Korea Electric Power (KEP) 6-K Current report (foreign)

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule13a-16 or15d-16

of the Securities Exchange Act of 1934

For the Month of December 2018

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

55Jeollyeok-ro,Naju-si, Jeollanam-do, 58217, Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F or Form40-F.

Form20-F  ☒            Form40-F  ☐

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(7):  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule12g3-2(b):82-            .

This Report of Foreign Private Issuer on Form6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended.

QUARTERLY BUSINESS REPORT

(For the period from January 1, 2018 to September 30, 2018)

THIS IS A SUMMARY IN ENGLISH OF THE QUARTERLY BUSINESS REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE FINANCIAL SERVICES COMMISSION OF KOREA.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED FOR THE CONVENIENCE OF READERS.NON-MATERIAL OR PREVIOUSLY DISCLOSED INFORMATION IS OMITTED OR ABRIDGED.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTED FOR USE IN KOREA, ORK-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES.

I. Company Overview

1. Name of the company: Korea Electric Power Corporation (KEPCO)

2. Information of the company

(Address) 55Jeollyeok-ro, Naju-si, Jeollanam-do, 58217, Korea

(Phone number)82-61-345-4213

(Website)http://www.kepco.co.kr

3. Major businesses

KEPCO, as the parent company, is engaged in the following activities:

• development of electric power resources;

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

• research and development of technology related to the businesses mentioned above;

• overseas business related to the businesses mentioned above;

• investment or contributions related to the businesses mentioned above;

• development and operation of certain real estate holdings; and

• other businesses entrusted by the government.

Businesses operated by KEPCO’s major subsidiaries are as follows: nuclear power generation by Korea Hydro & Nuclear Power (KHNP), thermal power generation by Korea South-East Power (KOSEP), Korea Midland Power (KOMIPO), Korea Western Power (KOWEPO), Korea Southern Power (KOSPO) and Korea East-West Power (EWP), other businesses including engineering service by KEPCO Engineering & Construction (KEPCO E&C), maintenance and repair of power plants by KEPCO Plant Service & Engineering (KEPCO KPS), nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF), IT service by KEPCO KDN, and other overseas businesses and related investments.

4. Subsidiaries and affiliates of KEPCO

	(As of September 30, 2018)
Classification	Consolidated subsidiaries		Associates and joint ventures		Total
Domestic		27		61		88
Overseas		75		47		122
Total		102		108		210

5. Major changes in management

A. On March 19, 2018, Mr. Kim, Chang-Joon was appointed as anon-standing director in the replacement of Mr. Koo,Ja-Yoon, whose term of office expired.

B. On April 4, 2018, Mr. Yang, Bong-Ryull, Mr. Kim, Jwa-Kwan and Mr. Jung, Yeon-Gil were appointed asnon-standing directors in the replacement of Mr. Ahn, Choong-Yong, Mr. Lee, Gang-Hee and Mr. Cho, Jeon-Hyeok whose terms of office expired.

C. At the extraordinary general meeting of shareholders of KEPCO held on April 10, 2018, Mr. JongKap KIM was appointed as the President and Chief Executive Officer, in replacement of Mr. Cho, Hwan-Eik who voluntarily resigned on December 8, 2017.

D. On June 12, 2018, Ms. Noh, Geum-Sun, Mr. Choi, Seung-Kook and Mr. Park, Cheol-Su were appointed asnon-standing directors in the replacement of Mr. Choi,Ki-Ryun, Mr. Sung,Tae-Hyun and Mr. Kim,Ju-Suen whose terms of office expired.

E. At the extraordinary general meeting of shareholders of KEPCO held on July 16, 2018, Mr. Kim,Dong-Sub, Mr. Kim,Hoe-Chun, Mr. Park, Hyung-Duck and Mr. Lim, Hyun-Seung were appointed as standing directors in replacement of Mr. Kim, Si-Ho and other standing directors whose terms of office expired. Ms. Noh, Geum-Sun and Mr. Jung, Yeon-Gil were appointed asnon-standing directors and members of the audit committee.

F. At the extraordinary general meeting of shareholders of KEPCO held on July 30, 2018, Mr. Lee, Jung-Hee was appointed as standing director and member of the audit committee in replacement of Mr. Lee, Sung-Han whose term of office expired.

G. On October 10, 2018, Mr. Kim, Tai-Yoo was appointed asnon-standing director in replacement of Mr. Kim,Ji-Hong whose term of office expired.

6. Changes in major shareholders

On December 31, 2014, Korea Development Bank merged with Korea Finance Corporation, and became the largest shareholder of KEPCO.

7. Information regarding KEPCO shares

A. Issued share capital: Won 3,210 billion (Authorized capital: Won 6 trillion)

B. Total number of issued shares: 641,964,077

(Total number of shares authorized to for issuance: 1,200,000,000)

C. Dividends: Dividend payment of Won 790 per share for fiscal year 2017 (Won 507 billion in aggregate). Dividend payments for fiscal year 2016, 2015 and 2014 were Won 1,980, Won 3,100 and Won 500 per share respectively.

II. Business Overview

1. Consolidated financial results by segment for a nine-month period ended September 30, 2017 and 2018

	(In billions of Won)
	January to September 2017				January to September 2018
	Sales		Operating profit		Sales		Operating profit
Electricity sales		44,565		1,518		45,139		-1,399
Nuclear generation		7,101		1,402		6,307		735
Thermal generation		17,222		2,048		19,508		1,103
Others(*)		2,215		242		2,469		273
Subtotal		71,103		5,210		73,423		712
Adjustment for related-party transactions		-26,843		-127		-27,970		-132
Total		44,260		5,083		45,453		580

^(*)  Others relate to subsidiaries including KEPCO E&C, KEPCO KPS, KEPCO NF and KEPCO KDN, among others.

• The figures may not add up to the relevant total numbers due to rounding.

• Sales and operating profit reflects amendments to Korean IFRS 1001 “Presentation of Financial Statements.”

• The figures for the period of 2017 are presented in accordance with previous standards includingK-IFRS 1018 ‘Revenue’,K-IFRS 1011 ‘Construction Contracts’ andK-IFRS 1039 ‘Financial Instrument: Recognition and Measurement’.

2. Changes in unit prices of major products

	(In Won per kWh)
Business sector		Company	January to December 2017		January to September 2018
Electricity sold	Residential	KEPCO		108.50		108.05
	Commercial			130.42		129.98
	Educational			103.07		105.05
	Industrial			107.41		106.30
	Agricultural			47.57		47.64
	Street lighting			113.48		115.89
	Overnight usage			67.48		67.33
Electricity from nuclear generation	Nuclear Generation	KHNP		62.25		63.61
Electricity from thermal generation	Thermal generation	KOSEP		77.66		94.27
		KOMIPO		89.01		94.00
		KOWEPO		92.31		96.40
		KOSPO		91.10		98.52
		EWP		92.04		98.38

3. Power purchase from generation companies for a nine-month period ended September 30, 2018

Company	Volume (MWh)		Expense (In billions of Won)
KHNP		95,942,430		6,111
KOSEP		47,565,849		3,961
KOMIPO		36,036,811		3,394
KOWEPO		38,102,282		3,675
KOSPO		42,816,625		4,223
EWP		37,869,608		3,665
Others		112,943,349		12,461
Total		411,276,954		37,490

• Excludes expense related to the renewable portfolio standard provisions and carbon emissions.

4. Intellectual property as of September 30, 2018

	Patents				Utility models		Designs		Trademarks				Total
	Domestic		Overseas						Domestic		Overseas
KEPCO		2,049		271		65		64		141		48		2,638
Consolidated subsidiaries		3,872		588		798		132		245		25		5,660
Total		5,921		859		863		196		386		73		8,298

III. Financial Information

1. Condensed consolidated financial results as of and for a nine-month period ended September 30, 2017 and 2018

(In billions of Won)

Consolidated statements of comprehensive income							Consolidated statements of financial position
	January to September 2017		January to September 2018		Change (%)			December 31, 2017		September 30, 2018		Change (%)
Sales		44,260		45,453		2.7	Total assets		181,789		186,775		2.7
Operating profit		5,083		580		-88.6	Total liabilities		108,824		114,838		5.5
Net income		2,788		-432		-115.5	Total equity		72,965		71,937		-1.4

2. Condensed separate financial results as of and for a nine-month period ended September 30, 2017 and 2018

(In billions of Won)

Separate statements of comprehensive income							Separate statements of financial position
	January to September 2017		January to September 2018		Change (%)			December 31, 2017		September 30, 2018		Change (%)
Sales		44,565		45,139		1.3	Total assets		106,540		107,146		0.6
Operating profit		1,518		-1,399		-192.2	Total liabilities		50,758		52,467		3.4
Net income		2,008		-544		-127.1	Total equity		55,782		54,679		-2.0

IV. Board of Directors (KEPCO Only)

1. The board of directors is required to consist of not more than 15 directors including the president. Under our Articles of Incorporation, there may not be more than seven standing directors including president, and more than eightnon-standing directors. The number ofnon-standing directors must exceed the number of standing directors, including our president.

* The Audit Committee consists of one standing director and two non-standing directors.

2. Board meetings and agendas for a nine-month period ended September 30, 2018

Number of meetings	Number of agendas	Classification
		Resolution	Reports
13	46	37	9

* The audit committee held 10 meetings with 24 agendas (of which, 14 were approved as proposed and 10 were accepted as reported).

3. Major activities of the Board of Directors

Date	Agenda	Results	Type
February 8, 2018	Approval of amendments to the Electricity Usage Agreement and Rules for Operation	Approved as proposed	Resolution
February 23, 2018	Approval of the maximum aggregate amount of remuneration for directors in 2018	Approved as proposed	Resolution
	Approval of the relocation plan of materials center in Gyeonggi District Division	Approved as proposed	Resolution
	Approval of consolidated and separate financial statements for the fiscal year 2017	Approved as proposed	Resolution
	Approval to call for the annual general meeting of shareholders for the fiscal year 2017	Approved as proposed	Resolution
	Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2018-2019)	Accepted as reported	Report
	Report on the annual management of commercial papers in 2017	Accepted as reported	Report
	Report on internal control over financial reporting for the fiscal year 2017	Accepted as reported	Report
	Evaluation report on internal control over financial reporting for the fiscal year 2017	Accepted as reported	Report
	Report on the audit result for 2017	Accepted as reported	Report
February 27, 2018	Approval to close the shareholders’ registry for extraordinary general meeting of shareholders	Approved as proposed	Resolution
March 15, 2018	Approval of amendments to investment structure and guarantee for Nghi Son II coal-fired power plant in Vietnam	Conditionally Approved	Resolution

	Approval of liquidation of KEPCO Canada Energy(KCE), a subsidiary located in Canada	Approved as proposed	Resolution
	Approval of the construction of a new Integrated Gangwon District Division Office Building	Approved as proposed	Resolution
	Approval of the Statement of Appropriation of Retained Earnings for the fiscal year 2017	Approved as proposed	Resolution
March 26, 2018	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018	Approved as proposed	Resolution
April 20, 2018	Approval of amendments to the regulation for employee remuneration and welfare	Approved as proposed	Resolution
	Approval of forming Director Nomination Committee and evaluation standards for the candidates ofnon-standing directors	Approved as proposed	Resolution
	Approval to close the shareholders’ registry for extraordinary general meeting of shareholders	Approved as proposed	Resolution
May 18, 2018	Approval of forming Director Nomination Committee and evaluation standards for the candidate of a standing director and member of the Audit Committee	Approved as proposed	Resolution
	Approval to close the shareholders’ registry for extraordinary general meeting of shareholders	Approved as proposed	Resolution
	Approval of amendment to the rules on employment	Approved as proposed	Resolution
	Report on results of external and internal audits for the first quarter of 2018	Accepted as reported	Report
June 15, 2018	Approval of investment in the mutual growth and cooperation fund for agriculture and fishery in 2018	Approved as proposed	Resolution
	Approval of plans for the sales of real estate holdings within combined heat and power plant in Bucheon	Approved as proposed	Resolution
	Approval of 8th long-term plan for power transmission and substation facilities	Approved as proposed	Resolution
	Approval of the establishment of a new regional office	Approved as proposed	Resolution

	Approval of amendment to the regulation of the Board of directors	Approved as proposed	Resolution
June 29, 2018	Approval of Agreement on Management Performance Assessment for the President	Approved as proposed	Resolution
	Approval ofmid-to-long term financial management plan (2018-2022)	Approved as proposed	Resolution
	Approval of recommendation of a candidate for the Audit Committee	Approved as proposed	Resolution
	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018	Approved as proposed	Resolution
July 12, 2018	Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018	Approved as proposed	Resolution
August 7, 2018	Approval of amendments to the Electricity Usage Agreement and Rules for Operation	Approved as proposed	Resolution
August 17, 2018	Approval of investment in the Intra-company Employee Welfare Fund in 2018	Approved as proposed	Resolution
	Approval of personnel increase	Approved as proposed	Resolution
	Approval of amendments to the regulation of the Board of Directors	Approved as proposed	Resolution
	Approval to invest in the acquisition of shares for a solar power plant in Calatagan, Philippines	Approved as proposed	Resolution
	Approval of liquidation of KESH, related to the Nghi Son II coal-fired power project in Vietnam	Approved as proposed	Resolution
	Approval of liquidation of KRI, related to the disposal of resource project in Indonesia	Approved as proposed	Resolution
	Approval of themid-to-long term management target (2019-2023)	Approved as proposed	Resolution
	Approval of forming Director Nomination Committee and evaluation standards for the candidates ofnon-standing director	Approved as proposed	Resolution
	Report on the earnings results for the first half of fiscal year 2018	Accepted as reported	Report
September 20, 2018	Approval of amendments to the rules on employment	Approved as proposed	Resolution
	Report on results of collective agreement	Accepted as reported	Report
	Report on results of external and internal audits for the second quarter of 2018	Accepted as reported	Report

4. Major Activities and Attendance Status ofNon-standing directors

Date

Agenda

Ahn, Choong- Yong

Lee, Gang- Hee

Cho, Jeon- Hyeok

Choi, Ki- Ryun

Sung, Tae- Hyun

Koo, Ja- Yoon

Kim, Joo- Suen

Kim, Ji- Hong

Kim, Chang- Joon

Yang, Bong- Ryull

Kim, Jwa- Kwan

Jung, Yeon- Gil

Noh, Geum- Sun

Choi, Seung- Kook

Park, Cheol- Su

February 8, 2018

Approval of amendments to the Electricity Usage Agreement and Rules for Operation

For

For

For

For

Absent

For

For

For

Before Appointment

February 23, 2018

Approval of the maximum aggregate amount of remuneration for directors in 2018

For

For

For

For

For

For

For

For

—

—

—

—

—

—

—

Approval of the relocation plan of materials center in Gyeonggi District Division

For

For

For

For

For

For

For

For

—

—

—

—

—

—

—

Approval of consolidated and separate financial statements for the fiscal year 2017

For

For

For

For

For

For

For

For

—

—

—

—

—

—

—

Approval to call for the annual general meeting of shareholders for the fiscal year 2017

For

For

For

For

For

For

For

For

—

—

—

—

—

—

—

Report on operating plan of the Act on the Control and Supervision on Nuclear Power Suppliers, etc. for the Prevention of Corruption in the Nuclear Power Industry (2018-2019)

Agenda for Report

Report on the annual management of commercial papers in 2017

Agenda for Report

Report on internal control over financial reporting for the fiscal year 2017

Agenda for Report

Evaluation report on internal control over financial reporting for the fiscal year 2017

Agenda for Report

Report on the audit result for fiscal year 2017

Agenda for Report

February 27, 2018

Approval to close the shareholders’ registry for extraordinary general meeting of shareholders

Absent

For

Absent

Absent

Absent

For

For

For

—

—

—

—

—

—

—

March 15, 2018

Approval of amendments to investment structure and guarantee for Nghi Son II coal-fired power plant in Vietnam

For

For

For

For

Absent

Absent

For

For

—

—

—

—

—

—

—

Approval of liquidation of KEPCO Canada Energy(KCE), a subsidiary located in Canada

For

For

For

For

Absent

Absent

For

For

—

—

—

—

—

—

—

Approval of the construction of a new Integrated Gangwon District Division Office Building

For

For

For

For

Absent

Absent

For

For

—

—

—

—

—

—

—

Approval of the Statement of Appropriation of Retained Earnings for fiscal year 2017

For

For

For

For

Absent

Absent

For

For

—

—

—

—

—

—

—

March 26, 2018

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018

For

For

For

For

Absent

Retired

For

Absent

For

—

—

—

—

—

—

April 20, 2018

Approval of amendments to the regulation for employee remuneration and welfare

Retired

Absent

For

—

For

For

For

For

For

For

—

—

—

Approval of forming Director Nomination Committee and evaluation standards for the candidates ofnon-standing directors

—

—

—

Absent

For

—

For

For

For

For

For

For

—

—

—

Approval to close the shareholders’ registry for extraordinary general meeting of shareholders

—

—

—

Absent

For

—

For

For

For

For

For

For

—

—

—

May 18, 2018

Approval of forming Director Nomination Committee and evaluation standards for the candidate of a standing director and member of the Audit Committee

—

—

—

For

For

—

For

For

Absent

For

For

For

—

—

—

Approval to close the shareholders’ registry for extraordinary general meeting of shareholders

—

—

—

For

For

—

For

For

Absent

For

For

For

—

—

—

Approval of amendment to the rules on employment

—

—

—

For

For

—

For

For

Absent

For

For

For

—

—

—

Report on results of external and internal audits for the first quarter of 2018

Agenda for Report

June 15, 2018

Approval of investment in the mutual growth and cooperation fund for agriculture and fishery in 2018

—

—

—

Retired

Retired

—

Retired

For

For

For

For

For

For

For

For

Approval of plans for the sales of real estate holdings within combined heat and power plant in Bucheon

—

—

—

—

—

—

—

For

For

For

For

For

For

For

For

Approval of 8th long-term plan for power transmission and substation facilities

—

—

—

—

—

—

—

For

For

For

For

For

For

For

For

Approval of the establishment of a new regional office

—

—

—

—

—

—

—

For

For

For

For

For

For

For

For

Approval of amendment to the regulation of the Board of directors

—

—

—

—

—

—

—

For

For

For

For

For

For

For

For

June 29, 2018

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018

—

—

—

—

—

—

—

For

For

For

Absent

For

For

For

For

July 12, 2018

Approval to call for the extraordinary general meeting of shareholders for the fiscal year 2018

—

—

—

—

—

—

—

For

Absent

Absent

Absent

Absent

For

For

For

August 7, 2018

Approval of amendments to the Electricity Usage Agreement and Rules for Operation

—

—

—

—

—

—

—

Absent

For

For

For

Absent

For

For

For

August 17, 2018

Approval of investment in the Intra-company Employee Welfare Fund in 2018

—

—

—

—

—

—

—

For

For

For

Absent

For

For

For

For

Approval of personnel increase

—

—

—

—

—

—

—

For

For

For

Absent

For

For

For

For

	Approval of amendments to the regulation of the Board of Directors	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Approval to invest in the acquisition of shares for a solar power plant in Calatagan, Philippines	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Approval of liquidation of KESH, related to the Nghi Son II coal-fired power project in Vietnam	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Approval of liquidation of KRI, related to the disposal of resource project in Indonesia	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Approval of themid-to-long term management target (2019-2023)	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Approval of forming Director Nomination Committee and evaluation standards for the candidates ofnon-standing director	—	—	—	—	—	—	—	For	For	For	Absent	For	For	For	For
	Report on the earnings results for the first half of fiscal year 2018	Agenda for Report
September 20, 2018	Approval of amendments to the rules on employment	—	—	—	—	—	—	—	Absent	For	For	For	For	For	Absent	For
	Report on results of collective agreement	Agenda for Report
	Report on results of external and internal audits for the second quarter of 2018	Agenda for Report
Attendance Rate (%)		80	100	80	71.4	42.9	75	100	76.9	77.8	87.5	62.5	75	100	83.3	100

5. Major activities of the Audit Committee

Date	Agenda	Results	Type
January 19, 2018	Audit plans for 2018	Approved as proposed	Resolution
	Education plans for auditors for 2018	Accepted as reported	Report
February 23, 2018	Amendments to Code of Conduct and Guideline for Practice for KEPCO executives and staff members	Approved as proposed	Resolution
	Report on the audit result for 2017	Accepted as reported	Report
	Report on internal control over financial reporting for the fiscal year 2017	Accepted as reported	Report
	Evaluation report on internal control over financial reporting for the fiscal year 2017	Accepted as reported	Report
March 15, 2018	Auditor’s report on the agendas for the annual general meeting of shareholders	Approved as proposed	Resolution
	Approval of selection of independent auditors of subsidiaries	Approved as proposed	Resolution
	Independent auditor’s report on the auditing results for the consolidated and separate financial statements for the fiscal year 2017	Accepted as reported	Report
April 6, 2018	Auditor’s report on the agendas for the extraordinary general meeting of shareholders	Approved as proposed	Resolution
April 20, 2018	Approval of selection of independent auditors of subsidiaries	Approved as proposed	Resolution
	Report on the Form20-F for the fiscal year 2017 to be filed with the U.S. Securities and Exchange Commission	Accepted as reported	Report
	Auditor’s report for the fiscal year 2017 in accordance with U.S. accounting principles	Accepted as reported	Report

May 18, 2018	Approval of selection of independent auditors of subsidiaries	Approved as proposed	Resolution
	Report on results of external and internal audits during the first quarter of 2018	Accepted as reported	Report
July 11, 2018	Auditor’s report on the agendas for the extraordinary general meeting of shareholders	Approved as proposed	Resolution
July 20, 2018	Auditor’s report on the agendas for the extraordinary general meeting of shareholders	Approved as proposed	Resolution
August 17, 2018	Approval to appoint the chairman of the Audit Committee	Approved as proposed	Resolution
	Independent auditor’s report on the audit plans for the fiscal year 2018	Accepted as reported	Report
September 20, 2018	Amendments to Code of Conduct and Guideline for Practice for KEPCO executives and staff members	Approved as proposed	Resolution
	Approval of joint selection of independent auditors for the period from fiscal year 2019 to 2021	Approved as proposed	Resolution
	Report on results of external and internal audits during the second quarter of 2018	Accepted as reported	Report
	Approval of selection of independent auditors of subsidiaries	Approved as proposed	Resolution
	Prior approval ofnon-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution

The audit department, organized under the supervision of the Audit Committee, conducts internal audit over the entire company and takes administrative measures as appropriate in accordance with relevant internal regulations. KEPCO’s District Divisions and Branch Offices also have separate audit teams which conduct internal inspections with respect to the relevant divisions or offices.

V. Shareholders

1. List of shareholders as of June 4, 2018

		Number of shareholders		Shares owned		Percentage of total (%)
Government of the Republic of Korea			1		116,841,794		18.20
Korea Development Bank			1		211,235,264		32.90
Subtotal			2		328,077,058		51.10
National Pension Service			1		41,259,764		6.43
Public(non-Koreans)	Common shares		1,241		152,674,876		23.78
	American depositary shares (ADS)		1		33,227,098		5.18
Public (Koreans)	Corporate		1,293		36,872,238		5.74
	Individual		427,823		49,853,043		7.77
Total			430,361		641,964,077		100.00

• Percentages are based on issued shares of common stock.

• All of our shareholder have equal voting rights.

• Citibank, N.A. is our depositary bank and each ADS representsone-half of one share of our common stock.

VI. Directors and employees as of and for a nine-month period ended September 30, 2018

(KEPCO Only)

1. Directors

	(In thousands of Won)
Type	Number of directors		Total remuneration		Average remuneration per person		Remarks
Standing director		5		688,082		151,043		Excluding the members of Audit Committee
Non-standing director		6		135,000		22,500
Member of Audit Committee		3		243,648		84,340		—
Total		14		1,066,730		—		—

2. Employees

(In thousands of Won)

Type	Number of employees						Average continuous service year		Total salaries		Average salaries per person
	Regular		Non- regular		Total
Male		17,201		285		17,486		17.2		1,162,698,237		66,493
Female		4,215		72		4,287		13.5		216,314,675		50,458
Total		21,416		357		21,773		16.5		1,379,012,912		63,336

VII. Other Information Necessary for the Protection of Investors

1. Summary of shareholder’s meetings for a nine-month period ended September 30, 2018

Type	Agenda	Results
Annual General Meeting held on March 30, 2018	Approval of financial statements for the fiscal year 2017	Approved as proposed
	Approval of the maximum aggregate amount of remuneration for directors in 2018	Approved as proposed
Extraordinary General Meeting held on April 10, 2018	Election of President and CEO - Candidates : 1) JongKap KIM 2) Byun,Jun-Yeon	JongKap KIM was appointed as the President and CEO
Extraordinary General Meeting held on July 16, 2018	Election of four standing directors	Approved as proposed
	Election of twonon-standing directors and members of the audit committee	Approved as proposed
Extraordinary General Meeting held on July 30, 2018	Election of a standing director	Approved as proposed
	Election of a standing director and member of the audit committee	Approved as proposed

2. Pending legal proceedings as of September 30, 2018

	(In billions of Won)
Type	Number of lawsuits		Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants		585		573
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs		180		736

3. Criminal convictions and penalties for current and former KEPCO executive and employees

The current and former KEPCO executive and employees below have been convicted on charges of bribery by the trial court on November 9, 2018.

Date of Prosecution	Accused person	Conviction (Trial Court)
May 23, 2018	Former Executive	Bribery : 5 years’ imprisonment, 90 million Korean Won of additional collection, 180 million Korean Won of penalty
May 23, 2018	Current Director General	Bribery : 6 years’ imprisonment, 70 million Korean Won of additional collection, 140 million Korean Won of penalty
May 23, 2018	Current General Manager	Bribery : 5 years’ imprisonment, 100 million Korean Won of additional collection, 180 million Korean Won of penalty

Internal disciplinary proceedings for the convicted employees are currently ongoing at KEPCO’s disciplinary committee, and convicted employees are expected to be terminated once the internal disciplinary proceedings are completed.

To prevent recurrence of similar cases, the following measures will be enforced by KEPCO:

- 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, and

- increasing the punishment and penalties for employee corruption

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

By:	/s/ Kim, Kab-soon
Name:	Kim, Kab-soon
Title:	Vice President

Date: December 17, 2018

KOREA ELECTRIC POWER CORPORATION

AND SUBSIDIARIES

Consolidated Interim Financial Statements

September 30, 2018

(Unaudited)

(With Independent Auditors’ Review Report Thereon)

INDEX TO FINANCIAL STATEMENTS

	Page
Independent Auditors’ Review Report		1
Consolidated Interim Statements of Financial Position		2
Consolidated Interim Statements of Comprehensive Income (Loss)		4
Consolidated Interim Statements of Changes in Equity		6
Consolidated Interim Statements of Cash Flows		8
Notes to the Consolidated Interim Financial Statements		10

Independent Auditors’ Review Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders

Korea Electric Power Corporation:

Reviewed Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (the “Company”), which comprise the consolidated interim statement of financial position as of September 30, 2018, the consolidated interim statements of comprehensive income (loss) for the three and nine-month periods ended September 30, 2018 and 2017, changes in equity and cash flows for the nine-month periods ended September 30, 2018 and 2017 and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Interim Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with Korean International Financial Reporting Standards(“K-IFRS”) 1034 ‘Interim Financial Reporting’ and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Review Responsibility

Our responsibility is to issue a report on these consolidated interim financial statements based on our reviews. We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Review Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements referred to above are not prepared, in all material respects, in accordance withK-IFRS 1034 ‘Interim Financial Reporting’.

Other Matters

The procedures and practices utilized in the Republic of Korea to review such consolidated interim financial statements may differ from those generally accepted and applied in other countries.

We have previously audited, in accordance with Korean Standards on Auditing, the consolidated statement of financial position of the Company as of December 31, 2017, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, and we expressed an unqualified opinion on those consolidated financial statements in our report dated March 15, 2018. The accompanying consolidated financial position of the Company as of December 31, 2017, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

KPMG Samjong Accounting Corp.

Seoul, Korea

November 14, 2018

This report is effective as of November 14, 2018, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of September 30, 2018 and December 31, 2017

(Unaudited)

In millions of won	Note		September 30, 2018		December 31, 2017
Assets
Current assets
Cash and cash equivalents		5,6,7,44	W	2,925,047		2,369,739
Current financial assets, net		5,10,11,12,44		4,366,482		1,958,357
Trade and other receivables, net		5,8,14,20,44,45,46		7,246,008		7,928,972
Inventories, net		13		6,516,678		6,002,086
Income tax refund receivables		40		28,024		100,590
Currentnon-financial assets		15		796,167		753,992
Assetsheld-for-sale		41		22,134		27,971
Total current assets				21,900,540		19,141,707
Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,44		2,263,329		2,038,913
Non-current trade and other receivables, net		5,8,14,44,45,46		1,814,109		1,754,797
Property, plant and equipment, net		18,27,48		152,029,896		150,882,414
Investment properties, net		19,27		181,377		284,714
Goodwill		16		2,582		2,582
Intangible assets other than goodwill, net		21,27,45		1,176,556		1,187,121
Investments in associates		4,17		4,051,992		3,837,421
Investments in joint ventures		4,17		1,757,869		1,493,275
Deferred tax assets		40		1,159,894		919,153
Non-currentnon-financial assets		15		437,025		246,818
Totalnon-current assets				164,874,629		162,647,208
Total Assets		4	W	186,775,169		181,788,915

(Continued)

��

2

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of September 30, 2018 and December 31, 2017

(Unaudited)

In millions of won	Note		September 30, 2018			December 31, 2017
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,44,46	W	5,294,815			5,999,521
Current financial liabilities, net		5,11,23,44,46		9,235,946			9,194,552
Income tax payables		40		146,182			508,402
Currentnon-financial liabilities		20,28,29		6,080,495			5,584,308
Current provisions		26,44		1,825,928			2,137,498
Total current liabilities				22,583,366			23,424,281
Non-current liabilities
Non-current trade and other payables, net		5,22,24,44,46		3,195,783			3,223,480
Non-current financial liabilities, net		5,11,23,44,46		52,607,527			45,980,899
Non-currentnon-financial liabilities		28,29		8,103,420			8,072,434
Employee benefits liabilities, net		25,44		1,856,609			1,483,069
Deferred tax liabilities		40		9,999,846			10,415,397
Non-current provisions		26,44		16,491,241			16,224,714
Totalnon-current liabilities				92,254,426			85,399,993
Total Liabilities		4	W	114,837,792			108,824,274
Equity
Contributed capital		1,30,44
Share capital			W	3,209,820			3,209,820
Share premium				843,758			843,758
				4,053,578			4,053,578
Retained earnings		31
Legal reserves				1,604,910			1,604,910
Voluntary reserves				35,906,267			34,833,844
Unappropriated retained earnings				14,837,014			16,931,804
				52,348,191			53,370,558
Other components of equity		33
Other capital surplus				1,233,815			1,233,793
Accumulated other comprehensive loss				(303,655	)		(271,457	)
Other equity				13,294,973			13,294,973
				14,225,133			14,257,309
Equity attributable to owners of the controlling company				70,626,902			71,681,445
Non-controlling interests		16,32		1,310,475			1,283,196
Total Equity			W	71,937,377			72,964,641
Total Liabilities and Equity			W	186,775,169			181,788,915

See accompanying notes to the consolidated interim financial statements.

3

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three and nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won, except per share information			September 30, 2018						September 30, 2017
	Note		Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Sales		4,34,44,46
Sales of goods			W	15,794,339			43,507,145			15,357,130			41,588,651
Sales of services				116,530			263,812			84,070			243,904
Sales of construction services		20		357,067			1,231,661			625,401			2,070,984
Revenue related to transfer of assets from customers				141,908			450,429			121,126			356,336
				16,409,844			45,453,047			16,187,727			44,259,875
Cost of sales		13,25,42,46
Cost of sales of goods				(13,937,633	)		(41,502,856	)		(12,078,031	)		(35,027,367	)
Cost of sales of services				(130,643	)		(364,732	)		(125,225	)		(357,575	)
Cost of sales of construction services				(333,997	)		(1,138,468	)		(576,271	)		(1,974,646	)
				(14,402,273	)		(43,006,056	)		(12,779,527	)		(37,359,588	)
Gross profit				2,007,571			2,446,991			3,408,200			6,900,287
Selling and administrative expenses		25,35,42,46		(612,356	)		(1,866,507	)		(635,279	)		(1,817,688	)
Operating profit		4		1,395,215			580,484			2,772,921			5,082,599
Othernon-operating income		36		81,274			259,923			80,247			272,909
Othernon-operating expense		36		(20,912	)		(118,434	)		(17,772	)		(83,270	)
Other gains (losses), net		37		83,063			(548,206	)		(1,746	)		151,255
Finance income		5,11,38		198,407			627,161			203,936			836,190
Finance expenses		5,11,39		(634,402	)		(1,932,660	)		(652,182	)		(2,007,294	)
Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Share in profit (loss) of associates and joint ventures				24,068			376,696			(2,642	)		150,316
Gain on disposal of investments in associates and joint ventures				—			—			—			333
Gain on disposal of investments in subsidiaries				—			3			—			—
Share in loss of associates and joint ventures				(15,430	)		(93,930	)		(195,775	)		(243,273	)
Loss on disposal of investments in associates and joint ventures				(2,538	)		(4,722	)		(73	)		(73	)
				6,100			278,047			(198,490	)		(92,697	)
Profit (loss) before income tax				1,108,745			(853,685	)		2,186,914			4,159,692
Income tax benefit (expense)		40		(371,455	)		421,917			(657,679	)		(1,371,505	)
Profit (loss) for the period			W	737,290			(431,768	)		1,529,235			2,788,187

(Continued)

4

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three and nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won, except per share information			September 30, 2018						September 30, 2017
	Note		Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Other comprehensive income (loss)		5,11,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		25,31	W	(29,003	)		(85,544	)		3,059			(27,233	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		31		(385	)		8,523			2,164			79
Net change in fair value of equity investments at fair value through other comprehensive income		33		8,028			1,483			—			—
Items that are or may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value ofavailable-for-sale financial assets, net of tax		33		—			—			(1,212	)		(109	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		5,11,33		7,758			(27,031	)		2,427			2,376
Foreign currency translation of foreign operations, net of tax		33		(23,649	)		12,679			41,400			(14,916	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		33		(22,558	)		71,401			21,539			(28,551	)
Other comprehensive income (loss), net of tax				(59,809	)		(18,489	)		69,377			(68,354	)
Total comprehensive income (loss) for the period			W	677,481			(450,257	)		1,598,612			2,719,833
Profit (loss) attributable to:
Owners of the controlling company		43	W	708,582			(517,907	)		1,493,036			2,687,115
Non-controlling interests				28,708			86,139			36,199			101,072
			W	737,290			(431,768	)		1,529,235			2,788,187
Total comprehensive income (loss) attributable to:
Owners of the controlling company			W	654,362			(542,490	)		1,553,012			2,630,048
Non-controlling interests				23,119			92,233			45,600			89,785
			W	677,481			(450,257	)		1,598,612			2,719,833
Earnings (loss) per share (in won)		43
Basic and diluted earnings (loss) per share			W	1,104			(807	)		2,326			4,186

See accompanying notes to the consolidated interim financial statements.

5

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won	Equity attributable to owners of the controlling company											Non- controlling interests
	Contributed capital		Retained earnings			Other components of equity			Subtotal						Total equity
Balance at January 1, 2017	W	4,053,578		53,173,871			14,496,244			71,723,693			1,326,852			73,050,545
Total comprehensive income (loss) for the period
Profit for the period		—		2,687,115			—			2,687,115			101,072			2,788,187
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(29,393	)		—			(29,393	)		2,160			(27,233	)
Share in other comprehensive income of associates and joint ventures, net of tax		—		76			—			76			3			79
Items that are or may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value ofavailable-for-sale financial assets, net of tax		—		—			(110	)		(110	)		1			(109	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—		—			2,031			2,031			345			2,376
Foreign currency translation of foreign operations, net of tax		—		—			(821	)		(821	)		(14,095	)		(14,916	)
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			(28,850	)		(28,850	)		299			(28,551	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		(1,271,089	)		—			(1,271,089	)		(61,216	)		(1,332,305	)
Issuance of shares of capital by subsidiaries and others		—		—			(1,137	)		(1,137	)		19,952			18,815
Dividends paid (hybrid bond)		—		—			—			—			(12,324	)		(12,324	)
Balance at September 30, 2017	W	4,053,578		54,560,580			14,467,357			73,081,515			1,363,049			74,444,564

(Continued)

6

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won	Equity attributable to owners of the controlling company											Non- controlling interests
	Contributed capital		Retained earnings			Other components of equity			Subtotal						Total equity
Balance at January 1, 2018	W	4,053,578		53,370,558			14,257,309			71,681,445			1,283,196			72,964,641
Effect of change in accounting policy		—		71,928			(76,851	)		(4,923	)		—			(4,923	)
Adjusted balance at January 1, 2018		4,053,578		53,442,486			14,180,458			71,676,522			1,283,196			72,959,718
Total comprehensive income (loss) for the period
Profit (loss) for the period		—		(517,907	)		—			(517,907	)		86,139			(431,768	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(77,750	)		—			(77,750	)		(7,794	)		(85,544	)
Share in other comprehensive income of associates and joint ventures, net of tax		—		8,514			—			8,514			9			8,523
Net change in fair value of equity investments at fair value through other comprehensive income		—		—			1,482			1,482			1			1,483
Items that are or 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		—		—			(27,275	)		(27,275	)		244			(27,031	)
Foreign currency translation of foreign operations, net of tax		—		—			(954	)		(954	)		13,633			12,679
Share in other comprehensive income of associates and joint ventures, net of tax		—		—			71,400			71,400			1			71,401
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		(507,152	)		—			(507,152	)		(67,353	)		(574,505	)
Issuance of shares of capital by subsidiaries and others		—		—			22			22			10,392			10,414
Changes in consolidation scope		—		—			—			—			2,046			2,046
Dividends paid (hybrid bond)		—		—			—			—			(10,039	)		(10,039	)
Balance at September 30, 2018	W	4,053,578		52,348,191			14,225,133			70,626,902			1,310,475			71,937,377

See accompanying notes to the consolidated interim financial statements.

7

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won	September 30, 2018			September 30, 2017
Cash flows from operating activities
Profit (loss) for the period	W	(431,768	)		2,788,187
Adjustments for:
Income tax expense (benefit)		(421,917	)		1,371,505
Depreciation		7,462,754			7,193,033
Amortization		86,932			88,206
Employee benefit expense		263,171			283,479
Bad debt expense		30,217			17,265
Interest expense		1,407,191			1,340,578
Loss on sale of financial assets		—			1,092
Loss on disposal of property, plant and equipment		27,874			31,251
Loss on abandonment of property, plant, and equipment		371,129			306,698
Loss on impairment of property, plant, and equipment		701,317			—
Loss on disposal of intangible assets		23			79
Increase to provisions		666,152			911,865
Loss (gain) on foreign currency translation, net		273,723			(336,886	)
Gain on valuation of financial assets at fair value through profit or loss		(3,708	)		—
Loss on valuation of financial assets at fair value through profit or loss		4,242			393
Valuation and transaction loss (gain) on derivative instruments, net		(202,721	)		458,618
Share in loss (income) of associates and joint ventures, net		(282,766	)		92,957
Gain on sale of financial assets		(755	)		(564	)
Gain on disposal of property, plant and equipment		(91,132	)		(33,742	)
Gain on disposal of intangible assets		(11	)		(555	)
Gain on disposal of associates and joint ventures		—			(333	)
Loss on disposal of associates and joint ventures		4,722			73
Gain on disposal of subsidiaries		(3	)		—
Interest income		(175,004	)		(155,133	)
Dividend income		(11,811	)		(10,971	)
Impairment loss onavailable-for-sale securities		—			118
Others, net		4,269			(1,273	)
		10,113,888			11,557,753
Changes in:
Trade receivables		1,021,407			962,478
Non-trade receivables		408,108			90,312
Accrued income		567,421			587,653
Other receivables		(770	)		10,680
Other current assets		(384,581	)		(203,631	)
Inventories		(1,037,621	)		(1,194,287	)
Othernon-current assets		(86,162	)		(31,154	)
Trade payables		(409,559	)		(596,785	)
Non-trade payables		(331,637	)		(289,338	)
Accrued expenses		(714,908	)		(924,132	)
Other current liabilities		747,259			329,975
Othernon-current liabilities		227,709			561,396
Investments in associates and joint ventures (dividends received)		122,164			64,078
Provisions		(1,108,053	)		(988,074	)
Payments of employee benefit obligations		(57,652	)		(59,199	)
Plan assets		(11,547	)		(9,570	)
	W	(1,048,422	)		(1,689,598	)

(Continued)

8

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Interim Statements of Cash Flows, Continued

For the nine-month periods ended September 30, 2018 and 2017

(Unaudited)

In millions of won	September 30, 2018			September 30, 2017
Cash generated from operating activities	W	8,633,698			12,656,342
Dividends received(available-for-sale financial assets)		10,518			10,470
Interest paid		(1,351,612	)		(1,460,266	)
Interest received		125,012			143,065
Income taxes paid		(440,884	)		(2,255,007	)
Net cash from operating activities		6,976,732			9,094,604
Cash flows from investing activities
Proceeds from disposals of associates and joint ventures		1,604			1,601
Acquisition of associates and joint ventures		(253,880	)		(182,076	)
Proceeds from disposals of property, plant and equipment		212,338			60,309
Acquisition of property, plant and equipment		(9,166,460	)		(9,566,083	)
Proceeds from disposals of intangible assets		11			941
Acquisition of intangible assets		(67,652	)		(79,074	)
Proceeds from disposals of financial assets		1,335,392			3,518,209
Acquisition of financial assets		(3,868,179	)		(3,750,712	)
Increase in loans		(120,260	)		(178,284	)
Collection of loans		81,730			64,429
Increase in deposits		(412,960	)		(284,358	)
Decrease in deposits		180,050			83,684
Proceeds from disposals of assetsheld-for-sale		17,316			—
Receipt of government grants		23,250			37,899
Net cash inflow from changes in consolidation scope		2,031			—
Other cash outflow from investing activities, net		(39,036	)		(2,529	)
Net cash used in investing activities		(12,074,705	)		(10,276,044	)
Cash flows from financing activities
Proceeds from short-term borrowings, net		377,007			1,542,984
Proceeds from long-term borrowings and debt securities		11,330,658			7,987,614
Repayment of long-term borrowings and debt securities		(5,377,108	)		(7,186,001	)
Payment of finance lease liabilities		(117,572	)		(92,293	)
Settlement of derivative instruments, net		8,405			53,369
Change innon-controlling interest		9,362			20,879
Dividends paid (hybrid bond)		(13,244	)		(12,324	)
Dividends paid		(574,505	)		(1,332,350	)
Other cash outflow from financing activities, net		(87	)		(1,088	)
Net cash from financing activities		5,642,916			980,790
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations		544,943			(200,650	)
Effect of exchange rate fluctuations on cash held		10,365			(35,380	)
Net increase (decrease) in cash and cash equivalents		555,308			(236,030	)
Cash and cash equivalents at January 1		2,369,739			3,051,353
Cash and cash equivalents at September 30	W	2,925,047			2,815,323

See accompanying notes to the consolidated interim financial statements.

9

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

September 30, 2018

(Unaudited)

1. Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in Korean International Financial Reporting Standards(“K-IFRS”) 1110 ‘Consolidated Financial Statements’, was incorporated on January 1, 1982 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 listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju,Jeollanam-do.

As of September 30, 2018, KEPCO’s share capital amounts toW3,209,820 million and KEPCO’s shareholders are as follows:

	Number of shares		Percentage of ownership
Government of the Republic of Korea		116,841,794		18.20	%
Korea Development Bank		211,235,264		32.90	%
Other (*)		313,887,019		48.90	%
		641,964,077		100.00	%

(*) The number of shares held by foreign shareholders are 185,901,974 shares (28.96%) as of the most recent closing date of Register of Shareholders (June 4, 2018).

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

(1) Statement of compliance

These consolidated interim financial statements have been prepared in accordance withK-IFRS 1034 ‘Interim Financial Reporting’ as part of the period covered by KEPCO and subsidiaries’ (the “Company”)K-IFRS annual financial statements.

(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:

• derivative financial instruments are measured at fair value

• available-for-sale financial assets 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 (“Won”), which is KEPCO’s functional currency and the currency of the primary economic environment in which the Company operates.

10

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments

The preparation of the consolidated financial statements in conformity withK-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.

The followings are the key assumptions concerning the future, 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.

(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 does not realize estimated future taxable income during the carryforward periods.

(iii) Valuations of financial instruments at fair values

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial andnon-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the financial officer.

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 ofK-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).

11

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

(v) Unbilled revenue

Energy delivered but not metered nor billed is calculated at the reporting date and is estimated based on consumption statistics and selling price estimates. Determination of the unbilled revenues at the end of the reporting period is sensitive to the estimated consumptions and prices based on statistics. Unbilled revenue recognized for the nine-month periods ended September 30, 2018 and 2017 areW1,131,690 million andW1,266,646 million, respectively.

(vi) Construction contracts

For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress towards complete satisfaction of that performance obligation. The Company applies a single method of measuring progress for each performance obligation satisfied over time and applies that method consistently to similar performance obligations and in similar circumstances. Revenue and costs are recognized based on the progress towards complete satisfaction of a performance obligation utilizing the cost-based input method at the end of the reporting period. 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 in the future, costs incurred which are not related to the performance obligation, changes in the Company’s efforts or inputs due to change of the performance obligation, etc. Total revenue is measured based on an agreed contract price; however, it may fluctuate due to the variation of performance obligations. The measurement of revenue is affected by various uncertainties resulting from unexpected future events.

(vii) Early closure of Wolsong unit 1 nuclear power plant and changes in new nuclear power plant construction

The30-year of designed life of Wolsong unit 1 nuclear power plant of the Company had expired on November 20, 2012. On February 27, 2015, however, it was approved by the Nuclear Safety and Security Commission (NSSC) to continue its operation until November 20, 2022.

According to the Eighth Basic Plan for Electricity Supply and Demand announced by the Ministry of Trade, Industry and Energy in 2017, Wolsong unit 1 nuclear power plant is 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 the Wolsong unit 1 on the grounds that its deficit was increasing and its economic efficiency was low due to the unoptimistic utilization rate. In addition, KHNP has also decided to suspend construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2 pursuant to the government policy. For this reason, the Company recognized impairment loss and other expenses as described in note 18, note 36 and note 49.

Among the new nuclear power plants under construction, Shin-Hanwool unit 3 and 4, for which approval for power generation business was previously obtained, are not included in the decision to suspend construction of the board of directors of KHNP. However, considering the decision to shut down Wolsong unit 1 and suspended construction of Cheonji unit 1 and 2 and Daejin unit 1 and 2, it is highly likely that the construction of Shin-Hanwool unit 3 and 4 will be suspended according to the government’s policy. For this reason, the Company recognized impairment loss as described in note 18 and note 49, as the Company believes that there was a significant change in its operating environment as of the date of the board of directors of KHNP’s decision.

The Korean government plans to refund to the Company for reasonable expenditures incurred in relation to thephase-out of nuclear power plants in accordance with the energy transformation policy established by Korean government. In doing so, after discussions with relevant government agencies and upon approval by the Congress, the Korean government is considering to use available resource including utilizing relevant fund to make the refund. Also, Korean government has stated that it plans to establish relevant legal basis of providing refund including utilizing available resource, if necessary.

12

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies

The Company has newly applied the following new standards for annual periods beginning on January 1, 2018.

(i) K-IFRS 1109 ‘Financial Instruments’

The Company has adoptedK-IFRS 1109 ‘Financial Instruments’, since January 1, 2018.K-IFRS 1109 sets out the requirements for recognizing and measuring financial assets, financial liabilities and certain contracts to buy or sellnon-financial items. It replaces existing guidance inK-IFRS 1039 ‘Financial Instruments: Recognition and Measurement’.

The Company has taken an exemption not to restate comparative information for prior periods upon adoption ofK-IFRS 1109. Accordingly, the information presented for 2017 has not been restated and differences in the carrying amounts of financial instruments resulting from the adoption ofK-IFRS 1109 are recognized in retained earnings at January 1, 2018.

