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Contingencies and Commitments
 12 Months Ended
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.