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Contingencies and Commitments
 12 Months Ended
Dec. 31, 2024
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, 2023 and 2024 are as follows:
 
    
2023
     
2024
  
    
Number
of cases
     
Claim
amount
     
Number
of cases
     
Claim
amount
  
    
In millions of won
  
As the defendant
      666      ￦ 805,227        722      ￦ 884,402  
As the plaintiff
      268        571,593        264        769,772  
As of December 31, 2024, there are 3 ongoing litigations and 2 arbitration case
s
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 litigations 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 litigations. Accordingly, the Company recognized ￦274,043 million as litigation provisions in relation to the litigation as of December 31, 2024.
 
 
 
(1)
Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2023 and 2024 are as follows, continued:
 
  2)
There are 18 arbitration cases pertaining to the Company as of December 31, 2024 and the significant arbitration cases are as follows:
 
  i)
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 as of December 31, 2024.
 
  ii)
During the year ended December 31, 2024, UniTest Co., Ltd. filed an arbitration claim against KEPCO for delay damages arising from the modification of design and contract amount related to the 154kV Yesan S/S 82MW ESS construction project. The Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of December 31, 2024.
 
  iii)
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 December 31, 2024, the Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.
 
  iv)
Samsung C&T consortium (Samsung C&T Co., Ltd., Doosan Enerbility Co., Ltd., and Hanwha Co., Ltd.) filed an arbitration application against the Company to National Contract Dispute Mediation Committee regarding the adjustment of the contract amount related to the main facility construction of Saeul Units 3 and 4 (formerly, Shin-Kori Nuclear Power Units 5 and 6). The Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of December 31, 2024
 
(2)
Guarantees of payments and commitments provided to other companies as of December 31, 2024 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, 2024.
 
  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 6,119 thousand for a debt 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 4,716 thousand for a debt guarantee to PT. Bank KB Bukopin, to guarantee the payment of debt related 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 7,031 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 Nonghyup Bank a debt guarantee up to USD 4,510 thousand to guarantee Debt Service Reserve Account (DSRA) for Mizuho bank, related to the Cirebon power plant business of PT. Cirebon Electric Power in Indonesia.
 
 
(2)
Guarantees of payments and commitments provided to other companies as of December 31, 2024 are as follows, continued:
 
  9)
The Company has provided Nonghyup Bank a debt guarantee up to USD 9,290 thousand to guarantee Debt Service Reserve Account (DSRA) for Mizuho bank, related to the Cirebon power plant business of PT. Cirebon Energi Prasarana in Indonesia.
 
  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 Hana 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)
The Company has provided joint guarantee for ￦1,641 million guarantee insurance contracted by Haetbyeotgil Sunlight Co., Ltd.
 
(3)
Credit lines provided by financial institutions and others as of December 31, 2024 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     1,720,500        119,643  
Limit amount available for CP
    Hana Bank and others    KRW     7,550,000        7,550,000  
General Loan, etc.
    Kookmin Bank and others    KRW     3,930,000        3,900,000  
Limit amount available for card
    Hana Bank and others    KRW     47,524        4,006  
Loan limit
    Korea Development Bank and others    KRW     3,248,025        1,837,454  
   DBS Bank and others    USD     1,086,000        —   
Certification of payment on payables from foreign country
    Nonghyup Bank    USD     8,700        4,020  
Certification of payment on L/C
    Shinhan Bank and others    USD     1,235,937        183,357  
   Kookmin Bank and others    EUR     32,035        13,424  
   Shinhan Bank    JPY     715,837        —   
Certification of Performance guarantee on contract
    Hana Bank and others    KRW     160,815        150,648  
   First Abu Dhabi Bank and others    USD     1,008,252        950,774  
   Korea Development Bank and others    JPY     620,000        620,000  
   Hana Bank    EUR     12,106        12,106  
   Hana Bank    INR     67,944        67,944  
   Hana Bank    OMR     6,250        6,250  
   First Abu Dhabi Bank and others    AED     52,500        52,500  
   Saudi National Bank and others    SAR     124,151        123,829  
 
