XML 59 R46.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Taxes [Abstract] |
Income Taxes |
41. | Income Taxes
(1) | Income tax expense (benefit) for the years ended December 31, 2021, 2022 and 2023 are as follows:
|  |  |  |  | 2021 |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
Current income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment of income tax |  | ￦ |  |  |  |  | 357,767 |  |  |  | 563,681 |  |  |  | 621,957 |
Adjustment in respect of prior years due to change in estimate |  |  |  |  |  |  | 153,113 |  |  |  | 48,374 |  |  |  | (32,100 | )
Current income tax directly recognized in equity |  |  |  |  |  |  | (198,714 | ) |  |  | (350,348 | ) |  |  | 93,705 |
|  |  |  |  |  |  | 312,166 |  |  |  | 261,707 |  |  |  | 683,562 |
Deferred tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Generation and realization of temporary differences |  |  |  |  |  |  | (489,411 | ) |  |  | (564,801 | ) |  |  | (1,845,236 | )
Reclassified from equity to profit (loss) |  |  |  |  |  |  | — |  |  |  | (4,964 | ) |  |  | — |
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods |  |  |  |  |  |  | (43,653 | ) |  |  | (38,708 | ) |  |  | (15,244 | )
Changes in deferred tax on tax losses carryforwards |  |  |  |  |  |  | (1,641,823 | ) |  |  | (9,175,755 | ) |  |  | (1,650,017 | )
Tax credit carryforwards |  |  |  |  |  |  | (12,199 | ) |  |  | 34,019 |  |  |  | (16,734 | )
Amount due to change in tax rate or regulations |  |  |  |  |  |  | 18,931 |  |  |  | 73,991 |  |  |  | 5,836 |
|  |  |  |  |  |  | (2,168,155 | ) |  |  | (9,676,218 | ) |  |  | (3,521,395 | )
Income tax benefit |  | ￦ |  |  |  |  | (1,855,989 | ) |  |  | (9,414,511 | ) |  |  | (2,837,833) |
(2) | Reconciliation between actual income tax benefit and amount computed by applying the statutory tax rate to loss before income taxes for the years ended December 31, 2021, 2022 and 2023 are as follows:
|  |  |  |  | 2021 |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
L oss before income tax |  | ￦ |  |  |  |  | (7,071,570 | ) |  |  | (33,843,619 | ) |  |  | (7,553,977 | )
Income tax benefit computed at applicable tax rate (*1) |  |  |  |  |  |  | (1,944,682 | ) |  |  | (9,306,995 | ) |  |  | (1,936,840 | )
Adjustments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Effect of applying gradual tax rate |  |  |  |  |  |  | (10,362 | ) |  |  | (10,362 | ) |  |  | (10,362 | )
Effect of non-taxable income |  |  |  |  |  |  | (4,983 | ) |  |  | (9,471 | ) |  |  | (26,993 | )
Effect of non-deductible expenses |  |  |  |  |  |  | 78,814 |  |  |  | 39,663 |  |  |  | 39,411 |
Effect of tax losses that are not recognized as deferred tax asset |  |  |  |  |  |  | 1,351 |  |  |  | 19,275 |  |  |  | — |
Effects of tax credits and deduction |  |  |  |  |  |  | (43,931 | ) |  |  | (98,684 | ) |  |  | (53,724 | )
Reversal of unrecognized deferred tax asset, net |  |  |  |  |  |  | (43,641 | ) |  |  | (38,708 | ) |  |  | (15,244 | )
Effect of change in deferred tax due to change in tax rate |  |  |  |  |  |  | 18,931 |  |  |  | 393,416 |  |  |  | 211,736 |
Deduction of deferred tax assets |  |  |  |  |  |  | 73,887 |  |  |  | (85,514 | ) |  |  | 29,095 |
Deferred tax related to investments in subsidiaries, associates and joint ventures |  |  |  |  |  |  | (135,878 | ) |  |  | (375,064 | ) |  |  | (1,063,007 | )
Others, net |  |  |  |  |  |  | 1,392 |  |  |  | 9,559 |  |  |  | 20,195 |
|  |  |  |  |  |  | (64,420 | ) |  |  | (155,890 | ) |  |  | (868,893 | )
Adjustment in respect of prior years due to change in estimate |  |  |  |  |  |  | 153,113 |  |  |  | 48,374 |  |  |  | (32,100 | )
Income tax benefit |  | ￦ |  |  |  |  | (1,855,989 | ) |  |  | (9,414,511 | ) |  |  | (2,837,833 | )
Effective tax rate |  |  |  |  |  |  | (*2 | ) |  |  | (*2 | ) |  |  | (*2 | )
| (*1) | Applicable tax rates are 27.5%, 26.5% and 25.64% as of December 31, 2021, 2022 and 2023, respectively.
| (*2) | The effective tax rate for the year ended December 31, 2021, 2022 and 2023 is not calculated due to income tax benefit.
