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Risk Management (Tables)
12 Months Ended
Dec. 31, 2022
Risk Management [Abstract]  
Summary of Capital Risk Management
Details of the Company’s capital management accounts as of December 31, 2021 and 2022 are as follows:
 
           
2021
   
2022
 
                     
           
In millions of won
 
Total borrowings and debt securities
            80,529,513       120,605,365  
Cash and cash equivalents
              2,635,238       3,234,780  
             
 
 
   
 
 
 
Net borrowings and debt securities
              77,894,275       117,370,585  
             
 
 
   
 
 
 
Total equity
              65,326,706       42,000,256  
             
 
 
   
 
 
 
Debt to equity ratio
              119.24     279.45
Summary of Maximum Exposure to Credit Risk
Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Company’s level of maximum exposure to credit risk as of December 31, 2021 and 2022 are as follows:
 
         
2021
   
2022
 
                   
         
In millions of won
 
Cash and cash equivalents
          2,635,238       3,234,780  
Financial assets at fair value through profit or loss(*1)
            932,736       3,610,408  
Derivative assets (trading)
            443,027       693,072  
Financial assets at fair value through other comprehensive income (debt securities)
            491       529  
Financial assets at amortized cost
            25,273       26,998  
Loans
            909,071       1,013,371  
Long-term/short-term financial instruments
            1,728,508       1,353,080  
Derivative assets (applying hedge accounting)
            204,756       324,952  
Trade and other receivables
            10,029,276       12,614,902  
Financial guarantee contracts(*2)
            3,718,015       3,776,060  
 
  (*1)
Equity investments held by the Company 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.
Summary of Sensitivity Analysis for Actuarial Assumptions
A sensitivity analysis of defined benefit obligation assuming a 1% increase and decrease movements in the actuarial valuation assumptions as of December 31, 2021 and 2022 are as follows:
 
             
2021
   
2022
 
Type
 
Accounts
       
1% Increase
   
1% Decrease
   
1%
 
Increase
   
1%
 
Decrease
 
                                   
             
In millions of won
 
Future salary increases
 
Increase (decrease) in
defined benefit obligation
 
 
    466,832       (407,554     321,930       (283,658
Discount rate
  Increase (decrease) in
defined benefit obligation
            (422,290     499,571       (289,229     337,033  
Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the years ended December 31, 2021 and 2022 are ₩25,649 million and ₩27,495 million, respectively.
Summary of Principal Assumptions on Provisions Valuation
Changes in provisions due to movements in underlying assumptions as of December 31, 2021 and 2022 are as follows:
 
Type
  
Accounts
  
2021
   
2022
 
PCBs
   Inflation rate      1.37     1.98
     Discount rate      1.88     1.92
Nuclear plants
   Inflation rate      1.41     2.25
     Discount rate      2.20     2.48
Spent fuel
   Inflation rate      2.93     2.93
     Discount rate      4.49     4.49
Radioactive waste
   Inflation rate      1.00     3.06
     Discount rate      1.87     2.62
Summary of Sensitivity Analysis for Provisions Assumptions
A sensitivity analysis of provisions assuming a 0.1% increase and decrease movements in the underlying assumptions as of December 31, 2021 and 2022 are as follows:
 
               
2021
   
2022
 
Type
  
Accounts
        
0.1% Increase
   
0.1% Decrease
   
0.1% Increase
   
0.1% Decrease
 
                                     
               
In millions of won
 
Discount rate
   PCBs            (222     223       (169     169  
     Nuclear plants              (369,540     381,026       (474,432     491,360  
     Spent fuel              (51,430     53,438       (54,330     56,453  
     Radioactive waste              (11,201     11,306       (15,089     15,260  
Inflation rate
   PCBs              224       (224     169       (169
     Nuclear plants              403,420       (391,754     515,262       (498,258
     Spent fuel              54,210       (52,245     57,269       (55,191
     Radioactive waste              10,366       (10,288     14,190       14,056  
Summary of Foreign Currency Risk
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities as of December 31, 2021 and 2022 are as follows:
 
 
  
