KOREA ELECTRIC POWER CORP [KEP] Filings

20-F 1 d427740d20f.htm FORM 20-F Form 20-F

As filed with the Securities and Exchange Commission on April 28, 2023

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form

20-F

(Mark One)

☐	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

☑	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

For the transition period from to

Commission File Number:

001-13372

KOREA ELECTRIC POWER CORPORATION

(Exact name of registrant as specified in its charter)


N/A		The Republic of Korea
(Translation of registrant’s name into English)		(Jurisdiction of incorporation or organization)

Jeollyeok-ro

Naju-si,

Jeollanam-do,

58322, Korea

(Address of principal executive offices)

Nayoung Kim, +82 61 345 4213, nayoung.kim@kepco.co.kr, +82 61 345 4299

Jeollyeok-ro

Naju-si,

Jeollanam-do,

58322, Korea

(Name, telephone,

e-mail

and/or facsimile number and address of company contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol(s):	Name of each exchange on which registered:
Common stock, par value Won 5,000 per share	KEP	New York Stock Exchange*
American depositary shares, each representing one-half of share of common stock	KEP	New York Stock Exchange

*	Not for trading, but only in connection with the listing of American depositary shares on the New York Stock Exchange, pursuant to the requirements of the Securities and Exchange Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

One Hundred Year 7.95%

Zero-to-Full

Debentures, due April 1, 2096

6% Debentures due December 1, 2026

7% Debentures due February 1, 2027

⁄

% Debentures due August 1, 2027

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period

covered by the annual report:

641,964,077 shares of common stock, par value of Won 5,000 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☑

Note—Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days: Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T (§232.405

of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files): Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a

non-accelerated

filer, or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, and “emerging growth company” in Rule

12b-2

of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐

Non-accelerated

filer ☐ Emerging Growth Company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. Yes ☐ No ☑

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). Yes ☐ No ☑

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☑ Other ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Exchange Act). Yes ☐ No ☑

Auditor Name: Ernst & Young Han Young

Auditor Location: Seoul, Korea

Auditor Firm ID: 1437

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

TABLE OF CONTENTS


			Page
PART I				3
ITEM 1.	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS			3
ITEM 2.	OFFER STATISTICS AND EXPECTED TIMETABLE			3
ITEM 3.	KEY INFORMATION			3
	Item 3.A.	[Reserved]		3
	Item 3.B.	Capitalization and Indebtedness		3
	Item 3.C.	Reasons for the Offer and Use of Proceeds		3
	Item 3.D.	Risk Factors		3
ITEM 4.	INFORMATION ON THE COMPANY			36
	Item 4.A.	History and Development of the Company		36
	Item 4.B.	Business Overview		37
	Item 4.C.	Organizational Structure		95
	Item 4.D.	Property, Plant and Equipment		101
ITEM 4A.	UNRESOLVED STAFF COMMENTS			102
ITEM 5.	OPERATING AND FINANCIAL REVIEW AND PROSPECTS			102
	Item 5.A.	Operating Results		102
	Item 5.B.	Liquidity and Capital Resources		111
	Item 5.C.	Research and Development, Patents and Licenses, etc.		119
	Item 5.D.	Trend Information		120
	Item 5.E.	Critical Accounting Estimates		120
ITEM 6.	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES			120
	Item 6.A.	Directors and Senior Management		120
	Item 6.B.	Compensation		125
	Item 6.C.	Board Practices		125
	Item 6.D.	Employees		126
	Item 6.E.	Share Ownership		127
	Item 6.F.	Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation		127
ITEM 7.	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS			127
	Item 7.A.	Major Shareholders		127
	Item 7.B.	Related Party Transactions		128
	Item 7.C.	Interests of Experts and Counsel		128
ITEM 8.	FINANCIAL INFORMATION			128
	Item 8.A.	Consolidated Statements and Other Financial Information		128
	Item 8.B.	Significant Changes		131
ITEM 9.	THE OFFER AND LISTING			132
	Item 9.A.	Offer and Listing Details		132
	Item 9.B.	Plan of Distribution		134
	Item 9.C.	Markets		134
	Item 9.D.	Selling Shareholders		137
	Item 9.E.	Dilution		137
	Item 9.F.	Expenses of the Issue		137
ITEM 10.	ADDITIONAL INFORMATION			137
	Item 10.A.	Share Capital		137
	Item 10.B.	Memorandum and Articles of Incorporation		137
	Item 10.C.	Material Contracts		145
	Item 10.D.	Exchange Controls		145
	Item 10.E.	Taxation		151
	Item 10.F.	Dividends and Paying Agents		163


			Page
	Item 10.G.	Statements by Experts		163
	Item 10.H.	Documents on Display		163
	Item 10.I.	Subsidiary Information		163
	Item 10.J.	Annual Report to Security Holders		163
ITEM 11.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			164
ITEM 12.	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES			169
	Item 12.A.	Debt Securities		169
	Item 12.B.	Warrants and Rights		170
	Item 12.C.	Other Securities		170
	Item 12.D.	American Depositary Shares		170
PART II				172
ITEM 13.	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES			172
ITEM 14.	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS			172
ITEM 15.	CONTROLS AND PROCEDURES			172
ITEM 16.	[RESERVED]			173
ITEM 16A.	AUDIT COMMITTEE FINANCIAL EXPERT			173
ITEM 16B.	CODE OF ETHICS			173
ITEM 16C.	PRINCIPAL ACCOUNTANT FEES AND SERVICES			174
ITEM 16D.	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEE			174
ITEM 16E.	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS			174
ITEM 16F.	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT			175
ITEM 16G.	CORPORATE GOVERNANCE			175
ITEM 16H.	MINE SAFETY DISCLOSURE			183
ITEM 16I.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS			183
PART III				184
ITEM 17.	FINANCIAL STATEMENTS			184
ITEM 18.	FINANCIAL STATEMENTS			184
ITEM 19.	EXHIBITS			184
INDEX OF EXHIBITS				185
INDEX TO FINANCIAL STATEMENTS				F-1

CERTAIN DEFINED TERMS AND CONVENTIONS

All references to “Korea” or the “Republic” in this annual report on Form 20-F, or this annual report, are references to the Republic of Korea. All references to the “Government” in this annual report are references to the government of the Republic of Korea. All references to “we,” “us,” “our,” “ours,” the “Company” or “KEPCO” in this annual report are references to Korea Electric Power Corporation and, as the context may require, its subsidiaries, and the possessive thereof, as applicable. All references to “the Ministry of Trade, Industry and Energy” and “the Ministry of Economy and Finance” include the respective predecessors thereof. All references to “tons” are to metric tons, equal to 1,000 kilograms, or 2,204.6 pounds. Any discrepancies in any table between totals and the sums of the amounts listed are due to rounding. All references to “IFRS” in this annual report are references to the International Financial Reporting Standards as issued by the International Accounting Standard Board. Unless otherwise stated, all of our financial information presented in this annual report has been prepared on a consolidated basis and in accordance with IFRS.

In addition, in this annual report, all references to:

•

“EWP” are to Korea East-West Power Co., Ltd.,

•

“KHNP” are to Korea Hydro & Nuclear Power Co., Ltd.,

•

“KOMIPO” are to Korea Midland Power Co., Ltd.,

•

“KOSEP” are to Korea South-East Power Co., Ltd.,

•

“KOSPO” are to Korea Southern Power Co., Ltd., and

•

“KOWEPO” are to Korea Western Power Co., Ltd.,

each of which is our wholly-owned generation subsidiary.

FORWARD-LOOKING STATEMENTS

This annual report includes “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934), including statements regarding our expectations and projections for future operating performance and business prospects. The words “believe,” “expect,” “anticipate,” “estimate,” “project” and similar words used in connection with any discussion of our future operation or financial performance identify forward-looking statements. In addition, all statements other than statements of historical facts included in this annual report are forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. We caution you not to place undue reliance on the forward-looking statements, which speak only as of the date of this annual report.

This annual report discloses, under the caption Item 3.D. “Risk Factors” and elsewhere, important factors that could cause actual results to differ materially from our expectations (“Cautionary Statements”). All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Cautionary Statements.

CURRENCY TRANSLATIONS AND EXCHANGE RATES

In this annual report, unless otherwise indicated, all references to “Won,” “KRW” or “W” are to the currency of Korea, all references to “U.S. dollars,” “Dollars,” “USD”, “$” or “US$” are to the currency of the United States of America; all references to “Euro”, “€” or “EUR” are references to the currency of the European Union; all references to “Yen”, “¥” or “JPY” are references to the currency of Japan; all references to “A$” or

“AUD” are to the currency of Australia; all references to “HK$” or “HKD” are to the currency of Hong Kong; all references to “Fr.” or “CHF” are to the currency of Switzerland; all references to “kr” or “SEK” are to the currency of Sweden. Unless otherwise indicated, all translations from Won to U.S. dollars were made at Won 1,260.2 to US$1.00, which was the Noon Buying Rate of the Federal Reserve Board (the “Noon Buying Rate”) in effect as of December 31, 2022, which rates are available on the H.10 statistical release of the Federal Reserve Board. On April 7, 2023, the Noon Buying Rate was Won 1,319.1 to US$1.00. The exchange rate between the U.S. dollar and Korean Won may be highly volatile from time to time and no representation is made that the Won or U.S. dollar amounts referred to in this annual report could have been or could be converted into U.S. dollars or Won, as the case may be, at any particular rate or at all.

The following table sets forth, for the periods and dates indicated, certain information concerning the Noon Buying Rate in Won per US$1.00.


Year Ended December 31,	At End of Period		Average⁽¹⁾		High		Low
	(Won per US$1.00)
2018		1,112.9		1,099.3		1,141.7		1,054.6
2019		1,155.5		1,165.8		1,220.7		1,111.8
2020		1,086.1		1,180.6		1,267.3		1,081.9
2021		1,188.6		1,144.9		1,198.7		1,081.6
2022		1,260.2		1,291.8		1,440.5		1,187.0
October		1,424.6		1,426.1		1,440.3		1,402.3
November		1,316.8		1,361.8		1,424.0		1,316.8
December		1,260.2		1,293.6		1,322.2		1,260.2
2023 (through April 7)		1,319.1		1,279.3		1,324.5		1,220.3
January		1,232.0		1,243.1		1,272.2		1,227.3
February		1,323.5		1,275.4		1,323.5		1,220.3
March		1,303.8		1,306.0		1,324.5		1,278.9
April (through April 7)		1,319.1		1,315.9		1,319.1		1,310.1

Source: Federal Reserve Board

Note:

(1)

The average rates for annual and interim periods were calculated by taking the simple average of the Noon Buying Rates on the last day of each month during the relevant period. The average rates for the monthly periods (or a portion thereof) were calculated by taking the simple average of the daily Noon Buying Rates during the relevant month (or a portion thereof).

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3.

KEY INFORMATION

Item 3.A.

[Reserved]

Item 3.B.

Capitalization and Indebtedness

Not applicable.

Item 3.C.

Reasons for the Offer and Use of Proceeds

Not applicable.

Item 3.D.

Risk Factors

Our business and operations are subject to various risks, many of which are beyond our control. If any of the risks described below actually occurs, our business, financial condition or results of operations could be seriously harmed. Such risks fall primarily under the categories below:

Risks relating to KEPCO primarily include:

•

increases in fuel prices which may not be passed on to customers;

•

Governmental policies that may affect the industry or our operations;

•

capacity expansion plans based on projections of long-term supply and demand of electricity proving to be inadequate against actual supply and demand;

•

being subject to various environmental legislations, regulations and Government initiatives;

•

incurrence of additional indebtedness;

•

the movement of Won against other currencies;

•

risks associated with new business strategies and overseas expansion opportunities;

•

an increase in electricity generated by and/or sourced from independent power producers eroding our market position;

•

labor unrest and increases in labor cost;

•

risks associated with the operation of nuclear power generation facilities;

•

difficulties in the construction and operation of our facilities due to opposition from civic groups and uncertainties in maintaining permits and licenses;

•

risk management policies and procedures failing to be effective, including but not limited to failing to prevent losses in our debt and foreign currency positions;

•

limited amount and scope of insurance coverage;

•

inability to raise share capital without the Government’s participation;

•

claims by current or previous employees for unpaid wages;

•

cyberattacks;

•

Russia-related dealings; and

•

the effects of COVID-19.

Risks relating to Korea and Global Economy primarily include:

•

unfavorable financial and economic conditions in Korea;

•

tensions with North Korea;

•

being subject to Korean corporate governance and disclosure standards; and

•

risks associated with enforcing a foreign judgment against us.

Risks relating to Our American Depositary Shares (ADSs) primarily include:

•

restrictions on withdrawal and deposit of common shares under the depositary facility;

•

ownership of our shares being restricted under Korean law;

•

no preemptive rights in certain circumstances;

•

being affected by the volatility of the Korean securities market;

•

dividend payments being affected by fluctuations in the exchange rate; and

•

restriction on the depositary bank from converting and remitting dividends under emergency circumstances.

Risks Relating to KEPCO

Increases in fuel prices may adversely affect our results of operations and profitability as we may not be able to pass on the increased cost to customers at a sufficient level or on a timely basis.

In 2022, fuel costs constituted 34.4% of our cost of sales, and the ratio of fuel costs to our sales was 49.1%. Our generation subsidiaries purchase substantially all of the fuel that they use (except for anthracite coal) from suppliers outside Korea at prices determined in part by prevailing market prices in currencies other than Won. For example, most of the bituminous coal requirements (which accounted for approximately 39.8% of our fuel requirements in 2022 in terms of electricity output) are imported principally from Australia, Indonesia, Russia and, to a lesser extent, South Africa and others, which accounted for approximately 30.9%, 26.7%, 19.9%, 8.5% and 14.0%, respectively, of the annual bituminous coal requirements of our generation subsidiaries in 2022. Approximately 91.8% of the bituminous coal requirements of our generation subsidiaries in 2022 were purchased under long-term contracts and the remaining 8.2% from the spot market. Pursuant to the terms of our long-term supply contracts, prices are adjusted periodically based on prevailing market conditions. In addition, our generation subsidiaries purchase a significant portion of their fuel requirements under contracts with limited duration. See Item 4.B. “Business Overview—Fuel Sources and Requirements.”

The prices of our main fuel types, namely, bituminous coal, oil and liquefied natural gas, or LNG, fluctuate, sometimes significantly, in tandem with their international market prices. For example, the average weekly spot price of “free on board” Newcastle coal 5500 NAR (Net As Received) published on Korea Mineral Resource Information Service by Korea Mine Rehabilitation and Mineral Resources Corporation increased from US$84.77 per ton in 2021 to US$179.13 per ton in 2022 and decreased to US$123.26 per ton as of April 7, 2023. The prices of oil and LNG are substantially dependent on the price of crude oil, and according to Bloomberg (Bloomberg

Ticker: PGCRDUBA), the average daily spot price of Dubai crude oil increased from US$69.01 per barrel in 2021 to US$97.03 per barrel in 2022 and decreased to US$85.25 per barrel as of April 7, 2023. Furthermore, because the prices of LNG are dependent on the price of crude oil, an increase in such fuel prices can result in an increase in the prices of LNG, which, in turn, affect the cost of purchasing electricity from independent power producers. We cannot assure you that fuel prices will remain stable or will not significantly increase in the remainder of 2023 or thereafter. In addition, following the International Maritime Organization’s regulation referred to as IMO 2020 that regulates sulfur content of ships’ fuel oil, IMO 2023 was mandated from January 1, 2023. IMO 2023 regulates energy efficiency and carbon emissions of ships by setting specific indices that all ships are required to comply with. While we have seen mixed reactions in the market, there is a likelihood that installation of energy saving devices or modification of ships to improve their carbon emissions level may increase as the regulation strengthens. Such trends may significantly increase the operating cost of the shipping lines and the increased costs are expected to be passed onto customers like us via higher freight rates. If fuel prices increase substantially in the future within a short span of time, our generation subsidiaries may be unable to secure adequate fuel supplies at prices commercially acceptable to them. In addition, any significant interruption or delay in the supply of fuel, bituminous coal in particular, from any of their suppliers may cause our generation subsidiaries to purchase fuel on the spot market at prices higher than the prices available under existing supply contracts, which would result in an increase in fuel costs.

As of January 1, 2021, we implemented a new cost pass-through tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers and to enhance transparency by separately billing fuel costs and climate/environment related costs. Previously, the electricity tariff consisted of two main components: (i) the base charge (the “Base Charge”) and (ii) the usage charge (the “Usage Charge”) based on the amount of electricity consumed by end-users. Under the new tariff system, there are new components to the tariff called the fuel cost adjusted charge (the “Fuel Cost Adjusted Charge”) and the climate/environment related charge (the “Climate/Environment Related Charge”). In principle, the Fuel Cost Adjusted Charge is calculated on a quarterly basis and the formula for calculating the amount of the Fuel Cost Adjusted Charge is multiplying (i) the unit price of the Fuel Cost Adjusted Charge (the “Unit Price of the Fuel Cost Adjusted Charge”), which is the difference between a base fuel cost (the “Base Fuel Cost”) and an actual fuel cost (the “Actual Fuel Cost”) and (ii) the amount of electricity consumed. The Base Fuel Cost is the past twelve-month average fuel price of bituminous coal, LNG and Bunker C oil as posted by the Korea Customs Service. The twelve-month average fuel price is measured by taking the average of monthly fuel prices from twelve months in between thirteen and one month prior to the time a new Base Fuel Cost becomes effective. To illustrate, the Base Fuel Cost effective from 2023 is the average of the fuel prices from December 2021 to November 2022. The Base Fuel Cost can be adjusted upon the revision of the electricity tariff as a whole as described in the penultimate paragraph of this risk factor. On the other hand, the Actual Fuel Cost is the past three-month average fuel price of the same fuels we use to measure the Base Fuel Cost. The past three-month average fuel price is measured by taking the average of monthly fuel prices from three months in between four and one month prior to the time the Fuel Cost Adjusted Charge is updated. To illustrate, for the first quarter of 2023, we used the fuel costs for September, October and November 2022 to calculate the three-month average fuel price.

The quarterly-adjusted Fuel Cost Adjusted Charge has built-in limits in view of price stability and other public policy considerations. First, there is a limit on any change in the Unit Price of the Fuel Cost Adjusted Charge to be no less than Won ±1 per kilowatt-hour. In other words, any change less than Won ±1 per kilowatt-hour will not be reflected. However, such limit does not apply if it is the first quarter during which the Base Fuel Cost has been newly updated. Separately, the Won ±3 per kilowatt-hour limit that previously existed to limit any change in the Unit Price of Fuel Cost Adjusted Charge to be no greater than Won ±3 per kilowatt-hour as compared to the preceding quarter was repealed since the third quarter of 2022 on account of high volatility in recent global fuel prices. Second, the Unit Price of the Fuel Cost Adjusted Charge that exceeds Won ±5 per kilowatt-hour will not be reflected. In other words, the maximum adjustment that can be incorporated to the Unit Price of the Fuel Cost Adjusted Charge is equal to Won ±5 per kilowatt-hour from the Base Fuel Cost that is in effect. For example, in the second quarter of 2023, the Unit Price of the Fuel Cost Adjusted Charge was Won 6.8 per kilowatt-hour, meaning the Actual Fuel Cost was higher than the Base Fuel Cost by Won 6.8 per kilowatt-

hour, but after being subjected to the limit of Won ±5 per kilowatt-hour, the Unit Price of the Fuel Cost Adjusted Charge came out to be Won 5.0 per kilowatt-hour.

However, our ability to pass on fuel and other cost increases to our customers may be limited due to the regulation of the Government on the rates we charge for the electricity we sell to our customers. In addition to the built-in limits described in the preceding paragraph, the new tariff system gives discretion to the Government to not wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, as determined by the Government. For example, in the second and third quarter of 2021, although the Unit Price of the Fuel Cost Adjusted Charge was Won –0.2 and Won 0.0 per kilowatt-hour respectively, the Government notified us to keep it at the same Won –3.0 per kilowatt-hour as the first quarter of 2021. In the fourth quarter of 2021, we increased the Unit Price of the Fuel Cost Adjusted Charge to Won 0.0 per kilowatt-hour. In the first and second quarters of 2022, although the Unit Price of the Fuel Cost Adjusted Charge as calculated should have been Won 3.0 per kilowatt-hour as the quarterly limit of Won ±3 per kilowatt-hour had existed back then, the Government notified us to keep it at the same Won 0.0 per kilowatt-hour as the fourth quarter of 2021. The Government cited different policy reasons for withholding the application of the quarterly Fuel Cost Adjusted Charge in the past but one of the more consistent reasons has been alleviating the hardship caused by the prolonged economic effects of COVID-19 pandemic. As the quarterly limit of Won ±3 per kilowatt-hour was repealed in the third quarter of 2022 and with the approval by the Government, we ultimately increased the Unit Price of the Fuel Cost Adjusted Charge to Won 5.0 per kilowatt-hour in the third quarter of 2022, which was the maximum amount allowed in 2022 under the Won ±5 per kilowatt-hour limit. From then to the second quarter of 2023, the Unit Price of the Fuel Cost Adjusted Charge has been kept at Won 5.0 per kilowatt-hour.

Also, because the Fuel Cost Adjusted Charge takes into account the fuel prices posted by Korea Customs Service, there may still be a mismatch in value between the actual prices the domestic generation companies pay for their fuels in the open market and the adjustment that can be made through the Fuel Cost Adjusted Charge. The domestic generation companies include not only our generation subsidiaries but also independent power producers that are not affiliated with us and we do not have access to fuel costs incurred by the independent power producers. As such, we use fuel prices posted by Korea Customs Service, which are easily accessible to our customers, for calculating the Fuel Cost Adjusted Charge.

Due to the likelihood of the Actual Fuel Cost being substantially over the built-in limits of the new tariff system and the Government’s discretion not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, there may be certain portions of the fuel costs that cannot be charged to our customers, even though those portions should have been included in the Fuel Cost Adjusted Charge. In such cases, we may accumulate such portions and reflect them in what is called the total comprehensive cost (the “Total Comprehensive Cost”), which is a variable we use to calculate the Base Charge and the Usage Charge of the tariff. The Total Comprehensive Cost, submitted yearly to the Government for its review by us, is calculated using the relevant costs according to our settled accounts from the previous year and the proposed budget for the upcoming year. Under the Total Comprehensive Cost approach, the Base Charge and the Usage Charge are established at levels that would enable us to recover fair operating costs as well as fair investment return on the capital used in our operations. For further information on fair operating costs and fair investment return, please see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.” The Base Charge and the Usage Charge that are derived from the Total Comprehensive Cost need to be approved by the Government before they can be revised. The Government may, from time to time, consider different policy objectives to regulate the time and magnitude of such revision of the Base Charge and the Usage Charge of the electricity tariff. Therefore, changes in the fuel costs may not be timely or fully reflected even through the Usage Charge of the tariff where they would typically be reflected. Recently, to reflect the rise in the Base Fuel Cost, the Usage Charge needed to increase by Won 9.8 per kilowatt-hour from January 2022. With the approval by the Government, we increased the Usage Charge by Won 4.9 per kilowatt-hour on April 1, 2022 and October 1, 2022 respectively, which resulted in a total increase of Won 9.8 per kilowatt-hour. Such increases were spread out into two rounds to relieve people’s hardship including the prolonged effects of COVID-19 pandemic. In addition, in October 2022, we increased the Usage Charge of the tariff by Won 7.0 to Won 11.7 per kilowatt-hour on industrial and

commercial consumers and by Won 2.5 per kilowatt-hour on all other consumers, reflecting additional accumulated fuel cost rises. In January 2023, with the approval by the Government, we increased the Usage Charge by Won 11.4 per kilowatt-hour to reflect a portion of the increase in the Base Fuel Cost. The Government announced in its economic policy direction statement for 2023 that it will work towards normalizing the tariff in stages so that our cumulative deficit is resolved by 2026. However, there is no assurance on whether such announcement will be realized or how long it will take to be realized.

Overall, despite the new tariff system, we may not be able to adjust our tariff in accordance with such system due to the reasons we described in this risk factor. In addition, if fuel prices increase rapidly and substantially and the current level of electricity tariff is not increased to a level sufficient to offset the impact of high fuel prices or not adjusted responsive to fuel price movements, our profit margins will be adversely affected and/or we can even have operating and/or net losses, and our business, financial condition, results of operations and cash flows may be adversely affected. For example, as the fuel prices have increased rapidly in the last several years, we have experienced substantial operating and net losses and may continue to experience them if the electricity tariff is not increased to a level sufficient to cover such increase in fuel prices. For instance, in 2022, we incurred operating and net losses of Won 32,241 billion and Won 24,429 billion respectively due to a rise in fuel prices among other reasons.

The Government may adopt policy measures to substantially restructure the Korean electric power industry or our operational structure, which may have a material adverse effect on our business, operations and profitability.

From time to time, the Government considers various policy initiatives to foster efficiency in the Korean electric power industry and at times have adopted policy measures that have substantially modified our business and operations. For example, in January 1999, with the aim of introducing greater competition in the Korean electric power industry and thereby improving its efficiency, the Government announced a restructuring plan for the Korean electric power industry, or the Restructuring Plan. For a detailed description of the Restructuring Plan, see Item 4.B. “Business Overview—Restructuring of the Electric Power Industry in Korea.” As part of this initiative, in April 2001 the Government established the Korea Power Exchange to enable the sale and purchase of electricity through a competitive bidding process, established the Korea Electricity Commission to ensure fair competition in the Korean electric power industry, and, in order to promote competition in electricity generation, split off our electricity generation business to form one nuclear generation company and five non-nuclear generation companies, in each case, to be wholly owned by us. In 2002, the Government introduced a plan to privatize one of our five non-nuclear generation subsidiaries, but this plan was suspended indefinitely in 2004 due to prevailing market conditions and other policy considerations.

In August 2010, the Ministry of Trade, Industry and Energy announced the Proposal for the Improvement in the Structure of the Electric Power Industry, which was designed to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them. Pursuant to this proposal, while our six generation subsidiaries continued to be our wholly-owned subsidiaries, in January 2011 the six generation subsidiaries were officially designated as “market-oriented public enterprises” (same as us) under the Act on the Management of Public Institutions, whereupon the President of Korea appoints the president and the standing director who is to become a member of the audit committee of each such subsidiary; the selection of non-standing directors of each such subsidiary is subject to approval by the Minister of the Ministry of Economy and Finance; the president of each such subsidiary is required to enter into a management contract directly with the Minister of the Ministry of Trade, Industry and Energy; and the Committee for Management of Public Institutions (which is comprised largely of Government officials and those recommended by Government officials) conducts performance evaluation of such subsidiaries. Previously, our president appointed the president and the statutory auditor of each such subsidiary; the selection of non-standing directors of each such subsidiary was subject to approval by our president; the president of each such subsidiary entered into a management contract with our president; and our evaluation committee conducted performance

evaluation of such subsidiaries. As a result of these changes, our six generation subsidiaries took on additional operational responsibilities and management autonomy with respect to construction and management of generation units and procurement of fuel, while we as the parent company continued to oversee and coordinate, among others, finances, corporate governance, overseas businesses, including nuclear export technology and overseas resource development, that jointly affect us and our generation subsidiaries. See also Item 16.G. “Corporate Governance—The Act on the Management of Public Institutions—Applications of the Act on Our Generation Subsidiaries.”

In June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) for the purpose of streamlining the operations of Government-affiliated energy companies by discouraging them from engaging in overlapping or similar businesses with each other, reducing non-core assets and activities and improving management and operational efficiency. The initiatives contemplated in this proposal that would affect us and our generation subsidiaries include the following: (i) the generation companies should take on greater responsibilities in overseas resource exploration and production projects as these involve procurement of fuels necessary for electricity generation while fostering cooperation among each other through closer coordination, (ii) KHNP should take a greater role in export of nuclear technology, and (iii) the current system of retail sale of electricity to end-users should be liberalized to encourage more competition. In accordance therewith, we transferred a substantial portion of our assets and liabilities in our overseas resource business to our generation subsidiaries as of December 31, 2016. In addition, pursuant to this Proposal, we considered a sale in the public market of a minority of our shares in our five non-nuclear generation subsidiaries, KEPCO KDN and KHNP. However, the planned sales have been put on hold, primarily due to prevailing market conditions. In any event, we plan to maintain a controlling stake in each of these subsidiaries.

Other than as set forth above, we are not aware of any specific plans by the Government to resume the implementation of the Restructuring Plan or otherwise change the current structure of the electric power industry or the operations of us or our generation subsidiaries materially in the near future. However, for reasons relating to changes in policy considerations, socio-political, economic and market conditions and/or other factors, the Government may resume the implementation of the Restructuring Plan or initiate other steps that may change the structure of the Korean electric power industry or the operations of us or our generation subsidiaries materially. Any such measures may have a negative effect on our business, results of operations and financial condition. In addition, the Government, which beneficially owns a majority of our shares and exercises significant control over our business and operations, may from time to time pursue policy initiatives that could directly or indirectly impact our business and operations, and such initiatives may vary from the interest and objectives of our other shareholders.

The Government may adopt policy measures that affect the tariff rates in order to ease the burden on certain consumers, which may burden us financially.

Previously, there have been several adjustments to the existing tariff rates for certain consumers in order to ease the burden of electricity tariff on them. But these adjustments may be independent from fuel price movements and our business, results of operations, financial condition and profitability may suffer as a result. For example, effective on January 1, 2017, the progressive rate structure applicable to the residential sector, which applies a gradient of increasing tariff rates for heavier electricity usage, was changed from a six-tiered structure with the highest rate being no more than 11.7 times the lowest rate (which gradient system has been in place since 2005) into a three-tiered structure with the highest rate being no more than three times the lowest rate, in order to reflect the changes in the pattern of electricity consumption and reduce the electricity charges payable by consumers. Additionally, a new tariff structure was implemented to encourage energy saving by offering rate discounts to residential consumers that voluntarily reduce electricity consumption while charging special high rates to residential consumers with heavy electricity consumption during peak usage periods in the summer and the winter. Further, during July and August 2018, the residential electricity charges were reduced by temporarily relaxing the application of the then tariff structure and offering higher rate discounts to economically or otherwise disadvantaged customers to ease the burden on households that have significantly increased their use

of air conditioners during a heatwave. Subsequently, a joint task force team, consisting of industry experts, scholars and Government officials, was formed, which announced a proposal for amending the tariff structure aimed to lower electricity rates for households during the summer. As a result, in July 2019, the residential electricity tariff rate system was amended to expand the usage ceiling for the first two tiers of rates (from 200 kilowatts to 300 kilowatts for the first tier and from 400 kilowatts to 450 kilowatts for the second tier) applied during July and August each year. With the implementation of the new tariff system as of September 1, 2021, the residents were given a new benefit to opt for a new schedule of residential tariff, which is an option we have already been providing to our industrial and commercial customers. The new schedule is called a seasonal and hourly tariff and it allows residents to be charged under a monthly Base Charge plus increments depending on time, day and season. Each household may also choose to stay under the current tariff schedule which in contrast is a progressive schedule with seasonal adjustments. Our plan is to provide this option to households in Jeju Province in Korea first as many of these households are equipped with the Advanced Metering Infrastructure (“AMI”) already and review rolling it out to the rest of the country depending on the penetration rate of the AMI in each region.

On the other hand, there are also policy measures that have been repealed. For example, the rate discounts offered to residential consumers who voluntarily reduced electricity consumption and those offered to traditional wet markets were abolished in December 2019. The rate discounts for electric vehicles have been terminated in June 2022 and the rate discounts for households that use less than 200 kilowatt-hours were phased out to 50% in July 2021 and was terminated in July 2022. We also discontinued the 50% discount offered for customers who installed a renewable energy generator for their own industrial and general uses in 2020 while only maintaining it for customers who are unable to sell their electricity in the market because of their small generation capacities (less than 10 kilowatts). The discount for such customers is planned to be discontinued in 2023. Despite these, there can be no assurance that the current and future adjustments in electricity tariff rates and rate discounts will not have an adverse impact on our business, results of operations, financial condition and profitability. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates” for more information on electricity tariff charged to our consumers.

Our capacity expansion plans, which are principally based on projections on long-term supply and demand of electricity in Korea, may prove to be inadequate.

We and our generation subsidiaries make plans for expanding or upgrading our generation capacity and transmission infrastructure based on the Basic Plan Relating to the Long-Term Supply and Demand of Electricity, or the Basic Plan, which is generally revised and announced every two years by the Government. In January 2023, the Government announced the Tenth Basic Plan which is effective for the period from 2023 to 2036. The Tenth Basic Plan focuses on (i) establishing practical and balanced mixture of power sources and (ii) optimizing nuclear power sources while minimizing coal-fired power sources and developing eco-friendly power sources. The Tenth Basic Plan includes the following specific measures: (i) construction of nuclear power plants, Shin-Hanul #3 and 4, would resume and operation of ten other nuclear generation units including Kori #2 may continue beyond their original retirement dates in or before 2030 subject to KHNP’s intention and only upon the Nuclear Safety and Security Commission (“NSSC”)’s approval following a satisfactory safety evaluation; as a result, nuclear generation capacities will increase from 26.1 gigawatts in 2023 to 31.7 gigawatts by 2036, (ii) 28 decrepit coal-fired power plants with total capacity of 14.1 gigawatts will be retired and converted into using LNG instead, decreasing coal generation capacities from 40.2 gigawatts in 2023 to 27.1 gigawatts by 2036 and expanding LNG generation capacities from 43.5 gigawatts in 2023 to 64.6 gigawatts by 2036 as a consequence, (iii) domestic renewable energy generation capacity is projected to expand from 32.8 gigawatts in 2023 to 108.3 gigawatts by 2036, and (iv) carbon-free power sources such as hydrogen-LNG and ammonia-coal blended combustion will be utilized to achieve 2050 carbon neutrality. The introduction of such carbon-free power sources can minimize stranded assets, i.e., assets that have become obsolete or non-performing, by recycling existing coal-fired power plants and system facilities connected thereto. Hydrogen and ammonia-blended power generation is expected to reach 47.4 terawatt-hour in 2036, accounting for 7.1% of the total annual power generation.

In June 2019, the Ministry of Trade, Industry and Energy adopted the Third Basic National Energy Plan following consultations with representatives from civic groups, the energy industry and academia. The Third Basic National Energy Plan, which is a comprehensive plan that covers the entire spectrum of energy industries in Korea, covers the period from 2019 to 2040. The Third Basic National Energy Plan is consistent with the First and the Second Basic National Energy Plans in terms of the general policy direction and aims to promote sustainable growth and improvement of people’s quality of life by converting to renewable energy. Specifically, it establishes the following five key tasks: (i) strengthening management of energy demand from various sectors, such as commerce and transportation, and promoting a rational electricity tariff system to improve the national energy consumption efficiency by 38% and reduce the energy demand by 18.6% by 2040; (ii) converting to clean and safe energy through gradual reduction of nuclear power generation and decisive reduction of coal power generation by prohibiting construction of new coal-fired power plants and increasing the proportion of renewable energy sources to approximately 35% by 2040; (iii) expanding the power distribution in areas near those with demands for renewable energy and fuel cells and strengthening the roles and responsibilities of local governments; (iv) fostering the growth of the future energy industries (including renewable energy, hydrogen fuel and other efficient sources of energy linked to technology), promoting the value-add for traditional energy industries and maintaining a core energy ecosystem for nuclear power plants; and (v) improving the energy, gas and heat market systems to facilitate the national energy conversion and building platforms based on big data to foster creation of new energy industries.

The Ministry of Trade, Industry and Energy is currently preparing the Fourth Basic National Energy Plan to be announced in 2024. The Government inaugurated in May 2022 announced the draft direction of the new Government’s energy policy in July 2022 that set the following five fundamental basis for the Fourth Basic National Energy Plan: first, redefining a feasible and rational energy mix; second, establishing strong resource and energy security; third, improving efficiency of energy demand and restructuring the energy market based on market principles; fourth, promoting the development and export of new energy businesses; and finally, strengthening energy welfare and the applicability of relevant policies. Through this policy direction, we expect to promote balanced development in nuclear power, renewable energy, and hydrogen energy nationwide, which will decrease the proportion of energy generated from fossil fuels.

However, we cannot assure that the Tenth Basic Plan, the Third and Fourth Basic National Energy Plans, or their respective successor plans will successfully achieve their intended goals, the foremost of which is to ensure, through carefully calibrated capacity expansion and other means, balanced overall electricity supply and demand in Korea to end users while promoting efficiency and environmental friendliness in the consumption and production of electricity. If there is significant variance between the projected electricity supply and demand considered in planning our capacity expansions and the actual electricity supply and demand, or if these plans otherwise fail to meet their intended goals or have other unintended consequences, this may result in inefficient use of our working capital, and undue financing costs on the part of us and our generation subsidiaries, among others, which may have a material adverse effect on our results of operations, financial condition and cash flows.

From time to time, we may experience temporary power shortages or circumstances bordering on power shortages due to factors beyond our control, such as extreme weather conditions. Such circumstances may lead to increased end-user complaints and greater public scrutiny, which may in turn require us to modify our capacity expansion plans, and if we were to substantially modify our capacity plans, this might result in additional capital expenditures and, as a result, have a material adverse effect on our results of operations, financial condition and cash flows.

Although the Government makes significant efforts to encourage conservation of electricity, including through demand management programs, there is no assurance that such efforts will have the desired effect of substantially reducing the demand for electricity or improving efficient use thereof. See Item 4.B. “Business Overview—Sales and Customers.”

We are subject to various environmental legislations, regulations and related Government initiatives, including in relation to climate change and carbon neutrality, which could cause significant compliance costs and operational liabilities.

We are subject to national, local and overseas environmental laws and regulations, including increasing pressure to reduce emission of carbon dioxide from our electricity generation. Our operations could expose us to the risk of substantial liability relating to environmental, health and safety issues, such as those resulting from the discharge of pollutants and carbon dioxide into the environment and the handling, storage and disposal of hazardous materials. We may be responsible for the investigation and remediation of environmental conditions at current or former operational sites. We may also be subject to related liabilities (including liabilities for environmental damage, third-party property damage or personal injury) resulting from lawsuits brought by the Government or private litigants. In the course of our operations, hazardous wastes may be generated, disposed of or treated at third-party-owned or -operated sites. If those sites become contaminated, we could also be held responsible for the cost of investigation and remediation of such sites for any related liabilities, as well as for civil or criminal fines or penalties.

We intend to fully comply with our environmental obligations. However, our environmental measures, including the use of, or replacement with, environment-friendly but more expensive parts and equipment and budgeting capital expenditures for the installation or modification of such facilities, may result in increased operating costs and liquidity requirement. The actual cost of installation, replacement, modification and/or operation of such equipment and related liquidity requirement may depend on a variety of factors that are beyond our control. There is no assurance that we will continue to be in material compliance with legal or regulatory requirements or satisfy social norms and expectations in the future in relation to the environment, including in respect of climate change.

In recent years, partly driven by growing public awareness and sensitivity toward climate change and other environmental issues as well as in an effort to capture the economic and social potential associated with renewable energy and “new energy”-related industries (such as smart grids, energy storage systems and electrical vehicles, among others), the Government has introduced and implemented a number of new measures designed to reduce greenhouse gas emission, minimize environmental damage and spur related business opportunities. Some key examples of such Government initiatives pertinent to our and our generation subsidiaries’ operations are as follows:

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Greenhouse Gas Emission Trading System, Related Emission Reduction Targets and the Greenhouse Gas Reduction Roadmap.

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In accordance with the Act on Allocation and Trading of Greenhouse Gas Emission Allowances enacted in March 2013, the Government implemented a greenhouse gas emission trading system under which the Government will allocate the amount of permitted greenhouse gas emission to companies by industry and a company whose business emits more carbon than the permitted amount is required to purchase the right to emit more carbon through the Korea Exchange. The categories of allowances traded include the Korean Allowance Unit (KAU), which is the emissions allowance allocated to applicable companies by the Government; Korean Credit Unit (KCU), which is a tradable unit converted from external carbon offset certifications including the Korean Offset Credit; and Korean Offset Credit (KOC), which is the verified carbon offset credit obtained by companies for reducing carbon emissions through absorption or otherwise. The greenhouse gas emission trading system is expected to be implemented in three stages. During the first phase (2015 to 2017), the Government gradually has set up and conducted a test run of the trading system to ensure its smooth operation, allocating the greenhouse gas emission allowances free of charge. In July 2018, the Government released the allocation plan for the second phase (2018 to 2020), during which 97% of the greenhouse gas emission allowances were allocated free of charge, with 3% allocated through an auction. During the third phase (2021 to 2025), the Government expanded the scale of the system with aggressive greenhouse gas emission reduction targets and allocating 10% of the greenhouse gas emission allowances through an auction.

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In connection with the Climate Change Response Initiatives and the 2030 National Greenhouse Gas Reduction Roadmap announced by the Government in December 2016, the Government subsequently announced the Long-term Low Greenhouse Gas Emission Development Strategies, which presents a long-term vision and national strategy for achieving carbon neutrality in 2050, and the Nationally Determined Contributions (“NDC”), which sets forth the greenhouse gas reduction targets by 2030. According to the Enforcement Decree of the Framework Act on Carbon Neutrality and Green Growth to Cope with Climate Crisis established in March 2022 and the latest figures of NDC announced by the Government in October 2021, the national target emission level in 2030 was 436.6 million tons and represents 40% reduction as compared to 2018. The target emission level for the Transformation sector (electricity and heating) as a whole which we are the part of was 149.9 million tons and represents 44.4% reduction as compared to 2018. Following the National Basic Plan for Carbon Neutrality & Green Growth established in April 2023, the Government has mandated annual sector-specific greenhouse gas reduction targets for the next 20 years from 2023 to 2042 and measures to achieve such targets to be formulated and implemented every five years. In terms of the NDC, the national target emission level remained unchanged but the latest target emission level in 2030 of the Transformation sector increased to 145.9 million tons, which represents 45.9% reduction compared to 2018. We cannot assure you that the reduction target will not be further raised in the future.

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Adhering to such emission and greenhouse gas reduction requirement may result in significant additional compliance costs. For example, the daily market price of the Korean Allowance Units (KAU), one of the categories of allowance traded on the Korea Exchange and allocated to applicable companies by the Government, was Won 8,640 per ton in early 2015, and the price has increased continuously thereafter, reaching its peak price at Won 42,500 per ton on April 2, 2020. Since then, the price has decreased and, as of the March 31, 2023, the price has been formed around Won 14,650 per ton. We cannot predict how the price of the KAUs will fluctuate over time, and such volatility may adversely affect our results of operation, financial condition and cash flows.

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Obligatory and Voluntary Regulation of Coal-Fired Generation Units. As a measure to address the high level of particulate matter pollution, in October 2018, the Government introduced a pilot regulation to lower the output of 35 coal-fired generation units to approximately 80% of their capacity that emit more than a certain amount of particulate matter. The regulation was formally implemented in January 2019, targeting 40 coal-fired power plants with high emissions of particulate matter. From March to June 2019, the scope expanded to cover 60 units in total. From November 2019, the Government pursued a reduction of coal-fired generation units in order to implement the Special Measures to Respond to the High Concentration Period (December to March) of Particulate Matter. We plan to continue to participate in the effort to reduce the particulate matter emissions from coal-fired generation units, not only during the winter but also during the spring. For example, from December 2022 to March 2023, up to 9 coal-fired generation units were shut down, with a maximum of 36 coal-fired generation units subject to a cap of 80% on the output within the remaining reserve capacity range. Additionally, the Government adjusted the schedule to close down two decrepit coal-fired generation units (Boryeong #1 and #2), which were shut down in December 2020. Also, other coal-fired generation units, Samcheonpo #1 and #2 were shut down in May 2021 and Honam #1 and #2 units in December 2021. According to the Tenth Basic Plan announced in January 2023, the total coal-fired power plant capacity in 2036 will decrease to 27.1 gigawatts from 40.2 gigawatts in 2023, and its percentage of total power generation capacity will decrease to 11.3% in 2036 from 27.1% in 2023. In 2021 and 2022, our generation subsidiaries introduced a voluntary regulation to lower the output of coal-fired generation units, suspending the operations and imposing a cap of 80% on the output of some coal-fired generation units. While such measures may be subject to change, we expect to incur significant costs of complying with such measures, including in connection with more stringent particulate matter pollution regulations, retrofitting and overall replacement of environmental facilities.

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Coal and LNG Consumption Taxes. In January 2014, largely based on policy considerations of tax equity among different fuel types as well as environmental concerns, the Ministry of Economy and Finance announced that, effective July 1, 2014, consumption tax will apply to bituminous coal, which previously was not subject to consumption tax unlike other fuel types such as LNG or bunker oil. Pursuant to the amended Individual Consumption Tax Act effective as of April 1, 2019, which involved an increase of the unit tax rate for coal by Won 10 per kilogram across the board, the base tax rate (which is subject to certain adjustments) is Won 46 per kilogram for bituminous coal; however, due to concerns on the potential adverse effect on industrial activities, the applicable tax rate is applied differently based on the net heat generation amount. The currently applicable tax rate for bituminous coal is Won 43 per kilogram for net heat generation of less than 5,000 kilocalories, Won 46 per kilogram for net heat generation of 5,000 to 5,500 kilocalories and Won 49 per kilogram for net heat generation of 5,500 kilocalories or more. In contrast, the consumption tax and surcharge on importation of LNG decreased by Won 48 and Won 20.4 per kilogram, respectively, which came into effect in April 2019. The currently applicable consumption tax rate and surcharge on importation of LNG are Won 12 and Won 3.8 per kilogram, respectively. However, following rapid increases in the price of LNG and bituminous coal, in order to mitigate the adverse impact of price increases in the global energy market and manage the inflation rate, the applicable individual consumption tax rates for coal and LNG have been temporarily decreased. From August 2022 to June 2023, the relevant individual consumption tax rate for coal and LNG decreased by 15%. The individual consumption tax rate for LNG decreased from Won 12 per kilogram to Won 10.2 per kilogram, and the individual consumption tax rate for bituminous coal for net heat generation of 5,000 to 5,500 kilocalories decreased from Won 46 per kilogram to Won 39.1 per kilogram (for net heat generation of less than 5,000 kilocalories, the rate decreased from Won 43 per kilogram to Won 36.5 per kilogram, and for net heat generation of 5,500 kilocalories or more, the rate decreased from Won 49 per kilogram to Won 41.6 per kilogram). Notwithstanding the recent trend, we expect any future increase in tax rates may adversely affect our overall fuel costs and power purchase cost.

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Renewable Portfolio Standard. Under this program, each of our generation subsidiaries is required to generate a specified percentage of total electricity to be generated by such generation subsidiary in a given year in the form of renewable energy or, in case of a shortfall, purchase a corresponding amount of a Renewable Energy Certificate (a form of renewable energy credit) from other generation companies whose renewable energy generation surpass such percentage. The target percentage was 6.0% in 2019, 7.0% in 2020, 9.0% in 2021 and 12.5% in 2022. In 2021, all six of our generation subsidiaries met the target through renewable energy generation and/or the purchase of a Renewable Energy Certificate. Compliance by our generation subsidiaries of the 2022 target is currently under evaluation, and if any generation subsidiary is found to have failed to meet the target for 2022 or for subsequent years, such generation subsidiary may become subject to fines. From October 2021, an amendment to the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy raised the upper limit of the target percentage even higher to 25% from the previous threshold of 10%. The Enforcement Decree of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy was amended and became effective on January 4, 2022 to gradually increase the annual upper limit of target percentage to 14.5% in 2023, 17.0% in 2024, 20.5% in 2025 in order to raise the upper limit of target percentage to 25% in 2026. However, as the Tenth Basic Plan decreased the target percentage of domestic renewable energy generation from 30.2% to 21.6% in 2030, on January 13, 2023, an amended bill to the Enforcement Decree has been introduced, proposing to change the target rate for 2023 to 13.0%, for 2024 to 13.5%, for 2025 to 14.0% in order to raise the upper limit of target percentage to 25% after 2030. Even though the recent amendment will delay the target dates, the proposed target percentages may result in additional expenses for our generation subsidiaries.


	2023			2024			2025			2026			2027
Target Percentage under Renewable Portfolio Standard		13.0	%		13.5	%		14.0	%		15.0	%		17.0	%

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Renewable Energy Expansion Plan. In December 2017, the Ministry of Trade, Industry and Energy announced the Renewable Energy 3020 Plan, an initiative to increase the generation and use of renewable energy on a nationwide basis. According to the plan, the Government planned to increase the required percentage of total electricity to be generated from renewable energy sources from 7% in 2016 to 20% by 2030 and the domestic renewable energy generation capacity to 72.7 gigawatts by 2030 through the expansion of solar and wind power generation capacities to 46.5 gigawatts and 19.3 gigawatts, respectively. According to the Tenth Basic Plan announced in January 2023, the Government has set national targets of 108.3 gigawatts in renewable energy generation capacity in 2036, with the goal of increasing the percentage of total electricity to be generated from renewable energy sources to 30.6% by 2036.

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New Energy Industry Fund. In January 2016, the Ministry of Trade, Industry and Energy announced an initiative to promote the new energy industry by creating the New Energy Industry Fund, which is made up of funds sponsored by Government-affiliated energy companies. We contributed Won 500 billion to the funds in 2016. The purpose of these funds is to invest in substantially all frontiers of the new energy industry, including renewable energy, energy storage systems, electric vehicles, small-sized self-sustaining electricity generation grids known as “micro-grids,” among others, as well as invest in start-up companies, ventures, small- to medium-sized enterprise and project businesses that engage in these businesses but have not previously attracted sufficient capital from the private sector.

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Environmental and safety considerations in electricity supply and demand planning. In March 2017, the Electric Utility Act was amended to the effect that starting in June 2017, future national planning for electricity supply and demand in Korea should consider the environmental and safety impacts of such planning. Accordingly, the costs related to environmental and safety impacts, such as the desulfurization costs, have been reflected in the variable cost of generating electricity of each generation unit since August 2019. In December 2019, the Regulation on the Operation of the Electricity Market was revised to reflect the cost of trading greenhouse gas emission allowances in the variable cost of generating electricity of each generation unit and the revision was implemented in January 2022.

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Renewable Energy 100. In line with the spread of Renewable Energy 100 (“RE100”), a global campaign by companies around the world to cover 100% of their electricity use with renewable energy by 2050, the Government introduced its own version of RE100 that allows companies and other consumers to choose energy sources from which their electricity is generated. In order for a domestic company to participate in RE100, it may purchase renewable energy through us in a competitive bidding process and be issued with a certificate of use of renewable energy, which we refer to as the Green Premium system, or enter into a power purchase agreement (“PPA”) either with a renewable energy generator through us as an intermediary (“third-party PPA”) or with a renewable energy generator directly such that the generator will supply electricity to the company without going through the existing electricity market (“direct PPA”). The relevant legislation for the direct PPA was enacted in the National Assembly in March 2021 and has been in force since October 2021. The Ministry of Trade, Industry and Energy finalized and announced detailed guideline for direct PPA in September 2022. As of March 31, 2023, there are four third-party PPA of total contracted capacity of 9.5 megawatts and one direct-PPA of total contracted capacity of 2.3 megawatts, which are effective under the related law and guideline. If there is an expansion in the use of direct PPA, it may adversely affect our market share in electricity sales.

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2050 Carbon-Neutrality Declaration. In response to the Paris Agreement and the United Nations Framework Convention on Climate Change (“UNFCCC”)’s goal to comprehensively replace fossil fuels and achieve global net-zero emission by 2050, the Korean national assembly has passed a non-binding resolution on September 24, 2020 to establish a special committee on climate change and urge the Government to meet its 2030 carbon reduction goal and bolster its efforts to achieve carbon neutrality by 2050. On November 27, 2020, the Government officially announced the Government’s commitment to implement policies in all areas of the industry to achieve Korea’s carbon neutrality by 2050. On

December 10, 2020, the Government followed up with broad 2050 carbon neutrality development strategies. In May 2021, the Government launched a carbon neutrality committee which issued a preliminary draft of the carbon neutrality scenario in August 2021. After going through the process of collecting opinions from the consultative bodies in various sectors and citizen participation groups, the committee deliberated and finalized the 2050 carbon neutrality scenarios in October 2021. According to the two scenarios that have been finalized, both them will aim to achieve net-zero domestic carbon dioxide emissions by 2050. Scenario A will completely suspend thermal power generation, while scenario B will actively utilize technologies such as carbon capture, utilization and storage (“CCUS”) while allowing some thermal power generation to continue. If any specific regulation or policy affecting our business is announced or implemented, we may experience an increased regulatory scrutiny over carbon dioxide emission from our electricity generation activities and related projects overseas. We and our generation subsidiaries announced the 2050 Carbon-Neutrality Vision in November 2021 and will further invest in various renewable energy power generation projects, new business opportunities and core technology development with a goal of entirely replacing domestic coal power generation by 2050. In the process of pursuing such, our business strategy and investment plan may change from time to time and it may result in additional costs to us, including, among other things, increased production costs, additional taxes, reduced emission allowances or additional restrictions on production or operations, particularly as they may relate to our power generation business. In addition, the achievement of carbon neutrality by 2050 may be delayed or made impossible due to unexpected changes in policies or power market conditions including a major shift in the supply and demand of electricity.

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Hydrogen Energy Related Legislations. Following the amendment to the Hydrogen Economy Promotion and Hydrogen Safety Management Act in June 2022 and its Enforcement Decree in December 2022, the Minister of Trade, Industry and Energy has designated KEPCO and other entities under Community Energy System as the buyers of hydrogen-generated electricity. We will be required to enter into contract with a hydrogen-generation business entity who is selected as the contractor after competitive bidding process. The bidding market is comprised of the general hydrogen market and the clean hydrogen power generation market, as categorized based on the type of fuel used. In consideration of the current ecosystem in which fuel cells are used, the general hydrogen power generation market is open to all kinds of hydrogen plants including plants using extracted or by-product hydrogen. On the other hand, the clean hydrogen power generation market is a market where only generators using clean hydrogen plants can participate. Clean hydrogen is categorized into carbon-free hydrogen, low-carbon hydrogen, and low-carbon hydrogen compounds (including ammonia) according to greenhouse gas emissions in the production and import procedure of hydrogen. The system for certifying clean hydrogen plants will be put in place based on criteria, such as the amount of carbon dioxide emissions, set by relevant enforcement ordinances. The bidding market commences two years earlier in the general hydrogen market and three years earlier in the clean hydrogen market than the actual commercial operation of plants and purchase of power generated. In March 2023 but prior to an official announcement, the Government notified the bidding volume for the period from 2023 to 2025 in accordance with the Tenth Basic Plan, as shown in the table below.


	Year of bidding market commencement
	2023				2024				2025
	Year of commercial operation commencement		Volume (GWh)		Year of commercial operation commencement		Volume (GWh)		Year of commercial operation commencement		Volume (GWh)
General hydrogen market		2025		1,300		2026		1,300		2027		1,300
Clean hydrogen market		—		—		2027		3,500		2028		3,000

The amount of hydrogen-generated electricity to be purchased by us will be determined by the Minister of Trade, Industry and Energy after taking into consideration the Basic Plan Relating to the Long-Term Supply and Demand of Electricity and Hydrogen Economy Implementation Basic Plan and it shall be within 10% of the aggregate power generated domestically during the previous year. The Minister shall allow us to reflect the cost arising from the purchase of hydrogen energy into the electricity tariff pursuant to the above Act but a detailed method has not been specified yet.

Complying with these Government initiatives and operating programs in furtherance thereof has involved and will likely continue to involve significant costs and resources on our part, which may adversely affect our results of operation, financial condition and cash flows. Our cost of complying with the Renewable Portfolio Standard increased as the target percentage for compliance increased in 2022. We expect our future compliance costs may increase as the requirements under Government initiatives and operating programs continue to become more rigorous. We may not be able to pass on the increased cost to customers at a sufficient level or on a timely basis. Further, we and our generation subsidiaries could also become subject to substantial fines and other forms of penalties for non-compliance. Even without such financial losses, increased public awareness and adverse publicity about potential impacts on climate change or environmental harm from us or our industry could harm our reputation or otherwise impact the Company adversely. In recent years, investors have also begun to show increased interest about sustainability and climate change as it relates to their investment decisions.

According to the new tariff system which came into effect on January 1, 2021, the Government introduced an additional component to the tariff called the Climate/Environment Related Charge. Previously, our climate and environment costs were embedded in the Usage Charge component of the tariff and our consumers could not discern the exact magnitude of such costs. By separating it out as an independent component, we intend to provide more information and transparency to our customers while having the flexibility to adjust it in alignment with the underlying costs. The Climate/Environment Related Charge for the coming year is calculated by multiplying (i) our total estimated costs of complying with the Renewable Portfolio Standard program, the Greenhouse Gas Emission Trading System and the coal-fired generation reduction program for the current year, and then dividing it by the electricity sales projected for the coming year (the “Climate/Environment Related Base Rate”), and (ii) the amount of electricity consumed. The value of the Climate/Environment Related Base Rate for 2022 was Won 7.3 per kilowatt-hour. In accordance with the tariff increase plan we announced in December 2022, we further reflected increased environmental costs in 2023 to raise the Climate/Environment Related Base Rate by Won 1.7 to Won 9.0 per kilowatt-hour. As such case illustrates, even though the Climate/Environment Related Charge is planned to be adjusted every year by reflecting the change in climate and environment-related costs, the Government may change the date of adjustment in consideration of different policy objectives. Therefore, there is no guarantee that the Climate/Environment Related Charge will be regularly updated, even though our climate and environment-related costs will likely increase each year. If there are discrepancies between our costs and the Climate/Environment Related Charge, we may accumulate such discrepancies and reflect them in our Total Comprehensive Cost. However, the electricity rate based on the Total Comprehensive Cost needs to be approved by the Government to be revised. There is no assurance that, particularly given the wide-ranging policy priorities of the Government, it will in fact raise the electricity rate to a level sufficient to fully cover additional costs associated with implementing and operating programs as described in this risk factor and do so on a timely basis or at all. If the Government does not do so or provide us and our generation subsidiaries with other forms of assistance to offset the costs involved, our results of operation, financial condition and cash flows may be materially and adversely affected.

See Item 4.B. “Business Overview—Environmental, Social and Governance Programs.”

We may require a substantial amount of additional indebtedness to refinance existing debt and for future capital expenditures.

We anticipate that a substantial amount of additional indebtedness will be required in the coming years in order to refinance existing debt, make capital expenditures for construction of generation plants and other

facilities and/or make acquisitions, invest in renewable energy and the “new energy industry” projects and fund our overseas businesses. In 2020, 2021 and 2022, our capital expenditures in relation to the foregoing amounted to Won 15,485 billion, Won 13,964 billion and Won 13,886 billion, respectively, and our budgeted capital expenditures for 2023, 2024 and 2025 amount to Won 16,927 billion, Won 16,306 billion and Won 17,908 billion, respectively.

Furthermore, as fuel prices surge, our cost of purchasing electricity from domestic generation companies through the Korea Power Exchange may increase significantly. If we fail to recoup more tariff from our customers to account for such electricity sales-related costs, our debt may further increase.

As we experienced increased net losses in 2022 as global energy prices increased significantly and the power purchase costs increased accordingly, we recently issued more debt securities than before to meet increased working capital requirement. On December 28, 2022, the National Assembly of Korea passed an amendment to Article 16 of KEPCO Act which increased our debt ceiling on total outstanding debt securities on a separate basis to be no greater than five times (or six times if the Minister of the Ministry of Trade, Industry and Energy approves if it is urgently required to resolve a business crisis situation) the sum of our share capital and reserves updated at the end of each year. Such share capital and reserves are calculated on a separate basis under the KEPCO Act. Before such amendment, our debt ceiling was two times the sum of our share capital and reserves. Such increase in debt ceiling will be effective until December 31, 2027 and we may make use of the new debt ceiling to issue more debt securities to cover our losses, refinance existing debt and finance new capital expenditures. However, if the sum of our share capital and reserves decrease (including as a result of continued significant net losses), our debt ceiling will decrease as well and there will be no assurance that we can meet our funding requirements for capital or operational expenditures or debt repayment obligations, which situation could have a material adverse impact on our business, results of operations and financial condition.

While we are not currently experiencing material difficulties in procuring long-term and short-term borrowings, there is no assurance that we will continue to be able to do so, particularly given the potential risk of increasing financial losses and the adverse business environment as discussed above. We expect that a portion of our long-term debt will need to be paid or refinanced through foreign currency-denominated borrowings and capital raising in international capital markets. Such financing may not be available on terms commercially acceptable to us or at all, especially if the global financial markets experience significant turbulence or a substantial reduction in liquidity or due to other factors beyond our control. If we are unable to obtain financing on commercially acceptable terms on a timely basis, or at all, we may be unable to meet our funding requirements for capital expenditures or debt repayment obligations, which could have a material adverse impact on our business, results of operations and financial condition.

We and our generation subsidiaries have undertaken various programs to reduce debt and improve the overall financial health. For further information, see Item 4.B. “Business Overview—Financial Stabilization Plan and Related Activities.” Despite our best efforts, however, for reasons beyond our control, including macroeconomic environments, government regulations and market forces (such as international market prices for our fuels), we cannot assure whether we or our generation subsidiaries will be able to successfully reduce debt burdens or otherwise improve our financial health to a level that would be optimal for our capital structure. If we or our generation subsidiaries fail to do so or the measures taken by us or our generation subsidiaries to reduce debt levels or improve financial health have unintended adverse consequences, such developments may have an adverse effect on our business, results of operations and financial condition.

The movement of Won against the U.S. dollar and other currencies may have a material adverse effect on us.

The Won has fluctuated significantly against major currencies from time to time. Even slight depreciation of Won against U.S. dollar and other foreign currencies may result in a material increase in the cost of fuel and equipment purchased by us from overseas since the prices for substantially all of the fuel materials and a significant portion of the equipment we purchase are denominated in currencies other than Won, generally in U.S. dollar.

Changes in foreign exchange rates may also impact the cost of servicing our foreign currency-denominated debt. As of December 31, 2022, 14.7% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions, was denominated in foreign currencies, principally U.S. dollar. In addition, even if we make payments in Won for certain fuel materials and equipment, some of these fuel materials may originate from other countries and their prices may be affected accordingly by the exchange rates between the Won and foreign currencies, especially the U.S. dollar. Since the substantial majority of our revenues are denominated in Won, we must generally obtain foreign currencies through foreign currency-denominated financings or from foreign currency exchange markets to make such purchases or service such debt. As a result, any significant depreciation of Won against the U.S. dollar or other major foreign currencies will have a material adverse effect on our profitability and results of operations.

We may not be successful in implementing new business strategies.

As part of our overall medium- to long-term business strategies created in 2022, we plan to (i) establish power grid system which could further contribute to achieving carbon neutrality, (ii) expand clean energy and promote strategic demand response, (iii) lead future energy market and improve sales competitiveness, (iv) lead platform-based new businesses, (v) transform overseas business portfolio to focus on eco-friendly projects and core competencies, (vi) secure future technologies and build a research and development ecosystem, (vii) promote digitalization in overall supply chain, and (viii) establish a highly reliable and highly efficient management system with respect to human beings and environment.

Due to their inherent uncertainties, such new and expanded strategic initiatives expose us to a number of risks and challenges, including the following:

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there may be restrictions on business diversification due to various regulations that we and our subsidiaries must comply with;

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new and expanded business activities may require unanticipated capital expenditures, although our revenue may not be sufficient to cover such expenditures;

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if domestic and foreign competitions intensify due to a limited pool of professionals and core technology to pursue new businesses, we may lose competitiveness;

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new and expanded business activities may result in less growth or profit than we currently anticipate, and there can be no assurance that such business activities will become profitable at the level we desire or at all;

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certain of our new and expanded businesses, particularly in the areas of renewable energy, require substantial Government subsidies to become profitable, and such subsidies may be substantially reduced or entirely discontinued;

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we may fail to identify and enter into new business opportunities in a timely fashion, putting us at a disadvantage vis-à-vis competitors; and

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we may need to hire or retrain personnel to supervise and conduct the relevant business activities.

As part of our business strategy, we may also seek, evaluate or engage in potential acquisitions, joint ventures, strategic alliances, restructurings, combinations, rationalizations, divestments or other similar opportunities. The prospects of these initiatives are uncertain, and there can be no assurance that we will be able to successfully implement or grow new ventures, and these ventures may prove more difficult or costly than what we originally anticipated. In addition, we regularly review the profitability and growth potential of our existing and new businesses. As a result of such review, we may decide to exit from or to reduce the resources that we allocate to new or existing ventures in the future. There is a risk that these ventures may not achieve profitability or operational efficiencies to the extent originally anticipated, and we may fail to recover investments or

expenditures that we have already made. Any of the foregoing may have a material adverse effect on our reputation, business, results of operations, financial condition and cash flows.

We plan to pursue overseas expansion opportunities that may subject us to different or greater risks than those associated with our domestic operations.

While our operations have, to-date, been primarily based in Korea, we and our generation subsidiaries may expand, on a selective and opportunistic basis, overseas operations in the future. In particular, we and our generation subsidiaries may further expand the construction and operation of renewable energy power plants, transmission and distribution.

Overseas operations often involve risks that are different from those we face in our domestic operations, including the following:

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challenges of complying with multiple foreign laws and regulatory requirements, including tax laws and laws regulating our operations and investments;

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volatility of overseas economic conditions, including fluctuations in foreign currency exchange rates;

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difficulties in enforcing creditors’ rights in foreign jurisdictions;

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risk of expropriation and exercise of sovereign immunity where the counterparty is a foreign government;

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difficulties in establishing, staffing and managing foreign operations;

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differing labor regulations;

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political and economic instability, natural calamities, war and terrorism;

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lack of familiarity with local markets and competitive conditions;

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changes in applicable laws and regulations in Korea that affect foreign operations;

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obstacles to the repatriation of earnings and cash; and

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environmental regulations and public complaints regarding overseas coal-fired power plants.

Any failure by us to recognize or respond to these differences may adversely affect the success of our operations in those markets, which in turn could materially and adversely affect our business and results of operations.

Furthermore, while we seek to enter into overseas business opportunities in a prudent manner, some of our new international business ventures carry inherent risks that are different from our traditional business of electricity power generation, transmission and distribution. While the overseas businesses in the aggregate currently do not comprise a material portion of our overall business, the actual revenues and profitability from, and investments and expenditures into, such ventures may be substantially different from what we plan or anticipate and may have a material adverse impact on our overall business, results of operations, financial condition and cash flows.

An increase in electricity generated by and/or sourced from independent power producers may erode our market position and hurt our business, growth prospects, revenues and profitability.

As of December 31, 2022, we and our generation subsidiaries owned approximately 59.9% of the total electricity generation capacity in Korea (excluding plants generating electricity for private or emergency use). New entrants to the electricity business will erode our market share and create significant competition, which could have a material adverse impact on our financial condition and results of operations.

In particular, we compete with independent power producers with respect to electricity generation. The independent power producers accounted for 31.3% of total power generation in 2022 and 40.1% of total generation capacity as of December 31, 2022. As of December 31, 2022, there were 36 independent power producers in Korean electricity market, excluding 5,313 renewable energy producers. Private enterprises became permitted to own and operate coal-fired power plants in Korea only after the Ministry of Trade, Industry and Energy approved plans for independent power producers to construct coal-fired power plants under the Sixth Basic Plan announced in February 2013. Under the Tenth Basic Plan announced in January 2023, three coal-fired power plants are planned to be constructed by independent power producers by 2024. Two of the three coal-fired power plants planned for construction will be completed in 2023, followed by one in 2024. While it remains to be seen whether construction of these generation units will be completed as scheduled, if these units were to be completed as scheduled and/or independent power producers are permitted to build additional generation capacity (whether coal-fired or not), our market share in Korea may decrease, which may have a material adverse effect on our results of operations and financial condition.

In addition, under the Community Energy System adopted by the Government in 2004, a minimal amount of electricity is supplied directly to consumers on a localized basis by independent power producers outside the cost-based pool system. Such system is used by our generation subsidiaries and most independent power producers to distribute electricity nationwide. The purpose of this system is to geographically decentralize electricity supply and thereby reduce transmission losses and improve the efficiency of energy use. These entities do not supply electricity on a national level but are licensed to supply electricity on a limited basis to their respective districts under the Community Energy System. As of March 31, 2023, the aggregate generation capacity of suppliers participating in the Community Energy System amounted to less than 2% of that of our generation subsidiaries in the aggregate. We currently do not expect the Community Energy System to be widely adopted, especially in light of the significant level of capital expenditure required for such direct supply. However, if the Community Energy System is widely adopted, it may erode our currently dominant market position in the generation and distribution of electricity in Korea and may have a material adverse effect on our business, results of operations and financial condition.

While we are currently the dominant market player in the electricity distribution in Korea, we cannot assure you that our market dominance will not face potential erosion in the future. For example, in June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector), which contemplated a gradual opening of the electricity trading market to the private sector. Although the proposal was withdrawn after a year of deliberation, a number of economists and civic groups are continuing to demand for the liberalization of the electricity trading market. It is difficult to predict whether and in what direction the liberalization of the electricity trading market will happen in the future, and such event may result in substantial reduction of our market share in electricity distribution in Korea, which would have a material adverse effect on our business, results of operation and cash flows.

See also Item 4.B. “Business Overview—Competition.”

Labor unrest or increases in labor cost may adversely affect our operations.

We and each of our generation subsidiaries have separate labor unions. As of December 31, 2022, approximately 74.0% of our and our generation subsidiaries’ employees in the aggregate were members of these labor unions. Since a six-week labor strike in 2002 by union members of our generation subsidiaries in response to a proposed privatization of one of our generation subsidiaries, there has been no material labor dispute. However, we cannot assure you that there will not be a major labor strike or other material disruptions of operations by the labor unions of us and our generation subsidiaries if the Government resumes privatization or other restructuring initiatives or for other reasons, which may adversely affect our business and results of operations.

Furthermore, the Government, as part of a response to low fertility amidst an aging population in Korea and to make the lives of workers more stable, has pledged to reduce the number of non-permanent workers and

increase the employment of permanent workers, in part by transitioning from non-permanent to permanent positions in the public sector. We have completed transitioning temporary workers to permanent workers at the end of 2019. Our generation subsidiaries have partially completed transitioning of non-permanent workers to permanent positions by hiring them for an indefinite period or establishing subsidiaries and hiring them through such subsidiaries. Our thermal generation subsidiaries plan to form a labor-management consultative body to transition the in-house subcontracted workers for the fuel and environmental facilities to permanent positions. Although the Government guidelines suggest that we transition the non-permanent workers to permanent positions within our existing budget for the related business, we cannot assure you that this will not result in increased costs for us or our generation subsidiaries and have an adverse impact on us or our generation subsidiaries’ financial condition and results of operations.

Additionally, domestic and international policy changes may affect our relationship with our employees, such as the Government’s ratification of seven of the eight essential conventions of International Labor Organization and potential reformation of the public employee wage structure. We cannot assure you that such policy changes will not negatively affect our relationship with our employees, which may in turn adversely affect our business and results of operations.

Operation of nuclear power generation facilities inherently involves numerous hazards and risks, any of which could result in a material loss of revenues or increased expenses.

Through KHNP, we currently operate 25 nuclear-fuel generation units, among which Kori #2 has been shut down since April 8, 2023. KHNP submitted a safety evaluation report to the NSSC in April 2022 to seek approval for an extension of the life of Kori #2.

Operation of nuclear power plants is subject to certain hazards, including environmental hazards such as leaks, ruptures and discharge of toxic and radioactive substances and materials. These hazards can cause personal injuries or loss of life, severe damage to or destruction of property and natural resources, pollution or other environmental damage, clean-up responsibilities, regulatory investigation and penalties and suspension of operations. Nuclear power has a stable and relatively inexpensive cost structure (which is least costly among the fuel types used by our generation subsidiaries) and is the second largest source of Korea’s electricity supply, accounting for 29.6% of electricity generated in Korea in 2022. Due to significantly lower unit fuel costs compared to those for thermal power plants, our nuclear power plants are generally operated at full capacity with only routine shutdowns for fuel replacement and maintenance, with limited exceptions.

From time to time, our nuclear generation units may experience unexpected shutdowns or maintenance-related stoppage. For example, following an earthquake in the vicinity in September 2016, four nuclear generation units at the Wolsong site were shut down for approximately three months as part of a preventive and safety assurance program although these units were not directly affected by the earthquake. Any prolonged or substantial breakdown, failure or suspension of operation of a nuclear unit could result in a material loss of revenues, an increase in fuel costs related to the use of alternative power sources, additional repair and maintenance costs, greater risk of litigation and increased social and political hostility to the use of nuclear power, any of which could have a material adverse impact on our financial condition and results of operations.

In order to prevent damages to the nuclear facilities such as a result of the tsunami and earthquake in March 2011 in Japan, KHNP prepared a comprehensive safety improvement plan including, but are not limited to, installing additional automatic shut-down systems for earthquakes, extending coastal barriers for seismic waves, procuring mobile power generators and storage batteries, installing passive hydrogen removers at nuclear facilities and improving the radiology emergency medical system. All follow-up measures will be finalized in December 2024 due to changes in the plan. KHNP also developed 10 additional supplementary safety measures by analysis of overseas plants and its current operations and implemented nine of such measures in 2017, with the one remaining measure to be implemented by 2023. However, there is no assurance that a similar or worse natural disaster may require the adoption and implementation of additional safety measures, which may be costly and have a material adverse impact on our financial condition and results of operations.

In January 2023, the Government announced the Tenth Basic Plan which focuses on, among other things, optimizing nuclear power sources while minimizing coal-fired power sources and developing eco-friendly power sources. Accordingly, construction of nuclear generation units in a planning stage (Shin-Hanul #3 and 4) would resume and operation of ten other nuclear generation units including Kori #2 may continue beyond their original retirement dates in or before 2030 subject to KHNP’s intention and only upon the NSSC’s approval following a satisfactory safety evaluation. As for new nuclear plants under construction, we expect the construction of Shin-Hanul #2 will be completed in 2023 following Shin-Hanul #1 which commenced its commercial operation in December 2022, while construction of Saeul #3 and #4 (formerly named as Shin-Kori #5 and #6) is expected to complete in 2024 and 2025 respectively. We cannot assure you that there will not be new challenges by civic groups or changes in the Government’s policies that may interfere with the construction of these new nuclear units in the future. We may experience a loss of revenues and an increase in fuel costs (as nuclear fuel is the cheapest compared to coal, LNG or oil) as a result of such challenges, which could adversely affect our results of operation and financial condition. For example, in May 2019, a group of 730 Korean nationals brought a lawsuit against the NSSC to suspend the operation of Saeul #2 (formerly named as Shin-Kori #4). In July 2019, we applied to participate in the lawsuit as a stakeholder. In February 2021, the Seoul Administrative Court dismissed the plaintiffs’ claim. The plaintiffs subsequently appealed in March 2021 and the plaintiff’s appeal was dismissed by the Seoul High Court in November 2022. The plaintiff has filed a petition to appeal to the Supreme Court of Korea.

As mentioned above, there are ten other nuclear generation units whose life under their initial operating license will expire by 2030 including Kori #2 which has been shut down since April 8, 2023. Under the Tenth Basic Plan, we aim to continue their operation after such expirations, but we may find it difficult to have the life of those nuclear units extended. In April 2022, KHNP submitted a safety evaluation report to the NSSC to seek approval for an extension of the life of Kori #2, which shut down in April 2023. In September 2022, KHNP also submitted a safety evaluation report to the NSSC to seek approval for an extension of the lives of Kori #3 and Kori #4, which are scheduled to shut down in September 2024 and August 2025, respectively. As future procedures will be carried out in accordance with relevant laws and regulations, it is uncertain at this time whether such extension of life will be granted. The failure to extend the life of these units would result in a loss of revenues from such units and the increase in our overall fuel costs (as nuclear fuel is cheaper compared to coal, LNG or oil), which could adversely affect our results of operation and financial condition. In addition, heightened concerns regarding the safety of operating nuclear generation units could impede with our ability to operating them for an extended period of time or at all. For example, the nuclear power plant at Wolsong #1 unit began operations in 1982 and ended its operations in 2012 pursuant to its 30-year operating license. In February 2015, the NSSC evaluated the safety of operating Wolsong #1 unit and approved its extended operation until November 2022. However, a civic group filed a lawsuit to annul such decision, and in February 2017, the Seoul Administrative Court ruled against the NSSC. The NSSC appealed this decision, and the civic group filed an injunction to suspend the operation of the Wolsong #1 unit. The civic group’s injunction was denied in July 2017. KHNP, which operated the unit pursuant to the NSSC’s initial decision, has joined this lawsuit.

In addition, the current scheme for the construction and operation of nuclear generation units may be altered in the future and we cannot assure you that the current or future policies will not have an adverse impact on our or our generation subsidiaries’ financial condition and results of operations. In the past, in keeping with previous Eighth and Ninth Basic Plans to decrease the reliance on nuclear power sources, on June 15, 2018, the board of directors of KHNP decided to (i) retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the economic viability and regional sentiment of its continuing operation and (ii) discontinue the construction of Chunji #1 and #2 as well as Daejin #1 and #2 units. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1 unit. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Wolsong #1 unit accrued to Won 572,216 million and reversal of impairment loss was Won 16,693 million. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Chunji #1 and #2 as well as Daejin #1 and #2 units amounted to Won 38,886 million. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Shin-Hanul #3 and #4 units accrued to Won 134,736 million. However

as the Tenth Basic Plan announced in January 2023 aims to restart the construction of Shin-Hanul #3 and #4, we recognized the reversal of all the accrued impairment losses related to the Shin-Hanul #3 and #4. The Government revised the Enforcement Decree of the Electricity Business Act in June 2021 and enacted a notice that will allow KHNP to be compensated for reasonable costs incurred in relation to the phase-out of nuclear power plants in accordance with the Government’s energy transition policy. KHNP applied for such compensation related to Wolsong #1 in June 2022. However, even if KHNP may apply for such compensation, there is no guarantee that it will cover the entire cost as the scope of such compensation has not been specifically determined yet. If KHNP cannot recoup its total cost, it may have an adverse impact on our financial condition.

The construction and operation of our generation, transmission and distribution facilities involve difficulties, such as opposition from civic groups and uncertainties in maintaining permits and licenses, which may have an adverse effect on us.

From time to time, we encounter social and political opposition against construction and operation of our generation facilities (particularly nuclear units) and, to a lesser extent, our transmission and distribution facilities. For example, we recently faced intense opposition from local residents and civic groups to the construction of transmission lines in the Milyang area, which we resolved through various compensatory and other support programs. Such opposition delayed the schedule for completion of this project. Although we and the Government have undertaken various community programs to address concerns of residents in areas near our facilities, civic and community opposition could result in delayed construction or relocation of our planned facilities. In addition, our generation, transmission and distribution facilities generally require permits and licenses from the Government before we can operate them. For example, our nuclear power plants are operated under licenses for a fixed duration of time and such licenses can only be extended upon an approval by the NSSC following a satisfactory safety evaluation. Even in the case of a satisfactory safety evaluation and following approval, a civic or other group may file a lawsuit to challenge such evaluation and approval and apply for an injunction to prevent us from operating our facilities. Such civic and community opposition and the uncertainties in maintaining permits and licenses for our facilities could give rise to a material adverse impact on our business and results of operations.

Our risk management policies and procedures may not be fully effective at all times.

In the course of our operations, we must manage a number of risks, such as regulatory risks, market risks and operational risks. Although we devote significant resources to developing and improving our risk management policies and procedures and expect to continue to do so in the future, our risk management practices may not be fully effective at all times in eliminating or mitigating risk exposures in all market environments or against all types of risk, including risks that are unidentified or unanticipated, such as natural disasters or employee misconduct. For example, in November 2019, prosecutors indicted six of KHNP’s employees for, among others, failing to immediately shut down Hanbit #1 reactor when its thermal output exceeded the threshold specified by the nuclear safety technical operations manual and filing false reports to the NSSC. KHNP is also indicted for secondary liability from its employees’ alleged wrongdoings. The case arose from the NSSC’s investigations into the manual shutdown of Hanbit #1 reactor during a diagnostic test in May 2019. On October 27, 2022, the Supreme Court of Korea dismissed the appeal and upheld the judgement that the employees are not guilty of violating the safety technical operations manual and driving a reactor without a license. In connection with filing false reports to the NSSC, the Supreme Court upheld that, of the five employees who were up for trial, three employees are guilty but two employees are not guilty. To prevent similar incidents from occurring again, KHNP is working to improve its risk monitoring and management system. For additional information, see Item 4.B. “Business Overview—Nuclear Safety.”

In April 2019, a forest fire broke out in Goseong in Gangwon Province, about 210 kilometers from Seoul, causing damages to nearby towns, covering approximately 1,260 hectares. The National Forensic Service has investigated the cause of the fire and has determined that the fire seems to have started by an electrical arc from our utility pole’s wire, which broke as a result of a strong wind. Based on this finding, the Police Department of Goseong conducted follow-up investigations and issued a recommendation to prosecute seven employees of KEPCO in connection with the fire. In January 2023, the Seoul High Court acquitted the employees. The prosecutors have appealed to the Supreme Court and a trial is underway, the results of which may have a material

adverse effect on us, our reputation and our operating results. In the meantime, we have settled with and completed compensation payment of Won 62.8 billion to victims as of March 31, 2023. We expect settlements with the remaining victims would cost us approximately Won 6.0 billion. As of December 31, 2022, 68 lawsuits were filed against KEPCO for damages caused by the forest fire, with a total amount of claims around Won 292.5 billion. One claim was given judgment in favor of KEPCO, one claim was settled, and 66 lawsuits are pending. In addition, we are compensating the fire victims by providing a number of services, such as free supply of electricity, and implementing measures to prevent future fires that may result from an electrical arc, including a special maintenance program during the dry season between March and May. Also, we implemented operational measures such as tailored operation of protective devices and suspension of operation during periods of low loads and plan to change power facility designs to reflect regional and seasonal characteristics, all of which are intended to help prevent similar incidents from happening in the future. Despite our efforts, however, such incidents may occur again, and we cannot assure you that they will not have any material adverse effect on us, our reputation and our operating results.

Furthermore, our operational activities like the generation of electricity involve inherent operating risks that may result in accidents involving serious injury or loss of life, environmental damage or property damage. Even though we plan to prioritize on-site safety management by engaging in communications with different stakeholders and investing more in safe environment, there is no guarantee that there will not be future accidents due to our inherent operating risks.

The Serious Accident Punishment Act (the “SAPA”) was enacted on January 26, 2021 and took effect on January 27, 2022. The SAPA imposes criminal liability on individuals and entities responsible for “serious accidents”. Under SAPA, the term “serious accident” encompasses not only accidents at industrial sites (e.g., at factories or construction sites), but also “public” disasters caused by defects in the design, manufacture, installation and management of products, product ingredients or public facilities/transportation. The SAPA imposes criminal liability against (i) business owners or executives (as defined by the law) who fail to ensure the safety of their business operations and (ii) businesses or institutions who fail their supervisory duties. In case of willful misconduct or gross negligence, the SAPA also imposes punitive damages of up to five times the actual damages. The SAPA also impacts the impending class action and punitive damages legislation, since a serious accident could very well trigger liability under all three laws. For instance, if a serious accident leads to injury or death, and involves 50 or more claimants with a common question of law or fact, this would trigger a potential class action, punitive damages and criminal penalties under the SAPA. As such, the risks faced by companies and senior management under SAPA are amplified by the new class action/punitive damages system, and vice versa. Although we have analyzed the potential impacts on us of the SAPA and aligned our policies, internal regulations and manuals in preparation for the implement of the SAPA prior to the enactment of the SAPA, there is no guarantee that the SAPA would not adversely affect our business, financial condition and result of operations given that the SAPA is very broad but not yet tested by way of court precedents or official rulings of the Government.

We believe we and our subsidiaries are in compliance in all material respects with internal compliance policies and procedures and all other additional safety measures initiated internally or required by regulatory and governmental agencies. Under the SAPA, businesses may avoid punishment if it is found that they duly performed their duties to ensure the safety and health of the participants in their business operations. However, we cannot assure you that, despite all precautionary and preventative measures undertaken by us, these measures will prove to be fully effective at all times against all the risks we face or that an incident that could cause harm to our reputation and operation will not happen in the future, including due to factors beyond our control.

Our risk management procedures may not prevent losses in debt and foreign currency positions.

We manage interest rate exposure for our debt instruments by limiting our variable rate debt exposure as a percentage of our total debt and closely monitoring the movements in market interest rates. We also actively manage currency exchange rate exposure for our foreign currency-denominated liabilities by measuring the potential loss therefrom using risk analysis software and entering into derivative contracts to hedge such

exposure when the possible loss reaches a certain risk limit. To the extent we have unhedged positions or our hedging and other risk management procedures do not work as planned as a result of changes in global macroeconomic environment and/or other factors, our results of operations and financial condition may be adversely affected.

The amount and scope of coverage of our insurance are limited.

Substantial liability may result from the operations of our nuclear generation units, the use and handling of nuclear fuel and possible radioactive emissions associated with such nuclear fuel. KHNP carries insurance for its generation units and nuclear fuel transportation, and we believe that the level of insurance is generally adequate and is in compliance with relevant laws and regulations. In addition, KHNP is the beneficiary of Government indemnity that covers damages which the insurance cannot cover. However, such insurance is limited in terms of amount and scope of coverage and does not cover all types or amounts of losses which could arise in connection with the ownership and operation of nuclear plants. Accordingly, material adverse financial consequences could result from a serious accident or a natural disaster to the extent it is neither insured nor covered by the government indemnity.

In addition, our non-nuclear generation subsidiaries carry insurance covering certain risks, including fire, in respect of their key assets, including buildings and equipment located at their respective power plants, construction-in-progress and imported fuel and procurement in transit. Such insurance and indemnity, however, cover only a portion of the assets that these generation subsidiaries own and operate and do not cover all types or amounts of loss that could arise in connection with the ownership and operation of these power plants. In addition, our generation subsidiaries are not permitted to self-insure, and accordingly have not self-insured, against risks of their uninsured assets or business. Accordingly, material adverse financial consequences could result from a serious accident to the extent it is uninsured.

In addition, because neither we nor our non-nuclear generation subsidiaries carry any insurance against terrorist attacks, an act of terrorism would result in significant financial losses. See Item 4.B. “Business Overview—Insurance.”

We may not be able to raise share capital in the future without the participation of the Government.

Under applicable laws, the Government is required to directly or indirectly own at least 51% of our issued capital stock. As of December 31, 2022, the Government, directly and through Korea Development Bank (a statutory banking institution wholly owned by the Government), owned 51.1% of our issued capital stock. Accordingly, without changes in the existing Korean law, it may be difficult or impossible for us to undertake, without the participation of the Government, any equity financing in the future.

We may be exposed to potential claims made by current or previous employees for unpaid wages for the past three years under the expanded scope of ordinary wages and become subject to additional labor costs arising from the broader interpretation of ordinary wages under such decision.

Under the Labor Standards Act, an employee is legally entitled to “ordinary wages.” Under the guidelines previously issued by the Ministry of Employment and Labor, ordinary wages include base salary and certain fixed monthly allowances for work performed overtime during night shifts and holidays. Prior to the Supreme Court of Korea decision described below, many companies in Korea had typically interpreted these guidelines as excluding from the scope of ordinary wages fixed bonuses that are paid other than on a monthly basis, namely on a bi-monthly, quarterly or semi-annual basis, although such interpretation had been a subject of controversy and had been overruled in a few court cases.

number of days worked (iii) that are not incentive-based must be included in the calculation of “ordinary wages.” The Supreme Court further ruled that in spite of invalidity of such agreements, employees shall not retroactively claim additional wages incurred due to such court decision, in case that such claims bring to employees unexpected benefits which substantially exceeds the wage level agreed by employers and employees and cause an unpredicted increase in expenditures for their company, which would lead the company to material managerial difficulty or would be a threat to the existence of the company. In that case, the claim is not acceptable since it is unjust and is in breach of the principle of good faith. However, in December 2021, the Supreme Court ruled that the claim of workers for additional wages should not be easily rejected for the reason of good faith if there is a possibility of overcoming business difficulties in the future.

As a result of such ruling by the Supreme Court of Korea, we and our subsidiaries became subject to a number of lawsuits filed by various industry-wide and company-specific labor unions based on claims that ordinary wage had been paid without including certain items that should have been included as ordinary wage. In July 2016, the court ruled against us, and in accordance with the court’s ruling, in August 2016 we paid Won 55.1 billion to the employees for three years of back pay plus interest. As of December 31, 2022, our subsidiaries set aside an aggregate amount of Won 115 billion to cover any potential future payments of additional ordinary wage in relation to the related lawsuits. We cannot presently assure you that the court will not rule against our subsidiaries in these lawsuits, or that the foregoing reserve amount will be sufficient to cover the amounts payable under the court rulings.

Furthermore, the issue of determining which labor costs should be additionally included as part of ordinary wages has not been fully resolved by the courts reviewing the lawsuits to which our subsidiaries are a party and other ordinary wage lawsuits filed against other companies. For instance, there are several cases pending review of the Supreme Court of Korea on whether the bonuses conditional to employee’s current employment status should be included as part of ordinary wages. The Supreme Court, in 2013, had ruled that such conditional bonuses are not a part of ordinary wages, yet there were several lower court cases challenging the Court’s interpretation. Although there was a case of the Supreme Court on November 2022 where it ceased the trial and dismissed the appeal against the lower court case challenging the Court’s interpretation, it is not clear from the above case whether the Supreme Court changed its previous interpretation. If the Supreme Court changes its previous interpretation in its review of the currently pending cases, it is expected to be followed by a series of lawsuits asking for additional payments of the ordinary wages. Due to such uncertainty, we cannot presently assure you that there will not be additional lawsuits in relation to ordinary wages and that we or our subsidiaries may not become liable for greater amount of damages as a result of these lawsuits. Furthermore, court decisions or labor legislations expanding the definition of ordinary wages may prospectively increase the labor costs of us and our subsidiaries. As a result, there can be no assurance that the above-described lawsuits and circumstances will not have a material adverse effect on our results of operations. See Item 8.A. “Consolidated Statements and Other Financial Information—Legal Proceedings.”

We are subject to cyber security risk.

Recently, our activities have been subject to an increasing risk of cyber-attacks and information leakages, the nature of which is continually evolving. For example, in December 2014, KHNP became subject to a cyber terror incident. Hackers hacked into the computer network of former KHNP employees and threatened to shut down certain of KHNP’s nuclear plants, even though such incident did not jeopardize our nuclear operation in any material respect and none of the stolen information was material to our nuclear operation or the national nuclear policy. Also, even though past cyber-attacks were mostly unspecified attacks, recent attacks are more targeted and intelligent attacks, such as a ransomware that encrypts a victim’s files, whereupon an attacker demands a ransom from the victim to restore access to the victim’s data upon payment. In particular, non-face-to-face business environment due to COVID-19 has led to more sophisticated phishing e-mail attacks that impersonate service providers and acquaintances. In light of the new developments, there is no assurance that a similar or more serious hacking or other forms of cyber terror will not happen with respect to us and our generation subsidiaries, which could have a material adverse impact on our business, financial condition and results of operations. See Item 4.B. “Business Overview—Cyber Security.”

We engage in Russia-related dealings, including purchasing fuel supply, goods and services from Russia and Russian companies, and we may be adversely impacted in a material manner by sanctions concerning Russia imposed by the United States and other jurisdictions.

In 2022, we met 19.9% of our bituminous coal requirements from coals that originated from Russia. Additionally, we also purchase uranium and conversion and enrichment services of uranium concentrates from Russian suppliers and also purchase Russian origin LNG. In 2022, the total value of all goods and services originated or purchased from Russia was approximately US$3.2 billion.

United States, among other jurisdictions, adopted and maintains economic sanctions and export/import controls against Russia. U.S. Office of Foreign Assets Control’s (“OFAC”) sanctions block the property of certain designated individuals and entities, target certain sectors of the Russian economy, including the energy sector, and prohibit certain transactions by U.S. persons with certain targeted persons in targeted sectors of the Russian economy.

Since February 2022, the United States, the European Union, the United Kingdom, and other countries have imposed a host of additional economic sanctions on Russia, Belarus, and certain related persons in response to Russia’s military activities in Ukraine. OFAC now maintains comprehensive, territory-wide sanctions on Crimea, the self-described Donetsk People’s Republic (“DNR”) and Luhansk People’s Republic (“LNR”) in Ukraine, generally prohibiting any dealings by U.S. persons with these regions. OFAC also has blocking sanctions on certain major Russian financial institutions and their affiliates, Russian oligarchs and persons active in the energy, banking and finance sectors (along with their family members) and Russian government officials, and debt and equity restrictions on certain Russian state-owned enterprises. The U.S. government imposed extensive export controls on all dual-use items destined to Russia, including technology and software, as well as certain commercial items. The U.S. government also imposed a ban on importation into the U.S. of Russian crude oil, certain petroleum products, LNG, and coal, and OFAC now prohibits all new investments in Russia by U.S. persons, wherever located. Non-U.S. persons that engage in certain prohibited transactions concerning Russia or with certain sanctioned Russian persons or entities may be subject to sanctions if any such dealings or transactions involve a nexus to U.S. jurisdiction, and they may also be subject to secondary sanctions for providing material support to Russian entities or individuals subject to certain blocking sanctions and certain other sanctionable transactions or activities. Additionally, the European Union, United Kingdom, and Switzerland, among other jurisdictions, have imposed a ban on the importation of coal and certain other solid fossil fuels. The Republic of Korea also announced export controls on certain non-strategic items for shipment to Russia or Belarus. Other countries, including Japan, have announced plans to phase out Russian coal imports in the future. Further sanctions by the U.S., Korea, and other jurisdictions including the European Union, Switzerland, and the United Kingdom may also be forthcoming.

We source Russian fuel products from counterparties in a number of these jurisdictions, including the European Union, Japan, and Switzerland and sanctions that have been or will be imposed by these and other jurisdictions may require us to restrict or modify our operations. While the U.S. and other countries’ sanctions measures announced to date do not amount to a comprehensive embargo against Russia and Russian persons, it is not possible to predict with a reasonable degree of certainty how developments in Russia and Ukraine may impact our Russia-related business dealings, including but not limited to our purchase of fuel sources from Russia, such as bituminous coal, uranium, uranium concentrates conversion and enrichment services, and LNG or with regard to other business with Russian counterparties.

While we do not believe that our dealings related to Russia violate applicable economic sanctions, our ongoing dealings related to Russia expose us to risk. If the parties we are dealing or planning to deal with (directly or indirectly) become subject to sanctions, including suppliers of fuel sources, we may need to terminate our relationships with them and substitute them with alternative parties in order to comply with applicable sanctions. There is no guarantee that we will be able to procure contractual terms with the alternative parties that are better or at least similar to our current terms. In addition, the current and future sanctions against Russia-

related business dealings may cause the global prices of fuels including coal, uranium, and LNG to rise as the overall fuel supply will be curbed. Also, we may not be able to pursue other business with Russian counterparties. Our failure to comply with applicable economic sanctions or export or import controls affecting Russia or Russian companies may result in administrative, civil, or criminal penalties. Such events may have a material adverse effect on our reputation, business, results of operations, financial condition and cash flows.

The extent to which the coronavirus (COVID-19) outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.

The rapid and diffuse spread of the coronavirus (COVID-19) and global health concerns relating to this outbreak have had severe negative impact on, among other things, financial markets, liquidity, economic conditions and trade and could continue to do so or could worsen for an unknown period of time, which could in turn have a material adverse impact on our business, results of operations and financial condition. Although we have seen some recoveries from COVID-19 both domestically and internationally in 2022, it is possible the virus may rebound again, for example, with the evolution of a novel variant of the virus, in which case the effects on the economy may be highly uncertain and cannot be predicted. Risks associated with an outbreak of COVID-19 may include but are not limited to:

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disruption in the normal operations of our industrial and commercial customers, which in turn may decrease demand for electricity for such uses;

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the likelihood that the Government may not increase our tariff in a timely manner in an effort to ease the burden on the public, which will lead to a decrease in our revenue;

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an increase in unemployment among, and/or decrease in disposable income of, Korean consumers, which may decrease demand for electricity for residential use and the products and services of our industrial and commercial customers, thereby also leading to a decrease in demand for electricity for such uses;

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disruption in the supply of fuel and equipment from our suppliers;

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disruptions or delays in the construction of new generation facilities or maintenance and refurbishment of existing generation facilities;

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disruption in the normal operations of our business resulting from contraction of COVID-19 by our employees, which may necessitate our employees to be quarantined and/or our generation facilities or offices to be temporarily shut down;

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disruption resulting from the necessity for social distancing, including implementation of temporary adjustment of work arrangements requiring employees to work remotely, which may lead to a reduction in labor productivity;

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depreciation of the Won against major foreign currencies, which in turn may increase the cost of imported raw materials and equipment;

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unstable global and Korean financial markets, which may adversely affect our ability to meet our funding needs on a timely and cost-effective basis;

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significant or extended incline in the prices of LNG, which may lead to the replacement of thermal generation with LNG-combined cycle generation;

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impairments in the fair value of our investments in companies that may be adversely affected by the pandemic; and

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global inflation caused by expansionary monetary policies and global supply chain disruptions leading to higher commodity prices including fuels.

In addition to the factors listed above, the Government may enact emergency measures such as electricity tariff adjustments to ease the burden on the economically disadvantaged customers, each of which could have an adverse impact on our financial condition, results of operations, and cash flows. Each of and any combination of the factors listed above and the emergency governmental measures could have an adverse impact on our financial conditions, results of operations and cash flows.

Risks Relating to Korea and the Global Economy

Unfavorable financial and economic conditions in Korea and globally may have a material adverse impact on us.

We are incorporated in Korea, where most of our assets are located and most of our income is generated. As a result, we are subject to political, economic, legal and regulatory risks specific to Korea, and our business, results of operations and financial condition are substantially dependent on the Korean consumers’ demand for electricity, which are in turn largely dependent on developments relating to the Korean economy.

The Korean economy is closely integrated with, and is significantly affected by, developments in the global economy and financial markets. In recent years, global inflation caused by expansionary monetary policies, rising energy prices, global supply chain disruptions and the Russia-Ukraine conflict, rapidly changing monetary policies (including higher interest rates and quantitative tightening) led by developed countries in reaction to such inflation and the consequent economic slowdown, instability in the financial industries (including potential for bank runs) and capital flight risks in emerging economies caused by such changes in monetary policy, credit risks of Chinese real estate developers, ongoing U.S.-China trade conflicts, signs of economic slowdown in China and continuing geopolitical and social instability in various parts of the Middle East, including Iraq, Syria and Yemen, among others, significant uncertainty remains as to the global economic prospects in general and has adversely affected, and may continue to adversely affect, the Korean economy, which in turn could adversely affect our business, financial condition and results of operations. As the Korean economy is highly dependent on the health and direction of the global economy, the prices of our securities may be adversely affected by investors’ reactions to developments in other countries. In addition, due to the ongoing volatility in the global financial markets, the value of the Won relative to the U.S. dollar has also fluctuated significantly in recent years, which in turn also may adversely affect our financial condition and results of operations.

Factors that determine economic and business cycles in the Korean or global economy are for the most part beyond our control and inherently uncertain. In light of the high level of interdependence of the global economy, any of the foregoing developments could have a material adverse effect on the Korean economy and financial markets, and in turn on our business and profitability.

More specifically, factors that could have an adverse impact on Korea’s economy include, among others:

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the ongoing increases in inflation levels and consequent increases in interest rates to mitigate the inflation, volatility in foreign currency reserve levels, commodity prices (including oil, LNG and other fuel prices), exchange rates (particularly against the U.S. dollar), interest rates, stock market prices and inflows and outflows of foreign capital, either directly, into the stock markets, through derivatives or otherwise;

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difficulties in the financial sectors in the United States, Europe, China and elsewhere and increased sovereign default risks in certain countries and the resulting adverse effects on the global financial markets;

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adverse developments in the economies of countries and regions to which Korea exports goods and services (such as the United States, Europe, China and Japan), or in emerging market economies in Asia or elsewhere that could result in a loss of confidence in the Korean economy, including potentially as a result of the Brexit;

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potential escalation of the ongoing trade war between the U.S. and China as each country introduces tariffs on goods traded with the other;

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social and labor unrest or declining consumer confidence or spending resulting from lay-offs, increasing unemployment and lower levels of income;

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uncertainty and volatility in the market prices of Korean real estate;

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a decrease in tax revenues and a substantial increase in the Government’s expenditures for unemployment compensation and other social programs that together could lead to an increased Government budget deficit;

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political uncertainty, including as a result of increasing strife among or within political parties in Korea, and political gridlock within the Government or in the legislature, which prevents or disrupts timely and effective policy making to the detriment of Korean economy, as well as the impeachment and indictment of the former president following a series of scandals and social unrest, which also involved the investigation of several leading Korean conglomerates and arrest of their leaders on charges of bribery and other possible misconduct;

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deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy, including as a result of any potential renegotiation of free trade agreements;

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increases in social expenditures to support the aging population in Korea or decreases in economic productivity due to the declining population size in Korea;

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any other development that has a material adverse effect in the global economy, such as an act of war, the spread of terrorism or a breakout of an epidemic such as SARS, avian flu, swine flu, Middle East Respiratory Syndrome, Ebola or Zika virus, or natural disasters, earthquakes and tsunamis and the related disruptions in the relevant economies with global repercussions;

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hostilities involving oil-producing countries in the Middle East and elsewhere and any material disruption in the supply of oil or a material increase in the price of oil resulting from such hostilities; and

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an increase in the level of tensions or an outbreak of hostilities in the Korean peninsula or between North Korea and the United States.

Any future deterioration of the Korean economy could have an adverse effect on our business, financial condition and results of operations.

Tensions with North Korea could have an adverse effect on us and the market value of our shares.

Relations between Korea and North Korea have been tense throughout Korea’s modern history. The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. In particular, there continues to be uncertainty regarding the long-term stability of North Korea’s political leadership since the succession of Kim Jong-un to power following the death of his father in December 2011, which has raised concerns with respect to the political and economic future of the region. In February 2017, Kim Jong-un’s half-brother, Kim Jong-nam, was reported to have been assassinated in an international airport in Malaysia.

In addition, there continues to be heightened security tension in the region stemming from North Korea’s hostile military and diplomatic actions, including in respect of its nuclear weapons and long-range missile programs. Some examples from recent years include the following:

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In September 2022, North Korea legislated five conditions under which it would launch a preemptive nuclear strike: (i) when a nuclear or other weapon of mass destruction attack has been carried out against North Korea or is imminent, (ii) when a nuclear or non-nuclear strike on the leadership and national nuclear force command body of North Korea has been carried out or is imminent, (iii) when a lethal military attack on important strategic targets of North Korea has been carried out or is imminent, (iv) when it is operationally unavoidable to prevent the expansion of a war and seize the initiative in times of contingencies, and (v) when a situation that causes a catastrophic crisis to the existence of North Korea and the safety of the people.

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Following Pyongyang Joint Declaration in September 2018, Korea and North Korea also reached for an agreement on the implementation of such declaration to cease any hostile military activities. Despite such agreement, North Korea fired artillery shells in maritime buffer zones in November 2019 as well as from October 2022 to December 2022 and shots on a guard post of Korea in May 2020. In December 2022, five North Korean drones violated Korean airspace, one of which returned to the North but the rest disappeared. In November 2022 and from February 2023 to April 2023, North Korea conducted test launches of intercontinental ballistic missiles to East Sea.

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In April 2018, North Korea announced an end to nuclear explosive testing, yet with denuclearization talks stalled, in December 2019, Kim Jong-un announced that North Korea was no longer bound by the moratoria. In March 2022, satellite monitoring revealed that construction resumed at North Korea’s nuclear test site.

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In November 2017, North Korea conducted a test launch of another intercontinental ballistic missile, which, due to its improved size, power and range of distance, may potentially enable North Korea to target the United States mainland.

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Recently, on September 3, 2017, North Korea conducted its sixth nuclear test, claiming it had tested a hydrogen bomb that could be mounted on an intercontinental ballistic missile. In response, on September 12, 2017, the United Nations Security Council unanimously adopted a resolution imposing additional sanctions on North Korea including new limits on gas, petrol and oil imports, a ban on textile exports and measures to limit North Korean laborers from working abroad.

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On August 29, 2017, North Korea tested an intermediate-range ballistic missile which flew directly over northern Japan before landing in the Pacific Ocean. In response, the United Nations Security Council unanimously adopted a statement condemning such launch, reiterating demands that North Korea halt its ballistic missile and nuclear weapons programs.

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On July 4, 2017, North Korea tested its first intercontinental ballistic missile. In response, the U.S. government and the Government both issued statements condemning North Korea and conducted a joint military exercise on July 5, 2017. On July 28, 2017, North Korea tested a second intercontinental ballistic missile which landed in the Sea of Japan, inside Japan’s Economic Exclusion Zone. In response, on August 5, 2017, the United Nations Security Council unanimously adopted a resolution that strengthened sanctions on North Korea. The resolution includes a total ban on all exports of coal, iron, iron ore, lead, lead ore and seafood, which is expected to reduce North Korea’s export revenue by a third each year.

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In March 2017, North Korea launched four mid-range missiles, which landed off the east coast of the Korean peninsula.

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On September 9, 2016, North Korea conducted its fifth nuclear test, which has been the largest in scale among North Korea’s nuclear tests thus far. According to North Korean announcements, the test was successful in detonating a nuclear missile. The test created a sizable earthquake in Korea. In response, in February 2017 the U.N. Security Council adopted Resolution 2321 (2016) against North Korea, the

purpose of which is to strengthen its sanctions regime against North Korea and to condemn North Korea’s September 9, 2016 nuclear test in the strongest terms.

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On February 10, 2016, in retaliation of North Korea’s recent launch of a long-range rocket, Korea announced that it would halt its operations of the Gaeseong Industrial Complex to impede North Korea’s utilization of funds from the industrial complex to finance its nuclear and missile programs. In response, North Korea announced on February 11, 2016 that it would expel all Korean employees from the industrial complex and freeze all Korean assets there.

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On February 7, 2016, North Korea launched a rocket, claimed by them to be carrying a satellite intended for scientific observation. The launch was widely suspected by the international community to be a cover for testing a long-range missile capable of carrying a nuclear warhead. On February 18, 2016, the President of the United States signed into law mandatory sanctions on North Korea to punish it for its recent nuclear and missile tests, human rights violations and cybercrimes. The bill, which marks the first measure by the United States to exclusively target North Korea, is intended to seize the assets of anyone engaging in business related to North Korea’s weapons program, and authorizes US$50 million over five years to transmit radio broadcasts into the country and support humanitarian assistance projects. On March 2, 2016, the United Nations Security Council voted unanimously to adopt a resolution to impose sanctions against North Korea, which include inspection of all cargo going to and from North Korea, a ban on all weapons trade and the expulsion of North Korean diplomats who engage in “illicit activities.” Also, on March 4, 2016, the European Union announced that it would expand its sanctions on North Korea, adding additional companies and individuals to its list of sanction targets. On April 1, 2016, North Korea fired a short-range surface-to-air missile in apparent protest of these sanctions adopted by the United States and the United Nations Security Council.

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On January 6, 2016, North Korea announced that it had successfully conducted its first hydrogen bomb test, hours after international monitors detected a 5.1 magnitude earthquake near a known nuclear testing site in the country. The claims have not been verified independently. The alleged test followed a statement made in the previous month by Kim Jong-un, who claimed that North Korea had developed a hydrogen bomb.

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North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and conducted three rounds of nuclear tests between October 2006 to February 2013, which increased tensions in the region and elicited strong objections worldwide. In response, the United Nations Security Council unanimously passed resolutions that condemned North Korea for the nuclear tests and expanded sanctions against North Korea.

North Korea’s economy also faces severe challenges, including severe inflation and food shortages, which may further aggravate social and political tensions within North Korea. In addition, reunification of Korea and North Korea could occur in the future, which would entail significant economic commitment and expenditure by Korea that may outweigh any resulting economic benefits of reunification. On April 27, 2018, May 26, 2018 and September 18, 2018, President Moon Jae-in met Kim Jong-un in a summit to discuss, among other matters, denuclearization of the Korean Peninsula. On June 12, 2018, President Donald Trump and Kim Jong-un in turn had an official summit in Singapore and on February 27, 2019, the parties held the second official summit in Hanoi, Vietnam. However, in March 2019, announcement was made that no agreement was reached in the second bilateral summit meeting between the United States and North Korea. On June 30 2019, for the first time, President Moon Jae-in, President Donald Trump and Kim Jong-un met in Panmunjom, a symbolic place of division in Korea, and the parties agreed to resume the United States and North Korea working-level negotiations, and on October 4, 2019, such working-level negotiations took place in Stockholm, Sweden. However, the negotiations did not result in any definitive agreement or any follow-up plans. On June 16, 2020, North Korea destroyed the joint liaison office in Gaeseong, citing anti-regime propaganda allegedly disseminated using balloons across the border by Korean activists, and cut all other communication channels with Korea. On October 4, 2021, both Korea and North Korea announced that the communication channels have been reconnected. However, there has been no further discussion of resuming any operations in the Gaeseong Industrial Complex or any transactions that we are involved in.

There can be no assurance that the level of tension on the Korean peninsula will not escalate in the future or that the political regime in North Korea may not suddenly collapse. Any further increase in tension or uncertainty relating to the military, political or economic stability in the Korean peninsula, including a breakdown of diplomatic negotiations over the North Korean nuclear program, occurrence of military hostilities, heightened concerns about the stability of North Korea’s political leadership or its actual collapse, a leadership crisis, a breakdown of high-level contacts or accelerated reunification could have a material adverse effect on our business, financial condition and results of operations, as well as the price of our common shares and our American depositary shares.

We are generally subject to Korean corporate governance and disclosure standards, which differ in significant respects from those in other countries.

Companies in Korea, including us, are subject to corporate governance standards applicable to Korean public companies which differ in many respects from standards applicable in other countries, including the United States. As a reporting company registered with the Securities and Exchange Commission and listed on the New York Stock Exchange, we are, and will continue to be, subject to certain corporate governance standards as mandated by the Sarbanes-Oxley Act of 2002, as amended. However, foreign private issuers, including us, are exempt from certain corporate governance standards required under the Sarbanes-Oxley Act or the rules of the New York Stock Exchange. We and our generation subsidiaries are also subject to a number of special laws and regulations to Government-controlled entities, including the Act on the Management of Public Institutions. For a description of significant differences in corporate governance standards, see Item 16.G. “Corporate Governance.” There may also be less publicly available information about Korean companies, such as us, than is regularly made available by public or non-public companies in other countries. Such differences in corporate governance standards and less public information could result in less than satisfactory corporate governance practices or disclosure to investors in certain countries.

You may not be able to enforce a judgment of a foreign court against us.

We are a corporation with limited liability organized under the laws of Korea. Substantially all of our directors and officers and other persons named in this annual report reside in Korea, and all or a significant portion of the assets of our directors and officers and other persons named in this annual report and substantially all of our assets are located in Korea. As a result, it may not be possible for holders of the American depository shares to affect service of process within the United States, or to enforce against them or us in the United States judgments obtained in United States courts based on the civil liability provisions of the federal securities laws of the United States. There is doubt as to the enforceability in Korea, either in original actions or in actions for enforcement of judgments of United States courts, of civil liabilities predicated on the United States federal securities laws.

Risks Relating to Our American Depositary Shares (ADSs)

There are restrictions on withdrawal and deposit of common shares under the depositary facility.

Under the deposit agreement, holders of shares of our common stock may deposit those shares with the depositary bank’s custodian in Korea and obtain American depositary shares, and holders of American depositary shares may surrender American depositary shares to the depositary bank and receive shares of our common stock. However, under current Korean laws and regulations, the depositary bank is required to obtain our prior consent for the number of shares to be deposited in any given proposed deposit which exceeds the difference between (i) the aggregate number of shares deposited by us for the issuance of American depositary shares (including deposits in connection with the initial and all subsequent offerings of American depositary shares and stock dividends or other distributions related to these American depositary shares) and (ii) the number of shares on deposit with the depositary bank at the time of such proposed deposit. We have consented to the deposit of outstanding shares of common stock as long as the number of American depositary shares outstanding at any time does not exceed 80,153,810 shares. As a result, if you surrender American depositary shares and withdraw shares of common stock, you may not be able to deposit the shares again to obtain American depositary shares.

Ownership of our shares is restricted under Korean law.

Under the Financial Investment Services and Capital Markets Act, with certain exceptions, a foreign investor may acquire shares of a Korean company without being subject to any single or aggregate foreign investment ceiling. As one such exception, certain designated public corporations, such as us, are subject to a 40% ceiling on acquisitions of shares by foreigners in the aggregate. The Financial Services Commission may impose other restrictions as it deems necessary for the protection of investors and the stabilization of the Korean securities and derivatives market.

In addition to the aggregate foreign investment ceiling set out under the Financial Investment Services and Capital Markets Act, our Articles of Incorporation set a 3% ceiling on acquisition by a single investor (whether domestic or foreign) of the shares of our common stock. Any person (with certain exceptions) who holds our issued and outstanding shares in excess of such 3% ceiling cannot exercise voting rights with respect to our shares exceeding such limit.

The ceiling on aggregate investment by foreign investors applicable to us may be exceeded in certain limited circumstances, including as a result of acquisition of:

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shares by a depositary issuing depositary receipts representing such shares (whether newly issued shares or outstanding shares);

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shares by exercise of warrant, conversion right under convertible bonds, exchange right under exchangeable bonds, stock option or withdrawal right under depositary receipts issued outside of Korea;

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shares from the exercise of shareholders’ rights; or

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shares by gift, inheritance or bequest.

A foreign investor who has acquired our shares in excess of any ceiling described above may not exercise his voting rights with respect to our shares exceeding such limit and the Financial Services Commission may take necessary corrective action against him.

Holders of our ADSs will not have preemptive rights in certain circumstances.

The Korean Commercial Act and our Articles of Incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares in proportion to their existing ownership percentage whenever new shares are issued. If we offer any rights to subscribe for additional shares of our common stock or any rights of any other nature, the depositary bank, after consultation with us, may make the rights available to you or use reasonable efforts to dispose of the rights on your behalf and make the net proceeds available to you. The depositary bank, however, is not required to make available to you any rights to purchase any additional shares unless it deems that doing so is lawful and feasible and:

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a registration statement filed by us under the U.S. Securities Act of 1933, as amended, is in effect with respect to those shares; or

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the offering and sale of those shares is exempt from or is not subject to the registration requirements of the U.S. Securities Act.

We are under no obligation to file any registration statement with the U.S. Securities and Exchange Commission in relation to the registration rights. If a registration statement is required for you to exercise preemptive rights but is not filed by us, you will not be able to exercise your preemptive rights for additional shares and you will suffer dilution of your equity interest in us.

The market value of your investment in our ADSs may fluctuate due to the volatility of the Korean securities market.

Our common stock is listed on the KRX KOSPI Division of the Korea Exchange, which has a smaller market capitalization and is more volatile than the securities markets in the United States and many European countries. The market value of ADSs may fluctuate in response to the fluctuation of the trading price of shares of our common stock on the Stock Market Division of the Korea Exchange. The Stock Market Division of the Korea Exchange has experienced substantial fluctuations in the prices and volumes of sales of listed securities and the Stock Market Division of the Korea Exchange has prescribed a fixed range in which share prices are permitted to move on a daily basis. Like other securities markets, including those in developed markets, the Korean securities market has experienced problems including market manipulation, insider trading and settlement failures. The recurrence of these or similar problems could have a material adverse effect on the market price and liquidity of the securities of Korean companies, including our common stock and ADSs, in both the domestic and the international markets.

The Korean government has the ability to exert substantial influence over many aspects of the private sector business community, and in the past has exerted that influence from time to time. For example, the Korean government has promoted mergers to reduce what it considers excess capacity in a particular industry and has also encouraged private companies to publicly offer their securities. Similar actions in the future could have the effect of depressing or boosting the Korean securities market, whether or not intended to do so. Accordingly, actual or perceived actions or inactions by the Korean government may cause sudden movements in the market prices of the securities of Korean companies in the future, which may affect the market price and liquidity of our common stock and ADSs.

Your dividend payments and the amount you may realize in connection with a sale of your ADSs will be affected by fluctuations in the exchange rate between the U.S. dollar and the Won.

Investors who purchase the American depositary shares will be required to pay for them in U.S. dollars. Our outstanding shares are listed on the Korea Exchange and are quoted and traded in Won. Cash dividends, if any, in respect of the shares represented by the American depositary shares will be paid to the depositary bank in Won and then converted by the depositary bank into U.S. dollars, subject to certain conditions. Accordingly, fluctuations in the exchange rate between the Won and the U.S. dollar will affect, among other things, the amounts a registered holder or beneficial owner of the American depositary shares will receive from the depositary bank in respect of dividends, the U.S. dollar value of the proceeds which a holder or owner would receive upon sale in Korea of the shares obtained upon surrender of American depositary shares and the secondary market price of the American depositary shares.

If the Government deems that certain emergency circumstances are likely to occur, it may restrict the depositary bank from converting and remitting dividends in U.S. dollars.

Under the Foreign Exchange Transaction Act, if the Government deems that certain emergency circumstances are likely to occur, it may impose restrictions such as requiring foreign investors to obtain prior Government approval for the acquisition of Korean securities or for the repatriation of interest or dividends arising from Korean securities or sales proceeds from disposition of such securities. These emergency circumstances include any or all of the following:

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sudden fluctuations in interest rates or exchange rates;

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extreme difficulty in stabilizing the balance of payments; and

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a substantial disturbance in the Korean financial and capital markets.

The depositary bank may not be able to secure such prior approval from the Government for the payment of dividends to foreign investors when the Government deems that there are emergency circumstances in the Korean financial markets.

ITEM 4.

INFORMATION ON THE COMPANY

Item 4.A.

History and Development of the Company

General Information

Our legal and corporate name is Korea Electric Power Corporation. We were established by the Government on December 31, 1981 as a statutory juridical corporation in Korea under the Korea Electric Power Corporation Act (the “KEPCO Act”) as the successor to Korea Electric Company. Our registered office is located at 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea, and our telephone number is 82-61-345-4213. Our website address is www.kepco.co.kr.

Our agent in the United States is Korea Electric Power Corporation, North America Office, located at 7th Floor, Parker Plaza, 400 Kelby Street, Fort Lee, NJ 07024.

The Korean electric utility industry traces its origin to the establishment of the first electric utility company in Korea in 1898. On July 1, 1961, the industry was reorganized by the merger of Korea Electric Power Company, Seoul Electric Company and South Korea Electric Company, which resulted in the formation of Korea Electric Company. From 1976 to 1981, the Government acquired the private minority shareholdings in Korea Electric Company. After the Government acquired all the remaining shares of Korea Electric Company, Korea Electric Company was dissolved, and we were incorporated in 1981 and assumed the assets and liabilities of Korea Electric Company. We ceased to be wholly owned by the Government in 1989 when the Government sold 21% of our common stock. As of December 31, 2022, the Government maintained 51.1% ownership in aggregate of our common shares by direct holdings by the Government and indirect holdings through Korea Development Bank, a statutory banking institution wholly owned by the Government.

Under relevant laws of Korea, the Government is required to own, directly or indirectly, at least 51% of our capital. Direct or indirect ownership of more than 50% of our outstanding common voting stock enables the Government to control the approval of certain corporate matters relating to us that require a shareholders’ resolution, including approval of dividends. The rights of the Government and Korea Development Bank as holders of our common stock are exercised by the Ministry of Trade, Industry and Energy, based on the Government’s ownership of our common stock and a proxy received from Korea Development Bank, in consultation with the Ministry of Economy and Finance.

We operate under the general supervision of the Ministry of Trade, Industry and Energy. The Ministry of Trade, Industry and Energy, in consultation with the Ministry of Economy and Finance, is responsible for approving, subject to review by the Korea Electricity Commission, the electricity rates we charge our customers. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.” We furnish reports to officials of the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance and other Government agencies and regularly consult with such officials on matters relating to our business and affairs. See Item 4.B. “Business Overview—Regulation.” Our non-standing directors, who comprise a majority of our board of directors, must be appointed by the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions (which is established by law and chaired by the Minister of the Ministry of Economy and Finance and whose members consist of Government officials and others appointed by the President of the Republic based on recommendation by the Minister of the Ministry of Economy and Finance) from a pool of candidates recommended by the director nomination committee. Our president and standing directors who concurrently serve as members of our audit committee must be appointed by the President of the Republic upon the motion of the Minister of the Ministry of Trade, Industry and Energy (in the case of our president) and the Minister of the Ministry of Economy and Finance (in the case of our standing director who concurrently serves as a member of the audit committee) and following the nomination by our director nomination committee, the review and resolution of the Committee for Management of Public Institutions and an approval at the general meeting of shareholders. See Item 6.A. “Directors and Senior Management—Board of Directors” and Item 16.G. “Corporate Governance—The Act on the Management of Public Institutions.”

Item 4.B.

Business Overview

Introduction

We are an integrated electric utility company engaged in the transmission and distribution of substantially all of the electricity in Korea. Through our six wholly-owned generation subsidiaries, we also generate the substantial majority of electricity produced in Korea. As of December 31, 2022, we and our generation subsidiaries owned approximately 59.9% of the total electricity generation capacity in Korea (excluding plants generating electricity primarily for private or emergency use). In 2022, we sold to our customers 547,933 gigawatt-hours of electricity. We purchase electricity principally from our generation subsidiaries and, to a lesser extent, from independent power producers. Of the 550,832 gigawatt-hours of electricity we purchased in 2022, 31.3% was generated by KHNP, our wholly-owned nuclear and hydroelectric power generation subsidiary, 39.1% was generated by our wholly-owned five non-nuclear generation subsidiaries and 29.6% was generated by independent power producers that trade electricity to us through the cost-based pool system of power trading (excluding independent power producers that supply electricity under power purchase agreements with us). Our five non-nuclear generation subsidiaries are KOSEP, KOMIPO, KOWEPO, KOSPO and EWP, each of which is wholly owned by us and is incorporated in Korea. We derive substantially all of our revenues and profit from Korea, and substantially all of our assets are located in Korea.

In 2022, we had sales of Won 70,546 billion and net loss of Won 24,429 billion, compared to sales of Won 60,012 billion and net loss of Won 5,216 billion in 2021.

Our revenues are closely tied to demand for electricity in Korea. Demand for electricity in Korea increased at a compounded average growth rate of 1.0% per annum from 2018 to 2022 compared to the real gross domestic product, or GDP, which increased at a compounded average growth rate of 2.0% during the same period, according to the Bank of Korea. During 2022, the GDP growth rate was 2.6%, while the demand for electricity in Korea during the same year increased by 2.7%.

Strategy

We established our 2035 medium- to long-term strategy to leap forward as a global integrated energy platform company that leads changes in the industrial ecosystem. We plan to achieve it by pursuing the following eight strategic initiatives. Through this, we aim to provide better value to various stakeholders including but not limited to our country, customers and society. More specifically, our goal for the country is to contribute to the achievement of national policy goals for energy transition such as establishing the foundation for carbon neutrality. Our goal for the customers is to expand clean energy supply by enhancing digital-based customer interaction and renewable energy transactions. Our goal for the society is to create a future-oriented energy market by developing and commercializing carbon-neutral technology through collaboration with major stakeholders. Our eight strategic initiatives to achieve such goals are:

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Establish power grid system which could further contribute to achieving carbon neutrality. We plan to contribute to achieving carbon neutrality in 2050 with power grid innovation. We aim to secure grid capability for connecting renewable energy units by preemptively constructing power facilities based on forecast and further enhance grid stability with intelligent and advanced grid system.

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Expand clean energy and promote strategic demand response. We plan to establish a foundation for expanding renewable energy by cooperating with our subsidiaries and independent power producers. Also, we aim to improve demand-side energy efficiency by collaborating with demand management business operators.

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Lead future energy market and improve sales competitiveness. We plan to create reliable and resilient electricity system to achieve competency in future electricity market. We will also strive to expand our customized services through digital technologies and power data and establish reasonable and sustainable cost-based tariff system.

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Lead platform-based new businesses. We plan to expand charging infrastructure and foster transition into electric vehicles. We also aim to improve energy efficiency by boosting operation of dispersed energy resources in a form of energy platform business.

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Transform overseas business portfolio to focus on eco-friendly projects and core competencies. We plan to end our overseas coal-fired generation projects and switch substantial amount of our overseas business portfolio into eco-friendly projects. We aim to improve our competency and profitability by strengthening our overseas business capacity.

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Secure future technologies and build a research and development (“R&D”) ecosystem. We plan to secure core technologies necessary for achieving carbon neutrality with aggressive R&D investment. In addition, we aim to introduce an R&D system based on collaboration among industry, university and research institutes to establish a foundation for technological innovation and enhance our R&D capability.

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Promote digitalization in overall supply chain. We will strengthen work efficiency and stability by introducing the latest digital technology and infrastructure to our business environment and develop a business model with new customer services based on data platforms.

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Establish a highly reliable and highly efficient management system with respect to human beings and environment. We plan to establish a comprehensive ESG management system that promotes environment, safety and coexistence. Also, we aim to enhance our financial stability by pursuing management efficiency and stable profit structure.

Government Ownership and Our Interactions with the Government

The KEPCO Act requires that the Government own at least 51% of our capital stock. Direct or indirect ownership of more than 50% of our outstanding common voting stock enables the Government to control the approval of certain corporate matters which require a shareholders’ resolution, including approval of dividends. The rights of the Government and Korea Development Bank as holders of our common stock are exercised by the Ministry of Trade, Industry and Energy in consultation with the Ministry of Economy and Finance. We are currently not aware of any plans of the Government to cease to own, directly or indirectly, at least 51% of our outstanding common stock.

We play an important role in the implementation of the Government’s national energy policy, which is established in consultation with us, among other parties. As an entity formed to serve public policy goals of the Government, we seek to maintain a fair level of profitability and strengthen our capital base in order to support the growth of our business in the long term.

The Government, through its various policy initiatives for the Korean energy industry as well as direct and indirect supervision of us and our industry, plays an important role in our business and operations. Most importantly, the electricity tariff rates we charge to our customers are regulated by the Government taking into account, among others, our needs to recover the fair operating costs, make capital investments and recoup a fair return on capital invested by us, as well as the Government’s overall policy considerations, such as inflation. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.”

In addition, pursuant to the Basic Plan determined by the Government, we and our generation subsidiaries have made, and plan to make, substantial expenditures for the construction of generation plants and other facilities to meet demand for electric power. See Item 5.B. “Liquidity and Capital Resources—Capital Requirements.”

Restructuring of the Electric Power Industry in Korea

On January 21, 1999, the Ministry of Trade, Industry and Energy published the Restructuring Plan. The overall objectives of the Restructuring Plan consisted of: (i) introducing competition and thereby increasing efficiency in the Korean electric power industry, (ii) ensuring a long-term, inexpensive and stable electricity supply, and (iii) promoting consumer convenience through the expansion of consumer choice.

The following provides further details relating to the Restructuring Plan.

Phase I

During Phase I, which served as a preparatory stage for Phase II and lasted from the announcement of the Restructuring Plan in January 1999 until April 2001, we undertook steps to split our generation business units off into one wholly-owned nuclear generation subsidiary (namely, KHNP) and five wholly-owned non-nuclear generation subsidiaries (namely, KOSEP, KOMIPO, KOWEPO, KOSPO and EWP), each with its own management structure, assets and liabilities. These steps were completed upon approval at our shareholders’ meeting in April 2001.

The Government’s principal objectives in the split-off of the generation units into separate subsidiaries were to: (i) introduce competition and thereby increase efficiency in the electricity generation industry in Korea, and (ii) ensure a stable supply of electricity in Korea.

Following the implementation of Phase I, we have substantial monopoly with respect to the transmission and distribution of electricity in Korea.

While our ownership percentage of our generation subsidiaries will depend on further adjustments to the Restructuring Plan to be adopted by the Government, we plan to retain 100% ownership of our transmission and distribution business.

Phase II

At the outset of Phase II in April 2001, the Government introduced a cost-based competitive bidding pool system under which we purchase power from our generation subsidiaries and other independent power producers for transmission and distribution to customers. For a further description of this system, see “—Purchase of Electricity—Cost-based Pool System” below.

Pursuant to the Electric Utility Act amended in December 2000, the Government established the Korea Power Exchange in April 2001. The primary function of the Korea Power Exchange is to deal with the sale of electricity and implement regulations governing the electricity market to allow for electricity distribution through a competitive bidding process. The Government also established the Korea Electricity Commission in April 2001 to regulate the Korean electric power industry and ensure fair competition among industry participants. To facilitate this goal, the Korea Power Exchange established the Electricity Market Rules relating to the operation of the bidding pool system. To amend the Electricity Market Rules, the Korea Power Exchange must have the proposed amendment reviewed by the Korea Electricity Commission and then obtain the approval of the Ministry of Trade, Industry and Energy.

The Korea Electricity Commission’s main functions include implementation of standards and measures necessary for electricity market operation and review of matters relating to licensing participants in the Korean electric power industry. The Korea Electricity Commission also acts as an arbitrator in tariff-related disputes among participants in the Korean electric power industry and investigates illegal or deceptive activities of the industry participants.

Privatization of Generation Subsidiaries

In April 2002, the Ministry of Trade, Industry and Energy released the basic privatization plan for five of our generation subsidiaries other than KHNP. Pursuant to this plan, we commenced the process of selling our equity interest in KOSEP in 2002. According to the original plan, this process was, in principle, to take the form of a sale of management control, potentially supplemented by an initial public offering as a way of broadening the investor base. In November 2003, KOSEP submitted its application to the Korea Exchange for a preliminary

screening review, which was approved in December 2003. However, in June 2004, KOSEP made a request to the Korea Exchange to delay its stock listing due to unfavorable stock market conditions at that time.

In accordance with the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) announced by the Government in June 2016, we considered a sale in the public market of a minority of our shares in our five non-nuclear generation subsidiaries, KEPCO KDN and KHNP gradually. However, the planned sales have been put on hold, primarily due to prevailing market conditions. In any event, we plan to maintain a controlling stake in each of these subsidiaries.

Suspension of the Plan to Form and Privatize Distribution Subsidiaries

In 2003, the Government established a Tripartite Commission consisting of representatives of the Government, leading businesses and labor unions in Korea to deliberate on ways to introduce competition in electricity distribution, such as by forming and privatizing new distribution subsidiaries. In 2004, the Tripartite Commission recommended not pursuing such privatization initiatives but instead creating independent business divisions within us to improve operational efficiency through internal competition. Following the adoption of such recommendation by the Government in 2004 and further studies by Korea Development Institute, in 2006 we created nine “strategic business units” (which, together with our other business units, were subsequently restructured into 14 such units in February 2012) that have a greater degree of autonomy with respect to management, financial accounting and performance evaluation while having a common focus on increasing profitability.

Initiatives to Improve the Structure of Electricity Generation

In August 2010, the Ministry of Trade, Industry and Energy announced the Proposal for Improvement in the Structure of the Electric Power Industry in order to resolve uncertainty related to restructuring plans for the electric power industry and maintain competitiveness of the electric power industry. Key initiatives of the proposal included the following: (i) maintain the current structure of having six generation subsidiaries and designate the six generation subsidiaries as market-oriented public enterprises under the Act on the Management of Public Institutions in order to foster competition among the generation subsidiaries and promote efficiency in their operations, (ii) clarify the scope of the business of us and the six generation subsidiaries (namely, that we shall manage the financial structure and governance of the six generation subsidiaries and nuclear power plant and overseas resources development projects, while the six generation subsidiaries will have greater autonomy with respect to construction and management of generation units and procurement of fuel), (iii) create a nuclear power export business unit to systematically enhance our capabilities to win projects involving the construction and operation of nuclear power plants overseas, (iv) further rationalize the electricity tariff by adopting a fuel-cost based tariff system in 2011 and a voltage-based tariff system in a subsequent year, and (v) create separate accounting systems for electricity generation, transmission, distribution and sales with the aim of introducing competition in electricity sales in the intermediate future. The fuel-cost based tariff system went into effect on July 1, 2011 but the Ministry of Trade, Industry and Energy issued a hold order on July 29, 2011 and subsequently informed us it needs to be reassessed in light of the circumstances.

In January 2011, the Ministry of Economy and Finance created a “joint cooperation unit” consisting of officers and employees selected from the five thermal power generation subsidiaries in order to reduce inefficiencies in areas such as fuel transportation, inventories, materials and equipment and construction, etc. and allow the thermal power generation subsidiaries to continue utilizing the benefits of economy of scale after split off of our generation business units into separate subsidiaries. The purpose of the joint cooperation unit was to give greater autonomy to the generation subsidiaries with regard to power plant construction and management and fuel procurements, and thereby enhance efficiency in operating power plants. The main functions of the joint cooperation unit are as follows: (i) maintain inventories of bituminous coal through volume exchanges and joint purchases, (ii) reduce shipping and demurrage expenses through joint operation and distribution of dedicated

vessels, (iii) reduce costs by sharing information on generation material inventories and (iv) sharing human resources among the five thermal power generation subsidiaries for construction projects, among other things.

Furthermore, in January 2011 the six generation subsidiaries were officially designated as “market-oriented public enterprises,” whereupon the President of Korea appoints the president and the statutory auditor of each such subsidiary; the selection of non-standing directors of each such subsidiary is subject to approval by the Minister of the Ministry of Economy and Finance; the president of each such subsidiary is required to enter into a management contract directly with the Minister of the Ministry of Trade, Industry and Energy; and the Public Enterprise Management Evaluation Team which is established by the Committee for Management of Public Institutions conducts performance evaluation of such subsidiaries. Previously, our president appointed the president and the statutory auditor of each such subsidiary; the selection of non-standing directors of each such subsidiary was subject to approval by our president; the president of each such subsidiary entered into a management contract with our president; and our evaluation committee conducted performance evaluation of such subsidiaries. For further details of the impact of the designation of our generation subsidiaries as “market-oriented public enterprises,” see Item 16.G. “Corporate Governance—The Act on the Management of Public Institutions.”

Proposal for Adjustment of Functions of Public Institutions (Energy Sector)

In June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) for the purpose of streamlining the operations of Government-affiliated energy companies by discouraging them from engaging in overlapping or similar businesses with each other, reducing non-core assets and activities and improving management and operational efficiency. The initiatives contemplated in this proposal that would affect us and our generation subsidiaries include the following: (i) the generation companies should take on greater responsibilities in overseas resource exploration and production projects as these involve procurement of fuels necessary for electricity generation while fostering cooperation among each other through closer coordination, (ii) KHNP should take a greater role in export of nuclear technology, and (iii) the current system of retail sale of electricity to end-users should be liberalized to encourage more competition. In accordance therewith, we transferred a substantial portion of our assets and liabilities in our overseas resource business to our generation subsidiaries as of December 31, 2016. In addition, this Proposal contemplated selling a minority stake in our generation subsidiaries and KEPCO KDN, but the planned sales have been put on hold, as discussed above in “—Privatization of Generation Subsidiaries.”

Proposed Amendment for Direct Participation in Renewable Energy

An amendment to the Electric Utility Act is underway that will enable us to directly participate in the development of renewable power generation. Under the current Electric Utility Act, a single business entity cannot participate in two or more types of electric businesses. Notwithstanding the foregoing, our power generation subsidiaries are allowed to directly participate in the development of renewable power generation and we may also do so by forming new entities to participate in such development. The proposed amendment allows a market-type public institution like ourselves to directly participate in renewable power generation business to a limited degree. The amendment bill was proposed in July 2020 and is now pending deliberation by the Korean national assembly. When the bill passes, we intend to pursue renewable power generation projects such as large-scale offshore wind power.

Purchase of Electricity

Cost-based Pool System

Since April 2001, the purchase and sale of electricity in Korea is required to be made through the Korea Power Exchange, which is a statutory not-for-profit organization established under the Electric Utility Act with responsibilities for setting the price of electricity, handling the trading and collecting relevant data for the

electricity market in Korea. The suppliers of electricity in Korean electricity market consist of our six generation subsidiaries, which were split-off from us in April 2001, and independent power producers, which numbered 36 (excluding 5,313 renewable energy producers) as of December 31, 2022. We distribute electricity purchased through the Korea Power Exchange to end users.

Our Relationship with the Korea Power Exchange

The key features of our relationships with the Korea Power Exchange include the following: (i) we and our six generation subsidiaries are member corporations of the Korea Power Exchange and collectively own 100% of its share capital, (ii) three of the 11 members of the board of directors of the Korea Power Exchange are currently our or our subsidiaries’ employees, and (iii) one of our employees is currently a member in three of the key committees of the Korea Power Exchange that are responsible for evaluating the costs of producing electricity, making rules for the Korea Power Exchange and gathering and disclosing information relating to the Korean electricity market.

Notwithstanding the foregoing relationships, however, we do not have control over the Korea Power Exchange or its policies since, among others, (i) the Korea Power Exchange, its personnel, policies, operations and finances are closely supervised and controlled by the Government, namely through the Ministry of Trade, Industry and Energy, and are subject to a host of laws and regulations, including, among others, the Electric Utility Act and the Act on the Management of Public Institutions, as well as the Articles of Incorporation of the Korea Power Exchange, (ii) we are entitled to elect no more than one-third of the Korea Power Exchange directors and our representatives represent only a minority of its board of directors and committees (with the other members being comprised of representatives of the Ministry of Trade, Industry and Energy, employees of the Korea Power Exchange, businesspersons and/or scholars), and (iii) the role of our representatives in the policy making process for the Korea Power Exchange is primarily advisory based on their technical expertise derived from their employment at us or our generation subsidiaries. Consistent with this view, the Finance Supervisory Service issued a ruling in 2005 that stated that we are not deemed to have significant influence or control over the decision-making process of the Korea Power Exchange relating to its business or financial affairs.

