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Contingencies and Commitments | 12 Months Ended
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Dec. 31, 2023
Contingencies and Commitments [Abstract] |
Contingencies and Commitments |
50. | Contingencies and Commitments
(1) | Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2022 and 2023 are as follows:
|  | 2022 |  |  | 2023 |
|  | Number of cases |  |  | Claim amount |  |  | Number of cases |  |  | Claim amount |
|  | In millions of won |
As the defendant |  |  | 653 |  |  | ￦ | 981,878 |  |  |  | 666 |  |  | ￦ | 805,227 |
As the plaintiff |  |  | 238 |  |  |  | 599,809 |  |  |  | 268 |  |  |  | 571,593 |
As of December 31, 2023, there are 3 ongoing litigations and 1 arbitration case between consolidated entities.
1) | The Company is the defendant against a number of claims. The following is ongoing claim pertaining to the Company which can potentially be significant:
There are multiple ongoing claims against the Company related to ordinary wages, requesting payment of unpaid wages. The Company believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. Accordingly, the Company recognized ￦39,229 million as litigation provisions in relation to the lawsuit as of December 31, 2023.
2) | In addition to the abovementioned significant ongoing claims, there are 15 arbitration cases pertaining to the Company as of December 31, 2023 and the significant arbitration cases for the year ended December 31, 2023 are as follows:
| i) | During the year ended December 31, 2022, the Company filed an arbitration application with Westinghouse Electric Company LLC to Korean Commercial Arbitration Board, requesting to confirm whether the Company is subject to nuclear power plant export control procedures or not. As of the December 31, 2023, the Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.
| ii) | During the year ended December 31, 2023, the Company filed an arbitration application to Korean Commercial Arbitration Board in relation to the insufficient operation performance of Sinseongnam Substation (345kV) STATCOM (reactive power compensation system for voltage stabilization in metropolitan area), but cannot reasonably estimate whether the inflow of economic benefits is probable as a result of the arbitration.
| iii) | During the year ended December 31, 2023, Hitachi Energy Sweden filed an arbitration against the Company regarding the request for additional payment due to the increase in capacity of some facilities and the withdrawal of liquidated damage in relation to Shin Young-ju and Shin Jecheon substation TCSC construction projects. The Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.
| iv) | During the year ended December 31, 2023, the Company filed a commercial arbitration to request payment of expenses such as monitoring vessel operating expenses for Jindo-Jeju high-voltage direct current (HVDC) connection project contract, but has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.
(2) | Guarantees of payments and commitments provided to other companies as of December 31, 2023 are as follows:
| 1) | The Company 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 December 31, 2023.
| 2) | The Company has outstanding borrowings with a limit of USD 264,800 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Company has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. In relation to this financial agreement, the Company is providing its entire shares in Mira Power Limited and business-related PP&E as collateral to the lenders.
| 3) | The Company has provided USD 6,085 thousand, equivalent to the shareholdings of PTBS Energy and PT Nusantara Hydro Alam, for third-party joint guarantee to Export-Import Bank of Korea, BNP Paribas and ING Bank, to guarantee the payment of debt related to hydroelectric power business of Tanggamus, Indonesia.
| 4) | The Company has provided USD 5,473 thousand for a debt guarantee to PT. Bank KB Bukopin, to guarantee the payment of debt in relation to hydroelectric power business of Wampu, Indonesia.
| 5) | The Company has provided RBC Community Investments Impact Renewables HoldCo-1, LLC a performance guarantee regarding weatherization in relation with tax investors up to USD 3,000 thousand for the of the power plant construction for Concho Valley solar power project in the United States.
| 6) | The Company has provided EUR 12,053 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.
| 7) | The Company 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.
| 8) | The Company has provided USD 54,000 thousand for a performance guarantee to PT. Cirebon Electric Power, to guarantee the Cirebon coal-fired power plant operation and maintenance project in Indonesia.
| 9) | The Company has provided USD 3,355 thousand for the guarantee of debt repayment reserves of PT. Cirebon Electric Power’s Indonesia Cirebon power plant project to Mizuho Bank, Ltd. through Nonghyup Bank.
| 10) | The Company 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.
| 11) | The Company has provided USD 30,000 thousand for a performance guarantee to Morgan Stanley Capital Group Inc., to guarantee the electricity purchase contract in relation to photovoltaic power generation project in USA.
| 12) | The Company 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.
| 13) | The Company has provided Kookmin Bank a debt guarantee up to USD 40,000 thousand to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.
| 14) | The Company 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.