Based on the result of the detailed assessment, the impacts on the Company’s financial assets (excluding derivative instruments) on the date of initial application (January 1, 2018) are as follows:

In millions of won
Original classification under K-IFRS 1039	New classification under K-IFRS 1109	Original carrying amount under K-IFRS 1039		New carrying amount under K-IFRS 1109
Financial assets at FVTPL	FVTPL	W	111,512		111,512
Loans and receivables	Amortized cost		15,203,663		14,405,570
Loans and receivables	FVTPL		—		791,324
Available-for-sale financial assets	FVOCI		699,833		476,941
Available-for-sale financial assets	FVTPL		—		222,892
Held-to-maturity investments	Amortized cost		3,144		3,144
Total financial assets (excluding derivative instruments)		W	16,018,152		16,011,383

The impacts on the Company’s equity including retained earnings on the date of initial application (January 1, 2018) are as follows:

In millions of won
Type	Equity attributable to owners of the controlling company						Non- controlling interests		Total equity
	Retained earnings			Other components of equity
Reclassification of cumulative gain or loss ofavailable-for-sale financial assets	W	76,851			(76,851	)		—		—
Remeasurement of expected credit loss
- Trade and other receivables		(6,769	)		—			—		(6,769	)
- Income tax effect		1,846			—			—		1,846
Total	W	71,928			(76,851	)		—		(4,923	)

The detailed accounting policies underK-IFRS 1109 are described in note 3.(21).

13

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies, continued

(ii) K-IFRS 1115 ‘Revenue from Contracts with Customers’

K-IFRS 1115 sets out a comprehensive framework for determining whether revenue is recognized, the extent of revenue recognized, and when revenue is recognized. It replaces existing revenue recognition guidance, includingK-IFRS 1018 ‘Revenue’,K-IFRS 1011 ‘Construction Contracts’,K-IFRS 2031 ‘Revenue-Barter Transactions Involving Advertising Services’,K-IFRS 2113 ‘Customer Loyalty Programs’,K-IFRS 2115 ‘Agreements for the Construction of Real Estate’,K-IFRS 2118 ‘Transfers of Assets from Customers’.

The Company has retrospectively applied the standard and recognized the cumulative effect of the adoption ofK-IFRS 1115 at the date of initial application (January 1, 2018) and has retrospectively appliedK-IFRS 1115 to only those contracts that were not completed as of the date of initial application (January 1, 2018). Accordingly, the Company has not restated the comparative periods.

The Company believes that there is no significant impact on the Company’s consolidated interim financial statements. The detailed accounting policies underK-IFRS 1115 are described in note 3.(7).

(6) New standards and amendments not yet adopted

(i) K-IFRS 1116 ‘Lease’

K-IFRS 1116 replacesK-IFRS 1017 ‘Lease’ andK-IFRS 2104 ‘Determining whether an Arrangement contains a Lease’. This standard is effective for annual reporting periods beginning on or after January 1, 2019, with early adoption permitted ifK-IFRS 1115 ‘Revenue from Contracts with Customers’ has also been applied.

UnderK-IFRS 1116, a lessee shall apply this standard to its leases either:

(a) retrospectively to each prior reporting period presented applyingK-IFRS 1008 ‘Accounting Policies, Changes in Accounting Estimates and Errors’; or

(b) retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application.

The Company has not yet determined the transition approach forK-IFRS 1116.

K-IFRS 1116 provides a single lessee accounting model in which the lessee recognizes lease related assets and liabilities in the statement of financial position. A lessee is required to recognize aright-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. Lease recognition may be exempted for short-term leases and leases for which the underlying asset is of low value. Accounting for a lessor is similar to the existing standard that classifies each of its leases as either an operating lease or a finance lease.

Upon adoption ofK-IFRS 1116, the nature of the costs associated with the lease will change as the operating lease payments recognized based on a straight-line basis will change to depreciation expense of aright-of-use asset and interest expense of the lease liability and no significant impact is expected on the Company’s finance lease.

The Company plans to conduct a detailed assessment of the potential impact from the application ofK-IFRS 1116 during the year ending December 31, 2018.

14

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies

The significant accounting policies applied by the Company in preparation of its consolidated financial statements are included below. Except as described in note 2.(5), 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, 2017.

(1) Basis of consolidation

The consolidated financial statements are the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. Subsidiaries are 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 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 thenon-controlling interests even if this results in thenon-controlling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Company.

Transactions within the Company are eliminated during the 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 thenon-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which thenon-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 anynon-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 income 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 underK-IFRS 1109 ‘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 income or loss as incurred.

15

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(2) Business combinations, continued

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 withK-IFRS 1012 ‘Income Taxes’ andK-IFRS 1019 ‘Employee Benefits’, respectively;

• assets (or disposal groups) that are classified as held for sale in accordance withK-IFRS 1105‘Non-current Assets Held for Sale’ are measured in accordance with that standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of anynon-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 anynon-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 income 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 thenon-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement can be elected on atransaction-by-transaction basis. Other types ofnon-controlling interests are measured at fair value or, when applicable, on the basis specified in otherK-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 notre-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 isre-measured at subsequent reporting dates in accordance withK-IFRS 1109 ‘Financial Instruments’, or withK-IFRS 1037 ‘Provisions, Contingent Liabilities and Contingent Assets’, as appropriate, with the corresponding gain or loss being recognized in income or loss.

When a business combination is achieved in stages, the Company’s previously held equity interest in the acquiree isre-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 income 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 income 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.

16

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(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.

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 withK-IFRS 1105‘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 takes place, the Company shall account for any retained interest in associates in accordance withK-IFRS 1109 ‘Financial Instruments’ unless the retained interest continues to be an associates, 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 income 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 income 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 withK-IFRS 1109. 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 income or loss on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to income or loss (as a reclassification adjustment) when it loses significant influence over that associate.

The requirements ofK-IFRS 1028 ’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 withK-IFRS 1036 ‘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 withK-IFRS 1036 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.

17

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(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.

If the Company is a joint operator, 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 relevantK-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 withK-IFRS 1028 ‘Investment in Associates and Joint Ventures’ (refer to note 3.(3)), except when the Company is applicable to theK-IFRS 1105‘Non-current Assets Held for Sale’.

(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 thenon-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 anon-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 previous 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 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.

18

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(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).

(i) Identify the performance obligations in the contract

The Company is engaged in the generation, transmission and distribution of electricity and development of electric power resources, and electricity sales revenue accounts for 95.4% of consolidated revenue for the nine-month period ended September 30, 2018.

UnderK-IFRS 1115, supplying electricity is a series of distinct goods or services identified as a single performance obligation. The Company is also engaged in contracts with customers for transmission and distribution, provision of power generation byproducts, EPC business, O&M, etc. that are identified as different performance obligations for each contract.

(ii) Variable consideration

The Company may be subject to a variation of consideration paid by the customer due to the progressive electricity billing system, discounts on electricity bills for policy purposes, penalties and delinquent payment, etc. The Company estimates an amount of variable consideration by using the expected value method that the Company expects to better predict the amount of consideration to which it will be entitled, and includes in the transaction price some or all of an amount of variable consideration 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.

(iii) Performance obligations satisfied over time

The Company satisfies its performance obligations for contracts such as EPC business, O&M, etc. over time. The Company recognizes revenue based on thepercentage-of-completion on a reasonable basis.

The Company recognizes revenue over time if one of the following criteria is met:

(a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the entity performs;

(b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

(c) the Company’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

19

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(8) Leases

The Company classifies and accounts for leases as either a finance or operating lease, depending on the terms. Leases where the Company assumes substantially all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.

(i) The Company as lessor

Amounts due from lessees under finance leases are recognized as receivables at the amount of the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Company’s net investment outstanding in respect of the leases.

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line basis over the lease term.

(ii) The Company as lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are initially recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognized immediately in income or loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on borrowing costs. Contingent rentals are recognized as expenses in the periods in which they are incurred.

Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentives is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

(iii) Determining whether an arrangement contains a lease

At inception of an arrangement, the Company determines whether the arrangement is or contains a lease.

At inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by the arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Company concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognized at an amount equal to the fair value of the underlying asset.

20

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(9) 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 assets and liabilities denominated in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate.Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

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.(23) Derivative financial instruments, including hedge accounting); and

• 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 income 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.

When a foreign operation is disposed of, the relevant amount in the translation is transferred to profit or loss as part of the gain or loss on disposal.

(10) 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 income or loss in the period in which they are incurred.

21

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(11) 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 purchase, construct or otherwise acquire 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 income

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.

(12) 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).

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 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.

22

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(13) 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, andnon-taxable ornon-deductible items from the accounting profit.

(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.

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.

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 income 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.

23

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(14) 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 theday-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 production method to measure and recognizes as expense the economic benefits of the assets.

The estimated useful lives of the Company’s property, plant and equipment are as follows:

	Useful lives (years)
Buildings	8 ~ 40
Structures	8 ~ 50
Machinery	2 ~ 32
Vehicles	3 ~ 8
Loaded heavy water	30
Asset retirement costs	18, 30, 40, 60
Finance lease assets	6 ~ 32
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. As a result of such review, useful lives of certain structures and machinery were changed during the nine-month period ended September 30, 2018. Depreciation expenses are expected to decrease byW25,985 million,W157,333 million andW170,471 million for the year ending December 31, 2018, 2019 and 2020, respectively, and to increase byW353,789 million for the years after December 31, 2020.

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 a property, plant and equipment, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in income or loss when the asset is derecognized.

24

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(15) Investment property

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 theday-to-day servicing are recognized in profit or loss as incurred.

Investment property 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 income or loss in the period in which the property is derecognized.

(16) 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.

(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 income 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.

25

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(16) Intangible assets, continued

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 ~ 20	Straight line
Software	4, 5	Straight line
Industrial rights	5 ~ 10	Straight line
Development expenses	5	Straight line
Leasehold rights	10	Straight line
Others	3 ~ 50 or indefinite	Straight line
Mining right	—	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 income or loss when the asset is derecognized.

(17) Greenhouse gas emissions rights (allowances) and obligations

In connection with Enforcement of Allocation and Trading of Greenhouse Gas Emissions Allowances, the Company applies the following accounting policies for greenhouse gas emissions rights and obligations.

(i) Greenhouse gas emissions rights

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.    

26

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(18) Impairment ofnon-financial assets other than goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets with definite useful lives to determine whether there is any indication that those assets have suffered an impairment loss. 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 apre-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 cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or the cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) 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 cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

(19) 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 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.

(20) 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.

27

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(20) Provisions, continued

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 ofperiod-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 regulation of Persistent Organic Pollutants Management 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 power plant regional support program

Power plant regional 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 power plant regional support program.

(vii) Provisions for transmission and transformation facilities-neighboring areas support program

The Company has present obligation to conduct transmission and transformation facilities-neighboring areas support program under Act on assistance to transmission and transformation facilities-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.

28

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(21) Financial instruments

The Company recognizes financial assets and financial liabilities in the 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.

A regular way purchase or sale of financial assets shall be recognized and derecognized, as applicable, using trade date accounting or settlement date accounting. A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned. The Company derecognizes financial liabilities (or part of financial liabilities) when, and only when, the Company’s obligations are discharged, cancelled or they expire.

(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 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) For equity investment that is not held for trading, the Company may elect to present subsequent changes in fair value in OCI.

• A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: 1) the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and 2) the 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.

• A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: 1) the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) the 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. 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) the those items in OCI to profit or loss subsequently.

• A financial asset is measured at FVTPL if the contractual terms of the financial asset give rise to specified dates to cash flows that are not solely payments of principal and interest on the principal amount outstanding, the debt instrument is held within a business model whose objective is to sell the asset, or the equity instruments that are not elected to be designated as measured at FVOCI.

• Effective interest method

The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as financial assets at fair value through profit or loss.

29

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(21) Financial instruments, continued

(ii) Classification and measurement of financial liabilities

The amount of change in the fair value attributable to the changes in the credit risk of the financial liabilities is presented in OCI, not recognized in profit or loss, and the OCI amount will not be reclassified (recycled) to profit or loss. However, if doing so creates or increase an accounting mismatch, the amount of change in the fair value is recognized in profit or loss.

(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 the12-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

UnderK-IFRS 1109, 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 ofK-IFRS 1115 and that do not contain a significant financing component in accordance withK-IFRS 1115 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.

(22) Service Concession Arrangements

The Company recognizes revenues from construction services and operating services related to service concession arrangements in accordance withK-IFRS 1115 ’ Revenue from Contracts with Customers’.

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.

(23) Derivative financial instruments, including hedge accounting

The Company enters into a variety of derivative financial instruments 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 income or loss immediately unless the derivative is designated and effective as a hedging instrument, in such case the timing of the recognition in income or loss depends on the nature of the hedge relationship.

30

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

3. Significant Accounting Policies, Continued

(23) Derivative financial instruments, including hedge accounting, continued

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 anon-current asset or anon-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 anon-current asset or anon-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 andnon-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 income 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.

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 as income or loss as of that date.

(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 income 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 income or loss in the periods when the hedged item is recognized in income or loss, in the same line of the consolidated statement of comprehensive income as the recognized hedged item. However, when the forecast transaction that is hedged results in the recognition of anon-financial asset or anon-financial liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of thenon-financial asset ornon-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 income or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in income or loss.

31

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 the Company’s the chief operating decision maker, 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 underK-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 arms-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.

32

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three and nine-month periods ended September 30, 2018 and 2017, respectively, are as follows:

In millions of won
September 30, 2018
	Total segment revenue						Intersegment revenue						Revenue from external customers					Operating profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related to associates, joint ventures and subsidiaries
Segment	Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Transmission and distribution	W	16,317,886			45,139,353			257,643			985,287			16,060,243			44,154,066		741,453			(1,398,832	)		868,508			2,679,981			15,313			44,963			178,271			529,806			(13,534	)		230,824
Electiric Power generation (Nuclear)		2,382,955			6,306,984			2,383,676			6,257,756			(721	)		49,228		511,379			734,951			781,788			2,337,629			14,131			24,104			125,893			377,269			5,587			8,101
Electiric Power generation(Non-nuclear)		6,499,838			19,507,672			6,384,969			18,913,196			114,869			594,476		31,972			1,103,328			823,609			2,448,237			8,984			23,503			150,488			433,159			14,599			38,227
Plant maintenance & enigineering service		598,982			1,737,019			516,972			1,491,697			82,010			245,322		54,306			159,534			28,467			85,603			3,336			9,161			1,078			3,034			(552	)		895
Others		256,790			732,024			103,347			322,069			153,443			409,955		58,119			113,479			13,855			41,303			32,987			95,307			31,133			85,556			—			—
Consolidation adjustments		(9,646,607	)		(27,970,005	)		(9,646,607	)		(27,970,005	)		—			—		(2,014	)		(131,976	)		(15,048	)		(43,067	)		(7,863	)		(22,034	)		(6,980	)		(21,633	)		—			—
	W	16,409,844			45,453,047			—			—			16,409,844			45,453,047		1,395,215			580,484			2,501,179			7,549,686			66,888			175,004			479,883			1,407,191			6,100			278,047
In millions of won
September 30, 2017
	Total segment revenue						Intersegment revenue						Revenue from external customers					Operating profit (loss)						Depreciation and amortization						Interest income						Interest expense						Profit (loss) related to associates, joint ventures and subsidiaries
Segment	Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Transmission and distribution	W	16,120,715			44,565,323			459,769			1,658,544			15,660,946			42,906,779		1,960,213			1,517,522			903,915			2,595,732			12,814			36,703			180,589			558,759			(199,050	)		(82,074	)
Electiric Power generation (Nuclear)		2,156,757			7,100,995			2,138,481			7,060,951			18,276			40,044		463,968			1,402,331			767,312			2,475,746			4,957			13,911			121,876			365,627			415			400
Electiric Power generation(Non-nuclear)		5,837,566			17,222,045			5,565,085			16,573,405			272,481			648,640		330,871			2,048,393			761,877			2,150,298			5,343			14,869			136,083			357,520			2,154			(8,737	)
Plant maintenance & enigineering service		601,964			1,782,744			516,222			1,504,769			85,742			277,975		50,561			173,088			27,311			81,655			2,768			7,934			576			2,230			(2,009	)		(2,286	)
Others		163,387			436,725			13,105			50,288			150,282			386,437		28,278			68,753			7,591			22,831			27,000			99,799			30,362			78,907			—			—
Consolidation adjustments		(8,692,662	)		(26,847,957	)		(8,692,662	)		(26,847,957	)		—			—		(60,970	)		(127,488	)		(13,203	)		(45,023	)		(6,102	)		(18,083	)		(6,284	)		(22,465	)		—			—
	W	16,187,727			44,259,875			—			—			16,187,727			44,259,875		2,772,921			5,082,599			2,454,803			7,281,239			46,780			155,133			463,202			1,340,578			(198,490	)		(92,697	)

33

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for thenine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows:

In millions of won
September 30, 2018
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	107,145,966			3,634,490		4,896,502			52,466,956
Electric power generation (Nuclear)		56,252,129			39,902		1,434,912			31,062,240
Electric power generation(Non-nuclear)		49,788,651			2,086,673		2,510,218			27,615,540
Plant maintenance & engineering service		3,312,423			48,796		78,401			1,193,619
Others		8,298,846			—		320,971			3,165,476
Consolidation adjustments		(38,022,846	)		—		(6,892	)		(666,039	)
Consolidated totals	W	186,775,169			5,809,861		9,234,112			114,837,792
In millions of won
December 31, 2017
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	106,540,154			3,366,309		6,606,512			50,757,798
Electric power generation (Nuclear)		55,011,096			11,843		2,083,967			29,252,816
Electric power generation(Non-nuclear)		47,938,084			1,904,224		3,250,524			26,337,295
Plant maintenance & engineering service		3,273,959			48,320		145,779			1,176,627
Others		7,798,400			—		569,447			3,013,743
Consolidation adjustments		(38,772,778	)		—		23,616			(1,714,005	)
Consolidated totals	W	181,788,915			5,330,696		12,679,845			108,824,274

(4) Geographic information

Electricity sales, the main operations of the Company, are conducted in the Republic of Korea where the controlling company is located. The following information on revenue from external customers andnon-current assets is determined by the location of the customers and the assets:

In millions of won	Revenue from external customers								Non-current assets (*2)
	September 30, 2018				September 30, 2017				September 30, 2018		December 31, 2017
Geographical unit	Three-month period ended		nine-month period ended		Three-month period ended		nine-month period ended
Domestic	W	15,903,653		43,862,524		15,429,393		41,845,279		154,844,776		153,436,810
Overseas (*1)		506,191		1,590,523		758,334		2,414,596		4,792,521		4,497,535
	W	16,409,844		45,453,047		16,187,727		44,259,875		159,637,297		157,934,345

(*1) Middle East and other Asian countries make up the majority of overseas revenue andnon-current assets.

(*2) Amount excludes financial assets and deferred tax assets.

(5) Information on significant customers

There is no individual customer comprising more than 10% of the Company’s revenue for the nine-month periods ended September 30, 2018 and 2017.

34

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

5. Classification of Financial Instruments

(1) Classification of financial assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Financial assets measured at FVTPL		Financial assets measured at amortized cost		Financial assets measured at FVOCI		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		2,925,047		—		—		2,925,047
Current financial assets
Held-to-maturity investments		—		957		—		—		957
Derivative assets		18,049		—		—		47,407		65,456
Other financial assets		2,125,199		2,174,870		—		—		4,300,069
Trade and other receivables		—		7,246,008		—		—		7,246,008
		2,143,248		12,346,882		—		47,407		14,537,537
Non-current assets
Non-current financial assets
Available-for-sale financial assets		333,313		—		464,916		—		798,229
Held-to-maturity investments		—		2,226		—		—		2,226
Derivative assets		26,573		—		—		30,283		56,856
Other financial assets		309,336		1,096,682		—		—		1,406,018
Trade and other receivables		—		1,814,109		—		—		1,814,109
		669,222		2,913,017		464,916		30,283		4,077,438
	W	2,812,470		15,259,899		464,916		77,690		18,614,975

In millions of won	December 31, 2017
	Financial assets at fair value through profit or loss		Loans and receivables		Available -for-sale financial assets		Held-to- maturity investments		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		2,369,739		—		—		—		2,369,739
Current financial assets
Held-to-maturity investments		—		—		—		5		—		5
Derivative assets		12,923		—		—		—		12		12,935
Other financial assets		—		1,945,417		—		—		—		1,945,417
Trade and other receivables		—		7,928,972		—		—		—		7,928,972
		12,923		12,244,128		—		5		12		12,257,068
Non-current assets
Non-current financial assets
Available-for-sale financial assets		—		—		699,833		—		—		699,833
Held-to-maturity investments		—		—		—		3,139		—		3,139
Derivative assets		9,097		—		—		—		10,594		19,691
Other financial assets		111,512		1,204,738		—		—		—		1,316,250
Trade and other receivables		—		1,754,797		—		—		—		1,754,797
		120,609		2,959,535		699,833		3,139		10,594		3,793,710
	W	133,532		15,203,663		699,833		3,144		10,606		16,050,778

35

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (using hedge accounting)		Total
Current liabilities
Borrowings	W	—		1,406,487		—		1,406,487
Debt securities		—		7,796,654		—		7,796,654
Derivative liabilities		31,309		—		1,496		32,805
Trade and other payables		—		5,294,815		—		5,294,815
		31,309		14,497,956		1,496		14,530,761
Non-current liabilities
Borrowings		—		2,728,221		—		2,728,221
Debt securities		—		49,517,283		—		49,517,283
Derivative liabilities		128,380		—		233,643		362,023
Trade and other payables		—		3,195,783		—		3,195,783
		128,380		55,441,287		233,643		55,803,310
	W	159,689		69,939,243		235,139		70,334,071

In millions of won	December 31, 2017
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (using hedge accounting)		Total
Current liabilities
Borrowings	W	—		1,165,985		—		1,165,985
Debt securities		—		7,957,300		—		7,957,300
Derivative liabilities		51,090		—		20,177		71,267
Trade and other payables		—		5,999,521		—		5,999,521
		51,090		15,122,806		20,177		15,194,073
Non-current liabilities
Borrowings		—		2,434,624		—		2,434,624
Debt securities		—		43,189,483		—		43,189,483
Derivative liabilities		99,839		—		256,953		356,792
Trade and other payables		—		3,223,480		—		3,223,480
		99,839		48,847,587		256,953		49,204,379
	W	150,929		63,970,393		277,130		64,398,452

36

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income from financial instruments for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won		September 30, 2018						September 30, 2017
		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Cash and cash equivalents	Interest income	W	15,456			36,466			7,666			26,280
Available-for-sale financial assets	Dividends income		—			11,811			—			10,971
	Gain on valuation ofavailable-for-sale financial assets		2,567			5,514			—			—
	Impairment loss onavailable-for-sale financial assets		—			—			—			(118	)
	Gain (loss) on disposal ofavailable-for-sale financial assets		83			755			56			(528	)
Held-to-maturity investments	Interest income		22			63			20			63
Loans and receivables	Interest income		10,835			27,631			11,206			25,702
Trade and other receivables	Interest income		22,403			65,474			16,995			78,215
Short-term financial instruments	Interest income		12,262			35,166			8,440			19,420
Long-term financial instruments	Interest income		5,765			9,769			2,307			5,308
Financial assets at fair value through profit or loss	Interest income		145			435			145			145
	Gain (loss) on valuation of derivatives		(34,999	)		19,604			1,620			(139,023	)
	Gain (loss) on transaction of derivatives		3,063			11,753			2,356			(37,072	)
	Gain (loss) on valuation of financial assets		813			(534	)		—			(393	)
Derivative assets (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)		6,327			117,237			29,674			(131,820	)
	Gain on valuation of derivatives (equity, before tax) (*)		14,603			9,638			4,342			5,075
	Gain (loss) on transaction of derivatives		(301	)		1,306			(31,876	)		(97,152	)
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities		(342,755	)		(992,548	)		(325,412	)		(926,689	)
	Loss on repayments of financial liabilities		—			—			—			(5	)
	Interest expense of trade and other payables		(10,366	)		(33,346	)		(108,118	)		(136,228	)
	Interest expense of others		(126,762	)		(381,297	)		(29,672	)		(277,661	)
	Gain (loss) on foreign currency transactions and translations		77,901			(304,181	)		(48,721	)		491,801
Financial liabilities at fair value through profit or loss	Loss on valuation of derivatives		(29,497	)		(10,942	)		(7,625	)		(9,233	)
	Gain (loss) on transaction of derivatives		11,567			25,515			(15,765	)		(14,511	)
Derivative liabilities (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)		(58,241	)		34,932			36,569			(30,739	)
	Loss on valuation of derivatives (equity, before tax) (*)		(1,091	)		(62,082	)		(699	)		(1,521	)
	Gain on transaction of derivatives		4,079			3,316			951			932

(*) Items are included in other comprehensive income or loss. All other income and gain listed above are included in finance income, and all expense and losses listed above are included in finance expenses in the consolidated statements of comprehensive income.

37

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

6. Restricted Deposits

Restricted deposits as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won		September 30, 2018		December 31, 2017
Cash and cash equivalents	Escrow accounts	W	—		53
	Deposits for government project		10,804		15,365
	Collateral provided for borrowings		86,846		79,569
	Collateral provided for lawsuit		3		2
	Deposits for transmission regional support program		7,365		2,320
Short-term financial instruments	Bidding guarantees		119		119
	Restriction on withdrawal related to‘win-win growth program’ for small and medium enterprises		34,000		34,000
Financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants		178,022		108,512
Non-currentavailable-for-sale financial asset	Decommissioning costs of nuclear power plants		324,952		214,156
Long-term financial instruments	Escrow accounts		1		—
	Guarantee deposits for checking account		—		2
	Guarantee deposits for banking accounts at oversea branches		314		302
	Decommissioning costs of nuclear power plants		319,230		337,234
	Funds for developing small and medium enterprises (*)		200,000		200,000
		W	1,161,656		991,634

(*) Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for high potential businesses as of September 30, 2018 and December 31, 2017.

7. Cash and Cash Equivalents

Cash and cash equivalents as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Cash	W	147		132
Other demand deposits		842,631		968,966
Short-term deposits classified as cash equivalents		476,823		559,239
Short-term investments classified as cash equivalents		1,605,446		841,402
	W	2,925,047		2,369,739

38

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	6,518,188		(210,254	)		—			6,307,934
Other receivables		956,327		(16,761	)		(1,492	)		938,074
		7,474,515		(227,015	)		(1,492	)		7,246,008
Non-current assets
Trade receivables		419,078		(83	)		(532	)		418,463
Other receivables		1,468,248		(65,485	)		(7,117	)		1,395,646
		1,887,326		(65,568	)		(7,649	)		1,814,109
	W	9,361,841		(292,583	)		(9,141	)		9,060,117

In millions of won	December 31, 2017
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	7,499,285		(173,583	)		—			7,325,702
Other receivables		614,212		(9,199	)		(1,743	)		603,270
		8,113,497		(182,782	)		(1,743	)		7,928,972
Non-current assets
Trade receivables		449,191		—			(414	)		448,777
Other receivables		1,380,983		(68,809	)		(6,154	)		1,306,020
		1,830,174		(68,809	)		(6,568	)		1,754,797
	W	9,943,671		(251,591	)		(8,311	)		9,683,769

39

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	308,391		(16,666	)		—			291,725
Accrued income		137,568		—			—			137,568
Deposits		425,373		—			(1,492	)		423,881
Finance lease receivables		70,252		(95	)		—			70,157
Others		14,743		—			—			14,743
		956,327		(16,761	)		(1,492	)		938,074
Non-current assets
Non-trade receivables		133,624		(59,257	)		—			74,367
Accrued income		681		—			—			681
Deposits		360,307		—			(7,117	)		353,190
Finance lease receivables		886,916		(251	)		—			886,665
Others		86,720		(5,977	)		—			80,743
		1,468,248		(65,485	)		(7,117	)		1,395,646
	W	2,424,575		(82,246	)		(8,609	)		2,333,720

In millions of won	December 31, 2017
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	314,256		(9,199	)		—			305,057
Accrued income		54,002		—			—			54,002
Deposits		228,317		—			(1,743	)		226,574
Finance lease receivables		13,067		—			—			13,067
Others		4,570		—			—			4,570
		614,212		(9,199	)		(1,743	)		603,270
Non-current assets
Non-trade receivables		112,983		(59,117	)		—			53,866
Accrued income		182		—			—			182
Deposits		331,071		—			(6,154	)		324,917
Finance lease receivables		849,554		—			—			849,554
Others		87,193		(9,692	)		—			77,501
		1,380,983		(68,809	)		(6,154	)		1,306,020
	W	1,995,195		(78,008	)		(7,897	)		1,909,290

(3) Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. But 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 past defaulted payments.

40

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Trade receivables: (not overdue)	W	6,623,406			7,698,604
Trade receivables: (overdue, not impaired)		—			7,117
Less than 60 days		—			7,117
Trade receivables: (impairment reviewed)		313,860			242,755
Less than 60 days		7,765			—
60 ~ 90 days		54,935			39,070
90 ~ 120 days		18,148			17,502
120 days ~ 1 year		73,298			55,242
Over 1 year		159,714			130,941
		6,937,266			7,948,476
Less: allowance for doubtful accounts		(210,337	)		(173,583	)
Less: present value discount		(532	)		(414	)
	W	6,726,397			7,774,479

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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Other receivables: (not overdue)	W	2,251,404			1,810,075
Other receivables: (overdue, not impaired)		—			47,532
Less than 60 days		—			47,532
Other receivables: (impairment reviewed)		173,171			137,588
Less than 60 days		29,900			—
60 ~ 90 days		9,635			44
90 ~ 120 days		170			1,017
120 days ~ 1year		10,903			11,042
Over 1 year		122,563			125,485
		2,424,575			1,995,195
Less: allowance for doubtful accounts		(82,246	)		(78,008	)
Less: present value discount		(8,609	)		(7,897	)
	W	2,333,720			1,909,290

41

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

8. Trade and Other Receivables, Continued

(6) Changes in the allowance for doubtful accounts for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018						December 31, 2017
	Trade receivables			Other receivables			Trade receivables			Other receivables
Beginning balance	W	173,583			78,008			71,985			87,661
Effect of change in accounting policy		6,641			128			—			—
Bad debt expense		28,457			2,069			126,714			1,778
Write-off		(3,159	)		(166	)		(32,995	)		(3,129	)
Reversal		(1,726	)		—			—			(2,166	)
Others		6,541			2,207			7,879			(6,136	)
Ending balance	W	210,337			82,246			173,583			78,008

9. Available-for-sale Financial Assets

(1) Changes inavailable-for-sale financial assets for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance		Effect of change in accounting policy			Acquisition		Disposal (*1)			Valuation			Impairment		Others		Ending balance
Listed	W	274,453		—			—		(1	)		(14,434	)		—		115		260,133
Unlisted		425,380		(222,892	)		—		—			(51	)		—		2,346		204,783
Beneficiary securities		—		222,892			158,800		(55,350	)		5,514			—		1,457		333,313
		699,833		—			158,800		(55,351	)		(8,971	)		—		3,918		798,229
Short-termavailable-for-sale financial assets	W	—		—			—		—			—			—		—		—
Long-termavailable-for-sale financial assets		699,833		—			158,800		(55,351	)		(8,971	)		—		3,918		798,229

(*1) The Company recognized gain on disposal ofavailable-for-sale financial assets amounted toW755 million from the partial sale of Hanwha-KOSEP New Renewable Energy Private Special Assets Investment Trust 1 and others for the nine-month period ended September 30, 2018.

In millions of won	December 31, 2017
	Beginning balance		Acquisition		Disposal (*1)			Valuation			Impairment			Others			Ending balance
Listed	W	268,171		106		—			8,156			(97	)		(1,883	)		274,453
Unlisted		746,561		233,179		(461,423	)		(2,908	)		(2,616	)		(87,413	)		425,380
		1,014,732		233,285		(461,423	)		5,248			(2,713	)		(89,296	)		699,833
Short-termavailable-for-sale financial assets	W	—		—		—			—			—			—			—
Long-termavailable-for-sale financial assets		1,014,732		233,285		(461,423	)		5,248			(2,713	)		(89,296	)		699,833

(*1) The Company recognized gain and loss on disposal ofavailable-for-sale financial assets amounted toW1,130 million andW2,343 million, respectively, from the partial sale of Hanwha-KOSEP New Renewable Energy Private Special Assets Investment Trust 1 and others for the year ended December 31, 2017.

42

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		145,128		145,128
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		176		176
Korea Line Corp.		18		0.00	%		1		—		—
Namkwang Engineering & Construction Co., Ltd.		46		0.00	%		15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		61		61
PAN ocean Co., Ltd.		1,492		0.00	%		14		8		8
Dongbu Corporation		955		0.02	%		12		9		9
KSP Co., Ltd.		6,324		0.08	%		24		24		24
STX Heavy Industries Co., Ltd.		35,755		0.14	%		191		96		96
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		71,554		65,708		65,708
Energy Fuels Inc.		1,711,814		1.91	%		16,819		6,166		6,166
Baralaba Coal Company Limited		99,763		0.07	%		18,445		—		—
Denison Mines Corp.		58,284,000		10.42	%		84,134		42,283		42,283
Fission 3.0 (*8)		75,000		0.14	%		—		9		9
Fission Uranium Corp.		800,000		0.16	%		785		463		463
							365,843		260,133		260,133
Unlisted(*1)
Intellectual Discovery Co., Ltd.		1,000,000		8.81	%		5,000		954		954
Construction Guarantee (*2)		571		0.02	%		601		838		838
Plant & Mechanical Contractors Financial Cooperative of Korea		97		0.02	%		81		81		81
Fire Guarantee		40		0.01	%		20		20		20
Korea Software Financial Cooperative		5,186		1.02	%		3,301		3,301		3,301
Engineering Financial Cooperative		486		0.05	%		60		60		60
Electric Contractors Financial Cooperative		1,000		0.04	%		215		215		215
Korea Specialty Contractor Financial Cooperative		476		0.01	%		417		417		417
Information & Communication Financial Cooperative		121		0.02	%		26		26		26
Korea Electric Engineers Association		400		0.24	%		40		40		40
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.		99,804		0.23	%		50		50		50
Sungwon Co., Ltd.		589		0.07	%		15		15		15
Hana Civil Engineering Co., Ltd.		23		0.00	%		1		1		1
KC Development Co., Ltd.		839		0.02	%		6		6		6
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.		9		0.34	%		4		4		4
Yongbo Co., Ltd.		61		0.20	%		3		3		3
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 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

43

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	September 30, 2018
	Shares		Ownership			Acquisition cost		Book value		Fair value
AJS Co., Ltd.		12,906		0.23	%	W	32		32		32
SHIN-E B&P Co., Ltd.		119		0.13	%		10		10		10
MSE Co., Ltd.		429		0.13	%		9		9		9
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%		15		15		15
YoungjinHi-Tech Co., Ltd.		2,512		0.25	%		126		21		21
Buyoung Co., Ltd.		270		0.00	%		3		3		3
Ilsuk Co., Ltd.		152		0.17	%		10		10		10
Dongyang Telecom Co., Ltd.		1,760		0.01	%		11		11		11
Jongwon Remicon Co., Ltd.		31		0.18	%		13		13		13
Ace Heat Treating Co., Ltd.		477		1.43	%		72		72		72
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%		—		—		—
Daewoo Development Co., Ltd.		8		0.00	%		—		—		—
Seyang Inc.		537		0.05	%		27		27		27
Seungri Enterprise Co., Ltd.		93		0.05	%		3		3		3
Onggane Food Co., Ltd		5		0.07	%		1		1		1
Shin-E P&C Co., Ltd.		1,569		0.64	%		111		111		111
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
Shinil Engineering Co., Ltd.		887		0.06	%		3		3		3
Biwang Industry Co., Ltd		406		0.04	%		2		2		2
Huimun Co., Ltd.		263		0.26	%		4		4		4
Young Sung Co., Ltd.		89		0.40	%		26		26		26
Yuil Industrial Electronics Co., Ltd.		804		0.32	%		15		15		15
DN TEK Inc.		12,401		0.29	%		61		5		5
Kwang Jin Structure Co., Ltd.		3,072		0.60	%		31		31		31
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
CHONGATTI Agricultural Co., Inc.		57		0.10	%		4		4		4
Hyungji Esquire Co., Ltd.		55		0.02	%		22		22		22
Kolmar Pharma Co., Ltd.		1,426		0.01	%		52		3		3
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. (formerly, EverTechno. Co., Ltd.)		29,424		0.73	%		148		7		7
Autowel Co.,Ltd.		260		0.38	%		14		14		14
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
Crystal Co., Ltd.		22		0.07	%		2		2		2
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
Yoo-A Construction Co., Ltd.		105		0.20	%		11		11		11
Dung Hwan Co., Ltd.		531		0.02	%		5		5		5

44

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	September 30, 2018
	Shares		Ownership			Acquisition cost		Book value		Fair value
Hurim Biocell Co., Ltd.		113		0.00	%	W	5		5		5
Smart Power Co.,Ltd.		133,333		4.35	%		200		200		200
Sunjin Power Tech Co., Ltd.		4,941		0.92	%		247		32		32
Haseung Industries Co.,Ltd.		55		0.62	%		28		28		28
Beer Yeast Korea Inc.		1,388		0.43	%		7		7		7
Daeryung Corporation		207		0.19	%		10		10		10
Korea Bio Red Ginseng Co.,Ltd.		194		0.09	%		10		10		10
B CON Co.,Ltd.		96		1.16	%		6		6		6
Chunil Metal Co.,Ltd.		11		0.15	%		4		4		4
SsangMa Machine Co., Ltd.		4		0.05	%		1		1		1
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
WonIl Co., Ltd.		999		0.15	%		50		50		50
SungLim Industrial Co., Ltd.		29		0.03	%		1		1		1
Korea Minerals Co., Ltd.		191		0.05	%		134		1		1
HyoDong Development Co., Ltd.		119		0.15	%		24		24		24
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
DongKwang SD, Inc.		524		0.23	%		13		13		13
Dong Yang Metal Co., Ltd.		2,951		1.97	%		161		147		147
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
Kitorang Co., Ltd.		165		0.24	%		49		49		49
Sung Kwang Co., Ltd.		23		0.37	%		6		6		6
Hyundai Metal Co., Ltd.		3,757		5.60	%		1,416		1,416		1,416
Shinheung petrol. Co. Ltd.		699		0.14	%		35		35		35
Force TEC Co., Ltd.		3,501		0.02	%		18		18		18
Haisung TPC Co., Ltd.		10,751		0.24	%		71		71		71
Samsung Tech Co., Ltd.		486		1.28	%		97		97		97
Tae Hyung Co., Ltd.		28		0.43	%		20		20		20
Samyangplant Co., Ltd.		323		0.60	%		16		16		16
Younil Metal Co., Ltd.		41		0.21	%		21		21		21
Myungjin Tech Co., Ltd.		20		0.54	%		4		4		4
Hankook Machine Tools Co., Ltd.		719		0.14	%		72		72		72
Hankook Precision Ind Co., Ltd.		110		0.06	%		11		11		11
Borneo International Furniture Co., Ltd. (*6)		2		0.16	%		97		13		13
CJ Paradise Co.,Ltd		24		0.02	%		12		12		12
Han Young Technology Company Co., Ltd.		35		0.00	%		—		—		—
Jungdo Aluminium Co., Ltd.		8,527		0.35	%		128		128		128
STX Offshore & Shipbuilding Co., Ltd		8,622		0.25	%		1,078		1,078		1,078
Ptotronics Co., Ltd.		843		0.42	%		84		84		84
NFT Co., Ltd.		136		0.40	%		8		8		8
Echoroba Co.,Ltd.		157		0.02	%		3		3		3
Hyundaitech Co.,Ltd.		1,363		0.87	%		27		27		27
Alord Corporation Co., Ltd.		239		0.22	%		48		48		48
Daekyung Industry Co.,Ltd.		9,112		0.94	%		13		13		13

45

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	September 30, 2018
	Shares		Ownership			Acquisition cost		Book value		Fair value
Dasan Material Co., Ltd.		29		0.04	%	W	22		22		22
Fish World Co., Ltd.		47		0.21	%		2		2		2
SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%		6		6		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		191		191
IQ Power Asia Inc.		16,179		0.31	%		81		81		81
Youone TBM Engineering & Construction Co., Ltd.		615		0.27	%		31		31		31
KM Leatech		1,648		0.98	%		8		8		8
Wonil T&I Co., Ltd.		229		0.17	%		23		23		23
Semist Co., Ltd.		555		0.80	%		3		3		3
DS POWER Co., Ltd.		580,000		2.34	%		2,900		1,223		1,223
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.		64		0.07	%		4		4		4
Possbell Engineering Co., Ltd.		36		0.64	%		1		1		1
Duke Co., Ltd.		370		0.64	%		6		6		6
AIRTECH Information communication Co., Ltd		2,379		0.60	%		12		12		12
CST co., Ltd.		4,998		0.28	%		100		100		100
Shin Young Metal Co., Ltd.		5,879		0.15	%		29		29		29
TN Inc.		1,416		2.00	%		71		71		71
Shin kwang Industrial Co., Ltd.		884		0.35	%		55		55		55
Kiscom Co., Ltd.		1,493		0.04	%		1		1		1
Seil Electronics Co., Ltd.		2,285		0.41	%		286		286		286
Wonil laser Co., Ltd		157		0.37	%		16		16		16
Pyung Hwa Industrial Co., Ltd.		3,388		3.00	%		85		85		85
Navanakorn Electric Co., Ltd. (*3)		4,442,800		26.93	%		17,216		17,043		17,043
PT. Kedap Saayq		671		10.00	%		18,540		—		—
Set Holding (*4)		1,100,220		2.50	%		229,255		171,242		171,242
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,495		2,495
KODE NOVUS 1 LLC (*7)		—		10.00	%		—		—		—
Choheung packing Co., Ltd.		61		0.13	%		12		12		12
Jaewoo Co., Ltd.		359		0.24	%		11		11		11
Wooyang HC Co., Ltd		13,750		0.01	%		159		159		159
Sungsan Parts Co., Ltd.		629		0.80	%		63		63		63
KMT Co., Ltd.		1,411		0.93	%		21		21		21
TheYeonriji Co., Ltd.		116		0.10	%		6		6		6
Flusys Co., Ltd.		9		0.08	%		2		2		2
JM Motors Co., Ltd.		202		0.12	%		10		10		10
DaeSung Frontier Co., Ltd.		2,203		1.11	%		221		221		221
DongSeo Electronics Co., Ltd.		323		0.07	%		16		16		16
Daewoo Display Co., Ltd.		177		0.03	%		5		5		5
Yeong-gwang Remicon Co., Ltd.		15		0.00	%		2		2		2
NTS Co., Ltd.		143		0.22	%		36		36		36
AID CO., LTD.		1,212		0.57	%		36		36		36
ChangwonEco-friendly farming corporation		3		0.01	%		—		—		—
Kumo Hitech Co., Ltd.		6,697		0.53	%		3		3		3
							289,875		204,783		204,783

46

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	September 30, 2018
	Shares		Ownership			Acquisition cost		Book value		Fair value
Beneficiary Securities
Korea investment – Korea EXIM Bank CERs Private Special Asset Investment Trust I (*1)		1,758,731,002		14.18	%	W	1,752		572		572
Troika Overseas Resource Development Private Equity Firm (*1)		13,340,012,100		3.66	%		13,340		1,553		1,553
IBK-AUCTUS Green Growth Private Equity Firm (*1)		152		6.29	%		41		41		41
Global Dynasty Overseas Resource Development Private Equity Firm (*1)		2,242,437,289		7.46	%		2,242		2,242		2,242
Hanwha-KOSEP New Renewable Energy Private Special Assets Investment Trust 1 (*1)		3,809,929,243		5.00	%		3,953		3,953		3,953
Hanwha KT Master Lease Private Special Investment Trust (*5)		—		—			22,778		23,310		23,310
Samsung investment – Investment Pool for Public funds 1 (*5)		—		—			53,220		55,455		55,455
Kiwoom Dream Private placement fund 8 (Bond-Derivative) (*5)		—		—			30,000		30,873		30,873
Kyobo Royal-Class Repo Plus Fixed Income 1Y 2nd (*5)		—		—			33,000		33,685		33,685
Kyobo Royal-Class Repo Plus Fixed Income 2Y 1st (*5)		—		—			50,000		51,479		51,479
Kyobo Royal-Class Repo Plus Fixed Income 2YU-1C (*5)		—		—			50,000		50,977		50,977
Kyobo Royal-Class Repo Plus Fixed Income 1YU-1 (*5)		—		—			22,800		23,159		23,159
Kyobo Royal-Class Repo Plus Fixed Income 1YU-7 (*5)		—		—			56,000		56,014		56,014
							339,126		333,313		333,313
						W	994,844		798,229		798,229

(*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 the investment in Construction Guarantee based upon the price which would be applied when the investment is returned. The Company has recognized the difference between its fair value and book value as a gain or loss on valuation ofavailable-for-sale financial assets in other comprehensive income or loss during the nine-month period ended September 30, 2018.

(*3) Although the Company holds more than 20% of the equity shares of these investments, the Company cannot exercise significant influence.

(*4) 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 ofavailable-for-sale financial assets in other comprehensive income or loss during the nine-month period ended September 30, 2018.

(*5) As of September 30, 2018, the Company invested inW324,952 million as beneficiary securities exclusively for payment of decommissioning cost of nuclear power plants. The Company has measured the fair value of the beneficiary securities based on its net asset value.

(*6) The number of shares owned has changed due to capital reduction without refund (3:1) and consolidation of stocks (10,000:1) during the nine-month period ended September 30, 2018

(*7) As described in note 17, this is reclassified toavailable-for-sale financial assets due to loss of significant influence of the Company.

(*8) The number of shares owned has changed due to the stock merge (4:1) during the nine-month period ended September 30, 2018.