Pricing Factors

The price of electricity in the Korean electricity market is determined principally based on the cost of generating electricity using a system known as the “cost-based pool” system. Under the cost-based pool system, the price of electricity has two principal components, namely the marginal price (representing the variable cost of generating electricity) and the capacity price (representing the fixed cost of generating electricity).

Under the merit order system, the electricity purchase allocation, the system marginal price (as described below) and the final allocation adjustment are automatically determined based on an objective formula. The variable cost (including the adjusted coefficient as described below) and the capacity price are determined in advance of trading by the Cost Evaluation Committee, which is comprised of representatives from the Ministry of Trade, Industry and Energy, the Korea Power Exchange, us, generation companies, scholars and researchers (the “Cost Evaluation Committee”). Accordingly, a supplier of electricity cannot exercise control over the merit order system or its operations to such supplier’s strategic advantage.

Marginal Price

The primary purpose of the marginal price is to compensate the generation companies for fuel costs, which represents the principal component of the variable costs of generating electricity. We currently refer such marginal price as the “system marginal price.”

The system marginal price represents, in effect, the marginal price of electricity at a given hour at which the projected demand for electricity and the projected supply of electricity for such hour intersect, as determined by the merit order system, which is a system used by the Korea Power Exchange to allocate which generation units will supply electricity for which hour and at what price. To elaborate, the projected demand for electricity for a given hour is determined by the Korea Power Exchange based on a forecast made one day prior to trading, and such forecast takes into account, among others, historical statistics relating to demand for electricity nationwide by day and by hour, season and on-peak-hour versus off-peak hour demand analysis. The projected supply of electricity at a given hour is determined as the aggregate of the available capacity of all generation units that have submitted bids to supply electricity for such hour. These bids are submitted to the Korea Power Exchange one day prior to trading. On September 1, 2022, the trading system was further developed to facilitate optimal decisions on market prices and allow plans for generating power to be made with more sophistication, by taking into account thermal constraints, power transmission constraints and reserving power from the stage of making the generation plan.

Under the merit order system, the generation unit with the lowest variable cost of generating electricity among all the generation units that have submitted a bid for a given hour is first awarded a purchase order for electricity up to the available capacity of such unit as indicated in its bid. The generation unit with the next lowest variable cost is then awarded a purchase order up to its available capacity in its bid, and so forth, until the projected demand for electricity for such hour is met. We refer to the variable cost of the generation unit that is the last to receive the purchase order for such hour as the system marginal price, which also represents the highest price at which electricity can be supplied at a given hour based on the demand and supply for such hour. Generation units whose variable costs exceed the system marginal price for a given hour do not receive purchase orders to supply electricity for such hour. The variable cost of each generation unit is determined by the Cost Evaluation Committee on a monthly basis and reflected in the following month based on the fuel costs two months prior to such determination. The purpose of the merit order system is to encourage generation units to reduce its electricity generation costs by making its generation process more efficient, sourcing fuels from most cost-effective sources or adopting other cost savings programs.

The final allocation of electricity supply is further adjusted on the basis of other factors, including the proximity of a generation unit to the geographical area to which power is being supplied, network and fuel constraints and the amount of power loss. This adjustment mechanism is designed to adjust for transmission losses in order to improve overall cost-efficiency in the transmission of electricity to end-users.

The price of electricity at which our generation subsidiaries sell electricity to us is determined using the following formula:

Variable cost + [System marginal price – Variable cost] * Adjusted coefficient

An adjusted coefficient applies in principle to all generation units operated by our generation subsidiaries and the coal-fired generation units operated by independent power producers. The adjusted coefficient applicable to the generation units operated by our generation subsidiaries is determined based on considerations of, among others, electricity tariff rates and the relative fair returns on investment in respect of us compared to our generation subsidiaries. The purpose of the adjusted coefficient here is to prevent electricity trading from resulting in undue imbalances as to the relative financial results among generation subsidiaries as well as between us (as the purchaser of electricity) and our generation subsidiaries (as sellers of electricity). Such imbalances may arise from excessive profit taking by base load generators (on account of their inherently cheaper fuel cost structure compared to non-base load generators) as well as from fluctuations in fuel prices (it being the case that during times of rapid and substantial rises in fuel costs which are not offset by corresponding rises in electricity tariff rates charged by us to end-users, on a non-consolidated basis our profitability will decline compared to that our generation subsidiaries since our generation subsidiaries are entitled to sell electricity to us at cost plus a guaranteed margin). In comparison, the adjusted coefficient applicable to the coal-fired generation units operated by independent power producers is determined to enable such independent power producers to recover the total costs of building and operating such units.

The adjusted coefficient is determined by the Cost Evaluation Committee in principle on an annual basis, although in exceptional cases driven by external or structural factors such as rapid and substantial changes in fuel costs, adjustments to electricity tariff rates or changes in the electricity pricing structure, the adjusted coefficient may be adjusted on a quarterly basis.

Previously, it was contemplated that the vesting contract system, as described below, would gradually replace the application of the adjusted coefficient. However, since the implementation of the vesting contract system has been suspended indefinitely, it is unlikely to impact the application of the adjusted coefficient in the foreseeable future.

Following the increase in energy demand after recovery from COVID-19 and price-driving forces in global macroeconomic situation including Russo-Ukrainian War, the price in energy market has rapidly increased. To relieve cost burden to electricity customers from soaring system marginal price coupled with global energy price increases, on December 1, 2022, the Minister of Trade, Industry and Energy introduced a price ceiling system to put an upper limit for the system marginal price.

The price ceiling comes into force when the system marginal price abnormally increases, which refers to the case when the weighted average of system marginal price of the latest three months is higher than the highest 10% of the monthly weighted average of system marginal price during the period from the latest four to 123 months, and the price ceiling is set at the level multiplied by 1.5 of the weighted average of the system marginal price during the period from the latest four to 123 months. However, even with the price ceiling in effect, if the fuel costs incurred by a generation unit is higher than the price ceiling, such generation unit will be compensated based on such costs.

The price ceiling system applies to all generation units with a capacity of 100kW or more that are trading in the Korea Power Exchange. The price ceiling cannot be applied over consecutive three months and will be in effect until November 30, 2023. The price ceiling was applied from December 2022 to February 2023 and being applied again since April 2023.

Capacity Price

In addition to payment in respect of the variable cost of generating electricity, generation units receive payment in the form of capacity price, the purpose of which is to compensate them for the fixed costs of constructing generation facilities, provide incentives for construction of new generation units and maintain reliability of the nationwide electricity transmission network.

The capacity price is determined by the Cost Evaluation Committee as a function of the following factors: (i) reference capacity price, (ii) reserve capacity factor, (iii) time-of-the-day capacity coefficient and (iv) performance capacity factor introduced since June 2022 instead of fuel switching factor which was effective since October 2016. The time-of-the-day capacity coefficient are determined annually before the end of December for the subsequent twelve-month period. The reference capacity price, reserve capacity factor and the fuel switching factor are determined annually before the end of June for the subsequent twelve-month period.

The reference capacity price refers to the Won amount per kilowatt-hour payable annually for annualized available capacity indicated in the bids submitted the day before trading (provided that such capacity is actually available on the relevant day of trading), and is determined based on the construction costs and maintenance costs of a standard generation unit and related transmission access facilities, and a base rate for loading electricity. Prior to October 2016, the same reference capacity price applied uniformly to all generation units. Since October 2016, the reference capacity price applies differentially to each generation unit depending on the start year of its commercial operation. Accordingly, the reference capacity price currently ranges from Won 9.77 to 11.45 per kilowatt-hour.

The reserve capacity factor relates to the requirement to maintain a standard capacity reserve margin around 13% in order to prevent excessive capacity build-up as well as induce optimal capacity investment at the regional level. The capacity reserve margin is the ratio of peak demand to the total available capacity. Under this system, generation units in a region where available capacity is insufficient to meet demand for electricity as evidenced by failing to meet the standard capacity reserve margin receive increased capacity price. Conversely, generation units in a region where available capacity exceeds demand for electricity as evidenced by exceeding the standard capacity reserve margin receive reduced capacity price. Since October 2016, the reserve capacity factor also factors in the transmission loss per generation unit in order to favor transmission of electricity from a nearby generation unit.

The time-of-the-day capacity coefficient allows hourly and seasonal adjustments in order to incentivize our generation subsidiaries to operate their generation facilities at full capacity during periods of highest demand. For example, the capacity price paid differs depending on whether the relevant hour is an “on-peak” hour, a “mid-peak” hour or an “off-peak” hour (the capacity price being highest for the on-peak hours and lowest for the off-peak hours) and the capacity price paid is highest during the months of January, July and August when electricity usage is highest due to weather conditions.

The fuel switching factor, which was introduced in October 2016 to promote environmental sensitivities to climate change, has been changed into the performance capacity factor since June 2022 to comply with the market trend that differentially compensates the capacity price for the contribution to electricity system and operational flexibility of generation units. In addition, in January 2022, the environmental contribution factor was excluded from the fuel switching factor and instead reflected in the unit thermal cost of each generation unit in order to effectively respond to the greenhouse gas reduction.

Other than subject to the aforementioned variations, the same capacity pricing mechanism applies to all generation units regardless of fuel types used.

In the Ninth Basic Plan, the government announced its plans to introduce real-time electricity trading market and auxiliary service market which is upgraded further than the current market to ensure appropriate valuation and compensation for flexible energy sources and respond to volatility of renewable energy. The reorganization of the market system has been gradually implemented, starting with the implementation of a trading system reflecting constraints and reserves of electricity system in September 2022. The real-time electricity trading market with auxiliary services is expected to be tested in Jeju Province in 2023 and expanded to a larger area in 2025.

Vesting Contract System

In May 2014, the Electric Utility Act was amended to introduce a “vesting contract” system in determining the price and quantity of electricity to be sold and purchased between the purchaser of electricity (namely, us) and the sellers of electricity (namely, our generation subsidiaries and independent power producers). Under the vesting contract system, electricity generators using base load fuels (such as nuclear, coal, hydro and by-product gas) at a particular generation unit were to be required to enter into a contract with the purchaser of electricity (namely, us), which specifies, among other things, the quantity of electricity to be generated and sold at a particular generation unit and the price at which such electricity is sold, subject to certain adjustments.

The vesting contract system was introduced principally to prevent excessive profit-taking by low-cost producers of electricity using base load fuels (such as nuclear, coal, hydro and by-product gas) by replacing the adjusted coefficient as the basis for determining the guaranteed return to generation companies, as well as to enhance the stability of electricity supply by requiring long-term contractual arrangements for the purchase and sale of electricity and promote cost savings, productivity enhancements and operational efficiency by providing incentives and penalties depending on the degree to which the generation companies could supply electricity at costs below the contracted electricity prices.

In order to minimize undue shock to the electricity trading market in Korea, the vesting contract system was to be implemented in phases starting with by-product gas-based electricity in 2015, which accounted for 1.8% of electricity purchased by us during such year. The rollout of the vesting contract system was further studied by a task force consisting of representatives from the Government, the Korea Power Exchange and generation companies.

Following such study, the Government announced in June 2016 that, due to changes in the electricity business environment (including an increase in generation capacity relative to peak usage, reduced fuel costs following a decline in oil prices and greater environmental concerns related to coal-fired electricity generation), it will indefinitely suspend any further rollout of the vesting contract system beyond by-product gas-based electricity, and revert to the adjusted coefficient-based electricity pricing adjustment mechanism. As of the end of 2022, there are no active contracts remaining under the vesting contract system.

Power Trading Results

The results of power trading, as effected through the Korea Power Exchange, for us and our generation subsidiaries and independent power producers in 2022 are as follows:


	Items	Volume (Gigawatt hours)		Percentage of Total Volume (%)		Sales to KEPCO⁽²⁾ (in billions of Won)		Percentage of Total Sales (%)		Unit Price (Won/kWh)
Generation Companies	KHNP		172,347		31.3		10,094		11.9		58.57
	KOSEP		42,177		7.7		7,153		8.4		169.60
	KOMIPO		44,875		8.1		8,509		10.0		189.62
	KOWEPO		41,293		7.5		7,941		9.4		192.30
	KOSPO		49,592		9.0		9,182		10.8		185.16
	EWP		37,468		6.8		6,697		7.9		178.74
	Others⁽¹⁾		163,080		29.6		35,103		41.5		215.25

	Total		550,832		100.0		84,679		100.0		153.73

Energy Sources	Nuclear		167,346		30.4		8,799		10.4		52.58
	Bituminous coal		184,293		33.5		29,114		34.4		157.97
	Anthracite coal		1,675		0.3		340		0.4		202.71
	Oil		1,337		0.2		406		0.5		304.02
	LNG/Combined-cycle		159,461		28.9		38,254		45.2		239.90
	Renewables		28,115		5.1		5,733		6.8		203.89
	Hydro		2,923		0.5		616		0.7		210.81
	Pumped storage		3,702		0.7		1,029		1.2		277.84
	Others		1,980		0.4		388		0.4		196.30

	Total		550,832		100.0		84,679		100.0		153.73

Load	Base load		353,314		64.1		38,252		45.2		108.27
	Non-base load		197,518		35.9		46,427		54.8		235.05

	Total		550,832		100.0		84,679		100.0		153.73

Notes:

(1)	Others represent independent power producers that trade electricity through the cost-based pool system of power trading (excluding independent power producers that supply electricity under power purchase agreements with us).

(2)	Based on the payment made by us through Korea Power Exchange.

Power Purchased from Independent Power Producers under Power Purchase Agreements

In 2022, we purchased an aggregate of 20,586 gigawatt hours of electricity generated by independent power producers under existing power purchase agreements. These independent power producers had an aggregate generation capacity of 15,181 megawatts as of December 31, 2022.

Power Generation

As of December 31, 2022, we and our generation subsidiaries had a total of 770 generation units, including nuclear, thermal, hydroelectric and internal combustion units, representing total installed generation capacity of 82,723 megawatts. Our thermal units produce electricity using steam turbine generators fired by coal, oil and LNG. Our internal combustion units use oil or diesel-fired gas turbines and our combined-cycle units are primarily LNG-fired. We also purchase power from several generation plants not owned by our generation subsidiaries.

The table below sets forth as of and for the year ended December 31, 2022 the number of units, installed capacity and the average capacity factor for each type of generating facilities owned by us and our generation subsidiaries.


	Number of Units		Installed Capacity⁽¹⁾		Average Capacity Factor⁽²⁾
			(Megawatts)		(%)
Nuclear		25		24,650		81.6
Thermal:
Coal		53		32,559		57.6
LNG		4		1,400		11.2
Total thermal		57		33,959		55.7

Internal combustion		213		137		47.6
Combined-cycle⁽³⁾		117		16,652		35.8
Integrated gasification combined cycle⁽⁴⁾		3		346		64.8
Hydroelectric⁽⁵⁾		61		5,351		10.8
Wind		16		168		14.8
Solar		239		284		14.2
Fuel cell		31		421		66.9
Bio		8		745		52.9
Others⁽⁶⁾		1		10		78.7

Total		770		82,723		56.3

Notes:

(1)	Installed capacity represents the level of output that may be sustained continuously without significant risk of damage to plant and equipment.

(2)	Average capacity factor represents the total number of kilowatt-hours of electricity generated in the indicated period divided by the total number of kilowatt-hours that would have been generated if the generation units were continuously operated at installed capacity, expressed as a percentage.

(3)	Involves generation through gas and oil.

(4)	Involves generation through coal and gasified coal.

(5)	Includes generation through pumped storage.

(6)	Includes waste-to-energy.

The expected useful life of a unit, assuming no substantial renovation, is approximately as follows: nuclear, over 40 years; thermal, over 30 years; internal combustion, over 25 years; and hydroelectric, over 55 years. Substantial renovation can extend the useful life of thermal units by up to 20 years.

We seek to achieve efficient use of fuels and diversification of generation capacity by fuel type. In the past, we relied principally upon oil-fired thermal generation units for electricity generation. The high average age of our oil-fired thermal units is attributable to our reliance on oil-fired thermal units as the primary means of electricity generation until mid-1970s. Since then, we have diversified our fuel sources and constructed relatively few oil-fired thermal units compared to units of other fuel types.

Since the oil shock in 1974, however, Korea’s power development plans have emphasized the construction of nuclear generation units. While nuclear units are more expensive to construct than thermal generation units of comparable capacity, nuclear fuel is less expensive than fossil fuels in terms of electricity output per unit cost. However, efficient operation of nuclear units requires that such plants be run continuously at relatively constant energy output levels. As it is impractical to store large quantities of electrical energy, we seek to maintain nuclear power production capacity at approximately the level at which demand for electricity is continuously stable. During those times when actual demand exceeds the usual level of electricity supply from nuclear power, we rely on units fired by fossil fuels and hydroelectric units, which can be started and shut down more quickly and efficiently than nuclear units, to meet the excess demand. Bituminous coal has been the least expensive thermal fuel per kilowatt-hour of electricity produced, and therefore our use of bituminous coal for generation needs takes the largest portion in excess of the stable demand level, except for meeting short-term surges in demand which require rapid start-up and shutdown. Thermal units fired by LNG, hydroelectric units and internal combustion units are the most efficient types of units for rapid start-ups and shutdowns, and therefore we use such units principally to meet short-term surges in demand. Anthracite coal is a less efficient fuel source than bituminous coal in terms of electricity output per unit cost.

Our generation subsidiaries have constructed and operated thermal and internal combustion units in order to help meet power demand. Subject to market conditions, our generation subsidiaries plan to continue to add additional thermal (other than coal-fired) and internal combustion units. These units generally take less time to complete construction than nuclear units.

The table below sets forth, for the periods indicated, the amount of electricity generated by facilities linked to our grid system and the amount of power used or lost in connection with transmission and distribution.


	2018		2019		2020		2021		2022		% of 2022 Gross Generation⁽¹⁾

	(in gigawatt hours, except percentages)
Electricity generated by us and our generation subsidiaries:
Nuclear		133,505		145,910		160,184		158,015		176,054		29.6
Coal		222,818		211,785		178,808		172,419		164,271		27.6
Oil		5,845		1,842		1,504		1,494		352		0.1
LNG		—		—		587		1,177		1,377		0.2
Internal combustion		529		579		405		491		570		0.1
Combined-cycle		46,780		39,049		41,446		53,609		52,243		8.8
Hydro		5,187		4,477		4,501		4,762		5,043		0.8
Wind		195		192		202		195		219		0.0
Solar		183		209		236		493		354		0.1
Fuel cells		527		1,036		1,528		1,993		2,470		0.4
Others		2,758		3,991		5,121		5,725		5,488		0.9

Total generation by us and our generation subsidiaries		418,327		409,070		394,522		400,373		408,441		68.7


	2018		2019		2020		2021		2022		% of 2022 Gross Generation⁽¹⁾

	(in gigawatt hours, except percentages)
Electricity generated by IPPs:
Thermal		125,830		124,128		123,856		140,983		142,992		24.1
Hydro, other renewable and others		26,490		29,842		33,784		35,453		42,967		7.2

Total generation by IPPs		152,320		153,970		157,640		176,436		185,959		31.3

Gross generation		570,647		563,040		552,162		576,809		594,400		100.0
Auxiliary use⁽²⁾		21,372		21,573		21,135		21,254		22,081		3.7
Pumped-storage⁽³⁾		5,106		4,588		4,352		4,856		4,912		0.8

Total net generation⁽⁴⁾		544,169		536,879		526,675		550,699		567,407		95.5

Transmission and distribution losses⁽⁵⁾		19,359		19,000		18,610		19,424		20,020		3.5

IPPs = Independent power producers

Notes:

(1)	Unless otherwise indicated, percentages are based on gross generation.

(2)	Auxiliary use represents electricity consumed by generation units in the course of generation.

(3)	Pumped storage represents electricity consumed during low demand periods in order to store water which is utilized to generate hydroelectric power during peak demand periods.

(4)	Total net generation represents gross generation minus auxiliary and pumped-storage use.

(5)	Transmission and distribution losses rate represents total transmission and distribution losses divided by total net generation.

The table below sets forth our total capacity at the time of peak usage, and peak and average loads during, the indicated periods.


	2018		2019		2020		2021		2022

	(Megawatts)
Total capacity		117,205		121,147		127,819		131,330		137,938
Peak load		92,478		90,314		89,091		91,141		94,509
Average load		65,142		64,274		62,860		65,835		67,854

Korea Hydro & Nuclear Power Co., Ltd.

We commenced nuclear power generation activities in 1978 when our first nuclear generation unit, Kori #1, began commercial operation. On April 2, 2001, all of our nuclear and hydroelectric power generation assets and liabilities were transferred to KHNP.

At KHNP’s five power plant complexes, Kori, Saeul, Wolsong, Hanbit and Hanul (each complex located in Busan, Ulsan, Gyeongju, Yonggwang and Ulchin, respectively), it operates 25 nuclear generation units, among which Kori #2 has been shut down since April 8, 2023. KHNP submitted a safety evaluation report to the NSSC in April 2022 to seek approval for an extension of the life of Kori #2. KHNP also operates 53 hydroelectric generation units including 16 pumped storage hydro generation units as well as 55 solar generation units and one wind generation unit as of December 31, 2022.

The table below sets forth the number of units and installed capacity as of December 31, 2022 and the average capacity factor by types of generation units in 2022 including Kori #2.


	Number of Units		Installed Capacity⁽¹⁾		Average Capacity Factor⁽²⁾
			(Megawatts)		(%)
Nuclear		25		24,650		81.6
Hydroelectric		53		5,307.5		23.1
Solar		55		69.49		15.7
Wind		1		0.75		—

Total		134		30,027		69.7

Notes:

(1)	Installed capacity represents the level of output that may be sustained continuously without significant risk of damage to plant and equipment.

(2)	Average capacity factor represents the total number of kilowatt-hours of electricity generated in the indicated period divided by the total number of kilowatt-hours that would have been generated if the generation units were continuously operated at installed capacity, expressed as a percentage.

KHNP commenced commercial operation of Saeul #1 (formerly named as Shin-Kori #3), with a 1,400 megawatt capacity, in December 2016, and Saeul #2 (formerly named as Shin-Kori #4) began commercial operations on August 2019. In December 2022, the commercial operation of Shin-Hanul #1 has begun. KHNP is currently building three additional nuclear generation units, two at Saeul and one at Shin-Hanul complexes, each with a 1,400 megawatts capacity. KHNP expects to complete these units between 2023 and 2025. In June 2018, the board of directors of KHNP decided to retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the unit’s economic viability and regional sentiment of its continuing operation. The initial phase of the decommissioning of Kori #1, which primarily involves safety inspections and the removal of spent nuclear fuels, has begun after its permanent shutdown in June 2017. In April 2022, KHNP submitted a safety evaluation report to the NSSC to seek approval for an extension of the life of Kori #2, which has been shut down since April 8, 2023.

Nuclear

The table below sets forth certain information with respect to the nuclear generation units of KHNP as of December 31, 2022.


Unit⁽⁴⁾	Reactor Type⁽¹⁾	Reactor Design⁽²⁾	Turbine and Generation⁽³⁾	Commencement of Operations		Installed Capacity		Average Capacity Factor
						(Megawatts)		(%)
Kori #2	PWR	W	GEC		1983		650		64.1
Kori #3	PWR	W	GEC, Hitachi		1985		950		97.0
Kori #4	PWR	W	GEC, Hitachi		1986		950		99.7
Shin-Kori #1	PWR	D, KEPCO E&C, W	D, GE		2011		1,000		86.0
Shin-Kori #2	PWR	D, KEPCO E&C, W	D, GE		2012		1,000		86.5
Saeul #1	PWR	D, KEPCO E&C, W	D, GE		2016		1,400		99.1
Saeul #2	PWR	D, KEPCO E&C, W	D, GE		2019		1,400		80.1
Wolsong #2	PHWR	AECL, H, K	H, GE		1997		700		41.6
Wolsong #3	PHWR	AECL, H	H, GE		1998		700		88.8
Wolsong #4	PHWR	AECL, H	H, GE		1999		700		101.9
Shin-Wolsong #1	PWR	D, KEPCO E&C, W	D, GE		2012		1,000		90.5
Shin-Wolsong #2	PWR	D, KEPCO E&C, W	D, GE		2015		1,000		83.9
Hanbit #1	PWR	W	W, D		1986		950		69.0


Unit⁽⁴⁾	Reactor Type⁽¹⁾		Reactor Design⁽²⁾	Turbine and Generation⁽³⁾	Commencement of Operations		Installed Capacity		Average Capacity Factor
							(Megawatts)		(%)
Hanbit #2		PWR	W	W, D		1987		950		62.1
Hanbit #3		PWR	H, CE, K	H, GE		1995		1,000		60.6
Hanbit #4		PWR	H, CE, K	H, GE		1996		1,000		5.3
Hanbit #5		PWR	D, CE, W, KEPCO E&C	D, GE		2002		1,000		100.0
Hanbit #6		PWR	D, CE, W, KEPCO E&C	D, GE		2002		1,000		73.4
Hanul #1		PWR	F	A		1988		950		84.5
Hanul #2		PWR	F	A		1989		950		99.5
Hanul #3		PWR	H, CE, K	H, GE		1998		1,000		97.9
Hanul #4		PWR	H, CE, K	H, GE		1999		1,000		99.2
Hanul #5		PWR	D, KEPCO E&C, W	D, GE		2004		1,000		78.3
Hanul #6		PWR	D, KEPCO E&C, W	D, GE		2005		1,000		86.0
Shin-Hanul #1		PWR	D, KEPCO E&C, W	D, GE		2022		1,400		102.5

Total nuclear								24,650		81.6

Notes:

(1)	“PWR” means pressurized light water reactor; “PHWR” means pressurized heavy water reactor.

(2)

“W” means Westinghouse Electric Corporation (U.S.A.); “D” means Doosan Heavy Industries & Construction Co., Ltd.; “KEPCO E&C” means KEPCO Engineering & Construction Co., Inc.; “AECL” means Atomic Energy of Canada Limited (Canada); “H” means Hanjung; “K” means Korea Atomic Energy Research Institute; “CE” means Combustion Engineering (U.S.A.); “F” means Framatome (France).

(3)	“GEC” means General Electric Company (U.K.); “W” means Westinghouse Electric Corporation (U.S.A.); “A” means Alstom (France); “H” means Hanjung; “GE” means General Electric (U.S.A.); “D” means Doosan Heavy Industries & Construction Co., Ltd.; “Hitachi” means Hitachi Ltd. (Japan).

(4)

Kori #1 was permanently shut down on June 18, 2017. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1. Saeul #1 and 2 were formerly named as Shin-Kori #3 and 4. Shin-Hanul #1 commenced its operation on December 7, 2022. Kori #2 has been shut down since April 8, 2023 and KHNP submitted a safety evaluation report to the NSSC in April 2022 to seek approval for an extension of its life.

Under extended-cycle operations, nuclear units can be run continuously for periods longer than the conventional twelve-month period between scheduled shutdowns for refueling and maintenance. Since 1987, we have adopted the mode of extended-cycle operations for all of our pressurized light water reactor units and plan to use it for our newly constructed units. The duration of shutdown for fuel replacement, maintenance and the evaluation period for approval to start after maintenance was 1,628.9 days in the aggregate in 2022. In addition, KHNP’s nuclear units experienced an average of 0.17 unplanned shutdowns per unit in 2022. In the ordinary course of operations, KHNP’s nuclear units routinely experience damage and wear and tear, which are repaired during routine shutdown periods or during unplanned temporary suspensions of operations. No significant damage has occurred in any of KHNP’s nuclear reactors, and no significant nuclear exposure or release incidents have occurred at any of KHNP’s nuclear facilities since the first nuclear plant commenced operation in 1978.

Hydroelectric

The table below sets forth certain information relating to KHNP’s pumped-storage and hydroelectric business units, including the installed capacity as of December 31, 2022 and the average capacity factor in 2022.


Location of Unit	Number of Units		Classification		Year Built		Installed Capacity		Average Capacity Factor
							(Megawatts)		(%)
Hwacheon		4		Dam waterway		1944		108.0		22.5
Chuncheon		2		Dam		1965		62.28		22.7
Euiam		2		Dam		1967		48.0		35.3
Cheongpyung		4		Dam		1943		140.1		25.4
Paldang		4		Dam		1973		120.0		31.7
Chilbo (Seomjingang)		3		Basin deviation		1945		35.4		23.7
Boseonggang		2		Basin deviation		1937		4.5		18.7
Kwoesan		2		Dam		1957		2.8		31.5
Anheung (GangLim)		3		Dam waterway		1978		0.5		26.1
Kangreung		2		Basin deviation		1991		82.0		—
Topyeong		1		Dam		2011		0.045		7.0
Muju		1		Dam		2003		0.4		33.2
Sancheong		2		Dam		2001		0.995		25.2
Yangyang		2		Dam		2005		1.4		33.2
Yangyang		1		Dam		2020		0.15		78.2
Yecheon		1		Dam		2011		0.9		10.6
Yecheon (Mini)		1		Dam		2018		0.025		92.7
Cheongpeoung		2		Pumped Storage		1980		400.0		9.5
Samrangjin		2		Pumped Storage		1985		600.0		11.1
Muju		2		Pumped Storage		1995		600.0		11.7
Sancheong		2		Pumped Storage		2001		700.0		11.6
Yangyang		4		Pumped Storage		2006		1,000.0		10.8
Cheongsong		2		Pumped Storage		2006		600.0		9.9
Yecheon		2		Pumped Storage		2011		800.0		—

Total		53						5,307.5		9.0

Solar/Wind

The table below sets forth certain information, including the installed capacity as of December 31, 2022 and the average capacity factor in 2022, of the solar and wind power units of KHNP.


Location of Unit	Classification	Year Built		Installed Capacity		Average Capacity Factor
				(Megawatts)		(%)
Yonggwang	Solar		2008-2021		21.56		16.4
Yecheon	Solar		2012		2.01		15.4
Kori	Wind		2008		0.75		—
Busan	Solar		2017-2022		7.69		17.6
Gapyeong	Solar		2017-2022		0.96		14.7
Chuncheon	Solar		2021		0.10		13.9
Cheongsong	Solar		2018-2021		4.49		16.8
Kwoesan	Solar		2018		0.25		15.5
Boseonggang	Solar		2018		1.99		14.2


Location of Unit	Classification	Year Built		Installed Capacity		Average Capacity Factor
				(Megawatts)		(%)
Samrangjin	Solar		2019		2.77		15.7
Yeoncheon	Solar		2020		1.00		13.7
Jeju	Solar		2020-2021		14.08		14.9
Gyeongju	Solar		2020-2022		12.59		14.3

Total					70.24		15.6

Korea Water Resources Corporation, which is a Government-owned entity, assumes full control of multi-purpose dams, while KHNP maintains the dams used for power generation. Existing hydroelectric power units have exploited most of the water resources in Korea available for commercially viable hydroelectric power generation. Consequently, we expect that no new major hydroelectric power plants will be built in the foreseeable future. Due to the ease of its start-up and shut-down mechanism, hydroelectric power generation is reserved for peak demand periods.

Korea South-East Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2022 and the average capacity factor and average fuel cost per kilowatt in 2022 based upon the net amount of electricity generated, of KOSEP.


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Samcheonpo #3, 4, 5, 6		27.2		2,120.0		61.5		130.81
Yeongheung #1, 2, 3, 4, 5, 6		13.7		5,080.0		56.9		120.42
Yeosu # 1, 2		8.8		668.6		56.4		137.83
Combined cycle and internal Combustion:
Bundang gas turbine #1,2,3,4,5,6,7,8; steam turbine #1, 2		29.0		922.1		33.2		285.33
Hydro, Solar and other renewable energy		—		487.5		50.8		201.24

Total		22.7		9,278.2		55.2		138.62

Korea Midland Power Co., Ltd.


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Boryeong #3, 4, 5, 6, 7, 8		24.0		3,050.0		54.7		121.4
Shin Boryeong #1, 2		5.5		2,038.0		69.6		109.2
Shin Seocheon #1		1.6		1,018.0		52.1		118.3
Combined-cycle and internal combustion:
Boryeong gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2, 3		23.8		1,350.0		11.3		241.7


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Incheon gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2, 3		13.9		1,462.5		38.0		231.8
Seoul gas turbine #1, 2; steam turbine #1, 2		3.4		738.4		57.4		192.7
Jeju gas turbine #1, 2; steam turbine #1, 2		4.5		228.7		46.4		238.0
Sejong gas turbine #1, 2; steam turbine #1		9.2		530.4		67.5		181.0
Jeju Internal Combustion Engine #1,2		15.6		80.0		39.2		249.6
Bio Oil:
Jeju #2, 3		22.5		150.0		51.2		461.6
Wind:
Yangyang #1, 2		16.6		3.0		6.3		19.0
Sejong Maebongsan Wind		16.5		8.8		—		—
Jeju Sangmyung Wind		6.5		21.0		16.5		2.2
Combined heat and power:
Wonju #1		7.7		10.0		78.7		100.0
Hydroelectric:
Boryeong		13.9		7.5		14.6		0.5
Shin Boryeong		6.3		5.0		39.8		—
Shin Seocheon		1.6		2.6		23.1		—
Photovoltaic (“PV”) power and fuel cell generation:
Boryeong (PV) site		6.5		3.1		13.5		4.0
Shin Boryeong (PV) site		4.9		4.0		15.1		—
Seocheon (PV) site		4.9		3.9		15.9		—
Jeju (PV) site		5.8		4.3		12.2		—
Seoul (PV) site		11.4		1.3		15.1		4.8
Sejong (PV) site		5.1		0.3		14.4		—
Yeosu (PV) site		10.8		2.2		15.5		—
Incheon (PV) site		5.2		1.6		14.4		—
Shin Boryeong (fuel cell) site		5.2		7.5		79.9		292.6
Incheon (fuel cell) site		2.9		31.7		90.4		272.8
Seoul (fuel cell) site		2.3		6.0		98.2		185.0
Sejong (fuel cell) site		2.9		5.3		87.2		222.2

Total		14.1		10,755.1		50.0		151.3

Korea Western Power Co., Ltd.


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Taean #1, 2, 3, 4, 5, 6, 7, 8, 9, 10		16.7		6,100.0		54.7		119.2
LNG-fired:
Pyeongtaek #1, 2, 3, 4⁽¹⁾		41.1		1,400.0		11.2		301.1
Combined cycle:
Pyeongtaek #2		8.2		868.5		62.6		213.2
Gunsan		12.6		718.4		14.9		281.8
West Incheon		30.1		1,800.0		28.6		243.4
Hydroelectric:
Taean		15.3		7.2		15.2		—
Solar:
Taean		5.4		17.3		12.4		—
Pyeongtaek		5.5		3.9		13.5		—
West Incheon		5.5		1.2		13.3		—
Gunsan		7.2		1.0		17.2		—
Samryangjin		15.1		3.0		14.8		—
Sejong City		10.5		5.0		14.0		—
Gyeonggi-do		9.7		2.5		13.8		—
Yeongam		9.8		13.3		16.2		—
Goheung		3.7		1.0		15.2		—
Fuel Cell:
West Incheon 1		7.7		16.6		14.7		304.5
West Incheon 2		3.4		60.3		45.1		276.7
Cheonan Cheongsu		3.0		5.3		81.7		309.4
Hwaseong Namyang		1.5		20.2		93.5		260.6
Gyeonggi Uiwang		1.4		9.9		99.4		206.5
Daejeon Hakha		1.1		6.2		95.8		210.8
Icheon Gwango		0.2		9.6		85.7		234.0
Iksan		0.7		15.0		98.5		166.8
Wind Power:
Hwasun		7.0		16.0		16.9		—
Jangheung		1.3		18.0		13.8		—
Integrated gasification combined cycle:
Taean		6.4		346.3		64.8		99.7

Total		20.5		11,465.7		43.5		153.6

Notes:

(1)	Pyeongtaek #1, 2, 3 and 4 were converted into LNG-fired power plant in February 2020.

Korea Southern Power Co., Ltd.


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Hadong #1, 2, 3, 4, 5, 6, 7, 8		21.6		4,000		63.8		116.0
Samcheok #1, 2		5.8		2,044		62.4		105.9
Combined cycle:
Shin Incheon #1, 2, 3, 4		25.4		1,800		33.3		234.0
Busan #1, 2, 3, 4		19.2		1,800		52.1		212.0
Yeongwol #1		12.2		848		9.4		223.4
Hallim		25.4		105		44.6		265.4
Andong #1		8.8		362		58.1		210.1
Nam Jeju #1		2.1		146		19.3		402.2
Bio Oil:
Nam Jeju #1, 2		16.0		200		51.9		402.2
Wind power:
Hankyung		16.2		21		20.9		—
Seongsan		13.1		20		24.4		—
Solar		4.6		36		14.3		—
Small Hydropower		5.4		3		38.9		—
Fuel Cell		3.2		94		83.9		244.0

Total		17.3		11,479		51.6		156.0

Korea East-West Power Co., Ltd.


	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Dangjin #1, 2, 3, 4, 5, 6, 7, 8, 9, 10		15.0		6,040		52.8		116.9
Anthracite:
Donghae #1, 2		23.8		400		53.4		133.1
Combined cycle:
Ulsan gas turbine #1, 2, 3, 4, 5, 6, 7, 8; steam turbine #1, 2, 3, 4		19.0		2,072		38.2		225.6
Ilsan gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2		28.8		900		22.6		302.0
Mini hydro, Photovoltaic, Fuel Cell, Wind-Power, Biomass:		—		151		46.1		134.6

Total		21.7		9,563		46.7		146.7

Notes:

(1)	Ulsan #4, 5 and 6, all oil-fired power plants, were shut down in February 2022 will be converted into LNG-fired power plant.

Power Plant Remodeling and Recommissioning

Our generation subsidiaries supplement power generation capacity through remodeling or recommissioning of thermal units. Recommissioning includes installation of anti-pollution devices, modification of control systems and overall rehabilitation of existing equipment. The following table shows recent remodeling and recommissioning initiatives by our generation subsidiaries.


Power Plant	Capacity	Completed (Year)	Extension	Company
Taean #1 - 10	6,100 MW (500 MW×8, 1,050 MW×2)	EP⁽¹⁾ upgrade (#5, 2009) EP upgrade (#6, 2010) EP upgrade (#2, 2016) EP upgrade (#1, 2017) EP upgrade (#3, 4, 2018) SCR⁽²⁾ upgrade (#2, 4, 7, 2016) SCR upgrade (#1, 8, 2017) SCR upgrade (#3, 5, 6, 2018) FGD⁽⁵⁾ upgrade (#1, 2017) FGD upgrade (#2, 3, 4, 2018) SCR upgrade(#7, 2022) SCR upgrade(#8, 2023)	Anti-pollution	KOWEPO
Pyeongtaek #1 - 4	1,400 MW (350 MW×4)	Steam turbine upgrade (#2, 3, 2014)	10-year performance- improvement	KOWEPO
Boryeong #3 - 6	2,050 MW (#3: 550 , #4~6: 500×3)	Retrofit (#3, 2019) Retrofit (#4, 2023) Conversion into LNG-fired plant(#5, 6, scheduled to be completed in 2026)	Lifetime extension Conversion into LNG-fired Plant	KOMIPO
Boryeong #7, 8	1,000 MW (500 MW×2)	EP upgrade (#7, 2025) EP upgrade (#8, 2026)	Performance- improvement	KOMIPO
Yeosu #1, 2	668.6MW (#1:340, #2:328.6MW)	Boiler Type Change (CFBC⁽³⁾:#1:2016, #2:2011)	30 years	KOSEP
Samcheonpo #5, 6	1,000 MW (500 MW ×2)	EP upgrade(2016 ~ 2017), FGD, SCR, WESP⁽⁶⁾ installation (2019~2021)	Anti-pollution	KOSEP
Yeongheung #1, 2	1,600 MW (800 MW ×2)	EP, FGD, SCR Upgrade (2022~2023)	Anti-pollution	KOSEP
Yeongdong #1. 2	325 MW (#1:125, #2:200 MW)	Boiler, Hybrid SCR & EP, Draft System Retrofit (Biomass⁽⁴⁾ #1: 2017, #2: 2020)	Renewable energy	KOSEP
Dangjin #1 - 4	2,000MW (500MW×4)	FGD, EP, SCR upgrade (2022)	Performance- improvement	EWP
Dangjin #5 - 8	2,000MW (500MW×4)	FGD, EP, SCR upgrade (2024)	Performance- improvement	EWP
Dangjin #9 - 10	2,040MW (1,020MW×2)	FGD, EP, SCR upgrade (2026)	Performance- improvement	EWP


Power Plant	Capacity	Completed (Year)	Extension	Company
Donghae #1, 2	400 MW (200 MW×2)	FGD (2022)	Anti-pollution & modification of control systems	EWP
Hadong #1 - 8	4,000 MW (500 MW×8)	SCR Upgrade (#5. 2016) SCR Upgrade (#2,3,5. 2017) SCR Upgrade (#1,4,6,7. 2018) SCR Upgrade (#8. 2019) FGD Upgrade (#6, 2018) FGD Upgrade (#2, 3, 2019) FGD Upgrade (#4 2020) FGD Upgrade (#5 2021)	Anti-pollution	KOSPO

Notes:

(1)	“EP” means an electrostatic precipitation system.

(2)	“SCR” means a selective catalytic reduction system.

(3)	“CFBC” means a circulating fluidized bed combustion system.

(4)	“Biomass” means wood pallet powered plant.

(5)	“FGD” means flue-gas desulfurization designed to remove sulfur oxides.

(6)	“WESP” means wet electrostatic precipitator.

Transmission and Distribution

We currently transmit and distribute substantially all of the electricity in Korea.

As of December 31, 2022, our transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others including high-voltage direct current lines, and we had 895 substations with aggregate installed transformer capacity of 347,426 megavolt-amperes.

As of December 31, 2022, our distribution system consisted of 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers.

We make substantial investments in our transmission and distribution systems to minimize power interruptions and improve efficiency. Our current projects principally focus on increasing capabilities of the existing power networks and reducing our transmission and distribution loss, which was 3.53% of our gross generation in 2022. To cope with increasing damages to large-scale transmission and distribution facilities, we plan to reinforce stability of our transmission and distribution facilities through stricter design and material specifications. In addition, we also plan to expand underground transmission and distribution facilities to meet customer demand for more environment-friendly facilities. In order to reduce the interruption time in power distribution, which is an indicator of the quality of electricity transmission, we also continue to invest in automation of electricity transmission and development of new transmission technologies, among others.

Some of the facilities we own and use in our distribution system use rights of way and other concessions granted by municipal and local authorities in areas where our facilities are located. These concessions are generally renewed upon expiration.

New Energy Industry Projects

Certain of our new energy industry projects are described below.

Advanced Metering Infrastructure

In July 2012, the Government implemented a master plan to build out a smart grid, which includes the Advanced Metering Infrastructure (“AMI”) roadmap. In August 2018 and February 2023, the Government updated the master plan to focus on building electricity market ecosystem and constructing smart energy consuming structure focused on energy efficiency. In accordance with such plan, we are in the process of installing “smart meters” and related communication networks and operating systems as part of the “smart grid” initiative in an effort to enhance efficiency in the power electricity industry and alleviate growing energy shortage concerns. Our goal is to complete such installation for all of the households in Korea. Smart meters refer to digital meters that record, on a real-time basis, electricity consumption within a household so that consumers will have a price-based incentive to enhance efficiency in their electricity usage. As of December 31, 2022, we have established data communication network that enables smart meters for 12 million households and plan to establish it for 10.5 million additional households by 2024. We have spent Won 931 billion on the AMI project until 2022 and expect to spend an additional Won 461 billion, bringing the total cost to approximately Won 1.4 trillion.

Smart Grids

Smart grids refer to next-generation networks for electricity distribution that integrate information technology into existing power grids with the aim of enabling two-way real time exchange of information between electricity suppliers and consumers for optimal efficiency in electricity use. As part of our overall business strategy, we are currently developing and implementing smart grids based on advanced information technology in order to promote more efficient allocation and use of electricity by consumers. We expect that such technology will improve efficiency and reduce electricity loss over the course of electricity transmission and distribution. We also expect that the smart grid initiative will significantly increase efficient energy consumption by providing real-time data to customers, which would in turn help to reduce greenhouse gas emission and decrease Korea’s reliance on foreign energy sources.

In addition, we collaborated with the Seoul Metropolitan Government with the goal of realizing a carbon-neutral city by conducting a project to build an energy integration platform and providing energy-related services to all parts of Seoul from December 2020 to December 2022. Based on our experience with the Seoul Metropolitan Government’s project, we will create a platform that supports regional energy planning in order to support and lead the national energy planning scheme.

Energy Storage Systems

In October 2013, as part of an endeavor to create new markets for energy demand management applications using information and communication technology, we established a business plan to roll out energy storage systems for frequency regulation nationwide. These systems involve the establishment and operation of batteries and transformers with large-sized charge and discharge capabilities adjacent to substations to transmit electricity stably with regulated frequencies and optimize the efficiency of the substation operation. This system allows full conversion of reserve capacity for frequency regulation at existing low-cost generators into electricity storage and, if operated in sizable scale, offers opportunities for substantial cost savings in purchase of electricity.

In December 2014, we conducted a pilot project for this initiative by installing a 52 megawatts energy storage system at the Seo-Anseong substation and the Shin-Yongin substation. In July 2015, these substations began to commercially operate energy storage systems, and we expanded the energy storage capacity nationwide, with a total capacity of 426 megawatts as of December 31, 2022.

Electric Vehicle Charging Infrastructure

In order to promote the use of environment-friendly electric vehicles, we began constructing infrastructures for electric vehicles in 2009. Since 2016, we have installed electric vehicle charging stations throughout public space and residential building complexes. In 2017, we created a platform for businesses in the electric vehicle

charging industry by charging for the service and making the infrastructures available to the market. We have installed 10,815 high and low speed electric vehicle charging stations by the end of 2022 and plan to expand such stations in line with the Government policy to popularize electric vehicles. We plan to continue fostering businesses and revitalizing the electronic vehicle charging market by developing the current infrastructure and providing new services.

In January 2016, the Ministry of Trade, Industry and Energy announced an initiative to promote the new energy industry by creating the New Energy Industry Fund. For further details, see “—Capital Investment Program.”

Fuel Sources and Requirements

Nuclear

Uranium, the principal fuel source for nuclear power, accounted for 40.6%, 39.5% and 43.1% of the fuel requirements for electricity generation by us and our generation subsidiaries in terms of electricity generated in 2020, 2021 and 2022, respectively.

All uranium ore concentrates used by KHNP are imported from, and conversion and enrichment of such concentrates are provided by, sources outside Korea and are paid for with currencies other than Won, primarily U.S. dollars.

In order to ensure a stable supply, KHNP enters into long-term and medium-term contracts with various suppliers and supplements such supplies with purchases in spot markets. In 2022, KHNP purchased approximately 4,215 tons of its uranium concentrate requirement under both long-term and spot supply contracts with suppliers in Canada, Russia, France, the United Kingdom, Switzerland, Australia, Germany, Japan and Uzbekistan. Under the long-term supply contracts, the purchase prices of uranium concentrates are adjusted annually based on base prices and spot market prices prevailing at the time of actual delivery. The conversion and enrichment services of uranium concentrates are provided by suppliers in France, Japan, Russia, the United Kingdom, the United States, Hong Kong and Switzerland. A Korean supplier typically provides fabrication of fuel assemblies. Except for certain fixed contract prices, contract prices for processing of uranium are adjusted annually in accordance with the general rate of inflation. KHNP intends to obtain its uranium requirements in the future, in part, through purchases under medium- to long-term contracts and, in part, through spot market purchases.

Coal

Bituminous coal accounted for 44.8%, 42.6% and 39.8% of the fuel requirements for electricity generation by us and our generation subsidiaries in 2020, 2021 and 2022, respectively, and anthracite coal accounted for 0.5%, 0.5% and 0.5% of our fuel requirements for electricity generation in terms of electricity generated in 2020, 2021 and 2022, respectively.

In 2022, our generation subsidiaries purchased approximately 66.2 million tons of bituminous coal, of which approximately 30.9%, 26.7%, 19.9%, 8.5% and 14.0% were imported from Australia, Indonesia, Russia, South Africa and others, respectively. Approximately 91.8% of the bituminous coal requirements of our generation subsidiaries in 2022 were purchased under long-term contracts with the remaining 8.2% purchased in the spot market. Some of our long-term contracts relate to specific generating plants and extend through the end of the projected useful lives of such plants, subject in some cases to periodic renewal. Pursuant to the terms of our long-term supply contracts, prices are adjusted periodically based on market conditions. The average cost of bituminous coal per ton purchased under such contracts amounted to Won 69,748, Won 103,893 and Won 231,643 in 2020, 2021 and 2022, respectively.

In 2022, our generation subsidiaries purchased approximately 1 million tons of anthracite coal. The prices for anthracite coal under such contracts are set by the Government. The average cost of anthracite coal per ton purchased under such contracts was Won 137,116, Won 155,826 and Won 224,827 in 2020, 2021 and 2022, respectively.

Oil

Oil accounted for 0.4%, 0.4% and 0.1% of the fuel requirements for electricity generation by us and our generation subsidiaries in terms of electricity generated in 2020, 2021 and 2022, respectively.

In 2022, our generation subsidiaries purchased approximately 4.1 million barrels of fuel oil, substantial portion of which was purchased from domestic refiners through competitive open bidding. Purchase prices are based on the spot market price in Singapore. The average cost of oil per barrel was Won 91,566, Won 127,644 and Won 215,729 in 2020, 2021 and 2022, respectively.

LNG

LNG accounted for 10.6%, 13.7% and 13.1% of the fuel requirements for electricity generation by us and our generation subsidiaries in terms of electricity generated in 2020, 2021 and 2022, respectively. In 2022, for use in electricity generation we purchased approximately 7.3 million tons of LNG from Korea Gas Corporation, a Government-controlled entity in which we currently own a 20.47% equity interest (excluding treasury shares). In 2022, we purchased a substantial portion of our LNG requirements for use in power generation from Korea Gas Corporation. Under the terms of the LNG contract with Korea Gas Corporation, all of our five non-nuclear generation subsidiaries jointly and severally agreed to purchase a total of 7.7 million tons of LNG in 2022, subject to an automatic price adjustment annually based on a pre-determined formula if the actual purchased amount exceeds or falls short of the contracted amount. We believe the quantities of LNG provided under such contract will be adequate to meet the needs of our generation subsidiaries for LNG for the next several years. The LNG supply contracts between our generation subsidiaries and Korea Gas Corporation generally have a term of 20 years and provide for minimum purchase requirements for our generation subsidiaries, the specific terms of which are subject to negotiation between Korea Gas Corporation and our generation subsidiaries and approval by the Government. The average cost per ton of LNG was Won 556,564, Won 724,682 and Won 1,552,647, in 2020, 2021 and 2022, respectively. Korea Gas Corporation implemented a new individual tariffs formula, whereby the domestic power plants can negotiate lower prices directly with Korea Gas Corporation. The new formula applies to domestic power plants whose current contracts with Korea Gas Corporation expire after January 2022 and also to new power plants commencing operations from January 2022. Meanwhile, KOMIPO procures LNG directly through a contract with a brokerage firm, in addition to the amount supplied by Korea Gas Corporation. In 2022, the total amount of KOMIPO’s direct LNG procurement was 0.7 million tons, with 52.4%, 19.4%, 10.0%, 9.5%, and 8.7% of the total imported from Malaysia, United States, Australia, Russia, and other countries, respectively.

Hydroelectric

Hydroelectric power generation, including pumped storage, accounted for 1.1%, 1.2% and 1.2%, of the fuel requirements for electricity generation by us and our generation subsidiaries in terms of electricity generated in 2020, 2021 and 2022, respectively. The availability of water for hydroelectric power depends on rainfall and competing uses for available water supplies, including residential, commercial, industrial and agricultural consumption. Pumped storage enables us to increase the available supply of water for use during periods of peak electricity demand.

Sales and Customers

Our sales depend principally on the level of demand for electricity in Korea and the rates we charge for the electricity we sell to the end-users.

Demand for electricity in Korea grew at a compounded average rate of 1.0% per annum for the five years ended December 31, 2022. According to the Bank of Korea, the compounded growth rate for GDP was approximately 2.0% per annum for the same period. The GDP growth rate was approximately -1.0%, 4.0% and 2.6%, during 2020, 2021 and 2022, respectively.

The table below sets forth, for the periods indicated, the annual rate of growth in Korea’s GDP and the annual rate of growth in electricity demand (measured by total annual electricity consumption) on a year-on-year basis.


	2018			2019			2020			2021			2022
Growth in GDP		2.7	%		2.0	%		(1.0	)%		4.0	%		2.6	%
Growth in electricity consumption		3.6	%		(1.1	)%		(2.2	)%		4.7	%		2.7	%

Electricity demand in Korea varies within each year for a variety of reasons other than the general growth in GDP demand. Electricity demand tends to be higher during daylight hours due to heightened commercial and industrial activities and electronic appliance use. Due to the use of air conditioning during the summer and heating during the winter, electricity demand is higher during these two seasons than the spring or the fall. Variation in weather conditions may also cause significant variation in electricity demand.

We do not use any marketing channels, including any special sales methods, to sell electricity to our customers, other than to install electricity meters on-site and take monthly readings of such meters, based upon which invoices are sent to our customers.

Demand by the Type of Usage

The table below sets forth consumption of electric power, and growth of such consumption on a year-on-year basis, by the type of usage (in gigawatt hours) for the periods indicated.


	2018 (GWh)		YoY growth (%)			2019 (GWh)		YoY growth (%)			2020 (GWh)		YoY growth (%)			2021 (GWh)		YoY growth (%)			2022 (GWh)		YoY growth (%)			% of Total 2022
Residential		72,895		6.3			72,639		(0.4	)		76,303		5.0			79,915		4.7			80,996		1.4			14.8
Commercial		116,934		5.1			116,227		(0.6	)		113,639		(2.2	)		119,550		5.2			127,193		6.4			23.2
Educational		8,678		4.3			8,561		(1.4	)		7,515		(12.2	)		8,423		12.1			9,074		7.7			1.7
Industrial		292,999		2.5			289,240		(1.3	)		278,660		(3.7	)		291,333		4.5			296,036		1.6			54.0
Agricultural		18,504		7.3			18,882		2.0			19,029		0.8			20,603		8.3			21,420		4.0			3.9
Street lighting		3,582		0.7			3,571		(0.3	)		3,507		(1.8	)		3,445		(1.8	)		3,424		(0.6	)		0.6
Overnight Power		12,557		(2.0	)		11,379		(9.4	)		10,616		(6.7	)		10,162		(4.3	)		9,790		(3.7	)		1.8

Total		526,149		3.6			520,499		(1.1	)		509,270		(2.2	)		533,431		4.7			547,933		2.7			100.0

The industrial sector represents the largest segment of electricity consumption in Korea. Demand for electricity from the industrial sector was 296,036 gigawatt hours in 2022, representing a 1.6% increase from 2021, largely due to increases in export and industrial demand. Demand for electricity from the commercial sector depends largely on the level and scope of commercial activities in Korea. Demand for electricity from the commercial sector increased to 127,193 gigawatt hours in 2022, representing a 6.4% increase from 2021, largely due to the effect of easing of COVID-19 quarantine measures on the growth of private consumption in the hotel and restaurant industries. Demand for electricity from the residential sector is largely dependent on population growth and use of heaters, air conditioners and other electronic appliances. Demand for electricity from the residential sector increased to 80,996 gigawatt hours in 2022, representing a modest 1.4% increase compared to 2021, largely due to the fact that the demand has already gone up significantly during the COVID-19 period in 2020 and 2021.

Demand Management

Our ability to provide adequate supply of electricity is principally measured by the facility reserve margin and the supply reserve margin. The facility reserve margin represents the difference between the peak usage during a year and the installed capacity at the time of such peak usage, expressed as a percentage of such peak

usage. The supply reserve margin represents the difference between the peak usage in a year and the available capacity at the time of such peak usage, expressed as a percentage of such peak usage. The following table sets forth our facility reserve margin and supply reserve margin for the periods indicated.


	2018			2019			2020			2021			2022
Facility reserve margin		26.7	%		36.2	%		43.5	%		44.1	%		46.0	%
Supply reserve margin		7.7	%		6.7	%		9.9	%		10.5	%		11.8	%

Additionally, we were designated as one of the pilot business operators of an EERS (Energy Efficiency Resources Standard) in 2018 by the Ministry of Trade, Industry and Energy in accordance with the regulation promulgated by it under delegation of the Energy Use Rationalization Act. The EERS sets the energy saving targets to be sought by the energy suppliers in proportion to their energy sales in order for them to promote the development of energy-efficient technologies and practices, and we are required to save energy by 0.2% of our annual electric power sales during the period from 2019 to 2023 and 1% of our annual electric power sales by 2031 under the EERS. The pilot business of the EERS is scheduled to end in 2023, and the EERS is expected to be converted into the actual business in 2024 after amendment to the Energy Use Rationalization Act in 2023.

Electricity Rates

The Electric Utility Act and the Price Stabilization Act of 1975, each as amended from time to time, prescribe the procedures for the approval and establishment of rates charged for the electricity we sell. We submit our proposals for revisions of rates or changes in the rate structure to the Ministry of Trade, Industry and Energy. The Ministry of Trade, Industry and Energy then reviews these proposals and, following consultation with the Ministry of Economy and Finance and review by the Korea Electricity Commission, makes the final decision.

Under the Electric Utility Act and the Price Stabilization Act, electricity rates are established at the same level as the total comprehensive cost (the “Total Comprehensive Cost”) that would enable us to recover our fair operating costs as well as receive a fair investment return on capital used in our operations. The fair operating costs are defined as the sum of our operating expenses attributable to our electricity supply, our adjusted income taxes and some of non-operational profit or loss.

The fair investment return on capital used in our operations represents an amount equal to the rate base multiplied by the rate of return.

The rate base is currently equal to the sum of:

•

net utility plant in service (which is equal to utility plant minus accumulated depreciation minus revaluation reserve);

•

the portion of working capital which is equal to the appropriate level of operating costs minus depreciation and other non-cash charges while taking into account the actual time of cost recovery; and

•

the portion of construction-in-progress which is charged from our retained earnings.

The amounts used for the variables in the rates are those projected by us for the periods to be covered by the rate approval.

For the purpose of determining the fair rate of return, the rate base is divided into two components in proportion to our total equity and our total debt. The rate of return permitted in relation to the debt component of the rate base is set at a level designed to approximate the weighted average interest cost on all types of borrowing for the periods covered by the rate approval. The rate of return permitted in relation to the equity component of the rate base is set by applying the capital asset pricing model which takes account of the risk-free rate, the return

on the Korea Stock Price Index, KOSPI, and the correlation of the stock price of our company with KOSPI. In 2021, the approved rate of return on the debt component of the rate base was 0.94% while the approved rate of return on the equity component of the rate base was 3.12%. As a result of such approved rates of returns, the fair rate of return in 2021 was determined to be 4.06%. The fair rate of return for 2022 has not yet been determined.

The Electric Utility Act and the Price Stabilization Act do not specify a basis for determining the reasonableness of our operating expenses or any other items (other than the level of the fair investment return) for the purposes of the rate calculation. However, the Government exercises substantial control over our budgeting and other financial and operating decisions.

In addition to the calculations described above, a variety of other factors are considered in setting overall tariff levels. These other factors include consumer welfare, our projected capital requirements, the effect of electricity tariff on inflation in Korea and the effect of tariff on demand for electricity.

From time to time, our actual rate of return on invested capital may differ significantly from the fair rate of return on invested capital assumed for the purposes of electricity tariff approvals, for reasons, among others, related to movements in fuel prices, exchange rates and demand for electricity that differ from what is assumed for determining our fair rate of return. For example, between 1987 and 1990, the actual rate of return was above the fair rate of return due to declining fuel costs and rising demand for electricity at a rate not anticipated for purposes of determining our fair rate of return. Similarly, depreciation of the Won against the U.S. dollar accounted for our actual rates of return being lower than the fair rate of return for the period from 1996 to 2000. For the period between 2006 and 2013, our actual rates of return were lower than the fair rate of return largely due to a general increase in fuel costs and additional facility investment costs incurred, the effects of which were not offset by timely increases in our tariff rates. Between 2014 and 2016, however, largely due to a decrease in fuel costs reflective of the drop in oil prices, our actual rate of return has surpassed the fair rate of return; however, substantially all of the resulting excess has been used to fund capital expenditure and repair and maintenance, and make investments in renewable energy and other environmental programs.

Partly in response to the variance between our actual rates of return and the fair rates of return, the Government from time to time increases the electricity tariff rates, but there typically is a significant time lag for the tariff increases as such increases requires a series of deliberation processes and administrative procedures and the Government also has to consider other policy considerations, such as the inflationary effect of overall tariff increases and the efficiency of energy use from sector-specific tariff increases.

As of January 1, 2021, we implemented a new tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers, among other changes. The new tariff system consists of three main changes.

First, we implemented a new cost pass-through tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers and to enhance transparency by separately billing fuel costs and climate/environment related costs. Previously, the electricity tariff consisted of two main components: (i) the base charge (the “Base Charge”) and (ii) the usage charge (the “Usage Charge”) based on the amount of electricity consumed by end-users. Under the new tariff system, there are new components to the tariff called the fuel cost adjusted charge (the “Fuel Cost Adjusted Charge”) and the climate/environment related charge (the “Climate/Environment Related Charge”). In principle, the Fuel Cost Adjusted Charge is calculated on a quarterly basis and the formula for calculating the amount of the Fuel Cost Adjusted Charge is multiplying (i) the unit price of the Fuel Cost Adjusted Charge (the “Unit Price of the Fuel Cost Adjusted Charge”), which is the difference between a base fuel cost (the “Base Fuel Cost”) and an actual fuel cost (the “Actual Fuel Cost”) and (ii) the amount of electricity consumed. The Base Fuel Cost is the past twelve-month average fuel price of bituminous coal, LNG and Bunker C oil as posted by the Korea Customs Service. The twelve-month average fuel price is measured by taking the average of monthly fuel prices from twelve months in between thirteen and one

month prior to the time a new Base Fuel Cost becomes effective. To illustrate, the Base Fuel Cost effective from 2023 is the average of the fuel prices from December 2021 to November 2022. The Base Fuel Cost can be adjusted upon the revision of the electricity tariff as a whole. On the other hand, the Actual Fuel Cost is the past three-month average fuel price of the same fuels we use to measure the Base Fuel Cost. The past three-month average fuel price is measured by taking the average of monthly fuel prices from three months in between four and one month prior to the time the Fuel Cost Adjusted Charge is updated. To illustrate, for the first quarter of 2023, we used the fuel costs for September, October and November 2022 to calculate the three-month average fuel price.

However, our ability to pass on fuel and other cost increases to our customers may be limited due to the regulation of the Government on the rates we charge for the electricity we sell to our customers. In addition to the built-in limits described in the preceding paragraph, the new tariff system gives discretion to the Government to not wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, as determined by the Government. For example, in the second and third quarter of 2021, although the Unit Price of the Fuel Cost Adjusted Charge was Won –0.2 and Won 0.0 per kilowatt-hour respectively, the Government notified us to keep it at the same Won –3.0 per kilowatt-hour as the first quarter of 2021. In the fourth quarter of 2021, we increased the Unit Price of the Fuel Cost Adjusted Charge from Won –3.0 to Won 0.0 per kilowatt-hour. In the first and second quarters of 2022, although the Unit Price of the Fuel Cost Adjusted Charge as calculated should have been Won 3.0 per kilowatt-hour as the quarterly limit of Won ±3 per kilowatt-hour had existed back then, the Government notified us to keep it at the same Won 0.0 per kilowatt-hour as the fourth quarter of 2021. The Government cited different policy reasons for withholding the application of the quarterly Fuel Cost Adjusted Charge in the past but one of the more consistent reasons has been alleviating the hardship caused by the prolonged economic effects of COVID-19 pandemic. As the quarterly limit of Won ±3 per kilowatt-hour was repealed in the third quarter of 2022 and with the approval by the Government, we ultimately increased the Unit Price of the Fuel Cost Adjusted Charge to Won 5.0 per kilowatt-hour in the third quarter of 2022, which was the maximum amount allowed in 2022 under the Won ±5 per kilowatt-hour limit. From then to the second quarter of 2023, the Unit Price of the Fuel Cost Adjusted Charge has been kept at Won 5.0 per kilowatt-hour.

Due to the likelihood of the Actual Fuel Cost being substantially over the built-in limits of the new tariff system and the Government’s discretion not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, there may be certain portions of the fuel costs that cannot be charged to our customers, even though those portions should have been included in the Fuel Cost Adjusted Charge. In such cases, we may accumulate such portions and reflect them in the Total Comprehensive Cost, which we use to calculate the Base Charge and the Usage Charge of the tariff. The Base Charge and the Usage Charge that are derived from the Total Comprehensive Cost need to be approved by the Government before they can be revised. The Government may, from time to time, consider different policy objectives to regulate the time and magnitude of such revision of the Base Charge and the Usage Charge of the electricity tariff. Therefore, changes in the fuel costs may not be timely or fully reflected even through the Usage Charge of the tariff where they would typically be reflected. Recently, to reflect the rise in the Base Fuel Cost, the Usage Charge needed to increase by Won 9.8 per kilowatt-hour from January 2022. With the approval by the Government, we increased the Usage Charge by Won 4.9 per kilowatt-hour on April 1, 2022 and October 1, 2022 respectively, which resulted in a total increase of Won 9.8 per kilowatt-hour. Such increases were spread out into two rounds to relieve people’s hardship including the prolonged effects of COVID-19 pandemic. In addition, in October 2022, we increased the Usage Charge of the tariff by Won 7.0 to Won 11.7 per kilowatt-hour on industrial and commercial consumers and by Won 2.5 per kilowatt-hour on all other consumers, reflecting additional accumulated fuel cost rises. In January 2023, with the approval by the Government, we increased the Usage Charge by Won 11.4 per kilowatt-hour to reflect a portion of the increase in the Base Fuel Cost. The Government announced in its economic policy direction statement for 2023 that it will work towards normalizing the tariff in stages so that our cumulative deficit is resolved by 2026. However, there is no assurance on whether such announcement will be realized or how long it will take to be realized.

Also, the new tariff system introduced an additional component to the tariff called a climate/environment related charge (the “Climate/Environment Related Charge”). Previously, our climate and environment costs were embedded in the Usage Charge component of the tariff and our consumers could not discern the exact magnitude of such costs. By separating it out as an independent component, we intend to provide more information and transparency to our customers while having the flexibility to adjust it in alignment with the underlying costs. The Climate/Environment Related Charge for the coming year is calculated by multiplying (i) our total estimated costs of complying with the Renewable Portfolio Standard program, the Greenhouse Gas Emission Trading System and the coal-fired generation reduction program for the current year, and then dividing it by the electricity sales projected for the coming year (the “Climate/Environment Related Base Rate”), and (ii) the amount of electricity consumed. The value of the Climate/Environment Related Base Rate for 2022 was Won 7.3 per kilowatt-hour. In accordance with the tariff increase plan we announced in December 2022, we further reflected increased environmental costs in 2023 to raise the Climate/Environment Related Base Rate by Won 1.7 to Won 9.0 per kilowatt-hour. The Climate/Environment Related Charge is planned to be adjusted every year by reflecting the change in climate and environment-related costs but the Government may change the date of adjustment in consideration of different policy objectives. If there are discrepancies between our costs and the Climate/Environment Related Charge, we may accumulate such discrepancies and reflect them in our Total Comprehensive Cost. However, the electricity rate based on the Total Comprehensive Cost needs to be approved by the Government to be revised.

Second, the new tariff system amended the residential electricity rate system starting in July 2021. Under the old system, households that use less than 200 kilowatt-hours of electricity received a discount on their tariffs. The new system redirected this benefit by phasing out the discount to 50% in July 2021 and terminating it in July 2022. Instead, the new tariff system allows households to choose a new schedule of residential tariff starting from September 2021, which is an option we have already been providing to our industrial and commercial customers. The new schedule is called a seasonal and hourly tariff and it allows residents to be charged under a monthly Base Charge plus increments depending on time, day and season. Each household may also choose to stay under the current tariff schedule which in contrast is a progressive schedule with seasonal adjustments. Our plan is to provide this option to households in Jeju Province in Korea first as many of these households are equipped with the Advanced Metering Infrastructure (“AMI”) and review rolling it out to the rest of the country depending on the penetration rate of the AMI in each region.

Third, the new tariff system ended certain special discounts we previously provided to our customers. The first of two such discounts was for customers who installed energy storage system (“ESS”). The benefits included tariff discounts of three times the Base Charge and 50% of the Usage Charge. Starting in January 2021, we rolled back the discount for ESS by decreasing it from three times the Base Charge to one times the Base Charge and discontinuing the 50% discount on the Usage Charge. The discount of one times the Base Charge is planned to also phase out in March 2026 as we originally intended. In addition, we intend to designate a three-hour time period during peak time and induce electricity discharge of the ESS during that period by giving more discount to the customers who made such discharge so they will increase supply during peak time. The second of the two discounts being rolled back is a 50% discount for customers who installed a renewable energy generator for their own industrial and general uses. We discontinued this discount in 2020 while only maintaining it for customers who are unable to sell their electricity in the market because of their small generation capacities (less than 10 kilowatts). The discount for such customers is planned to be discontinued by 2023.

Lastly, the new tariff system included a plan to minimize the public burden of tariff increase by reducing power supply cost of us and our generation subsidiaries through cost reduction measures. To this end, it was contemplated that an annual increase limit of 3% on certain electricity supply costs including labor costs and selling, general and administrative expenses would be set and an increase in excess of the 3% limit would not be reflected in the tariff. However, if the annual increase limit of 3% on electricity supply costs is implemented, it could have an adverse effect on our business, financial condition and results of operations.

The tariff rates we charge for electricity vary among the different classes of consumers, which principally consist of industrial, commercial, residential, educational and agricultural consumers. The tariff also varies depending upon the voltage used, the season, the time of usage, the rate option selected by the user and, in the residential sector, the amount of electricity used per household, as well as other factors. For example, we adjust for seasonal tariff variations by applying higher rates when demand tends to rise such as during the months of June, July and August (when the demand tends to rise due to increased use of air conditioning) and November, December, January and February (when demand tends to rise due to increased use of heating), which reflects the policy of the Korean government to cope with the rise in electricity demand during peak seasons by encouraging a more efficient use of electricity by customers. In addition, we provide discounts on tariff rates to certain users such as low income households.

Our current tariff schedule reflecting the adjustments outlined above and effective from January 1, 2023 is summarized below by the type of usage:

•

Industrial. The monthly Base Charge varies from Won 5,550 per kilowatt to Won 9,810 per kilowatt depending on the type of contract, the voltage used and the rate option. The energy Usage Charge varies from Won 71.5 per kilowatt-hour to Won 221.4 per kilowatt-hour depending on the type of contract, the voltage used, the season, the time of day and the rate option.

•

Commercial. The monthly Base Charge varies from Won 6,160 per kilowatt to Won 9,810 per kilowatt depending on the type of contract, the voltage used and the rate option. The energy Usage Charge varies from Won 75.5 per kilowatt-hour to Won 221.4 per kilowatt-hour depending on the type of contract, the voltage used, the season, the time of day and the rate option.

•

Residential. The monthly Base Charge varies from Won 730 for electricity usage of less than 200 kilowatt-hours to Won 7,300 for electricity usage in excess of 400 kilowatt-hours. During the months of July and August each year, the usage ceiling for the first two tiers of rates is increased from 200 kilowatts to 300 kilowatts for the first tier and from 400 kilowatts to 450 kilowatts for the second tier. Residential tariff also includes an energy Usage Charge ranging from Won 97.0 to Won 299.3 per kilowatt-hour for electricity usage depending on the amount of usage and voltage. During the peak usage periods during summer and winter, namely the months of July and August and December to February, a higher energy Usage Charge of Won 728.2 per kilowatt-hour applies to residential consumers whose monthly electricity consumption exceeds 1,000 kilowatts hour. In accordance with

the new tariff system, residents may also opt for our new seasonal and hourly tariff schedule as an alternative. Under the new schedule, the monthly Base Charge is Won 4,310 per kilowatt. The Usage Charge varies from Won 117.8 per kilowatt-hour to Won 212.5 per kilowatt-hour depending on season and time of the day.

•

Educational. The monthly Base Charge varies from Won 5,230 per kilowatt to Won 6,980 per kilowatt depending on the voltage used and the rate option. The energy Usage Charge varies from Won 62.5 per kilowatt-hour to Won 179.1 per kilowatt-hour depending on the voltage used, the season and the rate option.

•

Agricultural. The monthly Base Charge varies from Won 360 per kilowatt to Won 1,210 per kilowatt depending on the type of usage. The energy Usage Charge varies from Won 32.7 per kilowatt-hour to Won 53.0 per kilowatt-hour depending on the type of contract, the voltage used and the season.

•

Street-lighting. The monthly Base Charge is Won 6,290 per kilowatt and the energy Usage Charge is Won 104.6 per kilowatt-hour. For electricity capacity of less than 1 kilowatt or for places where the installation of the electricity meter is difficult, a fixed rate of Won 44.3 per watt applies, with the minimum monthly charge of Won 1,220.

In 2001, as part of implementing the Restructuring Plan, the Ministry of Trade, Industry and Energy established the Electric Power Industry Basis Fund to enable the Government to take over certain public services previously performed by us. In 2022, 3.7% of the tariff we collected from our customers was transferred to this fund prior to recognizing our sales revenue.

Power Development Strategy

We and our generation subsidiaries make plans for expanding or upgrading our generation capacity based on the Basic Plan, which is generally revised and announced every two years by the Government. In January 2023, the Government announced the Tenth Basic Plan which is effective for the period from 2023 to 2036. The Tenth Basic Plan focuses on (i) establishing practical and balanced mixture of power sources and (ii) optimizing nuclear power sources while minimizing coal-fired power sources and developing eco-friendly power sources. The Tenth Basic Plan includes the following specific measures: (i) construction of nuclear power plants Shin-Hanul #3 and 4 would resume and operation of ten other nuclear generation units including Kori #2 may continue beyond their original retirement dates in or before 2030 subject to KHNP’s intention and only upon the NSSC’s approval following a satisfactory safety evaluation; as a result, nuclear generation capacities will increase from 26.1 gigawatts in 2023 to 31.7 gigawatts by 2036, (ii) 28 decrepit coal-fired power plants of which capacities are 14.1 gigawatts, will be retired and converted into using LNG instead, decreasing coal generation capacities from 40.2 gigawatts in 2023 to 27.1 gigawatts by 2036 and expanding LNG generation capacities from 43.5 gigawatts in 2023 to 64.6 gigawatts by 2036 as a consequence, (iii) domestic renewable energy generation capacity will be expanded from 32.8 gigawatts in 2023 to 108.3 gigawatts by 2036 with a practical forecasts, and (iv) carbon-free power sources such as hydrogen-LNG and ammonia-coal blended combustion will be utilized to achieve 2050 carbon neutrality. The introduction of such carbon-free power sources can minimize stranded assets i.e., assets that have become obsolete or non-performing, by recycling existing coal-fired power plants and system facilities connected thereto. Hydrogen and ammonia blended power generation is expected to reach 47.4 terawatt-hour in 2036, accounting for 7.1% of the total annual power generation.

such as commerce and transportation, and promoting a rational electricity tariff system to improve the national energy consumption efficiency by 38% and reduce the energy demand by 18.6% by 2040; (ii) converting to clean and safe energy through gradual reduction of nuclear power generation and decisive reduction of coal power generation by prohibiting construction of new coal-fired power plants and increasing the proportion of renewable energy sources to approximately 35% by 2040; (iii) expanding the power distribution in areas near those with demands for renewable energy and fuel cells and strengthening the roles and responsibilities of local governments; (iv) fostering the growth of the future energy industries (including renewable energy, hydrogen fuel and other efficient sources of energy linked to technology), promoting the value-add for traditional energy industries and maintaining a core energy ecosystem for nuclear power plants; and (v) improving the energy, gas and heat market systems to facilitate the national energy conversion and building platforms based on big data to foster creation of new energy industries.

The Ministry of Trade, Industry and Energy is currently preparing the Fourth Basic National Energy Plan to be announced in 2024. The Government inaugurated in May 2022 announced the draft direction of the new government’s energy policy in July 2022 that set the following five fundamental basis for the Fourth Basic National Energy Plan: first, redefining a feasible and rational energy mix; second, establishing strong resource and energy security; third, improving efficiency of energy demand and restructuring the energy market based on market principles; fourth, promoting the development and export of new energy businesses; and finally, strengthening energy welfare and the applicability of relevant policies. Through this policy direction, we hope to promote balanced development in nuclear power, renewable energy, and hydrogen energy nationwide, which will decrease the proportion of energy generated from fossil fuels.

We cannot assure that the Tenth Basic Plan, the Third and Fourth Basic National Energy Plan or the respective plans to be subsequently adopted will successfully achieve their intended goals, the foremost of which is to ensure, through carefully calibrated capacity expansion and other means, balanced overall electricity supply and demand in Korea at to end users while promoting efficiency and environmental friendliness in the consumption and production of electricity. If there is significant variance between the projected electricity supply and demand considered in planning our capacity expansions and the actual electricity supply and demand or if these plans otherwise fail to meet their intended goals or have other unintended consequences, this may result in inefficient use of our working capital, mispricing of electricity and undue financing costs on the part of us and our generation subsidiaries, among others, which may have a material adverse effect on our results of operations, financial condition and cash flows.

Capital Investment Program

The table below sets forth, for each of the years ended December 31, 2020, 2021 and 2022, the amounts of capital expenditures for the construction of generation, transmission and distribution facilities.


2020		2021		2022
(In billions of Won)
W	15,485	W	13,964	W	13,886

The table below sets forth the currently estimated installed capacity for new or expanded generation units to be completed by our generation subsidiaries in each year from 2023 to 2026 based on the Tenth Basic Plan, as amended.


Year	Number of Units	Type of Units	Total Installed Capacity
			(Megawatts)
2023	1	Nuclear power		1,400
	1	LNG-combined		495
	27	Renewables		300


Year	Number of Units	Type of Units	Total Installed Capacity
			(Megawatts)
2024	1	Nuclear power		1,400
	1	LNG-combined		597
	2	Renewables		102
2025	1	Nuclear power		1,400
	2	LNG-combined		1,062
	1	Renewables		22
2026	6	LNG-combined		3,681
	To be determined	Renewables		To be determined

As part of our capital investment program, we also intend to add new transmission lines and substations, continue to replace overhead lines with underground cables and improve the existing transmission and distribution systems.

The actual number and capacity of generation units and transmission and distribution facilities we construct and the timing of such construction are subject to change depending upon a variety of factors, including, among others, changes in the Basic Plan, demand growth projections, availability and cost of financing, changes in fuel prices and availability of fuel, ability to acquire necessary plant sites, environmental considerations and community opposition.

The table below sets forth, for the period from 2023 to 2025, the budgeted amounts of capital expenditures pursuant to our capital investment program, which primarily consist of budgets for the construction of generation, transmission and distribution facilities and, to a lesser extent, renewable energy generation and new energy industry projects. The budgeted amounts may vary from the actual amounts of capital expenditures for a variety of reasons, including, among others, the implementation of the Tenth Basic Plan currently in place, changes in the number of units to be constructed, the actual timing of such construction, changes in rates of exchange between the Won and foreign currencies and changes in interest rates.


	2023		2024		2025		Total
	(in billions of Won)
Generation⁽¹⁾:
Nuclear	W	4,280	W	3,763	W	3,994	W	12,038
Thermal		3,386		3,876		4,786		12,048
Renewables and others		1,014		557		655		2,225

Sub-total		8,680		8,196		9,435		26,311

Transmission and Distribution:
Transmission		3,301		3,129		3,491		9,922
Distribution		3,649		3,629		3,515		10,792

Sub-total		6,950		6,758		7,006		20,714

Others⁽²⁾		1,297		1,352		1,467		4,116

Total	W	16,927	W	16,306	W	17,908	W	51,141

Notes:

(1)	The budgeted amounts for our generation facilities are based on the Ninth Basic Plan, as amended.

(2)	Principally consists of investments in telecommunications and new energy industry projects, among others.

these funds is to invest in substantially all frontiers of the new energy industry, including renewable energy, energy storage systems, electric vehicles, small-sized self-sustaining electricity generation grids known as “micro-grids”, among others, as well as invest in start-up companies, ventures, small- to medium-sized enterprise and project businesses that engage in these businesses but have not previously attracted sufficient capital from the private sector.

Furthermore, as a measure to address the high level of particulate matter pollution, in October 2018, the Government introduced a pilot regulation to lower the output of 35 coal-fired generation units to approximately 80% of their capacity that emit more than a certain amount of particulate matter. The regulation was formally implemented in January 2019, targeting 40 coal-fired power plants with high emissions of particulate matter. From March to June 2019, the scope expanded to cover 60 units in total. In addition, coal-fired generation units originally scheduled for preventive maintenance during the second half of 2019 were required to undertake such maintenance earlier in the spring of 2019. In November 2019, the Government pursued a reduction of coal-fired generation units in order to implement the Special Measures to Respond to the High Concentration Period (December to March) of Particulate Matter. We plan to continue to participate in the effort to reduce the particulate matter emissions from coal-fired generation units, not only during the winter but also during the spring. For example, from December 2022 to March 2023, up to 9 coal-fired generation units were shut down, with a maximum of 36 coal-fired generation units subject to a cap of 80% on the output within the remaining reserve capacity range. Additionally, the Government adjusted the schedule to close down two decrepit coal-fired generation units (Boryeong #1 and #2), which were shut down in December 2020. Also, other coal-fired generation units, Samcheonpo #1 and #2, were shut down in May 2021 and Honam #1 and #2 units in December 2021. According to the Tenth Basic Plan announced in December 2022, the total coal-fired power plant capacity in 2036 will decrease to 27.1 gigawatts from 40.2 gigawatts in 2023, and its percentage of total power generation capacity will decrease to 11.3% in 2036 from 27.1% in 2023. While such measures may be subject to change, we expect to incur significant costs of complying with such measures, including in connection with more stringent particulate matter pollution regulations, retrofitting and overall replacement of environmental facilities.

We have financed, and plan to finance in the future, our capital investment programs primarily through net cash provided by our operating activities and financing in the form of debt securities and loans from domestic financial institutions, and to a lesser extent, borrowings from overseas financial institutions. In addition, in order to prepare for potential liquidity shortage, we maintain several credit facilities with financial institutions in the aggregate amounts of Won 7,184 billion and US$1,385 million on a consolidated basis, the full amount of which was available as of December 31, 2022. We, KHNP, KOMIPO and KOWEPO also maintain global medium-term note programs in the aggregate amount of US$21 billion, of which approximately US$13 billion remains currently available for future drawdown. See also Item 5.B. “Liquidity and Capital Resources—Capital Resources.”

Environmental, Social and Governance Programs

With the ESG Promotion Strategy established in 2022, we set the direction and strategic goals to advance the sectoral strategies in each of environment, social, governance to reflect environmental changes and strengthen infrastructure for the achievement of the strategies. To reach the ESG vision and strategic goals, we have identified strategic tasks for each sector of environment, social, governance and will continue to work on them in the future.

Environmental Programs

The Environmental Policy Basic Act, the Air Quality Preservation Act, the Water Quality Preservation Act, the Marine Pollution Prevention Act and the Waste Management Act, collectively referred in this annual report as the Environmental Acts, are the major laws of Korea that regulate atmospheric emissions, waste water, noise and other emissions from our facilities, including power generators and transmission and distribution units. Our existing facilities are currently in material compliance with the requirements of these environmental laws and international agreements, such as the United Nations Framework Convention on Climate Change, the Montreal

Protocol on Substances that Deplete the Ozone Layer, the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal. Additionally, we are endeavoring to develop and implement greenhouse gas reduction strategy in line with the new climate regime set forth by the Paris Climate Agreement.

We continuously endeavor to contribute to sustainable growth (whether as an economy, a society or an ecosystem) by actively taking actions that befit our social responsibility as a corporate citizen in the energy industry. For example, in 2005, we became the first public company in Korea to join the United Nations Global Compact, an international voluntary initiative designed to hold a forum for corporations, United Nations agencies, labor and civic groups to promote reforms in economic, environmental and social policies. As part of our involvement with such initiative, we issue an annual report named the “Sustainability Report” to disclose our activities from the perspectives of economy, environment and society, in accordance with the reporting guidelines of the Global Reporting Initiative, the official collaborating center of the United Nations Environment Program that works in cooperation with United Nations Secretary General. We recognize the interest in ESG within the investors’ community and are continuously pursuing safe and clean energy supply and distribution by reducing greenhouse gas emissions and enhancing our ability to respond to climate change, the details of such efforts provided through periodic sustainability reports. In addition, from 2020, we made detailed disclosures on our sustainability reports in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and the standards of the Sustainability Accounting Standards Board (SASB) regarding our activities in response to the global climate crisis and our efforts to transition into safe and clean energy sources. In 2022, we published an integrated report on the domestic and international sustainable management performance of us and our six generation subsidiaries.

In recognition of our efforts and achievements to reduce greenhouse gas emissions in response to global climate change, in May 2013, we obtained the Carbon Trust Standard certification issued by Carbon Trust, a British nonprofit organization with the goal of establishing a sustainable, low carbon economy. In 2015, we obtained recertification from Carbon Trust by satisfying even more rigorous evaluation criteria. We are also a participant of the Carbon Disclosure Project, an international organization that promotes transparency in informational disclosure of carbon management process, and from 2016 to 2021, we were recognized by the Carbon Disclosure Project and received honors in energy and utility sector. In 2022, pursuant to the Dow Jones Sustainability Indices, which measures management performance in terms of contribution to sustainability, we were selected as one of the notable companies in the Asia Pacific in the global electricity utility sector for nine years in a row from 2014.

In October 2020, we made a statement that we intend to focus on low-carbon and eco-friendly overseas projects, such as new renewable energy and combined gas power generation, and not pursue new projects in coal-fired power plants. For those overseas coal-fired power plant projects we are already engaged in, we intend to sell assets in multiple stages by analyzing the conditions of the sale, including the valuation of projects, identification of potential buyers, consultation with stakeholders and prioritization of better deals. We also aim to carry out our combined gas power generation projects only along with new technologies, such as ammonia or hydrogen blended combustion, carbon capture, utilization and storage (CCUS) etc. which are suitable to reduce carbon emissions. In the long run, we aim to achieve carbon neutrality through reorganization of our business portfolio to focus on decarbonization, renewable energy, and new businesses.

We established an Environment, Social and Governance (“ESG”) Committee in our board of directors in December 2020 to reinforce ESG-based management system and to ensure continuous performance in this area. Our ESG Committee is charged with resolving major management issues related to ESG, establishing ESG management strategies and business plans and checking on the overall direction of sustainable management. In addition to the ESG committee, we established an advisory subcommittee within our ESG Committee. The subcommittee coordinates closely with the ESG Committee to strategically address more complicated and diverse ESG issues we are facing. All of our generation subsidiaries also established ESG Committee composed mainly of non-standing directors.

We and our generation subsidiaries declared the carbon-neutrality vision called “ZERO for Green” in November 2021. The slogans for the vision include (i) “Zero Emission” of carbon in the power generation sector through bold transition to carbon-free power sources such as renewable energy and hydrogen; (ii) “Reliable Energy” to ensure stable supply to clean electricity to consumers through preemptive measures and optimal operation of the power grid; and (iii) “On Time” to secure core technology for carbon neutrality in a timely manner by dramatically expanding research and development investment. Also, in December 2021, we and our generation subsidiaries established the Carbon Neutrality Promotion Committee composed of our management and external experts to establish Company-wide strategies for carbon neutrality and to strengthen internal and external communication.

To achieve carbon neutrality by 2050 as announced by the Government, the Transformation sector (electricity and heating), which includes us and accounts for 37.1% of total national greenhouse gas emissions, needs to play a leading role. The Transformation sector, in particular, needs to not only increase the proportion of renewable energy such as wind and solar power, but also support carbon reduction in other sectors such as industry, transportation, and buildings by electrifying energy consumption. As we are on the top of the value chain for the power industry as a whole, we established our role and strategy to achieve carbon-neutrality. We plan to accelerate the timely connection of planned nuclear power plants, expand renewable energy through proactive system development, lead the development of core carbon-neutral technologies, and contribute to the achievement of a carbon-neutrality in the Transformation sector by improving energy efficiency.

Furthermore, we and our generation subsidiaries issued green bonds in 2020, 2021 and 2022, total issuance with the principal amount of US$800 million, US$750 million, and US$2,400 million respectively, to expand domestic and overseas renewable energy businesses and renewable energy related facilities.

The table below sets forth the number of emission control equipment installed at thermal power plants by our generation subsidiaries as of December 31, 2022.


	KOSEP		KOMIPO		KOWEPO		KOSPO		EWP
Flue Gas Desulfurization System		14		13		11		12		13
Selective Non-catalytic Reduction System		1		—		1		—		5
Selective Catalytic Reduction System		24		25		21		36		27
Electrostatic Precipitation System		16		15		10		14		15
Low NO2 Combustion System		22		402		27		34		25

Total		77		455		70		96		85

In accordance with the Act on Allocation and Trading of Greenhouse Gas Emission Allowances, enacted in March 2013, the Government implemented a greenhouse gas emission trading system under which the Government will allocate the amount of permitted greenhouse gas emission to companies by industry and a company whose business emits more carbon than the permitted amount is required to purchase the right to emit more carbon through the Korea Exchange. The categories of allowances traded include the Korean Allowance Unit (KAU), which is the emissions allowance allocated to applicable companies by the Government; Korean Credit Unit (KCU), which is a tradable unit converted from external carbon offset certifications including the Korean Offset Credit; and Korean Offset Credit (KOC), which is the verified carbon offset credit obtained by companies for reducing carbon emissions through absorption or otherwise. The greenhouse gas emission trading system is expected to be implemented in three stages. During the first phase (2015 to 2017), the Government set up and conducted a test run of the trading system to ensure its smooth operation, allocating the greenhouse gas emission allowances free of charge. In July 2018, the Government released the allocation plan for the second phase (2018 to 2020), during which 97% of the greenhouse gas emission allowances were allocated free of charge, with 3% allocated through an auction. During the third phase (2021 to 2025), the Government expanded the scale of the system with aggressive greenhouse gas emission reduction targets and allocating 10% of the greenhouse gas emission allowances through an auction. In November 2022, the Government announced the plan

to improve the greenhouse gas emission trading system, including pre-submission of allowances by the end of each year, which was originally submitted by June of the next year.

In connection with the Climate Change Response Initiatives and the 2030 National Greenhouse Gas Reduction Roadmap announced by the Government in December 2016, the Government subsequently announced the Long-term Low Greenhouse Gas Emission Development Strategies, which presents a long-term vision and national strategy for achieving carbon neutrality in 2050, and the Nationally Determined Contributions (“NDC”), which sets forth the greenhouse gas reduction targets by 2030. According to the Enforcement Decree of Framework Act on Carbon Neutrality and Green Growth to Cope with Climate Crisis established in March 2022 and the latest figures of NDC announced by the Government in October 2021, the national target level in 2030 was 436.6 million tons and represents 40% reduction as compared to 2018 and the target emission level for the Transformation sector (electricity and heating) as a whole which we are the part of was 149.9 million tons and represents 44.4% reduction as compared to 2018. In October 2021, with an official commitment of the Government to strive to achieve Korea’s carbon neutrality in 2050, the carbon neutrality committee set up by the Government also deliberated and proposed two 2050 carbon neutrality scenarios, all of which aim to achieve net-zero domestic carbon dioxide emissions by 2050. Scenario A will completely suspend thermal power generation, while scenario B will actively utilize technologies such as carbon capture, utilization and storage (CCUS) while allowing some thermal power generation to continue. Following the National Basic Plan for Carbon Neutrality & Green Growth enacted in April 2023, the Government has mandated annual sector-specific greenhouse gas reduction targets for the next 20 years from 2023 to 2042 and measures to achieve such targets to be formulated and implemented every five years. In terms of the NDC, the national target emission level remained unchanged but the latest target emission level in 2030 of Transformation sector increased to 145.9 million tons, which represents 45.9% compared to 2018 emission level.

Adhering to such emission and greenhouse gas reduction requirement may result in significant additional compliance costs. For example, the daily market price of the KAUs traded through the Korea Exchange was Won 8,640 per ton in early 2015, and the price has increased continuously thereafter, reaching its peak price at Won 42,500 per ton on April 2, 2020. Since then, the price has decreased and, as of March 31, 2023, the price has been formed around Won 14,650 per ton.

The table below sets forth the amount of annual emission from all generating facilities of our generation subsidiaries for the periods indicated. The amount of CO2 emissions is expected to decrease in the long-term, principally due to an increased use of LNG on account of the fact that 28 decrepit coal-fired power plants with total capacity of 14.1 gigawatts are scheduled to be retired and converted into LNG-fired power plants before the end of 2036, an increased use of renewable energy and the implementation of the greenhouse gas emission trading system.


Year⁽¹⁾	SOx (g/MWh)		NOx (g/MWh)		TSP⁽²⁾ (g/MWh)		CO₂ (kg/MWh)
2018		120		146		7		516
2019		92		118		6		494
2020		61		77		4		445
2021		57		68		4		437

Notes:

(1)	The amounts of annual SOx, NOx and TSP emission for 2020 and 2021 are expected to be determined once the national statistics are confirmed.

(2)	“TSP” means Total Suspended Particles.

For additional information, see Item 3.D. “Risk Factors—Risks Relating to KEPCO—We are subject to various environmental legislations, regulations and related Government initiatives, including in relation to climate change and carbon neutrality, which could cause significant compliance costs and operational liabilities.”

In order to comply with the current and expected environmental standards and address related legal and social concerns, we intend to continue to install additional equipment, make related capital expenditures and undertake several environment-friendly measures to foster community goodwill. For example, under the Persistent Organic Pollutants Management Act enacted in 2007, we are required to remove polychlorinated biphenyl, or PCB, a toxin, from the insulating oil of our transformers by 2025. In addition, when constructing certain large new transmission and distribution facilities, we assess and disclose their environmental impact at the planning stage of such construction, and we consult with local residents, environmental groups and technical experts to generate community support for such projects. We exercise additional caution in cases where such facilities are constructed near ecologically sensitive areas such as wetlands or preservation areas. We also make reasonable efforts to minimize any negative environmental impact, for example, by using more environment-friendly technology and hardware. Additionally, we also undertake measures to minimize losses during the transmission and distribution process by making our power distribution network more energy-efficient in terms of loss of power, as well as to lower consumption of energy, water and other natural resources. Furthermore, we and our subsidiaries acquired the ISO 14001 certification, an environmental management system widely adopted internationally, in 2007 and have made it a high priority to make our electricity generation and distribution more environment-friendly. In 2014, we were awarded the presidential award for environmental contributions as a corporate citizen, after scoring the highest among 102 corporations that competed for the award. In order to encourage the implementation of environment-friendly measures by other corporations and enhance environmental awareness at a social level, we have been disclosing our environment-related activities and achievements to the public through the Environment Information System managed by the Ministry of Environment since 2012.

Our environmental measures, including the use of environment-friendly but more expensive parts and equipment and allocation of capital expenditures for the installation of such facilities, may result in increased operating costs and liquidity requirement. The actual cost of installation and operation of such equipment and related liquidity requirement will depend on a variety of factors which may be beyond our control. There is no assurance that we will continue to be in material compliance with legal or social standards or requirements in the future in relation to the environment.

As part of our medium- to long-term strategic initiatives, we plan to take other measures designed to promote the generation and use of environment-friendly or green energy. See Item 4.B. “Business Overview—Strategy.”

Some of our generation facilities are powered by renewable energy sources, such as solar energy, wind power and hydraulic power. While such facilities are currently insignificant as a proportion of our total generation capacity or generation volume of our generation subsidiaries, we expect that the portion will increase in the future, especially since we are required to comply with the Renewable Portfolio Standard program as described below.

The following table sets forth the generation capacity and generation volume in 2022 of our generation facilities that are powered by renewable energy sources.


	Generation Capacity (megawatts)			Generation Volume (gigawatt-hours)
Hydraulic Power⁽¹⁾		651			1,328
Wind Power		168			219
Solar Energy		284			354
Fuel Cells		421			2,470
Others		1,092			5,419

Subtotal		2,616			9,790
As percentage of total⁽²⁾		3.16	%		2.40	%

Notes:

(1)	Excluding generation capacity and volume of pumped storage, which is generally not classified as renewable energy.

(2)	As a percentage of the total generation capacity or total generation volume, as applicable, of us and our generation subsidiaries.

In order to deal with shortage of fuel and other resources and also to comply with various environmental standards, in 2012 the Government adopted the Renewable Portfolio Standard program, which replaced the Renewable Portfolio Agreement which had been in effect from 2006 to 2011. Under this program, each of our generation subsidiaries is required to generate a specified percentage of total electricity to be generated by such generation subsidiary in a given year in the form of renewable energy or, in case of a shortfall, purchase a corresponding amount of a Renewable Energy Certificate (a form of renewable energy credit) from other generation companies whose renewable energy generation surpass such percentage. The target percentage was 5.0% in 2018, 6.0% in 2019, 7.0% in 2020, 9.0% in 2021 and 12.5% in 2022. Fines are to be levied on any subsidiary that fails to do so in the prescribed timeline. In 2021, all six of our generation subsidiaries met the target through renewable energy generation and/or the purchase of a Renewable Energy Certificate. Compliance by our generation subsidiaries of the 2022 target is currently under evaluation, and if any generation subsidiary is found to have failed to meet the target for 2022 or for subsequent years, such generation subsidiary may become subject to fines. Additionally, as the target percentage is subject to change, changes to the target percentage may result in additional expenses for our generation subsidiaries. From October 2021, an amendment to the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy became effective to raise the upper limit of the target percentage even higher to 25% from the previous threshold of 10%. In January 2022, the Enforcement Decree of the above law was amended to set out the target percentage to gradually increase the annual upper limit of target percentage to 14.5% in 2023, 17.0% in 2024, 20.5% in 2025 in order to raise the upper limit of target percentage to 25% in 2026. However, as the Tenth Basic Plan decreased the target rate of domestic renewable energy generation in 2030 from 30.2% to 21.6%, on January 13, 2023, an amended bill to the Enforcement Decree has been introduced, proposing to change the target rate for each year from 2023 to 2027 as listed in the table below and to reach the upper limit of target percentage to 25% after 2030, delaying the target from the last amendment to achieve 25% in 2026 aligned with the Tenth Basic Plan.


	2023			2024			2025			2026			2027
Target Percentage under Renewable Portfolio Standard		13.0	%		13.5	%		14.0	%		15.0	%		17.0	%

As to how we plan to finance our capital expenditures related to our environmental programs, see “—Capital Investment Program.”

In March 2017, the Electric Utility Act was amended to the effect that starting in June 2017, future national planning for electricity supply and demand in Korea should consider the environmental and safety impacts of such planning, such as desulfurization costs. Accordingly, the costs related to environmental and safety impacts such as the desulfurization costs, have been reflected in our variable cost of generating electricity since August 2019. In December 2019, the Regulation on the Operation of the Electricity Market was revised to reflect the cost of trading greenhouse gas emission allowances in our variable cost of generating electricity and the revision was implemented in January 2022.

Furthermore, under the new electricity rate structure effected by the Government effective January 1, 2017, a temporary rate discount will apply in the case of investments in environment-friendly facilities such as energy storage systems, renewable energy and electric cars. While the initial temporary rate discount had applied between 2017 and 2019, it was extended until 2020. Starting in January 2021, we rolled back the discount for energy storage systems by decreasing it from three times the Base Charge to one times the Base Charge and discontinuing the 50% discount on the Usage Charge. The discount of one times the Base Charge is planned to

also phase out in March 2026 as we originally intended. In addition, we intend to designate a three-hour time period during peak time and induce discharge during that period by giving more discount benefits to the customers. The second of the two discounts being rolled back is a 50% discount for customers who installed a renewable energy generator for their own industrial and general uses. We originally introduced this discount to encourage an increased supply of renewable energy. We discontinued this discount in 2020 while only maintaining it for customers who are unable to sell their electricity in the market because of their small generation capacities (less than 10 kilowatts). The discount for such customers is planned to be discontinued by 2023. Furthermore, in order to mitigate any potential burden on the consumers and shock to the electric car market, the temporary rate discount will be incrementally phased out by June 2022.

In line with the spread of RE100, a global campaign by companies around the world to cover 100% of their electricity use with renewable energy by 2050, the Government introduced its own version of RE100 that allows companies and other consumers to choose energy sources from which their electricity is generated. In order for a domestic company to participate in RE100, it needs to enter into either a third-party PPA or a direct PPA, or general and industrial customers may also purchase renewable energy through us in a competitive bidding process and be issued with a certificate of use of renewable energy, which we refer to as the green premium system. On June 21, 2021, the Ministry of Trade, Industry and Energy announced the “Guidelines on Third-Party Power Purchase Agreements for Renewable Energy Generation” that stipulated the method of transaction of renewable energy power among third parties. The relevant legislation for the direct PPA was enacted in the National Assembly in March 2021 and has been in force since October 2021. The Ministry of Trade, Industry and Energy finalized and announced detailed guideline for direct PPA in September 2022. As of March 31, 2023, there are four third-party PPAs with total contracted capacity of 9.5 megawatts and one direct PPA with total contracted capacity of 2.3 megawatts, which are effective under related law and guideline. If there is an expansion in the use of direct PPA, it may adversely affect our market share in electricity sales. In addition to the PPA, the green premium system started in January 2021 and we, on behalf of Korea Energy Agency, are in charge of managing the bidding for renewable energy, receiving bid prices from winning companies, issuing a certificate of use of renewable energy to companies on a quarterly basis and receiving fees from Korea Energy Agency for our service.

Following the amendment to the Hydrogen Economy Promotion and Hydrogen Safety Management Act in June 2022 and its Enforcement Decree in December 2022, the Minister of Trade, Industry and Energy has designated KEPCO and other entities under Community Energy System as the buyers of hydrogen-generated electricity. We will be required to enter into contract with a hydrogen-generation business entity who is selected as the contractor after competitive bidding.

The bidding market is comprised of the general hydrogen market and the clean hydrogen power generation market, as categorized based on the type of fuel used. In consideration of the current ecosystem in which fuel cells are used, the general hydrogen power generation market is open to all kinds of hydrogen plants including plants using extracted or by-product hydrogen. On the other hand, the clean hydrogen power generation market is a market where only generators using clean hydrogen plants are allowed to participate. Clean hydrogen is categorized into carbon-free hydrogen, low-carbon hydrogen, and low-carbon hydrogen compounds (including ammonia) according to greenhouse gas emissions in the production and import procedure of hydrogen. The system for certifying clean hydrogen plants will be put in place based on criteria, such as the amount of carbon dioxide emissions, set by relevant enforcement ordinances. The bidding market commences two years earlier in the general hydrogen market and three years earlier in the clean hydrogen market as compared to the actual commercial operation of plants and consequent purchases of power. In March 2023 but prior to the official

announcement becoming effective, the Government notified the bidding volume for the period from 2023 to 2025 in accordance with the Tenth Basic Plan, as shown in the table below.


	Year of bidding market commencement
	2023				2024				2025
	Year of commercial operation commencement		Volume (GWh)		Year of commercial operation commencement		Volume (GWh)		Year of commercial operation commencement		Volume (GWh)
General hydrogen market		2025		1,300		2026		1,300		2027		1,300
Clean hydrogen market		—		—		2027		3,500		2028		3,000

The amount of hydrogen-generated electricity to be purchased by us will be determined by the Minister of Trade, Industry and Energy, taking consideration of the Basic Plan Relating to the Long-Term Supply and Demand of Electricity and Hydrogen Economy Implementation Basic Plan, within 10% of the aggregate domestically generated energy of the previous year. The Minister shall allow us to reflect the cost arising from the purchase of hydrogen energy into the electricity tariff pursuant to the above Act but a detailed method has not been specified yet.

Social Programs

Our management establishes and implements a safety plan at the beginning of each year and passes resolutions on the board of directors. Pursuant to the plan, we introduced preventive measures against three major disasters, namely, electronic shock, falling and crash.

Especially for the above three major disasters, special measures have been taken to prevent such accidents as follows. To prevent workers from electric shock, a direct live wire method in which workers directly touch an electric wire was eliminated and completely converted to an indirect live wire method excluding any direct touch with an electric wire. To completely separate possible causes of electric shock from workers, we adopted a method to temporarily cut off electricity at working sites. And to prevent falling, we prohibited workers from climbing electric poles by themselves and instead workers should use high-altitude work vehicles such as insulated bucket truck. In addition, workers should put in anti-slip supports under the wheels while parking the insulated bucket truck to prevent the crushes.

Building goodwill with local communities is important to us in light of concerns among the local residents and civic groups in Korea regarding construction and operation of generation units, particularly nuclear generation units. The Act for Supporting the Communities Surrounding Power Plants and the Act on the Compensation and Support for Areas Adjacent to Transmission and Substation Facilities require that the generation companies and the affected local governments carry out various activities up to a certain amount annually to address neighboring community concerns. Pursuant to these Acts, we and our generation subsidiaries, in conjunction with the affected local and municipal governments, undertake various programs, including scholarships and financial assistance to low-income residents.

Under the Act for Compensation and Support for Areas Adjacent to Transmission and Substation Facilities, activities required to be undertaken under the Act are funded partly by the Electric Power Industry Basis Fund (see “—Sales and Customers—Electricity Rates”) and partly by KHNP as part of its budget. KHNP is required to make annual contributions to the affected local communities in an amount equal to Won 0.25 per kilowatt-hour of electricity generated by its nuclear generation units during the one-year period before the immediately preceding fiscal year, Won 5 million per thousand kilowatts of hydroelectric generation capacity and Won 0.5 million per thousand kilowatts of pumped-storage generation capacity. In addition, under Korean tax law, KHNP is required to pay local tax levied on its nuclear generation units in an amount equal to Won 1 (effective January 1, 2015, which reflects an increase from the previous Won 0.5 per kilowatt-hour of their generation volume in the affected areas) and Won 2 per 10 cubic meters of water used for hydroelectric generation.

The Act on the Compensation and Support for Areas Adjacent to Transmission and Substation Facilities, enacted in January 2014 with effect from July 2014, prescribes measures to be taken by power generation or transmission companies with respect to the communities adjacent to transmission and substation facilities. Under this Act, those who own land or houses in the vicinity of transmission lines and substation may claim compensation for damages or compel purchase of such properties by the power generation or transmission companies which are legally obligated in principle to pay for such damages or purchase such properties. In addition, under this Act, residents of communities adjacent to transmission and substation facilities are entitled to subsidies on electricity tariff as well as support for a variety of welfare projects and collective business ventures.

Prior to the construction of a generation unit, our generation subsidiaries perform an environmental impact assessment which is designed to evaluate public hazards, damage to the environment and concerns of local residents. A report reflecting this evaluation and proposing measures to address the problems identified must be submitted to and approved by the Ministry of Trade, Industry and Energy following agreement with related administrative bodies, including the Ministry of Environment prior to the construction of the unit. Our generation subsidiaries are then required to implement the measures reflected in the approved report. Despite these activities, civic community groups may still oppose the construction and operation of generation units (including nuclear units), and such opposition could adversely impact our construction plans for generation units (including nuclear units) and have a material adverse effect on our business, results of operations and cash flow.

Upon relocation of our corporate headquarters in November 2014, we developed and established Bitgaram Energy Valley as a smart energy hub city in Gwangju and Jeollanam-do, to attract and facilitate the growth of start-ups and research institutions related to new energy industries while contributing to the local economy, balanced regional development and job creation. To achieve this goal, through industry-academic cooperation including partnerships with the Korea Institute of Energy Technology and the Korea Institute of Energy Research, we support the R&D efforts of companies, develop new technologies, and publish R&D results. We also seek to create new growth engines by assisting innovative companies with their technology development and commercialization as they enter the global market. As of December 31, 2022, we have signed agreements with 592 companies relating to investments in the Bitgaram Energy Valley, outperforming our target in 2022 of 590 companies. We are currently developing Bitgaram Energy Valley to establish a spontaneous industrial ecosystem, which will contribute to the power industry as well as the national economy.

Additionally, we continue to pursue businesses that promote co-prosperity with small and medium-sized enterprises (SMEs), such as cultivating startups, exploring for cooperative R&D projects with SMEs, and supporting export business. We also strive to strengthen the fundamental self-reliance of SMEs with continuous engagement, through improving their productivity, training specialists and also financial supports. In addition, by operating the ‘SMEs Energy Technology Market’, we are promoting cooperation between energy-related public institutions and SMEs. As for the major accomplishments in 2022, they include supporting 20 energy startups and discovering 16 collaborative R&D projects.

Governance

We operate a risk management system to prevent possible risks in advance and effectively respond to them. The audit committee under the board of directors conducts audits of accounting and major management tasks and evaluates the operational status of the internal accounting management system. Since 2020, the ESG committee has also been established and operated under the board of directors to manage non-financial risks associated with environment, social, and governance issues.

We set up an ethical management system that fits our management needs in order to set up a system for managing ethically that is both systematic and effective. We provide the basic principles of conduct through ethical guidelines such as the Code of Ethics and the Code of Conduct, establish step-by-step strategies for the ethical management of our vision and management policies, and engage in relevant activities. See also Item 16.B. “Code of Ethics.”

See also Item 16.G. “Corporate Governance” for a further description of independence, diversity of our board and other committees thereunder.

Nuclear Safety

KHNP takes nuclear safety as its top priority and continues to focus on ensuring the safe and reliable operation of nuclear power plants. KHNP also focuses on enhancing corporate ethics and transparency in the operation of its plants.

KHNP has a corporate code of ethics and is firmly committed to enhancing nuclear safety, developing new technologies and improving transparency. KHNP has also established the “Statement of Safety Policy for Nuclear Power Plants” to ensure the highest level of nuclear safety. Furthermore, KHNP invests approximately 5% of its total annual sales into research and development for the enhancement of nuclear safety and operational performance.

KHNP implements comprehensive programs to monitor, ensure and improve safety of nuclear power plants. In order to enhance nuclear safety through risk-informed assessment, KHNP conducts probabilistic safety assessments, including for low power-shutdown states, for all its nuclear power plants. In order to systematically verify nuclear safety and identify the potential areas for safety improvements, KHNP performs periodic safety reviews on a 10-year frequency basis for all its operating units. These reviews have been completed for all of our nuclear power plants once or more. In order to enhance nuclear safety and plant performance, KHNP has established a maintenance effectiveness monitoring program based on the maintenance rules issued by the United States Nuclear Regulatory Commission, which covers all of KHNP’s nuclear power plants in commercial operation.

KHNP has developed the Risk Monitoring System for operating nuclear power plants, which it implements in all of its nuclear power plants. The Risk Monitoring System is intended to help ensure nuclear plant safety. In addition, KHNP has developed and implemented the Severe Accident Management Guidelines and is developing the Severe Accident Management Guidelines for Low Power-Shutdown States in order to manage severe accidents for all of its nuclear power plants.

KHNP conducts various activities to enhance nuclear safety such as quality assurance audits and reviews by the KHNP Nuclear Review. KHNP maintains a close relationship with international nuclear organizations in order to enhance nuclear safety. KHNP invites international safety review teams such as the World Association of Nuclear Operators (“WANO”) Peer Review Team to its nuclear plants for purposes of meeting international standards for independent review of its facilities. KHNP actively exchanges relevant operational information and technical expertise with its peers in other countries. For example, KHNP conducted WANO Pre-Startup Peer Reviews for Shin-Hanul #1 unit in 2022. The recommendations and findings from this event were shared with KHNP’s other nuclear plants to implement improvements at such plants. In addition, KHNP has applied for the Operational Safety Review Team at the International Atomic Energy Agency to conduct a mission at Saeul #1 and #2 (formerly named as Shin-Kori #3 and #4) units in the second half of 2022. The purpose of such application was to ensure that KHNP nuclear generation units reflect the global safety standards.

The average level of radiation dose per unit amounted to a relatively low level of 0.25 man-Sv in 2022, which was substantially lower than the global average of 0.58 man-Sv/year in 2022 as reported in the WANO performance indicator report.

In response to the damage to the nuclear facilities in Japan as a result of the tsunami and earthquake in March 2011, the Government conducted additional safety inspections on nuclear power plants by a group of experts from governmental authorities, civic groups and academia. As a result of such inspections, the Government required KHNP to perform 46 comprehensive safety improvement measures. As of December 31, 2022, KHNP has completed implementation of 45 measures and will implement the one remaining measure by

2024. The Government also established the Nuclear Safety & Security Commission in October 2011 for neutral and independent safety appraisals. KHNP developed ten additional measures through benchmarking of overseas cases and internal analysis of current operations. As of December 31, 2022, KHNP has completed implementation of nine measures and will implement the one remaining measure by 2023.

From time to time, our nuclear generation units may experience unexpected shutdowns. For example, on September 12, 2016, multiple earthquakes including a magnitude 5.8 earthquake hit the city of Gyeongju, a home to KHNP’s headquarters and Wolsong Nuclear Power Plants. Although there was no material safety issues, KHNP had manually stopped the operations of Wolsong #1, #2, #3, and #4 units according to the safety guidelines. All units have resumed their operations on December 5, 2016, with the approval by the Nuclear Power Safety Commission. KHNP finished implementing measures to improve the safety by reinforcing seismic capability of its core facilities and performing stress tests across all its nuclear power plants. In 2018, KHNP finished the implementation of such measures for 24 units and enhanced seismic capability of the core facilities to withstand a magnitude 7.0 earthquake (6.5 before implementation). As for the units under construction, Saeul #3 and 4 (formerly named as Shin-Kori #5 and #6), the core facilities will be able to withstand a magnitude 7.4 earthquake.

Low and intermediate level waste (“LILW”), and spent nuclear fuels (“SNFs”) are stored in temporary storage facilities at each nuclear site of KHNP. The temporary LILW storage facilities at the nuclear sites had been sufficient to accommodate all LILWs produced up to 2015. Korea Radioactive Waste Agency (“KORAD”) completed the construction of a LILW disposal facility in the city of Gyeongju, and government approval for its operations was obtained in December 2014.

In order to increase the storage capacity of temporary storage facilities for SNFs, KHNP has been pursuing various projects, such as installing high-density racks in SNFs pools and building dry storage facilities. Through these activities, we expect that the storage capacity for SNFs in all nuclear power plant sites will be adequate to temporarily accommodate all SNFs produced by the operation of nuclear power plants before the operation of an intermediate storage facility. In December 2021, the Government decided on the national policy for the management of SNFs (Reference: The second master plan for High-Level Radioactive waste management) to secure an intermediate storage and disposal facility. The national policy for the management of SNFs includes a temporary operation plan for on-site SNFs storage facility on nuclear power plants before the operation of the intermediate storage facility.

In 2009, the Radioactive Waste Management Act (“RWMA”) was enacted in order to centralize management of the disposal of SNFs and LILW and enhance the security and efficiency of related management processes. The RWMA designates KORAD to manage the disposal of SNFs and LILW. Pursuant to the RWMA, the Government has established the Radioactive Waste Management Fund. The management expense for LILW is paid when LILW is transferred to KORAD, and the charge for SNFs is paid based on the quantity generated every quarter. LILW-related management costs and charges for SNFs are reviewed by the Ministry of Trade, Industry and Energy every two years. In January 2022, after the review by the committee composed of Government officials, KHNP, KORAD and experts in finance and accounting, LILW-related management costs were decreased while charges for SNFs remained the same. The change in LILW-related management costs caused a decrease in KHNP’s expenses relating to radioactive waste.

Three bills relating to the disposal of SNFs were proposed by the National Assembly as of the end of 2022. Currently, the National Assembly Standing Committee is examining the above bills as a merged bill. These three bills include the plan for construction and operation for an intermediate storage facility and a disposal facility, and an on-site SNFs storage facility on nuclear power plants.

In addition, in February 2021, in accordance with the Government’s guidelines for strengthening the safety of nuclear power plants, the period for verifying seismic resilience of major equipment was extended. In light of the fact that forced efforts to shorten the process could endanger the workers, the construction periods of Saeul

#3 and #4 (formerly named as Shin-Kori #5 and #6) units have been extended by twelve months and nine months to complete their construction in 2024 and 2025, respectively.

All of KHNP’s nuclear plants are currently in compliance with Korean law and regulations and the safety standards of the IAEA in all material respects. For a description of certain past incidents relating to quality assurance in respect of KHNP, see Item 3.D. “Risk Factors—Risks Relating to KEPCO—Our risk management policies and procedures may not be fully effective at all times.”

Decommissioning

Decommissioning of a nuclear power unit is the process whereby the unit is shut down at the end of its life, the fuel is removed and the unit is eventually dismantled. KHNP renewed the operating license of Kori #1, the first nuclear power plant constructed in Korea, which commenced operation in 1978, for an additional ten years in 2007. At the recommendation of the Ministry of Trade, Industry and Energy, KHNP has decided not to renew the operating license of Kori #1 and the initial phase of decommissioning (namely, safety inspection and removal of spent nuclear fuels) of Kori #1 has begun after its permanent shutdown in June 2017. KHNP retains full financial and operational responsibility for decommissioning its units.

KHNP has accumulated decommissioning costs as a liability since 1983. The decommissioning costs of nuclear facilities are defined by the Radioactive-Waste Management Act, which requires KHNP to credit annual appropriations separately. These costs are estimated based on studies conducted by the relevant committees, and are reviewed by the Ministry of Trade, Industry and Energy every two years. In 2022, the actual discount rates decreased and the decommissioning cost per unit increased. As of December 31, 2022, KHNP was required to accrue Won 26,302 billion for the costs of dismantling and decontaminating existing nuclear power plants, which consisted of dismantling costs of nuclear plants of Won 23,035 billion and decommissioning costs of spent nuclear fuels and radioactive waste of Won 3,267 billion.

Overseas Activities

We are engaged in a number of overseas activities. We believe that such activities help us diversify our revenue streams by leveraging the operational experience of us and our subsidiaries gathered from providing a full range of services, such as power plant construction and specialized engineering and maintenance services in Korea, as well as establishing strategic relationships with countries that are or may become providers of fuels.

We have continuously expanded our overseas projects starting with the oil-fired power plant in Malaya, the Philippines in 1995. As of the end of December 2022, we are engaged in 45 projects in 24 countries across Asia, the Middle East, Central and South America, North America, Africa, and Oceania. The total facility capacity amounts to 28,178 megawatts, comprising of 18,977 megawatts of coal-fired power, 5,600 megawatts of nuclear power, 3,601 megawatts of renewable energy.

Throughout the years, we have sought to expand our project portfolio to include the construction and operation of conventional thermal generation units, nuclear generation units and renewable energy power plants, transmission and distribution and mining and development of fuel sources. While strategically important, we believe that our overseas activities, as currently being conducted, are not in the aggregate significant in terms of scope or amount compared to our domestic activities. In addition, a number of the overseas contracts currently being pursued are based on non-binding memoranda of understanding and the details of such projects may significantly change during the course of negotiating the definitive agreements.

identification of potential buyers, consultation with stakeholders and prioritization of better deals. We also aim to carry out our combined gas power generation projects only along with new technologies, such as ammonia or hydrogen blended combustion, carbon capture, utilization and storage (CCUS) etc. which are suitable to reduce carbon emissions. In the long run, we aim to achieve carbon neutrality through reorganization of our business portfolio to focus on decarbonization, renewable energy, and new businesses.

Below is a description of our major overseas projects.

Generation Projects

Nuclear Generation Projects

In December 2009, following an international open bidding process, we entered into a prime contract for the original contract amount of US$18.6 billion with the Emirates Nuclear Energy Corporation (“ENEC”), a state-owned nuclear energy provider of the United Arab Emirates (“UAE”), to design and construct four civil nuclear power generation units to be located in Barakah, a region approximately 270 kilometers from Abu Dhabi, for the UAE’s peaceful nuclear energy program. Under the contract, we and our subcontractors, some of which are our subsidiaries, are to perform various duties including, among others, designing and constructing four nuclear power generation units each with a capacity of 1,400 megawatts, supplying nuclear fuel for three fuel cycles including initial loading, with each cycle currently projected to last for approximately 18 months, and providing technical support, training and education related to plant operation. The contract amount of US$18.6 billion was increased to US$19.1 billion as per the amendment signed in November 2017.

On October 20, 2016, in order to foster a long-term strategic partnership and stable management of the units’ post-construction we entered into an investment agreement with ENEC to jointly establish Barakah One PJSC, a special purpose company which will oversee the operation and management of the nuclear power plant currently being constructed in Barakah, UAE. Barakah One PJSC is mainly capitalized with loans in the amount of US$19.6 billion and equity of US$4.7 billion. We have an 18% equity interest in Barakah One PJSC, and also have an 18% equity interest in Nawah Energy Company, a subsidiary of ENEC, which will also be responsible for the operation and maintenance of the Barakah nuclear power plant. On December 20, 2018, the board of directors of KEPCO resolved to invest additional US$380 million in Barakah One PJSC. With the additional investment, KEPCO’s total capital investment amount in Barakah One PJSC is expected to be US$1.28 billion. Actual capital contribution will be made at the time when commercial operation of Unit #4 is commenced. KEPCO’s equity interest in the project is 18%, which remains unchanged. The total project cost of the construction and operation of the Barakah nuclear power plant is expected to be approximately US$29.5 billion. Barakah One PJSC successfully achieved the commercial operation of Unit #1, #2 and #3 of Barakah nuclear power plant in April 2021, March 2022 and February 2023 respectively, with an expected plant life span of 60 years. Unit #4 is in the final stages of commissioning and testing prior to first fuel load, pending receipt of the Operating License from the UAE’s nuclear regulator.

In August 25, 2022, KHNP signed a contract for the construction of turbine islands in El Dabaa nuclear power plant project in Egypt with Atomstroyexport JSC (“ASE JSC”), a subsidiary of Rosatom. ASE JSC had won an order for El Dabaa project from Egyptian Atomic Energy Agency (NPPA) in 2017 to build a nuclear power plant that consists of four reactors of which capacity is 1,200 megawatts each. KHNP will construct about 80 buildings and structures including turbine islands in four units of El Dabaa and supply equipment. The construction of the project will start in 2023 and is planned to be completed in 2029.

Non-nuclear Generation Projects

We are currently engaged in two major power projects in the Philippines: (i) ownership of a 39.96% equity interest in SPC Power Corporation, an independent power producer, and a 39.96% equity interest in two distribution companies in the Philippines, and (ii) a “build, operate and own” of a 200-megawatt CFBC coal

power plant in Cebu whose construction and was completed in May 2011, followed by operation thereof until 2036. The project cost of the Cebu project was US$451 million, for which project financing on a limited recourse basis was provided. To fulfill our responsibility for carbon neutrality, we are currently pushing ahead with the plan to sell our interests in Cebu and SPC projects.

In April 2007, we formed a limited partnership with Shanxi International Electricity Group and Deutsche Bank in China to develop and operate power projects in Shanxi province, China, which was approved by the Chinese government. The total capital investment in these projects amounted to US$1.33 billion, of which our capital investment was US$450 million. We expect to participate in the operation of the project for a period of 50 years ending 2057. The total capacity of these projects is 9,292 megawatts and our equity interest in the partnership is 34%.

In July 2008, a consortium consisting of us and Xenel of Saudi Arabia won the bid to “build, own and operate” a gas-fired power plant with installed capacity of 373 megawatts in Al Qatrana, near Amman, and we entered into definitive agreements in October 2009. Construction of this project was completed in December 2011, and the plant is currently in operation and will be operated until 2035. The total project cost was US$461 million, of which the consortium made an equity contribution of US$143 million and the remainder was funded with debt financing. We and Xenel own 80:20 equity interests in the project, respectively.

In December 2008, we formed a consortium with ACWA Power International of Saudi Arabia and submitted a bid for the 1,204 megawatts oil-fired power project in Rabigh, Saudi Arabia. In March 2009, we were selected as the preferred bidder, and in July 2009, we entered into a power purchase agreement (“PPA”) with Saudi Electricity Company. Construction of the project was completed in April 2013, and we will participate in the operation of the plant for 20 years. The total project cost was approximately US$2.5 billion. We currently hold a 40.0% equity interest in the joint venture entity, Rabigh Electricity Company, which operates the project.

In August 2010, we led a consortium and won the bid to “build, own and operate” the 433-megawatt Norte II gas-fueled combined-cycle electricity generation facility in Chihuahua, Mexico, as ordered by the Commission Federal de Electricidad (“CFE”) of Mexico. The consortium established a special purpose vehicle, KST Electric Power Company (“KST”), to act as the operating entity, and in September 2010, KST entered into a PPA with CFE, of which the operation period will run for 25 years until 2038. The total cost of the project is approximately US$427 million and we hold a 56% equity interest in the consortium. Our wholly-owned subsidiary, KEPCO Energy Service Company, currently manages the operation of the project.

In October 2010, a consortium including us was selected by Abu Dhabi Water & Electricity Authority (“ADWEA”), a state-run utilities provider in the UAE, as the preferred bidder in an international bidding for the construction and operation of the combined-cycle natural gas-fired electricity generation facilities in Shuweihat, UAE with aggregate capacity of 1,600 megawatts. Construction was completed in July 2014 and we will participate in the operation of the plant until 2039. The total project cost was approximately US$1.4 billion, of which 20% was financed through equity investments by the consortium members and the remaining 80% through debt financing.

In January 2012, a consortium consisting of us, Mitsubishi Corporation and Wartsila Development & Financial Services of Finland was selected by National Electric Power Corporation, a state-run electricity provider in Jordan, to construct and operate a 573-megawatt diesel engine power project in Al Manakher. Construction of this project was completed in October 2014 and the plant is currently in operation and will be operated until 2039. The total project cost was approximately US$760 million, of which the consortium made an equity contribution of approximately US$190 million and the remainder was funded with debt financing.

In March 2013, a consortium consisting of us and Marubeni, a Japanese corporation, was selected by the Ministry of Industry and Trade of Vietnam for the construction and operation of a 1,200 megawatts coal-fired

power plant in Thanh Hoa province, Vietnam. We started construction in July 2018 and completed in July 2022. The plant is currently in operation and will be operated until 2048. The total project cost is expected to be US$2.5 billion, of which 24% will be funded by equity contribution and the remaining 76% by debt financing. The share capital of the special purpose entity in charge of this project is US$568 million, and we, Marubeni, and Tohoku Power hold 50%, 40%, and 10% equity interest in the consortium, respectively.

In November 2019, we entered into an Energy Conversion Agreement comprising of a PPA with the Guam Power Authority for a term of 25 years to construct and operate Ukudu gas-fired power plants in Guam, United States, including 198 megawatts gas-fired power plant and 25 megawatts energy storage facility. We and KOWEPO, hold 60% and 40% shares in the project, respectively. The total project cost is expected to be approximately US$765 million, and we expect to invest US$92 million for the equity interest. The construction of the project started on May 31, 2022, and is planned to be on line in August 2024. The completed power plants are expected to be operated as base load generators, replacing the existing old heavy fuel power plants in Guam.

In January 2020, Pulau Indah Power Plant in Malaysia, a special purpose company that we own 25% shares, received a Letter of Notification to develop 1,200 megawatts combined-cycle gas-fired power plant from the Energy Commission of Malaysia, the host entity of the project. The construction started in December 2020 and is expected to be completed by January 2024. The total project cost is expected to be approximately US$766 million, and we expect to invest approximately US$39 million for the equity interest. We signed a PPA in August 2020 with Tenaga Nasional Berhad, which will be effective from January 2024 for a period of 21 years.

On June 30, 2020, our board of directors approved our plan to invest US$51 million in the expansion of two coal-fired power plants called Java 9 and Java 10 on the Indonesian island of Java. We will invest together with PT Perusahaan Listrik Negara (“PLN”), an Indonesian state electricity company, and PT Barito Pacific Tbk., an Indonesian company. The total investment will be approximately US$3.39 billion and each of us, PLN and Barito Pacific will respectively own 15%, 51% and 34% shares in the joint venture. The joint venture will manage the construction of two planned units of 1,000 megawatt generation capacity each. The construction of Java 9 is expected to be completed in the fourth quarter of 2024 and Java 10 is expected to be completed in the first quarter of 2025. The joint venture is a party to a 25-year PPA with PLN.

On October 5, 2020, our board of directors approved our plan to invest US$203 million in the construction of Vung Ang 2 coal-fired power plant in Vietnam in exchange for 40% shares in the project. The new plant will be located in Ha Tinh Province, Vietnam, adjacent to Vung Ang 1 power plant and will consist of two units with 600 megawatts generation capacity each. We started the construction in October 2021 and the power plant is expected to be completed in 2025. Diamond Generating Asia, a subsidiary of Mitsubishi Corporation, a Japanese corporation, is the main sponsor of this project. We will operate this plant together with other co-investors for 25 years.

In September 2022, we entered into the Energy Conversion Agreement with Saudi Aramco with regard to the cogeneration plant at Jafurah, in the Kingdom of Saudi Arabia. By executing this contract, we are to build the cogeneration plant with a capacity of approximately 317 megawatts of electricity generation and 694 kilo pounds per hour of steam output. Once construction is completed, this plant will supply electricity and steam to the Jafurah gas plant for twenty years. We and Saudi Aramco hold 60% and 40% shares in the project respectively and the total project cost is approximately US$527 million which will be funded through project financing and equity investment. We launched the construction of the plant in the fourth quarter of 2022, and expect to commence the commercial operation in October 2025.

Exploration and Production Projects

We have engaged in a bituminous coal project in Bylong, Australia. In July 2015, KEPCO Bylong lodged a development application to the State Government of New South Wales (the “NSW”) of Australia. In September 2019,

Independent Planning Commission of the NSW, which is the governmental authority with the approval power, refused to accept our Bylong development application. After many rounds of legal proceedings, our request for appeal to the High Court of Australia was finally rejected in February 2022. As of December 31, 2022, we have invested approximately Won 810 billion in the Bylong project, and, as of December 31, 2022, the impairment loss in connection with the Bylong project accrued to approximately Won 541 billion. We are currently reviewing various alternative plans to minimize our business losses.

Our nuclear generation subsidiary, KHNP, is also pursuing development projects for procurements of uranium in countries including Canada, France and Niger.

Renewable Energy, Transmission & Distribution Projects

We are currently pursuing overseas projects strategically with the aims of increasing the sales and net profit from renewable energy and grid projects to diversify our businesses and actively address climate change. Specifically, we are planning to enter an offshore wind power market, increase grid investment projects and conduct large-scale CDM (Clean Development Mechanism) projects. We will expand our projects aligned with the energy transition trend toward carbon neutrality.

Since 2004, joint ventures between us and China Datang Corporation of the People’s Republic of China have built and operated a number of wind farms in Inner Mongolia, Liaoning and Gansu provinces. We own 40% of these joint ventures, whose equity in the aggregate amount is approximately US$450 million. The projects are funded one-third by equity contributions and two-thirds by debt financing. As of December 31, 2022, the joint venture operated 22 wind farms with a total capacity of 1,017 megawatts and a 7-megawatt photovoltaic power station.

In December 2015, we entered into an agreement with the Ministry of Energy and Mineral Resources of Jordan to build, own and operate a wind farm with installed capacity of 89.1 megawatts in Fujeij, Ma’an, Jordan. Commercial operations commenced on July 14, 2019. Total project cost is approximately US$181 million, of which 40% is financed through equity investments by us and the remaining 60% through debt financing.

In June 2015, we entered into a memorandum of understanding with Energy Product (“EP”), a Japanese local developer, to build, own and operate photovoltaic power station with a capacity of 28 megawatts, together with a 13.7 megawatts-hour energy storage system, in Chitose, Hokkaido prefecture in Japan. The power station, in which we own 80.1% interest, started commercial operation in July 2017. Total project cost is approximately JPY 10.9 billion, of which 20% was financed through 80:20 equity investments by us and EP. In July 2021, our 15.1% equity interest and whole equity interest of Energy Product, 19.9%, was sold to NH-Amundi. As a result, we now have 65% and NH-Amundi has 35% of the total equity interest.

In August 2016, we entered into a Purchase and Sale Agreement with Cogentrix Solar Holdings to operate a photovoltaic power station in Colorado, United States, with a capacity of 30 megawatts for 25 years. Total project cost is approximately US$85 million, of which 50.1% was financed through 50.1:49.9 equity investments by us and a private equity fund formed by us and National Pension Service. It was our first foray into the North American power market. The sale of the power plant has been completed in 2022 and the liquidation of the business is scheduled to be finished in the first half of 2023.

In June 2017, we won a project to build, own and operate a photovoltaic power station in Guam, United States, with a capacity of 60 megawatts and a 32 megawatts-hour energy storage system for 25 years. The total project cost is approximately US$183 million, and we will be financing 23% of the cost through equity investment and hold 100% of the equity interests. The remaining 77% will be funded through debt and tax equity financing. We have entered into a PPA with Guam Power Authority in August 2018. The construction of the project started in May 2020, and commercial operation has been commenced in June 2022. The entire volume of electricity generated from the power station will be purchased by Guam Power Authority for 25 years. The entire volume of electricity generated from the power station will be purchased by Guam Power Authority for 25 years.

In September 2017, we entered into an agreement with Recurrent Energy to operate 3 solar photovoltaic project in southern California, United States, with a capacity of 235 megawatts for 34 years. KEPCO partnered with the Corporate Partnership Fund, a Korean private equity fund. We invested USD 38 million in the project.

In October 2018, we entered into a Share Purchase Agreement and Share Subscription Agreement to operate a photovoltaic power station with a capacity of 50 megawatts in Calatagan in the Philippines. We own 38% interest and financed PHP 2.25 billion (approximately USD 42.8 million) for the project, of which 80% was financed through equity investments and the remaining 20% was funded through debt financing.

In October 2019, KEPCO and Sprott Korea as a consortium entered into a Share Purchase Agreement and Shareholders Agreement with Canadian Solar INC to develop and operate a photovoltaic power station with a capacity of 294 megawatts in Mexico, including the State of Sonora, for 35 years. We invested USD 41 million in the project, and the transaction marks KEPCO’s first investment in the solar market in Mexico. The construction of the power station in Horus, Mexico was completed in November 2020 and regulatory operation was initiated in February 2023. Other power stations, Tastiota and El Mayo, are expected to start commercial operation within 2023.

In December 2021, a consortium comprising us, Japan’s Kyushu Electric Power Co., Inc. and Électricité de France (EDF) has been nominated as the successful bidder for the HVDC-VSC subsea transmission system construction and operation project of UAE announced by the Abu Dhabi National Oil Company (“ADNOC”), and clinched the deal through an international tender against numerous competitors. This project will supply power for the offshore production and operations facilities of ADNOC, by constructing and operating for 35 years a subsea transmission system along 2 routes with a total length of 259 kilometers. This mega project is worth $3.8 billion and is expected to generate a stable profit through a long-term transmission agreement with the Procurer for 35 years. The construction of the project was commenced in September 2022.

North Korea

Gaeseong Industrial Complex

Since 2005, we have provided electricity to the industrial complex located in Gaeseong, North Korea, which was established pursuant to an agreement made during the summit meeting of the two Koreas in June 2000. The Gaeseong Industrial Complex is the largest economic project between the two Koreas and is designed to combine the Republic’s capital and entrepreneurial expertise with the availability of land and labor of North Korea. In March 2005, we built a 22.9 kilovolt distribution line from Munsan substation in Paju, Gyeonggi-do to the Gaeseong Industrial Complex and became the first to supply electricity to pilot zones such as ShinWon Ebenezer. In April 2006, we started to construct a 154 kilovolt, 16 kilometer transmission line connecting Munsan substation to the Gaeseong Industrial Complex as well as Pyunghwa substation in the complex and began operations in May 2007.

At the end of 2015, we supplied electricity to 254 units, including administrative agencies, support facilities and resident corporations, using a tariff structure identical to that of Korea. However, we suspended power transmission to the Gaeseong Industrial Complex since February 11, 2016 following the Government’s decision to halt operations of the industrial complex to impede North Korea’s utilization of funds from the industrial complex to finance its nuclear and missile programs. On August 14, 2018, we resumed power transmission to the facilities that are part of the Joint Liaison Office between South and North Korea but we suspended it again on June 16, 2020 in compliance with the request by the Ministry of Unification of the Korean Government. It has been reported in the media that the parties have now temporarily closed the Joint Liaison Office in accordance with the request by North Korea to stop the spread of COVID-19 and all KEPCO personnel have withdrawn from the facilities without resuming power transmission since June 16, 2020.

As of December 31, 2022, the book value of our facility located at the Gaeseong Industrial Complex was Won 13 billion. For the year ended December 31, 2022, the trade receivables related to the companies residing in Gaeseong industrial complex has been fully written-off during the year ended December 31, 2022. It is currently uncertain if we can exercise the property rights for our facility in the Gaeseong Industrial Complex. No assurance can be given that we will not experience any material losses as a result of the suspension of this project or failure of the project as a result of a breakdown or escalation of hostilities in the relationship between the Republic and North Korea. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy—Tensions with North Korea could have an adverse effect on us and the market value of our shares.”

Insurance

We and our generation subsidiaries carry insurance covering against certain risks, including fire, in respect of key assets, including buildings, equipment, machinery, construction-in-progress and procurement in transit, as well as, in the case of us, directors’ and officers’ liability insurance. We and our generation subsidiaries maintain casualty and liability insurance against risks related to our business to the extent we consider appropriate. Other than KHNP, neither we nor our generation subsidiaries separately insure against terrorist attacks. These insurance and indemnity policies, however, cover only a portion of the assets that we own and operate and do not cover all types or amounts of loss that could arise in connection with the ownership and operation of these assets.