(3) | Income tax directly adjusted to equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2021, 2022 and 2023 are as follows:
|  |  |  |  | 2021 |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
Dividends of hybrid bond |  | ￦ |  |  |  |  | 4,736 |  |  |  | 4,149 |  |  |  | — |
Disposal of subsidiaries |  |  |  |  |  |  | — |  |  |  | 406 |  |  |  | — |
|  | ￦ |  |  |  |  | 4,736 |  |  |  | 4,555 |  |  |  | — |
(4) | Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2021, 2022 and 2023 are as follows:
|  |  |  |  | 2021 |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
Income tax recognized as other comprehensive income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
L oss on valuation of financial assets at fair value through other comprehensive income |  | ￦ |  |  |  |  | (9,753 | ) |  |  | (31,416 | ) |  |  | (10,624 | )
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax |  |  |  |  |  |  | 24,220 |  |  |  | 40,390 |  |  |  | 4,863 |
Remeasurement of defined benefit liability |  |  |  |  |  |  | (126,890 | ) |  |  | (322,489 | ) |  |  | 133,134 |
Investments in associates |  |  |  |  |  |  | (53,672 | ) |  |  | (66,677 | ) |  |  | (40,213 | )
Others |  |  |  |  |  |  | (37,355 | ) |  |  | 25,289 |  |  |  | 6,545 |
|  | ￦ |  |  |  |  | (203,450 | ) |  |  | (354,903 | ) |  |  | 93,705 |
(5) | Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2022 and 2023 are as follows:
|  |  |  |  | 2022 |
|  |  |  |  | Beginning balance |  |  | Amounts recognized in profit or loss |  |  | Amount recognized in other comprehensive income (loss) |  |  | Amounts recognized directly in equity |  |  | Ending balance |
|  |  |  |  | In millions of won |
Deferred tax on temporary differences |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee benefits |  |  | ￦ |  |  |  | 558,383 |  |  |  | (36,341 | ) |  |  | (322,489 | ) |  |  | — |  |  |  | 199,553 |
Cash flow hedge |  |  |  |  |  |  | (49,947 | ) |  |  | (46,188 | ) |  |  | 40,390 |  |  |  | 405 |  |  |  | (55,340 | )
Investments in subsidiaries, associates and joint ventures |  |  |  |  |  |  | (8,721,320 | ) |  |  | 410,310 |  |  |  | (66,677 | ) |  |  | — |  |  |  | (8,377,687 | )
Property, plant and equipment |  |  |  |  |  |  | (7,430,461 | ) |  |  | (111,177 | ) |  |  | — |  |  |  | — |  |  |  | (7,541,638 | )
Finance lease |  |  |  |  |  |  | (415,558 | ) |  |  | 9,919 |  |  |  | — |  |  |  | — |  |  |  | (405,639 | )
Intangible assets |  |  |  |  |  |  | (31,481 | ) |  |  | 6,550 |  |  |  | — |  |  |  | — |  |  |  | (24,931 | )
Financial assets at fair value through profit or loss |  |  |  |  |  |  | 12 |  |  |  | 3,445 |  |  |  | — |  |  |  | — |  |  |  | 3,457 |
Financial assets at fair value through other comprehensive income |  |  |  |  |  |  | 27,381 |  |  |  | 25,178 |  |  |  | (31,416 | ) |  |  | — |  |  |  | 21,143 |
Deferred revenue |  |  |  |  |  |  | 186,391 |  |  |  | (16,411 | ) |  |  | — |  |  |  | — |  |  |  | 169,980 |
Provisions |  |  |  |  |  |  | 6,494,314 |  |  |  | 595,030 |  |  |  | — |  |  |  | — |  |  |  | 7,089,344 |
Doubtful receivables |  |  |  |  |  |  | 801 |  |  |  | 1,673 |  |  |  | — |  |  |  | — |  |  |  | 2,474 |
Other finance liabilities |  |  |  |  |  |  | 31,410 |  |  |  | (14,142 | ) |  |  | — |  |  |  | 4,150 |  |  |  | 21,418 |
Gains or losses on foreign exchange translation |  |  |  |  |  |  | 91,411 |  |  |  | 42,905 |  |  |  | — |  |  |  | — |  |  |  | 134,316 |
Allowance for doubtful accounts |  |  |  |  |  |  | 64,264 |  |  |  | (6,029 | ) |  |  | — |  |  |  | — |  |  |  | 58,235 |