47

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		165,277		165,277
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		197		197
Sungjee Construction. Co., Ltd.		10,530		0.01	%		49		8		8
Korea Line Corp.		18		0.00	%		1		—		—
Namkwang Engineering & Construction Co., Ltd.		46		0.00	%		15		—		—
Bumyang Construction Co., Ltd. (*7)		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		72		72
PAN ocean Co., Ltd.		1,492		0.00	%		14		8		8
Dongbu Corporation (*6)		955		0.02	%		12		10		10
KSP Co., Ltd.		6,324		0.08	%		24		24		24
STX Heavy Industries Co., Ltd.		35,749		0.14	%		191		165		165
PT Adaro Energy Tbk		480,000,000		1.50	%		71,554		70,531		70,531
Energy Fuels Inc.		1,711,814		2.38	%		16,819		3,300		3,300
Baralaba Coal Company Limited		99,763		0.07	%		18,445		22		22
Denison Mines Corp.		58,284,000		10.42	%		84,134		34,292		34,292
Fission 3.0		300,000		0.14	%		—		15		15
Fission Uranium Corp.		800,000		0.16	%		785		532		532
							365,891		274,453		274,453
Unlisted(*1)
Korea investment – Korea EXIM Bank CERs Private Special Asset Investment Trust I		1,758,731,002		14.18	%		1,752		571		—
Troika Overseas Resource Development Private Equity Firm		13,340,012,100		3.66	%		13,340		1,553		—
IBK-AUCTUS Green Growth Private Equity Firm		152		6.29	%		41		41		—
Global Dynasty Overseas Resource Development Private Equity Firm		2,242,437,289		7.46	%		2,242		2,242		—
Intellectual Discovery, Ltd.		1,000,000		8.81	%		5,000		954		—
Hanwha-KOSEP New Renewable Energy Private Special Assets Investment Trust 1		4,176,751,013		5.00	%		4,328		4,328		—
Construction Guarantee (*2)		571		0.02	%		601		833		833
Plant & Mechanical Contractors Financial Cooperative of Korea		144		0.03	%		126		126		—
Fire Guarantee		40		0.01	%		20		20		—
Korea Software Financial Cooperative		5,186		1.09	%		3,301		3,301		—
Engineering Financial Cooperative		486		0.05	%		60		60		—
Electric Contractors Financial Cooperative		1,000		0.04	%		216		216		—
Korea Specialty Contractor Financial Cooperative		476		0.01	%		417		417		—
Information & Communication Financial Cooperative		121		0.02	%		26		26		—
Korea Electric Engineers Association		400		0.24	%		40		40		—
Samsung investment – Investment Pool for Public funds 1 (*5)		—		—			53,220		53,739		53,739
Korea investment – Hanwha KT Master Lease Private Special Investment Trust (*5)		—		—			26,586		26,591		26,591
Kyobo Royal-Class Repo Plus Fixed Income 1Y 2nd (*5)		—		—			33,000		33,008		33,008
Kyobo Royal-Class Repo Plus Fixed Income 2Y 1st (*5)		—		—			50,000		50,399		50,399
Kyobo Royal-Class Repo Plus A1 ABCP 1Y (*5)		—		—			50,000		50,419		50,419
Hwan Young Steel Co., Ltd.		10,916		0.14	%		1,092		97		—
SAMBO AUTO. Co., Ltd.		15,066		0.02	%		38		38		—
Mobo Co., Ltd.		504		0.00	%		14		14		—

48

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Shares		Ownership			Acquisition cost		Book value		Fair value
Dae Kwang Semiconductor Co., Ltd.		589		0.07	%	W	6		6		—
Sanbon Department Store		828		0.01	%		124		3		—
Miju Steel Mfg. Co., Ltd.		99,804		0.23	%		50		50		—
Sungwon Co., Ltd.		589		0.07	%		15		15		—
Hana Civil Engineering Co., Ltd.		23		0.00	%		1		1		—
KC Development Co., Ltd.		839		0.02	%		6		6		—
IMHWA Corp.		329		0.11	%		5		5		—
DALIM Special Vehicle Co., Ltd.		58		0.08	%		10		10		—
ASA JEONJU Co., Ltd.		34,846		1.34	%		697		69		—
Moonkyung Silica Co., Ltd.		42		0.56	%		—		—		—
Sungkwang Timber Co., Ltd.		9		0.34	%		4		4		—
Yongbo Co., Ltd.		61		0.20	%		3		3		—
HJ Steel Co., Ltd.		218		0.07	%		2		2		—
KS Remicon Co., Ltd.		12		0.04	%		3		3		—
Joongang Platec Co., Ltd.		3,591		0.75	%		72		35		—
Pyungsan SI Ltd.		434		0.01	%		9		9		—
Samgong Development Co., Ltd.		12		0.01	%		7		7		—
Joongang Development Co., Ltd.		540		0.12	%		8		8		—
AJS Co., Ltd.		12,906		0.23	%		32		32		—
SHIN-E B&P Co., Ltd.		119		0.13	%		10		10		—
MSE Co., Ltd.		429		0.13	%		9		9		—
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%		15		15		—
YoungjinHi-Tech Co., Ltd.		2,512		0.25	%		126		21		—
Buyoung Co., Ltd.		270		0.00	%		3		3		—
Ilsuk Co., Ltd.		152		0.17	%		10		10		—
Dongyang Telecom Co., Ltd.		1,760		0.01	%		11		11		—
Jongwon Remicon Co., Ltd.		31		0.18	%		13		13		—
Ace Heat Treating Co., Ltd.		477		1.43	%		72		72		—
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%		—		—		—
Daewoo Development Co., Ltd.		8		0.00	%		—		—		—
Seyang Inc.		537		0.05	%		27		27		—
Seungri Enterprise Co., Ltd.		93		0.05	%		3		3		—
Onggane Food Co., Ltd		5		0.07	%		1		1		—
Shin-E P&C Co., Ltd.		12		0.00	%		1		1		—
Ejung Ad Co., Ltd.		132		0.09	%		3		3		—
Solvus Co., Ltd.		1,056		0.04	%		3		3		—
Myung Co., Ltd.		89		0.05	%		2		2		—
Shinil Engineering Co., Ltd.		887		0.06	%		3		3		—
Biwang Industry Co., Ltd		406		0.04	%		2		2		—
Huimun Co., Ltd.		263		0.26	%		4		4		—
Young Sung Co., Ltd.		89		0.40	%		26		26		—
Yuil Industrial Electronics Co., Ltd.		804		0.32	%		15		15		—
DN TEK Inc.		12,401		0.29	%		61		5		—
Kwang Jin Structure Co., Ltd.		3,072		0.60	%		31		31		—

49

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Shares		Ownership			Acquisition cost		Book value		Fair value
Woojin Industry Corporation		3		0.00	%	W	16		16		—
Kwang Sung Industry Co., Ltd.		325		0.35	%		7		7		—
Futech Mold Co., Ltd.		274		0.27	%		14		14		—
Woojoo Environment Ind. Co., Ltd.		101		0.11	%		13		13		—
CHONGATTI Agricultural Co., Inc.		57		0.10	%		4		4		—
Hyungji Esquire Co., Ltd.		55		0.02	%		22		22		—
Kolmar Pharma Co., Ltd.		1,426		0.01	%		52		3		—
Morado Co., Ltd.		209		0.04	%		2		2		—
Myung Sung Tex Co., Ltd.		20		0.00	%		2		2		—
Kwang Sung Co., Ltd.		610		0.53	%		31		31		—
EverTechno. Co.,Ltd.		29,424		0.73	%		148		7		—
Autowel Co.,Ltd.		260		0.38	%		14		14		—
Woobang Construction Co., Ltd.		8		0.00	%		8		8		—
Shin Pyung Co., Ltd.		6		0.03	%		3		3		—
JMC Heavy Industries Co., Ltd.		2,724		0.10	%		27		27		—
Najin Steel Co., Ltd.		37		0.06	%		5		5		—
Sinkwang Industry Co., Ltd.		1,091		1.68	%		5		5		—
Crystal Co., Ltd.		22		0.07	%		2		2		—
Elephant & Friends Co., Ltd.		563		0.61	%		3		3		—
Mireco Co., Ltd.		109		0.25	%		11		11		—
L&K Industry Co., Ltd.		1,615		0.60	%		24		24		—
JO Tech Co., Ltd.		1,263		0.62	%		25		25		—
Kendae Printing Co., Ltd.		422		0.60	%		21		21		—
Dauning Co., Ltd.		231		0.41	%		6		6		—
Korea Trecision Co., Ltd.		22		0.45	%		5		5		—
Ace Track Co., Ltd.		3,130		1.08	%		219		59		—
Taebok Machinery Co., Ltd.		109		1.08	%		11		11		—
Yoo-A Construction Co., Ltd.		105		0.20	%		11		11		—
Dung Hwan Co., Ltd.		531		0.02	%		5		5		—
Hurim Biocell Co., Ltd.		113		0.00	%		5		5		—
Sunjin Power Tech Co., Ltd.		4,941		0.92	%		247		32		—
Smart Power Co.,Ltd.		133,333		4.83	%		200		200		—
Haseung Industries Co.,Ltd.		55		0.62	%		28		28		—
Beer Yeast Korea Inc.		1,388		0.43	%		7		7		—
Daeryung Corporation		207		0.19	%		10		10		—
Korea Bio Red Ginseng Co.,Ltd.		194		0.09	%		10		10		—
ENH Co.,Ltd.		1,086		0.19	%		54		54		—
B CON Co.,Ltd.		96		1.16	%		6		6		—
Chunil Metal Co.,Ltd.		11		0.15	%		4		4		—
SsangMa Machine Co., Ltd.		4		0.05	%		1		1		—
SinJin Co., Ltd.		233		0.30	%		9		9		—
Ace Integration Co., Ltd		105		0.09	%		24		24		—
AceInti Agricultural Co., Ltd.		16		0.02	%		5		5		—

50

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Shares		Ownership			Acquisition cost		Book value		Fair value
KyungDong Co., Ltd.		130		0.01	%	W	1		1		—
ChunWon Development Co., Ltd.		193		0.19	%		39		39		—
WonIl Co., Ltd.		999		0.15	%		50		50		—
SungLim Industrial Co., Ltd.		29		0.03	%		1		1		—
Korea Minerals Co., Ltd.		191		0.05	%		134		1		—
HyoDong Development Co., Ltd.		119		0.15	%		24		24		—
Haspe Tech Co., Ltd.		652		0.55	%		20		20		—
JoHyun Co., Ltd.		350		1.56	%		18		18		—
KC Co., Ltd.		5,107		0.17	%		3		3		—
SeongJi Industrial Co., Ltd.		41		0.05	%		1		1		—
DongKwang SD, Inc.		524		0.23	%		13		13		—
Dong Yang Metal Co., Ltd.		2,951		1.97	%		15		15		—
Seyang Precision Ind.Co., Ltd.		829		0.23	%		41		41		—
Dooriwon Food System Co., Ltd.		13		0.27	%		1		1		—
ShinShin Co., Ltd		339		1.12	%		17		17		—
Kitorang Co., Ltd.		165		0.24	%		49		49		—
Sung Kwang Co., Ltd.		23		0.37	%		6		6		—
Hyundai Metal Co., Ltd.		3,757		5.60	%		1,416		1,416		—
Shinheung petrol. Co. Ltd.		699		0.14	%		7		7		—
Force TEC Co., Ltd.		3,501		0.02	%		18		18		—
Haisung TPC Co., Ltd.		10,751		0.24	%		54		54		—
Samsung Tech Co., Ltd.		486		1.28	%		97		97		—
Tae Hyung Co., Ltd.		28		0.43	%		20		20		—
Samyangplant Co., Ltd.		323		0.60	%		16		16		—
Younil Metal Co., Ltd.		41		0.21	%		21		21		—
Myungjin Tech Co., Ltd.		20		0.54	%		4		4		—
Hankook Machine Tools Co., Ltd.		719		0.14	%		72		72		—
Hankook Precision Ind Co., Ltd.		110		0.06	%		11		11		—
Borneo International Furniture Co., Ltd.		64,037		0.28	%		97		14		—
CJ Paradise Co., Ltd		24		0.02	%		12		12		—
Han Young Technology Company Co., Ltd.		35		0.00	%		—		—		—
Jungdo Aluminium Co., Ltd.		8,527		0.35	%		128		128		—
Ilheung Metal Co, Ltd.		280		0.83	%		28		28		—
STX Offshore & Shipbuilding Co., Ltd		8,622		0.25	%		1,078		1,078		—
Ptotronics Co., Ltd.		151		0.07	%		2		2		—
NFT Co., Ltd.		136		0.40	%		8		8		—
Echoroba Co., Ltd.		157		0.02	%		3		3		—
Hyundaitech Co., Ltd.		1,363		0.87	%		27		27		—
Eco Alux Co., Ltd.		239		0.22	%		48		48		—
Daekyung Industry Co., Ltd.		9,112		0.94	%		13		13		—
Dasan Material Co.Ltd.		29		0.04	%		—		—		—
Fish World Co., Ltd.		47		0.21	%		2		2		—
SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%		6		6		—
Samdo Industry Electric Co., Ltd.		48		0.02	%		1		1		—
Taejung Industries Co., Ltd.		9,268		0.30	%		5		5		—
Shinsei Trading Co., Ltd.		64		0.72	%		1		1		—
Dynamic Co., Ltd.		111		0.19	%		3		3		—
Green Alchemy Co., Ltd.		38,202		1.48	%		191		191		—
IQ Power Asia Inc.		16,179		0.31	%		81		81		—
Youone TBM Engineering & Construction Co., Ltd.		227,854		0.27	%		31		31		—

51

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

9. Available-for-sale Financial Assets, Continued

(2) Available-for-sale financial assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Shares		Ownership			Acquisition cost		Book value		Fair value
KM Leatech		1,648		0.98	%	W	8		8		—
Wonil T&I Co., Ltd.		229		0.17	%		23		23		—
Semist Co., Ltd.		555		0.80	%		3		3		—
DS POWER Co., Ltd. (*8)		580,000		2.34	%		2,900		1,223		1,223
Navanakorn Electric Co., Ltd. (*3)		4,442,800		26.93	%		17,216		16,410		—
PT. Kedap Saayq		671		10.00	%		18,540		—		—
Set Holding (*4)		1,100,220		2.50	%		229,255		171,242		171,242
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,401		—
							522,782		425,380		387,454
						W	888,673		699,833		661,907

(*1) Investments in unlisted equity securities held by the Company for which a quoted market price does not exist in an active market and fair value cannot be measured reliably were measured at cost less impairment, if any.

(*2) The Company has estimated the fair value of the investment in Construction Guarantee based upon the price which would be applied when the investment is returned. The Company has recognized the difference between its fair value and book value as a gain or loss on valuation ofavailable-for-sale financial assets in other comprehensive income or loss during the year ended December 31, 2017.

(*3) Although the Company holds more than 20% of the equity shares of these investments, the Company cannot exercise significant influence.

(*4) 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 ofavailable-for-sale financial assets in other comprehensive income or loss during the year ended December 31, 2017.

(*5) As of December 31, 2017, the Company invested inW214,156 million as beneficiary securities exclusively for payment of decommissioning cost of nuclear power plants. The Company has measured the fair value of the beneficiary securities based on its net asset value.

(*6) The number of shares owned has changed due to the stock merge (9:7) during the year ended December 31, 2017.

(*7) The number of shares increased due to the stock split (5:1).

(*8) As described in note 17, this is reclassified toavailable-for-sale financial assets due to loss of significant influence of the Company.

52

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

10. Held-to-maturity Investments

Held-to-maturity investments as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance		Acquisition		Disposal			Others			Ending balance
Government bonds	W	3,144		384		(345	)		—			3,183
	W	3,144		384		(345	)		—			3,183
Current	W	5		—		(4	)		956			957
Non-current		3,139		384		(341	)		(956	)		2,226
In millions of won	December 31, 2017
	Beginning balance		Acquisition		Disposal			Others			Ending balance
Government bonds	W	3,244		250		(350	)		—			3,144
	W	3,244		250		(350	)		—			3,144
Current	W	114		—		(113	)		4			5
Non-current		3,130		250		(237	)		(4	)		3,139

11. Derivatives

(1) Derivatives as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Derivative assets
Currency forward	W	2,056		4,778		45		—
Currency swap		63,400		43,133		12		15,711
Interest rate swap		—		7,662		—		2,697
Others (*1)		—		1,283		12,878		1,283
	W	65,456		56,856		12,935		19,691
Derivative liabilities
Currency forward	W	3,669		—		7,862		1,278
Currency swap		29,136		303,391		61,997		296,098
Interest rate swap		—		58,632		1,408		59,416
	W	32,805		362,023		71,267		356,792

(*1) The Company has a put option to sell shares of DS POWER Co., Ltd. and the fair value of the option is recorded in ‘Others’.

53

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty	Contract date		Maturity date		Contract amounts				Contract exchange rate (in won)
					Pay		Receive
KEB Hana Bank		2014.04.10		2021.07.12	W	55,120	USD	52,000	W	1,060.00
KEB Hana Bank		2014.04.28		2021.07.12		50,784	USD	48,000		1,058.00
Bank of America		2014.04.29		2021.07.12		105,400	USD	100,000		1,054.00
KEB Hana Bank		2014.05.09		2021.07.12		104,600	USD	100,000		1,046.00
KEB Hana Bank		2017.12.22		2021.07.12		105,079	USD	100,000		1,050.79
Korea Development Bank		2017.12.27		2021.07.12		104,849	USD	100,000		1,048.49
Mizuho Bank		2018.09.05		2018.10.11		17,880	USD	16,000		1,117.51
Korea Development Bank		2018.09.06		2018.10.12		8,965	USD	8,000		1,120.60
Woori Bank		2018.09.06		2018.10.13		5,610	USD	5,000		1,122.06
Kookmin Bank		2018.09.10		2018.10.15		20,297	USD	18,000		1,127.60
Woori Bank		2018.09.12		2018.10.16		6,760	USD	6,000		1,126.60
Standard Chartered		2018.09.13		2018.10.17		11,231	USD	10,000		1,123.10
CCB		2018.09.13		2018.10.17		11,226	USD	10,000		1,122.57
Mizuho Bank		2018.09.13		2018.10.18		11,218	USD	10,000		1,121.84
Woori Bank		2018.09.14		2018.10.18		8,950	USD	8,000		1,118.75
Morgan Stanley		2018.09.19		2018.10.22		11,215	USD	10,000		1,121.48
KEB Hana Bank		2018.09.19		2018.10.22		6,726	USD	6,000		1,121.00
Nonghyup Bank		2018.09.20		2018.10.29		8,957	USD	8,000		1,119.60
Standard Chartered		2018.09.21		2018.10.31		5,579	USD	5,000		1,115.70
Morgan Stanley		2018.09.27		2018.11.01		14,464	USD	13,000		1,112.64
Standard Chartered		2018.09.28		2018.11.02		11,139	USD	10,000		1,113.90
CCB		2018.09.28		2018.11.05		5,561	USD	5,000		1,112.22
KEB Hana Bank		2018.09.28		2018.11.05		5,547	USD	5,000		1,109.35
ING Bank		2018.09.14		2018.10.01		11,211	USD	10,000		1,121.06
Nova Scotia		2018.09.14		2018.10.01		11,211	USD	10,000		1,121.05
MUFG		2018.09.14		2018.10.01		11,212	USD	10,000		1,121.15
KEB Hana Bank		2018.09.14		2018.10.01		11,211	USD	10,000		1,121.10
Nonghyup Bank		2018.09.14		2018.10.01		11,211	USD	10,000		1,121.05
Societe Generale		2018.09.18		2018.10.05		15,765	USD	14,000		1,126.09
Korea Development Bank		2018.09.19		2018.10.05		13,474	USD	12,000		1,122.80
ING Bank		2018.09.19		2018.10.05		11,227	USD	10,000		1,122.74
Korea Development Bank		2018.09.20		2018.10.11		11,196	USD	10,000		1,119.60
ING Bank		2018.09.20		2018.10.11		11,196	USD	10,000		1,119.57
Credit Agricole		2018.09.20		2018.10.11		11,197	USD	10,000		1,119.65
Korea Development Bank		2018.09.27		2018.10.15		11,125	USD	10,000		1,112.45
ING Bank		2018.09.27		2018.10.01		5,565	USD	5,000		1,112.90
Mizuho Bank		2018.09.14		2018.10.18		5,582	USD	5,000		1,116.35
MUFG		2018.09.14		2018.10.18		5,581	USD	5,000		1,116.25
MUFG		2018.09.21		2018.10.29		5,575	USD	5,000		1,114.95
BNP Paribas		2018.09.21		2018.10.29		10,035	USD	9,000		1,115.05
CCB		2018.09.21		2018.10.29		5,578	USD	5,000		1,115.60
HSBC		2018.09.21		2018.10.29		5,577	USD	5,000		1,115.45
Societe Generale		2018.09.21		2018.10.29		1,673	USD	1,500		1,115.45
Societe Generale		2018.09.28		2018.11.02		8,858	USD	8,000		1,107.20
Credit Agricole		2018.09.21		2018.10.29		5,576	USD	5,000		1,115.25
Nova Scotia		2018.09.27		2018.11.01		11,130	USD	10,000		1,113.00
Nonghyup Bank		2018.09.27		2018.11.01		11,113	USD	10,000		1,111.30
Woori Bank		2018.09.28		2018.11.02		6,652	USD	6,000		1,108.70
Busan Bank		2018.09.05		2018.10.05		14,167	USD	12,700		1,115.50
Kookmin Bank		2018.09.07		2018.10.05		17,395	USD	15,500		1,122.23
KEB Hana Bank		2018.09.11		2018.10.11		23,169	USD	20,600		1,124.70
Nonghyup Bank		2018.09.21		2018.10.11		5,584	USD	5,000		1,116.75
Kookmin Bank		2018.09.13		2018.10.15		22,396	USD	20,000		1,119.78
Busan Bank		2018.09.13		2018.10.23		18,595	USD	16,500		1,126.95

54

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of September 30, 2018 are as follows, continued:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty	Contract date		Maturity date		Contract amounts				Contract exchange rate (in won)
					Pay		Receive
Nonghyup Bank		2018.09.19		2018.10.23	W	3,929	USD	3,500	W	1,122.47
Nonghyup Bank		2018.09.20		2018.10.23		16,799	USD	15,000		1,119.93
Kookmin Bank		2018.09.27		2018.10.23		14,674	USD	13,200		1,111.70
Nova Scotia		2018.07.31		2018.11.05		446	USD	401		1,111.20
Nova Scotia		2018.08.24		2018.11.29		1,954	USD	1,758		1,111.90
Nova Scotia		2018.08.24		2018.11.29		4,652	USD	4,180		1,112.90
Societe Generale		2018.08.27		2018.11.29		5,555	USD	5,000		1,111.00
Societe Generale		2018.08.27		2018.11.29		2,028	USD	1,823		1,112.00
Nova Scotia		2018.08.27		2018.11.30		5,544	USD	5,000		1,108.85
Nova Scotia		2018.08.27		2018.11.30		5,539	USD	5,000		1,107.85
Nova Scotia		2018.08.27		2018.11.30		2,234	USD	2,018		1,106.85
Nomura		2018.09.13		2018.12.17		5,603	USD	5,000		1,120.50
Nomura		2018.09.13		2018.12.17		1,041	USD	930		1,119.50
Nova Scotia		2018.09.20		2018.12.31		5,577	USD	5,000		1,115.40
Nova Scotia		2018.09.21		2018.12.31		5,556	USD	5,000		1,111.10
Nova Scotia		2018.09.27		2019.01.02		22,193	USD	20,000		1,109.65
KEB Hana Bank		2017.11.27		2018.11.26	JPY	40,000		398		9.94

55

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(3) Currency forward contracts which are designated as hedging instruments as of September 30, 2018 are as follows:

In won and thousands of foreign currencies
Counterparty	Contract date		Maturity date		Contract amounts				Contract exchange rate (in won)
					Pay		Receive
Export-import bank of Korea		2016.12.21		2018.10.31		EUR 112,766		USD 120,761	W	1.07

(4) Currency swap contracts which are not designated as hedging instruments as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty	Contract		Contract amount				Contract interest rate						Contract exchange rate
	year		Pay		Receive		Pay			Receive			(in won)
Deutsche Bank		2013~2018	W	110,412	JPY	10,000,000		6.21	%		4.19	%	W	11.04
Bank of America		2013~2018		103,580	JPY	10,000,000		7.05	%		4.19	%		10.36
Credit Suisse		2014~2019		118,632	CHF	100,000		2.98	%		1.50	%		1,186.32
Standard Chartered		2014~2019		114,903	CHF	100,000		4.00	%		1.50	%		1,149.03
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
KEB 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
Citibank		2012~2022		112,930	USD	100,000		2.79	%		3.00	%		1,129.30
JP Morgan		2012~2022		112,930	USD	100,000		2.79	%		3.00	%		1,129.30
Bank of America		2012~2022		112,930	USD	100,000		2.79	%		3.00	%		1,129.30
Shinhan Bank		2016~2022		112,930	USD	100,000		2.79	%		3.00	%		1,129.30
HSBC		2012~2022		111,770	USD	100,000		2.89	%		3.00	%		1,117.70
KEB Hana Bank		2012~2022		111,770	USD	100,000		2.87	%		3.00	%		1,117.70
Standard Chartered		2012~2022		111,770	USD	100,000		2.89	%		3.00	%		1,117.70
Deutsche Bank		2012~2022		55,885	USD	50,000		2.79	%		3.00	%		1,117.70
HSBC		2013~2018		107,450	USD	100,000		3.41	%		2.88	%		1,074.50
Standard Chartered		2013~2018		107,450	USD	100,000		3.44	%		2.88	%		1,074.50
JP Morgan		2013~2018		107,450	USD	100,000		3.48	%		2.88	%		1,074.50
Bank of America		2014~2018		107,450	USD	100,000		3.09	%		2.88	%		1,074.50
Citibank		2014~2018		107,450	USD	100,000		3.09	%		2.88	%		1,074.50
HSBC		2014~2019		105,260	USD	100,000		2.48	%		2.38	%		1,052.60
Standard Chartered		2014~2019		105,260	USD	100,000		2.48	%		2.38	%		1,052.60
Korea Development Bank		2016~2019		105,260	USD	100,000		2.48	%		2.38	%		1,052.60
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
KEB 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
KEB Hana Bank		2017~2027		111,610	USD	100,000		2.31	%		3.13	%		1,116.10
Korea Development 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		115,388	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
KEB 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

56

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(5) Currency swap contracts which are designated as hedging instruments as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty	Contract		Contract amount				Contract interest rate		Contract exchange rate
	year		Pay		Receive		Pay	Receive	(in won)
HSBC		2014~2020	W	99,901	AUD	100,000	3.52%	5.75%	W	999.01
HSBC		2014~2020		100,482	AUD	100,000	3.48%	5.75%		1,004.82
Standard Chartered		2013~2020	USD	117,250	AUD	125,000	3M Libor+1.25%	5.75%		0.94
Standard Chartered		2014~2020	W	126,032	USD	117,250	3.55%	3M Libor+1.25%		1,074.90
Korea Development Bank		2017~2020		114,580	USD	100,000	1.75%	2.38%		1,145.80
KEB Hana Bank		2017~2020		114,580	USD	100,000	1.75%	2.38%		1,145.80
Export-import bank of Korea		2017~2020		114,580	USD	100,000	1.75%	2.38%		1,145.80
JP Morgan		2014~2019		107,190	USD	100,000	3M Libor+3.25%	2.75%		1,071.90
Morgan Stanley		2014~2019		107,190	USD	100,000	3M Libor+3.25%	2.75%		1,071.90
Deutsche Bank		2014~2019		107,190	USD	100,000	3M Libor+3.25%	2.75%		1,071.90
Korea Development Bank		2016~2021		121,000	USD	100,000	2.15%	2.50%		1,210.00
Morgan Stanley		2016~2021		121,000	USD	100,000	3M Libor+2.10%	2.50%		1,210.00
BNP Paribas		2016~2021		121,000	USD	100,000	3M Libor+2.10%	2.50%		1,210.00
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
Credit Agricole		2013~2019		118,343	CHF	100,000	3.47%	1.63%		1,183.43
Morgan Stanley		2013~2019		59,172	CHF	50,000	3.40%	1.63%		1,183.43
Nomura		2013~2019		59,172	CHF	50,000	3.47%	1.63%		1,183.43
Morgan Stanley		2013~2018		107,360	USD	100,000	3.27%	2.88%		1,073.60
Credit Agricole		2013~2018		107,360	USD	100,000	3.34%	2.88%		1,073.60
JP Morgan		2013~2018		161,040	USD	150,000	3.34%	2.88%		1,073.60
Standard Chartered		2013~2018		161,040	USD	150,000	3.34%	2.88%		1,073.60
Standard Chartered		2014~2019		104,490	USD	100,000	2.77%	2.63%		1,044.90
Credit Agricole		2014~2019		104,490	USD	100,000	2.77%	2.63%		1,044.90
Morgan Stanley		2014~2019		104,490	USD	100,000	2.70%	2.63%		1,044.90
Korea Development Bank		2018~2023		320,880	USD	300,000	2.03%	3.75%		1,069.60
KEB Hana Bank		2018~2021		212,960	USD	200,000	2.10%	3.00%		1,064.80
Korea Development Bank		2018~2021		212,960	USD	200,000	2.10%	3.00%		1,064.80
Societe Generale		2013~2018		106,190	USD	100,000	3.48%	2.63%		1,061.90
BNP Paribas		2013~2018		53,095	USD	50,000	3.48%	2.63%		1,061.90
KEB Hana Bank		2013~2018		53,095	USD	50,000	3.48%	2.63%		1,061.90
Standard Chartered		2013~2018		106,030	USD	100,000	3.48%	2.63%		1,060.30
BNP Paribas		2013~2018		53,015	USD	50,000	3.48%	2.63%		1,060.30
KEB Hana Bank		2013~2018		31,809	USD	30,000	3.48%	2.63%		1,060.30
Societe Generale		2013~2018		21,206	USD	20,000	3.48%	2.63%		1,060.30
HSBC		2013~2018		53,015	USD	50,000	3.47%	2.63%		1,060.30
Nomura		2013~2018		53,015	USD	50,000	3.47%	2.63%		1,060.30
Credit Agricole		2014~2020		110,680	USD	100,000	2.29%	2.50%		1,106.80
Societe Generale		2014~2020		55,340	USD	50,000	2.16%	2.50%		1,106.80
KEB Hana Bank		2014~2020		55,340	USD	50,000	2.16%	2.50%		1,106.80
KEB Hana Bank		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
Standard Chartered		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
HSBC		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
Nomura		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
BNP Paribas		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
HSBC		2014~2020		55,340	USD	50,000	2.21%	2.50%		1,106.80
KEB Hana Bank		2017~2022		226,600	USD	200,000	1.94%	2.63%		1,133.00
Korea Development Bank		2017~2022		113,300	USD	100,000	1.94%	2.63%		1,133.00
Nomura		2017~2022		113,300	USD	100,000	1.95%	2.63%		1,133.00
Woori Bank		2017~2022		56,650	USD	50,000	1.95%	2.63%		1,133.00
Kookmin Bank		2017~2022		56,650	USD	50,000	1.95%	2.63%		1,133.00
Korea Development Bank		2018~2023		169,335	USD	150,000	3.88%	2.26%		1,128.90
Woori Bank		2018~2023		169,335	USD	150,000	3.88%	2.26%		1,128.90
Credit Agricole		2018~2023		112,890	USD	100,000	3.88%	2.26%		1,128.90
KEB Hana Bank		2018~2023		56,445	USD	50,000	3.88%	2.26%		1,128.90
Kookmin Bank		2018~2023		56,445	USD	50,000	3.88%	2.26%		1,128.90

57

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(6) Interest rate swap contracts which are not designated as hedging instruments as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies

Counterparty	Contract year	Contract amount		Contract interest rate per annum
				Pay			Receive
KEB Hana Bank	2017~2022	W	100,000		2.01	%	3M CD+0.24%
KEB Hana Bank	2017~2022		100,000		2.06	%	3M CD+0.27%
Nomura (*1)	2017~2037		30,000		2.05	%	3.08%
KEB Hana Bank	2017~2021		200,000		2.45	%	3M CD+0.32%
Nomura (*2)	2018~2038		30,000		2.56	%	3.75%
KEB Hana Bank	2018~2023		200,000		2.15	%	3M CD+0.19%
Export-import bank of Korea	2015~2031	USD	19,254		2.67	%	6M USD Libor
ING Bank	2015~2031	USD	47,480		2.67	%	6M USD Libor
BNP Paribas	2015~2031	USD	7,861		2.67	%	6M USD Libor

(*1) 2.05% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD+0.10% is applied thereafter.

(*2) 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.

(7) Interest rate swap contracts which are designated as hedging instruments as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies

Counterparty	Contract year	Contract amount		Contract interest rate per annum
				Pay	Receive
BNP Paribas	2009~2027	USD	92,120	4.16%	6M USD Libor
KFW	2009~2027	USD	92,120	4.16%	6M USD Libor
Credit Agricole	2016~2033	USD	94,446	3.98%~4.10%	6M USD Libor
SMBC	2016~2033	USD	123,506	4.05%~4.18%	6M USD Libor
Mizuho Bank	2016~2019	USD	36,890	1.56%	1.65%
SMBC	2016~2019	USD	36,890	1.56%	1.65%
Export-import bank of Korea	2016~2036	USD	2,564	3.00%	4.99%

58

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

11. Derivatives, Continued

(8) Gains and losses on valuation and transaction of derivatives for the three and nine-month periods ended September 30, 2018 and 2017 are as follows and included in finance income and costs in the consolidated interim statements of comprehensive income (loss):

In millions of won	Net income effects of valuation gain (loss)										Net income effects of transaction gain (loss)											Accumulated other comprehensive income (loss) (*)
	September 30, 2018					September 30, 2017					September 30, 2018					September 30, 2017						September 30, 2018						September 30, 2017
	Three- month period ended			Nine- month period ended		Three- month period ended		Nine- month period ended			Three- month period ended			Nine- month period ended		Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended			Three- month period ended		Nine- month period ended
Currency forward	W	(87,759	)		2,220		76		(10,628	)		5,280			22,359		2,047			(15,123	)		1,141			2,747			—		—
Currency swap		(32,770	)		151,568		58,693		(306,125	)		13,475			19,425		(48,299	)		(129,820	)		12,628			(55,746	)		2,859		2,770
Interest rate swap		4,119			7,043		1,469		5,938			(347	)		106		1,918			(2,860	)		(257	)		555			784		784
	W	(116,410	)		160,831		60,238		(310,815	)		18,408			41,890		(44,334	)		(147,803	)		13,512			(52,444	)		3,643		3,554

(*) For the nine-month period ended September 30, 2018, the net loss on valuation of derivatives applying cash flow hedge accounting ofW27,031 million, net of tax, is included in other comprehensive income or loss.

59

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

12. Other Financial Assets

(1) Other financial assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018						December 31, 2017
	Current			Non-current			Current			Non-current
Loans and receivables	W	94,616			650,804			244,309			711,069
Allowance for doubtful accounts		(9	)		(6,339	)		—			(8,948	)
Present value discount		(1,133	)		(40,852	)		(976	)		(39,813	)
Long-term/short-term financial instruments		4,206,496			609,335			1,702,084			542,430
Financial assets at fair value through profit or loss		99			193,070			—			111,512
	W	4,300,069			1,406,018			1,945,417			1,316,250

(2) Loans and receivables as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Face value		Allowance for doubtful accounts			Present value discount			Book value
Short-term loans and receivables
Loans for tuition	W	34,662		—			(1,133	)		33,529
Loans for housing		15,117		—			—			15,117
Fisheries loan		320		—			—			320
Other loans		44,517		(9	)		—			44,508
		94,616		(9	)		(1,133	)		93,474
Long-term loans and receivables
Loans for tuition		421,939		—			(40,789	)		381,150
Loans for housing		165,103		—			—			165,103
Loans for related parties		53,043		(6,252	)		—			46,791
Fisheries loan		640		—			(63	)		577
Other loans		10,079		(87	)		—			9,992
		650,804		(6,339	)		(40,852	)		603,613
	W	745,420		(6,348	)		(41,985	)		697,087

In millions of won	December 31, 2017
	Face value		Allowance for doubtful accounts			Present value discount			Book value
Short-term loans and receivables
Loans for tuition	W	33,763		—			(976	)		32,787
Loans for housing		14,126		—			—			14,126
Fisheries loan		352		—			—			352
Other loans		196,068		—			—			196,068
		244,309		—			(976	)		243,333
Long-term loans and receivables
Loans for tuition		408,803		—			(39,716	)		369,087
Loans for housing		140,452		—			—			140,452
Loans for related parties		94,581		(8,948	)		—			85,633
Fisheries loan		960		—			(97	)		863
Other loans		66,273		—			—			66,273
		711,069		(8,948	)		(39,813	)		662,308
	W	955,378		(8,948	)		(40,789	)		905,641

60

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

12. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans and receivables for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	8,948			4,532
Bad debt expense		1,417			2,465
Other		(4,017	)		1,951
Ending balance	W	6,348			8,948

(4) Long-term and short-term financial instruments as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Time deposits	W	1,818,894		83,350		1,479,034		2
ABCP		1,424,771		—		145,000		65,600
CP		535,360		87,025		58,050		—
CD		40,000		—		10,000		—
RP		15,000		53,334		10,000		1,634
Others		372,471		385,626		—		475,194
	W	4,206,496		609,335		1,702,084		542,430

61

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

13. Inventories

Inventories as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Acquisition cost		Valuation allowance			Book value
Raw materials	W	3,602,765		(2,829	)		3,599,936
Merchandise		738		—			738
Work-in-progress		188,366		(1,028	)		187,338
Finished goods		24,030		—			24,030
Supplies		1,790,362		(3,779	)		1,786,583
Inventories in transit		908,129		—			908,129
Other inventories		9,924		—			9,924
	W	6,524,314		(7,636	)		6,516,678

In millions of won	December 31, 2017
	Acquisition cost		Valuation allowance			Book value
Raw materials	W	3,528,835		(2,829	)		3,526,006
Merchandise		107		—			107
Work-in-progress		138,709		(1,028	)		137,681
Finished goods		72,923		(1,517	)		71,406
Supplies		1,581,661		(3,940	)		1,577,721
Inventories in transit		679,358		—			679,358
Other inventories		9,807		—			9,807
	W	6,011,400		(9,314	)		6,002,086

The reversals of the allowance for loss on inventory valuation due to increase in the net realizable value of inventory deducted from cost of sales for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 wereW3,347 million andW437 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 wereW1,669 million andW3,875 million, respectively.

62

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

14. Finance Lease Receivables

(1) Finance lease contracts

The Company entered into a power purchase agreement (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25 year lease term, and accounts for the PPA as a finance lease. Also, the Company hasfly-ash pipe conduit finance leases with an average lease term of 7 years. In addition, the Company provides 17 energy storage system installation projects and 29 energy efficiency contracts as finance leases with a lease term of 2 to 10 years. Also, the Company entered into a PPA with the Comision Federal de Electricidad in Mexico to provide for 25 years (December 2013 to November 2038) of 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) Finance lease receivables as of September 30, 2018 and December 31, 2017 are as follows and included in current andnon-current trade and other receivables, net, in the consolidated statements of financial position:

In millions of won	September 30, 2018					December 31, 2017
	Minimum lease payments		Present value of minimum lease payments			Minimum lease payments		Present value of minimum lease payments
Less than 1 year	W	98,442		70,252			49,542		13,067
1 ~ 5 years		463,901		185,823			381,181		203,990
More than 5 years		1,375,630		701,093			1,398,449		645,564
	W	1,937,973		957,168			1,829,172		862,621
Allowance for doubtful accounts				(346	)				—
			W	956,822					862,621

(3) Changes in the allowance for doubtful accounts of finance lease receivables for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Beginning balance	W	—		—
Bad debt expense		346		—
Write-off		—		—
Other		—		—
Ending balance	W	346		—

63

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

15. Non-Financial Assets

Non-financial assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Advance payment	W	242,383		183,007		109,743		43,872
Prepaid expenses		296,858		89,651		251,715		90,118
Others (*1)		256,926		164,367		392,534		112,828
	W	796,167		437,025		753,992		246,818

(*1) Details of others as of September 30, 2018 and December 31, 2017are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Tax refund receivables	W	20,941		1,276		89,762		1,940
Greenhouse gas emissions rights		32,966		—		135,211		—
Other quick assets (*2)		203,019		163,091		167,561		110,888
	W	256,926		164,367		392,534		112,828

(*2) The Company has recognizedW92,128 million of its rights in connection with the securities of Orano Expansion (formerly, AREVA NC Expansion) asnon-currentnon-financial assets as of September 30, 2018 and December 31, 2017.

64

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of September 30, 2018 and December 31, 2017 are as follows:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2018			December 31, 2017
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)	Architectural engineering 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	%
Garolim Tidal Power Plant Co., Ltd. (*2)	Power generation	KOREA		49.00	%		49.00	%
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.	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 Canada Energy Ltd.	Resources development	CANADA		—			100.00	%
KEPCO Netherlands B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
KOREA Imouraren Uranium Investment Corp.	Holding company	FRANCE		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		79.64	%		79.64	%
Korea Electric Power Nigeria Ltd.	Operation of utility plant	NIGERIA		100.00	%		100.00	%
KEPCO Holdings de Mexico	Holding company	MEXICO		100.00	%		100.00	%
KST Electric Power Company	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 Philippines Corporation	Holding company	PHILIPPINES		100.00	%		100.00	%
EWP America Inc.	Holding company	USA		100.00	%		100.00	%
EWP Renewable Corporation	Holding company	USA		100.00	%		100.00	%
DG Fairhaven Power, LLC	Power generation	USA		100.00	%		100.00	%
DG Whitefield, LLC	Power generation	USA		100.00	%		100.00	%
Springfield Power, LLC	Power generation	USA		100.00	%		100.00	%
KNF Canada Energy Limited	Holding company	CANADA		96.36	%		96.36	%
PT KEPCO Resource Indonesia	Holding company	INDONESIA		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	%

65

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of September 30, 2018 and December 31, 2017 are as follows, continued:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2018			December 31, 2017
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	%		100.00	%
KOSEP USA, INC.	Power generation	USA		100.00	%		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. (*4)	Recycling fly ashes	KOREA		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd. (*5)	Power generation	KOREA		59.03	%		59.03	%
KEPCO Singapore Holdings Pte., Ltd.	Holding company	SINGAPORE		100.00	%		100.00	%
KOWEPO India Private Limited	Holding company	INDIA		100.00	%		100.00	%
KEPCO KPS Philippines Corp.	Utility plant maintenance and others	PHILIPPINES		51.00	%		51.00	%
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	%
HeeMang 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.	Operation of utility plant	KOREA		50.00	%		50.00	%
HI Carbon Professional Private Special Asset Investment Trust 1	Holding company	KOREA		96.67	%		96.67	%
Chitose Solar Power Plant LLC	Power generation	JAPAN		80.10	%		80.10	%
KEPCO Energy Solution Co. Ltd.	Energy service	KOREA		100.00	%		100.00	%
Solar School Plant Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
KOSPO Power Services Limitada	Utility plant maintenance and others	CHILE		65.00	%		65.00	%
Energy New Industry Specialized Investment Private Investment Trust	Holding company	KOREA		99.75	%		99.75	%
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	%		50.10	%
Cogentrix Solar Services, LLC	Holding company	USA		—			50.10	%
Solar Investments I, LLC	Holding company	USA		—			50.10	%
KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC)	Power generation	USA		50.10	%		50.10	%
KEPCO-LG CNS Mangilao Holdings LLC	Holding company	USA		70.00	%		70.00	%
Mangilao Investment LLC	Holding company	USA		70.00	%		70.00	%
KEPCO-LG CNS Mangilao Solar, LLC	Power generation	USA		70.00	%		70.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	KOREA		68.84	%		70.22	%
PT. Siborpa Eco Power	Construction and operation of utility plant	INDONESIA		55.00	%		64.71	%
BSKE-New Industry Fund VII	Holding company	KOREA		81.47	%		81.47	%
e-New Industry LB Fund 1	Holding company	KOREA		75.92	%		75.92	%
Songhyune-New Industry Fund	Holding company	KOREA		80.45	%		80.45	%
PT. Korea Energy Indonesia	Utility plant maintenance and others	INDONESIA		95.00	%		—

66

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of September 30, 2018 and December 31, 2017 are as follows, continued:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	September 30, 2018			December 31, 2017
KOLAT SpA	Uility plant maintenance and others	CHILE		100.00	%		—
KEPCO California, LLC	Holding company	USA		100.00	%		—
KEPCO Mojave Holdings, LLC	Holding company	USA		100.00	%		—
Incheon Fuel Cell Co., Ltd.	Power generation	KOREA		60.00	%		—

(*1) Considering treasury stocks, the effective percentage of ownership is 66.08%.

(*2) These subsidiaries are included in the consolidated financial statements as the Company obtained the majority of the voting power through the shareholders’ agreement.

(*3) As of reporting date, the annual reporting period of all subsidiaries is December 31, except for Mira Power Limited which is November 30.

(*4) The effective percentage of ownership has increased to 86.22% since Long Lasting Value exercised the put option to sell its investment to KOSEP during the year ended December 31, 2017.

(*5) 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 84 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability.

(2) Subsidiaries included in and excluded from consolidation for the nine-month period ended September 30, 2018 are as follows:

<Subsidiaries included in consolidation during the nine-month period ended September 30, 2018>

Subsidiary	Reason
PT. Korea Energy Indonesia	Newly established
KOLAT SpA	Newly established
KEPCO California, LLC	Newly established
KEPCO Mojave Holdings, LLC	Newly established
Incheon Fuel Cell Co., Ltd.	Newly established

<Subsidiaries excluded from consolidation during the nine-month period ended September 30, 2018>

Subsidiary	Reason
KEPCO Canada Energy Ltd.	Liquidated
Cogentrix Solar Services, LLC	Liquidated
Solar Investments I, LLC	Liquidated

67

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows:

In millions of won
September 30, 2018
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	56,252,129		31,062,240		6,306,984		(254,865	)
Korea South-East Power Co., Ltd.		9,846,710		4,595,394		4,165,637		218,999
Korea Midland Power Co., Ltd.		10,502,698		6,595,632		3,500,982		138,097
Korea Western Power Co., Ltd.		10,329,092		6,346,601		3,769,278		41,755
Korea Southern Power Co., Ltd.		10,010,676		5,649,640		4,286,931		91,992
Korea East-West Power Co., Ltd.		9,099,475		4,428,273		3,784,844		50,255
KEPCO Engineering & Construction Company, Inc.		756,237		304,449		273,074		8,383
KEPCO Plant Service & Engineering Co., Ltd.		1,223,546		314,826		853,693		86,227
KEPCO Nuclear Fuel Co., Ltd.		799,363		414,866		184,693		15,802
KEPCO KDN Co., Ltd.		533,278		159,479		425,559		26,224
Garolim Tidal Power Plant Co., Ltd.		607		346		—		(12	)
KEPCO International HongKong Ltd.		162,199		1		—		2,698
KEPCO International Philippines Inc.		106,416		1,303		—		30,523
KEPCO Gansu International Ltd.		12,002		512		—		(10	)
KEPCO Philippines Holdings Inc.		159,959		114		—		39,785
KEPCO Philippines Corporation		6,139		104		—		112
KEPCO Ilijan Corporation		456,001		53,427		74,236		32,965
KEPCO Lebanon SARL		1,495		9,470		—		531
KEPCO Neimenggu International Ltd.		193,478		—		—		20,730
KEPCO Shanxi International Ltd.		520,346		199,799		—		4,038
KOMIPO Global Pte Ltd.		250,733		712		—		12,766
KEPCO Netherlands B.V.		135,039		52		—		14,764
KOREA Imouraren Uranium Investment Corp.		153,038		127		—		(45	)
KEPCO Australia Pty., Ltd.		447,800		518		—		28
KOSEP Australia Pty., Ltd.		35,138		870		15,553		6,789
KOMIPO Australia Pty., Ltd.		37,248		2,784		15,553		6,679
KOWEPO Australia Pty., Ltd.		37,463		4,016		15,553		5,509
KOSPO Australia Pty., Ltd.		35,387		3,547		15,553		7,851
KEPCO Middle East Holding Company		93,737		90,880		—		(2,317	)
Qatrana Electric Power Company		485,823		331,396		14,233		16,082
KHNP Canada Energy, Ltd.		62,776		29		—		(22	)
KEPCO Bylong Australia Pty., Ltd.		246,204		301,582		—		(22,300	)
Korea Waterbury Uranium Limited Partnership		20,893		141		—		(44	)
Korea Electric Power Nigeria Ltd.		230		40		657		23
KEPCO Holdings de Mexico		247		54		—		(17	)
KST Electric Power Company		562,961		491,637		91,276		4,069
KEPCO Energy Service Company		2,130		964		3,827		408
KEPCO Netherlands S3 B.V.		48,510		48		—		396
PT. KOMIPO Pembangkitan Jawa Bali		15,766		4,928		16,013		6,177
PT. Cirebon Power Service		3,107		488		5,274		84
KOWEPO International Corporation		—		7		—		—
KOSPO Jordan LLC		39,159		23,864		10,006		4,314
EWP Philippines Corporation		1,632		802		—		(7	)
EWP America Inc. (*1)		76,496		72,017		21,285		(3,856	)
KNF Canada Energy Limited		1,883		16		—		(30	)
PT KEPCO Resource Indonesia		215		14		—		(283	)
EWP Barbados 1 SRL		253,226		1,232		—		(1,788	)
Gyeonggi Green Energy Co., Ltd.		288,536		184,291		78,388		20,585
PT. Tanggamus Electric Power		194,058		166,336		3,278		8,319
Gyeongju Wind Power Co., Ltd.		114,625		78,891		15,298		5,579
KOMIPO America Inc.		10,370		570		—		(557	)
KOSEP USA, INC.		3		4,762		—		4,376
PT. EWP Indonesia		8,911		—		—		2,349
KEPCO Netherlands J3 B.V.		127,290		95		—		(64	)

68

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Offshore Wind Power Co., Ltd.	W	183,132		161		—		(5,238	)
Global One Pioneer B.V.		173		66		—		(81	)
Global Energy Pioneer B.V.		334		46		—		(62	)
Mira Power Limited		264,239		209,939		—		(2,371	)
KOSEP Material Co., Ltd.		2,656		942		2,570		412
Commerce and Industry Energy Co., Ltd.		96,932		88,510		19,820		(2,781	)
KEPCO Singapore Holdings Pte., Ltd.		593		—		—		(8	)
KOWEPO India Private Limited		716		—		—		—
KEPCO KPS Philippines Corp.		7,539		514		4,037		880
KOSPO Chile SpA		137,459		55,097		—		1,076
PT. KOWEPO Sumsel Operation And Maintenance Services		1,094		129		4,365		(582	)
HeeMang Sunlight Power Co., Ltd.		6,870		3,431		100		(42	)
Fujeij Wind Power Company		197,655		190,998		—		(1,888	)
KOSPO Youngnam Power Co.,Ltd.		409,801		325,715		270,452		4,603
HI Carbon Professional Private Special Asset Investment Trust 1		2,999		—		—		9
Chitose Solar Power Plant LLC		116,675		103,326		12,033		1,682
KEPCO Energy Solution Co. Ltd.		305,668		2,806		3,486		1,836
Solar School Plant Co., Ltd.		203,471		1,184		796		1,404
KOSPO Power Services Limitada		3,426		918		7,055		1,080
Energy New Industry Specialized Investment Private Investment Trust (*2)		507,028		2,270		—		(431	)
KOEN Bylong Pty., Ltd.		5,638		—		—		—
KOMIPO Bylong Pty., Ltd.		5,639		17		—		(16	)
KOWEPO Bylong Pty., Ltd.		5,639		17		—		—
KOSPO Bylong Pty., Ltd.		5,639		17		—		(16	)
EWP Bylong Pty., Ltd.		5,639		17		—		(16	)
KOWEPO Lao International		3,800		1,014		2,899		895
KEPCO US Inc.		16,560		—		—		6
KEPCO Alamosa LLC		32,235		23		512		(584	)
KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC)		65,422		50,531		7,060		51
KEPCO-LG CNS Mangilao Holdings LLC		25,061		26,314		—		(845	)
Mangilao Investment LLC		25,061		—		—		—
KEPCO-LG CNS Mangilao Solar, LLC		24,927		143		—		(4	)
Jeju Hanlim Offshore Wind Co., Ltd.		17,048		18		—		(123	)
PT. Siborpa Eco Power		12,488		82		—		(1,517	)
PT. Korea Energy Indonesia		1,038		45		860		122
KOLAT SpA		37,791		563		—		(699	)
KEPCO California, LLC		42,149		74		—		(203	)
KEPCO Mojave Holdings, LLC		102,690		65,500		—		(4,011	)
Incheon Fuel Cell Co., Ltd.		5,000		—		—		—

(*1) Financial information of EWP America Inc. includes that of six other subsidiaries, EWP Renewable Corporation, DG Fairhaven Power, LLC, DG Whitefield, LLC, Springfield Power, LLC, California Power Holdings, LLC, and EWPRC Biomass Holdings, LLC.