Substantial liability may result from the operations of our nuclear generation units, the use and handling of nuclear fuel and possible radioactive emissions associated with such nuclear fuel. KHNP maintains property and liability insurance against risks of its business to the extent required by the related law and regulations or considered as appropriate and otherwise self-insures against such risks. KHNP carries insurance for its generation units against certain risks, including property damage, nuclear fuel transportation and liability insurance for personal injury and property damage. KHNP carries property damage insurance covering up to US$1 billion per accident for all properties within its plant complexes, which includes property insurance coverage for acts of terrorism up to US$300 million and for breakdown of machinery up to US$300 million. In addition to the insurance on operating nuclear power generation units, KHNP has construction insurance for Saeul #3 and #4 (formerly named as Shin-Kori #5 and #6) and Shin-Hanul #1 and #2. KHNP maintains nuclear liability insurance for personal injury and third-party property damage for coverage of up to 300 million Special Drawing Rights, or SDRs, which amounts to approximately US$399.3 million, at the rate of 1 SDR = US$1.330840 as posted on the Internet homepage of the International Monetary Fund on December 23, 2022 per plant complex, for a total coverage of 1.8 billion SDRs. KHNP is also the beneficiary of a government indemnity with respect to such risks for damage claims of up to Won 300 million SDRs per nuclear plant complex, for a total coverage of 1.8 billion SDRs. Under the Nuclear Damage Compensation Act of 1969, as amended, KHNP is liable only up to 900 million SDRs, per single accident per plant complex; provided that such limitation will not apply where KHNP intentionally causes harm or knowingly fails to prevent the harm from occurring. KHNP will receive the Government’s support, subject to the approval of the National Assembly, if (i) the damages exceed the insurance coverage amount of 300 million SDRs and (ii) the Government deems such support to be necessary for the purposes of protecting damaged persons and supporting the development of nuclear energy business. KHNP carries insurance for its generation units and nuclear fuel transportation, and we believe that the level of insurance is generally adequate and is in compliance with relevant laws and regulations. In addition, KHNP is the beneficiary of government indemnity which covers a portion of liability in excess of the insurance. However, such insurance is limited in terms of amount and scope of coverage and does not cover all types or amounts of losses which could arise in connection with the ownership and operation of nuclear plants. Accordingly, material adverse financial consequences could result from a serious accident or a natural disaster to the extent it is neither insured nor covered by the government indemnity. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The amount and scope of coverage of our insurance are limited.”

Competition

In particular, we compete with independent power producers with respect to electricity generation. The independent power producers accounted for 31.3% of total power generation in 2022 and 40.1% of total generation capacity as of December 31, 2022. As of December 31, 2022, there were 36 independent power producers in Korean electricity market, excluding 5,313 renewable energy producers. Private enterprises became permitted to own and operate coal-fired power plants in Korea only after the Ministry of Trade, Industry and Energy approved plans for independent power producers to construct coal-fired power plants under the Sixth Basic Plan announced in February 2013. Under the Tenth Basic Plan announced in January 2023, three coal-fired power plants are planned to be constructed by independent power producers by 2024. Two of the three coal-fired power plants planned for construction are expected to be completed in 2023, followed by one in 2024. While it remains to be seen whether construction of these generation units will be completed as scheduled, if these units were to be completed as scheduled and/or independent power producers are permitted to build additional generation capacity (whether coal-fired or not), our market share in Korea may decrease.

An amendment to the Electric Utility Act is underway that will enable us to directly participate in the development of renewable power generation. Under the current Electric Utility Act, a single business entity cannot participate in two or more types of electric businesses. Notwithstanding the foregoing, our power generation subsidiaries are allowed to participate in the development of renewable power generation and we may also do so by forming new entities to participate in such development. The proposed amendment allows a market-type public institution like us to participate in renewable power generation business to a limited degree. The amendment bill was proposed in July 2020 and is now pending deliberation by the Korean national assembly. When the bill passes, we intend to pursue renewable power generation projects such as large-scale offshore wind power.

Our market dominance in the electricity distribution in Korea also may face potential erosion in light of the recent Proposal for Adjustment of Functions of Public Institutions (Energy Sector) announced by the Government in June 2016. This proposal contemplates a gradual opening of the electricity trading market to the private sector although no detailed roadmap has been provided for such opening. It is currently premature to predict to what extent, or in what direction, the liberalization of the electricity trading market will happen. Nonetheless, any significant liberalization of the electricity trading market may result in substantial reduction of our market share in electricity distribution in Korea, which would have a material adverse effect on our business, results of operation and cash flows.

The electric power industry, which began its liberalization process with the establishment of our power generation subsidiaries in April 2001, may become further liberalized in accordance with the Restructuring Plan. See Item 4.B. “Business Overview—Restructuring of the Electric Power Industry in Korea.”

In the residential sector, consumers may use natural gas, oil and coal for space and water heating and cooking. However, currently there is no practical substitute for electricity for lighting and other household appliances, which is available on commercially affordable terms.

In the commercial sector, electricity is the dominant energy source for lighting, office equipment and air conditioning. For its other uses, such as space and water heating, natural gas and, to a lesser extent, oil, provide competitive alternatives to electricity.

In the industrial sector, electricity is the dominant energy source for a number of industrial applications, including lighting and power for many types of industrial machinery and processes that are available on commercially affordable terms. For other uses, such as heating, electricity competes with oil and natural gas and potentially with gas-fired combined heating and power plants.

Regulation

We are a statutory juridical corporation established under the KEPCO Act for the purpose of ensuring a stable supply of electric power and further contributing toward the sound development of the national economy through facilitating development of electric power resources and carrying out proper and effective operation of the electricity business. The KEPCO Act (including the amendment thereto) prescribes that we engage in the following activities:

development of electric power resources;

generation, transmission, transformation and distribution of electricity and other related business activities;

research and development of technology related to the businesses mentioned in items 1 and 2;

overseas businesses related to the businesses mentioned in items 1 through 3;

investments or contributions related to the businesses mentioned in items 1 through 4;

businesses incidental to items 1 through 5;

development and operation of certain real estate held by us to the extent that:

it is necessary to develop certain real estate held by us due to external factors, such as relocation, consolidation, conversion to indoor or underground facilities or deterioration of our substation or office; or

it is necessary to develop certain real estate held by us to accommodate development of relevant real estate due to such real estate being incorporated into or being adjacent to an area under planned urban development; and

other activities entrusted by the Government.

The KEPCO Act currently requires that our profits be applied in the following order of priority:

•

first, to make up any accumulated deficit;

•

second, to set aside 20.0% or more of profits as a legal reserve until the accumulated reserve reaches one-half of our capital;

•

third, to pay dividends to shareholders;

•

fourth, to set aside a reserve for expansion of our business;

•

fifth, to set aside a voluntary reserve for the equalization of dividends; and

•

sixth, to carry forward surplus profit.

As of December 31, 2022, the legal reserve was Won 1,605 billion and the voluntary reserve was Won 27,783 billion. The voluntary reserve consisted of Won 21,966 billion earmarked for business expansion, Won 5,277 billion for investment in social overhead capital, Won 330 billion for research and human development and Won 210 billion for equalizing dividends. For the avoidance of doubt, all such reserves were calculated on a consolidated basis.

We are under the supervision of the Ministry of Trade, Industry and Energy, which has principal supervisory responsibility (in consultation with other Government agencies, such as the Ministry of Economy and Finance, as applicable) over us with respect to the appointments of our directors and our other senior management as well as approval of electricity tariff rate adjustments, among others.

Because the Government owns part of our capital stock, the Government’s Board of Audit and Inspection may audit our books.

The Electric Utility Act requires that licenses be obtained in relation to generation, transmission, distribution and sales of electricity, with limited exceptions. We hold the license to transmit, distribute and sell electricity. Each of our six generation subsidiaries holds an electricity generation license. The Electric Utility Act governs the formulation and approval of electricity rates in Korea. See “—Sales and Customers—Electricity Rates” above. An amendment to the Electric Utility Act is underway that will enable us to directly participate in the development of renewable power generation. Under the current Electric Utility Act, a single business entity cannot participate in two or more types of electric businesses. Notwithstanding the foregoing, our power generation subsidiaries are allowed to directly participate in the development of renewable power generation and we may also do so by forming new entities to participate in such development. The amendment bill was proposed in July 2020 and is now pending deliberation by the Korean national assembly. When the bill passes, we intend to pursue renewable power generation projects such as large-scale offshore wind power.

Our operations are subject to various laws and regulations relating to environmental protection and safety.

Financial Stabilization Plan and Related Activities

In light of the general policy guideline of the Government for public institutions (including us and our generation subsidiaries) to reduce their respective overall debt levels, we and our generation subsidiaries have, in consultation with the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance, set target debt-to-equity levels every year and undertaken various programs to reduce debt and also strived to improve the overall financial stability.

In 2022, we and our generation subsidiaries have established and implemented a five-year financial stabilization plan in accordance with the guidelines of the Ministry of Economy and Finance. This plan includes sale of assets (sale of non-core assets such as idle properties, investment shares, and overseas coal power plants), business adjustment (adjustment or deferral of investment without affecting stable power supply and safety management), cost reduction through intense low-budget strategies, profit growth through business system improvements, and capital expansion through revaluation of tangible assets like land.

Despite our best efforts, however, for reasons beyond our control, including macroeconomic environments, government regulations and market forces (such as international market prices for our fuels), we cannot assure whether we or our generation subsidiaries will be able to successfully reduce debt burdens or otherwise improve our financial health or to a level that would be optimal for our capital structure. If we or our generation subsidiaries fail to do so or the measures taken by us or our generation subsidiaries to reduce debt levels or improve financial health have unintended adverse consequences, such developments may have an adverse effect on our business, results of operations and financial condition.

Establishment of a University

In order to enhance the competitiveness of the national energy industry, cultivate high-quality talents to revitalize the Bitgaram Energy Valley, and secure a differentiated research platform to create a new energy market, we established a university in Jeollanam-do Province in the southwestern region of Korea in accordance with the Government’s five-year state management plan.

The university, which is called as Korea Institute of Energy Technology (“KENTECH”) is a research and entrepreneurship-oriented university specializing in the energy field and aims to be a small yet robust university with 100 faculty members and 1,000 students. On April 17, 2020, the Ministry of Education gave us the permission to form a legal entity for the university. The total funding expected until 2025 when the university’s organization will be completed is Won 828.9 billion, excluding the land that was freely endowed to us.

The funding for establishing the university will be jointly borne by us and the central and municipal governments. We plan to cooperate with one another through an intra-governmental university establishment and support committee.

For ten years after the commencement of the university in 2022, we expect to receive funding (to be used as expenses for operating the university) from the municipal government in the amount of Won 200 billion. In addition, we expect to receive funding from the central government that is at least in the same amount as we expect to receive from the municipal government. After taking into account the funding from the governments, we anticipate our contribution to the university until 2025 to be approximately Won 500 billion depending on the amount of contribution from the central government.

On August 8, 2019, our board of directors resolved to make an initial contribution of Won 60 billion for the promotion, initial operation and the design of the university campus, and the actual contribution was made in 2020. On March 24, 2021, a special law was passed in the National Assembly and finally enacted on April 1, 2021, that gives autonomy to the university and lays out the basis for direct financial support from the central government and the municipal government. On May 21, 2021, the legal entity of the university changed into

special juristic person from school juristic person with the above law. On the same day, our board resolved to make an additional contribution of Won 64.5 billion to the university and Won 41.3 billon of such contribution was made in December 2021. The remaining contribution of Won 23.2 billion was made after a resolution by our affiliates’ board of directors in 2022. In addition, on July 15, 2022, the board of us and our affiliates decided to contribute 47.9 billion won for funding of the construction and operation of major campus facilities and completed the contribution by December 2022. The total amount of contributions after 2023 will be determined in consultation with the Government and KENTECH.

On March 2, 2022, KENTECH had entrance ceremony and proclaimed its vision with congratulations from the President of Republic of Korea. In 2023, KENTECH recruited a total of 109 students same as in 2022.

Currently, we are striving to adjust facility costs and tighten the budget of KENTECH as a part of improving our financial structure. In order to minimize potential financial risks, we plan to let the university generate its own profits too, by, for example, attracting development funds and research and development investments and commercializing new technology among other means. Despite our efforts and anticipated funding from the municipal and central governments, we cannot assure you that the magnitude of our expected or actual contribution to the university will not have material adverse effects on our profit margins, results of operations or cash flows.

Proposed Sale and Purchase of Equity Interests

KEPCO Engineering & Construction Co., Inc.

Pursuant to the Third Phase of the Public Institution Reform Plan announced by the Government in August 2008, we conducted the initial public offering of Korea Engineering and Construction Co., Inc., or KEPCO E&C formerly known as Korea Power Engineering Co., Ltd., in December 2009 for gross proceeds to us of Won 165 billion, following which we owned 77.9% of KEPCO E&C’s shares. In furtherance of the Public Institution Reform Plan and to improve our financial profile, we sold our equity interests representing 3.1%, 4.0%, 4.5% and 0.54% of KEPCO E&C shares in November 2011, December 2013, December 2014 and December 2016, respectively, in each case to third party investors. As part of our financial stabilization plan, on June 24, 2022, our board of directors decided additional sale of KEPCO E&C shares. Consequently, we selected three financial advisors on September 15, 2022 and are discussing transaction schedule with them. We currently hold a 65.77% equity interest in KEPCO E&C.

Korea Electric Power Industrial Development Co., Ltd.

In 2003, we privatized Korea Electric Power Industrial Development, or KEPID, formerly our wholly-owned subsidiary, by selling 51.0% of its equity interest to Korea Freedom Federation. Pursuant to the Fifth Phase of the Public Institution Reform Plan announced by the Government in 2009, we sold 20% of the KEPID shares through additional listing. Although we had originally planned to sell the remaining 29% as well, we are currently working on converting KEPID into a public institution to transition its non-permanent employees to permanent employees in light of the Government’s guideline promoting the transition of non-permanent employees to permanent employees in the public sector. Acquisition by us is essential for the designation of KEPID as a public institution by the Government. The Committee for Management of Public Institutions pursuant to the Act on the Management of Public Institutions approved the updated plan on sales of KEPID shares on October 30, 2022. As a result, we and our five subsidiaries are now working on reacquiring the KEPID shares we previously sold.

Cyber Security

terror incident. Hackers hacked into the computer network of former KHNP employees and threatened to shut down certain of KHNP’s nuclear plants. The hacking incident did not jeopardize our nuclear operation in any material respect and none of the stolen information was material to our nuclear operation or the national nuclear policy. In response to such incident, we and our subsidiaries have further bolstered anti-hacking and other preventive and remedial measures in relation to potential cyber terror.

In the past, cyber-attacks were mostly unspecified attacks, but the recent trend has been shifting towards more targeted and intelligent attacks, such as ransomware that encrypts a victim’s files, whereupon the attacker demands a ransom from the victim to restore access to the data upon payment. In particular, non-face-to-face business environment due to COVID-19 has led to more sophisticated phishing e-mail attacks that impersonate service providers and acquaintances. In order to effectively respond to these cyber threats, we have established a cyber security management system which is called ‘Cybersecurity GRC (Governance, Risk-management, Compliance) system’ and it is the first implementation case among Korean public corporations. We are also continuously implementing prevention and response activities. In addition, specialized education and training are being conducted to foster cybersecurity experts, and the latest information protection system is being established and our cooperation with the Government is being strengthened. In accordance with laws and regulations, we have established and implemented a cybersecurity management system, and is receiving regular inspections from the Government on the prevention and response status against cyberattacks and threats.

Since 2021, we have formed a team in collaboration with the National Intelligence Service and other institutions to participate in the international cyber-attack and defense exercise (Locked Shields) hosted by the NATO Cooperative Cyber Defense Center of Excellence. By participating in the exercise, we were able to enhance our ability to collaborate against cyberattacks on critical infrastructure. In addition, since 2021, for the first time as a public corporation, we have hosted annually the Electric Sector Cyber Security Contest, in which more than 20 organizations, including generation subsidiaries, universities, and high schools, participate. By hosting this competition, we are bolstering our capacity to respond to cyberattacks on power grids jointly with generation subsidiaries and laying the groundwork for attracting skilled information security personnel.

In 2021, we introduced personal information pseudonym processing system. In order to prevent the leakage of personal information, we have also implemented Digital Rights Management (DRM) and a personal information detection solution on our computers. To strengthen personal information protection, we assigned one employee to personal information protection in 2022, implemented a personal information detection solution used in data transmission between internal and external networks, and established a personal information exposure detection system that automatically detects whether personal information is present or exposed on an Internet website.

KHNP is also continuing to strengthen our security management system by maintaining the international standard security standard, ISO27001, and the Korean standard, Personal Information & Information Security Management System certification. In September 2019, KHNP has established an organization dedicated to nuclear control security in accordance with the Government’s strengthened information security regulation. Also, in 2023, KHNP established the Control System Security Section within the Cyber Security Control Center to strengthen cyber security response capabilities.

In anticipation of the amendment of the Act on Promotion of Information and Communications Network Utilization and Information Protection in January 2020, we designated in December 2019 a Chief Information Security Officer (“CISO”) who is dedicated to cyber security management. By the end of 2020, we reorganized our security management organization to enhance its independence by transferring it from being under our Safety and Security Department to being directly under our Co-prosperity and Cooperation Division. Under further amendment to the Act on Promotion of Information and Communications Network Utilization and Information Protection in December 2021, our generation subsidiaries also designated a CISO and reported their designation to the Ministry of Science and ICT of the Government.

Item 4.C. Organizational Structure

As of December 31, 2022, we have 161 subsidiaries, 96 associates and 105 joint ventures (not including any special purpose entities).

Subsidiaries

Our wholly-owned six generation subsidiaries are KHNP, KOSEP, KOMIPO, KOWEPO, KOSPO and EWP. Our non-generation subsidiaries include KEPCO E&C, KEPCO KPS, KEPCO NF, and KEPCO KDN. For a full list of our subsidiaries, including foreign subsidiaries, and their respective jurisdiction of incorporation, please see Exhibit 8.1 attached to this annual report.

Associates and Joint Ventures

An associate is an entity over which we have significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint ventures) have rights to the net assets of the arrangement.

The table below sets forth each of our associates and joint ventures as of December 31, 2022 by name, the percentage of our shareholdings and their principal activities.


	Ownership (%)		Principal Activities
Associates:
Korea Gas Corporation		20.47	Importing and wholesaling LNG
Korea Electric Power Industrial Development Co., Ltd.		29.00	Electricity metering and others
YTN Co., Ltd.⁽¹⁾		21.43	Broadcasting
Gangwon Wind Power Co., Ltd.⁽²⁾		15.00	Power generation
Hyundai Green Power Co., Ltd.		29.00	Power generation equipment consignment and operation service
Korea Power Exchange⁽³⁾		100.00	Management of power market and others
Taebaek Wind Power Co., Ltd.⁽²⁹⁾		60.00	Power generation
Taebaek Guinemi Wind Power Co., Ltd.⁽²⁹⁾		67.25	Power generation
Daeryun Power Co., Ltd.⁽²⁾		6.85	Power generation
KNH Solar Co., Ltd.		27.00	Power generation
SPC Power Corporation⁽³⁰⁾		38.00	Power generation
Gemeng International Energy Co., Ltd.		34.00	Power generation
PT. Cirebon Electric Power		27.50	Power generation
KNOC Nigerian East Oil Co., Ltd.⁽⁴⁾		14.63	Resources development
KNOC Nigerian West Oil Co., Ltd.⁽⁴⁾		14.63	Resources development
PT Wampu Electric Power		46.00	Power generation
PT. Bayan Resources TBK		20.00	Resources development
S-Power Co., Ltd.		49.00	Power generation
Pioneer Gas Power Limited		38.50	Power generation
Eurasia Energy Holdings		40.00	Power generation and resources development
Xe-Pian Xe-Namnoy Power Co., Ltd.		25.00	Power generation
PT. Mutiara Jawa		29.00	Manufacturing and operating floating coal terminal
Samcheok Eco Materials Co., Ltd.⁽⁵⁾		2.35	Recycling fly ashes
Noeul Green Energy Co., Ltd.		29.00	Power generation


	Ownership (%)		Principal Activities
Goseong Green Power Co., Ltd.		29.00	Power generation
Gangneung Eco Power Co., Ltd.⁽²⁾		1.61	Power generation
Shin Pyeongtaek Power Co., Ltd.		40.00	Power generation
Haeng Bok Do Si Photovoltaic Power Co., Ltd.		28.00	Power generation
Dongducheon Dream Power Co., Ltd.⁽⁶⁾		33.61	Power generation
Jinbhuvish Power Generation Pvt. Ltd.⁽²⁾		5.16	Power generation
Daejung Offshore Wind Power Co., Ltd.		46.59	Power generation
GS Donghae Electric Power Co., Ltd.		34.00	Power generation
Daegu Photovoltaic Co., Ltd.		29.00	Power generation
Busan Green Energy Co., Ltd.		29.00	Power generation
Gunsan Bio Energy Co., Ltd.⁽²⁾		18.87	Power generation
Hansuwon KNP Co., Ltd.		28.98	Electric material agency
Korea Electric Power Corporation Fund⁽⁷⁾		98.09	Developing electric enterprises
Energy Infra Asset Management Co., Ltd.⁽²⁾		9.90	Asset management
Daegu clean Energy Co., Ltd.		28.00	Renewable power generation
Yaksu ESS Co., Ltd.		29.00	Installing ESS related equipment
Nepal Water & Energy Development Company Private Limited⁽⁸⁾		69.06	Construction and operation of utility plant
Gwangyang Green Energy Co., Ltd.		20.00	Power generation
PND Solar Co., Ltd.		29.00	Power generation
Hyundai Eco Energy Co., Ltd.⁽²⁾		19.00	Power generation
YeongGwang Yaksu Wind Electric Co., Ltd.⁽²⁾		9.63	Power generation
Green Energy Electricity Generation Co., Ltd.		29.00	Power generation
Korea Energy Solutions Co., Ltd.		20.00	R & D
ITR Co., Ltd.		20.00	R & D
Structure test network Co., Ltd.		20.00	Technical testing and consulting
Namjeongsusang Solar Power Operation Co., Ltd.⁽⁹⁾		15.00	Power generation
Indeck Niles Development, LLC		50.00	Power generation
Indeck Niles Asset Management, LLC		33.33	Power generation
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1		49.00	Holding company
Suwon New Power Co., Ltd.		39.90	Power generation
Gwangbaek Solar Power Investment Co., Ltd.		44.00	Power generation
Go deok Clean Energy Co., Ltd.		40.00	Fuel cell generation
SureDataLab Co., Ltd.		23.95	R & D
SEP Co., Ltd.		21.26	R & D
Hankook Electric Power Information Co., Ltd.⁽¹³⁾		16.49	R & D
Tronix Co., Ltd.⁽¹³⁾		12.50	R & D
O2&B Global Co., Ltd.		20.00	R & D
Muan Sunshine Solar Power Plant Co., Ltd.		20.00	Power generation
Bigeum Resident Photovoltaic Power Co., Ltd.		29.90	Power generation
Goesan Solar Park Co., Ltd.		29.00	Power generation
Saemangeum Heemang Photovoltaic Co., Ltd.		35.00	Power generation
Bitgoel Eco Energy Co., Ltd.		49.25	Power generation
Jeju Gimnyeong Wind Power Co., Ltd.		30.00	Power generation
Seoroseoro Sunny Power Plant Co., Ltd.		42.58	Power generation
Muan Solar Park Co., Ltd.		20.00	Power generation
YuDang Solar Co., Ltd.		20.00	Power generation


	Ownership (%)		Principal Activities
Anjwa Smart Farm & Solar City Co., Ltd.		20.00	Power generation
Daewon Green Energy Co., Ltd.		25.36	Power generation
G.GURU Co., Ltd.		24.65	R & D
UD4M Co., Ltd.⁽¹⁰⁾		12.50	R & D
Dongbu Highway Solar Co., Ltd.		20.00	Power generation
Seobu Highway Solar Co., Ltd.		20.00	Power generation
Korea Energy Data Co., Ltd.		29.37	R & D
Gangneung Sacheon Fuel Cell Co., Ltd.		41.00	Power generation
Kosture Co., Ltd.⁽²⁾		0.82	Coal recycling business
Taebaek Gadeoksan Wind Power Co., Ltd.		34.00	Power generation
Chuncheon Green Energy Co., Ltd.		45.00	Power generation
Yeomsubong Wind Power Co., Ltd.⁽¹¹⁾		3.81	Power generation
Yeongyang Wind Power Corporation II		30.00	Power generation
Haeparang Energy Co., Ltd.		25.00	Power generation
Saemangeum Sebit Power Plant Co., Ltd.⁽¹²⁾		63.33	Power generation
Boulder Solar III, LLC		30.00	Power generation
PlatformN. Co., Ltd.		29.58	R & D
PT. Cirebon Energi Prasarana⁽⁹⁾		10.00	Power generation
Green Radiation Co., Ltd.⁽¹³⁾		10.00	R & D
Future Convergence Technology Laboratory. Co., Ltd.		20.12	R & D
SC E&G. Co,. Ltd.		20.00	R & D
Wang San Engineering. Co,. Ltd.		20.00	R & D
ACE		20.00	R & D
Environment and Energy Co., Ltd.⁽¹³⁾		10.54	R & D
Santiago Solar Power SpA		50.00	Power generation
Yanggu Floating Photovoltaic Power Plant Inc.		29.00	Power generation

Joint Ventures:
KEPCO-Uhde Inc.⁽¹⁴⁾		52.80	Power generation
Shuweihat Asia Power Investment B.V.		49.00	Holding company
Shuweihat Asia Operation & Maintenance Company⁽¹⁴⁾		55.00	Maintenance of utility plant
Waterbury Lake Uranium L.P.⁽¹⁵⁾		32.59	Resources development
ASM-BG Investicii AD		50.00	Power generation
RES Technology AD		50.00	Power generation
KV Holdings, Inc.⁽³⁰⁾		40.00	Power generation
KEPCO SPC Power Corporation^(14,30)		75.20	Construction and operation of utility plant
Gansu Datang Yumen Wind Power Co., Ltd.		40.00	Power generation
Datang Chifeng Renewable Power Co., Ltd.		40.00	Power generation
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		40.00	Power generation
Rabigh Electricity Company		40.00	Power generation
Rabigh Operation & Maintenance Company Limited		40.00	Maintenance of utility plant
Jamaica Public Service Company Limited		40.00	Power generation
KW Nuclear Components Co., Ltd.		45.00	Manufacturing
Busan Shinho Solar Power Co., Ltd.		25.00	Power generation
Global Trade Of Power System Co., Ltd.⁽¹⁶⁾		29.00	Exporting products and technology of small or medium business by proxy


	Ownership (%)		Principal Activities
Expressway Solar-light Power Generation Co., Ltd.⁽¹⁷⁾		50.00	Power generation
Amman Asia Electric Power Company⁽¹⁴⁾		60.00	Power generation
KAPES, Inc.⁽¹⁴⁾		51.00	R & D
Honam Wind Power Co., Ltd.		29.00	Power generation
Korea Power Engineering Service Co., Ltd.		29.00	Construction and service
Chun-cheon Energy Co., Ltd.		29.90	Power generation
Yeonggwangbaeksu Wind Power Co., Ltd.⁽¹⁶⁾		15.00	Power generation
Nghi Son 2 Power LLC		50.00	Power generation
Kelar S.A.⁽¹⁴⁾		65.00	Power generation
PT. Tanjung Power Indonesia		35.00	Power generation
Incheon New Power Co., Ltd.⁽¹⁸⁾		29.00	Power generation
Seokmun Energy Co., Ltd.		29.00	Power generation
Daehan Wind Power PSC		50.00	Power generation
Barakah One Company⁽¹⁹⁾		18.00	Power generation
Nawah Energy Company⁽¹⁹⁾		18.00	Operation of utility plant
Momentum		33.33	International thermonuclear experimental reactor construction management
Daegu Green Power Co., Ltd.⁽²⁰⁾		29.00	Power generation
Yeonggwang Wind Power Co., Ltd.		46.00	Power generation
Chester Solar IV SpA		45.00	Power generation
Chester Solar V SpA		45.00	Power generation
Diego de Almagro Solar SpA		45.00	Power generation
South Jamaica Power Company Limited		20.00	Power generation
Daesan Green Energy Co., Ltd.		35.00	Power generation
RE Holiday Holdings LLC		50.00	Power generation
RE Pioneer Holdings LLC		50.00	Power generation
RE Barren Ridge 1 Holdings LLC		50.00	Power generation
RE Astoria 2 LandCo LLC		50.00	Power generation
RE Barren Ridge LandCo LLC		50.00	Power generation
Laurel SpA		45.00	Power generation
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd.⁽¹⁶⁾		12.37	Power generation
Chile Solar JV SpA		50.00	Power generation
Cheong-Song Noraesan Wind Power Co., Ltd.⁽¹⁵⁾		29.01	Power generation
Chester Solar I SpA		45.00	Power generation
Solar Philippines Calatagan Corporation		38.00	Power generation
Saemangeum Solar Power Co., Ltd.⁽²¹⁾		81.01	Power generation
Chungsongmeon BongSan wind power Co., Ltd.⁽¹⁶⁾		29.00	Power generation
Jaeun Resident Wind Power Plant Co., Ltd.⁽¹⁶⁾		29.00	Power generation
DE Energia SpA		49.00	Power generation
Dangjin Eco Power Co., Ltd.		34.00	Power generation
Haemodum Solar Co., Ltd.		49.00	Power generation
Yangyang Wind Power Co., Ltd.		50.00	Power generation
Horus Solar, S.A. De C.V.⁽²²⁾		14.95	Renewable power generation
Recursos Solares PV De Mexico II, S.A. De C.V.⁽²²⁾		14.95	Renewable power generation
Sunmex Renovables, S.A. De C.V.⁽²²⁾		14.95	Renewable power generation


	Ownership (%)		Principal Activities
Stavro Holding II A.B.		20.00	Holding company
Solaseado Solar Power Co., Ltd.		39.00	Power generation
Yeongam Solar Power Co., Ltd.⁽¹⁶⁾		19.00	Power generation
Samsu Wind Power Co., Ltd.⁽¹⁶⁾		19.00	Power generation
Pulau Indah Power Plant Sdn. Bhd.		25.00	Power generation
NH-Amundi Global Infrastructure Investment Private Investment Trust 21		29.53	Holding company
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream⁽¹⁴⁾		90.00	Holding company
PT Barito Wahana Tenaga		30.61	Power generation
Cheongna Energy Co., Ltd.⁽²¹⁾		50.10	Generating and distributing vapor and hot/cold water
Naepo Green Energy Co., Ltd.		29.20	Power generation
Dayone Energy Co., Ltd.⁽²³⁾		30.66	Power generation
OneEnergy Asia Limited		40.00	Power generation
KAS Investment I LLC⁽¹⁵⁾		29.89	Holding company
KAS Investment II LLC⁽¹⁵⁾		29.89	Holding company
Energyco Co., Ltd.		29.00	Power generation
CAES, LLC		36.00	Holding company
Hapcheon Floating Photovoltaic Power Plant Inc.⁽¹⁶⁾		49.00	Power generation
Busan Industrial Solar Power Co., Ltd.		28.02	Power generation
Bitsolar Energy Co., Ltd.		27.10	Power generation
Pulau Indah O&M Sdn. Bhd.⁽²⁴⁾		60.00	Power generation
Guadalupe Solar SpA⁽²⁴⁾		60.00	Power generation
Omisan Wind Power Co., Ltd.		42.00	Power generation
Foresight Iberian Solar Group Holding, S.L.⁽²⁴⁾		75.00	Power generation
Yeongwol Eco Wind Co., Ltd.		29.00	Power generation
Gurae Resident Power Co., Ltd.		29.00	Power generation
Cheongju Eco Park Co., Ltd.		29.00	Power generation
Enel X Midland Photovoltaic, LLC		20.00	Power generation
Geumsungsan Wind Power Co., Ltd.		29.00	Power generation
KEPCO KPS CARABAO Corp.⁽¹⁸⁾		40.00	Utility plant maintenance
Prime Swedish Holding AB		45.00	Holding company
Goheung New Energy Co., Ltd.		46.15	Power generation
Gunsan Land Solar Co., Ltd.⁽²⁴⁾		75.29	Power generation
CapMan Lynx SCA, SICAR		50.00	Holding company
International Offshore Power Transmission Holding Company Limited		35.00	Undersea transmission network operation
Pyeongchang Wind Power Co., Ltd.⁽²⁸⁾		58.00	Power generation
Eumseong Eco Park Co., Ltd.		29.00	Power generation
Songsan Green Energy Co., Ltd.⁽¹⁵⁾		25.00	Fuel cell generation
Changwon Nu-ri Energy Co., Ltd.⁽¹⁵⁾		33.33	Fuel cell generation
Hasami Wind Farm Corporation		29.00	Power generation
PungBack Wind Farm Corporation⁽²⁶⁾		32.89	Power generation
Trumbull Asset Management, LLC⁽²⁷⁾		78.00	Holding company
S-Power Chile SpA		50.00	Power generation
Seungmun Green Energy		33.00	Power generation
Seobusambo highway photovoltaics Co., Ltd.⁽²⁵⁾		80.00	Power generation

Notes:

(1)	We are planning to sell its investments in YTN Co., Ltd. based on the resolution of the Board of Directors on November 23, 2022, but investments in YTN Co., Ltd. are not classified as assets held-for-sale as we haven’t started the active selling procedures as of December 31, 2022.

(2)	The effective percentage of ownership is less than 20%. However, we can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of our financial and operating policy of the board of directors.

(3)

The effective percentage of ownership is 100%. However, the Government regulates our ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and our other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. We can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

(4)

The effective percentage of ownership is less than 20%. However, we can exercise significant influence by virtue of its contractual right to appoint one out of four members of the steering committee of the entity. Moreover, we have significant financial transactions, which can affect its significant influence on the entity.

(5)	Although the nominal percentage of ownership is 2.35%, the effective percentage of ownership is 25.54%, considering redeemable convertible preferred stock as a liability component.

(6)	The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(7)	The effective percentage of ownership is more than 50% but we do not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(8)	The effective percentage of ownership is more than 50% but we do not hold control over the entity according to the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(9)	The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because we exercise significant influence over the decisions related to finance and operation.

(10)

The effective percentage of ownership is 14.29% due to the acquisition of treasury stocks. The effective percentage of ownership is less than 20%. However, we exercise significant influence over the decisions related to finance and operation by virtue of right to nominate directors to the board of directors of the entity.

(11)	The effective percentage of ownership decreased due to the disproportionate paid-in capital increase, and the effective percentage of ownership is less than 20%. However, we exercise significant influence over all decisions related to finance and operation.

(12)

The effective percentage of ownership decreased due to the disproportionate paid-in capital increase during the year ended December 31, 2022. The effective percentage of ownership is more than 50% but we do not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(13)	The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because we exercise significant influence over the entity.

(14)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and we can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

(15)	The effective percentage of ownership is less than 50%. However, the entity is classified as a joint venture, because all consent was required to make decisions on related activities.

(16)	According to the shareholders’ agreement, the parties have joint control over all decisions related to finance and operation. Accordingly, the entity is classified as joint ventures.

(17)	The effective percentage of ownership increased due to the disproportionate capital reduction of financial investors during the year ended December 31, 2022.

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(18)	The joint arrangement which we have joint control is structured through a separate company. The parties have joint control over the joint arrangement are classified as joint ventures, judging that they have rights to the net assets of the arrangement.

(19)	The effective percentage of ownership is less than 20%. However, decisions in relevant activities must be agreed by ownership parties. Accordingly, the entity is classified as joint ventures.

(20)	Although the nominal percentage of ownership is 29%, the effective percentage of ownership is 54.24%, considering the interest of financial investors as a liability component.

(21)	The effective percentage of ownership is more than 50%. However, decisions in relevant activities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(22)	The effective percentage of ownership is less than 20%. However, according to the shareholders’ agreement, decisions related principal operation must be agreed by all ownership parties. Accordingly, we can exercise significant influence.

(23)

According to the Dayone Energy Co., Ltd. Investment Agreement signed in March 2011, we have a commitment to guarantee principal and certain returns on shares of Dayone Energy Co., Ltd. held by NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation. Since NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation have put option regarding their share of the entity, we were deemed to have acquired an additional 15.64% stake. As a result, the effective percentage of ownership is 46.3% in the current and prior period. In accordance with shareholders’ agreement signed during the current period, we have joint control with other investors in making important financial and operation decisions, so it has been reclassified from an associate to a joint venture.

(24)	The effective percentage of ownership is more than 50%. However, decisions in relevant activities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(25)

Due to the changes in the agreement, we lost its control over the entity. Accordingly, the entity is reclassified to a joint venture from a subsidiary. Although the effective percentage of ownership is more than 50%, decisions in relevant activities must be agreed by all members of the board of directors.

(26)	The effective percentage of ownership is 37%, considering potential common stock.

(27)	The effective percentage of ownership is more than 50%. However, decisions in relevant activities must be agreed by all members of the board of directors. Accordingly, the entity is classified as a joint venture.

(28)	After additional acquisition of the shares, the effective percentage of ownership is more than 50%. However, decisions in relevant activities must be agreed by all members of the board of directors. Accordingly, the entity is classified as a joint venture.

(29)

After additional acquisition of the shares, the effective percentage of ownership is more than 50%. However, we do not hold control over relevant business while it exercises significant influence by participating in the board of directors by the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(30)	We are planning to sell its investment in SPC Power Corporation, KEPCO SPC Power Corporation, KV Holdings, Inc. and time or proceeds of sales are not specified as of December 31, 2022.

Item 4.D. Property, Plant and Equipment

Our property consists mainly of power generation, transmission and distribution equipment and facilities in Korea. See Item 4.B. “Business Overview—Power Generation,” “—Transmission and Distribution” and “—Capital Investment Program.” In addition, we own our corporate headquarters building complex at 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea. As of December 31, 2022, the net book value of our property, plant and equipment was Won 177,865 billion. As of December 31, 2022, investment property, which is accounted for separately from our property, plant and equipment, amounted to Won 208 billion. No significant amount of our properties is leased. There are no material encumbrances on our properties, including power generation, transmission and distribution equipment and facilities.

Pursuant to a Government plan announced in 2005, which mandated relocation of the headquarters of select government-invested enterprises from the Seoul metropolitan area to other provinces in Korea as part of an initiative to foster balanced economic growth in the provinces, we, our generation subsidiaries and our certain

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subsidiaries relocated our respective headquarters to the designated locations during 2014 and 2015. Our headquarters are currently located in Naju in Jeollanam-do, while the headquarters of our six generation subsidiaries and other subsidiaries are various cities outside of Seoul across Korea.

In connection with the relocation of our headquarters, in September 2014 we entered into an agreement to sell the property housing our prior headquarters to a consortium consisting of members of the Hyundai Motor group for Won 10,550 billion through an open bidding. The sale was completed in September 2015.

During 2022, we completed the disposal of 276 properties on a separate basis (including residential properties, storage spaces, and substation lots that are located in Korea) which are not directly related to our operations for an aggregate sale price of approximately Won 167 billion. The book value of such properties amounted to Won 51 billion, representing 0.6% of our total real properties as of December 31, 2022. The foregoing sales reflect our ongoing efforts to improve our financial soundness through related financial stabilization plan and enhance our management efficiency, selling noncore properties that have no direct relations to electricity facilities.

ITEM 4A. UNRESOLVED STAFF COMMENTS

We do not have any unresolved comments from the SEC staff regarding our periodic reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

ITEM 5.

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

You should read the following discussion on our operating and financial review and prospects together with our consolidated financial statements and the related notes which appear elsewhere in this annual report. Our results of operations, financial condition and cash flows may materially change from time to time, for reasons including various policy initiatives (including changes to the Restructuring Plan) by the Government in relation to the Korean electric power industry, and accordingly our historical performance may not be indicative of our future performance. See Item 4.B. “Business Overview—Restructuring of the Electric Power Industry in Korea” and Item 3.D. “Risk Factors—Risks Relating to KEPCO—The Government may adopt policy measures to substantially restructure the Korean electric power industry or our operational structure, which may have a material adverse effect on our business, operations and profitability.”

Item 5.A. Operating Results

Overview

We are a predominant market participant in the Korean electric power industry, and our business is heavily regulated by the Government, including with respect to the rates we charge to customers for the electricity we sell. In addition, our business requires a high level of capital expenditures for the construction of electricity generation, transmission and distribution facilities and is subject to a number of variable factors, including demand for electricity in Korea and fluctuations in fuel costs, which are in turn impacted by the movements in the exchange rates between the Won and other currencies.

If fuel prices were to rise substantially and rapidly in the future, such rise may have a material adverse effect on our results of operations and profitability. For example, the net losses between 2018 and first half of 2019 and between 2021 and 2022, were largely due to sustained rises in fuel costs that were neither timely nor sufficiently offset by a corresponding rise in electricity tariff rates. In part to address these concerns, the Government from time to time increases the electricity tariff rates. However, such increases may be insufficient to fully offset the adverse impact from the rise in fuel costs, and since such increases typically require lengthy public deliberations in order to be implemented, the tariff increases often occur with a significant time lag and as a result our results of operations and cash flows may suffer. We have amended the basic supply terms and conditions with the

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approval of the Ministry of Trade, Industry and Energy on December 17, 2020 to implement a new cost pass-through tariff system that reinforces the correlation between the costs we incur and the tariff we charge to our customers, among other changes. Such tariff system has been applied to the electricity rate since January 1, 2021 in accordance with the amendment. For further information, please see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.”

In addition, we expect complying with the Government environmental-related initiatives and regulations to continue to involve significant costs and resources on our part, which may adversely affect our results of operation, financial condition and cash flows. For example, we have recognized Won 332 billion in 2020, Won 548 billion in 2021 and Won 387 billion in 2022 as cost for greenhouse gas emission allowances. The increase in 2021 compared to 2020 was due to the strengthened regulations regarding coal-fired power generation, which resulted in reduced allowances received free of charge from the Government. The decrease in 2022 compared to 2021 was due to a decreased unit price of greenhouse gas emission and an effect from the pre-submission of greenhouse gas emission allowances for the next year, which has been implemented by the Korean government for the first time. Such decrease resulting from the new pre-submission, where the date of submission has been expedited to the end of each year from June of the next year, is an isolated incident caused by the shift in timing at which we would submit and incur the cost for greenhouse gas emission allowances under the new plan.

Furthermore, as we are required to supply increasing amount of renewable energy, we expect that the environmental-related risks will continue to increase.

The results of our operations are largely affected by the following factors:

•

demand for electricity;

•

electricity rates we charge to our customers;

•

fuel costs; and

•

the exchange rates of Won against other foreign currencies, in particular the U.S. dollar.

Demand for Electricity

Our sales are largely dependent on the level of demand for electricity in Korea and the rates we charge for the electricity we sell.

Demand for electricity in Korea grew at a compounded average rate of 1.0% per annum for the five years ended December 31, 2022. According to the Bank of Korea, the compounded growth rate for GDP was approximately 2.0% for the same period. The GDP growth rate was approximately -1.0%, 4.0% and 2.6% during 2020, 2021 and 2022, respectively.


	2018			2019			2020			2021			2022
Growth in GDP		2.7	%		2.0	%		(1.0	%)		4.0	%		2.6	%
Growth in electricity consumption		3.6	%		(1.1	%)		(2.2	%)		4.7	%		2.7	%

Demand for electricity may be categorized either by the type of its usage or by the type of customers. The following describes the demand for electricity by the type of its usage, namely, industrial, commercial and residential:

•

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•

Demand for electricity from the commercial sector depends largely on the level and scope of commercial activities in Korea. Demand for electricity from the commercial sector increased to 127,193 gigawatt hours in 2022, representing a 6.4% increase from 2021, largely due to the effect of easing of COVID-19 quarantine measures on the growth of private consumption in the hotel and restaurant industries.

•

Demand for electricity from the residential sector is largely dependent on population growth and use of heaters, air conditioners and other electronic appliances. Demand for electricity from the residential sector increased to 80,996 gigawatt hours in 2022, representing a modest 1.4% increase compared to 2021, largely due to the fact that the demand has already gone up significantly during the COVID-19 period in 2020 and 2021. For a discussion on demand by the type of customers, see Item 4.B. “Business Overview—Sales and Customers—Demand by the Type of Usage.”

Since our inception, we have had the predominant market share in terms of electricity generated in Korea. As for electricity we purchase from the market for transmission and distribution to our end-users, our generation subsidiaries accounted for 72.6%, 70.8% and 70.4% in 2020, 2021 and 2022, respectively, while the remainder was accounted for by independent power producers. As for transmission and distribution of electricity, we have historically handled, expect to continue to handle, substantially all of such activities in Korea.

We expect that we will continue to have a dominant market share in the generation, transmission and distribution of electricity in Korea for the foreseeable future, absent any substantial changes to the Restructuring Plan or other policy initiatives by the Government in relation to the Korean electric power industry, or an unexpected level of market penetration by independent power producers, localized electricity suppliers under the Community Energy System or increases in direct PPA. However, our market dominance in the electricity distribution in Korea may face potential erosion in light of the recent Proposal for Adjustment of Functions of Public Institutions (Energy Sector) announced by the Government in June 2016. This proposal contemplates a gradual opening of the electricity trading market to the private sector although no detailed roadmap has been provided for such opening. It is currently premature to predict to what extent, or in what direction, the liberalization of the electricity trading market will happen. Nonetheless, any significant liberalization of the electricity trading market may result in substantial reduction of our market share in electricity distribution in Korea, which would have a material adverse effect on our business, results of operation and cash flows. See Item 4.B. “Business Overview—Competition.”

Electricity Rates

Under the Electric Utility Act and the Price Stabilization Act, electricity rates are established at the level that would enable us to recover our fair operating costs as well as receive a fair investment return on capital used in our operations. From time to time, our actual rate of return on invested capital may differ significantly from the fair investment return that was assumed for the purposes of electricity tariff approvals, for reasons, among others, related to movements in fuel prices, exchange rates and demand for electricity that differs from what is assumed for determining our fair investment return. As of January 1, 2021, we implemented a new tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers, among other changes. However, even under the new system, our ability to pass on fuel and other cost increases to our customers may be limited due to the regulation of the Government on the electricity rates. For further discussion of the fair operating costs, the fair investment return and the new tariff system, see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.”

Fuel Costs

Our results of operations are also significantly affected by the cost of producing electricity, which is subject to a variety of factors, including, in particular, the cost of fuel.

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Cost of fuel in any given year is a function of the volume of fuels consumed and the unit fuel cost for the various types of fuel used for generation of electricity which affects the cost structure for both our generation subsidiaries and independent power producers from whom we purchase electric power. A significant change in the unit fuel costs materially impacts the costs of electricity generated by our generation subsidiaries, which mainly comprise our fuel costs under the cost of sales, as well as, to our knowledge, the costs of electricity generated by the independent power producers that sell their electricity to us (see Item 4.B. “Business Overview—Purchase of Electricity—Cost-based Pool System”), which mainly comprise our purchased power costs under the cost of sales. We are however unable to provide a comparative analysis since the unit fuel cost information for independent power producers and their cost structures are proprietary information.

Fuel costs constituted 28.6%, 30.6% and 34.4% of our cost of sales, and the ratio of fuel costs to our sales was 25.5%, 32.5% and 49.1% in 2020, 2021 and 2022, respectively. Substantially all of the fuel (except for anthracite coal) used by our generation subsidiaries is imported from outside of Korea at prices determined in part by prevailing market prices in currencies other than Won. In addition, our generation subsidiaries purchase a significant portion of their fuel requirements under contracts with limited quantity and duration. Pursuant to the terms of our long-term supply contracts, prices are adjusted from time to time subject to prevailing market conditions. See Item 4.B. “Business Overview—Fuel Sources and Requirements.”

Coal accounted for 45.3%, 43.1% and 40.2% of our fuel requirements in 2020, 2021 and 2022, respectively. Nuclear generation accounted for 40.6% and 39.5% and 43.1% of our fuel requirements in 2020, 2021 and 2022, respectively. LNG accounted for 10.6%, 13.7% and 13.1% of our fuel requirements in 2020, 2021 and 2022, respectively. Oil accounted for 0.4%, 0.4% and 0.1% of our fuel requirements in 2020, 2021 and 2022, respectively. In each case, the fuel requirements are measured by the amount of electricity generated by us and our generation subsidiaries and do not include electricity purchased from independent power producers. In order to ensure stable supplies of fuel materials, our generation subsidiaries enter into long-term and medium-term contracts with various suppliers and supplement such supplies with fuel materials purchased on spot markets.

The price of bituminous coal, which represents our largest fuel requirement, fluctuates significantly from time to time. In 2022, approximately 91.8% of the bituminous coal requirements of our generation subsidiaries were purchased under long-term contracts and the remaining 8.2% purchased on the spot market. The average weekly spot price of “free on board” Newcastle coal 5500 NAR (Net As Received) published through Korea Mineral Resource Information Service by Korea Mine Rehabilitation and Mineral Resources Corporation increased from US$84.77 per ton in 2021 to US$179.13 per ton in 2022 and decreased to US$123.26 per ton as of April 7, 2023. If the price of bituminous coal were to sharply rise, our generation subsidiaries may not be able to secure their respective bituminous coal supplies at prices commercially acceptable to them. In addition, any significant interruption or delay in the supply of fuel, bituminous coal in particular, from any of their suppliers could cause our generation subsidiaries to purchase fuel on the spot market at prices higher than contracted, resulting in an increase in fuel cost.

From 2020 to 2022, the prices of oil and LNG fluctuated significantly. The prices of oil and LNG are substantially dependent on the price of crude oil, and according to Bloomberg (Bloomberg Ticker: PGCRDUBA), the average daily spot price of Dubai crude oil increased from US$42.21 per barrel in 2020 to US$69.01 per barrel in 2021 and increased to US$97.03 per barrel in 2022 and decreased to US$85.25 per barrel as of April 7, 2023. While there was a significant increase in the price of crude oil recently, there is no guarantee that this trend will continue.

Nuclear power has a stable and relatively low-cost structure and forms a significant portion of electricity supplied in Korea. Due to significantly lower unit fuel costs compared to those for thermal power plants, our nuclear power plants are generally operated at full capacity with only routine shutdowns for fuel replacement and maintenance, with limited exceptions. In case of shortage in electricity generation resulting from stoppages of the nuclear power plants, we seek to make up for such shortage with power generated by our thermal power plants.

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Because the Government heavily regulates the rates we charge for the electricity we sell (see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates”), our ability to pass on such cost increases to our customers is limited.

Movements of the Won against the U.S. Dollar and Other Foreign Currencies

Korean Won has fluctuated significantly against major currencies from time to time. For fluctuations in exchange rates, see pages 1-2 of this annual report. In particular, Korean Won underwent substantial fluctuations during the recent global financial crisis, and remains subject to significant volatility. The Noon Buying Rate per one U.S. dollar increased from Won 1,086.1 on December 31, 2020 to Won 1,188.6 on December 31, 2021 and further increased to Won 1,260.2 on December 31, 2022, and further increased to Won 1,319.1 as of April 7, 2023. In 2021 and 2022, the Won generally depreciated against U.S. dollar and other foreign currencies, and such depreciation may result in a significant increase in the cost of fuel materials and equipment purchased from overseas as well as the cost of servicing our foreign currency debt. As of December 31, 2022, 14.7% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions was denominated in foreign currencies, principally U.S. dollars. The prices for substantially all of the fuel materials and a significant portion of the equipment we purchase are stated in currencies other than Won, generally in U.S. dollars. Since a substantial portion of our revenues is denominated in Won, we must generally obtain foreign currencies through foreign currency-denominated financings or from foreign currency exchange markets to make such purchases or service such debt, fulfill our obligations under existing overseas investments and make new overseas investments. As a result, any significant depreciation of Won against U.S. dollar or other foreign currencies will have a material adverse effect on our profitability and results of operations. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The movement of Won against the U.S. dollar and other currencies may have a material adverse effect on us.”

Recent Accounting Changes

See Note 2. (5) to our consolidated financial statements included in this annual report for changes in accounting standards. We believe that these new and revised standards have no material impact on our consolidated financial statements.

Critical Accounting Policies

See Note 3 to our consolidated financial statements included in this annual report for significant accounting policies.

Consolidated Results of Operations

The selected consolidated financial data set forth below as of and for the years ended December 31, 2020, 2021 and 2022 have been derived from our audited consolidated financial statements which have been prepared in accordance with IFRS.

You should read the following data with the more detailed information contained in Item 18. “Financial Statements.” Historical results do not necessarily predict future results.


	2020		2021			2022			2022

	(rounded to billions of Won and millions of US$)⁽¹⁾
Sales	W	57,927	W	60,012		W	70,546		$	55,981
Cost of sales		51,804		63,644			100,904			80,071
Gross profit (loss)		6,122		(3,632	)		(30,358	)		(24,090	)
Selling and administrative expenses		2,678		2,876			3,009			2,388
Other income (expenses), net		619		776			883			701

106


	2020			2021			2022			2022

	(rounded to billions of Won and millions of US$)⁽¹⁾
Other gains (losses), net	W	35		W	9		W	243		$	193
Operating profit (loss)		4,098			(5,723	)		(32,241	)		(25,584	)
Finance income (expenses), net		(1,386	)		(1,843	)		(2,913	)		(2,312	)
Profit (loss) related to associates, joint ventures and subsidiaries		281			495			1,310			1,040
Profit (loss) before income tax		2,993			(7,072	)		(33,844	)		(26,856	)
Income tax benefit (expense)		(899	)		1,856			9,415			7,471
Profit (loss) for the period		2,094			(5,216	)		(24,429	)		(19,385	)
Other comprehensive income (loss)		(220	)		600			1,247			990
Total comprehensive income (loss)		1,874			(4,616	)		(23,182	)		(18,396	)

Note:

(1)	The financial information denominated in Won as of and for the year ended December 31, 2022 has been translated into U.S. dollars at the exchange rate of Won 1,260.18 to US$1.00, which was the Noon Buying Rate as of December 31, 2022.

2022 Compared to 2021

In 2022, our consolidated sales, which is principally derived from the sale of electric power, increased by 17.6% to Won 70,546 billion in 2022 from Won 60,012 billion in 2021 primarily reflecting an increase in sales of electric power. Our sale of electric power increased by 17.7% to Won 69,184 billion in 2022 from Won 58,801 billion in 2021 primarily due to increases in both the volume of electricity sold and the average unit sales price. The volume of electricity sold increased by 2.7% to 547,933 gigawatt hours in 2022 from 533,431 gigawatt hours in 2021 primarily due to a 1.6% increase in the volume of electricity sold to the industrial sector which represents the largest segment of electricity consumption in Korea to 296,036 gigawatt hours in 2022 from 291,333 gigawatt hours in 2021, and a 6.4% increase in the volume of electricity sold to the commercial sector which represents the second largest segment of electricity consumption in Korea to 127,193 gigawatt hours in 2022 from 119,550 gigawatt hours in 2021, coupled with a 1.4% increase in the volume of electricity sold to the residential sector to 80,996 gigawatt hours in 2022 from 79,915 gigawatt hours in 2021. The increase in the volume of electricity sold to the industrial sector was primarily due to an increase of industrial activities such as an increase in annual exports. The increase in the volume of electricity sold to the commercial sector was primarily due to the expansion of consumer expenditure, including from accommodation and restaurant businesses, following the easing of COVID-19 quarantine measures. The volume of electricity sold to the residential sector was increased only slightly because of the base effect of significant increase in sales during the COVID-19 period. Average unit sales price increased by 11.5% to Won 120.51 per kilowatt-hour in 2022 from Won 108.11 per kilowatt-hour in 2021 primarily due to an increase in each unit sales price in the commercial and industrial sector. Our sales of construction services decreased by 14.3% to Won 647 billion in 2022 from Won 755 billion in 2021 primarily due to a decrease in sales amount recorded from the ongoing construction of our nuclear complex construction projects in the United Arab Emirates as the construction projects progress over time.

Our consolidated cost of sales, which is principally derived from the purchase of power from independent power producers, raw materials used and depreciation, increased by 58.5% to Won 100,904 billion in 2022 from Won 63,644 billion in 2021 primarily due to 94.2% increase in power purchase, 86.7% increase in raw material used and 4.4% increase in depreciation.

Power purchase, which accounted for 41.6% and 34.0% of our cost of sales in 2022 and 2021, respectively, increased by 94.2% to Won 41,985 billion in 2022 from Won 21,619 billion in 2021 primarily due to increases in both quantity and the unit price of power purchase. The increased unit price of power purchase was mainly due to increased fuel costs.

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Raw materials used, which accounted for 34.5% and 29.3% of our cost of sales in 2022 and 2021, respectively, increased by 86.7% to Won 34,833 billion in 2022 from Won 18,660 billion in 2021 primarily due to increases in both fuel prices and the volume of electricity generated mainly in response to an increase in power demand.

Depreciation expense, excluding amortization of nuclear fuel charged to fuel costs in the amounts of Won 1,289 billion and Won 1,134 billion in 2022 and 2021, respectively, increased by 3.3% to Won 10,767 billion in 2022 from Won 10,418 billion in 2021 primarily due to an additional property, plant and equipment acquired in relation to the construction of new generation facilities pursuant to our capital investment program.

Other cost of sales decreased by 5.9% to Won 1,903 billion in 2022 from Won 2,023 billion in 2021 primarily due to a decrease in our greenhouse gas emission and related costs. For example, we have spent approximately Won 387 billion for the greenhouse gas emission allowances in 2022 compared to Won 548 billion in 2021. For further information, please see Item 4.B. “Business Overview—Environmental, Social and Governance Programs.”

As a cumulative result of the foregoing factors, our consolidated gross loss increased to Won 30,358 billion in 2022 from Won 3,632 billion in 2021, and our consolidated gross margin decreased to (43.0)% in 2022 from (6.1)% in 2021. The increase in our consolidated gross loss and decrease in consolidated gross margin were largely attributable to 58.5% increase in our consolidated cost of sales (which was mainly due to 94.2% increase in the power purchase costs, 86.7% increase in raw materials used, and 4.4% increase in depreciation expense) which substantially outpaced 17.6% increase in our consolidated sales which was primarily due to 2.7% increase in the volume of electricity sold and 11.5% increase in the average unit sales price.

Our consolidated selling and administrative expenses slightly increased by 4.6% to Won 3,009 billion in 2022 from Won 2,876 billion in 2021 largely due to an increase in taxes and dues and repairs and maintenance expense.

Our consolidated other income, net of expenses, increased by 13.8% to Won 883 billion in 2022 from Won 776 billion in 2021 mainly as a result of an increase in customer-paid facilities for electricity use.

Our consolidated net other gains increased to Won 243 billion in 2022 from Won 9 billion in 2021, mainly as a result of increase in gains on disposal of property, plant and equipment, and gains on foreign currency transactions.

As a cumulative effect of the foregoing factors, our consolidated operating loss increased to Won 32,241 billion in 2022 from Won 5,723 billion in 2021, and our consolidated operating margin decreased to (45.7)% in 2022 from (9.5)% in 2021. This was mainly due to increased fuel costs as a result of a higher price of LNG and other raw materials and increased power purchase expenses as a result of an increase in power demand and the unit price of power purchase due to an increase in the system marginal price of electricity, which increased significantly as a result of higher fuel costs.

Our consolidated finance expenses, net, increased by 58.1% to Won 2,913 billion in 2022 from Won 1,843 billion in 2021 primarily as a result of increased interest expense and losses on valuation of derivatives.

Our consolidated profit related to associates, joint ventures and subsidiaries increased by 164.6% to Won 1,310 billion in 2022 from Won 495 billion in 2021 primarily due to increased share in profit of Korea Gas Corporation, owing to increased LNG price.

As a cumulative effect of the foregoing factors, we recognized consolidated loss before income taxes of Won 33,844 billion in 2022 compared to consolidated loss before income taxes of Won 7,072 billion in 2021.

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Our income tax benefit increased to Won 9,415 billion in 2022 from Won 1,856 billion in 2021, largely as a result of the increase in our loss before income taxes. Our effective tax rate, which represents tax expense as a percentage of profit before income taxes, was not calculated because income tax benefit was recognized in 2022. See Note 41 to our consolidated financial statements included in this annual report.

As a cumulative result of the above factors, our consolidated loss increased to Won 24,429 billion in 2022 from Won 5,216 billion in 2021. Our consolidated net profit margin also decreased to (34.6)% in 2022 from (8.7)% in 2021. Our loss attributable to the owners of the company increased to Won 24,467 billion in 2022 from Won 5,305 billion in 2021.

Other comprehensive income increased to Won 1,247 billion in 2022 from Won 600 billion in 2021, largely due to an increase in the remeasurement of defined benefit liability and share of other comprehensive income of associates and joint ventures, net of tax.

As a cumulative result of the above factors, our consolidated total comprehensive loss increased to Won 23,182 billion in 2022 from Won 4,616 billion in 2021.

2021 Compared to 2020

In 2021, our consolidated sales, which is principally derived from the sale of electric power, increased by 3.6% to Won 60,012 billion in 2021 from Won 57,927 billion in 2020 primarily reflecting an increase in sales of electric power. Our sale of electric power increased by 3.7% to Won 58,801 billion in 2021 from Won 56,685 billion in 2020 primarily due to an increase in the volume of electricity sold. The volume of electricity sold increased by 4.7% to 533,431 gigawatt hours in 2021 from 509,270 gigawatt hours in 2020 primarily due to a 4.5% increase in the volume of electricity sold to the industrial sector, which represents the largest segment of electricity consumption in Korea, to 291,333 gigawatt hours in 2021 from 278,660 gigawatt hours in 2020 and a 5.2% increase in the volume of electricity sold to the commercial sector, which represents the second largest segment of electricity consumption in Korea, to 119,550 gigawatt hours in 2021 from 113,639 gigawatt hours in 2020 coupled with a 4.7% increase in the volume of electricity sold to the residential sector to 79,915 gigawatt hours in 2021 from 76,303 gigawatt hours in 2020. The increase in the volume of electricity sold to the industrial sector was primarily due to an increase in export sales recovered after recession in the light of COVID-19 pandemic since the manufacturing industry has traditionally been a major consumer of electricity. The increase in the volume of electricity sold to the commercial sector was primarily due to the increase in domestic demand in response to the Government’s ‘with Corona’ strategy which relaxed social distancing policy after COVID-19 pandemic. The increase in the volume of electricity sold to the residential sector was primarily due to increased time spent at home and telecommuting in response to the COVID-19 pandemic and increased use of cooling and heating appliances to cope with increased number of hot summer and cold winter days. Average unit sales price decreased by 1.5% to Won 108.11 per kilowatt-hour in 2021 from Won 109.80 per kilowatt-hour in 2020 primarily due to a decrease in each unit sales price in the commercial and industrial sector. Our sales of construction services decreased by 7.0% to Won 755 billion in 2021 from Won 812 billion in 2020 primarily due to a decrease in sales amount recorded from the ongoing construction of our nuclear complex construction projects in the United Arab Emirates as the construction projects progress over time.

Our consolidated cost of sales, which is principally derived from the purchase of power from independent power producers, raw materials used and depreciation, increased by 22.9%, to Won 63,644 billion in 2021 from Won 51,804 billion in 2020 primarily due to a 37.5% increase in power purchase, a 37.8% increase in raw material used and a 3.6% increase in depreciation.

Power purchase, which accounted for 34.0% and 30.4% of our cost of sales in 2021 and 2020, respectively, increased by 37.5% to Won 21,619 billion in 2021 from Won 15,725 billion in 2020 primarily due to increase in both quantity and the unit price of power purchase. The increased unit price of power purchase was mainly due to increased fuel costs.

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Raw materials used, which accounted for 29.3% and 26.1% of our cost of sales in 2021 and 2020, respectively, increased by 37.8% to Won 18,660 billion in 2021 from Won 13,544 billion in 2020 primarily due to increases in both fuel prices and the volume of electricity generated mainly due to an increase in power demand.

Depreciation expense, excluding amortization of nuclear fuel charged to fuel costs in the amounts of Won 1,134 billion and Won 1,173 billion in 2021 and 2020, respectively, increased by 4.4% to Won 10,418 billion in 2021 from Won 9,978 billion in 2020 primarily due to an additional property, plant and equipment acquired in relation to the construction of new generation facilities pursuant to our capital investment program.

Other cost of sales increased by 9.8% to Won 2,023 billion in 2021 from Won 1,843 billion in 2020 primarily due to an increase in our greenhouse gas emission and related costs. For example, we have spent approximately Won 548 billion for the greenhouse gas emission allowances in 2021 compared to Won 332 billion in 2020. For further information, please see Item 4.B. “Business Overview—Environmental, Social and Governance Programs.”

As a cumulative result of the foregoing factors, we recognized consolidated gross loss of Won 3,632 billion in 2021 compared to consolidated gross profit of Won 6,122 billion in 2020, and our consolidated gross profit margin decreased to (6.1)% in 2021 from 10.6% in 2020. The decreases in our consolidated gross profit and consolidated gross profit margin were largely attributable to 22.9% increase in our consolidated cost of sales (which was mainly due to 37.5% increase in the power purchase costs, 37.8% increase in raw materials used, and 3.6% increase in depreciation expense) which substantially outpaced 3.6% increase in our consolidated sales (which was primarily due to a 4.7% increase in the volume of electricity sold).

Our consolidated selling and administrative expenses slightly increased by 7.4% to Won 2,876 billion in 2021 from Won 2,678 billion in 2020 largely due to an increase in commissions and repairs and maintenance expense.

Our consolidated other income, net of expenses, increased by 25.4% to Won 776 billion in 2021 from Won 619 billion in 2020 mainly as a result of a decrease in donation for establishment of laboratory for nuclear power plant decommissioning.

Our consolidated net other gains decreased to Won 9 billion in 2021 from Won 35 billion in 2020, mainly as a result of decrease in gains on disposal of property, plant and equipment.

As a cumulative effect of the foregoing factors, we recognized consolidated operating loss of Won 5,723 billion in 2021 compared to a profit of Won 4,098 billion in 2020, and our consolidated operating profit margin decreased to (9.5)% in 2021 from 7.1% in 2020. This was mainly due to increased fuel costs as a result of a higher price of LNG, increased power purchased and increased emission costs to comply with stricter greenhouse gas emission trading system.

Our consolidated finance expenses, net, increased by 33.0% to Won 1,843 billion in 2021 from Won 1,386 billion in 2020 primarily as a result of increased losses on foreign currency translation regarding financial liabilities carried at amortized cost.

Our consolidated profit related to associates, joint ventures and subsidiaries increased by 76.2% to Won 495 billion in 2021 from Won 281 billion in 2020 primarily due to increased share in profit of Korea Gas Corporation, owing to increased LNG price.

As a cumulative result of the foregoing factors, we recognized consolidated loss before income taxes of Won 7,072 billion in 2021 compared to consolidated profit before income taxes of Won 2,993 billion in 2020.

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Our income tax benefit increased to Won 1,856 billion in 2021 from income tax expense of Won 899 billion in 2020 largely as a result of the increase in our loss before income taxes. Our effective tax rate, which represents tax expense as a percentage of profit before income taxes, was not calculated in 2021 because income tax benefit was recognized in 2021. See Note 41 to our consolidated financial statements included in this annual report.

As a cumulative result of the above factors, we recognized consolidated loss of Won 5,216 billion in 2021 compared to consolidated profit of Won 2,094 billion in 2020. Our consolidated net profit margin also decreased to (8.7)% in 2021 from 3.6% in 2020. Our loss attributable to the owners of the company was Won 5,305 billion in 2021 compared to a profit of Won 1,992 billion in 2020.

We recognized other comprehensive income of Won 600 billion in 2021 compared to other comprehensive loss of Won 220 billion in 2020 largely due to an increase in the remeasurement of defined benefit liability and share in other comprehensive income (loss) of associates and joint ventures, net of tax.

As a cumulative result of the above factors, we recognized consolidated total comprehensive loss of Won 4,616 billion in 2021 compared to total comprehensive income of Won 1,874 billion in 2020.

Segment Results

We operate the following business segments: transmission and distribution, nuclear power generation and thermal power generation and all others. The transmission and distribution segment, which is operated by us, the parent company, consists of operations related to the transmission, distribution and sale to end-users of electricity purchased from our generation subsidiaries as well as from independent power producers. The power generation segment, which is operated by our one nuclear generation subsidiary and five non-nuclear generation subsidiaries, consists of operations related to the generation of electricity sold to us through the Korea Power Exchange. The transmission and distribution segment and the power generation segment together represent our electricity business. The remainder of our operation consists primarily of operations related to the plant maintenance and engineering service and others including mainly overseas businesses. In 2020, 2021 and 2022, the unaffiliated revenues of the power generation segment (representing the six generation subsidiaries) and all our other revenues in the aggregate amounted to only 3.1%, 4.3% and 5.9% of our consolidated revenues, respectively, and the results of operations for our business segments substantially mirror our consolidated results of operations. For further information, see Note 4 of the notes to our consolidated financial statements included in this annual report.

Other

Our operations are materially affected by the policies of or factors relating to the Government. See Item 4.B. “Business Overview—Regulation.”

Item 5.B.

Liquidity and Capital Resources

We expect that our capital requirements, capital resources and liquidity position may change in the course of implementing the Restructuring Plan. See Item 4.B. “—Business Overview—Restructuring of the Electric Power Industry in Korea” and Item 3.D. “Risk Factors—Risks Relating to KEPCO—The Government may adopt policy measures to substantially restructure the Korean electric power industry or our operational structure, which may have a material adverse effect on our business, operations and profitability.”

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Capital Requirements

We anticipate that the following represent the major sources of our capital requirements in the short-term to intermediate future:

•

capital expenditures pursuant to our capital investment program;

•

working capital requirements, the largest component of which is fuel purchases;

•

payment of principal and interest on our existing debt; and

•

overseas investments.

In addition, if there were to occur unanticipated material changes to the Restructuring Plan, the Basic Plan or other major policy initiatives of the Government relating to the electric power industry, or natural disasters, such developments may require a significant amount of additional capital requirements.

Capital Expenditures

We anticipate that capital expenditures will be the most significant use of our funds for the next several years. Our capital expenditures relate primarily to the construction of new generation units, maintenance of existing generation units and expansion of our transmission and distribution systems. Our capital expenditures generally follow budgets established under the Basic Plan, which contains projections relating to the supply and demand of electricity of Korea based on which we plan the construction of additional generation units and transmission systems.

Our total capital expenditures for the construction of generation, transmission and distribution facilities were Won 15,485 billion, Won 13,964 billion and Won 13,886 billion in 2020, 2021 and 2022, respectively, and under our current budgets, are estimated to be approximately Won 16,927 billion, Won 16,306 billion and Won 17,908 billion in 2023, 2024 and 2025, respectively. We plan to finance our capital expenditures primarily through issuance of securities in the capital markets, borrowings from financial institutions and construction grants.

In January 2016, the Ministry of Trade, Industry and Energy announced an initiative to promote the new energy industry by creating the New Energy Industry Fund, which is made up of funds sponsored by Government-affiliated energy companies. We contributed Won 500 billion to the funds in 2016. The purpose of these funds is to invest in substantially all frontiers of the new energy industry, including renewable energy, energy storage systems, electric vehicles, small-sized self-sustaining electricity generation grids known as “micro-grids”, among others, as well as invest in start-up companies, ventures, small- to medium-sized enterprise and project businesses that engage in these businesses but have not previously attracted sufficient capital from the private sector.

Furthermore, as part of the Comprehensive Measures against Particulate Matter and the Eighth, Ninth and Tenth Basic Plan, announced by the Government in September 2017, December 2017, December 2020 and January 2023 respectively, the Government set forth the following policy directions relating to coal-fired generation units: (i) 28 decrepit coal-fired generation units shall convert to LNG fuel use by 2036, (ii) in principle, construction of new coal-fired generation units shall not be planned, (iii) coal-fired generation units that are 30 years or older shall temporarily cease operations from December to February of each year from 2020, which has also been done from March to June in 2018 and 2019, (iv) coal-fired generation units shall be put through comprehensive functional and environmental upgrades and (v) coal-fired generation units shall be subject to emission standards that came into effect in January 2019 that are twice as more rigorous than the previous standards. Compliance with such measures is expected to result in significant additional costs.

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We plan to establish a research and entrepreneurship-oriented university specializing in the energy field. See Item 4.B. “Business Overview—Establishment of a University.” On August 8, 2019, our board of directors resolved to make an initial contribution of Won 60 billion for the promotion, initial operation and the design of the university campus. On May 21, 2021, our board resolved to make an additional contribution of Won 64.5 billion to the university and Won 41.3 billon of such contribution was made in December 2021. The remaining 23.2 billion won was made after a resolution by our affiliates’ board of directors in 2022. In addition, on July 15, 2022, the board of us and our affiliates decided to contribute 47.9 billion won for funding of the construction and operation of major campus facilities and completed the contribution by December 2022. The total amount of contributions after 2023 will be determined in consultation with the Korean government and the KENTECH itself.

Fuel Purchases

We require significant funds to finance our operations, principally in relation to the purchase of fuels by our generation subsidiaries for generation of electricity. In 2020, 2021 and 2022, fuel costs constituted 28.6%, 30.6% and 34.4% of our cost of sales and the ratio of fuel costs to our sales was 25.5%, 32.5% and 49.1%, respectively. We plan to fund our fuel purchases primarily with net operating cash, although in cases of rapid increases in fuel prices as is the case from time to time, we may also rely on borrowings from financial institutions and issuance of debt securities in the capital markets.

Repayment of Existing Debt

Payments of principal and interest on indebtedness will require considerable resources. The table below sets forth the scheduled maturities of the outstanding interest-bearing debt (excluding original issue discounts and premium) without taking into consideration of swap transactions of us and our six wholly-owned generation subsidiaries as of December 31, 2022 for each year from 2023 to 2027 and thereafter. As of December 31, 2022, such debt represented 96.8% of our outstanding debt on a consolidated basis.


Year ended December 31	Local Currency Borrowings		Foreign Currency Borrowings		Domestic Debentures		Foreign Debentures		Total⁽¹⁾
	(in billions of Won)
2023		11,809.2		131.6		8,400.0		1,774.2		22,115.0
2024		2.6		—		22,040.0		1,440.3		23,482.9
2025		151.8		—		16,580.0		3,675.2		20,407.0
2026		10.7		9.8		7,350.0		3,067.5		10,437.9
2027		1.8		—		8,460.0		2,563.8		11,025.6
Thereafter		55.8		—		27,540.3		1,893.3		29,489.3
Total⁽¹⁾		12,031.9		141.4		90,370.3		14,414.3		116,957.8

Note:

(1)	The figures may not add up to the relevant total numbers due to rounding.

We and our six wholly-owned generation subsidiaries incurred interest charges (including capitalized interest) in relation to our interest-bearing debt of Won 2,438 billion, Won 2,337 billion and Won 3,253 billion in 2020, 2021 and 2022, respectively. We anticipate that interest charges will increase in future years because of, among other factors, anticipated increases in our long-term debt. See “—Capital Resources” below. The weighted average rates of interest on our and our six wholly-owned generation subsidiaries’ interest-bearing long-term debt and borrowings under existing swap contracts were 2.55%, 2.35% and 3.09% in 2020, 2021 and 2022, respectively.

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Overseas Investments

As part of our revenue diversification strategy, we plan to continue to make overseas investments on a selective basis, which will be funded primarily through foreign currency-denominated borrowings and debt securities issuances as well as net operating cash from such projects.

Capital Resources

You should read the following data with the more detailed information contained in Item 18. “Financial Statements.” Historical results do not necessarily predict future results.


	2020		2021		2022			2022
	(rounded to billions of Won and millions of US$)⁽¹⁾
Net cash provided by (used in) operating activities	W	13,208	W	4,491	W	(23,478	)	$	(18,630	)
Long-term debt (excluding current portion)⁽²⁾		59,050		66,500		97,946			77,724
Current portion of the long-term debt		9,238		11,109		13,839			10,981
Total long-term debt⁽³⁾		68,450		77,781		111,982			88,862
Won-denominated long-term debt		56,759		64,995		95,476			75,764
Foreign currency-denominated long-term debt		11,692		12,786		16,506			13,098
Other long-term liabilities⁽⁴⁾		47,544		47,565		50,340			39,947
Short-term borrowings		1,437		2,921		8,820			6,999
Total equity		70,667		65,327		42,000			33,329

Notes:

(1)	The financial information denominated in Won as of and for the year ended December 31, 2022 has been translated into U.S. dollars at the exchange rate of Won 1,260.18 to US$1.00, which was the Noon Buying Rate as of December 31, 2022.

(2)	Long-term debt, net consists of long-term borrowings and debt securities (excluding the current portions but including original issue discounts and premiums) without taking into consideration of swap transactions.

(3)	Total long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions.

(4)	Other long-term liabilities consist of total non-current liabilities of our consolidated financial statements included in this annual report minus long-term debt (excluding current portion) of this table.

We have traditionally met our working capital and other capital requirements primarily from net cash provided by operating activities, issuance of debt securities and borrowings from financial institutions. Net cash provided by operating activities is primarily a function of electricity sales and fuel purchases and is also affected by increases and decreases in trade receivables, trade payables and inventory related to electricity sales and fuel purchases. Net cash provided by (used in) operating activities was Won 13,208 billion and Won 4,491 billion in 2020 and 2021 respectively and Won (23,478) billion in 2022.

As of December 31, 2020, 2021 and 2022, our long-term debt (excluding the current portion but including original issue discounts and premium), without taking into consideration of swap transactions, amounted to Won 59,050 billion, Won 66,500 billion and Won 97,946 billion, respectively, representing 83.6%, 101.8% and 233.2% of equity, respectively, as of such dates. As of December 31, 2020, 2021 and 2022, the current portions of our long-term debt were Won 9,238 billion, Won 11,109 billion and Won 13,839 billion, respectively. As of December 31, 2020, 2021 and 2022, our short-term borrowings amounted to Won 1,437 billion, Won 2,921 billion and Won 8,820 billion, respectively. See Note 23 of the notes to our consolidated financial

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statements included in this annual report. Total long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, as of December 31, 2022 was Won 111,982 billion, of which Won 95,476 billion was denominated in Won and an equivalent of Won 16,506 billion was denominated in foreign currencies, primarily U.S. dollars. We, KHNP, KOMIPO and KOWEPO also maintain global medium-term note programs in the aggregate amount of US$21 billion, of which approximately US$13 billion remains currently available for future drawdown.

Subject to the implementation of our capital expenditure plan and the sale of our interests in our generation subsidiaries and other subsidiaries, our long-term debt may increase or decrease in future years. Until recently, a significant portion of our long-term debt was raised through foreign currency-denominated borrowings. Our foreign currency-denominated long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, amounted to Won 12,786 billion and Won 16,506 billion as of December 31, 2021 and 2022, respectively.

Our ability to incur long-term debt in the future is subject to a variety of factors, many of which are beyond our control, including, the amount of capital that other Korean entities may seek to raise in capital markets. Economic, political and other conditions in Korea may also affect investor demand for our securities and those of other Korean entities. In addition, our ability to incur debt will also be affected by the Government’s policies relating to foreign currency borrowings, the liquidity of the Korean capital markets and our operating results and financial condition. In case of adverse developments in Korea, the price at which such financing may be available may not be acceptable to us.

We incur our short-term borrowings primarily through commercial papers sold to domestic financial institutions. We have not had any material difficulties in obtaining short-term borrowings. In addition, in order to prepare for potential liquidity shortage, we maintain several credit facilities with financial institutions, with Won-denominated facilities amounting to Won 7,184 billion in aggregate and foreign currency-denominated facilities amounting to US$1,385 million in aggregate. The full amount of these facilities was available as of December 31, 2022.

We may raise capital from time to time through the issuance of equity securities. However, there are certain restrictions on our ability to issue equity instrument, including limitations on shareholdings by foreigners. In addition, without changes in the existing KEPCO Act which requires that the Government, directly or pursuant to the Korea Development Bank Act, through Korea Development Bank, own at least 51% of our capital stock, it may be difficult or impossible for us to undertake any equity financing other than sales of treasury stock without the participation of the Government. Even if we are able to conduct equity financing with the participation of the

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Government, prevailing market conditions may be such that we may not be able conduct equity financing on terms that are commercially acceptable to us. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy.”

Our total equity decreased by 35.7% from Won 65,327 billion as of December 31, 2021 to Won 42,000 billion as of December 31, 2022, mainly as a result of a decrease in total comprehensive income.

Liquidity

You should read the following data with the more detailed information contained in Item 18. “Financial Statements.” Historical results do not necessarily predict future results.


	2020			2021			2022			2022
	(rounded to billions of Won and millions of US$)⁽¹⁾
Property, plant and equipment, net	W	168,711		W	173,135		W	177,865		$	141,143
Current trade and other payables, net		6,257			8,153			11,984			9,509
Current financial liabilities, net		10,725			14,037			22,704			18,016
Net cash provided by (used in) operating activities		13,208			4,491			(23,478	)		(18,630	)
Net cash used in investing activities		(14,832	)		(12,373	)		(14,954	)		(11,866	)
Net cash provided by financing activities		1,881			8,435			38,998			30,946
Net working capital (deficit)⁽²⁾		(5,319	)		(9,681	)		(14,768	)		(11,719	)

Notes:

(1)	The financial information denominated in Won as of and for the year ended December 31, 2022 has been translated into U.S. dollars at the exchange rate of Won 1,260.18 to US$1.00, which was the Noon Buying Rate as of December 31, 2022.

(2)	Net working capital is defined as current assets minus current liabilities. For the periods indicated, current liabilities exceeded current assets, which resulted in working capital deficit for such periods.

Our liquidity is substantially affected by our acquisition of property, plant and equipment, fuel purchases and schedule of repayment of debt. Our property, plant and equipment increased by 2.7% from Won 173,135 billion as of December 31, 2021 to Won 177,865 billion as of December 31, 2022. As the fuel costs increased by 77.8% from Won 19,503 billion in 2021 to Won 34,669 billion in 2022, our current trade and other payables also increased from Won 8,153 billion as of December 31, 2021 to Won 11,984 billion as of December 31, 2022. Our current financial liabilities increased by 61.7% from Won 14,037 billion as of December 31, 2021 to Won 22,704 billion as of December 31, 2022 according to our debt repayment schedule.

Our cash flows are also impacted by other factors. In 2022, we had a net cash outflow of Won 23,478 billion from operating activities while, in 2021, we had a net cash inflow of Won 4,491 billion from operating activities.

Our cash flows from investing activities are mainly affected by the acquisition of property, plant and equipment and financial assets, which was Won 28,843 billion in 2022, as well as the proceeds from disposals of financial assets, which was Won 14,182 billion in 2022. Our net cash used in investing activities increased by 20.9% from Won 12,373 billion in 2021 to Won 14,954 billion in 2022, mainly due to the increase in acquisition of financial assets of Won 10,603 billion and increase in proceeds from disposals of financial assets of Won 7,159 billion offset by a decrease in acquisition of property, plant and equipment of Won 340 billion.

Our cash flows from financing activities are mainly affected by the proceeds and repayment of long-term borrowings and debt securities, which was a net inflow of Won 33,341 billion in 2022, as well as dividend paid,

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which was Won 42 billion in 2022. Our net cash from financing activities increased by 362.3% from Won 8,435 billion in 2021 to Won 38,998 billion in 2022, largely due to an increase of Won 26,202 billion in proceeds from long-term borrowings and securities.

Due to the capital-intensive nature of our business as well as significant volatility in fuel prices, from time to time we operate with working capital deficits, and we may have substantial working capital deficits in the future. As of December 31, 2020, 2021 and 2022, we had a working capital deficit of Won 5,319 billion, Won 9,681 billion and Won 14,768 billion, respectively. We have traditionally met our working capital and other capital requirements primarily with net cash provided by operating activities, issuance of debt securities, borrowings from financial institutions and construction grants. We also incur short-term borrowings primarily through commercial papers sold to domestic financial institutions. We have not had any material difficulties in obtaining short-term borrowings. See “—Capital Resources.”

We may face liquidity concerns in the case of sudden and sharp depreciation of the Won against major foreign currencies or depreciation over a sustained period of time. While substantially all of our revenues and our cash and cash equivalents are denominated in Won, we pay for substantially all of our fuel purchases in foreign currencies. Furthermore, as a substantial portion of our long-term debt is denominated in foreign currencies, the payment of principal and interest thereon is made in foreign currencies. In the past, we have incurred foreign currency debt principally due to the limited availability and the high cost of Won-denominated financing in Korea. However, in light of the increasing sophistication of the Korean capital markets and the recent increase in Won liquidity in the Korean financial markets, we plan to reduce the portion of our debt which is denominated in foreign currencies although we intend to continue to raise certain amounts of capital through long-term foreign currency debt for purposes of maintaining diversity in our funding sources as well as paying for overseas investments and fuel procurements in foreign currencies. As of December 31, 2022, 14.7% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions was denominated principally in U.S. dollars.

We enter into currency swaps and other hedging arrangements with respect to our foreign currency denominated debt only to a limited extent primarily due to the limited size of the Korean market for such derivative instrument. Such instruments include combined currency and interest rate swap agreements, interest rate swaps and foreign exchange agreements. We do not enter into derivative financial instruments in order to hedge market risk resulting from fluctuations in fuel costs. Our policy is to hold or issue derivative financial instruments for hedging purposes only. See Note 12 of the notes to our consolidated financial statements.

We did not pay any dividends in respect of fiscal year 2021 and 2022 on a separate basis. We paid dividends of Won 1,216 per share in respect of fiscal year 2020 on a separate basis.

Contractual Obligations

The following summarizes our known contractual obligations on a consolidated basis as of December 31, 2022 and the effect such obligations are expected to have on liquidity and cash flow in future periods. See Note 45.(2) of the notes to our consolidated financial statements included in this annual report for our management of short, medium and long-term funding and liquidity management requirements.


Contractual Obligations	Less than 1 Year		1~2 Years		2~5 Years		More than 5 Years		Total⁽³⁾
	In billions of Won
Borrowings and debt securities⁽¹⁾	W	26,158		27,368		47,362		37,116		138,003
Lease liabilities		640		657		1,390		1,925		4,612
Trade and other payables		11,370		348		1,008		734		13,459
Financial guarantee contracts⁽²⁾		105		54		3,495		121		3,776

Total⁽³⁾	W	38,272		28,427		53,256		39,896		159,851

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Notes:

(1)	These includes interest payments on the borrowings and debts for the periods indicated.

(2)	This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2021 and 2022 are Won 80,841 million and Won 67,240 million, respectively.

(3)	The figures may not add up to the relevant total numbers due to rounding.

For a description of our commercial commitments and contingent liabilities, see Note 50 of the notes to our consolidated financial statements included in this annual report.

We entered into a power purchase agreement with GS EPS Co., Ltd. and CGN Yulchon Generation Co., Ltd. respectively, which are non-renewable energy independent power producers that are not part of the Community Energy System, under which we are required to purchase all electricity generated by these companies to the extent such electricity is traded through the Korea Power Exchange. The purchase prices for such electricity are predetermined under the power purchase agreements, subject to annual adjustments. We purchased power from these companies in the amounts of Won 289 billion, Won 371 billion and Won 551 billion in 2020, 2021 and 2022, respectively. As a result of the expiration of the contractual periods, our agreement with GS EPS Co., Ltd. terminated on March 31, 2021.

We meet our coal requirements primarily through purchases of bituminous coal and anthracite coal under long-term supply contracts with domestic and foreign suppliers to purchase. Under these long-term supply contracts, purchase prices are adjusted periodically based on prevailing market conditions. We have entered into several fuel purchase agreements under which we are committed to purchasing minimum quantities of fuel, including approximately 60 to 70 million tons of bituminous coal in 2022.

We also purchase a substantial portion of our LNG requirements from Korea Gas Corporation, a related party. We negotiate annually with Korea Gas Corporation and other suppliers to purchase LNG. We have also entered into long-term transportation contracts with Pan Ocean Co., Ltd. and others.

We import all uranium ore concentrates from sources outside Korea (including Canada, Russia, France, the United Kingdom, Switzerland, Australia, Germany, Japan and Uzbekistan) through medium- to long-term contracts and purchases in spot markets, and pay for such concentrates with currencies other than Won, primarily U.S. dollars. Contract prices for processing of uranium are generally based on market prices.

The fuel purchase price is typically negotiated near or at time of purchase subject to prevailing market conditions. In 2022, the fuel cost incurred to us was Won 34,669 billion. See Note 49 of the notes to our consolidated financial statements for further details of these contracts.

Under the Long-term Transmission and Substation Plan approved by the Ministry of Trade, Industry and Energy, we are liable for the construction of all of our power transmission facilities and the maintenance and repair expenses for such facilities. Also, our generation subsidiaries make plans for expanding our generation capacity based on the Basic Plan Relating to the Long-Term Supply and Demand of Electricity, which is generally revised and announced every two years by the Government. For a description of our commitments for acquisition of property, plant and equipment, see Note 49 of the notes to our consolidated financial statements included in this annual report.

Payment guarantee

See Note 50 to our consolidated financial statements included in this annual report for payment guarantees and short-term credit facilities from financial institutions.

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Overdraft and Others

See Note 47 to our consolidated financial statements included in this annual report for existing guarantees provided by us to our associates, joint ventures and others.

Other than as described in this annual report and also in Notes 47 and 50 of the notes to our consolidated financial statements included in this annual report, we did not have any other material credit lines and guarantee commitments provided to any third parties as of December 31, 2022.

Item 5.C.

Research and Development, Patents and Licenses, etc.

Research and Development

We aim to secure core technologies that enable to achieve carbon neutrality early on by increasing research and development investment in the technologies which contribute to greenhouse gas reduction effectively. Currently, we are securing 17 core strategic technologies and 441 unit technologies in the related fields to pioneer carbon-neutrality in Korea and make our operations efficient and align with the master plan on research and development which we set out in 2022. Our primary objectives for technology development are improving the efficiency of energy supply and use; expanding renewable energy that can reduce carbon emissions in power generation; promoting fuel conversion with hydrogen and ammonia; and developing an intelligent power grid that distributes electricity to consumers. We have set the research and development activities plan accordingly.

Our research and development activities plan to focus on the following:

•

Improvement in energy efficiency. To reduce losses through distributed systems and high-efficiency power transmission, as well as to improve energy efficiency in the building, industrial, and transportation sectors.

•

Expansion of renewable energy. to replace coal and gas power generation with renewable energy such as wind power and hydrogen energy.

•

Fuel conversion. To achieve zero carbonization by applying carbon capture, usage and storage system to hydrogen, ammonia-blended and thermal power generation.

•

Development of intelligent power grid. To increase renewable energy connection capacity and operate large-scale energy storage systems for timely expansion of renewable energy in power systems.

•

Others. To apply digital systems such as intelligent digital power plant, advanced distribution management system and develop asset management system, robots and drones, and safety/disaster prevention technologies.

In addition, we cooperate closely with several other electric utility companies and research institutes, both foreign and domestic, on various projects to diversify the scope and scale of our research and development activities.

In 2023, consistent with the Government guidelines, we plan to invest approximately 3.59% of our annual estimated net sales on a separate basis, in the research and development. We and six generation subsidiaries invested Won 887 billion, Won 910 billion and Won 889 billion, in 2020, 2021 and 2022, respectively, and currently plan to invest Won 1,097 billion in 2023, on research and development. We and six generation subsidiaries had 1,317 employees engaged in research and development activities as of December 31, 2022. As a result of our research, we and six generation subsidiaries had 7,334 registered patents and 8,651 patent applications outstanding in Korea and abroad as of December 31, 2022.

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Item 5.D.

Trend Information

Trends, uncertainties and events which could have a material impact on our sales, liquidity and capital resources are discussed above in Item 4.B. “Business Overview—Sales and Customers,” Item 5.A. “Operating Results” and Item 5.B. “Liquidity and Capital Resources.”

Item 5.E.

Critical Accounting Estimates

See Note 2. (4) to our consolidated financial statements included in this annual report and other sections of our consolidated financial statements referred to thereunder for accounting estimates that have the most significant effect on the amounts recognized in our consolidated financial statements.

ITEM 6.

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Item 6.A. Directors and Senior Management

Board of Directors

Under the KEPCO Act, the Act on the Management of Public Institutions and our Articles of Incorporation, our board of directors, which is required to consist of not more than 15 directors, including the president, is vested with the authority over our management.

Pursuant to the Act on the Management of Public Institutions and our Articles of Incorporation, we have two types of directors: standing directors (‘sang-im-isa’ in Korean) and non-standing directors (‘bi-sang-im-isa’ in Korean). Please see the below discussion under “—Standing Directors” and “—Non-standing Directors” for more information.

Under our Articles of Incorporation, there may not be more than fifteen directors. The number of standing directors, including our president, must be less than one-half of incumbent directors. A senior non-standing director appointed by the Ministry of Economy and Finance becomes our chairperson of the board following the review and resolution of the Committee for Management of Public Institutions.

Under the Act on the Management of Public Institutions which was amended on February 3, 2022, became effective on August 4, 2022, the labor director system was introduced where one non-standing director of the public institution must be appointed among its employees who have held their offices for at least three years and (i) is recommended by the representative of the employees (or the representative of the labor union of the public institution if there is a labor union comprising the majority of the employees) or (ii) obtains consent from the majority of the employees of a public institution. In accordance with the amended Act, we have incorporated provisions regarding the appointment of a labor director into our amended articles of incorporation, effective as of November 7, 2022. The term of office of a labor director is two years, and candidates must be recommended and approved in accordance with the Act. In accordance with the guidelines for the management of public institutions, we will place labor directors in the appropriate departments or duties to ensure that they are able to carry out their responsibilities efficiently, and provide them with educational opportunities.

Standing Directors

The standing directors refer to our directors who serve their directorship positions in full-time capacity.

Our president serves as our chief executive officer and represents us and administers our day-to-day business in all matters and bears the responsibility for the management’s performance. Our president is appointed by the President of the Republic upon the motion of the Ministry of Trade, Industry and Energy following the nomination by our director nomination committee, the review and resolution of the Committee for Management of Public Institutions pursuant to the Act on the Management of Public Institutions and an approval at the general meeting of our shareholders.

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In the event the president acts in violation of law or the Articles of Incorporation, is negligent in his duties, or otherwise is deemed to be significantly impeded in performing his official duties as president, the board of directors may by resolution request the Minister of the Ministry of Trade, Industry and Energy to dismiss or recommend the dismissal of the president.

Our standing director(s) who concurrently serves as a member of the audit committee is appointed through the same appointment process applicable to our president, except that the motion for appointment is made by the Ministry of Economy and Finance instead of the Ministry of Trade, Industry and Energy. Such director is non-executive in that he or she does not participate in the management of us and our subsidiaries and meets the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule 10A-3 under the Exchange Act.

Standing directors other than our president or those who concurrently serve as members of the audit committee are appointed by our president with the approval at the general meeting of our shareholders.

The names, titles and outside occupations, if any, of the standing directors as of April 7, 2023 and the respective years in which they took office are set forth below.


Name (Gender)	Age	Position	Outside Occupation	Position Held Since
Cheong, Seung-Il (Male)	57	President & Chief Executive Officer	None	June 1, 2021
Jun, Young-Sang (Male)	58	Comptroller & Auditor General and Member of the Audit Committee (Non-executive)	None	March 7, 2023
Lee, Jung-Bok (Male)	59	Corporate Senior Executive Vice President & Chief Business Management Officer	None	February 27, 2023
Lee, Jun-Ho (Male)	60	Corporate Senior Executive Vice President & Chief Safety Officer & Chief Business Operations Officer	None	February 27, 2023
Park, Heon-Gyu (Male)	60	Corporate Senior Executive Vice President & Chief Financial & Strategic Planning Officer	None	May 28, 2021
Kim, Tae-Ok (Male)	60	Corporate Senior Executive Vice President & Chief Power Grid Officer	None	March 25, 2021
Lee, Heung-Joo (Male)	61	Corporate Senior Executive Vice President & Chief Global & Nuclear Business Officer	None	October 14, 2021

Cheong, Seung-Il has been our President and CEO since June 1, 2021. Prior to his current position, he served as a Vice Minister of the Ministry of Trade, Industry and Energy, Deputy Minister of the Office of Energy and Resources, Director General for Energy Industry Policy under the Ministry of Trade, Industry and Energy and the President and CEO of Korea Gas Corporation. Mr. Cheong received an M.B.A. from Seoul National University.

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Jun, Young-Sang has been our Standing Director since March 7, 2023. Mr. Jun previously served as a professor of Public Administration at Konkuk University and an operation director at the Korean Association for Public Administration. Mr. Jun received a Ph.D. in Public Administration from Konkuk University.

Lee, Jung-Bok has been our Standing Director since February 27, 2023. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Business Management Officer and previously served as the Corporate Senior Executive Vice President and Chief Mutual Growth & Management Officer and Vice President & Head of Human Resources Department. Mr. Lee received a B.A. in Sociology from Sungkyunkwan University.

Lee, Jun-Ho has been our Standing Director since February 27, 2023. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Safety Officer & Chief Business Operations Officer and previously served as the President & CEO at KEPCO Energy Solution Co., Ltd. and Vice President at Regional Headquarters KEPCO Namseoul. Mr. Lee received a M.B.A. from Korea University.

Park, Heon-Gyu has been our Standing Director since May 28, 2021. Mr. Park also currently serves as our Corporate Senior Executive Vice President & Chief Financial & Strategic Planning Officer and previously served as the Executive Vice President & Chief Cooperations Officer and Vice President & Head of Audit & Inspection Office. Mr. Park received a Korean Executive M.B.A. in utilities management from Helsinki School of Economics.

Kim, Tae-Ok has been our Standing Director since March 25, 2021. Mr. Kim also currently serves as our Corporate Senior Executive Vice President & Chief Power Grid Officer and previously served as the Vice President of Regional Headquarters KEPCO Gwangju-Jeonnam and Vice President & Head of Technology Planning Department. Mr. Kim received a B.E. in electrical engineering from Ajou University.

Lee, Heung-Joo has been our Standing Director since October 14, 2021. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Global & Nuclear Business Officer and previously served as the Corporate Vice President & Head of UAE Nuclear Project Department and the Assistant Vice President & Head of Program Management Team under UAE Nuclear Project Department. Mr. Lee received a B.ME from Inha University.

Non-standing Directors

The non-standing directors refer to our directors who do not serve their directorship positions in full-time capacity. The non-standing directors currently do not hold any executive positions with us or our subsidiaries.

Our non-standing directors must be appointed by the Minister of the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee and must (i) have ample knowledge and experience in business management who cannot be public service personnel other than a public educational official at national or public schools or (ii) have held their offices in us for at least three years and either (a) be recommended by the representative of our employees (or the representative of the labor union if there is a labor union comprising the majority of our employees) or (b) obtain consent from the majority of our employees. We are required to appoint at least one non-standing director who qualifies the requirement (ii) above. Appointment of non-standing directors to become part of the audit committee is subject to approval at the general meeting of our shareholders.

Although the classification of the directors applicable to us as a statutory juridical corporation established under the KEPCO Act is different from the classification under the Korean Commercial Act which consists of (i) an inside director (‘sa-nae-isa’ in Korean), (ii) an outside director (‘sa-oe-isa’ in Korean) and (iii) other directors who do not serve their directorship positions in full-time capacity but do not qualify as outside directors

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(‘gita-bi-sang-moo-isa’ in Korean), all of our non-standing directors have been, and are currently appointed from, candidates who satisfy the qualifications of an outside director under the Korean Commercial Act, as the KEPCO Act generally requires us to apply the Korean Commercial Act as applicable.

We strictly scrutinize whether a non-standing director candidate engaged in any related party transactions that would disqualify such candidate from his or her directorship under the Korean Commercial Act. Moreover, we have reinforced the decision-making power of non-standing directors by requiring both a majority and the chairperson of the board be non-standing directors. Our non-standing directors may request any information necessary to fulfill their duties from our president, and except in special circumstances, our president must comply with such request.

The names, titles and outside occupations, if any, of the non-standing directors as of April 7, 2023 and the respective years in which they took office are set forth below. As one of non-standing directors voluntarily resigned from his position in August 2022, we are currently in the process of appointing one additional non-standing director as a labor director as required under the new labor director system. Following the review and resolution of the Committee for Management of Public Institutions, the labor director will be appointed by the Minister of the Ministry of Economy and Finance.


Name (Gender)	Age	Position	Principal Occupation	Position Held Since
Park, Jong-Bae (Male)	59	Non-Executive Director, Chairperson of the Board of Directors and the ESG Committee	Professor of Electrical and Electronics Engineering, Konkuk University	January 31, 2020
Kim, Jae-Shin (Female)	56	Non-Executive Director and Chairperson of the Audit Committee	Certified public accountant of Saedure Accounting Firm	July 9, 2021
Bang, Su-Ran (Female)	36	Non-Executive Director and Member of the ESG Committee	Attorney-at-law/Partner of Law Firm S	September 1, 2020
Park, Hyo-Sung (Male)	64	Non-Executive Director and Member of the Audit Committee	None	April 14, 2021
Lee, Kee-Man (Male)	62	Non-Executive Director	Professor of Aerospace Engineering, Sunchon University	April 14, 2021
Lee, Kye-Sung (Male)	66	Non-Executive Director and Member of the ESG Committee	None	July 9, 2021
Kim, Jong-Woon (Male)	65	Non-Executive Director	None	August 22, 2022

Park, Jong-Bae has been our Non-Standing Director since January 31, 2020. Mr. Park is currently the professor of Electrical and Electronics Engineering at Konkuk University. Mr. Park previously served as a Head of the Office of Career Development and Placement at Konkuk University. Mr. Park received a B.S. and a Ph.D. in Electrical and Electronics Engineering from Seoul National University.

Kim, Jae-Shin has been our Non-Standing Director since July 9, 2021. Ms. Kim currently serves a certified public accountant of Saedure Accounting Firm. Ms. Kim previously served as a Non-standing director of the Korean Institute of Certified Public Accountants and the President of women’s association of the Korean Institute of Certified Public Accountants. Ms. Kim received a B.A. and M.B.A. from Ewha Womans University.

Bang, Su-Ran has been our Non-Standing Director since September 1, 2020. Ms. Bang is currently an Attorney-at-law and Partner of Law Firm S. Ms. Bang previously served as the Senior Advisor of Seoul Energy Corporation and Non-executive Director of Korea Energy Information Culture Agency. Ms. Bang received a LL.B. from Ewha Womans University.

Park, Hyo-Sung has been our Non-Standing Director since April 14, 2021. Mr. Park previously served as a Consul-General of Korean Consulate General in New York, U.S.A., Ambassador Extraordinary and

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Plenipotentiary to Romania and Ambassador and Deputy Permanent Representative of Korean Permanent Mission to the UN Office and other International Organizations in Geneva, Switzerland. Mr. Park received a B.A. in Political Science and International Relations from Hankuk University of Foreign Studies and a M.A. in International Relations and M.G.A. (Master of Governmental Administration) from University of Pennsylvania.

Lee, Kee-Man has been our Non-Standing Director since April 14, 2021. Mr. Lee is currently the professor of Aerospace Engineering at Sunchon University. Mr. Lee previously served as the professor of Mechanical and Automotive Engineering at Jeonnam State University. Mr. Lee received a B.E. and a M.E. in Mechanical Engineering from Inha University and a Ph.D. in Mechanical Engineering from Korea Advanced Institute for Science and Technology (KAIST).

Lee, Kye-Sung has been our Non-Standing Director since July 9, 2021. Mr. Lee previously served as a Senior Secretary for Political Affairs of National Assembly Speaker and a Spokesman of National Assembly Speaker. Mr. Lee received a B.A. in Political Science from Seoul National University and a M.A. in North Korean Studies from Yonsei University.

Kim, Jong-Woon has been our Non-Standing Director since August 22, 2022. Mr. Kim previously served as the president of the 6th Naju City Council and a member of the 5th and 6th Naju City Council. Mr. Kim received a B.A. in Public Administration from Gwangju University.

Term of Office of Directors

The term of our president is three years, while that of our directors (standing or non-standing, but except for the president) is two years. According to the Act on the Management of Public Institutions, our president’s term cannot be terminated unless it is requested by the President of Korea pursuant to the Act on the Management of Public Institutions or upon an event as specified in our Articles of Incorporation. Under the Korean Commercial Act, if the number of directors is less than the number required under the law or the articles of incorporation, an incumbent director whose term has ended or who has resigned shall nevertheless continue his or her role as a director until a newly appointed director takes office. In such case, our directors may serve as directors beyond two years.

Resolutions of meeting of the Board of Directors

Attendance by a majority of the board members constitutes a voting quorum for our board meetings, and resolutions can be passed by a majority of the board members.

The business address of our directors is 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea.

Audit Committee

Under the Act on the Management of Public Institutions, which took effect as of April 1, 2007, we are designated as a “market-oriented public enterprise” and, as such, are required to establish an audit committee in lieu of the pre-existing board of auditors upon expiration of the term of the last remaining member of the board of auditors. In September 2007, we amended our Articles of Incorporation to establish, in lieu of the pre-existing board of auditors, an audit committee meeting the requirements under the Sarbanes-Oxley Act. Under the Act on the Management of Public Institutions, the Korean Commercial Act and the amended Articles of Incorporation, we are required to maintain an audit committee consisting of three members, of which not less than two members are required to be non-standing directors. In addition, pursuant to certain amendments to the Act on the Management of Public Institutions that became effective as of January 1, 2021, in appointing the standing member of the audit committee, the director nomination committee shall recommend the person who is qualified in any of the followings: (i) a person who is qualified as a certified public accountant or an attorney and has a minimum of three years of experience in work related to such qualification, (ii) a person who has served as an assistant professor or at a higher position for at least three years in areas directly related to audit, investigation and judicial affairs, budget and accounting, investigation, planning and evaluation, etc. (hereinafter referred to as “audit-related works”) at a school under subparagraphs 1 through 5 of Article 2 of the Higher Education Act), (iii) a person who has been in charge of audit-related works for at least three years at a public institution, stock-listed corporation or research institute under Article 9(15)3 of the Financial Investment Services and Capital

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Markets Act and has experience prescribed by Presidential Decree, (iv) person who has been in charge of audit-related works for at least three years at the state or a local government and has served as a public official at the level prescribed by Presidential Decree, or (v) person with other expertise in accordance with the affairs of the relevant institution and qualified as prescribed by Presidential Decree.

The roles and responsibilities of our audit committee members are to perform the functions of an audit committee meeting the requirements under the Sarbanes-Oxley Act. Our audit committee was established on December 8, 2008.

On November 7, 2022, we amended our Articles of Incorporation to incorporate an amendment to the Commercial Act implemented on December 29, 2020, which requires the affirmative votes of at least a majority of the voting rights of the shareholders present at the shareholders meeting for appointment of a member of the audit committee in lieu of the affirmative votes of (i) at least a majority of the voting rights of the shareholders present at the shareholders meeting and (ii) at least one-fourth (1/4) of the total number of shares with the voting rights issued and outstanding if the shareholders are permitted to exercise a vote by electronic means at such shareholders meeting by the resolution of our board of directors.

Jun, Young-Sang, a standing director, Kim, Jae-Shin and Park, Hyo-Sung, both non-standing directors, are currently members of our audit committee. All such members of the audit committee are independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Korean Commercial Act and the New York Stock Exchange listing standards.

ESG Committee

We established an Environment, Social and Governance (“ESG”) Committee in our board of directors to reinforce ESG-based management system and to ensure continuous performance in this area. The ESG Committee is to consist of three directors. As of the date of this annual report, Park, Jong-Bae, Bang, Su-Ran and Lee, Kye-Sung, all non-standing directors, are the members of our ESG committee. Our ESG Committee is charged with resolving major management issues related to ESG, establishing ESG management strategies and business plans and checking on the overall direction of sustainable management. In 2022, the ESG Committee was held three times and major agendas included the establishment of a KEPCO ESG implementation strategy and an ethics compliance management system and the publication of a sustainability report.

Item 6.B. Compensation

The aggregate amount of remuneration paid to our standing and non-standing directors in the aggregate consist of (i) salaries and wages paid to standing and non-standing directors, which amounted to Won 1,255 million in aggregate in 2022, and (ii) accrued retirement and severance benefits for standing directors, which amounted to Won 58 million in 2022. Under the Act on the Management of Public Institution, our executive officers consist of the president and the standing and non-standing directors. Standing directors, except the standing director who concurrently serves as a member of our audit committee, take executive positions with our company while the other directors, including non-standing directors, do not. We do not have any other officer who is in charge of a principal business unit, division or function, any other officer who performs a policy making function or any other person who performs similar policy making functions for us.

Item 6.C. Board Practices

Under the Act on the Management of Public Institutions and our Articles of Incorporation, for appointments made after April 1, 2007, the term of office for our president is three years and the term of our office for our

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directors (whether standing or non-standing but not the president) is two years. Our president and directors may be reappointed for one or more additional terms of one year. In order to be reappointed, the president must be evaluated on the basis of his management performance; a standing director, on the basis of the performance of the duties for which he was elected to perform, or if the standing director has executed an incentive bonus contract, on the basis of his performance under the contract; and a non-standing director, on the basis of his performance of the duties for which he was elected to perform.

Our board currently does not maintain a compensation committee. See Item 16.G. “Corporate Governance.” However, we currently maintain an audit committee meeting the requirements of the Sarbanes-Oxley Act to perform the roles and responsibilities of the compensation committee. Prior to the establishment of the audit committee on December 8, 2008 pursuant to the Act on the Management of Public Institutions, we maintained a board of auditors, which performed the roles and responsibilities required of an audit committee under the Sarbanes-Oxley Act, including the supervision of the financial and accounting audit by the independent registered public accountants.

Our president’s management contract includes benefits upon termination of his employment. The amount for termination benefits payable equals the average value of compensation for one month times the number of years the president is employed by us, provided that the president is only eligible for termination benefits after more than one year of continuous service.

The termination benefits for our standing directors are determined in accordance with our internal regulations for executive compensation. Standing directors are eligible for benefits only upon termination of employment or death following one year of continuous service.

See also Item 16.G. “Corporate Governance” for a further description of our board practices.

Item 6.D. Employees

As of December 31, 2022, we and our generation subsidiaries had a total of 49,237 regular employees, almost all of whom are employed within Korea. Approximately 10.9% of our regular employees (including employees of our generation subsidiaries) are located at our head office.

The following table sets forth the number of and other information relating to our regular employees, not including directors or senior management, as of December 31, 2022.


	KEPCO		KHNP		KOSEP		KOMIPO		KOWEPO		KOSPO		EWP		Total
Regular Employees
Administrative		5,353		1,047		354		433		280		343		280		8,090
Engineers		12,658		9,979		2,244		2,196		2,202		2,085		2,116		33,480
Others		5,545		1,131		220		193		237		223		118		7,667

Total		23,556		12,157		2,818		2,822		2,719		2,651		2,514		49,237

Head Office Employees		1,837		1,503		446		324		399		433		442		5,384
% of total		7.8%		12.4%		15.8%		11.5%		14.7%		16.3%		17.6%		10.9%
Members of Labor Union		18,429		8,754		2,025		1,739		1,917		1,821		1,728		36,413
% of total		78.2%		72.0%		71.9%		61.6%		70.5%		68.7%		68.7%		74.0%

We and each of our generation subsidiaries have separate labor unions. Approximately 74.0% of our and our generation subsidiaries’ employees in the aggregate are members of these labor unions, each of which negotiates a collective bargaining agreement for its members each year. Under applicable Korean law, an employee-employer cooperation committee comprised of an equal number of representatives of management and labor (which shall be no less than three and no more than ten representatives from each of management and labor) is

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required to be established. Accordingly, an employee-employer cooperation committee composed of eight representatives of management and eight representatives of labor has been established at us and at each of our generation subsidiaries. The committee meets periodically to discuss various labor issues.

Since our formation in 1981, our businesses had not been interrupted by any work stoppages or strikes except in early 2002, when employees belonging to our five non-nuclear generation subsidiaries went on strike for six weeks to protest the Government’s decision to privatize such non-nuclear generation subsidiaries according to the Restructuring Plan, which privatization plan has since been suspended indefinitely. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The Government may adopt policy measures to substantially restructure the Korean electric power industry or our operational structure, which may have a material adverse effect on our business, operations and profitability.”

We believe our relations with our employees are generally good.

Item 6.E. Share Ownership

As of December 31, 2022, none of our directors and members of our administrative, supervisory or management bodies own more than 0.1% of our common stock individually and in aggregate.

Item 6.F. Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation

Not applicable.

ITEM 7.

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Item 7.A. Major Shareholders

The following table sets forth certain information relating to certain owners of our capital stock as of December 31, 2022:


Title of Class	Identity of Person or Group	Shares Owned		Percentage of Class⁽¹⁾ (%)
Common stock	Government		116,841,794		18.2
	Korea Development Bank⁽²⁾		211,235,264		32.9

	Subtotal		328,077,058		51.1
	National Pension Service		45,332,619		7.0
	Employee Stock Ownership Association		7,074,777		1.1
	Directors as a group		1,892		0.0
	Public (non-Koreans)
	Common shares		78,145,072		12.2
	American depositary shares⁽³⁾		10,814,267		1.7
	Public (Koreans)		172,518,392		26.9

	Subtotal		313,887,019		48.9

	Total		641,964,077		100.0

Notes:

(1)	Percentages are based on issued shares of common stock.

(2)	Korea Development Bank is a Government-controlled entity.

(3)	The number for American depositary shares (ADSs) presented in this table is the number of common shares underlying the total outstanding ADSs. The actual number of the total outstanding ADSs, each representing one-half of a common share, is 21,628,534.

All of our shareholders have equal voting rights. See Item 10.B. “Memorandum and Articles of Incorporation—Description of Capital Stock—Voting Rights.”

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Item 7.B. Related Party Transactions

We are engaged in a variety of transactions with our affiliates. We have related party transactions with Government-controlled entities such as Korea Gas Corporation, our consolidated subsidiaries and our equity investees. In addition, we engage in related party transactions with Korea Development Bank, one of our major shareholders. See Note 47 of the notes to our consolidated financial statements included in this annual report for a description of transaction and balances with our related parties.

In the past three years, our related party transactions principally consisted of purchases of LNG from Korea Gas Corporation and long-term borrowings from Korea Development Bank. In 2020, 2021 and 2022, we and our generation subsidiaries purchased LNG from Korea Gas Corporation in the aggregate amount of Won 3,271 billion and Won 5,647 billion and Won 11,996 billion, respectively. As of December 31, 2022, we had borrowings from Korea Development Bank in the aggregate amount of Won 222 billion, which had an interest rate range of 0.50% to 4.60%, CB rate+0.90, as well as 1 year KDB rate between +0.81 and +0.91 for certain operating funds.

We also engage in extensive transactions with our consolidated generation subsidiaries, including the purchase of electricity from them through Korea Power Exchange, sales of electricity to them, payment and receipt of commissions for services and receivables and payables transactions. These are eliminated in the consolidation process. We also provide guarantees for certain of our affiliates. See Note 50 to our consolidated financial statements included in this annual report for payment guarantees. We also have certain relationships with the Korea Power Exchange. See Item 4.B. “Business Overview—Purchase of Electricity—Cost-based Pool System.”

For a further description of our transactions with our affiliates, see Note 47 of the notes to our consolidated financial statements included in this annual report.

Item 7.C. Interests of Experts and Counsel

Not applicable.

ITEM 8.

FINANCIAL INFORMATION

Item 8.A. Consolidated Statements and Other Financial Information

See Item 18. “Financial Statements” and our consolidated financial statements included in this annual report.

Legal Proceedings

As of December 31, 2022, we and our subsidiaries were engaged in 653 lawsuits as a defendant and 238 lawsuits as a plaintiff. As of the same date, the total amount of damages claimed against us and our subsidiaries was Won 982 billion, for which we have made a provision of Won 181 billion as of December 31, 2022, and the total amount claimed by us and our subsidiaries was Won 600 billion as of December 31, 2022. While the outcome of any of these lawsuits cannot presently be determined with certainty, our management currently believes that the final results from these lawsuits will not have a material adverse effect on our liquidity, financial position or results of operations.

The following are potentially significant claims pertaining to us and our subsidiaries.

In December 2013, the Supreme Court of Korea ruled that regular bonuses fall under the category of ordinary wages on the condition that those bonuses are paid regularly and uniformly, and that any agreement which excludes such regular bonuses from ordinary wage is invalid. One of the key rulings provides that bonuses that are given to employees (i) on a regular and continuous basis and (ii) calculated according to the actual number of days worked (iii) that are not incentive-based must be included in the calculation of “ordinary wages.” The Supreme Court further ruled that in spite of invalidity of such agreements, employees shall not retroactively

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claim additional wages incurred due to such court decision, in case that such claims bring to employees unexpected benefits which substantially exceeds the wage level agreed by employers and employees and cause an unpredicted increase in expenditures for their company, which would lead the company to material managerial difficulty or would be a threat to the existence of the company. In that case, the claim is not acceptable since it is unjust and is in breach of the principle of good faith. However, in December 2021, the Supreme Court ruled that the claim of workers for additional wages should not be easily rejected for the reason of good faith if there is a possibility of overcoming business difficulties in the future.

As a result of such ruling by the Supreme Court of Korea, we and our subsidiaries became subject to a number of lawsuits filed by various industry-wide and company-specific labor unions based on claims that ordinary wage had been paid without including certain items that should have been included as ordinary wage. In July 2016, the court ruled against us, and in accordance with the court’s ruling, in August 2016 we paid Won 55.1 billion to the employees for three years of back pay plus interest. As of December 31, 2022, our subsidiaries set aside an aggregate amount of Won 115 billion to cover any potential future payments of additional ordinary and wage in relation to the related lawsuits. All cases are currently on-going at various stages of proceedings. We cannot presently assure you that the courts will not ultimately rule against our subsidiaries in these lawsuits, or that the amount of our reserves against these lawsuits will be sufficient to cover the amounts actually payable under court rulings. Any of these developments would adversely affect our results of operations.

During the period from 2014 to 2022, certain residential customers filed class action lawsuits against us based on the claim that electricity tariffs, determined under the progressive rate structure, were excessive. As of December 31, 2022, we were subject to 14 such lawsuits brought by approximately 10,000 plaintiffs with an aggregate claim amount of Won 7.1 billion. Of these 14 lawsuits, we won seven cases in the third round of proceedings (for which we won all of the first and second rounds of proceedings, except for one case) and four cases are currently pending in the second round of proceedings (for which we won all of the first rounds of proceedings). Three cases are currently pending in the first round of proceedings.

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with the remaining victims would cost us approximately Won 6.0 billion. As of December 31, 2022, 68 lawsuits were filed against KEPCO for damages caused by the forest fire, with a total amount of claims around Won 292.5 billion. One claim was given judgment in favor of KEPCO, one claim was settled, and 66 lawsuits are pending. In addition, we are compensating the fire victims by providing a number of services, such as free supply of electricity, and implementing measures to prevent future fires that may result from an electrical arc, including a special maintenance program during the dry season between March and May. Also, we implemented operational measures such as tailored operation of protective devices and suspension of operation during periods of low loads and plan to change power facility designs to reflect regional and seasonal characteristics, all of which are intended to help prevent similar incidents from happening in the future. Despite our efforts, however, such incidents may occur again, and we cannot assure you that they will not have any material adverse effect on us, our reputation and our operating results.

In November 2019, prosecutors indicted six of KHNP’s employees for, among others, failing to immediately shut down Hanbit #1 reactor when its thermal output exceeded the threshold specified by the nuclear safety technical operations manual and filing false reports to the NSSC. KHNP is also indicted for secondary liability from its employees’ alleged wrongdoings. The case arose from the NSSC’s investigations into the manual shutdown of Hanbit #1 reactor during a diagnostic test in May 2019. On October 27, 2022, the Supreme Court of Korea dismissed the appeal and upheld the judgement that the employees are not guilty of violating the safety technical operations manual and driving a reactor without a license. In connection with filing false reports to the NSSC, the Supreme Court upheld that, of the five employees who were up for trial, three employees are guilty but two employees are not guilty. We cannot assure you that the outcomes of the case will not have any material adverse effect on us, our reputation and our operating results.

In addition, our generation subsidiaries, currently and from time to time, are involved in lawsuits incidental to the conduct of their business. A significant number of such lawsuits are based on the claim that the construction and operation of the electricity generation units owned by our generation subsidiaries have impaired neighboring fish farms. Our generation subsidiaries normally pay compensation to the members of fishery associations near our power plant complex for expected losses and damages arising from the construction and operation of their power plants in advance. Despite such compensation paid by us, a claim may still be filed against our generation subsidiaries challenging the compensation paid by us.

The nuclear power plant at Wolsong #1 unit began operations in 1982 and ended its operations in 2012 pursuant to its 30-year operating license. In February 2015, the NSSC evaluated the safety of operating Wolsong #1 unit and approved its extended operation until November 2022. However, on June 15, 2018, the board of directors of KHNP decided to retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the economic viability and regional sentiment of its continuing operation. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1 unit. The Board of Audit and Inspection of Korea carried out an investigation into whether the shutdown of Wolsong #1 unit was economically feasible and reported that the benefits of continued operations were set unreasonably low compared to the benefits of being immediately shut down, which may have led to the approval of the permanent shutdown of Wolsong #1 unit. According to the results for the investigation on October 20, 2020, KHNP established new guidelines for economic feasibility assessment in December 2021. On June 30, 2021, the Daejeon District Prosecutor’s Office indicted the former CEO of KHNP for his role in approving the early retirement of Wolsong #1 unit, which was the subject of the aforementioned investigation by the Board of Audit Inspection of Korea. The former CEO of KHNP is facing charges of breach of trust and obstruction of business and the case is currently being adjudicated at the Daejeon District Court.

In May 2019, a group of 730 Korean nationals brought a lawsuit against the NSSC to suspend the operation of Saeul #2 (formerly named as Shin-Kori #4). In July 2019, we have applied to participate in the lawsuit as a stakeholder. In February 2021, the Seoul Administrative Court dismissed the plaintiffs’ claim. The plaintiffs subsequently appealed in March 2021 and the plaintiff’s appeal was dismissed by the Seoul High Court in November 2022. The plaintiff has filed a petition to appeal. The case is currently pending at the Supreme Court of Korea. We cannot assure you that there will not be new challenges by civic groups or changes in the

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Government’s policies that may interfere with the construction of these new nuclear units in the future. We may experience a loss of revenues and an increase in fuel costs (as nuclear fuel is the cheapest compared to coal, LNG or oil) as a result of such challenges, which could adversely affect our results of operation and financial condition.

On May 18, 2021, the Gwangju District Prosecutor’s Office indicted one KHNP employee for falsely reporting the results of the investigation on welding errors in the reactor head penetration pipe to the Nuclear Safety Committee. On December 15, 2022, the Gwangju District Court acquitted KHNP and its employee. Since the prosecutor made an appeal, this case is currently being adjudicated at the Gwangju District Court.

We and our subsidiaries are also involved in the following arbitrations, among others.

•

Enzen, one of our subcontractors, filed an arbitration case against us over a contractual dispute in connection with the electric power IT modernization project in Kerala, India. We have not recognized any losses because the probability of economic benefit outflow is remote and the related amount cannot be reasonably determined.

On November 9, 2018, certain of our former executive and employees were convicted in a district court on charges for receiving bribes. In May 2019, the appellate court confirmed the charges.

As part of our efforts to prevent recurrence of similar cases, we have implemented the following measures:

•

Implementing web training program on integrity for all employees,

•

Strengthening integrity and anti-corruption evaluation systems for high-ranking officers and reflecting such results in performance evaluations,

•

Increasing the punishment and penalties for employee corruption, and

•

Declaring management unaffected by conflicts of interest through banning the pursuit of private interests in the course of job performance and creating a work environment that caters integrity.

We do not believe such claims or proceedings, individually or in the aggregate, have had or will have a material adverse effect on us and our generation subsidiaries. However, we cannot assure you that this will be the case in the future, given the possibility that we may become subject to more legal and arbitral proceedings arising from changes in the environmental laws and regulations as they become applicable to us and our generation subsidiaries, and the related growth in demand for more compensation by actual and potential affected parties. Further, we cannot assure you that the above convictions and/or related events will not have an adverse effect on our reputation as well as the price of our common shares and our American depositary shares.

Dividend Policy

For our dividend policy, see Item 10.B. “Memorandum and Articles of Incorporation—Description of Capital Stock—Dividend Rights.” For a description of the tax consequences of dividends paid to our shareholders, see Item 10.E. “Taxation—Korean Taxes—Shares or ADSs—Dividends on the Shares of Common Stock or ADSs” and Item 10.E. “Taxation—U.S. Federal Income Tax Consideration for U.S. Persons—Tax Consequences with Respect to Common Stock and ADSs—Distributions on Common Stock or ADSs.”

Item 8.B. Significant Changes

Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report.

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ITEM 9.

THE OFFER AND LISTING

Item 9.A. Offer and Listing Details

Notes

We have issued the following registered notes and debentures, which are traded principally in the over-the-counter market:

•

7.95% Zero-To-Full Debentures, due April 1, 2096 (the “7.95% Debentures”);

•

6% Debentures due December 1, 2026, (the “6% Debentures”);

•

7% Debentures due February 1, 2027 (the “7% Debentures”); and

•

6-3/4% Debentures due August 1, 2027 (the “6-3/4% Debentures,” and together with the 7.95% Debentures, the 6% Debentures and the 7% Debentures, the “Registered Debt Securities”).

Sales prices for the Registered Debt Securities are not regularly reported on any United States securities exchange or other United States securities quotation service.”

Share Capital

The principal trading market for our common stock is the Korea Exchange. Our common stock is also listed on the New York Stock Exchange in the form of ADSs. The ADSs have been issued by Citibank, N.A. as depositary and are listed on the New York Stock Exchange under the symbol “KEP.” One ADS represents one-half of one share of our common stock. As of December 31, 2022, 21,628,534 ADSs representing 1.7% shares of our common stock were outstanding.

Common Stock

Shares of our common stock are listed on the KRX KOSPI Market of the Korea Exchange. The table below shows the high and low closing prices on the KRX KOSPI Market of the Korea Exchange for our common stock since 2018.


	Closing Price
Period	High		Low
	(In Won)
2018
First Quarter		37,750		30,850
Second Quarter		37,750		32,000
Third Quarter		33,300		28,700
Fourth Quarter		34,350		23,850
2019
First Quarter		35,800		29,900
Second Quarter		30,350		24,700
Third Quarter		27,950		24,700
Fourth Quarter		29,250		25,100
2020
First Quarter		28,500		16,250
Second Quarter		23,850		19,000
Third Quarter		21,950		18,700
Fourth Quarter		28,300		19,950

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	Closing Price
Period	High		Low
	(In Won)
2021
First Quarter		27,150		22,700
Second Quarter		27,150		23,350
Third Quarter		25,650		23,150
Fourth Quarter		23,750		20,750
Fourth Quarter		28,300		19,950
2022
First Quarter		24,750		20,100
Second Quarter		23,800		21,050
Third Quarter		22,950		18,900
Fourth Quarter		22,450		16,650
October		19,850		16,650
November		20,700		16,700
December		22,450		19,350
2023
First Quarter		20,400		17,230
January		20,400		19,350
February		19,660		18,050
March		18,890		17,230
April (through April 7)		18,130		17,890

ADSs

The table below shows the high and low closing prices on the New York Stock Exchange for the outstanding ADSs since 2018. Each ADS represents one-half of one share of our common stock.


	Closing Price per ADS
Period	High		Low
	(In US$)
2018
First Quarter		17.83		14.28
Second Quarter		17.43		14.34
Third Quarter		14.70		12.62
Fourth Quarter		14.96		10.52
2019
First Quarter		15.75		13.01
Second Quarter		13.20		10.42
Third Quarter		11.79		10.24
Fourth Quarter		12.22		10.52
2020
First Quarter		17.82		10.51
Second Quarter		15.65		10.15
Third Quarter		14.59		11.20
Fourth Quarter		16.25		11.47
Fourth Quarter		12.22		10.52
2021
First Quarter		12.37		10.04
Second Quarter		12.18		10.39
Third Quarter		11.06		9.84
Fourth Quarter		10.04		8.77

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	Closing Price per ADS
Period	High		Low
	(In US$)
2022
First Quarter		10.18		8.34
Second Quarter		9.54		8.26
Third Quarter		8.79		6.72
Fourth Quarter		8.64		5.80
October		7.11		5.80
November		8.08		5.88
December		8.64		7.41
2023
First Quarter		8.42		6.38
January		8.42		7.76
February		8.05		6.63
March		7.32		6.38
April (through April 6)		6.94		6.87

Item 9.B. Plan of Distribution

Not applicable.

Item 9.C. Markets

The Korea Exchange

The Korea Exchange began its operations in 1956, originally under the name of the Korea Stock Exchange. On January 27, 2005, pursuant to the Korea Securities and Futures Exchange Act, the Korea Exchange was officially created through the consolidation of the Korea Stock Exchange, the Korea Futures Exchange, the KOSDAQ Stock Market, Inc., or KOSDAQ, and the KOSDAQ Committee within the Korea Securities Dealers Association, which was in charge of the management of the KOSDAQ. The KRX KOSPI Market of the Korea Exchange, formerly the Korea Stock Exchange, has a single trading floor located in Seoul. The Korea Exchange is a limited liability company, the shares of which are held by (i) securities companies and futures companies that were the members of the Korea Stock Exchange or the Korea Futures Exchange and (ii) the shareholders of the KOSDAQ.

As of March 31, 2023, the aggregate market value of equity securities listed on the KOSPI of the Korea Exchange was approximately Won 1,957,926 billion. The average daily trading volume of equity securities for the first quarter of 2023 was approximately 470 million shares with an average transaction value of Won 8,005 billion.

The Korea Exchange has the power in some circumstances to suspend trading of shares of a given company or to de-list a security. The Korea Exchange also restricts share price movements. All listed companies are required to file accounting reports annually, semi-annually and quarterly and to release immediately all information that may affect trading of a security.

The Government has in the past exerted, and continues to exert, substantial influence over many aspects of the private sector business community which can have the intention or effect of depressing or boosting the market. In the past, the Government has informally both encouraged and restricted the declaration and payment of dividends, induced mergers to reduce what it considers excess capacity in a particular industry and induced private companies to publicly offer their securities.

The Korea Exchange publishes the Korea Composite Stock Price Index, or KOSPI, every ten seconds, which is an index of all equity securities listed on the KRX KOSPI Market of the Korea Exchange. On January 1,

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1983, the method of computing KOSPI was changed from the Dow Jones method to the aggregate value method. In the new method, the market capitalizations of all listed companies are aggregated, subject to certain adjustments, and this aggregate is expressed as a percentage of the aggregate market capitalization of all listed companies as of the base date, January 4, 1980.

Movements in KOSPI in the past six years are set out in the following table:


	Opening		High		Low		Closing
2018		2,479.65		2,598.19		1,996.05		2,041.04
2019		2,010.00		2,248.63		1,909.71		2,197.67
2020		2,175.17		2,873.47		1,457.64		2,873.47
2021		2,944.45		3,305.21		2,839.01		2,977.65
2022		2,988.77		2,989.24		2,155.49		2,236.40
2023 (through April 7)		2,225.67		2,495.21		2,218.68		2,400.41

Source: The Korea Exchange

Shares are quoted “ex-dividend” on the first trading day of the relevant company’s accounting period; since the calendar year is the accounting period for the majority of listed companies, this may account for the drop in KOSPI between its closing level at the end of one calendar year and its opening level at the beginning of the following calendar year.

With certain exceptions, principally to take account of a share being quoted “ex-dividend” and “ex-rights,” upward and downward movements in share prices of any category of shares on any day are limited under the rules of the Korea Exchange to 30% of the previous day’s closing price of the shares, rounded down as set out below:


Previous Day’s Closing Price (Won)	Rounded Down to (Won)
less than 2,000	W	1
2,000 to less than 5,000		5
5,000 to less than 20,000		10
20,000 to less than 50,000		50
50,000 to less than 200,000		100
200,000 to less than 500,000		500
500,000 or more		1,000

Source: The Korea Exchange

Note:

(1)	The above table is applicable since January 25, 2023.

As a consequence, if a particular closing price is the same as the price set by the fluctuation limit, the closing price may not reflect the price at which persons would have been prepared, or would be prepared to continue, if so permitted, to buy and sell shares. Orders are executed on an auction system with priority rules to deal with competing bids and offers.

Due to deregulation of restrictions on brokerage commission rates, the brokerage commission rate on equity securities transactions may be determined by the parties, subject to commission schedules being filed with the Korea Exchange by the securities companies. In addition, a securities transaction tax will generally be imposed on the transfer of shares or certain securities representing rights to subscribe for shares. A special agricultural and fishery tax of 0.15% of the sales prices will also be imposed on transfer of these shares and securities on the Korea Exchange. See Item 10.E. “Taxation—Korean Taxes.”

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The number of companies listed on the KRX KOSPI Market of the Korea Exchange since 2016, the corresponding total market capitalization at the end of the periods indicated and the average daily trading volume for those periods are set forth in the following table:


Year	Number of Listed Companies		Total Market Capitalization on the Last Day for Each Period				Average Daily Trading Volume, Value
Year	Number of Listed Companies		(Millions of Won)		(Thousands of U.S. dollars)⁽¹⁾		(Thousands of Shares)		(Millions of Won)		(Thousands of U.S. dollars)⁽¹⁾
2018		788		1,343,971,858		1,207,630,387		397,972		6,548,622		5,884,286
2019		799		1,475,909,366		1,277,290,667		470,723		4,989,807		4,318,309
2020		795		1,980,543,162		1,823,536,656		895,256		12,200,417		11,233,235
2021		818		2,203,366,546		1,853,749,408		1,039,479		15,424,224		12,976,800
2022		820		1,976,432,573		1,568,348,336		595,196		9,008,397		7,148,387
2023 (through April 7)		827		1,969,009,467		1,495,412,370		489,072		8,261,155		6,274,136

Source: The Korea Exchange

Note:

(1)	Converted at the market average exchange rate as announced by Seoul Money Brokerage Services, Ltd. in Seoul at the end of the periods indicated.

The Korean securities markets are principally regulated by the Financial Services Commission and the Financial Investment Services and Capital Markets Act. The law imposes restrictions on insider trading and price manipulation, requires specified information to be made available by listed companies to investors and establishes rules regarding margin trading, proxy solicitation, takeover bids, acquisition of treasury shares and reporting requirements for shareholders holding substantial interests.

Protection of Customer’s Interest in Case of Insolvency of Financial Investment Companies with a Brokerage License

Under Korean law, the relationship between a customer and a financial investment company with a brokerage license in connection with a securities sell or buy order is deemed to be consignment, and the securities acquired by a consignment agent (i.e., the financial investment company with a brokerage license) through such sell or buy order are regarded as belonging to the customer insofar as the customer and the consignment agent’s creditors are concerned. Therefore, in the event of bankruptcy or reorganization procedures involving a financial investment company with a brokerage license, the customer of such financial investment company is entitled to the proceeds of the securities sold by such financial investment company.

When a customer places a sell order with a financial investment company with a brokerage license which is not a member of the Korea Exchange and this financial investment company places a sell order with another financial investment company with a brokerage license which is a member of the Korea Exchange, the customer is still entitled to the proceeds of the securities sold received by the non-member company from the member company regardless of the bankruptcy or reorganization of the non-member company.

Likewise, when a customer places a buy order with a non-member company and the non-member company places a buy order with a member company, the customer has the legal right to the securities received by the non-member company from the member company because the purchased securities are regarded as belonging to the customer insofar as the customer and the non-member company’s creditors are concerned.

Under the Financial Investment Services and Capital Markets Act, the Korea Exchange is obliged to indemnify any loss or damage incurred by a counterparty as a result of a breach by its members. If a financial investment company with a brokerage license which is a member of the Korea Exchange breaches its obligation in connection with a buy order, the Korea Exchange is obliged to pay the purchase price on behalf of the breaching member.

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As the cash deposited with a financial investment company with a brokerage license is regarded as belonging to such financial investment company, which is liable to return the same at the request of its customer, the customer cannot take back deposited cash from the financial investment company with a brokerage license if a bankruptcy or reorganization procedure is instituted against such financial investment company and, therefore, can suffer from loss or damage as a result. However, the Depositor Protection Act provides that Korean Deposit Insurance Corporation will, upon the request of the investors, pay investors up to Won 50 million per depositor per financial institution in case of the such financial investment company’s bankruptcy, liquidation, cancelation of securities business license or other insolvency events (collectively, the “Insolvency Events”). Pursuant to the Financial Investment Services and Capital Markets Act, subject to certain exceptions, financial investment companies with a brokerage license are required to deposit the cash received from their customers with the Korea Securities Finance Corporation, a special entity established pursuant to the Financial Investment Services and Capital Markets Act. Set-off or attachment of cash deposits by financial investment companies with a brokerage license is prohibited. The premiums related to this insurance under the Depositor Protection Act are paid by financial investment companies with a brokerage license.

Item 9.D. Selling Shareholders

Not applicable.

Item 9.E. Dilution

Not applicable.

Item 9.F. Expenses of the Issue

Not applicable.

ITEM 10.

ADDITIONAL INFORMATION

Item 10.A. Share Capital

Not applicable.