Accrued income |  |  |  |  |  |  | 10,002 |  |  |  | 6,612 |  |  |  | — |  |  |  | — |  |  |  | 16,614 |
Special deduction for property, plant and equipment |  |  |  |  |  |  | (224,127 | ) |  |  | 8,968 |  |  |  | — |  |  |  | — |  |  |  | (215,159 | )
Others |  |  |  |  |  |  | 1,445,827 |  |  |  | 16,456 |  |  |  | 25,289 |  |  |  | — |  |  |  | 1,487,572 |
|  |  |  |  |  |  | (7,962,698 | ) |  |  | 896,758 |  |  |  | (354,903 | ) |  |  | 4,555 |  |  |  | (7,416,288 | )
Deferred tax on unused tax losses and tax credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unused tax losses |  |  |  |  |  |  | 2,559,877 |  |  |  | 9,102,228 |  |  |  | — |  |  |  | — |  |  |  | 11,662,105 |
Excess of donation limit |  |  |  |  |  |  | 69,185 |  |  |  | 11,861 |  |  |  | — |  |  |  | — |  |  |  | 81,046 |
Tax credit |  |  |  |  |  |  | 134,690 |  |  |  | 15,719 |  |  |  | — |  |  |  | — |  |  |  | 150,409 |
|  |  |  |  |  |  | 2,763,752 |  |  |  | 9,129,808 |  |  |  | — |  |  |  | — |  |  |  | 11,893,560 |
|  |  | ￦ |  |  |  | (5,198,946 | ) |  |  | 10,026,566 |  |  |  | (354,903 | ) |  |  | 4,555 |  |  |  | 4,477,272 |
|  |  |  |  | 2023 |
|  |  |  |  | Beginning balance |  |  | Amounts recognized in profit or loss |  |  | Amount recognized in other comprehensive income (loss) |  |  | Amounts recognized directly in equity |  |  | Ending balance |
|  |  |  |  | In millions of won |
Deferred tax on temporary differences |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee benefits |  |  | ￦ |  |  |  | 199,553 |  |  |  | 6,597 |  |  |  | 133,134 |  |  |  | — |  |  |  | 339,284 |
Cash flow hedge |  |  |  |  |  |  | (55,340 | ) |  |  | 29,622 |  |  |  | 4,863 |  |  |  | — |  |  |  | (20,855 | )
Investments in subsidiaries, associates and joint ventures |  |  |  |  |  |  | (8,377,687 | ) |  |  | 1,300,263 |  |  |  | (40,213 | ) |  |  | — |  |  |  | (7,117,637 | )
Property, plant and equipment |  |  |  |  |  |  | (7,541,638 | ) |  |  | 534,361 |  |  |  | — |  |  |  | — |  |  |  | (7,007,277 | )
Finance lease |  |  |  |  |  |  | (405,639 | ) |  |  | 179,943 |  |  |  | — |  |  |  | — |  |  |  | (225,696 | )
Intangible assets |  |  |  |  |  |  | (24,931 | ) |  |  | 1,526 |  |  |  | — |  |  |  | — |  |  |  | (23,405 | )
Financial assets at fair value through profit or loss |  |  |  |  |  |  | 3,457 |  |  |  | (5,199 | ) |  |  | — |  |  |  | — |  |  |  | (1,742 | )
Financial assets at fair value through other comprehensive income |  |  |  |  |  |  | 21,143 |  |  |  | 16,839 |  |  |  | (10,624 | ) |  |  | — |  |  |  | 27,358 |
Deferred revenue |  |  |  |  |  |  | 169,980 |  |  |  | (13,580 | ) |  |  | — |  |  |  | — |  |  |  | 156,400 |
Provisions |  |  |  |  |  |  | 7,089,344 |  |  |  | (47,684 | ) |  |  | — |  |  |  | — |  |  |  | 7,041,660 |
Doubtful receivables |  |  |  |  |  |  | 2,474 |  |  |  | (74 | ) |  |  | — |  |  |  | — |  |  |  | 2,400 |
Other finance liabilities |  |  |  |  |  |  | 21,418 |  |  |  | (3,426 | ) |  |  | — |  |  |  | — |  |  |  | 17,992 |
Gains or losses on foreign exchange translation |  |  |  |  |  |  | 134,316 |  |  |  | (6,306 | ) |  |  | — |  |  |  | — |  |  |  | 128,010 |
Allowance for doubtful accounts |  |  |  |  |  |  | 58,235 |  |  |  | (2,492 | ) |  |  | — |  |  |  | — |  |  |  | 55,743 |
Accrued income |  |  |  |  |  |  | 16,614 |  |  |  | 17,321 |  |  |  | — |  |  |  | — |  |  |  | 33,935 |
Special deduction for property, plant and equipment |  |  |  |  |  |  | (215,159 | ) |  |  | 3,299 |  |  |  | — |  |  |  | — |  |  |  | (211,860 | )