(*2) Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of three other subsidiaries, BSKE-New Industry Fund VII,e-New Industry LB Fund 1 and Songhyune-New Industry Fund.

69

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	55,011,096		29,252,816		9,415,751		854,346
Korea South-East Power Co., Ltd.		9,879,577		4,844,184		5,387,846		130,371
Korea Midland Power Co., Ltd.		9,893,822		6,148,173		4,167,009		104,591
Korea Western Power Co., Ltd.		9,660,426		5,739,534		4,199,079		110,939
Korea Southern Power Co., Ltd.		9,648,741		5,401,216		4,397,552		98,817
Korea East-West Power Co., Ltd.		8,855,518		4,204,187		4,644,330		217,599
KEPCO Engineering & Construction Company, Inc.		762,166		305,134		490,193		21,222
KEPCO Plant Service & Engineering Co., Ltd.		1,195,086		294,689		1,232,113		135,482
KEPCO Nuclear Fuel Co., Ltd.		792,187		421,088		279,664		4,557
KEPCO KDN Co., Ltd.		524,520		155,715		619,470		48,968
Garolim Tidal Power Plant Co., Ltd.		619		345		—		(12	)
KEPCO International HongKong Ltd.		153,529		1		—		4,380
KEPCO International Philippines Inc.		102,323		886		—		47,201
KEPCO Gansu International Ltd.		11,567		493		—		(29	)
KEPCO Philippines Holdings Inc.		127,922		2,621		—		43,218
KEPCO Philippines Corporation		6,293		114		—		2,098
KEPCO Ilijan Corporation		474,624		57,801		109,183		66,320
KEPCO Lebanon SARL		1,069		9,281		—		(219	)
KEPCO Neimenggu International Ltd.		165,937		—		—		500
KEPCO Shanxi International Ltd.		497,990		193,309		—		3,796
KOMIPO Global Pte Ltd.		225,411		1,497		—		21,858
KEPCO Canada Energy Ltd.		132		22		—		(32	)
KEPCO Netherlands B.V.		114,911		49		—		17,309
KOREA Imouraren Uranium Investment Corp.		151,278		131		—		1,490
KEPCO Australia Pty., Ltd.		466,654		569		—		(568	)
KOSEP Australia Pty., Ltd.		27,076		333		12,096		1,601
KOMIPO Australia Pty., Ltd.		31,441		4,691		12,096		1,133
KOWEPO Australia Pty., Ltd.		31,586		4,691		12,096		1,232
KOSPO Australia Pty., Ltd.		29,472		4,221		12,096		(2,759	)
KEPCO Middle East Holding Company		95,812		90,842		—		2,913
Qatrana Electric Power Company		460,206		327,401		18,892		23,310
KHNP Canada Energy, Ltd.		51,994		31		—		(92	)
KEPCO Bylong Australia Pty., Ltd.		242,364		277,549		—		20,271
Korea Waterbury Uranium Limited Partnership		20,886		136		—		(59	)
Korea Electric Power Nigeria Ltd.		238		76		2,164		29
KEPCO Holdings de Mexico		235		30		—		(20	)
KST Electric Power Company		546,242		478,230		120,126		16,154
KEPCO Energy Service Company		1,793		451		6,773		976
KEPCO Netherlands S3 B.V.		46,642		53		—		2,382
PT. KOMIPO Pembangkitan Jawa Bali		11,261		4,769		20,956		4,666
PT. Cirebon Power Service		2,808		155		7,439		592
KOWEPO International Corporation		—		8		—		(2	)
KOSPO Jordan LLC		24,077		13,594		7,331		953
EWP Philippines Corporation		1,708		836		—		(17	)
EWP America Inc. (*1)		79,854		67,308		23,543		(9,737	)
KNF Canada Energy Limited		1,884		31		—		(43	)
PT KEPCO Resource Indonesia		491		—		—		(311	)
EWP Barbados 1 SRL		235,096		450		—		(2,585	)
Gyeonggi Green Energy Co., Ltd.		282,408		199,160		95,192		3,203
PT. Tanggamus Electric Power		179,317		160,144		34,281		4,640
Gyeongju Wind Power Co., Ltd.		112,279		82,124		7,219		2,400
KOMIPO America Inc.		10,505		521		—		2,071
KOSEP USA, INC.		184		9,065		—		26,997
PT. EWP Indonesia		2,035		23		—		1,916

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
KEPCO Netherlands J3 B.V.	W	122,612		76		—		12,115
Korea Offshore Wind Power Co., Ltd.		190,195		1,985		—		(6,997	)
Global One Pioneer B.V.		151		38		—		(80	)
Global Energy Pioneer B.V.		309		41		—		(87	)
Mira Power Limited		208,150		163,198		—		737
KOSEP Material Co., Ltd.		2,751		1,448		3,128		320
Commerce and Industry Energy Co., Ltd.		99,129		87,926		30,577		(749	)
KEPCO Singapore Holdings Pte., Ltd.		3,265		4		—		(24	)
KOWEPO India Private Limited		781		—		—		(46	)
KEPCO KPS Philippines Corp.		6,636		235		6,840		555
KOSPO Chile SpA		133,570		50,109		—		1,066
PT. KOWEPO Sumsel Operation And Maintenance Services		1,350		279		7,651		659
HeeMang Sunlight Power Co., Ltd.		6,876		3,395		105		(229	)
Fujeij Wind Power Company		165,636		156,099		—		8,836
KOSPO Youngnam Power Co.,Ltd.		412,785		333,302		68,973		939
HI Carbon Professional Private Special Asset Investment Trust 1		3,002		—		—		12
Chitose Solar Power Plant LLC		136,098		121,622		7,083		4,100
KEPCO Energy Solution Co. Ltd.		313,401		12,376		5,544		1,325
Solar School Plant Co., Ltd.		201,482		599		67		874
KOSPO Power Services Limitada		3,901		887		11,067		666
Energy New Industry Specialized Investment Private Investment Trust (*3)		506,207		2,118		—		52
KOEN Bylong Pty., Ltd.		5,875		—		—		—
KOMIPO Bylong Pty., Ltd.		5,875		—		—		—
KOWEPO Bylong Pty., Ltd.		5,875		—		—		—
KOSPO Bylong Pty., Ltd.		5,875		—		—		—
EWP Bylong Pty., Ltd.		5,875		—		—		—
KOWEPO Lao International		3,259		1,452		3,624		1,881
KEPCO US Inc.		16,913		—		—		—
KEPCO Alamosa LLC		33,144		492		—		(218	)
Cogentrix Solar Services, LLC (*2)		84,458		53,116		8,958		(112	)
KEPCO-LG CNS Mangilao Holdings LLC		24,131		24,395		—		(278	)
Mangilao Investment LLC		24,131		—		—		—
KEPCO-LG CNS Mangilao Solar, LLC		24,002		134		—		(278	)
Jeju Hanlim Offshore Wind Co., Ltd.		36		—		—		—
PT. Siborpa Eco Power		11,562		214		—		(518	)

(*1) Financial information of EWP America Inc. includes that of six other subsidiaries, EWP Renewable Corporation, DG Fairhaven Power, LLC, DG Whitefield, LLC, Springfield Power, LLC, California Power Holdings, LLC, and EWPRC Biomass Holdings, LLC.

(*2) Financial information of Cogentrix Solar Services, LLC includes that of two other subsidiaries, Solar Investments I, LLC and Cogentrix of Alamosa, LLC.

(*3) Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of three other subsidiaries, BSKE-New Industry Fund VII,e-New Industry LB Fund 1 and Songhyune-New Industry Fund.

71

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 thanW35 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.
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. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.
Incheon Fuel Cell Co., Ltd.	Acquisition or disposal of assets of more thanW20 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.

72

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(5) Details ofnon-controlling interest prior to intra-group eliminations as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows:

In millions of won
September 30, 2018
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	169,629			598,334			260,219			1,360,026			2,388,208
Non-current assets		286,372			625,212			496,018			2,747,340			4,154,942
Current liabilities		(11,525	)		(256,680	)		(235,211	)		(364,006	)		(867,422	)
Non-current liabilities		(41,902	)		(58,146	)		(69,238	)		(2,118,510	)		(2,287,796	)
Net assets		402,574			908,720			451,788			1,624,850			3,387,932
Book value ofnon-controlling interest		197,261			445,273			153,247			668,382			1,464,163
Sales		74,236			853,693			273,074			737,218			1,938,221
Profit for the period		32,965			86,227			8,383			77,967			205,542
Profit for the period attributable tonon-controlling interest		16,153			42,251			2,844			23,055			84,303
Cash flows from operating activities		60,580			98,954			61,964			123,199			344,697
Cash flows from investing activities		(6,556	)		(78,424	)		(26,501	)		(62,914	)		(174,395	)
Cash flows from financing activities before dividends tonon-controlling interest		(31,382	)		(33,737	)		(14,591	)		48,064			(31,646	)
Dividends tonon-controlling interest		(30,984	)		(32,414	)		(2,838	)		(9,962	)		(76,198	)
Effect of exchange rate fluctuation		2,589			64			(10	)		1,126			3,769
Net increase (decrease) of cash and cash equivalents		(5,753	)		(45,557	)		18,024			99,513			66,227
In millions of won
December 31, 2017
Description	KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
Percentage of ownership		49.00	%		49.00	%		33.92	%
Current assets	W	160,588			623,934			257,529			1,269,175			2,311,226
Non-current assets		314,036			571,152			504,637			2,588,833			3,978,658
Current liabilities		(21,546	)		(278,562	)		(221,860	)		(394,320	)		(916,288	)
Non-current liabilities		(36,255	)		(16,127	)		(83,274	)		(2,014,925	)		(2,150,581	)
Net assets		416,823			900,397			457,032			1,448,763			3,223,015
Book value ofnon-controlling interest		204,243			441,194			155,025			612,245			1,412,707
Sales		109,183			1,232,113			490,193			719,087			2,550,576
Profit for the period		66,320			135,482			21,222			66,419			289,443
Profit for the period attributable tonon-controlling interest		32,497			66,386			7,199			20,447			126,529
Cash flows from operating activities		123,534			129,801			62,578			60,021			375,934
Cash flows from investing activities		(5,276	)		(193,408	)		(8,622	)		(409,353	)		(616,659	)
Cash flows from financing activities before dividends tonon-controlling interest		(44,442	)		(15,606	)		(55,504	)		339,432			223,880
Dividends tonon-controlling interest		(48,855	)		(14,994	)		(1,419	)		(20,840	)		(86,108	)
Effect of exchange rate fluctuation		(7,432	)		(1,267	)		(101	)		(24,206	)		(33,006	)
Net increase (decrease) of cash and cash equivalents		17,529			(95,474	)		(3,068	)		(54,946	)		(135,959	)

73

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(6) Changes in goodwill

(i) Details of goodwill as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Acquisition cost	W	2,582		2,582
Accumulated impairment		—		—
Carrying book value	W	2,582		2,582

(ii) There are no changes in goodwill for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017.

(7) Disposals of subsidiaries

The Company liquidated KEPCO Canada Energy Ltd , Cogentrix Solar Services, LLC and Solar Investments I, LLC during the nine-month period ended September 30, 2018.

(i) The fair value of proceeds from disposal as of September 30, 2018 is as follows:

In millions of won	September 30, 2018
Consideration received in cash	W	103
Net assets transferred due to dissolution		—
Total	W	103

(ii) The carrying value of assets and liabilities of subsidiaries as at the date the Company lost its control during the nine-month period ended September 30, 2018 is as follows:

In millions of won	September 30, 2018
Current assets
Cash and cash equivalents	W	117
Trade and other receivables		11
Current liabilities
Trade and other payables		(28	)
	W	100

(iii) Gain from disposals of subsidiaries for the nine-month period ended September 30, 2018 is as follows:

In millions of won	September 30, 2018
Fair value of sale price	W	103
Net assets disposed		(100	)
Non-controlling interests		—
Realization of unrealized gain		—
Other comprehensive income		—
Gain from disposals of subsidiaries (*1)	W	3

(*1) Gain from disposals of subsidiaries is included in the consolidated statements of comprehensive income.

74

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Disposals of subsidiaries, continued

(iv) Net cashflow from sales of subsidiaries for the nine-month period ended September 30, 2018 is as follows:

In millions of won	September 30, 2018
Consideration received in cash	W	103
Less: cash held by disposed subsidiary		(117	)
Net cash flow	W	(14	)

75

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won
September 30, 2018
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation (*1)	Importing and wholesaling LNG		KOREA		20.47	%	W	94,500		1,693,132
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others		KOREA		29.00	%		4,727		23,478
YTN Co., Ltd.	Broadcasting		KOREA		21.43	%		59,000		39,953
Cheongna Energy Co., Ltd.	Generating and distributing vapor and hot/cold water		KOREA		43.90	%		48,353		3,458
Gangwon Wind Power Co., Ltd. (*2)	Power generation		KOREA		15.00	%		5,725		12,944
Hyundai Green Power Co., Ltd.	Power generation		KOREA		29.00	%		88,885		120,046
Korea Power Exchange (*5)	Management of power market and others		KOREA		100.00	%		127,839		265,591
AMEC Partners Korea Ltd. (*3)	Resources development		KOREA		19.00	%		707		211
Hyundai Energy Co., Ltd. (*8)	Power generation		KOREA		30.66	%		71,070		—
Ecollite Co., Ltd.	Artificial light-weight aggregate		KOREA		36.10	%		1,516		—
Taebaek Wind Power Co., Ltd.	Power generation		KOREA		25.00	%		3,810		5,654
Taeback Guinemi Wind Power Co., Ltd.	Power generation		KOREA		25.00	%		3,420		2,576
Pyeongchang Wind Power Co., Ltd.	Power generation		KOREA		25.00	%		3,875		5,408
Daeryun Power Co., Ltd. (*3, 9)	Power generation		KOREA		6.73	%		25,477		20,615
Changjuk Wind Power Co., Ltd.	Power generation		KOREA		30.00	%		3,801		8,085
KNH Solar Co., Ltd.	Power generation		KOREA		27.00	%		1,296		2,296
SPC Power Corporation	Power generation		PHILIPPINES		38.00	%		20,635		58,679
Gemeng International Energy Co., Ltd.	Power generation		CHINA		34.00	%		413,153		632,317
PT. Cirebon Electric Power	Power generation		INDONESIA		27.50	%		40,365		106,567
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		33,446
PT. Bayan Resources TBK	Resources development		INDONESIA		20.00	%		615,860		501,021
S-Power Co., Ltd.	Power generation		KOREA		49.00	%		132,300		113,781
Pioneer Gas Power Limited (*7)	Power generation		INDIA		38.50	%		49,831		24,609
Eurasia Energy Holdings	Power generation and resources development		RUSSIA		40.00	%		461		—
Xe-PianXe-Namnoy Power Co., Ltd.	Power generation		LAOS		25.00	%		82,626		75,714
Hadong Mineral Fiber Co., Ltd. (*3)	Recycling fly ashes		KOREA		8.33	%		50		—
Green Biomass Co., Ltd. (*11)	Power generation		KOREA		8.80	%		714		138
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal		INDONESIA		29.00	%		2,978		—
Samcheok Eco Materials Co., Ltd. (*10)	Recycling fly ashes		KOREA		2.35	%		686		—
Noeul Green Energy Co., Ltd.	Power generation		KOREA		29.00	%		1,740		6,284
Naepo Green Energy Co., Ltd.	Power generation		KOREA		41.67	%		29,200		19,201
Goseong Green Energy Co., Ltd. (*2)	Power generation		KOREA		1.12	%		2,900		2,452
Gangneung Eco Power Co., Ltd. (*2)	Power generation		KOREA		1.61	%		2,900		2,528
Shin Pyeongtaek Power Co., Ltd.	Power generation		KOREA		40.00	%		72,000		65,836
Heang Bok Do Si Photovoltaic Power Co., Ltd.	Power generation		KOREA		28.00	%		194		197
Dongducheon Dream Power Co., Ltd. (*15)	Power generation		KOREA		33.61	%		148,105		77,326
Jinbhuvish Power Generation Pvt. Ltd. (*2)	Power generation		INDIA		5.16	%		9,000		—
SE Green Energy Co., Ltd.	Power generation		KOREA		47.76	%		3,821		3,379
Daegu Photovoltaic Co., Ltd.	Power generation		KOREA		29.00	%		1,230		1,925
Jeongam Wind Power Co., Ltd.	Power generation		KOREA		40.00	%		5,580		3,402
Korea Power Engineering Service Co., Ltd.	Construction and service		KOREA		29.00	%		290		4,190
Busan Green Energy Co., Ltd.	Power generation		KOREA		29.00	%		5,243		12,127
Gunsan Bio Energy Co., Ltd. (*2)	Power generation		KOREA		18.87	%		1,000		—
Korea Electric Vehicle Charging Service	Electric vehicle charge service		KOREA		28.00	%		2,800		1,744
Ulleungdo Natural Energy Co., Ltd.	Renewable power generation		KOREA		29.85	%		8,000		6,143
Korea Nuclear Partners Co., Ltd.	Electric material agency		KOREA		29.00	%		290		243
Tamra Offshore Wind Power Co., Ltd.	Power generation		KOREA		27.00	%		8,910		10,582
Korea Electric Power Corporation Fund (*12)	Developing electric enterprises		KOREA		98.09	%		51,500		46,544
Energy Infra Asset Management Co., Ltd. (*3)	Asset management		KOREA		9.90	%		297		612

76

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
Daegu clean Energy Co., Ltd.	Renewable power generation		KOREA		28.00	%	W	140		23
YaksuESS Co., Ltd	Installing ESS related equipment		KOREA		29.00	%		210		440
Nepal Water & Energy Development Company Private Limited (*14)	Construction and operation of utility plant		NEPAL		57.67	%		33,577		30,945
Gwangyang Green Energy Co., Ltd.	Power generation		KOREA		20.00	%		2,000		1,446
PND solar., Ltd	Power generation		KOREA		29.00	%		1,250		1,094
Hyundai Eco Energy Co., Ltd. (*2)	Power generation		KOREA		19.00	%		3,610		3,610
								2,320,763		4,051,992
<Joint ventures>
KEPCO-Uhde Inc. (*6)	Power generation		KOREA		52.80	%		11,355		221
Eco Biomass Energy Sdn. Bhd. (*6)	Power generation		MALAYSIA		61.53	%		14,439		—
Shuweihat Asia Power Investment B.V.	Holding company		NETHERLANDS		49.00	%		44,433		29,065
Shuweihat Asia Operation & Maintenance Company (*6)	Maintenance of utility plant		CAYMAN		55.00	%		30		1,012
Waterbury Lake Uranium L.P.	Resources development		CANADA		34.54	%		26,602		19,801
ASM-BG Investicii AD	Power generation		BULGARIA		50.00	%		16,101		21,772
RES Technology AD	Power generation		BULGARIA		50.00	%		15,595		15,928
KV Holdings, Inc.	Power generation		PHILIPPINES		40.00	%		2,103		1,608
KEPCO SPC Power Corporation (*6)	Construction and operation of utility plant		PHILIPPINES		75.20	%		94,579		204,281
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation		CHINA		40.00	%		16,621		9,950
Datang Chifeng Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		121,928		178,486
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		CHINA		40.00	%		10,858		38,885
Rabigh Electricity Company	Power generation		SAUDI ARABIA		40.00	%		109,743		114,379
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant		SAUDI ARABIA		40.00	%		70		5,487
Jamaica Public Service Company Limited	Power generation		JAMAICA		40.00	%		301,910		229,679
KW Nuclear Components Co., Ltd.	Manufacturing		KOREA		45.00	%		833		7,736
Busan Shinho Solar Power Co., Ltd.	Power generation		KOREA		25.00	%		2,100		4,613
GS Donghae Electric Power Co., Ltd.	Power generation		KOREA		34.00	%		204,000		241,534
Global Trade Of Power System Co., Ltd.	Exporting products and technology of small or medium business by proxy		KOREA		29.00	%		290		504
Expressway Solar-light Power Generation Co., Ltd.	Power generation		KOREA		29.00	%		1,856		2,626
Daejung Offshore Wind Power Co., Ltd.	Power generation		KOREA		49.90	%		5,190		2,779
Amman Asia Electric Power Company (*6)	Power generation		JORDAN		60.00	%		111,476		177,436
KAPES, Inc. (*6)	R&D		KOREA		51.00	%		5,629		9,096
Dangjin Eco Power Co., Ltd.	Power generation		KOREA		34.00	%		61,540		20,102
Honam Wind Power Co., Ltd.	Power generation		KOREA		29.00	%		3,480		4,588
Chun-cheon Energy Co., Ltd.	Power generation		KOREA		29.90	%		52,700		45,029
Yeonggwangbaeksu Wind Power Co., Ltd. (*3)	Power generation		KOREA		15.00	%		3,000		2,808
Nghi Son 2 Power LLC	Power generation		VIETNAM		50.00	%		2,781		—
Kelar S.A (*6)	Power generation		CHILE		65.00	%		77,220		66,433
PT. Tanjung Power Indonesia	Power generation		INDONESIA		35.00	%		746		8,826
Incheon New Power Co., Ltd.	Power generation		KOREA		29.00	%		461		584
Seokmun Energy Co., Ltd.	Power generation		KOREA		29.00	%		15,370		15,775
Daehan Wind Power PSC	Power generation		JORDAN		50.00	%		2,740		1,441
Barakah One Company (*13)	Power generation		UAE		18.00	%		118		5,279
Nawah Energy Company (*13)	Operation of utility plant		UAE		18.00	%		296		273
MOMENTUM	International thermonuclear experimental reactor construction management		FRANCE		33.33	%		1		521
Daegu Green Power Co., Ltd.	Power generation		KOREA		29.00	%		46,225		41,449
Yeonggwang Wind Power Co., Ltd.	Power generation		KOREA		41.00	%		15,375		15,339
Chester Solar IV SpA (*6)	Power generation		CHILE		81.82	%		1,700		586

77

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Key operation activities	Location		Percentage of ownership			Acquisition cost		Book value
Chester Solar V SpA (*6)	Power generation		CHILE		81.82	%	W	525		42
Diego de Almagro Solar SpA (*6)	Power generation		CHILE		81.82	%		2,091		1,189
South Jamaica Power Company Limited	Power generation		JAMAICA		20.00	%		15,493		15,370
Daesan Green Energy Co., Ltd.	Power generation		KOREA		35.00	%		17,850		17,359
RE Holiday Holdings LLC	Power generation		USA		50.00	%		42,862		51,315
RE Pioneer Holdings LLC	Power generation		USA		50.00	%		27,372		38,149
RE Barren Ridge 1 Holdings LLC	Power generation		USA		50.00	%		26,950		39,309
RE Astoria 2 LandCo LLC	Power generation		USA		50.00	%		4,663		5,384
RE Barren Ridge LandCo LLC	Power generation		USA		50.00	%		1,970		1,889
Laurel SpA (*6)	Power generation		CHILE		81.82	%		1,222		684
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd (*3)	Power generation		AUSTRALIA		12.37	%		4,095		4,017
Chile Solar JV SpA	Power generation		CHILE		50.00	%		36,654		37,251
								1,583,241		1,757,869
							W	3,904,004		5,809,861

(*1) The effective percentage of ownership is 21.57% considering treasury stocks.

(*2) 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.

(*3) The Company can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity.

(*4) 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 influence on the entity.

(*5) 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. The Company can exercise significant influence by its right to nominate directors to the board of directors of the entity.

(*6) According to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

(*7) As of reporting date, the annual reporting period of all associates and joint ventures ends on December 31, except for Pioneer Gas Power Limited whose reporting period ends on March 31.

(*8) As of September 30, 2018, 15.64% of ownership of Hyundai Energy Co., Ltd. is held by NH Power ll Co., Ltd. and NH Bank. According to the shareholders’ agreement reached on March 2011, not only does the Company have a call option to acquire the investment in Hyundai Energy Co., Ltd. from NH Power ll Co., Ltd. and NH Bank with a certain rate of return, NH Power ll Co., Ltd. and NH Bank also have put options to dispose of their investment to the Company. In connection with this agreement, the Company applied the equity method on the investment in Hyundai Energy Co., Ltd. with 46.30% of ownership.

(*9) The effective percentage of ownership is 9.34% considering stock purchase options.

(*10) The Company’s effective percentage of ownership excluding the redeemable convertible preferred stock is 25.54%.

(*11) The effective percentage of ownership is less than 20% but the Company can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity and the fact that the dominant portion of the investee’s sales transactions is generated from the Company.

(*12) 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. For this reason, the entity is classified as an associate.

(*13) The effective percentage of ownership is less than 20% but the Company has joint control over the entity as decisions on the major activities require the unanimous consent of the parties that collectively control the entity

(*14) The effective percentage of ownership is more than 50% but the Company does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate.

(*15) The effective percentage of ownership is 34.01% considering redeemable convertible preferred stock.

78

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Key operation activities	Location	Percentage of ownership			Acquisition cost		Book value
<Associates>
Korea Gas Corporation (*1)	Importing and wholesaling LNG	KOREA		20.47	%	W	94,500		1,618,868
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others	KOREA		29.00	%		4,727		21,838
YTN Co., Ltd.	Broadcasting	KOREA		21.43	%		59,000		40,606
Cheongna Energy Co., Ltd.	Generating and distributing vapor and hot/cold water	KOREA		43.90	%		48,353		8,337
Gangwon Wind Power Co., Ltd. (*2)	Power generation	KOREA		15.00	%		5,725		13,855
Hyundai Green Power Co., Ltd.	Power generation	KOREA		29.00	%		88,885		114,806
Korea Power Exchange (*5)	Management of power market and others	KOREA		100.00	%		127,839		237,631
AMEC Partners Korea Ltd. (*3)	Resources development	KOREA		19.00	%		707		215
Hyundai Energy Co., Ltd. (*8)	Power generation	KOREA		30.66	%		71,070		—
Ecollite Co., Ltd.	Artificial light-weight aggregate	KOREA		36.10	%		1,516		—
Taebaek Wind Power Co., Ltd.	Power generation	KOREA		25.00	%		3,810		5,319
Taeback Guinemi Wind Power Co., Ltd.	Power generation	KOREA		25.00	%		3,420		3,089
Pyeongchang Wind Power Co., Ltd.	Power generation	KOREA		25.00	%		3,875		4,136
Daeryun Power Co., Ltd. (*3, 9)	Power generation	KOREA		13.13	%		25,477		25,113
Changjuk Wind Power Co., Ltd.	Power generation	KOREA		30.00	%		3,801		7,515
KNH Solar Co., Ltd.	Power generation	KOREA		27.00	%		1,296		2,218
SPC Power Corporation	Power generation	PHILIPPINES		38.00	%		20,635		52,283
Gemeng International Energy Co., Ltd.	Power generation	CHINA		34.00	%		413,153		649,973
PT. Cirebon Electric Power	Power generation	INDONESIA		27.50	%		40,365		97,410
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		29,403
PT. Bayan Resources TBK	Resources development	INDONESIA		20.00	%		615,860		451,831
S-Power Co., Ltd.	Power generation	KOREA		49.00	%		132,300		116,945
Pioneer Gas Power Limited (*7)	Power generation	INDIA		38.50	%		49,831		38,659
Eurasia Energy Holdings	Power generation and resources development	RUSSIA		40.00	%		461		—
Xe-PianXe-Namnoy Power Co., Ltd.	Power generation	LAOS		25.00	%		71,481		61,779
Hadong Mineral Fiber Co., Ltd. (*3)	Recycling fly ashes	KOREA		8.33	%		50		—
Green Biomass Co., Ltd. (*11, 14)	Power generation	KOREA		8.80	%		714		208
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal	INDONESIA		29.00	%		2,978		—
Samcheok Eco Materials Co., Ltd. (*10)	Recycling fly ashes	KOREA		2.35	%		686		—
Noeul Green Energy Co., Ltd.	Power generation	KOREA		29.00	%		1,740		2,067
Naepo Green Energy Co., Ltd.	Power generation	KOREA		41.67	%		29,200		20,598
Goseong Green Energy Co., Ltd. (*2)	Power generation	KOREA		1.12	%		2,900		2,597
Gangneung Eco Power Co., Ltd. (*2)	Power generation	KOREA		1.61	%		2,900		2,583
Shin Pyeongtaek Power Co., Ltd.	Power generation	KOREA		40.00	%		43,920		34,903
Heang Bok Do Si Photovoltaic Power Co., Ltd.	Power generation	KOREA		28.00	%		194		187
Dongducheon Dream Power Co., Ltd.	Power generation	KOREA		33.61	%		111,134		53,233
Jinbhuvish Power Generation Pvt. Ltd. (*2)	Power generation	INDIA		5.16	%		9,000		—
SE Green Energy Co., Ltd.	Power generation	KOREA		47.76	%		3,821		3,476
Daegu Photovoltaic Co., Ltd.	Power generation	KOREA		29.00	%		1,230		1,718
Jeongam Wind Power Co., Ltd.	Power generation	KOREA		40.00	%		5,580		3,763
Korea Power Engineering Service Co., Ltd.	Construction and service	KOREA		29.00	%		290		3,659
Busan Green Energy Co., Ltd.	Power generation	KOREA		29.00	%		5,243		7,363
Gunsan Bio Energy Co., Ltd. (formerly, Jungbu Bio Energy Co., Ltd.) (*2)	Power generation	KOREA		18.87	%		1,000		—
Korea Electric Vehicle Charging Service	Electric vehicle charge service	KOREA		28.00	%		2,604		1,749
Ulleungdo Natural Energy Co., Ltd.	Renewable power generation	KOREA		29.85	%		8,000		6,370
Korea Nuclear Partners Co., Ltd.	Electric material agency	KOREA		29.00	%		290		383
Tamra Offshore Wind Power Co., Ltd.	Power generation	KOREA		27.00	%		8,910		8,560
Korea Electric Power Corporation Fund (*12)	Developing electric enterprises	KOREA		98.09	%		51,500		47,974
Energy Infra Asset Management Co., Ltd. (*3)	Asset management	KOREA		9.90	%		297		476
Daegu clean Energy Co., Ltd.	Renewable power generation	KOREA		28.00	%		140		11
YaksuESS Co., Ltd	Installing ESS related equipment	KOREA		29.00	%		210		194
Nepal Water & Energy Development Company Private Limited (*15)	Construction and operation of utility plant	NEPAL		62.13	%		33,577		30,498

79

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Key operation activities	Location	Percentage of ownership			Acquisition cost		Book value
Gwangyang Green Energy Co., Ltd.	Power generation	KOREA		20.00	%	W	2,000		1,772
PND solar., Ltd	Power generation	KOREA		29.00	%		1,250		1,250
							2,240,761		3,837,421
<Joint ventures>
KEPCO-Uhde Inc. (*6)	Power generation	KOREA		52.80	%		11,355		258
Eco Biomass Energy Sdn. Bhd. (*6)	Power generation	MALAYSIA		61.53	%		14,439		—
Datang Chaoyang Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%		27,660		27,262
Shuweihat Asia Power Investment B.V.	Holding company	NETHERLANDS		49.00	%		46,037		15,675
Shuweihat Asia Operation & Maintenance Company (*6)	Maintenance of utility plant	CAYMAN		55.00	%		30		663
Waterbury Lake Uranium L.P.	Resources development	CANADA		35.76	%		26,602		19,781
ASM-BG Investicii AD	Power generation	BULGARIA		50.00	%		16,101		21,202
RES Technology AD	Power generation	BULGARIA		50.00	%		15,595		14,375
KV Holdings, Inc.	Power generation	PHILIPPINES		40.00	%		2,103		1,918
KEPCO SPC Power Corporation (*6)	Construction and operation of utility plant	PHILIPPINES		75.20	%		94,579		217,094
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation	CHINA		40.00	%		16,621		10,840
Datang Chifeng Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%		121,928		171,055
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%		10,858		11,060
Rabigh Electricity Company	Power generation	SAUDI ARABIA		40.00	%		109,743		99,356
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant	SAUDI ARABIA		40.00	%		70		3,987
Jamaica Public Service Company Limited	Power generation	JAMAICA		40.00	%		301,910		221,153
KW Nuclear Components Co., Ltd.	Manufacturing	KOREA		45.00	%		833		6,703
Busan Shinho Solar Power Co., Ltd.	Power generation	KOREA		25.00	%		2,100		4,346
GS Donghae Electric Power Co., Ltd.	Power generation	KOREA		34.00	%		204,000		220,727
Global Trade Of Power System Co., Ltd.	Exporting products and technology of small or medium business by proxy	KOREA		29.00	%		290		577
Expressway Solar-light Power Generation Co., Ltd.	Power generation	KOREA		29.00	%		1,856		2,463
KODE NOVUS I LLC	Power generation	USA		50.00	%		19,213		—
KODE NOVUS II LLC	Power generation	USA		50.00	%		12,756		—
Daejung Offshore Wind Power Co., Ltd.	Power generation	KOREA		49.90	%		5,190		2,969
Amman Asia Electric Power Company (*6)	Power generation	JORDAN		60.00	%		111,476		145,676
KAPES, Inc. (*6)	R&D	KOREA		51.00	%		5,629		7,476
Dangjin Eco Power Co., Ltd.	Power generation	KOREA		34.00	%		61,540		57,928
Honam Wind Power Co., Ltd.	Power generation	KOREA		29.00	%		3,480		4,302
Chun-cheon Energy Co., Ltd.	Power generation	KOREA		29.90	%		52,700		48,118
Yeonggwangbaeksu Wind Power Co., Ltd. (*3)	Power generation	KOREA		15.00	%		3,000		2,734
Nghi Son 2 Power LLC	Power generation	VIETNAM		50.00	%		2,781		183
Kelar S.A (*6)	Power generation	CHILE		65.00	%		77,220		67,233
PT. Tanjung Power Indonesia	Power generation	INDONESIA		35.00	%		746		1,776
Incheon New Power Co., Ltd.	Power generation	KOREA		29.00	%		461		619
Seokmun Energy Co., Ltd.	Power generation	KOREA		29.00	%		15,370		13,786
Daehan Wind Power PSC	Power generation	JORDAN		50.00	%		285		—
Barakah One Company (*13)	Power generation	UAE		18.00	%		118		626
Nawah Energy Company (*13)	Operation of utility plant	UAE		18.00	%		296		258
MOMENTUM	International thermonuclear experimental reactor construction management	FRANCE		33.33	%		1		391
Daegu Green Power Co., Ltd.	Power generation	KOREA		29.00	%		46,225		42,391
Yeonggwang Wind Power Co., Ltd.	Power generation	KOREA		41.00	%		15,375		15,294
Chester Solar IV SpA (*6)	Power generation	CHILE		81.82	%		1,700		1,700
Chester Solar V SpA (*6)	Power generation	CHILE		81.82	%		525		525
Diego de Almagro Solar SpA (*6)	Power generation	CHILE		81.82	%		2,091		2,091
South Jamaica Power Company Limited	Power generation	JAMAICA		20.00	%		7,090		6,704
							1,469,978		1,493,275
						W	3,710,739		5,330,696

80

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of September 30, 2018 and December 31, 2017 are as follows, continued:

(*1) The effective percentage of ownership is 21.57% considering treasury stocks.

(*2) 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.

(*3) The Company can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity.

(*4) 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 influence on the entity.

(*5) 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. The Company can exercise significant influence by its right to nominate directors to the board of directors of the entity.

(*6) According to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For these reasons, the entities are classified as joint ventures.

(*7) As of reporting date, the annual reporting period of all associates and joint ventures ends on December 31, except for Pioneer Gas Power Limited whose reporting period ends on March 31.

(*8) As of December 31, 2017, 15.64% of ownership of Hyundai Energy Co., Ltd. is held by NH Power ll Co., Ltd. and NH Bank. According to the shareholders’ agreement reached on March 2011, not only does the Company have a call option to acquire the investment in Hyundai Energy Co., Ltd. from NH Power ll Co., Ltd. and NH Bank with a certain rate of return, NH Power ll Co., Ltd. and NH Bank also have put options to dispose of their investment to the Company. In connection with this agreement, the Company applied the equity method on the investment in Hyundai Energy Co., Ltd. with 46.30% of ownership.

(*9) The effective percentage of ownership is 19.45% considering stock purchase options.

(*10) The Company’s effective percentage of ownership excluding the redeemable convertible preferred stock is 25.54%.

(*11) The effective percentage of ownership is less than 20% but the Company can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity and the fact that the dominant portion of the investee’s sales transactions is generated from the Company.

(*12) 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. For this reason, the entity is classified as an associate.

(*13) The effective percentage of ownership is less than 20% but the Company has joint control over the entity as decisions on the major activities require the unanimous consent of the parties that collectively control the entity

(*14) The percentage of ownership decreased since the Company did not participate in the capital increase of Green Biomass Co., Ltd. during the period.

(*15) The effective percentage of ownership is more than 50% but the Company does not hold control over the entity according to the shareholders’ agreement. For this reason, the entity is classified as an associate.

81

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won
Investees	September 30, 2018		December 31, 2017
<Associates>
Korea Electric Power Industrial Development Co., Ltd.	W	35,453		38,667
Korea Gas Corporation		1,147,230		804,195
YTN Co., Ltd.		19,530		18,855
SPC Power Corporation		73,939		72,616
PT. Bayan Resources TBK		922,554		558,267

82

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows :

In millions of won
September 30, 2018
Investees	Beginning balance		Acquisition		Disposal		Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,618,868		—		—		—			76,019			(1,768	)		13			1,693,132
Korea Electric Power Industrial Development Co., Ltd.		21,838		—		—		(1,872	)		4,006			(102	)		(392	)		23,478
YTN Co., Ltd.		40,606		—		—		(180	)		(483	)		(182	)		192			39,953
Cheongna Energy Co., Ltd.		8,337		—		—		—			(4,879	)		—			—			3,458
Gangwon Wind Power Co., Ltd.		13,855		—		—		(2,272	)		1,361			—			—			12,944
Hyundai Green Power Co., Ltd.		114,806		—		—		(8,889	)		14,129			—			—			120,046
Korea Power Exchange		237,631		—		—		—			23,328			—			4,632			265,591
AMEC Partners Korea Ltd.		215		—		—		—			(4	)		—			—			211
Hyundai Energy Co., Ltd.		—		—		—		—			—			—			—			—
Ecollite Co., Ltd.		—		—		—		—			—			—			—			—
Taebaek Wind Power Co., Ltd.		5,319		—		—		(196	)		531			—			—			5,654
Taeback Guinemi Wind Power Co., Ltd.		3,089		—		—		—			(513	)		—			—			2,576
Pyeongchang Wind Power Co., Ltd.		4,136		—		—		—			1,272			—			—			5,408
Daeryun Power Co., Ltd.		25,113		—		—		—			(1,979	)		15			(2,534	)		20,615
Changjuk Wind Power Co., Ltd.		7,515		—		—		(416	)		986			—			—			8,085
KNH Solar Co., Ltd.		2,218		—		—		—			78			—			—			2,296
SPC Power Corporation		52,283		—		—		(4,727	)		3,865			7,247			11			58,679
Gemeng International Energy Co., Ltd.		649,973		—		—		(11,246	)		3,851			(10,261	)		—			632,317
PT. Cirebon Electric Power		97,410		—		—		(4,394	)		7,490			6,061			—			106,567
KNOC Nigerian East Oil Co., Ltd.		—		—		—		—			2,651			(419	)		(2,232	)		—
KNOC Nigerian West Oil Co., Ltd.		—		—		—		—			2,343			(367	)		(1,976	)		—
PT Wampu Electric Power		29,403		—		—		—			2,853			1,190			—			33,446
PT. Bayan Resources TBK		451,831		—		—		(33,651	)		59,444			23,397			—			501,021
S-Power Co., Ltd.		116,945		—		—		—			(3,164	)		—			—			113,781
Pioneer Gas Power Limited		38,659		—		—		—			(13,480	)		(570	)		—			24,609
Eurasia Energy Holdings		—		—		—		—			—			—			—			—
Xe-PianXe-Namnoy Power Co., Ltd.		61,779		11,145		—		—			162			2,628			—			75,714
Hadong Mineral Fiber Co., Ltd.		—		—		—		—			—			—			—			—
Green Biomass Co., Ltd.		208		—		—		—			(70	)		—			—			138
PT. Mutiara Jawa		—		—		—		—			—			—			—			—
Samcheok Eco Materials Co., Ltd.		—		—		—		—			—			—			—			—
Noeul Green Energy Co., Ltd.		2,067		—		—		—			3,954			—			263			6,284
Naepo Green Energy Co., Ltd.		20,598		—		—		—			(1,397	)		—			—			19,201
Goseong Green Energy Co., Ltd.		2,597		—		—		—			(145	)		—			—			2,452
Gangneung Eco Power Co., Ltd.		2,583		—		—		—			(55	)		—			—			2,528
Shin Pyeongtaek Power Co., Ltd.		34,903		28,080		—		—			(3,880	)		3,128			3,605			65,836
Heang Bok Do Si Photovoltaic Power Co., Ltd.		187		—		—		—			10			—			—			197
Dongducheon Dream Power Co., Ltd.		53,233		36,971		—		—			(12,878	)		—			—			77,326
Jinbhuvish Power Generation Pvt. Ltd.		—		—		—		—			—			—			—			—
SE Green Energy Co., Ltd.		3,476		—		—		—			(97	)		—			—			3,379
Daegu Photovoltaic Co., Ltd.		1,718		—		—		(128	)		335			—			—			1,925
Jeongam Wind Power Co., Ltd.		3,763		—		—		—			(361	)		—			—			3,402
Korea Power Engineering Service Co., Ltd.		3,659		—		—		(218	)		749			—			—			4,190
Busan Green Energy Co., Ltd.		7,363		—		—		—			4,620			—			144			12,127
Gunsan Bio Energy Co., Ltd.		—		—		—		—			—			—			—			—
Korea Electric Vehicle Charging Service		1,749		196		—		—			(201	)		—			—			1,744
Ulleungdo Natural Energy Co., Ltd.		6,370		—		—		—			(227	)		—			—			6,143
Korea Nuclear Partners Co., Ltd.		383		—		—		—			(140	)		—			—			243
Tamra Offshore Wind Power Co., Ltd.		8,560		—		—		—			2,022			—			—			10,582

83

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Beginning balance		Acquisition		Disposal			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
Korea Electric Power Corporation Fund	W	47,974		—		—			—			(1,522	)		92			—			46,544
Energy Infra Asset Management Co., Ltd.		476		—		—			—			136			—			—			612
Daegu clean Energy Co., Ltd.		11		—		—			—			12			—			—			23
YaksuESS Co., Ltd		194		—		—			—			246			—			—			440
Nepal Water & Energy Development Company Private Limited		30,498		—		—			—			(643	)		1,090			—			30,945
Gwangyang Green Energy Co., Ltd.		1,772		—		—			—			(326	)		—			—			1,446
PND solar., Ltd		1,250		—		—			—			(156	)		—			—			1,094
Hyundai Eco Energy Co., Ltd.		—		3,610					—			—			—			—			3,610
		3,837,421		80,002		—			(68,189	)		169,853			31,179			1,726			4,051,992
<Joint ventures>
KEPCO-Uhde Inc.		258		—		—			—			(37	)		—			—			221
Eco Biomass Energy Sdn. Bhd.		—		—		—			—			—			—			—			—
Datang Chaoyang Renewable Power Co., Ltd. (*3)		27,262		—		—			—			743			1,009			(29,014	)		—
Shuweihat Asia Power Investment B.V.		15,675		—		(1,604	)		(55	)		3,084			11,965			—			29,065
Shuweihat Asia Operation & Maintenance Company		663		—		—			(435	)		737			47			—			1,012
Waterbury Lake Uranium L.P.		19,781		—		—			—			(8	)		28			—			19,801
ASM-BG Investicii AD		21,202		—		—			(1,039	)		2,379			(770	)		—			21,772
RES Technology AD		14,375		—		—			—			1,354			199			—			15,928
KV Holdings, Inc.		1,918		—		—			(735	)		520			(95	)		—			1,608
KEPCO SPC Power Corporation		217,094		—		—			(33,476	)		37,602			(16,935	)		(4	)		204,281
Gansu Datang Yumen Wind Power Co., Ltd.		10,840		—		—			—			(794	)		(96	)		—			9,950
Datang Chifeng Renewable Power Co., Ltd.		171,055		—		—			—			9,723			(2,292	)		—			178,486
Datang KEPCO Chaoyang Renewable Power Co., Ltd. (*3)		11,060		—		—			—			259			(1,447	)		29,013			38,885
Rabigh Electricity Company		99,356		—		—			(16,151	)		13,178			17,995			1			114,379
Rabigh Operation & Maintenance Company Limited		3,987		—		—			(1,147	)		2,481			166			—			5,487
Jamaica Public Service Company Limited		221,153		—		—			—			—			8,526			—			229,679
KW Nuclear Components Co., Ltd.		6,703		—		—			(208	)		1,241			—			—			7,736
Busan Shinho Solar Power Co., Ltd.		4,346		—		—			(340	)		607			—			—			4,613
GS Donghae Electric Power Co., Ltd.		220,727		—		—			—			20,807			—			—			241,534
Global Trade Of Power System Co., Ltd.		577		—		—			—			(73	)		—			—			504
Expressway Solar-light Power Generation Co., Ltd.		2,463		—		—			—			163			—			—			2,626
KODE NOVUS I LLC (*1)		—		—		—			—			—			—			—			—
KODE NOVUS II LLC (*2)		—		—		—			—			—			—			—			—
Daejung Offshore Wind Power Co., Ltd.		2,969		—		—			—			(190	)		—			—			2,779
Amman Asia Electric Power Company		145,676		—		—			—			14,505			17,255			—			177,436
KAPES, Inc.		7,476		—		—			—			1,761			—			(141	)		9,096
Dangjin Eco Power Co., Ltd.		57,928		—		—			—			(37,826	)		(65	)		65			20,102
Honam Wind Power Co., Ltd.		4,302		—		—			(348	)		634			—			—			4,588
Chun-cheon Energy Co., Ltd.		48,118		—		—			—			(3,089	)		—			—			45,029

84

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Beginning balance		Acquisition		Disposal			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others		Ending balance
Yeonggwangbaeksu Wind Power Co., Ltd.	W	2,734		—		—			—			74			—			—		2,808
Nghi Son 2 Power LLC		183		—		—			—			(118	)		(65	)		—		—
Kelar S.A		67,233		—		—			—			4,859			(5,659	)		—		66,433
PT. Tanjung Power Indonesia		1,776		—		—			—			2,511			4,539			—		8,826
Incheon New Power Co., Ltd.		619		—		—			(41	)		6			—			—		584
Seokmun Energy Co., Ltd.		13,786		—		—			—			1,989			—			—		15,775
Daehan Wind Power PSC		—		1,837		—			—			(922	)		(92	)		618		1,441
Barakah One Company		626		—		—			—			2,749			1,904			—		5,279
Nawah Energy Company		258		—		—			—			4			11			—		273
MOMENTUM		391		—		—			—			127			3			—		521
Daegu Green Power Co., Ltd.		42,391		—		—			—			(942	)		—			—		41,449
Yeonggwang Wind Power Co., Ltd.		15,294		—		—			—			45			—			—		15,339
Chester Solar IV SpA		1,700		—		—			—			(972	)		(142	)		—		586
Chester Solar V SpA		525		—		—			—			(448	)		(35	)		—		42
Diego de Almagro Solar SpA		2,091		—		—			—			(689	)		(213	)		—		1,189
South Jamaica Power Company Limited		6,704		8,403		—			—			(124	)		387			—		15,370
Daesan Green Energy Co., Ltd.		—		17,850		—			—			(491	)		—			—		17,359
RE Holiday Holdings LLC		—		42,862		—			—			8,767			(314	)		—		51,315
RE Pioneer Holdings LLC		—		27,372		—			—			10,823			(46	)		—		38,149
RE Barren Ridge 1 Holdings LLC		—		26,950		—			—			12,362			(3	)		—		39,309
RE Astoria 2 LandCo LLC		—		4,663		—			—			762			(41	)		—		5,384
RE Barren Ridge LandCo LLC		—		1,970		—			—			(67	)		(14	)		—		1,889
Laurel SpA		—		1,222		—			—			(525	)		(13	)		—		684
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd		—		4,095		—			—			(15	)		(63	)		—		4,017
Chile Solar JV SpA		—		36,654		—			—			3,387			(2,790	)		—		37,251
		1,493,275		173,878		(1,604	)		(53,975	)		112,913			32,844			538		1,757,869
	W	5,330,696		253,880		(1,604	)		(122,164	)		282,766			64,023			2,264		5,809,861

(*1) The Company reclassified its shares of KODE NOVUS I LLC toavailable-for-sale financial assets during the nine-month period ended September 30, 2018 due tonon-participation of capital increase that resulted in loss of significant influence.