Item 10.B. Memorandum and Articles of Incorporation

Set forth below is information relating to our capital stock, including brief summaries of material provisions of our Articles of Incorporation, the KEPCO Act, the Financial Investment Services and Capital Markets Act, the Korean Commercial Act and certain related laws of Korea, all currently in effect. The following summaries are qualified in their entirety by reference to our Articles of Incorporation and the applicable provisions of the KEPCO Act, Financial Investment Services and Capital Markets Act, the Korean Commercial Act, the Act on the Management of Public Institutions and certain related laws of Korea.

Objects and Purposes

We are a statutory juridical corporation established under the KEPCO Act for the purpose of ensuring “stabilization of the supply and demand of electric power, and further contributing toward the sound development of the national economy through expediting development of electric power resources and carrying out proper and effective operation of the electricity business.” The KEPCO Act and our Articles of Incorporation (Article 2) contemplate that we engage in the following activities:

development of electric power resources;

generation, transmission, transformation and distribution of electricity and other related business activities;

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research and development of technology related to the businesses mentioned in items 1 and 2;

overseas businesses related to the businesses mentioned in items 1 through 3;

investments or contributions related to the businesses mentioned in items 1 through 4;

businesses incidental to items 1 through 5;

development and operation of certain real estate held by us to the extent that:

other activities entrusted by the Government.

Our registered name is “Hankook Chollryuk Kongsa” in Korean and “Korea Electric Power Corporation” in English. Our registration number in the commercial registry office is 114671-0001456.

Directors

Under the KEPCO Act and our Articles of Incorporation, our board of directors consists of our president, standing directors and non-standing directors. A majority of the board members constitutes a voting quorum, and resolutions will be passed by a majority of the board members. Directors who have an interest in certain agenda proposed to the board may not vote on such issues.

On April 2, 2021, we amended our Articles of Incorporation to accommodate new requirements under the Korean Commercial Act by requiring at least one director who will serve as a member of the audit committee to be appointed separately from other directors and adding details to the dividend record date in the article on shareholder rights.

On November 7, 2022, we further amended our Articles of Incorporation to incorporate an amendment to the Act on the Management of Public Institutions implemented on August 4, 2022, which requires a “market-oriented public enterprise” like us to appoint at least one non-standing director who has held his or her office for at least three years and either (a) is recommended by the representative of the employees (or the representative of the labor union if there is a labor union comprising the majority of the employees) or (b) obtains consent from the majority of the employees. The term of office of a labor director is two years, and candidates must be recommended and approved in accordance with the Act. In accordance with the guidelines for the management of public institutions, we will place labor directors in the appropriate departments or duties to ensure that they are able to carry out their responsibilities efficiently, and provide them with educational opportunities.

The standards of remuneration for our officers, including directors, shall be determined by a resolution of the board of directors, provided that the maximum amount of remuneration to be paid to our officers shall be determined by shareholder resolution and provided that the remuneration standards for the president and standing directors shall be determined by board resolution in accordance with the guideline thereon established by the Minister of the Ministry of Economy and Finance through review and resolution of our management committee. Directors who have an interest may not participate in the meeting of the board of directors for determining the remuneration for officers.

Neither the KEPCO Act nor our Articles of Incorporation have provisions relating to (i) borrowing powers exercisable by the directors and how such borrowing powers can be varied, (ii) retirement or non-retirement of directors under an age limit requirement, or (iii) the number of shares required for a director’s qualification.

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Share Capital

Currently, our authorized share capital is 1,200,000,000 shares, which consists of shares of common stock and shares of non-voting preferred stock, par value Won 5,000 per share. Under our Articles of Incorporation, we are authorized to issue up to 150,000,000 non-voting preferred shares. As of December 31, 2022, 641,964,077 common shares were issued and no non-voting preferred shares have been issued. All of the issued and outstanding common shares are fully-paid and non-assessable and are in registered form. Our shares are electronically registered with our account management institution in lieu of issuing share certificates.

Description of Capital Stock

Dividend Rights

Under the KEPCO Act, we are authorized to pay preferential dividends on our shares held by public shareholders as opposed to those held by the Government. Dividends to public shareholders are distributed in proportion to the number of shares of the relevant class of capital stock owned by each public shareholder following approval by the shareholders at a general meeting of shareholders. Korea Development Bank may receive dividends in proportion to the numbers of our shares held by them. Under the Korean Commercial Act and our Articles of Incorporation, we will pay full annual dividends on newly issued shares.

Under our Articles of Incorporation, holders of non-voting preferred shares (of which there are currently none) are entitled to receive an amount not less than 8% of their par value as determined by a resolution of the board of directors at the time of their issuance. However, stock dividends shall be paid based on par value and may not exceed the amount equivalent to a half of the total amount of profit available for dividend payment.

We declare our dividend annually at the annual general meeting of shareholders which is held within three months after the end of the fiscal year. The annual dividend is paid to the shareholders on record as of the end of the fiscal year preceding the annual shareholders’ meeting. The Ministry of Justice of Korea has recently issued an official ruling to the effect that (i) a record date for determining shareholders entitled to exercise of their voting rights at the general meeting of shareholders for declaration of dividends and (ii) a record date for determining the shareholders entitled to payment of dividends so declared may be separately set. Based on the foregoing official ruling, the Government is recommending the listed companies to set the record date for determining the shareholders entitled to payment of dividends after the date of the general meeting of shareholders by resolution of their board of directors so that the investors may invest in the shares of the listed companies after checking whether the dividend is declared and the amount of dividend so declared. We are considering whether to amend our Articles of Incorporation in line with the recommendation but we cannot assure such amendment will take place.

Annual dividends may be distributed either in cash or in our shares. However, a dividend of shares must be distributed at par value, and dividends in shares may not exceed one-half of the annual dividend.

Under the Korean Commercial Act and our Articles of Incorporation, we do not have an obligation to pay any annual dividend unclaimed for five years from the payment date.

The KEPCO Act provides that we shall not pay an annual dividend unless we have made up any accumulated deficit and set aside as a legal reserve an amount equal to 20.0% or more of our net profit until our accumulated reserve reaches one-half of our stated capital.

Distribution of Free Shares

In addition to dividends in the form of shares to be paid out of retained or current earnings, the Korean Commercial Act permits us to distribute to our shareholders an amount transferred from our capital surplus or legal reserve to stated capital in the form of free shares.

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Voting Rights

Holders of our common shares are entitled to one vote for each common share, except that voting rights with respect to any common shares held by us or by a corporate shareholder, more than one-tenth of whose outstanding capital stock is directly or indirectly owned by us, may not be exercised. Any person (with certain exceptions) who holds more than 3% of our issued and outstanding shares cannot exercise voting rights with respect to the shares in excess of this 3% limit. See “—Limitation on Shareholdings.” Pursuant to the Korean Commercial Act, cumulative voting is permissible in relation to the appointment of directors. Under the Korean Commercial Act, a cumulative vote can be requested by the shareholders of a corporation representing at least 1% of the total voting shares of such corporation if the relevant shareholders’ meeting is intended to elect more than two seats of the board of directors and the request for cumulative voting is made to the management of the corporation in writing at least six weeks in advance of the shareholders’ meeting. Under this new voting method, each shareholder will have multiple voting rights corresponding to the number of directors to be appointed in such voting and may exercise all such voting rights to elect one director. Shareholders are entitled to vote cumulatively unless the Articles of Incorporation expressly prohibit cumulative voting. Our current Articles of Incorporation do not prohibit cumulative voting. Except as otherwise provided by law or our Articles of Incorporation, a resolution can be adopted at a general meeting of shareholders by affirmative majority vote of the voting shares of the shareholders present or represented at a meeting, which must also represent at least one-fourth of the voting shares then issued and outstanding. The holders of our non-voting preferred shares (other than enfranchised preferred shares (as described below)) are not entitled to vote on any resolution or to receive notice of any general meeting of shareholders unless the agenda of the meeting includes consideration of a resolution on which such holders are entitled to vote. If we are unable to pay any dividend to holders of non-voting preferred shares as provided in our Articles of Incorporation, the holders of non-voting preferred shares will become enfranchised and will be entitled to exercise voting rights until such dividends are paid. The holders of these “enfranchised preferred shares” have the same rights as holders of our common shares to request, receive notice of, attend and vote at a general meeting of shareholders. Pursuant to the KEPCO Act and our Articles of Incorporation, the appointment of standing directors, the president and standing member of the audit committee are subject to shareholder approval.

Under the Korean Commercial Act, for the purpose of electing our standing member of the audit committee, a shareholder (together with certain related persons) holding more than 3% of the total shares having voting rights may not exercise voting rights with respect to shares in excess of such 3% limit and, according to the amendments to Articles of Incorporation and the Korean Commercial Act, the standing member of the audit committee should be appointed separately from other directors with the procedures and methods stipulated in Article 542-12 of the Korean Commercial Act. On November 7, 2022, we amended our Articles of Incorporation to incorporate an amendment to the Commercial Act implemented on December 29, 2020, which requires the affirmative votes of at least a majority of the voting rights of the shareholders present at the shareholders meeting for appointment of a member of the audit committee in lieu of the affirmative votes of (a) at least a majority of the voting rights of the shareholders present at the shareholders meeting and (b) at least one-fourth (1/4) of the total number of shares with the voting rights issued and outstanding if the shareholders are permitted to exercise a vote by electronic means at such shareholders meeting by the resolution of our board of directors.

The Korean Commercial Act provides that the approval by holders of at least two-thirds of those shares having voting rights present or represented at a meeting, where such shares also represent at least one-third of the total issued and outstanding shares having voting rights, is required in order to, among other things:

•

amend our Articles of Incorporation;

•

remove a director (including a member of the audit committee);

•

effect any dissolution, merger, consolidation or spin-off of us;

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transfer the whole or any significant part of our business;

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effect the acquisition by us of all of the business of any other company;

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•

effect the acquisition by us of the business of another company that may have a material effect on our business;

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reduce capital; or

•

issue any new shares at a price lower than their par value.

Under our Articles of Incorporation, an approval by the Ministry of Trade, Industry and Energy is required in order to amend the Articles of Incorporation. Any change to our authorized share capital requires an amendment to our Articles of Incorporation.

In addition, in the case of amendments to our Articles of Incorporation or any merger or consolidation of us or in certain other cases which affect the rights or interests of the non-voting preferred shares a resolution must be adopted by a meeting of the holders of non-voting preferred shares approving such event. This resolution may be adopted if approval is obtained from holders of at least two-thirds of those non-voting preferred shares present or represented at such meeting and such non-voting preferred shares also represent at least one-third of our total issued and outstanding non-voting preferred shares.

A shareholder may exercise his voting rights by proxy. The proxy shall present the power of attorney prior to the start of the general meeting of shareholders. Under the Financial Investment Services and Capital Markets Act and our Articles of Incorporation, no one other than us may solicit a proxy from shareholders.

Subject to the provisions of the deposit agreement, holders of our American Depositary Shares (“ADSs”) are entitled to instruct the depositary, whose agent is the record holder of the underlying common shares, how to exercise voting rights relating to those underlying common shares.

Preemptive Rights and Issuance of Additional Shares

Authorized but unissued shares may be issued at such times and, unless otherwise provided in the Korean Commercial Act, upon such terms as our board of directors may determine. The new shares must be offered on uniform terms to all our shareholders who have preemptive rights and who are listed on the shareholders’ register as of the record date. Subject to the limitations described under “—Limitation on Shareholdings” below and with certain other exceptions, all our shareholders are entitled to subscribe for any newly issued shares in proportion to their existing shareholdings. Under the Korean Commercial Act, we may vary, without shareholder approval, the terms of such preemptive rights for different classes of shares. Public notice of the preemptive rights to new shares and their transferability must be given not less than two weeks (excluding the period during which the shareholders’ register is closed) prior to the record date. Our board of directors may determine how to distribute shares for which preemptive rights have not been exercised or where fractions of shares occur.

Our Articles of Incorporation provide that new shares that are (1) publicly offered pursuant to the Financial Investment Services and Capital Markets Act, (2) issued to members of our employee stock ownership association, (3) represented by depositary receipts, (4) issued through offering to public investors, or (5) issued to investors in kind under the State Property Act may be issued pursuant to a resolution of the board of directors to persons other than existing shareholders, who in such circumstances will not have preemptive rights.

Under our Articles of Incorporation, we may issue convertible bonds or bonds with warrants each up to an aggregate principal amount of Won 2,000 billion and Won 1,000 billion, respectively, to persons other than existing shareholders. However, the aggregate principal amount of convertible bonds and bonds with warrants so issued to persons other than existing shareholders may not exceed Won 2,000 billion. The convertible bonds or bonds with warrants issued by us shall be electronically registered on the electronic registry maintained by the electronic registrar, in lieu of issuing any physical certificates representing such bonds in accordance with the Electronic Registration Act.

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Under the Financial Investment Services and Capital Markets Act and our Articles of Incorporation, members of our employee stock ownership association, whether or not they are our shareholders, have a preemptive right, subject to certain exceptions, to subscribe for up to 20.0% of any shares publicly offered pursuant to the Financial Investment Services and Capital Markets Act. This right is exercisable only to the extent that the total number of shares so acquired and held by members of our employee stock ownership association does not exceed 20.0% of the total number of shares then outstanding.

Liquidation Rights

In the event of our liquidation, the assets remaining after payment of all debts, liquidation expenses and taxes will be distributed among shareholders in proportion to the number of shares held. Holders of our non-voting preferred shares have no preference in liquidation.

Rights of Dissenting Shareholders

In certain limited circumstances (including, without limitation, the transfer of the whole or any significant part of our business or the merger, or consolidation upon a split-off of us with another company), dissenting holders of shares have the right to require us to purchase their shares. To exercise such right, shareholders must submit a written notice of their intention to dissent to us prior to the general meeting of shareholders or the class meeting of holders of non-voting preferred shares, as the case may be. Within 20 days after the date on which the relevant resolution is passed at such meeting, such dissenting shareholders must request us in writing to purchase their shares. We are obligated to purchase the shares of dissenting shareholders within one month after the expiration of such 20-day period. The purchase price for such shares must be determined through negotiation between the dissenting shareholders and us. Under the Financial Investment Services and Capital Markets Act, if we cannot agree on a price through negotiation, the purchase price will be the average of (1) the weighted average of the daily share price on the Korea Exchange for a two-month period before the date of adoption of the relevant board resolution, (2) the weighted average of the daily share price on the Korea Exchange for the one month period before such date and (3) the weighted average of the daily share price on the Korea Exchange for the one week period before such date. However, if we or dissenting shareholders who requested us to purchase their shares oppose such purchase price, the determination of a purchase price may be filed with a court. Holders of ADSs will not be able to exercise dissenter’s rights unless they have withdrawn the underlying Common Stock and become our direct shareholders.

Transfer of Shares

Under the Electronic Registration Act, the transfer of shares is effected by the electronic registration of such transfers on an electronic register pursuant to the Electronic Registration Act, under which the electronic registration of stocks, bonds and transfers thereof will be required. To assert shareholders’ right against us, the transferee must have his name and address registered on our electronic register of shareholders. For this purpose, a shareholder is required to apply for electronic registration of transfers between accounts.

These requirements do not apply to the holders of ADSs. Under current Korean regulations, the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies with a dealing, brokerage or collective investment license and internationally recognized foreign custodians are authorized to act as agents and provide related services for foreign shareholders. Our transfer agent is Kookmin Bank, located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul, Korea. Certain foreign exchange controls and securities regulations apply to the transfer of our shares by non-residents of Korea or non-Koreans. See Item 9. “The Offer and Listing.”

Acquisition of Our Own Shares

Under the Korean Commercial Act, we may acquire our own shares through (1) purchases on a stock exchange or (2) purchase of the shares in proportion to the number of shares held by each shareholder on equal

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terms and conditions, by a resolution at a Shareholders’ meeting. The aggregate amount of the acquisition price shall not exceed the excess of our net assets, on a non-consolidated basis, over the sum of (1) our stated capital, (2) the total amount of our capital surplus reserve and earned surplus reserve which have accumulated up to the end of the previous fiscal year, (3) our earned surplus required to be accumulated for the then current fiscal year and (4) our net assets stated in the balance sheet as being increased as a result of the evaluation of the assets and liabilities in accordance with our accounting principles without being set off against any unrealized losses. In addition, under the Korean Commercial Act, we may not acquire our own shares if our net assets may fall short of the aggregate amount of the item (1) to (4) above, on a non-consolidated basis, as of the conclusion of the relevant business year of us. In general, our subsidiaries 50% or more of whose shares are owned by us may not acquire our shares.

General Meeting of Shareholders

The ordinary general meeting of our shareholders is held within three months after the end of each fiscal year, and subject to board resolution or court approval, an extraordinary general meeting of our shareholders may be held as necessary or at the request of shareholders holding an aggregate of 1.5% or more of our outstanding common shares for at least six consecutive months. Under the Korean Commercial Act, an extraordinary general meeting of shareholders may be convened at the request of our audit committee, subject to a board resolution or court approval. Holders of non-voting preferred shares may only request a general meeting of shareholders once the non-voting preferred shares have become enfranchised as described under “—Description of Capital Stock—Voting Rights” above. Written notices setting forth the date, place and agenda of the meeting must be given to shareholders at least two weeks prior to the date of the general meeting of shareholders. However, pursuant to the Korean Commercial Act and our Articles of Incorporation, with respect to holders of less than 1% of the total number of our issued and outstanding shares which are entitled to vote, notice may be given by placing at least two public notices at least two weeks in advance of the meeting in at least two daily newspapers published in Seoul or by placing a public notice in the electrical disclosure system of the Financial Supervisory Service or the Korea Exchange, at least two weeks in advance of the meeting. Currently, for giving such notice, we use an electronic disclosure system available for access at a website maintained by the Financial Supervisory Service (known as the Data Analysis, Retrieval and Transfer System, or DART). Shareholders not on the shareholders’ register as of the record date are not entitled to receive notice of the general meeting of shareholders or attend or vote at such meeting. Holders of the enfranchised preferred shares on the shareholders’ register as of the record date are entitled to receive notice of, and to attend and vote at, the general meetings. Otherwise, holders of non-voting preferred shares are not entitled to receive notice of general meetings of shareholders or vote at such meetings but may attend such meetings.

The general meeting of shareholders is held in Naju, Jeollanam-do.

Our transfer agent, Kookmin Bank, maintains the register of our shareholders at its office in Seoul, Korea. It registers transfers of our shares on the register of shareholders upon presentation of the share certificates.

The record date for annual dividends is December 31. For the purpose of determining the holders of shares entitled to annual dividends, the register of shareholders may be closed from January 1 to January 31 of each year. The Ministry of Justice of Korea has recently issued an official ruling to the effect that (i) a record date for determining shareholders entitled to exercise of their voting rights at the general meeting of shareholders for declaration of dividends and (ii) a record date for determining the shareholders entitled to payment of dividends so declared may be separately set. Based on the foregoing official ruling, the Government is recommending the listed companies to set the record date for determining the shareholders entitled to payment of dividends after the date of the general meeting of shareholders by resolution of their board of directors so that the investors may invest in the shares of the listed companies after checking whether the dividend is declared and the amount of dividend so declared. We are considering whether to amend our Articles of Incorporation in line with the recommendation but we cannot assure such amendment will take place.

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Further, the Korean Commercial Act and our Articles of Incorporation permit us at least two weeks’ public notice to set a record date and/or close the register of shareholders for not more than three months for the purpose of determining the shareholders entitled to certain rights pertaining to our shares. The trading of our shares and the electronic registration of share transfer between accounts pursuant to the Electronic Registration Act in respect of them may continue while the register of shareholders is closed.

Annual Report

At least one week prior to the annual general meeting of shareholders, our business report and audited consolidated financial statements must be made available for inspection at our principal office and at all branch offices. Copies of business reports, the audited non-consolidated financial statements and any resolutions adopted at the general meeting of shareholders will be available to our shareholders.

Under the Financial Investment Services and Capital Markets Act, we must file with the Financial Services Commission and the Korea Exchange an annual report within 90 days after the end of our fiscal year, a half-year report within 45 days after the end of the first six months of our fiscal year and quarterly reports within 45 days after the end of the first three months and nine months of our fiscal year. Following our adoption of IFRS starting in January 1, 2011 pursuant to regulatory requirements for listed companies in Korea, we are required to file annual, half-year and quarterly reports containing annual and interim financial statements and notes thereto on a consolidated basis as well as on a separate basis.

In addition, pursuant to the Enforcement Decree of the Commercial Act amended on January 29, 2020 and implemented from January 1, 2021, when a Korean listed company convokes a meeting of shareholders, it shall provide shareholders with the annual report and the audit report by sending them via email or posting them on its website no later than a week prior to the meeting of shareholders.

Limitation on Shareholdings

No person other than the Government, our employee stock ownership association and persons who obtain an approval from the Financial Services Commission may hold for its account more than 3% of our total issued and outstanding shares. In calculating shareholdings for this purpose, shares held by your spouse and your certain relatives or by your certain affiliates (such spouses, relatives and affiliates are together referred to as “Affiliated Holders”) are deemed to be held by you. If you hold our shares in violation of this 3% limit, you are not entitled to exercise the voting rights or preemptive rights of our shares in excess of such 3% limit and the Financial Services Commission may order you to take necessary corrective action. In addition, the KEPCO Act currently requires that the Government, directly or through Korea Development Bank, own not less than 51% of our capital. For other restrictions on shareholdings, see Item 9. “The Offer and Listing.”

Change of Control

The KEPCO Act requires that the Government, directly or pursuant to the Korea Development Bank Act, through Korea Development Bank, own not less than 51% of our capital.

Disclosure of Share Ownership

Under the Financial Investment Services and Capital Markets Act, any person whose direct or beneficial ownership of a listed company’s shares with voting rights, equity-related debt securities including convertible bonds, bonds with warrants, exchangeable bonds, certificates representing the rights to subscribe for common shares, derivatives-linked securities and depository receipts of the aforementioned securities (collectively referred to as “Equity Securities”), together with the Equity Securities directly or beneficially owned by certain related persons or by any person acting in concert with the person, accounts for 5% or more of our total outstanding Equity Securities is required to report the status and purpose (in terms of whether the purpose of

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shareholding is to participate in the management of the issuer) of the holdings and the material contents of the agreements relating to the Equity Securities and other matters prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act to the Financial Services Commission of Korea and the Korea Exchange within five business days after reaching the 5% ownership interest threshold.

In addition, (A) any change in the number of the owned Equity Securities that is 1% or more of the total outstanding Equity Securities subsequent to the report or (B) any change in (i) the purpose of the shareholding or ownership of the Equity Securities (whether such shareholding or ownership is to participate in the management of the listed company or not), (ii) whether such shareholding or ownership is for a simple investment purpose or not (limited to the case where the purpose of the shareholding or ownership of the Equity Securities is not to participate in the management of the listed company), (iii) the major terms and conditions of the agreements relating to the Equity Securities owned (such as trust agreements and collateral agreements) to the extent the number of relevant Equity Securities is 1% or more of the total outstanding Equity Securities or (iv) the type of the ownership (direct ownership or holdings) to the extent the number of relevant Equity Securities is equal to or exceeds 1% of the total outstanding Equity Securities, subsequent to the report, must be reported to the Financial Services Commission and the Korea Exchange. Changes set forth in clauses (A) and (B) above must be reported within five business days from the date of such change (or by the tenth day of the month following the month in which the change described in (A) above occurs, in the case of a person (other than certain professional investors prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act) with a purpose of simple investment, or within ten business days from the date of such change in the case of a person with a purpose of general investment with no intent to seek management control).

Notwithstanding the foregoing, certain professional investors prescribed by the Presidential Decree of the Financial Investment Services and Capital Markets Act may report the 5% ownership status and the changes described in (A) above to the Financial Services Commission and the Korea Exchange by the tenth day of the month immediately following the end of the quarter in which such 5% ownership interest is reached or the change occurs.

When filing a report to the Financial Services Commission and the Korea Exchange in accordance with the reporting requirements described above, a copy of such report must be sent to the relevant listed company. Violation of these reporting requirements may subject a person to sanctions such as prohibition on the exercise of voting rights with respect to the Equity Securities for which the reporting requirement was violated or fines or imprisonment. Furthermore, the Financial Services Commission may order the disposal of the Equity Securities for which the reporting requirement was violated or may impose administrative fine.

A person reporting to the Financial Services Commission and the Korea Exchange that his purpose of holding the Equity Securities is to participate in the management of the listed company is prohibited from acquiring additional Equity Securities of the listed company and exercising voting rights during the period commencing from the date on which the event triggering the reporting requirements occurs to the fifth day from the date on which the report is made.

Item 10.C. Material Contracts

None.

Item 10.D. Exchange Controls

General

The Foreign Exchange Transaction Act and the Presidential Decree and regulations under that Act and Decree, or collectively the Foreign Exchange Transaction Laws, regulate investment in Korean securities by non-residents and issuance of securities outside Korea by Korean companies. Non-residents may invest in

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Korean securities pursuant to the Foreign Exchange Transaction Laws. The Financial Services Commission has also adopted, pursuant to its authority under the Financial Investment Services and Capital Markets Act, regulations that regulate investment by foreigners in Korean securities and issuance of securities outside Korea by Korean companies.

Subject to certain limitations, the Ministry of Economy and Finance has the authority to take the following actions under the Foreign Exchange Transaction Laws: (i) if the Government deems it necessary on account of war, armed conflict, natural disaster or grave, sudden and significant changes in domestic or foreign economic circumstances or similar events or circumstances, the Ministry of Economy and Finance may temporarily suspend performance under any or all foreign exchange transactions, in whole or in part, to which the Foreign Exchange Transaction Laws apply (including suspension of payment and receipt of foreign exchange) or impose an obligation to deposit, safe-keep or sell any instruments of payment to the Bank of Korea or certain other governmental agencies or a foreign exchange equalization fund or financial institutions, or effective from July 18, 2017, impose an obligation on resident creditors to collect and recover debts owed by non-resident debtors, and (ii) if the Government concludes that the international balance of payments and international financial markets are experiencing or are likely to experience significant disruption or that the movement of capital between Korea and other countries are likely to adversely affect the Korean Won, exchange rates or other macroeconomic policies, the Ministry of Economy and Finance may take action to require any person who intends to effect or effects a capital transaction to obtain permission or to deposit a portion of the instruments of payment acquired in such transactions with the Bank of Korea or a foreign exchange equalization fund or financial institutions.

Government Review of Issuances of Debt Securities and ADSs and Report for Payments

In order for us to issue debt securities of any series outside of the Republic, we are required to file a report with our designated foreign exchange bank or the Ministry of Economy and Finance on the issuance of such debt securities, depending on the issuance amount. The Ministry of Economy and Finance may at its discretion direct us to take measures as necessary to avoid undue exchange rate fluctuations before it accepts such report. Furthermore, in order for us to make payments of principal of or interest on the debt securities of any series and other amounts as provided in an indenture and such debt securities, we are required to present relevant documents to the designated foreign exchange bank at the time of each actual payment. The purpose of such presentation is to ensure that the actual remittance is consistent with the terms of the transaction reported to our designated foreign exchange bank or the Ministry of Economy and Finance.

In order for us to offer for purchase shares of our common stock held in treasury in the form of ADSs or issue shares of our common stock represented by the ADSs, we are required to file a prior report of such offer or issuance with our designated foreign exchange bank or the Ministry of Economy and Finance, depending on the offering amount. The Ministry of Economy and Finance may at its discretion direct us to take measures as necessary to avoid undue exchange rate fluctuations before it accepts such report. No further governmental approval is necessary for the initial offering and issuance of the ADSs.

In order for a depositary to acquire any existing shares of our common stock from holders of these shares of common stock (other than from us) for the purpose of issuance of depositary receipts representing these shares of common stock, the depositary would be required to obtain our consent for the number of shares to be deposited in any given proposed deposit which exceeds the difference between (1) the aggregate number of shares deposited by us or with our consent for the issuance of ADSs (including deposits in connection with the initial and all subsequent offerings of ADSs and stock dividends or other distributions related to these ADSs) and (2) the number of shares on deposit with the depositary at the time of such proposed deposit. We may not grant this consent for the deposit of shares of our common stock in the future, if our consent is required. Therefore, a holder of ADSs who surrenders ADSs and withdraws shares of our common stock may not be permitted subsequently to deposit such shares and obtain ADSs.

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In addition, we are also required to notify the Ministry of Economy and Finance upon receipt of the full proceeds from the offering of ADSs. No additional governmental approval is necessary for the offering and issuance of ADSs.

Reporting Requirements for Holders of Substantial Interests

Under the Financial Investment Services and Capital Markets Act, any person whose direct beneficial ownership of a listed company’s Equity Securities, together with the Equity Securities beneficially owned by certain related persons or by any person acting in concert with such person, accounts for 5% or more of our total outstanding Equity Securities is required to report the status and purpose (namely, whether the purposes of the share ownership is to participate in the management of the issuer) of the holdings and the material contents of the agreements relating to the Equity Securities and other matters prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act to the Financial Services Commission and the Korea Exchange within five business days after reaching the 5% ownership interest and any change in ownership interest subsequent to the report which equals or exceeds 1.0% of the total outstanding Equity Securities is required to be reported to the Financial Services Commission and the Korea Exchange within five business days from the date of the change.

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In addition to the reporting requirements described above, any person whose direct or beneficial ownership of our voting stock and/or depository receipts for our voting stock accounts for 10.0% or more of the total issued and outstanding voting stock, whom we refer to as a major shareholder, must file a report to the Securities and Futures Commission and to the Korea Exchange within five business days after the date on which the person reached such shareholding percentage. In addition, such person must file a report to the Securities and Futures Commission and to the Korea Exchange regarding any subsequent change in his/her shareholding. Such report on subsequent change in shareholding must be filed within five business days of the occurrence of any such change. Violation of these reporting requirements may subject a person to criminal sanctions such as fines and imprisonment.

Restrictions Applicable to ADSs

No governmental approval is necessary for the sale and purchase of ADSs in the secondary market outside Korea or for the withdrawal of shares of our common stock underlying ADSs and the delivery inside Korea of the withdrawn shares. However, a foreigner who intends to acquire shares must obtain an Investment Registration Card from the Financial Supervisory Service as described below. The acquisition of shares by a foreigner must be reported by the foreigner or his standing proxy in Korea immediately to the Governor of the Financial Supervisory Service.

Special Reporting Requirement for Companies Whose Securities Are Listed on Foreign Exchanges

Under the regulations of the Financial Services Commission and the Korea Exchange, (i) if a company listed on the Korea Exchange has submitted a public disclosure of material matters to a foreign financial investment supervisory authority pursuant to the laws of the foreign jurisdiction, then it must submit a copy of the public disclosure and a Korean translation thereof to the Financial Services Commission of Korea and the Korea Exchange, and (ii) if a company listed on the Korea Exchange is approved for listing on a foreign stock market or determined to be de-listed from the foreign stock market or actually listed on, or de-listed from, a foreign stock market, then it must submit a copy of any document, which it submitted to or received from the relevant foreign government, foreign financial investment supervisory authority or the foreign stock market, and a Korean translation thereof to the Financial Services Commission of Korea and the Korea Exchange.

Persons who have acquired shares of our common stock as a result of the withdrawal of shares of common stock underlying ADSs may exercise their preemptive rights for new shares, participate in free distributions and receive dividends on shares of our common stock without any further governmental approval.

Restrictions Applicable to Common Stock

Under the Foreign Exchange Transaction Laws and the Regulations on Financial Investment Business (together, the “Investment Rules”), foreigners are permitted to invest, subject to certain exceptions and procedural requirements, in all shares of Korean companies unless prohibited by specific laws. Foreign investors may trade shares listed on the Korea Exchange only through the Korea Exchange except for certain limited circumstances. These circumstances include, among others, (1) odd-lot trading of shares, (2) acquisition of shares by a foreign company as a result of a merger, (3) acquisition or disposal of shares in connection with a tender offer, (4) acquisition of shares by exercise of warrant, conversion right under convertible bonds, exchange right under exchangeable bonds or withdrawal right under depositary receipts, each issued outside of Korea by a Korean company, such shares being “Converted Shares,” (5) acquisition of shares through exercise of rights under securities issued outside of Korea, (6) acquisition of shares as a result of inheritance, donation, bequest or exercise of shareholders’ rights (including preemptive rights or rights to participate in free distributions and receive dividends), (7) over-the-counter transactions between foreigners of a class of shares for which a ceiling on aggregate acquisition by foreigners (as explained below) exists and has been reached or exceeded, (8) acquisition of shares by direct investment under the Foreign Investment Promotion Law, (9) acquisition and disposal of shares on an overseas stock exchange market, if such shares are simultaneously listed on the KRX

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KOSPI Market or the KRX KOSDAQ Market of the Korea Exchange and such overseas stock exchange, and (10) arm’s length transactions between foreigners in the event all such foreigners belong to an investment group managed by the same person.

Under current regulatory system, the foreign investors are required to obtain approval from the Financial Supervisory Service prior to the over-the-counter transactions other than those listed above as exceptions. The Investment Rules require a foreign investor who wishes to invest in or dispose of shares on the Korea Exchange (including Converted Shares and shares being issued for initial listing on the Korea Exchange) to register his/her identity with the Financial Supervisory Service prior to making any such investment or disposal unless he/she had previously registered. However, such registration requirement does not apply to foreign investors who (i) acquire Converted Shares with the intention of selling them within three months from the date they were acquired or (ii) acquire or dispose of shares in connection with a foreign direct investment under the Foreign Investment Promotion Law; provided that, the acquisition of shares on the Korea Exchange requires registration. Upon registration, the Financial Supervisory Service will issue to the foreign investor an Investment Registration Card which must be presented each time the foreign investor opens a brokerage account with a financial investment company or financial institution in Korea. Foreigners eligible to obtain an Investment Registration Card include any foreign nationals who are individuals (with residence abroad for six months or more), foreign governments, foreign municipal authorities, foreign public institutions, international financial institutions or similar international organizations, corporations incorporated under foreign laws and any person in any additional category designated by the Decree of the Financial Investment Services and Capital Markets Act. All Korean branches of a foreign corporation as a group are treated as a separate foreigner from the head office of the foreign corporation. However, a foreign branch of a Korean securities company, a foreign corporation or a depositary issuing depositary receipts may obtain one or more Investment Registration Cards in its name in certain circumstances as described in the relevant regulations.

Upon a foreign investor’s purchase of shares through the Korea Exchange, no separate report by the investor is required because the Investment Registration Card system is designed to control and oversee foreign investment through a computer system. However, a foreign investor’s acquisition or sale of shares outside the Korea Exchange (exceptionally permitted as discussed above) must be reported by the foreign investor or his standing proxy to the Governor of the Financial Supervisory Service at the time of each acquisition or sale. However, a foreign investor must ensure that any acquisition or sale by it of shares outside the Korea Exchange in the case of trades in connection with a tender offer, odd-lot trading of shares or trades of a class of shares for which the aggregate foreign ownership limit has been reached, exceeded or any other case set forth in the Investment Rules, is reported to the Governor of the Financial Supervisory Service by the Korea Securities Depository, financial investment companies with a dealing or brokerage license or securities finance companies engaged to facilitate such transactions. In the event a foreign investor desires to acquire or sell shares outside the Korea Exchange and the circumstances in connection with such sale or acquisition do not fall within the exceptions made for certain limited circumstances described above, then the foreign investor must obtain the prior approval of the Governor. Foreign investors are prohibited from engaging in margin transactions with respect to shares subject to a ceiling on acquisition by foreigners.

In January 2023, the Financial Service Commission announced its plan to (i) abolish the foreign investor registration requirement and allow the foreign investors to open a brokerage account with a financial investment company or financial institution in Korea only with (in case of the foreign legal entity) LEI (Legal Entity Identifier) or (in case of the foreign individual) his or her passport number (as the case may be), (ii) expand the scope of the over-the-counter transactions exceptionally permitted such as the transactions without change of actual owner (e.g., merger of funds, transaction between feeder fund and master fund, between asset manager and fund managed by such asset manager or between funds managed by the same asset manager), (iii) facilitate the use of omnibus account for the foreign investors by abolishing the reporting requirement for trading details of the listed shares by each end-investor immediately after the settlement and (iv) simplify the post-reporting procedures applying to the over-the-counter transactions exceptionally permitted. Each plan is expected to be implemented by the third quarter of 2023 after amendment of the Enforcement Decree of the Financial

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Investment Services and Capital Markets Act and the regulations thereunder and the development of necessary computing systems. However, there can be no assurance that each plan will take effect in accordance with the timeline announced by the Financial Service Commission.

A foreign investor may appoint one or more standing proxies from among the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies (including domestic branches of foreign financial investment companies) with a dealing, brokerage or collective investment license and certain eligible foreign custodians which will exercise shareholders’ rights or perform any matters related to the foregoing activities if the foreign investor does not perform these activities himself. Generally, a foreign investor may not permit any person, other than his/her standing proxy, to exercise rights relating to his shares or perform any tasks related thereto on his behalf. However, a foreign investor may be exempted from complying with these standing proxy rules with the approval of the Governor of the Financial Supervisory Service in cases deemed inevitable by reason of conflict between the laws of Korea and those of the home country of the foreign investor.

The shares of a listed Korean company owned by a foreign investor must be electronically registered in accordance with the Electronic Registration Act through an eligible custodian in Korea. Only the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies (including domestic branches of foreign financial investment companies) with a dealing, brokerage or collective investment license and certain eligible foreign custodians are eligible to be a custodian of shares for a foreign investor; provided, however, that a foreign investor is exempted from the above requirement if it (i) acquires shares publicly offered or sold outside Korea for the purpose of listing on an overseas stock exchange or (ii) acquires or disposes of shares through an overseas stock exchange if such shares are simultaneously listed on the Korea Exchange and such overseas stock exchange. Furthermore, a foreign investor may be exempted from complying with this deposit requirement with the approval of the Governor of the Financial Supervisory Service in circumstances where compliance with that requirement is made impracticable, including cases where compliance would contravene the laws of the home country of such foreign investor.

Under the Investment Rules, with certain exceptions, a foreign investor may acquire shares of a Korean company without being subject to any single or aggregate foreign investment ceiling. However, certain designated public corporations are subject to a 40.0% ceiling on acquisitions of shares by foreigners in the aggregate and a ceiling on acquisitions of shares by a single foreign investor provided in the Articles of Incorporation of such corporations. Of the Korean companies listed on the Korea Exchange, we are so designated. The Financial Services Commission may impose other restrictions as it deems necessary for the protection of investors and the stabilization of the Korean securities and derivatives market. Generally, the ownership of Converted Shares constitutes foreign ownership for purposes of such aggregate foreign ownership limit. However, the acquisition of Converted Shares is one of the exceptions under which foreign investors may acquire shares of designated corporations in excess of the 40.0% ceiling.

In addition to the aggregate foreign investment ceiling set out under the Financial Investment Services and Capital Markets Act, our Articles of Incorporation set a 3% ceiling on acquisition by a single investor (whether domestic or foreign) of the shares of our common stock. Any person (with certain exceptions) who holds more than 3% of our issued and outstanding shares cannot exercise voting rights with respect to our shares in excess of this 3% limit.

The ceiling on aggregate investment by foreigners applicable to us may be exceeded in certain limited circumstances, including as a result of acquisition of:

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shares by a depositary issuing depositary receipts representing such shares (whether newly issued shares or outstanding shares);

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Converted Shares;

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Shares, stock option from the exercise of shareholders’ rights; or

•

shares by gift, inheritance or bequest.

A foreigner who has acquired shares in excess of any ceiling described above may not exercise his voting rights with respect to the shares exceeding such limit and the Financial Services Commission may take necessary corrective action against him.

Under the Foreign Exchange Transaction Laws, a foreign investor who intends to acquire shares must designate a foreign exchange bank at which he must open a foreign currency account and a Won account exclusively for stock investments. No approval is required for remittance into Korea and deposit of foreign currency funds in the foreign currency account. Foreign currency funds may be transferred from the foreign currency account at the time required to place a deposit for, or settle the purchase price of, a stock purchase transaction to a Won account opened at a securities company. Funds in the foreign currency account may be remitted abroad without any governmental approval.

Dividends on shares of our common stock are paid in Won. No governmental approval is required for foreign investors to receive dividends on, or the Won proceeds of the sale of, any shares to be paid, received and retained in Korea. Dividends paid on, and the Won proceeds of the sale of, any shares held by a non-resident of Korea must be deposited either in a Won account with the investor’s securities company or the investor’s Won account. Funds in the investor’s Won account may be transferred to his foreign currency account or withdrawn for local living expenses, provided that any withdrawal of local living expenses in excess of a certain amount should be reported to the Governor of the Financial Supervisory Service. Funds in the investor’s Won account may also be used for future investment in shares or for payment of the subscription price of new shares obtained through the exercise of preemptive rights.

Financial investment companies with a securities dealing, brokerage or collective investment license are allowed to open foreign currency accounts with foreign exchange banks exclusively for accommodating foreign investors’ stock investments in Korea. Through these accounts, these securities companies and asset management companies may enter into foreign exchange transactions on a limited basis, such as conversion of foreign currency funds and Won funds, either as a counterparty to or on behalf of foreign investors without the foreign investors having to open their own accounts with foreign exchange banks.

Item 10.E. Taxation

Korean Taxes

The following summary describes the material Korean tax consequences of ownership of the Registered Debt Securities and ADSs. Persons considering the purchase of the Registered Debt Securities or ADSs should consult their own tax advisors with regard to the application of the Korean income tax laws to their particular situations as well as any tax consequences arising under the laws of any other taxing jurisdiction. Reference is also made to a tax treaty between the Republic and the United States entitled “Convention Between the United States of America and the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Encouragement of International Trade and Investment,” signed on June 4, 1976 and entered into force on October 20, 1979.

The following summary of Korean tax considerations applies to you so long as you are not:

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a resident of Korea;

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a corporation having its head office, principal place of business or place of effective management in Korea; or

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engaged in a trade or business in Korea through a permanent establishment or a fixed base to which the relevant income is attributable or with which the relevant income is effectively connected.

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Registered Debt Securities

Taxation of Interest

Pursuant to the Special Tax Treatment Control Law (“STTCL”), when we make payments of interest to you on the Registered Debt Securities, no amount will be withheld from such payments for, or on account of, any income taxes of any kind imposed, levied, withheld or assessed by Korea or any political subdivision or taxing authority thereof or therein, provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL.

If the tax exemption under the STTCL referred to above were to cease to be in effect, the rate of income tax or corporation tax applicable to the interest on the Registered Debt Securities would be 14% of income for a non-resident without a permanent establishment in Korea. In addition, local income tax would be imposed at the rate of 10.0% of the income tax or corporation tax (which would increase the total tax rate to 15.4%), unless reduction is available under an applicable income tax treaty. If you are a qualified resident in a country that has entered into a tax treaty with Korea, you may qualify for an exemption or a reduced rate of Korean withholding tax. See the discussion under “—Shares or ADSs—Tax Treaties” below for an additional explanation on treaty benefits.

In order to obtain the benefits of an exemption or a reduced withholding tax rate under a tax treaty, you must submit to us, prior to the interest payment date, such evidence of tax residence as may be required by the Korean tax authorities in order to establish your entitlement to the benefits of the applicable tax treaty.

Furthermore, Korean tax laws require the beneficial owner to submit an application for entitlement to a reduced tax rate together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available reduced tax rate pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, an overseas investment vehicle (which is defined as an organization established in a foreign jurisdiction that manages funds collected through investment solicitation by acquiring, disposing or otherwise investing in proprietary targets and then distributes the proceeds thereof to investors) (the “Overseas Investment Vehicle”) must obtain an application for entitlement to a reduced tax rate from the beneficial owner and submit to the withholding obligor an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

Due to recent amendment to the Korean tax laws, which applies for fiscal years beginning on or after January 1, 2020, Overseas Investment Vehicles may be regarded as beneficial owners of Korean sourced income in certain situations. Pursuant to such amendment, Overseas Investment Vehicles may be treated as beneficial owners of Korean source income if one of the following conditions are met: (i) the Overseas Investment Vehicle is subject to taxation in the jurisdiction in which it resides and there is no intentional tax avoidance purpose to establishing the Overseas Investment Vehicle in the jurisdiction; (ii) the Overseas Investment Vehicle is deemed as the beneficial owner under a tax treaty; or (iii) the Overseas Investment Vehicle is unable to confirm its list of beneficial owners investing in the Overseas Investment Vehicle (if only a portion of the beneficial owners are confirmed, applies with respect to the remaining unconfirmed list of beneficial owners). Overseas Investment Vehicles that are not regarded as foreign “corporations” for purposes of the Korean tax law may be recognized as beneficial owners if one of the above conditions (ii) or (iii) are met. Starting from January 1, 2022, the above conditions (i) and (ii) are changed as follows: (i) under the applicable tax treaty, the Overseas Investment Vehicle bears tax liabilities in the country in which it is established and the Korean source income is eligible for the treaty benefits under the tax treaty; and (ii) where the Overseas Investment Vehicle does not meet the above condition (i), the Overseas Investment Vehicle is deemed to be the beneficial owner of the Korean source income under the applicable tax treaty and the Korean source income is eligible for the treaty benefits under the tax treaty. Further, Overseas Investment Vehicles that meet condition (iii) would be subject to the default statutory withholding tax rate under the Korean tax laws and the treaty withholding rates under relevant tax treaties would not apply even though the Overseas Investment Vehicles are deemed to be beneficial owners of Korean source income.

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Taxation of Capital Gains

Korean tax laws currently exclude from Korean taxation gains made by a non-resident without a permanent establishment in Korea from the sale of a Registered Debt Security to another non-resident (except where a non-resident sells Registered Debt Securities to another non-resident’s permanent establishment in Korea, if any). In addition, capital gains realized from the transfer of Registered Debt Securities outside Korea by non-residents with or without permanent establishments in Korea are currently exempt from taxation by virtue of the STTCL, provided that the issuance of such Registered Debt Securities is deemed to be an overseas issuance of foreign currency-denominated bonds under the STTCL. If you sell or otherwise dispose of a Registered Debt Security through other ways than those mentioned above, any gain realized on the transaction will be taxable at ordinary Korean withholding tax rates (which is the lesser of 11.0% (including local income tax) of the gross sale proceeds or 22.0% (including local income tax) of the net gain, subject to the production of satisfactory evidence of the acquisition cost of such Registered Debt Securities and certain direct transaction costs attributable to the disposal of such Registered Debt Securities), unless an exemption is available under an applicable income tax treaty. See the discussion under “—Shares or ADSs—Tax Treaties” below for an additional explanation on treaty benefits.

In order to obtain the benefit of an exemption from tax pursuant to a tax treaty, you must submit to us, prior to or at the time of payment, such evidence of your tax residence as the Korean tax authorities may require in support of your claim for treaty benefits.

Furthermore, Korean tax laws require the beneficial owner to submit an application for tax exemption together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available exemption pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for tax exemption from the beneficial owner and forward it to the withholding obligor along with an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner. The withholding obligor must submit the application and the report to the relevant tax office by the ninth day of the month following the date of the first payment of such income.

Inheritance Tax and Gift Tax

If you die while you are the holder of Registered Debt Securities, the subsequent transfer of the Registered Debt Securities by way of succession will be subject to Korean inheritance tax. Similarly, if you transfer Registered Debt Securities as a gift, the donee will be subject to Korean gift tax and you may be required to pay the gift tax if the donee fails to do so.

At present, Korea has not entered into any tax treaty relating to inheritance or gift taxes.

Shares or ADSs

Dividends on the Shares of Common Stock or ADSs

We will deduct Korean withholding tax from dividends (whether in cash or in shares) paid to you at a rate of 22% (inclusive of local income tax). If you are a qualified resident in a country that has entered into a tax treaty with Korea, you may qualify for a reduced rate of Korean withholding tax. See the discussion under “—Tax Treaties” below for an additional explanation on treaty benefits.

In order to obtain the benefits of a reduced withholding tax rate under a tax treaty, you must submit to the Korea Securities Depository, prior to the dividend payment date, such evidence of tax residence as may be required by the Korean tax authorities in order to establish your entitlement to the benefits of the applicable tax treaty. Evidence of tax residence may be submitted to the Korea Securities Depository through the withholding tax agent. If we distribute to you free shares representing a transfer of certain capital reserves or asset revaluation reserves into paid-in capital, such distribution may be subject to Korean withholding tax.

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Furthermore, Korean tax laws require the beneficial owner to submit an application for entitlement to a reduced tax rate together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available reduced tax rate pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for entitlement to a reduced tax rate from the beneficial owner and submit to the withholding obligor an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

If you hold common shares or ADSs and receive the dividend through an account at the Korea Securities Depository held by a foreign depositary settlement institute, you are not required to submit the application for entitlement to a reduced tax rate. However, evidence of tax residence may need to be submitted to us through such foreign depositary settlement institute.

Taxation of Capital Gains

As a general rule, capital gains earned by non-residents upon the transfer of the common shares or ADSs would be subject to Korean income tax at a rate equal to the lesser of (i) 11.0% (including local income tax) of the gross proceeds realized or (ii) 22.0% (including local income tax) of the net realized gain (subject to the production of satisfactory evidence of the acquisition costs and certain direct transaction costs arising out of the transfer of such common shares or ADSs), unless such non-resident is exempt from Korean income taxation under an applicable Korean tax treaty into which Korea has entered with the non-resident’s country of tax residence. Please see the discussion under “—Tax Treaties” below for an additional explanation on treaty benefits. Even if you do not qualify for any exemption under a tax treaty, you will not be subject to the foregoing income tax on capital gains if you qualify for the relevant Korean domestic tax law exemptions discussed in the following paragraphs.

You will not be subject to Korean income taxation on capital gains realized upon the transfer of our common stocks or ADSs through the Korea Exchange if you (i) have no permanent establishment in Korea and (ii) did not own or have not owned (together with any shares owned by any entity which you have a certain special relationship with and possibly including the shares represented by the ADSs) 25.0% or more of our total issued and outstanding shares at any time during the calendar year in which the sale occurs and during the five calendar years prior to the calendar year in which the sale occurs.

It should be noted that (i) capital gains earned by you (regardless of whether you have a permanent establishment in Korea) from the transfer of ADSs outside Korea will be exempted from Korean income taxation provided that ADSs are deemed to have been issued overseas under the STTCL, but (ii) if and when an owner of the underlying shares of stock transfers ADSs after conversion of the underlying shares into ADSs, the exemption described in (i) is not applicable.

If you are subject to tax on capital gains with respect to the sale of ADSs, or of shares of common stock which you acquired as a result of a withdrawal, the purchaser or, in the case of the sale of shares of common stock on the Korea Exchange or through an investment dealer or investment broker under the Financial Investment Services and Capital Markets Act, an investment dealer or investment broker is required to withhold Korean tax from the sales price in an amount equal to 11.0% (including local income tax) of the gross realization proceeds and to make payment of these amounts to the Korean tax authority, unless you establish your entitlement to an exemption under an applicable tax treaty or domestic tax law or produce satisfactory evidence of your acquisition cost and transaction costs for the shares of common stock or the ADSs.

However, if you transfer the ADSs following an exchange of the underlying shares of stock owned by you for ADSs to a purchaser who is a non-resident or a foreign company without a permanent establishment in Korea, you are obligated to file an income tax return and pay tax on gain realized from such transfer unless exempt

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under an applicable tax treaty or domestic law. Further, if you transfer the shares of common stock outside of Korea (excluding a transfer on a foreign exchange) to non-residents or foreign companies without permanent establishments in Korea, you are obligated to file an income tax return and pay income tax on capital gain realized from such transfer unless exempt under an applicable tax treaty or domestic law. If a purchaser or an investment dealer or investment broker, as the case may be, withholds and remits the tax on capital gains derived from transfer of shares of common stock or ADSs, your obligation to file an income tax return and pay income tax will not apply.

In order to obtain the benefit of an exemption from tax pursuant to a tax treaty, you must submit to the purchaser or the investment dealer or the investment broker, or through the ADS depositary, as the case may be, prior to or at the time of payment, such evidence of your tax residence as the Korean tax authorities may require in support of your claim for treaty benefits. Please see the discussion under “—Tax Treaties” below for an additional explanation on claiming treaty benefits. Furthermore, Korean tax laws require the beneficial owner to submit an application for tax exemption together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available exemption pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for tax exemption from the beneficial owner and forward it to the withholding obligor along with an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner. The withholding obligor must submit the application and the report to the relevant tax office by the ninth day of the month following the date of the first payment of such income.

Tax Treaties

Korea has entered into a number of income tax treaties with other countries (including the United States), which would reduce or exempt Korean withholding tax on dividends on, and capital gains on transfer of, shares of our common stock or ADSs. For example, under the Korea-United States income tax treaty, reduced rates of Korean withholding tax of 16.5% or 11.0% (respectively, including local income tax, depending on your status and shareholding ratio) on dividends and an exemption from Korean withholding tax on capital gains are available to residents of the United States that are beneficial owners of the relevant dividend income or capital gains. However, under Article 17 (Investment of Holding Companies) of the Korea-United States income tax treaty, such reduced rates and exemption do not apply if (i) you are a United States corporation, (ii) by reason of any special measures, the tax imposed on you by the United States with respect to such dividends or capital gains is substantially less than the tax generally imposed by the United States on corporate profits, and (iii) 25.0% or more of your capital is held of record or is otherwise determined, after consultation between competent authorities of the United States and Korea, to be owned directly or indirectly by one or more persons who are not individual residents of the United States. Also, under Article 16 (Capital Gains) of the Korea-United States income tax treaty, the exemption on capital gains does not apply if you are an individual, and (a) you maintain a fixed base in Korea for a period or periods aggregating 183 days or more during the taxable year and your ADSs or shares of common stock giving rise to capital gains are effectively connected with such fixed base or (b) you are present in Korea for a period or periods of 183 days or more during the taxable year.

You should inquire for yourself whether you are entitled to the benefit of an income tax treaty with Korea. It is the responsibility of the party claiming the benefits of an income tax treaty in respect of interest or dividend payments or capital gains to submit to us, the purchaser or the investment dealer or the investment broker, as applicable, a certificate as to his tax residence. In the absence of sufficient proof, we, the purchaser or the investment dealer or the investment broker, as applicable, must withhold tax at the normal rates.

Inheritance Tax and Gift Tax

If you die while holding an ADS or donate an ADS, it is unclear whether, for Korean inheritance and gift tax purposes, you will be treated as the owner of the shares of common stock underlying the ADSs. If the tax

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authority interprets depositary receipts as the underlying share certificates, you may be treated as the owner of the shares of common stock and your heir or the donee (or in certain circumstances, you as the donor) will be subject to Korean inheritance or gift tax presently at the rate of 10.0% to 50.0%, depending on the value of the ADSs or shares of common stock.

If you die while holding a share of common stock or donate a share of common stock, your heir or donee (or in certain circumstances, you as the donor) will be subject to Korean inheritance or gift tax at the same rate as indicated above.

At present, Korea has not entered into any tax treaty relating to inheritance or gift taxes.

Securities Transaction Tax

If you transfer shares of common stock on the Stock Market of the Korea Exchange, you will be subject to securities transaction tax at the rate of 0.05% (which will be reduced to 0.03% for transfers on or after January 1, 2024 and 0% for transfers on or after January 1, 2025) and an agriculture and fishery special surtax at the rate of 0.15% of the sale price of the shares of common stock. If your transfer of the shares of common stock is not made on the Stock Market of the Korea Exchange, subject to certain exceptions you will be subject to securities transaction tax at the rate of 0.35% and will not be subject to an agriculture and fishery special surtax.

Under the Securities Transaction Tax Law, depositary receipts (such as ADSs) constitute share certificates subject to the securities transaction tax. However, a transfer of depositary receipts listed on the New York Stock Exchange, NASDAQ National Market or other qualified foreign exchanges will be exempt from the securities transaction tax although depositary receipts, including ADSs, constitute share certificates subject to the securities transaction tax.

In principle, the securities transaction tax, if applicable, must be paid by the transferor of the shares or rights. When the transfer is effected through the Korea Securities Depository, the Korea Securities Depository is generally required to withhold and pay the tax to the tax authorities. When such transfer is made through an investment dealer or investment broker under the Financial Investment Services and Capital Markets Act only, such investment dealer or investment broker is required to withhold and pay the tax. Where the transfer is effected by a non-resident without a permanent establishment in Korea, other than through the Korea Securities Depository or an investment dealer or investment broker, the transferee is required to withhold the securities transaction tax for payment to the Korean tax authority.

U.S. Federal Income Tax Considerations for U.S. Persons

The following is a summary of certain U.S. federal income tax consequences of the ownership and disposition of the Registered Debt Securities, common stock and ADSs for beneficial owners of the Registered Debt Securities, common stock and ADSs that are “U.S. Persons” (as defined below). For purposes of this summary, you are a “U.S. Person” if you are any of the following for U.S. federal income tax purposes:

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an individual citizen or resident of the United States;

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a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

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an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

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a trust if (1) it is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person.

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This summary is based on current law, which is subject to change (perhaps retroactively), is for general purposes only and should not be considered tax advice. This summary does not represent a detailed description of the U.S. federal income tax consequences to you and does not address the effects of the Medicare contribution tax on net investment income, U.S. federal estate and gift taxes or foreign, state, local or other tax considerations that may be relevant to you in light of your particular circumstances. The discussion set forth below is applicable to you if (i) you are a resident of the United States for purposes of the current income tax treaty between the United States and Korea (the “Treaty”), (ii) your Registered Debt Securities, common stock or ADSs are not, for purposes of the Treaty, effectively connected with a permanent establishment in Korea and (iii) you otherwise qualify for the full benefits of the Treaty. This summary deals only with Registered Debt Securities, common stock or ADSs held as capital assets, and it does not represent a detailed description of the U.S. federal income tax consequences applicable to you if you are subject to special treatment under the U.S. federal income tax laws (including if you are a dealer in securities or currencies, a financial institution, a regulated investment company, a real estate investment trust, an insurance company, a tax-exempt organization, a person holding the Registered Debt Securities, common stock or ADSs as part of a hedging, integrated or conversion transaction, constructive sale or straddle, a person owning 10.0% or more of our stock (by vote or value), a trader in securities that elects to use a mark-to-market method of accounting for your securities holdings, a person liable for the alternative minimum tax, a person required to accelerate the recognition of any item of gross income with respect to the Registered Debt Securities, common stock or ADSs as a result of such income being recognized on an applicable financial statement, a partnership or other pass-through entity (or an investor therein), or a U.S. Person whose “functional currency” is not the U.S. dollar). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe in this summary.

If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) holds the Registered Debt Securities, common stock or ADSs, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our Registered Debt Securities, common stock or ADSs, you should consult your tax advisor.

Because of the 100-year maturity of the One Hundred Year 7.95% Zero-to-Full Debentures, due April 1, 2096 (the “ZTF Debentures”), it is not certain whether the ZTF Debentures will be treated as debt for U.S. federal income tax purposes. The discussion below assumes that the ZTF Debentures (as well as the other Registered Debt Securities) will be treated as debt, except that a summary of the consequences to you if the ZTF Debentures were not treated as debt is provided under “Tax Consequences with Respect to Registered Debt Securities Generally—ZTF Debentures Treated as Equity” below.

The discussion below of the tax consequences of the ownership and disposition of ADSs assumes that the deposit agreement, and all other related agreements, will be performed in accordance with their terms.

You should consult your own tax advisor concerning the particular U.S. federal income tax consequences to you of the ownership and disposition of the Registered Debt Securities, common stock and ADSs, as well as the consequences to you arising under other United States federal tax laws and the laws of any other taxing jurisdiction.

Tax Consequences with Respect to Registered Debt Securities Generally

Payments

Except as provided below with regard to original issue discount on the ZTF Debentures, interest on a Registered Debt Security will generally be taxable to you as ordinary income at the time it is paid or accrued in accordance with your method of accounting for tax purposes. Principal payments on an amortizing Registered Debt Security generally will constitute a tax-free return of capital to you to the extent of your adjusted tax basis in the Registered Debt Security, and any principal payments in excess of your adjusted tax basis generally will be taxed as capital gain.

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Although interest payments to you are currently exempt from Korean taxation provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL (see—“Korean Taxes—Registered Debt Securities—Taxation of Interest,” above), if the Korean law providing for the exemption is repealed, then, in addition to interest payments on the Registered Debt Securities and original issue discount on the ZTF Debentures, you will be required to include in income any additional amounts paid and any Korean tax withheld from interest payments notwithstanding that you in fact did not receive such withheld tax. You may be entitled to credit such Korean tax (up to the Treaty rate), subject to applicable conditions and limitations in the Internal Revenue Code of 1986, as amended (the “Code”). However, recently issued Treasury regulations impose additional requirements for foreign taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied. For purposes of calculating the foreign tax credit, interest income on a Registered Debt Security (including additional amounts and any Korean taxes withheld in respect thereof) and original issue discount on a ZTF Debenture will be treated as foreign source income and will generally be considered passive category income. You will generally be denied a foreign tax credit for Korean taxes imposed with respect to the Registered Debt Securities if you do not meet a minimum holding period requirement during which you are not protected from risk of loss. Instead of claiming a foreign tax credit, you may be able to deduct Korean withholding taxes on interest in computing your taxable income, subject to generally applicable limitations under U.S. law (including that a U.S. Person is not eligible for a deduction for otherwise creditable foreign income taxes paid or accrued in a taxable year if such U.S. Person claims a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year). The rules governing the foreign tax credit and deductions for foreign taxes are complex. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit or a deduction under their particular circumstances.

Original Issue Discount

The ZTF Debentures were issued with original issue discount (“OID”) for U.S. federal income tax purposes in an amount equal to the difference between (i) the sum of all scheduled amounts payable on the ZTF Debentures (including the interest payable on such ZTF Debentures) and (ii) the “issue price” of the ZTF Debentures. The “issue price” of each ZTF Debenture is the first price at which a substantial amount of the ZTF Debentures was sold to the public (other than to an underwriter, broker, placement agent or wholesaler). If you hold ZTF Debentures, then (subject to the discussion in “—Acquisition Premium; Bond Premium” below) you generally must include OID in gross income (as ordinary income) in advance of the receipt of cash attributable to that income, regardless of your method of accounting. However, you generally will not be required to include separately in income cash payments received on the ZTF Debentures, even if denominated as interest.

The amount of OID includible in income by the holder of a ZTF Debenture is the sum of the “daily portions” of OID with respect to the ZTF Debenture for each day during the taxable year or portion of the taxable year in which such holder held such ZTF Debenture, or “accrued OID” (for a discussion relevant to subsequent purchasers, see “—Market Discount” and “—Acquisition Premium; Bond Premium,” below). The daily portion is determined by allocating to each day in any “accrual period” a pro rata portion of the OID allocable to that accrual period. The “accrual period” for a ZTF Debenture may be of any length and may vary in length over the term of the ZTF Debenture, provided that each accrual period is no longer than one year and each scheduled payment of principal or interest occurs on the first day or the final day of an accrual period. The amount of OID allocable to any accrual period other than the final accrual period is an amount equal to the product of the ZTF Debenture’s adjusted issue price at the beginning of such accrual period and its yield to maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period). OID allocable to a final accrual period is the difference between the amount payable at maturity and the adjusted issue price at the beginning of the final accrual period. The “adjusted issue price” of a ZTF Debenture at the beginning of any accrual period is equal to its issue price increased by the accrued OID for each prior accrual period (for subsequent purchasers, determined without regard to the amortization of any acquisition or bond premium, as described below) and reduced by any payments previously made on such ZTF Debenture. Under these rules, you will have to include in income increasingly greater amounts of OID in successive accrual

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periods. We are required to provide information returns stating the amount of OID accrued on ZTF Debentures held of record by persons other than corporations and other exempt holders.

As discussed above, although interest payments to you are currently exempt from Korean taxation provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL (see—“Korean Taxes—Registered Debt Securities—Taxation of Interest,” above), if the Korean law providing for the exemption is repealed, then Korean withholding tax may be imposed at times that differ from the times at which you are required to include interest or OID in income for U.S. federal income tax purposes and this disparity may limit the amount of foreign tax credit available.

Market Discount

If you purchase a Registered Debt Security other than a ZTF Debenture for an amount that is less than its stated redemption price at maturity, or, in the case of a ZTF Debenture, its adjusted issue price, the amount of the difference will be treated as “market discount” for U.S. federal income tax purposes, unless that difference is less than a specified de minimis amount. Under the market discount rules, you will be required to treat any principal payment on, or any gain on the sale, exchange, retirement or other disposition of, a Registered Debt Security as ordinary income to the extent of the market discount that you have not previously included in income and are treated as having accrued on the Registered Debt Security at the time of the payment or disposition. In addition, you may be required to defer, until the maturity of the Registered Debt Security or its earlier disposition in a taxable transaction, the deduction of all or a portion of the interest expense on any indebtedness attributable to the Registered Debt Security. Any amount treated as ordinary income pursuant to the market discount rules generally should be treated as foreign source income.

Any market discount will be considered to accrue ratably during the period from the date of acquisition to the maturity date of the Registered Debt Security, unless you elect to accrue on a constant interest method. Your election to accrue market discount on a constant interest method is to be made for the taxable year in which you acquired the Registered Debt Security, applies only to that Registered Debt Security and cannot be revoked. You may elect to include market discount in income currently as it accrues, on either a ratable or constant interest method, in which case the rule described above regarding deferral of interest deductions will not apply. Special rules will apply in determining the accrual of market discount for an amortizing Registered Debt Security. Your election to include market discount in income currently, once made, applies to all market discount obligations acquired by you on or after the first day of the first taxable year to which your election applies and may not be revoked without the consent of the Internal Revenue Service (the “IRS”). You should consult your own tax advisor before making this election.

Acquisition Premium; Bond Premium

If you purchase a ZTF Debenture for an amount that is greater than its adjusted issue price but equal to or less than the sum of all amounts payable on the ZTF Debenture after the purchase date, you will be considered to have purchased that ZTF Debenture at an “acquisition premium.” Under the acquisition premium rules, the amount of OID that you must include in gross income with respect to a ZTF Debenture for any taxable year will be reduced by the portion of the acquisition premium properly allocable to that year.

If you purchase a Registered Debt Security for an amount in excess of the sum of all amounts payable on the Registered Debt Security after the purchase date other than qualified stated interest (as defined in the Code), you will be considered to have purchased the Registered Debt Security at a “premium” and, if such Registered Debt Security is a ZTF Debenture, you will not be required to include any OID in income. Interest on a debt instrument is generally treated as qualified stated interest if it is unconditionally payable in cash or property (other than debt instruments of the issuer) at least annually at a single fixed rate. The interest on the ZTF Debentures does not constitute qualified stated interest. You generally may elect to amortize any premium on a Registered Debt Security over the remaining term of the Registered Debt Security on a constant yield method as

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an offset to interest when includible in income under your regular accounting method. In the case of instruments that provide for alternative payment schedules, bond premium is calculated by assuming that (a) you will exercise or not exercise options in a manner that maximizes your yield, and (b) we will exercise or not exercise options in a manner that minimizes your yield (except that we will be assumed to exercise call options in a manner that maximizes your yield). If you do not elect to amortize bond premium, that premium will decrease the gain or increase the loss you would otherwise recognize on disposition of a Registered Debt Security. Your election to amortize premium on a constant yield method will also apply to all taxable debt obligations held or subsequently acquired by you on or after the first day of the first taxable year to which the election applies. You may not revoke the election without the consent of the IRS. You should consult your own tax advisor before making this election.

Sale, Exchange and Retirement of Registered Debt Securities

Upon the sale, exchange, retirement or other disposition of a Registered Debt Security, you generally will recognize gain or loss equal to the difference between the amount you receive (not including an amount equal to any accrued qualified stated interest, which will be taxable as ordinary income to the extent not previously included in income) and your adjusted tax basis in the Registered Debt Security. Your adjusted tax basis in a Registered Debt Security other than a ZTF Debenture will generally be your cost of obtaining the Registered Debt Security, increased by any market discount included in income and reduced by payments of principal you receive and any bond premium that you have previously amortized. Your adjusted tax basis in a ZTF Debenture will, in general, be your cost therefor, increased by any market discount and OID previously included in income and reduced by any cash payments on the ZTF Debenture and any bond premium that you have previously amortized. Except as described above with respect to market discount, your gain or loss realized upon the sale, exchange, retirement or other disposition of a Registered Debt Security will be capital gain or loss and will generally be long-term capital gain or loss if, at the time of the sale, exchange, retirement or other disposition, you have held the Registered Debt Security for more than one year. Long-term capital gains of non-corporate U.S. Persons (including individuals) are eligible for reduced rates of taxation. Your ability to deduct capital losses is subject to limitations.

Except as described above with respect to market discount, your gain or loss realized upon the sale, exchange, retirement or other disposition of a Registered Debt Security will generally be treated as U.S. source gain or loss. Consequently, you may not be able to use a foreign tax credit for any Korean tax imposed on the disposition of Registered Debt Securities unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. However, pursuant to recently issued U.S. Treasury regulations, any such Korean tax would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is derived from foreign sources). In such case, the non-creditable Korean tax may reduce the amount realized upon the sale, exchange, retirement or other disposition. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

ZTF Debentures Treated as Equity

If the ZTF Debentures were treated as equity for U.S. federal income tax purposes, amounts actually or deemed paid with respect to the ZTF Debentures would be deemed dividends for U.S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes).

You would include the amounts actually or deemed paid by us on the ZTF Debentures (before reduction for Korean withholding tax, if any) as dividend income when actually or constructively paid by us. Section 305 of the Code, which would apply to the ZTF Debentures if they were treated as equity for U.S. federal income tax purposes, requires current accrual of dividends under principles similar to the accrual of OID. Amounts treated as dividends will not be eligible for the dividends received deduction generally allowed to U.S. corporations. In

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addition, it is unclear whether any amounts treated as dividends would be eligible for the reduced rates of taxation that apply to “qualified dividend income” (as described below in “—Tax Consequences with Respect to Common Stock and ADSs—Distributions on Common Stock or ADSs”).

Tax Consequences with Respect to Common Stock and ADSs

In general, for U.S. federal income tax purposes, holders of ADSs will be treated as the owners of the underlying common stock that is represented by such ADSs. Accordingly, deposits or withdrawals of common stock for ADSs will not be subject to U.S. federal income tax.

Distributions on Common Stock or ADSs

The gross amount of distributions (other than certain pro rata distributions of common stock or rights to subscribe for common stock) to holders of common stock or ADSs (including amounts withheld in respect of Korean withholding taxes) will be taxable dividends to such holders to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Such income (including withheld taxes) will be includable in the gross income of a holder as ordinary income on the day actually or constructively received by the holder, in the case of common stock, or by the depositary, in the case of ADSs. Such dividends will not be eligible for the dividends received deduction generally allowed to corporations under the Code.

Subject to applicable limitations (including a minimum holding period requirement), certain dividends received by non-corporate U.S. Persons from a qualified foreign corporation may be treated as “qualified dividend income” that is subject to reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the benefits of an income tax treaty with the United States, if such treaty contains an exchange of information provision and the U.S. Treasury Department has determined that the treaty is satisfactory for purposes of the legislation. The U.S. Treasury Department has determined that the Treaty, which contains an exchange of information provision, is satisfactory for these purposes. In addition, we believe we are eligible for the benefits of the Treaty. In addition, a foreign corporation is also treated as a qualified foreign corporation with respect to dividends paid by that corporation on shares (or ADSs backed by such shares) that are readily tradable on an established securities market in the United States. Although shares of our common stock will generally not be considered readily tradable for these purposes, U.S. Treasury Department guidance indicates that our ADSs, which are listed on the New York Stock Exchange, are readily tradable on an established securities market in the United States. There can be no assurance that our ADSs will be considered readily tradable on an established securities market in the United States in later years. Holders should consult their own tax advisors regarding the application of the foregoing rules to their particular circumstances.

The amount of any dividend paid in Won will equal the U.S. dollar value of the Won received calculated by reference to the exchange rate in effect on the date the dividend is received by the holder, in the case of common stock, or by the depositary, in the case of ADSs, regardless of whether the Won are converted into U.S. dollars. If the Won received as a dividend are not converted into U.S. dollars on the date of receipt, a holder will have a basis in the Won equal to their U.S. dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the Won will be treated as U.S. source ordinary income or loss. The amount of any distribution of property other than cash will be the fair market value of such property on the date of distribution.

The maximum rate of withholding tax on dividends paid to you pursuant to the Treaty is 16.5%. You will be required to properly demonstrate your entitlement to the reduced rate of withholding under the Treaty (see “—Korean Taxes—Shares or ADSs—Tax Treaties”). Subject to certain conditions and limitations, Korean withholding taxes (up to the Treaty rate) may be treated as foreign taxes eligible for credit against your U.S. federal income tax liability. However, recently issued Treasury regulations impose additional requirements for foreign taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be

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satisfied. For purposes of calculating the foreign tax credit, dividends paid on the common stock or ADSs will be treated as foreign source income and will generally be considered passive category income. You will generally be denied a foreign tax credit for Korean taxes imposed on dividends paid on common stock or ADSs if you do not meet a minimum holding period requirement during which you are not protected from risk of loss. Instead of claiming a foreign tax credit, you may be able to deduct Korean withholding taxes on dividends in computing your taxable income, subject to generally applicable limitations under U.S. law (including that a U.S. Person is not eligible for a deduction for otherwise creditable foreign income taxes paid or accrued in a taxable year if such U.S. Person claims a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year). The rules governing the foreign tax credit and deductions for foreign taxes are complex. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit or a deduction under their particular circumstances, including the possible adverse impact on creditability to the extent you are entitled to a refund of any Korean tax withheld or a reduced rate of withholding.

To the extent that the amount of any distribution exceeds our current and accumulated earnings and profits for a taxable year, as determined under U.S. federal income tax principles, the distribution will first be treated as a tax- free return of capital, causing a reduction in the adjusted basis of the common stock or ADSs (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by the investor on a subsequent disposition of the common stock or ADSs), and the balance in excess of adjusted basis will be taxed as capital gain recognized on a sale or exchange of property. Consequently, such distributions in excess of our current and accumulated earnings and profits would not give rise to foreign source income and you generally would not be able to use a foreign tax credit for any Korean withholding tax imposed on such distributions unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. However, we do not expect to keep earnings and profits in accordance with U.S. federal income tax principles. Therefore, you should expect that a distribution will generally be treated as a dividend (as discussed above).

Distributions of common stock or rights to subscribe for common stock that are received as part of a pro rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax. Consequently, such distributions will not give rise to foreign source income and you generally will not be able to use a foreign tax credit for any Korean withholding tax imposed on such distributions unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources.

Sale, Exchange or Other Disposition of ADSs or Common Stock

Upon the sale, exchange or other disposition of ADSs or common stock, you generally will recognize capital gain or loss equal to the difference between the amount realized upon the sale, exchange or other disposition and your adjusted tax basis in the ADSs or common stock, both as determined in U.S. dollars. The capital gain or loss will be long-term capital gain or loss if, at the time of the sale, exchange or other disposition, the ADSs or common stock have been held by you for more than one year. Long-term capital gains of non-corporate U.S. Persons (including individuals) are eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

Any gain or loss recognized by you will generally be treated as U.S. source gain or loss. Consequently, you may not be able to use a foreign tax credit for any Korean tax imposed on the disposition of ADSs or common stock unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. However, pursuant to recently issued U.S. Treasury regulations, any such Korean tax would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is derived from foreign sources). In such case, the non-creditable Korean tax may reduce the amount realized upon the disposition of ADSs or common stock. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

You should note that any Korean securities transaction tax will not be treated as a creditable foreign tax for U.S. federal income tax purposes.

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Passive Foreign Investment Company Rules

Based upon the past and projected composition of our income and assets and the valuation of our assets, we do not believe that we were a passive foreign investment company (a “PFIC”) for 2022, and we do not expect to be a PFIC in 2023 or to become one in the foreseeable future, although there can be no assurance in this regard. If, however, we become a PFIC, such characterization could result in adverse U.S. tax consequences to you. For example, if we become a PFIC, our U.S. investors may become subject to increased tax liabilities under U.S. tax laws and regulations and will become subject to burdensome reporting requirements. In addition, non-corporate U.S. Persons will not be eligible for reduced rates of taxation on any dividends received from us if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year. Our PFIC status is determined on an annual basis and depends on the composition of our income and assets in each year. Specifically, we will be classified as a PFIC for U.S. federal income tax purposes for any taxable year if either: (i) 75% or more of our gross income in such year is passive income, or (ii) the average percentage of our assets by value in such year which produce or are held for the production of passive income (which generally includes cash) is at least 50%. We cannot assure you that we will not be a PFIC for 2023 or any future taxable year.

Information Reporting and Backup Withholding

In general, information reporting requirements will apply to interest and OID on Registered Debt Securities, dividend payments in respect of the common stock or ADSs or the proceeds received on the sale, exchange, retirement or other disposition of the Registered Debt Securities, common stock or ADSs that are paid within the United States (and in certain cases, outside of the United States), unless in each case you establish that you are an exempt recipient. A backup withholding tax may apply to the payment of such amounts if you fail to provide an accurate taxpayer identification number and a certification that you are not subject to backup withholding or if you fail to report interest and dividends required to be shown on your U.S. federal income tax returns. The amount of any backup withholding from a payment to you will be allowed as a refund or a credit against your U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

Item 10.F. Dividends and Paying Agents

Not applicable.

Item 10.G. Statements by Experts

Not applicable.

Item 10.H. Documents on Display

We are subject to the information requirements of the Exchange Act, and, in accordance therewith, are required to file reports, including annual reports on Form 20-F, and other information with the U.S. Securities and Exchange Commission. You may inspect and copy these materials, including this annual report and the exhibits thereto, at SEC’s Public Reference Room 100 Fifth Street, N.E., Washington D.C. 20549. Please call the Commission at 1-800-SEC-0330 for further information on the public reference rooms. As a foreign private issuer, we are also required to make filings with the Commission by electronic means. Any filings we make electronically will be available to the public over the Internet at the Commission’s web site at http://www.sec.gov.

Item 10.I. Subsidiary Information

Not applicable.

Item 10.J. Annual Report to Security Holders

Not applicable.

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ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary market risk exposures are to fluctuations in exchange rates, interest rates and fuel prices. We are exposed to foreign exchange risk related to foreign currency-denominated liabilities. As of December 31, 2022, 14.7% of our long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, was denominated in foreign currencies, principally U.S. dollar. However, a substantial portion of our revenues is denominated in Won. As a result, changes in exchange rates, particularly between the Won and the U.S. dollar, significantly affect us due to our significant amounts of foreign currency-denominated debt and the effect of such changes on the amount of funds required by us to make interest and principal payments on such debt. In order to reduce the impact of foreign exchange rate fluctuations on our results of operations, we have entered into currency swaps and other hedging arrangements with respect to our foreign currency denominated debt.

We are also exposed to foreign exchange risk related to our purchases of fuel since we obtain substantially all of our fuel materials (other than anthracite coal) directly or indirectly from sources outside Korea. Prices for such fuel materials are quoted based on prices stated in, and in many cases are paid for in, currencies other than Won. In 2022, fuel costs represented 49.1% of our sales.

We are exposed to interest rate risk due to significant amounts of debt. Upward fluctuations in interest rates increase the cost of additional debt and the interest cost of outstanding floating rate borrowings. We are also exposed to fluctuations in prices of fuel materials. In 2022, for electricity generation, uranium accounted for 43.1% of our fuel requirements, coal accounted for 40.2%, LNG accounted for 13.1%, oil accounted for 0.1%, and others accounted for 3.5%, measured in each case by the amount of electricity we generated. In 2021, for electricity generation, uranium accounted for 39.5% of our fuel requirements, coal accounted for 43.1%, LNG accounted for 13.7%, oil accounted for 0.4%, and others accounted for 3.3%, measured in each case by the amount of electricity we generated.

For additional discussions of our market risks, see Item 3.D. “Risk Factors” and Item 5.B. “Liquidity and Capital Resources—Liquidity.”

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We have entered into various swap contracts to hedge exchange rate risks arising from foreign currency-denominated debts. Details of currency swap contracts outstanding as of December 31, 2022 are as follows:


	Counterparty	Contract Year		Settlement Year		Contract amounts				Contract interest rate		Contract Exchange Rate
Type	Counterparty	Contract Year		Settlement Year		Pay		Receive		Pay	Receive	Contract Exchange Rate
						(in millions of Won or thousands of foreign currencies except contract exchange rate information)
Trading	Standard Chartered		2014		2029		KRW 102,470		USD 100,000	3.14%	3.57%		1,024.70
	Societe Generale		2014		2024		KRW 105,017		USD 100,000	4.92%	5.13%		1,050.17
	Hana Bank		2015		2024		KRW 107,970		USD 100,000	4.75%	5.13%		1,079.70
	Credit Agricole		2015		2024		KRW 94,219		USD 86,920	4.85%	5.13%		1,083.97
	Woori Bank		2019		2027		KRW 21,708		USD 19,417	5.04%	6.75%		1,118.00
	Woori Bank		2019		2024		KRW 296,000		USD 250,000	1.21%	2.50%		1,184.00
	Korea Development Bank		2019		2024		KRW 177,600		USD 150,000	1.24%	2.50%		1,184.00
	Hana Bank		2019		2024		KRW 118,400		USD 100,000	1.24%	2.50%		1,184.00
	Woori Bank		2020		2025		KRW 241,320		USD 200,000	0.54%	1.13%		1,206.60
	Korea Development Bank		2020		2025		KRW 241,320		USD 200,000	0.54%	1.13%		1,206.60
	Kookmin Bank		2020		2025		KRW 120,660		USD 100,000	0.54%	1.13%		1,206.60
	Kookmin Bank		2020		2026		KRW 76,355		USD 70,445	5.83%	6.00%		1,083.90
	Woori Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Korea Development Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Hana Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Hana Bank		2022		2025		KRW 385,800		USD 300,000	3.11%	3.63%		1,286.00
	Woori Bank		2022		2025		KRW 257,200		USD 200,000	3.12%	3.63%		1,286.00
	JP Morgan		2022		2027		KRW 128,600		USD 100,000	3.56%	4.00%		1,286.00
	Woori Bank		2022		2027		KRW 128,600		USD 100,000	3.56%	4.00%		1,286.00
	Kookmin Bank		2022		2027		KRW 128,600		USD 100,000	3.56%	4.00%		1,286.00
	Korea Development Bank		2022		2026		KRW 283,820		USD 200,000	4.67%	5.38%		1,419.10
	Hana Bank		2022		2026		KRW 141,910		USD 100,000	4.68%	5.38%		1,419.10
	JP Morgan		2022		2026		KRW 141,910		USD 100,000	4.69%	5.38%		1,419.10
	Woori Bank		2022		2026		KRW 141,910		USD 100,000	4.69%	5.38%		1,419.10
	Korea Development Bank		2022		2028		KRW 283,820		USD 200,000	5.12%	5.50%		1,419.10
	Woori Bank		2022		2028		KRW 141,910		USD 100,000	5.13%	5.50%		1,419.10
	Nomura		2015		2025		KRW 111,190		USD 100,000	2.60%	3.25%		1,111.90
	Korea Development Bank		2015		2025		KRW 111,190		USD 100,000	2.62%	3.25%		1,111.90
	Woori Bank		2015		2025		KRW 55,595		USD 50,000	2.62%	3.25%		1,111.90
	Hana Bank		2015		2025		KRW 55,595		USD 50,000	2.62%	3.25%		1,111.90
	Woori Bank		2017		2027		KRW 111,610		USD 100,000	2.25%	3.13%		1,116.10
	Korea Development Bank		2017		2027		KRW 111,610		USD 100,000	2.31%	3.13%		1,116.10
	Hana Bank		2017		2027		KRW 111,610		USD 100,000	2.31%	3.13%		1,116.10
	Korea Development Bank		2018		2028		KRW 108,600		HKD 800,000	2.69%	3.35%		135.75
	Shinhan Bank		2018		2028		KRW 115,387		HKD 850,000	2.66%	3.35%		135.75
	Korea Development Bank		2018		2023		KRW 170,280		USD 150,000	2.15%	3.75%		1,135.20
	Woori Bank		2018		2023		KRW 170,280		USD 150,000	2.18%	3.75%		1,135.20
	Hana Bank		2018		2023		KRW 113,520		USD 100,000	2.17%	3.75%		1,135.20
	Shinhan Bank		2018		2023		KRW 227,040		USD 200,000	2.17%	3.75%		1,135.20
	Korea Citi bank		2019		2024		KRW 239,956		CHF 200,000	1.44%	0.00%		1,199.78
	Korea Development Bank		2019		2027		KRW 119,978		CHF 100,000	1.43%	0.05%		1,199.78
	Woori Bank		2021		2026		KRW 222,800		USD 200,000	0.93%	1.25%		1,114.00
	Shinhan Bank		2021		2026		KRW 111,400		USD 100,000	0.92%	1.25%		1,114.00
	Korea Development Bank		2021		2026		KRW 111,400		USD 100,000	0.93%	1.25%		1,114.00
	Nonghyup Bank		2021		2026		KRW 111,400		USD 100,000	0.93%	1.25%		1,114.00
	Woori Bank		2022		2027		KRW 262,000		USD 200,000	3.62%	4.25%		1,310.00
	Export-Import Bank of Korea		2022		2027		KRW 131,000		USD 100,000	3.63%	4.25%		1,310.00
	Kookmin Bank		2022		2027		KRW 131,000		USD 100,000	3.62%	4.25%		1,310.00
	Hana Bank		2022		2027		KRW 131,000		USD 100,000	3.61%	4.25%		1,310.00
	Korea Development Bank		2022		2027		KRW 262,000		USD 200,000	3.63%	4.25%		1,310.00

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	Counterparty	Contract Year		Settlement Year		Contract amounts				Contract interest rate		Contract Exchange Rate
Type	Counterparty	Contract Year		Settlement Year		Pay		Receive		Pay	Receive	Contract Exchange Rate
						(in millions of Won or thousands of foreign currencies except contract exchange rate information)
	Export-Import Bank of Korea		2022		2032		KRW 349,829		HKD 1,935,000	4.87%	5.16%		180.79
	JP Morgan		2022		2032		KRW 75,194		HKD 415,000	5.00%	5.16%		181.79
	HSBC		2019		2024		USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%		USD 0.69
Cash flow hedge	Kookmin Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Shinhan Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Hana Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Korea Development Bank		2020		2026		KRW 118,910		USD 100,000	0.61%	1.00%		1,189.10
	Hana Bank		2020		2026		KRW 118,910		USD 100,000	0.61%	1.00%		1,189.10
	Woori Bank		2020		2026		KRW 118,910		USD 100,000	0.62%	1.00%		1,189.10
	Nomura		2017		2037		KRW 52,457		EUR 40,000	2.60%	1.70%		1,311.42
	Nomura		2017		2037		KRW 59,423		SEK 450,000	2.62%	2.36%		132.05
	Kookmin Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Korea Development Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Hana Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Korea Development Bank		2022		2027		KRW 123,710		USD 100,000	3.41%	3.63%		1,237.10
	Woori Bank		2022		2027		KRW 123,710		USD 100,000	3.41%	3.63%		1,237.10
	JP Morgan		2022		2027		KRW 123,710		USD 100,000	3.41%	3.63%		1,237.10
	Korea Development Bank		2018		2023		KRW 320,880		USD 300,000	2.03%	3.75%		1,069.60
	BNP Paribas		2019		2024		KRW 111,841		CHF 100,000	1.78%	0.13%		1,118.41
	Kookmin Bank		2019		2024		KRW 111,841		CHF 100,000	1.78%	0.13%		1,118.41
	Korea Development Bank		2022		2025		KRW 128,560		USD 100,000	3.37%	4.13%		1,285.60
	Woori Bank		2022		2025		KRW 128,560		USD 100,000	3.37%	4.13%		1,285.60
	Kookmin Bank		2022		2025		KRW 128,560		USD 100,000	3.37%	4.13%		1,285.60
	Woori Bank		2021		2026		KRW 220,600		USD 200,000	0.47%	0.75%		1,103.00
	Shinhan Bank		2021		2026		KRW 220,600		USD 200,000	0.47%	0.75%		1,103.00
	Hana Bank		2021		2026		KRW 55,150		USD 50,000	0.48%	0.75%		1,103.00
	Korea Development Bank		2018		2023		KRW 169,335		USD 150,000	2.26%	3.88%		1,128.90
	Woori Bank		2018		2023		KRW 169,335		USD 150,000	2.26%	3.88%		1,128.90
	Credit Agricole		2018		2023		KRW 112,890		USD 100,000	2.26%	3.88%		1,128.90
	Hana Bank		2018		2023		KRW 56,445		USD 50,000	2.26%	3.88%		1,128.90
	Kookmin Bank		2018		2023		KRW 56,445		USD 50,000	2.26%	3.88%		1,128.90
	Woori Bank		2020		2025		KRW 245,560		USD 200,000	0.93%	1.75%		1,227.80
	Hana Bank		2020		2025		KRW 245,560		USD 200,000	0.93%	1.75%		1,227.80
	Korea Development Bank		2020		2025		KRW 122,780		USD 100,000	0.93%	1.75%		1,227.80
	JP Morgan		2022		2025		KRW 126,180		USD 100,000	2.80%	3.60%		1,261.80
	Hana Bank		2022		2025		KRW 126,180		USD 100,000	2.80%	3.60%		1,261.80
	Korea Development Bank		2022		2025		KRW 252,360		USD 200,000	2.83%	3.60%		1,261.80
	Woori Bank		2022		2025		KRW 126,180		USD 100,000	2.85%	3.60%		1,261.80

Under these currency swap contracts, we recognized net valuation gain of Won 156 billion in 2022.

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Details of interest rate contracts outstanding as of December 31, 2022 are as follows:


	Counterparty	Contract Year		Settlement Year		Contract amounts		Contract interest rate per annum
Type	Counterparty	Contract Year		Settlement Year		Contract amounts		Pay	Receive
						(in millions of Won or thousands of foreign currencies)
Trading	Nomura⁽¹⁾		2018		2038		30,000	2.56%	3.75%
	Hana Bank		2018		2023		200,000	2.15%	3M CD + 0.19%
	Hana Bank		2018		2023		200,000	2.17%	3M CD + 0.19%
	Hana Bank		2018		2023		150,000	2.03%	3M CD + 0.21%
	Hana Bank		2019		2024		200,000	1.87%	3M CD + 0.13%
	Shinhan Bank		2021		2025		100,000	2.32%	3M CD + 0.43%
	Hana Bank		2022		2027		200,000	3.02%	3M CD + 0.61%
	Hana Bank		2022		2027		200,000	3.04%	3M CD + 0.58%
	Hana Bank		2022		2027		250,000	3.38%	3M CD + 0.59%
	Nomura		2022		2027		200,000	3.55%	3M CD + 0.60%
	Shinhan Bank		2022		2027		150,000	3.53%	3M CD + 0.55%
	Hana Bank		2022		2027		200,000	3.70%	3M CD + 0.59%
	Nomura		2022		2027		300,000	3.89%	3M CD + 0.67%
	Hana Bank		2022		2027		200,000	3.93%	3M CD + 0.67%
	Nomura		2022		2027		200,000	3.80%	3M CD + 0.68%
	Nomura		2022		2027		300,000	4.04%	3M CD + 0.60%
	Hana Bank		2022		2027		100,000	4.68%	3M CD + 1.04%
	Hana Bank		2022		2027		100,000	5.45%	3M CD + 1.20%
	Nomura		2017		2032		52,457	3M Libor + 2.22%	2.60%
	Nomura		2017		2032		59,423	3M Libor + 2.24%	2.62%
	Nomura⁽²⁾		2021		2041		30,000	1.84%	2.60%
	Nomura⁽³⁾		2021		2041		50,000	1.87%	2.38%
	ANZ		2022		2025		AUD 540	0.48%	3.33%
	DBS Bank		2022		2025		AUD 540	0.48%	3.33%
	Societe Generale		2022		2025		AUD 540	0.48%	3.28%
Cash flow hedge	Export-Import Bank of Korea		2015		2031		USD 15,893	2.67%	6M USD Libor
	ING Bank		2015		2031		USD 7,861	2.67%	6M USD Libor
	BNP Paribas		2015		2031		USD 7,861	2.67%	6M USD Libor
	BNP Paribas		2009		2027		USD 51,891	4.16%	6M USD Libor
	KFW		2009		2027		USD 51,891	4.16%	6M USD Libor
	Export-Import Bank of Korea		2016		2036		USD 66,124	3.00%	6M USD Libor

Notes:

(1)	2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(2)	1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(3)	1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

Under these interest rate swap contracts, we recognized net valuation gain of Won 66 billion in 2022.

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We engage in transactions denominated in foreign currencies and consequently become exposed to fluctuations in exchange rates. The carrying amounts of our foreign currency-denominated monetary assets and monetary liabilities as of December 31, 2021 and 2022 were as follows:


	Assets				Liabilities
Type	2021		2022		2021		2022

	(In thousands of foreign currencies)
AED		6,481		5,610		31,637		25,597
AUD		3,733		4,448		926,960		299,663
BDT		50,145		7,514		577		—
BWP		939		824		—		—
EGP		—		—		595		1,162
CAD		582		89		2,266		595
CHF		—		—		500,230		500,158
CZK		—		—		386		153
EUR		1,809		1,976		42,981		41,073
GBP		—		—		—		31
HKD		—		—		1,651,665		4,014,446
IDR		768,731		598,697		995,510		1,323,840
INR		1,715,900		1,592,380		342,833		312,978
JOD		1,852		1,146		118		14
JPY		697,747		568,263		153,383		1,719,846
KZT		1,510		1,510		—		—
MGA		4,262,857		2,856,045		475,807		347,403
MMK		210,335		199,518		—		—
MYR		1,964		38,177		—		—
PHP		164,167		68,592		104,245		7,493
PKR		200,844		533,816		74,423		219,341
RUB		—		—		—		2,881
SAR		2,615		1,713		—		9,710
SEK		—		—		449,167		449,211
THB		—		—		—		389
USD		1,381,441		1,484,614		12,023,085		13,599,643
UYU		90,930		128,674		3,097		3,106
VND		952,135		1,184,670		262,372		4,495
ZAR		31,971		43,461		—		—

The following analysis sets forth the sensitivity of our consolidated net income before income taxes (our “pre-tax income”) to changes in exchange rates, interest rates, electricity rates and fuel costs. For purposes of this section, we and our related parties are deemed one entity. The range of changes in such risk categories represents our view of the changes that are reasonably possible over a one-year period, although it is difficult to predict such changes as a result of adverse economic developments in Korea. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy—Unfavorable financial and economic conditions in Korea and globally may have a material adverse impact on us.” The following discussion only addresses material market risks faced by us and does not discuss other risks which we face in the normal course of business, including country risk, credit risk and legal risk. Unless otherwise specified, all calculations are made under IFRS.

If the Won depreciates against the U.S. dollar and all other foreign currencies held by us by 10%, and all other variables are held constant from their levels as of December 31, 2022, we estimate that our unrealized foreign exchange translation losses will increase by Won 1,703 billion in 2023. Such sensitivity analysis is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency as of December 31, 2021 and 2022, without taking into consideration of the hedge effect of swap transactions. To

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manage our foreign currency risk related to foreign currency-denominated receivables and payables, we have a policy of entering into currency forward agreements. In addition, to manage our foreign currency risk related to foreign currency-denominated expected sales transactions and purchase transactions, we enter into cross-currency swap agreements.

We are exposed to interest rate risk due to our borrowings with floating interest rates. If interest rates increase by 1% on all of our borrowings and debentures bearing variable interest, and all other variables are held constant as of December 31, 2022, we estimate that our profit before income taxes will decrease by Won 88 billion (not reflecting the fact that a portion of such interest may be capitalized under IFRS) in 2023. Such sensitivity analysis does not take into consideration of the hedge effect of interest rate swap transactions. To manage our interest rate risks, we, in addition to maintaining an appropriate mix of fixed and floating rate loans, have entered into certain interest rate swap agreements.

We are exposed to electricity rates risk due to the rate regulation by the Government, which considers the effect of electricity rate changes on the national economy. If the electricity rate rises by 1% and all other variables are held constant as of December 31, 2022, we estimate that our profit before income taxes will decrease by Won 662 billion in 2023.

We are exposed to fuel price risks due to the heavy influence of fuel costs on our sales and cost of sales. If the fuel prices of anthracite and bituminous coal, oil, LNG and others used for generation by us and our generation subsidiaries rise by 1% and all other variables are held constant as of December 31, 2022, we estimate that our profit before income taxes will decrease by Won 343 billion in 2023.

The above discussion and the estimated amounts generated from the sensitivity analyzes referred to above include “forward-looking statements,” which assume for analytical purposes that certain market conditions may occur. Accordingly, such forward-looking statements should not be considered projections by us of future events or losses.

See Note 45 of the notes to our consolidated financial statements included in this annual report for further related information.

ITEM 12.

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Item 12.A. Debt Securities

Of the four debt securities issued by us that are registered under the Exchange Act as set forth in the cover page of this annual report, the One Hundred Year 7.95% Zero-to-Full Debentures due April 1, 2096, were guaranteed by Korea Development Bank. However, such guarantee expired on April 1, 2016 by reason of the expiration of a put option period applicable to such debentures in accordance with the terms of such debentures.

Korea Development Bank, a statutory bank for the Korean government, is 100% beneficially owned by the Korean government. The voting rights in our equity interest held by Korea Development Bank are effectively exercised by the Korean government.

The guarantee by Korea Development Bank of our above-mentioned registered debt securities was itself a security registered under the Securities Act. Korea Development Bank is a Schedule B issuer and periodically files registration statements with the Commission. These registration statements typically include financial statements prepared in accordance with the applicable generally accepted accounting principles, currently the Korean International Financial Reporting Standards, and audited in accordance with generally accepted auditing standards in the Republic of Korea.

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Item 12.B. Warrants and Rights

Not applicable.

Item 12.C. Other Securities

Not applicable.

Item 12.D. American Depositary Shares

Under the terms of the Deposit Agreement in respect of our ADSs, the holder and beneficiary owners of ADSs, any party depositing or withdrawing or surrendering ADSs or ADRs, whichever applicable, may be required to pay the following fees and charges to Citibank, N.A., whose principal executive office located in 388 Greenwich St. New York, NY 10013, acting as depositary for our ADSs:


Item	Services	Fees

1	Taxes and other governmental charges	As applicable

2	Registration of transfer of common shares generally on our shareholders’ register, any institution authorized under the applicable law to effect book-entry transfers of securities (including Korea Securities Depositary), or any entity that presently carries out the duties of registrar for the common shares, and applicable to transfers of common shares to the name of the Depositary or its nominee on the making of deposits or withdrawals	A fee of US$1.50 or less per ADS

3	Cable, telex and facsimile transmission expenses	As applicable

4	Expenses incurred by the Depositary in the conversion of foreign currency	As applicable

5	Execution and delivery of ADRs and the surrender of ADRs	Fee of US$0.05 or less per ADS

6	Cash distribution made by the Depositary or its agent	Fee of US$0.02 or less per ADS

7	Fee for the distribution of proceeds of sales of securities or rights for distribution other than cash, common shares or rights to subscribe for shares, distribution in shares or distribution in rights to subscribe for shares	Lesser of (i) the fee for the execution and delivery of ADRs referred to above which would have been charged as a result of the deposit by the holders of securities or common shares received in exercise of rights distributed to them, but which securities or rights are instead sold by the Depositary and the net proceeds distributed and (ii) the amount of such proceeds

8	Depositary services performed in administering the ADRs (which fee shall be assessed against holders of ADSs as of the record date or dates and shall be payable at the sole discretion of the Depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash distributions)	Fee of US$0.02 or less per ADS per calendar year

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Depositary fees payable upon the issuance and cancelation of ADSs are typically paid to the depositary by the brokers (on behalf of their clients) receiving the newly-issued ADSs from the depositary and by the brokers (on behalf of their clients) delivering the ADSs to the depositary for cancelation. The brokers in turn charge these transaction fees to their clients.

Depositary fees payable in connection with distributions of cash or securities to ADS holders and the depositary services fee are charged by the depositary to the holders of record of ADSs as of the applicable ADS record date. The depositary fees payable for cash distributions are generally deducted from the cash being distributed. In the case of distributions other than cash (i.e., stock dividends, rights offerings), the depositary charges the applicable fee to the ADS record date holders concurrent with the distribution. In the case of ADSs registered in the name of the investor (whether certificated or un-certificated in direct registration), the depositary sends invoices to the applicable record date ADS holders. In the case of ADSs held in brokerage and custodian accounts via the central clearing and settlement system, the Depository Trust Company (“DTC”), the depositary generally collects its fees through the systems provided by DTC (whose nominee is the registered holder of the ADSs held in DTC) from the brokers and custodians holding ADSs in their DTC accounts. The brokers and custodians who hold their clients’ ADSs in DTC accounts in turn charge their clients’ accounts the amount of the fees paid to the depositary.

In the event of refusal to pay the depositary fees, the depositary may, under the terms of the Deposit Agreement, refuse the requested service until payment is received or may set-off the amount of the depositary fees from any distribution to be made to the ADS holder.

The fees and charges the ADS holders may be required to pay may vary over time and may be changed by us and by the depositary. The ADS holders will receive prior notice of such changes.

Depositary Payments for the Fiscal Year 2022

The following table sets forth our expenses incurred in 2022, which were reimbursed by Citibank, N.A. in the aggregate:


	(In thousands of U.S. dollars)⁽¹⁾
Reimbursement of legal fees	US$	—
Contributions towards our investor relations and other financing efforts (including investor conferences, non-deal roadshows and market information services)		134,428
Other		72,652

Total	US$	207,080

Note:

(1)	Converted at the market average exchange rate as announced by Seoul Money Brokerage Services, Ltd. in Seoul for the year ended December 31, 2022.

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PART II

ITEM 13.

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14.

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15.

CONTROLS AND PROCEDURES

Disclosure Control

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of December 31, 2022. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can provide only reasonable assurance of achieving their control objectives. Based upon our evaluation, our chief executive officer and chief financial officer concluded that the design and operation of our disclosure controls and procedures as of December 31, 2022 were effective to provide reasonable assurance that information required to be disclosed by us in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decision regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, for our company. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of our internal control over financial reporting as of December 31, 2022 based on the framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with generally accepted accounting principles and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of a company’s assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that a company’s receipts and expenditures are being made only in accordance with authorizations of a company’s management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance with respect to consolidated financial statement preparation and presentation and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Following the overhaul in May 2013 by the Committee of Sponsoring Organization of the Treadway (“COSO”) of the COSO Framework relating to internal controls and adoption of the 2013 Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Framework (2013)”), we have, effective January 1, 2014, adopted the COSO Framework (2013) and incorporated it into our internal control system for us and our subsidiaries in order to comply with the Sarbanes Oxley Act and to standardize our internal control system. As required by Section 404 of the Sarbanes-Oxley Act of 2002 and related rules as promulgated by the Securities and Exchange Commission, management assessed the effectiveness of our internal control over financial reporting as of December 31, 2022 using criteria established by the COSO Framework (2013). Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2022 based on the criteria established by the COSO Framework (2013).

Audit Report of the Independent Registered Public Accounting Firm

Ernst & Young Han Young has issued an audit report on the effectiveness of our internal control over financial reporting as of December 31, 2022, which is included elsewhere in this annual report.

Changes in Internal Controls

There were no changes in our internal control over financial reporting that occurred during the year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our adoption of the COSO Framework (2013) did not have, and is not reasonably likely to have, any material effect on our internal control over financial reporting.

On the other hand, in preparation for seamless transition to the new cost pass-through system, we have adopted an enhancement to our internal control over financial reporting effective as of January 1, 2021. Nevertheless, such enhancement did not have any effect on our consolidated financial statements included in this annual report or related internal controls to have any effect on our assessment of internal control over financial reporting as of December 31, 2022. We believe such enhancement would not have, and is not likely to have, any material effect on our internal control over financial reporting in 2023.

We operate an integrated ERP system for a transparent and efficient management of the core ERP components, including personnel, accounting, procurement, construction and facilities maintenance. In addition, we also operate a strategic enterprise management system that includes business warehouse, management information and business planning and simulation systems. We will continue to upgrade and improve the ERP system, which is being used as our core information infrastructure.

ITEM 16.

[RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

Our board of directors has determined that we have at least one “audit committee financial expert” as such term is defined by the regulations of the Securities and Exchange Commission issued pursuant to Section 407 of the Sarbanes-Oxley Act of 2002. Our audit committee financial expert is Kim, Jae-Shin. Such member is independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Enforcement Decree of the Korean Commercial Act and the New York Stock Exchange listing standards.

ITEM 16B. CODE OF ETHICS

We have adopted a code of ethics for our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions as required under Section 406 of the Sarbanes-Oxley Act of 2002, together with an insider reporting system in compliance with Section 301 of the

173

Sarbanes-Oxley Act. The code of ethics is available on our website www.kepco.co.kr. We have not granted any waiver, including an implicit waiver, from a provision of the code of ethics to any of the above-mentioned officers during our most recently completed fiscal year.

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table sets forth the aggregate fees billed for each of the years ended December 31, 2021 and 2022 for professional services rendered by our principal accountant for such year, for various types of services and a brief description of the nature of such services. Ernst & Young Han Young, an independent registered public accounting firm, was our principal accountant for the years ended December 31, 2021 and 2022 and we currently expect Ernst & Young Han Young to serve as our principal accountant for the year ended December 31, 2023.


	Aggregate Fees Billed During
Type of Services	2021		2022		Nature of Services
	(In millions of Won)
Audit Fees	W	8,002	W	9,030	Audit service including interim review service for KEPCO and its subsidiaries.
Audit-Related Fees		498		880	Comfort letter services.
Tax Fees		20		106	Tax return and consulting advisory service.
All Other Fees		—		—	All other services which do not meet the three categories above.

Total	W	8,520	W	10,016

The U.S. law and regulations in effect since May 6, 2003 generally require all service of the principal accountant to be pre-approved by an independent audit committee or, if no such committee exists with respect to an issuer, by the entire board of directors. We have adopted the following policies and procedures for consideration and approval of requests to engage our principal accountant to perform audit and non-audit services. If the request relates to services that would impair the independence of our principal accountant, the request must be rejected. If the service request relates to audit and permitted non-audit services for us and our subsidiaries, it must be forwarded to our audit committee and receive pre-approval.

In addition, the U.S. law and regulations permit the pre-approval requirement to be waived with respect to engagements for non-audit services aggregating no more than five percent of the total amount of revenues we paid to our principal auditors, if such engagements were not recognized by us at the time of engagement and were promptly brought to the attention of our audit committee or a designated member thereof and approved prior to the completion of the audit.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEE

Not applicable.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Neither we nor any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) of the Exchange Act, purchased any of our equity securities during the period covered by this annual report.

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ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

ITEM 16G. CORPORATE GOVERNANCE

We are committed to high standards of corporate governance. We are in compliance with the corporate governance provisions of the KEPCO Act, the Act on the Management of Public Institutions, the Korean Commercial Act, the Financial Investment Services and Capital Markets Act of Korea and the Listing Rules of the Korea Exchange. We, like all other companies in Korea, must comply with the corporate governance provisions under the Korean Commercial Act, except to the extent the KEPCO Act and the Act on the Management of Public Institutions otherwise require. Our corporate governance is also affected by various regulatory guidelines, including those promulgated by the Ministry of Economy and Finance. In addition, as a company listed on the Korea Exchange, we are subject to the Financial Investment Services and Capital Markets Act of Korea, unless the Financial Investment Services and Capital Markets Act of Korea otherwise provides.

The Act on the Management of Public Institutions

General Provisions

On April 1, 2007, the Act on the Management of Public Institutions took effect by abolishing and replacing the Government-invested Enterprise Management Basic Act, which was enacted in 1984. Unless stated otherwise therein, the Act on the Management of Public Institutions takes precedence over any other laws and regulations in the event of inconsistency. On April 2, 2007, pursuant to this Act the Minister of the Ministry of Economy and Finance designated us as a “market-oriented public enterprise” as defined under this Act, and we became subject to this Act accordingly. We incorporated the applicable provisions of this Act into our Articles of Incorporation by amendment thereto in September 2007.

The Act on the Management of Public Institutions sets out the rules for corporate governance for entities that are subject to this Act, including the appointment of their respective president and directors. Under this Act as it applies to us as a “market-oriented public enterprise”, (i) a senior non-standing director as appointed by the Minister of the Ministry of Economy and Finance becomes the chairperson of our board of directors following the review and resolution of the Committee for Management of Public Institutions; (ii) our president and our standing directors who concurrently serve as members of our audit committee are appointed by the President of the Republic upon the motion of the Ministry of Trade, Industry and Energy (in the case of our president) or of the Ministry of Economy and Finance (in the case of standing directors who concurrently serve as members of our audit committee), following the nomination by such enterprise’s director nomination committee, the review and resolution of the Committee for Management of Public Institutions pursuant to the Act on the Management of Public Institutions and an approval at the general meeting of our shareholders; (iii) our standing directors other than the president and those who also serve as audit committee members must be appointed by our president with the approval at the general meeting of our shareholders from a pool of candidates recommended by our director nomination committee; and (iv) our non-standing directors must be appointed by the Minister of the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee, and must (a) have ample knowledge and experience in business management who cannot be public service personnel other than a public educational official at national or public schools or (b) have held their offices in us for at least three years and either (x) be recommended by the representative of our employees (or the representative of the labor union if there is a labor union comprising the majority of our employees) or (y) obtain consent from the majority of our employees. We are required to appoint at least one non-standing director who qualifies the requirement (b) above.

The Committee for Management of Public Institutions is established pursuant to the Act on the Management of Public Institutions and is comprised of one chairperson who is the Minister of the Ministry of Economy and

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Finance and the following members: (i) one Vice Minister-level public official from the Office for Government Policy Coordination as nominated by the Minister of the Office for Government Policy Coordination; (ii) one Vice Minister, Deputy Administrator or an equivalent public official of the related administrative agency as prescribed by Presidential Decree; (iii) one Vice Minister, Deputy Administrator, or an equivalent public official of the competent agency who does not fall under sub-clause (ii); and (iv) 11 or fewer persons commissioned by the President based on the recommendation of the Minister of the Ministry of Economy and Finance from among persons in various fields including law, economy, press, academia, labor, who have good knowledge and experience in the operation and business administration of public institutions as well as good reputation for impartiality.

Our director nomination committee, which is also known as the Committee for Recommendation of Executive Officers, is comprised of non-standing directors and members appointed by the board of directors. The number of members ranges from five to 15 persons and must be decided by a resolution of the board of directors; provided that, the number of members appointed by the board of directors must be less than half of the total number of members of our director nomination committee.

Under the Act on the Management of Public Institutions and our Articles of Incorporation, the term of office is three years for our president and two years for our directors (standing and non-standing) other than our president. Our directors (including the president) may be reappointed for one or more additional terms of one year. In order to be reappointed, the president must be evaluated on the basis of his management performance; a standing director, on the basis of the performance of the duties for which he was elected to perform, or if the standing director has executed an incentive bonus contract, on the basis of his performance under the contract; and a non-standing director, on the basis of his performance of the duties for which he was elected to perform.

Under the Act on the Management of Public Institutions and our Articles of Incorporation, a recommendation from the director nomination committee is required for the appointment of our executive officers, except in the case of reappointments. The director nomination committee consists of five to fifteen members, including private-sector members appointed by the board of directors. Non-standing directors must comprise at least a majority of the director nomination committee. One of the private-sector members must be able to represent our opinion and must not be currently employed by us. As required under the Act on the Management of Public Institutions, we established an audit committee. At least two-thirds of the audit committee members must be non-standing directors, and at least one committee member must be an expert in finance or accounting. According to the Act on the Management of Public Institutions, our president’s term cannot be terminated unless done so by the President of the Republic pursuant to the Act on the Management of Public Institutions or upon an event as specified in our Articles of Incorporation.

As required under Act on the Management of Public Institutions, we submit to the Government by October 31 every year a report on our medium- to long-term management goals. Under the Act on the Management of Public Institutions, we are also required to give separate public notice of important management matters, such as our budget and financial statements, status of directors and annual reports. In addition, for purposes of providing a comparison of the management performances of Government agencies, we are required to post on a designated website a notice on a standard form detailing our management performance. Following consultation with the Minister of the Ministry of Trade, Industry and Energy and the review and resolution of the Committee for Management of Public Institutions, the Ministry of Economy and Finance must examine the adequacy and competency of Government agencies and establish plans on merger, abolishment, restructuring and privatization of public agencies. In such case, the Minister of the Ministry of Trade, Industry and Energy must execute these plans and submit a performance report to the Ministry of Economy and Finance.

Under certain amendments to the Act on the Management of Public Institutions that became effective as of July 1, 2019, our president is required to establish a plan to appoint directors and senior management based on the gender equality, endeavor to follow such plan, and submit an annual report on our gender equality plan regarding appointment of directors and senior management to the Ministry of Economy and Finance.

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Application of the Act to Our Generation Subsidiaries

On January 24, 2011, the Ministry of Economy and Finance changed the designation of our six generation subsidiaries from “other public institutions” to “market-oriented public enterprises”, each as defined in the Act on the Management of Public Institutions, and all of our generation subsidiaries accordingly amended their respective articles of incorporation in 2011 to be in compliance with this Act. As “other public institutions”, our generation subsidiaries previously were not subject to the same regulations under the Act on the Management of Public Institutions applicable to us with regards to corporate governance matters such as the appointment and dismissal of directors and the composition of the boards of directors. However, as “market-oriented public enterprises”, our generation subsidiaries are currently subject to the same such regulations that are applicable to us.

Specifically, prior to such designation, (i) our president appointed the presidents and the statutory auditors of our generation subsidiaries; (ii) the selection of non-standing directors of each such subsidiary was subject to approval by our president; (iii) the president of each such subsidiary entered into a management contract with our president; and (iv) our evaluation committee conducted performance evaluation of such subsidiaries. However, following such designation, akin to the appointment process applicable to us, (i) the President of the Republic appoints the presidents and standing directors of our generation subsidiaries that concurrently serve as members of the audit committees; (ii) the selection of non-standing directors of these subsidiaries is subject to approval by the Minister of the Ministry of Economy and Finance; (iii) the president of each such generation subsidiary is required to enter into a management contract directly with the Minister of the Ministry of Trade, Industry and Energy; and the Committee for Management of Public Institutions conducts performance evaluation of such subsidiaries.

Our Control over the Generation Subsidiaries

Designation of our generation subsidiaries as “market-oriented public enterprises” was intended to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them so as to provide improved service to the general public. Such designation also has had the effect of the Government exercising greater direct control over the appointment of the governing body of our generation subsidiaries (in ways that are similar how the Government exercises such control over us as our majority shareholder as well as our regulator).

In addition, the Government has imposed a number of regulations that further affect the respective operational boundaries between us and our generation subsidiaries, including as follows:

•

In August 2010, in furtherance of the Act on the Management of Public Institutions, the Ministry of Economy and Finance announced the Proposal for the Improvement in the Structure of the Electric Power Industry, which was designed to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them. Key initiatives of the proposal included the following: (i) maintain the current structure of having six generation subsidiaries and designate the six generation subsidiaries as market-oriented public enterprises under the Act on the Management of Public Institutions in order to foster competition among the generation subsidiaries and promote efficiency in their operations, and (ii) clarify the scope of the business of us and the six generation subsidiaries (namely, that we shall manage the financial structure and governance of the six generation subsidiaries and nuclear power plant and overseas resources development projects, while the six generation subsidiaries will have greater autonomy with respect to construction and management of generation units and procurement of fuel, among others).

•

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of economy of scale after split off of our generation business units into separate subsidiaries. The purpose of the joint cooperation unit was to give greater autonomy to the generation subsidiaries with regard to power plant construction and management and fuel procurements, and thereby enhance efficiency in operating power plants. The main functions of the joint cooperation unit are as follows: (i) maintain inventories of bituminous coal through volume exchanges and joint purchases, (ii) reduce shipping and demurrage expenses through joint operation and distribution of dedicated vessels, (iii) reduce costs by sharing information on generation material inventories and (iv) sharing human resources among the five thermal power generation subsidiaries for construction projects, among other things.

•

However, notwithstanding these developments, we, also a government-controlled entity, remain as the sole shareholder of our generation subsidiaries and continue to exercise significant control over them in such capacity as the sole shareholder well as through other practical means as further described below.

First, as the sole shareholder, we continue to have the right, under the Act on the Management of Public Institutions, to approve or disapprove the appointment of key members of the governing body of our generation subsidiaries (namely, the president, the standing directors, and the non-standing directors) by way of a vote at the general shareholders meeting before such appointments are ultimately approved and made by the President of the Republic (in the case of the presidents and standing directors concurrently serving as audit committee members of the generation subsidiaries) or by the president of each generation subsidiary (in the case of other standing directors of such generation subsidiary). Our right to exercise such voting right as a shareholder is also protected by the Commercial Act of Korea.

Second, in practice we retain significant control over our generation subsidiaries through the following means:

•

We are the sole purchaser of electricity produced by the generation subsidiaries and continue to have near monopoly in terms of transmitting and distributing electricity in Korea. Accordingly, we continue to have significant influence over our generation subsidiaries in the electricity industry.

•

Our president holds regular meetings (known as “CEO Meetings”) with the presidents of our generation subsidiaries for which our president determines whether and when to convene such meetings, sets the agenda for such meetings and chairs such meetings. Since significant issues that jointly affect us and our generation subsidiaries are often discussed and decided at these meetings, the leadership role exercised by our president in such meetings is significant in setting the policies and direction for us and our generation subsidiaries as a whole.

•

We maintain and operate the Affiliated Company Management Team within the parent company organizational structure. The purpose of this team is to support and coordinate the management of the generation subsidiaries. Activities of the Affiliated Company Management Team include preparation of the CEO meetings, deliberation on major issues to be discussed at CEO Meetings, convening a general meeting of shareholders of the generation subsidiaries and coordination on the decision-making process for the general meeting of shareholders of the generation subsidiaries.

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Ultimately, our control over our generation subsidiaries is derived from the fact that the Government owns the majority of our shares and effectively controls us as the supervisor and regulator in a heavily regulated industry, and in effect also exercises the same degree of control over our generation subsidiaries through our sole share ownership over our generation subsidiaries as well as its statutory power of direct appointment of the governing bodies of our generation subsidiaries. In effect, we are acting as an intermediate holding company in a vertical control structure involving the Government, us and our generation subsidiaries, where the Government holds the ultimate control over both us and our generation subsidiaries and exercises its control over our generation subsidiaries in part through us acting as the sole shareholder and the parent company.

Differences between Korean and New York Stock Exchange Corporate Governance Practices

We are a “foreign private issuer” (as such term is defined in Rule 3b-4 under the Exchange Act), and our ADSs are listed on the New York Stock Exchange, or NYSE. Under Section 303A of the NYSE Listed Company Manual, NYSE-listed companies that are foreign private issuers are permitted to follow home country practice in lieu of the corporate governance provisions specified by the NYSE with limited exceptions. Under the NYSE Listed Company Manual, we as a foreign private issuer are required to disclose significant differences between NYSE’s corporate governance standards and those we follow under Korean law. The following summarizes some significant ways in which our corporate governance practices differ from those followed by U.S. companies listed on the NYSE under the listing rules of the NYSE.

Majority of Independent Directors on the Board

Under the NYSE listing rules, U.S. companies listed on the NYSE must have a board, the majority of which is comprised of independent directors satisfying the requirements of “independence” as set forth in Rule 10A-3 under the Exchange Act. No director qualifies as “independent” unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with us). The NYSE rules include detailed tests for determining director independence. As a foreign private issuer, we are exempt from these requirements. Under the Act on the Management of Public Institutions, the number of standing directors including our president must be less than one-half of incumbent directors. For a discussion on qualifications of non-standing directors, see Item 6.A. “Directors and Senior Management—Board of Directors.” Under the Act on the Management of Public Institutions, a non-standing director is appointed by the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee, and must (i) have ample knowledge and experience in business management or (ii) have held his or her offices for at least three years and either (a) be recommended by the representative of the employees (or the representative of the labor union if there is a labor union comprising the majority of the employees) or (b) obtain consent from the majority of the employees. We are required to appoint at least one non-standing director who qualifies the requirement (ii) above. Government officials that are not part of the teaching staff in national and public schools are ineligible to become our non-standing directors.

Executive Session

Under the NYSE listing rules, non-management directors of U.S. companies listed on the NYSE are required to meet on a regular basis without management present and independent directors must meet separately at least once per year. While no such requirement currently exists under applicable Korean law, listing standards or our Articles of Incorporation, executive sessions were held from time to time in 2018 and in 2021 in order to promote the exchange of diverse opinions by non-standing directors.

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Audit Committee

Under the NYSE listing rules, listed companies must have an audit committee that has a minimum of three members, and all audit committee members must satisfy the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule 10A-3 under the Exchange Act. Our audit committee members meet the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule 10A-3 under the Exchange Act. The audit committee must be directly responsible for the appointment, compensation, retention and oversight of the work of the independent registered public accountants. Our audit committee performs the roles and responsibilities required of an audit committee under the Sarbanes-Oxley Act, including the supervision of the audit by the independent registered public accountants. Under the Korea Exchange listing rules and the Korean Commercial Act, a large listed company must also establish an audit committee of which at least two-thirds of its members must be non-standing directors and whose chairperson must be a non-standing director. Under the Act on the Management of Public Institutions, the Korean Commercial Act, the amended Articles of Incorporation and the Korea Exchange listing rules, we are required to maintain an audit committee consisting of three members, of which not less than two members are required to be non-standing directors. In addition, pursuant to certain amendments to the Act on the Management of Public Institutions that became effective as of January 1, 2021, in appointing the standing member of the audit committee, the director nomination committee shall recommend the person who is qualified in any of the followings: (i) a person who is qualified as a certified public accountant or an attorney and has a minimum of three years of experience in work related to such qualification, (ii) a person who has served as an assistant professor or at a higher position for at least three years in areas directly related to audit, investigation and judicial affairs, budget and accounting, investigation, planning and evaluation, etc. (hereinafter referred to as “audit related works”) at a school under subparagraphs 1 through 5 of Article 2 of the Higher Education Act), (iii) a person who has been in charge of audit-related works for at least three years at a public institution, stock-listed corporation or research institute under Article 9(15)3 of the Financial Investment Services and Capital Markets Act and has experience prescribed by Presidential Decree, (iv) person who has been in charge of audit-related works for at least three years at the state or a local government and has served as a public official at the level prescribed by Presidential Decree, or (v) person with other expertise in accordance with the affairs of the relevant institution and qualified as prescribed by Presidential Decree.

Our audit committee is in compliance with the foregoing requirements under the Act on the Management of Public Institutions, the Korean Commercial Act, the amended Articles of Incorporation and the Korea Exchange listing rules.

On April 2, 2021, we amended our Articles of Incorporation to incorporate an amendment to the Commercial Act implemented on December 29, 2020, which requires at least one director who will serve as a member of the audit committee to be appointed separately from other directors at the meeting of shareholders. Our amended Articles of Incorporation requires all three directors who will serve as a member of the audit committee to be appointed separately from other directors at the meeting of shareholders.

Nomination/Corporate Governance Committee

Under the NYSE listing rules, U.S. companies listed on the NYSE must have a nomination/corporate governance committee composed entirely of independent directors. In addition to identifying individuals

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qualified to become board members, this committee must develop and recommend to the board a set of corporate governance principles. Under the Act on the Management of Public Institutions, we are required to have a director nomination committee which consists of non-standing directors and ad hoc members appointed by our board of directors. Our standing directors and executives as well as governmental officials that are not part of the teaching staff in national and public schools are ineligible to become a member of our director nomination committee. There is no requirement to establish a corporate governance committee under applicable Korean law.

Pursuant to the NYSE listing standards, non-management directors must meet on a regular basis without management present and independent directors must meet separately at least once per year. No such requirement currently exists under applicable Korean law.

Compensation Committee

Under the NYSE listing rules, U.S. companies listed on the NYSE are required to have a compensation committee which is composed entirely of independent directors. In January 2013, the SEC approved amendments to the listing rules of NYSE and NASDAQ regarding the independence of compensation committee members and the appointment, payment and oversight of compensation consultants. The listing rules were adopted as required by Section 952 of the Dodd-Frank Act and rule 10C-1 of the Exchange Act, which direct the national securities exchanges to prohibit the listing of any equity security of a company that is not in compliance with the rule’s compensation committee director and advisor independence requirements. Certain elements of the listing rules became effective on July 1, 2013 and companies listed on the NYSE must comply with such listing rules by the earlier of the company’s first annual meeting after January 15 or October 31, 2014.

No such requirement currently exists under applicable Korean law or listing standards, and we currently do not have a compensation committee.

Corporate Governance Guidelines and Code of Business Conduct and Ethics

Under the NYSE listing rules, U.S. companies listed on the NYSE are required to establish corporate governance guidelines and to adopt a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. As a foreign private issuer, we are exempt from this requirement. Pursuant to the requirements of the Sarbanes-Oxley Act, we have adopted a code of ethics applicable to our President & Chief Executive Officer and all other directors and executive officers including the Chief Financial Officer and the Chief Accounting Officer, as well as all financial, accounting and other officers that are involved in the preparation and disclosure of our consolidated financial statements and internal control of financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. We have also adopted an insider reporting system in compliance with Section 301 of the Sarbanes-Oxley Act. The code of ethics applicable to our executive officers and financial officers are available on www.kepco.co.kr.

Shareholder Approval of Equity Compensation Plans

Under the NYSE listing rules, shareholders of U.S. companies listed on the NYSE are required to approve all equity compensation plans. Under Korean law and regulations, stock options can be granted to employees to the extent expressly permitted by the articles of incorporation. We currently do not have any equity compensation plans.

Annual Certification of Compliance

Under the NYSE listing rules, a chief executive officer of a U.S. company listed on the NYSE must annually certify that he or she is not aware of any violation by the company of NYSE corporate governance standards. As a foreign private issuer, we are not subject to this requirement. However, in accordance with rules applicable to both U.S. companies and foreign private issuers, we are required to promptly notify the NYSE in writing if any executive officer becomes aware of any material noncompliance with the NYSE corporate

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governance standards applicable to us. In addition, foreign private issuers, including us, are required to submit to the NYSE an annual written affirmation relating to compliance with Sections 303A.06 and 303A.11 of the NYSE listed company manual, which are the NYSE corporate governance standards applicable to foreign private issuers. All written affirmations must be executed in the form provided by the NYSE, without modification. An annual written affirmation is required to be submitted to the NYSE within 30 days of filing with the SEC our annual report on Form 20-F. We have been in compliance with this requirement in all material respects and plan to submit such affirmation within the prescribed time line.

Whistle Blower Protection

On May 25, 2011, the SEC adopted final rules to implement whistleblower provisions of the Dodd-Frank Act, which are applicable to foreign private issuers with securities registered under the U.S. securities laws. The final rules provide that any eligible whistleblower who voluntarily provides the SEC with original information that leads to the successful enforcement of an action brought by the SEC under U.S. securities laws must receive an award of between 10 and 30 percent of the total monetary sanctions collected if the sanctions exceed US$1,000,000. An eligible whistleblower is defined as someone who provides information about a possible violation of the securities laws that he or she reasonably believes has occurred, is ongoing, or is about to occur. The possible violation does not need to be material, probably or even likely, but the information must have a “facially plausible relationship to some securities law violation”; frivolous submissions would not qualify. The final rules also prohibit retaliation against the whistleblower. While the final rules do not require employees to first report allegations of wrongdoing through a company’s corporate compliance system, they do seek to incentivize whistleblowers to utilize internal corporate compliance first by, among other things, (i) giving employees who first report information internally the benefit of the internal reporting date for purposes of the SEC program so long as the whistleblower submits the same information to the SEC within 120 days of the initial disclosure; (ii) clarifying that the SEC will consider, as part of the criteria for determining the amount of a whistleblower’s award, whether the whistleblower effectively utilized the company’s corporate compliance program or hindered the function of the program; and (iii) crediting a whistleblower who reports internally first and whose company passes the information along to the SEC, which would mean the whistleblower could receive a potentially higher award for information gathered in an internal investigation initiated as a result of the whistleblower’s internal report.

In addition, the final rules address concerns that the whistleblower rules incentivize officers, directors and those with legal, audit, compliance or similar responsibilities to abuse these positions by making whistleblower complaints to the SEC with respect to information they obtained in these roles by generally providing that information obtained through a communication subject to attorney-client privilege or as a result of legal representation would not be eligible for a whistleblower award unless disclosure would be permitted by attorney conduct rules. Accordingly, officers and directors, auditors and compliance personnel and other persons in similar roles would not be eligible to receive awards for information received in these positions unless (x) they have a reasonable basis to believe that (1) disclosure of the information is necessary to prevent the entity from engaging in conduct that is likely to cause substantial injury to the financial interests of the entity or investors; or (2) the entity is engaging in conduct that will impede an investigation of the misconduct, for example, destroying documents or improperly influencing witnesses; or (y) 120 days have passed since the whistleblower provided the information to senior responsible persons at the entity or 120 days have passed since the whistleblower received the information at a time when these people were already aware of the information.

In Korea, under the Financial Investment Services and Capital Markets Act, anyone may provide or furnish the Financial Services Commission or the Securities and Futures Commission with information on unfair trading or any other violation of the Financial Investment Services and Capital Markets Act. The Financial Services Commission shall keep the identity of the whistleblower confidential, and any institution, organization or company to which the whistleblower belongs may not treat the whistleblower unfavorably, directly or indirectly. In addition, the Financial Services Commission may also reward the whistleblower within the limit of the budget of the Financial Services Commission.

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ITEM 16H.

MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

Not applicable.

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PART III

ITEM 17.

FINANCIAL STATEMENTS

We have responded to Item 18 in lieu of responding to this item.

ITEM 18.

FINANCIAL STATEMENTS

Reference is made to Item 19(a). “Exhibits” for a list of all financial statements filed as part of this annual report.

ITEM 19.

EXHIBITS

(a)	Exhibits filed as part of this Annual Report

See Index of Exhibits beginning on page 159 of this annual report.

(b)	Financial Statements filed as part of this Annual Report

See Index to Financial Statements on page F-1 of this annual report.

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INDEX OF EXHIBITS


1.1		Articles of Incorporation, as amended on November 7, 2022 (in English)

2.1		Form of Deposit Agreement*

8.1		List of Subsidiaries

12.1		Certifications of our Chief Executive Officer required by Rule 13a-14(a) of the Exchange Act (Certifications under Section 302 of the Sarbanes-Oxley Act of 2002)

12.2		Certifications of our Chief Financial Officer required by Rule 13a-14(a) of the Exchange Act (Certifications under Section 302 of the Sarbanes-Oxley Act of 2002)

13.1		Certifications of our Chief Executive Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of the United States Code (18 U.S.C. 1350) (Certifications under Section 906 of the Sarbanes-Oxley Act of 2002)

13.2		Certifications of our Chief Financial Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of the United States Code (18 U.S.C. 1350) (Certifications under Section 906 of the Sarbanes-Oxley Act of 2002)

15.1		The Korea Electric Power Corporation Act, as amended on December 31, 2022 (in English)

15.2		Enforcement Decree of the Korea Electric Power Corporation Act, as amended on January 5, 2021 (in English)**

15.3		The Act on the Management of Public Institutions, as amended on February 3, 2022 (in English)

15.4		Enforcement Decree of the Act on the Management of Public Institutions, as amended on December 20, 2022 (in English)

101.INS		Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Annual Report on Form 20-F for the year ended December 31, 2022, has been formatted in Inline XBRL

*	Incorporated by reference to the Registrant’s Registration Statement on Form F-6 with respect to the ADSs, registered under Registration No. 333-196703.

**	Incorporated by reference to the Registrant’s annual report on Form 20-F (No. 001-13372) previously filed on April 30, 2021.

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SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.


KOREA ELECTRIC POWER CORPORATION

By:		/s/ Cheong, Seung-Il
Name:		Cheong, Seung-Il
Title:		President and Chief Executive Officer
Date:		April 28, 2023

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INDEX TO FINANCIAL STATEMENTS


	Page
Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements (as of December 31, 2021 and 2022 and for each of the three years in the period ended December 31, 2022)		F-2
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting		F-4
Consolidated Statements of Financial Position as of December 31, 2021 and 2022		F-5
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2020, 2021 and 2022		F-7
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2020, 2021 and 2022		F-9
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020, 2021 and 2022		F-12
Notes to the Consolidated Financial Statements		F-14

F-1

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders and Board of Directors of

Korea Electric Power Corporation

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Korea Electric Power Corporation and subsidiaries (the “Company”) as of December 31, 2021 and 2022, the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated April 28, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.


		Impairment of property, plant and equipment in electricity transmission and distribution business

Description of the Matter		As described in note 18 to the consolidated financial statements, the aggregate carrying value of the Company’s property, plant and equipment (“PP&E”) as of December 31, 2022 is KRW 177,865,308 million, and no impairment charge was recognized during the year ended December 31, 2022. Since the Company was operating at a loss during the year, the Company evaluated its cash-generating unit (“CGU”) in its electricity transmission and distribution business for recoverability by comparing the carrying amount of the CGU with its value-in-use (“VIU”) amount measured using the discounted cash flow model and concluded that the CGU was fully recoverable as of December 31, 2022. Auditing the Company’s impairment assessment involved subjective judgment and required the involvement of specialists because, in preparing the VIU estimate, management uses estimates in the discounted cash flow model that include, among others, assumptions about future sales volumes, unit sales prices, cost of power

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		purchases, and discount rates, that are inherently uncertain. Further, the carrying amount of PP&E to the consolidated financial statements is material and as such these assumptions have a significant effect on the outcome of the impairment assessment.

How We Addressed the Matter in Our Audit		We obtained an understanding, evaluated the design, and tested the operating effectiveness, of controls over the Company’s processes in determining the VIU of the CGU. This included our evaluation of management review controls over significant assumptions (i.e., future sales volumes, unit sales prices, cost of power purchases, and discount rates) used to develop the discounted cash flow forecasts. Our testing of the Company’s impairment calculation included, among other procedures, evaluating the discounted cash flow model used by the Company by involving our valuation specialists to assist in testing the significant assumptions used to develop the cash flow forecasts and testing the completeness and accuracy of the underlying data. We assessed the accuracy of the Company’s historical projections by comparing them with actual operating results, evaluated management’s methodology for determining the discount rate used to calculate the present value of the forecasted cash flows by comparing it against our own calculated rate using both market and entity-specific information, searched for and evaluated information that corroborates or contradicts the Company’s assumptions, and performed sensitivity analyses of significant assumptions to evaluate the changes in the VIU estimate that could result from changes in the assumptions. Furthermore, we considered the Company’s business plan and external market data for major unobservable inputs such as future sales volumes, unit sales prices and cost of power purchases, that were used in estimating the VIU. For example, we compared these significant assumptions to current industry practice, market and economic trends, historical results of the Company’s business and other relevant factors.

/s/ Ernst & Young Han Young

We have served as the Company’s auditor since 2018.