| 15) | The Company has provided RBC Community Investments Impact Renewables HoldCo-1, LLC a guarantee for up to USD 62,800 thousand for the fulfillment of subscription obligation regarding Concho Valley solar power project in the United States.
| 16) | The Company has provided PT Perusahaan Listrik Negara a performance guarantee up to USD 2,280 thousand for the operation maintenance project in Indonesia siborpa.
| 17) | As of December 31, 2023, Gunsan Land Solar Co., Ltd., a joint venture of the Company, has built and is operating a 99 MW photovoltaic power generation facility in the public water reclamation area in Osikdo-dong, Gunsan-si, Jeollabuk-do. The Company is obligated to ensure that Gunsan Land Solar Co., Ltd. can finance up to 80% of the total project cost with investments from citizen and provide a 7% return on the citizen who invested after the construction period is over according to the Shareholders’ agreement. In addition, when the investment from citizen fails to reach the target percentage of 80% and additional debts are collected for fulfill the target percentage, the Company is obligated to provide Gunsan-si the amount of 7% return on uncollected citizen investments estimated to be collected less the amount of additional debts collected instead.
| 18) | The Company has provided joint guarantee for ￦1,641 million guarantee insurance contracted by Haetbyeotgil Sunlight Co., Ltd.
(3) | Lines of credit provided by financial institutions as of December 31, 2023 are as follows:
Commitments |  | Financial institutions |  | Currency |  | Credit limit |  |  | Used amount |
|  | In millions of won and thousands of foreign currencies |
Commitments on Bank-overdraft |  | Nonghyup Bank and others |  | KRW |  |  | 2,260,500 |  |  |  | 3,096 |
Limit amount available for CP |  | Hana Bank and others |  | KRW |  |  | 5,650,000 |  |  |  | 5,650,000 |
General Loan, etc. |  | Hana Bank and others |  | KRW |  |  | 4,400,000 |  |  |  | 4,350,000 |
Limit amount available for card |  | Hana Bank and others |  | KRW |  |  | 47,424 |  |  |  | 1,919 |
Loan limit |  | Korea Development Bank and others |  | KRW |  |  | 2,708,395 |  |  |  | 1,969,529 |
|  | DBS Bank and others |  | USD |  |  | 1,782,000 |  |  |  | USD 40,000 |
|  |  |  |  |  |  |  |  |  |  | KRW 200,000 |
Certification of payment on payables from foreign country Certification of payment on L/C |  | Nonghyup Bank |  | USD |  |  | 8,700 |  |  |  | 5,270 |
| Shinhan Bank and others |  | USD |  |  | 1,160,452 |  |  |  | 178,558 |
| Kookmin Bank and others |  | EUR |  |  | 42,688 |  |  |  | 42,688 |
| Shinhan Bank |  | JPY |  |  | 481,785 |  |  |  | 481,785 |
Certification of Performance guarantee on contract |  | Hana Bank and others |  | KRW |  |  | 145,855 |  |  |  | 125,289 |
|  | First Abu Dhabi Bank and others |  | USD |  |  | 921,138 |  |  |  | 788,313 |
|  | Korea Development Bank and others |  | JPY |  |  | 620,000 |  |  |  | 620,000 |
|  | Hana Bank |  | EUR |  |  | 12,106 |  |  |  | 12,106 |
|  | Hana Bank |  | INR |  |  | 44,872 |  |  |  | 44,872 |
|  | Hana Bank |  | OMR |  |  | 6,250 |  |  |  | 6,250 |
|  | Hana Bank |  | SAR |  |  | 4,151 |  |  |  | 4,151 |
Certification of bidding |  | Hana Bank |  | USD |  |  | 5,200 |  |  |  | — |
|  | Export-Import Bank of Korea |  | EUR |  |  | 10,000 |  |  |  | 10,000 |
Advance payment bond, Warranty bond, Retention bond and others |  | Seoul Guarantee Insurance Hana Bank and others |  | KRW USD |  |  | 57,670 813,839 |  |  |  | 57,670 763,596 |
|  | Saudi National Bank |  | SAR |  |  | 21,000 |  |  |  | 21,000 |
|  | Hana Bank and others |  | MXN |  |  | 21,597 |  |  |  | 20,027 |
Others (*) |  | Nonghyup Bank and others |  | KRW |  |  | 337,126 |  |  |  | KRW 19,943 |
|  |  |  |  |  |  |  |  |  |  | USD 20,832 |
|  |  |  |  |  |  |  |  |  |  | EUR 282 |
|  | Nonghyup Bank and others |  | USD |  |  | 316,327 |  |  |  | USD 60,073 |
|  |  |  |  |  |  |  |  |  |  | EUR 48,825 |
|  | StandardChartered |  | AED |  |  | 50 |  |  |  | 50 |
Secured loan of credit sales |  | Nonghyup Bank and others |  | KRW |  |  | 271,000 |  |  |  | — |
Inclusive credit |  | Hana Bank |  | KRW |  |  | 8,000 |  |  |  | 4,920 |
|  | Hana Bank and others |  | USD |  |  | 135,000 |  |  |  | USD 15,141 |
|  |  |  |  |  |  |  |  |  |  | INR 345,206 |
Equity Bridge Loan Guarantee |  | Export-Import Bank of Korea and others |  | USD |  |  | 1,764,555 |  |  |  | 1,372,546 |
Trade finance |  | DBS Bank and others |  | USD |  |  | 870,000 |  |  |  | — |
| (*) | As of December 31, 2023, the Company has entered into a credit extension agreement for derivatives transactions with Nonghyup Bank, Hana Bank, and Woori Bank as ancillary to currency swap transactions.