(*2) The Company sold all of its shares of KODE NOVUS II LLC during the nine-month period ended September 30, 2018.

(*3) Datang Chaoyang Renewable Power Co., Ltd. was merged with Datang KEPCO Chaoyang Renewable Power Co., Ltd. during the nine-month period ended September 30, 2018.

85

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Beginning balance		Acquisition		Disposal			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,933,877		—		—			—			(242,232	)		(72,648	)		(129	)		1,618,868
Korea Electric Power Industrial Development Co., Ltd.		20,475		—		—			(2,061	)		3,428			102			(106	)		21,838
YTN Co., Ltd.		38,156		—		—			(135	)		1,095			929			561			40,606
Cheongna Energy Co., Ltd.		12,373		—		—			—			(4,036	)		—			—			8,337
Gangwon Wind Power Co., Ltd.		13,069		—		—			(852	)		1,638			—			—			13,855
Hyundai Green Power Co., Ltd.		115,998		—		—			(8,889	)		7,697			—			—			114,806
Korea Power Exchange		223,238		—		—			—			8,831			—			5,562			237,631
AMEC Partners Korea Ltd.		225		—		—			—			(10	)		—			—			215
Hyundai Energy Co., Ltd.		1,031		—		—			—			(3,498	)		—			2,467			—
Ecollite Co., Ltd.		—		—		—			—			—			—			—			—
Taebaek Wind Power Co., Ltd.		4,750		—		—			—			569			—			—			5,319
Taeback Guinemi Wind Power Co., Ltd.		3,131		—		—			—			(42	)		—			—			3,089
Pyeongchang Wind Power Co., Ltd.		3,383		—		—			—			753			—			—			4,136
Daeryun Power Co., Ltd.		29,873		—		—			—			(4,762	)		—			2			25,113
Changjuk Wind Power Co., Ltd.		6,930		—		—			(111	)		696			—			—			7,515
KNH Solar Co., Ltd.		2,073		—		—			—			145			—			—			2,218
SPC Power Corporation		56,818		—		—			(5,562	)		4,310			(3,276	)		(7	)		52,283
Gemeng International Energy Co., Ltd.		680,065		—		—			(13,365	)		6,953			(23,680	)		—			649,973
PT. Cirebon Electric Power		96,658		—		—			(550	)		10,685			2,232			(11,615	)		97,410
KNOC Nigerian East Oil Co., Ltd.		—		—		—			—			(1,914	)		1,536			378			—
KNOC Nigerian West Oil Co., Ltd.		—		—		—			—			(1,712	)		1,407			305			—
PT Wampu Electric Power		23,188		—		—			—			9,336			—			(3,121	)		29,403
PT. Bayan Resources TBK		402,667		—		—			—			34,122			14,982			60			451,831
S-Power Co., Ltd.		123,912		—		—			—			(6,982	)		—			15			116,945
Pioneer Gas Power Limited		50,740		—		—			—			(11,119	)		(1,238	)		276			38,659
Eurasia Energy Holdings		—		—		—			—			—			—			—			—
Xe-PianXe-Namnoy Power Co., Ltd.		51,544		22,362		—			—			(4,264	)		(7,863	)		—			61,779
Hadong Mineral Fiber Co., Ltd.		—		—		—			—			(31	)		—			31			—
Green Biomass Co., Ltd.		47		—		—			—			(112	)		—			273			208
PT. Mutiara Jawa		—		—		—			—			—			—			—			—
Samcheok Eco Materials Co., Ltd.		—		—		—			—			—			—			—			—
Noeul Green Energy Co., Ltd.		1,217		—		—			—			850			—			—			2,067
Naepo Green Energy Co., Ltd. (*2)		25,438		—		—			—			(1,400	)		—			(3,440	)		20,598
Goseong Green Energy Co., Ltd.		2,663		—		—			—			(66	)		—			—			2,597
Gangneung Eco Power Co., Ltd.		2,646		—		—			—			(63	)		—			—			2,583
Shin Pyeongtaek Power Co., Ltd.		—		43,880		—			—			(10,998	)		(3,617	)		5,638			34,903
Heang Bok Do Si Photovoltaic Power Co., Ltd.		181		—		—			—			6			—			—			187
DS POWER Co., Ltd. (*4)		7,190		—		—			—			(1,321	)		—			(5,869	)		—
Dongducheon Dream Power Co., Ltd. (*1,3)		46,876		—		—			—			(10,980	)		—			17,337			53,233
KS Solar Co., Ltd.		604		—		(613	)		—			—			9			—			—
Jinbhuvish Power Generation Pvt. Ltd.		—		—		—			—			—			—			—			—
SE Green Energy Co., Ltd.		3,525		—		—			—			(49	)		—			—			3,476
Daegu Photovoltaic Co., Ltd.		1,700		—		—			(349	)		367			—			—			1,718
Jeongam Wind Power Co., Ltd.		4,000		—		—			—			(237	)		—			—			3,763
Korea Power Engineering Service Co., Ltd.		2,810		—		—			(191	)		1,030			—			10			3,659
Busan Green Energy Co., Ltd.		13,803		—		(9,320	)		—			2,884			—			(4	)		7,363
Gunsan Bio Energy Co., Ltd. (formerly, Jungbu Bio Energy Co., Ltd.)		—		—		—			—			—			—			—			—
Korea Electric Vehicle Charging Service		1,103		1,008		—			—			(362	)		—			—			1,749
Ulleungdo Natural Energy Co., Ltd.		6,894		—		—			—			(524	)		—			—			6,370
Korea Nuclear Partners Co., Ltd.		248		—		—			—			135			—			—			383
Tamra Offshore Wind Power Co., Ltd.		7,015		—		—			—			1,545			—			—			8,560

86

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Beginning balance		Acquisition		Disposal			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
Korea Electric Power Corporation Fund	W	50,856		—		—			—			(2,171	)		(711	)		—			47,974
Energy Infra Asset Management Co., Ltd.		259		—		—			—			217			—			—			476
Daegu clean Energy Co., Ltd.		140		—		—			—			(129	)		—			—			11
YaksuESS Co., Ltd		196		—		—			—			(2	)		—			—			194
Nepal Water & Energy Development Company Private Limited		18,667		15,009		—			—			(677	)		(2,501	)		—			30,498
Gwangyang Green Energy Co., Ltd.		—		2,000		—			—			(228	)		—			—			1,772
PND solar., Ltd		—		1,250		—			—			—			—			—			1,250
		4,092,252		85,509		(9,933	)		(32,065	)		(212,629	)		(94,337	)		8,624			3,837,421
<Joint ventures>
KEPCO-Uhde Inc.		301		—		—			—			(43	)		—			—			258
Eco Biomass Energy Sdn. Bhd.		—		—		—			—			—			—			—			—
Datang Chaoyang Renewable Power Co., Ltd.		28,239		—		—			(839	)		840			(978	)		—			27,262
Shuweihat Asia Power Investment B.V.		—		—		—			(1,707	)		4,275			12,457			650			15,675
Shuweihat Asia Operation & Maintenance Company		450		—		—			(770	)		1,055			(172	)		100			663
Waterbury Lake Uranium L.P.		21,314		—		—			—			(23	)		(949	)		(561	)		19,781
ASM-BG Investicii AD		21,488		—		—			(946	)		(150	)		810			—			21,202
RES Technology AD		13,582		—		—			—			1,053			(260	)		—			14,375
KV Holdings, Inc.		2,098		—		—			—			61			(241	)		—			1,918
KEPCO SPC Power Corporation		245,367		—		—			(37,443	)		42,359			(33,230	)		41			217,094
Canada Korea Uranium Limited partnership		—		—		—			—			—			—			—			—
Gansu Datang Yumen Wind Power Co., Ltd.		12,821		—		—			—			(1,299	)		(682	)		—			10,840
Datang Chifeng Renewable Power Co., Ltd.		166,535		—		—			—			14,079			(9,559	)		—			171,055
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		10,843		—		—			—			837			(620	)		—			11,060
Rabigh Electricity Company		97,802		—		—			(18,112	)		35,769			(15,227	)		(876	)		99,356
Rabigh Operation & Maintenance Company Limited		4,427		—		—			(2,130	)		2,236			(546	)		—			3,987
Jamaica Public Service Company Limited		249,453		—		—			—			—			(28,300	)		—			221,153
KW Nuclear Components Co., Ltd.		7,133		—		—			(208	)		(222	)		—			—			6,703
Busan Shinho Solar Power Co., Ltd.		3,814		—		—			(63	)		595			—			—			4,346
GS Donghae Electric Power Co., Ltd.		205,948		—		—			—			14,714			—			65			220,727
Global Trade Of Power System Co., Ltd.		477		—		—			—			100			—			—			577
Expressway Solar-light Power Generation Co., Ltd.		2,343		—		—			—			120			—			—			2,463
KODE NOVUS I LLC		—		—		—			—			—			—			—			—
KODE NOVUS II LLC		—		—		—			—			—			—			—			—
Daejung Offshore Wind Power Co., Ltd.		3,015		200		—			—			(246	)		—			—			2,969
Amman Asia Electric Power Company		153,857		—		—			(12,213	)		19,957			(15,925	)		—			145,676
KAPES, Inc.		4,758		—		—			—			2,752			—			(34	)		7,476
Dangjin Eco Power Co., Ltd.		53,253		5,440		—			—			(752	)		(3	)		(10	)		57,928
Honam Wind Power Co., Ltd.		4,451		—		—			(487	)		338			—			—			4,302
Chun-cheon Energy Co., Ltd.		50,592		—		—			—			(2,474	)		—			—			48,118

87

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Beginning balance		Acquisition		Disposal			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
Yeonggwangbaeksu Wind Power Co., Ltd.	W	2,689		—		—			—			45			—			—			2,734
Nghi Son 2 Power LLC		229		993		—			—			(1,039	)		—			—			183
Kelar S.A		—		73,040		—			—			(633	)		(5,175	)		1			67,233
PT. Tanjung Power Indonesia		1,946		—		—			—			2,112			(2,281	)		(1	)		1,776
Incheon New Power Co., Ltd.		563		—		—			—			56			—			—			619
Seokmun Energy Co., Ltd.		391		14,790		—			—			(1,219	)		(176	)		—			13,786
Daehan Wind Power PSC		16		—		—			—			(40	)		22			2			—
Barakah One Company		116		—		—			—			570			(60	)		—			626
Nawah Energy Company		290		—		—			—			(5	)		(27	)		—			258
MOMENTUM		67		—		—			—			321			3			—			391
Daegu Green Power Co., Ltd.		47,528		—		—			—			(5,133	)		—			(4	)		42,391
Yeonggwang Wind Power Co., Ltd.		—		15,375		—			—			(25	)		(56	)		—			15,294
Chester Solar IV SpA		—		1,700		—			—			—			—			—			1,700
Chester Solar V SpA		—		525		—			—			—			—			—			525
Diego de Almagro Solar SpA		—		2,091		—			—			—			—			—			2,091
South Jamaica Power Company Limited		—		7,090		—			—			—			—			(386	)		6,704
		1,418,196		121,244		—			(74,918	)		130,941			(101,175	)		(1,013	)		1,493,275
	W	5,510,448		206,753		(9,933	)		(106,983	)		(81,688	)		(195,512	)		7,611			5,330,696

(*1) It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Company recognized an impairment loss ofW23,798 million in impairment loss on investments in associates and joint ventures for the year ended December 31, 2017.

(*2) It was determined that there is objective evidence of impairment due to prolonged operating losses. As a result, the Company recognized an impairment loss ofW3,440 million in impairment loss on investments in associates and joint ventures for the year ended December 31, 2017.

(*3) ‘Others’ includeW41,170 million of assetsheld-for-sale (note 41).

(*4) ‘Others’ includeW4,438 million of assetsheld-for-sale (note 41), and also includeW1,439 million ofavailable-for-sale financial assets which is reclassified due to loss of significant influence.

88

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows:

In millions of won
September 30, 2018
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*1)	W	36,575,911		28,114,265		18,555,746		368,511
Korea Electric Power Industrial Development Co., Ltd.		157,086		76,129		239,042		16,243
YTN Co., Ltd.		280,138		93,639		90,527		(3,194	)
Cheongna Energy Co., Ltd.		423,597		421,297		43,892		(11,123	)
Gangwon Wind Power Co., Ltd.		88,134		2,170		19,199		9,082
Hyundai Green Power Co., Ltd.		1,113,407		699,455		375,040		42,395
Korea Power Exchange		292,585		26,994		81,221		23,328
AMEC Partners Korea Ltd.		1,114		3		—		(13	)
Hyundai Energy Co., Ltd.		481,681		519,573		71,191		(15,071	)
Ecollite Co., Ltd.		1,983		324		—		(41	)
Taebaek Wind Power Co., Ltd.		36,853		14,236		6,370		2,125
Taeback Guinemi Wind Power Co., Ltd.		10,404		100		—		(2,053	)
Pyeongchang Wind Power Co., Ltd.		82,467		60,835		10,144		4,206
Daeryun Power Co., Ltd.		798,567		507,190		138,449		(10,224	)
Changjuk Wind Power Co., Ltd.		35,025		8,075		6,122		3,287
KNH Solar Co., Ltd.		23,776		15,272		2,665		287
SPC Power Corporation		226,323		16,735		36,784		32,491
Gemeng International Energy Co., Ltd.		6,225,244		4,365,492		1,388,799		77,563
PT. Cirebon Electric Power		849,415		461,898		206,247		26,264
KNOC Nigerian East Oil Co., Ltd.		78,367		150,947		—		(156	)
KNOC Nigerian West Oil Co., Ltd.		70,104		136,998		—		(390	)
PT Wampu Electric Power		220,942		148,233		19,060		9,911
PT. Bayan Resources TBK		1,063,968		379,133		1,190,085		378,786
S-Power Co., Ltd.		795,539		559,752		368,130		(7,838	)
Pioneer Gas Power Limited		301,114		295,235		—		(35,015	)
Eurasia Energy Holdings		569		1,015		—		—
Xe-PianXe-Namnoy Power Co., Ltd.		1,001,112		694,327		—		1,119
Hadong Mineral Fiber Co., Ltd.		203		231		—		—
Green Biomass Co., Ltd.		4,884		3,306		833		(783	)
PT. Mutiara Jawa		22,209		22,645		11,605		2,207
Samcheok Eco Materials Co., Ltd.		24,769		3,229		1,484		(1,766	)
Noeul Green Energy Co., Ltd.		143,419		121,748		45,582		13,480
Naepo Green Energy Co., Ltd.		116,919		70,874		4,534		(3,385	)
Goseong Green Energy Co., Ltd.		1,696,888		1,462,568		—		(5,230	)
Gangneung Eco Power Co., Ltd.		729,417		566,083		—		(3,177	)
Shin Pyeongtaek Power Co., Ltd.		551,278		395,495		—		(3,978	)
Heang Bok Do Si Photovoltaic Power Co., Ltd.		2,668		1,972		342		35
Dongducheon Dream Power Co., Ltd.		1,515,961		1,245,118		612,558		(20,336	)
Jinbhuvish Power Generation Pvt. Ltd.		64,348		13,289		—		—
SE Green Energy Co., Ltd.		7,074		—		—		(203	)
Daegu Photovoltaic Co., Ltd.		16,830		10,193		2,832		1,377
Jeongam Wind Power Co., Ltd.		90,642		82,137		—		(814	)
Korea Power Engineering Service Co., Ltd.		15,652		1,203		13,586		2,585
Busan Green Energy Co., Ltd.		201,063		159,245		55,756		15,934
Gunsan Bio Energy Co., Ltd.		8,612		19,101		—		(3,238	)
Korea Electric Vehicle Charging Service		12,434		6,206		5,132		(717	)
Ulleungdo Natural Energy Co., Ltd.		22,372		1,791		—		(761	)
Korea Nuclear Partners Co., Ltd.		867		30		79		(473	)
Tamra Offshore Wind Power Co., Ltd.		171,573		132,380		16,186		4,748
Korea Electric Power Corporation Fund		47,754		307		219		(1,686	)
Energy Infra Asset Management Co., Ltd.		6,546		365		4,348		1,657
Daegu clean Energy Co., Ltd.		405		324		—		(171	)
YaksuESS Co., Ltd		7,643		6,131		1,735		1,190
Nepal Water & Energy Development Company Private Limited		57,736		6,463		—		(665	)

89

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
Gwangyang Green Energy Co., Ltd.	W	27,414		20,271		—		(1,629	)
PND solar., Ltd		39,949		36,706		456		(538	)
Hyundai Eco Energy Co., Ltd.		158,677		140,805		—		(1,025	)
<Joint ventures>
KEPCO-Uhde Inc.		437		2		18		(72	)
Eco Biomass Energy Sdn. Bhd.		—		—		—		—
Shuweihat Asia Power Investment B.V.		59,318		2		—		(145	)
Shuweihat Asia Operation & Maintenance Company		1,865		23		1,830		1,341
Waterbury Lake Uranium L.P.		57,983		655		—		—
ASM-BG Investicii AD		89,505		45,962		11,243		4,692
RES Technology AD		73,641		41,784		7,646		2,652
KV Holdings, Inc.		4,021		—		7		628
KEPCO SPC Power Corporation		296,275		24,624		139,924		49,825
Gansu Datang Yumen Wind Power Co., Ltd.		78,350		53,475		5,454		(1,985	)
Datang Chifeng Renewable Power Co., Ltd.		740,649		294,310		81,642		24,450
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		195,714		98,501		12,566		1,750
Rabigh Electricity Company		2,455,353		1,989,679		201,494		38,472
Rabigh Operation & Maintenance Company Limited		25,510		11,795		20,860		6,324
Jamaica Public Service Company Limited		1,349,941		781,441		734,727		23,066
KW Nuclear Components Co., Ltd.		24,594		7,011		6,031		2,575
Busan Shinho Solar Power Co., Ltd.		47,301		28,850		6,116		2,423
GS Donghae Electric Power Co., Ltd.		2,261,258		1,550,864		596,326		61,167
Global Trade Of Power System Co., Ltd.		2,157		417		862		(171	)
Expressway Solar-light Power Generation Co., Ltd.		18,510		9,454		2,233		519
Daejung Offshore Wind Power Co., Ltd.		6,607		1,037		—		(369	)
Amman Asia Electric Power Company		783,168		487,294		17,070		24,176
KAPES, Inc.		82,518		64,683		49,394		4,864
Dangjin Eco Power Co., Ltd.		52,686		580		—		(110,471	)
Honam Wind Power Co., Ltd.		42,765		27,057		5,514		2,184
Chun-cheon Energy Co., Ltd.		659,501		508,916		248,603		(10,694	)
Yeonggwangbaeksu Wind Power Co., Ltd.		100,233		81,552		8,333		498
Nghi Son 2 Power LLC		435,032		476,924		145,836		3,428
Kelar S.A		640,637		542,378		64,928		7,667
PT. Tanjung Power Indonesia		484,813		459,596		82,142		7,252
Incheon New Power Co., Ltd.		6,645		4,630		2,069		22
Seokmun Energy Co., Ltd.		253,752		199,353		36,317		6,861
Daehan Wind Power PSC		25,950		23,068		—		(1,021	)
Barakah One Company		20,082,320		20,052,994		—		13,915
Nawah Energy Company		1,515		—		—		—
MOMENTUM		8,972		7,408		11,162		317
Daegu Green Power Co., Ltd.		565,621		497,163		196,326		(3,248	)
Yeonggwang Wind Power Co., Ltd.		249,772		212,922		—		(59	)
Chester Solar IV SpA		14,503		13,787		1,002		(1,297	)
Chester Solar V SpA		4,493		4,528		164		(548	)
Diego de Almagro Solar SpA		16,104		14,650		—		(945	)
South Jamaica Power Company Limited		260,716		183,861		—		(635	)
Daesan Green Energy Co., Ltd.		52,936		3,338		—		(1,402	)
RE Holiday Holdings LLC		336,932		234,303		6,523		2,708
RE Pioneer Holdings LLC		253,343		177,044		7,370		4,991
RE Barren Ridge 1 Holdings LLC		217,904		139,285		6,706		5,350
RE Astoria 2 Land Co LLC		10,977		209		409		369
RE Barren Ridge Land Co LLC		3,862		83		164		146
Laurel SpA		5,325		4,631		—		(642	)
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd		32,494		94		—		(155	)
Chile Solar JV SpA		74,503		2		—		6,773

(*1) The profit for the nine-month period ended September 30, 2018 is net of net income attributable tonon-controlling interests.

90

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation	W	37,139,439		28,999,025		22,172,305		(1,205,110	)
Korea Electric Power Industrial Development Co., Ltd.		155,033		79,730		334,547		16,126
YTN Co., Ltd.		298,122		108,554		131,080		3,638
Cheongna Energy Co., Ltd.		461,958		448,535		56,533		(9,203	)
Gangwon Wind Power Co., Ltd.		94,281		2,243		25,963		11,121
Hyundai Green Power Co., Ltd.		1,150,729		754,846		477,373		26,543
Korea Power Exchange		263,499		25,868		105,107		8,831
AMEC Partners Korea Ltd.		1,135		4		1		(53	)
Hyundai Energy Co., Ltd.		474,939		511,486		92,992		(43,317	)
Ecollite Co., Ltd.		2,052		352		—		(121	)
Taebaek Wind Power Co., Ltd.		39,227		17,953		7,056		2,312
Taeback Guinemi Wind Power Co., Ltd.		12,369		12		—		(140	)
Pyeongchang Wind Power Co., Ltd.		77,152		60,606		11,907		3,038
Daeryun Power Co., Ltd.		779,258		655,377		156,508		(23,978	)
Changjuk Wind Power Co., Ltd.		35,794		10,745		6,981		2,317
KNH Solar Co., Ltd.		24,432		16,215		3,947		628
SPC Power Corporation		137,586		—		68,149		37,395
Gemeng International Energy Co., Ltd.		6,496,294		4,584,608		1,334,833		21,769
PT. Cirebon Electric Power		903,429		549,212		280,452		38,448
KNOC Nigerian East Oil Co., Ltd.		241,808		329,639		—		(10,754	)
KNOC Nigerian West Oil Co., Ltd.		147,185		227,588		—		(9,768	)
PT Wampu Electric Power		212,095		148,177		779		8,114
PT. Bayan Resources TBK		908,106		556,881		811,515		243,621
S-Power Co., Ltd.		859,633		617,224		489,042		(14,470	)
Pioneer Gas Power Limited		339,271		296,898		8,215		(27,796	)
Eurasia Energy Holdings		548		978		—		—
Xe-PianXe-Namnoy Power Co., Ltd.		858,789		607,462		—		(16,677	)
Hadong Mineral Fiber Co., Ltd.		203		231		—		(260	)
Green Biomass Co., Ltd.		6,379		4,018		2,337		(956	)
PT. Mutiara Jawa		27,098		29,670		13,574		3,455
Samcheok Eco Materials Co., Ltd.		23,729		270		15		(541	)
Noeul Green Energy Co., Ltd.		127,980		120,852		43,099		2,932
Naepo Green Energy Co., Ltd.		121,375		71,945		5,696		(5,603	)
Goseong Green Energy Co., Ltd.		1,081,238		841,330		—		(5,811	)
Gangneung Eco Power Co., Ltd.		186,765		20,344		—		(3,407	)
Shin Pyeongtaek Power Co., Ltd.		175,870		90,662		—		(4,585	)
Heang Bok Do Si Photovoltaic Power Co., Ltd.		2,782		2,120		451		22
Dongducheon Dream Power Co., Ltd.		1,575,175		1,365,845		813,440		(33,740	)
Jinbhuvish Power Generation Pvt. Ltd.		66,047		13,640		—		—
SE Green Energy Co., Ltd.		7,278		—		—		(103	)
Daegu Photovoltaic Co., Ltd.		17,262		11,339		3,714		1,263
Jeongam Wind Power Co., Ltd.		67,427		58,019		—		(580	)
Korea Power Engineering Service Co., Ltd.		15,738		3,121		22,283		3,783
Busan Green Energy Co., Ltd.		193,253		167,864		34,280		9,946
Gunsan Bio Energy Co., Ltd. (formerly, Jungbu Bio Energy Co., Ltd.)		9,648		16,462		—		(6,109	)
Korea Electric Vehicle Charging Service		14,650		8,404		8,399		(1,295	)
Ulleungdo Natural Energy Co., Ltd.		25,842		4,501		—		(1,758	)
Korea Nuclear Partners Co., Ltd.		2,033		711		1,345		465
Tamra Offshore Wind Power Co., Ltd.		163,740		132,036		4,392		(191	)
Korea Electric Power Corporation Fund		49,170		265		666		(2,213	)
Energy Infra Asset Management Co., Ltd.		5,240		431		5,807		2,203
Daegu clean Energy Co., Ltd.		252		212		—		(460	)
YaksuESS Co., Ltd		7,105		6,437		381		(6	)
Nepal Water & Energy Development Company Private Limited		58,121		11,670		—		(968	)

91

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the nine-month period ended September 30, 2018 and as of and for the year ended December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
Gwangyang Green Energy Co., Ltd.	W	20,165		11,393		—		(1,139	)
PND solar., Ltd		10,508		6,729		—		(406	)
<Joint ventures>
KEPCO-Uhde Inc.		515		7		—		(86	)
Eco Biomass Energy Sdn. Bhd.		—		—		—		—
Datang Chaoyang Renewable Power Co., Ltd.		138,463		70,309		17,776		2,149
Shuweihat Asia Power Investment B.V.		32,001		10		—		(170	)
Shuweihat Asia Operation & Maintenance Company		1,220		14		2,580		1,918
Waterbury Lake Uranium L.P.		55,563		250		—		—
ASM-BG Investicii AD		87,110		44,706		12,611		(262	)
RES Technology AD		71,595		42,845		7,793		2,164
KV Holdings, Inc.		4,795		—		671		677
KEPCO SPC Power Corporation		318,911		30,222		186,725		57,364
Gansu Datang Yumen Wind Power Co., Ltd.		81,960		54,859		6,938		(3,253	)
Datang Chifeng Renewable Power Co., Ltd.		762,605		334,843		113,329	��	35,294
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		60,913		33,264		8,442		2,094
Rabigh Electricity Company		2,364,522		1,936,403		287,105		78,948
Rabigh Operation & Maintenance Company Limited		19,992		10,025		22,668		5,668
Jamaica Public Service Company Limited		1,276,279		752,617		946,365		24,601
KW Nuclear Components Co., Ltd.		25,693		10,221		6,486		1,493
Busan Shinho Solar Power Co., Ltd.		47,959		30,573		7,984		2,383
GS Donghae Electric Power Co., Ltd.		2,179,465		1,530,266		351,814		43,180
Global Trade Of Power System Co., Ltd.		3,576		1,586		4,079		365
Expressway Solar-light Power Generation Co., Ltd.		19,143		10,651		3,018		643
KODE NOVUS I LLC		755		108,132		14		(8,117	)
KODE NOVUS II LLC		292		47,683		—		(6,018	)
Daejung Offshore Wind Power Co., Ltd.		6,193		243		—		(493	)
Amman Asia Electric Power Company		759,114		516,174		18,034		33,514
KAPES, Inc.		70,679		56,021		129,962		5,397
Dangjin Eco Power Co., Ltd.		163,197		521		—		(2,182	)
Honam Wind Power Co., Ltd.		39,675		24,951		5,961		1,166
Chun-cheon Energy Co., Ltd.		699,652		538,733		164,294		(8,145	)
Yeonggwangbaeksu Wind Power Co., Ltd.		94,810		76,621		11,124		297
Nghi Son 2 Power LLC		741		376		—		(2,068	)
Kelar S.A		613,293		513,101		90,435		17,590
PT. Tanjung Power Indonesia		374,702		369,627		209,923		6,219
Incheon New Power Co., Ltd.		7,194		5,059		2,972		184
Seokmun Energy Co., Ltd.		247,735		200,197		35,135		(3,939	)
Daehan Wind Power PSC		928		1,752		—		(904	)
Barakah One Company		17,574,885		17,571,409		—		(1,358	)
Nawah Energy Company		1,459		23		—		(11	)
MOMENTUM		5,028		3,854		11,555		939
Daegu Green Power Co., Ltd.		602,809		531,103		256,359		(17,700	)
Yeonggwang Wind Power Co., Ltd.		212,802		176,062		—		(62	)
Chester Solar IV SpA		11,660		9,626		331		151
Chester Solar V SpA		2,081		1,569		—		(49	)
Diego de Almagro Solar SpA		8,266		5,830		—		(103	)
South Jamaica Power Company Limited		153,958		120,436		—		(755	)

92

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won
September 30, 2018
Investees	Net assets			Percentage of ownership (*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	8,461,646			21.57	%		1,825,177			—		—			(132,045	)		1,693,132
Korea Electric Power Industrial Development Co., Ltd.		80,957			29.00	%		23,478			—		—			—			23,478
YTN Co., Ltd.		186,499			21.43	%		39,964			—		(9	)		(2	)		39,953
Cheongna Energy Co., Ltd.		2,300			43.90	%		1,010			2,584		(136	)		—			3,458
Gangwon Wind Power Co., Ltd.		85,964			15.00	%		12,895			—		—			49			12,944
Hyundai Green Power Co., Ltd.		413,952			29.00	%		120,046			—		—			—			120,046
Korea Power Exchange		265,591			100.00	%		265,591			—		—			—			265,591
AMEC Partners Korea Ltd.		1,111			19.00	%		211			—		—			—			211
Hyundai Energy Co., Ltd.		(37,892	)		46.30	%		(17,544	)		—		(1,006	)		18,550			—
Ecollite Co., Ltd.		1,659			36.10	%		599			—		—			(599	)		—
Taebaek Wind Power Co., Ltd.		22,617			25.00	%		5,654			—		—			—			5,654
Taeback Guinemi Wind Power Co., Ltd.		10,304			25.00	%		2,576			—		—			—			2,576
Pyeongchang Wind Power Co., Ltd.		21,632			25.00	%		5,408			—		—			—			5,408
Daeryun Power Co., Ltd.		291,377			9.34	%		27,215			1,014		—			(7,614	)		20,615
Changjuk Wind Power Co., Ltd.		26,950			30.00	%		8,085			—		—			—			8,085
KNH Solar Co., Ltd.		8,504			27.00	%		2,296			—		—			—			2,296
SPC Power Corporation		209,588			38.00	%		79,643			—		—			(20,964	)		58,679
Gemeng International Energy Co., Ltd.		1,859,752			34.00	%		632,316			—		—			1			632,317
PT. Cirebon Electric Power		387,517			27.50	%		106,567			—		—			—			106,567
KNOC Nigerian East Oil Co., Ltd.		(72,580	)		14.63	%		(10,618	)		—		—			10,618			—
KNOC Nigerian West Oil Co., Ltd.		(66,894	)		14.63	%		(9,787	)		—		—			9,787			—
PT Wampu Electric Power		72,709			46.00	%		33,446			—		—			—			33,446
PT. Bayan Resources TBK		684,835			20.00	%		136,967			435,522		—			(71,468	)		501,021
S-Power Co., Ltd.		235,787			49.00	%		115,536			—		(1,755	)		—			113,781
Pioneer Gas Power Limited		5,879			38.50	%		2,263			22,278		—			68			24,609
Eurasia Energy Holdings		(446	)		40.00	%		(178	)		—		—			178			—
Xe-PianXe-Namnoy Power Co., Ltd.		306,785			25.00	%		76,696			254		(947	)		(289	)		75,714
Hadong Mineral Fiber Co., Ltd.		(28	)		8.33	%		(2	)		—		—			2			—
Green Biomass Co., Ltd.		1,578			8.80	%		138			—		—			—			138
PT. Mutiara Jawa		(436	)		29.00	%		(126	)		—		—			126			—
Samcheok Eco Materials Co., Ltd.		21,540			2.35	%		506			—		—			(506	)		—
Noeul Green Energy Co., Ltd.		21,671			29.00	%		6,284			—		—			—			6,284
Naepo Green Energy Co., Ltd.		46,045			41.67	%		19,185			—		—			16			19,201
Goseong Green Energy Co., Ltd.		234,320			1.12	%		2,614			—		(162	)		—			2,452
Gangneung Eco Power Co., Ltd.		163,334			1.61	%		2,631			—		(103	)		—			2,528
Shin Pyeongtaek Power Co., Ltd.		155,783			40.00	%		62,313			12,800		(9,277	)		—			65,836
Heang Bok Do Si Photovoltaic Power Co., Ltd.		696			28.00	%		195			—		—			2			197
Dongducheon Dream Power Co., Ltd.		270,843			34.01	%		92,114			1,933		(4,139	)		(12,582	)		77,326
Jinbhuvish Power Generation Pvt. Ltd.		51,059			5.16	%		2,635			—		—			(2,635	)		—
SE Green Energy Co., Ltd.		7,074			47.76	%		3,379			—		—			—			3,379
Daegu Photovoltaic Co., Ltd.		6,637			29.00	%		1,925			—		—			—			1,925
Jeongam Wind Power Co., Ltd.		8,505			40.00	%		3,402			—		—			—			3,402
Korea Power Engineering Service Co., Ltd.		14,449			29.00	%		4,190			—		—			—			4,190
Busan Green Energy Co., Ltd.		41,818			29.00	%		12,127			—		—			—			12,127
Gunsan Bio Energy Co., Ltd.		(10,489	)		18.87	%		(1,979	)		—		—			1,979			—
Korea Electric Vehicle Charging Service		6,228			28.00	%		1,744			—		—			—			1,744
Ulleungdo Natural Energy Co., Ltd.		20,581			29.85	%		6,143			—		—			—			6,143
Korea Nuclear Partners Co., Ltd.		837			29.00	%		243			—		—			—			243
Tamra Offshore Wind Power Co., Ltd.		39,193			27.00	%		10,582			—		—			—			10,582
Korea Electric Power Corporation Fund		47,447			98.09	%		46,541			—		—			3			46,544
Energy Infra Asset Management Co., Ltd.		6,181			9.90	%		612			—		—			—			612
Daegu clean Energy Co., Ltd.		81			28.00	%		23			—		—			—			23
YaksuESS Co., Ltd		1,512			29.00	%		438			—		—			2			440
Nepal Water & Energy Development Company Private Limited		51,273			57.67	%		29,569			972		—			404			30,945
Gwangyang Green Energy Co., Ltd.		7,143			20.00	%		1,428			18		—			—			1,446

93

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
September 30, 2018
Investees	Net assets			Percentage of ownership (*)			Share in net assets			Investment differential			Intercompany transaction			Others			Book value
PND solar., Ltd	W	3,243			29.00	%		940			154			—			—			1,094
Hyundai Eco Energy Co., Ltd.		17,872			19.00	%		3,396			214			—			—			3,610
<Joint ventures>
KEPCO-Uhde Inc.		435			50.85	%		221			—			—			—			221
Eco Biomass Energy Sdn. Bhd.		—			61.53	%		—			—			—			—			—
Shuweihat Asia Power Investment B.V.		59,316			49.00	%		29,065			—			—			—			29,065
Shuweihat Asia Operation & Maintenance Company		1,842			55.00	%		1,013			—			—			(1	)		1,012
Waterbury Lake Uranium L.P.		57,328			34.54	%		19,801			—			—			—			19,801
ASM-BG Investicii AD		43,543			50.00	%		21,772			—			—			—			21,772
RES Technology AD		31,857			50.00	%		15,928			—			—			—			15,928
KV Holdings, Inc.		4,021			40.00	%		1,608			—			—			—			1,608
KEPCO SPC Power Corporation		271,651			75.20	%		204,281			—			—			—			204,281
Gansu Datang Yumen Wind Power Co., Ltd.		24,875			40.00	%		9,950			—			—			—			9,950
Datang Chifeng Renewable Power Co., Ltd.		446,339			40.00	%		178,536			—			—			(50	)		178,486
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		97,213			40.00	%		38,885			—			—			—			38,885
Rabigh Electricity Company		465,674			40.00	%		186,270			—			(70,977	)		(914	)		114,379
Rabigh Operation & Maintenance Company Limited		13,715			40.00	%		5,487			—			—			—			5,487
Jamaica Public Service Company Limited		568,500			40.00	%		227,400			(80,161	)		—			82,440			229,679
KW Nuclear Components Co., Ltd.		17,583			45.00	%		7,912			—			—			(176	)		7,736
Busan Shinho Solar Power Co., Ltd.		18,451			25.00	%		4,613			—			—			—			4,613
GS Donghae Electric Power Co., Ltd.		710,394			34.00	%		241,534			—			—			—			241,534
Global Trade Of Power System Co., Ltd.		1,740			29.00	%		504			—			—			—			504
Expressway Solar-light Power Generation Co., Ltd.		9,056			29.00	%		2,626			—			—			—			2,626
Daejung Offshore Wind Power Co., Ltd.		5,570			49.90	%		2,779			—			—			—			2,779
Amman Asia Electric Power Company		295,874			60.00	%		177,524			—			—			(88	)		177,436
KAPES, Inc.		17,835			51.00	%		9,096			—			—			—			9,096
Dangjin Eco Power Co., Ltd.		52,106			34.00	%		17,716			2,618			—			(232	)		20,102
Honam Wind Power Co., Ltd.		15,708			29.00	%		4,556			32			—			—			4,588
Chun-cheon Energy Co., Ltd.		150,585			29.90	%		45,026			3			—			—			45,029
Yeonggwangbaeksu Wind Power Co., Ltd.		18,681			15.00	%		2,802			6			—			—			2,808
Nghi Son 2 Power LLC		(41,892	)		50.00	%		(20,946	)		—			—			20,946			—
Kelar S.A		98,259			65.00	%		63,868			2,470			—			95			66,433
PT. Tanjung Power Indonesia		25,217			35.00	%		8,826			—			—			—			8,826
Incheon New Power Co., Ltd.		2,015			29.00	%		584			—			—			—			584
Seokmun Energy Co., Ltd.		54,399			29.00	%		15,775			—			—			—			15,775
Daehan Wind Power PSC		2,882			50.00	%		1,441			—			—			—			1,441
Barakah One Company		29,326			18.00	%		5,279			—			—			—			5,279
Nawah Energy Company		1,515			18.00	%		273			—			—			—			273
MOMENTUM		1,564			33.33	%		521			—			—			—			521
Daegu Green Power Co., Ltd.		68,458			29.00	%		19,853			84			—			21,512			41,449
Yeonggwang Wind Power Co., Ltd.		36,850			41.00	%		15,109			230			—			—			15,339
Chester Solar IV SpA		716			81.82	%		586			—			—			—			586
Chester Solar V SpA		(35	)		81.82	%		(28	)		70			—			—			42
Diego de Almagro Solar SpA		1,454			81.82	%		1,189			—			—			—			1,189
South Jamaica Power Company Limited		76,855			20.00	%		15,370			—			—			—			15,370
Daesan Green Energy Co., Ltd.		49,598			35.00	%		17,359			—			—			—			17,359
RE Holiday Holdings LLC		102,629			50.00	%		51,315			—			—			—			51,315
RE Pioneer Holdings LLC		76,299			50.00	%		38,149			—			—			—			38,149
RE Barren Ridge 1 Holdings LLC		78,619			50.00	%		39,309			—			—			—			39,309
RE Astoria 2 LandCo LLC		10,768			50.00	%		5,384			—			—			—			5,384
RE Barren Ridge LandCo LLC		3,779			50.00	%		1,889			—			—			—			1,889
Laurel SpA		694			81.82	%		568			116			—			—			684
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd		32,400			12.37	%		4,008			9			—			—			4,017
Chile Solar JV SpA		74,501			50.00	%		37,251			—			—			—			37,251

(*) The percentage of ownership shown above is after considering the treasury stocks and others.

94

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Net assets			Percentage of ownership (*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	8,140,414			21.57	%		1,755,887			—		—			(137,019	)		1,618,868
Korea Electric Power Industrial Development Co., Ltd.		75,303			29.00	%		21,838			—		—			—			21,838
YTN Co., Ltd.		189,568			21.43	%		40,624			—		(18	)		—			40,606
Cheongna Energy Co., Ltd.		13,423			43.90	%		5,893			2,584		(140	)		—			8,337
Gangwon Wind Power Co., Ltd.		92,038			15.00	%		13,806			—		—			49			13,855
Hyundai Green Power Co., Ltd.		395,883			29.00	%		114,806			—		—			—			114,806
Korea Power Exchange		237,631			100.00	%		237,631			—		—			—			237,631
AMEC Partners Korea Ltd.		1,131			19.00	%		215			—		—			—			215
Hyundai Energy Co., Ltd.		(36,547	)		46.30	%		(16,921	)		—		(1,037	)		17,958			—
Ecollite Co., Ltd.		1,700			36.10	%		614			—		—			(614	)		—
Taebaek Wind Power Co., Ltd.		21,274			25.00	%		5,319			—		—			—			5,319
Taeback Guinemi Wind Power Co., Ltd.		12,357			25.00	%		3,089			—		—			—			3,089
Pyeongchang Wind Power Co., Ltd.		16,546			25.00	%		4,136			—		—			—			4,136
Daeryun Power Co., Ltd.		123,881			19.45	%		24,095			1,014		—			4			25,113
Changjuk Wind Power Co., Ltd.		25,049			30.00	%		7,515			—		—			—			7,515
KNH Solar Co., Ltd.		8,217			27.00	%		2,218			—		—			—			2,218
SPC Power Corporation		137,586			38.00	%		52,283			—		—			—			52,283
Gemeng International Energy Co., Ltd.		1,911,686			34.00	%		649,973			—		—			—			649,973
PT. Cirebon Electric Power		354,217			27.50	%		97,410			—		—			—			97,410
KNOC Nigerian East Oil Co., Ltd.		(87,831	)		14.63	%		(12,850	)		—		—			12,850			—
KNOC Nigerian West Oil Co., Ltd.		(80,403	)		14.63	%		(11,763	)		—		—			11,763			—
PT Wampu Electric Power		63,918			46.00	%		29,403			—		—			—			29,403
PT. Bayan Resources TBK		351,225			20.00	%		70,245			482,109		—			(100,523	)		451,831
S-Power Co., Ltd.		242,409			49.00	%		118,780			—		(1,835	)		—			116,945
Pioneer Gas Power Limited		42,373			38.50	%		16,314			22,278		—			67			38,659
Eurasia Energy Holdings		(430	)		40.00	%		(172	)		—		—			172			—
Xe-PianXe-Namnoy Power Co., Ltd.		251,327			25.00	%		62,832			74		(838	)		(289	)		61,779
Hadong Mineral Fiber Co., Ltd.		(28	)		8.33	%		(2	)		—		—			2			—
Green Biomass Co., Ltd.		2,361			8.80	%		208			—		—			—			208
PT. Mutiara Jawa		(2,572	)		29.00	%		(746	)		—		—			746			—
Samcheok Eco Materials Co., Ltd.		23,459			2.35	%		551			—		—			(551	)		—
Noeul Green Energy Co., Ltd.		7,128			29.00	%		2,067			—		—			—			2,067
Naepo Green Energy Co., Ltd.		49,430			41.67	%		20,598			—		—			—			20,598
Goseong Green Energy Co., Ltd.		239,908			1.12	%		2,676			—		(79	)		—			2,597
Gangneung Eco Power Co., Ltd.		166,421			1.61	%		2,681			—		(98	)		—			2,583
Shin Pyeongtaek Power Co., Ltd.		85,208			40.00	%		34,083			7,808		(6,988	)		—			34,903
Heang Bok Do Si Photovoltaic Power Co., Ltd.		662			28.00	%		185			—		—			2			187
Dongducheon Dream Power Co., Ltd.		209,330			33.61	%		70,356			—		(4,409	)		(12,714	)		53,233
Jinbhuvish Power Generation Pvt. Ltd.		52,407			5.16	%		2,704			—		—			(2,704	)		—
SE Green Energy Co., Ltd.		7,278			47.76	%		3,476			—		—			—			3,476
Daegu Photovoltaic Co., Ltd.		5,923			29.00	%		1,718			—		—			—			1,718
Jeongam Wind Power Co., Ltd.		9,408			40.00	%		3,763			—		—			—			3,763
Korea Power Engineering Service Co., Ltd.		12,617			29.00	%		3,659			—		—			—			3,659
Busan Green Energy Co., Ltd.		25,389			29.00	%		7,363			—		—			—			7,363
Gunsan Bio Energy Co., Ltd. (formerly, Jungbu Bio Energy Co., Ltd.)		(6,814	)		18.87	%		(1,286	)		—		—			1,286			—
Korea Electric Vehicle Charging Service		6,246			28.00	%		1,749			—		—			—			1,749
Ulleungdo Natural Energy Co., Ltd.		21,341			29.85	%		6,370			—		—			—			6,370
Korea Nuclear Partners Co., Ltd.		1,322			29.00	%		383			—		—			—			383
Tamra Offshore Wind Power Co., Ltd.		31,704			27.00	%		8,560			—		—			—			8,560
Korea Electric Power Corporation Fund		48,905			98.09	%		47,971			—		—			3			47,974
Energy Infra Asset Management Co., Ltd.		4,809			9.90	%		476			—		—			—			476
Daegu clean Energy Co., Ltd.		40			28.00	%		11			—		—			—			11

95

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

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 September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won
December 31, 2017
Investees	Net assets			Percentage of ownership (*)			Share in net assets			Investment differential			Intercompany transaction			Others			Book value
YaksuESS Co., Ltd	W	668			29.00	%		193			—			—			1			194
Nepal Water & Energy Development Company Private Limited		46,451			62.13	%		28,860			972			—			666			30,498
Gwangyang Green Energy Co., Ltd.		8,772			20.00	%		1,754			18			—			—			1,772
PND solar., Ltd		3,779			29.00	%		1,096			154			—			—			1,250
<Joint ventures>
KEPCO-Uhde Inc.		508			50.85	%		258			—			—			—			258
Eco Biomass Energy Sdn. Bhd.		—			61.53	%		—			—			—			—			—
Datang Chaoyang Renewable Power Co., Ltd.		68,154			40.00	%		27,262			—			—			—			27,262
Shuweihat Asia Power Investment B.V.		31,991			49.00	%		15,675			—			—			—			15,675
Shuweihat Asia Operation & Maintenance Company		1,206			55.00	%		663			—			—			—			663
Waterbury Lake Uranium L.P.		55,313			35.76	%		19,780			—			—			1			19,781
ASM-BG Investicii AD		42,404			50.00	%		21,202			—			—			—			21,202
RES Technology AD		28,750			50.00	%		14,375			—			—			—			14,375
KV Holdings, Inc.		4,795			40.00	%		1,918			—			—			—			1,918
KEPCO SPC Power Corporation		288,689			75.20	%		217,094			—			—			—			217,094
Gansu Datang Yumen Wind Power Co., Ltd.		27,101			40.00	%		10,840			—			—			—			10,840
Datang Chifeng Renewable Power Co., Ltd.		427,762			40.00	%		171,105			—			—			(50	)		171,055
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		27,649			40.00	%		11,060			—			—			—			11,060
Rabigh Electricity Company		428,119			40.00	%		171,248			—			(70,978	)		(914	)		99,356
Rabigh Operation & Maintenance Company Limited		9,967			40.00	%		3,987			—			—			—			3,987
Jamaica Public Service Company Limited		523,662			40.00	%		209,464			(80,161	)		—			91,850			221,153
KW Nuclear Components Co., Ltd.		15,472			45.00	%		6,962			—			—			(259	)		6,703
Busan Shinho Solar Power Co., Ltd.		17,386			25.00	%		4,346			—			—			—			4,346
GS Donghae Electric Power Co., Ltd.		649,199			34.00	%		220,727			—			—			—			220,727
Global Trade Of Power System Co., Ltd.		1,990			29.00	%		577			—			—			—			577
Expressway Solar-light Power Generation Co., Ltd.		8,492			29.00	%		2,463			—			—			—			2,463
KODE NOVUS I LLC		(107,377	)		50.00	%		(53,689	)		—			—			53,689			—
KODE NOVUS II LLC		(47,391	)		50.00	%		(23,696	)		—			—			23,696			—
Daejung Offshore Wind Power Co., Ltd.		5,950			49.90	%		2,969			—			—			—			2,969
Amman Asia Electric Power Company		242,940			60.00	%		145,764			—			—			(88	)		145,676
KAPES, Inc.		14,658			51.00	%		7,476			—			—			—			7,476
Dangjin Eco Power Co., Ltd.		162,676			34.00	%		55,310			2,618			—			—			57,928
Honam Wind Power Co., Ltd.		14,724			29.00	%		4,270			32			—			—			4,302
Chun-cheon Energy Co., Ltd.		160,919			29.90	%		48,115			3			—			—			48,118
Yeonggwangbaeksu Wind Power Co., Ltd.		18,189			15.00	%		2,728			6			—			—			2,734
Nghi Son 2 Power LLC		365			50.00	%		183			—			—			—			183
Kelar S.A		100,192			65.00	%		65,125			2,424			—			(316	)		67,233
PT. Tanjung Power Indonesia		5,075			35.00	%		1,776			—			—			—			1,776
Incheon New Power Co., Ltd.		2,135			29.00	%		619			—			—			—			619
Seokmun Energy Co., Ltd.		47,538			29.00	%		13,786			—			—			—			13,786
Daehan Wind Power PSC		(824	)		50.00	%		(412	)		—			—			412			—
Barakah One Company		3,476			18.00	%		626			—			—			—			626
Nawah Energy Company		1,436			18.00	%		258			—			—			—			258
MOMENTUM		1,174			33.33	%		391			—			—			—			391
Daegu Green Power Co., Ltd.		71,706			29.00	%		20,795			—			84			21,512			42,391
Yeonggwang Wind Power Co., Ltd.		36,740			41.00	%		15,063			231			—			—			15,294
Chester Solar IV SpA		2,034			81.82	%		1,664			—			—			36			1,700
Chester Solar V SpA		512			81.82	%		419			—			—			106			525
Diego de Almagro Solar SpA		2,436			81.82	%		1,993			—			—			98			2,091
South Jamaica Power Company Limited		33,522			20.00	%		6,704			—			—			—			6,704

(*) The percentage of ownership shown above is after considering the treasury stocks and others.