 
 
(3)
Credit lines provided by financial institutions and others as of December 31, 2024 are as follows, continued:
 
Commitments
   
Financial institutions
   
Currency
  
Credit
limit
     
Used amount
  
                        
    
In millions of won and thousands of foreign currencies
  
Certification of bidding
   
Korea Software
Financial Cooperative
    KRW     43,809        43,809  
   Hana Bank and others    USD     10,200        5,000  
   Export-Import Bank of Korea    EUR     10,000        10,000  
   Shinhan Bank    QAR     155,213        155,213  
Advance payment bond, Warranty bond, Retention bond and others
    Seoul Guarantee Insurance    KRW     83,161        83,161  
   Hana Bank and others    USD     702,487        664,191  
   Saudi National Bank    SAR     32,500        32,500  
   Hana Bank and others    MXN     21,290        21,290  
Others (*)
    Nonghyup Bank and others    KRW     314,892        56,858  
   Nonghyup Bank and others    USD     448,635        USD 228,813  
             EUR 51,784  
   StandardChartered    AED     50        50  
   Kookmin Bank    EUR     7,031        7,031  
Secured loan of credit sales
    Nonghyup Bank and others    KRW     270,000        —   
Inclusive credit
    Hana Bank    KRW     8,000        3,735  
   Hana Bank and others    USD     35,000        USD 9,362  
             INR 332,690  
             AED 319  
Equity Bridge Loan Guarantee
    Export-Import Bank of Korea and others    USD     1,764,555        1,376,262  
Trade finance
    DBS Bank and others    USD     850,000        —   
 
(*)
As of December 31, 2024, 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, 2024, 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(*1)
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     230,716      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)
 
 
 
(4)
As of December 31, 2024, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows, continued:
 
Obligor
   
Creditor
   
Assets provided as security
   
Currency
  
Amount
     
Description
                           
    
In millions of won and thousands of foreign currencies
Korea Offshore Wind Power Co., Ltd.
   
Woori Bank and others
   
Property, plant and
equipment and others
   
KRW
  
 
159,000
 
   
Collateral for borrowings(*1,2)
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(*1)
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
  
 
11,932
 
   
Collateral for borrowings(*2)
Western Power Changgi Solar Co., Ltd.
   
Samsung Life Insurance and others
   
Property, plant and
equipment and others
   
KRW
  
 
54,000
 
   
Collateral for borrowings(*2)
Yeongdeok Sunrise Wind Power Co., Ltd.
   
Korea Development Bank and others
   
Property, plant and
equipment and others
   
KRW
  
 
96,240
 
   
Collateral for borrowings(*2)
J Wind First, LLC
    Woori Bank   
Trade receivable and
others
    KRW     55,000      Collateral for borrowings(*1,2)
Chitose Solar Power Plant LLC
    Korea Development Bank   
Property, plant and
equipment and others
    USD     137,656      Collateral for borrowings(*1,2)
Mangilao Intermediate Holdings LLC
   
Mizuho Bank
   
Trade receivable and
others
   
USD
  
 
86,132
 
   
Collateral for borrowings(*2)
 
(*1)
This is based on the amount of loan commitment limit.
 
(*2)
As of December 31, 2024, 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, 2024. 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 ￦59,313 million as of December 31, 2024, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of ￦1,741 million and depreciation on the idle assets of ￦3,642 million are recorded in other expenses for the year ended December 31, 2024. 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, 2024.
 
 
(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, 2024. Accordingly, the book value of the facility, amounting to ￦11,778 million, was recognized as an impairment loss, and trade receivables related to companies residing in the Gaeseong Industrial District were fully written off. As of December 31, 2024, the Company cannot make reasonable estimation on whether assets will be recovered or utilized in regular way related thereto.
 
(7)
As of December 31, 2024, 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.