Assets
 
  
Liabilities
 
Type
  
2021
 
  
2022
 
  
2021
 
  
2022
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
  
In thousands of foreign currencies
 
AED
     6,481        5,610        31,637        25,597  
AUD
     3,733        4,448        926,960        299,663  
BDT
     50,145        7,514        577        —    
BWP
     939        824        —          —    
EGP
     —          —          595        1,162  
CAD
     582        89        2,266        595  
CHF
     —          —          500,230        500,158  
CZK
     —          —          386        153  
EUR
     1,809        1,976        42,981        41,073  
GBP
     —          —          —          31  
HKD
     —          —          1,651,665        4,014,446  
IDR
     768,731        598,697        995,510        1,323,840  
INR
     1,715,900        1,592,380        342,833        312,978  
JOD
     1,852        1,146        118        14  
JPY
     697,747        568,263        153,383        1,719,846  
KZT
     1,510        1,510        —          —    
MGA
     4,262,857        2,856,045        475,807        347,403  
MMK
     210,335        199,518        —          —    
MYR
     1,964        38,177        —          —    
PHP
     164,167        68,592        104,245        7,493  
PKR
     200,844        533,816        74,423        219,341  
RUB
     —          —          —          2,881  
SAR
     2,615        1,713        —          9,710  
SEK
     —          —          449,167        449,211  
THB
     —          —          —          389  
USD
     1,381,441        1,484,614        12,023,085        13,599,643  
UYU
     90,930        128,674        3,097        3,106  
VND
     952,135        1,184,670        262,372        4,495  
ZAR
     31,971        43,461        —          —    
Summary of Sensitivity Analysis for Foreign Currency Exchange Rates
A sensitivity analysis on the Company’s income for the period assuming a 10% increase and decrease in currency exchange rates as of December 31, 2021 and 2022 are as follows:
 
           
2021
    
2022
 
Type
         
10% Increase
    
10% Decrease
    
10% Increase
    
10% Decrease
 
           
In millions of won
 
                                    
Increase (decrease) of profit before income tax
            (1,439,185      1,439,185        (1,703,053      1,703,053  
Increase (decrease) of equity(*)
              (1,439,185      1,439,185        (1,703,053      1,703,053  
 
  (*)
The effect on the shareholders’ equity excluding the impact of income taxes.
Summary of Interest Rate Risk
The Company’s borrowings and debt securities with floating interest rates as of December 31, 2021 and 2022 are as follows:
 
Type
         
2021
    
2022
 
                      
           
In millions of won
 
Short-term borrowings
            391,897        3,154,972  
Long-term borrowings
              2,405,244        5,388,073  
Debt securities
              257,667        269,101  
             
 
 
    
 
 
 
              3,054,808        8,812,146  
             
 
 
    
 
 
 
Summary of Sensitivity Analysis for Interest Rates
A sensitivity analysis on the Company’s long-term borrowings and debt securities assuming a 1% increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the years ended December 31, 2021 and 2022 are as follows:
 
          
2021
   
2022
 
Type
        
1% Increase
   
1% Decrease
   
1%
Increase
   
1%
Decrease
 
                                
          
In millions of won
 
Increase (decrease) of profit before income tax
           (30,548     30,548       (88,121     88,121  
Increase (decrease) of shareholder’s equity(*)
             (30,548     30,548       (88,121     88,121  
 
  (*)
The effect on the shareholders’ equity excluding the impact of income taxes.
Summary of Sensitivity Analysis for Electricity Rates
A sensitivity analysis on the Company’s income for the period assuming a 1% increase and decrease in price of electricity for the years ended December 31, 2021 and 2022 is as follows: 
 
 
 
 
 
 
2021
 
 
2022
 
Type
 
 
 
 
1% Increase
 
 
1% Decrease
 
 
1% Increase
 
 
1% Decrease
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In millions of won
 
Increase (decrease) of profit before income tax
          573,086       (573,086     661,990       (661,990
Increase (decrease) of shareholder’s equity(*)
            573,086       (573,086     661,990       (661,990
 
  (*)
The effect on the equity excluding the impact of income taxes.
Summary of Maturity Analysis for Non Derivative Financial Liabilities
The expected maturities for
non-derivative
financial liabilities as of December 31, 2021 and 2022 in detail are as follows:
 
         
2021
 
Type
       
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                     
         
In millions of won
 
Borrowings and debt securities
          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  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
            24,459,308       12,643,398       34,015,944       39,218,256       110,336,906  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
         