(4) | As of December 31, 2023, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows:
Obligor |  | Creditor |  | Assets provided as security |  | Currency |  | Amount |  |  | Description
|  | In millions of won and thousands of foreign currencies
Mira Power Limited |  | International Finance Corporation and others |  | Property, plant and equipment and others |  | USD |  |  | 264,800 |  |  | 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)
Jeongam Wind Power Co., Ltd. |  | KDB Capital Corporation and others |  | Cash and cash equivalents and others |  | KRW |  |  | 230,259 |  |  | 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 |  |  | 136,623 |  |  | Collateral for borrowings(*1)
KST Electric Power Company, S.A.P.I. de C.V. |  | 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)
K-SOLAR SHINAN Co., Ltd. |  | Kyobo Life Insurance Co., Ltd. and others |  | Property, plant and equipment and others |  | KRW |  |  | 329,736 |  |  | Collateral for borrowings(*2)
KOSPO Youngnam Power Co., Ltd. |  | Shinhan Bank and others |  | Cash and cash equivalents and others |  | KRW |  |  | 744,120 |  |  | Collateral for borrowings(*2)
Jeju Hanlim Offshore Wind Co., Ltd. |  | Kookmin Bank and others |  | Property, plant and equipment and others |  | KRW |  |  | 1,800 |  |  | Collateral for borrowings(*2)
Western Power Changgi Solar Co., Ltd. |  | Samsung Life Insurance and others |  | Property, plant and equipment and others |  | KRW |  |  | 58,500 |  |  | Collateral for borrowings(*2)
J Wind First, LLC |  | Woori Bank |  | Trade receivable and others |  | KRW |  |  | 55,000 |  |  | Collateral for borrowings (*2)
Chitose Solar Power Plant LLC |  | Korea Development Bank |  | Property, plant and equipment and others |  | USD |  |  | 134,289 |  |  | Collateral for borrowings(*1)
Mangilao Intermediate Holdings LLC |  | Mizuho Bank |  | Trade receivable and others |  | USD |  |  | 93,392 |  |  | Collateral for borrowings(*1)
(4) | As of December 31, 2023, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows, continued:
(*1) | This is based on the amount of loan commitment limit.
(*2) | As of December 31, 2023, the Company has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.
The Company has ￦1,197 million of project loans from the Korea Energy Agency as of December 31, 2023. The Company has provided a promissory note as a repayment guarantee.
(5) | The Company temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of ￦62,871 million as of September December 31, 2023, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of ￦1,494 million and depreciation on the idle assets of ￦3,683 million are recorded in other expenses for the year ended December 31, 2023. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Company is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of December 31, 2023.
(6) | As the government of the Republic of Korea announced the suspension of operation in Gaeseong Industrial District, it is uncertain if the Company can exercise the property rights for the Company’s facility in Gaeseong Industrial District as of December 31, 2023. The book value of facility is ￦12,123 million and trade receivables related to the companies residing in Gaeseong Industrial District have been fully written-off. As of December 31, 2023, the Company cannot make reasonable estimation on whether assets will be recovered or utilized in regular way related thereto.
(7) | As of December 31, 2023, the Company owns land at 6171-1 Nuri-ri, Yeongi-myeon, Sejong Special Self-Governing City as PP&E with limited ownership, and its book value is ￦ 64,371 million.
(8) | 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 Company, government, and local government may contribute to the fund. The Company will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.
(9) | 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 Company cannot make reasonable estimation of the financial impact of the recent conflict in Ukraine on the future events.

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