96

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of September 30, 2018 and December 31, 2017, 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:

In millions of won	September 30, 2018					December 31, 2017
	Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
Shin Pyeongtaek Power Co., Ltd.	W	—			—		(2,537	)		—
Kelar S.A		—			—		(61,309	)		—
Hadong Mineral Fiber Co., Ltd.		—			2		(3	)		2
PT. Mutiara Jawa		(620	)		126		(1,159	)		746
Eurasia Energy Holdings		6			178		(22	)		172
KODE NOVUS I LLC		—			—		8,706			53,689
KODE NOVUS II LLC		—			—		181			23,696
Gunsan Bio Energy Co., Ltd.		693			1,979		1,154			1,286
Daehan Wind Power PSC		(412	)		—		412			412
Hyundai Energy Co., Ltd.		17,110			17,110		—			—
Nghi Son 2 Power LLC		20,946			20,946		—			—
Samcheok Eco Materials Co., Ltd.		1,323			1,323		—			—

(7) As of September 30, 2018, 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 (NPSCo-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) Hyundai Energy Co., Ltd.

The Company had placed guarantees for a fixed return on the investment to NH Power II Co., Ltd. and National Agricultural Cooperative Federation (“NACF”) and had obtained the rights to acquire the investment securities in return preferentially. In addition, NH Power II Co., Ltd. and NACF have a right, which can be exercised for 30 days starting from 2 months to 1 month prior to 17 years after the termination date of the contract to sell their shares to the Company.

(iii) Taebaek Wind Power Co., Ltd.

In casenon-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.

(iv) Pyeongchang Wind Power Co., Ltd.

In casenon-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.

97

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of September 30, 2018, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(v) Jeongam Wind Power Co., Ltd.

In casenon-controlling shareholders decide to dispose of their shares in Jeongam Wind Power Co., Ltd. after the construction of the power plant has been completed, the Company is obligated to acquire those shares at fair value.

(vi) Daejung Offshore Wind Power Co., Ltd.

In case Samsung Heavy Industries Co., Ltd., aco-participant of the joint venture agreement, decides to dispose of its shares in Daejung Offshore Wind Power Co., Ltd., the Company is obligated to acquire those shares after evaluating the economic feasibility of the facilities installed by Samsung Heavy Industries Co., Ltd.

(vii) Samcheok Eco Materials Co., Ltd.

The Company has the rights to purchase the stocks should preferred stockholders elect to sell their stocks on the expected sell date (3 years from preferred stock payment date) and is required to guarantee the promised yield when preferred stockholders sell their stocks.

(viii) Hyundai Green Power Co., Ltd.

As of September 30, 2018, Hyundai Green Power Co., Ltd., an associate of the Company, which engages in the byproduct gas power generating business, entered into a project financing agreement with a limit ofW852.1 billion with Korea Development Bank and others. At a certain period in the future, the Company has call option against the financial investors (Korea Development Bank and others) and also has an obligation to purchase its shares when claimed by the financial investors. At a certain period in the future, the Company has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Company”), 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 Company.

(8) Significant restrictions on the Company’s abilities on associates or joint ventures are as follows:

Company	Nature and extent of any significant restrictions
Daeryun Power Co., Ltd.	Principals 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.
Changjuk Wind Power Co., Ltd.	Principals 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.
Taebaek Wind Power Co., Ltd.	Financial institutions can reject or defer an approval with regard to the request for fund executions on subordinated loans of shareholders in order to pay senior loans based on the loan agreement.
Pyeongchang Wind Power Co., Ltd.	Principals 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.
Daegu Green Power Co., Ltd.	Principals 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 written consent of financial institutions is obtained.
KNH Solar Co., Ltd.	Principal and interest, dividends to shareholders cannot be paid without written consent of financial institutions.

98

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	13,470,676		(21,968	)		—			—			13,448,708
Buildings		19,186,882		(63,998	)		(7,327,099	)		(3,669	)		11,792,116
Structures		67,764,118		(194,294	)		(23,715,919	)		(8,399	)		43,845,506
Machinery		78,215,611		(171,296	)		(32,411,999	)		(439,350	)		45,192,966
Ships		3,657		—			(3,330	)		—			327
Vehicles		270,848		(4,722	)		(210,215	)		(116	)		55,795
Equipment		1,501,568		(484	)		(1,141,418	)		(42	)		359,624
Tools		1,052,954		(772	)		(872,348	)		(38	)		179,796
Construction-in-progress		29,028,378		(56,533	)		—			(196,868	)		28,774,977
Finance lease assets		2,390,699		(27	)		(2,178,897	)		—			211,775
Asset retirement costs		9,466,939		—			(3,617,808	)		(146,423	)		5,702,708
Others		11,797,587		—			(9,331,989	)		—			2,465,598
	W	234,149,917		(514,094	)		(80,811,022	)		(794,905	)		152,029,896
In millions of won	December 31, 2017
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	13,318,542		(21,968	)		—			—			13,296,574
Buildings		18,777,678		(63,539	)		(6,722,376	)		(1,776	)		11,989,987
Structures		66,184,484		(196,414	)		(22,071,667	)		(8,039	)		43,908,364
Machinery		75,826,292		(183,188	)		(28,904,982	)		(45,512	)		46,692,610
Ships		4,175		—			(3,772	)		—			403
Vehicles		276,425		(6,322	)		(195,260	)		(127	)		74,716
Equipment		1,440,870		(761	)		(1,020,192	)		(6	)		419,911
Tools		1,010,537		(1,027	)		(809,842	)		(32	)		199,636
Construction-in-progress		25,610,649		(49,084	)		—			(38,108	)		25,523,457
Finance lease assets		2,390,680		(27	)		(2,093,001	)		—			297,652
Asset retirement costs		9,395,821		—			(3,356,337	)		—			6,039,484
Others		11,247,021		—			(8,807,401	)		—			2,439,620
	W	225,483,174		(522,330	)		(73,984,830	)		(93,600	)		150,882,414

99

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance			Acquisition			Disposal			Depreciation			Impairment (*)			Others			Ending balance
Land	W	13,318,542			2,076			(12,471	)		—			—			162,529			13,470,676
(Government grants)		(21,968	)		—			—			—			—			—			(21,968	)
Buildings		12,053,526			4,696			(3,987	)		(598,318	)		(1,896	)		402,093			11,856,114
(Government grants)		(63,539	)		(3,342	)		—			4,456			—			(1,573	)		(63,998	)
Structures		44,104,778			7,167			(467,062	)		(1,901,127	)		(360	)		2,296,404			44,039,800
(Government grants)		(196,414	)		—			2,120			7,936			—			(7,936	)		(194,294	)
Machinery		46,875,798			415,740			(165,450	)		(3,690,522	)		(393,839	)		2,322,535			45,364,262
(Government grants)		(183,188	)		—			525			13,391			—			(2,024	)		(171,296	)
Ships		403			—			—			(78	)		—			2			327
Vehicles		81,038			1,265			(385	)		(25,450	)		—			4,049			60,517
(Government grants)		(6,322	)		(10	)		—			1,611			—			(1	)		(4,722	)
Equipment		420,672			23,116			(233	)		(139,250	)		(36	)		55,839			360,108
(Government grants)		(761	)		—			—			282			—			(5	)		(484	)
Tools		200,663			7,620			(245	)		(61,789	)		(6	)		34,325			180,568
(Government grants)		(1,027	)		—			—			336			—			(81	)		(772	)
Construction-in-progress		25,572,541			8,710,386			(37,877	)		—			(158,758	)		(5,254,782	)		28,831,510
(Government grants)		(49,084	)		(18,748	)		—			—			—			11,299			(56,533	)
Finance lease assets		297,679			—			—			(85,816	)		—			(61	)		211,802
(Government grants)		(27	)		—			—			1			—			(1	)		(27	)
Asset retirement costs		6,039,484			1,971			—			(461,155	)		(146,422	)		268,830			5,702,708
Others		2,439,620			14,523			(6,402	)		(526,545	)		—			544,402			2,465,598
	W	150,882,414			9,166,460			(691,467	)		(7,462,037	)		(701,317	)		835,843			152,029,896

(*) Korea Hydro & Nuclear Power Co., Ltd. and Korea Western Power Co., Ltd., 100% owned subsidiaries, have determined that there are impairment indicators for the shutdowns of certain power generation units and fire, and performed an impairment test over the individual assets. As a result, the Company recognized the amount of the carrying amount in excess of its recoverable amount as impairment loss in the consolidated statements of comprehensive income. The amount includes impairment loss in relation to Wolsong unit 1, Cheonji unit 1 and 2, Daejin unit 1 and 2, and Shin-Hanwool unit 3 and 4 as described in note 2, and the loss due to fire at Taean unit 2.

100

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Beginning balance			Acquisition			Disposal			Depreciation			Impairment (*)			Others			Ending balance
Land	W	12,969,741			32,773			(8,961	)		—			—			324,989			13,318,542
(Government grants)		(3,204	)		—			5			—			—			(18,769	)		(21,968	)
Buildings		11,784,624			40,592			(19,715	)		(794,804	)		(923	)		1,043,752			12,053,526
(Government grants)		(61,188	)		(900	)		28			5,996			—			(7,475	)		(63,539	)
Structures		43,330,415			428			(519,366	)		(2,421,168	)		(6,856	)		3,721,325			44,104,778
(Government grants)		(197,641	)		—			1,905			10,011			—			(10,689	)		(196,414	)
Machinery		43,421,945			421,892			(242,428	)		(4,821,595	)		(43,121	)		8,139,105			46,875,798
(Government grants)		(111,064	)		(10,834	)		489			17,390			—			(79,169	)		(183,188	)
Ships		550			—			—			(147	)		—			—			403
Vehicles		70,970			3,447			(174	)		(34,236	)		(127	)		41,158			81,038
(Government grants)		(107	)		(107	)		14			1,070			—			(7,192	)		(6,322	)
Equipment		376,395			53,529			(413	)		(158,614	)		(6	)		149,781			420,672
(Government grants)		(732	)		(43	)		—			454			—			(440	)		(761	)
Tools		179,032			30,990			(166	)		(74,909	)		(32	)		65,748			200,663
(Government grants)		(430	)		—			—			354			—			(951	)		(1,027	)
Construction-in-progress		27,296,260			11,996,508			(6,487	)		—			—			(13,713,740	)		25,572,541
(Government grants)		(135,807	)		(42,728	)		—			—			—			129,451			(49,084	)
Finance lease assets		406,353			—			(29,696	)		(107,390	)		—			28,412			297,679
(Government grants)		—			—			—			1			—			(28	)		(27	)
Asset retirement costs		4,065,412			—			—			(518,565	)		—			2,492,637			6,039,484
Others		2,351,532			10,411			(28	)		(762,711	)		—			840,416			2,439,620
	W	145,743,056			12,535,958			(824,993	)		(9,658,863	)		(51,065	)		3,138,321			150,882,414

(*) Korea Midland Power Co., Ltd. and Korea Western Power Co., Ltd., 100% owned subsidiaries, have determined that there are impairment indicators for the shutdowns of certain power generation units and fire, and performed an impairment test over the individual assets. As a result, the Company recognized the amount of the carrying amount in excess of its recoverable amount as impairment loss in the consolidated statements of comprehensive income.

101

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

19. Investment Properties

(1) Investment properties as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	161,214		—			—			161,214
Buildings		36,152		(20	)		(15,969	)		20,163
	W	197,366		(20	)		(15,969	)		181,377

In millions of won	December 31, 2017
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	264,205		—			—			264,205
Buildings		36,165		(83	)		(15,573	)		20,509
	W	300,370		(83	)		(15,573	)		284,714

(2) Changes in investment properties for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance			Depreciation			Others			Ending balance
Land	W	264,205			—			(102,991	)		161,214
Buildings		20,592			(718	)		309			20,183
(Government grants)		(83	)		1			62			(20	)
	W	284,714			(717	)		(102,620	)		181,377

In millions of won	December 31, 2017
	Beginning balance			Depreciation			Others			Ending balance
Land	W	336,421			—			(72,216	)		264,205
Buildings		17,323			(1,178	)		4,447			20,592
(Government grants)		(64	)		2			(21	)		(83	)
	W	353,680			(1,176	)		(67,790	)		284,714

102

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018						September 30, 2017
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Rental income	W	2,411			7,091			2,383			7,138
Operating and maintenance expenses related to rental income		(209	)		(717	)		(408	)		(954	)
	W	2,202			6,374			1,975			6,184

(4) Fair value of investment properties as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Book value		Fair value		Book value		Fair value
Land	W	161,214		202,325		264,205		309,241
Buildings		20,163		22,692		20,509		23,319
	W	181,377		225,017		284,714		332,560

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 theK-IFRS transition date (January 1, 2010).

(5) All of the Company’s investment property is held under freehold interests.

20. Construction Contracts

(1) Changes in total contract amount in which revenue is not yet recognized for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance		Increase (decrease) (*)		Recognized as revenue			Ending balance
Nuclear power plant construction in UAE and others	W	4,176,595		363,018		(1,231,661	)		3,307,952

(*) For the nine-month period ended September 30, 2018, the increased balance of contracts from new orders and other isW388,059 million and the decreased balance of contracts due to changes in scope of construction work isW25,041 million.

In millions of won	December 31, 2017
	Beginning balance		Increase (decrease) (*)		Recognized as revenue			Ending balance
Nuclear power plant construction in UAE and others	W	7,236,888		151,891		(3,212,184	)		4,176,595

(*) For the year ended December 31, 2017, the increased balance of contracts from new orders and other isW438,142 million and the decreased balance of contracts due to changes in scope of construction work isW286,251 million.

103

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

20. Construction Contracts, Continued

(2) Accumulated earned revenue, expense and others related to the Company’s construction contracts as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts
Nuclear power plant construction in UAE and others	W	19,408,483		18,256,742		1,151,741		—

In millions of won	December 31, 2017
	Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts
Nuclear power plant construction in UAE and others	W	18,236,992		16,937,772		1,299,220		—

(3) Gross amount due from customers recognized as assets and due to customers recognized as liabilities for contract work as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Assets (*1)		Liabilities (*2)		Assets (*1)		Liabilities (*2)
Nuclear power plant construction in UAE and others	W	41,837		509,828		55,755		542,921

(*1) Included in trade and other receivables, net, in the consolidated statements of financial position.

(*2) Included innon-financial liabilities in the consolidated statements of financial position.

(4) The contract between the Company and ENEC (purchaser) states that disclosure of information related to UAE nuclear power plant construction projects such as contract date, contractual completion date, completion progress, unbilled construction, impairment losses, etc. is not allowed without consent from the purchaser. ENEC did not agree to disclose such information. Accordingly, the Company did not disclose such information based onK-IFRS 1115 129.2(2) as it is probable that ENEC may file a lawsuit for breach of contract if the Company does so. Also, the Company has not disclosed such information in a registration statement, investment prospectus or annual report and reported to the audit committee that those items will not be disclosed in the notes to the financial statements.

(5) Changes in estimates of contract revenues and costs related to the Company’s construction services for the nine-month period ended September 30, 2018 are as follows:

In millions of won	September 30, 2018
												Assets					Receivables from construction contracts
	Expected loss on construction contracts		Changes in estimates of contract revenue and costs			Amounts recognized in current profit or loss			Amounts recognized in future profit or loss			Gross		Allowance for doubtful accounts			Gross		Allowance for doubtful accounts			Changes in estimated total contract costs
Transmission and distribution	W	—		(469	)		(287	)		(182	)		19,530		—			—		—			—
Plant maintenance & engineering service		111		(2,922	)		(2,266	)		(656	)		22,307		(1	)		34,350		(7,880	)		1,715
	W	111		(3,391	)		(2,553	)		(838	)		41,837		(1	)		34,350		(7,880	)		1,715

104

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

21. Intangible Assets other than Goodwill

(1) Intangible assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	567,728		(325	)		(447,886	)		—			119,517
Licenses and franchises		3,398		—			(3,398	)		—			—
Copyrights, patents rights and other industrial rights		96,077		—			(27,423	)		—			68,654
Mining rights		564,341		—			(18,890	)		—			545,451
Development expenditures		863,308		(2,355	)		(776,699	)		—			84,254
Intangible assets under development		93,268		(11,316	)		—			(3,941	)		78,011
Usage rights of donated assets and other		459,682		(3	)		(369,009	)		—			90,670
Leasehold rights		25,482		—			(19,765	)		—			5,717
Greenhouse gas emissions rights		9,032		—			—			—			9,032
Others		291,331		—			(104,012	)		(12,069	)		175,250
	W	2,973,647		(13,999	)		(1,767,082	)		(16,010	)		1,176,556

In millions of won	December 31, 2017
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	534,191		(486	)		(408,300	)		—			125,405
Licenses and franchises		3,398		—			(3,398	)		—			—
Copyrights, patents rights and other industrial rights		43,857		—			(19,876	)		—			23,981
Mining rights		553,876		—			(14,243	)		—			539,633
Development expenditures		836,996		(3,702	)		(752,478	)		—			80,816
Intangible assets under development		143,851		(10,540	)		—			(3,941	)		129,370
Usage rights of donated assets and other		459,682		(11	)		(358,024	)		—			101,647
Leasehold rights		24,306		—			(19,262	)		—			5,044
Others		297,289		—			(103,995	)		(12,069	)		181,225
	W	2,897,446		(14,739	)		(1,679,576	)		(16,010	)		1,187,121

105

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance			Acquisition		Disposal			Amortization			Impairment		Others			Ending balance
Software	W	125,891			4,329		(1	)		(38,295	)		—		27,918			119,842
(Government grants)		(486	)		—		—			186			—		(25	)		(325	)
Licenses and franchises Copyrights, patents rights and other industrial rights		23,981			17		—			(6,628	)		—		51,284			68,654
Mining rights		539,633			21,704		—			(2,922	)		—		(12,964	)		545,451
Development expenditures		84,518			621		—			(19,605	)		—		21,075			86,609
(Government grants)		(3,702	)		—		—			1,346			—		1			(2,355	)
Intangible assets under development		139,910			39,812		—			—			—		(90,395	)		89,327
(Government grants)		(10,540	)		—		—			—			—		(776	)		(11,316	)
Usage rights of donated assets and other		101,658			—		—			(10,002	)		—		(983	)		90,673
(Government grants)		(11	)		—		—			8			—		—			(3	)
Leasehold rights		5,044			—		—			(502	)		—		1,175			5,717
Greenhouse gas emissions rights		—			—		—			—			—		9,032			9,032
Others		181,225			1,169		(22	)		(10,518	)		—		3,396			175,250
(Government grants)		—			—		—			—			—		—			—
	W	1,187,121			67,652		(23	)		(86,932	)		—		8,738			1,176,556

In millions of won	December 31, 2017
	Beginning balance			Acquisition			Disposal			Amortization			Impairment			Others			Ending balance
Software	W	93,221			12,700			(5	)		(44,809	)		—			64,784			125,891
(Government grants)		(595	)		(17	)		—			255			—			(129	)		(486	)
Licenses and franchises Copyrights, patents rights and other industrial rights		20,081			30			(7	)		(3,350	)		—			7,227			23,981
Mining rights		538,860			26,751			(272	)		(4,640	)		—			(21,066	)		539,633
Development expenditures		62,405			494			—			(25,924	)		—			47,543			84,518
(Government grants)		(5,152	)		—			—			2,811			—			(1,361	)		(3,702	)
Intangible assets under development		115,533			56,527			—			—			(20	)		(32,130	)		139,910
(Government grants)		(11,090	)		—			—			—			—			550			(10,540	)
Usage rights of donated assets and other		84,102			—			—			(14,462	)		—			32,018			101,658
(Government grants)		(21	)		—			—			10			—			—			(11	)
Leasehold rights		4,632			—			—			(545	)		—			957			5,044
Greenhouse gas emissions rights		6,283			—			—			—			—			(6,283	)		—
Others		72,562			47,402			(377	)		(23,018	)		54			84,602			181,225
(Government grants)		—			—			—			—			—			—			—
	W	980,821			143,887			(661	)		(113,672	)		34			176,712			1,187,121

106

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won and thousands of Australian dollars

September 30, 2018
Type	Description	Currency	Amount		Remaining useful lives
Software	ERP system and others	KRW		871	2 years and 5 months ~ 2 years and 7 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		9,873	4 years
Mining rights	Mining right of Bylong mine	AUD		401,225	—  (*)
Development expenditures	Comprehensive system for transmission and transformation regional support program	KRW		3,946	5 years
	Electricity sales information system	KRW		24,100	3 years and 6 months
Intangible assets under development	Contributions to ARP NRC DC	KRW		47,888	—
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		37,057	8 years and 2 months
	Dangjin power plant load facility usage right	KRW		15,741	2 years and 6 months
Others	Occupancy and use of public waters	KRW		99,211	18 years and 2 months

(*) Mining rights are amortized using theunits-of-production method and the amortization has not commenced yet.

In millions of won and thousands of Australian dollars

December 31, 2017
Type	Description	Currency	Amount		Remaining useful lives
Software	ERP system and others	KRW		1,135	3 years and 2 months ~ 3 years and 4 months
	AMI GATEWAY S/W	KRW		3,528	3 years and 2 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		11,724	4 years and 9 months
Mining rights	Mining right of Bylong mine	AUD		401,225	—  (*)
Development expenditures	Electricity sales information system	KRW		29,391	4 years and 3 months
Intangible assets under development	Contributions to ARP NRC DC	KRW		46,458	—
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		40,460	8 years and 11 months
	Dangjin power plant load facility usage right	KRW		20,463	3 years and 3 months
Others	Occupancy and use of public waters	KRW		103,269	18 years and 11 months

(*) Mining rights are amortized using theunits-of-production method and the amortization has not commenced yet.

(4) For the nine-month periods ended September 30, 2018 and 2017, the Company recognized research and development expenses ofW496,386 million andW499,138 million, respectively.

107

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

22. Trade and Other Payables

Trade and other payables as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Trade payables	W	2,520,820		—		2,936,990		—
Other trade payables		1,352,289		2,862,894		1,649,933		2,825,039
Accrued expenses		1,189,163		2,996		1,087,844		1,951
Leasehold deposits received		1,913		1,056		1,562		1,308
Other deposits received		167,390		74,448		186,817		102,896
Finance lease liabilities		59,117		241,571		131,792		286,468
Dividends payable		4,123		—		4,448		—
Others (*)		—		12,818		135		5,818
	W	5,294,815		3,195,783		5,999,521		3,223,480

(*) Details of others as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Advance received from local governments	W	—		5,818		—		5,818
Others		—		7,000		135		—
	W	—		12,818		135		5,818

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Current liabilities
Short-term borrowings	W	1,261,129			1,038,328
Current portion of long-term borrowings		146,240			128,543
Current portion of debt securities		7,798,440			7,961,182
Less : Current portion of discount on long-term borrowings		(882	)		(886	)
Less : Current portion of discount on debt securities		(1,823	)		(3,882	)
Add : Current portion of premium on debt securities		37			—
		9,203,141			9,123,285
Non-current liabilities
Long-term borrowings		2,746,831			2,455,737
Debt securities		49,609,757			43,270,825
Less : Discount on long-term borrowings		(18,610	)		(21,113	)
Less : Discount on debt securities		(92,474	)		(81,424	)
Add : Premium on debt securities		—			82
		52,245,504			45,624,107
	W	61,448,645			54,747,392

108

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

23. Borrowings and Debt Securities, Continued

(2) Repayment schedule of borrowings and debt securities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won
September 30, 2018
Type	Borrowings		Debt securities
Less than 1 year	W	1,407,369		7,798,440
1~ 5 years		1,307,711		30,398,338
Over 5 years		1,439,120		19,211,419
	W	4,154,200		57,408,197

In millions of won
December 31, 2017
Type	Borrowings		Debt securities
Less than 1 year	W	1,166,871		7,961,182
1~ 5 years		1,117,222		25,047,075
Over 5 years		1,338,515		18,223,750
	W	3,622,608		51,232,007

(3) Short-term borrowings as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won and thousands of foreign currencies
September 30, 2018
Type	Creditor	Interest rate (%)		Maturity		Foreign currency		Local currency
Local short-term borrowings	KTB Investment and securities and others		1.62~2.01		2018.10.16~ 2018.10.24		—	W	950,000
Foreign short-term borrowings	SCNT and others		4.60~6.50		2018.12.03		USD 8,766		9,754
Foreign short-term borrowings	Export-import Bank of Korea		3M Libor+0.59		2018.12.18		AUD 375,473		300,912
Local bank overdraft	Woori Bank		Standard overdraft rate+1.09		2019.02.26		—		463
								W	1,261,129

In millions of won and thousands of foreign currencies
December 31, 2017
Type	Creditor	Interest rate (%)		Maturity		Foreign currency		Local currency
Local short-term borrowings	KTB Investment and securities and others		1.57~2.47		2018.01.12~ 2018.09.19		—	W	686,561
Foreign short-term borrowings	SCNT and others		4.60~6.50		2018.12.03		USD 8,955		9,594
Foreign short-term borrowings	Export-import Bank of Korea		3M Libor+0.41~0.63		2018.12.18		AUD 327,259		273,314
Local bank overdraft	Nonghyup Bank		3.04		2018.01.02		—		51,300
Local bank overdraft	Woori Bank		Standard overdraft rate+1.12		2018.02.27		—		17,559
								W	1,038,328

109

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won and thousands of foreign currencies
September 30, 2018
Type		Interest rate (%)		Maturity		Foreign currency		Local currency
Local long-term borrowings
Korea Development Bank	Others		0.50		2018~2044		—	W	4,517
	Facility		2.45~4.60		2023~2028		—		68,040
	Operating funds		2.59~3.56		2020~2021		—		67,000
	Operating funds		1yr KoFC bond rate +0.95		2020		—		14,000
KEB Hana Bank	Commercial Paper		3M CD+0.19~0.32		2021~2023		—		600,000
	Facility		4.60		2028		—		14,101
	Facility		3yr KTB rate-1.25		2018~2028		—		8,416
IBK	PF Refinancing		CD+1.25		2030		—		22,500
Export-Import Bank of Korea	Project loans		1.50		2026		—		23,569
	Operating funds		2.21		2020		—		35,000
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		5,860
	Facility		3yr KTB rate-2.25		2018~2024		—		2,722
	Project loans		—		2022~2025		—		3,733
	Others		KTB rate -2.25		2024~2028		—		17,760
Shinhan Bank	Collateral borrowing		2.32		2019		—		30,000
	Facility		CB rate+1.10		2028		—		21,151
	Others		3.95		2035		—		105,000
	Others		Standard overdraft rate+1.00		2035		—		105,000
Kookmin Bank	Facility		3.16		2020		—		10,000
	Facility		MOR+0.79		2023		—		32,667
Others	Facility		1.75~4.60		2026~2029		—		141,507
	Facility		CB rate+1.10~1.20		2022~2028		—		42,440
	PF Refinancing		4.10		2030		—		62,500
	Others		4.50~7.90		2022~2039		—		102,347
									1,539,830
Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2021~2023		USD 8,744		9,729
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036		USD 78,287		87,110
	Direct loan and others		3M Libor+2.75~3.70		2027		JOD 163,706		256,739
	Commercial loan and others		3M Libor+1.50~2.50		2030~2033		USD 283,144		315,055
	PF Loan		6M Libor+1.70~2.50		2032		USD 123,411		137,319
SCNT and others	Shareholder’s loan		6.50~8.00		2023		USD 42,408		47,187
	Shareholder’s loan		8.00		2031		JOD 4,853		7,611
PT PJB	Shareholder’s loan		12.75		2019		IDR 9,421,024		703
Samsung Life Insurance and others	Syndicated Loan		3.10		2032		JPY 5,286,835		51,873
Woori Bank and others	Syndicated Loan		JPY 6M Libor+2.00		2032		JPY 3,410,381		33,462
SMBC and others	Equity Bridge Loan		1M Libor+0.90		2019		USD 71,499		79,557
IFC and others	Others		6M Libor+5.00		2031		PKR 23,144,660		208,996
Federal Financing Bank and others	PF loan		2.39~13.00		2031~2038		USD 104,647		116,441
Others	Others		—		2019		USD 1,312		1,459
									1,353,241
									2,893,071
Less : Discount of long-term borrowings									(19,492	)
Less : Current portion of long-term borrowings									(146,240	)
Add : Current portion of discount on long-term borrowings									882
								W	2,728,221

110

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2017
Type		Interest rate (%)		Maturity		Foreign currency		Local currency
Local long-term borrowings
Korea Development Bank	Others		0.50		2018~2044		—	W	4,909
	Facility		2.45~4.60		2023~2028		—		68,883
	Facility		1yr KoFC bond rate +0.31		2018		—		25,000
	Operating funds		2.59~3.04		2018~2020		—		47,000
	Operating funds		1yr KoFC bond rate +0.95		2020		—		14,000
KEB Hana Bank	Commercial Paper		3M CD+0.24~0.32		2021~2022		—		400,000
	Facility		4.60		2028		—		15,038
	Facility		3yr KTB rate-1.25		2018~2028		—		8,947
IBK	PF Refinancing		CD+1.25		2030		—		22,500
Export-Import Bank of Korea	Project loans		1.50		2026		—		25,042
	Operating funds		2.21		2020		—		35,000
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		6,765
	Facility		3yr KTB rate-2.25		2018~2024		—		3,121
	Project loans		—		2022~2025		—		3,733
	Others		KTB rate -2.25		2024~2028		—		18,455
Shinhan Bank	Collateral borrowing		2.32		2019		—		30,000
	Facility		CB rate +1.10		2028		—		22,557
	Operating funds		2.70		2018		—		15,000
	Others		4.10		2035		—		105,000
	Others		Standard overdraft rate +1.10		2035		—		105,000
Kookmin Bank	Facility		3.16		2020		—		10,000
	Facility		MOR+0.79		2023		—		35,000
Others	Facility		1.75~4.60		2026~2029		—		148,423
	Facility		CB rate +1.10~1.20		2022~2028		—		46,278
	PF Refinancing		4.10		2030		—		62,500
	Others		4.50~8.00		2022~2039		—		102,346
									1,380,497
Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2021~2023		USD 8,744		9,368
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036		USD 64,913		69,548
	Direct loan and others		3M Libor+2.75~3.70		2027		JOD 168,663		254,514
	Commercial loan and others		3M Libor+1.50~2.50		2030~2033		USD 289,026		309,662
	PF Loan		6M Libor+1.70~2.50		2032		USD 123,253		132,054
SCNT and others	Shareholder’s loan		6.50~8.00		2023		USD 41,718		44,697
	Shareholder’s loan		8.00		2031		JOD 5,136		7,750
PT PJB	Shareholder’s loan		12.75		2019		IDR 10,932,568		864
Samsung Life Insurance and others	Syndicated Loan		3.10		2032		JPY 5,325,000		50,540
Woori Bank and others	Syndicated Loan		JPY 6M Libor +2.00		2032		JPY 3,435,000		32,602
SMBC and others	Equity Bridge Loan		1M Libor+0.90		2019		USD 70,986		76,054
IFC and others	Others		6M Libor+5.00		2031		PKR 16,652,350		161,195
Federal Financing Bank	PF loan		2.39		2031		USD 48,366		51,819
Others	Others		—		2019		USD 2,907		3,116
									1,203,783
									2,584,280
Less : Discount of long-term borrowings									(21,999	)
Less : Current portion of long-term borrowings									(128,543	)
Add : Current portion of discount on long-term borrowings									886
								W	2,434,624

111

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won
	Issue date		Maturity		Interest rate (%)	September 30, 2018			December 31, 2017
Electricity bonds		2009.12.03~ 2018.09.27		2018.10.14~ 2038.06.15	1.62~5.45	W	23,760,000			20,700,000
Electricity bonds		2013.06.25		2018.06.25	3M CD+0.31		—			150,000
Corporate bonds (*1)		2009.05.04~ 2018.09.28		2018.10.15~ 2048.09.28	1.36~5.84		22,822,708			21,122,708
							46,582,708			41,972,708
Less : Discount on local debt securities							(40,900	)		(37,816	)
Less : Current portion of local debt securities							(4,810,000	)		(5,200,000	)
Add : Current portion of discount on local debt securities							767			923
						W	41,732,575			36,735,815

(*1) Corporate bonds of HeeMang Sunlight Power Co., Ltd (W2,697 million) can be redeemed every March 31 after five years from its issue date, March 31, 2016.

(6) Foreign debt securities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won and thousands of foreign currencies
September 30, 2018
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~8.37		USD 249,072	W	277,142
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		350,186
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		319,256
FY-08	2008.11.27	2018.11.27	4.19		JPY 20,000,000		196,234
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000		556,350
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		834,525
FY-13	2013.10.02~2013.11.27	2018.10.02~2018.11.27	2.63~2.88		USD 1,500,000		1,669,050
FY-13	2013.09.26~2013.10.23	2019.03.26~2019.04.23	1.50~1.63		CHF 400,000		455,536
FY-13	2013.09.25	2020.09.25	5.75		AUD 325,000		260,462
FY-14	2014.02.11~2014.12.02	2019.02.11~2029.07.30	2.38~3.57		USD 1,500,000		1,669,050
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		333,810
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000		333,810
FY-17	2017.04.12~2017.07.25	2020.04.12~2027.07.25	2.38~3.13		USD 1,100,000		1,223,970
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		51,783
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		56,556
FY-18	2018.01.29~2018.07.25	2021.01.29~2023.07.25	3.00~3.88		USD 1,800,000		2,002,860
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		234,909
							10,825,489
Less : Discount on foreign debt securities							(53,397	)
Add : Premium on foreign debt securities							37
Less : Current portion of foreign debt securities							(2,988,440	)
Add : Current portion of discount on foreign debt securities							1,056
Less: Current portion of premium on foreign debt securities							(37	)
						W	7,784,708

112

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2017
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~8.37		USD 249,070	W	266,854
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		337,188
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		307,406
FY-08	2008.11.27	2018.11.27	4.19		JPY 20,000,000		189,822
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000		535,700
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		803,550
FY-13	2013.02.05~2013.11.27	2018.02.05~2018.11.27	1.88~2.88		USD 1,900,000		2,035,660
FY-13	2013.09.26~2013.10.23	2019.03.26~2019.04.23	1.50~1.63		CHF 400,000		437,888
FY-13	2013.09.25	2020.09.25	5.75		AUD 325,000		271,427
FY-13	2013.02.20~2013.07.25	2018.02.20~2018.07.25	3M Libor+0.84~1.50		USD 500,000		535,700
FY-14	2014.02.11~2014.12.02	2019.02.11~2029.07.30	2.38~3.57		USD 1,500,000		1,607,100
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		321,420
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000		321,420
FY-17	2017.04.12~2017.07.25	2020.04.12~2027.07.25	2.38~3.13		USD 1,100,000		1,178,540
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		51,170
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		58,454
							9,259,299
Less : Discount on foreign debt securities							(47,490	)
Add : Premium on foreign debt securities							82
Less : Current portion of foreign debt securities							(2,761,182	)
Add : Current portion of discount on foreign debt securities							2,959
						W	6,453,668

(7) Changes in borrowings and debt securities for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018			September 30, 2017
Beginning balance	W	54,747,392			53,639,205
Cash flow		6,330,557			2,344,597
Effect of exchange rate fluctuations		377,225			(408,642	)
Others		(6,529	)		(3,218	)
Ending balance	W	61,448,645			55,571,942

113

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

24. Finance Lease Liabilities

(1) Lease contracts

The Company entered into power purchase agreements (“PPA”) with GS EPS and two other providers. The Company recognizes these PPAs as finance leases; under the PPAs, there is no transfer of ownership or bargain purchase option of the plants at the end of the agreement, however, the present value of the future minimum power purchase payments equals substantially all of the plants’ respective fair values over a twenty-year period which makes up the major part of the respective plant’s economic life.

(2) Finance lease liabilities as of September 30, 2018 and December 31, 2017 are as follows and are included in current andnon-current trade and other payables, net, in the consolidated statements of financial position:

In millions of won	September 30, 2018				December 31, 2017
	Minimum lease payments		Present value of minimum lease payments		Minimum lease payments		Present value of minimum lease payments
Less than 1 year	W	91,127		59,117		174,534		131,792
1 ~ 5 years		239,836		179,025		272,994		204,069
More than 5 years		76,124		62,546		108,748		82,399
	W	407,087		300,688		556,276		418,260

(3) Current andnon-current portion of finance lease liabilities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Current finance lease liabilities	W	59,117		131,792
Non-current finance lease liabilities		241,571		286,468
	W	300,688		418,260

(4) Minimum lease payment and contingent rent payment recognized as an expense as a lessee for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018						September 30, 2017
	Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Minimum lease payment	W	12,021			87,100			36,690			118,137
Contingent rent payment		(4,759	)		(14,113	)		(5,249	)		(15,774	)

(5) The Company does not have any irrevocable operating lease contracts as of September 30, 2018 and December 31, 2017.

(6) Changes in finance lease liabilities for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018			September 30, 2017
Beginning balance	W	418,260			541,179
Cash flow		(117,572	)		(92,293	)
Acquisition of finance lease assets		—			—
Ending balance	W	300,688			448,886

114

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Net defined benefit obligations	W	1,850,248		1,476,201
Other long-term employee benefit obligations		6,361		6,868
	W	1,856,609		1,483,069

(2) Principal assumptions on actuarial valuation as of September 30, 2018 and December 31, 2017 are as follows:

	September 30, 2018	December 31, 2017
Discount rate	2.58%~2.71%	2.75%~2.90%
Future salary and benefit levels	4.88%	4.88%
Weighted average duration	13.54 years	13.40 years

(3) Details of expense relating to defined benefit plans for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018						September 30, 2017
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Current service cost	W	92,130			269,964			96,932			284,468
Interest cost		22,348			64,916			20,436			57,903
Expected return on plan assets		(10,387	)		(31,178	)		(7,661	)		(22,823	)
Loss from settlement		(439	)		(716	)		(59	)		(515	)
	W	103,652			302,986			109,648			319,033

Expenses as described above are recognized in those items below in the financial statements.

In millions of won	September 30, 2018				September 30, 2017
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Cost of sales	W	77,198		225,124		82,643		241,455
Selling and administrative expenses		12,924		38,047		14,435		42,024
Others(Construction-in-progress and others)		13,530		39,815		12,570		35,554
	W	103,652		302,986		109,648		319,033

In addition, for the nine-month periods ended September 30, 2018 and 2017, employee benefit obligations expenses ofW48,540 million andW47,344 million, respectively, is recognized as cost of sales, andW9,384 million andW8,601 million, respectively, is recognized as selling and administrative expenses, andW10,191 million andW9,859 million, respectively, are recognized asconstruction-in-progress and others, relates to the Company’s defined contribution plans.

115

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Present value of defined benefit obligation from funded plans	W	3,311,205			2,951,842
Fair value of plan assets		(1,460,957	)		(1,475,641	)
		1,850,248			1,476,201
Present value of defined benefit obligation from unfunded plans		—			—
Net liabilities incurred from defined benefit plans	W	1,850,248			1,476,201

(5) Changes in the present value of defined benefit obligations for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	2,951,842			2,867,377
Current service cost		269,964			392,820
Interest cost (*)		64,916			79,524
Remeasurement component		129,409			(258,223	)
Loss from settlement		(716	)		(1,055	)
Actual payments		(104,388	)		(128,707	)
Others		178			106
Ending balance	W	3,311,205			2,951,842

(*) Corporate bond (AAA rated) yield atyear-end is applied to measure the interest cost on employee benefit obligations.

(6) Changes in the fair value of plan assets for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	1,475,641			1,188,907
Expected return		31,178			31,307
Remeasurement component		(10,673	)		(10,435	)
Contributions by the employers		11,547			325,080
Actual payments		(46,736	)		(59,218	)
Ending balance	W	1,460,957			1,475,641

In addition, loss on accumulated remeasurement component amounted toW196,636 million andW43,513 million has been recognized as other comprehensive income or loss for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017, respectively.

116

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Equity instruments	W	26,716		79,204
Debt instruments		481,264		517,040
Bank deposit		160,719		293,477
Others		792,258		585,920
	W	1,460,957		1,475,641

For the nine-month period ended September 30, 2018 and for the year ended December 31, 2017, actual returns on plan assets amounted toW20,505 million andW20,872 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Actuarial gain from changes in financial assumptions	W	75,188		(300,058	)
Experience adjustments		54,221		41,835
Expected return		10,673		10,435
	W	140,082		(247,788	)

Remeasurement component recognized as other comprehensive income or loss is recorded in retained earnings.

26. Provisions

(1) Provisions as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Employment benefits
Provisions for employment benefits	W	994,960		—		913,787		—
Litigation
Litigation provisions		252,464		21,773		48,621		24,955
Decommissioning cost
Nuclear plants		—		13,306,732		—		13,007,228
Spent fuel		—		1,329,534		—		1,339,046
Radioactive waste		11,853		1,614,619		11,494		1,626,877
PCBs		—		172,724		—		180,087
Other recovery provisions		—		8,952		—		6,659
Others
Power plant regional support program		165,048		—		153,756		—
Transmission regional support program		164,693		—		243,365		—
Provisions for tax		24		—		61		—
Provisions for financial guarantee		—		17,132		—		23,475
Provisions for RPS		231,396		—		271,624		—
Provisions for greenhouse gas emissions obligations		—		—		414,252		—
Others		5,490		19,775		80,538		16,387
	W	1,825,928		16,491,241		2,137,498		16,224,714

117

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance		Increase in provision		Payment			Reversal			Other			Ending balance
Employment benefits
Provisions for employment benefits	W	913,787		723,863		(636,091	)		(6,599	)		—			994,960
Litigation
Litigation provisions (*)		73,576		209,419		(6,126	)		(2,632	)		—			274,237
Decommissioning cost
Nuclear plants		13,007,228		315,434		(15,930	)		—			—			13,306,732
Spent fuel		1,339,046		345,799		(355,311	)		—			—			1,329,534
Radioactive waste		1,638,371		18,739		(30,638	)		—			—			1,626,472
PCBs		180,087		3,450		(10,813	)		—			—			172,724
Other recovery provisions		6,659		105		—			—			2,188			8,952
Others
Power plant regional support program		153,756		46,366		(44,598	)		—			9,524			165,048
Transmission regional support program		243,365		103,217		(181,889	)		—			—			164,693
Provisions for tax		61		—		—			—			(37	)		24
Provisions for financial guarantee		23,475		798		(676	)		(5,661	)		(804	)		17,132
Provisions for RPS		271,624		279,929		(320,157	)		—			—			231,396
Provisions for greenhouse gas emissions obligations		414,252		—		(287,907	)		(115,346	)		(10,999	)		—
Others		96,925		3,589		(81,654	)		(403	)		6,808			25,265
	W	18,362,212		2,050,708		(1,971,790	)		(130,641	)		6,680			18,317,169

(*) As described in note 49.(1), the Company believes that the possibility of economic outflow is probable on the request for additional construction costs of Hyundai E&C, GS Engineering & Construction Corp. and Hansol SeenTec Co., Ltd. For this reason, the Company recognizedW204,787 million of provision as addition to property, plant and equipment.

118

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Beginning balance		Increase in provision		Payment			Reversal			Other			Ending balance
Employment benefits
Provisions for employment benefits	W	810,607		984,896		(880,255	)		(1,461	)		—			913,787
Litigation
Litigation provisions		198,237		34,629		(152,461	)		(7,096	)		267			73,576
Decommissioning cost
Nuclear plants		10,195,928		2,818,033		(6,733	)		—			—			13,007,228
Spent fuel		1,374,225		307,682		(342,861	)		—			—			1,339,046
Radioactive waste		1,479,502		222,632		(63,763	)		—			—			1,638,371
PCBs		191,744		5,309		(14,266	)		(2,700	)		—			180,087
Other recovery provisions		507		5,939		—			—			213			6,659
Others
Power plant regional support program		152,851		94,039		(103,889	)		—			10,755			153,756
Transmission regional support program		282,608		143,178		(182,421	)		—			—			243,365
Provisions for tax		242		—		(25	)		(136	)		(20	)		61
Provisions for financial guarantee		29,665		3,760		—			(9,945	)		(5	)		23,475
Provisions for RPS		417,404		242,946		(388,726	)		—			—			271,624
Provisions for greenhouse gas emissions obligations		249,644		422,666		(256,758	)		(1,300	)		—			414,252
Others (*)		43,975		6,639		(3,348	)		(26,477	)		76,136			96,925
	W	15,427,139		5,292,348		(2,395,506	)		(49,115	)		87,346			18,362,212

(*) As described in note 49.(1), the Company believes that the possibility of economic outflow is probable on the cost of construction suspension of Shin-Kori unit 5 and 6 for three months. For this reason, the Company recognizedW77,261 million of provision as addition toconstruction-in-progress.