2022
 
Type
       
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                     
         
In millions of won
 
Borrowings and debt securities
          26,157,747       27,367,577       47,361,676       37,115,832       138,002,832  
Lease liabilities
            639,756       657,210       1,390,374       1,925,012       4,612,352  
Trade and other payables
            11,369,512       347,563       1,008,133       734,112       13,459,320  
Financial guarantee contracts(*)
            105,091       54,310       3,495,437       121,222       3,776,060  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
            38,272,106       28,426,660       53,255,620       39,896,178       159,850,564  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
  (*)
This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2021 and 2022 are ₩80,841 million and ₩67,240 million, respectively.
Summary of Maturity Analysis for Non Derivative Financial Assets
The expected maturities for
non-derivative
financial assets as of December 31, 2021 and 2022 in detail are as follows:
 
         
2021
 
Type
       
Less than

1 year
   
1~5 Years
   
More than

5 years
   
Other(*)
   
Total
 
                                     
         
In millions of won
 
Cash and cash equivalents
          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  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
            12,501,358       1,858,671       1,090,059       1,382,234       16,832,322  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
         
2022
 
Type
       
Less than

1 year
   
1~5 Years
   
More than

5 years
   
Other(*)
   
Total
 
                                     
         
In millions of won
 
Cash and cash equivalents
          3,234,780       —         —         —         3,234,780  
Financial assets at fair value through other comprehensive income
                    —         —         502,829       502,829  
Financial assets at amortized cost
            16,762       10,231       5       —         26,998  
Loans
            132,877       411,594       502,050       —         1,046,521  
Long-term/short-term financial instruments
            666,758       —         25       686,297       1,353,080  
Financial assets at fair value through profit or loss
            3,181,791       645       3,535       523,537       3,709,508  
Trade and other receivables
            10,464,191       1,083,593       1,080,831       —         12,628,615  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
            17,697,159       1,506,063       1,586,446       1,712,663       22,502,331  
           
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
  (*)
The maturities cannot be presently determined.
Summary of Maturity Analysis for Derivative, Undiscounted Cash Flows
Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2021 and 2022 are as follows:
 
          
2021
 
Type
        
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                      
          
In millions of won
 
Net settlement
                                                
—Trading
           —         —         —         —         —    
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
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
             (9,183     (5,592     (35,549     (25,995     (76,319
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
     
          
2022
 
Type
        
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                      
          
In millions of won
 
Net settlement
                                                               
—Trading
           —         —         —         —         —    
Gross settlement
                                                
—Trading and others
             (42,663     (15,225     (171,130     (84,924     (313,942
—Hedging
             —         (10,064     (5,176     (10,265     (25,505
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
             (42,663     (25,289     (176,306     (95,189     (339,447
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Maturity Analysis for Derivative Financial Assets
Derivative assets classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2021 and 2022 are as follows:
 
          
2021
 
Type
        
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                      
          
In millions of won
 
Net settlement
                                                
—Trading
           —         —         —         —         —    
Gross settlement
                                                
—Trading
             93,554       54,617       202,663       105,856       456,690  
—Hedging
             33,564       65,198       102,760       3,235       204,757  
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
             127,118       119,815       305,423       109,091       661,447  
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
     
          
2022
 
Type
        
Less than

1 year
   
1~2 Years
   
2~5 Years
   
More than

5 years
   
Total
 
                                      
          
In millions of won
 
Net settlement
                                                
—Trading
           —         —         —         —         —    
Gross settlement
                                                
—Trading
             861,621       160,938       (352,657     65,661       735,563  
—Hedging
             134,390       47,502       131,258       —         313,150  
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
              996,011         208,440        (221,399      65,661        1,048,713   
            
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Fair Value Measurement of Instruments Fair value and book value of financial assets and liabilities as of December 31, 2021 and 2022 are as follows:
 
           
2021
    
2022
 
Type
         
Book value
    
Fair value
    
Book value
    
Fair value
 
                                    
           
In millions of won
 
Assets recognized at fair value
                                            
Financial assets at fair value through other comprehensive income
            435,107        435,107        502,829        502,829  
Derivative assets (trading)
              443,027        443,027        693,072        693,072  
Derivative assets (hedge designated)
              204,756        204,756        324,952        324,952  
Financial assets at fair value through profit or loss
              1,032,864        1,032,864        3,709,508        3,709,508  
             
 
 
    
 
 
    
 
 
    
 
 
 
              2,115,754        2,115,754        5,230,361        5,230,361  
             
 
 
    
 
 
    
 
 
    
 
 
 
Assets carried at amortized cost
                                            
Financial assets at amortized cost
            25,273        25,273        26,998        26,998  
Loans and receivables
              909,071        909,071        1,013,371        1,013,371  
Trade and other receivables
              10,029,276        10,029,276        12,614,902        12,614,902  
Long-term financial instruments
              450,494        450,494        686,322        686,322  
Short-term financial instruments
              1,278,014        1,278,014        666,758        666,758  
Cash and cash equivalents
              2,635,238        2,635,238        3,234,780        3,234,780  
             
