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Risk Management (Tables)
12 Months Ended
Dec. 31, 2023
Risk Management [Abstract]  
Summary of Capital Risk Management
Details of the Company’s capital management accounts as of December 31, 2022 and 2023 are as follows:
 
           
2022
   
2023
 
           
In millions of won
 
Total borrowings and debt securities
          120,605,365       133,631,830  
Cash and cash equivalents
        3,234,780       4,342,887  
     
 
 
   
 
 
 
Net borrowings and debt securities
        117,370,585       129,288,943  
     
 
 
   
 
 
 
Total equity
        42,000,256       37,264,750  
     
 
 
   
 
 
 
Debt to equity ratio
        279.45     346.95
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, 2022 and 2023 are as follows:
 
         
2022
   
2023
 
                   
         
In millions of won
 
Cash and cash equivalents
        3,234,780       4,342,887  
Financial assets at fair value through profit or loss(*1)
      3,610,408       2,590,228  
Derivative assets (trading)
      693,072       730,948  
Financial assets at fair value through other comprehensive income (debt securities)
      529       4,627  
Financial assets at amortized cost
      26,998       38,843  
Loans
      1,013,371       988,331  
Long-term/short-term financial instruments
      1,353,080       1,412,315  
Derivative assets (applying hedge accounting)
      324,952       269,446  
Trade and other receivables
      12,614,902       14,179,322  
Financial guarantee contracts(*2)
      3,776,060       4,399,189  
 
  (*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.
For the year ended December 31, 2023, 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, 2022 and 2023 are as follows:
 
                
2022
   
2023
 
Type
  
Accounts
         
1% Increase
   
1% Decrease
   
1% Increase
   
1% Decrease
 
                                      
                
In millions of won
 
Future salary increases
  
Increase (decrease) in
defined benefit obligation
          321,930       (283,658     392,392       (361,359
Discount rate
   Increase (decrease) in defined benefit obligation         (289,229     337,033       (371,103     415,361  
Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the years ended December 31, 2022 and 2023 are ₩27,495 million and ₩29,993 million, respectively.
Summary of Principal Assumptions on Provisions Valuation
Changes in provisions due to movements in underlying assumptions as of December 31, 2022 and 2023 are as follows:
 
Type
  
Accounts
  
2022
   
2023
 
PCBs
   Inflation rate      1.98     2.40
   Discount rate      1.92     2.12
Nuclear plants
   Inflation rate      2.25     1.91
   Discount rate      2.48     2.76
Spent fuel
   Inflation rate      2.93     1.91
   Discount rate      4.49     2.49
Radioactive waste
   Inflation rate      3.06     3.89
   Discount rate      2.62     3.65
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, 2022 and 2023 are as follows:
 
 
  
 
  
 
 
  
2022
 
 
2023
 
Type
  
Accounts
  
 
 
  
0.1%p Increase
 
 
0.1%p Decrease
 
 
0.1%p Increase
 
 
0.1%p Decrease
 
 
  
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
  
In millions of won
 
Discount rate
   PCBs           (169     169       (123     123  
   Nuclear plants         (474,432     491,360       (418,570     432,847  
   Spent fuel         (54,330     56,453       (130,065     130,761  
   Radioactive waste         (15,089     15,260       (13,538     13,683  
Inflation rate
   PCBs         169       (169     123       (123
   Nuclear plants         515,262       (498,258     458,047       (443,531
   Spent fuel         57,269       (55,191     133,931       (128,607
   Radioactive waste         14,190       (14,056     13,291       (13,174
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, 2022 and 2023 are as follows:
 
  
 
Assets
 
  
 
Liabilities
 
Type
  
2022
    
2023
    
2022
    
2023
 
    
In thousands of foreign currencies
 
AED
     5,610        24,441        25,597        18,143  
AUD
     4,448        4,310        299,663        299,795  
BDT
     7,514        2,260        —         —   
BWP
     824        777        —         —   
EGP
     —         1,665        1,162        1,941  
CAD
     89        —         595        —   
CHF
     —         —         500,158        499,930  
CZK
     —         —         153        —   
EUR
     1,976        12,259        41,073        81,744  
GBP
     —         75        31        —   
HKD
     —         —         4,014,446        5,079,189  
IDR
     598,697        25,567,281        1,323,840        2,118,580  
INR
     1,592,380        1,663,705        312,978        387,947  
JOD
     1,146        569        14        68,448  
JPY
     568,263        921,120        1,719,846        8,692,604  
KZT
     1,510        1,510        —         —   
MGA
     2,856,045        3,545,076        347,403        495,288  
MMK
     199,518        199,518        —         —   
MYR
     38,177        2,805        —         —   
PHP
     68,592        98,154        7,493        6,750  
PKR
     533,816        75,206,354        219,341        55,531  
RUB
     —         —         2,881        —   
SAR
     1,713        937        9,710        —   
SEK
     —         —         449,211        452,309  
SGD
     —         279        —         2,191  
THB
     —         —         389        —   
USD
     1,484,614        1,701,494        13,599,643        14,458,985  
UYU
     128,674        120,768        3,106        2,028  
VND
     1,184,670        848,242        4,495        —   
ZAR
     43,461        87,780        —         —   
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, 2022 and 2023 are as follows:
 