27. Government Grants

(1) Government grants as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Land	W	(21,968	)		(21,968	)
Buildings		(63,998	)		(63,539	)
Structures		(194,294	)		(196,414	)
Machinery		(171,296	)		(183,188	)
Vehicles		(4,722	)		(6,322	)
Equipment		(484	)		(761	)
Tools		(772	)		(1,027	)
Construction-in-progress		(56,533	)		(49,084	)
Finance lease assets		(27	)		(27	)
Investment properties		(20	)		(83	)
Software		(325	)		(486	)
Development expenditures		(2,355	)		(3,702	)
Intangible assets under development		(11,316	)		(10,540	)
Usage rights of donated assets and other		(3	)		(11	)
Other intangible assets other than goodwill		—			—
	W	(528,113	)		(537,152	)

119

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance			Receipt			Acquisition		Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(23,250	)		—		—		—		23,250			—
Land		(21,968	)		—			—		—		—		—			(21,968	)
Buildings		(63,539	)		—			—		4,456		—		(4,915	)		(63,998	)
Structures		(196,414	)		—			—		7,936		2,120		(7,936	)		(194,294	)
Machinery		(183,188	)		—			—		13,391		525		(2,024	)		(171,296	)
Vehicles		(6,322	)		—			—		1,611		—		(11	)		(4,722	)
Equipment		(761	)		—			—		282		—		(5	)		(484	)
Tools		(1,027	)		—			—		336		—		(81	)		(772	)
Construction-in-progress		(49,084	)		—			11,299		—		—		(18,748	)		(56,533	)
Finance lease assets		(27	)		—			—		1		—		(1	)		(27	)
Investment properties		(83	)		—			—		1		—		62			(20	)
Software		(486	)		—			—		186		—		(25	)		(325	)
Development expenditures		(3,702	)		—			—		1,346		—		1			(2,355	)
Intangible assets under development		(10,540	)		—			—		—		—		(776	)		(11,316	)
Usage rights of donated assets and other		(11	)		—			—		8		—		—			(3	)
Others		—			—			—		—		—		—			—
	W	(537,152)			(23,250	)		11,299		29,554		2,645		(11,209	)		(528,113	)

In millions of won	December 31, 2017
	Beginning balance			Receipt			Acquisition		Offset the items of depreciation expense and others		Disposal		Others			Ending balance
Cash	W	—			(55,533	)		—		—		—		55,533			—
Land		(3,204	)		—			—		—		5		(18,769	)		(21,968	)
Buildings		(61,188	)		—			—		5,996		28		(8,375	)		(63,539	)
Structures		(197,641	)		—			—		10,011		1,905		(10,689	)		(196,414	)
Machinery		(111,064	)		—			—		17,390		489		(90,003	)		(183,188	)
Vehicles		(107	)		—			—		1,070		14		(7,299	)		(6,322	)
Equipment		(732	)		—			—		454		—		(483	)		(761	)
Tools		(430	)		—			—		354		—		(951	)		(1,027	)
Construction-in-progress		(135,807	)		—			129,451		—		—		(42,728	)		(49,084	)
Finance lease assets		—			—			—		1		—		(28	)		(27	)
Investment properties		(64	)		—			—		2		—		(21	)		(83	)
Software		(595	)		—			—		255		—		(146	)		(486	)
Development expenditures		(5,152	)		—			—		2,811		—		(1,361	)		(3,702	)
Intangible assets under development		(11,090	)		—			—		—		—		550			(10,540	)
Usage rights of donated assets and other		(21	)		—			—		10		—		—			(11	)
Others		—			—			—		—		—		—			—
	W	(527,095)			(55,533	)		129,451		38,354		2,441		(124,770	)		(537,152	)

120

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

28. Deferred Revenues

Deferred revenue related to the Company’s construction contracts for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows which included in current andnon-currentnon-financial liabilities in the consolidated statements of financial position:

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	8,325,181			7,825,765
Increase during the current year / period		633,616			978,389
Recognized as revenue during the current year / period		(450,429	)		(478,973	)
Ending balance	W	8,508,368			8,325,181

29. Non-financial Liabilities

Non-financial liabilities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Current		Non-current		Current		Non-current
Advance received	W	3,809,448		107,055		3,772,713		181,612
Unearned revenue		67,678		4,848		41,593		19,718
Deferred revenue		549,094		7,959,274		476,631		7,848,550
Withholdings		382,484		10,564		164,370		10,529
Others		1,271,791		21,679		1,129,001		12,025
	W	6,080,495		8,103,420		5,584,308		8,072,434

121

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

30. Contributed Capital

(1) Details of shares issued as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won except share information

September 30, 2018

Shares authorized

Shares issued

Par value per share (in won)

Owned by government (*)

Owned by others

Total

Common shares

1,200,000,000

641,964,077

W

5,000

1,640,385

1,569,435

3,209,820

(*) Korea Development Bank’s interest ofW1,056,176 million is included.

In millions of won except share information

December 31, 2017

Shares authorized

Shares issued

Par value per share (in won)

Owned by government (*)

Owned by others

Total

Common shares

1,200,000,000

641,964,077

W

5,000

1,640,385

1,569,435

3,209,820

(*) Korea Development Bank’s interest ofW1,056,176 million is included.

(2) Details in number of outstanding capital stock for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

Number of shares	September 30, 2018		December 31, 2017
Beginning balance		641,964,077		641,964,077
Ending balance		641,964,077		641,964,077

(3) Details of share premium as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Share premium	W	843,758		843,758

122

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Legal reserve (*)	W	1,604,910		1,604,910
Voluntary reserves		35,906,267		34,833,844
Retained earnings before appropriations		14,837,014		16,931,804
Retained earnings	W	52,348,191		53,370,558

(*) 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 topaid-in capital or offset against accumulated deficit by the resolution of the shareholders.

(2) Details of voluntary reserves as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Reserve for investment on social overhead capital	W	5,277,449		5,277,449
Reserve for research and human development (*)		330,000		330,000
Reserve for business expansion		30,088,818		29,016,395
Reserve for equalizing dividends		210,000		210,000
	W	35,906,267		34,833,844

(*) 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.

(3) Changes in retained earnings for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	53,370,558			53,173,871
Effect of change in accounting policy		71,928			—
Net profit for the period attributed to owner of the Company		(517,907	)		1,298,720
Changes in equity method retained earnings		8,514			10,065
Remeasurement of defined benefit liability, net of tax		(77,750	)		158,991
Dividends paid		(507,152	)		(1,271,089	)
Ending balance	W	52,348,191			53,370,558

(4) Dividends paid for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends		Dividends paid per share (in won)		Dividends paid
Common shares		641,964,077		—		641,964,077	W	790		507,152

In millions of won	December 31, 2017
	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends		Dividends paid per share (in won)		Dividends paid
Common shares		641,964,077		—		641,964,077	W	1,980		1,271,089

123

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(5) Changes in retained earnings of investments in associates and joint ventures for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows :

In millions of won	September 30, 2018		December 31, 2017
Beginning balance	W	5,122		(4,943	)
Changes		8,514		10,065
Ending balance	W	13,636		5,122

(6) Changes in remeasurement components related to defined benefit liability for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows :

In millions of won	September 30, 2018			December 31, 2017
Beginning balance	W	(43,513	)		(222,997	)
Changes		(132,684	)		239,636
Income tax effect		54,934			(80,645	)
Transfer to reserve for business expansion		(75,373	)		20,493
Ending balance	W	(196,636	)		(43,513	)

32. Hybrid Bonds

Hybrid bonds classified as equity(non-controlling interest) as of September 30, 2018 and December 31, 2017are as follows:

In millions of won
Issuer	Hybrid bond		Issued date		Maturity		Yield (%)		September 30, 2018			December 31, 2017
Korea South-East Power Co., Ltd.		1st hybrid bond		2012.12.07		2042.12.06		4.38	W	170,000			170,000
Korea South-East Power Co., Ltd.		2nd hybrid bond		2012.12.07		2042.12.06		4.44		230,000			230,000
Expense of issuance										(1,090	)		(1,090	)
									W	398,910			398,910

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 ordinary shares, they are not required to pay interest on the hybrid bonds.

Substantially, as these instruments have no contractual obligation to pay principal and interest, these instruments have been classified as equity(non-controlling interest) in the Company’s consolidated financial statements.

124

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

33. Other Components of Equity

(1) Other components of equity as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Other capital surplus	W	1,233,815			1,233,793
Accumulated other comprehensive loss		(303,655	)		(271,457	)
Other equity		13,294,973			13,294,973
	W	14,225,133			14,257,309

(2) Changes in other capital surplus for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018						December 31, 2017
	Gain on disposal of treasury stocks		Others		Subtotal		Gain on disposal of treasury stocks		Others			Subtotal
Beginning balance	W	387,524		846,269		1,233,793		387,524		847,622			1,235,146
Issuance of share capital of subsidiary		—		22		22		—		(1,378	)		(1,378	)
Others		—		—		—		—		25			25
Ending balance	W	387,524		846,291		1,233,815		387,524		846,269			1,233,793

125

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Available-for-sale financial asset valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures		Reserve for overseas operations translation			Reserve for loss on valuation of derivatives			Total
Beginning balance	W	29,268			66,464		(318,159	)		(49,030	)		(271,457	)
Effect of change in accounting policy		(76,851	)		—		—			—			(76,851	)
Changes in the unrealized fair value ofavailable-for-sale financial assets, net of tax		1,482			—		—			—			1,482
Shares in other comprehensive income of associates and joint ventures, net of tax		—			71,400		—			—			71,400
Foreign currency translation of foreign operations, net of tax		—			—		(954	)		—			(954	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—		—			(27,275	)		(27,275	)
Ending balance	W	(46,101	)		137,864		(319,113	)		(76,305	)		(303,655	)

In millions of won	December 31, 2017
	Available-for-sale financial asset valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures			Reserve for overseas operations translation			Reserve for loss on valuation of derivatives			Total
Beginning balance	W	36,370			221,455			(223,056	)		(68,644	)		(33,875	)
Changes in the unrealized fair value ofavailable-for-sale financial assets, net of tax		(7,102	)		—			—			—			(7,102	)
Shares in other comprehensive income of associates and joint ventures, net of tax		—			(154,991	)		—			—			(154,991	)
Foreign currency translation of foreign operations, net of tax		—			—			(95,103	)		—			(95,103	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—			—			19,614			19,614
Ending balance	W	29,268			66,464			(318,159	)		(49,030	)		(271,457	)

(4) Details of changes in other equity for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Statutory revaluation reserve	W	13,295,098			13,295,098
Changes in other equity		(125	)		(125	)
	W	13,294,973			13,294,973

126

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

34. Sales

Details of sales for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018
	Domestic				Overseas				Total
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
[Type of goods and services]
Sales of goods	W	15,694,683		43,220,255		99,656		286,890		15,794,339		43,507,145
Electricity		15,506,010		42,637,084		—		—		15,506,010		42,637,084
Heat supply		5,105		147,723		—		—		5,105		147,723
Others		183,568		435,448		99,656		286,890		283,224		722,338
Sales of service		44,685		114,805		71,845		149,007		116,530		263,812
Sales of construction services		22,377		77,035		334,690		1,154,626		357,067		1,231,661
Revenue related to transfer of assets from customers		141,908		450,429		—		—		141,908		450,429
	W	15,903,653		43,862,524		506,191		1,590,523		16,409,844		45,453,047
[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	15,694,683		43,220,255		99,656		286,890		15,794,339		43,507,145
Performance obligations satisfied over time		208,970		642,269		406,535		1,303,633		615,505		1,945,902
	W	15,903,653		43,862,524		506,191		1,590,523		16,409,844		45,453,047

In millions of won	September 30, 2017
	Domestic				Overseas				Total
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
[Type of goods and services]
Sales of goods	W	15,241,696		41,288,145		115,434		300,506		15,357,130		41,588,651
Electricity		15,121,330		40,770,117		—		—		15,121,330		40,770,117
Heat supply		3,962		136,571		—		—		3,962		136,571
Others		116,404		381,457		115,434		300,506		231,838		681,963
Sales of service		42,336		134,965		41,734		108,939		84,070		243,904
Sales of construction services		24,235		65,833		601,166		2,005,151		625,401		2,070,984
Revenue related to transfer of assets from customers		121,126		356,336		—		—		121,126		356,336
	W	15,429,393		41,845,279		758,334		2,414,596		16,187,727		44,259,875
[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	15,241,696		41,288,145		115,434		300,506		15,357,130		41,588,651
Performance obligations satisfied over time		187,697		557,134		642,900		2,114,090		830,597		2,671,224
	W	15,429,393		41,845,279		758,334		2,414,596		16,187,727		44,259,875

127

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
Salaries	W	182,114		558,259		175,450		523,675
Retirement benefit expense		16,072		47,431		17,365		50,625
Welfare and benefit expense		41,893		97,493		63,374		119,050
Insurance expense		2,443		9,884		2,581		9,608
Depreciation		53,040		159,600		47,375		141,988
Amortization of intangible assets		12,409		38,593		11,257		32,547
Bad debt expense		8,673		26,740		8,225		16,860
Commission		164,670		510,765		153,848		475,538
Advertising expense		6,747		20,095		5,437		22,537
Training expense		1,500		5,112		2,224		5,457
Vehicle maintenance expense		2,438		7,476		2,528		7,365
Publishing expense		482		2,009		575		2,371
Business development expense		653		2,193		794		2,827
Rent expense		14,464		31,812		12,647		28,578
Telecommunication expense		5,698		17,434		6,171		18,909
Transportation expense		203		428		96		334
Taxes and dues		2,024		36,267		3,845		33,313
Expendable supplies expense		1,697		4,338		1,352		4,671
Water, light and heating expense		3,512		10,349		2,943		8,697
Repairs and maintenance expense		6,508		38,372		18,578		42,319
Ordinary development expense		49,125		133,729		54,802		142,933
Travel expense		3,534		10,497		3,851		12,735
Clothing expense		1,647		4,419		2,588		3,418
Survey and analysis expense		177		513		184		514
Membership fee		181		851		217		984
Others		30,452		91,848		36,972		109,835
	W	612,356		1,866,507		635,279		1,817,688

128

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

36. OtherNon-operating Income and Expense

(1) Othernon-operating income for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
Reversal of other provisions	W	649		2,126		1,532		3,925
Gains on government grants		66		211		123		628
Gains on assets contributed		3,735		4,153		149		1,261
Gains on liabilities exempted		164		7,185		137		759
Compensation and reparations revenue		19,997		62,751		19,748		68,359
Revenue from research contracts		2,667		5,511		5,409		8,288
Rental income		45,199		138,537		49,069		143,796
Others		8,797		39,449		4,080		45,893
	W	81,274		259,923		80,247		272,909

(2) Othernon-operating expense for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018					September 30, 2017
	Three- month period ended			Nine- month period ended		Three- month period ended		Nine- month period ended
Compensation and reparations expenses	W	2,329			21,617		—		—
Accretion expenses of other provisions		64			254		77		6,894
Depreciation expenses on investment properties		209			717		408		953
Depreciation expenses on idle assets		1,637			4,911		1,650		4,963
Other bad debt expense		(7,976	)		3,477		—		405
Donations		14,480			33,438		15,582		48,165
Others (*)		10,169			54,020		55		21,890
	W	20,912			118,434		17,772		83,270

(*) Others includeW34,415 million of impairment loss onconstruction-in-progress of Cheonji unit 1 and 2 and Daejin unit 1 and 2 as described in note 2.

129

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018						September 30, 2017
	Three- month period ended			Nine- month period ended			Three- month period ended			Nine- month period ended
Other gains
Gains on disposal of property, plant and equipment	W	64,769			91,132			13,724			33,742
Gains on disposal of intangible assets		8			11			72			555
Gains on foreign currency translation		17,128			12,925			295			10,105
Gains on foreign currency transaction		9,883			33,089			16,164			72,783
Gains on insurance proceeds		—			—			—			383
Others		38,787			145,605			32,189			195,859
Other losses
Losses on disposal of property, plant and equipment		(14,474	)		(27,874	)		(11,055	)		(31,251	)
Losses on disposal of intangible assets		(18	)		(23	)		—			(79	)
Losses on impairment of property, plant, and equipment		—			(701,317	)		—			—
Losses on foreign currency translation		(2,164	)		(5,150	)		(4,959	)		(20,142	)
Losses on foreign currency transaction		(18,608	)		(51,981	)		(12,666	)		(34,854	)
Others		(12,248	)		(44,623	)		(35,510	)		(75,846	)
	W	83,063			(548,206	)		(1,746	)		151,255

130

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

38. Finance Income

(1) Finance Income for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Interest income	W	66,888		175,004		46,779		155,133
Dividends income		—		11,811		—		10,971
Gains on valuation ofavailable-for-sale assets		2,567		5,514		—		—
Gains on disposal of financial assets		83		755		56		564
Gains on valuation of financial assets at FVTPL		1,645		3,708		—		—
Gains on valuation of derivatives		3,581		231,692		87,277		25,605
Gains on transaction of derivatives		28,171		65,538		9,519		24,870
Gains on foreign currency translation		92,609		116,109		5,575		481,597
Gains on foreign currency transaction		2,863		17,030		54,730		137,450
	W	198,407		627,161		203,936		836,190

(2) Interest income included in finance income for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Cash and cash equivalents	W	15,456		36,466		7,666		26,280
Financial assets at fair value through profit or loss		145		435		145		145
Held-to-maturity investments		22		63		20		63
Loans and receivables		10,835		27,631		11,206		25,702
Short-term financial instrument		12,262		35,166		8,440		19,420
Long-term financial instrument		5,765		9,769		2,307		5,308
Trade and other receivables		22,403		65,474		16,995		78,215
	W	66,888		175,004		46,779		155,133

131

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

39. Finance Expenses

(1) Finance expenses for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Interest expense	W	479,883		1,407,191		463,202		1,340,578
Losses on sale of financial assets		—		—		—		1,092
Losses on valuation of financial assets at fair value through profit or loss		832		4,242		—		393
Impairment ofavailable-for-sale financial assets		—		—		—		118
Losses on valuation of derivatives		119,991		70,861		27,039		336,420
Losses on transaction of derivatives		9,763		23,648		53,853		172,673
Losses on foreign currency translation		11,627		397,607		103,006		134,674
Losses on foreign currency transaction		12,183		28,596		4,854		20,464
Losses on repayments of financial liabilities		—		—		—		5
Others		123		515		228		877
	W	634,402		1,932,660		652,182		2,007,294

(2) Interest expense included in finance expenses for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018						September 30, 2017
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Trade and other payables	W	10,366			33,346			108,118			136,228
Short-term borrowings		12,229			28,158			8,824			28,832
Long-term borrowings		22,540			75,116			32,791			71,477
Debt securities		452,895			1,313,669			423,730			1,274,317
Other financial liabilities		126,762			381,297			29,672			277,661
		624,792			1,831,586			603,135			1,788,515
Less: capitalized borrowing costs		(144,909	)		(424,395	)		(139,933	)		(447,937	)
	W	479,883			1,407,191			463,202			1,340,578

Capitalization rates for the nine-month periods ended September 30, 2018 and 2017 are 2.70%~3.64% and 2.29%~3.59% respectively.

132

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

40. Income Taxes

(1) Income tax expense (benefit) for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018			September 30, 2017
Current income tax expense
Payment of income tax	W	281,692			703,263
Adjustment in respect of prior years due to change in estimate		(133,405	)		20,656
Current income tax directly recognized in equity		84,308			40,193
Effect of change in accounting policy		1,780			—
		234,375			764,112
Deferred income tax expense
Generation and realization of temporary differences		(333,740	)		610,643
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods		(41,581	)		(3,250	)
Changes in deferred tax on tax losses carryforwards		(281,000	)		—
Tax credit carryforwards		29			—
		(656,292	)		607,393
Income tax expense (benefit)	W	(421,917	)		1,371,505

(2) Reconciliation between actual income tax expense and amount computed by applying the statutory tax rate to income before income taxes for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018			September 30, 2017
Income (loss) before income tax	W	(853,685	)		4,159,692
Income tax expense (benefit) computed at applicable tax rate (*1)		(234,763	)		1,006,645
Adjustments
Effect of applying gradual tax rate		(2,474	)		(3,812	)
Effect ofnon-taxable income		6,741			(18,700	)
Effect ofnon-deductible expenses		9,221			4,360
Effect of tax losses that are not recognized as deferred tax asset		11,328			—
Effects of tax credits and deduction		(19,669	)		(152,115	)
Reversal of unrecognized deferred tax asset, net		(41,581	)		(3,250	)
Effect of change in deferred tax due to change in tax rate		10,251			—
Deferred income tax related to investments in subsidiaries and associates		(9,730	)		506,081
Others, net		(17,836	)		11,640
		(53,749	)		344,204
Adjustment in respect of prior years due to change in estimate		(133,405	)		20,656
Income tax expense (benefit)	W	(421,917	)		1,371,505
Effective tax rate		(*2	)		33.0	%

(*1) Applicable tax rate is 27.5% and 24.2% as of September 30, 2018 and 2017, respectively.

(*2) The effective tax rate for the nine-month period ended September 30, 2018 is not calculated for income tax benefit.

(3) Income tax directly adjusted to shareholders’ equity (except for accumulated other comprehensive income (loss)) for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018		September 30, 2017
Dividends of hybrid bond	W	3,205		3,935

133

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

40. Income Taxes, Continued

(4) Income tax recognized as other comprehensive income (loss) for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018			September 30, 2017
Income tax recognized as other comprehensive income (loss)
Gain (loss) on valuation ofavailable-for-sale financial assets	W	16,634			(5,389	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		25,414			(1,179	)
Remeasurement of defined benefit obligations		54,934			22,221
Investments in associates		55			3,289
Others		(15,934	)		17,316
	W	81,103			36,258

(5) Changes in deferred income tax assets (liabilities) recognized in the statements of financial position for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018
	Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance
Deferred income tax on temporary differences
Employee benefits	W	498,694			77,282			54,934			—		630,910
Cash flow hedge		65,445			(40,457	)		25,414			—		50,402
Investments in associates or subsidiaries		(8,668,016	)		(71,351	)		55			—		(8,739,312	)
Property, plant and equipment		(6,860,440	)		338,461			—			—		(6,521,979	)
Finance lease		(426,949	)		(22,531	)		—			—		(449,480	)
Intangible assets		7,648			(2,601	)		—			—		5,047
Financial assets at fair value through profit or loss		890			(1,220	)		—			—		(330	)
Available-for-sale financial assets		(8,843	)		171			16,634			—		7,962
Deferred revenue		230,711			(12,515	)		—			—		218,196
Provisions		4,822,833			(54,322	)		—			—		4,768,511
Doubtful receivables		59			—			—			—		59
Other finance liabilities		32,755			2,760			—			3,205		38,720
Gains or losses on foreign exchange translation		(1,354	)		33,132			—			—		31,778
Allowance for doubtful accounts		42,931			12,469			—			—		55,400
Accrued income		(1,825	)		(2,567	)		—			—		(4,392	)
Special deduction for property, plant and equipment		(200,927	)		(522	)		—			—		(201,449	)
Reserve for research and human development		(3,041	)		2,341			—			—		(700	)
Others		952,754			32,483			(15,934	)		—		969,303
		(9,516,675	)		291,013			81,103			3,205		(9,141,354	)
Deferred income tax on unused tax losses and tax credit
Unused tax losses		—			281,000			—			—		281,000
Tax credit		20,431			(29	)		—			—		20,402
		20,431			280,971			—			—		301,402
	W	(9,496,244	)		571,984			81,103			3,205		(8,839,952	)

134

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

40. Income Taxes, Continued

(5) Changes in deferred income tax assets (liabilities) recognized in the statements of financial position for the nine-month periods ended September 30, 2018 and for the year ended December 31, 2017 are as follows, continued:

In millions of won	December 31, 2017
	Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity			Ending balance
Deferred income tax on temporary differences
Employee benefits	W	493,331			86,008			(80,645	)		—			498,694
Cash flow hedge		(53,583	)		130,044			(11,016	)		—			65,445
Investments in associates or subsidiaries		(7,166,345	)		(1,510,295	)		8,649			(25	)		(8,668,016	)
Property, plant and equipment		(5,527,318	)		(1,333,122	)		—			—			(6,860,440	)
Finance lease		(345,431	)		(81,518	)		—			—			(426,949	)
Intangible assets		8,987			(1,339	)		—			—			7,648
Financial assets at fair value through profit or loss		(62	)		952			—			—			890
Available-for-sale financial assets		(68,347	)		62,055			(2,551	)		—			(8,843	)
Deferred revenue		213,859			16,852			—			—			230,711
Provisions		3,583,371			1,239,462			—			—			4,822,833
Doubtful receivables		2,696			(2,637	)		—			—			59
Other finance liabilities		30,249			(2,742	)		—			5,248			32,755
Gains or losses on foreign exchange translation		138,938			(140,292	)		—			—			(1,354	)
Allowance for doubtful accounts		17,252			25,679			—			—			42,931
Accrued income		(5,367	)		3,542			—			—			(1,825	)
Special deduction for property, plant and equipment		(194,309	)		(6,618	)		—			—			(200,927	)
Reserve for research and human development		(12,883	)		9,842			—			—			(3,041	)
Others		695,870			232,642			24,242			—			952,754
		(8,189,092	)		(1,271,485	)		(61,321	)		5,223			(9,516,675	)
Deferred income tax on unused tax losses and tax credit
Tax credit		35,703			(15,272	)		—			—			20,431
		35,703			(15,272	)		—			—			20,431
	W	(8,153,389	)		(1,286,757	)		(61,321	)		5,223			(9,496,244	)

(6) Deferred income tax assets (liabilities) recognized in the statements of financial position as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Deferred income tax assets	W	1,159,894			919,153
Deferred income tax liabilities		(9,999,846	)		(10,415,397	)
	W	(8,839,952	)		(9,496,244	)

(7) Details of deductible temporary differences, tax losses and unused tax credits for which no deferred income tax assets were recognized as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Deductible temporary differences	W	442,140		444,426

135

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

41. AssetsHeld-for-Sale

Assetsheld-for-sale as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Land (*1)	W	2,765		2,765
Building (*1)		19,369		19,369
Investments in associates (*2, 3, 4)		—		5,837
	W	22,134		27,971

(*1) The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Company, determined to dispose the office building in Yongin as part of the government’s plan to relocatestate-run companies for balanced national development and moved the head office to Kimchun, Kyungsangbukdo, in 2015. As the Company believes the book value of Yongin office will be recovered by a disposal transaction rather than continuous operation, it reclassified buildings, land and structures as assetsheld-for-sale.

(*2) Korea Western Power Co., Ltd., a subsidiary of the Company, planned to dispose certain portion of its investment in Dongducheon Dream Power Co., Ltd. and had classified the relevant book value asnon-current assetsheld-for-sale. However, due to uncertainty of sale, it reclassified the relevant book value to investments in associates during the year ended December 31, 2017.

(*3) Korea Hydro & Nuclear Power Co., Ltd., a subsidiary of the Company, initiated efforts to sell its shares in Yeongwol Energy Station Co., Ltd. during the year ended December 31, 2016. KHNP won the first trial of the lawsuit against the counterparty on November 2, 2017 and sold its shares in Yeongwol Energy Station Co. during the nine-month period ended September 30, 2018 accordingly.

(*4) KEPCO Engineering & Construction Company, Inc., a subsidiary of the Company, exercised a put option to sell the shares of DS POWER Co., Ltd. on December 11, 2017 and the shares were sold on February 28, 2018.

136

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

42. Expenses Classified by Nature

Expenses classified by nature for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		14,657,641		14,657,641
Salaries		558,259		2,548,980		3,107,239
Retirement benefit expense		47,431		273,664		321,095
Welfare and benefit expense		97,493		349,651		447,144
Insurance expense		9,884		72,205		82,089
Depreciation		159,600		7,297,526		7,457,126
Amortization of intangible assets		38,593		48,339		86,932
Bad debt expense		26,740		—		26,740
Commission		510,765		324,981		835,746
Advertising expense		20,095		6,159		26,254
Training expense		5,112		8,009		13,121
Vehicle maintenance expense		7,476		5,558		13,034
Publishing expense		2,009		2,279		4,288
Business promotion expense		2,193		2,943		5,136
Rent expense		31,812		125,236		157,048
Telecommunication expense		17,434		61,292		78,726
Transportation expense		428		3,111		3,539
Taxes and dues		36,267		355,979		392,246
Expendable supplies expense		4,338		21,418		25,756
Water, light and heating expense		10,349		26,675		37,024
Repairs and maintenance expense		38,372		1,514,420		1,552,792
Ordinary development expense		133,729		362,657		496,386
Travel expense		10,497		49,874		60,371
Clothing expense		4,419		2,536		6,955
Survey and analysis expense		513		2,654		3,167
Membership fee		851		5,977		6,828
Power purchase		—		13,362,533		13,362,533
Others		91,848		1,513,759		1,605,607
	W	1,866,507		43,006,056		44,872,563

137

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the nine-month periods ended September 30, 2018 and 2017 are as follows, continued:

In millions of won	September 30, 2017
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		11,498,275		11,498,275
Salaries		523,675		2,472,557		2,996,232
Retirement benefit expense		50,625		288,799		339,424
Welfare and benefit expense		119,050		374,513		493,563
Insurance expense		9,608		72,721		82,329
Depreciation		141,988		7,045,129		7,187,117
Amortization of intangible assets		32,547		55,659		88,206
Bad debt expense		16,860		—		16,860
Commission		475,538		338,216		813,754
Advertising expense		22,537		6,314		28,851
Training expense		5,457		9,195		14,652
Vehicle maintenance expense		7,365		5,424		12,789
Publishing expense		2,371		2,466		4,837
Business promotion expense		2,827		3,546		6,373
Rent expense		28,578		104,175		132,753
Telecommunication expense		18,909		55,292		74,201
Transportation expense		334		6,401		6,735
Taxes and dues		33,313		350,967		384,280
Expendable supplies expense		4,671		24,070		28,741
Water, light and heating expense		8,697		23,783		32,480
Repairs and maintenance expense		42,319		1,422,576		1,464,895
Ordinary development expense		142,933		356,205		499,138
Travel expense		12,735		51,236		63,971
Clothing expense		3,418		2,319		5,737
Survey and analysis expense		514		2,546		3,060
Membership fee		984		8,206		9,190
Power purchase		—		10,386,822		10,386,822
Others		109,835		2,392,176		2,502,011
	W	1,817,688		37,359,588		39,177,276

138

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In won	September 30, 2018					September 30, 2017
Type	Three- month period ended		Nine- month period ended			Three- month period ended		Nine- month period ended
Basic earnings (loss) per share	W	1,104		(807	)		2,326		4,186

(2) Net profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings per share for the three and nine-month periods ended September 30, 2018 and 2017 are as follows

In millions of won except number of shares	September 30, 2018					September 30, 2017
Type	Three- month period ended		Nine- month period ended			Three- month period ended		Nine- month period ended
Net profit (loss) attributable to controlling interest	W	708,582		(517,907	)		1,493,036		2,687,115
Profit (loss) used in the calculation of total basic earnings per share		708,582		(517,907	)		1,493,036		2,687,115
Weighted average number of common shares		641,964,077		641,964,077			641,964,077		641,964,077

(3) Weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In number of shares	September 30, 2018				September 30, 2017
Type	Three- month period ended		Nine- month period ended		Three- month period ended		Nine- month period ended
The number of common shares issued at beginning of the year		641,964,077		641,964,077		641,964,077		641,964,077
Weighted average number of common shares		641,964,077		641,964,077		641,964,077		641,964,077

(4) There are no potential dilutive instruments and diluted earnings (loss) per share are same as basic earnings (loss) per share for the nine-month periods ended September 30, 2018 and 2017.

139

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. 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.

Details of the Company’s capital management accounts as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018			December 31, 2017
Total borrowings and debt securities	W	61,448,645			54,747,392
Cash and cash equivalents		2,925,047			2,369,739
Net borrowings and debt securities		58,523,598			52,377,653
Total shareholder’s equity	W	71,937,377			72,964,641
Debt to equity ratio		81.35	%		71.78	%

(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.

140

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. 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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018		December 31, 2017
Cash and cash equivalents	W	2,925,047		2,369,739
Financial assets at fair value through profit or loss		193,169		111,512
Derivative assets (trading)		44,622		22,020
Available-for-sale financial assets		798,229		699,833
Held-to-maturity investments		3,183		3,144
Loans and receivables		697,087		905,641
Long-term/short-term financial instruments		4,815,831		2,244,514
Derivative assets (applying hedge accounting)		77,690		10,606
Trade and other receivables		9,060,117		9,683,769
Financial guarantee contracts (*)		1,278,258		1,154,862

(*) 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 andnon-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, 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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won		September 30, 2018						December 31, 2017
Type	Accounts	1% Increase			1% Decrease			1% Increase			1% Decrease
Future salary increases	Increase (decrease) in defined benefit obligation	W	400,530			(358,931	)		354,852			(305,494	)
Discount rate	Increase (decrease) in defined benefit obligation		(348,952	)		399,540			(313,597	)		377,148

Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the nine-month periods ended September 30, 2018 and 2017 areW10,994 million andW8,926 million, respectively.

141

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Provisions

Changes in provisions due to movements in underlying assumptions as of September 30, 2018 and December 31, 2017 are as follows:

Type	Accounts	September 30, 2018			December 31, 2017
PCBs	Inflation rate		1.23	%		1.23	%
	Discount rate		2.55	%		2.55	%
Nuclear plants	Inflation rate		1.21	%		1.21	%
	Discount rate		2.94	%		2.94	%
Spent fuel	Inflation rate		2.93	%		2.93	%
	Discount rate		4.49	%		4.49	%

A sensitivity analysis of provisions assuming a 0.1% increase and decrease movements in the underlying assumptions as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won		September 30, 2018						December 31, 2017
Type	Accounts	0.1% Increase			0.1% Decrease			0.1% Increase			0.1% Decrease
Discount rate	PCBs	W	(692	)		696			(811	)		816
	Nuclear plants		(257,836	)		264,996			(262,949	)		270,370
	Spent fuel		(50,650	)		52,618			(51,015	)		52,997
Inflation rate	PCBs		842			(838	)		826			(822	)
	Nuclear plants		292,855			(285,037	)		287,926			(280,249	)
	Spent fuel		53,379			(51,452	)		53,763			(51,823	)

142

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. 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 September 30, 2018 and December 31, 2017 are as follows:

In thousands of foreign currencies	Assets				Liabilities
Type	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
AED		11,950		5,693		2,130		2,049
AUD		143		145		698,947		652,259
BDT		69,244		60,208		1,147		1,001
BWP		1,572		797		287		—
CAD		316		82		45		171
CHF		—		—		400,000		400,004
CNY		13,051		13,007		26,140		26,140
EUR		8,155		5,708		52,710		68,003
GBP		—		3		1		2,327
HKD		—		—		1,650,000		—
IDR		60,568		167,775		—		—
INR		1,249,226		1,228,259		120,452		227,078
JOD		2,570		1,624		5		5
JPY		207,460		799,501		20,096,493		21,624,128
KZT		1,624		359		—		—
MGA		2,645,982		2,762,572		92,478		319,581
NOK		—		—		—		482
PHP		457,090		189,261		39,011		125,431
PKR		307,635		251,190		4,409		4,676
SAR		2,160		1,191		—		44
SEK		—		—		39,903		449,002
USD		1,490,338		1,653,858		9,570,064		8,321,335
UYU		71,837		12,955		4,072		10,586
ZAR		169		361		5		4
MMK		113,487		—		—		—

A sensitivity analysis on the Company’s income for the period assuming a 10% increase and decrease in currency exchange rates as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018					December 31, 2017
Type	10% Increase			10% Decrease		10% Increase			10% Decrease
Increase (decrease) of profit before income tax	W	(1,045,997	)		1,045,997		(844,122	)		844,122
Increase (decrease) of shareholder’s equity (*)		(1,045,997	)		1,045,997		(844,122	)		844,122

(*) 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 September 30, 2018 and December 31, 2017.

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 cross-currency swap agreements.

143

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won
Type	September 30, 2018		December 31, 2017
Short-term borrowings	W	301,375		290,873
Long-term borrowings		1,990,754		1,743,252
Debt securities		—		685,700
	W	2,292,129		2,719,825

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 nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won	September 30, 2018					December 31, 2017
Type	1% Increase			1% Decrease		1% Increase			1% Decrease
Increase (decrease) of profit before income tax	W	(17,191	)		17,191		(27,198	)		27,198
Increase (decrease) of shareholder’s equity (*)		(17,191	)		17,191		(27,198	)		27,198

(*) The effect on the shareholders’ equity excluding the impact of income taxes.

To manage its interest rate risks, the Company enters into certain interest swap agreements or maintains an appropriate mix of fixed and floating rate borrowings.

③ Electricity rates risk

The Company is exposed to electricity rates risk due to the rate regulation of the government which considers the effect of electricity rate on the national economy.

A sensitivity analysis on the Company’s income for the period assuming a 1% increase and decrease in price of electricity for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018					September 30, 2017
Type	1% Increase		1% Decrease			1% Increase		1% Decrease
Increase (decrease) of profit before income tax	W	426,371		(426,371	)		407,701		(407,701	)
Increase (decrease) of shareholder’s equity (*)		426,371		(426,371	)		407,701		(407,701	)

(*) The effect on the shareholders’ equity excluding the impact of income taxes.

144

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

(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 following table shows the details of maturities ofnon-derivative financial liabilities as of September 30, 2018 and December 31, 2017. This table, based on the undiscounted cash flows of thenon-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

In millions of won	September 30, 2018
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	10,995,058		10,478,476		26,616,074		25,141,283		73,230,891
Finance lease liabilities		91,127		87,709		152,126		76,125		407,087
Trade and other payables		5,235,698		290,617		714,141		1,949,454		8,189,910
Financial guarantee contracts (*)		—		818,229		457,582		2,447		1,278,258
	W	16,321,883		11,675,031		27,939,923		27,169,309		83,106,146

In millions of won	December 31, 2017
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	10,748,437		7,948,320		21,331,394		22,694,867		62,723,018
Finance lease liabilities		174,534		87,709		185,284		108,749		556,276
Trade and other payables		5,867,729		301,165		698,289		1,937,558		8,804,741
Financial guarantee contracts (*)		7,081		18,054		1,049,667		80,060		1,154,862
	W	16,797,781		8,355,248		23,264,634		24,821,234		73,238,897

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of September 30, 2018 and December 31, 2017 areW17,132 millionW23,475 million, respectively.

145

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

The expected maturities fornon-derivative financial assets as of September 30, 2018 and December 31, 2017 in detail are as follows:

In millions of won	September 30, 2018
Type	Less than 1 year		1~5 Years		More than 5 years		Other (*)		Total
Cash and cash equivalents	W	2,925,047		—		—		—		2,925,047
Available-for-sale financial assets		—		—		178,022		620,207		798,229
Held-to-maturity investments		957		2,224		2		—		3,183
Loans and receivables		94,607		278,292		354,700		11,473		739,072
Long-term/short-term financial Instruments		4,206,496		251,335		357,649		351		4,815,831
Financial assets at fair value through profit or loss		99		—		193,070		—		193,169
Trade and other receivables		7,247,500		979,416		791,879		50,463		9,069,258
	W	14,474,706		1,511,267		1,875,322		682,494		18,543,789

In millions of won	December 31, 2017
Type	Less than 1 year		1~5 Years		More than 5 years		Other (*)		Total
Cash and cash equivalents	W	2,369,739		—		—		—		2,369,739
Available-for-sale financial assets		—		—		214,156		485,677		699,833
Held-to-maturity investments		5		3,139		—		—		3,144
Loans and receivables		244,309		261,672		429,628		10,821		946,430
Long-term/short-term financial Instruments		1,702,084		201,821		340,304		305		2,244,514
Financial assets at fair value through profit or loss		—		—		111,512		—		111,512
Trade and other receivables		7,930,715		920,539		788,795		52,031		9,692,080
	W	12,246,852		1,387,171		1,884,395		548,834		16,067,252

(*) The maturities cannot be presently determined.

Derivative liabilities classified by maturity periods which from reporting date to maturity date of contract as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	(970	)		—			—			—			(970	)
Gross settlement
- Trading		(15,602	)		18,153			30,906			72,718			106,175
- Hedging		(4,128	)		(107,105	)		(185,710	)		(44,464	)		(341,407	)
	W	(20,700	)		(88,952	)		(154,804	)		28,254			(236,202	)

In millions of won	December 31, 2017
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	(774	)		—			—			—			(774	)
Gross settlement
- Trading		(51,496	)		(19,887	)		(16,597	)		(4,967	)		(92,947	)
- Hedging		(17,547	)		(28,977	)		(192,205	)		(44,137	)		(282,866	)
	W	(69,817	)		(48,864	)		(208,802	)		(49,104	)		(376,587	)

146

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk

The fair value of the Company’s actively-traded financial instruments (i.e. short-term financial assets held for trading,available-for-sale financial assets, 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 a financial instruments with similar contractual cash flows based on the effective interest method.

(i) Fair value and book value of financial assets and liabilities as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
Type	Book value		Fair value		Book value		Fair value
Assets recognized at fair value
Available-for-sale financial assets (*1)	W	798,229		798,229		699,833		699,833
Derivative assets (trading)		44,622		44,622		22,020		22,020
Derivative assets (applying hedge accounting)		77,690		77,690		10,606		10,606
Long-term financial instruments		116,267		116,267		542,430		542,430
Short-term financial instruments		2,125,099		2,125,099		1,702,084		1,702,084
Financial assets at fair value through profit or loss		193,169		193,169		111,512		111,512
	W	3,355,076		3,355,076		3,088,485		3,088,485
Assets carried at amortized cost
Held-to-maturity investments	W	3,183		3,183		3,144		3,144
Loans and receivables		697,087		697,087		905,641		905,641
Long-term financial instruments		493,068		493,068		—		—
Short-term financial instruments		2,081,397		2,081,397		—		—
Trade and other receivables		9,060,117		9,060,117		9,683,769		9,683,769
Cash and cash equivalents		2,925,047		2,925,047		2,369,739		2,369,739
	W	15,259,899		15,259,899		12,962,293		12,962,293
Liabilities recognized at fair value
Derivative liabilities (trading)	W	159,689		159,689		150,929		150,929
Derivative liabilities (applying hedge accounting)		235,139		235,139		277,130		277,130
	W	394,828		394,828		428,059		428,059
Liabilities carried at amortized cost
Secured borrowings	W	755,320		755,320		1,055,554		1,055,554
Unsecured bond		57,313,937		59,175,639		51,146,783		53,436,659
Finance lease liabilities		300,688		300,688		418,260		418,260
Unsecured borrowings		3,378,925		3,381,077		2,476,196		2,477,055
Trade and other payables (*2)		8,189,910		8,189,910		8,804,741		8,804,741
Bank overdraft		463		463		68,859		68,859
	W	69,939,243		71,803,097		63,970,393		66,261,128

(*1) Book values of equity securities held by the Company that were measured at cost as of December 31, 2017 areW37,926 million, as a quoted market price does not exist in an active market and its fair value cannot be measured reliably.

(*2) Excludes finance lease liabilities.

147

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. 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 rate used for calculating fair value as of September 30, 2018 and December 31, 2017 are as follows:

Type	September 30, 2018			December 31, 2017
Derivatives		0.01% ~ 4.16	%		0.03% ~ 4.16	%
Borrowings and debt securities		0.51% ~ 4.89	%		0.08% ~ 4.38	%
Finance lease		4.04% ~ 10.83	%		9.00% ~ 10.83	%

(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 September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Available-for-sale financial assets	W	260,133		333,313		204,783		798,229
Derivative assets		—		121,029		1,283		122,312
Financial assets at fair value through profit or loss		—		193,169		—		193,169
	W	260,133		647,511		206,066		1,113,710
Financial liabilities at fair value
Derivative liabilities	W	—		394,828		—		394,828
In millions of won	December 31, 2017
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Available-for-sale financial assets	W	274,453		214,156		173,298		661,907
Derivative assets		—		18,466		14,160		32,626
Financial assets at fair value through profit or loss		—		111,512		—		111,512
	W	274,453		344,134		187,458		806,045
Financial liabilities at fair value
Derivative liabilities	W	—		428,059		—		428,059

The fair value ofavailable-for-sale financial assets publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquotedavailable-for-sale financial assets 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.

148

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the nine-month period ended September 30, 2018 and for the year ended December 31, 2017 are as follows:

In millions of won

September 30, 2018

Beginning balance

Effect of change in accounting policy

Acquisition

Reclassified category

Valuation

Disposal

Foreign currency translation

Ending balance

Financial assets at fair value

Available-for-sale financial assets Unlisted securities

W

173,298

29,191

2,290

—

4

—

—

204,783

In millions of won	December 31, 2017
	Beginning balance		Acquisition		Reclassified category			Valuation			Disposal		Foreign currency translation		Ending balance
Financial assets at fair value
Available-for-sale financial assets Unlisted securities	W	269,461		—		(92,128	)		(6,201	)		—		2,166		173,298

149

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

45. Service Concession Arrangements

(1) Gas Complex • Thermal Power Plant at Ilijan, Philippines (BOT)

(i) Significant terms and concession period of the arrangement

The Company has entered into a contract with National Power Corporation (the “NPC”), based in the Republic of the Philippines whereby the Company can collect the electricity rates which are composed of fixed costs and variable costs during the concession period from 2002 to 2022 after building, rehabilitating, and operating the power plant.

(ii) Rights and classification of the arrangement

The Company has the rights to use and own the power plant during the concession period from 2002 to 2022. At the end of the concession period, the Company has an obligation to transfer its ownership of the power plant to NPC.

(iii) The Company’s expected future collections of service concession arrangements as of September 30, 2018 are as follows:

In millions of won
Type	Amounts
Less than 1 year	W	116,226
1~ 2 years		116,226
2~ 3 years		116,226
Over 3 years		77,484
	W	426,162

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

(i) Significant terms and concession period of the arrangement

The Company has entered into a contract with PT. Perusahaan Listrik Negara (the “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, PNL has an option to take over the ownership of the power plant from the Company.

(iii) The Company’s expected future collections of service concession arrangements as of September 30, 2018 are as follows:

In millions of won
Type	Amounts
Less than 1 year	W	27,832
1~ 2 years		27,786
2~ 3 years		27,721
Over 3 years		599,973
	W	683,312

(iv) Accumulated contract costs and profits related to the Company’s contract in process for the nine-month period ended September 30, 2018 areW153,337 million andW9,650 million, respectively. There are no amount due from customers and advance receipts in progress.

150

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties

(1) Related parties of the Company as of September 30, 2018 are as follows:

Type	Related party
Parent	Republic of Korea government
Subsidiaries (102 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., Garolim Tidal Power Plant 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., KOREA Imouraren Uranium Investment Corp., KEPCO Middle East Holding Company, Qatrana Electric Power Company, Korea Electric Power Nigeria Ltd., 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, KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, PT KEPCO Resource Indonesia, EWP (Barbados) 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc, KOSEP USA, INC., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, EWP Philippines Corporation, KEPCO Singapore Holdings Pte., Ltd., KOWEPO India Private 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, DG Fairhaven Power, LLC, DG Whitefield, LLC, EWP Renewable Corporation, EWPRC Biomass Holdings, LLC, Springfield Power, LLC, HeeMang Sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., HI Carbon Professional Private Special Asset Investment Trust 1, Chitose Solar Power Plant LLC., Solar School Plant Co., Ltd., KEPCO Energy Solution Co. Ltd., KOSPO Power Services Limitada, 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 Alamosa LLC, KEPCO Solar of Alamosa, LLC (formerly, Cogentrix of Alamosa, LLC),KEPCO-LG CNS Mangilao Holdings LLC, Mangilao Investment LLC,KEPCO-LG CNS Mangilao Solar, LLC Jeju Hanlim Offshore Wind Co., Ltd., PT, Siborpa Eco Power,e-New Industry LB Fund 1, Songhyune-New Industry Fund, BSKE-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd.

151

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(1) Related parties of the Company as of September 30, 2018 are as follows, continued:

Type	Related party
Associates (57 associates)	Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, SE Green Energy Co., Ltd., Daegu Photovoltaic Co., Ltd., Jeongam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Heang Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Energy Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Naepo Green Energy Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Cheongna Energy 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, AMEC Partners Korea Ltd., Hyundai Energy Co., Ltd., Ecollite Co., Ltd., Taebaek Wind Power Co., Ltd., Taeback Guinemi Wind Power Co., Ltd., Pyeongchang Wind Power Co., Ltd., Daeryun Power Co., Ltd., Changjuk Wind Power Co., Ltd., KNH Solar Co., Ltd.,S-Power Co., Ltd., Hadong Mineral Fiber Co., Ltd., Green Biomass 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-PianXe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Ulleungdo Natural Energy Co., Ltd., Korea Nuclear Partners Co., Ltd., Tamra Offshore Wind Power Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., YaksuESS Co., Ltd, PND solar., Ltd, Hyundai Eco Energy Co., Ltd.
Joint ventures (51 joint ventures)	Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, Daejung Offshore Wind Power Co., Ltd., KAPES, Inc., Dangjin Eco Power Co., Ltd., Honam Wind Power 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., GS Donghae Electric Power Co., Ltd., 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, Eco Biomass Energy Sdn. Bhd., 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
Others (1 others)	Korea Development Bank

(2) Transactions between the Company and its subsidiaries are eliminated during the consolidation and are not disclosed in notes.