 
 
    
 
 
    
 
 
    
 
 
 
              15,327,366        15,327,366        18,243,131        18,243,131  
             
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities recognized at fair value
                                            
Derivative liabilities (trading)
            56,256        56,256        407,246        407,246  
Derivative liabilities (hedge designated)
              21,775        21,775        25,505        25,505  
             
 
 
    
 
 
    
 
 
    
 
 
 
              78,031        78,031        432,751        432,751  
             
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities carried at amortized cost
                                            
Secured borrowings
            176,358        176,358        102,368        102,368  
Unsecured bond
              73,881,671        69,803,043        105,185,189        96,846,056  
Lease liabilities
              4,410,503        4,410,503        4,163,143        4,163,143  
Unsecured borrowings
              6,471,484        5,938,613        15,282,193        15,280,693  
Trade and other payables(*)
              9,739,421        9,739,421        13,459,320        13,459,320  
Bank overdraft
              —          —          35,615        35,615  
             
 
 
    
 
 
    
 
 
    
 
 
 
              94,679,437        90,067,938        138,227,828        129,887,195  
             
 
 
    
 
 
    
 
 
    
 
 
 
 
  (*)
Excludes lease liabilities.
Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Liabilities
The discount rates used for calculating fair value as of December 31, 2021 and 2022 are as follows:
 
Type
  
2021
    
2022
 
Derivatives
     (-) 0.63% ~ 3.88%        0.60% ~ 7.93%  
Borrowings and debt securities
     (-) 0.30% ~ 4.38%        0.75% ~ 5.84%  
Finance lease
     0.00% ~ 16.83%        0.00% ~ 17.08%  
Summary of Fair Value Measurement of Liabilities
Fair values of financial instruments by hierarchy level as of December 31, 2021 and 2022 are as follows:
 
           
2021
 
Type
         
Level 1
    
Level 2
    
Level 3
    
Total
 
                                    
           
In millions of won
 
Financial assets at fair value
                                            
Financial assets at fair value through other comprehensive income
  
 
 
     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  
             
 
 
    
 
 
    
 
 
    
 
 
 
              273,826        1,674,850        167,078        2,115,754  
             
 
 
    
 
 
    
 
 
    
 
 
 
Financial liabilities at fair value
                                            
Derivative liabilities
            —          78,031        —          78,031  
             
 
 
    
 
 
    
 
 
    
 
 
 
     
           
2022
 
Type
         
Level 1
    
Level 2
    
Level 3
    
Total
 
                                    
           
In millions of won
 
Financial assets at fair value
                                            
Financial assets at fair value through other comprehensive income
  
 
 
     300,057        —          202,772        502,829  
Derivative assets
              —          1,018,024        —          1,018,024  
Financial assets at fair value through profit or loss
              —          3,703,179        6,329        3,709,508  
             
 
 
    
 
 
    
 
 
    
 
 
 
              300,057        4,721,203        209,101        5,230,361  
             
 
 
    
 
 
    
 
 
    
 
 
 
Financial liabilities at fair value
                                            
Derivative liabilities
            —          432,751        —          432,751  
             
 
 
    
 
 
    
 
 
    
 
 
 
Summary of Reconciliation of Changes in Fair Value Measurement, Assets
Changes of financial assets and liabilities which are classified as level 3 for the years ended December 31, 2021 and 2022 are as follows:
 
         
2021
 
         
Beginning
balance
   
Acquisitions
   
Reclassified
category
   
Valuation
   
Disposal
   
Foreign
currency
translation
and others
   
Ending
balance
 
         
In millions of won
 
Financial assets at fair value
                                                               
Financial assets at fair value through profit or loss Cooperative
 
 
 
    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  
     
         
2022
 
         
Beginning
balance
   
Acquisitions
   
Reclassified
category
   
Valuation
   
Disposal
   
Foreign
currency
translation
and others
   
Ending
balance
 
         
In millions of won
 
Financial assets at fair value
                                                               
Financial assets at fair value through profit or loss Cooperative
 
 
 
    5,797       400       —         132       —         —         6,329  
Financial assets at fair value through other comprehensive income
                                                               
Unlisted securities
            160,790       9,451       —         33,237       —         (1,235     202,243  
Debt securities
            491       —         —         38       —         —         529