Seoul, the Republic of Korea

April 28, 2023

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON INTERNAL CONTROL OVER FINANCIAL REPORTING

To the Shareholders and Board of Directors of Korea Electric Power Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Korea Electric Power Corporation and subsidiaries (the “Company”)’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2021 and 2022, the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively, the “consolidated financial statements”), and our report dated April 28, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young Han Young

Seoul, the Republic of Korea

April 28, 2023

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2021 and 2022


	Note			2021		2022
				In millions of won
Assets
Current assets
Cash and cash equivalents		5,6,7,45	￦		2,635,238		3,234,780
Current financial assets, net		5,6,9,11,12,13,45,47			1,868,796		4,286,975
Trade and other receivables, net		5,8,20,24,45,46,47			8,122,415		10,461,822
Inventories, net		14			7,608,182		9,930,732
Income tax receivables		41			41,344		46,619
Current non-financial assets		15			1,758,991		1,744,869
Assets held-for-sale		16,42			15,879		44,748

Total current assets					22,050,845		29,750,545

Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,45,47			2,909,810		3,336,835
Non-current trade and other receivables, net		5,8,20,45,46,47			1,906,861		2,153,080
Property, plant and equipment, net		18,24,27,49			173,134,638		177,865,308
Investment properties, net		19,27			212,784		208,286
Goodwill		16			105,647		100,093
Intangible assets other than goodwill, net		21,27,46			1,044,077		956,664
Investments in associates		4,17			5,232,373		5,844,464
Investments in joint ventures		4,17			2,239,011		3,147,584
Defined benefit assets, net		25			20,871		198,626
Deferred tax assets		41			1,901,992		10,934,375
Non-current non-financial assets		15			364,818		309,134

Total non-current assets					189,072,882		205,054,449

Total Assets		2,4	￦		211,123,727		234,804,994

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position, Continued

As of December 31, 2021 and 2022


	Note			2021			2022
				In millions of won
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,45,47	￦		8,153,426			11,983,549
Current financial liabilities, net		5,12,23,45,47			14,037,125			22,703,996
Income tax payables		41			229,460			429,604
Current non-financial liabilities		20,28,29			6,466,333			6,974,377
Current provisions		26,45			2,845,876			2,427,051

Total current liabilities					31,732,220			44,518,577

Non-current liabilities
Non-current trade and other payables, net		5,22,24,45,47			5,996,498			5,638,914
Non-current financial liabilities, net		5,12,23,45,47			66,570,419			98,334,120
Non-current non-financial liabilities		28,29			10,216,364			10,662,661
Employee benefits liabilities, net		25,45			1,679,158			828,721
Deferred tax liabilities		41			7,100,938			6,457,103
Non-current provisions		26,45			22,501,424			26,364,642

Total non-current liabilities					114,064,801			148,286,161

Total Liabilities		4	￦		145,797,021			192,804,738

Equity
Contributed capital		1,30,45
Share capital			￦		3,209,820			3,209,820
Share premium					843,758			843,758

					4,053,578			4,053,578

Retained earnings		2,31
Legal reserves					1,604,910			1,604,910
Voluntary reserves					33,282,817			27,782,969
Unappropriated retained earnings (undisposed deficit)					10,370,517			(7,956,579	)

					45,258,244			21,431,300

Other components of equity		34
Other capital surplus					1,231,109			1,268,569
Accumulated other comprehensive income (loss)					(57,632	)		496,976
Other equity					13,294,973			13,294,973

					14,468,450			15,060,518


Equity attributable to owners of the controlling company					63,780,272			40,545,396
Non-controlling interests		2,16,33			1,546,434			1,454,860

Total Equity		2	￦		65,326,706			42,000,256

Total Liabilities and Equity			￦		211,123,727			234,804,994

See accompanying notes to the consolidated financial statements.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2020, 2021 and 2022


	Note			2020			2021			2022
				In millions of won, except per share information
Sales		2,4,35,45,47
Sales of goods			￦		56,685,109			58,800,977			69,184,469
Sales of construction services		20			812,175			754,998			646,953
Sales of services					429,350			456,400			714,602

					57,926,634			60,012,375			70,546,024

Cost of sales		2,14,25,43,47
Cost of sales of goods					(50,352,898	)		(62,164,425	)		(99,441,768	)
Cost of sales of construction services					(1,009,430	)		(898,963	)		(941,254	)
Cost of sales of services					(441,851	)		(580,902	)		(520,572	)

					(51,804,179	)		(63,644,290	)		(100,903,594	)

Gross profit (loss)					6,122,455			(3,631,915	)		(30,357,570	)
Selling and administrative expenses		25,36,43,47			(2,678,443	)		(2,875,796	)		(3,009,422	)
Other income		28,37			1,036,448			1,034,133			1,095,489
Other expenses		37			(417,720	)		(257,932	)		(212,150	)
Other gains (losses), net		38			35,094			8,519			243,122

Operating profit (loss)		4			4,097,834			(5,722,991	)		(32,240,531	)
Finance income		5,12,39			1,510,249			1,402,614			1,833,312
Finance expenses		5,12,40			(2,896,443	)		(3,245,777	)		(4,746,791	)
Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Gain on valuation of investments in associates and joint ventures					398,972			775,588			1,393,486
Gain on disposal of investments in associates and joint ventures					10,165			1,844			11,091
Loss on valuation of investments in associates and joint ventures					(119,848	)		(218,532	)		(55,193	)
Loss on disposal of investments in associates and joint ventures					(16	)		(64,119	)		(1,675	)
Loss on impairment of investments in associates and joint ventures					(1,556	)		—			(5,174	)
Loss on disposal of investments in subsidiaries					(6,610	)		(197	)		(32,144	)

					281,107			494,584			1,310,391

Profit (loss) before income tax					2,992,747			(7,071,570	)		(33,843,619	)
Income tax benefit (expense)		41			(899,064	)		1,855,989			9,414,511

Profit (loss) for the year			￦		2,093,683			(5,215,581	)		(24,429,108	)

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss), Continued

For the years ended December 31, 2020, 2021 and 2022


	Note			2020			2021			2022
				In millions of won, except per share information
Other comprehensive income (loss), net of tax		5,12,25,31,34
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability		25,31	￦		(69,804	)		210,409			663,095
Share of other comprehensive income of associates and joint ventures		31			3,181			3,609			12,305
Net change in fair value of financial assets at fair value through other comprehensive income (loss)		34			(8,532	)		59,024			58,010
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting		5,12,34			64,561			(15,778	)		(24,415	)
Foreign currency translation of foreign operations		34			(76,442	)		41,189			28,387
Share of other comprehensive income (loss) of associates and joint ventures		34			(132,805	)		301,161			509,487

Other comprehensive income (loss) for the year					(219,841	)		599,614			1,246,869

Total comprehensive income (loss) for the year			￦		1,873,842			(4,615,967	)		(23,182,239	)

Profit (loss) attributable to:
Owners of the controlling company		44	￦		1,992,077			(5,304,522	)		(24,466,853	)
Non-controlling interests					101,606			88,941			37,745

			￦		2,093,683			(5,215,581	)		(24,429,108	)

Total comprehensive income (loss) attributable to:
Owners of the controlling company			￦		1,803,554			(4,743,513	)		(23,273,171	)
Non-controlling interests					70,288			127,546			90,932

			￦		1,873,842			(4,615,967	)		(23,182,239	)

Earnings (loss) per share (in won)		2,44
Basic and diluted earnings (loss) per share			￦		3,102			(8,263	)		(38,112	)

See accompanying notes to the consolidated financial statements.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2020, 2021 and 2022


		Equity attributable to owners of the controlling company											Non- controlling interests
		Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
		In millions of won
Balance as of January 1, 2020	￦		4,053,578		49,202,133			14,240,607			67,496,318			1,393,331			68,889,649
Total comprehensive income (loss) for the year
Profit for the year			—		1,992,077			—			1,992,077			101,606			2,093,683
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—		(62,857	)		—			(62,857	)		(6,948	)		(69,805	)
Share of other comprehensive income of associates and joint ventures, net of tax			—		3,180			—			3,180			—			3,180
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—		—			(8,533	)		(8,533	)		1			(8,532	)
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—		—			58,523			58,523			6,039			64,562
Foreign currency translation of foreign operations, net of tax			—		—			(46,032	)		(46,032	)		(30,410	)		(76,442	)
Share of other comprehensive loss of associates and joint ventures, net of tax			—		—			(132,805	)		(132,805	)		—			(132,805	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—		—			—			—			(81,011	)		(81,011	)
Additional paid-in capital and others			—		—			(148	)		(148	)		(5,297	)		(5,445	)
Transactions between consolidated entities			—		(203	)		(2,111	)		(2,314	)		1,040			(1,274	)
Changes in consolidation scope			—		—			—			—			5,684			5,684
Dividends paid (hybrid bond)			—		—			—			—			(13,385	)		(13,385	)

Balance as of December 31, 2020	￦		4,053,578		51,134,330			14,109,501			69,297,409			1,370,650			70,668,059

(Continued)

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2020, 2021 and 2022


		Equity attributable to owners of the controlling company											Non- controlling interests
		Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
		In millions of won
Balance as of January 1, 2021	￦		4,053,578		51,134,330			14,109,501			69,297,409			1,370,650			70,668,059
Total comprehensive income (loss) for the year
Profit (loss) for the year			—		(5,304,522	)		—			(5,304,522	)		88,941			(5,215,581	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—		201,067			—			201,067			9,342			210,409
Share of other comprehensive income of associates and joint ventures, net of tax			—		3,609			—			3,609			—			3,609
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—		—			59,022			59,022			2			59,024
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—		—			(19,610	)		(19,610	)		3,832			(15,778	)
Foreign currency translation of foreign operations, net of tax			—		—			15,760			15,760			25,429			41,189
Share of other comprehensive loss of associates and joint ventures, net of tax			—		—			301,161			301,161			—			301,161
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—		(780,628	)		—			(780,628	)		(31,516	)		(812,144	)
Additional paid-in capital and others			—		—			(491	)		(491	)		75,702			75,211
Transactions between consolidated entities			—		—			7,452			7,452			(42,199	)		(34,747	)
Changes in consolidation scope			—		—			43			43			59,636			59,679
Dividends paid (hybrid bond)			—		—			—			—			(13,385	)		(13,385	)
Others			—		4,388			(4,388	)		—			—			—

Balance as of December 31, 2021	￦		4,053,578		45,258,244			14,468,450			63,780,272			1,546,434			65,326,706

(Continued)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2020, 2021 and 2022


		Equity attributable to owners of the controlling company											Non- controlling interests			Total equity
		Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
		In millions of won
Balance as of January 1, 2022	￦		4,053,578		45,258,244			14,468,450			63,780,272			1,546,434			65,326,706
Total comprehensive income (loss) for the year
Profit (loss) for the year			—		(24,466,853	)		—			(24,466,853	)		37,745			(24,429,108	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—		626,769			—			626,769			36,326			663,095
Share of other comprehensive income of associates and joint ventures, net of tax			—		12,305			—			12,305			—			12,305
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—		—			58,008			58,008			2			58,010
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—		—			(32,437	)		(32,437	)		8,022			(24,415	)
Foreign currency translation of foreign operations, net of tax			—		—			19,550			19,550			8,837			28,387
Share of other comprehensive loss of associates and joint ventures, net of tax			—		—			509,487			509,487			—			509,487
Transactions with owners of the Company, recognized directly in equity
Dividends paid			—		—			—			—			(42,344	)		(42,344	)
Additional paid-in capital and others			—		835			39,641			40,476			86,316			126,792
Transactions between consolidated entities			—		—			(1,584	)		(1,584	)		(75,791	)		(77,375	)
Changes in consolidation scope			—		—			(597	)		(597	)		32,311			31,714
Dividends paid (hybrid bond)			—		—			—			—			(13,461	)		(13,461	)
Repayment of hybrid bond			—		—			—			—			(169,537	)		(169,537	)

Balance as of December 31, 2022	￦		4,053,578		21,431,300			15,060,518			40,545,396			1,454,860			42,000,256

See accompanying notes to the consolidated financial statements.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2020, 2021 and 2022


		2020			2021			2022
		In millions of won
Cash flows from operating activities
Profit (loss) for the year	￦		2,093,683			(5,215,581	)		(24,429,108	)

Adjustments to reconcile profit (loss) for the year to net cash provided by operating activities:
Income tax expense (benefit)			899,064			(1,855,989	)		(9,414,511	)
Depreciation			11,377,553			11,776,331			12,305,252
Amortization			170,466			166,161			156,160
Employee benefit expense			492,288			512,270			485,700
Bad debt expense			50,686			67,242			29,997
Interest expense			1,995,425			1,914,457			2,818,546
Loss on disposal of financial assets			648			1,045			1,841
Loss on disposal of property, plant and equipment			162,725			92,622			100,066
Loss on abandonment of property, plant and equipment			255,346			207,934			160,909
Loss on impairment of property, plant and equipment			80,413			4,056			(97,425	)
Loss on impairment of intangible assets			3,599			—			164
Loss on disposal of intangible assets			392			145			116
Increase in provisions			1,832,765			2,466,452			2,146,979
Loss (gain) on foreign currency translation, net			(782,167	)		997,119			523,285
Gain on valuation of financial assets at fair value through profit or loss			(12,904	)		(14,338	)		(7,099	)
Loss on valuation of financial assets at fair value through profit or loss			7,396			5,480			44,329
Valuation and transaction loss (gain) on derivative instruments, net			390,322			(907,076	)		(448,903	)
Gain on valuation of investments in associates and joint ventures, net			(279,124	)		(557,056	)		(1,338,293	)
Gain on disposal of financial assets			(11,992	)		(7,718	)		(11,199	)
Reversal of impairment loss on intangible assets			—			(14	)		—
Gain on disposal of property, plant and equipment			(93,195	)		(56,284	)		(148,667	)
Gain on disposal of intangible assets			(1,556	)		(1	)		(41	)
Gain on disposal of investments in associates and joint ventures			(10,165	)		(1,844	)		(11,091	)
Loss on disposal of investments in associates and joint ventures			16			64,119			1,675
Impairment loss on investments in associates and joint ventures			1,556			—			5,174
Loss on disposal of investments in subsidiaries			6,610			197			32,144
Interest income			(242,586	)		(221,874	)		(340,753	)
Dividend income			(7,316	)		(10,522	)		(28,875	)
Others, net			29,198			(169,856	)		215,943

			16,315,463			14,473,058			7,181,423

Changes in working capital:
Trade receivables			(107,639	)		(216,734	)		(1,909,649	)
Non-trade receivables			459,524			869,870			80,444
Accrued income			(258,963	)		(17,918	)		(34,706	)
Other receivables			(32,536	)		24,306			80,236
Other current assets			(462,125	)		(569,732	)		(651,926	)
Inventories			(723,495	)		(1,738,000	)		(3,000,669	)
Other non-current assets			(140,017	)		(3,462	)		58,790
Trade payables			(262,985	)		2,144,561			2,782,474
Non-trade payables			(363,260	)		(571,051	)		61,737
Accrued expenses			(222,113	)		(456,992	)		(191,681	)
Other current liabilities			388,163			379,378			446,064
Other non-current liabilities			755,005			458,007			422,916
Investments in associates and joint ventures (dividends received)			237,695			288,242			473,700
Provisions			(1,499,436	)		(2,426,017	)		(1,564,243	)
Payments of employee benefit obligations			(74,848	)		(159,477	)		(218,319	)
Plan assets			(582,275	)		(317,707	)		(347,778	)

	￦		(2,889,305	)		(2,312,726	)		(3,512,610	)

(Continued)

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows, Continued

For the years ended December 31, 2020, 2021 and 2022


		2020			2021			2022
		In millions of won
Cash generated from operating activities	￦		15,519,841			6,944,751			(20,760,295	)
Dividends received (financial assets at fair value through other comprehensive income)			7,316			10,522			28,875
Interest paid			(2,081,663	)		(1,928,160	)		(2,517,694	)
Interest received			215,183			201,022			220,471
Income taxes paid			(452,203	)		(736,757	)		(448,857	)

Net cash provided by (used in) operating activities			13,208,474			4,491,378			(23,477,500	)

Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			5,444			4,472			56,171
Acquisition of investments in associates and joint ventures			(342,116	)		(673,017	)		(360,962	)
Proceeds from disposals of property, plant and equipment			331,777			277,998			629,924
Acquisition of property, plant and equipment			(13,281,294	)		(12,686,726	)		(12,346,878	)
Proceeds from disposals of intangible assets			10,871			59			279
Acquisition of intangible assets			(120,371	)		(113,100	)		(80,508	)
Disposal of investment properties			—			—			515
Proceeds from disposals of financial assets			8,020,406			7,023,674			14,182,348
Acquisition of financial assets			(9,203,450	)		(5,893,404	)		(16,496,258	)
Increase in loans			(336,744	)		(223,950	)		(401,377	)
Collection of loans			215,292			218,704			102,061
Increase in deposits			(276,255	)		(222,924	)		(237,266	)
Decrease in deposits			280,941			166,066			141,000
Proceeds from disposals of assets held-for-sale			32,578			1,148			24,205
Receipt of government grants			41,209			37,920			50,755
Net cash outflow from changes in consolidation scope			(24,624	)		(63,492	)		(31,350	)
Other cash outflow from investing activities, net			(185,476	)		(225,948	)		(186,412	)

Net cash used in investing activities			(14,831,812	)		(12,372,520	)		(14,953,753	)

Cash flows from financing activities
Proceeds from short-term borrowings, net			345,338			1,621,440			5,852,426
Proceeds from long-term borrowings and debt securities			10,170,107			17,392,311			43,594,078
Repayment of long-term borrowings and debt securities			(7,976,658	)		(9,360,357	)		(10,252,688	)
Payment of lease liabilities			(613,977	)		(572,036	)		(562,646	)
Settlement of derivative instruments, net			42,263			98,068			407,627
Change in non-controlling interests			11,554			90,096			175,645
Repayment of hybrid bond			—			—			(169,537	)
Dividends paid (hybrid bond)			(13,385	)		(13,385	)		(13,461	)
Dividends paid			(81,298	)		(812,159	)		(42,348	)
Other cash outflow from financing activities, net			(3,120	)		(8,901	)		8,803

Net cash provided by financing activities			1,880,824			8,435,077			38,997,899

Net increase in cash and cash equivalents before effect of exchange rate fluctuations			257,486			553,935			566,646
Effect of exchange rate fluctuations on cash held			(38,031	)		51,719			32,896

Net increase in cash and cash equivalents			219,455			605,654			599,542
Cash and cash equivalents at January 1			1,810,129			2,029,584			2,635,238

Cash and cash equivalents at December 31	￦		2,029,584			2,635,238			3,234,780

See accompanying notes to the consolidated financial statements.

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

December 31, 2021 and 2022

1.	Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”) was incorporated on December 31, 1981 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO also provides power plant construction services. KEPCO’s stock was first listed on the Korea Stock Exchange on August 10, 1989 and subsequently on the New York Stock Exchange on October 27, 1994 through its depository receipts. KEPCO’s headquarters is located in

Naju-si,

Jeollanam-do.

As of December 31, 2022, KEPCO’s share capital amounts to ￦3,209,820 million and KEPCO’s shareholders are as follows:


	Number of shares		Percentage of ownership
The Government of the Republic of Korea		116,841,794		18.20	%
Korea Development Bank (KDB)		211,235,264		32.90	%
Foreign investors		88,959,339		13.86	%
Other		224,927,680		35.04	%

		641,964,077		100.00	%

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

2.	Basis of Preparation

The consolidated financial statements of KEPCO and its subsidiaries (the “Company”) were approved by the Board of Directors of KEPCO on February 24, 2023 and authorized on April 21, 2023 for the purpose of Form 20-F filing with the Securities and Exchange Commission.

(1)	Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

(2)	Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statements of financial position:

•

financial assets at fair value through profit or loss

•

financial assets at fair value through other comprehensive income

•

derivative financial instruments are measured at fair value

•

liabilities for defined benefit plans are recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets

(3)	Functional and presentation currency

These consolidated financial statements are presented in Korean won (presented as “won” or “KRW”), which is also the functional currency of KEPCO and most of the significant operating subsidiaries.

(4)	Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Preparation, Continued

(4)	Use of estimates and judgments, continued

The followings are the key assumptions and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i)

Useful lives of property, plant and equipment, and estimations on provision for decommissioning costs

The Company reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Management’s assumptions could affect the determination of estimated economic useful lives.

The Company records the fair value of estimated decommissioning costs as a liability in the period in which the Company incurs a legal obligation associated with the retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. The Company is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.

(ii)

Deferred tax

The Company recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities of each consolidated taxpaying entity. However, the amount of deferred tax assets may be different if the Company determines the estimated future taxable income is not sufficient to realize the deferred tax assets recognized.

(iii)

Valuations of financial instruments at fair values

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and

non-financial

assets and liabilities. The Company has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(iv)

Defined employee benefit liabilities

The Company offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).

(v)

Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of December 31, 2021 and 2022 are ￦2,348,813 million and ￦1,725,444 million, respectively.

F-15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Preparation, Continued

(4)	Use of estimates and judgments, continued

(vi)

Construction contracts

The Company recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Company’s progress towards complete satisfaction of providing the power plant construction, which has been identified as a single performance obligation. In applying the cost-based input method, it is necessary to use estimates and assumptions related to the Company’s efforts or inputs expected to be incurred. Costs incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however, it can also be affected by uncertainties resulting from unexpected future events.

(vii)

The

30-year

designed life of Wolsong unit 1 nuclear power plant of the Company had expired on November 20, 2012. On February 27, 2015, however, approval from the Nuclear Safety and Security Commission (NSSC) was received to continue its operation until November 20, 2022.

According to the 8th Basic Plan for Electricity Supply and Demand announced by the Ministry of Trade, Industry and Energy in 2017, Wolsong unit 1 nuclear power plant was expected to go through a comprehensive evaluation for the feasibility of continuous operation including economic efficiency and acceptability of household and community in 2018 in order to decide whether to shut down early. On June 15, 2018, the board of directors of Korea Hydro & Nuclear Power Co., Ltd. (“KHNP”), a subsidiary of KEPCO, has decided to shut down Wolsong unit 1 on the grounds that its deficit was increasing and its economic efficiency was low due to the nonoptimal utilization rate. On December 24, 2019, NSSC approved permanent shutdown of unit 1.

In addition, the Company has also decided to discontinue the construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2 pursuant to the government policy. Accordingly, the Company recognized impairment loss and other expenses during the year ended December 31, 2018.

Among the new nuclear power plants under construction, Shin-Hanul unit 3 and 4, for which approval for power generation business was previously obtained, are not included in the list of construction suspension as determined by the board of directors of KHNP. However, it is highly likely that the construction of Shin-Hanul unit 3 and 4 will be suspended according to the government’s policy. Accordingly, the Company recognized impairment loss during the year ended December 31, 2018, as the Company believed that there was a significant change in its operating environment.

However, in accordance with the “New Government Energy Policy Direction”, the management of KHNP, a subsidiary of the Company, reported to its board of directors on the resumption, licensing, and major contracts of suspension services related to

Shin-Hanul

Units 3 and 4. The Company has identified signs that the impairment loss on fixed assets mentioned above may no longer exist or may have been reduced. Accordingly, the Company recognized the reversal of impairment losses related to

Shin-Hanul

Units 3 and 4 during the current year.

Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

✓

Note 17 – Investments in Associates and Joint Ventures

✓

Note 18 – Property, Plant and Equipment

✓

Note 20 – Construction Contracts

✓

Note 45 – Risk Management

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes:

✓

Note 25 – Employment Benefits

✓

Note 41 – Income Taxes

F-16

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Preparation, Continued

(5)	Changes in accounting policies

(i)

Property, Plant and Equipment: Proceeds before Intended Use – Amendments to

S 1016

The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The Company applied the amendment retrospectively to items of property, plant and equipment that are capable of operating on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments, and the impacts on the Company’s consolidated financial statements on the date of initial application (January 1, 2021) are as follows:

①

The impacts on the Company’s consolidated statement of financial position as of December 31, 2021 are as follows:


		Original carrying amount		Adjustment		New carrying amount
		In millions of won
Current assets	￦		22,050,845		—		22,050,845
Non-current assets			189,058,025		14,857		189,072,882

Total Assets			211,108,870		14,857		211,123,727

Current liabilities			31,732,220		—		31,732,220
Non-current liabilities			114,064,801		—		114,064,801

Total Liabilities			145,797,021		—		145,797,021

Contributed capital			4,053,578		—		4,053,578
Retained earnings			45,246,982		11,262		45,258,244
Other components of equity			14,468,450		—		14,468,450
Non-controlling interests			1,542,839		3,595		1,546,434

Total Equity			65,311,849		14,857		65,326,706

Total Liabilities and Equity	￦		211,108,870		14,857		211,123,727

F-17

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Preparation, Continued

(5)	Changes in accounting policies, continued

②

The impacts on the Company’s consolidated statement of comprehensive income

(loss) for the year ended December 31, 2021 are as follows:


		Original carrying amount			Adjustment			New carrying amount
		In millions of won except per share information
Sales	￦		60,574,819			98,768			60,673,587
Cost of sales			(63,559,178	)		(85,112	)		(63,644,290	)

Gross loss			(2,984,359	)		13,656			(2,970,703	)

Selling and administrative expenses			(2,875,784	)		(12	)		(2,875,796	)

Operating loss			(5,860,143	)		13,644			(5,846,499	)

Other non-operating income			372,921			—			372,921
Other non-operating expense			(257,932	)		—			(257,932	)
Other gains, net			8,519			—			8,519
Finance income			1,402,614			—			1,402,614
Finance expenses			(3,245,777	)		—			(3,245,777	)
Profit related to associates, joint ventures and subsidiaries			494,584			—			494,584

Loss before income tax			(7,085,214	)		13,644			(7,071,570	)

Income tax benefit			1,855,989			—			1,855,989

Net Loss for the period			(5,229,225	)		13,644			(5,215,581	)

Loss attributable to owners of the controlling company			(5,315,055	)		10,533			(5,304,522	)
Profit attributable to non-controlling interests			85,830			3,111			88,941
Other comprehensive income (loss)			599,614			—			599,614

Total comprehensive income (loss) for the period			(4,629,611	)		13,644			(4,615,967	)

Total comprehensive loss attributable to owners of the controlling company			(4,754,046	)		10,533			(4,743,513	)
Total comprehensive income (attributable to non-controlling interests			124,435			3,111			127,546

Loss per share (in won)	￦		(8,279	)		16			(8,263	)

③

The impacts on the Company’s consolidated statement of cash flows for the year ended December 31, 2021 are as follows:


		Original carrying amount			Adjustment			New carrying amount
		In millions of won
Cash flows from operating activities	￦		4,473,186			18,192			4,491,378
Cash flows from investing activities			(12,354,328	)		(18,192	)		(12,372,520	)
Cash flows from financing activities			8,435,077			—			8,435,077

F-18

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Preparation, Continued

(5)	Changes in accounting policies, continued

①

The impacts on the Company’s consolidated statement of financial position as of January 1, 2021 are as follows:


		Original carrying amount		Adjustment		New carrying amount
		In millions of won
Current assets	￦		20,561,941		—		20,561,941
Non-current assets			182,580,170		1,214		182,581,384

Total Assets			203,142,111		1,214		203,143,325

Current liabilities			25,881,222		—		25,881,222
Non-current liabilities			106,594,043		—		106,594,043

Total Liabilities			132,475,265		—		132,475,265

Contributed capital			4,053,578		—		4,053,578
Retained earnings			51,133,601		730		51,134,331
Other components of equity			14,109,501		—		14,109,501
Non-controlling interests			1,370,166		484		1,370,650

Total Equity			70,666,846		1,214		70,668,060

Total Liabilities and Equity	￦		203,142,111		1,214		203,143,325

②

The impacts on the Company’s consolidated statement of comprehensive income (loss) for the year ended December 31, 2020 are as follows:


		Original carrying amount			Adjustment		New carrying amount
		In millions of won except per share information
Sales	￦		57,925,837			797		57,926,634
Cost of sales			(51,804,596	)		417		(51,804,179	)

Gross loss			6,121,241			1,214		6,122,455

Selling and administrative expenses			(2,678,443	)		—		(2,678,443	)

Operating loss			3,442,798			1,214		3,444,012

Other non-operating income			1,036,448			—		1,036,448
Other non-operating expense			(417,720	)		—		(417,720	)
Other gains, net			35,094			—		35,094
Finance income			1,510,249			—		1,510,249
Finance expenses			(2,896,443	)		—		(2,896,443	)
Profit related to associates, joint ventures and subsidiaries			281,107			—		281,107

Loss before income tax			2,991,533			1,214		2,992,747

Income tax benefit			(899,064	)		—		(899,064	)

Net Loss for the period			2,092,469			1,214		2,093,683

Loss attributable to owners of the controlling company			1,991,347			730		1,992,077
Profit attributable to non-controlling interests			101,122			484		101,606
Other comprehensive income (loss)			(219,841	)		—		(219,841	)

Total comprehensive income (loss) for the period			1,872,628			1,214		1,873,842

Total comprehensive loss attributable to owners of the controlling company			1,802,824			730		1,803,554
Total comprehensive income (attributable to non-controlling interests			69,804			484		70,288

Loss per share (in won)	￦		3,102			—		3,102

F-19

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

2.	Basis of Pre p aration, Continued

(5)	Changes in accounting policies, continued

③

The impacts on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows:


		Original carrying amount			Adjustment			New carrying amount
		In millions of won
Cash flows from operating activities	￦		13,208,473			1			13,208,474
Cash flows from investing activities			(14,831,811	)		(1	)		(14,831,812	)
Cash flows from financing activities			1,880,824			—			1,880,824

(ii)

Other changes in accounting standards effective from January 1, 2022 are as follows. The Company believes that these amendments have no significant impact on the Company’s consolidated financial statements. The Company has not applied the new and revised standards in issue but not yet effective for the periods starting from January 1, 2022, even though the early adoption of these standards is possible.

Onerous Contracts—Costs of Fulfilling a Contract—Amendments to IAS 37

Onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The amendment specifies that the costs of fulfilling a contract comprise incremental costs, such as the costs of materials or labor, and an allocation of other costs directly related to the contract, such as an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract, when assessing whether a contract is an onerous contract. The Company will apply the amendment to the contracts for which all obligations have not been fulfilled at the date of initial application.

Reference to the Conceptual Framework—Amendments to IFRS 3

The amendments are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements. An exception has been added to the recognition principle in IFRS 3 to avoid ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21 Levies. It requires an entity to apply criteria in IAS 37 and IFRIC 21 respectively to determine whether a present obligation exists at the acquisition date. The amendment added a new paragraph to IFRS 3 to clarify that the contingent assets should not be recognized at the date of acquisition.

IFRS 1 First-time Adoption of International Financial Reporting Standards—Subsidiary as a first-time adopter

The amendment permits a subsidiary that elects to apply paragraph D16(a) of IFRS 1 to measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRS. This amendment is also applied to an associate or joint venture that elects to apply paragraph D16(a) of IFRS 1.

IFRS 9 Financial Instruments—Fees in the ‘10 per cent’ test for derecognition of financial liabilities

The amendment clarifies the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf. There is no restricted and similar amendment to IAS 39.

IAS 41 Agriculture—Taxation in fair value measurements

The amendments remove the requirement in paragraph 22 of IAS 41 that entities exclude cash flows for taxation when measuring the fair value of assets within the scope of IAS 41.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies

The accounting policies applied by the Company in these consolidated financial statements are the same as those applied by the Company in its consolidated financial statements as of and for the year ended December 31, 2021, except for the changes described in Note 2.(5).

(1)	Basis of consolidation

The consolidated financial statements are the financial statements of the Company in which the assets, liabilities, equity, income, expenses and cash flows of KEPCO and its subsidiaries are presented as those of a single economic entity. Subsidiaries are those entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income (loss) from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the

non-controlling

interests even if this results in the

non-controlling

interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those of the Company.

All intra-company assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities within the Company are eliminated in full on consolidation.

Changes in the Company’s ownership interests in a subsidiary that do not result in the Company losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Company’s interests and the

non-controlling

interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the

non-controlling

interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

When the Company loses control of a subsidiary, the income or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any

non-controlling

interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Company had directly disposed of the relevant assets (i.e., reclassified to profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under IFRS 9 ‘Financial Instruments’ or, when applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.

(2)	Business combinations

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at the acquisition date, except that:

•

deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS 12 ‘Income Taxes’ and IAS 19 ‘Employee Benefits’ respectively;

•

assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5

‘Non-current

Assets Held for Sale’ are measured in accordance with that standard.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(2)	Business combinations, continued

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any

non-controlling

interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any

non-controlling

interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.

Non-controlling

interest that is present on acquisition day and entitles the holder to a proportionate share of the entity’s net assets in an event of liquidation, may be initially measured either at fair value or at the

non-controlling

interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement can be elected on a

transaction-by-transaction

basis. Other types of

non-controlling

interests are measured at fair value or, when applicable, on the basis specified in other IFRSs.

When the consideration transferred by the Company in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not

re-measured

at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is

re-measured

at subsequent reporting dates in accordance with IFRS 9 ‘Financial Instruments’, or with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ as appropriate, with the corresponding gain or loss being recognized in profit or loss.

When a business combination is achieved in stages, the Company’s previously held equity interest in the acquiree is

re-measured

to fair value at the acquisition date (i.e., the date when the Company obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

The assets and liabilities acquired under business combinations under common control are recognized at the carrying amounts recognized previously in the consolidated financial statements of the ultimate parent. The difference between consideration transferred and carrying amounts of net assets acquired is recognized as part of share premium.

(3)	Investments in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not control or joint control over those policies. If the Company holds 20% ~ 50% of the voting power of the investee, it is presumed that the Company has significant influence over the investee.

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. If the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5

‘Non-current

Assets Held for Sale’, any retained portion of an investment in associates that has not been classified as held for sale shall be accounted for using the equity method until disposal of the portion that is classified as held for sale takes place. After the disposal

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(3)	Investments in associates, continued

takes place, the Company shall account for any retained interest in associates in accordance with IFRS 9 ‘Financial Instruments’ unless the retained interest continues to be an associate, in which case the entity uses the equity method.

Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. When the Company’s share of losses of an associate exceeds the Company’s interest in that associate (which includes any long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

Upon disposal of an associate that results in the Company losing significant influence over that associate, any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with IFRS 9. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate.

In addition, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when it loses significant influence over that associate.

The requirements of IAS 28’ Investments in Associates and Joint Ventures’ are applied to determine whether it is necessary to recognize any impairment loss with respect to the Company’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 ‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount, any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.

When the Company transacts with its associate, incomes and losses resulting from the transactions with the associate are recognized in the Company’s consolidated financial statements only to the extent of interests in the associate that are not related to the Company.

(4)	Joint arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified into two types - joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint ventures) have rights to the net assets of the arrangement.

The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. The Company determines the type of joint arrangement in which it is involved by considering the structure and form of the arrangement, the terms agreed by the parties in the contractual arrangement and other facts and circumstances.

If the joint arrangement is a joint operation, the Company is to recognize and measure the assets and liabilities (and recognize the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant IFRSs applicable to the particular assets, liabilities, revenues and expenses. If the joint arrangement is a joint venture, the Company is to account for that investment using the equity method accounting in accordance with IAS 28 ‘Investment in Associates and Joint Ventures’ (refer to Note 3.(3)), except when the Company is applicable to the IFRS 5

‘Non-current

Assets Held

for Sale’.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(5)	Non-current assets held for sale

Non-current

assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the

non-current

asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

When the Company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Company will retain a

non-controlling

interest in its former subsidiary after the sale.

Non-current

assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

(6)

Goodwill

The Company measures goodwill which acquired in a business combination at the amount recognized at the date on which it obtains control of the acquiree (acquisition date) less any accumulated impairment losses. Goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) that is expected to benefit from the synergies arising from the business acquired.

The Company assesses at the end of each reporting period and whenever there is an indication that the asset may be impaired. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

On disposal of the relevant CGU, the amount of goodwill is included in the determination of the gain or loss on disposal.

(7)	Revenue from Contracts with Customers

The Company recognizes revenue by applying the five-step approach (Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when the entity satisfied a performance obligation). The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, excluding amounts collected on behalf of third parties. Also, the Company recognizes revenue when the Company satisfies a performance obligation by transferring a promised good or service to a customer.

(i)

Sale of goods

The Company sells electricity to customers and accounts for the generation, transmission and distribution of electricity together as a single performance obligation. The sale of electricity is recognized at a point in time when electricity has been distributed to the customer. The transaction price includes variable consideration due to the progressive electricity billing system, discounts on electricity bills for government policy purposes and penalties. In situations where electricity had been delivered but not yet billed, the Company also estimates the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, etc. Variable consideration is estimated by using the expected value method which predicts the amount of consideration to which the Company will be entitled and is recognized only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved which is when the customer is billed.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(7)	Revenue from Contracts with Customers, continued

(ii)

Sale of construction services

The Company provides power plant construction and EPC services which are each identified as a single performance obligation and is recognized over time on the estimated progress to completion using the cost-based input method. The Company believes using the cost-based input method represents a faithful depiction of the transfer of services to the customer. Cost incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however it can also be affected by uncertainties resulting from unexpected future events.

Revenue may be recognized in advance of billing the customer which results in the recording of a contract asset. Once the Company meets the billing criteria and its rights to consideration become unconditional, the contract asset is then transferred to trade receivable. Billing requirements are generally structured around the completion of certain construction milestones. On some instances, contract liability is recognized when the Company receives consideration before being able to recognize revenue. Once revenue recognition conditions are met, the contract liability is subsequently released to revenue.

(iii)

Sale of services

The Company develops electric power resources including the provision of power generation byproducts and O&M services which are accounted for as a separate performance obligation under each contract. The Company recognizes revenue over time when customers consume the benefits provided by the Company under the terms of the service agreement.

(iv)

Adoption of the cost pass-through tariff system

The Company amended the basic supply terms and conditions with the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020. The cost pass-through tariff system has been applied to the electricity rate after January 1, 2021 in accordance with the amendment. The Company expects the adoption of the new system would not affect the existing accounting policies including ‘revenue from contracts with customers’.

(8)	Deferred Revenue

The Company receives consideration in the form of an item of property, equipment or cash for constructing or acquiring an item of property or equipment in exchange for supplying electricity to its customers. The transaction price is based on the fair value of the consideration received and is initially recorded in deferred revenue included in current and

non-current

non-financial

liabilities of the Company’s consolidated statement of financial position. The Company determines the supply of electricity to be a single performance obligation. Deferred revenue is released to other income over time on a straight-line basis throughout the estimated service period which does not exceed the transferred asset’s useful life.

(9)

Leases

The lessee and the lessor account for each lease component separately from

non-lease

component, in the lease contracts or contracts that contain lease. However, the Company applied a practical expedient to each type of underlying asset in accounting as a lessee, and instead of separating the

non-lease

component from the lease component, it applied a method of accounting for each lease component and the related

non-lease

component as a single lease contract. The lessor’s accounting has not changed significantly. Therefore, a lease that transfers most of the risks and rewards of ownership of the underlying asset is classified as a finance lease, and a lease that does not transfer most of the risks and rewards of ownership of the underlying asset is classified as an operating lease.

(i)

The Company as a lessor

In the case of finance leases, the Company recognizes the same amount of the net investment in the lease as finance lease receivables and recognizes interest income using the effective interest rate method. Income from operating leases is recognized using the straight-line basis over the lease term, and lease opening direct costs incurred during the negotiation and contract phase of the operating lease contract are added to the carrying amount of the lease asset and recognized as expenses over the lease term on a straight-line basis.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(9)	Leases, continued

(ii)

The Company as a lessee

(a)

Right-of-use

assets

The Company recognizes

right-of-use

assets at the commencement date of the lease.

Right-of-use

assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any

re-measurement

of lease liabilities. The cost of

right-of-use

assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized

right-of-use

assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.

Right-of-use

assets are subject to impairment.

(b)

Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including

in-substance

fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the

in-substance

fixed lease payments or a change in the assessment of an option to purchase the underlying asset.

(c)

Short-term leases and leases of

low-value

assets

The Company applies the short-term leases recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the leases of

low-value

assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of

low-value

assets are recognized as expense on a straight-line basis over the lease term.

Book value and changes in book value of

right-of-use

assets and lease liabilities during the period are described in Note 24.

(10)	Foreign currencies

Transactions in foreign currencies are translated to the respective functional currencies of the Company entities at exchange rates at the dates of the transactions. Monetary items in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate.

Non-monetary

items that are measured at fair value in foreign currencies are retranslated to the functional currency at the exchange rate at the date that the fair value was determined, while non-monetary items that are measured in terms of historical cost in foreign currencies shall not be retranslated.

Exchange differences are recognized in profit or loss in the period in which they arise except for:

•

Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;

•

Exchange differences on transactions entered into in order to hedge certain foreign currency risks (refer to note 3.(24)

•

Derivative financial instruments, including hedge accounting); and

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(10)	Foreign currencies, continued

•

Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment.

For the purpose of presenting financial statements, the assets and liabilities of the Company’s foreign operations are expressed in Korean won using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (if applicable, in

non-controlling

interests).

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the controlling interests shall be reclassified from equity to profit or loss (as a reclassification adjustment). The cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the

non-controlling

interests shall be derecognized, but shall not be reclassified to profit or loss.

On the partial disposal of a subsidiary that includes a foreign operation, the entity shall

re-attribute

the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the

non-controlling

interests in that foreign operation. In any other partial disposal of a foreign operation the entity shall reclassify to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation shall be treated as assets and liabilities of the foreign operation. Thus they shall be expressed in the functional currency of the foreign operation and shall be translated at the closing rate. Such exchange differences shall be recognized in equity.

(11)	Borrowing costs

The Company capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(12)	Government grants

Government grants are not recognized unless there is reasonable assurance that the Company will comply with the grant’s conditions and that the grant will be received.

Benefit from a government loan at a below-market interest rate is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

(i)

If the Company received grants related to assets, government grants whose primary condition is that the Company purchases, constructs or otherwise acquires long-term assets are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.

(ii)

If the Company received grants related to expenses, government grants which are intended to compensate the Company for expenses incurred are recognized as other income (government grants) in profit or loss over the periods in which the Company recognizes the related costs as expenses.

(13)	Employee benefits

When an employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense).

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(13)	Employee benefits, continued

For defined benefit pension plans and other post-employment benefits, the net periodic pension expense is actuarially determined by “Pension Actuarial System” developed by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. However, if there is not a deep market, market yields on government bonds are used.

Net defined benefit liability’s measurement is composed of actuarial gains and losses, return on plan assets excluding net interest on net defined benefit liability, and any change in the effect of the asset ceiling, excluding net interest, which are immediately recognized in other comprehensive income. The actuarial gains or losses recognized in other comprehensive income which will not be reclassified into net profit or loss for later periods are immediately recognized in retained earnings. Past service cost will be recognized as expenses upon the earlier of the date of change or reduction to the plan, or the date of recognizing termination benefits.

The retirement benefit obligation recognized in the consolidated statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses and unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

(14)	Income taxes

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

(i)

Current tax

Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and

non-taxable

non-deductible

items from the accounting profit.

Current tax assets and liabilities are offset only if, the Company (a) has a legally enforceable right to set off the recognized amounts; and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

(ii)

Deferred tax

Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.

In certain circumstances such as when accounting for leases or decommissioning costs of nuclear power plants, the carrying amount of the asset recorded is equal to the liability recognized at initial recognition. When recording its deferred tax balances, the Company considers these assets and liabilities separately on a gross basis. Accordingly, the taxable temporary difference relating to the asset and the deductible temporary difference relating to the liability are separately recognized and presented on a net basis in the consolidated financial statements.

The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets or deferred tax liabilities on investment properties measured at fair value, unless any contrary evidence exists, are measured using the assumption that the carrying amount of the property will be recovered entirely through sale.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(14)	Income taxes, continued

The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Company recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries and associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.

(iii)

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

(15)	Property, plant and equipment

Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are recognized in the carrying amount of property, plant and equipment at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the

day-to-day

servicing are recognized in profit or loss as incurred.

Property, plant and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. For loaded nuclear fuel related to long-term raw materials and spent nuclear fuels related to asset retirement costs, the Company uses the

unit-of-production

method to measure and recognize depreciation expenses.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(15)	Property, plant and equipment, continued

The estimated useful lives of the Company’s property, plant and equipment are as follows:


		Useful lives (years)
Buildings		8 ~ 40
Structures		5 ~ 50
Machinery		2 ~ 32
Vehicles		3 ~ 8
Loaded heavy water		30
Asset retirement costs		18, 30, 40, 60
Right-of-use assets		1 ~ 65
Ships		9
Others		4 ~ 15

A component that is significant compared to the total cost of property, plant and equipment is depreciated over its separate useful life.

Depreciation methods, residual values and useful lives of property, plant and equipment are reviewed at the end of each reporting period and if change is deemed appropriate, it is treated as a change in accounting estimate.

Property, plant and equipment are derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an item of property, plant and equipment, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

(16)	Investment property

A property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the

day-to-day

servicing are recognized in profit or loss as incurred.

Investment properties except for land, are depreciated on a straight-line basis over 8 ~ 40 years as estimated useful lives.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.

(17)	Intangible assets

(i)

Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(17)	Intangible assets, continued

(ii)

Research and development

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:

•

The technical feasibility of completing the intangible asset so that it will be available for use or sale;

•

The intention to complete the intangible asset and use or sell it;

•

The ability to use or sell the intangible asset;

•

How the intangible asset will generate probable future economic benefits;

•

The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

•

The ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. When the development expenditure does not meet the criteria listed above, an internally-generated intangible asset cannot be recognized and the expenditure is recognized in profit or loss in the period in which it is incurred.

Internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.

The estimated useful lives and amortization methods of the Company’s intangible assets are as follows:


	Useful lives (years)	Amortization methods
Usage rights for donated assets	10 ~ 30	Straight line
Software	4, 5	Straight line
Industrial rights	5 ~ 10	Straight line
Development expenditures	5	Straight line
Leasehold rights	8 ~ 10	Straight line
Others	3 ~ 50 or indefinite	Straight line
Mining rights	—	Unit of production

(iii)

Intangible assets acquired in a business combination

Intangible assets that are acquired in a business combination are recognized separately from goodwill are initially recognized at their fair value at the acquisition date.

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

(iv)

Derecognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized.

(18)	Greenhouse gas emissions rights (allowances) and obligations

In accordance with the Act on the Allocation and Trading of Greenhouse Gas Emission Rights and its Enforcement Decree, the Company applies the following accounting policies for greenhouse gas emissions rights and obligations.

(i)

Greenhouse gas emissions rights

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(18)	Greenhouse gas emissions rights (allowances) and obligations, continued

Greenhouse gas emissions rights consist of the allowances received free of charge from the government and the ones purchased. The cost of the greenhouse gas emissions rights includes expenditures arising directly from the acquisition and any other costs incurred during normal course of the acquisition.

Greenhouse gas emissions rights are held by the Company to fulfill the legal obligation and recorded as intangible assets. To the extent that the portion to be submitted to the government within one year from the end of reporting period, the greenhouse gas emissions rights are classified as current assets. Greenhouse gas emissions rights recorded as intangible assets are initially measured at cost and substantially remeasured at cost less accumulated impairment losses.

Greenhouse gas emissions rights are derecognized on submission to the government or when no future economic benefits are expected from its use or disposal.

(ii)

Greenhouse gas emissions obligations

Greenhouse gas emissions obligations are the Company’s present legal obligation to submit the greenhouse gas emissions allowances to the government and recognized when an outflow of resources is probable and a reliable estimate can be made of the amount of the obligation. Greenhouse gas emissions obligations are measured as the sum of the carrying amount of the allocated rights that will be submitted to the government and the best estimate of expenditure required to settle the obligation at the end of the reporting period for any excess emission.

(19)	Impairment of non-financial assets other than goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets with definite useful lives to determine whether there is any indication that those assets may have been impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a

pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, to the extent the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

(20)	Inventories

Inventories are measured at the lower of cost and net realizable value. Cost of inventories for inventories in transit are measured by using specific identification method. Cost of inventories, except for those in transit, are measured under the weighted average method and consists of the purchase price, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(20)	Invento r ies, continued

expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, are recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs.

(21)	Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

(i)

Provision for employment benefits

The Company determines the provision for employment benefits as the incentive payments based on the results of the individual performance evaluation or management assessment.

(ii)

Provision for decommissioning costs of nuclear power plants

The Company records the fair value of estimated decommissioning costs as a liability in the period in which the Company incurs a legal obligation associated with retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. Accretion expense consists of

period-to-period

changes in the liability for decommissioning costs resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows.

(iii)

Provision for disposal of spent nuclear fuel

Under the Radioactive Waste Management Act, the Company is levied to pay the spent nuclear fuel fund for the management of spent nuclear fuel. The Company recognizes the provision of present value of the payments.

(iv)

Provision for low and intermediate radioactive wastes

Under the Radioactive Waste Management Act, the Company recognizes the provision for the disposal of low and intermediate radioactive wastes in best estimate of the expenditure required to settle the present obligation.

(v)

Provision for Polychlorinated Biphenyls (“PCBs”)

Under the Persistent Organic Pollutants Control Act, enacted in 2007, the Company is required to remove PCBs, a toxin, from the insulating oil of its transformers by 2025. As a result of the enactments, the Company is required to inspect the PCBs contents of transformers and dispose of PCBs in excess of safety standards under the legally settled procedures. The Company’s estimates and assumptions used to determine fair value can be affected by many factors, such as the estimated costs of inspection and disposal, inflation rate, discount rate, regulations and the general economy.

(vi)

Provisions for the power plant region support programs

The power plant region support programs consist of scholarship programs to local students, local economy support programs, local culture support programs, environment development programs, and local welfare programs. The Company recognizes the provision in relation to the power plant region support programs.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(21)	Provisions, continued

(vii)

Provisions for the transmission and transformation facilities-neighboring areas support

The Company has present obligation to conduct certain programs to support neighboring areas of our transmission and transformation facilities under the Act on Assistance to Electric Power Plants-Neighboring Areas. The Company recognizes the provision of estimated amount to fulfill the obligation.

(viii)

Renewable Portfolio Standard (“RPS”) provisions

RPS program is required to generate a specified percentage of total electricity to be generated in the form of renewable energy and provisions are recognized for the governmental regulations to require the production of energies from renewable energy sources

such

as solar, wind and biomass.

(22)	Financial instruments

The Company recognizes financial assets and financial liabilities in the consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Upon initial recognition, financial assets and financial liabilities are measured at their fair value plus, in the case of a financial asset or financial liabilities not at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition or issuance.

(i)

Classification and measurement of financial assets

The Company classifies financial assets into three principal categories; measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL) based on the business model in which assets are managed and their cash flow characteristics. The Company assesses the hybrid financial instrument in which derivatives embedded as a whole for classification.


	Cash flow characteristics
Business model	Solely payments of principal and interest (SPPI)	Other than SPPI
To collect contractual cash flows	Amortized cost	FVTPL (*2)
Both collecting contractual cash flows and selling financial assets	FVOCI (*1)
To sell financial assets	FVTPL

(*1)

To eliminate or reduce an accounting mismatch, the Company may elect to recognize the amount of change in fair value in profit or loss.

(*2)

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI.

① A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and 2) its contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

② A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) its contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.

③ All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition of equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI, and will not reclassify (recycle) those items in OCI to profit or loss subsequently.

(ii)

Classification and measurement of financial liabilities

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(22)	Financial instruments, continued

Financial liabilities are classified as FVTPL or other financial liabilities.

① A financial liability is classified as at FVTPL if it is classified as

held-for-trading,

it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

② A

non-derivative

financial liability that is not classified as at FVTPL is classified as other financial liabilities. Other financial liabilities are measured initially at its fair value minus transaction costs that are directly attributable to the acquisition or issue. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method.

(iii)

Impairment: Financial assets and contract assets

The Company applies a forward-looking ‘expected credit loss’ (ECL) model for debt instruments, lease receivables, contractual assets, loan commitments and financial guarantee contracts.

The Company recognizes loss allowances measured on either of the

12-month

or lifetime ECL based on the extent of increase in credit risk since inception as shown in the below table.


Classification		Loss allowances
Stage 1	Credit risk has not increased significantly since the initial recognition	12-month ECL:	ECLs that resulted from possible default events within the 12 months after the reporting date

Stage 2	Credit risk has increased significantly since the initial recognition	Lifetime ECL:	ECL that resulted from all possible default events over the expected life of a financial instrument

Stage 3	Credit-impaired

Under IFRS 9, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables or contract assets that result from transactions that are within the scope of IFRS 15 and that do not contain a significant financing component in accordance with IFRS 15, and if the trade receivables or contract assets include a significant financing component, the Company may choose as its accounting policy to measure the loss allowance at an amount equal to lifetime expected credit losses.

The Company has chosen to measure the loss allowance at an amount equal to lifetime expected credit losses for the trade receivables, contract assets and lease receivables that contain a significant financing component.

(iv)

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company enters into transactions whereby it transfers assets recognized in its consolidated statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any

non-cash

assets transferred or liabilities assumed) is recognized in profit or loss.

(23)	Service concession arrangements

The Company recognizes revenues from construction services and operating services related to service concession arrangements in accordance with IFRS 15 ‘Revenue from Contracts with Customers’.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounti ng Policies, Continued

(23)	Service concession arrangements, continued

The Company recognizes a financial asset to the extent that it has an unconditional contractual right to receive cash or another financial asset for the construction services and an intangible asset to the extent that it receives a right (license) to charge users of the public service. Borrowing costs attributable to the arrangement are recognized as an expense in the period in which they are incurred unless the Company has a contractual right to receive an intangible asset (a right to charge users of the public service). In this case, borrowing costs attributable to the arrangement are capitalized during the construction phase of the arrangement.

(24)	Derivative financial instruments, including hedge accounting

The Company enters into a variety of derivative arrangements to manage its exposure to interest rate and foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and cross currency swaps and others.

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in such case the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognized as a financial asset; a derivative with a negative fair value is recognized as a financial liability. A derivative is presented as a

non-current

asset or a

non-current

liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities.

(i)

Separable embedded derivatives

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and when the host contracts are not measured at FVTPL.

An embedded derivative is presented as a

non-current

asset or a

non-current

liability if the remaining maturity of the hybrid instrument to which the embedded derivative is part of, is more than 12 months and it is not expected to be realized or settled within 12 months. All other embedded derivatives are presented as current assets or current liabilities.

(ii)

Hedge accounting

The Company designates certain hedging instruments, which include derivatives, embedded derivatives and

non-derivatives

in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

(iii)

Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The changes in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk relating to the hedged items are recognized in the consolidated statements of comprehensive income (loss).

Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized and recognized as profit or loss from that date.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

3.	Significant Accounting Policies, Continued

(24)	Derivative financial instruments, including hedge accounting, continued

(iv)

Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, and is included in the ‘finance income and expense’.

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated statement of comprehensive income (loss) as the recognized hedged item. However, when the forecast transaction that is hedged results in the recognition of a

non-financial

asset or a

non-financial

liability, the gains or losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the

non-financial

asset or

non-financial

liability.

Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or it no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

(25)	Assets held-for-s a le

The Company classifies

non-current

assets or disposal groups as held for sale if their carrying amounts will be recovered principally through a sale or distribution rather than through continuing use. The criteria for

assets-held-for-sale

classification is regarded as met only when the disposal is highly probable, and the asset or disposal group is available for immediate distribution in its present condition. Management must be committed to the distribution expected within one year from the date of the classification.

Such

non-current

assets and disposal groups classified as held for sale or as held for distribution are measured at the lower of their carrying amount and fair value less costs to sell or to distribute.

4.	Segment, Geographic and Other Information

(1)	Segment determination and explanation of the measurements

The Company’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by chief operating decision makers of the Company including but not limited to the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Company’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation

(Non-nuclear)’,

‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Company’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under IFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an

arm’s-length

basis at market prices that would be applicable to an independent third party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

4.	Segment, Geographic and Other Information, Continued

(2)	Financial information of the segments for the years ended December 31, 2020, 2021 and 2022, respectively, are as follows:



		2020
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net				Operating profit (loss)
		In millions of won
Transmission and distribution	￦		57,345,933			1,224,602			56,121,331		3,836,355			48,220			737,973			169,176			190,302			236,727		731,194				3,045,912
Electric power generation (Nuclear)			9,938,941			9,817,147			121,794		3,564,120			25,581			503,485			(4,905	)		86,672			—		691,052				1,168,833
Electric power generation (Non-nuclear)			20,329,611			19,552,376			777,235		4,034,024			20,843			622,346			115,096			112,775			17,679		346,195				(172,884	)
Plant maintenance & engineering service			2,703,472			2,283,333			420,139		119,056			11,789			1,250			1,740			101,255			—		230,264				197,553
Others			1,582,798			1,096,663			486,135		122,092			167,005			162,843			—			50,889			940		3,711				149,607
Consolidation adjustments			(33,974,121	)		(33,974,121	)		—		(127,628	)		(30,852	)		(32,472	)		—			(49,605	)		—		(169,651	)			(291,187	)

	￦		57,926,634			—			57,926,634		11,548,019			242,586			1,995,425			281,107			492,288			255,346		1,832,765				4,097,834

Finance income																																1,510,249

Finance expense																																(2,896,443	)

Gain related to associates, joint ventures and subsidiaries																																281,107

Loss before income tax																														￦		2,992,747

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

4.	Segment, Geographic and Other Information, Continued

(2)	Financial information of the segments for the years ended December 31, 2020, 2021 and 2022, respectively, are as follows, continued:

		2021
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net			Operating profit (loss)
		In millions of won
Transmission and distribution	￦		58,999,388			1,672,776			57,326,612		3,990,464			36,831			678,986			391,116			193,412			202,262		1,194,643			(7,244,319	)
Electric power generation (Nuclear)			9,324,391			9,207,516			116,875		3,611,594			22,209			477,512			(18,146	)		86,730			—		680,358			762,164
Electric power generation (Non-nuclear)			25,928,596			24,518,167			1,410,429		4,182,470			22,226			624,391			109,765			121,020			5,672		285,152			370,440
Plant maintenance & engineering service			2,805,785			2,370,900			434,885		121,493			9,515			933			11,849			94,269			—		213,500			245,360
Others			2,018,997			1,295,423			723,574		159,222			158,680			162,345			—			52,698			—		2,981			208,139
Consolidation adjustments			(39,064,782	)		(39,064,782	)		—		(122,751	)		(27,587	)		(29,710	)		—			(36,187	)		—		89,818			(64,775	)

	￦		60,012,375			—			60,012,375		11,942,492			221,874			1,914,457			494,584			511,942			207,934		2,466,452			(5,722,991	)

Finance income																															1,402,614

Finance expense																															(3,245,777	)

Gain related to associates, joint ventures and subsidiaries																															494,584

Profit before income tax																													￦		(7,071,570	)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

4.	Segment, Geographic and Other Information, Continued

(2)	Financial information of the segments for the years ended December 31, 2020, 2021 and 2022, respectively, are as follows, continued:


		2022
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net			Operating profit (loss)
		In millions of won
Transmission and distribution	￦		68,239,707			1,922,354			66,317,353		4,130,004			67,076			1,420,802			980,146			180,114			157,784		611,534			(33,623,874	)
Electric power generation (Nuclear)			10,386,091			10,254,271			131,820		4,034,774			45,789			557,218			(753	)		82,466			—		624,221			761,109
Electric power generation (Non-nuclear)			41,944,339			39,252,851			2,691,488		4,091,081			53,242			694,559			329,112			140,067			—		619,947			289,001
Plant maintenance & engineering service			2,975,062			2,516,699			458,363		123,168			14,003			1,405			1,886			82,070			—		213,671			239,529
Others			2,750,231			1,803,231			947,000		211,719			195,966			195,860			—			53,017			3,125		9,463			333,547
Consolidation adjustments			(55,749,406	)		(55,749,406	)		—		(129,334	)		(35,323	)		(51,298	)		—			(52,034	)		—		68,143			(239,843	)

	￦		70,546,024			—			70,546,024		12,461,412			340,753			2,818,546			1,310,391			485,700			160,909		2,146,979			(32,240,531	)

Finance income																															1,833,312

Finance expense																															(4,746,791	)

Gain related to associates, joint ventures and subsidiaries																															1,310,391

Profit before income tax																													￦		(33,843,619	)

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements,

Continued

December 31, 2021 and 2022

4.	Segment, Geographic and Other Information, Continued

(3)	Information related to segment assets and segment liabilities as of and for the years ended December 31, 2021 and 2022 are as follows:


		2021
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
		In millions of won

Transmission and distribution	￦		115,578,517			4,700,863		6,754,298			68,531,927
Electric power generation (Nuclear)			64,628,651			141,885		1,959,479			38,361,337
Electric power generation (Non-nuclear)			57,310,164			2,575,019		3,341,960			35,803,289
Plant maintenance & engineering service			3,672,366			53,617		110,330			1,086,926
Others			10,870,812			—		645,760			4,961,880

Segment totals			252,060,510			7,471,384		12,811,827			148,745,359

Consolidation adjustments:
Elimination of inter-segment amounts			(41,701,400	)		—		(12,001	)		(8,101,011	)
Equity method adjustment			1,866,554			—		—			—
Deferred taxes			1,881			—		—			5,248,627
Others			(1,103,818	)		—		—			(95,954	)

			(40,936,783	)		—		(12,001	)		(2,948,338	)

Consolidated totals	￦		211,123,727			7,471,384		12,799,826			145,797,021


		2022
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
		In millions of won
Transmission and distribution	￦		131,023,727			5,678,141		6,055,179			108,963,058
Electric power generation (Nuclear)			69,129,625			143,304		2,008,409			42,843,974
Electric power generation (Non-nuclear)			69,468,039			3,113,918		3,547,815			40,428,907
Plant maintenance & engineering service			4,051,157			56,685		200,338			1,272,408
Others			12,895,981			—		839,885			5,796,718

Segment totals			286,568,529			8,992,048		12,651,626			199,305,065

Consolidation adjustments:
Elimination of inter-segment amounts			(43,801,723	)		—		(38,633	)		(9,304,648	)
Equity method adjustment			2,859,623			—		—			—
Deferred taxes			(452	)		—		—			2,801,832
Others			(10,820,983	)		—		—			2,489

			(51,763,535	)		—		(38,633	)		(6,500,327	)

Consolidated totals	￦		234,804,994			8,992,048		12,612,993			192,804,738

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

4.	Segment, Geographic and Other Information, Continued

(4)	Geographic information

Electricity sales, the main operations of the Company, are conducted in the Republic of Korea. The following information on revenue from external customers and

non-current

assets is determined by the location of the customers and of the assets:


		Revenue from external customers						Non-current assets (*2)
Geographical unit		2020		2021		2022		2020		2021		2022
		In millions of won
Domestic	￦		56,775,375		58,771,252		69,142,730		173,673,478		178,760,564		183,707,117
Overseas (*1)			1,151,259		1,241,123		1,403,294		2,831,925		3,572,784		4,724,416

	￦		57,926,634		60,012,375		70,546,024		176,505,403		182,333,348		188,431,533

(*1)

Middle East and other Asian countries make up the majority of overseas revenue and

non-current

assets. Since the overseas revenue or

non-current

assets attributable to particular countries are not material, they are not disclosed individually.

(*2)

The amounts exclude financial assets and deferred tax assets.

(5)	Information on significant customers

There is no single customer which accounts for 10% or more of the Company’s revenue for the years ended December 31, 2020, 2021 and 2022.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

5.	Classification of Financial Instruments

(1)	Classification of financial assets as of December 31, 2021 and 2022 are as follows:


		2021
		Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
		In millions of won
Current assets
Cash and cash equivalents	￦		—		—		2,635,238		—		2,635,238
Current financial assets
Current financial assets at fair value through profit or loss			360,833		—		—		—		360,833
Current financial assets at amortized costs			—		—		15,422		—		15,422
Current derivative assets			93,374		—		—		33,564		126,938
Other financial assets			—		—		1,365,603		—		1,365,603
Trade and other receivables			—		—		8,122,415		—		8,122,415

			454,207		—		12,138,678		33,564		12,626,449

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			672,031		—		—		—		672,031
Non-current financial assets at fair value through other comprehensive income			—		435,107		—		—		435,107
Non-current financial assets at amortized costs			—		—		9,851		—		9,851
Non-current derivative assets			349,653		—		—		171,192		520,845
Other financial assets			—		—		1,271,976		—		1,271,976
Trade and other receivables			—		—		1,906,861		—		1,906,861

			1,021,684		435,107		3,188,688		171,192		4,816,671

	￦		1,475,891		435,107		15,327,366		204,756		17,443,120

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

5.	Classification of Financial Instruments, Continued

(1)	Classification of financial assets as of December 31, 2021 and 2022 are as follows, continued:


		2022
		Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
		In millions of won
Current assets
Cash and cash equivalents	￦		—		—		3,234,780		—		3,234,780
Current financial assets
Current financial assets at fair value through profit or loss			3,181,791		—		—		—		3,181,791
Current financial assets at amortized costs			—		—		16,762		—		16,762
Current derivative assets			154,730		—		—		134,873		289,603
Other financial assets			—		—		798,819		—		798,819
Trade and other receivables			—		—		10,461,822		—		10,461,822
			3,336,521		—		14,512,183		134,873		17,983,577

Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			527,717		—		—		—		527,717
Non-current financial assets at fair value through other comprehensive income			—		502,829		—		—		502,829
Non-current financial assets at amortized costs			—		—		10,236		—		10,236
Non-current derivative assets			538,342		—		—		190,079		728,421
Other financial assets			—		—		1,567,632		—		1,567,632
Trade and other receivables			—		—		2,153,080		—		2,153,080
			1,066,059		502,829		3,730,948		190,079		5,489,915

	￦		4,402,580		502,829		18,243,131		324,952		23,473,492

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

5.	Classification of Financial Instruments, Continued

(2)	Classification of financial liabilities as of December 31, 2021 and 2022 are as follows:


		2021
		Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
		In millions of won
Current liabilities
Borrowings	￦		—		4,382,218		—		4,382,218
Debt securities			—		9,647,616		—		9,647,616
Derivative liabilities			6,838		—		453		7,291
Trade and other payables			—		8,153,426		—		8,153,426

			6,838		22,183,260		453		22,190,551

Non-current liabilities
Borrowings			—		2,265,624		—		2,265,624
Debt securities			—		64,234,055		—		64,234,055
Derivative liabilities			49,418		—		21,322		70,740
Trade and other payables			—		5,996,498		—		5,996,498

			49,418		72,496,177		21,322		72,566,917

	￦		56,256		94,679,437		21,775		94,757,468


		2022
		Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
		In millions of won
Current liabilities
Borrowings	￦		—		12,457,853		—		12,457,853
Debt securities			—		10,201,149		—		10,201,149
Derivative liabilities			44,994		—		—		44,994
Trade and other payables			—		11,983,549		—		11,983,549

			44,994		34,642,551		—		34,687,545

Non— current liabilities
Borrowings			—		2,962,323		—		2,962,323
Debt securities			—		94,984,040		—		94,984,040
Derivative liabilities			362,252		—		25,505		387,757
Trade and other payables			—		5,638,914		—		5,638,914

			362,252		103,585,277		25,505		103,973,034

	￦		407,246		138,227,828		25,505		138,660,579

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

5.	Classification of Financial Instruments, Continued

(3)	Classification of comprehensive income (loss) from financial instruments for the years ended December 31, 2020, 2021 and 2022 are as follows:


			2020			2021			2022
			In millions of won
Cash and cash equivalents	Interest income	￦		9,419			12,692			51,872
	Gain (loss) on foreign currency transactions and translations			(15,911	)		34,923			22,158
Financial assets at fair value through profit or loss	Interest income			19,114			18,415			58,540
	Dividends income			4,734			2,949			1,994
	Gain (loss) on valuation of derivatives			(52,447	)		450,896			336,049
	Gain (loss) on transaction of derivatives			36,563			54,352			205,298
	Gain (loss) on valuation of financial assets			5,508			8,858			(37,230	)
	Gain (loss) on disposal of financial assets			11,344			4,221			9,358
Financial assets at fair value through other comprehensive income	Dividends income			2,582			7,573			26,881
Financial assets at amortized cost	Interest income			612			797			1,308
	Gain (loss) on foreign currency transactions and translations			(1,733	)		(3,647	)		5,087
Loans	Interest income			26,232			25,196			33,545
	Gain (loss) on foreign currency transactions and translations			(527	)		729			596
Trade and other receivables	Interest income			151,035			144,543			164,653
	Gain (loss) on disposal of financial assets			—			2,452			—
	Gain (loss) on foreign currency transactions and translations			23,458			14,207			1,019
Short-term financial instruments	Interest income			25,540			7,531			15,827
	Gain (loss) on foreign currency transactions and translations			(38,088	)		32,218			3,513
Long-term financial instruments	Interest income			10,406			12,470			14,371
	Gain (loss) on foreign currency transactions and translations			—			27			1
Other financial assets	Interest income			228			230			637
Derivatives (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)			(77,733	)		211,180			149,888
	Gain (loss) on valuation of derivatives (equity, before tax)			9,925			(11,734	)		(93,699	)
	Gain (loss) on transaction of derivatives			36,053			31,351			54,422
Financial liabilities at fair value through profit or loss	Gain (loss) on valuation of derivatives			(104,607	)		2,751			(345,313	)
	Gain (loss) on transaction of derivatives			(49,788	)		(15,358	)		(110,236	)
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities			1,365,801			1,316,269			2,142,220
	Gain (loss) on repayment of financial liabilities			(35	)		(10	)		(15	)
	Interest expense of trade and other payables			88,757			213,765			204,078
	Interest expense of others			540,867			384,423			472,248
	Other finance income			—			1,284			927
	Other finance expenses			—			2,504			167
	Gain (loss) on foreign currency transactions and translations			772,045			(1,162,835	)		(936,269	)
Derivatives (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)			(220,928	)		158,167			83,594
	Gain (loss) on valuation of derivatives (equity, before tax)			101,295			(28,726	)		28,647
	Gain (loss) on transaction of derivatives			42,565			13,737			75,201

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

6.	Restricted Deposits

Restricted deposits as of December 31, 2021 and 2022 are as follows:


			2021		2022
			In millions of won
Cash and cash equivalents	Escrow accounts	￦		—		2,912
	Deposits for government project and others			22,286		30,586
	Collateral provided for borrowings			264,813		250,346
	Collateral provided for lawsuit			42		57
	Deposits for transmission regional support program			5,921		8,626
	Deposits for other business purposes			3,050		3,825
Short-term financial instruments	Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others			114,000		101,500
	Collateral provided for borrowings			11,745		1,000
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants			531,720		386,220
Long-term financial instruments	Escrow accounts			70		1,603
	Guarantee deposits for banking accounts at oversea branches			333		18
	Collateral provided for borrowings			—		21,745
	Decommissioning costs of nuclear power plants			324,609		497,609
	Funds for developing small and medium enterprises			10,000		—
Other non-current assets	Deposits for other business purposes			—		4,355

		￦		1,288,589		1,310,402

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

7.	Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2021 and 2022 are as follows:


		2021		2022
		In millions of won
Cash	￦		19,623		21,113
Other demand deposits			1,825,751		1,906,248
Short-term deposits classified as cash equivalents			407,921		1,063,290
Short-term investments classified as cash equivalents			381,943		244,129

	￦		2,635,238		3,234,780

8.	Trade and Other Receivables

(1)	Trade and other receivables as of December 31, 2021 and 2022 are as follows:


		2021
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,743,735		(203,838	)		—			7,539,897
Other receivables			602,113		(18,555	)		(1,040	)		582,518

			8,345,848		(222,393	)		(1,040	)		8,122,415

Non-current assets
Trade receivables			185,512		(1,501	)		—			184,011
Other receivables			1,792,895		(64,155	)		(5,890	)		1,722,850

			1,978,407		(65,656	)		(5,890	)		1,906,861

	￦		10,324,255		(288,049	)		(6,930	)		10,029,276


		2022
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		9,700,880		(196,829	)		—			9,504,051
Other receivables			1,004,528		(44,388	)		(2,369	)		957,771

			10,705,408		(241,217	)		(2,369	)		10,461,822

Non-current assets
Trade receivables			197,955		(2,171	)		—			195,784
Other receivables			2,033,705		(65,065	)		(11,344	)		1,957,296

			2,231,660		(67,236	)		(11,344	)		2,153,080

	￦		12,937,068		(308,453	)		(13,713	)		12,614,902

F-48

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

8.	Trade and Other Receivables, Continued

(2)	Other receivables as of December 31, 2021 and 2022 are as follows:


		2021
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		232,172		(17,084	)		(9	)		215,079
Accrued income			57,300		—			—			57,300
Deposits			212,666		—			(1,031	)		211,635
Finance lease receivables(*1)			60,613		(178	)		—			60,435
Others			39,362		(1,293	)		—			38,069

			602,113		(18,555	)		(1,040	)		582,518

Non-current assets
Non-trade receivables			123,537		(56,407	)		(281	)		66,849
Accrued income			1,828		—			—			1,828
Deposits			441,393		—			(5,609	)		435,784
Finance lease receivables(*2)			1,140,080		(590	)		—			1,139,490
Others			86,057		(7,158	)		—			78,899

			1,792,895		(64,155	)		(5,890	)		1,722,850

	￦		2,395,008		(82,710	)		(6,930	)		2,305,368

(1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦111,915 million. (2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦1,082,712 million.
		2022
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		459,245		(41,293	)		(21	)		417,931
Accrued income			109,267		—			—			109,267
Deposits			289,580		—			(2,348	)		287,232
Finance lease receivables(*1)			67,583		(1,802	)		—			65,781
Others			78,853		(1,293	)		—			77,560

			1,004,528		(44,388	)		(2,369	)		957,771

Non-current assets
Non-trade receivables			140,128		(52,696	)		(182	)		87,250
Accrued income			2,004		—			—			2,004
Deposits			459,861		—			(11,162	)		448,699
Finance lease receivables(*2)			1,171,807		(2,703	)		—			1,169,104
Others			259,905		(9,666	)		—			250,239

			2,033,705		(65,065	)		(11,344	)		1,957,296

	￦		3,038,233		(109,453	)		(13,713	)		2,915,067

(*1)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦114,347 million.

(*2)

Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦1,024,927 million.

(3)

Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. However once trade receivables are overdue, the Company imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Company holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with delinquent payments.

F-49

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

8.	Trade and Other Receivables, Continued

(4)	Aging analysis of trade receivables as of December 31, 2021 and 2022 are as follows:


		2021			2022
		In millions of won
Trade receivables: (not overdue)	￦		7,603,472			9,509,775

Trade receivables: (impairment reviewed)			325,775			389,060

Less than 60 days			11,577			5,592
60 ~ 90 days			27,201			36,389
90 ~ 120 days			28,230			31,442
120 days ~ 1 year			51,945			99,655
Over 1 year			206,822			215,982

			7,929,247			9,898,835
Less: allowance for doubtful accounts			(205,339	)		(199,000	)

	￦		7,723,908			9,699,835

At the end of each reporting period, the Company assesses whether the credit to trade receivables is impaired. The Company recognizes loss allowances for trade receivables individually when there is any objective evidence that trade receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5)	Aging analysis of other receivables as of December 31, 2021 and 2022 are as follows:


		2021			2022
		In millions of won
Other receivables: (not overdue)	￦		2,251,474			2,857,253

Other receivables: (impairment reviewed)			143,534			180,980

Less than 60 days			87			92
60 ~ 90 days			4,881			13,643
90 ~ 120 days			1,248			2,982
120 days ~ 1 year			11,438			18,494
Over 1 year			125,880			145,769

			2,395,008			3,038,233
Less: allowance for doubtful accounts			(82,710	)		(109,453	)
Less: present value discount			(6,930	)		(13,713	)

	￦		2,305,368			2,915,067

At the end of each reporting period, the Company assesses whether the credit to other receivables is impaired. The Company recognizes loss allowances for other receivables individually when there is any objective evidence that other receivables are impaired and significant, and classifies the other receivables that are not individually assessed as the other receivables subject to be assessed on a collective basis. Also, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

F-50

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

8.	Trade and Other Receivables, Continued

(6)	Changes in the allowance for doubtful accounts for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020						2021						2022
		Trade receivables			Other receivables			Trade receivables			Other receivables			Trade receivables			Other receivables
		In millions of won
Beginning balance	￦		212,759			114,155			208,990			132,379			205,339			82,710
Bad debt expense			24,021			27,329			19,039			18,411			27,078			4,220
Write-off			(20,332	)		(1,910	)		(21,809	)		(58,762	)		(26,319	)		(1,103	)
Reversal			(3,373	)		(2,464	)		(1,071	)		(79	)		(3,444	)		(37	)
Others			(4,085	)		(4,731	)		190			(9,239	)		(3,654	)		23,663

Ending balance	￦		208,990			132,379			205,339			82,710			199,000			109,453

9.	Financial Assets at Fair Value through Profit or Loss

(1)	Financial assets at fair value through profit or loss as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current
		In millions of won
Financial assets at fair value through profit or loss
Beneficiary Certificate	￦		629		206,160		294		121,406
Cooperative			—		5,797		—		6,329
Others (*)			360,204		202,003		3,181,497		173,386

			360,833		413,960		3,181,791		301,121

Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			—		258,071		—		226,596

	￦		360,833		672,031		3,181,791		527,717

(*)	‘Other’ includes MMT which is composed of government bonds, RP(Repurchase Paper), CP(Commercial Paper), etc.

(2)	Details of income (loss) from financial assets at fair value through profit or loss for the years ended December 31, 2021 and 2022 are as follows:


		2021		2022
		In millions of won
Beneficiary Certificate	￦		13,632		4,527
Cooperative			110		120
Debt with embedded derivatives			854		946
Others			19,848		27,068

	￦		34,444		32,661

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income

(1)	Changes in financial assets at fair value through other comprehensive income for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance
		In millions of won
Equity securities
Listed	￦		194,669		1,500		(8,208	)		81,112			4,753			273,826
Unlisted			163,890		8,929		(13	)		(12,335	)		319			160,790

			358,559		10,429		(8,221	)		68,777			5,072			434,616

Debt securities
Corporate bond			—		500		—			—			(9	)		491

			358,559		10,929		(8,221	)		68,777			5,063			435,107

Current financial assets at fair value through other comprehensive income	￦		—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income			358,559		10,929		(8,221	)		68,777			5,063			435,107

		2022
		Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance
		In millions of won
Equity securities
Listed	￦		273,826		—		—			28,585			(2,354	)		300,057
Unlisted			160,790		9,451		—			33,237			(1,235	)		202,243

			434,616		9,451		—			61,822			(3,589	)		502,300

Debt securities
Corporate bond			491		—		—			38			—			529

			435,107		9,451		—			61,860			(3,589	)		502,829

Current financial assets at fair value through other comprehensive income	￦		—		—		—			—			—			—
Non-current financial assets at fair value through other comprehensive income			435,107		9,451		—			61,860			(3,589	)		502,829

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Listed
Korea District Heating Corp.		2,264,068		19.55	%	￦		173,201		87,733		87,733
Ssangyong Motor Co., Ltd.		38,568		0.03	%			428		—		—
SM Korea Line Corp.		180		0.00	%			1		—		—
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%			15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%			2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%			217		42		42
PAN Ocean Co., Ltd.		1,492		0.00	%			14		8		8
STX Heavy Industries Co., Ltd.		7,419		0.03	%			107		35		35
Codes Combine Co., Ltd.		291		0.00	%			1		1		1
PT Adaro Energy Tbk.		480,000,000		1.50	%			65,028		89,747		89,747
Denison Mines Corp.		58,284,000		9.76	%			84,134		94,376		94,376
Fission Uranium Corp.		100,000		0.02	%			41		73		73
SangSangin Industry Co., Ltd.		5,831		0.01	%			38		6		6
Vitzosys Co., Ltd.		399		0.00	%			2		2		2
EMnI Co., Ltd.		628		0.00	%			25		2		2
Vissem electronics, Co., Ltd.		229		0.00	%			11		2		2
KC Industry Co., Ltd.		139		0.00	%			6		1		1
Ihsung CNI Co., Ltd.		142,860		4.81	%			1,500		1,779		1,779
Aone Alform Co., Ltd.		2,672		0.08	%			19		18		18

								324,790		273,826		273,826

Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%	￦		5,000		954		954
Hwan Young Steel Co., Ltd.		10,916		0.14	%			1,092		97		97
SAMBO AUTO. Co., Ltd.		15,066		0.02	%			38		38		38
Mobo Co., Ltd.		504		0.00	%			14		14		14
Dae Kwang Semiconductor Co., Ltd.		589		0.07	%			6		6		6
Sanbon Department Store		828		0.01	%			124		3		3
Miju Steel Mfg. Co., Ltd.		1,097		0.23	%			50		50		50
Sungwon Co., Ltd.		117		0.07	%			29		29		29
IMHWA Corp.		329		0.11	%			5		5		5
DALIM Special Vehicle Co., Ltd.		58		0.08	%			10		10		10
ASA JEONJU Co., Ltd.		34,846		1.34	%			697		69		69
Moonkyung Silica Co., Ltd.		42		0.56	%			—		—		—
Sungkwang Timber Co., Ltd.		3		0.08	%			5		5		5
HJ Steel Co., Ltd.		218		0.07	%			2		2		2
KS Remicon Co., Ltd.		12		0.04	%			3		3		3
Joongang Platec Co., Ltd.		3,591		0.75	%			72		35		35
Pyungsan SI Co., Ltd.		434		0.01	%			9		9		9
Samgong Development Co., Ltd.		12		0.01	%			7		7		7
Joongang Development Co., Ltd.		540		0.12	%			8		8		8
AJS Co., Ltd.		12,906		0.23	%			32		32		32
MSE Co., Ltd.		429		0.13	%			9		9		9
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%			15		15		15
Youngjin Hi-Tech Co., Ltd.		11,109		0.25	%			255		150		150
Buyoung Co., Ltd.		270		0.00	%			3		3		3
Ilsuk Co., Ltd.		152		0.17	%			10		10		10
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%			—		—		—
Daewoo Development Co., Ltd.		8		0.00	%			—		—		—
Seyang Inc.		537		0.05	%			27		27		27

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Seungri Enterprise Co., Ltd.		93		0.05	%	￦		3		3		3
Shin-E P&C Co., Ltd.		1,569		0.64	%			111		2		2
Ejung Ad Co., Ltd.		132		0.09	%			3		3		3
Solvus Co., Ltd.		1,056		0.04	%			3		3		3
Myung Co., Ltd.		89		0.05	%			2		2		2
Biwang Industry Co., Ltd		406		0.04	%			2		2		2
Young Sung Co., Ltd.		89		0.40	%			26		26		26
Yuil Industrial Electronics Co., Ltd.		804		0.32	%			15		15		15
Woojin Industry Corporation		3		0.00	%			16		16		16
Kwang Sung Industry Co., Ltd.		325		0.35	%			7		7		7
Futech Mold Co., Ltd.		274		0.27	%			14		14		14
Woojoo Environment Ind. Co., Ltd.		101		0.11	%			13		13		13
Hyungji Esquire Co., Ltd.		61		0.02	%			22		22		22
Morado Co., Ltd.		209		0.04	%			2		2		2
Myung Sung Tex Co., Ltd.		20		0.00	%			2		2		2
Kwang Sung Co., Ltd.		610		0.53	%			31		31		31
Seen Business and Technology co., Ltd.		29,424		0.73	%			148		7		7
Woobang Construction Co., Ltd.		8		0.00	%			8		8		8
Shin Pyung Co., Ltd.		6		0.03	%			3		3		3
JMC Heavy Industries Co., Ltd.		2,724		0.10	%			27		2		2
Najin Steel Co., Ltd.		37		0.06	%			5		5		5
Sinkwang Industry Co., Ltd.		1,091		1.68	%			5		5		5
Elephant & Friends Co., Ltd.		563		0.61	%			3		3		3
Mireco Co., Ltd.		109		0.25	%			11		11		11
L&K Industry Co., Ltd.		1,615		0.60	%			24		24		24
JO Tech Co., Ltd.		1,263		0.62	%			25		25		25
Kendae Printing Co., Ltd.		422		0.60	%			21		21		21
Dauning Co., Ltd.		231		0.41	%			6		6		6
Korea Trecision Co., Ltd.		22		0.45	%			5		5		5
Ace Track Co., Ltd.		3,130		1.08	%			219		59		59
Dung Hwan Co., Ltd.		556		0.02	%			6		6		6
Hurim Biocell Co., Ltd.		1,021		0.00	%			5		5		5
Smart Power Co., Ltd.		133,333		4.14	%			200		200		200
Sunjin Power Tech Co., Ltd.		4,941		0.92	%			247		32		32
Beer Yeast Korea Inc.		1,388		0.43	%			7		7		7
B CON Co., Ltd.		96		1.16	%			6		6		6
Ace Integration Co., Ltd		105		0.09	%			24		24		24
AceInti Agricultural Co., Ltd.		16		0.02	%			5		5		5
KyungDong Co., Ltd.		130		0.01	%			1		1		1
ChunWon Development Co., Ltd.		193		0.19	%			39		39		39
SungLim Industrial Co., Ltd.		29		0.03	%			1		1		1
Korea Minerals Co., Ltd.		191		0.05	%			134		1		1
HyoDong Development Co., Ltd.		128		0.16	%			25		1		1
Haspe Tech Co., Ltd.		652		0.55	%			20		20		20
JoHyun Co., Ltd.		350		1.56	%			18		18		18
KC Co., Ltd.		5,107		0.17	%			26		26		26
SeongJi Industrial Co.,Ltd.		41		0.05	%			1		1		1
Seyang Precision Ind.Co., Ltd.		829		0.23	%			41		41		41
Dooriwon Food System Co., Ltd.		13		0.27	%			1		1		1
ShinShin Co., Ltd		339		1.12	%			17		17		17

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Sung Kwang Co., Ltd.		23		0.37	%	￦		6		6		6
Shinheung petrol. Co., Ltd.		699		0.14	%			35		35		35
Force TEC Co., Ltd.		3,501		0.02	%			18		18		18
Samsung Tech Co., Ltd.		486		1.28	%			97		36		36
Younil Metal Co., Ltd.		41		0.21	%			21		21		21
CJ Paradise Co.,Ltd		24		0.02	%			12		12		12
Han Young Technology Company Co.,Ltd.		35		0.00	%			—		—		—
K Shipbuilding Co., Ltd. (formerly, STX Offshore & Shipbuilding Co., Ltd.)		8,622		0.25	%			1,078		1,078		1,078
Ptotronics Co., Ltd.		843		0.42	%			84		6		6
NFT Co., Ltd.		136		0.40	%			8		8		8
Hyundaitech Co.,Ltd.		1,363		0.87	%			27		27		27
Dasan Material Co., Ltd.		29		0.04	%			22		22		22
Fish World Co.,Ltd.		47		0.21	%			2		2		2
SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%			6		—		—
Samdo Industry Electric Co.,Ltd.		48		0.02	%			1		1		1
Taejung Industries Co.,Ltd.		9,268		0.30	%			5		5		5
Shinsei Trading Co., Ltd.		64		0.72	%			6		6		6
Dynamic Co., Ltd.		111		0.19	%			3		3		3
Green Alchemy Co.,Ltd.		38,202		1.48	%			191		17		17
Youone TBM Engineering & Construction Co., Ltd.		615		0.27	%			31		31		31
KM Leatech Co., Ltd.		1,648		0.98	%			8		8		8
Semist Co.,Ltd.		555		0.80	%			3		3		3
Sewon Bus Co.,Ltd		12		0.00	%			—		—		—
Enertec Co., Ltd.		7,937		0.19	%			44		44		44
Sangji Co., Ltd.		20		0.26	%			4		4		4
Bellie Doughnuts Co., Ltd.		169		0.19	%			10		10		10
AIRTECH Information communication Co., Ltd		2,379		0.60	%			12		12		12
Kiscom Co., Ltd.		1,493		0.04	%			1		1		1
Wonil laser Co., Ltd		157		0.37	%			16		16		16
Pyung Hwa Industrial Co.,Ltd.		3,388		3.00	%			85		85		85
Set Holding (*2)		1,100,220		2.50	%			229,255		131,036		131,036
PT. Cirebon Energi Prasarana		22,420		10.00	%			2,612		2,658		2,658
Choheung packing Co.,Ltd.		61		0.13	%			12		12		12
Jaewoo Co., Ltd.		359		0.24	%			11		11		11
Wooyang HC Co., Ltd		1,375		0.01	%			159		13		13
TheYeonriji Co., Ltd.		116		0.10	%			6		6		6
Flusys Co., Ltd.		9		0.08	%			2		2		2
DongSeo Electronics Co., Ltd.		347		0.07	%			16		17		17
Daewoo Display Co., Ltd.		177		0.03	%			5		5		5
NTS Co., Ltd.		143		0.22	%			36		36		36
AID CO., Ltd.		1,212		0.57	%			36		36		36
Changwon Eco-friendly farming Corp.		3		0.01	%			—		—		—
Kumo Hitech Co., Ltd.		6,697		0.53	%			100		32		32
Kyung Pyo Industry Co., Ltd.		186		0.76	%			19		19		19
Daedong Industry Co., Ltd.		617		0.55	%			46		46		46
Doosung Heavy Industries Co., Ltd.		53		0.06	%			5		5		5
Samjoo Hightech Co., Ltd.		522		0.08	%			3		3		3
Samkwang Chemical Co., Ltd.		204		1.27	%			51		51		51
SG Corp.		213		0.54	%			21		21		21

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Shinseung Chemical Industy Co., Ltd.		5		0.01	%	￦		60		60		60
KJ Alloy Co., Ltd.		368		0.20	%			7		7		7
SM Hi-tech Co., Ltd.		22		0.39	%			22		22		22
Puruen Environment Co., Ltd.		967		1.34	%			19		19		19
Miretech Co., Ltd.		9,111		0.27	%			18		18		18
Sejin Hightech Co., Ltd.		17,980		0.16	%			18		18		18
Eun Sung Enterprise Co., Ltd.		1,131		0.72	%			17		17		17
Dongdo Basalt Industry Co., Ltd.		182		1.50	%			73		73		73
Shinyoung Textiles Co., Ltd.		523		1.01	%			52		23		23
Ilwoo Steel Co., Ltd.		41		0.28	%			17		17		17
Dong-un Tech Co., Ltd.		1,159		6.28	%			81		81		81
Wongwang Door Corp.		575		1.00	%			29		29		29
Mansu Co.,Ltd.		344		0.25	%			15		15		15
Eanskorea Co., Ltd.		39		0.05	%			2		2		2
Youngdongseafood Co., Ltd.		165		0.33	%			8		8		8
Hyunwoo Winstar Co., Ltd.		1		0.00	%			—		—		—
Sehwa Diecasting Co., Ltd.		299		1.66	%			44		44		44
Sungchang Tech Co., Ltd.		159		0.31	%			10		10		10
Yuchang Industry Co., Ltd.		90		0.11	%			5		5		5
Jeongpum Co., Ltd.		322		0.35	%			16		16		16
Korea Steel Power Co., Ltd.		2,761		1.88	%			55		55		55
Amanex Co., Ltd.		10		0.02	%			9		9		9
Dae-A Leisure Co., Ltd.		23		0.00	%			4		4		4
Caffe Bene Co.,Ltd.		1,908		0.03	%			9		9		9
Shinjin International Corp.		4		0.01	%			1		1		1
Jinhung Packaging Co.,Ltd		4,329		3.02	%			22		22		22
Donglim Eng Co., Ltd.		26		0.11	%			3		3		3
SIP Co., Ltd.		274		0.55	%			7		7		7
Clizen Co., Ltd.		615		0.34	%			31		31		31
DAEDONGMILLENNIUM Co., Ltd.		159		0.42	%			32		32		32
Daeji Product Co., Ltd.		15		0.05	%			1		—		—
Jaein Circuit Co., Ltd.		498		1.12	%			65		65		65
SSET Co., Ltd.		181		0.30	%			18		18		18
Sewon PM Tech Co., Ltd.		963		1.11	%			48		48		48
Dawon Yuhwa Co., Ltd.		506		1.94	%			25		25		25
Ogokbaekkwa Co., Ltd.		101		0.12	%			1		1		1
Shinwoo Toptech Co., Ltd.		834		0.51	%			83		6		6
KMLC Co., Ltd.		281		0.14	%			22		22		22
Seinfood Co., Ltd.		13		0.17	%			7		7		7
TaeSung Eco-Tech. Co., Ltd.		1,368		4.55	%			34		34		34
Kukex Inc.		639		0.05	%			3		3		3
Youngshin Plus Co., Ltd.		104		0.12	%			5		5		5
Chang won Engineering Co., Ltd.		22		0.00	%			4		4		4
Samsung Silup Co., Ltd.		47		0.19	%			5		5		5
Samwon Bio Tech Co., Ltd.		390		0.25	%			6		6		6
IZU KOREA Co., Ltd.		48		0.00	%			2		2		2
Dongdo CNP Co., Ltd.		234		0.36	%			6		6		6
Dae Bang Industry Co.,Ltd.		115		0.13	%			6		6		6
S.I.T. Co.,Ltd		2,213		0.44	%			22		22		22
Taejin Hiech Co., Ltd.		78		0.26	%			3		3		3

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Headone Co.,Ltd.		69		0.12	%	￦		7		7		7
E-Won Solutech Co., Ltd.		158		0.16	%			40		40		40
MJT Co., Ltd.		1,013		0.20	%			51		51		51
KPL Circuit Co., Ltd.		283		0.08	%			14		14		14
Road Solar Co., Ltd.		12		0.00	%			—		—		—
Han Mi Flexible Co.,Ltd.		143		0.20	%			43		43		43
Samhwa Casting Co., Ltd.		200		0.04	%			100		100		100
Millennium PNT Co., Ltd.		227		0.37	%			6		6		6
GN Chem Co., Ltd.		40		0.07	%			1		1		1
GW Industry Co., Ltd.		505		0.07	%			51		51		51
TM Construction Co., Ltd.		4		0.00	%			—		—		—
Dae Myung Co., Ltd.		114		0.08	%			3		3		3
Nanomicart Co., Ltd.		176		1.06	%			35		35		35
Young San Heavy Industries Co., Ltd.		74		0.11	%			7		7		7
Samchungwon Co., Ltd.		15		0.24	%			2		2		2
Wooyang Frozen Foods Co., Ltd.		66		0.82	%			27		27		27
Nanomic Co., Ltd.		94		0.63	%			38		38		38
Samsung Nonferrous Metal Co., Ltd.		89		0.26	%			9		9		9
Daewha Fuel Pump Ind., Ltd.		83		0.05	%			10		10		10
Addies Direct Co., Ltd.		1		0.00	%			—		—		—
WorldCnM Inc.		131		1.09	%			10		10		10
Superone Co., Ltd.		1,585		1.45	%			8		8		8
Buyoung Panji Co., Ltd.		478		0.44	%			12		12		12
International Paint Korea Co., Ltd.		111		0.48	%			11		11		11
EI Lighting Co., Ltd.		358		0.36	%			18		18		18
Hightech Mnp Co., Ltd.		123		0.35	%			6		6		6
Yooseung Co., Ltd.		10		0.08	%			1		1		1
Sungkwang Co., Ltd.		48		0.35	%			2		2		2
Taeyang gasteel Co., Ltd.		8		0.02	%			1		1		1
Ajin KSB Co., Ltd.		204		0.31	%			18		18		18
Sewon Ceramic Co., Ltd.		530		1.01	%			5		5		5
Choyang Tech Co., Ltd.		465		1.01	%			23		23		23
TK Co., Ltd.		307		0.70	%			15		15		15
Arari Co., Ltd.		14		0.05	%			1		1		1
Potech Co., Ltd.		39		0.13	%			14		14		14
C&S Corporation Co., Ltd.		1,304		0.01	%			13		13		13
Global The One of Korea Co., Ltd.		62		0.06	%			3		3		3
Steellife Co., Ltd.		85		0.06	%			4		4		4
D&C Castech Co., Ltd.		330		1.89	%			25		25		25
Geumhan Co., Ltd.		498		0.24	%			7		7		7
Mokgan Co., Ltd.		5		0.02	%			1		1		1
Wenex Co., Ltd.		373		0.53	%			19		19		19
Sulim Co., Ltd.		30		0.20	%			6		6		6
Shinkwang Engineering		24		0.36	%			2		2		2
Ek Cookware Co., Ltd.		60		0.04	%			1		1		1
KTTW Co., Ltd.		28		0.05	%			2		2		2
Avajar Co., Ltd.		1,061		0.01	%			1		1		1
Woosung I.B. Co.,Ltd		7,071		0.07	%			14		14		14
CAP Korea Co., Ltd.		16		0.30	%			3		3		3
MSM Co., Ltd.		25		0.08	%			—		—		—

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Ddpopstyle Co., Ltd.		22		0.14	%	￦		—		—		—
Finemetal Co., Ltd.		49		0.08	%			1		1		1
Sungkyeong Co., Ltd.		52		0.24	%			2		2		2
RMK Co., Ltd.		63		0.90	%			22		22		22
Tpp Co., Ltd.		36,645		11.72	%			1,832		1,832		1,832
Dukeong Metal Heat Treatment Co., Ltd.		843		3.61	%			84		84		84
Newko Co., Ltd.		331		0.06	%			10		10		10
KMC&R Co., Ltd.		16		0.11	%			1		1		1
Dongsung Mulsan Co., Ltd.		137		0.34	%			14		14		14
Pizzakorea Co., Ltd.		42		0.18	%			9		9		9
Geumdani Co., Ltd.		2,377		1.82	%			36		36		36
Mezzanine I-pack Co., Ltd.		38		0.02	%			1		1		1
Ltop Co., Ltd.		36		0.06	%			7		7		7
Simile Aluminium Co., Ltd.		428		0.31	%			9		9		9
GT Tooling Co., Ltd.		604		0.17	%			6		6		6
Team Korea Co., Ltd.		4,782		0.37	%			24		24		24
Donghwa TCA Co., Ltd.		1,012		0.30	%			25		25		25
Hankook Piaget Co., Ltd.		4		0.01	%			1		1		1
Coco Food Co., Ltd.		648		1.24	%			33		33		33
Woori Industry Co., Ltd.		102		1.05	%			21		21		21
Ssangyong Youngweol Plant Service&Engineering Co., Ltd.		83		0.07	%			4		1		1
SH Co., Ltd.		39		0.20	%			8		8		8
Namsunnam Co., Ltd.		1,275		0.19	%			6		1		1
Daeyoung Co., Ltd.		75		0.01	%			8		8		8
Chandown Food Co., Ltd.		46		0.14	%			9		9		9
Getron Co., Ltd.		7,259		0.20	%			37		4		4
Jungmun Co., Ltd.		19		0.26	%			2		2		2
Andong Trading Corporation Co., Ltd.		42		0.00	%			2		2		2
JM Tech Co., Ltd.		403		0.67	%			82		10		10
SGC Energy Co., Ltd.		580,000		5.00	%			2,900		2,900		2,900
Le Soleil KHNP LLC		137,600		19.00	%			1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%			1,500		2,618		2,618
H Robotics Co., Ltd.		903,601		8.05	%			4,000		5,639		5,639
Good Tcells Co., Ltd.		11,364		0.34	%			500		457		457
IPS Bio Co., Ltd.		1,975		3.13	%			1,000		1,000		1,000
Nine B Co., Ltd.		5,000		4.96	%			1,000		1,000		1,000
Choigang-gujo Co., Ltd.		61		0.45	%			6		1		1
DS Cotec Co., Ltd.		973		0.71	%			15		5		5
Youngheung Industry Co., Ltd.		101		0.05	%			5		1		1
Hosungsteel Co., Ltd.		323		0.26	%			14		3		3
Uktae IND. Co., Ltd.		140		0.12	%			7		1		1
Gangdong R&S Co., Ltd.		69		1.25	%			1		1		1
JFC Co., Ltd.		16		0.01	%			2		2		2
Seokjin E&T Co., Ltd.		81		0.06	%			8		8		8
Hyundai Tech Co., Ltd.		28		0.69	%			10		10		10
Daeil Co., Ltd.		301		0.42	%			15		2		2
Seohan Food Co., Ltd.		83		0.19	%			2		2		2
Daehyeon Recycle Co., Ltd.		59		0.61	%			12		12		12
Metal Link Inc. Co., Ltd.		709		0.17	%			35		4		4
Pipetec Korea Co., Ltd.		50		0.07	%			10		1		1

F-5

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
SungJin Tech Co., Ltd.		803		1.20	%	￦		24		8		8
Yujin E&C Co., Ltd.		29		0.18	%			6		—		—
Daishin Logistics Co., Ltd.		13		0.09	%			1		1		1
JinSung Engineering Co., Ltd.		18		0.30	%			18		18		18
Yongho Industry Co., Ltd.		157		0.22	%			32		1		1
Wow tech Co., Ltd.		369		0.75	%			11		11		11
World Power Tech Co., Ltd.		16		0.28	%			24		24		24
PBM Auto Co., Ltd.		1,001		1.06	%			10		10		10
K2 Motors Co., Ltd.		54		0.28	%			1		1		1
CL Tech Co., Ltd.		801		2.25	%			40		40		40
Mirae Industry Co., Ltd.		39		0.04	%			6		6		6
Gentak Korea Co., Ltd.		301		0.31	%			8		8		8
Sungjin Chemical Co., Ltd.		118		0.36	%			4		4		4
LMAT Co., Ltd.		198		0.04	%			20		20		20
Poong Lim Industrial Co., Ltd.		25		0.00	%			38		38		38
Dae Sung GeoTech Co., Ltd.		631		1.28	%			32		32		32
Saeheemang Co., Ltd.		756		0.60	%			15		15		15
Hakbong Precision Co., Ltd.		1,460		1.18	%			15		15		15
Vornech Co., Ltd.		431		0.37	%			11		2		2
Woojin Formtech Co., Ltd.		76		0.08	%			8		1		1
Korea Engineer Manufacturing Co., Ltd.		114		0.26	%			6		1		1
Sinwa J&K Co., Ltd.		476		0.28	%			5		5		5
Owon E&G Co., Ltd.		132		0.20	%			4		4		4
Guseong Co., Ltd.		141		0.20	%			4		4		4
Irefarm Co., Ltd.		45		0.30	%			3		3		3
Nam-hae E&C Co., Ltd.		117		0.10	%			2		2		2
Haenarae Agricultural Corp.		15		0.03	%			2		2		2
Ja Yeon Science Ind. Co., Ltd.		10		0.05	%			2		2		2
DECO&E Co., Ltd.		1,261		0.00	%			2		2		2
Design Beyond Co., Ltd.		17		0.19	%			2		2		2
LBK Co., Ltd.		8		0.05	%			1		1		1
Duckwon industrial Co., Ltd.		32		0.43	%			13		13		13
ASPT Co., Ltd.		64		0.82	%			19		19		19
SIMA Co., Ltd.		29		0.05	%			3		3		3
Jingkang Resources Co., Ltd.		90		1.57	%			13		13		13
Eslin Co., Ltd.		39		0.14	%			8		8		8
Shinwon Co., Ltd.		275		0.42	%			19		19		19
CIC Tech Co., Ltd.		96		0.54	%			10		10		10
Orano Expansion		5,742,405		4.72	%			—		—		—
Fourever Co., Ltd.		44		0.10	%			4		4		4
Segyo Hitech Co., Ltd.		156		0.24	%			8		8		8
Myungil Metal Co., Ltd.		80		0.10	%			4		4		4
Daeshin ECM Co., Ltd.		182		0.30	%			9		9		9
Greencarbon Co., Ltd.		79		0.06	%			1		1		1
Sunkoo Co., Ltd.		4		0.10	%			2		2		2
Jians Construction Co., Ltd.		13		0.00	%			2		2		2
DH trading Co., Ltd.		891		0.04	%			178		178		178
Diotech Co., Ltd.		2,186		2.84	%			219		219		219
Sangsin Co., Ltd.		29		0.09	%			15		15		15
Steel focus Co., Ltd.		154		0.20	%			4		4		4

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Kamada Korea Co., Ltd.		437		0.33	%	￦		22		22		22
Fosys Co., Ltd.		19		0.08	%			4		4		4
GB precision Co., Ltd.		137		0.57	%			1		1		1
Ewon Art Co., Ltd.		185		0.61	%			9		9		9
DI Tech Co., Ltd.		3		0.00	%			—		—		—
Hans AD Co., Ltd.		33		0.35	%			2		2		2
Chaegim Environment Development Co., Ltd.		158		0.01	%			3		3		3
Daesung Stain Co., Ltd.		32		0.32	%			2		2		2
YSM Co., Ltd.		281		2.07	%			14		14		14
Dong In Industry Co., Ltd.		65		0.13	%			3		3		3
U&I Co., Ltd.		50		0.22	%			5		5		5
World One Co., Ltd.		401		0.58	%			10		10		10
Yewon Co., Ltd.		24		0.02	%			1		—		—
Seeun P&P Co., Ltd.		163		0.48	%			33		33		33
TSNT Co., Ltd.		119		0.00	%			24		24		24
Shinsung Tech Co., Ltd.		314		0.01	%			16		16		16
JSL Co., Ltd.		51		0.49	%			3		3		3
Loft Garden Co., Ltd.		1		0.04	%			—		—		—
Handon Co., Ltd.		74		0.25	%			11		11		11
GH Tech Co., Ltd.		82		0.22	%			3		3		3
Daeo Co., Ltd.		13		0.23	%			4		4		4
Bokwang Co., Ltd.		76		0.00	%			15		15		15
Samkum Industry Co., Ltd.		201		0.48	%			40		40		40
Dyntex Korea Co., Ltd.		75		0.28	%			15		15		15
IGSP Co., Ltd.		17,662		0.21	%			18		18		18
Mirae Engineering Co., Ltd.		66		0.15	%			1		1		1
Mideumeul-juneun-namu Co., Ltd.		119		0.53	%			6		6		6
Leagis Co., Ltd.		829		1.38	%			66		66		66
Seil Textile Co., Ltd.		16		0.15	%			3		3		3
Ilshin Tech Co., Ltd.		36		0.00	%			7		7		7
Magtec Co., Ltd.		28		0.00	%			6		6		6
Sukwon Co., Ltd.		2,885		0.59	%			29		29		29
Hae-sung Metal Co., Ltd.		159		0.17	%			3		3		3
White&Clean Foods Co., Ltd.		330		0.00	%			3		3		3
Michang Cable Co., Ltd.		861		0.13	%			4		4		4
G.M Foods Co., Ltd.		57		0.16	%			9		9		9
Wecan Global Inc. Co., Ltd.		165		0.08	%			8		8		8
Daeju Steel Co., Ltd.		11		0.20	%			1		1		1
Hyundai Glass Co., Ltd.		860		0.83	%			43		43		43
MEC Co., Ltd.		16,468		1.17	%			41		41		41
Daeyeoneco Co., Ltd.		151		0.00	%			15		15		15
Hyesung Cable&Communication Inc.		762		0.39	%			38		38		38
Sangjin Co., Ltd.		428		0.35	%			21		21		21
Topis Co., Ltd.		246		0.71	%			14		14		14
G&L Tech Co., Ltd.		2		0.06	%			—		—		—
Cheonhae Co., Ltd.		72		0.00	%			2		2		2
Iksan-guwon Co., Ltd.		563		0.00	%			11		11		11
Korea Remicon Co., Ltd.		36		0.03	%			5		5		5
New Tech Co., Ltd.		23		0.15	%			2		2		2
Segeon Co., Ltd.		124		0.00	%			4		4		4

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
MS Tech Co., Ltd.		9		0.15	%	￦		1		1		1
J.I Steel Co., Ltd.		21		0.00	%			2		2		2
HNT Co., Ltd.		172		0.00	%			9		9		9
Taejin Co., Ltd.		27		0.08	%			3		3		3
Macroad Co., Ltd.		953		0.17	%			10		10		10
Jinsung Electronics Co., Ltd.		69		1.41	%			14		14		14
Woongjin Energy Co., Ltd.		94		0.00	%			9		9		9
Electric Contractors’ Financial Cooperative Co., Ltd.		—		—				38		38		38
Information&Communication Financial Cooperative Co., Ltd.		—		—				15		15		15
Common Computer Co., Ltd.		3,856		1.87	%			1,000		1,000		1,000
Fine Powerex Co., Ltd.		72,633		4.92	%			1,500		1,500		1,500

								263,904		160,790		160,790

Debt securities
Aron Flying Ship Co., Ltd. (*1)		—		—				500		491		491

						￦		589,194		435,107		435,107

(*1)

The Company used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2)

The Company has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2021.

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won
Listed

Korea District Heating Corp.		2,264,068		19.55	%	￦		173,201		64,526		64,526
Ssangyong Motor Co., Ltd.		12,205		0.03	%			428		107		107
SM Korea Line Corp.		180		0.00	%			1		—		—
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%			15		0		0
Bumyang Construction Co., Ltd.		35		0.00	%			2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%			217		34		34
PAN Ocean Co., Ltd.		1,492		0.00	%			14		9		9
STX Heavy Industries Co., Ltd.		7,419		0.03	%			107		54		54
Codes Combine Co., Ltd.		291		0.00	%			1		1		1
PT Adaro Energy Tbk.		480,000,000		1.50	%			65,028		149,503		149,503
Denison Mines Corp.		58,284,000		7.09	%			84,134		84,502		84,502
Fission Uranium Corp.		100,000		1.73	%			41		75		75
SangSangin Industry Co., Ltd.		5,831		0.01	%			38		3		3
Vitzosys Co., Ltd.		399		0.00	%			2		—		—
EMnI Co., Ltd.		628		0.00	%			25		3		3
Vissem electronics, Co., Ltd.		229		0.00	%			11		1		1
KC Industry Co., Ltd.		139		0.00	%			6		—		—
Ihsung CNI Co., Ltd.		142,860		4.81	%			1,500		1,229		1,229
Aone Alform Co., Ltd.		2,672		0.04	%			19		10		10

								324,790		300,057		300,057

Unlisted (*1)

Intellectual Discovery Co., Ltd.		200,000		6.00	%	￦		5,000		954		954
Hwan Young Steel Co., Ltd.		10,916		0.14	%			1,092		97		97
SAMBO AUTO. Co., Ltd.		15,066		0.02	%			38		38		38
Mobo Co., Ltd.		504		0.00	%			14		14		14
Dae Kwang Semiconductor Co., Ltd.		589		0.07	%			6		6		6
Sanbon Department Store		828		0.01	%			124		3		3
Miju Steel Mfg. Co., Ltd.		1,097		0.23	%			50		50		50
Sungwon Co., Ltd.		117		0.07	%			29		29		29
IMHWA Corp.		329		0.11	%			5		5		5
DALIM Special Vehicle Co., Ltd.		58		0.08	%			10		10		10
Altron Jeonju Co., Ltd.		34,846		1.34	%			697		5		5
Moonkyung Silica Co., Ltd.		42		0.56	%			—		—		—
Sungkwang Timber Co., Ltd.		3		0.08	%			5		5		5
KS Remicon Co., Ltd.		12		0.04	%			3		3		3
Joongang Platec Co., Ltd.		3,591		0.75	%			72		35		35
Pyungsan SI Co., Ltd.		434		0.01	%			4		4		4
Samgong Development Co., Ltd.		12		0.01	%			7		7		7
Joongang Development Co., Ltd.		540		0.12	%			8		8		8
AJS Co., Ltd.		12,906		0.23	%			32		32		32
MSE Co., Ltd.		429		0.13	%			9		9		9
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%			15		15		15
Ilsuk Co., Ltd.		152		0.17	%			10		10		10
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%			—		—		—
Daewoo Development Co., Ltd.		8		0.00	%			—		—		—
Seyang Inc.		537		0.05	%			27		30		30
Seungri Enterprise Co., Ltd.		93		0.05	%			3		3		3
Shin-E P&C Co., Ltd.		1,569		0.64	%			110		2		2
Ejung Ad Co., Ltd.		132		0.09	%			3		3		3
Solvus Co., Ltd.		1,056		0.04	%			3		3		3
Myung Co., Ltd.		89		0.05	%			2		2		2

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won

Biwang Industry Co., Ltd		406		0.04	%	￦		2		2		2
Young Sung Co., Ltd.		89		0.40	%			26		26		26
Yuil Industrial Electronics Co., Ltd.		804		0.32	%			15		15		15
Woojin Industry Corporation		3		0.00	%			16		16		16
Kwang Sung Industry Co., Ltd.		325		0.35	%			7		7		7
Futech Mold Co., Ltd.		274		0.27	%			14		14		14
Woojoo Environment Ind. Co., Ltd.		101		0.11	%			13		13		13
Hyungji Esquire Co., Ltd.		61		0.02	%			22		22		22
Morado Co., Ltd.		209		0.04	%			2		2		2
Myung Sung Tex Co., Ltd.		20		0.00	%			2		2		2
Kwang Sung Co., Ltd.		610		0.53	%			31		31		31
Seen Business and Technology co., Ltd.		29,424		0.73	%			148		7		7
Woobang Construction Co., Ltd.		8		0.00	%			8		8		8
Shin Pyung Co., Ltd.		6		0.03	%			3		3		3
JMC Heavy Industries Co., Ltd.		2,724		0.10	%			27		2		2
Najin Steel Co., Ltd.		37		0.06	%			5		5		5
Sinkwang Industry Co., Ltd.		1,091		1.68	%			5		5		5
Elephant & Friends Co., Ltd.		563		0.61	%			3		3		3
Mireco Co., Ltd.		109		0.25	%			11		11		11
L&K Industry Co., Ltd.		1,615		0.60	%			24		24		24
JO Tech Co., Ltd.		1,263		0.62	%			25		25		25
Kendae Printing Co., Ltd.		422		0.60	%			21		21		21
Dauning Co., Ltd.		231		0.41	%			6		6		6
Korea Trecision Co., Ltd.		22		0.45	%			5		5		5
Hurim Biocell Co., Ltd.		1,021		0.00	%			5		5		5
Smart Power Co., Ltd.		133,333		4.14	%			200		200		200
Sunjin Power Tech Co., Ltd.		4,941		0.92	%			247		32		32
Beer Yeast Korea Inc.		1,388		0.43	%			7		7		7
B CON Co., Ltd.		96		1.16	%			6		6		6
Ace Integration Co., Ltd.		105		0.09	%			24		24		24
AceInti Agricultural Co., Ltd.		16		0.02	%			5		5		5
KyungDong Co., Ltd.		130		0.01	%			1		1		1
ChunWon Development Co., Ltd.		193		0.19	%			39		39		39
SungLim Industrial Co., Ltd.		29		0.03	%			1		1		1
Korea Minerals Co., Ltd.		191		0.05	%			134		1		1
HyoDong Development Co., Ltd.		128		0.16	%			25		1		1
JoHyun Co., Ltd.		350		1.56	%			18		18		18
KC Co., Ltd.		5,107		0.17	%			26		26		26
SeongJi Industrial Co.,Ltd.		41		0.05	%			1		1		1
Seyang Precision Ind. Co., Ltd.		829		0.23	%			41		41		41
Dooriwon Food System Co., Ltd.		13		0.27	%			1		1		1
Sung Kwang Co., Ltd.		23		0.37	%			6		6		6
Shinheung petrol. Co., Ltd.		699		0.14	%			35		35		35
Force TEC Co., Ltd.		3,501		0.02	%			18		18		18
Samsung Tech Co., Ltd.		486		1.28	%			97		36		36
Younil Metal Co., Ltd.		41		0.21	%			21		21		21
CJ Paradise Co.,Ltd		24		0.02	%			12		12		12
Han Young Technology Company Co.,Ltd.		35		0.00	%			—		—		—
Ptotronics Co., Ltd.		843		0.42	%			84		6		6
NFT Co., Ltd.		136		0.40	%			8		8		8
Hyundaitech Co.,Ltd.		1,363		0.87	%			27		27		27
Dasan Material Co., Ltd.		29		0.04	%			22		22		22
Fish World Co.,Ltd.		47		0.21	%			2		2		2

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won


SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%	￦		6		—		—
Samdo Industry Electric Co.,Ltd.		48		0.02	%			1		1		1
Taejung Industries Co.,Ltd.		9,268		0.30	%			5		5		5
Shinsei Trading Co., Ltd.		64		0.72	%			6		6		6
Dynamic Co., Ltd.		111		0.19	%			3		3		3
Green Alchemy Co.,Ltd.		38,202		1.48	%			191		17		17
Youone TBM Engineering & Construction Co., Ltd.		615		0.27	%			31		31		31
KM Leatech Co., Ltd.		1,648		0.98	%			8		8		8
Semist Co.,Ltd.		555		0.80	%			3		3		3
Sewon Bus Co.,Ltd		12		0.00	%			—		—		—
Enertec Co., Ltd.		7,937		0.19	%			44		44		44
Sangji Co., Ltd.		20		0.26	%			4		4		4
Bellie Doughnuts Co., Ltd.		169		0.19	%			10		10		10
AIRTECH Information communication Co., Ltd		2,379		0.60	%			12		12		12
Kiscom Co., Ltd.		1,493		0.04	%			1		1		1
Set Holding (*2)		1,100,220		2.50	%			229,255		163,580		163,580
Choheung packing Co.,Ltd.		61		0.13	%			12		12		12
Jaewoo Co., Ltd.		359		0.24	%			11		11		11
Wooyang HC Co., Ltd		1,375		0.01	%			159		13		13
TheYeonriji Co., Ltd.		116		0.10	%			6		6		6
Flusys Co., Ltd.		9		0.08	%			2		2		2
DongSeo Electronics Co., Ltd.		347		0.07	%			17		17		17
Daewoo Display Co., Ltd.		177		0.03	%			5		5		5
NTS Co., Ltd.		143		0.22	%			36		36		36
AID CO., Ltd.		1,212		0.57	%			36		36		36
Changwon Eco-friendly farming Corp.		3		0.01	%			—		—		—
Kumo Hitech Co., Ltd.		6,697		0.53	%			100		32		32
Kyung Pyo Industry Co., Ltd.		186		0.76	%			19		19		19
Doosung Heavy Industries Co., Ltd.		53		0.06	%			5		5		5
Samjoo Hightech Co., Ltd.		522		0.08	%			3		3		3
Samkwang Chemical Co., Ltd.		204		1.27	%			51		51		51
Shinseung Chemical Industy Co., Ltd.		5		0.01	%			60		—		—
KJ Alloy Co., Ltd.		368		0.20	%			7		7		7
SM Hi-tech Co., Ltd.		22		0.39	%			22		22		22
Puruen Environment Co., Ltd.		967		1.34	%			19		19		19
Miretech Co., Ltd.		9,111		0.27	%			18		18		18
Sejin Hightech Co., Ltd.		17,980		0.16	%			18		18		18
Eun Sung Enterprise Co., Ltd.		1,131		0.72	%			17		17		17
Shinyoung Textiles Co., Ltd.		523		1.01	%			52		23		23
Ilwoo Steel Co., Ltd.		41		0.28	%			17		17		17
Dong-un Tech Co., Ltd.		1,159		6.28	%			81		34		34
Wongwang Door Corp.		575		1.00	%			29		29		29
Mansu Co.,Ltd.		344		0.25	%			15		15		15
Eanskorea Co., Ltd.		39		0.05	%			2		2		2
Youngdongseafood Co., Ltd.		165		0.33	%			8		8		8
Hyunwoo Winstar Co., Ltd.		1		0.00	%			—		—		—
Sungchang Tech Co., Ltd.		159		0.31	%			19		19		19
Yuchang Industry Co., Ltd.		90		0.11	%			5		5		5
Jeongpum Co., Ltd.		322		0.35	%			16		16		16
Korea Steel Power Co., Ltd.		2,761		1.88	%			55		2		2
Amanex Co., Ltd.		10		0.02	%			9		9		9
Dae-A Leisure Co., Ltd.		23		0.00	%			4		4		4
Caffe Bene Co.,Ltd.		1,908		0.03	%			9		9		9
Shinjin International Corp.		4		0.01	%			1		1		1

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won



Jinhung Packaging Co.,Ltd		4,329		3.02	%	￦		22		22		22
Donglim Eng Co., Ltd.		26		0.11	%			3		3		3
SIP Co., Ltd.		274		0.55	%			7		7		7
Clizen Co., Ltd.		615		0.34	%			31		31		31
Daeji Product Co., Ltd.		15		0.05	%			1		—		—
SSET Co., Ltd.		181		0.30	%			18		18		18
Sewon PM Tech Co., Ltd.		963		1.11	%			48		48		48
Dawon Yuhwa Co., Ltd.		506		1.94	%			25		25		25
Ogokbaekkwa Co., Ltd.		101		0.12	%			1		1		1
Shinwoo Toptech Co., Ltd.		834		0.51	%			83		6		6
KMLC Co., Ltd.		281		0.14	%			22		22		22
Seinfood Co., Ltd.		13		0.17	%			7		7		7
TaeSung Eco-Tech. Co., Ltd.		1,368		4.55	%			34		34		34
Kukex Inc.		639		0.05	%			3		3		3
Youngshin Plus Co., Ltd.		104		0.12	%			5		5		5
Chang won Engineering Co., Ltd.		22		0.00	%			4		4		4
Samsung Silup Co., Ltd.		47		0.19	%			5		5		5
Samwon Bio Tech Co., Ltd.		390		0.25	%			6		6		6
IZU KOREA Co., Ltd.		48		0.00	%			2		2		2
Dongdo CNP Co., Ltd.		234		0.36	%			6		6		6
Dae Bang Industry Co.,Ltd.		115		0.13	%			6		6		6
S.I.T. Co.,Ltd		2,213		0.44	%			22		22		22
Taejin Hiech Co., Ltd.		78		0.26	%			3		3		3
Headone Co.,Ltd.		69		0.12	%			7		7		7
E-Won Solutech Co., Ltd.		158		0.16	%			40		40		40
KPL Circuit Co., Ltd.		283		0.08	%			14		14		14
Road Solar Co., Ltd.		12		0.00	%			—		—		—
Han Mi Flexible Co.,Ltd.		143		0.20	%			43		43		43
Millennium PNT Co., Ltd.		227		0.37	%			6		6		6
GN Chem Co., Ltd.		40		0.07	%			1		1		1
Dae Myung Co., Ltd.		114		0.08	%			3		3		3
Nanomicart Co., Ltd.		176		1.06	%			35		35		35
Young San Heavy Industries Co., Ltd.		74		0.11	%			7		7		7
Samchungwon Co., Ltd.		15		0.24	%			2		2		2
Wooyang Frozen Foods Co., Ltd.		66		0.82	%			27		27		27
Nanomic Co., Ltd.		94		0.63	%			38		38		38
Samsung Nonferrous Metal Co., Ltd.		89		0.26	%			9		9		9
Daewha Fuel Pump Ind., Ltd.		83		0.05	%			10		10		10
Addies Direct Co., Ltd.		1		0.00	%			—		—		—
WorldCnM Inc.		131		1.09	%			10		10		10
Superone Co., Ltd.		1,585		1.45	%			8		8		8
Buyoung Panji Co., Ltd.		478		0.44	%			12		12		12
International Paint Korea Co., Ltd.		111		0.48	%			11		11		11
EI Lighting Co., Ltd.		358		0.36	%			18		18		18
Hightech Mnp Co., Ltd.		123		0.35	%			6		6		6
Yooseung Co., Ltd.		10		0.08	%			1		1		1
Sungkwang Co., Ltd.		48		0.35	%			2		2		2
Taeyang gasteel Co., Ltd.		8		0.02	%			1		1		1
Ajin KSB Co., Ltd.		204		0.31	%			18		18		18
Sewon Ceramic Co., Ltd.		530		1.01	%			5		5		5
Choyang Tech Co., Ltd.		465		1.01	%			23		23		23
TK Co., Ltd.		307		0.70	%			15		15		15
Arari Co., Ltd.		14		0.05	%			1		1		1

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won




C&S Corporation Co., Ltd.		1,304		0.01	%	￦		13		13		13
Global The One of Korea Co., Ltd.		62		0.06	%			3		3		3
Steellife Co., Ltd.		85		0.06	%			4		4		4
D&C Castech Co., Ltd.		330		1.89	%			25		25		25
Geumhan Co., Ltd.		498		0.24	%			7		7		7
Mokgan Co., Ltd.		5		0.02	%			1		1		1
Wenex Co., Ltd.		373		0.53	%			19		19		19
Sulim Co., Ltd.		30		0.20	%			6		6		6
Shinkwang Engineering		24		0.36	%			2		2		2
Ek Cookware Co., Ltd.		60		0.04	%			1		1		1
KTTW Co., Ltd.		28		0.05	%			2		2		2
Avajar Co., Ltd.		1,061		0.01	%			1		1		1
Woosung I.B. Co.,Ltd		7,071		0.07	%			14		14		14
CAP Korea Co., Ltd.		16		0.30	%			3		3		3
MSM Co., Ltd.		25		0.08	%			—		—		—
Ddpopstyle Co., Ltd.		22		0.14	%			1		1		1
Finemetal Co., Ltd.		49		0.08	%			1		1		1
Sungkyeong Co., Ltd.		52		0.24	%			2		2		2
RMK Co., Ltd.		63		0.90	%			22		22		22
Newko Co., Ltd.		331		0.06	%			10		10		10
Dongsung Mulsan Co., Ltd.		137		0.34	%			14		14		14
Pizzakorea Co., Ltd.		42		0.18	%			9		9		9
Geumdani Co., Ltd.		2,377		1.82	%			36		36		36
Mezzanine I-pack Co., Ltd.		38		0.02	%			1		1		1
Ltop Co., Ltd.		36		0.06	%			7		7		7
Simile Aluminium Co., Ltd.		428		0.31	%			9		9		9
GT Tooling Co., Ltd.		604		0.17	%			6		6		6
Team Korea Co., Ltd.		4,782		0.37	%			24		24		24
Donghwa TCA Co., Ltd.		1,012		0.30	%			25		25		25
Hankook Piaget Co., Ltd.		4		0.01	%			1		1		1
Coco Food Co., Ltd.		648		1.24	%			33		33		33
Woori Industry Co., Ltd.		102		1.05	%			21		21		21
Ssangyong Youngweol Plant Service&Engineering Co., Ltd.		83		0.07	%			4		1		1
SH Co., Ltd.		39		0.20	%			8		8		8
Daeyoung Co., Ltd.		75		0.01	%			8		8		8
Chandown Food Co., Ltd.		46		0.14	%			9		9		9
Getron Co., Ltd.		7,259		0.20	%			37		4		4
Jungmun Co., Ltd.		19		0.26	%			2		2		2
Andong Trading Corporation Co., Ltd.		42		0.00	%			2		2		2
JM Tech Co., Ltd.		403		0.67	%			82		10		10
SGC Energy Co., Ltd.		580,000		5.00	%			2,900		7,856		7,856
Le Soleil KHNP LLC		137,600		19.00	%			1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%			1,500		2,016		2,016
H Robotics Co., Ltd.		903,601		8.05	%			4,000		5,638		5,638
Good Tcells Co., Ltd.		11,364		0.34	%			500		347		347
IPS Bio Co., Ltd.		1,975		3.13	%			1,000		843		843
Nine B Co., Ltd.		5,000		4.96	%			1,000		1,000		1,000

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won





Choigang-gujo Co., Ltd.		61		0.45	%	￦		6		1		1
Youngheung Industry Co., Ltd.		101		0.05	%			5		1		1
Hosungsteel Co., Ltd.		323		0.26	%			14		3		3
Uktae IND. Co., Ltd.		140		0.12	%			7		1		1
JFC Co., Ltd.		16		0.01	%			2		2		2
Hyundai Tech Co., Ltd.		28		0.69	%			10		10		10
Daeil Co., Ltd.		301		0.42	%			15		2		2
Seohan Food Co., Ltd.		83		0.19	%			2		2		2
Daehyeon Recycle Co., Ltd.		59		0.61	%			12		12		12
Metal Link Inc. Co., Ltd.		709		0.17	%			35		4		4
Pipetec Korea Co., Ltd.		50		0.07	%			10		1		1
SungJin Tech Co., Ltd.		803		1.20	%			24		8		8
Yujin E&C Co., Ltd.		29		0.18	%			6		—		—
Daishin Logistics Co., Ltd.		13		0.09	%			1		1		1
JinSung Engineering Co., Ltd.		18		0.30	%			18		18		18
Yongho Industry Co., Ltd.		157		0.22	%			32		1		1
Wow tech Co., Ltd.		369		0.75	%			11		11		11
World Power Tech Co., Ltd.		16		0.28	%			24		24		24
PBM Auto Co., Ltd.		1,001		1.06	%			10		10		10
K2 Motors Co., Ltd.		54		0.28	%			1		1		1
CL Tech Co., Ltd.		801		2.25	%			40		40		40
Mirae Industry Co., Ltd.		39		0.04	%			6		6		6
Gentak Korea Co., Ltd.		301		0.31	%			8		8		8
Sungjin Chemical Co., Ltd.		118		0.36	%			4		4		4
LMAT Co., Ltd.		198		0.04	%			20		20		20
Poong Lim Industrial Co., Ltd.		25		0.00	%			38		38		38
Dae Sung GeoTech Co., Ltd.		631		1.28	%			32		32		32
Saeheemang Co., Ltd.		756		0.60	%			15		15		15
Hakbong Precision Co., Ltd.		1,460		1.18	%			15		15		15
Vornech Co., Ltd.		431		0.37	%			11		2		2
Woojin Formtech Co., Ltd.		76		0.08	%			8		1		1
Korea Engineer Manufacturing Co., Ltd.		114		0.26	%			6		1		1
Sinwa J&K Co., Ltd.		476		0.28	%			5		5		5
Owon E&G Co., Ltd.		132		0.20	%			4		4		4
Guseong Co., Ltd.		141		0.20	%			3		3		3
Irefarm Co., Ltd.		45		0.30	%			3		3		3
Nam-hae E&C Co., Ltd.		117		0.10	%			2		2		2
Haenarae Agricultural Corp.		15		0.03	%			2		2		2
DECO&E Co., Ltd.		1,261		0.00	%			2		2		2
Design Beyond Co., Ltd.		17		0.19	%			2		2		2
LBK Co., Ltd.		8		0.05	%			1		1		1
Duckwon industrial Co., Ltd.		32		0.43	%			13		13		13
ASPT Co., Ltd.		64		0.82	%			19		19		19
SIMA Co., Ltd.		29		0.05	%			3		3		3

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won





Jingkang Resources Co., Ltd.		90		1.57	%	￦		13		13		13
Eslin Co., Ltd.		39		0.14	%			8		8		8
Shinwon Co., Ltd.		275		0.42	%			19		19		19
CIC Tech Co., Ltd.		96		0.54	%			10		10		10
Orano Expansion		5,742,405		4.72	%			—		—		—
Fourever Co., Ltd.		44		0.10	%			4		4		4
Myungil Metal Co., Ltd.		80		0.10	%			4		4		4
Daeshin ECM Co., Ltd.		182		0.30	%			9		9		9
Greencarbon Co., Ltd.		79		0.06	%			1		1		1
Sunkoo Co., Ltd.		4		0.10	%			2		2		2
Jians Construction Co., Ltd.		45		0.01	%			2		4		4
DH trading Co., Ltd.		891		0.04	%			178		—		—
Sangsin Co., Ltd.		29		0.09	%			15		15		15
Steel focus Co., Ltd.		154		0.20	%			4		4		4
Kamada Korea Co., Ltd.		437		0.33	%			22		22		22
Fosys Co., Ltd.		19		0.08	%			4		4		4
GB precision Co., Ltd.		137		0.57	%			1		1		1
Ewon Art Co., Ltd.		185		0.61	%			9		9		9
DI Tech Co., Ltd.		3		0.00	%			—		—		—
Hans AD Co., Ltd.		33		0.35	%			2		2		2
Chaegim Environment Development Co., Ltd.		158		0.01	%			3		3		3
Daesung Stain Co., Ltd.		32		0.32	%			2		2		2
YSM Co., Ltd.		281		2.07	%			14		14		14
Dong In Industry Co., Ltd.		65		0.13	%			3		3		3
U&I Co., Ltd.		50		0.22	%			5		5		5
World One Co., Ltd.		401		0.58	%			10		10		10
Yewon Co., Ltd.		24		0.02	%			1		—		—
TSNT Co., Ltd.		119		0.00	%			24		24		24
Shinsung Tech Co., Ltd.		314		0.01	%			16		16		16
JSL Co., Ltd.		51		0.49	%			3		3		3
Loft Garden Co., Ltd.		1		0.04	%			—		—		—
Handon Co., Ltd.		74		0.25	%			11		11		11
GH Tech Co., Ltd.		82		0.22	%			3		3		3
Daeo Co., Ltd.		13		0.23	%			4		4		4
Bokwang Co., Ltd.		76		0.00	%			15		15		15
Samkum Industry Co., Ltd.		201		0.48	%			40		40		40
Dyntex Korea Co., Ltd.		75		0.28	%			15		15		15
Mirae Engineering Co., Ltd.		66		0.15	%			1		1		1
Mideumeul-juneun-namu Co., Ltd.		119		0.53	%			6		6		6
Seil Textile Co., Ltd.		16		0.15	%			3		3		3
Ilshin Tech Co., Ltd.		36		0.00	%			7		7		7
Magtec Co., Ltd.		28		0.00	%			6		6		6
Sukwon Co., Ltd.		2,885		0.59	%			29		29		29
Hae-sung Metal Co., Ltd.		159		0.17	%			3		3		3
White&Clean Foods Co., Ltd.		330		0.00	%			3		3		3
Michang Cable Co., Ltd.		1,096		0.26	%			16		16		16
G.M Foods Co., Ltd.		57		0.16	%			9		9		9
Wecan Global Inc. Co., Ltd.		165		0.08	%			8		8		8
Daeju Steel Co., Ltd.		11		0.20	%			1		1		1
Hyundai Glass Co., Ltd.		860		0.83	%			43		43		43
MEC Co., Ltd.		16,468		1.17	%			41		41		41
Daeyeoneco Co., Ltd.		151		0.00	%			15		15		15
Hyesung Cable&Communication Inc.		762		0.39	%			38		38		38

F-6

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won





Sangjin Co., Ltd.		428		0.35	%	￦		21		21		21
Topis Co., Ltd.		246		0.71	%			14		14		14
G&L Tech Co., Ltd.		2		0.06	%			—		—		—
Cheonhae Co., Ltd.		72		0.00	%			2		2		2
Iksan-guwon Co., Ltd.		563		0.00	%			11		11		11
Korea Remicon Co., Ltd.		36		0.03	%			5		5		5
New Tech Co., Ltd.		23		0.15	%			2		2		2
Segeon Co., Ltd.		124		0.00	%			4		4		4

MS Tech Co., Ltd.		9		0.15	%			1		1		1
J.I Steel Co., Ltd.		21		0.00	%			2		2		2
HNT Co., Ltd.		172		0.00	%			9		9		9
Taejin Co., Ltd.		27		0.08	%			3		3		3
Macroad Co., Ltd.		953		0.17	%			10		10		10
Woongjin Energy Co., Ltd.		94		0.00	%			9		9		9
Electric Contractors’ Financial Cooperative Co., Ltd.		—		—				39		39		39
Information&Communication Financial Cooperative Co., Ltd.		—		—				15		15		15
Common Computer Co., Ltd.		3,856		1.87	%			1,000		1,000		1,000
Fine Powerex Co., Ltd.		72,633		4.92	%			1,500		1,500		1,500
Eunsung Industrial Co., Ltd.		3		0.03	%			1		1		1
KPE Co., Ltd		51		0.19	%			13		13		13
Dongbangfarms Co., Ltd		904		0.55	%			41		5		5
Sungdo Pack Co., Ltd		15		0.06	%			1		1		1
Coffeenie Co., Ltd		2		0.00	%			1		1		1
Medi Pharma Plan Co., Ltd		1,075		0.26	%			108		8		8
Woori Ascon Co., Ltd		25		0.34	%			10		10		10
Dong Shin Hydraulies Co., Ltd		9,460		0.14	%			47		47		47
Cheonwoo E.P.S Co., Ltd		371		1.10	%			19		19		19
Koa Tech Co., Ltd		1,244		0.77	%			12		12		12
Jinwoo Textile Co., Ltd		91		0.68	%			9		9		9
SKE Cable Co., Ltd		120		0.08	%			6		6		6
Hi Korea Co., Ltd		1,845		1.94	%			185		185		185
Daeheung Engineering Co., Ltd		65		0.01	%			1		1		1
Etapol Co., Ltd		1,361		0.54	%			41		41		41
Yoongwon International Co., Ltd		157		1.47	%			31		31		31
Avoh Ceramic&Bath Co., Ltd		173		0.14	%			3		3		3
Dongyang R.P.F. Industrial Co., Ltd		59		0.03	%			2		2		2
Yuil Engineering Co., Ltd		14		0.03	%			1		1		1
Taesan Co., Ltd		146		0.69	%			35		35		35
Jico Co., Ltd		10,581		0.01	%			26		26		26
K Shipbuilding Co., Ltd.		8,622		0.25	%			1,078		1,078		1,078
Seokjin E&T Co., Ltd.		81		0.06	%			8		8		8
Agencore Co., Ltd		104,350		5.67	%			1,200		1,200		1,200
SamHong Machinery. EMC Co., Ltd		476,192		19.23	%			5,000		5,000		5,000
Thermo Tec Co., Ltd		446		0.03	%			4		4		4
DaeYang Hydro Co., Ltd		6		0.02	%			1		1		1
SangMoo Steel Co., Ltd		24		0.04	%			2		2		2
Jungin Distribution Co., Ltd		17		0.00	%			3		3		3
TheSun Co., Ltd		77		0.06	%			1		1		1
Daedong Co., Ltd		176		0.33	%			18		18		18
Daewoong and Technology Co., Ltd		423		1.14	%			42		42		42
Ebadom Co., Ltd		361		0.21	%			58		58		58
ChoungHwa Precise Co., Ltd		428		0.08	%			43		4		4

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

10.	Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2)	Financial assets at fair value through other comprehensive income as of December 31, 2021 and 2022 are as follows, continued:


	2022
	Shares		Ownership				Acquisition cost		Book value		Fair value

							In millions of won





Snopa Co., Ltd		458		0.01	%	￦		5		5		5
Aloha Factory Co., Ltd		2,970		3.61	%			1,000		1,000		1,000
Dailyshot Co., Ltd		339		1.85	%			1,001		1,001		1,001
Mediquitous Co., Ltd		5,080		0.69	%			1,250		1,250		1,250
SKD Korea Co., Ltd.		40		0.28	%			20		20		20
Samhyup Co., Ltd		376		0.91	%			38		38		38
Gogang Aluminum Co., Ltd		828		1.52	%			41		41		41
Taekwang Paper Board Co., Ltd		133		0.49	%			23		23		23
NY Tech Co., Ltd		33		0.15	%			2		2		2
Sekwang Precision Co., Ltd		394		0.84	%			79		79		79
Dongbang Metal Co., Ltd		1,985		0.32	%			20		20		20
Samwang Co., Ltd		170		0.25	%			17		17		17
Yurim CNF Co., Ltd		15		0.23	%			2		2		2
Guseul Co., Ltd		89		0.23	%			9		9		9
Gaone International Co., Ltd		54		0.29	%			14		14		14
Daekwang Forging Co., Ltd		1,298		1.99	%			130		130		130
Dongyang Pratech Co., Ltd		265		1.21	%			29		29		29
Samjin Placo Co., Ltd		661		0.52	%			33		33		33
MS Steel Industrial Co., Ltd		167		0.40	%			8		8		8
STS Global Co., Ltd		9		0.04	%			1		1		1
Y Tech Co., Ltd		855		0.65	%			34		34		34
CK Industry Co., Ltd		4,178		7.54	%			167		167		167
J&J Tech Co.		14		0.22	%			1		1		1
Shield Board Co., Ltd		165		0.15	%			3		3		3
SFC International Co., Ltd		11		0.01	%			1		1		1
Korea Ocean Machinery & Technology Co.,Ltd.		763		0.45	%			76		76		76
Hana ITM Inc.		8,443		0.70	%			84		84		84
Jeuvis Co., Ltd		191		0.30	%			2		2		2
JBM Co., Ltd		662		0.34	%			20		20		20
Jungwoo Metal Solution Co., Ltd		27		0.08	%			2		2		2
MS Precision Co., Ltd		220		0.16	%			22		22		22
YM Tech Co., Ltd		2		0.01	%			1		1		1
C&C ENG Co., Ltd		439		1.59	%			22		22		22
Minjin Co., Ltd		24		0.01	%			1		1		1
Daejoo E&G Co., Ltd		133		0.00	%			27		27		27
Taeyoung Precision Co., Ltd		31		0.22	%			1		1		1
Shin Heung Precision Co., Ltd		93		4.63	%			4		4		4
TaeGwang P&C Co., Ltd		530		0.90	%			13		13		13
KyeongGwang Tech Co.,Ltd		244		1.04	%			7		7		7

								269,065		202,243		202,243

Debt securities
Aron Flying Ship Co., Ltd. (*1)		—		—				500		529		529

						￦		594,355		502,829		502,829

(*1)

The Company used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2)

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

11.	Financial Assets at Amortized Cost

Financial assets at amortized cost as of December 31, 2021 and 2022 are as follows:


		2021
		Financial assets at amortized cost		Book value

		In millions of won
Government bonds	￦		1,308		1,308
Others			23,965		23,965

	￦		25,273		25,273

Current	￦		15,422		15,422
Non-current			9,851		9,851

		2022
		Financial assets at amortized cost		Book value

		In millions of won
Government bonds	￦		1,920		1,920
Others			25,078		25,078

	￦		26,998		26,998

Current	￦		16,762		16,762
Non-current			10,236		10,236

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives

(1)	Derivatives as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current

		In millions of won
Derivative assets
Currency forward	￦		559		6,899		648		17,432
Currency swap			125,877		506,957		236,470		589,300
—Trading			92,313		335,765		102,080		410,540
—Hedging			33,564		171,192		134,390		178,760
Interest rate swap			502		6,980		52,485		81,188
—Trading			502		6,980		52,485		81,188
—Hedging			—		—		—		—
Others (*3)			—		9		—		40,501

	￦		126,938		520,845		289,603		728,421

Derivative liabilities
Currency forward	￦		301		—		32,660		—
Currency swap			4,446		16,708		6,319		328,995
—Trading			4,446		15,576		6,319		302,415
—Hedging			—		1,132		—		26,580
Interest rate swap			2,544		28,138		—		2,735
—Trading			174		2,829		—		2,735
—Hedging			2,370		25,309		—		—
Others (*1,2,3)			—		25,894		6,015		56,027

	￦		7,291		70,740		44,994		387,757

(*1)

The Company has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’(See note 47).