                                    
           
2022
    
2023
 
Type
         
10% Increase
    
10% Decrease
    
10% Increase
    
10% Decrease
 
           
In millions of won
 
                                    
Increase (decrease) of profit before income tax
          (1,703,053      1,703,053        (1,828,308      1,828,308  
Increase (decrease) of equity(*)
        (1,703,053      1,703,053        (1,828,308      1,828,308  
 
  (*)
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, 2022 and 2023 are as follows:
 
Type
         
2022
    
2023
 
                      
           
In millions of won
 
Short-term borrowings
          3,154,972        4,435,420  
Long-term borrowings
        5,388,073        7,766,588  
Debt securities
        269,101        305,602  
     
 
 
    
 
 
 
          8,812,146        12,507,610  
     
 
 
    
 
 
 
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 for the years ended December 31, 2022 and 2023 are as follows:
 
 
  
 
 
 
2022
 
 
2023
 
Type
  
 
 
 
1%p Increase
 
 
1%p Decrease
 
 
1%p Increase
 
 
1%p Decrease
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
In millions of won
 
Increase (decrease) of profit before income tax
         (88,121     88,121       (125,076     125,076  
Increase (decrease) of shareholder’s equity(*)
       (88,121     88,121       (125,076     125,076  
 
  (*)
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, 2022 and 2023 is as follows:
 
          
2022
   
2023
 
Type
        
1% Increase
   
1% Decrease
   
1% Increase
   
1% Decrease
 
                                
          
In millions of won
 
Increase (decrease) of profit before income tax
         661,990       (661,990     829,548       (829,548
Increase (decrease) of shareholder’s equity(*)
       661,990       (661,990     829,548       (829,548
 
  (*)
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, 2022 and 2023 in detail are as follows:
 
         
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(*1)
      11,369,512       347,563       1,008,133       734,112       13,459,320  
Financial guarantee contracts(*2)
      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  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
         
2023
 
Type
       
Less than

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

5 years
   
Total
 
                                     
         
In millions of won
 
Borrowings and debt securities
        50,878,929       29,046,036       42,420,850       32,778,830       155,124,645  
Lease liabilities
      641,525       588,850       1,309,996       1,694,729       4,235,100  
Trade and other payables(*1)
      8,477,209       364,443       833,394       589,004       10,264,050  
Financial guarantee contracts(*2)
      121,415       2,546,689       1,645,488       85,597       4,399,189  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
         60,119,078        32,546,018        46,209,728        35,148,160        174,022,984  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
  (*1)
Excludes lease liabilities.
  (*2)
This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2022 and 2023 are
W
67,240 and ₩49,992 million, respectively.
Summary of Maturity Analysis for Non Derivative Financial Assets
The expected maturities for
non-derivative
financial assets as of December 31, 2022 and 2023 in detail are as follows:
 
         
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  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
         
2023
 
Type
       
Less than

1 year
   
1~5 Years
   
More than

5 years
   
Other (*)
   
Total
 
                                     
         
In millions of won
 
Cash and cash equivalents
        4,342,887                         4,342,887  
Financial assets at fair value through other comprehensive income
                        502,443       502,443  
Financial assets at amortized cost
      28,905       9,938                   38,843  
Loans
      139,168       465,666       411,100       8,872       1,024,806  
Long-term/short-term financial instruments
      578,578       22       23       833,692       1,412,315  
Financial assets at fair value through profit or loss
      2,054,021       1,381       6,523       649,360       2,711,285  
Trade and other receivables
      11,990,515       911,822       1,292,539       1,280       14,196,156  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
        19,134,074       1,388,829       1,710,185       1,995,647       24,228,735  
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
  (*)
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, 2022 and 2023 are as follows:
 
          
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
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
          
2023
 
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
    
 
(22,571
    (11,566     (201,590     (130,119     (365,846
— Hedging
    
 
— 
 
    (4,680     (13,243     (5,641     (23,564
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
  
 
(22,571
    (16,246     (214,833     (135,760     (389,410
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
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, 2022 and 2023 are as follows:
 
          
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  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
          
2023
 
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
       257,073        123,132        169,004    
 
145,728
 
     694,937  
— Hedging
       78,769        61,031        131,687    
 
— 
 
     271,487  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
         335,842        184,163        300,691       145,728        966,424  
    
