,000
		#54-2 Corporate bond			2022.07.19				2025.07.19				3.97				50,000

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

June 30, 2022 and 2021 (Unaudited)

(2) On July 15, 2022, the board of directors of the controlling company decided to contribute W30,656 million for the construction of the campus of Korea Institute of Energy Technology.

(3) On August 10, 2022, the controlling company provided a debt guarantee of USD 207,000 thousand to the Export-Import Bank of Korea, in connection with UAE submarine transmission construction project of International Offshore Power Transmission Holding Company Limited.

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 six-month periods ended June 30, 2022 and 2021 to the operating profit or loss as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.

In millions of won		June 30, 2022								June 30, 2021
		Three-month period ended				Six-month period ended				Three-month period ended				Six-month period ended
Operating loss on the consolidated interim statements of comprehensive income (loss)		W	(6,516,348	)			(14,303,270	)			(752,903	)			(187,273	)
Add
Other income
Reversal of other provisions			1,915				4,271				4,400				6,581
Reversal of other allowance for doubtful accounts			—				—				79				79
Gains on government grants			70				145				70				198
Gains on assets contributed			104				255				6				2,911
Gains on liabilities exempted			1,002				1,160				1,625				1,722
Compensation and reparations revenue			14,801				30,476				20,055				53,719
Revenue from research contracts			4,411				6,237				1,788				2,066
Rental income			51,918				102,740				50,144				100,675
Others			24,685				28,910				10,969				21,094
Other gains
Gains on disposal of property, plant and equipment			70,935				77,975				13,128				22,274
Gains on disposal of intangible assets			132				132				—				—
Gains on foreign currency translation			22,684				34,169				—				6,606
Gains on foreign currency transactions			25,023				37,121				9,341				17,267
Gains on insurance proceeds			5,154				5,154				—				144
Others			89,248				145,544				66,230				127,998
Deduct
Other expenses
Compensation and reparations expense			(11	)			(11	)			(295	)			(595	)
Accretion expenses of other provisions			(119	)			(642	)			(747	)			(1,111	)
Depreciation expenses on investment properties			(125	)			(226	)			(363	)			(725	)
Depreciation expenses on idle assets			(917	)			(1,807	)			(878	)			(1,854	)
Other bad debt expense			(3,225	)			(5,632	)			(3,288	)			(7,068	)
Donations			(20,487	)			(30,000	)			(60,976	)			(67,445	)
Others			(16,678	)			(52,487	)			(4,235	)			(11,140	)
Other losses
Losses on disposal of property, plant and equipment			(21,794	)			(51,770	)			(20,638	)			(29,058	)
Losses on disposal of intangible assets			(20	)			(39	)			—				(37	)
Impairment loss on property, plant and equipment			—				—				(3,315	)			(3,315	)
Impairment loss on intangible assets			(14	)			(14	)			—				—
Losses on foreign currency translation			(23,489	)			(26,336	)			(3,402	)			(4,167	)
Losses on foreign currency transactions			(62,162	)			(88,124	)			(7,595	)			(21,132	)
Others			(45,719	)			(83,681	)			(53,782	)			(97,102	)
Adjusted operating loss		W	(6,399,026	)			(14,169,750	)			(734,582	)			(68,688	)

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