(*2)

The Company has granted stock option to Chester Solar IV SpA, a joint venture of the Company, and 4 other third party investors, and recognized its fair value as other derivative liabilities.

(*3)

The Company has an obligation to purchase the shares of Hyundai Green Power Co., Ltd., an associate of the Company from financial investors, and the fair value of the obligation is recorded in ‘Others’.

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(2)	Currency forward contracts which are not designated as hedging instruments as of December 31, 2022 are as follows:


Counterparty	Contract date		Maturity date			Contract amounts					Contract exchange rate (in won)
Counterparty	Contract date		Maturity date			Pay		Receive			Contract exchange rate (in won)

	In millions of won and thousands of foreign currencies except contract exchange rate information
Busan Bank		2022.12.08		2023.01.09	￦		9,237		USD 7,000	￦		1,319.50
Woori Bank		2022.12.09		2023.01.06			13,165		USD 10,000			1,316.45
Nonghyup Bank		2022.12.13		2023.01.10			10,430		USD 8,000			1,303.80
Kookmin Bank		2022.12.15		2023.01.16			12,988		USD 10,000			1,298.84
Hana Bank		2022.12.15		2023.01.17			28,632		USD 22,000			1,301.45
Standard Chartered		2022.12.16		2023.01.18			26,141		USD 20,000			1,307.05
Mizuho Bank		2022.12.16		2023.01.19			26,096		USD 20,000			1,304.80
JP Morgan		2022.12.19		2023.01.20			26,080		USD 20,000			1,304.00
Korea Development Bank		2022.12.19		2023.01.26			26,010		USD 20,000			1,300.50
Kookmin Bank		2022.12.19		2023.01.27			25,959		USD 20,000			1,297.93
Busan Bank		2022.12.21		2023.01.25			12,853		USD 10,000			1,285.25
Nonghyup Bank		2022.12.21		2023.01.26			14,134		USD 11,000			1,284.90
Hana Bank		2022.12.27		2023.01.30			18,992		USD 15,000			1,266.15
Standard Chartered		2022.12.28		2023.01.31			15,216		USD 12,000			1,268.00
Morgan Stanley		2022.12.28		2023.02.01			15,205		USD 12,000			1,267.10
Kookmin Bank		2022.12.29		2023.02.02			20,247		USD 16,000			1,265.44
Mizuho Bank		2022.12.29		2023.02.03			20,255		USD 16,000			1,265.95
Kookmin Bank		2022.12.30		2023.02.28			15,128		USD 12,000			1,260.70
Hana Bank		2022.12.06		2023.01.06			13,091		USD 10,000			1,309.05
Mizuho Bank		2022.12.15		2023.01.13			26,001		USD 20,000			1,300.07
MUFG		2022.12.19		2023.01.20			52,054		USD 40,000			1,301.35
MUFG		2022.12.20		2023.01.13			25,952		USD 20,000			1,297.60
MUFG		2022.12.29		2023.01.27			45,605		USD 36,000			1,266.80
Shinhan Bank		2022.11.03		2023.01.09			7,085		USD 5,000			1,417.00
JP Morgan		2022.11.07		2023.01.13			14,012		USD 10,000			1,401.20
JP Morgan		2022.11.25		2023.01.20			6,611		USD 5,000			1,322.10
JP Morgan		2022.12.29		2023.01.05			38,040		USD 30,000			1,268.00
Standard Chartered		2022.12.29		2023.01.05			25,358		USD 20,000			1,267.90
Mizuho Bank		2022.11.09		2023.01.06			13,681		USD 10,000			1,368.10
Nonghyup Bank		2022.12.27		2023.01.16			6,334		USD 5,000			1,266.70
Mizuho Bank		2022.11.11		2023.01.30			5,207		USD 3,842			1,355.05
Mizuho Bank		2022.11.11		2023.01.30			34,001		USD 25,000			1,360.05
Nonghyup Bank		2022.12.21		2023.02.23			3,603		USD 2,806			1,283.70
SMBC		2022.11.30		2023.01.20			USD 10,000		13,153			1,315.30
SMBC		2022.11.30		2023.02.16			USD 15,000		19,783			1,318.85
SMBC		2022.12.26		2023.03.23			USD 8,000		10,173			1,271.60
SMBC		2022.12.29		2023.03.28			USD 15,000		18,933			1,262.20
SMBC		2022.12.29		2023.06.13			USD 15,000		18,872			1,258.10
MUFG		2022.11.25		2023.02.08			13,175		USD 10,000			1,317.50
MUFG		2022.12.12		2023.02.27			33,947		USD 26,000			1,305.64
MUFG		2022.11.24		2023.01.30			13,234		USD 10,000			1,323.40
JP Morgan		2022.11.24		2023.01.30			13,830		USD 10,406			1,329.05
JP Morgan		2022.11.30		2023.01.17			13,163		USD 10,000			1,316.30
HSBC		2022.11.09		2023.01.30			42,627		USD 31,000			1,375.05

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(2)	Currency forward contracts which are not designated as hedging instruments as of December 31, 2022 are as follows, continued:


Counterparty	Contract date		Maturity date			Contract amounts					Contract exchange rate (in won)
Counterparty	Contract date		Maturity date			Pay		Receive			Contract exchange rate (in won)

	In millions of won and thousands of foreign currencies except contract exchange rate information
HSBC		2020.10.19		2024.10.29	￦		140,913		USD 125,000	￦		1,127.30
Busan Bank		2022.10.25		2023.01.13			13,039		USD 9,090			1,434.50
MUFG		2022.10.25		2023.01.13			1,433		USD 1,000			1,433.18
Woori Bank		2022.11.08		2023.02.03			12,332		USD 8,918			1,382.80
Shinhan Bank		2022.11.09		2023.03.03			13,605		USD 10,000			1,360.50
MUFG		2022.11.10		2023.03.03			20,464		USD 15,000			1,364.27
Standard Chartered		2022.11.24		2023.04.07			17,612		USD 13,214			1,332.80
Standard Chartered		2022.12.01		2023.05.12			12,932		USD 10,000			1,293.20
Standard Chartered		2022.12.05		2023.05.12			3,121		USD 2,425			1,286.90
Woori Bank		2022.12.08		2023.05.12			13,145		USD 10,000			1,314.50
HSBC		2022.12.12		2023.06.09			19,482		USD 15,000			1,298.80
Busan Bank		2022.12.12		2023.06.09			19,479		USD 15,000			1,298.60
MUFG		2022.12.15		2023.06.09			19,386		USD 15,000			1,292.41
Shinhan Bank		2022.12.15		2023.06.09			19,397		USD 15,000			1,293.10
Standard Chartered		2022.12.15		2023.06.09			19,397		USD 15,000			1,293.10
HSBC		2022.12.22		2023.06.09			12,695		USD 10,000			1,269.45
Shinhan Bank		2022.12.22		2023.06.09			12,671		USD 10,000			1,267.10

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(3)	Currency swap contracts which are not designated as hedging instruments as of December 31, 2022 are as follows:


	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won, USD)
Counterparty	Contract year			Pay		Receive		Pay	Receive		Contract exchange rate (in won, USD)

	In millions of won and thousands of foreign currencies except contract exchange rate information
Standard Chartered		2014~2029	￦		102,470		USD 100,000	3.14%	3.57%	￦		1,024.70
Societe Generale		2014~2024			105,017		USD 100,000	4.92%	5.13%			1,050.17
Hana Bank		2015~2024			107,970		USD 100,000	4.75%	5.13%			1,079.70
Credit Agricole		2015~2024			94,219		USD 86,920	4.85%	5.13%			1,083.97
Woori Bank		2019~2027			21,708		USD 19,417	5.04%	6.75%			1,118.00
Woori Bank		2019~2024			296,000		USD 250,000	1.21%	2.50%			1,184.00
Korea Development Bank		2019~2024			177,600		USD 150,000	1.24%	2.50%			1,184.00
Hana Bank		2019~2024			118,400		USD 100,000	1.24%	2.50%			1,184.00
Woori Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%			1,206.60
Korea Development Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%			1,206.60
Kookmin Bank		2020~2025			120,660		USD 100,000	0.54%	1.13%			1,206.60
Kookmin Bank		2020~2026			76,355		USD 70,445	5.83%	6.00%			1,083.90
Woori Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
Korea Development Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
Hana Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
Hana Bank		2022~2025			385,800		USD 300,000	3.11%	3.63%			1,286.00
Woori Bank		2022~2025			257,200		USD 200,000	3.12%	3.63%			1,286.00
JP Morgan		2022~2027			128,600		USD 100,000	3.56%	4.00%			1,286.00
Woori Bank		2022~2027			128,600		USD 100,000	3.56%	4.00%			1,286.00
Kookmin Bank		2022~2027			128,600		USD 100,000	3.56%	4.00%			1,286.00
Korea Development Bank		2022~2026			283,820		USD 200,000	4.67%	5.38%			1,419.10
Hana Bank		2022~2026			141,910		USD 100,000	4.68%	5.38%			1,419.10
JP Morgan		2022~2026			141,910		USD 100,000	4.69%	5.38%			1,419.10
Woori Bank		2022~2026			141,910		USD 100,000	4.69%	5.38%			1,419.10
Korea Development Bank		2022~2028			283,820		USD 200,000	5.12%	5.50%			1,419.10
Woori Bank		2022~2028			141,910		USD 100,000	5.13%	5.50%			1,419.10
Nomura		2015~2025			111,190		USD 100,000	2.60%	3.25%			1,111.90
Korea Development Bank		2015~2025			111,190		USD 100,000	2.62%	3.25%			1,111.90
Woori Bank		2015~2025			55,595		USD 50,000	2.62%	3.25%			1,111.90
Hana Bank		2015~2025			55,595		USD 50,000	2.62%	3.25%			1,111.90
Woori Bank		2017~2027			111,610		USD 100,000	2.25%	3.13%			1,116.10
Korea Development Bank		2017~2027			111,610		USD 100,000	2.31%	3.13%			1,116.10
Hana Bank		2017~2027			111,610		USD 100,000	2.31%	3.13%			1,116.10
Korea Development Bank		2018~2028			108,600		HKD 800,000	2.69%	3.35%			135.75
Shinhan Bank		2018~2028			115,387		HKD 850,000	2.66%	3.35%			135.75
Korea Development Bank		2018~2023			170,280		USD 150,000	2.15%	3.75%			1,135.20
Woori Bank		2018~2023			170,280		USD 150,000	2.18%	3.75%			1,135.20
Hana Bank		2018~2023			113,520		USD 100,000	2.17%	3.75%			1,135.20
Shinhan Bank		2018~2023			227,040		USD 200,000	2.17%	3.75%			1,135.20
Korea Citi Bank		2019~2024			239,956		CHF 200,000	1.44%	0.00%			1,199.78
Korea Development Bank		2019~2027			119,978		CHF 100,000	1.43%	0.05%			1,199.78
Woori Bank		2021~2026			222,800		USD 200,000	0.93%	1.25%			1,114.00
Shinhan Bank		2021~2026			111,400		USD 100,000	0.92%	1.25%			1,114.00
Korea Development Bank		2021~2026			111,400		USD 100,000	0.93%	1.25%			1,114.00
Nonghyup Bank		2021~2026			111,400		USD 100,000	0.93%	1.25%			1,114.00

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(3)	Currency swap contracts which are not designated as hedging instruments as of December 31, 2022 are as follows, continued:


	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won, USD)
Counterparty	Contract year			Pay		Receive		Pay	Receive		Contract exchange rate (in won, USD)

	In millions of won and thousands of foreign currencies except contract exchange rate information
Woori Bank		2022~2027	￦		262,000		USD 200,000	3.62%	4.25%	￦		1,310.00
Export-Import Bank of Korea		2022~2027			131,000		USD 100,000	3.63%	4.25%			1,310.00
Kookmin Bank		2022~2027			131,000		USD 100,000	3.62%	4.25%			1,310.00
Hana Bank		2022~2027			131,000		USD 100,000	3.61%	4.25%			1,310.00
Korea Development Bank		2022~2027			262,000		USD 200,000	3.63%	4.25%			1,310.00
Export-Import Bank of Korea		2022~2032			349,829		HKD 1,935,000	4.87%	5.16%			180.79
JP Morgan		2022~2032			75,194		HKD 415,000	5.00%	5.16%			181.19
HSBC		2019~2024			USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%			USD 0.69

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(4)	Currency swap contracts which are designated as hedging instruments as of December 31, 2022 are as follows:


Counterparty	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won)
Counterparty	Contract year			Pay		Receive		Pay	Receive		Contract exchange rate (in won)

	In millions of won and thousands of foreign currencies except contract exchange rate information
Kookmin Bank		2020~2025	￦		118,780		USD 100,000	1.29%	2.13%	￦		1,187.80
Shinhan Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Hana Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Korea Development Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Hana Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Woori Bank		2020~2026			118,910		USD 100,000	0.62%	1.00%			1,189.10
Nomura		2017~2037			52,457		EUR 40,000	2.60%	1.70%			1,311.42
Nomura		2017~2037			59,423		SEK 450,000	2.62%	2.36%			132.05
Kookmin Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Korea Development Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Hana Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Korea Development Bank		2022~2027			123,710		USD 100,000	3.41%	3.63%			1,237.10
Woori Bank		2022~2027			123,710		USD 100,000	3.41%	3.63%			1,237.10
JP Morgan		2022~2027			123,710		USD 100,000	3.41%	3.63%			1,237.10
Korea Development Bank		2018~2023			320,880		USD 300,000	2.03%	3.75%			1,069.60
BNP Paribas		2019~2024			111,841		CHF 100,000	1.78%	0.13%			1,118.41
Kookmin Bank		2019~2024			111,841		CHF 100,000	1.78%	0.13%			1,118.41
Korea Development Bank		2022~2025			128,560		USD 100,000	3.37%	4.13%			1,285.60
Woori Bank		2022~2025			128,560		USD 100,000	3.37%	4.13%			1,285.60
Kookmin Bank		2022~2025			128,560		USD 100,000	3.37%	4.13%			1,285.60
Woori Bank		2021~2026			220,600		USD 200,000	0.47%	0.75%			1,103.00
Shinhan Bank		2021~2026			220,600		USD 200,000	0.47%	0.75%			1,103.00
Hana Bank		2021~2026			55,150		USD 50,000	0.48%	0.75%			1,103.00
Korea Development Bank		2018~2023			169,335		USD 150,000	2.26%	3.88%			1,128.90
Woori Bank		2018~2023			169,335		USD 150,000	2.26%	3.88%			1,128.90
Credit Agricole		2018~2023			112,890		USD 100,000	2.26%	3.88%			1,128.90
Hana Bank		2018~2023			56,445		USD 50,000	2.26%	3.88%			1,128.90
Kookmin Bank		2018~2023			56,445		USD 50,000	2.26%	3.88%			1,128.90
Woori Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Hana Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Korea Development Bank		2020~2025			122,780		USD 100,000	0.93%	1.75%			1,227.80
JP Morgan		2022~2025			126,180		USD 100,000	2.80%	3.60%			1,261.80
Hana Bank		2022~2025			126,180		USD 100,000	2.80%	3.60%			1,261.80
Korea Development Bank		2022~2025			252,360		USD 200,000	2.83%	3.60%			1,261.80
Woori Bank		2022~2025			126,180		USD 100,000	2.85%	3.60%			1,261.80

F-7

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(5)	Interest rate swap contracts which are not designated as hedging instruments as of December 31, 2022 are as follows:


Counterparty	Contract year		Contract amount		Contract interest rate per annum
Counterparty	Contract year		Contract amount		Pay	Receive
			In millions of won
Nomura (*1)		2018~2038		30,000	2.56%	3.75%
Hana Bank		2018~2023		200,000	2.15%	3M CD + 0.19%
Hana Bank		2018~2023		200,000	2.17%	3M CD + 0.19%
Hana Bank		2018~2023		150,000	2.03%	3M CD + 0.21%
Hana Bank		2019~2024		200,000	1.87%	3M CD + 0.13%
Shinhan Bank		2021~2025		100,000	2.32%	3M CD + 0.43%
Hana Bank		2022~2027		200,000	3.02%	3M CD + 0.61%
Hana Bank		2022~2027		200,000	3.04%	3M CD + 0.58%
Hana Bank		2022~2027		250,000	3.38%	3M CD + 0.59%
Nomura		2022~2027		200,000	3.55%	3M CD + 0.60%
Shinhan Bank		2022~2027		150,000	3.53%	3M CD + 0.55%
Hana Bank		2022~2027		200,000	3.70%	3M CD + 0.59%
Nomura		2022~2027		300,000	3.89%	3M CD + 0.67%
Hana Bank		2022~2027		200,000	3.93%	3M CD + 0.67%
Nomura		2022~2027		200,000	3.80%	3M CD + 0.68%
Nomura		2022~2027		300,000	4.04%	3M CD + 0.60%
Hana Bank		2022~2027		100,000	4.68%	3M CD + 1.04%
Hana Bank		2022~2027		100,000	5.45%	3M CD + 1.20%
Nomura		2017~2032		52,457	3M Libor + 2.22%	2.60%
Nomura		2017~2032		59,423	3M Libor + 2.24%	2.62%
Nomura (*2)		2021~2041		30,000	1.84%	2.60%
Nomura (*3)		2021~2041		50,000	1.87%	2.38%
ANZ		2022 - 2025		AUD 540	0.48%	3.33%
DBS Bank		2022 - 2025		AUD 540	0.48%	3.33%
Societe Generale		2022 - 2025		AUD 540	0.48%	3.28%

(*1)

2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(*2)

1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(*3)

1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(6)	Interest rate swap contracts which are designated as hedging instruments as of December 31, 2022 are as follows:

Counterparty

Contract
year

Contract amount

Contract interest rate per annum

Pay

Receive

In thousands of USD

Export-Import Bank of Korea

2015~2031

USD 15,893

2.67%

6M USD Libor

ING Bank

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2015~2031

USD 7,861

2.67%

6M USD Libor

BNP Paribas

2009~2027

USD 51,891

4.16%

6M USD Libor

KFW

2009~2027

USD 51,891

4.16%

6M USD Libor

Export-Import Bank of Korea

2016~2036

USD 66,124

3.00%

6M USD Libor

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

12.	Derivatives, Continued

(7)	Gain and loss on valuation and transaction of derivatives for the years ended December 31, 2020, 2021 and 2022 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):


		Net income effects of valuation gain (loss)									Net income effects of transaction gain (loss)									Other comprehensive income (loss) (*)
		2020			2021			2022			2020			2021			2022			2020		2021			2022

		In millions of won
Currency forward	￦		(40,590	)		33,066			(20,570	)		(17,911	)		33,032			(2,710	)		—		—			—
Currency swap			(406,607	)		787,264			155,937			93,557			61,353			234,195			105,642		(59,108	)		(102,969	)
- Trading			(108,090	)		420,551			(77,618	)		16,661			16,265			104,572			—		—			—
- Hedging			(298,517	)		366,713			233,555			76,896			45,088			129,623			105,642		(59,108	)		(102,969	)
Interest rate swap			(1,845	)		18,123			66,341			(10,253	)		(10,303	)		(6,800	)		5,578		18,648			37,917
- Trading			(309	)		18,123			66,341			(11,975	)		(10,303	)		(6,800	)		—		—			—
- Hedging			(1,536	)		—			—			1,722			—			—			5,578		18,648			37,917
Other derivatives			(6,673	)		(15,459	)		22,510			—			—			—			—		—			—

	￦	(455,715)			822,994			224,218			65,393			84,082			224,685			111,220		(40,460)			(65,052)

(*)

For the year ended December 31, 2022, the net loss on valuation of derivatives applying cash flow hedge accounting of ￦24,415 million, net of tax, is included in other comprehensive income (loss).

13.	Other Financial Assets

(1)	Other financial assets as of December 31, 2021 and 2022 are as follows:


			2021						2022
			Current			Non-current			Current			Non-current
			In millions of won
Loans	￦			88,406			903,397			132,890			968,468
Less: Allowance for doubtful accounts				(10	)		(52,667	)		(13	)		(54,824	)
Less: Present value discount				(807	)		(29,248	)		(816	)		(32,334	)

				87,589			821,482			132,061			881,310

Long-term / short-term financial instruments				1,278,014			450,494			666,758			686,322

		￦		1,365,603			1,271,976			798,819			1,567,632

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

13.	Other Financial Assets, Continued

(2)	Loans as of December 31, 2021 and 2022 are as follows:


		2021
		Face value		Allowance for doubtful accounts			Present value discount			Carrying value
		In millions of won
Short-term loans
Loans for tuition	￦		28,975		—			(807	)		28,168
Loans for housing			25,750		—			—			25,750
Other loans			33,681		(10	)		—			33,671

			88,406		(10	)		(807	)		87,589

Long-term loans
Loans for tuition			431,002		(37,783	)		(29,248	)		363,971
Loans for housing			282,833		—			—			282,833
Loans for related parties			150,541		(14,861	)		—			135,680
Fisheries loan			203		—			—			203
Other loans			38,818		(23	)		—			38,795

			903,397		(52,667	)		(29,248	)		821,482

	￦		991,803		(52,677	)		(30,055	)		909,071


		2022
		Face value		Allowance for doubtful accounts			Present value discount			Carrying value
		In millions of won
Short-term loans
Loans for tuition	￦		30,261		—			(816	)		29,445
Loans for housing			29,630		—			—			29,630
Other loans			72,999		(13	)		—			72,986

			132,890		(13	)		(816	)		132,061

Long-term loans
Loans for tuition			436,131		(37,783	)		(32,334	)		366,014
Loans for housing			309,446		—			—			309,446
Loans for related parties			187,728		(17,041	)		—			170,687
Other loans			35,163		—			—			35,163

			968,468		(54,824	)		(32,334	)		881,310

	￦		1,101,358		(54,837	)		(33,150	)		1,013,371

F-8

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

13.	Other Financial Assets, Continued

(3)	Changes in the allowance for doubtful accounts of loans for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Beginning balance	￦		15,094		20,267		52,677
Bad debt expense			5,173		30,942		2,180
Other			—		1,468		(20	)

Ending balance	￦		20,267		52,677		54,837

(4)	Long-term and short-term financial instruments as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current
		In millions of won
Time deposits	￦		976,899		103,607		428,813		130,570
CD			—		—		30,000		—
Others			301,115		346,887		207,945		555,752

	￦		1,278,014		450,494		666,758		686,322

14.	Inventories

Inventories as of December 31, 2021 and 2022 are as follows:


		2021
		Acquisition cost		Valuation allowance			Book value
		In millions of won
Raw materials	￦		3,655,588		(1,247	)		3,654,341
Merchandises			512		—			512
Work-in-progress			180,220		—			180,220
Finished goods			27,254		—			27,254
Supplies			2,541,028		(3,869	)		2,537,159
Inventories-in-transit			1,195,148		—			1,195,148
Other inventories			13,548		—			13,548

	￦		7,613,298		(5,116	)		7,608,182


		2022
		Acquisition cost		Valuation allowance			Book value
		In millions of won
Raw materials	￦		4,522,171		(1,350	)		4,520,821
Merchandises			1,001		—			1,001
Work-in-progress			172,089		(75	)		172,014
Finished goods			52,642		(57	)		52,585
Supplies			2,814,377		—			2,814,377
Inventories-in-transit			2,356,444		—			2,356,444
Other inventories			13,490		—			13,490

	￦		9,932,214		(1,482	)		9,930,732

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

14.	Inventories, Continued

The reversal of the allowance for loss on inventory valuation deducted from the cost of sales for the years ended December 31,

2020,

2021 and 2022 amounts to

￦

2,020 million,

￦11,422 million and ￦18,162 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the years ended December 31,

2020,

2021 and 2022 were

￦

4,998 million,

￦7,761 million and ￦14,528 million, respectively.

15.	Non-Financial Assets

Non-financial

assets as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current
		In millions of won
Advanced payments	￦		161,466		124,305		160,596		51,425
Prepaid expenses			756,729		151,095		366,532		153,830
Others (*)			840,796		89,418		1,217,741		103,879

	￦		1,758,991		364,818		1,744,869		309,134

(*)

Details of others as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current
		In millions of won
Greenhouse gas emissions rights	￦		524,658		—		192,005		—
Other quick assets			316,138		89,418		1,025,736		103,879

	￦		840,796		89,418		1,217,741		103,879

F-8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries

(1)	Consolidated subsidiaries as of December 31, 2021 and 2022 are as follows:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2021			2022
Korea Hydro & Nuclear Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea South-East Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Midland Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Western Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Southern Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea East-West Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KEPCO Engineering & Construction Company, Inc.(*1)	Engineering and construction for utility plant and others	Korea		65.77	%		65.77	%
KEPCO Plant Service & Engineering Co., Ltd.	Utility plant maintenance and others	Korea		51.00	%		51.00	%
KEPCO Nuclear Fuel Co., Ltd.	Nuclear fuel	Korea		96.36	%		96.36	%
KEPCO KDN Co., Ltd.	Electric power information technology and others	Korea		100.00	%		100.00	%
KEPCO International HongKong Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO International Philippines Inc.	Holding company	Philippines		100.00	%		100.00	%
KEPCO Gansu International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO Philippines Holdings Inc.(*11)	Holding company	Philippines		100.00	%		100.00	%
KEPCO Philippines Corporation	Operation of utility plant	Philippines		100.00	%		100.00	%
KEPCO Ilijan Corporation	Construction and operation of utility plant	Philippines		51.00	%		51.00	%
KEPCO Lebanon SARL	Operation of utility plant	Lebanon		100.00	%		100.00	%
KEPCO Neimenggu International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO Shanxi International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KOMIPO Global Pte Ltd.	Holding company	Singapore		100.00	%		100.00	%
KEPCO Netherlands B.V.	Holding company	Netherlands		100.00	%		100.00	%
KEPCO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSEP Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KEPCO Middle East Holding Company	Holding company	Bahrain		100.00	%		100.00	%
Qatrana Electric Power Company	Construction and operation of utility plant	Jordan		80.00	%		80.00	%
KHNP Canada Energy Ltd.	Holding company	Canada		100.00	%		100.00	%
KEPCO Bylong Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
Korea Waterbury Uranium Limited Partnership	Resources development	Canada		80.00	%		80.00	%
KEPCO Holdings de Mexico	Holding company	Mexico		100.00	%		100.00	%
KST Electric Power Company, S.A.P.I. de C.V.	Construction and operation of utility plant	Mexico		56.00	%		56.00	%
KEPCO Energy Service Company	Operation of utility plant	Mexico		100.00	%		100.00	%
KEPCO Netherlands S3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
PT. KOMIPO Pembangkitan Jawa Bali	Operation of utility plant	Indonesia		51.00	%		51.00	%
PT. Cirebon Power Service(*2)	Operation of utility plant	Indonesia		27.50	%		27.50	%
KOWEPO International Corporation	Operation of utility plant	Philippines		99.99	%		99.99	%
KOSPO Jordan LLC	Operation of utility plant	Jordan		100.00	%		100.00	%
EWP America Inc.	Holding company	USA		100.00	%		100.00	%
EWP Renewable Corporation	Holding company	USA		100.00	%		100.00	%
KNF Canada Energy Limited	Holding company	Canada		100.00	%		100.00	%
EWP Barbados 1 SRL	Holding company	Barbados		100.00	%		100.00	%
California Power Holdings, LLC	Power generation	USA		100.00	%		100.00	%
Gyeonggi Green Energy Co., Ltd.	Power generation	Korea		62.01	%		62.01	%
PT. Tanggamus Electric Power	Power generation	Indonesia		52.50	%		52.50	%
Gyeongju Wind Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KOMIPO America Inc.	Holding company	USA		100.00	%		100.00	%
EWPRC Biomass Holdings, LLC	Holding company	USA		100.00	%		—
PT. EWP Indonesia	Holding company	Indonesia		99.96	%		99.96	%
KEPCO Netherlands J3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
Korea Offshore Wind Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Global One Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Global Energy Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Mira Power Limited(*3)	Power generation	Pakistan		76.00	%		76.00	%
KOSEP Material Co., Ltd.	Recycling fly ashes	Korea		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd.(*4)	RDF power generation	Korea		85.03	%		85.03	%
KEPCO KPS Philippines Corp.	Utility plant maintenance and others	Philippines		99.99	%		99.99	%

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of December 31, 2021 and 2022 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2021			2022
KOSPO Chile SpA	Holding company	Chile		100.00	%		100.00	%
PT. KOWEPO Sumsel Operation And Maintenance Services	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
Hee Mang Sunlight Power Co., Ltd.	Operation of utility plant	Korea		100.00	%		100.00	%
Fujeij Wind Power Company	Operation of utility plant	Jordan		100.00	%		100.00	%
KOSPO Youngnam Power Co., Ltd.(*5)	Operation of utility plant	Korea		50.00	%		50.00	%
Chitose Solar Power Plant LLC	Power generation	Japan		65.00	%		65.00	%
KEPCO Energy Solution Co., Ltd.	Energy service	Korea		100.00	%		100.00	%
KEPCO Solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KOSPO Power Services Ltda.	Utility plant maintenance and others	Chile		65.00	%		65.00	%
Energy New Industry Specialized Investment Private Investment Trust	Holding company	Korea		99.01	%		99.01	%
KOEN Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
EWP Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Lao International	Utility plant maintenance and others	Laos		100.00	%		100.00	%
KEPCO US Inc.	Holding company	USA		100.00	%		100.00	%
KEPCO Alamosa LLC	Holding company	USA		50.10	%		—
KEPCO Solar of Alamosa LLC	Power generation	USA		100.00	%		—
KEPCO Mangilao Holdings LLC	Holding company	USA		100.00	%		100.00	%
Mangilao Investment LLC	Holding company	USA		100.00	%		80.06	%
KEPCO Mangilao Solar, LLC	Power generation	USA		100.00	%		100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	Korea		79.03	%		79.03	%
PT. Siborpa Eco Power	Construction and operation of utility plant	Indonesia		55.00	%		55.00	%
BSK E-New Industry Fund VII	Holding company	Korea		81.67	%		81.67	%
e-New Industry LB Fund 1	Holding company	Korea		76.11	%		76.11	%
Songhyun e-New Industry Fund	Holding company	Korea		80.65	%		80.65	%
BSK E-New Industry Fund X	Holding company	Korea		66.80	%		66.80	%
PT. Korea Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KOLAT SpA	Utility plant maintenance and others	Chile		100.00	%		100.00	%
KEPCO California, LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mojave Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Incheon Fuel Cell Co., Ltd.	Power generation	Korea		60.00	%		60.00	%
KOEN Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOMIPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOWEPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
EWP Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
PT. KOMIPO Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KNF Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO USA Inc.	Holding company	USA		100.00	%		100.00	%
Nambu USA LLC	Holding company	USA		100.00	%		100.00	%
Tamra Offshore Wind Power Co., Ltd.	Power generation	Korea		63.00	%		63.00	%
KEPCO MCS Co., Ltd.	Electric meter reading and others	Korea		100.00	%		100.00	%
KEPCO FMS Co., Ltd.	Security service and others	Korea		100.00	%		100.00	%
Firstkeepers Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Secutec Co., Ltd.	Security service	Korea		100.00	%		100.00	%
SE Green Energy Co., Ltd.	Power generation	Korea		84.80	%		84.80	%
KEPCO Mangilao America LLC	Holding company	USA		100.00	%		—
Mangilao Intermediate Holdings LLC	Holding company	USA		100.00	%		100.00	%
KEPCO CSC Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOAK Power Limited	Hydro power facility maintenance	Pakistan		100.00	%		100.00	%
KOMIPO Europe B.V.	Holding company	Netherlands		100.00	%		100.00	%
Haenanum Energy Fund	Holding company	Korea		99.64	%		99.64	%
Paju Ecoenergy Co., Ltd.	Power generation	Korea		89.00	%		89.00	%
Guam Ukudu Power LLC	Power generation	USA		100.00	%		100.00	%
K-SOLAR SHINAN Co., Ltd. (formerly, TS Energy No. 25 Co., Ltd.)	Power generation	Korea		90.00	%		90.00	%
KPS Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%

F-8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of December 31, 2021 and 2022 are as follows, continued:


			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2021			2022
KEPCO E&C Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Moha solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Ogiri Solar Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KHNP USA LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Vanphong Power Service LLC	Utility plant maintenance and others	Vietnam		100.00	%		100.00	%
Energy Innovation Fund I	Holding company	Korea		71.91	%		71.91	%
KHNP Chile SpA	Holding company	Chile		100.00	%		100.00	%
Yeong Yang Apollon Photovoltaic Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Corporation Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
SolarVader Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Innovation Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Horus Photovoltaic Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Yeong Yang Solar Management Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
LSG Hydro Power Limited	Holding company	Pakistan		99.80	%		99.80	%
KOEN Bio Co., Ltd.	Wood pellet utilization business	Korea		70.00	%		70.00	%
KOMIPO Energy Solution America, LLC	Holding company	USA		100.00	%		100.00	%
Elara Investment Holdings, LLC(*6)	Holding company	USA		0.10	%		0.10	%
Elara Equity Holdings, LLC	Holding company	USA		54.00	%		54.00	%
Elara Class B Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Elara Class B Member, LLC	Holding company	USA		100.00	%		100.00	%
Elara Development Holdings, LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Development, LLC (formerly, Elara Development, LLC)	Holding company	USA		100.00	%		100.00	%
Elara Energy Holdings, LLC(*6)	Holding company	USA		43.94	%		43.94	%
Elara Energy Project, LLC	Power generation	USA		100.00	%		100.00	%
KOMIPO Iberian Solar Group, S.L.U.	Holding company	Spain		100.00	%		100.00	%
Jeongam Wind Power Co., Ltd.	Power generation	Korea		80.00	%		80.00	%
KOWEPO Europe B.V.	Holding company	Netherlands		100.00	%		100.00	%
CVS Equity Holdings, LLC	Holding company	USA		100.00	%		81.34	%
CVS Class B Holdings, LLC	Holding company	USA		100.00	%		100.00	%
CVS Development Holdings, LLC	Holding company	USA		100.00	%		100.00	%
CVS Development, LLC	Holding company	USA		100.00	%		100.00	%
CVS Class B Member, LLC	Holding company	USA		100.00	%		100.00	%
CVS Energy Holdings, LLC	Holding company	USA		100.00	%		70.79	%
Concho Valley Energy, LLC	Holding company	USA		100.00	%		100.00	%
Concho Valley Solar, LLC	Power generation	USA		100.00	%		100.00	%
Yeongdeok Sunrise Wind Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KHNP Spain, S.L.	Holding company	Spain		100.00	%		100.00	%
UI Carbon-Neutrality Fund	Holding company	Korea		—			78.97	%
KA Power Limited	Power generation	Pakistan		—			100.00	%
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)(*7)	Power generation	Korea		—			100.00	%
EWP Australia Pty., Ltd.	Holding company	Australia		—			100.00	%
Columboola Solar Farm Hold Co Pty., Ltd.(*8)	Power generation	Australia		—			74.04	%
Digital Innovation Growth Fund(*9)	Holding company	Korea		—			76.92	%
J Wind First, LLC(*10)	Company specializing in liquidization	Korea		—			—
KEPCO Holding Company	Holding company	Saudi Arabia		—			100.00	%
KEPCO for Power Company	Power generation	Saudi Arabia		—			60.00	%
KEPCO for Maintenance Company	Utility plant maintenance and others	Saudi Arabia		—			100.00	%
KOSPO Trumbull LLC	Holding company	USA		—			100.00	%
Changjuk Wind Power Co., Ltd.(*9)	Power generation	Korea		—			73.00	%

(*1)	Considering treasury stocks, the effective percentage of ownership is 66.08%. The Company is planning to sell part of its shares (14.77%) based on the resolution of the board of directors on June 24, 2022.

(*2)	The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Company obtained the majority of the voting power under the shareholders’ agreement.

(*3)	As of the reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited.

F-8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(1)	Consolidated subsidiaries as of December 31, 2021 and 2022 are as follows, continued:

(*4)

The Company guarantees a certain return on investment related to Commerce and Industry Energy Co., Ltd. for the financial investors. The financial investors have a right to sell their shares to the Company which can be exercised 36 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability.

(*5)	The subsidiary is included in the consolidated financial statements as the Company owns 50%+1 stake and has the ability to appoint a majority of the board members under the shareholders’ agreement.

(*6)	The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Company has control over the board of directors under the shareholders’ agreement.

(*7)	For the year ended December 31, 2022, the Company included Western Power Changgi Solar Co., Ltd. as a subsidiary, considering that it acquired control over the entity after the entity undertook selective reduction of capital.

(*8)	Excluding preferred stocks, the percentage of ownership with voting rights is 100%.

(*9)	The entity was transferred from an associate to a subsidiary due to changes in the consolidated scope during the year ended December 31, 2022.

(*10)

Although the Company does not hold a stake as of December 31, 2022, considering the purpose and design of the structured entity, the Company is exposed to volatility in the profits of the structured entity. In addition, Group has the ability to direct activities that can most significantly affect the operations of the structured entity, so it has been determined that the Company has control over the entity.

(*11)

The Company is planning to sell its investment in KEPCO Philippines Holdings Inc., but time or proceeds of sales are not specified as of December 31, 2022.

(2)	Subsidiaries newly included in and excluded from consolidation for the year ended December 31, 2022 are as follows:

Subsidiaries included in consolidation during the year ended December 31, 2022.


Subsidiaries		Reason
UI Carbon-Neutrality Fund		Newly established
KA Power Limited		Newly established
Seobusambo highway photovoltaics Co., Ltd.		Newly established
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)		Change in the scope of consolidation
EWP Australia Pty., Ltd.		Newly established
Columboola Solar Farm Hold Co Pty., Ltd.		New investment
Digital Innovation Growth Fund		Change in the scope of consolidation
J Wind First, LLC		Newly established
KEPCO Holding Company		Newly established
KEPCO for Power Company		Newly established
KEPCO for Maintenance Company		Newly established
KOSPO Trumbull LLC		Newly established
Changjuk Wind Power Co., Ltd.		Change in the scope of consolidation

Subsidiaries excluded from consolidation during the year ended December 31, 2022.


Subsidiaries		Reason
EWPRC Biomass Holdings, LLC		Liquidation
KEPCO Solar of Alamosa LLC		Disposal
KEPCO Alamosa LLC		Liquidation
KEPCO Mangilao America LLC		Liquidation
Seobusambo highway photovoltaics Co., Ltd.		Change in the scope of consolidation

F-8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows:


2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		64,638,690		38,361,337		9,324,391		302,232
Korea South-East Power Co., Ltd.			11,487,325		6,510,826		5,188,856		(58,096	)
Korea Midland Power Co., Ltd.			13,761,908		9,912,907		5,353,915		60,737
Korea Western Power Co., Ltd.			10,822,780		7,116,671		4,970,805		(171,562	)
Korea Southern Power Co., Ltd.			11,350,984		7,099,881		5,671,989		(113,352	)
Korea East-West Power Co., Ltd.			9,895,739		5,163,005		4,743,030		10,872
KEPCO Engineering & Construction Company, Inc.			705,043		191,592		433,127		16,452
KEPCO Plant Service & Engineering Co., Ltd.			1,420,705		311,607		1,375,668		98,132
KEPCO Nuclear Fuel Co., Ltd.			837,249		405,614		323,729		25,799
KEPCO KDN Co., Ltd.			721,634		189,242		673,261		67,244
KEPCO International HongKong Ltd.			128,968		—		—		341
KEPCO International Philippines Inc.			154,317		482		—		8,766
KEPCO Gansu International Ltd.			7,151		559		—		(25	)
KEPCO Philippines Holdings Inc.			191,757		128		—		60,192
KEPCO Philippines Corporation			6,122		19		—		(68	)
KEPCO Ilijan Corporation			259,069		38,555		60,532		12,981
KEPCO Lebanon SARL			1,729		9,794		—		(86	)
KEPCO Neimenggu International Ltd.			241,299		3,106		—		16,762
KEPCO Shanxi International Ltd.			551,407		207,844		—		3,526
KOMIPO Global Pte Ltd.			302,340		1,351		—		11,462
KEPCO Netherlands B.V.			133,610		866		—		5,395
KEPCO Australia Pty., Ltd.			481		11		—		25
KOSEP Australia Pty., Ltd.			44,798		5,561		22,013		8,268
KOMIPO Australia Pty., Ltd.			54,162		5,648		22,013		5,942
KOWEPO Australia Pty., Ltd.			54,564		4,766		22,013		7,387
KOSPO Australia Pty., Ltd.			43,886		4,502		22,013		5,940
KEPCO Middle East Holding Company			104,068		89,756		—		1,144
Qatrana Electric Power Company			480,809		262,725		21,368		19,156
KHNP Canada Energy Ltd.			109,326		25		—		29
KEPCO Bylong Australia Pty., Ltd.			44,319		394,349		—		(37,065	)
Korea Waterbury Uranium Limited Partnership			20,920		159		—		(57	)
KEPCO Holdings de Mexico			148		27		—		(8	)
KST Electric Power Company, S.A.P.I. de C.V.			584,625		435,796		151,467		18,499
KEPCO Energy Service Company			2,500		956		12,070		574
KEPCO Netherlands S3 B.V.			51,045		150		—		3,199
PT. KOMIPO Pembangkitan Jawa Bali			13,499		3,314		18,296		885
PT. Cirebon Power Service			2,545		631		8,664		505
KOWEPO International Corporation			—		10		—		—
KOSPO Jordan LLC			33,782		16,298		9,698		816
EWP America Inc.(*1)			46,687		1,278		18,335		6,807
KNF Canada Energy Limited			2,101		17		—		(43	)
EWP Barbados 1 SRL			354,024		1,172		2,861		16,168
Gyeonggi Green Energy Co., Ltd.			243,977		224,132		93,794		(5,588	)
PT. Tanggamus Electric Power			212,161		167,409		2,903		3,017
Gyeongju Wind Power Co., Ltd.			96,937		60,702		15,289		3,132
KOMIPO America Inc.(*2)			329,986		56,325		1,715		(1,311	)
PT. EWP Indonesia			47,031		1,226		—		4,615
KEPCO Netherlands J3 B.V.			151,478		172		—		27,365
Korea Offshore Wind Power Co., Ltd.			359,393		188,507		36,020		3,820
Global One Pioneer B.V.			119		116		—		(132	)
Global Energy Pioneer B.V.			293		131		—		(147	)

F-8

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Mira Power Limited	￦		424,183		311,459		70,287		34,018
KOSEP Material Co., Ltd.			3,405		842		4,518		442
Commerce and Industry Energy Co., Ltd.			85,315		35,543		30,531		1,345
KEPCO KPS Philippines Corp.			8,051		3,652		9,768		1,493
KOSPO Chile SpA			142,956		56,688		—		(851	)
PT. KOWEPO Sumsel Operation And Maintenance Services			116		259		—		—
Hee Mang Sunlight Power Co., Ltd.			6,242		3,272		499		47
Fujeij Wind Power Company			200,783		169,340		—		14,739
KOSPO Youngnam Power Co., Ltd.			393,745		292,765		318,770		6,339
Chitose Solar Power Plant LLC			125,578		109,470		16,630		1,794
KEPCO Energy Solution Co., Ltd.			317,676		4,938		21,423		3,104
KEPCO Solar Co., Ltd.			231,567		22,229		11,305		2,014
KOSPO Power Services Ltda.			8,007		5,800		21,133		(356	)
Energy New Industry Specialized Investment Private Investment Trust(*3)			336,932		28,536		19,405		11,116
KOEN Bylong Pty., Ltd.			8		86		—		—
KOMIPO Bylong Pty., Ltd.			8		86		—		(8	)
KOWEPO Bylong Pty., Ltd.			8		86		—		(18	)
KOSPO Bylong Pty., Ltd.			73		168		—		(20	)
EWP Bylong Pty., Ltd.			8		54		—		—
KOWEPO Lao International			12,974		70		8,543		5,681
KEPCO US Inc.			17,601		—		—		—
KEPCO Alamosa LLC			34,100		297		124		(62	)
KEPCO Solar of Alamosa LLC			57,104		41,953		8,008		(742	)
KEPCO Mangilao Holdings LLC			28,504		32,501		—		(556	)
Mangilao Investment LLC			43,459		29		—		(14	)
KEPCO Mangilao Solar, LLC			206,018		166,095		—		(865	)
Jeju Hanlim Offshore Wind Co., Ltd.			41,325		5,139		—		(2,893	)
PT. Siborpa Eco Power			11,306		—		—		(105	)
PT. Korea Energy Indonesia			1,917		215		1,681		37
KOLAT SpA			28,349		849		180		(464	)
KEPCO California, LLC			43,732		4,113		1,310		160
KEPCO Mojave Holdings, LLC			95,294		71,358		—		(4,254	)
Incheon Fuel Cell Co., Ltd.			268,100		236,901		54,188		8,738
KOEN Service Co., Ltd.			8,963		6,557		35,190		2,326
KOMIPO Service Co., Ltd.			4,384		4,475		32,323		(96	)
KOWEPO Service Co., Ltd.			7,289		5,869		31,700		303
KOSPO Service Co., Ltd.			5,762		4,990		26,257		31
EWP Service Co., Ltd.			5,483		5,455		24,957		14
PT. KOMIPO Energy Indonesia			2,996		395		2,077		106
KNF partners Co., Ltd.			1,800		969		5,664		152
KOSPO USA Inc.			286,081		293		—		968
Nambu USA LLC			277,698		—		—		568
Tamra Offshore Wind Power Co., Ltd.			146,736		106,961		21,731		5,168
KEPCO MCS Co., Ltd.			80,277		39,139		349,116		19,043
KEPCO FMS Co., Ltd.			17,188		15,577		94,210		214
Firstkeepers Co., Ltd.			17,152		16,041		77,189		19
Secutec Co., Ltd.			13,176		10,662		65,963		1,774
SE Green Energy Co., Ltd.			153,105		119,461		38,867		4,025
KEPCO Mangilao America LLC			2,173		1		—		—
Mangilao Intermediate Holdings LLC			220,690		205,421		—		(6,975	)
KEPCO CSC Co., Ltd.			8,093		6,799		41,854		(2,101	)
KOAK Power Limited			14,363		393		—		(551	)

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
KOMIPO Europe B.V.	￦		70,431		97		402		(503	)
Haenanum Energy Fund			7,463		3		40		(74	)
Paju Ecoenergy Co., Ltd.			57,795		2,118		15,425		2,234
Guam Ukudu Power LLC			30,133		30,438		—		(2,030	)
K-SOLAR SHINAN Co., Ltd. (formerly, TS Energy No. 25 Co., Ltd.)			353,324		318,977		421		(7,525	)
KPS Partners Co., Ltd.			2,809		1,529		9,520		323
KEPCO E&C Service Co., Ltd.			4,054		1,889		15,985		1,242
Moha solar Co., Ltd.			32,808		33,933		48		(706	)
Ogiri Solar Power Co., Ltd.			1,041		1		—		9
KHNP USA LLC			766		10		1,001		267
KOMIPO Vanphong Power Service LLC			3,758		860		3,853		958
Energy Innovation Fund I			22,616		3,202		—		(888	)
KHNP Chile SpA			5,294		3,879		—		17
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,775		1,632		5		(30	)
Yeong Yang Corporation Co., Ltd.			1,776		1,623		9		(19	)
SolarVader Co., Ltd.			1,772		1,627		—		(26	)
Yeong Yang Innovation Co., Ltd.			1,773		1,622		5		(21	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,771		1,624		9		(24	)
Yeong Yang Solar Management Co., Ltd.			1,774		1,625		—		(23	)
LSG Hydro Power Limited			1		—		—		—
KOEN Bio Co., Ltd.			394		199		51		(305	)
KOMIPO Iberian Solar Group, S.L.U.			70,993		56,707		—		1,354
Jeongam Wind Power Co., Ltd.			86,853		74,267		10,476		1,027
KOWEPO Europe B.V.			39,973		1,449		—		(744	)
Yeongdeok Sunrise Wind Power Co., Ltd.			21,252		768		—		(116	)
KHNP Spain, S.L.			5		—		—		—

(*1)

Financial information of EWP America Inc. includes that of three other subsidiaries, EWP Renewable Corporation, California Power Holdings, LLC and EWPRC Biomass Holdings, LLC.

(*2)

Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

(*3)

Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of four other subsidiaries, BSK

E-New

Industry Fund VII,

e-New

Industry LB Fund 1, Songhyun

e-New

Industry Fund and BSK

E-New

Industry Fund X.

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		69,129,625		42,843,974		10,386,091		(16,382	)
Korea South-East Power Co., Ltd.			13,855,071		7,410,881		8,972,991		71,662
Korea Midland Power Co., Ltd.			16,062,605		10,776,943		8,629,165		(58,173	)
Korea Western Power Co., Ltd.			13,459,054		8,125,312		8,112,727		106,361
Korea Southern Power Co., Ltd.			14,011,354		8,296,983		9,304,362		(68,315	)
Korea East-West Power Co., Ltd.			12,079,954		5,818,789		6,925,094		2,888
KEPCO Engineering & Construction Company, Inc.			815,533		272,119		505,291		17,954
KEPCO Plant Service & Engineering Co., Ltd.			1,555,453		344,702		1,425,913		97,881
KEPCO Nuclear Fuel Co., Ltd.			949,455		490,215		304,405		31,508
KEPCO KDN Co., Ltd.			734,439		166,272		739,453		42,584
KEPCO International HongKong Ltd.			128,784		—		—		(216	)
KEPCO International Philippines Inc.			127,744		101		—		9,976
KEPCO Gansu International Ltd.			7,125		598		—		(22	)
KEPCO Philippines Holdings Inc.			191,634		129		—		39,346
KEPCO Philippines Corporation			3,799		14		—		102
KEPCO Ilijan Corporation			231,132		3,642		23,263		16,455
KEPCO Lebanon SARL			1,890		10,482		—		20
KEPCO Neimenggu International Ltd.			269,582		3,917		—		9,938
KEPCO Shanxi International Ltd.			597,635		222,186		—		(11,312	)
KOMIPO Global Pte Ltd.			388,071		1,817		—		58,030
KEPCO Netherlands B.V.			137,454		64		—		8,570
KEPCO Australia Pty., Ltd.			579		11		—		102
KOSEP Australia Pty., Ltd.			74,180		13,097		52,271		24,443
KOMIPO Australia Pty., Ltd.			81,216		10,327		52,272		23,368
KOWEPO Australia Pty., Ltd.			81,696		10,184		52,271		22,745
KOSPO Australia Pty., Ltd.			41,872		10,174		52,271		24,362
KEPCO Middle East Holding Company			116,731		102,054		—		(634	)
Qatrana Electric Power Company			513,277		247,027		24,354		22,578
KHNP Canada Energy Ltd.			107,200		6,218		—		149
KEPCO Bylong Australia Pty., Ltd.			44,034		437,852		—		(45,880	)
Korea Waterbury Uranium Limited Partnership			20,934		224		—		(116	)
KEPCO Holdings de Mexico			728		1,974		—		(1,363	)
KST Electric Power Company, S.A.P.I. de C.V.			653,830		528,315		232,893		23,122
KEPCO Energy Service Company			2,238		2,173		7,015		(211	)
KEPCO Netherlands S3 B.V.			71,326		16,419		—		4,465
PT. KOMIPO Pembangkitan Jawa Bali			15,753		3,232		22,488		3,668
PT. Cirebon Power Service			2,316		784		9,602		355
KOWEPO International Corporation			—		10		—		—
KOSPO Jordan LLC			22,854		6,964		45,009		7,657
EWP America Inc.(*1)			47,775		2,595		21,717		4,337
KNF Canada Energy Limited			2,116		34		—		(59	)
EWP Barbados 1 SRL			395,067		901		3,230		34,260
Gyeonggi Green Energy Co., Ltd.			220,414		226,517		112,524		(26,004	)
PT. Tanggamus Electric Power			227,638		163,106		3,781		5,778
Gyeongju Wind Power Co., Ltd.			98,513		55,579		24,888		9,711
KOMIPO America Inc.(*2)			571,200		317,903		34,059		(3,293	)
PT. EWP Indonesia			93,390		5		—		4,100
KEPCO Netherlands J3 B.V.			135,213		63		—		19,396
Korea Offshore Wind Power Co., Ltd.			376,449		192,335		52,526		13,083
Global One Pioneer B.V.			135		41		—		(68	)
Global Energy Pioneer B.V.			320		40		—		(64	)
Mira Power Limited			416,750		310,529		57,135		12,394
KOSEP Material Co., Ltd.			3,985		662		4,589		775
Commerce and Industry Energy Co., Ltd.			79,172		32,147		31,068		(3,730	)
KEPCO KPS Philippines Corp.			5,294		600		5,232		1,004
KOSPO Chile SpA			159,500		70,037		—		(2,811	)
PT. KOWEPO Sumsel Operation And Maintenance Services			25		252		—		(94	)

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Hee Mang Sunlight Power Co., Ltd.	￦		5,877		2,606		862		304
Fujeij Wind Power Company			213,113		163,690		—		16,564
KOSPO Youngnam Power Co., Ltd.			425,000		312,831		568,224		10,878
Chitose Solar Power Plant LLC			109,964		94,366		14,384		1,615
KEPCO Energy Solution Co., Ltd.			317,392		6,147		33,638		138
KEPCO Solar Co., Ltd.			243,221		25,405		24,778		9,305
KOSPO Power Services Ltda.			6,722		4,762		17,911		(358	)
Energy New Industry Specialized Investment Private Investment Trust(*3)			451,762		4,338		24,725		7,093
KOEN Bylong Pty., Ltd.			11		119		—		(12	)
KOMIPO Bylong Pty., Ltd.			11		122		—		(33	)
KOWEPO Bylong Pty., Ltd.			8		94		—		(7	)
KOSPO Bylong Pty., Ltd.			25		148		—		(17	)
EWP Bylong Pty., Ltd.			8		54		—		1
KOWEPO Lao International			8,248		87		10,010		11,185
KEPCO US Inc.			91		—		—		(19,181	)
KEPCO Mangilao Holdings LLC			112,948		40,558		21,743		21,166
Mangilao Investment LLC			258,674		4		—		(1	)
KEPCO Mangilao Solar, LLC			240,736		373		8,870		(14,818	)
Jeju Hanlim Offshore Wind Co., Ltd.			185,357		111,343		—		(3,546	)
PT. Siborpa Eco Power			12,050		3		—		(39	)
PT. Korea Energy Indonesia			1,675		80		1,937		(104	)
KOLAT SpA			48,787		3,701		1,647		1,888
KEPCO California, LLC			46,151		4,768		596		(670	)
KEPCO Mojave Holdings, LLC			95,550		75,846		—		(4,705	)
Incheon Fuel Cell Co., Ltd.			268,063		242,176		107,193		(5,323	)
KOEN Service Co., Ltd.			9,353		7,035		36,340		356
KOMIPO Service Co., Ltd.			6,597		4,503		35,031		905
KOWEPO Service Co., Ltd.			6,266		3,130		34,031		171
KOSPO Service Co., Ltd.			6,672		5,048		28,321		60
EWP Service Co., Ltd.			3,756		2,507		24,526		581
PT. KOMIPO Energy Indonesia			2,978		368		1,698		83
KNF partners Co., Ltd.			2,285		1,053		5,997		293
KOSPO USA Inc.			315,018		430		—		5,024
Nambu USA LLC			297,516		—		—		670
Tamra Offshore Wind Power Co., Ltd.			133,598		93,639		18,332		5,316
KEPCO MCS Co., Ltd.			114,316		52,241		363,627		8,468
KEPCO FMS Co., Ltd.			16,852		11,667		105,339		2,176
Firstkeepers Co., Ltd.			16,448		12,912		84,620		2,482
Secutec Co., Ltd.			12,578		9,209		69,383		690
SE Green Energy Co., Ltd.			149,189		114,241		49,873		1,304
Mangilao Intermediate Holdings LLC			236,266		116,426		—		(4,709	)
KEPCO CSC Co., Ltd.			10,668		8,937		46,559		(2,134	)
KOAK Power Limited			12,626		839		—		49
KOMIPO Europe B.V.			81,364		54		1,195		1,134
Haenanum Energy Fund			7,416		3		—		(48	)
Paju Ecoenergy Co., Ltd.			61,930		3,066		20,718		1,290
Guam Ukudu Power LLC			293,422		323,292		—		(31,410	)
K-SOLAR SHINAN Co., Ltd. (formerly, TS Energy No. 25 Co., Ltd.)			320,227		296,141		16,980		3,690
KPS Partners Co., Ltd.			3,619		2,007		12,417		487
KEPCO E&C Service Co., Ltd.			5,676		1,897		16,180		1,493
Moha solar Co., Ltd.			29,096		31,359		169		(1,137	)
Ogiri Solar Power Co., Ltd.			1,033		23		—		(30	)
KHNP USA LLC			1,290		97		1,127		392
KOMIPO Vanphong Power Service LLC			15,940		3,333		20,233		9,871
Energy Innovation Fund I			35,310		445		—		(961	)
KHNP Chile SpA			5,547		4,147		—		(16	)
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,566		1,507		254		(82	)

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(3)	Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Yeong Yang Corporation Co., Ltd.	￦		1,559		1,497		251		(91	)
SolarVader Co., Ltd.			1,568		1,500		256		(78	)
Yeong Yang Innovation Co., Ltd.			1,557		1,497		244		(91	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,552		1,498		243		(93	)
Yeong Yang Solar Management Co., Ltd.			1,573		1,500		262		(75	)
LSG Hydro Power Limited			1,144		1,159		—		(18	)
KOEN Bio Co., Ltd.			261		219		639		(150	)
KOMIPO Iberian Solar Group, S.L.U.			78,094		65,012		—		(1,304	)
Jeongam Wind Power Co., Ltd.			81,800		68,317		10,722		892
KOWEPO Europe B.V.			42,865		2,422		—		1,668
Yeongdeok Sunrise Wind Power Co., Ltd.			42,187		22,031		—		(328	)
KHNP Spain, S.L.			3		—		—		(1	)
KA Power Limited			3,937		418		—		442
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.)			48,770		44,647		3,447		(354	)
EWP Australia Pty., Ltd.			51,105		—		—		15,203
Columboola Solar Farm Hold Co Pty., Ltd.			310,271		214,792		2,228		2,884
Digital Innovation Growth Fund			12,594		100		—		(363	)
J Wind First, LLC			33,611		33,611		450		—
KEPCO Holding Company			3,273		17		—		(18	)
KEPCO for Power Company			57,501		58,441		—		(960	)
KEPCO for Maintenance Company			—		—		—		—
KOSPO Trumbull LLC			37		3		—		—
Changjuk Wind Power Co., Ltd.			29,208		3,137		9,027		3,503

(*1)

Financial information of EWP America Inc. includes that of two other subsidiaries, EWP Renewable Corporation, and California Power Holdings, LLC.

(*2)

Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

(*3)

Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of five other subsidiaries, BSK

E-New

Industry Fund VII,

e-New

Industry LB Fund 1, Songhyun

e-New

Industry Fund, BSK

E-New

Industry Fund X, and UI Carbon-Neutrality Fund.

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(4)	Significant restrictions on abilities to subsidiaries are as follows:


Company		Nature and extent of any significant restrictions
Gyeonggi Green Energy Co., Ltd.		Acquisition or disposal of assets of more than ￦35 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Company.

KOSPO Youngnam Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied, or prior written consent of financial institutions is obtained. Group’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.

Jeongam Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied, and payments to the contracting party may be restricted depending on the financial management priority of the contract. Group’s shares cannot be wholly or partially transferred without prior consent of other stakeholders including shareholders or financial institutions.

Incheon Fuel Cell Co., Ltd.		Acquisition or disposal of assets of more than ￦20 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Company.

Gyeongju Wind Power Co., Ltd.		Dividends and settlement amounts for O&M and renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Korea Offshore Wind Power Co., Ltd.		Principals and interest payments on subordinated loans or dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Jeju Hanlim Offshore Wind Co., Ltd.		Prior approval from the lender is required when withdrawing funds (major expenditure, REC settlement, dividend payment, etc.) according to the loan agreement.

Yeongdeok Sunrise Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Columboola Solar Farm Hold Co Pty., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

(5)	As of December 31, 2022, the Company has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:


Company		Unrecognized Commitments

Jeongam Wind Power Co., Ltd.		When the Company requests other shareholders to transfer shares after the completion of the power generation complex, the Company has a right to purchase the shares at fair value.

Changjuk Wind Power Co., Ltd.		When other shareholders want to sell their shares after the performance guarantee period of wind power generators stipulated in the equipment supply contract is completed, the Company has an obligation to purchase the shares at fair value after consulting with the parties on the timing and size of the acquisition, taking in to account financial conditions, business conditions, and other circumstances.

Columboola Solar Farm Hold Co Pty., Ltd.		The Company holds a call option to purchase the shares held by another shareholder at 80 % of the stock’s valuation in the event of a breach of obligation specified in the shareholder agreement.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(6)	Details of non-controlling interests prior to intra-Company eliminations as of and for the years ended December 31, 2020, 2021 and 2022 are as follows:


2020
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total

		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		236,602			755,454			235,805			801,813			2,029,674
Non-current assets			85,464			590,403			463,439			3,499,258			4,638,564
Current liabilities			(12,322	)		(254,495	)		(186,296	)		(414,673	)		(867,786	)
Non-current liabilities			(34,912	)		(42,020	)		(13,873	)		(2,511,848	)		(2,602,653	)
Net assets			274,832			1,049,342			499,075			1,374,550			3,197,799
Book value of non-controlling interests			134,668			514,177			169,286			552,519			1,370,650
Sales			81,400			1,299,186			431,723			956,692			2,769,001
Profit for the period			39,443			85,916			20,160			107,661			253,180
Profit for the period attributable to non-controlling interests			19,327			42,099			6,838			33,342			101,606
Cash flows from operating activities			121,835			74,159			15,225			240,987			452,206
Cash flows from investing activities			7,561			26,748			(34,333	)		(661,820	)		(661,844	)
Cash flows from financing activities before dividends to non-controlling interests			(31,793	)		(47,809	)		(9,165	)		371,448			282,681
Dividends to non-controlling interests			(30,319	)		(42,336	)		(4,000	)		(4,643	)		(81,298	)
Effect of exchange rate fluctuation			(8,153	)		(2,171	)		(22	)		(7,893	)		(18,239	)
Net increase (decrease) of cash and cash equivalents			59,131			8,591			(32,295	)		(61,921	)		(26,494	)


2021
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		234,224			793,995			253,958			1,030,049			2,312,226
Non-current assets			24,845			626,710			451,085			3,838,233			4,940,873
Current liabilities			(30,783	)		(265,017	)		(183,100	)		(599,373	)		(1,078,273	)
Non-current liabilities			(7,772	)		(46,590	)		(8,492	)		(2,666,345	)		(2,729,199	)
Net assets			220,514			1,109,098			513,451			1,602,564			3,445,627
Book value of non-controlling interests			108,052			543,458			174,163			720,761			1,546,434
Sales			60,532			1,375,668			433,127			1,286,002			3,155,329
Profit for the year			12,981			98,132			16,452			128,264			255,829
Profit for the year attributable to non-controlling interests			6,361			48,085			5,581			28,914			88,941
Cash flows from operating activities			116,440			133,160			(16,270	)		303,577			536,907
Cash flows from investing activities			2,216			(39,444	)		19,061			(309,447	)		(327,614	)
Cash flows from financing activities before dividends to non-controlling interests			(88,927	)		(30,599	)		(8,467	)		125,685			(2,308	)
Dividends to non-controlling interests			—			(25,269	)		(3,639	)		(2,608	)		(31,516	)
Effect of exchange rate fluctuation			10,683			885			38			7,243			18,849
Net increase (decrease) of cash and cash equivalents			40,412			38,733			(9,277	)		124,450			194,318

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(6)	Details of non-controlling interests prior to intra-Company eliminations as of and for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:


2022
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total

		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		230,031			861,705			372,031			1,147,973			2,611,740
Non-current assets			1,101			693,748			443,502			4,942,229			6,080,580
Current liabilities			(3,642	)		(316,497	)		(243,796	)		(841,521	)		(1,405,456	)
Non-current liabilities			—			(28,205	)		(28,323	)		(2,944,145	)		(3,000,673	)
Net assets			227,490			1,210,751			543,414			2,304,536			4,286,191
Book value of non-controlling interests			111,470			593,268			184,326			565,796			1,454,860
Sales			23,263			1,425,913			505,291			1,709,390			3,663,857
Profit for the year			16,455			97,881			17,954			91,566			223,856
Profit for the year attributable to non-controlling interests			8,063			47,962			6,090			(24,370	)		37,745
Cash flows from operating activities			68,475			81,419			4,918			231,653			386,465
Cash flows from investing activities			22,604			27,372			18,712			(747,507	)		(678,819	)
Cash flows from financing activities before dividends to non-controlling interests			(9,609	)		(33,187	)		(7,260	)		582,580			532,524
Dividends to non-controlling interests			(8,834	)		(26,438	)		(3,071	)		(4,001	)		(42,344	)
Effect of exchange rate fluctuation			8,807			(486	)		5			(11,023	)		(2,697	)
Net increase of cash and cash equivalents			81,443			48,680			13,304			51,702			195,129

(7)	Changes in goodwill

(i)

Details of goodwill as of December 31, 2021 and 2022 are as follows:


		2021		2022
		In millions of won
Acquisition cost	￦		105,647		100,093
Less: Accumulated impairment			—		—

Carrying book value	￦		105,647		100,093

(ii)

Changes in goodwill for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning		Increase		Decrease		Others			Ending
		In millions of won
Acquisition cost	￦		98,166		7,481		—		—			105,647
Less: Accumulated impairment			—		—		—		—			—

Carrying book value	￦		98,166		7,481		—		—			105,647


		2022
		Beginning		Increase		Decrease		Others			Ending
		In millions of won
Acquisition cost	￦		105,647		—		—		(5,554	)		100,093
Less: Accumulated impairment			—		—		—		—			—

Carrying book value	￦		105,647		—		—		(5,554	)		100,093

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

16.	Consolidated Subsidiaries, Continued

(8)	Disposals of subsidiaries

The Company has completed the liquidation process of EWPRC Biomass Holdings, LLC, KEPCO Alamosa LLC, and KEPCO Mangilao America LLC, and has disposed of shares of KEPCO Solar of Alamosa LLC during the year ended December 31, 2022. The Company had completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1, KOSEP USA, Inc., and Korea Imouraren Uranium Investment Corp. and had disposed of shares of DG Fairhaven Power, LLC during the year ended December 31, 2021.

(9)	Cash dividends received from subsidiaries for the years ended December 31, 2020, 2021 and 2022, respectively, are as follows:


Subsidiaries		2020		2021		2022
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		106,675		279,779		136,010
Korea South-East Power Co., Ltd.			11,905		—		4,808
Korea Midland Power Co., Ltd.			—		—		24,694
Korea East-West Power Co., Ltd.			17,959		—		4,866
KEPCO Engineering & Construction Company, Inc.			7,793		7,089		5,983
KEPCO Plant Service & Engineering Co., Ltd.			44,068		26,301		27,517
KEPCO Nuclear Fuel Co., Ltd.			7,270		5,206		11,184
KEPCO KDN Co., Ltd.			14,720		18,854		36,986
KEPCO Energy Solution Co., Ltd.			—		—		1,707
KEPCO Solar Co., Ltd.			—		—		1,409
KEPCO International HongKong Ltd.			11,858		—		9,044
KEPCO Philippines Corporation			—		—		2,375
KEPCO Ilijan Corporation			34,502		7,955		9,195
KEPCO Philippines Holdings Inc.			70,876		60,520		34,913
KOSEP Australia Pty., Ltd.			1,856		—		—
KOSPO Australia Pty., Ltd.			—		3,095		31,386
KEPCO Netherlands B.V.			11,098		—		16,795
Qatrana Electric Power Company			—		2,615		2,751
KEPCO KPS Philippines Corp.			1,215		—		302
Tamra Offshore Wind Power Co., Ltd.			2,640		—		2,877
KEPCO Netherlands S3 B.V.			6,981		—		4,005
PT. KOMIPO Pembangkitan Jawa Bali			—		153		859
PT. EWP Indonesia			—		—		4,262
Gyeongju Wind Power Co., Ltd.			2,800		2,800		2,100
VI Carbon Professional Private Special Asset Investment Trust 1			7		—		—
KOSPO Power Services Limitada			—		—		305
KEPCO Netherlands J3 B.V.			—		27,237		46,510
PT. Cirebon Power Service			221		—		241
Chitose Solar Power Plant LLC			858		—		639
Fujeij Wind Power Company			6,306		11,920		15,102
KOSPO Jordan LLC			535		731		11,450
EWP America Inc.			—		—		3,887
KOWEPO Lao International			—		—		12,106
Energy Innovation Fund I			19		—		—

	￦		362,162		454,255		466,268

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows:


2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Gas Corporation(*1)	Importing and wholesaling LNG	Korea		20.47	%	￦		94,500		1,815,513
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others	Korea		29.00	%			4,727		24,617
YTN Co., Ltd.	Broadcasting	Korea		21.43	%			59,000		51,828
Gangwon Wind Power Co., Ltd.(*2)	Power generation	Korea		15.00	%			5,725		10,554
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service	Korea		29.00	%			88,885		121,955
Korea Power Exchange(*3)	Management of power market and others	Korea		100.00	%			127,839		269,728
Taebaek Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,810		6,800
Taebaek Guinemi Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,420		3,357
Pyeongchang Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,875		5,411
Daeryun Power Co., Ltd.(*2)	Power generation	Korea		9.34	%			40,854		25,426
Changjuk Wind Power Co., Ltd.	Power generation	Korea		30.00	%			3,801		8,355
KNH Solar Co., Ltd.	Power generation	Korea		27.00	%			1,296		2,278
SPC Power Corporation	Power generation	Philippines		38.00	%			20,635		65,046
Gemeng International Energy Co., Ltd.	Power generation	China		34.00	%			413,153		595,218
PT. Cirebon Electric Power	Power generation	Indonesia		27.50	%			40,365		121,969
KNOC Nigerian East Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		—
KNOC Nigerian West Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		—
PT Wampu Electric Power	Power generation	Indonesia		46.00	%			21,292		35,077
PT. Bayan Resources TBK	Resources development	Indonesia		20.00	%			615,860		661,289
S-Power Co., Ltd.	Power generation	Korea		49.00	%			132,300		122,786
Pioneer Gas Power Limited	Power generation	India		38.50	%			49,831		—
Eurasia Energy Holdings	Power generation and resources development	Russia		40.00	%			461		—
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation	Laos		25.00	%			87,426		92,441
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal	Indonesia		29.00	%			2,978		2,569
Samcheok Eco Materials Co., Ltd.(*5)	Recycling fly ashes	Korea		2.35	%			686		—
Noeul Green Energy Co., Ltd.	Power generation	Korea		29.00	%			1,740		3,808
Goseong Green Power Co., Ltd.	Power generation	Korea		29.00	%			262,740		260,858
Gangneung Eco Power Co., Ltd.(*2)	Power generation	Korea		1.61	%			2,900		2,288
Shin Pyeongtaek Power Co., Ltd.	Power generation	Korea		40.00	%			72,000		93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Power generation	Korea		28.00	%			194		223
Dongducheon Dream Power Co., Ltd.(*6)	Power generation	Korea		33.61	%			148,105		74,198
Jinbhuvish Power Generation Pvt. Ltd.(*2)	Power generation	India		5.16	%			9,000		—
Daejung Offshore Wind Power Co., Ltd.	Power generation	Korea		46.59	%			5,190		1,704
GS Donghae Electric Power Co., Ltd.	Power generation	Korea		34.00	%			204,000		243,772
Daegu Photovoltaic Co., Ltd.	Power generation	Korea		29.00	%			1,230		2,342
Busan Green Energy Co., Ltd.	Power generation	Korea		29.00	%			5,243		5,032
Gunsan Bio Energy Co., Ltd.(*2)	Power generation	Korea		18.87	%			1,000		—
Korea Electric Vehicle Charging Service(*2)	Electric vehicle charge service	Korea		17.50	%			2,800		1,250
Hansuwon KNP Co., Ltd.	Electric material agency	Korea		28.98	%			537		219
Korea Electric Power Corporation Fund(*7)	Developing electric enterprises	Korea		98.09	%			48,410		47,983
Energy Infra Asset Management Co., Ltd.(*2)	Asset management	Korea		9.90	%			297		1,066
Daegu clean Energy Co., Ltd.	Renewable power generation	Korea		28.00	%			140		12
YaksuESS Co., Ltd.	Installing ESS related equipment	Korea		29.00	%			210		716
Nepal Water & Energy Development Company Private Limited(*8)	Construction and operation of utility plant	Nepal		69.06	%			70,228		66,333
Gwangyang Green Energy Co., Ltd.	Power generation	Korea		20.00	%			26,800		25,466
PND Solar Co., Ltd.	Power generation	Korea		29.00	%			1,250		1,229
Hyundai Eco Energy Co., Ltd.(*2)	Power generation	Korea		19.00	%			3,610		5,572
YeongGwang Yaksu Wind Electric Co., Ltd.(*2)	Power generation	Korea		9.63	%			533		233
Green Energy Electricity Generation Co., Ltd.	Power generation	Korea		29.00	%			1,189		1,713

F-9

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Energy Solutions Co., Ltd.	R & D	Korea		20.00	%	￦		300		123
ITR Co., Ltd.	R & D	Korea		20.00	%			50		32
Structure test network Co., Ltd.	Technical testing and consulting	Korea		20.00	%			25		306
Namjeongsusang Solar Power Operation Co., Ltd.(*9)	Power generation	Korea		15.00	%			969		361
Indeck Niles Development, LLC(*10)	Power generation	USA		56.25	%			268,113		246,273
Indeck Niles Asset Management, LLC	Power generation	USA		33.33	%			—		111
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Holding company	Korea		49.00	%			7,112		7,138
Suwon New Power Co., Ltd.	Power generation	Korea		39.90	%			798		1,035
KPGE Inc.	Power generation materials business	Korea		29.00	%			287		309
Gwangbaek Solar Power Investment Co., Ltd.	Power generation	Korea		44.00	%			4,757		4,806
Go deok Clean Energy Co., Ltd.	Fuel cell generation	Korea		40.00	%			5,560		4,302
SureDataLab Co., Ltd.	R & D	Korea		23.95	%			126		128
SEP Co., Ltd.	R & D	Korea		21.26	%			27		7
Hankook Electric Power Information Co., Ltd.	R & D	Korea		25.25	%			38		161
Tronix Co., Ltd.	R & D	Korea		20.00	%			75		109
O2&B Global Co., Ltd.	R & D	Korea		20.00	%			25		35
Muan Sunshine Solar Power Plant Co., Ltd.	Power generation	Korea		20.00	%			1,570		1,268
Bigeum Resident Photovoltaic Power Co., Ltd.	Power generation	Korea		29.90	%			1		—
Goesan Solar Park Co., Ltd.	Power generation	Korea		29.00	%			1,276		1,927
Saemangeum Heemang Photovoltaic Co., Ltd.	Power generation	Korea		35.00	%			11,022		10,238
Bitgoel Eco Energy Co., Ltd.	Power generation	Korea		29.00	%			4,640		4,356
Jeju Gimnyeong Wind Power Co., Ltd.	Power generation	Korea		30.00	%			714		911
Seoroseoro Sunny Power Plant Co., Ltd.	Power generation	Korea		42.58	%			706		721
Muan Solar Park Co., Ltd.	Power generation	Korea		20.00	%			4,400		6,083
YuDang Solar Co., Ltd.	Power generation	Korea		20.00	%			360		565
Anjwa Smart Farm & Solar City Co., Ltd.	Power generation	Korea		20.00	%			5,651		6,784
Daewon Green Energy Co., Ltd.	Power generation	Korea		25.36	%			3,910		3,877
G.GURU Co., Ltd.	R & D	Korea		24.65	%			493		403
UD4M Co., Ltd.(*2)	R & D	Korea		12.50	%			75		144
Dongbu Highway Solar Co., Ltd.	Power generation	Korea		20.00	%			190		265
Seobu Highway Solar Co., Ltd.	Power generation	Korea		20.00	%			195		289
Korea Energy Data Co., Ltd.	R & D	Korea		29.37	%			60		62
Gangneung Sacheon Fuel Cell Co., Ltd.(*7)	Power generation	Korea		65.00	%			1,950		1,878
Kosture Co., Ltd.(*2)	Coal recycling business	Korea		0.26	%			—		—
Digital Innovation Growth Fund(*7)	Holding company	Korea		76.92	%			10,000		9,890
Taebaek Gadeoksan Wind Power Co., Ltd.(*18)	Power generation	Korea		39.65	%			12,570		16,495
Chuncheon Green Energy Co., Ltd.(*7)	Power generation	Korea		68.00	%			3,400		3,372
Yeomsubong Wind Power Co., Ltd.	Power generation	Korea		48.72	%			95		95
Yeongyang Wind Power Corporation II	Power generation	Korea		30.00	%			7,965		7,965
Haeparang Energy Co., Ltd.	Power generation	Korea		25.00	%			2,241		2,241
Saemangeum Sebit Power Plant Co., Ltd.(*7)	Power generation	Korea		69.55	%			6,000		6,000

								3,059,835		5,232,373

<Joint ventures>
KEPCO-Uhde Inc.(*11)	Power generation	Korea		52.80	%			11,355		58
Shuweihat Asia Power Investment B.V.	Holding company	Netherlands		49.00	%			44,405		37,069
Shuweihat Asia Operation & Maintenance Company(*11)	Maintenance of utility plant	Cayman		55.00	%			30		1,380
Waterbury Lake Uranium L.P.	Resources development	Canada		33.10	%			26,602		21,590
ASM-BG Investicii AD	Power generation	Bulgaria		50.00	%			16,101		18,692
RES Technology AD	Power generation	Bulgaria		50.00	%			15,595		16,703
KV Holdings, Inc.	Power generation	Philippines		40.00	%			2,103		2,527

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Joint ventures>
KEPCO SPC Power Corporation(*11)	Construction and operation of utility plant	Philippines		75.20	%	￦		94,579		198,979
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation	China		40.00	%			16,621		6,635
Datang Chifeng Renewable Power Co., Ltd.	Power generation	China		40.00	%			121,928		204,587
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	China		40.00	%			39,872		44,217
Rabigh Electricity Company	Power generation	Saudi Arabia		40.00	%			109,743		143,678
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant	Saudi Arabia		40.00	%			70		4,071
Jamaica Public Service Company Limited	Power generation	Jamaica		40.00	%			301,910		294,649
KW Nuclear Components Co., Ltd.	Manufacturing	Korea		45.00	%			833		15,734
Busan Shinho Solar Power Co., Ltd.	Power generation	Korea		25.00	%			2,100		5,841
Global Trade Of Power System Co., Ltd.(*12)	Exporting products and technology of small or medium business by proxy	Korea		29.00	%			290		597
Expressway Solar-light Power Generation Co., Ltd.(*12)	Power generation	Korea		29.00	%			1,856		3,084
Amman Asia Electric Power Company(*11)	Power generation	Jordan		60.00	%			111,476		178,679
KAPES, Inc.(*11)	R & D	Korea		51.00	%			5,629		—
Honam Wind Power Co., Ltd.	Power generation	Korea		29.00	%			3,480		4,041
Korea Power Engineering Service Co., Ltd.	Construction and service	Korea		29.00	%			290		5,415
Chun-cheon Energy Co., Ltd.	Power generation	Korea		29.90	%			52,700		25,896
Yeonggwangbaeksu Wind Power Co., Ltd.(*12)	Power generation	Korea		15.00	%			3,000		2,728
Nghi Son 2 Power LLC	Power generation	Vietnam		50.00	%			2,781		—
Kelar S.A.(*11)	Power generation	Chile		65.00	%			78,060		86,695
PT. Tanjung Power Indonesia	Power generation	Indonesia		35.00	%			26,892		46,546
Incheon New Power Co., Ltd.(*13)	Power generation	Korea		29.00	%			461		—
Seokmun Energy Co., Ltd.	Power generation	Korea		29.00	%			15,370		13,842
Daehan Wind Power PSC	Power generation	Jordan		50.00	%			7,493		5,154
Barakah One Company(*14)	Power generation	UAE		18.00	%			118		—
Nawah Energy Company(*14)	Operation of utility plant	UAE		18.00	%			296		294
Momentum	International thermonuclear experimental reactor construction management	France		33.33	%			1		368
Daegu Green Power Co., Ltd.(*15)	Power generation	Korea		29.00	%			46,225		24,054
Yeonggwang Wind Power Co., Ltd.	Power generation	Korea		46.00	%			17,475		17,646
Chester Solar IV SpA	Power generation	Chile		45.00	%			1,700		—
Chester Solar V SpA	Power generation	Chile		45.00	%			525		25
Diego de Almagro Solar SpA	Power generation	Chile		45.00	%			2,091		362
South Jamaica Power Company Limited	Power generation	Jamaica		20.00	%			20,430		37,360
Daesan Green Energy Co., Ltd.	Power generation	Korea		35.00	%			17,850		21,244
RE Holiday Holdings LLC	Power generation	USA		50.00	%			42,948		73,167
RE Pioneer Holdings LLC	Power generation	USA		50.00	%			27,891		47,015
RE Barren Ridge 1 Holdings LLC	Power generation	USA		50.00	%			28,021		1,883
RE Astoria 2 LandCo LLC	Power generation	USA		50.00	%			5,188		5,998
RE Barren Ridge LandCo LLC	Power generation	USA		50.00	%			2,187		2,120
Laurel SpA	Power generation	Chile		45.00	%			1,222		290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd(*12)	Power generation	Australia		12.37	%			4,095		3,625
Chile Solar JV SpA	Power generation	Chile		50.00	%			37,689		32,457
Cheong-Song Noraesan Wind Power Co., Ltd.	Power generation	Korea		29.01	%			3,200		4,106
Chester Solar I SpA	Power generation	Chile		45.00	%			1,181		1,120
Solar Philippines Calatagan Corporation	Power generation	Philippines		38.00	%			47,903		58,231
Saemangeum Solar Power Co., Ltd.(*16)	Power generation	Korea		81.01	%			26,400		23,939
Chungsongmeon BongSan wind power Co., Ltd.(*12)	Power generation	Korea		29.00	%			2,900		3,808
Jaeun Resident Wind Power Plant Co., Ltd.	Power generation	Korea		29.00	%			2,494		1,958

F-

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Joint ventures>
DE Energia SpA	Power generation	Chile		49.00	%	￦		8,364		8,921
Dangjin Eco Power Co., Ltd.	Power generation	Korea		34.00	%			25,661		26,109
Haemodum Solar Co., Ltd.	Power generation	Korea		49.00	%			2,940		3,081
Yangyang Wind Power Co., Ltd.	Power generation	Korea		50.00	%			12,000		11,191
Horus Solar, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			5,068		5,842
Recursos Solares PV De Mexico II, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			3,678		4,536
Sunmex Renovables, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			1,678		1,610
Stavro Holding II A.B.	Holding company	Sweden		20.00	%			17,615		17,627
Solaseado Solar Power Co., Ltd.	Power generation	Korea		38.90	%			7,020		9,891
Yeongam Solar Power Co., Ltd.(*12)	Power generation	Korea		19.00	%			6,460		6,838
Samsu Wind Power Co., Ltd.(*12)	Power generation	Korea		19.00	%			2,637		2,828
Pulau Indah Power Plant Sdn. Bhd.	Power generation	Malaysia		25.00	%			23,833		22,099
Sam-Yang Photovoltaic Power Co., Ltd.	Power generation	Korea		49.00	%			5,245		4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Holding company	Korea		29.53	%			19,983		21,456
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream(*11)	Holding company	Korea		90.00	%			15,699		16,288
PT Barito Wahana Tenaga	Power generation	Indonesia		30.61	%			59,535		81,595
Cheongna Energy Co., Ltd.(*16)	Generating and distributing vapor and hot/cold water	Korea		50.10	%			49,344		11,198
Naepo Green Energy Co., Ltd.	Power generation	Korea		29.20	%			29,200		—
Dayone Energy Co., Ltd.(*19)	Power generation	Korea		30.66	%			71,070		—
OneEnergy Asia Limited	Power generation	Vietnam		40.00	%			76,916		79,700
KAS Investment I LLC	Holding company	USA		29.89	%			23,437		15,273
KAS Investment II LLC	Holding company	USA		29.89	%			23,343		15,213
Energyco Co., Ltd.	Power generation	Korea		29.00	%			1,659		1,535
CAES, LLC	Holding company	USA		36.00	%			19,414		18,435
Hapcheon Floating Photovoltaic Power Plant Inc.(*12)	Power generation	Korea		49.00	%			7,512		6,971
Busan Industrial Solar Power Co., Ltd.	Power generation	Korea		28.02	%			510		612
Bitsolar Energy Co., Ltd.	Power generation	Korea		27.10	%			352		352
Pulau Indah O&M Sdn. Bhd.(*20)	Power generation	Malaysia		60.00	%			—		—
Guadalupe Solar SpA(*20)	Power generation	Chile		60.00	%			1,397		659
Omisan Wind Power Co., Ltd.	Power generation	Korea		42.00	%			10,752		10,633
Foresight Iberian Solar Group Holding, S.L.(*20)	Power generation	Spain		75.00	%			9,697		9,743
Yeongwol Eco Wind Co., Ltd.	Power generation	Korea		29.00	%			3,089		3,196
Gurae Resident Power Co., Ltd.	Power generation	Korea		29.00	%			386		395
Cheongju Eco Park Co., Ltd.	Power generation	Korea		29.00	%			5,858		5,465
Enel X Midland Photovoltaic, LLC	Power generation	Korea		20.00	%			1,695		1,688
Geumsungsan Wind Power Co., Ltd.	Power generation	Korea		29.00	%			6,531		6,053
KEPCO KPS Carabao Corp.	Utility plant maintenance	Philippines		40.00	%			93		386
Prime Swedish Holding AB	Holding company	Sweden		45.00	%			14,514		15,441
Goheung New Energy Co., Ltd.	Power generation	Korea		46.15	%			12,959		11,708
Gunsan Land Solar Co., Ltd.(*20)	Power generation	Korea		75.29	%			19,091		19,317
CapMan Lynx SCA, SICAR	Holding company	Luxembourg		50.00	%			9,601		9,976
International Offshore Power Transmission Holding Company Limited	Undersea transmission network operation	UAE		35.00	%			—		—
								2,069,491		2,239,011

						￦		5,129,326		7,471,384

(*1)	Due to changes in equity, the nominal and effective percentage of ownership are 20.47%.

(*2)

The effective percentage of ownership is less than 20%. However, the Company can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of the Company’s financial and operating policy of the board of directors.

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:

(*3)

The effective percentage of ownership is 100%. However, the Government regulates the Company’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Company’s other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. The Company can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

(*4)

The effective percentage of ownership is less than 20%. However, the Company can exercise significant influence by virtue of its contractual right to appoint one out of four members of the steering committee of the entity. Moreover, the Company has significant financial transactions, which can affect its significant influence on the entity.

(*5)	Although the nominal percentage of ownership is 2.35%, the effective percentage of ownership is 25.54%, considering redeemable convertible preferred stock as a liability component.

(*6)	The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*7)	The effective percentage of ownership is more than 50% but the Company does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*8)	The effective percentage of ownership is more than 50% but the Company does not hold control over the entity according to the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(*9)

The effective percentage of ownership is less than 20%. However, the Company considers the major decision-making body to be the general decision of the board of directors, and the general decision of the board of directors can be passed only by two directors of Namjeongsusang Solar Power Operation Co., Ltd. Accordingly, the entity is classified as an associate.

(*10)

According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

(*11)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. Accordingly, the entities are classified as joint ventures.

(*12)

According to the shareholders’ agreement, the parties have joint control over all decisions related to finance and operation. Accordingly, the entity is classified as joint ventures.

(*13)

The joint arrangement which the Company has joint control is structured through a separate company. The parties have joint control over the joint arrangement are classified as joint ventures, judging that they have rights to the net assets of the arrangement.

(*14)

The effective percentage of ownership is less than 20%. However, decisions in relevant actitvities must be agreed by ownership parties. Accordingly, the entity is classified as joint ventures.

(*15)

Although the nominal percentage of ownership is 29%, the effective percentage of ownership is 54.24%, considering the interest of financial investors as a liability component.

(*16)

The effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(*17)

The effective percentage of ownership is less than 20%. However, according to the shareholders’ agreement, decisions related pricipal operation must be agreed by all ownership parties. Accordingly, the Company can exercise significant influence.

(*18)

The percentage of ownership decreased due to the unequal capital increase. The entity was reclassified from a joint venture to an associate, due to the changes in voting rights.

(*19)

According to the Dayone Energy Co., Ltd. Investment Agreement signed in March 2011, the Company has a commitment to guarantee principal and certain returns on shares of Dayone Energy Co., Ltd. held by NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation. Since NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation have put option regarding their share of the entity, the Company was deemed to have acquired an additional 15.64% stake. As a result, the effective percentage of ownership is 46.3% in the current and prior period. In accordance with shareholders’ agreement signed during the current period, the Company has joint control with other investors in making important financial and operation decisions, so it has been reclassified from an associate to a joint venture.

(*20)

The effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Gas Corporation	Importing and wholesaling LNG	KOREA		20.47	%	￦		94,500		2,085,296
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others	KOREA		29.00	%			4,727		31,078
YTN Co., Ltd.(*1)	Broadcasting	KOREA		21.43	%			59,000		55,027
Gangwon Wind Power Co., Ltd.(*2)	Power generation	KOREA		15.00	%			5,725		12,158
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service	KOREA		29.00	%			88,885		119,791
Korea Power Exchange(*3)	Management of power market and others	KOREA		100.00	%			127,839		275,126
Taebaek Wind Power Co., Ltd.(*29)	Power generation	KOREA		60.00	%			11,494		14,501
Taebaek Guinemi Wind Power Co., Ltd.(*29)	Power generation	KOREA		67.25	%			12,637		13,049
Daeryun Power Co., Ltd.(*2)	Power generation	KOREA		6.85	%			40,854		26,727
KNH Solar Co., Ltd.	Power generation	KOREA		27.00	%			1,296		2,883
SPC Power Corporation(*30)	Power generation	PHILIPPINES		38.00	%			20,635		70,868
Gemeng International Energy Co., Ltd.	Power generation	CHINA		34.00	%			413,153		578,821
PT. Cirebon Electric Power	Power generation	INDONESIA		27.50	%			40,365		135,114
KNOC Nigerian East Oil Co., Ltd.(*4)	Resources development	NIGERIA		14.63	%			12		—
KNOC Nigerian West Oil Co., Ltd.(*4)	Resources development	NIGERIA		14.63	%			12		—
PT Wampu Electric Power	Power generation	INDONESIA		46.00	%			21,292		37,743
PT. Bayan Resources TBK	Resources development	INDONESIA		20.00	%			615,860		684,719
S-Power Co., Ltd.	Power generation	KOREA		49.00	%			132,300		141,128
Pioneer Gas Power Limited	Power generation	INDIA		38.50	%			49,831		—
Eurasia Energy Holdings	Power generation and resources development	RUSSIA		40.00	%			461		—
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation	LAOS		25.00	%			87,426		115,584
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal	INDONESIA		29.00	%			2,978		3,597
Samcheok Eco Materials Co., Ltd.(*5)	Recycling fly ashes	KOREA		2.35	%			686		—
Noeul Green Energy Co., Ltd.	Power generation	KOREA		29.00	%			1,740		—
Goseong Green Power Co., Ltd.	Power generation	KOREA		29.00	%			262,740		288,893
Gangneung Eco Power Co., Ltd.(*2)	Power generation	KOREA		1.61	%			2,900		—
Shin Pyeongtaek Power Co., Ltd.	Power generation	KOREA		40.00	%			72,000		133,823
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Power generation	KOREA		28.00	%			194		278
Dongducheon Dream Power Co., Ltd.(*6)	Power generation	KOREA		33.61	%			148,105		89,300
Jinbhuvish Power Generation Pvt. Ltd.(*2)	Power generation	INDIA		5.16	%			9,000		—
Daejung Offshore Wind Power Co., Ltd.	Power generation	KOREA		46.59	%			5,190		1,555
GS Donghae Electric Power Co., Ltd.	Power generation	KOREA		34.00	%			204,000		260,145
Daegu Photovoltaic Co., Ltd.	Power generation	KOREA		29.00	%			1,230		2,849
Busan Green Energy Co., Ltd.	Power generation	KOREA		29.00	%			5,243		4,395
Gunsan Bio Energy Co., Ltd.(*2)	Power generation	KOREA		18.87	%			1,000		—
Hansuwon KNP Co., Ltd.	Electric material agency	KOREA		28.98	%			537		280
Korea Electric Power Corporation Fund(*7)	Developing electric enterprises	KOREA		98.09	%			23,113		28,842
Energy Infra Asset Management Co., Ltd.(*2)	Asset management	KOREA		9.90	%			297		1,184
Daegu clean Energy Co., Ltd.	Renewable power generation	KOREA		28.00	%			140		12
YaksuESS Co., Ltd.	Installing ESS related equipment	KOREA		29.00	%			210		486
Nepal Water & Energy Development Company Private Limited (*8)	Construction and operation of utility plant	NEPAL		69.06	%			70,228		69,940
Gwangyang Green Energy Co., Ltd.	Power generation	KOREA		20.00	%			26,800		25,044
PND solar Co., Ltd.	Power generation	KOREA		29.00	%			1,250		1,403
Hyundai Eco Energy Co., Ltd.(*2)	Power generation	KOREA		19.00	%			3,610		7,631
YeongGwang Yaksu Wind Electric Co., Ltd.(*2)	Power generation	KOREA		9.63	%			533		156
Green Energy Electricity Generation Co., Ltd.	Power generation	KOREA		29.00	%			1,189		1,571

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Energy Solutions Co., Ltd.	R & D	KOREA		20.00	%	￦		300		93
ITR Co., Ltd.	R & D	KOREA		20.00	%			50		—
Structure test network Co., Ltd.	Technical testing and consulting	KOREA		20.00	%			25		366
Namjeongsusang Solar Power Operation Co., Ltd.(*9)	Power generation	KOREA		15.00	%			969		373
Indeck Niles Development, LLC	Power generation	USA		50.00	%			263,825		302,038
Indeck Niles Asset Management, LLC	Power generation	USA		33.33	%			—		94
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Holding company	KOREA		49.00	%			6,910		6,932
Suwon New Power Co., Ltd.	Power generation	KOREA		39.90	%			798		919
Gwangbaek Solar Power Investment Co., Ltd.	Power generation	KOREA		44.00	%			4,757		5,133
Go deok Clean Energy Co., Ltd.	Fuel cell generation	KOREA		40.00	%			5,560		4,420
SureDataLab Co., Ltd.	R & D	KOREA		23.95	%			126		177
SEP Co., Ltd.	R & D	KOREA		21.26	%			27		—
Hankook Electric Power Information Co., Ltd. (*13)	R & D	KOREA		16.49	%			38		220
Tronix Co., Ltd. (*13)	R & D	KOREA		12.50	%			75		66
O2&B Global Co., Ltd.	R & D	KOREA		20.00	%			25		36
Muan Sunshine Solar Power Plant Co., Ltd.	Power generation	KOREA		20.00	%			1,570		2,562
Bigeum Resident Photovoltaic Power Co., Ltd.	Power generation	KOREA		29.90	%			1		—
Goesan Solar Park Co., Ltd.	Power generation	KOREA		29.00	%			1,276		2,591
Saemangeum Heemang Photovoltaic Co., Ltd.	Power generation	KOREA		35.00	%			11,022		13,010
Bitgoel Eco Energy Co., Ltd.	Power generation	KOREA		49.25	%			7,880		8,951
Jeju Gimnyeong Wind Power Co., Ltd.	Power generation	KOREA		30.00	%			714		872
Seoroseoro Sunny Power Plant Co., Ltd.	Power generation	KOREA		42.58	%			706		859
Muan Solar park Co., Ltd.	Power generation	KOREA		20.00	%			4,400		7,838
YuDang Solar Co., Ltd.	Power generation	KOREA		20.00	%			360		586
Anjwa Smart Farm & Solar City Co., Ltd.	Power generation	KOREA		20.00	%			5,651		8,662
Daewon Green Energy Co., Ltd.	Power generation	KOREA		25.36	%			3,910		4,485
G.GURU Co., Ltd.	R & D	KOREA		24.65	%			493		300
UD4M Co., Ltd.(*10)	R & D	KOREA		12.50	%			75		161
Dongbu Highway Solar Co., Ltd.	Power generation	KOREA		20.00	%			190		352
Seobu Highway Solar Co., Ltd.	Power generation	KOREA		20.00	%			195		316
Korea Energy Data Co., Ltd.	R & D	KOREA		29.37	%			60		62
Gangneung Sacheon Fuel Cell Co., Ltd.	Power generation	KOREA		41.00	%			5,695		4,277
KOSTURE Co., Ltd.(*2)	Coal recycling business	KOREA		0.82	%			1		1
Taebaek Gadeoksan Wind Power Co., Ltd.	Power generation	KOREA		34.00	%			12,570		20,040
Chuncheon Green Energy Co., Ltd.	Power generation	KOREA		45.00	%			9,540		9,155
Yeomsubong Wind Power Co., Ltd. (*11)	Power generation	KOREA		3.81	%			95		62
Yeongyang Wind Power Corporation II	Power generation	KOREA		30.00	%			7,965		7,461
Haeparang Energy Co., Ltd.	Power generation	KOREA		25.00	%			2,241		2,188
Saemangeum Sebit Power Plant Co., Ltd.(*12)	Power generation	KOREA		63.33	%			13,788		23,199
Boulder Solar III, LLC	Power generation	USA		30.00	%			715		744
PlatformN. Co., Ltd.	R & D	KOREA		29.58	%			105		84
PT. Cirebon Energi Prasarana (*9)	Power generation	INDONESIA		10.00	%			26,710		69,035
Green Radiation Co., Ltd. (*13)	R & D	KOREA		10.00	%			20		11
Future Convergence Technology Laboratory. Co., Ltd.	R & D	KOREA		20.12	%			76		50
SC E&G. Co,. Ltd.	R & D	KOREA		20.00	%			90		214
Wang San Engineering. Co,. Ltd.	R & D	KOREA		20.00	%			81		166
ACE	R & D	KOREA		20.00	%			20		20
Environment and Energy Co., Ltd. (*13)	R & D	KOREA		10.54	%			11		10
Santiago Solar Power SpA	Power generation	CHILE		50.00	%			13,851		13,373
Yanggu Floating Photovoltaic Power Plant Inc.	Power generation	KOREA		29.00	%			904		903

								3,089,683		5,844,464

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Joint ventures>
KEPCO-Uhde Inc.(*14)	Power generation	KOREA		52.80	%	￦		11,355		17
Shuweihat Asia Power Investment B.V.	Holding company	NETHERLANDS		49.00	%			44,405		66,452
Shuweihat Asia Operation & Maintenance Company(*14)	Maintenance of utility plant	CAYMAN		55.00	%			30		1,631
Waterbury Lake Uranium L.P. (*15)	Resources development	CANADA		32.59	%			26,602		21,750
ASM-BG Investicii AD	Power generation	BULGARIA		50.00	%			9,846		14,555
RES Technology AD	Power generation	BULGARIA		50.00	%			11,922		15,133
KV Holdings, Inc. (*30)	Power generation	PHILIPPINES		40.00	%			2,103		9,659
KEPCO SPC Power Corporation(*14,30)	Construction and operation of utility plant	PHILIPPINES		75.20	%			94,579		179,594
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation	CHINA		40.00	%			16,621		6,024
Datang Chifeng Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%			121,928		191,982
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%			39,872		44,398
Rabigh Electricity Company	Power generation	SAUDI ARABIA		40.00	%			109,743		214,607
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant	SAUDI ARABIA		40.00	%			70		5,113
Jamaica Public Service Company Limited	Power generation	JAMAICA		40.00	%			301,910		331,407
KW Nuclear Components Co., Ltd.	Manufacturing	KOREA		45.00	%			833		17,090
Busan Shinho Solar Power Co., Ltd.	Power generation	KOREA		25.00	%			2,100		6,719
Global Trade Of Power System Co., Ltd.(*16)	Exporting products and technology of small or medium business by proxy	KOREA		29.00	%			290		698
Expressway Solar-light Power Generation Co., Ltd.(*17)	Power generation	KOREA		50.00	%			1,856		4,754
Amman Asia Electric Power Company(*14)	Power generation	JORDAN		60.00	%			111,476		220,254
KAPES, Inc.(*14)	R & D	KOREA		51.00	%			5,629		—
Honam Wind Power Co., Ltd.	Power generation	KOREA		29.00	%			3,480		4,819
Korea Power Engineering Service Co., Ltd.	Construction and service	KOREA		29.00	%			290		5,543
Chun-cheon Energy Co., Ltd.	Power generation	KOREA		29.90	%			52,700		32,044
Yeonggwangbaeksu Wind Power Co., Ltd.(*16)	Power generation	KOREA		15.00	%			3,000		3,151
Nghi Son 2 Power LLC	Power generation	VIETNAM		50.00	%			175,261		408,839
Kelar S.A.(*14)	Power generation	CHILE		65.00	%			78,060		117,137
PT. Tanjung Power Indonesia	Power generation	INDONESIA		35.00	%			57,039		92,907
Incheon New Power Co., Ltd.(*18)	Power generation	KOREA		29.00	%			461		198
Seokmun Energy Co., Ltd.	Power generation	KOREA		29.00	%			15,370		17,336
Daehan Wind Power PSC	Power generation	JORDAN		50.00	%			7,493		13,923
Barakah One Company(*19)	Power generation	UAE		18.00	%			118		—
Nawah Energy Company(*19)	Operation of utility plant	UAE		18.00	%			296		315
Momentum	International thermonuclear experimental reactor construction management	FRANCE		33.33	%			1		345
Daegu Green Power Co., Ltd.(*20)	Power generation	KOREA		29.00	%			46,225		29,360
Yeonggwang Wind Power Co., Ltd.	Power generation	KOREA		46.00	%			17,475		20,713
Chester Solar IV SpA	Power generation	CHILE		45.00	%			1,700		181
Chester Solar V SpA	Power generation	CHILE		45.00	%			525		156
Diego de Almagro Solar SpA	Power generation	CHILE		45.00	%			2,091		540
South Jamaica Power Company Limited	Power generation	JAMAICA		20.00	%			20,430		46,437
Daesan Green Energy Co., Ltd.	Power generation	KOREA		35.00	%			17,850		19,218
RE Holiday Holdings LLC	Power generation	USA		50.00	%			42,948		85,370
RE Pioneer Holdings LLC	Power generation	USA		50.00	%			27,891		55,172
RE Barren Ridge 1 Holdings LLC	Power generation	USA		50.00	%			28,021		3,350
RE Astoria 2 LandCo LLC	Power generation	USA		50.00	%			5,188		6,599
RE Barren Ridge LandCo LLC	Power generation	USA		50.00	%			2,187		2,333
Laurel SpA	Power generation	CHILE		45.00	%			1,222		554
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd(*16)	Power generation	AUSTRALIA		12.37	%			4,095		3,651
Chile Solar JV SpA	Power generation	CHILE		50.00	%			12,674		9,819
Cheong-Song Noraesan Wind Power Co., Ltd.(*15)	Power generation	KOREA		29.01	%			3,200		4,263
Chester Solar I SpA	Power generation	CHILE		45.00	%			1,181		1,314
Solar Philippines Calatagan Corporation	Power generation	PHILIPPINES		38.00	%			47,903		56,902
Saemangeum Solar Power Co., Ltd.(*21)	Power generation	KOREA		81.01	%			26,400		23,551
Chungsongmeon BongSan wind power Co., Ltd.(*16)	Power generation	KOREA		29.00	%			2,900		3,470

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Joint ventures>
Jaeun Resident Wind Power Plant Co., Ltd.(*16)	Power generation	KOREA		29.00	%	￦		2,494		2,236
DE Energia SpA	Power generation	CHILE		49.00	%			8,364		9,536
Dangjin Eco Power Co., Ltd.	Power generation	KOREA		34.00	%			25,661		26,859
Haemodum Solar Co., Ltd.	Power generation	KOREA		49.00	%			2,940		3,367
Yangyang Wind Power Co., Ltd.	Power generation	KOREA		50.00	%			12,000		10,864
HORUS SOLAR, S.A. DE C.V. (*22)	Renewable power generation	MEXICO		14.95	%			5,068		6,976
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V. (*22)	Renewable power generation	MEXICO		14.95	%			3,678		4,899
SUNMEX RENOVABLES, S.A. DE C.V. (*22)	Renewable power generation	MEXICO		14.95	%			1,678		1,657
Stavro Holding II A.B.	Holding company	SWEDEN		20.00	%			18,566		17,171
Solaseado Solar Power Co., Ltd.	Power generation	KOREA		39.00	%			7,020		16,233
Yeongam Solar Power Co., Ltd. (*16)	Power generation	KOREA		19.00	%			6,460		9,879
Samsu Wind Power Co., Ltd. (*16)	Power generation	KOREA		19.00	%			2,637		3,205
Pulau Indah Power Plant Sdn. Bhd.	Power generation	MALAYSIA		25.00	%			23,833		26,814
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Holding company	KOREA		29.53	%			20,061		21,723
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream (*14)	Holding company	KOREA		90.00	%			15,012		15,587
PT Barito Wahana Tenaga	Power generation	INDONESIA		30.61	%			59,574		137,047
Cheongna Energy Co., Ltd.(*21)	Generating and distributing vapor and hot/cold water	KOREA		50.10	%			49,344		10,758
Naepo Green Energy Co., Ltd.	Power generation	KOREA		29.20	%			29,200		—
Dayone Energy Co., Ltd.(*23)	Power generation	KOREA		30.66	%			71,070		—
OneEnergy Asia Limited	Power generation	VIETNAM		40.00	%			115,949		172,218
KAS Investment I LLC(*15)	Holding company	USA		29.89	%			23,437		18,247
KAS Investment II LLC(*15)	Holding company	USA		29.89	%			23,343		18,173
Energyco Co., Ltd.	Power generation	KOREA		29.00	%			1,659		2,190
CAES, LLC	Holding company	USA		36.00	%			19,414		20,805
Hapcheon Floating Photovoltaic Power Plant Inc.(*16)	Power generation	KOREA		49.00	%			7,512		8,471
Busan Industrial Solar Power Co., Ltd.	Power generation	KOREA		28.02	%			510		1,168
Bitsolar Energy Co., Ltd.	Power generation	KOREA		27.10	%			352		352
Pulau Indah O&M Sdn. Bhd.(*24)	Power generation	MALAYSIA		60.00	%			—		—
Guadalupe Solar SpA(*24)	Power generation	CHILE		60.00	%			1,397		913
Omisan Wind Power Co., Ltd.	Power generation	KOREA		42.00	%			10,752		10,411
Foresight Iberian Solar Group Holding, S.L.(*24)	Power generation	SPAIN		75.00	%			11,465		10,565
Yeongwol Eco Wind Co., Ltd.	Power generation	KOREA		29.00	%			3,089		3,155
Gurae Resident Power Co., Ltd.	Power generation	KOREA		29.00	%			386		391
Cheongju Eco Park Co., Ltd.	Power generation	KOREA		29.00	%			5,858		10,490
Enel X Midland Photovoltaic, LLC	Power generation	KOREA		20.00	%			1,695		1,856
Geumsungsan Wind Power Co., Ltd.	Power generation	KOREA		29.00	%			6,531		3,493
KEPCO KPS CARABAO Corp.(*18)	Utility plant maintenance	PHILIPPINES		40.00	%			93		177
Prime Swedish Holding AB	Holding company	SWEDEN		45.00	%			35,410		36,245
Goheung New Energy Co., Ltd.	Power generation	KOREA		46.15	%			12,959		11,832
Gunsan Land Solar Co., Ltd.(*24)	Power generation	KOREA		75.29	%			19,091		27,544
CapMan Lynx SCA, SICAR	Holding company	LUXEMBOURG		50.00	%			9,601		—
International Offshore Power Transmission Holding Company Limited	Undersea transmission network operation	UAE		35.00	%			—		—
Pyeongchang Wind Power Co., Ltd. (*28)	Power generation	KOREA		58.00	%			9,329		14,464
Eumseong Eco Park Co., Ltd.	Power generation	KOREA		29.00	%			5,741		5,557
Songsan Green Energy Co., Ltd. (*15)	Fuel cell generation	KOREA		25.00	%			1,400		1,387
Changwon Nu-ri Energy Co., Ltd. (*15)	Fuel cell generation	KOREA		33.33	%			500		497
Hasami Wind Farm Corporation	Power generation	KOREA		29.00	%			1,596		1,589
PungBack Wind Farm Corporation (*26)	Power generation	KOREA		32.89	%			7,885		6,743
Trumbull Asset Management, LLC (*27)	Holding company	USA		78.00	%			—		246
S-Power Chile SpA	Power generation	CHILE		50.00	%			127		127
Seungmun Green Energy	Power generation	KOREA		33.00	%			8,973		9,054
Seobusambo highway photovoltaics Co., Ltd. (*25)	Power generation	KOREA		80.00	%			3,020		3,066
								2,332,579		3,147,584

						￦		5,422,262		8,992,048

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:

(*1)	The Company is planning to sell its investments in YTN Co., Ltd. based on the resolution of the Board of Directors on November 23, 2022, but investments in YTN Co., Ltd. are not classified as assets held-for-sale as the Company hasn’t started the active selling procedures as of December 31, 2022.

(*2)

The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint directors to the board of directors of the entity, and by strict decision criteria of the Group’s financial and operating policy of the board of directors.

(*3)

The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. Accordingly, the entity is not classified as a consolidated subsidiary. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

(*4)

The effective percentage of ownership is less than 20%. However, the Group can exercise significant influence by virtue of its contractual right to appoint one out of four members of the steering committee of the entity. Moreover, the Group has significant financial transactions, which can affect its significant influence on the entity.

(*5)	Although the nominal percentage of ownership is 2.35%, the effective percentage of ownership is 25.54%, considering redeemable convertible preferred stock as a liability component.

(*6)	The effective percentage of ownership is 34.01% considering the conversion of redeemable convertible preferred stock into ordinary stock.

(*7)	The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*8)	The effective percentage of ownership is more than 50% but the Group does not hold control over the entity according to the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(*9)	The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group excercises significant influence over the decisions related to finance and operation.

(*10)

The effective percentage of ownership is 14.29% due to the acquisition of treasury stocks. The effective percentage of ownership is less than 20%. However, the Group excercises significant influence over the decisions related to finance and operation by virtue of right to nominate directors to the board of directors of the entity.

(*11)

The effective percentage of ownership decreased due to the disproportionate paid-in capital increase, and the effective percentage of ownership is less than 20%. However, the Group excercises significant influence over all decisions related to finance and operation.

(*12)

The effective percentage of ownership decreased due to the disproportionate paid-in capital increase during the year ended December 31, 2022. The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. Accordingly, the entity is classified as an associate.

(*13)

The effective percentage of ownership is less than 20%. However, the entity is classified as an associate because the Group excercises significant influence over the entity.

(*14)

The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties and the Group can exercise same voting rights as other shareholders at the board of directors. Accordingly, the entities are classified as joint ventures.

(*15)

The effective percentage of ownership is less than 50%. However, the entity is classified as a joint venture, because all consent was required to make decisions on related activities.

(*16)

According to the shareholders’ agreement, the parties have joint control over all decisions related to finance and operation. Accordingly, the entity is classified as joint ventures.

(*17)

The effective percentage of ownership increased due to the disproportionate capital reduction of financial investors during the year ended December 31, 2022.

(*18)

The joint arrangement which the Group has joint control is structured through a separate company. The parties have joint control over the joint arrangement are classified as joint ventures, judging that they have rights to the net assets of the arrangement.

(*19)

The effective percentage of ownership is less than 20%. However, decisions in relevant actitvities must be agreed by ownership parties. Accordingly, the entity is classified as joint ventures.

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(1)	Investments in associates and joint ventures as of December 31, 2021 and 2022 are as follows, continued:

(*20)

Although the nominal percentage of ownership is 29%, the effective percentage of ownership is 54.24%, considering the interest of financial investors as a liability component.

(*21)

The effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(*22)

(*23)

According to the Dayone Energy Co., Ltd. Investment Agreement signed in March 2011, the Group has a commitment to guarantee principal and certain returns on shares of Dayone Energy Co., Ltd. held by NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation. Since NH Power 2nd Co., Ltd. and the National Agricultural Cooperative Federation have put option regarding their share of the entity, the Group was deemed to have acquired an additional 15.64% stake. As a result, the effective percentage of ownership is 46.3% in the current and prior period. In accordance with shareholders’ agreement signed during the current period, the Group has joint control with other investors in making important financial and operation decisions, so it has been reclassified from an associate to a joint venture.

(*24)

The effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

(*25)

Due to the changes in the agreement, the Group lost its control over the entity. Accordingly, the entity is reclassified to a joint venture from a subsidiary. Although the effective percentage of ownership is more than 50%, decisions in relevant actitvities must be agreed by all members of the board of directors.

(*26)

The effective percentage of ownership is 37%, considering potential common stock.

(*27)

The effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all members of the board of directors. Accordingly, the entity is classified as a joint venture.

(*28)

After addtional acquisition of the shares, the effective percentage of ownership is more than 50%. However, decisions in relevant actitvities must be agreed by all members of the board of directors. Accordingly, the entity is classified as a joint venture.

(*29)

After addtional acquisition of the shares, the effective percentage of ownership is more than 50%. However, the Group does not hold control over relevant business while it exercises significant influence by participating in the board of directors by the shareholders’ agreement. Accordingly, the entity is classified as an associate.

(*30)

The Company is planning to sell its investment in SPC Power Corporation, KEPCO SPC Power Corporation, KV Holdings, Inc. and time or proceeds of sales are not specified as of December 31, 2022.

(2)	The fair value of associates which are actively traded on an open market and have a readily available market value as of December 31, 2021 and 2022 are as follows:


Investees		2021		2022
		In millions of won
<Associates>
Korea Electric Power Industrial Development Co., Ltd.	￦		115,339		80,454
Korea Gas Corporation(*)			738,990		684,180
YTN Co., Ltd.			26,550		50,220
SPC Power Corporation			203,589		134,814
PT. Bayan Resources TBK			1,495,801		1,132,601

(*)

An indicator of impairment has been identified for the Company’s investment in Korea Gas Corporation (“KOGAS”) for the years ended December 31, 2021 and 2022 as management determined that the carrying amount of the investment in KOGAS at ￦1,815,513 million and ￦2,085,296 million respectively were significantly higher than its fair value. Accordingly, management has assessed the recoverable amount of the investment by estimating the Company’s share of the present value of the estimated future cash flows expected to be generated by KOGAS. The carrying amount of KOGAS as at December 31, 2021 and 2022 are supported by the recoverable amount determination and as such, no impairment has been recognized for the years ended December 31, 2021 and 2022.

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(2)	The fair value of associates which are actively traded on an open market and have a readily available market value as of December 31, 2021 and 2022 are as follows, continued:

The recoverable amount estimate is most sensitive to assumptions regarding long-term revenue forecasts as well as the discount rate:

•

Revenue forecasts: price and volume of gas sold are based on the long-term natural gas supply and demand programs approved by the Ministry of Trade, Industry & Energy.

•

Discount rate: the discount rate is derived using the weighted average cost of capital methodology adjusted for any risks that are not reflected in the underlying cash flows. A real post-tax discount rate of 4.90% and 5.20% was applied to post-tax cash flows respectively as at December 31, 2021 and 2022.

Changes in circumstances may affect the assumptions used to determine recoverable amount and could result in an impairment of KOGAS at future reporting dates.