Others |  |  |  |  |  |  | 1,487,572 |  |  |  | (277,889 | ) |  |  | 6,545 |  |  |  | — |  |  |  | 1,216,228 |
|  |  |  |  |  |  | (7,416,288 | ) |  |  | 1,733,121 |  |  |  | 93,705 |  |  |  | — |  |  |  | (5,589,462 | )
Deferred tax on unused tax losses and tax credit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unused tax losses |  |  |  |  |  |  | 11,662,105 |  |  |  | 1,676,638 |  |  |  | — |  |  |  | — |  |  |  | 13,338,743 |
Excess of donation limit |  |  |  |  |  |  | 81,046 |  |  |  | (34,724 | ) |  |  | — |  |  |  | — |  |  |  | 46,322 |
Tax credit |  |  |  |  |  |  | 150,409 |  |  |  | 52,665 |  |  |  | — |  |  |  | — |  |  |  | 203,064 |
|  |  |  |  |  |  | 11,893,560 |  |  |  | 1,694,569 |  |  |  | — |  |  |  | — |  |  |  | 13,588,129 |
|  |  | ￦ |  |  |  | 4,477,272 |  |  |  | 3,427,690 |  |  |  | 93,705 |  |  |  | — |  |  |  | 7,998,667 |
(6) | Deferred tax assets (liabilities) recognized in the consolidated statements of financial position as of December 31, 2022 and 2023 are as follows:
|  |  |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
Deferred tax assets |  | ￦ |  |  |  |  | 10,934,375 |  |  |  | 13,161,802 |
Deferred tax liabilities |  |  |  |  |  |  | (6,457,103 | ) |  |  | (5,163,135 | )
|  | ￦ |  |  |  |  | 4,477,272 |  |  |  | 7,998,667 |
The Company changed the average tax rate used to measure deferred tax for the current year in accordance with the Korea Accounting Standards Board’s inquiry response.
(7) | Details of deductible temporary differences, tax losses and unused tax credits for which no deferred tax assets were recognized as of December 31, 2022 and 2023 are as follows:
|  |  |  |  | 2022 |  |  | 2023 |
|  |  |  |  | In millions of won |
Deductible temporary differences and others |  | ￦ |  |  |  |  | 1,381,532 |  |  |  | 1,811,062 |
(8) | Pillar Two Model Rules
Pillar Two Model Rules legislation has been enacted or substantively enacted in certain jurisdictions where the Company operates. The legislation will be effective for the Company’s fiscal year beginning on January 1, 2024. The Company is currently assessing the potential exposure arising from the Pillar Two legislation. The assessment currently carried out is based on the tax filing documents for the recent period and the financial information for 2022 and 2023. In certain jurisdictions, the assessment is not yet completed since information required for the assessment is not collected enough. Based on the assessment carried out so far, the Company has identified potential exposure to Pillar Two income taxes on profits earned in Jordan, Laos and others where the expected Pillar Two effective tax rate is likely to be lower than 15%. Although the potential exposure is expected to arise from the constituent entities (mainly operating subsidiaries) in these jurisdictions, exposure may also arise from other jurisdictions where the assessment is not completed. The Company expects that the potential exposure to the Pillar Two income taxes is not significant. The Company continues to proceed the assessment and expects to complete the assessment in the first of half of 2024.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2023-01-01 -Section Disclosure -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=12&code=ifrs-tx-2023-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2023-03-23 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | kep_IncomeTaxesAbstract
Namespace Prefix: | kep_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration