Service Concession Arrangements

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about service concession arrangements [abstract]

46.	Service Concession Arrangements

(1)	Hydroelectric Power Generation at Semangka, Indonesia (BOT)

(i)

Significant terms and concession period of the arrangement

Regarding Semangka hydroelectric power-generation business (BOT) in Indonesia, the Company has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Company shall provide electricity generated for about 30 years (2018 – 2048) after subsequent to the completion of plant construction and shall receive 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.

(ii)

Rights and classification of the arrangement

The Company 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 Company.

(iii)

Classification method

This project allows PT PLN to acquire ownership of the plant after the end of the 30 years contract period.

(iv)

The Company’s expected future collections of service concession arrangements as of December 31, 2023 are as follows:


Type		Amounts
		In millions of won
Less than 1 year	￦		32,354
1 ~ 2 years			32,281
2 ~ 3 years			32,321
Over 3 years			525,642

	￦		622,598

(2)	CPPAg Power Generation

(i)

Significant terms and concession period of the arrangement

The Company has entered into a contract with CPPAg(The Central Power Purchasing Agency Guarantee Limited) whereby the Company shall provide electricity generated for approximately 30 years (2020 – 2050) subsequent to the completion of plant construction and shall receive charge tariff rates designed to recover capital cost, variable O&M cost, fixed O&M cost, water usage cost, insurance cost and others during the concession period.

(ii)

Rights and classification of the arrangement

The Company has the rights to use and own the power plant during the concession period from 2020 to 2050. The Government of Pakistan has an option to take over the ownership of the power plant from the Company after the concession period has elapsed.

(iii)

Classification method

This project allows the Government of Pakistan to acquire ownership of the plant after the end of the contract period.

(iv)

The Company’s expected future collections of service concession arrangements as of December 31, 2023 are as follows:


Type		Amounts
		In millions of won
Less than 1 year	￦		75,717
1 ~ 2 years			75,717
2 ~ 3 years			75,717
Over 3 years			893,254

	￦		1,120,405