F-10

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows:


2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Korea Gas Corporation	￦		1,647,325		—		—			—			209,357			13,017			(54,186	)		1,815,513
Korea Electric Power Industrial Development Co., Ltd.			25,630		—		—			(1,966	)		378			—			575			24,617
YTN Co., Ltd.			40,549		—		—			(270	)		11,192			22			335			51,828
Gangwon Wind Power Co., Ltd.			11,443		—		—			(1,703	)		814			—			—			10,554
Hyundai Green Power Co., Ltd.			132,774		—		—			(8,888	)		(562	)		(1,346	)		(23	)		121,955
Korea Power Exchange			269,122		—		—			—			(10	)		—			616			269,728
Taebaek Wind Power Co., Ltd.			6,392		—		—			—			408			—			—			6,800
Taebaek Guinemi Wind Power Co., Ltd.			3,087		—		—			—			270			—			—			3,357
Pyeongchang Wind Power Co., Ltd.			5,027		—		—			—			384			—			—			5,411
Daeryun Power Co., Ltd.			26,353		—		—			—			(927	)		—			—			25,426
Changjuk Wind Power Co., Ltd.			7,867		—		—			(449	)		937			—			—			8,355
KNH Solar Co., Ltd.			2,436		—		—			—			(158	)		—			—			2,278
SPC Power Corporation			69,912		—		—			(20,468	)		5,311			10,291			—			65,046
Gemeng International Energy Co., Ltd.			679,708		—		—			(11,886	)		(154,930	)		82,326			—			595,218
PT. Cirebon Electric Power			117,811		—		—			(18,253	)		10,679			1,396			10,336			121,969
KNOC Nigerian East Oil Co., Ltd.			—		—		—			—			(14	)		(938	)		952			—
KNOC Nigerian West Oil Co., Ltd.			—		—		—			—			(15	)		(862	)		877			—
PT Wampu Electric Power			27,865		—		—			—			3,196			1,355			2,661			35,077
PT. Bayan Resources TBK			425,234		—		—			(68,666	)		267,874			36,885			(38	)		661,289
S-Power Co., Ltd.			110,292		—		—			—			12,437			57			—			122,786
Pioneer Gas Power Limited			—		—		—			—			—			—			—			—
Eurasia Energy Holdings			—		—		—			—			—			—			—			—
Xe-Pian Xe-Namnoy Power Co., Ltd.			64,570		—		—			—			19,306			8,565			—			92,441
Hadong Mineral Fiber Co., Ltd.			—		—		—			—			—			—			—			—
PT. Mutiara Jawa			1,780		—		—			—			630			159			—			2,569
Samcheok Eco Materials Co., Ltd.			—		—		—			—			—			—			—			—
Noeul Green Energy Co., Ltd.			4,197		—		—			—			(389	)		—			—			3,808
Goseong Green Power Co., Ltd.			2,186		259,840		—			—			(1,168	)		—			—			260,858
Gangneung Eco Power Co., Ltd.			2,368		—		—			—			(80	)		—			—			2,288
Shin Pyeongtaek Power Co., Ltd.			69,591		—		—			—			23,476			—			7			93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			210		—		—			—			13			—			—			223
Dongducheon Dream Power Co., Ltd.			80,637		—		—			—			(6,439	)		—			—			74,198
Jinbhuvish Power Generation Pvt. Ltd.			—		—		—			—			—			—			—			—
Daejung Offshore Wind Power Co., Ltd.			2,165		—		—			—			(461	)		—			—			1,704
GS Donghae Electric Power Co., Ltd.			244,426		—		—			(15,640	)		14,972			—			14			243,772
Daegu Photovoltaic Co., Ltd.			2,066		—		—			(206	)		482			—			—			2,342
Busan Green Energy Co., Ltd.			8,778		—		—			—			(3,750	)		—			4			5,032
Gunsan Bio Energy Co., Ltd.			—		—		—			—			—			—			—			—
Korea Electric Vehicle Charging Service			576		—		—			—			(283	)		—			957			1,250
Hansuwon KNP Co., Ltd.			200		—		—			—			19			—			—			219
Korea Electric Power Corporation Fund			41,926		—		(3,090	)		—			9,065			82			—			47,983
Energy Infra Asset Management Co., Ltd.			938		—		—			—			128			—			—			1,066
Daegu clean Energy Co., Ltd.			12		—		—			—			—			—			—			12
YaksuESS Co., Ltd.			454		—		—			—			262			—			—			716
Nepal Water & Energy Development Company Private Limited			42,677		19,960		—			—			(616	)		4,312			—			66,333
Gwangyang Green Energy Co., Ltd.			926		24,800		—			—			(138	)		(122	)		—			25,466
PND Solar Co., Ltd.			1,149		—		—			—			80			—			—			1,229
Hyundai Eco Energy Co., Ltd.			4,250		—		—			—			1,322			—			—			5,572
YeongGwang Yaksu Wind Electric Co., Ltd.			312		—		—			—			(79	)		—			—			233
Green Energy Electricity Generation Co., Ltd.			25		—		—			—			1,688			—			—			1,713
Korea Energy Solutions Co., Ltd.			197		—		—			—			(74	)		—			—			123
ITR Co., Ltd.			40		—		—			—			(8	)		—			—			32

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Structure test network Co., Ltd.	￦		27		—		—			—			279			—			—			306
Namjeongsusang Solar Power Operation Co., Ltd.			103		—		—			—			258			—			—			361
Indeck Niles Development, LLC			20,627		222,551		—			—			(13,160	)		6,652			9,603			246,273
Indeck Niles Asset Management, LLC			101		—		—			—			567			—			(557	)		111
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			7,326		—		(188	)		—			399			—			(399	)		7,138
Suwon New Power Co., Ltd.			1,054		—		—			—			(5	)		(14	)		—			1,035
KPGE Inc.			287		—		—			—			22			—			—			309
Gwangbaek Solar Power Investment Co., Ltd.			4,682		—		—			—			124			—			—			4,806
Go deok Clean Energy Co., Ltd.			960		3,730		—			—			(333	)		(55	)		—			4,302
SureDataLab Co., Ltd.			85		—		—			—			43			—			—			128
SEP Co., Ltd.			14		—		—			—			(7	)		—			—			7
Hankook Electric Power Information Co., Ltd.			139		—		—			—			22			—			—			161
Tronix Co., Ltd.			119		—		—			—			(10	)		—			—			109
O2&B Global Co., Ltd.			22		—		—			—			13			—			—			35
Muan Sunshine Solar Power Plant Co., Ltd.			1,096		—		—			—			172			—			—			1,268
Bigeum Resident Photovoltaic Power Co., Ltd.			—		—		—			—			—			—			—			—
Jeju SolarOne Co., Ltd.			159		45		(206	)		—			(1	)		—			3			—
Goesan Solar Park Co., Ltd.			1,684		—		—			—			249			(6	)		—			1,927
Saemangeum Heemang Photovoltaic Co., Ltd.			11,022		—		—			—			(784	)		—			—			10,238
Bitgoel Eco Energy Co., Ltd.			29		4,611		—			—			(261	)		(23	)		—			4,356
Jeju Gimnyeong Wind Power Co., Ltd.			1,578		—		—			—			(665	)		(2	)		—			911
Seoroseoro Sunny Power Plant Co., Ltd.			230		476		—			—			15			—			—			721
Muan Solar Park Co., Ltd.			4,180		220		—			—			1,683			—			—			6,083
YuDang Solar Co., Ltd.			360		—		—			—			205			—			—			565
Anjwa Smart Farm & Solar City Co., Ltd.			5,510		141		—			—			1,133			—			—			6,784
Daewon Green Energy Co., Ltd.			3,910		—		—			—			(33	)		—			—			3,877
G.GURU Co., Ltd.			—		493		—			—			(90	)		—			—			403
UD4M Co., Ltd.			—		75		—			—			217			—			(148	)		144
Dongbu Highway Solar Co., Ltd.			—		—		—			—			74			—			191			265
Seobu Highway Solar Co., Ltd.			—		—		—			—			94			—			195			289
Korea Energy Data Co., Ltd.			—		60		—			—			2			—			—			62
Gangneung Sacheon Fuel Cell Co., Ltd.			—		1,950		—			—			(72	)		—			—			1,878
Kosture Co., Ltd.			—		—		—			—			—			—			—			—
Digital Innovation Growth Fund			—		10,000		—			—			(110	)		—			—			9,890
Taebaek Gadeoksan Wind Power Co., Ltd.			—		—		—			—			2,532			—			13,963			16,495
Chuncheon Green Energy Co., Ltd.			—		3,400		—			—			(28	)		—			—			3,372
Yeomsubong Wind Power Co., Ltd.			—		95		—			—			—			—			—			95
Yeongyang Wind Power Corporation II			—		7,965		—			—			—			—			—			7,965
Haeparang Energy Co., Ltd.			—		2,241		—			—			—			—			—			2,241
Saemangeum Sebit Power Plant Co., Ltd.			—		6,000		—			—			—			—			—			6,000

			4,250,787		568,653		(3,484	)		(148,395	)		417,123			161,751			(14,062	)		5,232,373

<Joint ventures>
KEPCO-Uhde Inc.			100		—		—			—			(42	)		—			—			58
Shuweihat Asia Power Investment B.V.			13,264		—		—			(2,467	)		4,564			21,708			—			37,069
Shuweihat Asia Operation & Maintenance Company			1,057		—		—			(881	)		1,101			103			—			1,380
Waterbury Lake Uranium L.P.			19,797		—		—			—			—			1,793			—			21,590
ASM-BG Investicii AD			18,200		—		—			(2,703	)		2,700			495			—			18,692
RES Technology AD			15,930		—		—			(676	)		1,116			333			—			16,703
KV Holdings, Inc.			2,405		—		—			(901	)		962			61			—			2,527
KEPCO SPC Power Corporation			201,663		—		—			(35,763	)		37,073			(3,994	)		—			198,979
Gansu Datang Yumen Wind Power Co., Ltd.			6,530		—		—			—			(619	)		724			—			6,635

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
Datang Chifeng Renewable Power Co., Ltd.	￦		188,478		—		—			(14,191	)		9,342			20,958			—			204,587
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			42,530		—		—			(2,884	)		1,562			3,009			—			44,217
Rabigh Electricity Company			97,157		—		—			(7,221	)		17,896			35,846			—			143,678
Rabigh Operation & Maintenance Company Limited			3,813		—		—			(4,085	)		3,489			854			—			4,071
Jamaica Public Service Company Limited			266,221		—		—			(4,578	)		12,963			23,820			(3,777	)		294,649
KW Nuclear Components Co., Ltd.			11,171		—		—			(833	)		5,396			—			—			15,734
Busan Shinho Solar Power Co., Ltd.			5,378		—		—			(352	)		815			—			—			5,841
Global Trade Of Power System Co., Ltd.			546		—		—			—			51			—			—			597
Expressway Solar-light Power Generation Co., Ltd.			2,896		—		—			—			188			—			—			3,084
Amman Asia Electric Power Company			161,253		—		—			(27,428	)		18,487			26,367			—			178,679
KAPES, Inc.			—		—		—			—			—			—			—			—
Honam Wind Power Co., Ltd.			3,887		—		—			—			154			—			—			4,041
Jeongam Wind Power Co., Ltd.			4,620		5,808		(10,741	)		—			313			—			—			—
Korea Power Engineering Service Co., Ltd.			5,362		—		—			—			206			—			(153	)		5,415
Chun-cheon Energy Co., Ltd.			27,518		—		—			—			(1,622	)		—			—			25,896
Yeonggwangbaeksu Wind Power Co., Ltd.			3,124		—		—			—			(396	)		—			—			2,728
Nghi Son 2 Power LLC			—		—		—			—			—			—			—			—
Kelar S.A.			71,449		—		—			—			2,121			6,416			6,709			86,695
PT. Tanjung Power Indonesia			33,063		—		—			—			5,027			9,029			(573	)		46,546
Incheon New Power Co., Ltd.			—		—		—			—			—			—			—			—
Seokmun Energy Co., Ltd.			14,814		—		—			—			(972	)		—			—			13,842
Daehan Wind Power PSC			—		—		—			—			3,791			1,363			—			5,154
Barakah One Company			—		—		—			—			—			—			—			—
Nawah Energy Company			270		—		—			—			—			24			—			294
Momentum			565		—		—			(569	)		368			4			—			368
Daegu Green Power Co., Ltd.			23,045		—		—			—			982			—			27			24,054
Yeonggwang Wind Power Co., Ltd.			17,256		—		—			—			390			—			—			17,646
Chester Solar IV SpA			1,064		—		—			—			(1,083	)		(36	)		55			—
Chester Solar V SpA			277		—		—			—			(269	)		2			15			25
Diego de Almagro Solar SpA			1,490		—		—			—			(1,095	)		(123	)		90			362
South Jamaica Power Company Limited			31,897		—		—			—			2,515			2,949			(1	)		37,360
Daesan Green Energy Co., Ltd.			22,552		—		—			—			(1,308	)		—			—			21,244
RE Holiday Holdings LLC			68,809		—		—			(9,577	)		6,299			7,636			—			73,167
RE Pioneer Holdings LLC			49,639		—		—			(14,199	)		5,556			6,019			—			47,015
RE Barren Ridge 1 Holdings LLC			4,466		—		—			(1,365	)		(3,162	)		1,944			—			1,883
RE Astoria 2 LandCo LLC			5,230		—		—			(337	)		619			486			—			5,998
RE Barren Ridge LandCo LLC			1,847		—		—			(140	)		240			173			—			2,120
Laurel SpA			1,092		—		—			—			(798	)		(71	)		67			290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			4,129		—		—			—			(111	)		(393	)		—			3,625
Chile Solar JV SpA			34,883		—		—			—			831			(3,257	)		—			32,457
Cheong-Song Noraesan Wind Power Co., Ltd.			3,453		—		—			—			653			—			—			4,106
Chester Solar I SpA			1,621		—		—			—			(430	)		(195	)		124			1,120
Solar Philippines Calatagan Corporation			49,017		—		—			(5,961	)		5,961			9,214			—			58,231
Saemangeum Solar Power Co., Ltd.			24,292		1		—			—			(354	)		—			—			23,939
Chungsongmeon BongSan wind power Co., Ltd.			4,124		—		—			—			(316	)		—			—			3,808
Jaeun Resident Wind Power Plant Co., Ltd.			2,195		—		—			—			(237	)		—			—			1,958
DE Energia SpA			8,187		—		—			—			—			734			—			8,921
Dangjin Eco Power Co., Ltd.			25,523		—		—			—			274			312			—			26,109
Haemodum Solar Co., Ltd.			3,065		—		—			—			16			—			—			3,081
Yangyang Wind Power Co., Ltd.			10,485		1,200		—			—			(488	)		(6	)		—			11,191
Horus Solar, S.A. De C.V.			3,394		—		—			—			2,396			52			—			5,842
Recursos Solares PV De Mexico II, S.A. DE C.V.			3,660		—		—			—			766			110			—			4,536

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
Sunmex Renovables, S.A. De C.V.	￦		240		1,371		—			—			(49	)		48			—			1,610
Stavro Holding II A.B.			9,277		8,684		—			—			(55	)		(271	)		(8	)		17,627
Solaseado Solar Power Co., Ltd.			9,915		—		—			—			(24	)		—			—			9,891
Yeongam Solar Power Co., Ltd.			6,042		—		—			—			796			—			—			6,838
Samsu Wind Power Co., Ltd.			2,607		—		—			—			221			—			—			2,828
Pulau Indah Power Plant Sdn. Bhd.			11,204		12,264		—			—			(519	)		(850	)		—			22,099
Sam-Yang Photovoltaic Power Co., Ltd.			5,535		—		—			—			(542	)		—			—			4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			22,242		—		(969	)		(1,727	)		1,910			—			—			21,456
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			16,129		—		—			—			159			—			—			16,288
PT Barito Wahana Tenaga			63,029		140		—			—			4,194			14,232			—			81,595
Cheongna Energy Co., Ltd.			4,940		—		—			—			6,258			—			—			11,198
Naepo Green Energy Co., Ltd.			—		—		—			—			—			—			—			—
Dayone Energy Co., Ltd.			—		—		—			—			—			—			—			—
OneEnergy Asia Limited			56,654		20,262		—			—			(1,138	)		3,922			—			79,700
KAS Investment I LLC			23,437		—		—			—			(6,876	)		(1,288	)		—			15,273
KAS Investment II LLC			23,343		—		—			—			(6,515	)		(1,615	)		—			15,213
Energyco Co., Ltd.			1,659		—		—			—			(60	)		(64	)		—			1,535
CAES, LLC			17,626		—		—			(1,009	)		(331	)		850			1,299			18,435
Hapcheon Floating Photovoltaic Power Plant Inc.			1,890		5,622		—			—			(541	)		—			—			6,971
Busan Industrial Solar Power Co., Ltd.			510		—		—			—			102			—			—			612
Bitsolar Energy Co., Ltd.			352		—		—			—			—			—			—			352
Pulau Indah O&M Sdn. Bhd.			—		—		—			—			—			—			—			—
Guadalupe Solar SpA			—		1,397		—			—			(672	)		(66	)		—			659
Omisan Wind Power Co., Ltd.			—		10,752		—			—			(119	)		—			—			10,633
Foresight Iberian Solar Group Holding, S.L.			—		—		—			—			72			—			9,671			9,743
Yeongwol Eco Wind Co., Ltd.			—		3,089		—			—			122			(15	)		—			3,196
Gurae Resident Power Co., Ltd.			—		386		—			—			12			(3	)		—			395
Cheongju Eco Park Co., Ltd.			—		5,858		—			—			(393	)		—			—			5,465
Enel X Midland Photovoltaic, LLC			—		1,695		—			—			(7	)		—			—			1,688
Geumsungsan Wind Power Co., Ltd.			—		6,531		—			—			(478	)		—			—			6,053
KEPCO KPS Carabao Corp.			—		93		—			—			293			—			—			386
Prime Swedish Holding AB			—		8,155		—			—			22			1,060			6,204			15,441
Taebaek Gadeoksan Wind Power Co., Ltd.			13,362		—		—			—			762			—			(14,124	)		—
Goheung New Energy Co., Ltd.			—		12,959		—			—			(1,251	)		—			—			11,708
Gunsan Land Solar Co., Ltd.			—		19,091		—			—			324			(98	)		—			19,317
CapMan Lynx SCA, SICAR			—		9,601		—			—			375			—			—			9,976
International Offshore Power Transmission Holding Company Limited			—		—		—			—			—			—			—			—

			1,919,746		134,959		(11,710	)		(139,847	)		139,933			190,305			5,625			2,239,011

	￦		6,170,533		703,612		(15,194	)		(288,242	)		557,056			352,056			(8,437	)		7,471,384

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Korea Gas Corporation	￦		1,815,513		—		—			(51,559	)		305,638			7,746			7,958			2,085,296
Korea Electric Power Industrial Development Co., Ltd.			24,617		—		—			(1,872	)		3,807			—			4,526			31,078
YTN Co., Ltd.			51,828		—		—			(450	)		1,565			(34	)		2,118			55,027
Gangwon Wind Power Co., Ltd.			10,554		—		—			(1,420	)		3,024			—			—			12,158
Hyundai Green Power Co., Ltd.			121,955		—		—			(4,008	)		1,770			1,345			(1,271	)		119,791
Korea Power Exchange			269,728		—		—			—			772			—			4,626			275,126
Taebaek Wind Power Co., Ltd.			6,800		7,684		—			(825	)		842			—			—			14,501
Taebaek Guinemi Wind Power Co., Ltd.			3,357		9,217		—			—			475			—			—			13,049
Pyeongchang Wind Power Co., Ltd.			5,411		5,454		—			(100	)		3,695			—			(14,460	)		—
Daeryun Power Co., Ltd.			25,426		—		—			—			429			1			871			26,727
Changjuk Wind Power Co., Ltd.			8,355		11,862		—			(1,350	)		817			—			(19,684	)		—
KNH Solar Co., Ltd.			2,278		—		—			—			606			(1	)		—			2,883
SPC Power Corporation			65,046		—		—			(2,694	)		1,188			7,330			(2	)		70,868
Gemeng International Energy Co., Ltd.			595,218		—		—			—			(233	)		(16,164	)		—			578,821
PT. Cirebon Electric Power			121,969		—		—			(10,659	)		14,776			704			8,324			135,114
KNOC Nigerian East Oil Co., Ltd.			—		—		—			—			(11	)		(787	)		798			—
KNOC Nigerian West Oil Co., Ltd.			—		—		—			—			(10	)		(724	)		734			—
PT Wampu Electric Power			35,077		—		—			(5,551	)		5,848			54			2,315			37,743
PT. Bayan Resources TBK			661,289		—		—			(515,139	)		531,528			7,041			—			684,719
S-Power Co., Ltd.			122,786		—		—			—			18,342			—			—			141,128
Pioneer Gas Power Limited			—		—		—			—			—			—			—			—
Eurasia Energy Holdings			—		—		—			—			—			—			—			—
Xe-Pian Xe-Namnoy Power Co., Ltd.			92,441		—		—			—			15,582			7,561			—			115,584
PT. Mutiara Jawa			2,569		—		—			—			1,197			(169	)		—			3,597
Samcheok Eco Materials Co., Ltd.			—		—		—			—			—			—			—			—
Noeul Green Energy Co., Ltd.			3,808		—		—			—			(3,824	)		—			16			—
Goseong Green Power Co., Ltd.			260,858		—		—			—			27,992			—			43			288,893
Gangneung Eco Power Co., Ltd.			2,288		—		—			—			(2,288	)		—			—			—
Shin Pyeongtaek Power Co., Ltd.			93,074		—		—			—			40,713			—			36			133,823
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			223		—		—			—			55			—			—			278
Dongducheon Dream Power Co., Ltd.			74,198		—		—			—			15,086			—			16			89,300
Jinbhuvish Power Generation Pvt. Ltd.			—		—		—			—			—			—			—			—
Daejung Offshore Wind Power Co., Ltd.			1,704		—		—			—			(149	)		—			—			1,555
GS Donghae Electric Power Co., Ltd.			243,772		—		—			—			15,717			—			656			260,145
Daegu Photovoltaic Co., Ltd.			2,342		—		—			(268	)		775			—			—			2,849
Busan Green Energy Co., Ltd.			5,032		—		—			—			(667	)		—			30			4,395
Gunsan Bio Energy Co., Ltd.			—		—		—			—			—			—			—			—
Korea Electric Vehicle Charging Service			1,250		—		(1,293	)		—			43			—			—			—
Hansuwon KNP Co., Ltd.			219		—		—			—			61			—			—			280
Korea Electric Power Corporation Fund			47,983		—		(25,297	)		—			7,966			(1,810	)		—			28,842
Energy Infra Asset Management Co., Ltd.			1,066		—		—			—			118			—			—			1,184
Daegu clean Energy Co., Ltd.			12		—		—			—			—			—			—			12
YaksuESS Co., Ltd.			716		—		—			—			(230	)		—			—			486
Nepal Water & Energy Development Company Private Limited			66,333		—		—			—			(923	)		4,530			—			69,940
Gwangyang Green Energy Co., Ltd.			25,466		—		—			—			(422	)		—			—			25,044
PND solar Co., Ltd.			1,229		—		—			—			174			—			—			1,403
Hyundai Eco Energy Co., Ltd.			5,572		—		—			—			2,058			1			—			7,631
YeongGwang Yaksu Wind Electric Co., Ltd.			233		—		—			—			143			—			(220	)		156
Green Energy Electricity Generation Co., Ltd.			1,713		—		—			—			(142	)		—			—			1,571
Korea Energy Solutions Co., Ltd.			123		—		—			—			(30	)		—			—			93
ITR Co., Ltd.			32		—		—			—			(32	)		—			—			—
Structure test network Co., Ltd.			306		—		—			—			60			—			—			366

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Namjeongsusang Solar Power Operation Co., Ltd.	￦		361		—		—			—			12			—			—			373
Indeck Niles Development, LLC			246,273		—		(4,289	)		—			21,975			21,840			16,239			302,038
Indeck Niles Asset Management, LLC			111		—		—			(497	)		472			—			8			94
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			7,138		—		(202	)		(392	)		389			(1	)		—			6,932
Suwon New Power Co., Ltd.			1,035		—		—			—			(116	)		—			—			919
KPGE Inc.			309		—		(317	)		—			8			—			—			—
Gwangbaek Solar Power Investment Co., Ltd.			4,806		—		—			—			327			—			—			5,133
Go deok Clean Energy Co., Ltd.			4,302		—		—			—			118			—			—			4,420
SureDataLab Co., Ltd.			128		—		—			—			49			—			—			177
SEP Co., Ltd.			7		—		—			—			(7	)		—			—			—
Hankook Electric Power Information Co., Ltd.			161		—		—			—			121			—			(62	)		220
Tronix Co., Ltd.			109		—		—			—			(37	)		—			(6	)		66
O2&B Global Co., Ltd.			35		—		—			—			1			—			—			36
Muan Sunshine Solar Power Plant Co., Ltd.			1,268		—		—			—			1,294			—			—			2,562
Bigeum Resident Photovoltaic Power Co., Ltd.			—		—		—			—			—			—			—			—
Goesan Solar Park Co., Ltd.			1,927		—		—			—			664			—			—			2,591
Saemangeum Heemang Photovoltaic Co., Ltd.			10,238		—		—			—			2,772			—			—			13,010
Bitgoel Eco Energy Co., Ltd.			4,356		3,240		—			—			1,355			—			—			8,951
Jeju Gimnyeong Wind Power Co., Ltd.			911		—		—			—			(39	)		—			—			872
Seoroseoro Sunny Power Plant Co., Ltd.			721		—		—			—			138			—			—			859
Muan Solar park Co., Ltd.			6,083		—		—			(600	)		2,377			(22	)		—			7,838
YuDang Solar Co., Ltd.			565		—		—			(160	)		181			—			—			586
Anjwa Smart Farm & Solar City Co., Ltd.			6,784		—		—			—			1,878			—			—			8,662
Daewon Green Energy Co., Ltd.			3,877		—		—			—			608			—			—			4,485
G.GURU Co., Ltd.			403		—		—			—			(103	)		—			—			300
UD4M Co., Ltd.			144		—		—			—			17			—			—			161
Dongbu Highway Solar Co., Ltd.			265		—		—			—			87			—			—			352
Seobu Highway Solar Co., Ltd.			289		—		—			—			27			—			—			316
Korea Energy Data Co., Ltd.			62		—		—			—			—			—			—			62
Gangneung Sacheon Fuel Cell Co., Ltd.			1,878		3,745		—			—			(1,310	)		(36	)		—			4,277
KOSTURE Co., Ltd.			—		1		—			—			—			—			—			1
Digital Innovation Growth Fund			9,890		—		—			—			(204	)		—			(9,686	)		—
Taebaek Gadeoksan Wind Power Co., Ltd.			16,495		—		—			(1,784	)		5,644			—			(315	)		20,040
Chuncheon Green Energy Co., Ltd.			3,372		6,140		—			—			(357	)		—			—			9,155
Yeomsubong Wind Power Co., Ltd.			95		—		—			—			(40	)		—			7			62
Yeongyang Wind Power Corporation II			7,965		—		—			—			(504	)		—			—			7,461
Haeparang Energy Co., Ltd.			2,241		—		—			—			(53	)		—			—			2,188
Saemangeum Sebit Power Plant Co., Ltd.			6,000		7,788		—			—			4,855			—			4,556			23,199
Boulder Solar III, LLC			—		715		—			—			—			—			29			744
PlatformN. Co., Ltd.			—		105		—			—			(21	)		—			—			84
PT. Cirebon Energi Prasarana			—		24,052		—			—			35,315			6,963			2,705			69,035
Green Radiation Co., Ltd.			—		—		—			—			(9	)		—			20			11
Future Convergence Technology Laboratory. Co., Ltd.			—		76		—			—			(26	)		—			—			50
SC E&G. Co,. Ltd.			—		90		—			—			124			—			—			214
Wang San Engineering. Co,. Ltd.			—		81		—			—			85			—			—			166
ACE			—		20		—			—			—			—			—			20
Environment and Energy Co., Ltd.			—		11		—			—			(1	)		—			—			10
Santiago Solar Power SpA			—		13,853		—			—			(379	)		(100	)		(1	)		13,373
Yanggu Floating Photovoltaic Power Plant Inc.			—		903		—			—			—			—			—			903

			5,232,373		95,037		(31,398	)		(599,328	)		1,091,588			45,268			10,924			5,844,464

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
KEPCO-Uhde Inc.	￦		58		—		—			—			(43	)		—			2			17
Shuweihat Asia Power Investment B.V.			37,069		—		—			(3,545	)		(1,303	)		34,231			—			66,452
Shuweihat Asia Operation & Maintenance Company			1,380		—		—			(995	)		1,154			92			—			1,631
Waterbury Lake Uranium L.P.			21,590		—		—			—			1			159			—			21,750
ASM-BG Investicii AD			18,692		—		(6,255	)		(2,395	)		2,979			1,534			—			14,555
RES Technology AD			16,703		—		(3,673	)		(333	)		1,427			1,009			—			15,133
KV Holdings, Inc.			2,527		—		—			(394	)		7,747			(221	)		—			9,659
KEPCO SPC Power Corporation			198,979		—		—			(34,280	)		27,591			(12,696	)		—			179,594
Gansu Datang Yumen Wind Power Co., Ltd.			6,635		—		—			—			(464	)		(147	)		—			6,024
Datang Chifeng Renewable Power Co., Ltd.			204,587		—		—			(8,732	)		2,849			(6,722	)		—			191,982
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			44,217		—		—			(2,694	)		3,936			(1,061	)		—			44,398
Rabigh Electricity Company			143,678		—		—			(11,447	)		31,523			50,853			—			214,607
Rabigh Operation & Maintenance Company Limited			4,071		—		—			(2,735	)		3,866			(89	)		—			5,113
Jamaica Public Service Company Limited			294,649		—		—			(7,752	)		28,541			19,494			(3,525	)		331,407
KW Nuclear Components Co., Ltd.			15,734		—		—			(833	)		2,189			—			—			17,090
Busan Shinho Solar Power Co., Ltd.			5,841		—		—			(478	)		1,356			—			—			6,719
Global Trade Of Power System Co., Ltd.			597		—		—			—			101			—			—			698
Expressway Solar-light Power Generation Co., Ltd.			3,084		—		—			—			1,670			—			—			4,754
Amman Asia Electric Power Company			178,679		—		—			(19,350	)		23,442			37,483			—			220,254
KAPES, Inc.			—		—		—			—			—			—			—			—
Honam Wind Power Co., Ltd.			4,041		—		—			(174	)		952			—			—			4,819
Korea Power Engineering Service Co., Ltd.			5,415		—		—			(86	)		145			—			69			5,543
Chun-cheon Energy Co., Ltd.			25,896		—		—			—			6,148			—			—			32,044
Yeonggwangbaeksu Wind Power Co., Ltd.			2,728		—		—			—			423			—			—			3,151
Nghi Son 2 Power LLC			—		172,480		—			—			51,218			185,141			—			408,839
Kelar S.A.			86,695		—		—			—			3,695			21,241			5,506			117,137
PT. Tanjung Power Indonesia			46,546		30,147		—			(6,104	)		4,645			18,323			(650	)		92,907
Incheon New Power Co., Ltd.			—		—		—			—			198			—			—			198
Seokmun Energy Co., Ltd.			13,842		—		—			—			3,494			—			—			17,336
Daehan Wind Power PSC			5,154		—		—			—			2,446			6,323			—			13,923
Barakah One Company			—		—		—			—			—			—			—			—
Nawah Energy Company			294		—		—			—			1			20			—			315
Momentum			368		—		—			(369	)		345			1			—			345
Daegu Green Power Co., Ltd.			24,054		—		—			—			5,079			—			227			29,360
Yeonggwang Wind Power Co., Ltd.			17,646		—		—			—			3,067			—			—			20,713
Chester Solar IV SpA			—		—		—			—			202			(17	)		(4	)		181
Chester Solar V SpA			25		—		—			—			129			3			(1	)		156
Diego de Almagro Solar SpA			362		—		—			—			154			2			22			540
South Jamaica Power Company Limited			37,360		—		—			—			6,625			2,452			—			46,437
Daesan Green Energy Co., Ltd.			21,244		—		—			—			(2,030	)		—			4			19,218
RE Holiday Holdings LLC			73,167		—		—			(2,288	)		2,526			11,965			—			85,370
RE Pioneer Holdings LLC			47,015		—		—			(1,337	)		(275	)		9,769			—			55,172
RE Barren Ridge 1 Holdings LLC			1,883		—		—			(1,625	)		(2,886	)		5,978			—			3,350
RE Astoria 2 LandCo LLC			5,998		—		—			(388	)		571			418			—			6,599
RE Barren Ridge LandCo LLC			2,120		—		—			(160	)		225			148			—			2,333
Laurel SpA			290		—		—			—			245			3			16			554
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			3,625		—		—			—			26			—			—			3,651
Chile Solar JV SpA			32,457		—		(24,894	)		—			159			2,097			—			9,819
Cheong-Song Noraesan Wind Power Co., Ltd.			4,106		—		—			(672	)		832			—			(3	)		4,263
Chester Solar I SpA			1,120		—		—			—			120			(1	)		75			1,314
Solar Philippines Calatagan Corporation			58,231		—		—			(1,710	)		6,081			(5,700	)		—			56,902
Saemangeum Solar Power Co., Ltd.			23,939		—		—			—			(388	)		—			—			23,551
Chungsongmeon BongSan wind power Co., Ltd.			3,808		—		—			—			(338	)		—			—			3,470
Jaeun Resident Wind Power Plant Co., Ltd.			1,958		—		—			—			278			—			—			2,236
DE Energia SpA			8,921		—		—			—			—			615			—			9,536

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
Dangjin Eco Power Co., Ltd.	￦		26,109		—		—			—			233			513			4			26,859
Haemodum Solar Co., Ltd.			3,081		—		—			—			286			—			—			3,367
Yangyang Wind Power Co., Ltd.			11,191		—		—			—			(327	)		—			—			10,864
HORUS SOLAR, S.A. DE C.V.			5,842		—		—			—			841			293			—			6,976
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			4,536		—		—			—			68			295			—			4,899
SUNMEX RENOVABLES, S.A. DE C.V.			1,610		—		—			—			(151	)		198			—			1,657
Stavro Holding II A.B.			17,627		952		—			—			157			(1,687	)		122			17,171
Solaseado Solar Power Co., Ltd.			9,891		—		—			—			6,342			—			—			16,233
Yeongam Solar Power Co., Ltd.			6,838		—		—			—			3,041			—			—			9,879
Samsu Wind Power Co., Ltd.			2,828		—		—			—			377			—			—			3,205
Pulau Indah Power Plant Sdn. Bhd.			22,099		—		—			—			1,681			3,034			—			26,814
Sam-Yang Photovoltaic Power Co., Ltd.			4,993		—		—			—			(123	)		—			(4,870	)		—
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			21,456		485		(406	)		(1,415	)		1,603			—			—			21,723
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			16,288		—		(687	)		—			(14	)		—			—			15,587
PT Barito Wahana Tenaga			81,595		39		—			—			13,352			42,061			—			137,047
Cheongna Energy Co., Ltd.			11,198		—		—			—			(440	)		—			—			10,758
Naepo Green Energy Co., Ltd.			—		—		—			—			—			—			—			—
Dayone Energy Co., Ltd.			—		—		—			—			—			—			—			—
OneEnergy Asia Limited			79,700		39,033		—			—			(18,294	)		71,779			—			172,218
KAS Investment I LLC			15,273		—		—			—			2,426			548			—			18,247
KAS Investment II LLC			15,213		—		—			—			2,082			878			—			18,173
Energyco Co., Ltd.			1,535		—		—			—			655			—			—			2,190
CAES, LLC			18,435		—		—			(217	)		(198	)		1,756			1,029			20,805
Hapcheon Floating Photovoltaic Power Plant Inc.			6,971		—		—			—			1,500			—			—			8,471
Busan Industrial Solar Power Co., Ltd.			612		—		—			—			556			—			—			1,168
Bitsolar Energy Co., Ltd.			352		—		—			—			—			—			—			352
Pulau Indah O&M Sdn. Bhd.			—		—		—			—			—			—			—			—
Guadalupe Solar SpA			659		—		—			—			221			33			—			913
Omisan Wind Power Co., Ltd.			10,633		—		—			—			(222	)		—			—			10,411
Foresight Iberian Solar Group Holding, S.L.			9,743		1,781		—			—			(1,016	)		3			54			10,565
Yeongwol Eco Wind Co., Ltd.			3,196		—		—			—			(41	)		—			—			3,155
Gurae Resident Power Co., Ltd.			395		—		—			—			(4	)		—			—			391
Cheongju Eco Park Co., Ltd.			5,465		—		—			—			5,025			—			—			10,490
Enel X Midland Photovoltaic, LLC			1,688		—		—			—			168			—			—			1,856
Geumsungsan Wind Power Co., Ltd.			6,053		—		—			—			(2,560	)		—			—			3,493
KEPCO KPS CARABAO Corp.			386		—		—			(104	)		(105	)		—			—			177
Prime Swedish Holding AB			15,441		20,896		—			—			(261	)		—			169			36,245
Goheung New Energy Co., Ltd.			11,708		—		—			—			124			—			—			11,832
Gunsan Land Solar Co., Ltd.			19,317		—		—			—			8,220			7			—			27,544
CapMan Lynx SCA, SICAR			9,976		—		—			—			(10,195	)		5,173			(4,954	)		—
International Offshore Power Transmission Holding Company Limited			—		—		—			—			—			—			—			—
Pyeongchang Wind Power Co., Ltd.			—		—		—			—			—			—			14,464			14,464
Eumseong Eco Park Co., Ltd.			—		5,741		—			—			(184	)		—			—			5,557
Songsan Green Energy Co., Ltd.			—		1,400		—			—			(13	)		—			—			1,387

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(3)	Changes in investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Beginning balance		Acquisitions			Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
Changwon Nu-ri Energy Co., Ltd.	￦		—		500			—			—			(3	)		—			—			497
Hasami Wind Farm Corporation			—		1,596			—			—			(7	)		—			—			1,589
PungBack Wind Farm Corporation			—		7,884			—			—			(1,141	)		—			—			6,743
Trumbull Asset Management, LLC			—		—			—			—			252			(1	)		(5	)		246
S-Power Chile SpA			—		127			—			—			—			—			—			127
Seungmun Green Energy			—		8,973			—			—			120			(39	)		—			9,054
Seobusambo highway photovoltaics Co., Ltd.			—		(1	)		—			—			—			—			3,067			3,066

			2,239,011		292,033			(35,915	)		(112,612	)		246,705			507,544			10,818			3,147,584

	￦		7,471,384		387,070			(67,313	)		(711,940	)		1,338,293			552,812			21,742			8,992,048

F-11

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows:


2022
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Associates>
Korea Gas Corporation (*1)	￦		62,424,983		52,014,243		51,724,287		1,497,008
Korea Electric Power Industrial Development Co., Ltd.			148,112		40,946		336,333		15,434
YTN Co., Ltd.			364,115		107,324		152,187		7,250
Gangwon Wind Power Co., Ltd.			86,758		6,029		40,130		20,163
Hyundai Green Power Co., Ltd.			773,998		360,926		105,374		5,010
Korea Power Exchange			311,691		36,564		118,501		1,036
Taebaek Wind Power Co., Ltd.			27,562		3,394		7,565		551
Taebaek Guinemi Wind Power Co., Ltd.			44,036		28,709		6,793		1,906
Daeryun Power Co., Ltd.			1,201,510		799,370		472,211		4,999
KNH Solar Co., Ltd.			13,584		2,905		4,348		2,173
SPC Power Corporation			254,951		26,417		80,630		25,614
Gemeng International Energy Co., Ltd.			7,796,180		5,460,183		3,183,398		11,637
PT. Cirebon Electric Power			691,311		199,987		287,261		53,730
KNOC Nigerian East Oil Co., Ltd.			26,491		109,974		—		(72	)
KNOC Nigerian West Oil Co., Ltd.			28,537		105,292		—		(72	)
PT Wampu Electric Power			209,815		127,764		21,773		12,713
PT. Bayan Resources TBK			4,994,538		2,518,129		6,076,844		3,042,123
S-Power Co., Ltd.			937,067		646,411		1,091,425		37,104
Pioneer Gas Power Limited			271,340		477,127		—		(46,290	)
Eurasia Energy Holdings			648		1,156		—		—
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,371,292		904,907		174,693		61,020
PT. Mutiara Jawa			26,024		13,622		15,421		4,912
Samcheok Eco Materials Co., Ltd.			24,952		1,609		11,907		(1,127	)
Noeul Green Energy Co., Ltd.			82,611		101,472		23,493		(31,970	)
Goseong Green Power Co., Ltd.			5,518,258		4,516,607		1,999,825		26,981
Gangneung Eco Power Co., Ltd.			4,907,872		4,900,408		435,755		(142,387	)
Shin Pyeongtaek Power Co., Ltd.			1,203,406		839,568		957,062		100,554
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			1,788		802		558		200
Dongducheon Dream Power Co., Ltd.			1,521,089		1,219,018		2,240,175		43,072
Jinbhuvish Power Generation Pvt. Ltd.			60,477		12,489		—		—
Daejung Offshore Wind Power Co., Ltd.			5,350		2,013		—		(228	)
GS Donghae Electric Power Co., Ltd.			2,130,287		1,365,156		1,053,112		46,226
Daegu Photovoltaic Co., Ltd.			13,254		3,431		4,755		2,914
Busan Green Energy Co., Ltd.			168,588		153,432		72,290		(7,409	)
Gunsan Bio Energy Co., Ltd.			8,397		29,524		—		(649	)
Hansuwon KNP Co., Ltd.			1,887		368		2,149		210
Korea Electric Power Corporation Fund			29,530		130		8,034		7,854
Energy Infra Asset Management Co., Ltd.			12,874		918		4,954		1,354
Daegu clean Energy Co., Ltd.			368		324		—		(1	)
YaksuESS Co., Ltd.			5,984		4,314		851		(146	)
Nepal Water & Energy Development Company Private Limited			241,061		141,199		70,923		(1,364	)
Gwangyang Green Energy Co., Ltd.			170,390		45,260		—		(1,923	)
PND solar Co., Ltd.			36,174		31,868		5,940		217
Hyundai Eco Energy Co., Ltd.			181,566		142,533		29,209		10,270
YeongGwang Yaksu Wind Electric Co., Ltd.			40,712		39,924		6,628		1,480
Green Energy Electricity Generation Co., Ltd.			75,033		72,300		1,404		(488	)
Korea Energy Solutions Co., Ltd.			843		377		437		(185	)
ITR Co., Ltd.			446		472		188		(190	)
Structure test network Co., Ltd.			1,948		383		732		202
Namjeongsusang Solar Power Operation Co., Ltd.			55,616		53,261		7,724		83
Indeck Niles Development, LLC			1,178,303		762,139		302,041		(22,541	)
Indeck Niles Asset Management, LLC			299		16		1,863		1,136
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			14,356		210		826		796
Suwon New Power Co., Ltd.			2,142		164		—		11

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Associates>
Gwangbaek Solar Power Investment Co., Ltd.	￦		307,864		296,915		10,270		743
Go deok Clean Energy Co., Ltd.			71,431		60,382		—		(1,101	)
SureDataLab Co., Ltd.			879		140		938		203
SEP Co., Ltd.			38		103		—		(98	)
Hankook Electric Power Information Co., Ltd.			2,334		997		1,797		392
Tronix Co., Ltd.			2,880		2,354		1,938		(226	)
O2&B Global Co., Ltd.			419		238		220		5
Muan Sunshine Solar Power Plant Co., Ltd.			142,911		132,573		19,591		6,467
Bigeum Resident Photovoltaic Power Co., Ltd.			107,690		109,229		—		(537	)
Goesan Solar Park Co., Ltd.			52,235		43,299		7,642		2,292
Saemangeum Heemang Photovoltaic Co., Ltd.			160,695		125,635		29,543		6,481
Bitgoel Eco Energy Co., Ltd.			85,236		66,987		10,054		3,229
Jeju Gimnyeong Wind Power Co., Ltd.			63,471		60,564		12,231		(130	)
Seoroseoro Sunny Power Plant Co., Ltd.			7,015		5,045		1,157		247
Muan Solar park Co., Ltd.			225,894		188,329		36,081		11,339
YuDang Solar Co., Ltd.			22,073		19,144		3,997		957
Anjwa Smart Farm & Solar City Co., Ltd.			278,806		239,581		42,477		9,672
Daewon Green Energy Co., Ltd.			141,974		124,460		45,095		4,037
G.GURU Co., Ltd.			1,228		12		478		(423	)
UD4M Co., Ltd.			1,322		197		1,109		59
Dongbu Highway Solar Co., Ltd.			17,935		16,426		2,901		439
Seobu Highway Solar Co., Ltd.			18,236		16,655		3,052		138
Korea Energy Data Co., Ltd.			339		128		308		5
Gangneung Sacheon Fuel Cell Co., Ltd.			108,688		98,470		—		(2,720	)
KOSTURE Co., Ltd.			180		24		293		32
Taebaek Gadeoksan Wind Power Co., Ltd.			197,944		139,004		31,534		19,406
Chuncheon Green Energy Co., Ltd.			159,151		138,925		—		(858	)
Yeomsubong Wind Power Co., Ltd.			4,369		2,829		—		(859	)
Yeongyang Wind Power Corporation II			104,821		86,984		—		(1,678	)
Haeparang Energy Co., Ltd.			19,394		10,721		—		(211	)
Saemangeum Sebit Power Plant Co., Ltd.			167,822		131,383		23,159		7,742
Boulder Solar III, LLC			1,896		—		—		—
PlatformN. Co., Ltd.			379		94		486		(70	)
PT. Cirebon Energi Prasarana			3,361,288		2,670,941		319,986		36,451
Green Radiation Co., Ltd.			111		34		89		(93	)
Future Convergence Technology Laboratory. Co., Ltd.			551		302		9		(130	)
SC E&G. Co,. Ltd.			1,199		131		1,048		609
Wang San Engineering. Co,. Ltd.			1,275		447		754		499
ACE			100		—		—		—
Environment and Energy Co., Ltd.			93		—		—		(7	)
Santiago Solar Power SpA			56,138		29,390		—		(2,943	)
Yanggu Floating Photovoltaic Power Plant Inc.			3,115		—		—		—
<Joint ventures>
KEPCO-Uhde Inc.			48		15		—		(84	)
Shuweihat Asia Power Investment B.V.			135,646		29		—		(2,660	)
Shuweihat Asia Operation & Maintenance Company			3,037		71		3,013		2,099
Waterbury Lake Uranium L.P.			66,706		117		—		—
ASM-BG Investicii AD			72,999		43,889		16,056		6,230
RES Technology AD			62,345		32,079		11,205		3,018
KV Holdings, Inc.			24,149		1		1		353
KEPCO SPC Power Corporation			267,904		29,082		253,145		44,751
Gansu Datang Yumen Wind Power Co., Ltd.			67,651		52,592		10,048		(1,161	)
Datang Chifeng Renewable Power Co., Ltd.			835,331		355,377		140,343		42,889
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			168,680		57,685		29,459		4,919

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Joint ventures>
Rabigh Electricity Company	￦		2,520,946		1,855,836		322,108		65,550
Rabigh Operation & Maintenance Company Limited			23,664		10,882		32,572		9,176
Jamaica Public Service Company Limited			2,310,611		1,515,361		1,499,897		69,458
KW Nuclear Components Co., Ltd.			40,381		2,013		16,968		6,755
Busan Shinho Solar Power Co., Ltd.			36,868		9,991		10,543		5,424
Global Trade Of Power System Co., Ltd.			5,628		3,222		8,434		351
Expressway Solar-light Power Generation Co., Ltd.			14,248		4,740		3,711		1,654
Amman Asia Electric Power Company			759,885		392,795		28,665		39,090
KAPES, Inc.			82,943		45,068		20,006		3,797
Honam Wind Power Co., Ltd.			34,028		17,522		8,781		3,283
Korea Power Engineering Service Co., Ltd.			20,931		1,817		9,176		500
Chun-cheon Energy Co., Ltd.			629,202		521,212		585,223		19,940
Yeonggwangbaeksu Wind Power Co., Ltd.			80,042		59,070		14,150		2,764
Nghi Son 2 Power LLC			3,652,801		2,835,123		589,023		102,436
Kelar S.A.			689,802		514,085		107,577		943
PT. Tanjung Power Indonesia			730,239		464,791		99,169		13,619
Incheon New Power Co., Ltd.			2,633		755		4,497		1,244
Seokmun Energy Co., Ltd.			212,509		152,731		61,513		12,064
Daehan Wind Power PSC			145,065		117,219		17,958		5,524
Barakah One Company			33,587,352		34,422,965		498,129		(444,338	)
Nawah Energy Company			338,883		337,134		395,580		3
Momentum			7,315		6,280		30,864		1,036
Daegu Green Power Co., Ltd.			551,431		459,881		516,254		9,364
Yeonggwang Wind Power Co., Ltd.			233,695		189,737		31,221		6,700
Chester Solar IV SpA			12,728		12,469		1,521		(174	)
Chester Solar V SpA			4,364		4,315		520		83
Diego de Almagro Solar SpA			15,908		14,946		1,877		(288	)
South Jamaica Power Company Limited			521,558		289,359		314,064		33,348
Daesan Green Energy Co., Ltd.			245,826		190,918		101,689		(6,641	)
RE Holiday Holdings LLC			351,243		180,503		22,671		3,022
RE Pioneer Holdings LLC			263,232		152,888		15,701		369
RE Barren Ridge 1 Holdings LLC			226,504		100,436		11,740		(903	)
RE Astoria 2 LandCo LLC			13,517		319		1,004		913
RE Barren Ridge LandCo LLC			4,761		95		389		357
Laurel SpA			11,221		10,447		1,424		54
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			29,517		74		—		(260	)
Chile Solar JV SpA			75,246		55,609		7,842		6,425
Cheong-Song Noraesan Wind Power Co., Ltd.			55,948		41,464		7,988		1,916
Chester Solar I SpA			13,246		10,933		1,094		(221	)
Solar Philippines Calatagan Corporation			113,327		36,756		17,728		10,194
Saemangeum Solar Power Co., Ltd.			35,890		6,817		—		(479	)
Chungsongmeon BongSan wind power Co., Ltd.			81,030		75,207		—		(1,120	)
Jaeun Resident Wind Power Plant Co., Ltd.			89,756		82,047		—		(190	)
DE Energia SpA			48,350		62,481		5,959		(1,109	)
Dangjin Eco Power Co., Ltd.			98,714		20,721		4,185		700
Haemodum Solar Co., Ltd.			22,974		16,103		2,556		581
Yangyang Wind Power Co., Ltd.			107,471		85,829		—		(634	)
HORUS SOLAR, S.A. DE C.V.			156,436		133,714		5,568		5,628
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			173,262		155,009		468		457
SUNMEX RENOVABLES, S.A. DE C.V.			129,502		118,449		—		(1,008	)
Stavro Holding II A.B.			85,883		27		—		61
Solaseado Solar Power Co., Ltd.			363,492		325,262		51,198		16,301
Yeongam Solar Power Co., Ltd.			329,714		281,791		44,568		8,563
Samsu Wind Power Co., Ltd.			71,123		54,254		10,118		1,987

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Joint ventures>
Pulau Indah Power Plant Sdn. Bhd.	￦		760,536		675,853		797		6,723
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			71,851		74		4,850		5,431
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			17,341		22		38		(10	)
PT Barito Wahana Tenaga			447,688		—		—		49,471
Cheongna Energy Co., Ltd.			385,935		368,340		100,200		(889	)
Naepo Green Energy Co., Ltd.			448,309		499,528		8,905		(34,347	)
Dayone Energy Co., Ltd.			470,677		530,304		278,363		(12,893	)
OneEnergy Asia Limited			1,039,987		673,223		—		16,041
KAS Investment I LLC			61,907		861		1,603		6,998
KAS Investment II LLC			61,661		861		1,592		6,967
Energyco Co., Ltd.			56,996		52,304		7,898		2,258
CAES, LLC			49,676		6		—		(547	)
Hapcheon Floating Photovoltaic Power Plant Inc.			78,768		61,561		12,705		3,061
Busan Industrial Solar Power Co., Ltd.			21,149		18,016		3,190		901
Bitsolar Energy Co., Ltd.			78,779		83,324		9,557		261
Pulau Indah O&M Sdn. Bhd.			—		—		—		—
Guadalupe Solar SpA			10,148		8,790		924		(43	)
Omisan Wind Power Co., Ltd.			142,274		117,881		—		(519	)
Foresight Iberian Solar Group Holding, S.L.			94,181		81,997		—		(1,365	)
Yeongwol Eco Wind Co., Ltd.			87,856		83,281		—		(144	)
Gurae Resident Power Co., Ltd.			11,649		10,467		—		(19	)
Cheongju Eco Park Co., Ltd.			152,139		116,639		66,260		17,319
Enel X Midland Photovoltaic, LLC			10,289		1,010		1,684		837
Geumsungsan Wind Power Co., Ltd.			125,324		115,196		—		(1,770	)
KEPCO KPS CARABAO Corp.			2,025		1,582		611		(327	)
Prime Swedish Holding AB			77,942		114		—		(577	)
Goheung New Energy Co., Ltd.			136,682		113,393		—		(1,591	)
Gunsan Land Solar Co., Ltd.			158,371		121,785		28,828		12,154
CapMan Lynx SCA, SICAR			112,718		102,810		504		(16,780	)
International Offshore Power Transmission Holding Company Limited			4,680		71,468		—		(68,093	)
Pyeongchang Wind Power Co., Ltd.			70,599		45,661		14,524		3,693
Eumseong Eco Park Co., Ltd.			136,909		119,736		—		(636	)
Songsan Green Energy Co., Ltd.			5,500		—		—		(69	)
Changwon Nu-ri Energy Co., Ltd.			1,490		—		—		(10	)
Hasami Wind Farm Corporation			3,100		—		—		(23	)
PungBack Wind Farm Corporation			46,957		31,667		—		(3,089	)
Trumbull Asset Management, LLC			316		—		656		323
S-Power Chile SpA			2,430		2,450		1,334		22
Seungmun Green Energy			46,283		18,843		—		367
Seobusambo highway photovoltaics Co., Ltd.			8,286		4,453		217		265

(*1)	The profit for the year ended December 31, 2022 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Associates>
Korea Gas Corporation (*1)	￦		43,669,902		34,550,567		27,520,756		950,757
Korea Electric Power Industrial Development Co., Ltd.			158,163		73,278		312,705		7,233
YTN Co., Ltd.			367,950		126,062		137,439		51,044
Gangwon Wind Power Co., Ltd.			71,153		1,121		19,623		5,433
Hyundai Green Power Co., Ltd.			812,287		391,754		101,818		(280	)
Korea Power Exchange			331,640		61,912		110,075		492
Taebaek Wind Power Co., Ltd.			30,375		3,176		5,744		1,588
Taebaek Guinemi Wind Power Co., Ltd.			43,411		29,985		5,910		1,371
Pyeongchang Wind Power Co., Ltd.			69,939		48,295		10,087		1,537
Daeryun Power Co., Ltd.			757,157		476,152		188,193		(10,232	)
Changjuk Wind Power Co., Ltd.			29,539		1,690		6,213		3,265
KNH Solar Co., Ltd.			13,859		5,423		3,222		805
SPC Power Corporation			242,058		18,535		54,042		35,441
Gemeng International Energy Co., Ltd.			8,151,333		5,976,164		2,511,377		(404,570	)
PT. Cirebon Electric Power			697,614		254,089		273,650		39,965
KNOC Nigerian East Oil Co., Ltd.			24,693		102,722		—		(99	)
KNOC Nigerian West Oil Co., Ltd.			26,625		98,360		—		(99	)
PT Wampu Electric Power			209,172		132,917		20,294		7,102
PT. Bayan Resources TBK			2,884,474		743,452		3,264,057		1,456,893
S-Power Co., Ltd.			856,963		603,519		608,259		24,998
Pioneer Gas Power Limited			282,577		438,366		—		(36,864	)
Eurasia Energy Holdings			606		1,082		—		—
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,321,406		947,430		161,686		76,996
PT. Mutiara Jawa			24,355		15,498		10,958		2,835
Samcheok Eco Materials Co., Ltd.			26,545		1,854		14,281		1,237
Noeul Green Energy Co., Ltd.			109,354		96,222		36,029		(1,269	)
Goseong Green Power Co., Ltd.			5,483,090		4,508,569		988,933		124,639
Gangneung Eco Power Co., Ltd.			4,001,681		3,851,537		—		(4,188	)
Shin Pyeongtaek Power Co., Ltd.			1,028,028		764,551		653,117		57,202
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			1,823		1,033		426		46
Dongducheon Dream Power Co., Ltd.			1,398,244		1,139,521		750,127		(16,685	)
Jinbhuvish Power Generation Pvt. Ltd.			62,926		12,995		—		—
Daejung Offshore Wind Power Co., Ltd.			5,321		1,664		—		(149	)
GS Donghae Electric Power Co., Ltd.			2,149,060		1,432,083		760,323		44,035
Daegu Photovoltaic Co., Ltd.			13,046		4,970		3,519		1,621
Busan Green Energy Co., Ltd.			163,016		145,664		45,088		(10,843	)
Gunsan Bio Energy Co., Ltd.			8,503		28,981		—		(1,496	)
Korea Electric Vehicle Charging Service			13,351		6,207		13,808		(1,022	)
Hansuwon KNP Co., Ltd.			1,409		100		836		64
Korea Electric Power Corporation Fund			49,150		237		9,773		9,534
Energy Infra Asset Management Co., Ltd.			11,196		426		4,703		1,306
Daegu clean Energy Co., Ltd.			368		324		—		(1	)
YaksuESS Co., Ltd.			6,999		4,535		1,715		903
Nepal Water & Energy Development Company Private Limited			153,184		58,545		—		(642	)
Gwangyang Green Energy Co., Ltd.			128,375		1,136		—		(688	)
PND Solar Co., Ltd.			37,152		33,444		5,078		(128	)
Hyundai Eco Energy Co., Ltd.			186,309		158,111		25,762		6,921
YeongGwang Yaksu Wind Electric Co., Ltd.			40,484		41,176		7,066		(914	)
Green Energy Electricity Generation Co., Ltd.			75,664		72,442		2,796		(58	)
Korea Energy Solutions Co., Ltd.			654		40		228		(347	)
ITR Co., Ltd.			529		372		135		(29	)
Structure test network Co., Ltd.			1,665		400		1,451		1,134
Namjeongsusang Solar Power Operation Co., Ltd.			56,376		54,104		7,095		(1,280	)
Indeck Niles Development, LLC			1,051,557		729,078		—		(25,184	)
Indeck Niles Asset Management, LLC			347		13		2,232		1,135

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Associates>
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	￦		14,778		211		848		815
Suwon New Power Co., Ltd.			1,997		30		—		2
KPGE Inc.			1,086		20		709		77
Gwangbaek Solar Power Investment Co., Ltd.			320,001		309,796		14,615		125
Go deok Clean Energy Co., Ltd.			65,566		54,811		—		(2,482	)
SureDataLab Co., Ltd.			612		79		733		205
SEP Co., Ltd.			132		100		—		(2	)
Hankook Electric Power Information Co., Ltd.			1,512		876		1,887		229
Tronix Co., Ltd.			1,002		455		2,228		89
O2&B Global Co., Ltd.			231		54		345		3
Muan Sunshine Solar Power Plant Co., Ltd.			142,858		138,987		15,582		(156	)
Bigeum Resident Photovoltaic Power Co., Ltd.			22,159		23,158		—		(608	)
Goesan Solar Park Co., Ltd.			52,443		45,799		6,388		836
Saemangeum Heemang Photovoltaic Co., Ltd.			157,298		130,158		902		(2,237	)
Bitgoel Eco Energy Co., Ltd.			51,471		36,450		—		(900	)
Jeju Gimnyeong Wind Power Co., Ltd.			65,754		62,716		6,915		(2,085	)
Seoroseoro Sunny Power Plant Co., Ltd.			5,833		4,186		469		36
Muan Solar Park Co., Ltd.			226,920		198,132		30,990		8,639
YuDang Solar Co., Ltd.			22,430		19,604		3,452		626
Anjwa Smart Farm & Solar City Co., Ltd.			278,981		249,143		37,691		5,996
Daewon Green Energy Co., Ltd.			131,218		116,100		18		(130	)
G.GURU Co., Ltd.			1,644		8		58		(346	)
UD4M Co., Ltd.			1,359		205		1,004		196
Dongbu Highway Solar Co., Ltd.			18,794		17,721		2,394		163
Seobu Highway Solar Co., Ltd.			19,828		18,384		2,647		315
Korea Energy Data Co., Ltd.			238		27		86		6
Gangneung Sacheon Fuel Cell Co., Ltd.			2,758		3		—		(123	)
Kosture Co., Ltd.			150		26		166		11
Digital Innovation Growth Fund			12,857		—		4		(143	)
Taebaek Gadeoksan Wind Power Co., Ltd.			166,172		124,570		22,773		8,732
Chuncheon Green Energy Co., Ltd.			4,901		20		—		(101	)
Yeomsubong Wind Power Co., Ltd.			400		396		—		(17	)
Yeongyang Wind Power Corporation II			28,972		9,456		—		(1,233	)
Haeparang Energy Co., Ltd.			9,566		681		—		(2	)
Saemangeum Sebit Power Plant Co., Ltd.			105,259		96,963		—		(190	)

<Joint ventures>
KEPCO-Uhde Inc.			128		14		—		(84	)
Shuweihat Asia Power Investment B.V.			75,652		—		—		23,905
Shuweihat Asia Operation & Maintenance Company			2,586		77		2,821		2,002
Waterbury Lake Uranium L.P.			65,240		14		—		—
ASM-BG Investicii AD			74,977		37,593		13,161		5,365
RES Technology AD			63,495		30,090		8,142		2,220
KV Holdings, Inc.			6,318		1		10		2,405
KEPCO SPC Power Corporation			290,981		26,381		181,443		49,499
Gansu Datang Yumen Wind Power Co., Ltd.			75,268		58,680		9,666		(1,547	)
Datang Chifeng Renewable Power Co., Ltd.			827,213		315,746		120,989		24,398
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			198,437		87,895		29,094		3,905
Rabigh Electricity Company			2,410,335		1,910,203		266,822		34,268
Rabigh Operation & Maintenance Company Limited			29,107		18,930		32,079		9,808
Jamaica Public Service Company Limited			2,174,800		1,469,297		1,113,943		41,277
KW Nuclear Components Co., Ltd.			42,033		6,678		32,938		12,335
Busan Shinho Solar Power Co., Ltd.			37,016		13,653		7,918		3,261
Global Trade Of Power System Co., Ltd.			2,443		385		6,355		76
Expressway Solar-light Power Generation Co., Ltd.			13,747		3,113		2,637		466
Amman Asia Electric Power Company			731,745		433,946		17,753		30,815

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Joint ventures>
KAPES, Inc.	￦		92,790		59,099		87,775		1,571
Honam Wind Power Co., Ltd.			33,623		19,800		5,395		531
Korea Power Engineering Service Co., Ltd.			24,068		5,397		11,259		709
Chun-cheon Energy Co., Ltd.			610,650		523,223		327,534		(5,451	)
Yeonggwangbaeksu Wind Power Co., Ltd.			82,439		64,290		8,411		(2,302	)
Nghi Son 2 Power LLC			2,982,805		3,020,684		548,027		84,276
Kelar S.A.			655,236		526,063		84,504		3,641
PT. Tanjung Power Indonesia			713,715		580,727		89,491		14,511
Incheon New Power Co., Ltd.			3,240		2,606		2,336		109
Seokmun Energy Co., Ltd.			219,414		171,682		41,555		(3,434	)
Daehan Wind Power PSC			137,388		127,080		6,794		7,581
Barakah One Company			29,707,801		29,951,656		253,653		4,011
Nawah Energy Company			155,191		153,559		—		—
Momentum			7,546		6,442		34,527		1,105
Daegu Green Power Co., Ltd.			541,304		459,536		295,645		1,796
Yeonggwang Wind Power Co., Ltd.			239,701		202,410		25,892		958
Chester Solar IV SpA			11,966		12,144		1,344		(2,060	)
Chester Solar V SpA			4,034		4,256		440		(601	)
Diego de Almagro Solar SpA			15,155		14,572		1,615		(2,103	)
South Jamaica Power Company Limited			474,664		287,852		224,159		5,743
Daesan Green Energy Co., Ltd.			264,618		203,921		88,147		(3,310	)
RE Holiday Holdings LLC			335,130		188,796		19,724		10,897
RE Pioneer Holdings LLC			220,390		126,361		12,925		9,307
RE Barren Ridge 1 Holdings LLC			201,629		87,291		10,575		(541	)
RE Astoria 2 LandCo LLC			12,294		298		889		799
RE Barren Ridge LandCo LLC			4,328		89		345		315
Laurel SpA			10,566		10,350		1,159		(1,425	)
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			30,809		1,573		—		(916	)
Chile Solar JV SpA			68,445		3,531		3,060		1,408
Cheong-Song Noraesan Wind Power Co., Ltd.			57,047		43,106		7,929		2,309
Chester Solar I SpA			12,965		11,043		1,065		(1,146	)
Solar Philippines Calatagan Corporation			117,324		46,759		19,418		11,782
Saemangeum Solar Power Co., Ltd.			35,323		5,771		—		(631	)
Chungsongmeon BongSan wind power Co., Ltd.			74,683		67,696		—		(1,186	)
Jaeun Resident Wind Power Plant Co., Ltd.			81,477		74,724		—		(1,325	)
DE Energia SpA			49,201		59,587		5,219		(2,954	)
Dangjin Eco Power Co., Ltd.			98,010		22,223		4,139		805
Haemodum Solar Co., Ltd.			23,038		16,750		1,799		45
Yangyang Wind Power Co., Ltd.			53,586		31,291		—		(965	)
Horus Solar, S.A. De C.V.			192,650		177,514		8,392		16,664
Recursos Solares PV De Mexico II, S.A. De C.V.			153,855		138,033		—		4,842
Sunmex Renovables, S.A. De C.V.			90,956		80,218		—		(333	)
Stavro Holding II A.B.			88,220		87		—		(276	)
Solaseado Solar Power Co., Ltd.			367,915		345,987		41,684		4,170
Yeongam Solar Power Co., Ltd.			324,132		292,213		37,301		4,930
Samsu Wind Power Co., Ltd.			69,213		54,331		3,918		1,162
Pulau Indah Power Plant Sdn. Bhd.			404,458		338,635		228		(2,589	)
Sam-Yang Photovoltaic Power Co., Ltd.			50,837		40,647		7,376		150
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			70,910		38		3,428		6,468
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			18,121		23		333		288
PT Barito Wahana Tenaga			266,584		39		—		25,839
Cheongna Energy Co., Ltd.			357,248		338,763		77,640		12,743
Naepo Green Energy Co., Ltd.			222,885		249,415		7,044		(21,392	)
Dayone Energy Co., Ltd.			452,509		504,351		143,870		409

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(4)	Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Total assets		Total liabilities		Sales			Profit (loss) for the year
		In millions of won
<Joint ventures>
OneEnergy Asia Limited	￦		136,247		777		—			(2,844	)
KAS Investment I LLC			52,681		1,583		(19,390	)		(23,007	)
KAS Investment II LLC			52,476		1,581		(19,311	)		(21,801	)
Energyco Co., Ltd.			59,662		57,227		168			(2,514	)
CAES, LLC			43,089		—		—			(923	)
Hapcheon Floating Photovoltaic Power Plant Inc.			73,978		59,832		1,120			(972	)
Busan Industrial Solar Power Co., Ltd.			19,085		17,937		1,879			566
Bitsolar Energy Co., Ltd.			80,307		85,340		8,298			(1,105	)
Pulau Indah O&M Sdn. Bhd.			—		—		—			—
Guadalupe Solar SpA			8,774		7,839		12			(1,119	)
Omisan Wind Power Co., Ltd.			128,724		103,802		—			(320	)
Foresight Iberian Solar Group Holding, S.L.			90,610		79,519		168			(603	)
Yeongwol Eco Wind Co., Ltd.			43,784		39,066		—			421
Gurae Resident Power Co., Ltd.			6,932		5,734		—			42
Cheongju Eco Park Co., Ltd.			138,657		120,485		6,454			(1,708	)
Enel X Midland Photovoltaic, LLC			9,053		611		122			(31	)
Geumsungsan Wind Power Co., Ltd.			66,862		47,906		—			(2,146	)
KEPCO KPS Carabao Corp.			3,482		2,516		5,309			733
Prime Swedish Holding AB			34,257		20		—			(5	)
Goheung New Energy Co., Ltd.			55,145		32,125		—			(2,711	)
Gunsan Land Solar Co., Ltd.			86,654		60,996		432			432
CapMan Lynx SCA, SICAR			113,658		93,706		—			—
International Offshore Power Transmission Holding Company Limited			5		—		—			—

(*1)	The profit for the year ended December 31, 2021 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows:


2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Korea Gas Corporation	￦		9,119,335			20.47	%		1,866,728			—		—			(51,215	)		1,815,513
Korea Electric Power Industrial Development Co., Ltd.			84,885			29.00	%		24,617			—		—			—			24,617
YTN Co., Ltd.			241,863			21.43	%		51,828			—		—			—			51,828
Gangwon Wind Power Co., Ltd.			70,032			15.00	%		10,505			49		—			—			10,554
Hyundai Green Power Co., Ltd.			420,533			29.00	%		121,955			—		—			—			121,955
Korea Power Exchange			269,728			100.00	%		269,728			—		—			—			269,728
Taebaek Wind Power Co., Ltd.			27,199			25.00	%		6,800			—		—			—			6,800
Taebaek Guinemi Wind Power Co., Ltd.			13,426			25.00	%		3,357			—		—			—			3,357
Pyeongchang Wind Power Co., Ltd.			21,644			25.00	%		5,411			—		—			—			5,411
Daeryun Power Co., Ltd.			281,005			9.34	%		26,246			—		—			(820	)		25,426
Changjuk Wind Power Co., Ltd.			27,849			30.00	%		8,355			—		—			—			8,355
KNH Solar Co., Ltd.			8,436			27.00	%		2,278			—		—			—			2,278
SPC Power Corporation			223,523			38.00	%		84,939			—		—			(19,893	)		65,046
Gemeng International Energy Co., Ltd.			2,175,169			34.00	%		739,557			—		—			(144,339	)		595,218
PT. Cirebon Electric Power			443,525			27.50	%		121,969			—		—			—			121,969
KNOC Nigerian East Oil Co., Ltd.			(78,029	)		14.63	%		(11,416	)		—		—			11,416			—
KNOC Nigerian West Oil Co., Ltd.			(71,735	)		14.63	%		(10,495	)		—		—			10,495			—
PT Wampu Electric Power			76,255			46.00	%		35,077			—		—			—			35,077
PT. Bayan Resources TBK			2,141,022			20.00	%		428,204			309,464		—			(76,379	)		661,289
S-Power Co., Ltd.			253,444			49.00	%		124,188			—		(1,402	)		—			122,786
Pioneer Gas Power Limited			(155,789	)		38.50	%		(59,975	)		22,278		—			37,697			—
Eurasia Energy Holdings			(476	)		40.00	%		(190	)		—		—			190			—
Xe-Pian Xe-Namnoy Power Co., Ltd.			373,976			25.00	%		93,494			305		(1,069	)		(289	)		92,441
PT. Mutiara Jawa			8,857			29.00	%		2,569			—		—			—			2,569
Samcheok Eco Materials Co., Ltd.			24,691			25.54	%		6,306			—		—			(6,306	)		—
Noeul Green Energy Co., Ltd.			13,132			29.00	%		3,808			—		—			—			3,808
Goseong Green Power Co., Ltd.			902,746			29.00	%		261,796			—		(938	)		—			260,858
Gangneung Eco Power Co., Ltd.			150,144			1.61	%		2,419			—		(131	)		—			2,288
Shin Pyeongtaek Power Co., Ltd.			263,477			40.00	%		105,391			3,559		(15,876	)		—			93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			790			28.00	%		221			—		—			2			223
Dongducheon Dream Power Co., Ltd.			258,723			34.01	%		87,992			1,757		(2,969	)		(12,582	)		74,198
Jinbhuvish Power Generation Pvt. Ltd.			49,931			5.16	%		2,576			—		—			(2,576	)		—
Daejung Offshore Wind Power Co., Ltd.			3,657			46.59	%		1,704			—		—			—			1,704
GS Donghae Electric Power Co., Ltd.			716,977			34.00	%		243,772			—		—			—			243,772
Daegu Photovoltaic Co., Ltd.			8,076			29.00	%		2,342			—		—			—			2,342
Busan Green Energy Co., Ltd.			17,352			29.00	%		5,032			—		—			—			5,032
Gunsan Bio Energy Co., Ltd.			(20,478	)		18.87	%		(3,864	)		—		—			3,864			—
Korea Electric Vehicle Charging Service			7,144			17.50	%		1,250			—		—			—			1,250
Hansuwon KNP Co., Ltd.			1,309			28.98	%		379			—		—			(160	)		219
Korea Electric Power Corporation Fund			48,913			98.09	%		47,979			—		—			4			47,983
Energy Infra Asset Management Co., Ltd.			10,770			9.90	%		1,066			—		—			—			1,066
Daegu clean Energy Co., Ltd.			44			28.00	%		12			—		—			—			12
YaksuESS Co., Ltd.			2,464			29.00	%		715			1		—			—			716
Nepal Water & Energy Development Company Private Limited			94,639			69.06	%		65,361			972		—			—			66,333
Gwangyang Green Energy Co., Ltd.			127,239			20.00	%		25,448			18		—			—			25,466
PND Solar Co., Ltd.			3,708			29.00	%		1,075			154		—			—			1,229
Hyundai Eco Energy Co., Ltd.			28,198			19.00	%		5,358			214		—			—			5,572
YeongGwang Yaksu Wind Electric Co., Ltd.			(692	)		9.63	%		(67	)		300		—			—			233
Green Energy Electricity Generation Co., Ltd.			3,222			29.00	%		934			779		—			—			1,713
Korea Energy Solutions Co., Ltd.			614			20.00	%		123			—		—			—			123
ITR Co., Ltd.			157			20.00	%		31			1		—			—			32
Structure Test Network Co., Ltd.			1,265			20.00	%		253			53		—			—			306

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Namjeongsusang Solar Power Operation Co., Ltd.	￦		2,272			15.00	%		341			20		—			—			361
Indeck Niles Development, LLC			322,479			56.25	%		181,395			64,878		—			—			246,273
Indeck Niles Asset Management, LLC			334			33.33	%		111			—		—			—			111
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			14,567			49.00	%		7,138			—		—			—			7,138
Suwon New Power Co., Ltd.			1,967			39.90	%		785			—		250			—			1,035
KPGE Inc.			1,066			29.00	%		309			—		—			—			309
Gwangbaek Solar Power Investment Co., Ltd.			10,205			44.00	%		4,490			316		—			—			4,806
Go deok Clean Energy Co., Ltd.			10,755			40.00	%		4,302			—		—			—			4,302
SureDataLab Co., Ltd.			533			23.95	%		128			—		—			—			128
SEP Co., Ltd.			32			21.26	%		7			—		—			—			7
Hankook Electric Power Information Co., Ltd.			636			25.25	%		161			—		—			—			161
Tronix Co., Ltd.			547			20.00	%		109			—		—			—			109
O2&B Global Co., Ltd.			177			20.00	%		35			—		—			—			35
Muan Sunshine Solar Power Plant Co., Ltd.			3,871			20.00	%		774			494		—			—			1,268
Bigeum Resident Photovoltaic Power Co., Ltd.			(999	)		29.90	%		(299	)		24		—			275			—
Goesan Solar Park Co., Ltd.			6,644			29.00	%		1,927			—		—			—			1,927
Saemangeum Heemang Photovoltaic Co., Ltd.			27,140			35.00	%		9,499			739		—			—			10,238
Bitgoel Eco Energy Co., Ltd.			15,021			29.00	%		4,356			—		—			—			4,356
Jeju Gimnyeong Wind Power Co., Ltd.			3,038			30.00	%		911			—		—			—			911
Seoroseoro Sunny Power Plant Co., Ltd.			1,647			42.58	%		701			20		—			—			721
Muan Solar Park Co., Ltd.			28,788			20.00	%		5,758			325		—			—			6,083
YuDang Solar Co., Ltd.			2,826			20.00	%		565			—		—			—			565
Anjwa Smart Farm & Solar City Co., Ltd.			29,838			20.00	%		5,968			816		—			—			6,784
Daewon Green Energy Co., Ltd.			15,118			25.36	%		3,833			44		—			—			3,877
G.GURU Co., Ltd.			1,636			24.65	%		403			—		—			—			403
UD4M Co., Ltd.			1,154			12.50	%		144			—		—			—			144
Dongbu Highway Solar Co., Ltd.			1,073			20.00	%		215			50		—			—			265
Seobu Highway Solar Co., Ltd.			1,444			20.00	%		289			—		—			—			289
Korea Energy Data Co., Ltd.			211			29.37	%		62			—		—			—			62
Gangneung Sacheon Fuel Cell Co., Ltd.			2,755			65.00	%		1,791			87		—			—			1,878
Kosture Co., Ltd.			124			0.26	%		—			—		—			—			—
Digital Innovation Growth Fund			12,857			76.92	%		9,890			—		—			—			9,890
Taebaek Gadeoksan Wind Power Co., Ltd.			41,602			39.65	%		16,495			—		—			—			16,495
Chuncheon Green Energy Co., Ltd.			4,881			68.00	%		3,319			53		—			—			3,372
Yeomsubong Wind Power Co., Ltd.			4			48.72	%		2			93		—			—			95
Yeongyang Wind Power Corporation II			19,516			30.00	%		5,855			2,110		—			—			7,965
Haeparang Energy Co., Ltd.			8,885			25.00	%		2,221			20		—			—			2,241
Saemangeum Sebit Power Plant Co., Ltd.			8,296			69.55	%		5,770			230		—			—			6,000
<Joint ventures>
KEPCO-Uhde Inc.			114			50.85	%		58			—		—			—			58
Shuweihat Asia Power Investment B.V.			75,652			49.00	%		37,069			—		—			—			37,069
Shuweihat Asia Operation & Maintenance Company			2,509			55.00	%		1,380			—		—			—			1,380
Waterbury Lake Uranium L.P.			65,226			33.10	%		21,590			—		—			—			21,590
ASM-BG Investicii AD			37,384			50.00	%		18,692			—		—			—			18,692
RES Technology AD			33,405			50.00	%		16,703			—		—			—			16,703
KV Holdings, Inc.			6,317			40.00	%		2,527			—		—			—			2,527
KEPCO SPC Power Corporation			264,600			75.20	%		198,979			—		—			—			198,979
Gansu Datang Yumen Wind Power Co., Ltd.			16,588			40.00	%		6,635			—		—			—			6,635
Datang Chifeng Renewable Power Co., Ltd.			511,467			40.00	%		204,587			—		—			—			204,587
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			110,542			40.00	%		44,217			—		—			—			44,217
Rabigh Electricity Company			500,132			40.00	%		200,053			—		(55,571	)		(804	)		143,678
Rabigh Operation & Maintenance Company Limited			10,177			40.00	%		4,071			—		—			—			4,071
Jamaica Public Service Company Limited			705,503			40.00	%		282,201			29,357		—			(16,909	)		294,649
KW Nuclear Components Co., Ltd.			35,355			45.00	%		15,910			—		—			(176	)		15,734

F-12

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Joint ventures>
Busan Shinho Solar Power Co., Ltd.	￦		23,363			25.00	%		5,841			—		—			—			5,841
Global Trade Of Power System Co., Ltd.			2,058			29.00	%		597			—		—			—			597
Expressway Solar-light Power Generation Co., Ltd.			10,634			29.00	%		3,084			—		—			—			3,084
Amman Asia Electric Power Company			297,799			60.00	%		178,679			—		—			—			178,679
KAPES, Inc.			33,691			51.00	%		17,182			—		(20,697	)		3,515			—
Honam Wind Power Co., Ltd.			13,823			29.00	%		4,009			32		—			—			4,041
Korea Power Engineering Service Co., Ltd.			18,671			29.00	%		5,415			—		—			—			5,415
Chun-cheon Energy Co., Ltd.			87,427			29.90	%		26,141			3		—			(248	)		25,896
Yeonggwangbaeksu Wind Power Co., Ltd.			18,149			15.00	%		2,722			6		—			—			2,728
Nghi Son 2 Power LLC			(37,879	)		50.00	%		(18,940	)		—		—			18,940			—
Kelar S.A.			129,173			65.00	%		83,962			2,733		—			—			86,695
PT. Tanjung Power Indonesia			132,988			35.00	%		46,546			—		—			—			46,546
Incheon New Power Co., Ltd.			634			29.00	%		184			—		—			(184	)		—
Seokmun Energy Co., Ltd.			47,732			29.00	%		13,842			—		—			—			13,842
Daehan Wind Power PSC			10,308			50.00	%		5,154			—		—			—			5,154
Barakah One Company			(243,855	)		18.00	%		(43,894	)		—		1,058			42,836			—
Nawah Energy Company			1,632			18.00	%		294			—		—			—			294
Momentum			1,104			33.33	%		368			—		—			—			368
Daegu Green Power Co., Ltd.			81,768			54.24	%		44,351			84		—			(20,381	)		24,054
Yeonggwang Wind Power Co., Ltd.			37,291			46.00	%		17,154			492		—			—			17,646
Chester Solar IV SpA			(178	)		45.00	%		(80	)		60		—			20			—
Chester Solar V SpA			(222	)		45.00	%		(100	)		125		—			—			25
Diego de Almagro Solar SpA			583			45.00	%		262			100		—			—			362
South Jamaica Power Company Limited			186,812			20.00	%		37,362			—		—			(2	)		37,360
Daesan Green Energy Co., Ltd.			60,697			35.00	%		21,244			—		—			—			21,244
RE Holiday Holdings LLC			146,334			50.00	%		73,167			—		—			—			73,167
RE Pioneer Holdings LLC			94,029			50.00	%		47,015			—		—			—			47,015
RE Barren Ridge 1 Holdings LLC			114,338			50.00	%		57,169			—		—			(55,286	)		1,883
RE Astoria 2 LandCo LLC			11,996			50.00	%		5,998			—		—			—			5,998
RE Barren Ridge LandCo LLC			4,239			50.00	%		2,120			—		—			—			2,120
Laurel SpA			216			45.00	%		97			193		—			—			290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			29,236			12.37	%		3,616			9		—			—			3,625
Chile Solar JV SpA			64,914			50.00	%		32,457			—		—			—			32,457
Cheong-Song Noraesan Wind Power Co., Ltd.			13,941			29.01	%		4,045			61		—			—			4,106
Chester Solar I SpA			1,922			45.00	%		865			255		—			—			1,120
Solar Philippines Calatagan Corporation			70,565			38.00	%		26,815			—		—			31,416			58,231
Saemangeum Solar Power Co., Ltd.			29,552			81.01	%		23,939			—		—			—			23,939
Chungsongmeon BongSan wind power Co., Ltd.			6,987			29.00	%		2,026			1,782		—			—			3,808
Jaeun Resident Wind Power Plant Co., Ltd.			6,753			29.00	%		1,958			—		—			—			1,958
DE Energia SpA			(10,386	)		49.00	%		(5,089	)		—		—			14,010			8,921
Dangjin Eco Power Co., Ltd.			75,787			34.00	%		25,768			341		—			—			26,109
Haemodum Solar Co., Ltd.			6,288			49.00	%		3,081			—		—			—			3,081
Yangyang Wind Power Co., Ltd.			22,295			50.00	%		11,148			43		—			—			11,191
Horus Solar, S.A. De C.V.			15,136			14.95	%		2,262			3,580		—			—			5,842
Recursos Solares PV De Mexico II, S.A. De C.V.			15,822			14.95	%		2,365			2,171		—			—			4,536
Sunmex Renovables, S.A. De C.V.			10,738			14.95	%		1,605			5		—			—			1,610
Stavro Holding II A.B.			88,133			20.00	%		17,627			—		—			—			17,627
Solaseado Solar Power Co., Ltd.			21,928			38.90	%		8,530			1,361		—			—			9,891
Yeongam Solar Power Co., Ltd.			31,919			19.00	%		6,065			773		—			—			6,838
Samsu Wind Power Co., Ltd.			14,882			19.00	%		2,828			—		—			—			2,828
Pulau Indah Power Plant Sdn. Bhd.			65,823			25.00	%		16,456			5,643		—			—			22,099
Sam-Yang Photovoltaic Power Co., Ltd.			10,190			49.00	%		4,993			—		—			—			4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			70,872			29.53	%		20,929			527		—			—			21,456

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential			Intercompany transaction			Others		Book value
		In millions of won
<Joint ventures>
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream	￦		18,098			90.00	%		16,288			—			—			—		16,288
PT Barito Wahana Tenaga			266,545			30.61	%		81,595			—			—			—		81,595
Cheongna Energy Co., Ltd.			18,485			50.10	%		9,261			3,137			(1,200	)		—		11,198
Naepo Green Energy Co., Ltd.			(26,530	)		29.20	%		(7,747	)		—			—			7,747		—
Dayone Energy Co., Ltd.			(51,842	)		46.30	%		(24,003	)		—			(882	)		24,885		—
OneEnergy Asia Limited			135,470			40.00	%		54,188			25,512			—			—		79,700
KAS Investment I LLC			51,098			29.89	%		15,273			—			—			—		15,273
KAS Investment II LLC			50,895			29.89	%		15,213			—			—			—		15,213
Energyco Co., Ltd.			2,435			29.00	%		706			829			—			—		1,535
CAES, LLC			43,089			36.00	%		15,512			2,923			—			—		18,435
Hapcheon Floating Photovoltaic Power Plant Inc.			14,146			49.00	%		6,932			39			—			—		6,971
Busan Industrial Solar Power Co., Ltd.			1,148			28.02	%		322			290			—			—		612
Bitsolar Energy Co., Ltd.			(5,033	)		27.10	%		(1,364	)		352			—			1,364		352
Pulau Indah O&M Sdn. Bhd.			—			60.00	%		—			—			—			—		—
Guadalupe Solar SpA			935			60.00	%		561			98			—			—		659
Omisan Wind Power Co., Ltd.			24,922			42.00	%		10,467			166			—			—		10,633
Foresight Iberian Solar Group Holding, S.L.			11,091			75.00	%		8,318			1,425			—			—		9,743
Yeongwol Eco Wind Co., Ltd.			4,718			29.00	%		1,368			1,828			—			—		3,196
Gurae Resident Power Co., Ltd.			1,198			29.00	%		347			48			—			—		395
Cheongju Eco Park Co., Ltd.			18,172			29.00	%		5,270			195			—			—		5,465
Enel X Midland Photovoltaic, LLC			8,442			20.00	%		1,688			—			—			—		1,688
Geumsungsan Wind Power Co., Ltd.			18,956			29.00	%		5,497			556			—			—		6,053
KEPCO KPS Carabao Corp.			966			40.00	%		386			—			—			—		386
Prime Swedish Holding AB			34,237			45.00	%		15,407			34			—			—		15,441
Goheung New Energy Co., Ltd.			23,020			46.15	%		10,624			1,084			—			—		11,708
Gunsan Land Solar Co., Ltd.			25,658			75.29	%		19,317			—			—			—		19,317
CapMan Lynx SCA, SICAR			19,952			50.00	%		9,976			—			—			—		9,976
International Offshore Power Transmission Holding Company Limited			5			35.00	%		2			(2	)		—			—		—

(*) The percentage of ownership shown above is after considering the treasury stocks and others.

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Korea Gas Corporation	￦		10,410,740			20.47	%		2,131,078			—		—			(45,782	)		2,085,296
Korea Electric Power Industrial Development Co., Ltd.			107,166			29.00	%		31,078			—		—			—			31,078
YTN Co., Ltd.			256,791			21.43	%		55,027			—		—			—			55,027
Gangwon Wind Power Co., Ltd.			80,729			15.00	%		12,109			49		—			—			12,158
Hyundai Green Power Co., Ltd.			413,072			29.00	%		119,791			—		—			—			119,791
Korea Power Exchange			275,126			100.00	%		275,126			—		—			—			275,126
Taebaek Wind Power Co., Ltd.			24,168			60.00	%		14,501			—		—			—			14,501
Taebaek Guinemi Wind Power Co., Ltd.			15,327			67.25	%		10,307			—		—			2,742			13,049
Daeryun Power Co., Ltd.			402,140			6.85	%		27,547			—		—			(820	)		26,727
KNH Solar Co., Ltd.			10,679			27.00	%		2,883			—		—			—			2,883
SPC Power Corporation			228,534			38.00	%		86,843			—		—			(15,975	)		70,868
Gemeng International Energy Co., Ltd.			2,335,997			34.00	%		794,239			—		—			(215,418	)		578,821
PT. Cirebon Electric Power			491,324			27.50	%		135,114			—		—			—			135,114
KNOC Nigerian East Oil Co., Ltd.			(83,483	)		14.63	%		(12,214	)		—		—			12,214			—
KNOC Nigerian West Oil Co., Ltd.			(76,755	)		14.63	%		(11,229	)		—		—			11,229			—
PT Wampu Electric Power			82,051			46.00	%		37,743			—		—			—			37,743
PT. Bayan Resources TBK			2,476,409			20.00	%		495,282			265,817		—			(76,380	)		684,719
S-Power Co., Ltd.			290,656			49.00	%		142,421			—		(1,293	)		—			141,128
Pioneer Gas Power Limited			(205,787	)		38.50	%		(79,223	)		22,278		—			56,945			—
Eurasia Energy Holdings			(508	)		40.00	%		(203	)		—		—			203			—
Xe-Pian Xe-Namnoy Power Co., Ltd.			466,385			25.00	%		116,596			305		(1,028	)		(289	)		115,584
PT. Mutiara Jawa			12,402			29.00	%		3,597			—		—			—			3,597
Samcheok Eco Materials Co., Ltd.			23,343			25.54	%		5,962			—		—			(5,962	)		—
Noeul Green Energy Co., Ltd.			(18,861	)		29.00	%		(5,470	)		—		—			5,470			—
Goseong Green Power Co., Ltd.			1,001,651			29.00	%		290,479			—		(1,586	)		—			288,893
Gangneung Eco Power Co., Ltd.			7,464			1.61	%		120			—		(134	)		14			—
Shin Pyeongtaek Power Co., Ltd.			363,838			40.00	%		145,535			3,559		(15,271	)		—			133,823
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			986			28.00	%		276			—		—			2			278
Dongducheon Dream Power Co., Ltd.			302,071			34.01	%		102,734			1,757		(2,609	)		(12,582	)		89,300
Jinbhuvish Power Generation Pvt. Ltd.			47,988			5.16	%		2,496			—		—			(2,496	)		—
Daejung Offshore Wind Power Co., Ltd.			3,337			46.59	%		1,555			—		—			—			1,555
GS Donghae Electric Power Co., Ltd.			765,131			34.00	%		260,145			—		—			—			260,145
Daegu Photovoltaic Co., Ltd.			9,823			29.00	%		2,849			—		—			—			2,849
Busan Green Energy Co., Ltd.			15,156			29.00	%		4,395			—		—			—			4,395
Gunsan Bio Energy Co., Ltd.			(21,127	)		18.87	%		(3,986	)		—		—			3,986			—
Hansuwon KNP Co., Ltd.			1,519			28.98	%		440			—		—			(160	)		280
Korea Electric Power Corporation Fund			29,400			98.09	%		28,838			—		—			4			28,842
Energy Infra Asset Management Co., Ltd.			11,956			9.90	%		1,184			—		—			—			1,184
Daegu clean Energy Co., Ltd.			44			28.00	%		12			—		—			—			12
YaksuESS Co., Ltd.			1,670			29.00	%		484			2		—			—			486
Nepal Water & Energy Development Company Private Limited			99,862			69.06	%		68,968			972		—			—			69,940
Gwangyang Green Energy Co., Ltd.			125,130			20.00	%		25,026			18		—			—			25,044
PND solar Co., Ltd.			4,306			29.00	%		1,249			154		—			—			1,403
Hyundai Eco Energy Co., Ltd.			39,033			19.00	%		7,416			215		—			—			7,631
YeongGwang Yaksu Wind Electric Co., Ltd.			788			9.63	%		76			300		—			(220	)		156
Green Energy Electricity Generation Co., Ltd.			2,733			29.00	%		793			778		—			—			1,571
Korea Energy Solutions Co., Ltd.			466			20.00	%		93			—		—			—			93

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction		Others		Book value
		In millions of won
<Associates>
ITR Co., Ltd.	￦		(26	)		20.00	%		(5	)		1		—		4		—
Structure test network Co., Ltd.			1,565			20.00	%		313			53		—		—		366
Namjeongsusang Solar Power Operation Co., Ltd.			2,355			15.00	%		353			20		—		—		373
Indeck Niles Development, LLC			416,164			50.00	%		208,082			93,956		—		—		302,038
Indeck Niles Asset Management, LLC			283			33.33	%		94			—		—		—		94
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			14,146			49.00	%		6,932			—		—		—		6,932
Suwon New Power Co., Ltd.			1,978			33.05	%		654			—		265		—		919
Gwangbaek Solar Power Investment Co., Ltd.			10,949			44.00	%		4,818			315		—		—		5,133
Go deok Clean Energy Co., Ltd.			11,049			40.00	%		4,420			—		—		—		4,420
SureDataLab Co., Ltd.			739			23.95	%		177			—		—		—		177
SEP Co., Ltd.			(65	)		21.26	%		(14	)		—		—		14		—
Hankook Electric Power Information Co., Ltd.			1,337			16.49	%		220			—		—		—		220
Tronix Co., Ltd.			526			12.50	%		66			—		—		—		66
O2&B Global Co., Ltd.			181			20.00	%		36			—		—		—		36
Muan Sunshine Solar Power Plant Co., Ltd.			10,338			20.00	%		2,068			494		—		—		2,562
Bigeum Resident Photovoltaic Power Co., Ltd.			(1,539	)		29.90	%		(460	)		24		—		436		—
Goesan Solar Park Co., Ltd.			8,936			29.00	%		2,591			—		—		—		2,591
Saemangeum Heemang Photovoltaic Co., Ltd.			35,060			35.00	%		12,271			739		—		—		13,010
Bitgoel Eco Energy Co., Ltd.			18,249			49.05	%		8,951			—		—		—		8,951
Jeju Gimnyeong Wind Power Co., Ltd.			2,907			30.00	%		872			—		—		—		872
Seoroseoro Sunny Power Plant Co., Ltd.			1,970			42.58	%		839			20		—		—		859
Muan Solar park Co., Ltd.			37,565			20.00	%		7,513			325		—		—		7,838
YuDang Solar Co., Ltd.			2,929			20.00	%		586			—		—		—		586
Anjwa Smart Farm & Solar City Co., Ltd.			39,225			20.00	%		7,845			817		—		—		8,662
Daewon Green Energy Co., Ltd.			17,514			25.36	%		4,441			44		—		—		4,485
G.GURU Co., Ltd.			1,216			24.65	%		300			—		—		—		300
UD4M Co., Ltd.			1,125			14.29	%		161			—		—		—		161
Dongbu Highway Solar Co., Ltd.			1,509			20.00	%		302			50		—		—		352
Seobu Highway Solar Co., Ltd.			1,581			20.00	%		316			—		—		—		316
Korea Energy Data Co., Ltd.			211			29.37	%		62			—		—		—		62
Gangneung Sacheon Fuel Cell Co., Ltd.			10,218			41.00	%		4,189			88		—		—		4,277
KOSTURE Co., Ltd.			156			0.82	%		1			—		—		—		1
Taebaek Gadeoksan Wind Power Co., Ltd.			58,940			34.00	%		20,040			—		—		—		20,040
Chuncheon Green Energy Co., Ltd.			20,226			45.00	%		9,102			53		—		—		9,155
Yeomsubong Wind Power Co., Ltd.			1,540			3.81	%		59			3		—		—		62
Yeongyang Wind Power Corporation II			17,837			30.00	%		5,351			2,110		—		—		7,461
Haeparang Energy Co., Ltd.			8,673			25.00	%		2,168			20		—		—		2,188
Saemangeum Sebit Power Plant Co., Ltd.			36,439			63.09	%		22,990			209		—		—		23,199
Boulder Solar III, LLC			1,896			30.00	%		569			175		—		—		744
PlatformN. Co., Ltd.			285			29.58	%		84			—		—		—		84
PT. Cirebon Energi Prasarana			690,347			10.00	%		69,035			—		—		—		69,035
Green Radiation Co., Ltd.			77			10.00	%		8			3		—		—		11
Future Convergence Technology Laboratory. Co., Ltd.			249			20.12	%		50			—		—		—		50
SC E&G. Co,. Ltd.			1,068			20.00	%		214			—		—		—		214
Wang San Engineering. Co,. Ltd.			828			20.00	%		166			—		—		—		166
ACE			100			20.00	%		20			—		—		—		20
Environment and Energy Co., Ltd.			93			10.54	%		10			—		—		—		10
Santiago Solar Power SpA			26,748			50.00	%		13,373			—		—		—		13,373
Yanggu Floating Photovoltaic Power Plant Inc.			3,115			29.00	%		903			—		—		—		903
<Joint ventures>
KEPCO-Uhde Inc.			33			50.85	%		17			—		—		—		17
Shuweihat Asia Power Investment B.V.			135,617			49.00	%		66,452			—		—		—		66,452
Shuweihat Asia Operation & Maintenance Company			2,966			55.00	%		1,631			—		—		—		1,631
Waterbury Lake Uranium L.P.			66,589			32.59	%		21,701			49		—		—		21,750
ASM-BG Investicii AD			29,110			50.00	%		14,555			—		—		—		14,555
RES Technology AD			30,266			50.00	%		15,133			—		—		—		15,133
KV Holdings, Inc.			24,148			40.00	%		9,659			—		—		—		9,659
KEPCO SPC Power Corporation			238,822			75.20	%		179,594			—		—		—		179,594
Gansu Datang Yumen Wind Power Co., Ltd.			15,059			40.00	%		6,024			—		—		—		6,024

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Joint ventures>
Datang Chifeng Renewable Power Co., Ltd.	￦		479,954			40.00	%		191,982			—		—			—			191,982
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			110,995			40.00	%		44,398			—		—			—			44,398
Rabigh Electricity Company			665,110			40.00	%		266,044			—		(50,632	)		(805	)		214,607
Rabigh Operation & Maintenance Company Limited			12,782			40.00	%		5,113			—		—			—			5,113
Jamaica Public Service Company Limited			795,250			40.00	%		318,100			29,357		—			(16,050	)		331,407
KW Nuclear Components Co., Ltd.			38,368			45.00	%		17,266			—		—			(176	)		17,090
Busan Shinho Solar Power Co., Ltd.			26,877			25.00	%		6,719			—		—			—			6,719
Global Trade Of Power System Co., Ltd.			2,406			29.00	%		698			—		—			—			698
Expressway Solar-light Power Generation Co., Ltd.			9,508			50.00	%		4,754			—		—			—			4,754
Amman Asia Electric Power Company			367,090			60.00	%		220,254			—		—			—			220,254
KAPES, Inc.			37,875			51.00	%		19,316			—		(22,451	)		3,135			—
Honam Wind Power Co., Ltd.			16,506			29.00	%		4,787			32		—			—			4,819
Korea Power Engineering Service Co., Ltd.			19,114			29.00	%		5,543			—		—			—			5,543
Chun-cheon Energy Co., Ltd.			107,990			29.90	%		32,289			3		—			(248	)		32,044
Yeonggwangbaeksu Wind Power Co., Ltd.			20,972			15.00	%		3,146			5		—			—			3,151
Nghi Son 2 Power LLC			817,678			50.00	%		408,839			—		—			—			408,839
Kelar S.A.			175,717			65.00	%		114,216			2,921		—			—			117,137
PT. Tanjung Power Indonesia			265,448			35.00	%		92,907			—		—			—			92,907
Incheon New Power Co., Ltd.			1,878			29.00	%		545			—		—			(347	)		198
Seokmun Energy Co., Ltd.			59,778			29.00	%		17,336			—		—			—			17,336
Daehan Wind Power PSC			27,846			50.00	%		13,923			—		—			—			13,923
Barakah One Company			(835,613	)		18.00	%		(150,410	)		—		56,437			93,973			—
Nawah Energy Company			1,749			18.00	%		315			—		—			—			315
Momentum			1,035			33.33	%		345			—		—			—			345
Daegu Green Power Co., Ltd.			91,550			54.24	%		49,657			84		—			(20,381	)		29,360
Yeonggwang Wind Power Co., Ltd.			43,958			46.00	%		20,221			492		—			—			20,713
Chester Solar IV SpA			259			45.00	%		117			64		—			—			181
Chester Solar V SpA			49			45.00	%		22			134		—			—			156
Diego de Almagro Solar SpA			962			45.00	%		433			107		—			—			540
South Jamaica Power Company Limited			232,199			20.00	%		46,440			—		—			(3	)		46,437
Daesan Green Energy Co., Ltd.			54,908			35.00	%		19,218			—		—			—			19,218
RE Holiday Holdings LLC			170,740			50.00	%		85,370			—		—			—			85,370
RE Pioneer Holdings LLC			110,344			50.00	%		55,172			—		—			—			55,172
RE Barren Ridge 1 Holdings LLC			126,068			50.00	%		63,034			—		—			(59,684	)		3,350
RE Astoria 2 LandCo LLC			13,198			50.00	%		6,599			—		—			—			6,599
RE Barren Ridge LandCo LLC			4,666			50.00	%		2,333			—		—			—			2,333
Laurel SpA			774			45.00	%		348			206		—			—			554
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			29,443			12.37	%		3,642			9		—			—			3,651
Chile Solar JV SpA			19,637			50.00	%		9,819			—		—			—			9,819
Cheong-Song Noraesan Wind Power Co., Ltd.			14,484			29.01	%		4,202			61		—			—			4,263
Chester Solar I SpA			2,313			45.00	%		1,041			273		—			—			1,314
Solar Philippines Calatagan Corporation			76,571			38.00	%		29,097			—		—			27,805			56,902
Saemangeum Solar Power Co., Ltd.			29,073			81.01	%		23,551			—		—			—			23,551
Chungsongmeon BongSan wind power Co., Ltd.			5,823			29.00	%		1,689			1,781		—			—			3,470
Jaeun Resident Wind Power Plant Co., Ltd.			7,709			29.00	%		2,236			—		—			—			2,236
DE Energia SpA			(14,131	)		49.00	%		(6,924	)		—		—			16,460			9,536
Dangjin Eco Power Co., Ltd.			77,993			34.00	%		26,518			341		—			—			26,859
Haemodum Solar Co., Ltd.			6,871			49.00	%		3,367			—		—			—			3,367
Yangyang Wind Power Co., Ltd.			21,642			50.00	%		10,821			43		—			—			10,864
HORUS SOLAR, S.A. DE C.V.			22,722			14.95	%		3,396			3,580		—			—			6,976
RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.			18,253			14.95	%		2,728			2,171		—			—			4,899
SUNMEX RENOVABLES, S.A. DE C.V.			11,053			14.95	%		1,652			5		—			—			1,657
Stavro Holding II A.B.			85,856			20.00	%		17,171			—		—			—			17,171
Solaseado Solar Power Co., Ltd.			38,230			38.90	%		14,872			1,361		—			—			16,233

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(5)	Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2021 and 2022 are as follows, continued:


2022
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential			Intercompany transaction			Others			Book value
		In millions of won
<Joint ventures>
Yeongam Solar Power Co., Ltd.	￦		47,923			19.00	%		9,105			774			—			—			9,879
Samsu Wind Power Co., Ltd.			16,869			19.00	%		3,205			—			—			—			3,205
Pulau Indah Power Plant Sdn. Bhd.			84,683			25.00	%		21,171			5,643			—			—			26,814
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			71,777			29.53	%		21,196			527			—			—			21,723
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			17,319			90.00	%		15,587			—			—			—			15,587
PT Barito Wahana Tenaga			447,688			30.61	%		137,047			—			—			—			137,047
Cheongna Energy Co., Ltd.			17,595			50.10	%		8,815			3,137			(1,194	)		—			10,758
Naepo Green Energy Co., Ltd.			(51,219	)		29.20	%		(14,956	)		—			—			14,956			—
Dayone Energy Co., Ltd.			(59,627	)		46.30	%		(27,607	)		—			(868	)		28,475			—
OneEnergy Asia Limited			366,764			40.00	%		146,706			25,512			—			—			172,218
KAS Investment I LLC			61,046			29.89	%		18,247			—			—			—			18,247
KAS Investment II LLC			60,800			29.89	%		18,173			—			—			—			18,173
Energyco Co., Ltd.			4,692			29.00	%		1,361			829			—			—			2,190
CAES, LLC			49,670			36.00	%		17,881			2,924			—			—			20,805
Hapcheon Floating Photovoltaic Power Plant Inc.			17,207			49.00	%		8,432			39			—			—			8,471
Busan Industrial Solar Power Co., Ltd.			3,133			28.02	%		878			290			—			—			1,168
Bitsolar Energy Co., Ltd.			(4,545	)		27.10	%		(1,232	)		352			—			1,232			352
Pulau Indah O&M Sdn. Bhd.			—			60.00	%		—			—			—			—			—
Guadalupe Solar SpA			1,358			60.00	%		815			98			—			—			913
Omisan Wind Power Co., Ltd.			24,393			42.00	%		10,245			166			—			—			10,411
Foresight Iberian Solar Group Holding, S.L.			12,184			75.00	%		9,138			1,427			—			—			10,565
Yeongwol Eco Wind Co., Ltd.			4,575			29.00	%		1,327			1,828			—			—			3,155
Gurae Resident Power Co., Ltd.			1,182			29.00	%		343			48			—			—			391
Cheongju Eco Park Co., Ltd.			35,500			29.00	%		10,295			195			—			—			10,490
Enel X Midland Photovoltaic, LLC			9,279			20.00	%		1,856			—			—			—			1,856
Geumsungsan Wind Power Co., Ltd.			10,128			29.00	%		2,937			556			—			—			3,493
KEPCO KPS CARABAO Corp.			443			40.00	%		177			—			—			—			177
Prime Swedish Holding AB			77,828			45.00	%		35,023			1,222			—			—			36,245
Goheung New Energy Co., Ltd.			23,289			46.15	%		10,748			1,084			—			—			11,832
Gunsan Land Solar Co., Ltd.			36,586			75.29	%		27,544			—			—			—			27,544
CapMan Lynx SCA, SICAR			9,908			50.00	%		4,954			—			—			(4,954	)		—
International Offshore Power Transmission Holding Company Limited			(66,788	)		35.00	%		(23,376	)		(2	)		—			23,378			—
Pyeongchang Wind Power Co., Ltd.			24,938			58.00	%		14,464			—			—			—			14,464
Eumseong Eco Park Co., Ltd.			17,173			29.00	%		4,980			577			—			—			5,557
Songsan Green Energy Co., Ltd.			5,500			25.00	%		1,375			12			—			—			1,387
Changwon Nu-ri Energy Co., Ltd.			1,490			33.33	%		497			—			—			—			497
Hasami Wind Farm Corporation			3,100			29.00	%		899			690			—			—			1,589
PungBack Wind Farm Corporation			15,290			37.00	%		5,657			1,086			—			—			6,743
Trumbull Asset Management, LLC			316			78.00	%		246			—			—			—			246
S-Power Chile SpA			(20	)		50.00	%		(10	)		—			—			137			127
Seungmun Green Energy			27,440			33.00	%		9,054			—			—			—			9,054
Seobusambo highway photovoltaics Co., Ltd.			3,833			80.00	%		3,066			—			—			—			3,066

(*)	The percentage of ownership shown above is after considering the treasury stocks and others.

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(6)	As of December 31, 2021, and 2022, unrecognized equity interest in investments in associates and joint ventures whose book value has been reduced to zero due to accumulated losses are as follows:


		2021					2022
		Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest

		In millions of won
Eurasia Energy Holdings	￦		15			190		13			203
Gunsan Bio Energy Co., Ltd.			282			3,864		122			3,986
Dayone Energy Co., Ltd.			(1,244	)		23,452		3,565			27,017
Nghi Son 2 Power LLC			(114,340	)		18,940		(18,940	)		—
Samcheok Eco Materials Co., Ltd.			(323	)		462		344			806
Naepo Green Energy Co., Ltd.			5,469			7,747		7,209			14,956
Barakah One Company			(26,502	)		42,836		51,137			93,973
Pioneer Gas Power Limited			21,691			37,629		19,248			56,877
Incheon New Power Co., Ltd.			(31	)		163		(163	)		—
Bigeum Resident Photovoltaic Power Co., Ltd.			182			298		162			460
KAPES, Inc.			317			3,515		(355	)		3,160
Chester Solar IV SpA			21			21		(21	)		—
ITR Co., Ltd.			—			—		5			5
SEP Co., Ltd.			—			—		14			14
International Offshore Power Transmission Holding Company Limited			—			—		23,378			23,378
Noeul Green Energy Co., Ltd.			—			—		5,470			5,470
Gangneung Eco Power Co., Ltd.			—			—		14			14

(7)	As of December 31, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

(i)

Gemeng International Energy Co., Ltd.

Gemeng International Energy Co., Ltd. issued put options on 8% of its shares to its financial investors, KEPCO Woori Sprott PEF (NPS

Co-Pa

PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Company provided a performance guarantee on this agreement.

(ii)

Taebaek Wind Power Co., Ltd.

In the case where

non-controlling

shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Company acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

(iii)

Pyeongchang Wind Power Co., Ltd.

In the case where

non-controlling

shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Company acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation. The Group is under agreement of O&M with the entity. Pursuant to the agreement, the Company guarantees a certain level of utilization rate and it is obligated to pay the penalty in the event of suspension in power generating.

(iv)

Daeryun Power Co., Ltd.

The Group reserves the right to participate in the transfer of shares in Daeryun Power Co., Ltd. on the same terms as Daeryun E&S Co., Ltd., if Daeryun E&S Co., Ltd. wishes to transfer its shares in Daeryun Power Co., Ltd.

(v)

Daegu Green Power Co., Ltd.

The Company has a right to purchase all the shares of Daegu Green Power Co., Ltd. held by the financial investors at the yield-based transfer amount agreed with the shareholders. The Company can exercise its right 5, 10 and 13 years after the date of the investment. Also, the Company has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(7)	As of December 31, 2022, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(vi)

Yeonggwang Wind Power Co., Ltd.

In case the Company intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is a

non-controlling

shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Company.

(vii)

Chester Solar I SpA

According to the shareholders’ agreement, the Company has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise and when Sprott Chile Solar I SpA intends to sell its shares.

(viii)

Chester Solar IV SpA

(ix)

Chester Solar V SpA

(x)

Diego de Almagro Solar SpA

(xi)

Laurel SpA

(xii)

Hyundai Green Power Co., Ltd.

As of December 31, 2022, the Company has call option against the financial investors (IBK and others) and also has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when claimed by the financial investors at certain period of time in the future. Also, at certain period of time in the future, the Company has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Group”), the operating investor of Hyundai Green Power Co., Ltd., according to the conditions of the agreement and also has an obligation to sell its shares upon request from Hyundai Steel Group.

(xiii)

Kosture Co., Ltd.

The Company acquires the shares with the settled amount of coal provided to Kosture Co., Ltd. every year until completion of the subscription set forth in the shareholders’ agreement.

(xiv)

Omisan Wind Power Co., Ltd.

When the Company requests Unison Co., Ltd. to transfer shares after the completion of the power generation complex, the Company has a right to purchase the shares or transfer them to others at fair value.

(xv)

Geumsungsan Wind Power Co., Ltd.

The Company has a right to purchase shares owned by Daemyung Energy Co., Ltd., within the range of 18%, for 3 years after the commencement of the operation.

(xvi)

Seungmun Green Energy

According to the special conditions of the REC trading contract, a connected entity may demand the sale of ownership stakes held by other investors to the connected entity, or the investors may acquire new stakes or modify business documents through a capital increase in Seokmun Green Energy with prior written consent from the trustee. In the event that other investors sell their stakes to the connected entity, they may demand that the connected entity purchase their stakes in the future if certain conditions are met.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(8)	Significant restrictions on the Company’s abilities on associates or joint ventures as of December 31, 2022 are as follows:


Company		Nature and extent of any significant restrictions
Daegu Green Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.

Pyeongchang Wind Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior consent of the stakeholders.

Daeryun Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions. Shares cannot be wholly or partially transferred without prior consent of the majority of major stakeholders.

KNH Solar Co., Ltd.		Principals and interests on subordinated loans or dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without the consent of other shareholders.

Korea Power Engineering Service Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the board of directors.

Daehan Wind Power PSC		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Daejung Offshore Wind Power Co., Ltd.		Before the commencement of the operation, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Naepo Green Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Solaseado Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Samcheok Eco Materials Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Taebaek Guinemi Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Indeck Niles Asset Management, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Indeck Niles Development, LLC		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar IV SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar V SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Diego de Almagro Solar Spa		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Laurel SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Chester Solar I SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

Kelar S.A.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.

GS Donghae Electric Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Busan Shinho Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Honam Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied.

F-13

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

17.	Investments in Associates and Joint Ventures, Continued

(8)	Significant restrictions on the Company’s abilities on associates or joint ventures as of December 31, 2022 are as follows, continued:


Company		Nature and extent of any significant restrictions

Seokmun Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

Chun-cheon Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, principals and interests on subordinated loans shall not be paid until the payment conditions are satisfied.

Yeonggwangbaeksu Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

Yeonggwang Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Jamaica Public Service Company Limited		Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

PT. Tanjung Power Indonesia		Dividends can only be paid when all conditions of the loan agreement are satisfied.

DE Energia SpA		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Daesan Green Energy Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Taebaek Gadeoksan Wind Power Co., Ltd.		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when prior written consent of financial institutions is obtained.

Bitsolar Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied.

Omisan Wind Power Co., Ltd.		Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, either of Omisan Wind Power Co., Ltd. and Unison Co., Ltd. shall not transfer their shares to others wholly or partially until 4 years have passed from the completion of power complex without the written consent from the other party. In case the shares of each party becomes less than 10% of outstanding shares after the transfer, it also requires the written consent from the other party.

Yangyang Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Busan Industrial Solar Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Kosture Co., Ltd.		Shares cannot be wholly or partially transferred without the consent of the stakeholders.

Geumsungsan Wind Power Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred for 3 years after the commencement of operation, and also cannot be transferred or disposed to the third party in a way not permitted in the financial documents without prior written consent of an agent bank.

Daewon Green Energy Co., Ltd.		Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

Cheongju Eco Park Co., Ltd.		Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied, or permitted by related financing contracts, or prior written consent of financial institutions is obtained.

Goheung New Energy Co., Ltd.		Payment of dividends or repayment of loans such as subordinated loans to the investors can only be made when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

Seungmun Green Energy		Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

18.	Property, Plant and Equipment

(1)	Property, plant and equipment as of December 31, 2021 and 2022 are as follows:


		2021
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value

		In millions of won
Land	￦		14,135,452		(23,474	)		—			(27,487	)		14,084,491
Buildings			22,974,569		(52,122	)		(10,041,270	)		(7,073	)		12,874,104
Structures			78,474,620		(172,021	)		(30,171,363	)		(13,205	)		48,118,031
Machinery			101,062,220		(140,082	)		(48,791,847	)		(514,991	)		51,615,300
Ships			2,068		—			(1,891	)		—			177
Vehicles			371,207		(1,675	)		(281,833	)		(117	)		87,582
Equipment			1,989,115		(149	)		(1,591,890	)		(42	)		397,034
Tools			1,256,189		(64	)		(1,073,086	)		(38	)		183,001
Construction-in-progress			30,313,624		(111,822	)		—			(157,530	)		30,044,272
Right-of-use assets			7,848,138		—			(3,788,741	)		—			4,059,397
Asset retirement costs			14,348,920		—			(5,277,109	)		(146,423	)		8,925,388
Others			14,852,245		—			(12,106,384	)		—			2,745,861

	￦		287,628,367		(501,409	)		(113,125,414	)		(866,906	)		173,134,638


		2022
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value

		In millions of won
Land	￦		14,298,409		(27,405	)		—			(27,472	)		14,243,532
Buildings			24,230,827		(50,437	)		(10,931,672	)		(6,955	)		13,241,763
Structures			83,055,890		(165,608	)		(32,596,265	)		(10,390	)		50,283,627
Machinery			108,749,243		(127,126)			(54,015,594	)		(541,864	)		54,064,659
Ships			17,264		—			(3,788	)		—			13,476
Vehicles			393,046		(2,045	)		(305,242	)		(117	)		85,642
Equipment			2,168,348		(6,608	)		(1,732,564	)		(43	)		429,133
Tools			1,306,509		(99	)		(1,128,002	)		(6	)		178,402
Construction-in-progress			28,064,266		(135,926	)		—			(22,795	)		27,905,545
Right-of-use assets			5,992,724		—			(2,281,599	)		—			3,711,125
Asset retirement costs			17,620,603		—			(6,185,214	)		(146,422	)		11,288,967
Others			15,520,160		—			(13,100,723	)		—			2,419,437

	￦		301,417,289		(515,254)			(122,280,663	)		(756,064)			177,865,308

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

18.	Property, Plant and Equipment, Continued

(2)	Changes in property, plant and equipment for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance			Acquisition			Disposal			Depreciation			Impairment			Others			Ending balance

		In millions of won
Land	￦		13,943,326			9,561			(54,447	)		—			—			209,525			14,107,965
(Government grants)			(23,475	)		—			1			—			—			—			(23,474	)
Buildings			12,616,532			9,036			(19,974	)		(889,539	)		—			1,210,171			12,926,226
(Government grants)			(57,231	)		—			—			5,174			—			(65	)		(52,122	)
Structures			46,258,855			630			(319,287	)		(2,582,488	)		(741	)		4,933,083			48,290,052
(Government grants)			(180,009	)		—			1,811			9,517			—			(3,340	)		(172,021	)
Machinery			50,038,787			268,126			(135,803	)		(5,759,425	)		—			7,343,697			51,755,382
(Government grants)			(157,785	)		—			531			17,519			—			(347	)		(140,082	)
Ships			255			—			—			(103	)		—			25			177
Vehicles			78,983			4,807			(4,298	)		(37,980	)		—			47,745			89,257
(Government grants)			(632	)		(26	)		—			460			—			(1,477	)		(1,675	)
Equipment			407,843			54,875			(667	)		(184,007	)		—			119,139			397,183
(Government grants)			(227	)		—			—			95			—			(17	)		(149	)
Tools			192,387			19,389			(89	)		(81,984	)		—			53,362			183,065
(Government grants)			(239	)		—			—			209			—			(34	)		(64	)
Construction-in-progress			30,964,938			12,183,430			(66,965	)		—			(3,315	)		(12,921,994	)		30,156,094
(Government grants)			(79,126	)		5,027			—			—			—			(37,723	)		(111,822	)
Right-of-use assets			4,542,166			78,213			(11,787	)		(558,565	)		—			9,370			4,059,397
Asset retirement costs			7,413,171			92			(209	)		(844,518	)		—			2,356,852			8,925,388
Others			2,752,081			5,311			(2,332	)		(869,310	)		—			860,111			2,745,861

	￦		168,710,600			12,638,471			(613,515	)		(11,774,945	)		(4,056	)		4,178,083			173,134,638


		2022
		Beginning balance			Acquisition		Disposal			Depreciation			Impairment			Others			Ending balance

		In millions of won
Land	￦		14,107,965			9,535		(49,377	)		—			—			202,814			14,270,937
(Government grants)			(23,474	)		—		1			—			—			(3,932	)		(27,405	)
Buildings			12,926,226			3,202		(19,918	)		(906,528	)		(449	)		1,289,667			13,292,200
(Government grants)			(52,122	)		—		—			5,360			—			(3,675	)		(50,437	)
Structures			48,290,052			217,450		(277,308	)		(2,677,395	)		(3,669	)		4,900,105			50,449,235
(Government grants)			(172,021	)		—		1,250			9,568			—			(4,405	)		(165,608	)
Machinery			51,755,382			248,932		(188,924	)		(5,748,407	)		(33,191	)		8,157,993			54,191,785
(Government grants)			(140,082	)		—		405			17,283			—			(4,732	)		(127,126	)
Ships			177			—		—			(1,053	)		—			14,352			13,476
Vehicles			89,257			1,813		(88	)		(41,907	)		—			38,612			87,687
(Government grants)			(1,675	)		—		—			663			—			(1,033	)		(2,045	)
Equipment			397,183			79,369		(183	)		(205,908	)		(1	)		165,281			435,741
(Government grants)			(149	)		—		—			494			—			(6,953	)		(6,608	)
Tools			183,065			25,291		(180	)		(77,902	)		—			48,227			178,501
(Government grants)			(64	)		—		—			32			—			(67	)		(99	)
Construction-in-progress			30,156,094			11,671,907		(197,293	)		—			134,735			(13,723,972	)		28,041,471
(Government grants)			(111,822	)		23,155		17			—			—			(47,276	)		(135,926	)
Right-of-use assets			4,059,397			197,016		(2,838	)		(509,068	)		—			(33,382	)		3,711,125
Asset retirement costs			8,925,388			—		—			(1,133,866	)		—			3,497,445			11,288,967
Others			2,745,861			9,028		(22,531	)		(1,036,132	)		—			723,211			2,419,437

	￦		173,134,638			12,486,698		(756,967)			(12,304,766)			97,425			5,208,280			177,865,308

(3)	The Company’s subsidiaries including Korea Hydro & Nuclear Power Co., Ltd. have recognized proceeds and costs from selling items produced before its intended use, by accounting ￦94,264 million as revenue and ￦63,405 as expense in profit or loss for the year ended December 31, 2022.

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

19.	Investment Properties

(1)	Investment properties as of December 31, 2021 and 2022 are as follows:


		2021
		Acquisition cost		Government grants			Accumulated depreciation			Book value

		In millions of won
Land	￦		201,605		—			—			201,605
Buildings			19,543		(30	)		(8,334	)		11,179

	￦		221,148		(30	)		(8,334	)		212,784


		2022
		Acquisition cost		Government grants			Accumulated depreciation			Book value

		In millions of won
Land	￦		194,417		—			—			194,417
Buildings			20,241		(21	)		(6,351	)		13,869

	￦		214,658		(21	)		(6,351	)		208,286

(2)	Changes in investment properties for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance			Depreciation			Others			Ending balance

		In millions of won
Land	￦		200,391			—			1,214			201,605
Buildings			24,833			(1,387	)		(12,237	)		11,209
(Government grants)			(29	)		1			(2	)		(30	)

	￦		225,195			(1,386	)		(11,025	)		212,784


		2022
		Beginning balance			Disposal			Depreciation			Others			Ending balance

		In millions of won
Land	￦		201,605			(208	)		—			(6,980	)		194,417
Buildings			11,209			—			(487	)		3,168			13,890
(Government grants)			(30	)		—			1			8			(21	)

	￦		212,784			(208	)		(486	)		(3,804	)		208,286

(3)	Income and expenses related to investment properties for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Rental income	￦		10,118			9,775
Operating and maintenance expenses related to rental income			(1,386	)		(587	)

	￦		8,732			9,188

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

19.	Investment Properties, Continued

(4)	Fair value of investment properties as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Book value		Fair value		Book value		Fair value

		In millions of won
Land	￦		201,605		268,702		194,417		292,827
Buildings			11,179		13,636		13,869		15,626

	￦		212,784		282,338		208,286		308,453

The Company determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Company. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined in consideration of the fluctuation on the publicly announced individual land price after the IFRS transition date (January 1, 2010).

(5)	All of the Company’s investment properties are held under freehold interests.

20.	Construction Contracts

(1)	Changes in total contract amount in which revenue is not yet recognized for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in UAE and others	￦		2,735,141		1,229,759		(812,175	)		3,152,725

(*)

For the year ended December 31, 2020, the increased balance of contracts from new orders is ￦1,512,460 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦282,701 million.


		2021
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in UAE and others	￦		3,152,725		386,208		(754,998	)		2,783,935

(*)

For the year ended December 31, 2021, the increased balance of contracts from new orders is ￦458,635 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦72,427 million.


		2022
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance

		In millions of won
Nuclear power plant construction in overseas and others	￦		2,783,935		3,457,964		(646,953	)		5,594,946

(*)

For the year ended December 31, 2022, the increased balance of contracts from new orders is ￦3,578,599 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦81,401 million.

F-141

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

20.	Construction Contracts, Continued

(2)	Accumulated earned revenue, expense and others related to the Company’s construction contracts in progress as of December 31, 2021 and 2022 are as follows:


		2021
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts

		In millions of won
Nuclear power plant construction in UAE and others	￦		22,051,129		20,967,097		1,084,032		23,238


		2022
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts

		In millions of won
Nuclear power plant construction in overseas and others	￦		22,507,004		21,666,552		840,452		29,877

(3)	Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Contract assets(*1)		Contract liabilities(*2)		Contract assets(*1)		Contract liabilities(*2)

		In millions of won
Nuclear power plant construction in overseas and others	￦		82,306		5,330		118,983		120,952

(*1)

Included in trade and other receivables, net, in the consolidated statements of financial position.

The balance of trade receivables from construction contracts are ￦57,639 million and ￦85,757 million, as of December 31, 2021 and 2022, respectively.

(*2)

Included in

non-financial

liabilities as advance received in the consolidated statements of financial position. The revenue recognized on December 31, 2022 from the amounts included in contract liabilities at the end of the prior year is ￦5,051 million.

Revenue recognized for the year ended December 31, 2022 from performance obligations satisfied in previous periods is ￦15,663 million.

21.	Intangible Assets other than Goodwill

(1)	Intangible assets as of December 31, 2021 and 2022 are as follows:


		2021
		Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value

		In millions of won
Software	￦		867,185		(91	)		(704,589	)		—			162,505
Copyrights, patents rights and other industrial rights			103,428		—			(59,063	)		(9,178	)		35,187
Mining rights			623,122		—			(39,803	)		(541,417	)		41,902
Development expenditures			978,768		(3,820	)		(905,805	)		(19	)		69,124
Intangible assets under development			94,275		(7,326	)		—			(12,845	)		74,104
Usage rights of donated assets and others			592,870		—			(423,087	)		—			169,783
Leasehold rights			28,185		—			(22,337	)		—			5,848
Greenhouse gas emissions rights			78,137		—			—			—			78,137
Others			574,957		(71	)		(155,404	)		(11,995	)		407,487

	￦		3,940,927		(11,308	)		(2,310,088	)		(575,454	)		1,044,077

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

21.	Intangible Assets other than Goodwill, Continued

(1)	Intangible assets as of December 31, 2021 and 2022 are as follows, continued:


		2022
		Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value

		In millions of won
Software	￦		1,002,040		(174	)		(799,013	)		(20	)		202,833
Copyrights, patents rights and other industrial rights			104,559		—			(67,368	)		(9,178	)		28,013
Mining rights			625,845		—			(46,187	)		(541,133	)		38,525
Development expenditures			938,032		(3,477	)		(883,527	)		—			51,028
Intangible assets under development			76,625		(2,108	)		—			(8,903	)		65,614
Usage rights of donated assets and others			592,797		—			(435,518	)		(136	)		157,143
Leasehold rights			28,185		—			(23,297	)		—			4,888
Greenhouse gas emissions rights			43,960		—			—			—			43,960
Others			551,396		(67	)		(174,714	)		(11,955	)		364,660

	￦		3,963,439		(5,826	)		(2,429,624	)		(571,325	)		956,664

(2)	Changes in intangible assets for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance			Acquisition		Disposal			Amortization			Reversal		Others			Ending balance

		In millions of won
Software	￦		152,163			18,834		(1	)		(77,881	)		—		69,481			162,596
(Government grants)			(136	)		—		—			64			—		(19	)		(91	)
Copyrights, patents rights and other industrial rights			42,916			166		(131	)		(7,771	)		—		7			35,187
Mining rights			42,390			1,022		—			(3,526	)		—		2,016			41,902
Development expenditures			95,166			309		—			(37,033	)		—		14,502			72,944
(Government grants)			(5,043	)		—		—			1,439			—		(216	)		(3,820	)
Intangible assets under development			67,018			51,988		—			—			—		(37,576	)		81,430
(Government grants)			(7,203	)		—		—			—			—		(123	)		(7,326	)
Usage rights of donated assets and others			184,475			—		—			(13,594	)		—		(1,098	)		169,783
Leasehold rights			6,340			—		—			(834	)		—		342			5,848
Greenhouse gas emissions rights			61,373			78,091		—			(31	)		—		(61,296	)		78,137
Others			416,346			2,229		—			(26,998	)		14		15,967			407,558
(Government grants)			(75	)		—		—			4			—		—			(71	)

	￦		1,055,730			152,639		(132	)		(166,161	)		14		1,987			1,044,077

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

21.	Intangible Assets other than Goodwill, Continued

(2)	Changes in intangible assets for the years ended December 31, 2021 and 2022 are as follows, continued:


		2022
		Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance

		In millions of won
Software	￦		162,596			22,532		(57	)		(84,649	)		—			102,585			203,007
(Government grants)			(91	)		—		—			60			—			(143	)		(174	)
Copyrights, patents rights and other industrial rights			35,187			270		(37	)		(7,136	)		—			(271	)		28,013
Mining rights			41,902			2,395		—			(4,296	)		—			(1,476	)		38,525
Development expenditures			72,944			—		—			(24,238	)		—			5,799			54,505
(Government grants)			(3,820	)		—		—			1,466			—			(1,123	)		(3,477	)
Intangible assets under development			81,430			39,559		—			—			(14	)		(53,253	)		67,722
(Government grants)			(7,326	)		—		—			—			—			5,218			(2,108	)
Usage rights of donated assets and others			169,783			—		—			(11,394	)		(150	)		(1,096	)		157,143
Leasehold rights			5,848			—		—			(960	)		—			—			4,888
Greenhouse gas emissions rights			78,137			57,466		—			—			—			(91,643	)		43,960
Others			407,558			4,073		(260	)		(25,017	)		—			(21,627	)		364,727
(Government grants)			(71	)		—		—			4			—			—			(67	)

	￦		1,044,077			126,295		(354	)		(156,160	)		(164	)		(57,030	)		956,664

(3)	Significant specific intangible assets as of December 31, 2021 and 2022 are as follows:


2021
Type	Description	Currency	Amount		Remaining useful lives

	In millions of won and thousands of Australian dollars
Software	DAS MS-SQL CORE license	KRW		3,817	2 years and 8 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		1,851	9 months
	Contributions to AP R NRC DC	KRW		25,045	6 years
Mining rights	Mining rights of Bylong mine	AUD		—	— (*)
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		22,310	4 years and 11 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		8,962	8 years and 6 months
Others	Occupancy and use of public waters	KRW		81,623	15 years and 1 month
	Greenhouse gas emissions rights	KRW		78,137	—
	Business rights	KRW		160,459	27 years and 11 months

(*) The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

21.	Intangible Assets other than Goodwill, Continued

(3)	Significant specific intangible assets as of December 31, 2021 and 2022 are as follows, continued:


2022
Type	Description	Currency	Amount		Remaining useful lives

	In millions of won and thousands of Australian dollars
Software	ORACLE license for SDIS integrated DB	KRW		5,509	3 years and 4 months
Copyrights, patents rights and other industrial rights	Contributions to APR NRC DC	KRW		20,871	5 years
Mining rights	Mining rights of Bylong mine	AUD		—	— (*)
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		17,772	3 years and 11 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		7,908	7 years and 6 months
Others	Occupancy and use of public waters	KRW		76,212	14 years and 1 month
	Greenhouse gas emissions rights	KRW		43,960	—
	Business rights	KRW		154,712	26 years and 11 months

(*)	The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

(4)	For the years ended December 31, 2020, 2021 and 2022, the Company recognized research and development expenses of ￦ 700,642 million, ￦ 689,397 million and ￦ 727,810 million, respectively.

22.	Trade and Other Payables

Trade and other payables as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current

		In millions of won
Trade payables	￦		4,780,260		—		7,529,857		—
Non-trade payables			1,536,976		2,032,260		2,132,838		2,023,985
Accrued expenses			1,174,765		8,095		1,605,118		6,351
Leasehold deposits received			1,699		741		2,479		35
Other deposits received			72,063		68,050		97,408		47,863
Lease liabilities			583,558		3,826,945		614,037		3,549,106
Dividends payable			4,105		—		1,812		—
Others(*)			—		60,407		—		11,574

	￦		8,153,426		5,996,498		11,983,549		5,638,914

(*)

Details of others as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current

		In millions of won
Advance received from local governments	￦		—		3,477		—		3,477
Others			—		56,930		—		8,097

	￦		—		60,407		—		11,574

F-14

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities

(1)	Borrowings and debt securities as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Current liabilities
Short-term borrowings	￦		2,920,563			8,820,425
Current portion of long-term borrowings			1,463,703			3,638,202
Current portion of debt securities			9,652,986			10,205,395
Less : Current portion of discount on long-term borrowings			(2,048	)		(774	)
Less : Current portion of discount on debt securities			(5,370	)		(4,246	)

			14,029,834			22,659,002

Non-current liabilities
Long-term borrowings			2,278,481			2,977,268
Debt securities			64,385,784			95,160,920
Less : Discount on long-term borrowings			(12,857	)		(14,945	)
Less : Discount on debt securities			(152,760	)		(177,543	)
Add: Premium on debt securities			1,031			663

			66,499,679			97,946,363

	￦		80,529,513			120,605,365

(2)	Repayment schedule of borrowings and debt securities as of December 31, 2021 and 2022 are as follows:



2021
Type		Borrowings		Debt Securities

		In millions of won
Less than 1 year	￦		4,384,266		9,652,986
1~ 5 years			1,013,500		34,156,038
Over 5 years			1,264,981		30,229,746

	￦		6,662,747		74,038,770



2022
Type		Borrowings		Debt Securities

		In millions of won
Less than 1 year	￦		12,458,627		10,205,395
1~ 5 years			1,472,655		65,278,587
Over 5 years			1,504,613		29,882,333

	￦		15,435,895		105,366,315

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(3)	Short-term borrowings as of December 31, 2021 and 2022 are as follows:

2021

Type

Creditor

Interest rate (%)

Maturity

Foreign

currency

Local

currency

In millions of won and thousands of foreign currencies

Local short-term borrowings

DB financial investment and others

1.96~4.60

2022.01.07

~2022.12.31

—

￦

2,030,886

Electronic short-term bonds

BNK Securities and others

1.35~1.77

2022.01.21

~2022.02.08

—

100,000

Foreign short-term borrowings

Shinhan Bank and others

0.34~0.45

2022.01.04

~2022.03.30

USD 157,533

186,755

Foreign short-term borrowings

Korea Development Bank and others

1M Libor + 1.25

2022.04.29

USD 173,042

205,142

Foreign short-term borrowings

Shinhan Bank and others

0.57~0.80

2022.06.17

~2022.08.31

USD 78,319

92,847

Foreign short-term borrowings

Credit Agricole and others

0.04

2022.06.28

EUR 72,199

96,915

Local bank overdraft

Korea Development Bank and others

1.73~2.25

2022.01.07

~2022.02.26

—

208,018

￦

2,920,563

2022

Type

Creditor

Interest rate (%)

Maturity

Foreign

currency

Local

currency

In millions of won and thousands of USD

Local short-term borrowings

DB financial investment and others

3.21~5.80

2023.01.02

~2023.12.31

—

￦

5,549,120

Local short-term borrowings

Nonghyup Bank and others

3M CD + 1.11~1.70

2023.05.25

~2023.11.24

—

3,000,000

Local short-term borrowings

Shinhan Bank

6M Bank
Debenture
Rate + 1.77

2023.11.17

—

50,000

Local short-term borrowings

Korea Development Bank

4.15

2023.01.06

—

3,400

Foreign short-term borrowings

Shinhan Bank

5.19

2023.02.28

USD 12,045

15,264

Foreign short-term borrowings

Shinhan Bank

SOFR(1M) + 0.65

2023.02.27

USD 40,000

50,692

Foreign short-term borrowings

Kookmin Bank and others

3.32~5.88

2023.01.09

~2023.06.12

USD 91,796

116,333

Local bank overdraft

Woori Bank and others

Standard overdraft
rate + 1.32

4.83

2023.01.06

~2023.02.24

—

35,616

￦

8,820,425

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of December 31, 2021 and 2022 are as follows:


2021
Type		Interest rate (%)	Maturity		Foreign currency		Local currency

		In millions of won and thousands of foreign currencies


Local long-term borrowings
Korea Development Bank	Others	0.50		2023~2044		—	￦	2,509
	Facility	2.50~4.60		2022~2028		—		39,430
	Operating funds	2.33		2022		—		20,000
	Operating funds	1yr KDB bond rate + 0.81~0.95		2022~2023		—		64,300
Hana Bank	Commercial Paper	3M CD+0.13~0.43		2022~2025		—		1,050,000
	Facility	4.60		2028		—		9,647
	Facility	3yr KTB rate-1.25		2022~2028		—		4,485
IBK	PF Refinancing	CD+1.25		2030		—		8,589
Export-Import Bank of Korea	Project loans	1.50		2026		—		13,258
	Facility	1.32		2028		—		32,000
	Operating funds	1.78		2023		—		15,700
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25		2023~2025		—		8,971
	Facility	3yr KTB rate-2.25		2022~2024		—		995
	Project loans	—		2023		—		1,197
	Others	1.75		2028		—		4,893
Shinhan Bank and others	Facility	CB rate+1.10		2028		—		14,470
	Commercial Paper	3M CD+0.38		2025		—		150,000
	Others	3.95		2034		—		84,179
	Others	Standard overdraft rate+1.00		2034		—		84,179
Kookmin Bank	Facility	MOR+0.79 3M CD+1.79		2022~2031		—		59,333
Others	Facility	2.80~6.80		2024~2039		—		620,185
	Facility	CB rate+0.90~1.10 3M CD+1.60 3.37		2028~2037		—		171,733
	PF Refinancing	3.80~5.00		2030~2034		—		71,742
	PF Refinancing	1.75		2029		—		22,265
	Others	4.40~7.90		2022~2038		—		116,367
	Others	1.80~4.50		2031~2034		—		49,928

								2,720,355

Foreign long-term borrowings
Korea Energy Agency	Project loans	—		2026		USD 8,744		10,366
Export-Import Bank of Korea and others	Direct loan and others	1M Libor+1.80~3.20		2036		USD 89,823		106,485
	Direct loan and others	3M Libor+2.75~3.70		2027		JOD 107,868		180,363
	PF Loan	6M Libor+1.70~2.50		2032		USD 103,340		122,509
POSCO and others	Shareholder’s loan	8.00		2025		USD 11,953		14,171
	Shareholder’s loan	8.00		2031		JOD 4,853		8,114
Samsung Life Insurance and others	Syndicated Loan	3.10~8.00		2032		JPY 5,144,387		53,000
Woori Bank and others	Syndicated Loan	JPY 6M Libor+2.00		2032		JPY 2,820,708		29,060
KiwoomSolar Power Professional Investor Private Placement Investment Trust V	Senior borrowing	3.90		2029		EUR 36,311		48,741
IFC and others	Others	6M Libor+5.00		2031		USD 230,018		272,686
Federal Financing Bank and others	PF Loan	2.39~6.00		2031~2038		USD 94,135		111,597
Others	Others	—		—		USD 54,607		64,737

								1,021,829

								3,742,184
Less: Discount on long-term borrowings								(14,905	)
Less: Current portion of long-term borrowings								(1,463,703	)
Add: Current portion of discount on long-term borrowings								2,048

							￦	2,265,624

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of December 31, 2021 and 2022 are as follows, continued:


2022
Type		Interest rate (%)	Maturity		Foreign currency		Local currency

		In millions of won and thousands of foreign currencies
Local long-term borrowings
Korea Development Bank	Others	0.50		2023~2044		—	￦	2,133
	Facility	2.50~4.60		2023~2028		—		28,420
	Facility	CB rate+0.90		2029		—		9,985
	Operating funds	1yr KDB rate+0.81~0.91		2023~2024		—		54,300
Hana Bank and others	Commercial Paper	3M CD+0.13~1.20		2023~2027		—		3,250,000
	Facility	4.60		2028		—		8,137
	Facility	3yr KTB rate-1.50		2028		—		3,821
Export-Import Bank of Korea	Project loans	1.50		2026		—		10,312
	Facility	1.32		2028		—		58,100
	Operating funds	1.78		2023		—		15,700
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25 1.50~1.75		2023~2028		—		11,175
	Facility	3yr KTB rate-2.50		2023~2024		—		393
	Project loans	—		2023~2027		—		1,197
Shinhan Bank and others	Facility	CB rate+0.90~1.10		2028~2029		—		19,195
	Commercial Paper	3M CD+0.38		2025		—		150,000
	Others	3.95		2034		—		78,905
	Others	Standard overdraft rate+1.00		2034		—		78,905
Kookmin Bank	Facility	MOR+0.79 3M CD+1.79 5.04		2023~2035		—		105,155
	Others	4.00		2025		—		20,700
Woori Bank	Facility	3M Libor+1.90 5.04		2035~2042		—		48,823
Others	Facility	3.50~6.80		2028~2044		—		690,259
	Facility	CB rate+1.10 1.75~4.56		2024~2036		—		103,131
	PF Refinancing	CB rate+1.25		2030		—		7,634
	PF Refinancing	4.10		2030		—		21,206
	Securitized debts (*)	3M CD+1.80		2025		—		33,476
	Others	4.40~7.90		2023~2039		—		120,217
	Others	1.80~4.50		2031~2034		—		49,929

								4,981,208

Foreign long-term borrowings
Korea Energy Agency	Project loans	—		2026		USD 8,744		11,081
Export-Import Bank of Korea and others	Direct Loan and others	6M Libor+3.20		2036		USD 78.094		98,969
	Direct Loan and others	3M Libor+2.25~3.70		2027		JOD 91,051		162,692
	Facility	6M Libor+1.70~2.50 SOFR(3M) +1.83		2039~2032		USD 132,168		167,496
Kookmin Bank and others	EBL	SOFR(1M)+0.11~0.75		2024		USD 149,592		189,578
Riyad Bank	EBL	SOFR(3M)+1.20		2025		USD 49,870		63,201
POSCO and others	Shareholder’s loan	8.00		2025		USD 10,005		12,680
	Shareholder’s loan	8.00		2031		JOD 4,853		8,671
Samsung Life Insurance and others	Syndicated Loan	3.10~8.00		2032		JPY 4,752,934		45,304
Woori Bank and others	Syndicated Loan	JPY 6M Libor+1.84		2032		JPY 2,613,385		24,910
Solar Construction Lendings, LLC	Facility	5.00		2025		USD 31,140		39,464
KiwoomSolar Power Professional Investor Private Placement Investment Trust V	Senior borrowing	3.90		2029		EUR 40,531		54,765
IFC and others	Others	6M Libor+5.00 SOFR(3M)+1.83~1.99 5.41~6.19		2028~2031		USD 408,408		517,575

F-1

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(4)	Long-term borrowings as of December 31, 2021 and 2022 are as follows, continued:


2022
Type		Interest rate (%)	Maturity		Foreign currency		Local currency

		In millions of won and thousands of foreign currencies
Hanwha US Solar Private Fund and others	PF Refinancing	3.00		2038		USD 58,308		73,894
DBS Bank and others	Facility	1M BBSY+1.40~2.25		2025		AUD 190,860		163,836
Others	Others	—		—		USD 116		146

								1,634,262

								6,615,470
Less: Discount on long-term borrowings								(15,719	)
Less: Current portion of long-term borrowings								(3,638,202	)
Add: Current portion of discount on long-term borrowings								774

							￦	2,962,323

(*)	The main reasons for early repayment of securitized debts as of December 31, 2022 are as follows:


Type		Details
Non-payment of proceeds		Where the consignor fails to pay the principal to the trustee
Guarantees for supplemental funding		Where the consignor fails to fulfill guarantees for supplemental funding
Additional trust obligation		Where the consignor fails to fulfill the additional trust obligation
Event of default		In case the event of default occurs under the ABL loan agreement

The consolidated entity is responsible for collateral obligations (fund supplementation) and liability guarantees for entrusted assets.

(5)	Local debt securities as of December 31, 2021 and 2022 are as follows:


	Issue date		Maturity		Interest rate (%)		2021			2022

	In millions of won

Electricity Bonds		2012.03.27~2022.12.28		2023.01.11~2052.04.21	1.14~5.99	￦		34,080,000			61,190,000
Corporate Bonds (*)		2009.10.16~2022.12.20		2023.01.11~2052.08.24	1.01~6.06			28,194,472			29,293,188
Corporate Bonds		2021.05.26		2041.05.25	2.00			—			11,578

								62,274,472			90,494,766
Less: Discount on local debt securities								(52,723	)		(56,924	)
Less: Current portion of local debt securities								(7,432,647	)		(8,401,619	)
Add: Current portion of discount on local debt securities								2,510			2,344

						￦		54,791,612			82,038,567

(*)

Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to ￦1,619 million, may exercise the early redemption rights on the 5th year (March 31, 2021) from the date of issuance of the bonds and every year on March 31 thereafter, until the year before the redemption date.

F-15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(6)	Foreign debt securities as of December 31, 2021 and 2022 are as follows:


	2021
Type	Issue date	Maturity	Interest rate (%)	Foreign currency			Local currency

	In millions of won and thousands of foreign currencies
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~7.95		USD 278,701	￦		330,400
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717			373,097
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920			340,144
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000			889,125
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000			118,550
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000			355,650
FY-17	2017.06.19~2017.07.25	2022.06.19~2027.07.25	2.63~3.13		USD 800,000			948,400
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000			53,694
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000			58,968
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000			250,850
FY-18	2018.06.07~2018.07.25	2023.06.07~2023.07.25	3.75~3.88		USD 1,400,000			1,659,700
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38		USD 800,000			948,400
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000			259,494
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000			389,241
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000			355,650
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000			257,667
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 371,947			440,943
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000			355,650
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000			592,750
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000			592,750
FY-20	2020.08.03	2026.02.03	0.61		USD 300,000			355,650
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000			533,475
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000			592,750
FY-21	2021.08.09	2026.08.09	1.25		USD 300,000			355,650
FY-21	2021.09.24	2026.09.24	1.13		USD 300,000			355,650

								11,764,298
Less: Discount on foreign debt securities								(105,407	)
Add: Premium on foreign debt securities								1,031
Less: Current portion of foreign debt securities								(2,220,339	)
Add: Current portion of discount on foreign debt securities								2,860

						￦		9,442,443

F-15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

23.	Borrowings and Debt Securities, Continued

(6)	Foreign debt securities as of December 31, 2021 and 2022 are as follows, continued:


	2022
Type	Issue date	Maturity	Interest rate (%)	Foreign currency			Local currency

	In millions of won and thousands of foreign currencies
FY-96	1996.04.01~ 1996.12.06	2026.12.01~ 2096.04.01	6.00~7.95		USD 278,701	￦		353,198
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717			398,841
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920			363,614
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000			126,730
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000			380,190
FY-17	2017.07.25	2027.07.25	3.13		USD 300,000			380,190
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000			54,048
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000			54,527
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000			268,208
FY-18	2018.06.07~2018.07.25	2023.06.07~2023.07.25	3.75~3.88		USD 1,400,000			1,774,220
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000			274,574
FY-19	2019.06.24	2024.06.24	2.50		USD 500,000			633,650
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000			411,861
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000			257,523
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 360,899			457,368
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000			380,190
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000			633,650
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000			633,650
FY-20	2020.08.03	2026.02.03	1.00		USD 300,000			380,190
FY-21	2021.01.27	2026.01.27	0.75		USD 450,000			570,285
FY-21	2021.04.27	2026.04.27	1.25		USD 500,000			633,650
FY-21	2021.08.09	2026.08.09	1.25		USD 300,000			380,190
FY-21	2021.09.24	2026.09.24	1.13		USD 300,000			380,190
FY-22	2022.04.21	2027.04.21	3.63		USD 300,000			380,190
FY-22	2022.05.06	2025.05.06	3.60		USD 500,000			633,650
FY-22	2022.06.14	2025.06.14~2027.06.14	3.63~4.00		USD 800,000			1,013,840
FY-22	2022.06.28	2025.06.28	4.13		USD 300,000			380,190
FY-22	2022.07.27	2027.07.27	4.25		USD 700,000			887,110
FY-22	2022.10.06	2026.04.06~2028.04.06	5.38~5.50		USD 800,000			1,013,840
FY-22	2022.10.06~2022.11.01	2032.10.06	5.16		HKD 2,350,000			381,992

								14,871,549
Less: Discount on foreign debt securities								(124,865	)
Add: Premium on foreign debt securities								663
Less: Current portion of foreign debt securities								(1,803,776	)
Add: Current portion of discount on foreign debt securities								1,902

						￦		12,945,473

(7)	Changes in borrowings and debt securities for the years ended December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Beginning balance	￦		69,724,581		80,529,513
Cash flow			9,653,394		39,193,816
Effect of exchange rate fluctuations			1,001,493		906,877
Others			150,045		(24,841	)

Ending balance	￦		80,529,513		120,605,365

F-15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

24.

Leases

Company as a lessee

(1)	Lease contracts

The Company applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized ￦199,490 million and ￦235,473 million respectively, as expense for the years ended December 31, 2021 and 2022. The Company also applies the leases of

low-value

assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e., approximately less than ￦5 million), and recognized ￦2,349 million and ￦3,147 million respectively, as expense for the years ended December 31, 2021 and 2022. The Company has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2)	Right-of-use assets as of December 31, 2021 and 2022 are as follows:


		2021
		Acquisition cost		Accumulated depreciation			Book value

		In millions of won
Land	￦		814,795		(162,000	)		652,795
Buildings			106,823		(43,939	)		62,884
Structures			26,374		(5,226	)		21,148
Machinery			1,308		(743	)		565
Ships			4,217,735		(1,188,516	)		3,029,219
Vehicles			30,375		(16,757	)		13,618
Others(*)			2,650,728		(2,371,560	)		279,168

	￦		7,848,138		(3,788,741	)		4,059,397

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.


		2022
		Acquisition cost		Accumulated depreciation			Book value

		In millions of won
Land	￦		886,076		(224,277	)		661,799
Buildings			135,290		(60,434	)		74,856
Structures			30,879		(6,914	)		23,965
Machinery			1,737		(902	)		835
Ships			4,151,460		(1,554,597	)		2,596,863
Vehicles			35,712		(20,996	)		14,716
Others(*)			751,570		(413,479	)		338,091

	￦		5,992,724		(2,281,599)			3,711,125

(*)

Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

F-15

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

24.	Leases, Continued

(3)	Changes in right-of-use assets for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance

		In millions of won
Land	￦		706,579		7,312		(57,231	)		—			(3,865	)		652,795
Buildings			47,222		22,336		(25,780	)		(1,469	)		20,575			62,884
Structures			20,486		2,198		(1,536	)		—			—			21,148
Machinery			695		—		(130	)		—			—			565
Ships			3,437,363		9,694		(411,291	)		—			(6,547	)		3,029,219
Vehicles			13,525		9,583		(8,162	)		(7	)		(1,321	)		13,618
Others			316,296		27,090		(54,435	)		(10,311	)		528			279,168

	￦		4,542,166		78,213		(558,565	)		(11,787	)		9,370			4,059,397


		2022
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance

		In millions of won
Land	￦		652,795		63,654		(41,260	)		—			(13,390	)		661,799
Buildings			62,884		42,399		(30,243	)		(1,042	)		858			74,856
Structures			21,148		4,256		(1,758	)		—			319			23,965
Machinery			565		429		(159	)		—			—			835
Ships			3,029,219		—		(393,677	)		—			(38,679	)		2,596,863
Vehicles			13,618		13,475		(8,673	)		(962	)		(2,742	)		14,716
Others			279,168		72,803		(33,298	)		(834	)		20,252			338,091

	￦		4,059,397		197,016		(509,068	)		(2,838	)		(33,382	)		3,711,125

(4)	Lease liabilities as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Less than 1 year	￦		620,121			639,756
1 ~ 5 years			2,158,145			2,047,584
More than 5 years			2,150,722			1,925,012

			4,928,988			4,612,352
Less : Discount			(518,485	)		(449,209	)

Present value of lease payment	￦		4,410,503			4,163,143

(5)	The details of the liquidity classification of lease liabilities as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Current lease liabilities	￦		583,558		614,037
Non-current lease liabilities			3,826,945		3,549,106

	￦		4,410,503		4,163,143

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

24.	Leases, Continued

(6)	Changes in lease liabilities for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)		Ending balance

		In millions of won
Lease liabilities	￦		4,621,096		73,090		(665,687	)		93,651		288,353		4,410,503


		2022
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)		Ending balance

		In millions of won
Lease liabilities	￦		4,410,503		109,019		(654,236	)		91,590		206,267		4,163,143

(*)

Including translation effect of foreign currency lease liabilities and others.

(7)	Details of expense relating to lease contracts as lessee for the years ended December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Depreciation of right-of-use assets	￦		558,565		509,068
Interest expenses of lease liabilities			93,651		91,590
Leases expenses for short-term leases			199,490		235,473
Leases expenses for leases of low-value assets			2,349		3,147
Variable lease payments			54,675		112,158

	￦		908,730		951,436

(8)	The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value assets, amounts to ￦ 922,200 million and ￦ 1,005,014 million, for the years ended December 31, 2021 and 2022, respectively.

Company as a lessor

(1)	Finance lease contracts

The Company entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a

25-year

lease term, and an 89.1MW level Fujeij wind power plant over a

20-year

lease term. In addition, the Company provides 27 energy storage system installation projects and 133 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Company entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

(2)	Profit and loss related to finance lease for the years ended December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Finance income on the net investment in the lease	￦		111,569		122,355

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

24.	Leases, Continued

(3)	Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Less than 1 year	￦		172,528			181,930
1 ~ 2 years			163,937			169,693
2 ~ 3 years			158,933			166,787
3 ~ 4 years			156,450			166,196
4 ~ 5 years			155,068			166,965
More than 5 years			1,588,403			1,527,093

			2,395,319			2,378,664
Less : Unearned finance income			(1,194,627	)		(1,139,274	)

Net investment in the lease(*)	￦		1,200,692			1,239,390

(*)

Including the present value of unguaranteed residual value amounting to ￦19,574 million and ￦22,910 million, as of December 31, 2021 and 2022, respectively.

The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 0.00% up to 17.08% per year as of December 31, 2022. (prior year : 0.00% ~ 16.83%)

(4)	Changes in the allowance for doubtful accounts of finance lease receivables for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		990			768
Bad debt expense			—			3,737
Reversal of allowance for doubtful accounts			(222	)		—

Ending balance	￦		768			4,505

25.	Employment Benefits

(1)	Employment benefit obligations as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Net defined benefit asset	￦		20,871		198,626
Net defined benefit obligations			1,675,741		825,927
Other long-term employee benefit obligations			3,417		2,794

(2)	Principal assumptions used for actuarial valuation as of December 31, 2021 and 2022 are as follows:


	2021	2022

Discount rate	2.51%~2.60%	5.16%~5.19%
Future salary and benefit levels	4.28%	4.55%
Weighted average duration	10.39 years	8.84 years

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

25.	Employment Benefits, Continued

(3)	Details of expense relating to defined benefit plans for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022

		In millions of won
Current service cost	￦		509,520			524,942			496,722
Interest cost			83,248			91,877			116,256
Expected return on plan assets			(42,742	)		(52,782	)		(73,484	)
Past service cost			(2,027	)		5,483			125
Loss from settlement			—			—			—

	￦		547,999			569,520			539,619

Expenses described above are recognized in those items below in the consolidated financial statements.


		2020		2021		2022

		In millions of won
Cost of sales	￦		397,442		416,287		404,243
Selling and administrative expenses			94,846		95,983		81,457
Others (Construction-in-progress and others)			55,711		57,250		53,919

	￦		547,999		569,520		539,619

In addition, for the years ended December 31, 2020, 2021 and 2022, employee benefit obligations expenses of, ￦60,587 million, ￦71,976 million and ￦101,369 million, respectively, are recognized as cost of sales, and ￦9,121 million, ￦17,144 million and, ￦28,301 million, respectively, are recognized as selling and administrative expenses, and ￦11,861 million, ￦13,025 million and ￦14,827 million, respectively, are recognized as

construction-in-progress

and others, relates to the Company’s defined contribution plans.

(4)	Details of defined benefit obligations as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Present value of defined benefit obligation from funded plans	￦		4,564,417			3,776,715
Fair value of plan assets			(2,909,547	)		(3,149,414	)

Net liabilities incurred from defined benefit plans	￦		1,654,870			627,301

(5)	Changes in the present value of defined benefit obligations for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		4,570,614			4,564,417
Current service cost			524,942			496,722
Interest cost			91,877			116,256
Remeasurement component			(345,755	)		(1,012,727	)
Past service cost			5,483			125
Actual payments			(282,794	)		(388,105	)
Others			50			27

Ending balance	￦		4,564,417			3,776,715

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

25.	Employment Benefits, Continued

(6)	Changes in the fair value of plan assets for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		2,670,832			2,909,547
Expected return			52,782			73,484
Remeasurement component			(8,457	)		(11,609	)
Contributions by the employers			317,707			347,778
Actual payments			(123,317	)		(169,786	)

Ending balance	￦		2,909,547			3,149,414

In addition, gain on accumulated remeasurement component amounting to ￦98,844 million and gain on accumulated remeasurement component amounting to ￦614,805 million have been recognized as other comprehensive income or loss for the years ended December 31, 2021 and 2022, respectively.