 
 
    
 
 
    
 
 
   
 
 
    
 
 
 
Summary of Fair Value Measurement of Instruments Fair value and book value of financial assets and liabilities as of December 31, 2022 and 2023 are as follows:
           
2022
    
2023
 
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
  
 
  
 
502,829
 
  
 
502,829
 
     502,443        502,443  
Derivative assets (trading)
     
 
693,072
 
  
 
693,072
 
     730,948        730,948  
Derivative assets (hedge designated)
     
 
324,952
 
  
 
324,952
 
     269,446        269,446  
Financial assets at fair value through profit or loss
     
 
3,709,508
 
  
 
3,709,508
 
     2,711,285        2,711,285  
     
 
 
    
 
 
    
 
 
    
 
 
 
          5,230,361        5,230,361        4,214,122        4,214,122  
     
 
 
    
 
 
    
 
 
    
 
 
 
Assets carried at amortized cost
              
Financial assets at amortized cost
  
 
  
 
26,998
 
  
 
26,998
 
     38,843        38,843  
Loans and receivables
     
 
1,013,371
 
  
 
1,013,371
 
     988,331        988,331  
Trade and other receivables
     
 
12,614,902
 
  
 
12,614,902
 
     14,179,322        14,179,322  
Long-term financial instruments
     
 
686,322
 
  
 
686,322
 
     833,737        833,737  
Short-term financial instruments
     
 
666,758
 
  
 
666,758
 
     578,578        578,578  
Cash and cash equivalents
     
 
3,234,780
 
  
 
3,234,780
 
     4,342,887        4,342,887  
     
 
 
    
 
 
    
 
 
    
 
 
 
  
 
  
 
18,243,131
 
  
 
18,243,131
 
     20,961,698        20,961,698  
     
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities recognized at fair value
              
Derivative liabilities (trading)
  
 
  
 
407,246
 
  
 
407,246
 
     428,670        428,670  
Derivative liabilities (hedge designated)
     
 
25,505
 
  
 
25,505
 
     23,564        23,564  
     
 
 
    
 
 
    
 
 
    
 
 
 
          432,751        432,751        452,234        452,234  
     
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities carried at amortized cost
              
Secured borrowings
  
 
  
 
102,368
 
  
 
102,368
 
     773,646        773,646  
Unsecured bond
     
 
105,185,189
 
  
 
96,846,056
 
     113,792,178        111,218,771  
Lease liabilities
     
 
4,163,143
 
  
 
4,163,143
 
     3,807,880        3,807,880  
Unsecured borrowings
     
 
15,282,193
 
  
 
15,280,693
 
     19,062,162        19,061,348  
Trade and other payables(*)
     
 
13,459,320
 
  
 
13,459,320
 
     10,264,050        10,264,050  
Bank overdraft
     
 
35,615
 
  
 
35,615
 
     3,844        3,844  
     
 
 
    
 
 
    
 
 
    
 
 
 
          138,227,828        129,887,195        147,703,760        145,129,539  
     
 
 
    
 
 
    
 
 
    
 
 
 
 
  (*)
Excludes lease liabilities.
Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Financial Instruments
The discount rates used for calculating fair value as of December 31, 2022 and 2023 are as follows:
 
Type
  
2022
    
2023
 
Derivatives
     0.60% ~ 7.93%        0.93%~10.36%  
Borrowings and debt securities
     0.75% ~ 5.84%        0.96%~5.84%  
Finance lease
     0.00% ~ 17.08%        0.00%~17.03%  
Summary of Fair Value Measurement of Financial Instruments
Fair values of financial instruments by hierarchy level as of December 31, 2022 and 2023 are as follows:
 
           
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  
           
2023
 
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
  
 
  
 
285,054
 
  
 
— 
 
  
 
217,389
 
     502,443  
Derivative assets
     
 
— 
 
  
 
1,000,394
 
  
 
— 
 
     1,000,394  
Financial assets at fair value through profit or loss
     
 
— 
 
  
 
2,704,550
 
  
 
6,735
 
     2,711,285  
     
 
 
    
 
 
    
 
 
    
 
 
 
          285,054        3,704,944        224,124        4,214,122  
     
 
 
    
 
 
    
 
 
    
 
 
 
Financial liabilities at fair value
              
Derivative liabilities
          —         452,234        —         452,234  
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, 2022 and 2023 are as follows:
 
         
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  
         
2023
 
         
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
        6,329       —        270       136       —        —        6,735  
Financial assets at fair value through other comprehensive income
               
Unlisted securities
      202,243       9,550       —        5,445       (5,332)       856       212,762  
Debt securities
      529       4,080       —        18       —        —        4,627