152

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the nine-month periods ended September 30, 2018 and 2017 are as follows:

<Sales and Others>

In millions of won			Sales and others
Company name	Transaction type		September 30, 2018		September 30, 2017
<Associates>
Dongducheon Dream Power Co., Ltd.		Electricity sales	W	4,417		11,706
Korea Gas Corporation		Electricity sales		70,125		64,183
Daegu Photovoltaic Co., Ltd.		Electricity sales		128		349
Jeongam Wind Power Co., Ltd.		Electricity sales		324		18
Korea Power Engineering Service Co., Ltd.		Service		550		191
KS Solar Co., Ltd.		Electricity sales		—		5
Heang Bok Do Si Photovoltaic Power Co., Ltd.		Electricity sales		1		1
Korea Electric Power Industrial Development Co., Ltd.		Service		8,665		9,286
Goseong Green Energy Co., Ltd.		Electricity sales		7,970		21,479
Gangneung Eco Power Co., Ltd.		Service		4,107		1,304
Shin Pyeongtaek Power Co., Ltd.		Electricity sales		5,732		7,387
Naepo Green Energy Co., Ltd.		Electricity sales		120		127
Noeul Green Energy Co., Ltd.		Electricity sales		23		24
Samcheok Eco Materials Co., Ltd.		Electricity sales		384		174
YTN Co., Ltd.		Electricity sales		1,596		1,541
Busan Green Energy Co., Ltd.		Electricity sales		15		96
Gunsan Bio Energy Co., Ltd.		Electricity sales		2,775		—
Korea Electric Vehicle Charging Service		Electricity sales		196		363
Ulleungdo Natural Energy Co., Ltd.		Service		279		448
Tamra Offshore Wind Power Co., Ltd.		Electricity sales		45		41
Daegu clean Energy Co., Ltd.		Electricity sales		126		—
Cheongna Energy Co., Ltd.		Service		8,242		5,515
Gangwon Wind Power Co., Ltd.		Electricity sales		2,368		965
Gwangyang Green Energy Co., Ltd.		Electricity sales		1		—
Hyundai Green Power Co., Ltd.		Design service		12,873		12,465
Korea Power Exchange		Service		4,918		5,037
Hyundai Energy Co., Ltd.		Service		1,238		15,215
Taebaek Wind Power Co., Ltd.		Service		608		602
Pyeongchang Wind Power Co., Ltd.		Design service		877		885
Daeryun Power Co., Ltd.		Electricity sales		1,291		1,323
Changjuk Wind Power Co., Ltd.		Electricity sales		755		611
KNH Solar Co., Ltd.		Electricity sales		12		12
S-Power Co., Ltd.		Service		7,077		4,984
PND solar., Ltd		Service		4		—
SPC Power Corporation		Dividend income		4,727		5,562
Gemeng International Energy Co., Ltd.		Dividend income		11,246		13,458
PT. Cirebon Electric Power		Dividend income		4,394		564
PT. Bayan Resources TBK		Service		33,817		308
Nepal Water & Energy Development Company Private Limited		Service		398		107
Xe-PianXe-Namnoy Power Co., Ltd.		Service		438		556
PT. Mutiara Jawa		Service		30		—

153

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the nine-month periods ended September 30, 2018 and 2017 are as follows, continued:

In millions of won			Sales and others
Company name	Transaction type		September 30, 2018		September 30, 2017
<Joint ventures>
Daegu Green Power Co., Ltd.		Electricity sales	W	775		710
KEPCO SPC Power Corporation		Service		34,718		23,587
Daejung Offshore Wind Power Co., Ltd.		Electricity sales		1		1
KAPES, Inc.		Commission		500		593
Dangjin Eco Power Co., Ltd.		Technical fee		619		562
Honam Wind Power Co., Ltd.		Electricity sales		397		536
Seokmun Energy Co., Ltd.		Service		734		1,359
Incheon New Power Co., Ltd.		Construction revenue		437		409
Chun-cheon Energy Co., Ltd.		Electricity sales		989		4,157
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity sales		1,109		1,240
KW Nuclear Components Co., Ltd.		Service		532		621
KEPCO-Uhde Inc.		Service		14		15
GS Donghae Electric Power Co., Ltd.		Electricity sales		5,870		7,413
Busan Shinho Solar Power Co., Ltd.		Electricity sales		356		81
Expressway Solar-light Power Generation Co., Ltd.		Electricity sales		—		70
Datang Chifeng Renewable Power Co., Ltd.		Interest income		153		416
Rabigh Electricity Company		Service		16,250		9,039
Rabigh Operation & Maintenance Company Limited		Service		1,235		2,628
Shuweihat Asia Power Investment B.V.		Dividend income		55		1,337
Shuweihat Asia Operation & Maintenance Company		Service		582		592
ASM-BG Investicii AD		Service		1,108		938
KV Holdings, Inc.		Dividend income		735		—
Amman Asia Electric Power Company		Service		12,399		9,725
Kelar S.A		Service		—		454
Nghi Son 2 Power LLC		Service		25,347		—
Barakah One Company		Service		5,779		3,527
Nawah Energy Company		Service		33,941		—
<Others>
Yeongwol Energy Station Co., Ltd.		Service		373		621
DS POWER Co., Ltd.		Service		565		5,027
Korea Development Bank		Electricity sales		2,614		2,494
		Interest income		3,695		1,035

154

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the nine-month periods ended September 30, 2018 and 2017 are as follows, continued:

<Purchase and Others>

In millions of won Company name			Purchase and others
	Transaction type		September 30, 2018		September 30, 2017
<Associates>
Dongducheon Dream Power Co., Ltd.		Electricity purchase	W	612,641		620,511
Korea Gas Corporation		Purchase of power generation fuel		3,862,981		2,276,714
Daegu Photovoltaic Co., Ltd.		REC purchase		2,850		2,815
Korea Power Engineering Service Co., Ltd.		Services		1,215		775
KS Solar Co., Ltd.		REC purchase		—		900
Heang Bok Do Si Photovoltaic Power Co., Ltd.		Rental fee and others		342		343
Korea Electric Power Industrial Development Co., Ltd.		Electricity metering service fee		193,921		180,126
Gangneung Eco Power Co., Ltd.		Services		19		—
Noeul Green Energy Co., Ltd.		Services		14,879		9,901
Samcheok Eco Materials Co., Ltd.		Electricity purchase		1,311		3
YTN Co., Ltd.		Advertisement fee		157		236
Busan Green Energy Co., Ltd.		Services		19,141		5,238
Korea Electric Vehicle Charging Service		Services		600		22
Ulleungdo Natural Energy Co., Ltd.		Electricity purchase		53		52
Tamra Offshore Wind Power Co., Ltd.		Electricity purchase		7,479		—
Cheongna Energy Co., Ltd.		Services		58		58
Gangwon Wind Power Co., Ltd.		Electricity purchase		19,199		17,293
Hyundai Green Power Co., Ltd.		Electricity purchase		361,019		348,381
Korea Power Exchange		Trading fees		101,562		129,370
Hyundai Energy Co., Ltd.		Electricity purchase		2,229		8,872
Taebaek Wind Power Co., Ltd.		REC purchase		6,568		4,962
Pyeongchang Wind Power Co., Ltd.		Services		5,990		3,443
Daeryun Power Co., Ltd.		Electricity purchase		127,596		116,796
Changjuk Wind Power Co., Ltd.		Electricity purchase		5,946		4,855
KNH Solar Co., Ltd.		Electricity purchase		2,672		2,896
S-Power Co., Ltd.		Electricity purchase		343,405		343,354
Green Biomass Co., Ltd.		Woodchip purchase		440		1,184
<Joint ventures>
Daegu Green Power Co., Ltd.		Electricity purchase		192,827		184,083
KAPES, Inc.		Service		68,766		69,584
Dangjin Eco Power Co., Ltd.		Service		23,614		—
Honam Wind Power Co., Ltd.		Electricity purchase		5,514		3,960
Seokmun Energy Co., Ltd.		REC purchase		—		16,551
Chun-cheon Energy Co., Ltd.		REC purchase		248,606		115,910
Yeonggwangbaeksu Wind Power Co., Ltd.		Electricity purchase		8,333		7,712
GS Donghae Electric Power Co., Ltd.		Electricity purchase		590,921		210,176
Busan Shinho Solar Power Co., Ltd.		REC purchase		6,116		6,058
Global Trade Of Power System Co., Ltd.		Service		381		350
Expressway Solar-light Power Generation Co., Ltd.		Electricity purchase		2,522		2,203
Jamaica Public Service Company Limited		Service		164		154
Barakah One Company		Service		798		—
<Others>
Yeongwol Energy Station Co., Ltd.		REC purchase		4,019		12,192
Korea Development Bank		Interest expense		3,971		3,595
		Dividends paid		166,876		418,336

155

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won		Receivables				Payables
Company name	Type	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
<Associates>
Dongducheon Dream Power Co., Ltd.	Trade receivables	W	283		2,230		—		—
	Non-trade receivables and others		153		655		—		—
	Trade payables		—		—		51,194		77,817
Korea Gas Corporation	Trade receivables		5,388		9,833		—		—
	Non-trade receivables and others		351		339		—		—
	Trade payables		—		—		306,035		524,881
	Non-trade payables and others		—		—		722		569
Daegu Photovoltaic Co., Ltd.	Trade payables		—		—		70		71
Jeongam Wind Power Co., Ltd.	Non-trade payables and others		—		—		4		4
Korea Power Engineering Service Co., Ltd.	Non-trade payables and others		—		—		43		—
Korea Electric Power Industrial Development Co., Ltd.	Trade receivables		39		333		—		—
	Non-trade receivables and others		42		42		—		—
	Trade payables		—		—		4,444		—
	Non-trade payables and others		—		—		6,774		18,006
Goseong Green Energy Co., Ltd.	Non-trade receivables and others		—		19		—		—
	Non-trade payables and others		—		—		—		7,140
Gangneung Eco Power Co., Ltd.	Trade receivables		1		1		—		—
	Non-trade receivables and others		142		4,747		—		—
	Non-trade payables and others		—		—		49		—
Shin Pyeongtaek Power Co., Ltd.	Non-trade receivables and others		2		210		—		—
	Non-trade payables and others		—		—		64		52
Naepo Green Energy Co., Ltd.	Trade receivables		6		17		—		—
Noeul Green Energy Co., Ltd.	Trade receivables		3		3		—		—
	Non-trade payables and others		—		—		7,173		2,041
Samcheok Eco Materials Co., Ltd.	Trade receivables		47		20		—		—
YTN Co., Ltd.	Trade receivables		146		98		—		—
	Non-trade payables and others		—		—		22		209
Busan Green Energy Co., Ltd.	Trade receivables		1		7		—		—
	Non-trade receivables and others		—		1,691		8,304		—
Korea Electric Vehicle Charging Service	Trade receivables		57		23		—		—
	Non-trade receivables and others		194		—		—		—
	Trade payables		—		—		—		45
Daegu Clean Energy Co., Ltd.	Non-trade receivables and others		60		—		—		—
Cheongna Energy Co., Ltd.	Trade receivables		128		182		—		—
	Non-trade payables and others		—		—		225		1
Gangwon Wind Power Co., Ltd.	Trade receivables		13		6		—		—
	Trade payables		—		—		1,186		3,033
Hyundai Green Power Co., Ltd.	Trade receivables		358		946		—		—
	Trade payables		—		—		36,653		32,589
Korea Power Exchange	Trade receivables		815		463		—		—
	Non-trade receivables and others		99		128		—		—
	Non-trade payables and others		—		—		10,316		1,142
Hyundai Energy Co., Ltd.	Trade receivables		70		49		—		—
	Non-trade receivables and others		112,250		6,598		—		—
	Trade payables		—		—		141		223
	Non-trade payables and others		—		—		14,775		13,796

156

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won		Receivables				Payables
Company name	Type	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
<Associates>
Ecollite Co., Ltd.	Non-trade receivables and others	W	210		210		—		—
Taebaek Wind Power Co., Ltd.	Trade receivables		—		116		—		—
	Trade payables		—		—		183		533
	Non-trade payables and others		—		—		1,291		121
Pyeongchang Wind Power Co., Ltd.	Trade receivables		4		3		—		—
	Non-trade payables and others		—		—		—		163
Daeryun Power Co., Ltd.	Trade receivables		144		162		—		—
	Trade payables		—		—		7,171		15,706
Changjuk Wind Power Co., Ltd.	Trade receivables		—		101		—		—
	Trade payables		—		—		135		515
	Non-trade payables and others		—		—		1,279		546
KNH Solar Co., Ltd.	Trade receivables		1		1		—		—
	Trade payables		—		—		8		—
	Non-trade payables and others		—		—		—		193
S-Power Co., Ltd.	Trade receivables		1,407		117		—		—
	Non-trade receivables and others		430		5,183		—		—
	Trade payables		—		—		21,899		25,061
Green Biomass Co., Ltd.	Non-trade payables and others		—		—		78		85
PND solar., Ltd	Trade receivables		4		—		—		—
SPC Power Corporation	Non-trade receivables and others		10		76		—		—
Nepal Water & Energy Development Company Private Limited	Non-trade receivables and others		560		227		—		—
Xe-PianXe-Namnoy Power Co., Ltd.	Non-trade receivables and others		—		53		—		—
PT. Mutiara Jawa	Non-trade receivables and others		10		—		—		—
<Joint ventures>
Daegu Green Power Co., Ltd.	Trade receivables		136		98		—		—
	Non-trade receivables and others		13		10		—		—
	Trade payables		—		—		1,351		25,257
KAPES, Inc.	Non-trade receivables and others		204		—		—		—
	Trade payables		—		—		—		55
	Non-trade payables and others		—		—		11,116		—
Dangjin Eco Power Co., Ltd.	Non-trade receivables and others		206		1,211		—		—
	Non-trade payables and others		—		—		—		41
Honam Wind Power Co., Ltd.	Trade payables		—		—		159		381
	Non-trade payables and others		—		—		2,432		3,013
Seokmun Energy Co., Ltd.	Trade receivables		65		93		—		—
	Non-trade receivables and others		275		276		—		—
	Non-trade payables and others		—		—		8,964		3,052
Incheon New Power Co., Ltd.	Trade receivables		128		128		—		—
Chun-cheon Energy Co., Ltd.	Trade receivables		45		129		—		—
	Non-trade receivables and others		188		252		—		—
	Trade payables		—		—		20,647		29,676

157

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won		Receivables				Payables
Company name	Type	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
<Joint ventures>
Yeonggwangbaeksu Wind Power Co., Ltd.	Trade receivables	W	7		7		—		—
	Non-trade receivables and others		145		144		—		—
	Trade payables		—		—		283		619
	Non-trade payables and others		—		—		687		1,300
KW Nuclear Components Co., Ltd.	Trade receivables		3		4		—		—
	Non-trade receivables and others		29		—		—		—
KEPCO-Uhde Inc.	Non-trade payables and others		—		—		6		4
GS Donghae Electric Power Co., Ltd.	Trade receivables		71		450		—		—
	Non-trade receivables and others		1,953		1,892		—		—
	Trade payables		—		—		69,326		73,570
	Non-trade payables and others		—		—		65		—
Busan Shinho Solar Power Co., Ltd.	Trade receivables		2		2		—		—
	Trade payables		—		—		157		159
	Non-trade payables and others		—		—		837		811
Datang Chifeng Renewable Power Co., Ltd.	Non-trade receivables and others		—		82		—		—
Rabigh Operation & Maintenance Company Limited	Non-trade receivables and others		—		869		—		—
ASM-BG Investicii AD	Non-trade receivables and others		72		37		—		—
Jamaica Public Service Company Limited	Non-trade payables and others		—		—		19		—
Amman Asia Electric Power Company	Trade receivables		2,774		2,675		—		—
Nawah Energy Company	Trade receivables		35,021		10,419		—		—
<Others>
Yeongwol Energy Station Co., Ltd.	Trade receivables		—		7,068		—		—
DS POWER Co., Ltd.	Trade receivables		—		340		—		—
Korea Development Bank	Accrued interest income		1,283		204		—		—
	Non-trade receivables and others		306,507		501,029		—		—
	Non-trade payables and others		—		—		195		200
	Derivatives		21,471		569		15,168		22,398

158

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(5) Loans and others arising from related party transactions as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won
Type	Company name	Beginning balance			Loans		Collection			Others			Ending balance
Associates	KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd.	W	26,341			191		—			940			27,472
	(Allowance for doubtful accounts)		(16,551	)		—		4,207			6,479			(5,865	)
Associates	PT. Cirebon Electric Power		15,436			1,032		(8,522	)		472			8,418
Associates	Xe-PianXe-Namnoy Power Co., Ltd.		1,413			—		—			—			1,413
Associates	PT Wampu Electric Power		13,288			720		—			552			14,560
Associates	Gunsan Bio Energy Co., Ltd.		9,396			—		—			—			9,396
Associates	Hyundai Energy Co., Ltd.		2,465			—		—			—			2,465
	(Allowance for doubtful accounts)		(2,465	)		—		—			—			(2,465	)
Joint ventures	KEPCO SPC Power Corporation		17,249			—		(17,563	)		314			—
Joint ventures	Datang Chifeng Renewable Power Co., Ltd.		7,245			—		(7,376	)		131			—
Joint ventures	Nghi Son 2 Power LLC		—			4,527		(4,527	)		—			—
Joint ventures	KODE NOVUS II LLC (*)		4,018			—		—			(4,018	)		—
	(Allowance for doubtful accounts) (*)		(4,018	)		—		—			4,018			—
Joint ventures	Kelar S.A		46,620			—		—			1,839			48,459
Joint ventures	Daehan Wind Power PSC		1,211			—		(606	)		(605	)		—
Joint ventures	Chester Solar IV SpA		4,607					(4,607	)		—			—
		W	126,255			6,470		(38,994	)		10,122			103,853

(*) The loans of KODE NOVUS II LLC is eliminated because the Company sold all of its shares of KODE NOVUS II LLC during the nine-month period ended September 30, 2018 as described in Note 17.

(6) Borrowings arising from related party transactions as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won
Related parties	Type	Beginning balance		Borrowings		Repayment			Others		Ending balance
Korea Development	Facility	W	93,883		1,200		(27,043	)		—		68,040
Bank	Others		4,909		—		(392	)		—		4,517
	Operating funds		61,000		32,000		(12,000	)		—		81,000
	Syndicated Loan		16,301		—		(124	)		554		16,731

(7) Guarantees provided to associates or joint ventures as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea Electric Power Corporation	Shuweihat Asia Operation & Maintenance Company	Performance guarantees	USD 11,000	SAPCO
Korea Electric Power Corporation	KNOC Nigerian East Oil Co., Ltd. and KNOC Nigerian West Oil Co., Ltd.	Performance guarantees	USD 34,650	Korea National Oil Corporation (Nigerian government)
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	USD 1,387	RABEC
Korea Electric Power Corporation	Barakah One Company	Debt guarantees	USD 900,000	Export-Import Bank of Korea and others
		Performance guarantees and others	USD 3,404,275	Export-Import Bank of Korea and others
Korea Electric Power Corporation	RE Holiday Holdings LLC	Performance guarantees	USD 223,000	EPS Renewables Holdings, LLC, Santander Bank and others
Korea Electric Power Corporation	RE Pioneer Holdings LLC	Performance guarantees	USD 170,000	EPS Renewables Holdings, LLC, Santander Bank and others

159

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of September 30, 2018 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea Electric Power Corporation	RE Barren Ridge 1 Holdings LLC	Performance guarantees	USD 149,000	Firstar Development, LLC, Santander Bank and others
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees	USD 28,000	SMBC Ho Chi Minh
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested	KRW 27,211	KEB Hana Bank and others
		Guarantees for supplemental funding and others (*1)	—	KEB Hana Bank and others
Korea Western Power Co., Ltd.	Xe-PianXe-Namnoy Power Co., Ltd.	Payment guarantees for business reserve	USD 2,500	Krung Thai Bank
		Collateralized money invested	USD 72,287	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 5,600	Saudi Arabia British Bank
Korea Western Power Co., Ltd.	Daegu Photovoltaic Co., Ltd.	Collateralized money invested	KRW 1,230	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested Debt guarantees	KRW 53,233 KRW 20,300	Kookmin Bank and others BNK Securities and others
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested	USD 2,610	Woori Bank
Korea Western Power Co., Ltd.	Heang Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested	KRW 194	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested	KRW 72,000	Kookmin Bank and others
		Guarantees for supplemental funding (*1)	—	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested	KRW 2,100	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested	KRW 15,370	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested	KRW 52,700	Kookmin Bank and others
		Guarantees for supplemental funding (*1)	KRW 60,270	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Honam Wind Power Co., Ltd.	Collateralized money invested	KRW 3,480	Shinhan Bank and others
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested	KRW 204,000	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested	KRW 3,000	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested	KRW 15,375	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Debt guarantees	USD 46,983	MUFG Bank, Ltd.(MUFG) (formerly, the Bank of Tokyo Mitsubishi UFJ, Ltd.(BTMU)) and others
		Other guarantees	USD 3,150	PT Adaro Indonesia
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees	USD 14,400	Societe Generale
EWP Barbados 1 SRL		Guarantees for supplemental funding and others (*1, 3)	USD 21,650	JCSD Trustee Services Limited and others
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested	KRW 1,296	Shinhan Bank and Kyobo Life Insurance Co., Ltd.
		Performance guarantees and guarantees for supplemental funding and others (*1)	—

160

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of September 30, 2018 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested	KRW 25,477	Korea Development Bank and others Korea Development Bank and others
		Guarantees for supplemental funding and others (*1)	—
Korea Southern Power Co., Ltd.	Changjuk Wind Power Co., Ltd.	Collateralized money invested	KRW 3,801	Shinhan Bank
		Guarantees for supplemental funding (*1)	—	Shinhan Bank
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested	KRW 46,226	Shinhan Bank
Korea Southern Power Co., Ltd.	Kelar S.A	Performance guarantees	USD 63,707	KEB Hana Bank, SMBC, Mizuho Bank, MUFG, Natixis
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Debt guarantees	USD 18,200	Shinhan Bank Shinhan Bank Shinhan Bank
		Performance guarantees	USD 3,000
		Guarantees for supplemental funding and others (*1)	—
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested Performance guarantees	KRW 3,875 —	Woori Bank and Shinhan Bank Woori Bank and Shinhan Bank
Korea Southern Power Co., Ltd.	Taebaek Wind Power Co., Ltd.	Guarantees for supplemental funding and others (*1)	—	Shinhan Bank and others
Korea Southern Power Co., Ltd.	Jeongam Wind Power Co., Ltd.	Collateralized money invested	KRW 5,580	IBK IBK
		Guarantees for supplemental funding and others (*1)	—
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested	KRW 87,003	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees	USD 11,825	Mizuho Bank
Korea Midland Power Co., Ltd.	PT Wampu Electric Power	Debt guarantees	USD 5,068	SMBC
Korea Midland Power Co., Ltd.	YaksuESS Co., Ltd	Collateralized money invested	KRW 210	Hanwha Life Insurance Co., Ltd. Hanwha Life Insurance Co., Ltd.
		Guarantees for supplemental funding and others (*1)	—
Korea South-East Power Co., Ltd.	Hyundai Energy Co., Ltd.	Collateralized money invested	KRW 47,067	Korea Development Bank and others Korea Development Bank and others
		Performance guarantees and guarantees for supplemental funding and others (*1)	KRW 78,600
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested	KRW 15,595	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested	KRW 16,101	UniCredit Bulbank and others

161

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of September 30, 2018 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Guarantees for supplemental funding (*1, 2)	KRW 2,500	Woori Bank
Korea South-East Power Co., Ltd.	S-Power Co., Ltd.	Collateralized money invested	KRW 132,300	Korea Development Bank and others
Korea South-East Power Co., Ltd.	Goseong Green Energy Co., Ltd.	Collateralized money invested	KRW 2,900	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested	KRW 2,900	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND solar., Ltd.	Collateralized money invested	KRW 1,250	IBK and others
Korea South-East Power Co., Ltd.	Tamra Offshore Wind Power Co., Ltd.	Collateralized money invested	KRW 8,910	Nonghyup Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested	KRW 3,610	Samsung Life Insurance and others
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested	KRW 1,740	KEB Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested	KRW 5,243	Shinhan Bank and others
KEPCO Plant Service & Engineering Co., Ltd.	Incheon New Power Co., Ltd.	Collateralized money invested	KRW 8,160	Shinhan Bank
		Guarantees for supplemental funding and others (*1)	—	Shinhan Bank

(*1) The Company guarantees to provide supplemental funding for business with respect to excessive business expenses or insufficient repayment of borrowings.

(*2) The Company has granted the right to Hana Financial Investment Co., Ltd., as an agent for the creditors to Expressway Solar-light Power Generation Co., Ltd. (“ESPG”), to the effect that in the event of acceleration of ESPG’s payment obligations under certain borrowings to such creditors, Hana Financial may demand the Company to dispose of shares in ESPG held by the Company and apply the resulting proceeds to repayment of ESPG’s obligations.

(*3) This includes a guarantee for the shareholder’s capital payment in connection with the business of 190MW gas complex thermal power plant in Jamaica. EWP Barbados 1 SRL’s capital contribution amount is USD 12,660 thousand and the total amount of guarantees is USD 9,742.5 thousand which consists of USD 4,330 thousand of EWP (Barbados) 1 SRL’s contribution obligation and USD 5,412.5 thousand of South Jamaica Energy Holding Limited’s portion (50%) of contribution obligation.

162

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

46. Related Parties, Continued

(8) As of September 30, 2018, there is no financial guarantee contract provided by related parties.

(9) Derivatives transactions with related parties as of September 30, 2018 are as follows:

(i) Currency Swap

In millions of won and thousands of foreign currencies

Counterparty	Contract year		Contract Amount				Contract interest rate per annum						Contract exchange rate
			Pay		Receive		Pay (%)			Receive (%)
Korea Development Bank		2016~2019	W	105,260		USD 100,000		2.48	%		2.38	%	W	1,052.60
		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
		2017~2020		114,580		USD 100,000		1.75	%		2.38	%		1,145.80
		2016~2021		121,000		USD 100,000		2.15	%		2.50	%		1,210.00
		2018~2023		320,880		USD 300,000		2.03	%		3.75	%		1,069.60
		2018~2021		212,960		USD 200,000		2.10	%		3.00	%		1,064.80
		2017~2022		113,300		USD 100,000		1.94	%		2.63	%		1,133.00
		2018~2023		169,335		USD 150,000		2.26	%		3.88	%		1,128.90

(ii) Currency forward

In millions of won and thousands of foreign currencies

Counterparty	Contract date		Maturity date		Contract amounts				Contract
					Pay		Receive		exchange rate
Korea Development Bank		2017.12.27		2021.07.12	W	104,849		USD 100,000	W	1,048.49
		2018.09.06		2018.10.12		8,965		USD 8,000		1,120.60
		2018.09.19		2018.10.05		13,474		USD 12,000		1,122.80
		2018.09.20		2018.10.11		11,196		USD 10,000		1,119.60
		2018.09.27		2018.10.15		11,125		USD 10,000		1,112.45

(10) Salaries and other compensations to the key members of management of the Company for the three and nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won	September 30, 2018				September 30, 2017
Type	Three-month period ended		Nine-month period ended		Three-month period ended		Nine-month period ended
Salaries	W	191		888		213		1,086
Employee benefits		3		21		16		41
	W	194		909		229		1,127

47. Non-Cash Transactions

Significantnon-cash investing and financing transactions for the nine-month periods ended September 30, 2018 and 2017 are as follows:

In millions of won
Transactions	September 30, 2018		September 30, 2017
Transfer fromconstruction-in-progress to other assets	W	5,435,126		9,312,866
Recognition of asset retirement cost and related provision for decommissioning costs		240,500		112,894
Transfer from provision for disposal of spent nuclear fuel to accrued expenses		355,310		291,659
Recognition of litigation provisions as addition to property, plant and equipment		185,530		—

163

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
Contracts	Amounts		Balance		Amounts		Balance
Purchase of switch (25.8kV Eco) 12,450	W	50,526		—		50,526		35,494
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)		50,256		34,790		50,256		42,857
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shintangjung)		42,500		29,987		42,500		29,987
Purchase of GIS (362KV 6300A 63KA) 23CB – YoungseoS/S		34,500		34,500		34,500		34,500
Purchase of GIS (362KV 6300A 63KA) 26CB – HwasungS/S		40,000		29,051		40,000		29,231
Purchase of GIS (362KV 6300A 63KA) 27CB – KwangyangS/S		37,476		10,248		37,476		18,044
Purchase of GIS (800KV 8000A 50KA) 10CB – Shin-JungbuS/S		63,730		1,147		63,730		44,955
Purchase of transformer (765/345/23kV 666.7MVA, 2TANK) 6 units – Shin-JungbuS/S		37,500		—		37,500		37,500
Purchase of cable (TRCNCE-W/AL,1C, 400SQ) 4,645,000M		78,076		—		78,076		76,762
Purchase of Concrete Poles (10M, 350KGF) 121,900 and 6 others		133,387		—		133,387		112,981
AdvancedE-Type low voltage electricity meter 1,600,000 units		65,408		14,098		65,408		64,592
Purchase of Ground Switch(44-D-A125, 600AX4) and 1 other 4,016 units		56,482		25,336		56,482		55,990
Purchase of cable (TRCNCE-W/AL, 1C, 400SQ) 3,504,000M		68,496		57,710		—		—
Purchase of cable (FRCNCO-W, 1C, 325SQ) 1,400,000		59,914		54,846		—		—
Purchase of switch (Eco) 9,360 units		40,631		37,553		—		—
Construction of Shin-Kori units (#3,4)		7,363,514		34,871		7,363,514		93,637
Construction of Shin-Kori units (#5,6)		8,625,387		6,174,059		8,625,387		6,757,146
Construction of Shin-Hanwool units (#1,2)		7,982,342		554,776		7,982,342		1,015,813
Construction of Shin-Hanwool units (#3,4) (*)		—		—		8,261,818		8,097,056
Other 31 contracts		210,538		80,205		262,400		114,041
Purchase of main machine for construction of Seoul Combined units (#1,2)		361,203		51,165		361,203		99,031
Construction of Seoul Combined units (#1,2)		246,525		10,881		227,685		60,568
Purchase of smoke eliminating machine for construction of Shin-Boryeong units (#1,2)		172,609		27,369		169,544		36,417
Service of designing Shin-Boryeong units (#1,2)		120,199		1,563		127,810		16,371
Purchase of main machine for construction of Shin-Boryeong units (#1,2)		866,065		4,981		866,065		4,981
Construction of Shin-Boryeong units (#1,2)		309,466		—		316,190		23,100
Purchase of furnace for construction of Shin-Seocheon thermal power plant		305,031		103,885		302,030		222,555
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant		104,402		74,304		104,402		83,522
Electricity construction of Shin-Seocheon thermal power plant		217,848		192,811		200,453		196,993
Purchase of main machine for Jeju LNG combined		166,287		11,272		166,287		15,409
Purchase of coal handling machine for construction of Taean (#9,10) and IGCC units (conditional contract for installation)		214,265		—		193,375		5,129

164

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Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

48. Commitments for Expenditure, Continued

(1) The commitments for acquisition of property, plant and equipment as of September 30, 2018 and December 31, 2017 are as follows, continued:

In millions of won	September 30, 2018				December 31, 2017
Contracts	Amounts		Balance		Amounts		Balance
Purchase of furnace for construction of Taean units (#9,10)	W	555,294		8,275		566,945		33,817
Service of designing Taean units (#9,10)		112,344		13,338		111,322		13,671
Purchase of turbine generator for construction of Taean units (#9,10)		213,431		534		205,267		550
Purchase of oxygen plant for construction of Taean IGCC units		95,894		205		94,564		199
Service of designing Taean IGCC plant units		45,154		2,793		44,802		2,669
Purchase of furnace for construction of Samcheok units (#1,2)		1,092,287		1,080,124		1,082,641		5,963
Purchase of coal handling machine for construction of Samcheok units (#1,2)		307,925		49,727		304,924		52,362
Service of designing Samcheok units (#1,2)		103,679		488		114,047		4,745
Purchase of turbine main equipment for Samcheok units (#1,2)		213,816		450		215,333		874
Purchase of main equipment and other		182,386		—		168,076		—
Landscaping construction and other		53,263		—		63,110		—

(*) The Company recognized impairment loss in relation to Shin-Hanwool unit 3 and 4, and there are no legally binding commitments for expenditure as of September 30, 2018.

(2) As of September 30, 2018, 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	2018 ~ 2030	43,662 Ton U3O8
Transformed	2018 ~ 2030	23,234 Ton U
Enrichment	2018 ~ 2030	25,530 Ton SWU
Molded	2018 ~ 2022	3,119 Ton U

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations related with contingent liabilities and contingent assets as of September 30, 2018 and December 31, 2017 are as follows:

In millions of won	September 30, 2018				December 31, 2017
	Number of cases		Claim amount		Number of cases		Claim amount
As the defendant		585	W	573,487		565	W	477,719
As the plaintiff		180		736,385		185		690,934

As of September 30, 2018, among the litigations mentioned above, there are ongoing litigations of KHNP, a subsidiary of KEPCO, against KEPCO Engineering & Construction Company, Inc., a subsidiary of KEPCO, as aco-defendant (one case amounting toW62,744 million).

A group of plaintiffs (consisting 2,167 individuals) filed a lawsuit against NSSC regarding NSSC’s approval on May 18, 2015 of extending the operation of Wolsong unit 1 nuclear power plant. The appeal was ongoing as of September 30, 2018. In addition, on September 12, 2016, Greenpeace and others filed an administrative litigation against NSSC requesting cancelation of the construction permit of Shin-Kori unit 5 and 6 and it was also ongoing as of September 30, 2018. The Company joined these litigations as a stakeholder with the permission of the Court.

The Company suspended the construction of Shin-Kori unit 5 and 6 starting from July 24, 2017 to October 24, 2017. The Company believed that the possibility of economic outflow was probable and recognized provisions during the year ended December 31, 2017 as described in note 26.(2). During the nine-month period ended September 30, 2018, the Company has paid in full.

As described in note 2.(4), the board of directors of KHNP, a subsidiary of KEPCO, has decided to shut down the Wolsong unit 1. Accordingly, the Company recognized impairment loss ofW565,181 million, which is after deducting the recoverable amount from the book value of property, plant and equipment of the Wolsong unit 1 amounting toW565,182 million. Also, the provision for decommissioning costs of the Wolsong unit 1 has increased byW28,196 million as the timing of actual cash outflows was accelerated due to the shortened operating period.

As of September 30, 2018, the Company may be obligated to pay for the preliminary work of the main equipment manufacturer or may incur compensation obligations as a result of a lawsuit that may be filed by the main equipment manufacturer in relation to Shin-Hanwool unit 3 and 4. However, the Company believes that it will not be liable for damages to the main equipment manufacturer and that it is probable to win if a lawsuit is filed against the Company.

The long-term service contract between Gyeonggi Green Energy Co., Ltd. and its fuel cell supplier expired during the nine-month period ended September 30, 2018. For this reason, the creditors has requested a renewal of the contract, and it is in process of negotiating with the fuel cell supplier. Depending on the result of this negotiation, the schedule of repayment of borrowings of Gyeonggi Green Energy Co., Ltd. may be adjusted accordingly.

The Company is the defendant against a number of claims. The followings are potentially significant ongoing claims pertaining to the Company.

① Hyundai Engineering & Construction Co., Ltd.(“Hyundai E&C”), SK Engineering & Construction Co., Ltd. and GS Engineering & Construction Co., Ltd. filed a lawsuit for increase in contract bill (formerly, amounted toW1,000 million) against KHNP in September 2013, in relation to the design changes on the plant construction of Shin-Hanwool 1 & 2. Hyundai Engineering & Construction Co., Ltd. and two other companies increased the contract bill toW133,426 million in October 2014,W204,040 million in November 2015, andW204,564 million in January 2017, respectively, and submitted an application to demand extra contract payments due to the design changes. KHNP has paidW217,724 million of the claim amounts in full upon the first ruling in November 2016 and recognized the amount as addition toconstruction-in-progress accordingly.

② In December 2013, the Supreme Court of Korea ruled that regular bonuses also fall under the category of ordinary wages on the condition that those bonuses are paid regularly and uniformly. Also, the Supreme Court ruled that employees are entitled to retroactively demand certain wages based on the new ordinary wages that include regular bonuses as additional wages. However, the request may be limited to the extent of the principle of good faith.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

49. Contingencies and Commitments, Continued

(1) Ongoing litigations related with contingent liabilities and contingent assets as of September 30, 2018 and December 31, 2017 are as follows, continued:

The Company believes that the possibility of economic outflow is probable on the ongoing and the expected lawsuit. For this reason, the Company recognizedW52,568 million of other provision in relation to the lawsuit as of September 30, 2018.

Except these significant ongoing claims, there are 11 arbitration cases pertaining to the Company as of September 30, 2018 and the significant arbitration cases are as follows:

① KEPCO and KEPCO KDN Co., Ltd., a subsidiary of KEPCO, have been accused of breach of contract in relation to ERP software, which is provided by SAP Korea Ltd. The litigation was filed in the International Chamber of Commerce International Court of Arbitration but the Company has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

② Hyundai Samsung Joint Venture (HSJV), one of the subcontractors of the Company, filed an arbitration against the Company at the London Court of International Arbitration (LCIA) in 2016 due to disagreements in UAE nuclear power plant construction project, but the Company has not recognized any losses because the probability of economic benefit outflow is remote and the related amount cannot be reasonably estimated.

③ In 2016, Hyundai E&C, GS Engineering & Construction Corp. and Hansol SeenTec Co., Ltd. filed on arbitration against the Company to the Korea Commercial Arbitration Board in relation to the request for additional construction costs. As described in note 26.(2), the Company recognized the litigation provisions ofW204,787 million in relation to this arbitration case.

④ In 2016, Halla Corporation filed on arbitration against the Company to the Korea Commercial Arbitration Board in relation to the request for additional construction costs and the Company filed on arbitration against Halla Corporation to the Korea Commercial Arbitration Board in relation to the request for a penalty payment for the delayed construction work. The Company has recognizedW4,916 million of provision for the best estimate of the expenditure required to fulfill its obligations in relation to this arbitration as of September 30, 2018.

(2) Guarantees of payments and commitments provided to other companies as of September 30, 2018 and December 31, 2017 are as follows:

① In order to secure its status as a shareholder of Navanakorn Electric Co., Ltd., the Company has signed a fund supplement contract. According to the contract, in case Navanakorn Electric Co., Ltd. does not have sufficient funds for its operation or repayment of borrowings, the Company bears a payment obligation in proportion to its ownership.

② The Company has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Company has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. 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.

③ The Company has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and Mizuho bank and others investment guarantee up to USD 43,500 thousand in proportion to its ownership in the electricity purchase contract with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

④ The Company has provided MUFG Bank, Ltd. (MUFG) (formerly, the Bank of Tokyo Mitsubishi UFJ. Ltd. (BTMU)) borrowing guarantee up to USD 41,258 thousand proportion to its ownership in the equity bridge loan guarantee with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

49. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of September 30, 2018 and December 31, 2017 are as follows, continued:

⑤ The Company has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank guarantee of mutual investment of USD 2,192 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.

⑥ The Company has provided the Export-Import Bank of Korea and SMBC guarantee of mutual investment of USD 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 PT Wampu Electric Power, an associate of the Company.

(3) Credit lines provided by financial institutions as of September 30, 2018 are as follows:

In millions of won and thousands of foreign currencies

Commitments	Financial institutions	Currency		Limited amount
Commitments on bank-overdraft	Nonghyup Bank and others		KRW		1,855,000
Commitments on bank-daylight overdraft	Nonghyup Bank		KRW		280,000
Limit amount available for CP	KEB Hana Bank and others		KRW		400,000
Limit amount available for card	KEB Hana Bank and others		KRW		46,703
	Banco de Oro		PHP		5,000
Loan limit	Kookmin Bank and others		KRW		1,060,700
	BNP Paribas and others		USD		1,795,100
Certification of payment on L/C	Shinhan Bank and others		USD		999,514
Certification of performance guarantee on contract	KEB Hana Bank and others		EUR		5,740
	KEB Hana Bank and others		INR		230,515
	Korea Development Bank and others		JPY		637,150
	Seoul Guarantee Insurance and others		KRW		70,634
	KEB Hana Bank and others		USD		745,715
	KEB Hana Bank		SAR		102,186
	Bank of Kathmandu		NPR		36,304
	KEB Hana Bank		CAD		617
Certification of bidding	SMBC and others		USD		50,000
	ABSA and others		ZAR		55,730
Advance payment bond, Warranty bond, Retention bond and others	Export-Import Bank of Korea and others		USD		3,855,520
Others	KEB Hana Bank		INR		143,390
	Shinhan Bank		JPY		381,210
	Nonghyup Bank and others		KRW		496,590
	Export-Import Bank of Korea and others		USD		1,068,350
Inclusive credit	Shinhan Bank		INR		47,489
	KEB Hana Bank		KRW		258,000
	KEB Hana Bank and others		USD		33,899
Trade finance	BNP Paribas and others		USD		800,000

168

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

49. Contingencies and Commitments, Continued

(4) As of September 30, 2018, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows:

In millions of won and thousands of foreign currencies

Guarantor	Guarantee	Type of guarantee	Currency		Amount		Description
Korea East-West Power Co., Ltd.	SK Securities Co., Ltd. and others	Shareholdings of Gyeongju Wind Power Co., Ltd.		KRW		15,958	Collateral for borrowings
Korea Midland Power Co.,Ltd.	IBK and others	Shareholdings of Commerce and Industry Energy Co., Ltd.		KRW		13,605	Collateral for borrowings
Korea Southern Power Co., Ltd.	Shinhan Bank and others	Shareholdings of KOSPO Youngnam Power Co., Ltd.		KRW		40,000	Collateral for borrowings
Korea Southern Power Co., Ltd.	Korea Development Bank and others	Shareholdings of DS Power Co., Ltd.		KRW		2,900	Collateral for borrowings
Korea South-East Power Co., Ltd.	International Finance Corporation and others	Shareholdings of Mira Power Limited		KRW		55,571	Collateral for borrowings
Korea Hydro & Nuclear Power Co., Ltd.	Korea Development Bank and others	Shareholdings of Gyeonggi Green Energy Co., Ltd.		KRW		47,000	Collateral for borrowings
Gyeonggi Green Energy Co., Ltd.	Korea Development Bank and others	Factory estate and others		KRW		327,080	Collateral for borrowings (*)
Commerce and Industry Energy Co., Ltd.	IBK and others	Land, buildings, structures and machinery and others		KRW		110,500	Collateral for borrowings
		Cash and cash equivalents		KRW		11,084	Collateral for borrowings
Gyeongju Wind Power Co., Ltd.	SK Securities Co., Ltd. and others	Property, plant and equipment and others		KRW		94,498	Collateral for borrowings
		Existing or expected trade receivables		KRW		13,546	Collateral for borrowings
		Cash and cash equivalents		KRW		6,036	Collateral for borrowings
KOSPO Youngnam Power Co., Ltd.	Shinhan Bank and others	Bank deposit and insurance claim and others		KRW		396,120	Collateral for borrowings
Qatrana Electric Power Company	The Islamic Development Bank and others	Finance Lease receivable and property, plant and equipment and others		JOD		163,706	Collateral for borrowings
KST Electric Power Company	The Export - Import Bank of Korea and others	Finance Lease receivable and others		USD		283,144	Collateral for borrowings

(*) The Company was provided with shares of Gyeonggi Green Energy Co., Ltd., one of its subsidiaries, from the investors as collateral related to long-term borrowings. Additionally, pledge for shares, pledge for transfer of rights of long-term borrowings, pledge for insurance claims and other pledges were established.

The Company hasW1,197 million of project loans from Korea Energy Agency as of September 30, 2018. The Company has provided a blank check as repayment guarantee.

(5) The Company temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount ofW83,536 million as of September 30, 2018, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations ofW41 million and depreciation on the utility plant ofW4,911 million are recorded in other expenses for the nine-month period ended September 30, 2018.

(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 September 30, 2018. The book value of facility isW17,822 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex isW2,911 million. The ultimate outcome of this event cannot be reasonably estimated.

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

50. Subsequent Events

Subsequent to September 30, 2018, 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. and Korea East-West Power Co., Ltd. issued corporate bonds andnon-guaranteed bonds for funding facilities and operations as follows:

In millions of won

Company Name	Type	Issue date		Maturity		Interest rate (%)			Amount
Korea Hydro & Nuclear	#51-1 corporate bond		2018.10.26		2021.10.26		2.01	%	W	50,000
Power Co., Ltd.	#51-2 corporate bond		2018.10.26		2048.10.26		2.25	%		50,000
Korea South-East Power Co., Ltd.	Corporate bond		2018.11.01		2018.11.22		1.90	%		100,000
	#45-1non-guaranteed corporate bond		2018.11.09		2021.11.09		2.16	%		200,000
	#45-2non-guaranteed corporate bond		2018.11.09		2038.11.09		2.32	%		50,000
	#45-3non-guaranteed corporate bond		2018.11.09		2048.11.09		2.19	%		30,000
Korea Midland Power Co., Ltd.	#46-1 corporate bond		2018.10.31		2038.10.31		2.24	%		90,000
	#46-2 corporate bond		2018.10.31		2038.10.31		2.17	%		30,000
Korea Western Power Co., Ltd.	#42-1 corporate bond		2018.11.01		2021.11.01		1.95	%		50,000
	#42-2 corporate bond		2018.11.01		2038.11.01		2.25	%		60,000
	#42-3 corporate bond		2018.11.01		2048.11.01		2.20	%		20,000
Korea Southern Power Co., Ltd.	#46 corporate bond		2018.10.24		2021.10.24		6.00	%		520
	#18-13 corporate bond		2018.10.19		2018.10.24		1.76	%		20,000
Korea East-West Power Co., Ltd.	#31-1non-guaranteed corporate bond		2018.11.05		2021.11.05		1.99	%		100,000
	#31-2non-guaranteed corporate bond		2018.11.05		2038.11.05		2.30	%		30,000
	#31-3non-guaranteed corporate bond		2018.11.05		2048.11.05		2.23	%		40,000

170

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

September 30, 2018

(Unaudited)

51. Adjusted Operating Profit

The operating profit in the Company’s consolidated interim statements of comprehensive income (loss) prepared in accordance withK-IFRS included in this report differs from that in its consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Company’s results from operating activities as presented in the Company’s consolidated interim statements of comprehensive income (loss) prepared in accordance withK-IFRS for each of the nine-month periods ended September 30, 2018 and 2017 to the operating profit or loss as presented in the Company’s consolidated interim statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB for each of the corresponding periods.

In millions of won	September 30, 2018						September 30, 2017
	Three-month period ended			Nine-month period ended			Three-month period ended			Nine-month period ended
Operating profit on consolidated interim statements of comprehensive income	W	1,395,215			580,484			2,772,921			5,082,599
Add
Other income
Reversal of other provisions		649			2,126			1,532			3,925
Gains on government grants		66			211			123			628
Gains on assets contributed		3,735			4,153			149			1,261
Gains on liabilities exempted		164			7,185			137			759
Compensation and reparations revenue		19,997			62,751			19,748			68,359
Revenue from research contracts		2,667			5,511			5,409			8,288
Rental income		45,199			138,537			49,069			143,796
Others		8,797			39,449			4,080			45,893
Other gains
Gains on disposal of property, plant and equipment		64,769			91,132			13,724			33,742
Gains on disposal of intangible assets		8			11			72			555
Gains on foreign currency translation		17,128			12,925			295			10,105
Gains on foreign currency transaction		9,883			33,089			16,164			72,783
Gains on insurance proceeds		—			—			—			383
Others		38,787			145,605			32,189			195,859
Deduct
Other expenses
Compensation and reparations expense		(2,329	)		(21,617	)		—			—
Accretion expenses of other provisions		(64	)		(254	)		(77	)		(6,894	)
Depreciation expenses on investment properties		(209	)		(717	)		(408	)		(953	)
Depreciation expenses on idle assets		(1,637	)		(4,911	)		(1,650	)		(4,963	)
Other bad debt expense		7,976			(3,477	)		—			(405	)
Donations		(14,480	)		(33,438	)		(15,582	)		(48,165	)
Others		(10,169	)		(54,020	)		(55	)		(21,890	)
Other losses
Losses on disposal of property, plant and equipment		(14,474	)		(27,874	)		(11,055	)		(31,251	)
Losses on disposal of intangible assets		(18	)		(23	)		—			(79	)
Losses on impairment of property, plant and equipment		—			(701,317	)		—			—
Losses on foreign currency translation		(2,164	)		(5,150	)		(4,959	)		(20,142	)
Losses on foreign currency transaction		(18,608	)		(51,981	)		(12,666	)		(34,854	)
Others		(12,248	)		(44,623	)		(35,510	)		(75,846	)
Adjusted operating profit	W	1,538,640			173,767			2,833,650			5,423,493

171