(7)	Details of the fair value of plan assets as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Equity instruments	￦		344,002		171,301
Debt instruments			744,167		854,640
Bank deposits			407,809		590,103
Others (*)			1,413,569		1,533,370

	￦		2,909,547		3,149,414

(*)

‘Others’ consist of various financial assets managed by external asset management companies.

For the years ended December 31, 2021 and 2022, actual returns on plan assets amounted to ￦44,325 and ￦61,875 million, respectively.

(8)	Remeasurement components recognized in other comprehensive income (loss) for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Actuarial gain from changes in financial assumptions	￦		(258,194	)		(967,366	)
Experience adjustments, etc.			(87,561	)		(45,361	)
Expected return			8,457			11,609

	￦		(337,298	)		(1,001,118	)

Remeasurement components recognized as other comprehensive income or loss are included in retained earnings.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

26.	Provisions

(1)	Provisions as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current

		In millions of won
Employment benefits
Provisions for employment benefits	￦		1,048,939		—		1,045,058		—
Litigation
Litigation provisions			26,269		88,449		26,974		154,205
Decommissioning cost
Nuclear plants			—		19,461,461		—		23,035,427
Spent fuel			457,466		893,196		415,890		1,011,028
Radioactive waste			137,342		1,695,193		94,158		1,895,849
PCBs			—		103,665		—		88,359
Other recovery provisions			—		30,231		—		32,770
Others
Power plant regional support program			146,588		—		144,504		—
Transmission regional support program			250,288		—		239,235		—
Provisions for financial guarantee			21,032		59,809		22,895		44,345
Provisions for RPS			—		—		24,339		—
Provisions for greenhouse gas emissions obligations			655,544		—		298,876		—
Others			102,408		169,420		115,122		102,659

	￦		2,845,876		22,501,424		2,427,051		26,364,642

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

26.	Provisions, Continued

(2)	Changes in provisions for the years ended December 31, 2021 and 2022 are as follows:


		202 1
		Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance

		In millions of won


Employment benefits
Provisions for employment benefits	￦		1,024,574		1,048,569		(1,024,212	)		—			8			1,048,939
Litigation
Litigation provisions			113,002		67,443		(44,446	)		(15,763	)		(5,518	)		114,718
Decommissioning cost
Nuclear plants			16,974,884		2,545,803		(59,226	)		—			—			19,461,461
Spent fuel			1,354,001		452,063		(455,402	)		—			—			1,350,662
Radioactive waste			1,891,613		3,862		(51,666	)		(11,274	)		—			1,832,535
PCBs			119,019		2,182		(17,408	)		(128	)		—			103,665
Other recovery provisions			25,840		553		(169	)		—			4,007			30,231
Others
Power plant regional support program			144,272		49,596		(47,280	)		—			—			146,588
Transmission regional support program			96,895		306,409		(153,016	)		—			—			250,288
Provisions for financial guarantee			66,354		85,355		(72,109	)		—			1,241			80,841
Provisions for RPS			9,126		445,402		(430,344	)		(24,184	)		—			—
Provisions for greenhouse gas emissions obligations			393,121		547,911		(235,469	)		(2,174	)		(47,845	)		655,544
Others			314,535		104,416		(95,541	)		(40,139	)		(11,443	)		271,828

	￦		22,527,236		5,659,564		(2,686,288	)		(93,662	)		(59,550	)		25,347,300

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

26.	Provisions, Continued

(2)	Changes in provisions for the years ended December 31, 2021 and 2022 are as follows, continued:


		2022
		Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance

		In millions of won
Employment benefits
Provisions for employment benefits	￦		1,048,939		997,281		(1,001,283	)		—			121			1,045,058
Litigation
Litigation provisions			114,718		112,797		(39,633	)		(6,360	)		(343	)		181,179
Decommissioning cost
Nuclear plants			19,461,461		3,630,830		(56,813	)		—			(51	)		23,035,427
Spent fuel			1,350,662		493,943		(417,687	)		—			—			1,426,918
Radioactive waste			1,832,535		221,629		(64,157	)		—			—			1,990,007
PCBs			103,665		1,949		(17,156	)		(99	)		—			88,359
Other recovery provisions			30,231		2,093		(165	)		(751	)		1,362			32,770
Others
Power plant regional support program			146,588		52,470		(54,554	)		—			—			144,504
Transmission regional support program			250,288		176,424		(187,477	)		—			—			239,235
Provisions for financial guarantee			80,841		4,738		(17,789	)		—			(550	)		67,240
Provisions for RPS			—		587,586		(556,993	)		(6,254	)		—			24,339
Provisions for greenhouse gas emissions obligations			655,544		387,299		(590,172	)		(33,596	)		(120,199	)		298,876
Others			271,828		4,447		(39,566	)		(19,853	)		925			217,781

	￦		25,347,300		6,673,486		(3,043,445	)		(66,913	)		(118,735	)		28,791,693

(3)	Greenhouse gas emissions rights and obligations:

(i)

Allowances received free of charge from the government for each planned period as of December 31, 2022 are as follows:


	3rd planned period
	2021		2022		2023		2024		2025		Total

	In ten thousands of tons(tCO2-eq)
Allowances received free of charge from the government		15,085		14,789		14,784		4,928		4,928		54,514

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

26.	Provisions, Continued

(3)	Greenhouse gas emissions rights and obligations, continued:

(ii)

Changes in greenhouse gas emissions rights for the years ended December 31, 2021 and 2022 are as follows:


	2021
	2nd planned period						3rd planned period
	2020						2021				2022					2023					2024					2025					Total
	Quantity			Amount			Quantity		Amount		Quantity			Amount		Quantity			Amount		Quantity			Amount		Quantity			Amount		Quantity		Amount

	In ten thousands tons(tCO2-eq), millions of Won
Beginning		17,905			357,355			16,051		38,338		15,782			—		15,782			—		5,261			—		5,261			—		58,137		38,338
Purchase (Sell)		433			95,375			1,426		410,099		(31	)		7,296		(43	)		5,479		(75	)		—		(50	)		6,873		1,227		429,747
Government submission		(17,560	)		(280,924	)		—		—		—			—		—			—		—			—		—			—		—		—
Borrowing (carryforward)		(539	)		(113,014	)		352		76,221		277			55,439		10			3,050		—			—		—			—		639		134,710
Others		(239	)		(58,792	)		—		—		—			—		—			—		—			—		—			—		—		—

Ending		—			—			17,829		524,658		16,028			62,735		15,749			8,529		5,186			—		5,211			6,873		60,003		602,795


	2022
	3rd planned period
	2021						2022						2023					2024				2025				Total
	Quantity			Amount			Quantity			Amount			Quantity		Amount			Quantity		Amount		Quantity		Amount		Quantity			Amount

	In ten thousands tons(tCO2-eq), millions of Won
Beginning (*)		16,433			524,658			14,942			62,735			11,166		8,529			3,671		—		3,696		6,873		49,908			602,795
Purchase (Sell)		1,191			267,433			1,343			272,824			32		6,315			35		7,185		—		—		2,601			553,757
Government submission		(17,602	)		(580,807	)		(838	)		(173,145	)		—		245			—		—		—		—		(18,440	)		(753,707	)
Borrowing (carryforward)		(22	)		(3,298	)		286			45,847			48		12,225			22		5,699		—		—		334			60,473
Others		—			(207,986	)		—			(16,256	)		—		(8,529	)		—		—		—		5,419		—			(227,352	)

Ending		—			—			15,733			192,005			11,246		18,785			3,728		12,884		3,696		12,292		34,403			235,966

(*)

Changes such as additional allowances or cancellation of allowances are reflected.

(iii)

The Company does not have greenhouse gas emissions rights pledged as collateral as of December 31, 2022.

(iv)

The Company does not hold any greenhouse gas emissions rights prepared for generating a profit from short-term fluctuations in price as of December 31, 2022.

(v)

Estimated greenhouse gas emission of the Company for the year ended December 31, 2022 is 13,167 ten thousand tons.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

27.	Government Grants

(1)	Government grants as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Land	￦		(23,474	)		(27,405	)
Buildings			(52,122	)		(50,437	)
Structures			(172,021	)		(165,608	)
Machinery			(140,082	)		(127,126	)
Vehicles			(1,675	)		(2,045	)
Equipment			(149	)		(6,608	)
Tools			(64	)		(99	)
Construction-in-progress			(111,822	)		(135,926	)
Investment properties			(30	)		(21	)
Software			(91	)		(174	)
Development expenditures			(3,820	)		(3,477	)
Intangible assets under development			(7,326	)		(2,108	)
Other intangible assets			(71	)		(67	)

	￦		(512,747	)		(521,101	)

(2)	Changes in government grants for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
		In millions of won

Cash	￦		—			(37,920	)		—			—		—		37,920			—
Land			(23,475	)		—			—			—		1		—			(23,474	)
Buildings			(57,231	)		—			—			5,174		—		(65	)		(52,122	)
Structures			(180,009	)		—			—			9,517		1,811		(3,340	)		(172,021	)
Machinery			(157,785	)		—			—			17,519		531		(347	)		(140,082	)
Vehicles			(632	)		—			(26	)		460		—		(1,477	)		(1,675	)
Equipment			(227	)		—			—			95		—		(17	)		(149	)
Tools			(239	)		—			—			209		—		(34	)		(64	)
Construction-in-progress			(79,126	)		—			5,027			—		—		(37,723	)		(111,822	)
Investment properties			(29	)		—			—			1		—		(2	)		(30	)
Software			(136	)		—			—			64		—		(19	)		(91	)
Development expenditures			(5,043	)		—			—			1,439		—		(216	)		(3,820	)
Intangible assets under development			(7,203	)		—			—			—		—		(123	)		(7,326	)
Other intangible assets			(75	)		—			—			4		—		—			(71	)

	￦		(511,210	)		(37,920	)		5,001			34,482		2,343		(5,443	)		(512,747	)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

27.	Government Grants, Continued

(2)	Changes in government grants for the years ended December 31, 2021 and 2022 are as follows, continued:


		2022
		Beginning balance			Receipt			Acquisition		Offset the items of depreciation expense and others		Disposal		Others			Ending balance
		In millions of won
Cash	￦		—			(50,755	)		—		—		—		50,755			—
Land			(23,474	)		—			—		—		1		(3,932	)		(27,405	)
Buildings			(52,122	)		—			—		5,360		—		(3,675	)		(50,437	)
Structures			(172,021	)		—			—		9,568		1,250		(4,405	)		(165,608	)
Machinery			(140,082	)		—			—		17,283		405		(4,732	)		(127,126	)
Vehicles			(1,675	)		—			—		663		—		(1,033	)		(2,045	)
Equipment			(149	)		—			—		494		—		(6,953	)		(6,608	)
Tools			(64	)		—			—		32		—		(67	)		(99	)
Construction-in-progress			(111,822	)		—			23,155		—		17		(47,276	)		(135,926	)
Investment properties			(30	)		—			—		1		—		8			(21	)
Software			(91	)		—			—		60		—		(143	)		(174	)
Development expenditures			(3,820	)		—			—		1,466		—		(1,123	)		(3,477	)
Intangible assets under development			(7,326	)		—			—		—		—		5,218			(2,108	)
Other intangible assets			(71	)		—			—		4		—		—			(67	)

	￦		(512,747	)		(50,755	)		23,155		34,931		1,673		(17,358	)		(521,101	)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

27.	Government Grants, Continued

(3)	Changes in government grants for specific business projects for the years ended December 31, 2021 and 2022 are as follows:

2021

Increase

Decrease

Received

Interests

Used

Return

Department

Business
Name

Description

Period

Budget

Beginning
Balance

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Others

Ending
Balance

In millions of won

Ministry of Trade,
Industry and Energy

Temporary
electricity bill
support for
small business
owners

Temporary
electricity bill
support for
small
business
owners

2021.04.01

2022.06.30

211,235

748

—

139,550

—

(122,563

)

—

17,735

2022

Increase

Decrease

Received

Interests

Used

Return

Department

Business
Name

Description

Period

Budget

Beginning
Balance

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Self-
Payment

Local
Government

Subsidies

Others

Ending
Balance

In millions of won

Ministry of Trade,
Industry and Energy

Temporary
electricity bill
support for
small business
owners

Temporary
electricity bill
support for
small
business
owners

2021.04.01

2022.06.30

211,235

17,735

—

71,685

—

(88,300

)

—

1,120

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

28.	Deferred Revenues

Deferred revenue for the years ended December 31, 2021 and 2022 are as follows which included in current and

non-current

non-financial

liabilities in the consolidated statements of financial position:


		2021			2022

		In millions of won
Beginning balance	￦		9,868,189			10,356,555
Increase			1,149,578			1,330,129
Recognized as revenue			(661,212	)		(711,839	)

Ending balance	￦		10,356,555			10,974,845

29.	Non-financial Liabilities

Non-financial

liabilities as of December 31, 2021 and 2022 are as follows:


		2021				2022
		Current		Non-current		Current		Non-current

		In millions of won
Advance received	￦		4,157,916		398,056		4,544,206		284,618
Unearned revenue			40,187		6,517		86,584		7,200
Deferred revenue			659,397		9,697,158		702,430		10,272,415
Withholdings			345,892		5,171		207,217		2,408
Others			1,262,941		109,462		1,433,940		96,020

	￦		6,466,333		10,216,364		6,974,377		10,662,661

30.	Contributed Capital

(1)	Details of shares issued as of December 31, 2021 and 2022 are as follows:


	2021
	Shares authorized		Shares issued			Par value per share (in won)		Owned by government(*)		Owned by others		Total

	In millions of won except share information
Common shares		1,200,000,000		641,964,077	￦		5,000		1,640,385		1,569,435		3,209,820

(*)

Korea Development Bank’s interest of ￦1,056,176 million is included.


	2022
	Shares authorized		Shares issued			Par value per share (in won)		Owned by government(*)		Owned by others		Total

	In millions of won except share information
Common shares		1,200,000,000		641,964,077	￦		5,000		1,640,385		1,569,435		3,209,820

(*)

Korea Development Bank’s interest of ￦1,056,176 million is included.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

30.	Contributed Capital, Continued

(2)	Details in number of outstanding capital stock for the years ended December 31, 2021 and 2022 are as follows.


	2021		2022

	Number of shares
Beginning balance		641,964,077		641,964,077

Ending balance		641,964,077		641,964,077

(3)	Details of share premium as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Share premium	￦		843,758		843,758

31.	Retained Earnings and Dividends Paid

(1)	Details of retained earnings as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Legal reserve (*)	￦		1,604,910		1,604,910
Voluntary reserves			33,282,817		27,782,969
Retained earnings (Undisposed deficit) before appropriations			10,370,517		(7,956,579	)

Retained earnings	￦		45,258,244		21,431,300

(*)

The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to

paid-in

capital or offset against accumulated deficit by the resolution of the shareholders.

(2)	Details of voluntary reserves as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Reserve for investment on social overhead capital	￦		5,277,449		5,277,449
Reserve for research and human development (*)			330,000		330,000
Reserve for business expansion			27,465,368		21,965,520
Reserve for equalizing dividends			210,000		210,000

	￦		33,282,817		27,782,969

(*)

The reserve for research and human development is appropriated by KEPCO to use as qualified tax credits to reduce corporate tax liabilities. The reserve is available for cash dividends for a certain period as defined by the Restriction of Special Taxation Act of Korea.

F-1

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

31.	Retained Earnings and Dividends Paid, Continued

(3)	Changes in retained earnings for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		51,134,330			45,258,244
Loss for the year attributed to owners of the controlling company			(5,304,522	)		(24,466,853	)
Changes in equity method retained earnings			3,609			12,305
Remeasurements of defined benefit liability, net of tax			201,067			626,769
Transfer of gain or loss on valuation of financial assets at FVOCI			4,388			—
Dividends paid			(780,628	)		—
Additional paid-in capital and others			—			835

Ending balance	￦		45,258,244			21,431,300

(4)	Dividends paid for the years ended December 31, 2020, 2021 and 2022 are as follows:


	2020
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		—		—


	2021
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		1,216		780,628


	2022
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid

								(In won)
Common shares		641,964,077		—		641,964,077	￦		—		—

(5)	Changes in retained earnings of investments in associates and joint ventures for the years ended December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Beginning balance	￦		361		3,970
Changes			3,609		12,305

Ending balance	￦		3,970		16,275

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

31.	Retained Earnings and Dividends Paid, Continued

(6)	Changes in remeasurement components related to defined benefit liability for the years ended December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Beginning balance	￦		(169,234	)		98,844
Changes			327,957			964,791
Income tax effect			(126,890	)		(338,022	)
Transfer to reserve for business expansion			67,011			(110,808	)

Ending balance	￦		98,844			614,805

32.	Statements of Appropriation of Retained Earnings (Disposition of Deficit)

For the year ended December 31, 2021, KEPCO’s Deficit was disposed on March 29, 2022. For the year ended December 31, 2022, KEPCO’s deficits are expected to be disposed on March 28, 2023. Statements of disposition of deficit of KEPCO, the controlling company, for the years ended December 31, 2021 and 2022, respectively, are as follows:


		2021			2022

		In millions of won except for dividends per share
I. Deficit before disposition
Undisposed deficit carried over from prior years	￦		—			—
Net loss			(5,607,732	)		(25,297,713	)
Remeasurement of the defined benefit plan			107,884			327,056

			(5,499,848	)		(24,970,657	)

II. Transfer from voluntary reserves			5,499,848			24,970,657

III. Subtotal ( I+II )			—			—

IV. Disposition of deficit

V. Undisposed deficit to be carried over forward to subsequent year			—			—

33.	Hybrid Bonds

Hybrid bonds classified as equity

(non-controlling

interest) as of December 31, 2021 and 2022 are as follows:


Issuer	Hybrid bond	Issued date		Maturity		Yield (%)			2021			2022

	In millions of won
Korea South-East Power Co., Ltd. (*1)	1st hybrid bond		2012.12.07		2042.12.06		4.38	￦		170,000			—
Korea South-East Power Co., Ltd. (*2)	2nd hybrid bond		2012.12.07		2042.12.06		4.44			230,000			230,000
Expense of issuance										(1,090	)		(627	)

								￦		398,910			229,373

(*1)

The call option was exercised for the 1st hybrid bond during the current period.

(*2)

Bondholders may not require prepayment in any case, and the Company has a call option to repay all of these bonds on or after 12 years from the date of issuance of the bonds, or on each interest payment date henceforth. In addition, there is a step-up clause from the date of the initial call option exercise. Although these instruments have contractual maturity dates, the contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Company decides not to pay dividends on common shares, they are not required to pay interest on the hybrid bonds.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

34.	Other Components of Equity

(1)	Other components of equity of the parent as of December 31, 2021 and 2022 are as follows:


		2021			2022
		In millions of won
Other capital surplus	￦		1,231,109			1,268,569
Accumulated other comprehensive income (loss)			(57,632	)		496,976
Other equity			13,294,973			13,294,973

	￦		14,468,450			15,060,518

(2)	Changes in other capital surplus for the years ended December 31, 2021 and 2022 are as follows:


		2021								2022
		Gains on disposal of treasury stocks		Others			Subtotal			Gains on disposal of treasury stocks		Others			Subtotal
		In millions of won
Beginning balance	￦		387,524		836,581			1,224,105			387,524		843,585			1,231,109
Changes in consolidation scope			—		43			43			—		(597	)		(597	)
Additional paid-in capital and others			—		(491	)		(491	)		—		39,641			39,641
Transactions between consolidated entities			—		7,452			7,452			—		(1,584	)		(1,584	)

Ending balance	￦		387,524		843,585			1,231,109			387,524		881,045			1,268,569

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

34.	Other Components of Equity, Continued

(3)	Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Financial assets at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures		Reserve for overseas operations translation credit			Reserve for gain (loss) on valuation of derivatives			Total
		In millions of won
Beginning balance	￦		(101,132	)		10,091		(340,930	)		22,394			(409,577	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			59,022			—		—			—			59,022
Shares in other comprehensive income of associates and joint ventures, net of tax			—			301,161		—			—			301,161
Foreign currency translation of foreign operations, net of tax			—			—		15,760			—			15,760
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—			—		—			(19,610	)		(19,610	)
Others			(4,388	)		—		—			—			(4,388	)

Ending balance	￦		(46,498	)		311,252		(325,170	)		2,784			(57,632	)


		2022
		Financial assets at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures		Reserve for overseas operations translation credit			Reserve for gain (loss) on valuation of derivatives			Total
		In millions of won
Beginning balance	￦		(46,498	)		311,252		(325,170	)		2,784			(57,632	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			58,008			—		—			—			58,008
Shares in other comprehensive income of associates and joint ventures, net of tax			—			509,487		—			—			509,487
Foreign currency translation of foreign operations, net of tax			—			—		19,550			—			19,550
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—			—		—			(32,437	)		(32,437	)

Ending balance	￦		11,510			820,739		(305,620	)		(29,653	)		496,976

(4)	Other equity as of December 31, 2021 and 2022 are as follows:


		2021			2022
		In millions of won
Statutory revaluation reserve	￦		13,295,098			13,295,098
Changes in other equity			(125	)		(125	)

	￦		13,294,973			13,294,973

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

35.

Sales

Details of sales for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020				2021				2022
		Domestic		Overseas		Domestic		Overseas		Domestic		Overseas
		In millions of won
[Type of goods and services]
Sales of goods	￦		56,381,405		303,704		58,359,774		441,203		68,578,390		606,079
Electricity			55,731,782		—		57,308,555		—		66,198,964		—
Heat supply			198,715		—		232,738		—		489,629		—
Others			450,908		303,704		818,481		441,203		1,889,797		606,079
Sales related to rendering of services			223,075		206,275		252,216		204,184		370,799		343,803
Sales related to construction services			170,895		641,280		159,262		595,736		193,541		453,412

	￦		56,775,375		1,151,259		58,771,252		1,241,123		69,142,730		1,403,294


[Timing of revenue recognition]
Performance obligations satisfied at a point in time	￦		56,381,405		303,704		58,359,774		441,203		68,578,390		606,079
Performance obligations satisfied over time			393,970		847,555		411,478		799,920		564,340		797,215

	￦		56,775,375		1,151,259		58,771,252		1,241,123		69,142,730		1,403,294

F-17

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

36.	Selling and Administrative Expenses

(1)	Selling and administrative expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Salaries	￦		1,095,183		1,121,188		1,142,360
Retirement benefit expense			103,967		113,127		109,758
Welfare and benefit expense			155,071		155,558		155,781
Insurance expense			10,178		17,909		20,835
Depreciation			218,103		219,427		244,676
Amortization of intangible assets			87,086		91,428		85,661
Bad debt expense			20,648		17,968		23,634
Commission			368,275		410,287		420,390
Advertising expense			29,559		29,230		33,739
Training expense			5,196		4,923		7,327
Vehicle maintenance expense			9,435		8,849		10,749
Publishing expense			3,677		3,568		3,732
Business promotion expense			3,614		3,522		3,198
Rent expense			36,337		43,650		47,680
Telecommunication expense			8,686		8,569		7,945
Transportation expense			1,007		870		1,012
Taxes and dues			62,828		93,446		122,177
Expendable supplies expense			8,029		9,052		9,617
Water, light and heating expense			11,749		12,351		17,950
Repairs and maintenance expense			79,185		123,134		152,449
Ordinary development expense			197,436		213,936		213,932
Travel expense			10,793		11,099		16,062
Clothing expense			14,834		10,540		13,044
Survey and analysis expense			826		889		1,126
Membership fee			1,274		1,331		1,469
Others			135,467		149,945		143,119

	￦		2,678,443		2,875,796		3,009,422

(2)	Details of “others” included in selling and administrative expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Accommodation development expenses	￦		30,889		57,815		56,038
Miscellaneous wages			45,887		47,221		31,910
Litigation and filing expenses			19,341		16,383		14,876
Compensation for damages			8,374		3,303		3,116
Outsourcing expenses			3,610		3,799		3,635
Reward expenses			3,228		3,006		2,740
Overseas market development expenses			1,218		1,192		1,376
Others			22,920		17,226		29,428

	￦		135,467		149,945		143,119

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

37.	Other Income and Expenses

(1)	Other income for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Reversal of other provisions	￦		25,826		15,548		15,265
Reversal of other allowance for doubtful accounts			2,465		98		37
Gains on government grants			269		458		301
Gains on assets contributed			24,324		9,347		1,953
Gains on liabilities exempted			1,314		1,830		1,181
Compensation and reparations revenue			95,407		104,826		89,638
Revenue from foundation fund			—		1		3
Revenue from research contracts			4,001		5,996		8,191
Income related to transfer of assets from customers			643,477		661,212		711,839
Rental income			193,567		204,123		208,064
Others			45,798		30,694		59,017

	￦		1,036,448		1,034,133		1,095,489

(2)	Details of “others” included in other income for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Refund of claim for rectification	￦		11,880		7,274		701
Adjustment of research project			2,150		7,638		—
Maintenance expenses on lease building			2,785		160		125
Training expenses			3,852		1,739		1,684
Deposit redemption			314		378		12
Reversal of expenses on litigation			620		991		1,920
Revenue on royalty fee			—		173		455
Reimbursement of insurance fee			22		1		—
Gains on guarantee contracts			134		27		22
Others			24,041		12,313		54,098

	￦		45,798		30,694		59,017

(3)	Other expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Compensation and indemnification expense	￦		11,959		663		36
Accretion expenses of other provisions			17,991		2,711		1,138
Depreciation expenses on investment properties			1,453		1,386		486
Depreciation expenses on idle assets			6,604		3,621		3,635
Other bad debt expense			32,503		49,372		6,400
Donations			316,981		152,456		131,037
Others			30,229		47,723		69,418

	￦		417,720		257,932		212,150

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

37.	Other Income and Expenses, Continued

(4)	Details of “others” included in other expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022
		In millions of won
Operating expenses related to the idle assets	￦		46		44		1,683
Research grants			91		109		562
Expenses related to farming and fishing village supports			16,115		17,065		11,272
Expenses related to Operating of a fitness center			5,101		6,948		8,370
Expenses on adjustment of research and development grants			720		2,241		260
Taxes and dues			253		119		31,985
Expenses on R&D supports			242		861		48
Others			7,661		20,336		15,238

	￦		30,229		47,723		69,418

38.	Other Gains (Losses)

(1)	Composition of other gains (losses) for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022
		In millions of won
Other gains
Gains on disposal of property, plant and equipment	￦		93,195			56,284			148,667
Gains on disposal of intangible assets			1,556			1			41
Reversal of impairment loss on property, plant and equipment			7,805			—			134,735
Reversal of impairment loss on intangible assets			—			14			—
Gains on foreign currency translation			8,917			20,598			36,097
Gains on foreign currency transaction			61,865			48,671			235,221
Gains on insurance proceeds			43,800			144			43,497
Others			322,379			250,174			294,091

Other losses
Losses on disposal of property, plant and equipment			(162,725	)		(92,622	)		(100,066	)
Losses on disposal of intangible assets			(392	)		(145	)		(116	)
Losses on valuation of other non-current assets			(241	)		—			—
Impairment loss on property, plant and equipment			(80,413	)		(4,056	)		(37,311	)
Impairment loss on intangible assets			(3,599	)		—			(164	)
Impairment loss on other non-current assets			—			(16,035	)		—
Losses on foreign currency translation			(17,664	)		(4,732	)		(14,738	)
Losses on foreign currency transaction			(49,694	)		(67,990	)		(299,117	)
Others			(189,695	)		(181,787	)		(197,715	)

	￦		35,094			8,519			243,122

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

38.	Other Gains (Losses), Continued

(2)	Details of “others” included in other gains for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Gains on disposal of inventories	￦		3,373		4,446		11,091
Gains on proxy collection of TV license fee			41,438		42,271		42,286
Gains on compensation of impaired electric poles			978		812		768
Gains on harbor facilities dues			2,231		3,281		4,198
Gains on technical fees			4,826		3,968		2,972
Reversal of occupation development training fees			352		229		525
Gains on disposal of waste			6,927		4,272		7,749
Gains on insurance			—		690		—
Gains on tax rebate			772		685		548
Gains on other commission			1,643		1,822		2,097
Gains on disposal of greenhouse gas emissions rights			—		8,739		—
Gains on disposal of assets held-for-sale			—		160		236
Others			259,839		178,799		221,621

	￦		322,379		250,174		294,091

(3)	Details of “others” included in other losses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Losses on valuation of inventories	￦		4,998		7,761		14,528
Losses on disposal of inventories			37,644		8,874		8,324
Losses due to disaster			16,814		6,238		5,068
Losses on rounding adjustment of electric charge surtax			1,276		1,283		1,317
Loss on disposal of greenhouse gas emissions rights			—		11,282		—
Others			128,963		146,349		168,478

	￦		189,695		181,787		197,715

39.	Finance Income

(1)	Finance income for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Interest income	￦		242,586		221,874		340,753
Dividends income			7,316		10,522		28,875
Gains on disposal of financial assets			11,992		7,718		11,199
Gains on valuation of financial assets at fair value through profit or loss			12,904		14,338		7,099
Gains on valuation of derivatives			57,563		860,011		595,256
Gains on transaction of derivatives			146,448		124,900		429,847
Gains on foreign currency translation			1,005,961		146,349		389,361
Gains on foreign currency transactions			24,009		15,618		29,997
Other financial income			1,470		1,284		925

	￦		1,510,249		1,402,614		1,833,312

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

39.	Finance Income, Continued

(2)	Details of interest income included in finance income for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Cash and cash equivalents	￦		9,419		12,692		51,872
Financial assets at fair value through profit or loss			19,114		18,415		58,540
Financial assets at amortized cost			612		797		1,308
Loans			26,232		25,196		33,545
Short-term financial instruments			25,540		7,531		15,827
Long-term financial instruments			10,406		12,470		14,371
Other financial assets			228		230		637
Trade and other receivables			151,035		144,543		164,653

	￦		242,586		221,874		340,753

40.	Finance Expenses

(1)	Finance expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Interest expense	￦		1,995,425		1,914,457		2,818,546
Losses on sale of financial assets			648		1,045		1,841
Losses on valuation of financial assets at fair value through profit or loss			7,396		5,480		44,329
Losses on valuation of derivatives			513,278		37,017		371,038
Losses on transaction of derivatives			81,055		40,818		205,162
Losses on foreign currency translation			215,047		1,159,334		934,005
Losses on foreign currency transaction			79,103		83,558		346,711
Losses on repayment of financial liabilities			35		10		15
Others			4,456		4,058		25,144

	￦		2,896,443		3,245,777		4,746,791

(2)	Details of interest expense included in finance expenses for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022

		In millions of won
Trade and other payables	￦		88,757			213,765			204,078
Short-term borrowings			29,358			42,371			145,201
Long-term borrowings			118,678			115,141			204,037
Debt securities			1,805,253			1,728,588			2,388,517
Other financial liabilities			540,867			384,423			472,248

			2,582,913			2,484,288			3,414,081
Less: Capitalized borrowing costs			(587,488	)		(569,831	)		(595,535	)

	￦		1,995,425			1,914,457			2,818,546

Capitalization rates for the years ended December 31, 2020, 2021 and 2022 are 2.14%~4.84%, 2.02%~4.33% and 2.25%~3.86%, respectively.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

41.	Income Taxes

(1)	Income tax expense (benefit) for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022

		In millions of won
Current income tax expense
Payment of income tax	￦		671,179			357,767			563,681
Adjustment in respect of prior years due to change in estimate			(63,756	)		153,113			48,374
Current income tax directly recognized in equity			51,486			(198,714	)		(350,348	)

			658,909			312,166			261,707

Deferred tax expense (benefit)
Generation and realization of temporary differences			(77,985	)		(489,411	)		(564,801	)
Reclassified from equity to profit (loss)			—			—			(4,964	)
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods			(10,471	)		(43,653	)		(38,708	)
Changes in deferred tax on tax losses carryforwards			296,070			(1,641,823	)		(9,175,755	)
Tax credit carryforwards			32,541			(12,199	)		34,019
Amount due to change in tax rate or regulations			—			18,931			73,991

			240,155			(2,168,155	)		(9,676,218	)

Income tax expense (benefit)	￦		899,064			(1,855,989	)		(9,414,511	)

(2)	Reconciliation between actual income tax expense (benefit) and amount computed by applying the statutory tax rate to profit (loss) before income taxes for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022

		In millions of won
Profit (loss) before income tax	￦		2,991,533			(7,071,570	)		(33,843,619	)

Income tax expense (benefit) computed at applicable tax rate (*1)			822,672			(1,944,682	)		(9,306,995	)
Adjustments
Effect of applying gradual tax rate			(10,362	)		(10,362	)		(10,362	)
Effect of non-taxable income			(13,593	)		(4,983	)		(9,471	)
Effect of non-deductible expenses			46,776			78,814			39,663
Effect of tax losses that are not recognized as deferred tax asset			—			1,351			19,275
Effects of tax credits and deduction			(63,753	)		(43,931	)		(98,684	)
Reversal of unrecognized deferred tax asset, net			(10,471	)		(43,641	)		(38,708	)
Effect of change in deferred tax due to change in tax rate			(17,590	)		18,931			393,416
Deduction of deferred tax assets			55,682			73,887			(85,514	)
Deferred tax related to investments in subsidiaries, associates and joint ventures			102,137			(135,878	)		(375,064	)
Others, net			51,322			1,392			9,559

			140,148			(64,420	)		(155,890	)
Adjustment in respect of prior years due to change in estimate			(63,756	)		153,113			48,374

Income tax expense (benefit)	￦		899,064			(1,855,989	)		(9,414,511	)

Effective tax rate			30.05	%		(*2	)		(*2	)

(*1)

Applicable tax rate is 27.5% as of December 31, 2020, 2021 and 2022.

(*2)

The effective tax rate for the year ended December 31, 2020 is

30.05

% and the effective tax rate for the years ended December 31, 2021 and 2022 is not calculated due to income tax benefit.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

41.	Income Taxes, Continued

(3)	Income tax directly adjusted to equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020		2021		2022

		In millions of won
Dividends of hybrid bond	￦		4,273		4,736		4,149
Disposal of subsidiaries			—		—		406

	￦		4,273		4,736		4,555

(4)	Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020			2021			2022

		In millions of won
Income tax recognized as other comprehensive income (loss)
Gain (loss) on valuation of financial assets at fair value through other comprehensive income	￦		19,447			(9,753	)		(31,416	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			(47,231	)		24,220			40,390
Remeasurement of defined benefit liability			14,971			(126,890	)		(322,489	)
Investments in associates			35,714			(53,672	)		(66,677	)
Others			24,312			(37,355	)		25,289

	￦		47,213			(203,450	)		(354,903	)

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

41.	Income Taxes, Continued

(5)	Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2021 and 2022 are as follows:


		2021
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance

		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		689,787			(4,514	)		(126,890	)		—		558,383
Cash flow hedge			15,587			(90,217	)		24,220			463		(49,947	)
Investments in subsidiaries, associates and joint ventures			(8,668,015	)		367			(53,672	)		—		(8,721,320	)
Property, plant and equipment			(7,713,449	)		282,988			—			—		(7,430,461	)
Finance lease			(211,420	)		(204,138	)		—			—		(415,558	)
Intangible assets			(31,166	)		(315	)		—			—		(31,481	)
Financial assets at fair value through profit or loss			13			(1	)		—			—		12
Financial assets at fair value through other comprehensive income			37,950			(816	)		(9,753	)		—		27,381
Deferred revenue			199,701			(13,310	)		—			—		186,391
Provisions			5,916,803			577,511			—			—		6,494,314
Doubtful receivables			—			801			—			—		801
Other finance liabilities			30,399			(3,262	)		—			4,273		31,410
Gains or losses on foreign exchange translation			(11,635	)		103,046			—			—		91,411
Allowance for doubtful accounts			56,129			8,135			—			—		64,264
Accrued income			8,944			1,058			—			—		10,002
Special deduction for property, plant and equipment			(226,351	)		2,224			—			—		(224,127	)
Others			1,505,951			(22,769	)		(37,355	)		—		1,445,827

			(8,400,772	)		636,788			(203,450	)		4,736		(7,962,698	)

Deferred tax on unused tax losses and tax credit
Unused tax losses			893,074			1,666,803			—			—		2,559,877
Excess of donation limit			35,181			34,004			—			—		69,185
Tax credit			105,416			29,274			—			—		134,690

			1,033,671			1,730,081			—			—		2,763,752

	￦		(7,367,101	)		2,366,869			(203,450	)		4,736		(5,198,946	)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

41.	Income Taxes, Continued

(5)	Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2021 and 2022 are as follows, continued:


		2022
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance

		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		558,383			(36,341	)		(322,489	)		—		199,553
Cash flow hedge			(49,947	)		(46,188	)		40,390			405		(55,340	)
Investments in subsidiaries, associates and joint ventures			(8,721,320	)		410,310			(66,677	)		—		(8,377,687	)
Property, plant and equipment			(7,430,461	)		(111,177	)		—			—		(7,541,638	)
Finance lease			(415,558	)		9,919			—			—		(405,639	)
Intangible assets			(31,481	)		6,550			—			—		(24,931	)
Financial assets at fair value through profit or loss			12			3,445			—			—		3,457
Financial assets at fair value through other comprehensive income			27,381			25,178			(31,416	)		—		21,143
Deferred revenue			186,391			(16,411	)		—			—		169,980
Provisions			6,494,314			595,030			—			—		7,089,344
Doubtful receivables			801			1,673			—			—		2,474
Other finance liabilities			31,410			(14,142	)		—			4,150		21,418
Gains or losses on foreign exchange translation			91,411			42,905			—			—		134,316
Allowance for doubtful accounts			64,264			(6,029	)		—			—		58,235
Accrued income			10,002			6,612			—			—		16,614
Special deduction for property, plant and equipment			(224,127	)		8,968			—			—		(215,159	)
Others			1,445,827			16,456			25,289			—		1,487,572

			(7,962,698	)		896,758			(354,903	)		4,555		(7,416,288	)

Deferred tax on unused tax losses and tax credit
Unused tax losses			2,559,877			9,102,228			—			—		11,662,105
Excess of donation limit			69,185			11,861			—			—		81,046
Tax credit			134,690			15,719			—			—		150,409

			2,763,752			9,129,808			—			—		11,893,560

	￦		(5,198,946	)		10,026,566			(354,903	)		4,555		4,477,272

(6)	Deferred tax assets (liabilities) recognized in the consolidated statements of financial position as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Deferred tax assets	￦		1,901,992			10,934,375
Deferred tax liabilities			(7,100,938	)		(6,457,103	)

	￦		(5,198,946	)		4,477,272

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

41.	Income Taxes, Continued

(7)	Details of deductible temporary differences, tax losses and unused tax credits for which no deferred tax assets were recognized as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Deductible temporary differences	￦		1,539,980		1,381,532

42.	Assets Held-for-Sale

Assets

held-for-sale

as of December 31, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Land (*1,2)	￦		2,907		31,766
Buildings (*1,2)			12,971		12,981
Structures (*1)			1		1

	￦		15,879		44,748

(*1)

The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Company, made a resolution to sell its old office building in

Yongin-si,

Gyeonggi-do

during the year ended December 31, 2022, and reclassified the buildings, structures, and land as assets

held-for-sale

expecting its carrying amount would be recovered through a sale transaction.

(*2)

The board of directors of Korea Electric Power Corporation, the controlling company, made a resolution to sell the Uijeongbu substation during the year ended December 31, 2022, and reclassified the buildings and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

43.	Expenses Classified by Nature

Expenses classified by nature for the years ended December 31, 2020, 2021 and 2022 are as follows:


		2020
		Selling and administrative expenses		Cost of sales		Total

		In millions of won
Raw materials used	￦		—		13,544,410		13,544,410
Salaries			1,095,183		4,183,454		5,278,637
Retirement benefit expense			103,967		458,029		561,996
Welfare and benefit expense			155,071		484,319		639,390
Insurance expense			10,178		93,130		103,308
Depreciation			218,103		11,151,393		11,369,496
Amortization of intangible assets			87,086		83,380		170,466
Bad debt expense			20,648		—		20648
Commission			368,275		376,047		744,322
Advertising expense			29,559		8,161		37,720
Training expense			5,196		12,912		18,108
Vehicle maintenance expense			9,435		7,161		16,596
Publishing expense			3,677		3,524		7,201
Business promotion expense			3,614		3,720		7,334
Rent expense			36,337		191,073		227,410
Telecommunication expense			8,686		9,961		18,647
Transportation expense			1,007		10,362		11,369
Taxes and dues			62,828		492,203		555,031
Expendable supplies expense			8,029		36,966		44,995
Water, light and heating expense			11,749		31,209		42,958
Repairs and maintenance expense			79,185		2,465,716		2,544,901
Ordinary development expense			197,436		503,206		700,642
Travel expense			10,793		60,896		71,689
Clothing expense			14,834		8,116		22,950
Survey and analysis expense			826		3,746		4,572
Membership fee			1,274		13,130		14,404
Power purchase			—		15,725,220		15,725,220
Others			135,467		1,842,735		1,978,202

	￦		2,678,443		51,804,179		54,482,622

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

43.	Expenses Classified by Nature, Continued

Expenses classified by nature for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:


		2021
		Selling and administrative expenses		Cost of sales		Total

		In millions of won
Raw materials used	￦		—		18,660,477		18,660,477
Salaries			1,121,188		4,276,494		5,397,682
Retirement benefit expense			113,127		488,263		601,390
Welfare and benefit expense			155,558		570,440		725,998
Insurance expense			17,909		104,544		122,453
Depreciation			219,427		11,551,897		11,771,324
Amortization of intangible assets			91,428		74,733		166,161
Bad debt expense			17,968		—		17,968
Commission			410,287		307,272		717,559
Advertising expense			29,230		9,552		38,782
Training expense			4,923		13,283		18,206
Vehicle maintenance expense			8,849		8,152		17,001
Publishing expense			3,568		3,310		6,878
Business promotion expense			3,522		3,777		7,299
Rent expense			43,650		194,234		237,884
Telecommunication expense			8,569		10,959		19,528
Transportation expense			870		53,365		54,235
Taxes and dues			93,446		529,380		622,826
Expendable supplies expense			9,052		41,414		50,466
Water, light and heating expense			12,351		43,025		55,376
Repairs and maintenance expense			123,134		2,494,861		2,617,995
Ordinary development expense			213,936		475,461		689,397
Travel expense			11,099		67,103		78,202
Clothing expense			10,540		7,994		18,534
Survey and analysis expense			889		3,992		4,881
Membership fee			1,331		8,492		9,823
Power purchase			—		21,619,039		21,619,039
Others			149,945		2,022,777		2,172,722

	￦		2,875,796		63,644,290		66,520,086

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

43.	Expenses Classified by Nature, Continued

Expenses classified by nature for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:


		2022
		Selling and administrative expenses		Cost of sales		Total

		In millions of won
Raw materials used	￦		—		34,832,581		34,832,581
Salaries			1,142,360		4,329,099		5,471,459
Retirement benefit expense			109,758		505,612		615,370
Welfare and benefit expense			155,781		540,058		695,839
Insurance expense			20,835		106,672		127,507
Depreciation			244,676		12,056,455		12,301,131
Amortization of intangible assets			85,661		70,499		156,160
Bad debt expense			23,634		—		23,634
Commission			420,390		351,557		771,947
Advertising expense			33,739		10,552		44,291
Training expense			7,327		14,813		22,140
Vehicle maintenance expense			10,749		10,275		21,024
Publishing expense			3,732		3,014		6,746
Business promotion expense			3,198		3,340		6,538
Rent expense			47,680		186,439		234,119
Telecommunication expense			7,945		9,677		17,622
Transportation expense			1,012		113,845		114,857
Taxes and dues			122,177		554,320		676,497
Expendable supplies expense			9,617		47,159		56,776
Water, light and heating expense			17,950		60,002		77,952
Repairs and maintenance expense			152,449		2,586,975		2,739,424
Ordinary development expense			213,932		513,878		727,810
Travel expense			16,062		78,999		95,061
Clothing expense			13,044		8,778		21,822
Survey and analysis expense			1,126		4,322		5,448
Membership fee			1,469		16,912		18,381
Power purchase			—		41,984,858		41,984,858
Others			143,119		1,902,903		2,046,022

	￦		3,009,422		100,903,594		103,913,016

44.	Earnings (Loss) Per Share

(1)	Basic earnings (loss) per share for the years ended December 31, 2020, 2021 and 2022 are as follows:


Type		2020		2021			2022

		In won
Basic earnings (loss) per share	￦		3,102		(8,263	)		(38,112	)

(2)	Diluted earnings (loss) per share for the years ended December 31, 2020, 2021 and 2022 are as follows:


Type		2020		2021			2022

		In won
Diluted earnings (loss) per share	￦		3,102		(8,263	)		(38,112	)

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

44.	Earnings (Loss) Per Share, Continued

(3)	Basic earnings (loss) per share

Profit (loss) for the year and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the years ended December 31, 2020, 2021 and 2022 are as follows:


Type		2020		2021			2022

		In millions of won except number of shares
Profit (loss) attributable to owners of the controlling company	￦		1,991,347		(5,304,522	)		(24,466,853	)
Profit (loss) used in the calculation of total basic earnings (loss) per share			1,991,347		(5,304,522	)		(24,466,853	)
Weighted average number of common shares			641,964,077		641,964,077			641,964,077

(4)	Diluted earnings (loss) per share

Diluted earnings (loss) per share is calculated by applying adjusted weighted average number of common shares under the assumption that all dilutive potential common shares are converted to common shares.

Profit (loss) used in the calculation of total diluted earnings (loss) per share for the years ended December 31, 2020, 2021 and 2022 are as follows:


Type		2020		2021			2022

		In millions of won
Profit (loss) used in the calculation of total diluted earnings (loss) per share	￦		1,991,347		(5,304,522	)		(24,466,853	)

Weighted average number of common shares used in calculating diluted earnings (loss) per share are adjusted from weighted average number of common shares used in calculating basic earnings (loss) per share. Detailed information of the adjustment for the years ended December 31, 2020, 2021 and 2022 are as follows:


Type	2020		2021		2022

	In number of shares
Weighted average number of common shares		641,964,077		641,964,077		641,964,077
Diluted weighted average number of shares		641,964,077		641,964,077		641,964,077

(5)	There are no potential dilutive instruments, thus diluted earnings (loss) per share are same as basic earnings (loss) per share for the years ended December 31, 2020, 2021 and 2022.

45.	Risk Management

(1)	Capital risk management

The Company manages its capital to ensure that entities in the Company will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (offset by cash and cash equivalents) and equity. The Company’s overall capital risk management strategy remains consistent with the prior year.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(1)	Capital risk management, continued

Details of the Company’s capital management accounts as of December 31, 2021 and 2022 are as follows:


		2021			2022

		In millions of won
Total borrowings and debt securities	￦		80,529,513			120,605,365
Cash and cash equivalents			2,635,238			3,234,780

Net borrowings and debt securities			77,894,275			117,370,585

Total equity			65,326,706			42,000,256

Debt to equity ratio			119.24	%		279.45	%

(2)	Financial risk management

The Company is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), credit risk. The Company monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. The Company uses derivative financial instruments to hedge certain risk exposures. The Company’s overall financial risk management strategy remains consistent with the prior year.

(i)

Credit risk

Credit risk is the risk of finance loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales activities, securities and derivatives. In addition, credit risk exposure may exist within financial guarantees and unused line of credits. As these financial institutions the Company makes transactions with are reputable financial institutions, the credit risk from them are considered limited. The Company decides credit transaction limits based on evaluation of client’s credit, through information obtained from the credit bureau and disclosed financial position at committing contracts.

①

Credit risk management

Electricity sales, the main operations of the Company are the necessity for daily life and industrial activities of Korean nationals and have importance as one of the national key industries. The Company dominates the domestic market supplying electricity to customers. The Company is not exposed to significant credit risk as customers of the Company are diverse and are from various industries and areas. The Company uses publicly available information and its own internal data related to trade receivables, to rate its major customers and to measure the credit risk that a counter party will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.

②

Impairment and allowance account

In accordance with the Company policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

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, 2021 and 2022 are as follows:


		2021		2022

		In millions of won
Cash and cash equivalents	￦		2,635,238		3,234,780
Financial assets at fair value through profit or loss(*1)			932,736		3,610,408
Derivative assets (trading)			443,027		693,072
Financial assets at fair value through other comprehensive income (debt securities)			491		529
Financial assets at amortized cost			25,273		26,998
Loans			909,071		1,013,371
Long-term/short-term financial instruments			1,728,508		1,353,080
Derivative assets (applying hedge accounting)			204,756		324,952
Trade and other receivables			10,029,276		12,614,902
Financial guarantee contracts(*2)			3,718,015		3,776,060

(*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.

As of the reporting date, 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.

(ii)

Market risk

Market risk is the risk that the Company’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk, foreign currency risk and other price risk.

(iii)

Sensitivity analysis

Significant assets and liabilities with uncertainties in underlying assumptions

①

Defined benefit obligation

A sensitivity analysis of defined benefit obligation assuming a 1% increase and decrease movements in the actuarial valuation assumptions as of December 31, 2021 and 2022 are as follows:


			2021						2022
Type	Accounts		1% Increase			1% Decrease			1% Increase			1% Decrease

			In millions of won
Future salary increases	Increase (decrease) in defined benefit obligation	￦		466,832			(407,554	)		321,930			(283,658	)
Discount rate	Increase (decrease) in defined benefit obligation			(422,290	)		499,571			(289,229	)		337,033

Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the years ended December 31, 2021 and 2022 are ￦25,649 million and ￦27,495 million, respectively.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

②

Provisions

Changes in provisions due to movements in underlying assumptions as of December 31, 2021 and 2022 are as follows:


Type	Accounts	2021			2022
PCBs	Inflation rate		1.37	%		1.98	%
	Discount rate		1.88	%		1.92	%
Nuclear plants	Inflation rate		1.41	%		2.25	%
	Discount rate		2.20	%		2.48	%
Spent fuel	Inflation rate		2.93	%		2.93	%
	Discount rate		4.49	%		4.49	%
Radioactive waste	Inflation rate		1.00	%		3.06	%
	Discount rate		1.87	%		2.62	%

A sensitivity analysis of provisions assuming a 0.1% increase and decrease movements in the underlying assumptions as of December 31, 2021 and 2022 are as follows:


			2021						2022
Type	Accounts		0.1% Increase			0.1% Decrease			0.1% Increase			0.1% Decrease

			In millions of won
Discount rate	PCBs	￦		(222	)		223			(169	)		169
	Nuclear plants			(369,540	)		381,026			(474,432	)		491,360
	Spent fuel			(51,430	)		53,438			(54,330	)		56,453
	Radioactive waste			(11,201	)		11,306			(15,089	)		15,260
Inflation rate	PCBs			224			(224	)		169			(169	)
	Nuclear plants			403,420			(391,754	)		515,262			(498,258	)
	Spent fuel			54,210			(52,245	)		57,269			(55,191	)
	Radioactive waste			10,366			(10,288	)		14,190			14,056

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

Management judgment effected by uncertainties in underlying assumptions

①

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, 2021 and 2022 are as follows:


	Assets				Liabilities
Type	2021		2022		2021		2022

	In thousands of foreign currencies
AED		6,481		5,610		31,637		25,597
AUD		3,733		4,448		926,960		299,663
BDT		50,145		7,514		577		—
BWP		939		824		—		—
EGP		—		—		595		1,162
CAD		582		89		2,266		595
CHF		—		—		500,230		500,158
CZK		—		—		386		153
EUR		1,809		1,976		42,981		41,073
GBP		—		—		—		31
HKD		—		—		1,651,665		4,014,446
IDR		768,731		598,697		995,510		1,323,840
INR		1,715,900		1,592,380		342,833		312,978
JOD		1,852		1,146		118		14
JPY		697,747		568,263		153,383		1,719,846
KZT		1,510		1,510		—		—
MGA		4,262,857		2,856,045		475,807		347,403
MMK		210,335		199,518		—		—
MYR		1,964		38,177		—		—
PHP		164,167		68,592		104,245		7,493
PKR		200,844		533,816		74,423		219,341
RUB		—		—		—		2,881
SAR		2,615		1,713		—		9,710
SEK		—		—		449,167		449,211
THB		—		—		—		389
USD		1,381,441		1,484,614		12,023,085		13,599,643
UYU		90,930		128,674		3,097		3,106
VND		952,135		1,184,670		262,372		4,495
ZAR		31,971		43,461		—		—

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, 2021 and 2022 are as follows:


		2021					2022
Type		10% Increase			10% Decrease		10% Increase			10% Decrease
		In millions of won

Increase (decrease) of profit before income tax	￦		(1,439,185	)		1,439,185		(1,703,053	)		1,703,053
Increase (decrease) of equity(*)			(1,439,185	)		1,439,185		(1,703,053	)		1,703,053

(*)

The effect on the shareholders’ equity excluding the impact of income taxes.

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of December 31, 2021 and 2022.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Company has a policy to enter into currency forward agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Company enters into currency forward agreements.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of December 31, 2022, the hedging instrument (cross-currency swap) hedges the risk of the hedged item(repayment of foreign debt securities and others).

②

Interest rate risk

The Company is exposed to interest rate risk due to its borrowing with floating interest rates. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The Company’s borrowings and debt securities with floating interest rates as of December 31, 2021 and 2022 are as follows:


Type		2021		2022

		In millions of won
Short-term borrowings	￦		391,897		3,154,972
Long-term borrowings			2,405,244		5,388,073
Debt securities			257,667		269,101

	￦		3,054,808		8,812,146

A sensitivity analysis on the Company’s long-term borrowings and debt securities assuming a 1% increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the years ended December 31, 2021 and 2022 are as follows:


		2021					2022
Type		1% Increase			1% Decrease		1% Increase			1% Decrease

		In millions of won
Increase (decrease) of profit before income tax	￦		(30,548	)		30,548		(88,121	)		88,121
Increase (decrease) of shareholder’s equity(*)			(30,548	)		30,548		(88,121	)		88,121

(*)

The effect on the shareholders’ equity excluding the impact of income taxes.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

③

Electricity rates risk

The Company is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

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, 2021 and 2022 is as follows:


		2021					2022
Type		1% Increase		1% Decrease			1% Increase		1% Decrease

		In millions of won
Increase (decrease) of profit before income tax	￦		573,086		(573,086	)		661,990		(661,990	)
Increase (decrease) of shareholder’s equity(*)			573,086		(573,086	)		661,990		(661,990	)

(*)

The effect on the equity excluding the impact of income taxes.

(iv)

Liquidity risk

The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by continuously monitoring forecasted and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

In addition, the Company has established credit lines on its trade financing and bank overdrafts, and through payment guarantees it has received, it maintains an adequate credit (borrowing) line. In addition, the Company has the ability to utilize excess cash or long-term borrowings for major construction investments.

The expected maturities for

non-derivative

financial liabilities as of December 31, 2021 and 2022 in detail are as follows:


		2021
Type		Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total

		In millions of won
Borrowings and debt securities	￦		15,833,589		11,229,657		28,663,693		36,223,543		91,950,482
Lease liabilities			620,121		636,724		1,521,421		2,150,722		4,928,988
Trade and other payables			7,569,869		777,017		725,231		667,304		9,739,421
Financial guarantee contracts(*)			435,729		—		3,105,599		176,687		3,718,015

	￦		24,459,308		12,643,398		34,015,944		39,218,256		110,336,906


		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			11,369,512		347,563		1,008,133		734,112		13,459,320
Financial guarantee contracts(*)			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

(*)

This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2021 and 2022 are ￦80,841 million and ￦67,240 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

The following table shows the details of maturities of

non-derivative

financial liabilities as of December 31, 2021 and 2022. This table, based on the undiscounted cash flows of the

non-derivative

financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

The expected maturities for

non-derivative

financial assets as of December 31, 2021 and 2022 in detail are as follows:


		2021
Type		Less than 1 year		1~5 Years		More than 5 years		Other(*)		Total

		In millions of won
Cash and cash equivalents	￦		2,635,238		—		—		—		2,635,238
Financial assets at fair value through other comprehensive income			—		—		—		435,107		435,107
Financial assets at amortized cost			15,422		9,840		11		—		25,273
Loans			88,396		443,146		407,584		—		939,126
Long-term/short-term financial instruments			1,278,014		171,636		286		278,572		1,728,508
Financial assets at fair value through profit or loss			360,833		346		3,130		668,555		1,032,864
Trade and other receivables			8,123,455		1,233,703		679,048		—		10,036,206

	￦		12,501,358		1,858,671		1,090,059		1,382,234		16,832,322


		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

(*)

The maturities cannot be presently determined.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(2)	Financial risk management, continued

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2021 and 2022 are as follows:


		2021
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			(6,628	)		(4,954	)		(33,635	)		(2,291	)		(47,508	)
—Hedging			(2,555	)		(638	)		(1,914	)		(23,704	)		(28,811	)

	￦		(9,183	)		(5,592	)		(35,549	)		(25,995	)		(76,319	)


		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	)

Derivative assets classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2021 and 2022 are as follows:


		2021
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			93,554		54,617		202,663			105,856		456,690
—Hedging			33,564		65,198		102,760			3,235		204,757

	￦		127,118		119,815		305,423			109,091		661,447


		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

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(3)	Fair value risk

The fair value of the Company’s actively-traded financial instruments (i.e., FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Company’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Company uses that technique.

For trade receivables and payables, the Company considers the carrying value net of impairment as fair value. While for disclosure purposes, the fair value of financial liabilities is estimated by discounting the future contractual cash flows based on current market interest rates applied to similar financial instruments.

(i)

Fair value and book value of financial assets and liabilities as of December 31, 2021 and 2022 are as follows:


		2021				2022
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	￦		435,107		435,107		502,829		502,829
Derivative assets (trading)			443,027		443,027		693,072		693,072
Derivative assets (hedge designated)			204,756		204,756		324,952		324,952
Financial assets at fair value through profit or loss			1,032,864		1,032,864		3,709,508		3,709,508

	￦		2,115,754		2,115,754		5,230,361		5,230,361

Assets carried at amortized cost
Financial assets at amortized cost	￦		25,273		25,273		26,998		26,998
Loans and receivables			909,071		909,071		1,013,371		1,013,371
Trade and other receivables			10,029,276		10,029,276		12,614,902		12,614,902
Long-term financial instruments			450,494		450,494		686,322		686,322
Short-term financial instruments			1,278,014		1,278,014		666,758		666,758
Cash and cash equivalents			2,635,238		2,635,238		3,234,780		3,234,780

	￦		15,327,366		15,327,366		18,243,131		18,243,131

Liabilities recognized at fair value
Derivative liabilities (trading)	￦		56,256		56,256		407,246		407,246
Derivative liabilities (hedge designated)			21,775		21,775		25,505		25,505

	￦		78,031		78,031		432,751		432,751

Liabilities carried at amortized cost
Secured borrowings	￦		176,358		176,358		102,368		102,368
Unsecured bond			73,881,671		69,803,043		105,185,189		96,846,056
Lease liabilities			4,410,503		4,410,503		4,163,143		4,163,143
Unsecured borrowings			6,471,484		5,938,613		15,282,193		15,280,693
Trade and other payables(*)			9,739,421		9,739,421		13,459,320		13,459,320
Bank overdraft			—		—		35,615		35,615

	￦		94,679,437		90,067,938		138,227,828		129,887,195

(*)

Excludes lease liabilities.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(3)	Fair value risk, continued

(ii)

Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount rates used for calculating fair value as of December 31, 2021 and 2022 are as follows:


Type	2021		2022
Derivatives		(-) 0.63% ~ 3.88%		0.60% ~ 7.93%
Borrowings and debt securities		(-) 0.30% ~ 4.38%		0.75% ~ 5.84%
Finance lease		0.00% ~ 16.83%		0.00% ~ 17.08%

(iii)

Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3: Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of December 31, 2021 and 2022 are as follows:


		2021
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	￦		273,826		—		161,281		435,107
Derivative assets			—		647,783		—		647,783
Financial assets at fair value through profit or loss			—		1,027,067		5,797		1,032,864

	￦		273,826		1,674,850		167,078		2,115,754

Financial liabilities at fair value
Derivative liabilities	￦		—		78,031		—		78,031


		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

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

45.	Risk Management, Continued

(3)	Fair value risk, continued

The fair value of financial assets (FVTPL and FVOCI) publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted financial assets (FVTPL and FVOCI) is calculated using the valuation results from an external pricing service in which weighted average borrowing rates of interest of evaluated companies are used as a discount rate. The fair value of derivatives is measured using valuation model which is determined at the present value of estimated future cash flows discounted at current market interest rate.

Changes of financial assets and liabilities which are classified as level 3 for the years ended December 31, 2021 and 2022 are as follows:


		2021
		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	￦		5,692		—		—		105			—			—			5,797
Financial assets at fair value through other comprehensive income
Unlisted securities			163,889		8,929		—		(12,335	)		(13	)		320			160,790
Debt securities			—		500		—		—			—			(9	)		491

		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

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

46.	Service Concession Arrangements

(i)

Significant terms and concession period of the arrangement

The Company has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Company provides electricity generated and 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 after building, rehabilitating, and operating the power plant for approximately 30 years (2018~2048) subsequent to the completion of plant construction.

(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, 2022 are as follows:


Type		Amounts
		In millions of won
Less than 1 year	￦		31,653
1 ~ 2 years			31,800
2 ~ 3 years			31,728
Over 3 years			548,400

	￦		643,581

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties

(1)	Related parties of the Company as of December 31, 2022 are as follows:


Type		Related party
Parent		Republic of Korea government

Subsidiaries (161 subsidiaries)		Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company, S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, KEPCO KPS Philippines Corp., KOSPO Chile SpA, PT. KOWEPO Sumsel Operation And Maintenance Services, Commerce and Industry Energy Co., Ltd., Gyeongju Wind Power Co., Ltd., California Power Holdings, LLC, EWP Renewable Corporation, Hee Mang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., KOEN Bylong Pty., Ltd., KOWEPO Bylong Pty., Ltd., KOSPO Bylong Pty., Ltd., EWP Bylong Pty., Ltd., KOWEPO Lao International, KOMIPO Bylong Pty., Ltd., Energy New Industry Specialized Investment Private Investment Trust., KEPCO US Inc., KEPCO Mangilao Holdings LLC, Mangilao Investment LLC, KEPCO Mangilao Solar, LLC, Jeju Hanlim Offshore Wind Co., Ltd., PT. Siborpa Eco Power, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd., Guam Ukudu Power LLC, K-SOLAR SHINAN Co., Ltd. (formerly, TS Energy No. 25 Co., Ltd.), KPS Partners Co., Ltd., KEPCO E&C Service Co., Ltd., Moha solar Co., Ltd., KHNP USA LLC, KOMIPO Vanphong Power Service LLC, Ogiri Solar Power Co., Ltd., BSK E-New Industry Fund X, Energy Innovation Fund I, KHNP Chile SpA, Yeong Yang Apollon Photovoltaic Co., Ltd., Yeong Yang Corporation Co., Ltd., SolarVader Co., Ltd., Yeong Yang Innovation Co., Ltd., Yeong Yang Horus Photovoltaic Co., Ltd., Yeong Yang Solar Management Co., Ltd., LSG Hydro Power Limited, KOEN Bio Co., Ltd., KOMIPO Energy Solution America, LLC, Elara Investment Holdings, LLC, Elara Equity Holdings, LLC, Elara Class B Holdings, LLC, Elara Class B Member, LLC, Elara Development Holdings, LLC, KOMIPO Development, LLC (formerly, Elara Development, LLC), Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., KOWEPO Europe B.V., CVS Equity Holdings, LLC, CVS Class B Holdings, LLC, CVS Development Holdings, LLC, CVS Development, LLC, CVS Class B Member, LLC, CVS Energy Holdings, LLC, Concho Valley Energy, LLC, Concho Valley Solar, LLC, Jeongam Wind Power Co., Ltd., Yeongdeok Sunrise Wind Power Co., Ltd., KHNP Spain, S.L., UI Carbon-Neutrality Fund, KA Power Limited, Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.), Digital Innovation Growth Fund, EWP Australia Pty., Ltd., Columboola Solar Farm Hold Co Pty., Ltd., J Wind First, LLC, KEPCO Holding Company, KEPCO for Power Company, KEPCO for Maintenance Company, KOSPO Trumbull LLC, Changjuk Wind Power Co., Ltd.

Associates (96 associates)		Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Taebaek Wind Power Co., Ltd., Taebaek Guinemi Wind Power Co., Ltd., Daeryun Power Co., Ltd., KNH Solar Co., Ltd., S-Power Co., Ltd., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Hansuwon KNP Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., Yaksu ESS Co., Ltd., PND Solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., Gwangbaek Solar Power Investment Co., Ltd., Go deok Clean Energy Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Goesan Solar park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., Kosture Co., Ltd., Taebaek Gadeoksan Wind Power Co., Ltd., Chuncheon Green Energy Co., Ltd., Yeomsubong Wind Power Co., Ltd., Yeongyang Wind Power Corporation II, Haeparang Energy Co., Ltd., Saemangeum Sebit Power Plant Co., Ltd., Boulder Solar III, LLC, PlatformN. Co., Ltd., PT. Cirebon Energi Prasarana, Future Convergence Technology Laboratory. Co., Ltd., SC E&G. Co,. Ltd., Wang San Engineering. Co., Ltd., ACE, Co., Ltd., Environment and Energy Co., Ltd., Green Radiation Co., Ltd., Santiago Solar Power SpA, Yanggu Floating Photovoltaic Power Plant Inc.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(1)	Related parties of the Company as of December 31, 2022 are as follows, continued:


Type		Related party
Joint ventures (105 joint ventures)		Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P., ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, Momentum, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co., Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Chile Solar JV SpA, Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., Horus Solar, S.A. de C.V., Recursos Solares PV de Mexico II, S.A. de C.V., Sunmex Renovables, S.A. de C.V., Stavro Holding II A.B., Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., Dayone Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco Co., Ltd., CAES, LLC, Hapcheon Floating Photovoltaic Power Plant Inc., Busan Industrial Solar Power Co., Ltd., Bitsolar Energy Co., Ltd., Naepo Green Energy Co., Ltd., Pulau Indah O&M Sdn. Bhd., Guadalupe Solar SpA, Omisan Wind Power Co., Ltd., Foresight Iberian Solar Group Holding, S.L., Yeongwol Eco Wind Co., Ltd., Gurae Resident Power Co., Ltd., Cheongju Eco Park Co., Ltd., Prime Swedish Holding AB, Enel X Midland Photovoltaic, LLC, Geumsungsan Wind Power Co., Ltd., KEPCO KPS CARABAO Corp., Goheung New Energy Co., Ltd., Gunsan Land Solar Co., Ltd., CapMan Lynx SCA, SICAR, International Offshore Power Transmission Holding Company Limited, Eumseong Eco Park Co., Ltd., Songsan Green Energy Co., Ltd., Changwon Nu-ri Energy Co., Ltd., Hasami Wind Farm Corporation, PungBack Wind Farm Corporation, Seobusambo highway photovoltaics Co., Ltd., Seungmun Green Energy, Pyeongchang Wind Power Co., Ltd., Trumbull Asset Management, LLC, S-Power Chile SpA

Other		Korea Development Bank

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(2)	Transactions between the Company and its subsidiaries are eliminated during the consolidation and are not disclosed in

notes.

(3)	Related party transactions for the years ended December 31, 2020, 2021 and 2022 are as follows:


			Sales and others
Company name	Transaction type		2020		2021		2022
			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Electricity sales	￦		7,757		19,923		8,942
Saemangeum Sebit Power Plant Co., Ltd.	Electricity sales			—		—		1,418
Korea Gas Corporation	Electricity sales			97,685		96,362		155,309
Daejung Offshore Wind Power Co., Ltd.	Electricity sales			32		46		46
Daegu Photovoltaic Co., Ltd.	Electricity sales			325		207		268
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Electricity sales			2		2		2
Korea Electric Power Industrial Development Co., Ltd.	Service			10,833		11,208		10,369
Goseong Green Power Co., Ltd.	Fuel sales			47,701		514,470		1,062,108
Gangneung Eco Power Co., Ltd.	Fuel sales			10,178		14,200		459,404
Shin Pyeongtaek Power Co., Ltd.	Electricity sales			20,791		23,501		27,486
Noeul Green Energy Co., Ltd.	Electricity sales			30		30		9,396
Samcheok Eco Materials Co., Ltd.	Electricity sales			700		620		546
YTN Co., Ltd.	Electricity sales			1,805		1,922		2,180
Busan Green Energy Co., Ltd.	Electricity sales			34		49		5,055
Gunsan Bio Energy Co., Ltd.	Electricity sales			102		20		—
Korea Electric Vehicle Charging Service (*2)	Electricity sales			1,956		3,039		3,686
Energy Infra Asset Management Co., Ltd.	Electricity sales			—		4,629		—
Gangwon Wind Power Co., Ltd.	Electricity sales			2,109		1,865		1,549
Gwangyang Green Energy Co., Ltd.	Electricity sales			23		486		1,848
Bigeum Resident Photovoltaic Power Co., Ltd.	Electricity sales			85		755		660
Hyundai Green Power Co., Ltd.	Electricity sales and design service			17,257		11,934		7,063
Korea Power Exchange	Service			25,919		39,796		16,596
Taebaek Wind Power Co., Ltd.	Service			226		44		861
Taebaek Guinemi Wind Power Co., Ltd.	Electricity sales			37		26		—
Pyeongchang Wind Power Co., Ltd.	Electricity sales			2,064		1,180		1,323
Daeryun Power Co., Ltd.	Electricity sales			1,947		1,944		2,016
Changjuk Wind Power Co., Ltd. (*)	Electricity sales			2,067		463		1,350
GS Donghae Electric Power Co., Ltd.	Electricity sales			31,557		21,127		5,238
KNH Solar Co., Ltd.	Electricity sales			16		14		13
S-Power Co., Ltd.	Service			6,682		5,229		4,588
Chuncheon Green Energy Co., Ltd.	Electricity sales			—		—		2
PND solar Co., Ltd.	Electricity sales			409		416		427
Hyundai Eco Energy Co., Ltd.	Electricity sales			167		187		277
YeongGwang Yaksu Wind Electric Co., Ltd.	Electricity sales			77		78		66
Taebaek Gadeoksan Wind Power Co., Ltd.	Electricity sales			—		295		1,952
Korea Energy Solutions Co., Ltd.	Electricity sales			7		2		2
ITR Co., Ltd.	Service			—		3		6
Structure test network Co., Ltd.	Service			—		5		7

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(3)	Related party transactions for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:

<Sales and Others>, continued


			Sales and others
Company name	Transaction type		2020		2021		2022
			In millions of won

<Associates>
Namjeongsusang Solar Power Operation Co., Ltd.	Electricity sales	￦		14		22		21
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Service			291		399		394
Bitgoel Eco Energy Co., Ltd.	Electricity sales			—		282		1,397
Jeju Gimnyeong Wind Power Co., Ltd.	Electricity sales			—		—		367
Seoroseoro Sunny Power Plant Co., Ltd.	Electricity sales			—		—		1
Muan Solar park Co., Ltd.	Electricity sales			57		232		950
YuDang Solar Co., Ltd.	Electricity sales			—		—		160
Anjwa Smart Farm & Solar City Co., Ltd.	Electricity sales			—		624		1,068
Daewon Green Energy Co., Ltd.	Electricity sales			—		155		185
Saemangeum Heemang Photovoltaic Co., Ltd.	Electricity sales			—		13		5,740
UD4M Co., Ltd.	Electricity sales			—		4		2
Dongbu Highway Solar Co., Ltd.	Electricity sales			—		5		8
Seobu Highway Solar Co., Ltd.	Electricity sales			—		8		8
SureDataLab Co., Ltd.	Electricity sales			—		1		1
Suwon New Power Co., Ltd.	Electricity sales			2,974		1,820		118
Hankook Electric Power Information Co., Ltd.	Electricity sales			—		1		—
Kosture Co., Ltd.	Electricity sales			—		1		5
PlatformN. Co., Ltd.	Others			—		—		14
Muan Sunshine Solar Power Plant Co., Ltd.	Electricity sales			30		52		17
Gangneung Sacheon Fuel Cell Co., Ltd.	Electricity sales			—		—		151
12 Associates (Overseas)	Electricity sales			66,755		125,723		548,507

<Joint ventures>
Seobusambo highway photovoltaics Co., Ltd.	Electricity sales			—		—		3
Naepo Green Energy Co., Ltd.	Electricity sales			217		467		761
Cheongna Energy Co., Ltd.	Others			13,791		16,469		39,802
Dayone Energy Co., Ltd.	Service			4,816		8,159		7,761
Daegu Green Power Co., Ltd.	Electricity sales			1,285		1,053		1,190
Prime Swedish Holding AB	Electricity sales			—		—		284
KAPES, Inc.	Commission			476		413		450
Honam Wind Power Co., Ltd.	Electricity sales			502		71		242
Jeongam Wind Power Co., Ltd.	Electricity sales and others			1,213		588		—
Korea Power Engineering Service Co., Ltd.	Service			203		339		268
Seokmun Energy Co., Ltd.	Service			1,932		1,701		1,685
Incheon New Power Co., Ltd.	Construction revenue			14		14		14
Chun-cheon Energy Co., Ltd.	Electricity sales			2,657		2,329		2,505
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales			1,788		1,836		1,898
Yeonggwang Wind Power Co., Ltd.	Electricity sales			793		818		871
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.) (*1)	Electricity sales			33		1,920		—
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Service			1,388		1,727		1,415

F-20

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(3)	Related party transactions for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:

<Sales and Others>, continued


			Sales and others
Company name	Transaction type		2020		2021		2022
			In millions of won
KW Nuclear Components Co., Ltd.	Service	￦		1,639		2,598		1,624
KEPCO-Uhde Inc.	Electricity sales			8		10		12
Busan Shinho Solar Power Co., Ltd.	Electricity sales			353		376		502
Goheung New Energy Co., Ltd.	Electricity sales			—		—		141
Gunsan Land Solar Co., Ltd.	Electricity sales			—		—		518
Daesan Green Energy Co., Ltd.	Electricity sales			703		523		394
Cheong-Song Noraesan Wind Power Co., Ltd.	Electricity sales			29		30		698
Chungsongmeon BongSan wind power Co., Ltd.	Electricity sales			—		1		1
Saemangeum Solar Power Co., Ltd.	Service			2,846		1,141		100
Dangjin Eco Power Co., Ltd.	Electricity sales			33		32		32
Energyco Co., Ltd.	Electricity sales			—		1		463
Hapcheon Floating Photovoltaic Power Plant Inc.	Electricity sales			—		—		544
Busan Industrial Solar Power Co., Ltd.	Electricity sales			—		9		14
Bitsolar Energy Co., Ltd.	Electricity sales			42		296		498
Omisan Wind Power Co., Ltd.	Electricity sales			—		1		1
Haemodum Solar Co., Ltd.	Electricity sales			4		6		42
Yeongam Solar Power Co., Ltd.	Electricity sales			165		339		379
Solaseado Solar Power Co., Ltd.	Electricity sales			66		2,890		1,851
Cheongju Eco Park Co., Ltd.	Electricity sales			—		—		204
Enel X Midland Photovoltaic, LLC	Electricity sales			—		—		12
Eumseong Eco Park Co., Ltd.	Electricity sales			—		—		2
Geumsungsan Wind Power Co., Ltd.	Electricity sales			—		—		7
37 Joint ventures (Overseas)	Electricity sales			831,596		773,291		606,513

<Others>
Korea Development Bank	Electricity sales			4,248		4,177		4,134
	Interest income			3,461		756		2,222

F-20

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(3)	Related party transactions for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:


			Purchase and others
Company name	Transaction type		2020		2021		2022
			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Electricity sales	￦		552,692		750,148		2,244,332
Saemangeum Sebit Power Plant Co., Ltd.	Electricity sales			—		—		23,159
Korea Gas Corporation	Fuel purchase			3,270,972		5,646,713		11,996,402
Daegu Photovoltaic Co., Ltd.	Electricity sales			3,313		3,532		4,744
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Electricity sales			370		393		563
Korea Electric Power Industrial Development Co., Ltd.	Service			212,366		241,925		251,468
Goseong Green Power Co., Ltd.	Electricity sales			—		987,540		1,905,502
Shin Pyeongtaek Power Co., Ltd.	Electricity sales			520,737		653,306		957,294
Noeul Green Energy Co., Ltd.	Electricity sales			10,634		10,014		14,176
Samcheok Eco Materials Co., Ltd.	Electricity sales			10,713		13,612		12,019
YTN Co., Ltd.	Electricity sales			353		388		304
Busan Green Energy Co., Ltd.	Electricity sales			18,678		18,996		26,219
Korea Electric Vehicle Charging Service (*2)	Electricity sales			581		393		—
Energy Infra Asset Management Co., Ltd.	Service			—		2,657		2,779
Yaksu ESS Co., Ltd.	Electricity sales			217		1,715		851
Gangwon Wind Power Co., Ltd.	Electricity sales			23,350		19,623		40,130
Goesan Solar park Co., Ltd.	Electricity sales			—		6,209		7,642
Korea Power Exchange	Service			87,361		86,716		93,817
Taebaek Wind Power Co., Ltd.	Service and REC			4,003		5,930		7,442
Taebaek Guinemi Wind Power Co., Ltd.	Electricity sales			5,023		5,910		6,793
Pyeongchang Wind Power Co., Ltd.	Design service and others			3,969		4,099		3,884
Daeryun Power Co., Ltd.	Electricity sales			99,523		157,234		428,534
Changjuk Wind Power Co., Ltd. (*1)	Electricity sales			6,084		6,213		9,027
GS Donghae Electric Power Co., Ltd.	Electricity sales			660,351		760,377		1,035,263
KNH Solar Co., Ltd.	Electricity sales			3,564		3,222		4,348
S-Power Co., Ltd.	Service			293,515		608,530		1,091,741
PND Solar Co., Ltd.	Electricity sales			5,234		5,502		6,173
Hyundai Eco Energy Co., Ltd.	Electricity sales			17,777		25,762		29,209
YeongGwang Yaksu Wind Electric Co., Ltd.	Electricity sales			9,151		11,729		7,382
Taebaek Gadeoksan Wind Power Co., Ltd.	Electricity sales			—		16,360		25,880
Korea Energy Solutions Co., Ltd.	Electricity sales			—		—		102
Green Energy Electricity Generation Co., Ltd.	Electricity sales			—		1,238		2,962
Namjeongsusang Solar Power Operation Co., Ltd.	Electricity sales			—		14,286		9,491
Bitgoel Eco Energy Co., Ltd.	Service and others			—		—		930
Jeju Gimnyeong Wind Power Co., Ltd.	Electricity sales			—		12,833		12,364
Seoroseoro Sunny Power Plant Co., Ltd.	REC and others			—		217		1,138
Muan Solar Park Co., Ltd.	REC and others			—		31,017		17,052
YuDang Solar Co., Ltd.	REC and others			—		3,495		1,915
Anjwa Smart Farm & Solar City Co., Ltd.	Electricity sales			—		24,601		16,942
Daewon Green Energy Co., Ltd.	Others			—		—		42,651
Saemangeum Heemang Photovoltaic Co., Ltd.	Electricity sales			—		—		1,039
G.GURU Co., Ltd.	Electricity sales			—		—		452
UD4M Co., Ltd.	Electricity sales			—		—		313
Dongbu Highway Solar Co., Ltd.	Electricity sales			—		2,605		3,516
Seobu Highway Solar Co., Ltd.	Electricity sales			—		2,936		3,452
Gwangbaek Solar Power Investment Co., Ltd.	Electricity sales			373		742		602
PlatformN. Co., Ltd.	Others			—		—		475

F-20

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(3)	Related party transactions for the years ended December 31, 2020, 2021 and 2022 are as follows, continued:

<Purchase and Others>, continued


			Purchase and others
Company name	Transaction type		2020		2021		2022
			In millions of won
<Associates>
Muan Sunshine Solar Power Plant Co., Ltd.	Electricity sales	￦		—		15,900		19,514
12 Associates (Overseas)	Electricity sales			—		502		101,790

<Joint ventures>
Seobusambo highway photovoltaics Co., Ltd.	Electricity sales			—		—		103
Cheongna Energy Co., Ltd.	Service			66		57		80
Dayone Energy Co., Ltd.	Service			1,120		5,409		13,872
Daegu Green Power Co., Ltd.	Electricity sales			215,224		289,052		508,601
KAPES, Inc.	Commission			219,673		64,140		9,306
Honam Wind Power Co., Ltd.	Electricity sales			4,382		4,807		7,662
Jeongam Wind Power Co., Ltd.	Electricity sales			5,982		3,145		—
Korea Power Engineering Service Co., Ltd.	Service			1,594		1,315		830
Seokmun Energy Co., Ltd.	Service			33,164		44,315		60,799
Chun-cheon Energy Co., Ltd.	Electricity sales			222,069		327,536		585,689
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales			11,232		9,471		13,990
Yeonggwang Wind Power Co., Ltd.	Electricity sales			24,103		21,004		31,221
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.) (*1)	Electricity sales			3,848		5,852		—
KW Nuclear Components Co., Ltd.	Service			—		96		9,504
Busan Shinho Solar Power Co., Ltd.	Electricity sales			7,296		7,895		10,601
Global Trade Of Power System Co., Ltd.	Service			337		323		715
Expressway Solar-light Power Generation Co., Ltd.	Electricity sales			2,472		3,146		4,016
Gunsan Land Solar Co., Ltd.	Electricity sales			—		—		533
Daesan Green Energy Co., Ltd.	Electricity sales			104,854		146,776		129,736
Cheong-Song Noraesan Wind Power Co., Ltd.	Electricity sales			—		—		980
Saemangeum Solar Power Co., Ltd.	Electricity sales			—		5		1
Dangjin Eco Power Co., Ltd.	Electricity sales			3,953		4,139		5,696
Energyco Co., Ltd.	Electricity sales			—		—		7,898
Hapcheon Floating Photovoltaic Power Plant Inc.	Service and REC			—		—		2,526
Busan Industrial Solar Power Co., Ltd.	Electricity sales			19		2,815		4,575
Bitsolar Energy Co., Ltd.	Electricity sales			—		5,703		13,030
Omisan Wind Power Co., Ltd.	Electricity sales			—		7		—
Haemodum Solar Co., Ltd.	Electricity sales			967		1,625		2,168
Yeongam Solar Power Co., Ltd.	Electricity sales			32,208		47,805		44,745
Samsu Wind Power Co., Ltd.	Electricity sales			—		2,800		10,605
Solaseado Solar Power Co., Ltd.	Electricity sales			28,516		31,031		28,698
Cheongju Eco Park Co., Ltd.	Electricity sales			—		—		94,409
Enel X Midland Photovoltaic, LLC	Electricity sales			—		—		1,871
37 Joint ventures (Overseas)	Electricity sales			14,767		54,135		16,859

<Others>
Korea Development Bank	Interest expense			3,872		2,756		4,208
	Dividends paid			17		256,862		12

(*1)	Reclassified from a joint venture to a subsidiary during the year ended December 31, 2022. Transactions are made before the reclassification.

(*2)	The Company has disposed of shares of Korea Electric Vehicle Charging Service during the year ended December 31, 2022, and it is not a related party to the Group as of December 31, 2022.

F-20

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of December 31, 2021 and 2022 are as follows:


			Receivables				Payables
Company name	Type		2021		2022		2021		2022

			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Trade receivables	￦		6,282		592		—		—
	Non-trade receivables and others			493		270		—		—
	Trade payables			—		—		114,613		293,256
Saemangeum Sebit Power Plant Co., Ltd.	Non-trade receivables and others			—		653		—		—
Korea Gas Corporation (*1)	Trade receivables			10,015		12,415		—		—
	Non-trade receivables and others			187		54,232		—		—
	Trade payables			—		—		800,509		1,882,607
	Non-trade payables and others			—		—		759		1,294
Daejung Offshore Wind Power Co., Ltd.	Non-trade receivables and others			77		123		—		—
Daegu Photovoltaic Co., Ltd.	Trade payables			—		—		115		135
	Non-trade payables and others			—		—		—		2
Korea Electric Power Industrial Development Co., Ltd.	Trade receivables			269		164		—		—
	Non-trade receivables and others			15		2		—		—
	Trade payables			—		—		873		150
	Non-trade payables and others			—		—		5,880		9,588
Goseong Green Power Co., Ltd.	Trade receivables			495		76,254		—		—
	Non-trade receivables and others			76,855		14		—		—
	Trade payables			—		—		218,627		182,095
	Non-trade payables and others			—		—		59,987		52,515
Gangneung Eco Power Co., Ltd.	Trade receivables			826		19,364		—		—
	Non-trade receivables and others			465		478		—		—
	Non-trade payables and others			—		—		97		94
Shin Pyeongtaek Power Co., Ltd.	Trade receivables			1,788		7,375		—		—
	Non-trade receivables and others			3,116		1,068		—		—
	Trade payables			—		—		79,828		109,274
	Non-trade payables and others			—		—		99		101
Noeul Green Energy Co., Ltd.	Trade receivables			3		3		—		—
	Non-trade receivables and others			1,169		9,365		—		—
	Non-trade payables and others			—		—		—		2,468
Samcheok Eco Materials Co., Ltd.	Trade receivables			52		46		—		—
YTN Co., Ltd.	Trade receivables			99		112		—		—
Busan Green Energy Co., Ltd.	Trade receivables			1		1		—		—
	Non-trade receivables and others			20,658		26,681		—		—
	Non-trade payables and others			—		—		—		4,415
Gunsan Bio Energy Co., Ltd.	Non-trade receivables and others			11,728		11,728		—		—
Korea Electric Vehicle Charging Service (*4)	Trade receivables			193		—		—		—
	Non-trade receivables and others			120		—		—		—
Yaksu ESS Co., Ltd.	Trade payables			—		—		1,374		—
Gangwon Wind Power Co., Ltd.	Trade receivables			8		6		—		—
	Trade payables			—		—		4,293		5,197
Gwangyang Green Energy Co., Ltd.	Non-trade receivables and others			532		1,436		—		—
Bigeum Resident Photovoltaic Power Co., Ltd.	Trade receivables			922		343		—		—
	Non-trade receivables and others			—		516		—		—
Goesan Solar park Co., Ltd.	Trade payables			—		—		73		346
Hyundai Green Power Co., Ltd.	Trade receivables			229		839		—		—
Korea Power Exchange	Trade receivables			627		223		—		—
	Non-trade receivables and others			1,300		—		—		—
	Non-trade payables and others			—		—		2,189		2,405
Taebaek Wind Power Co., Ltd.	Trade payables			—		—		560		680
	Non-trade payables and others			—		—		262		178
Taebaek Guinemi Wind Power Co., Ltd.	Trade payables			—		—		670		885
Pyeongchang Wind Power Co., Ltd.	Trade receivables			4		3		—		—
	Non-trade payables and others			—		—		—		211
Daeryun Power Co., Ltd.	Trade receivables			213		195		—		—
	Trade payables			—		—		21,362		55,725
Changjuk Wind Power Co., Ltd. (*3)	Trade payables			—		—		724		—
	Non-trade payables and others			—		—		295		—

F-2

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of December 31, 2021 and 2022 are as follows, continued:


			Receivables				Payables
Company name	Type		2021		2022		2021		2022

			In millions of won
<Associates>
GS Donghae Electric Power Co., Ltd. (*2)	Trade receivables	￦		383		872		—		—
	Non-trade receivables and others			272		1,558		—		—
	Trade payables			—		—		113,529		72,947
	Non-trade payables and others			—		—		17		14,565
KNH Solar Co., Ltd.	Trade receivables			1		1		—		—
S-Power Co., Ltd.	Trade receivables			82		77		—		—
	Non-trade receivables and others			48		44		—		—
	Trade payables			—		—		91,277		135,504
	Non-trade payables and others			—		—		—		11
PND solar Co., Ltd.	Trade payables			—		—		—		210
Hyundai Eco Energy Co., Ltd.	Trade receivables			19		22		—		—
	Trade payables			—		—		732		738
YeongGwang Yaksu Wind Electric Co., Ltd.	Trade receivables			6		7		—		—
	Trade payables			—		—		—		589
	Non-trade payables and others			—		—		—		2,050
Taebaek Gadeoksan Wind Power Co., Ltd.	Non-trade receivables and others			119		97		—		—
	Trade payables			—		—		8,397		12,739
	Non-trade payables and others			—		—		1,571		5
Korea Energy Solutions Co., Ltd.	Non-trade payables and others			—		—		—		94
Namjeongsusang Solar Power Operation Co., Ltd.	Trade receivables			—		2		—		—
Bitgoel Eco Energy Co., Ltd.	Non-trade receivables and others			27		6		—		—
	Non-trade payables and others			—		—		—		1,023
Jeju Gimnyeong Wind Power Co., Ltd .	Non-trade receivables and others			—		130		—		—
	Trade payables			—		—		885		1,758
Muan Solar park Co., Ltd.	Trade receivables			—		25		—		—
	Non-trade receivables and others			23		9		—		—
Anjwa Smart Farm & Solar City Co., Ltd.	Non-trade payables and others			—		—		—		921
Daewon Green Energy Co., Ltd.	Trade receivables			—		1		—		—
	Non-trade receivables and others			94		—		—		—
	Trade payables			—		—		—		5,485
Saemangeum Heemang Photovoltaic Co., Ltd.	Non-trade receivables and others			—		3,435		—		—
	Non-trade payables and others			—		—		—		1
Dongbu Highway Solar Co., Ltd.	Trade receivables			1		1		—		—
	Trade payables			—		—		98		2
	Non-trade payables and others			—		—		90		2
Seobu Highway Solar Co., Ltd.	Trade receivables			—		1		—		—
	Trade payables			—		—		177		8
	Non-trade payables and others			—		—		105		3
Gwangbaek Solar Power Investment Co., Ltd.	Non-trade payables and others			—		—		—		61
Suwon New Power Co., Ltd.	Non-trade receivables and others			1,198		1,280		—		—
Tronix Co., Ltd.	Non-trade receivables and others			—		1		—		—
KOSTURE Co., Ltd.	Trade receivables			1		6		—		—
Muan Sunshine Solar Power Plant Co., Ltd.	Trade payables			—		—		1,748		3,076
	Non-trade payables and others			—		—		—		1,265
PlatformN. Co., Ltd.	Non-trade payables and others			—		—		—		232
8 Associates (Overseas)	Trade receivables			—		93		—		—
	Non-trade receivables and others			3,196		49,409		—		—
	Non-trade payables and others			—		—		502		502
<Joint ventures>
Naepo Green Energy Co., Ltd.	Trade receivables			42		169		—		—
	Non-trade payables and others			—		—		—		3
Dayone Energy Co., Ltd.	Trade receivables			52		79		—		—
	Non-trade receivables and others			13,297		10,218		—		—
	Trade payables			—		—		1,009		1,027
	Non-trade payables and others			—		—		11,306		9,119
Daegu Green Power Co., Ltd.	Trade receivables			71		53		—		—
	Non-trade receivables and others			55		56		—		—
	Trade payables			—		—		35,766		66,715

F-2

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of December 31, 2021 and 2022 are as follows, continued:


			Receivables				Payables
Company name	Type		2021		2022		2021		2022

			In millions of won
<Joint ventures>
KAPES, Inc.	Trade receivables	￦		2		2		—		—
	Non-trade payables and others			—		—		2,121		106
Honam Wind Power Co., Ltd.	Trade payables			—		—		575		515
Korea Power Engineering Service Co., Ltd.	Non-trade receivables and others			48		47		—		—
	Non-trade payables and others			—		—		—		77
Seokmun Energy Co., Ltd.	Trade receivables			34		67		—		—
	Non-trade receivables and others			149		113		—		—
	Trade payables			—		—		7,941		7,000
Chun-cheon Energy Co., Ltd.	Trade receivables			126		124		—		—
	Non-trade receivables and others			167		165		—		—
	Trade payables			—		—		41,410		79,117
Yeonggwangbaeksu Wind Power Co., Ltd.	Trade receivables			6		8		—		—
	Non-trade receivables and others			53		166		—		—
	Trade payables			—		—		1,099		1,076
Cheongna Energy Co., Ltd.	Trade receivables			4,164		17,324		—		—
	Non-trade receivables and others			1,350		1,654		—		—
	Non-trade payables and others			—		—		1		1
Yeonggwang Wind Power Co., Ltd.	Trade receivables			10		12		—		—
	Non-trade receivables and others			59		62		—		—
	Trade payables			—		—		730		2,251
Western Power Changgi Solar Co., Ltd. (formerly, Sam-Yang Photovoltaic Power Co., Ltd.) (*3)	Trade receivables			5		—		—		—
KW Nuclear Components Co., Ltd.	Trade receivables			—		4		—		—
	Non-trade receivables and others			—		18		—		—
KEPCO-Uhde Inc.	Non-trade payables and others			—		—		10		10
Busan Shinho Solar Power Co., Ltd.	Trade receivables			2		3		—		—
	Trade payables			—		—		281		304
Global Trade Of Power System Co., Ltd.	Non-trade payables and others			—		—		7		—
Expressway Solar-light Power Generation Co., Ltd.	Trade payables			—		—		102		166
Gunsan Land Solar Co., Ltd.	Non-trade receivables and others			—		138		—		—
Daesan Green Energy Co., Ltd.	Trade receivables			11		18		—		—
	Non-trade receivables and others			120		218		—		—
	Trade payables			—		—		5,120		4,946
Cheong-Song Noraesan Wind Power Co., Ltd.	Trade receivables			2		2		—		—
Saemangeum Solar Power Co., Ltd.	Non-trade receivables and others			4,268		4,368		—		—
Dangjin Eco Power Co., Ltd.	Trade receivables			3		3		—		—
	Trade payables			—		—		276		222
	Non-trade payables and others			—		—		—		105
Hapcheon Floating Photovoltaic Power Plant Inc.	Trade receivables			—		9		—		—
Busan Industrial Solar Power Co., Ltd.	Trade receivables			1		2		—		—
	Trade payables			—		—		54		—
	Non-trade receivables and others			—		—		24		—
Bitsolar Energy Co., Ltd.	Non-trade receivables and others			7		222		—		—
	Trade payables			—		—		—		201
	Non-trade payables and others			—		—		54		—
Haemodum Solar Co., Ltd.	Trade receivables			1		1		—		—
Yeongam Solar Power Co., Ltd.	Trade receivables			29		44		—		—
	Trade payables			—		—		3,324		3,655
Samsu Wind Power Co., Ltd.	Trade payables			—		—		1,300		1,303
Solaseado Solar Power Co., Ltd.	Non-trade receivables and others			—		23		—		—
	Non-trade payables and others			—		—		—		2,911
Cheongju Eco Park Co., Ltd.	Trade payables			—		—		—		7,994
Enel X Midland Photovoltaic, LLC	Trade receivables			—		1		—		—
	Trade payables			—		—		—		3
Geumsungsan Wind Power Co., Ltd.	Trade receivables			—		3		—		—
	Non-trade payables and others			—		—		—		1
22 Joint ventures (Overseas)	Trade receivables			84,150		73,805		—		—
	Non-trade receivables and others			26,060		71,661		—		—
	Non-trade payables and others			—		—		22,050		117,754

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(4)	Receivables and payables arising from related party transactions as of December 31, 2021 and 2022 are as follows, continued:


			Receivables				Payables
Company name	Type		2021		2022		2021		2022

			In millions of won
<Others>
Korea Development Bank	Accrued interest income	￦		154		5		—		—
	Non-trade receivables and others			420,732		30,836		—		—
	Non-trade payables and others			—		—		21,172		101
	Derivatives			59,139		67,662		—		3,759

(*1)

The balance due to the fuel swap with Korea Midland Power Co., Ltd. is included. The total transaction amount is ￦514,405 million on loans and ￦460,903 million on bororrowings.

(*2)

The balance due to the fuel swap with Korea Western Power Co., Ltd. and Korea East-West Power Co., Ltd. is included. The total transaction amount is ￦5,590 million on loans and ￦20,113 million on bororrowings.

(*3)

Reclassified from a joint venture to a subsidiary during the year ended December 31, 2022. Transactions are made before the reclassification.

(*4)

The Company has disposed of shares of Korea Electric Vehicle Charging Service during the year ended December 31, 2022, and it is not a related party to the Group as of December 31, 2022.

F-2

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(5)	Loans and others arising from related party transactions as of December 31, 2021 and 2022 are as follows:


Type	Company name		Beginning balance			Loans			Collection			Others			Ending balance

			In millions of won
Associates	KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd.	￦		29,481			104			—			1,888			31,473
	(Allowance for doubtful accounts)			(8,241	)		—			—			(2,510	)		(10,751	)
Associates	Nepal Water & Energy Development Company Private Limited			—			19,914			—			—			19,914
Associates	Xe-Pian Xe-Namnoy Power Co., Ltd.			21,456			—			—			1,480			22,936
Associates	PT Wampu Electric Power			13,000			—			(5,233	)		1,404			9,171
Associates	PT Cirebon Energi Prasarana			—			28,100			—			1,469			29,569
Associates	Gunsan Bio Energy Co., Ltd.			12,396			—			—			—			12,396
	(Allowance for doubtful accounts)			(12,396	)		—			—			—			(12,396	)
Associates	Bigeum Resident Photovoltaic Power Co., Ltd.			11,212			—			—			—			11,212
Associates	Daejung Offshore Wind Power Co., Ltd.			1,000			—			—			—			1,000
Associates	Bitgoel Eco Energy Co., Ltd.			19,349			16,151			(710	)		—			34,790
Associates	Saemangeum Sebit Power Plant Co., Ltd			—			37,249			—			—			37,249
Joint ventures	Solaseado Solar Power Co., Ltd.			35,000			—			—			—			35,000
Joint ventures	Recursos Solares PV de Mexico II, S.A. de C.V.			6,134			1,899			—			424			8,457
Joint ventures	Horus Solar, S.A. de C.V.			16,514			1,695			—			1,078			19,287
Joint ventures	Sunmex Renovables, S.A. de C.V.			13,571			1,913			—			899			16,383
Joint ventures	Kelar S.A.			43,167			—			—			798			43,965
Joint ventures	DE Energia SpA			6,791			—			—			469			7,260
Joint ventures	Daehan Wind Power PSC			13,674			—			—			944			14,618
Joint ventures	PT. Tanjung Power Indonesia			1,090			—			(1,114	)		24			—
Joint ventures	Bitsolar Energy Co., Ltd.			3,165			—			—			—			3,165
Joint ventures	Daesan Green Energy Co., Ltd.			—			3,514			—			—			3,514
Joint ventures	Nghi Son 2 Power LLC			—			185,306			—			1,429			186,735
Joint ventures	Pulau Indah Power Plant Sdn. Bhd.			—			10,475			—			(268	)		10,207
Joint ventures	Guadalupe Solar SpA			3,360			—			(253	)		237			3,344
Joint ventures	Foresight Iberian Solar Group Holding, S.L.			59,333			—			—			1,969			61,302
Joint ventures	Capman Lynx SCA, SICAR			29,770			—			—			1,858			31,628
	(Allowance for doubtful accounts)			—			(4,467	)		—			—			(4,467	)
Joint ventures	S-Power Chile SpA			—			253			—			—			253

		￦		318,826			302,106			(7,310	)		13,592			627,214

F-2

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(6)	Borrowings arising from related party transactions as of December 31, 2021 and 2022 are as follows:


Related parties	Type		Beginning balance		Borrowings		Repayment			Others			Ending balance

			In millions of won
Korea Development Bank	Facility	￦		98,020		61,092		(64,875	)		2,347			96,584
	Others			2,509		—		(376	)		—			2,133
	Operating funds			184,300		164,252		(285,961	)		(158	)		62,433
	Syndicated Loans			14,530		—		(1,040	)		(1,035	)		12,455
	EBL and others			53,965		76,878		(85,010	)		3,059			48,892

		￦		353,324		302,222		(437,262	)		4,213			222,497

F-21

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(7)	Guarantees provided to related parties as of December 31, 2022 are as follows:


Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Electric Power Corporation	Shuweihat Asia Operation & Maintenance Company	Performance guarantees		USD 11,000	Shuweihat Asia Power Investment B.V.
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others		USD 1,387	Rabigh Electricity Company
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees		USD 70,000	SMBC Ho Chi Minh and others
Korea Electric Power Corporation	Barakah One Company	Debt guarantees		USD 1,223,355	Export-Import Bank of Korea and others
		Performance guarantees and others		USD 4,197,287
Korea Electric Power Corporation	RE Holiday Holdings LLC	Performance guarantees(*9)		USD 222,077	EFS Renewables Holdings, LLC, CA-CIB and others
Korea Electric Power Corporation	RE Pioneer Holdings LLC	Performance guarantees		USD 106,873	EFS Renewables Holdings, LLC
Korea Electric Power Corporation	RE Barren Ridge 1 Holdings LLC	Performance guarantees(*9)		USD 68,838	Firstar Development, LLC
Korea Electric Power Corporation	Rabigh Electricity Company	Performance guarantees		SAR 1,509	Hana Bank
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees		USD 100,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company	Performance guarantees		USD 16,800	Shinhan Bank
Korea Electric Power Corporation	Horus Solar, S.A. de C.V.	Other performance guarantees		MXN 16,413	CENACE and others
Korea Electric Power Corporation	Recursos Solares PV de Mexico II, S.A. de C.V.	Other performance guarantees		MXN 1,518	SEMARNAT
Korea Electric Power Corporation	Recursos Solares PV de Mexico II, S.A. de C.V.	Other performance guarantees		USD 393	CFE Transmission
Korea Electric Power Corporation	Sunmex Renovables, S.A. de C.V.	Other performance guarantees		USD 9,078	CENACE
Korea Electric Power Corporation	Sunmex Renovables, S.A. de C.V.	Other performance guarantees		MXN 3,666	SEMARNAT
Korea Electric Power Corporation	International Offshore Power Transmission Holding Company Limited	Performance guarantees		USD 150,000	Mizuho Bank
		Other performance guarantees		USD 7,000	Credit Agricole
Korea Electric Power Corporation	Pulau Indah Power Plant Sdn. Bhd.(*11)	Collateralized money invested		KRW 13,210	Malaysian Trustee Berhad
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested		KRW 10,758	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Xe-Pian Xe-Namnoy Power Co., Ltd.	Collateralized money invested		KRW 115,584	Krung Thai Bank
		Impounding bonus guarantees		USD 5,000	SK E&C
Korea Western Power Co., Ltd.	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others		SAR 11,200	National Bank of Kuwait
Korea Western Power Co., Ltd.	Daegu Photovoltaic Co., Ltd.	Collateralized money invested		KRW 2,849	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested(*5)		KRW 52,476	Kookmin Bank and others
		Debt guarantees		KRW 20,300	BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested		KRW 3,597	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested		KRW 278	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested		KRW 133,823	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Haemodum Solar Co., Ltd.	Collateralized money invested		KRW 3,367	Nonghyup Bank
Korea Western Power Co., Ltd.	Muan Solar Park Co., Ltd.	Collateralized money invested		KRW 7,838	IBK and others
Korea Western Power Co., Ltd.	Anjwa Smart Farm & Solar City Co., Ltd.	Collateralized money invested		KRW 8,662	Hana Bank and others
Korea Western Power Co., Ltd.	Seoroseoro Sunny Power Plant Co., Ltd.	Collateralized money invested		KRW 859	Hana Bank and others
Korea Western Power Co., Ltd.	YuDang Solar Co., Ltd.	Collateralized money invested		KRW 586	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Hapcheon Floating Photovoltaic Power Plant Inc.	Collateralized money invested		KRW 8,471	Nonghyup Bank and others
Korea Western Power Co., Ltd.	Yeongwol Eco Wind Co., Ltd.	Collateralized money invested		KRW 3,155	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Collateralized money invested		KRW 391	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd	Gunsan Land Solar Co., Ltd.	Collateralized money invested		KRW 27,544	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd	Seobusambo highway photovoltaics Co., Ltd.	Collateralized money invested		KRW 3,067	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd	Eumseong Eco Park Co., Ltd.	Collateralized money invested		KRW 5,557	Kyobo Life Insurance Co., Ltd. and others
		Guarantees for supplemental funding(*1)		—

F-21

Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(7)	Guarantees provided to related parties as of December 31, 2022 are as follows, continued:


Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Western Power Co., Ltd	PungBack Wind Farm Corporation	Collateralized money invested		KRW 6,743	Hanwha Life Insurance Co., Ltd and others
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested		KRW 6,719	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested		KRW 17,336	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested		KRW 32,044	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		KRW 90,800
Korea East-West Power Co., Ltd.	Honam Wind Power Co., Ltd.	Collateralized money invested		KRW 4,819	Shinhan Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested		KRW 260,145	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested		KRW 3,151	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested		KRW 20,713	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested		KRW 19,218	IBK
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested		KRW 20,040	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Other guarantees		USD 3,150	PT. Adaro Indonesia
		Guarantees for supplemental funding(*1)		—	Sumitomo mitsui banking and others
		Collateralized money invested		KRW 92,907	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees		USD 14,400	Credit Agricole Corporate & Investment Bank Seoul and others
		Collateralized money invested		KRW 46,437	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested		KRW 9,536	Mirae Asset Daewoo Co., Ltd. and others
		Collateralized loans		USD 5,728	Mirae Asset Daewoo Co., Ltd. and others
		Payment guarantees(*7)		USD 943	Hana Bank
Korea East-West Power Co., Ltd.	Bitsolar Energy Co., Ltd.	Collateralized money invested		KRW 352	Mirae Asset Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	Cheongju Eco Park Co., Ltd.	Collateralized money invested		KRW 10,490	Kyobo Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	Busan Industrial Solar Power Co., Ltd.	Collateralized money invested		KRW 1,168	Shinhan Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Yangyang Wind Power Co., Ltd.	Collateralized money invested		KRW 10,864	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Daewon Green Energy Co., Ltd.	Collateralized money invested		KRW 4,485	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Goheung New Energy Co., Ltd.	Collateralized money invested		KRW 3,615	Woori Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Seungmun Green Energy	Collateralized money invested		KRW 9,055	Hana Bank and others
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested		KRW 2,883	Shinhan Bank and others
		Performance guarantees and guarantees for supplemental funding(*1)		—
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested		KRW 26,727	Korea Development Bank and others
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested		KRW 29,360	Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Kelar S.A.	Performance guarantees		USD 54,282	Hana Bank, MUFG
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Performance guarantees		USD 1,800	Shinhan Bank
		Payment guarantees(*6)		USD 1,900	Hana Bank
		Collateralized money invested		KRW 13,923	Standard Chartered
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested		KRW 14,464	Woori Bank and Shinhan Bank and others
		Performance guarantees		—	Woori Bank and Shinhan Bank and others
Korea Southern Power Co., Ltd.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested		KRW 13,049	IBK
Korea Southern Power Co., Ltd.	Samcheok Eco Materials Co., Ltd.	Payment guarantees(*2)		—	SEM Investment Co., Ltd.

F-21

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(7)	Guarantees provided to related parties as of December 31, 2022 are as follows, continued:


Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Southern Power Co., Ltd.	Solaseado Solar Power Co., Ltd.	Collateralized money invested		KRW 12,088	Kookmin Bank and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	Collateralized money invested(8)		—	IBK and others
		Guarantees for supplemental funding(*1)		KRW 30,000
		Guarantees for other supplemental funding and performance guarantees(*1)		—
Korea Southern Power Co., Ltd.	Omisan Wind Power Co., Ltd.	Collateralized money invested		KRW 10,411	Shinhan Bank and others
		Guarantees for supplemental funding and performance guarantees(*1)		—
Korea Southern Power Co., Ltd.	Geumsungsan Wind Power Co., Ltd.	Collateralized money invested		KRW 3,493	Kookmin Bank
		Guarantees for supplemental funding(*1)		—
KOSPO Chile SpA	Kelar S.A.	Collateralized money invested		KRW 117,137	Export-Import Bank of Korea and others
KOSPO Chile SpA	Chester Solar I SpA	Collateralized money invested		KRW 1,314	IBK
KOSPO Chile SpA	Chester Solar IV SpA	Collateralized money invested		KRW 181	IBK
KOSPO Chile SpA	Chester Solar V SpA	Collateralized money invested		KRW 156	IBK
KOSPO Chile SpA	Diego de Almagro Solar SpA	Collateralized money invested		KRW 540	IBK
KOSPO Chile SpA	Laurel SpA	Collateralized money invested		KRW 554	IBK
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric Co., Ltd.	Collateralized money invested		KRW 156	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested		KRW 119,791	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees		USD 4,785	Mizuho Bank
Korea Midland Power Co., Ltd.	PT Wampu Electric Power	Debt guarantees		USD 4,401	SMBC
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Collateralized money invested		KRW 1,571	IBK
		Guarantees for supplemental funding and others(*1)		—	IBK and others
Korea Midland Power Co., Ltd.	Yaksu ESS Co., Ltd.	Collateralized money invested		KRW 486	IBK
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested		KRW 373	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested		KRW 5,133	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested		KRW 2,562	IBK
Korea Midland Power Co., Ltd.	Goesan Solar park Co., Ltd.	Collateralized money invested		KRW 2,591	IBK
Korea Midland Power Co., Ltd.	Bitgoel Eco Energy Co., Ltd.	Collateralized money invested		KRW 5,292	IBK and others
		Guarantees for supplemental funding(*1)		—
Korea Midland Power Co., Ltd.	Energyco Co., Ltd.	Collateralized money invested Debt guarantees		KRW 2,190 KRW 2,746	Nonghyup Bank Shinhan Bank
Korea Midland Power Co., Ltd.	Jeju Gimnyeong Wind Power Co., Ltd.	Collateralized money invested		KRW 872	Nonghyup Bank
Korea Midland Power Co., Ltd.	Dongbu Highway Solar Co., Ltd.	Collateralized money invested		KRW 352	Nonghyup Bank
Korea Midland Power Co., Ltd.	Seobu Highway Solar Co., Ltd.	Collateralized money invested		KRW 316	Nonghyup Bank
Korea Midland Power Co., Ltd.	Yeongyang Wind Power Corporation II	Collateralized money invested		KRW 7,461	Korea Development Bank and Samsung Fire & Marine Insurance Co., Ltd.
Korea Midland Power Co., Ltd.	Haeparang Energy Co., Ltd.	Collateralized money invested Guarantees for supplemental funding		KRW 2,188 —	Templeton hana asset management Co. Ltd
Korea Midland Power Co., Ltd.	Saemangeum Sebit Power Plant Co., Ltd.	Guarantees for supplemental funding(*1)		—	Kookmin Bank
Korea South-East Power Co., Ltd.	Dayone Energy Co., Ltd.	Collateralized money invested(*3)		—	IBK
		Guarantees for supplemental funding and others(*1,4)		KRW 76,800	NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested		KRW 15,133	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested		KRW 14,555	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Guarantees for supplemental funding and others		KRW 4,754	Woori Bank
Korea South-East Power Co., Ltd.	Goseong Green Power Co., Ltd.	Collateralized money invested		KRW 288,893	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested		—	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND Solar Co., Ltd.	Collateralized money invested		KRW 1,403	IBK

F-21

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(7)	Guarantees provided to related parties as of December 31, 2022 are as follows, continued:


Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested		KRW 7,631	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested		KRW 2,236	IBK
Korea South-East Power Co., Ltd.	Chungsongmeon BongSan wind power Co., Ltd.	Collateralized money invested		KRW 3,470	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Yeongam Solar Power Co., Ltd.	Collateralized money invested		KRW 9,879	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested		KRW 3,205	Shinhan Bank and others
Korea South-East Power Co., Ltd.	Saemangeum Heemang Photovoltaic Co., Ltd.	Collateralized money invested		KRW 13,010	Woori Bank and others
Korea South-East Power Co., Ltd.	Nepal Water & Energy Development Company Private Limited	Collateralized money invested		USD 97,105	International Finance Corporation and others
		Business reserve payment guarantee		USD 33,333
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested		—	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested		KRW 4,396	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Go deok Clean Energy Co., Ltd.	Collateralized money invested		KRW 4,419	Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested		KRW 4,264	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gwangyang Green Energy Co., Ltd.	Collateralized money invested		KRW 25,043	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gangneung Sacheon Fuel Cell Co., Ltd.	Collateralized money invested		KRW 4,276	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Chun-cheon Green Energy Co., Ltd.	Collateralized money invested		KRW 9,156	Hana Bank and others

(*1)	The Company guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2)

Controlling and

non-controlling

common shareholders of Samcheok Eco Materials Co., Ltd. have

pre-emption

rights, if preferred shareholders intend to sell their shares until December 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of December 31, 2022, the Company has recognized derivative liabilities of ￦6,760 million related to the guarantee. Meanwhile, the Company is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*3)	The Company recognized an impairment loss on all of the equity securities of Dayone Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is ￦47,067 million.

(*4)	Pursuant to the guarantee agreement, the Company recognized other provisions of ￦7,230 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*5)	The common stocks of Dongducheon Dream Power Co., Ltd. held by the Company were pledged as collateral.

(*6)	The Company provided a payment guarantee to Daehan Wind Power PSC for opening L/C for Debt Service Reserve Account (DSRA).

(*7)	This includes a guarantee related to L/C for debt repayment allowance provided to DE Energia SpA, a joint venture of the Company.

(*8)	The Company recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is ￦29,200 million.

(*9)	The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

(*10)

Saemangeum Sebit Power Plant Co., Ltd., the Company’s related party as of December 31, 2022, is raising a fund from kookmin bank and others amounting to KRW 99.9 billion (remaining balance as of December 31, 2022 is KRW 36.5 billion) through project financing commitment. The Company is going to provide the lender a guarantee up to KRW 63.4 billion in the commitment except for KRW 36.5 billion which is a senior loan, as shares of Saemangeum Sebit Power Plant Co., Ltd. owned by the Company at the time of fund-raising.

(*11)

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, 2022.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

47.	Related Parties, Continued

(8)	Guarantees received from related parties as of December 31, 2022 are as follows


Primary Guarantor	Type of guarantees		Credit limit
KAPES, Inc.	Performance guarantees	￦		17,225
	Defect guarantees			2,533

(9)	Derivatives transactions with related parties as of December 31, 2022 are as follows:

(i)

Currency Swap


Counterparty	Contract year			Contract amounts				Contract interest rate per annum							Contract exchange rate (in won)
Counterparty	Contract year			Pay		Receive		Pay			Receive				Contract exchange rate (in won)
	In millions of won and thousands of foreign currencies except contract exchange rate information
Korea Development Bank		2019~2024	￦		177,600		USD 150,000		1.24	%		2.50	%	￦		1,184.00
		2020~2025			241,320		USD 200,000		0.54	%		1.13	%			1,206.60
		2021~2026			118,170		USD 100,000		1.11	%		1.13	%			1,181.70
		2015~2025			111,190		USD 100,000		2.62	%		3.25	%			1,111.90
		2017~2027			111,610		USD 100,000		2.31	%		3.13	%			1,116.10
		2018~2028			108,600		HKD 800,000		2.69	%		3.35	%			135.75
		2018~2023			170,280		USD 150,000		2.15	%		3.75	%			1,135.20
		2019~2027			119,978		CHF 100,000		1.43	%		0.05	%			1,199.78
		2021~2026			111,400		USD 100,000		0.93	%		1.25	%			1,114.00
		2022~2027			262,000		USD 200,000		3.63	%		4.25	%			1,310.00
		2020~2026			118,910		USD 100,000		0.61	%		1.00	%			1,189.10
		2021~2026			114,230		USD 100,000		1.27	%		1.25	%			1,142.30
		2022~2027			123,710		USD 100,000		3.41	%		3.63	%			1,237.10
		2018~2023			320,880		USD 300,000		2.03	%		3.75	%			1,069.60
		2022~2025			128,560		USD 100,000		3.37	%		4.13	%			1,285.60
		2018~2023			169,335		USD 150,000		2.26	%		3.88	%			1,128.90
		2020~2025			122,780		USD 100,000		0.93	%		1.75	%			1,227.80
		2022~2025			252,360		USD 200,000		2.83	%		3.60	%			1,261.80

(ii)

Currency forward

Counterparty

Contract

date

Maturity

date

Contract amounts

Contract

exchange

rate
(in won)

Pay

Receive

In millions of won and thousands of USD except contract exchange rate information

Korea Development Bank

2022.12.19

2023.01.26

￦

26,010

USD 20,000

￦

1,300.50

(10)

The Company considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Company recorded salaries and other compensations related to the key management personnel as follows:


Type		2020		2021		2022
		In millions of won
Salaries	￦		1,295		1,272		1,026
Retirement benefits			58		21		58

	￦		1,353		1,293		1,084

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

48.	Statement of Cash Flows

(1)	Significant non-cash transactions for the years ended December 31, 2020, 2021, and 2022 are as follows:


Transactions		2020		2021		2022
		In millions of won
Transfer from construction-in-progress to other assets	￦		10,189,527		12,902,589		13,723,972
Recognition of asset retirement cost and related provision for decommissioning costs			895,507		2,356,805		3,497,866
Transfer from provision for disposal of spent nuclear fuel to accrued expenses			395,921		455,401		417,687
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			9,237,883		11,109,271		13,838,578
Transfer from inventory to stored nuclear fuel			1,055,974		908,842		738,720
Transfer of right-of-use assets due to change in accounting policy and others			291,334		78,213		197,016

(2)	Changes in liabilities incurred from financing activities for the years ended December 31, 2021, and 2022 are as follows:


		2021
							Non-cash changes
		Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
		In millions of won
Borrowings and debt securities	￦		69,724,581		9,653,394			—		1,151,538		80,529,513
Lease liabilities			4,621,096		(572,036	)		73,090		288,353		4,410,503

	￦		74,345,677		9,081,358			73,090		1,439,891		84,940,016


		2022
							Non-cash changes
		Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
		In millions of won
Borrowings and debt securities	￦		80,529,513		39,193,815			—		882,037		120,605,365
Lease liabilities			4,410,503		(562,647	)		109,019		206,268		4,163,143

	￦		84,940,016		38,631,168			109,019		1,088,305		124,768,508

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

49.	Commitments for Expenditure

(1)	The commitments related to acquisition of property, plant and equipment as of December 31, 2021 and 2022 are as follows:


		2021				2022
Contracts		Commitment amounts		Remaining liability balances		Commitment amounts		Remaining liability balances
		In millions of won
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)	￦		57,046		16,240		57,203		12,595
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)			46,616		34,102		50,151		37,638
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S			36,143		25,292		37,168		16,788
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S			40,010		5,540		—		—
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S			37,744		140		37,744		140
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others			56,860		34,576		58,269		3,883
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S			32,000		26,700		33,841		25,641
Advanced E-Type low-pressure electronic power meter 1,320,000 ea			65,972		23,262		—		—
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)			34,423		23,297		35,949		3,232
Purchase of cable (TR CNCE-W,1C,325SQ) 1,016,000M			66,581		40,254		—		—
Purchase of cable (TR CNCE-W,1C,600SQ) 485,000M			46,194		37,810		—		—
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 3,303,900M			87,382		83,628		—		—
Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments			188,338		168,456		202,795		95,428
Purchase of GIS (362KV, 6300A, 63KA) 19 – Shinyangsan S/S			31,464		31,464		31,834		17,334
Purchase of cable (PVC, 1C, 2500SQ) 57,868M and others (Goduk-Seoansung)			—		—		40,937		3,748
Purchase of cable (PVC, 1C, 2000SQ) 87,732M and others (Eulwangboonki)			—		—		36,155		10,274
GIS(362KV,6300A,63KA) 18 – Wolsung S/Y			—		—		32,090		32,090
Purchase of cable (FR CNCO-W,1C,325SQ) 672,300M			—		—		31,387		19,213
Purchase of cable (TR CNCE-W,1C,325SQ) 1,342,000M			—		—		75,620		40,497
Purchase of cable (TR CNCE-W,1C,600SQ) 377,000M			—		—		31,851		17,478
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 2,175,300M			—		—		53,064		29,436
System stabilization ESS equipment (Bubuk S/S) 1 Type			—		—		222,300		222,300
System stabilization ESS equipment (Shinnamwon S/S) Type 1			—		—		211,500		211,500
System stabilization ESS equipment (Yeongcheon S/S) Type 1			—		—		73,104		73,104
Construction of Saeul Units (#3,4)			9,800,424		3,479,667		9,800,424		2,455,673
Construction of Shin-Hanul Units (#1,2)			9,745,123		—		10,327,372		97,889
Other 36 contracts			792,485		620,593		853,941		425,149
Service of designing Seoul Combined Units (#1,2)			31,841		934		31,148		—
Purchase of furnace for construction of Shin-Seocheon thermal power plant			305,209		7,722		305,209		5,132
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant			105,226		6,301		107,333		6,214
Purchase of main machine for Jeju LNG combined			166,287		10,972		166,287		10,898
Purchase of equipments for the construction project of Boryeong indoor coal storage yard			317,350		317,350		318,197		287,965
Service of designing Taean Units (#9,10)			112,909		12,623		112,909		12,468
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant			126,302		61,735		126,302		32,748
Purchase of steam turbine, HRSG and POWER BLOCK of Gimpo combined heat & power plant			214,053		138,244		221,997		38,714
Construction of Gimpo combined heat & power plant			130,015		86,323		181,798		56,558
Purchase of gas turbines, steam turbines, and accessories for Gumi natural gas power plant			—		—		197,983		197,983
Construction of Gumi natural gas power plant			—		—		204,094		204,094
Installation of natural gas supply facility at Gumi natural gas power plant			—		—		70,620		70,620
Purchase of coal handling machine for construction of Samcheok Units (#1,2)			286,571		6,215		299,048		6,687

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

49.	Commitments for Expenditure, Continued

(1)	The commitments related to acquisition of property, plant and equipment as of December 31, 2021 and 2022 are as follows, continued:


		2021				2022
Contracts		Commitment amounts		Remaining liability balances		Commitment amounts		Remaining liability balances
		In millions of won
Purchase of main equipment for Namjeju			140,144		3		140,144		3
Purchase of main equipment for Shin-Sejong combined thermal power plant	￦		234,392		200,122		234,392		32,472
Purchase of Hadong thermal power indoor carboniferous plant			148,800		129,042		162,814		105,504
Purchase of phase 1 power generation facility for Yeongwol fuel cells			88,449		1,523		—		—
Purchase of phase 2 power generation facility for Yeongwol fuel cells			—		—		86,100		30,527
Purchase of fuel cell power generation facilities for the fifth stage of Shinincheon headquarters			—		—		81,960		81,960

(2)	As of December 31, 2022, details of contracts for inventory purchase commitment are as follows:

The Company imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Company entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:


Type	Periods		Contracted quantity
Concentrate		2022 ~ 2033	26,310 Ton U3O8
Transformed		2022 ~ 2030	19,012 Ton U
Enrichment		2022 ~ 2032	21,434 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Company, is 1,418 Ton U (contract periods :

2014 ~ 2023

50.	Contingencies and Commitments

(1)	Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2021 and 2022 are as follows:


	2021				2022
	Number of cases		Claim amount		Number of cases		Claim amount
	In millions of won
As the defendant		683	￦	689,415		653	￦	981,878
As the plaintiff		284		784,453		238		599,809

As of December 31, 2022, there are 5 ongoing litigations and 1 arbitration case between consolidated entities.

As of December 31, 2022, in connection with Shin-Hanul Unit 3 & 4, the Company has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Company does not believe that it has a present obligation to this vendor, and that it is probable that the Company will prevail if a lawsuit is filed against the Company. In addition, the Company is unable to reliably estimate the potential economic outflow related to the obligation as of December 31, 2022.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

50.	Contingencies and Commitments, Continued

(1)	Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2021 and 2022 are as follows, continued:

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 ￦114,937 million as litigation provisions in relation to the lawsuit as of December 31, 2022.

In addition to the abovementioned significant ongoing claims, there are 5 arbitration cases pertaining to the Company as of December 31, 2022 and the significant arbitration cases for the year ended December 31, 2022 are as follows:

In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Company to the Indian Council of Arbitration due to disagreements in the contract, but the Company 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, 2022 are as follows:

The Company has outstanding borrowings with a limit of USD 275,600 thousand from its creditors

including

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. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Company has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

The Company has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees of mutual investment of USD 5,947 thousand, which is equivalent to the ownership interest of PT BS Energy and PT Nusantara Hydro Alam, in order to guarantee the expenses related to hydroelectric power business of Tanggamus, Indonesia.

The Company has provided USD 18,500 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

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.

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.

The Company has provided the SMBC with the guarantees of mutual investment of USD 4,401 thousand, which is equivalent to the ownership interest of PT Mega Power Mandiri, in order to guarantee the expenses related to hydroelectric power business of Wampu, Indonesia.

The Company has provided USD 50,000 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.

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.

10)

The Company has provided USD 54,000 thousand for a performance guarantee to PT. Cirebon Electro Power, to guarantee the Cirebon coal-fired power plant operation and maintenance project in Indonesia.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

50.	Contingencies and Commitments, Continued

(2)	Guarantees of payments and commitments provided to other companies as of December 31, 2022 are as follows, continued:

11)

Nonghyup Bank is providing a payment guarantee of USD 47.85 million to Mizuho Bank, Ltd., a third party, for the guarantee of debt repayment reserves of PT Cirebon Electric Power’s Indonesia Cirebon power plant project.

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 EUR 10,000 thousand for a performance guarantee to Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch through Kookmin Bank, to guarantee the opening of VAT payment loan account for Guba Buget wind power project in Sweden.

14)

The Company has provided EUR 5,022 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.

15)

The Company has provided EUR 9,980 thousand of a performance guarantee to Ellevio through Shinhan Bank, to guarantee the performance of the electric power transmission equipment connection construction for Guba Buget wind power project in Sweden.

16)

The Company has provided Shinhan Bank a debt guarantee up to USD 60,000 thousand (current amount : USD 60,000 thousand) to guarantee Equity Bridge Loan for Concho Valley solar business in the United States.

17)

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.

F-22

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

50.	Contingencies and Commitments, Continued

(3)	Lines of credit provided by financial institutions as of December 31, 2022 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		1,910,500		53,416
Limit amount available for CP	Hana Bank and others	KRW		3,250,000		3,250,000
General Loan, etc.	Hana Bank and others	KRW		3,000,000		3,000,000
Limit amount available for card	Hana Bank and others Banco de Oro	KRW PHP		47,424 5,000		2,615 3,000
Loan limit	Korea Development Bank and others DBS Bank Ltd and others	KRW USD		2,023,728 1,385,000		1,369,694 143,841
Certification of payment on payables from foreign country	Nonghyup Bank	USD		12,028		8,040
Certification of payment on L/C	Credit Agricole and others	USD		1,317,245		402,677
Certification of payment on L/C	Kookmin Bank and others	EUR		48,122		31,472
	Shinhan Bank	JPY		481,785		—
Certification of Performance guarantee on contract s	Hana Bank and others	KRW		127,606		106,020
	First Abu Dhabi Bank and others	USD		1,092,590		788,404
	Korea Development Bank and others	JPY		620,000		620,000
	Hana Bank and others	EUR		3,965		3,965
	Shinhan Bank	INR		44,872		—
	Hana Bank	SAR		1,509		1,509
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	Export-Import Bank of Korea	KRW		106,776		75,900
	Hana Bank and others	USD		306,251		282,224
	Hana Bank and others	MXN		21,597		20,027
Others	Nonghyup Bank and others	KRW		1,216,250		300,936
	Export-Import Bank of Korea and others	USD		733,318		510,094
	Standard Chartered	AED		50		50
	Shinhan Bank	SAR		3,000		3,000
Inclusive credit	Hana Bank	KRW		8,000		667
	Kookmin Bank	USD		135,000		45,909
	Hana Bank	INR		—		323,837
Equity Bridge Loan Guarantee	Mizuho Bank and others	USD		1,685,955		1,141,788
Trade finance	Export-Import Bank of Korea and others	USD		970,000		—

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

50.	Contingencies and Commitments, Continued

(4)	As of December 31, 2022, 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

275,600

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)

KOSPO Youngnam Power Co., Ltd.

Shinhan Bank and others

Cash and cash equivalents and others

KRW

744,120

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.

The 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. (formerly, TS Energy No. 25 Co., Ltd.)

Kyobo Life Insurance Co., Ltd. and others

Property, plant and equipment and others

KRW

329,736

Collateral for borrowings(*2)

Jeongam Wind Power Co., Ltd.

KDB Capital Corporation and others

Cash and cash equivalents and others

KRW

235,809

Collateral for borrowings(*2)

(*1)	This is based on the amount of loan commitment limit.

(*2)	As of December 31, 2022, 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, 2022. The Company has provided a promissory note as a repayment guarantee.

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

50.	Contingencies and Commitments, Continued

(4)	As of December 31, 2022, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows, continued:

(5)

The Company temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of ￦66,879 million as of December 31, 2022, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of ￦1,683 million and depreciation on the idle assets of ￦3,635 million are recorded in other expenses for the year ended December 31, 2022. 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, 2022.

(6)

Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Company can exercise the property rights for the Company’s facility in the Gaeseong Industrial District as of December 31, 2022. The book value of facility is ￦12,967 million and trade receivables related to the companies residing in Gaeseong industrial complex has been fully written-off during the year ended December 31, 2022. The outcome of this event cannot be reasonably estimated as of December 31, 2022.

(7)

In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of December 31, 2022.

(8)

To prevent the spread of

COVID-19,

a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with

COVID-19.

The Company was unable to reasonably estimate the impact of

COVID-19

and the impact of the government support policies on the Company’s consolidated financial statements as of December 31, 2022, and the resulting effects have not been reflected in the consolidated financial statements.

(9)

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.

(10)

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.

(11)

The Organization for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses the tax challenges arising from the digitalization of the global economy. Global Minimum Tax (Pillar Two) were released and they apply to Multinational Enterprises (MNEs) with revenue in excess of EUR 750 million per their consolidated financial statements. National Assembly of South Korea passed the new Global Minimum Tax rules to align with the OECD BEPS Pillar Two in December 2022. The regulation will be included in the Adjustment of International Taxes Act and will be effective for fiscal years beginning on or after January 1, 2024. However, the Enforcement Decrees that provide further detail on the application of the legislation is only expected to be finalized later in 2023. In South Korea, Pillar Two legislation is not yet considered substantively enacted as of December 31, 2022 for

S 1012 purposes. The Company therefore has not recognized any tax effect arising from the Global Minimum Tax in its consolidated financial statements as of December 31, 2022 and for the year then ended.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

51.	Subsequent Events

(1)	Subsequent to December 31, 2022, KEPCO and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Western Power Co., Ltd., and Korea Southern Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows:



Company	Type	Issue date		Maturity		Interest rate (%)			Amount
	In millions of won and thousands of foreign currencies
Korea Electric Power Corporation	#1339 Corporate bond		2023.01.03		2025.01.03		4.40	￦		200,000
	#1340 Corporate bond		2023.01.03		2026.01.03		4.50			320,000
	#1341 Corporate bond		2023.01.05		2025.01.05		4.20			140,000
	#1342 Corporate bond		2023.01.05		2026.01.05		4.30			240,000
	#1343 Corporate bond		2023.01.09		2025.01.09		4.20			130,000
	#1344 Corporate bond		2023.01.09		2026.01.09		4.28			280,000
	#1345 Corporate bond		2023.01.12		2025.01.12		4.00			110,000
	#1346 Corporate bond		2023.01.12		2026.01.12		4.08			330,000
	#1347 Corporate bond		2023.01.16		2025.01.16		4.00			190,000
	#1348 Corporate bond		2023.01.16		2026.01.16		4.05			220,000
	#1349 Corporate bond		2023.01.19		2025.01.19		3.85			180,000
	#1350 Corporate bond		2023.01.19		2026.01.19		3.87			320,000
	#1351 Corporate bond		2023.01.25		2025.01.25		3.85			140,000
	#1352 Corporate bond		2023.01.25		2026.01.25		3.89			410,000
	#1353 Corporate bond		2023.02.03		2025.02.03		3.50			220,000
	#1354 Corporate bond		2023.02.03		2026.02.03		3.54			280,000
	#1355 Corporate bond		2023.02.06		2025.02.06		3.65			210,000
	#1356 Corporate bond		2023.02.06		2026.02.06		3.65			320,000
	#1357 Corporate bond		2023.02.10		2025.02.10		3.80			100,000
	#1358 Corporate bond		2023.02.10		2026.02.10		3.83			340,000
	#1359 Corporate bond		2023.02.13		2025.02.13		3.83			180,000
	#1360 Corporate bond		2023.02.13		2026.02.13		3.85			320,000
	#1361 Corporate bond		2023.02.17		2025.02.17		3.99			110,000
	#1362 Corporate bond		2023.02.17		2026.02.17		4.10			320,000
	#1363 Corporate bond		2023.02.20		2025.02.20		4.09			150,000
	#1364 Corporate bond		2023.02.20		2026.02.20		4.11			160,000
	#1365 Corporate bond		2023.03.03		2025.03.03		4.35			100,000
	#1366 Corporate bond		2023.03.03		2026.03.03		4.40			110,000
	#1367 Corporate bond		2023.03.06		2025.03.06		4.25			180,000
	#1368 Corporate bond		2023.03.06		2026.03.06		4.35			210,000
	#1369 Corporate bond		2023.03.10		2025.03.10		4.25			230,000
	#1370 Corporate bond		2023.03.10		2026.03.10		4.35			230,000
	#1371 Corporate bond		2023.03.13		2025.03.13		4.14			140,000
	#1372 Corporate bond		2023.03.13		2026.03.13		4.25			260,000
	#1373 Corporate bond		2023.03.22		2025.03.22		3.97			160,000
	#1374 Corporate bond		2023.03.22		2026.03.22		4.00			70,000
	#1375 Corporate bond		2023.03.30		2025.03.30		3.98			240,000
	#1376 Corporate bond		2023.03.30		2026.03.30		3.99			160,000
	#1377 Corporate bond		2023.04.04		2025.04.04		3.99			270,000
	#1378 Corporate bond		2023.04.04		2026.04.04		4.00			260,000
	#1379 Corporate bond		2023.04.07		2025.04.07		3.95			210,000
	#1380 Corporate bond		2023.04.07		2026.04.07		3.95			190,000
	#1381 Corporate bond		2023.04.12		2025.04.12		3.91			240,000
	#1382 Corporate bond		2023.04.12		2026.04.12		3.95			170,000
	#1383 Corporate bond		2023.04.21		2025.04.21		3.89			200,000

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Table of Contents

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2021 and 2022

51.	Subsequent Events, Continued

(1)	Subsequent to December 31, 2022, KEPCO and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Western Power Co., Ltd., and Korea Southern Power Co., Ltd. issued corporate bonds for the purposes of operation and others as follows, continued:


Company	Type	Issue date		Maturity		Interest rate (%)		Amount
	In millions of won and thousands of foreign currencies
Korea Hydro & Nuclear Power Co., Ltd.	#70-1 Corporate bond		2023.02.22		2028.02.22		4.10		90,000
	#70-2 Corporate bond		2023.02.22		2033.02.22		4.15		40,000
	#70-3 Corporate bond		2023.02.22		2043.02.22		4.08		20,000
	#71-1 Corporate bond		2023.03.07		2028.03.07		4.13		50,000
	#71-2 Corporate bond		2023.03.07		2033.03.07		4.18		30,000
	#72-1 Corporate bond		2023.04.26		2028.04.26		3.91		130,000
	#72-2 Corporate bond		2023.04.26		2043.04.26		4.00		90,000
Korea South-East Power Co., Ltd.	#57-1 Corporate bond		2023.02.09		2024.02.08		3.56		120,000
	#57-2 Corporate bond		2023.02.09		2026.02.09		3.74		50,000
Korea Western Power Co., Ltd.	#57-1 Corporate bond		2023.01.17		2025.01.17		4.07		70,000
	#57-2 Corporate bond		2023.01.17		2026.01.17		4.04		30,000
	#58-1 Corporate bond		2023.04.20		2026.04.20		3.98		200,000
	#58-2 Corporate bond		2023.04.20		2028.04.20		4.13		40,000
	#58-3 Corporate bond		2023.04.20		2043.04.20		3.94		20,000
Korea Southern Power Co., Ltd.	#67-1 Corporate bond		2023.01.12		2024.01.12		3.97		100,000
	#67-2 Corporate bond		2023.01.12		2025.01.10		4.04		40,000
	#68-1 Corporate bond		2023.04.13		2024.04.12		3.63		150,000
	#68-2 Corporate bond		2023.04.13		2026.04.13		3.76		50,000

(2)

On February 14th, 2023, the subsidiary, Korea South-East Power Co., Ltd. invested in Bidiai Co., Ltd., and as a result of the approval of Bidiai’s restructuring plan, on February 17th, 2023, ￦

billion of bonds were converted into shares, making Korea South-East Power Co., Ltd. the largest shareholder of Bidiai Co., Ltd. with a stake of

32.54%.

(3)

On January 8th, 2023, a fire broke out in Taean IGCC Gas Refining Plant of the subsidiary, Korea Western Power Co., Ltd., resulting in the suspension of production. The amount of damages caused by the fire is under investigation, and the Company is currently verifying the insurance coverage with the property insurance policy.

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