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

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the Month of June 2020

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form20-F  ☒            Form40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-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 Rule 12g3-2(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 Rule 12g3-2(b): 82-                    .

This Report of Foreign Private Issuer on Form 6-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, 2020 to March 31, 2020)

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, OR K-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) 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, 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), ICT service by KEPCO KDN, nuclear fuel processing by KEPCO Nuclear Fuel (KEPCO NF) and other overseas businesses and related investments.

4. Consolidated subsidiaries

(As of March 31, 2020)

Domestic	Overseas	Total
41	79	120

5. Major changes in management

A. On January 31, 2020, Mr. Park, Jong-Bae was appointed as a non-standing director in replacement of Mr. Kim, Tae-Yoo, who resigned from his position.

B. On March 17, 2020, Mr, Yang, Bong-Ryull, Mr. Kim, Jwa-Kwan and Mr. Jung, Yeon-Gil, whose term of office expired on April 3, 2020, were reappointed as non-standing directors for a term of a year beginning on April 4, 2020.

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: KEPCO did not pay any dividends for fiscal year of 2019 and 2018. Dividend payments for fiscal year 2017 and 2016 were Won 790 and Won 1,980 per share respectively.

II.Business Overview

1. Consolidated financial results by segment for a three-month period ended March 31, 2020 and 2019

(In billions of Won)

	January to March 2019				January to March 2020
	Sales		Operating profit		Sales		Operating profit
Electricity sales		15,118		-2,411		14,906		-547
Nuclear generation		2,557		655		2,485		327
Thermal generation		7,357		1,103		5,922		587
Others(*)		720		68		904		68
Subtotal		25,752		-585		24,217		435
Adjustment for related- party transactions		-10,504		-45		-9,124		-4
Total		15,248		-630		15,093		431

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

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

2. Changes in unit prices of major products

(In Won per kWh)

Business sector		Company	January to March 2019		January to March 2020
Electricity sold	Residential	KEPCO		109.24		110.84
	Commercial			130.09		130.98
	Educational			100.77		103.50
	Industrial			107.86		108.63
	Agricultural			47.96		48.28
	Street lighting			110.06		110.17
	Overnight usage			72.78		72.69
Electricity from nuclear generation	Nuclear Generation	KHNP		68.33		62.59
Electricity from thermal generation	Thermal generation	KOSEP		102.67		96.32
		KOMIPO		108.38		91.41
		KOWEPO		115.29		100.63
		KOSPO		106.49		112.88
		EWP		108.96		111.51

3. Power purchase from generation companies for a three-month period ended March 31, 2020

Company	Volume (GWh)		Expense (In billions of Won)
KHNP		38,302		2,401
KOSEP		12,922		1,231
KOMIPO		11,105		1,177
KOWEPO		10,255		1,032
KOSPO		10,127		1,137
EWP		11,224		1,097
Others		43,172		4,511
Total		137,107		12,586

4. Intellectual property as of March 31, 2020

	Patents				Utility models		Designs		Trademarks				Total
	Domestic		Overseas						Domestic		Overseas
KEPCO		2,530		266		64		84		108		47		3,099
Generation subsidiaries		2,586		372		114		55		162		23		3,312
Total		5,116		638		178		139		270		70		6,411

III.Financial Information

1. Condensed consolidated financial results as of and for a three-month period ended March 31, 2019 and 2020

(In billions of Won)

Consolidated statements of comprehensive income							Consolidated statements of financial position
	January to March 2019		January to March 2020		Change (%)			December 31, 2019		March 31, 2020		Change (%)
Sales		15,248		15,093		-1.0	Total assets		197,598		199,094		0.8
Operating profit		-630		431		n/m	Total liabilities		128,708		130,272		1.2
Net income		-761		54		n/m	Total equity		68,890		68,822		-0.1

2. Condensed separate financial results as of and for a three-month period ended March 31, 2019 and 2020

(In billions of Won)

Separate statements of comprehensive income							Separate statements of financial position
	January to March 2019		January to March 2020		Change (%)			December 31, 2019		March 31, 2020		Change (%)
Sales		15,118		14,906		-1.4	Total assets		109,809		110,161		0.3
Operating profit		-2,411		-547		77.3	Total liabilities		58,351		59,008		1.1
Net income		-1,650		-226		86.3	Total equity		51,458		51,153		-0.6

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 the president, and more than eight non-standing directors. The number of non-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 three-month period ended March 31, 2020

Number of meetings	Number of agendas	Classification
		Resolutions	Reports
3	15	9	6

* The audit committee held 3 meetings with 13 agendas (of which, 6 were approved as proposed and 7 were accepted as reported).

3. Major activities of the Board of Directors

Date	Agenda	Results	Type
January 22, 2020	Approval of the safety management plan of 2020	Approved as proposed	Resolution
February 28, 2020	Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director	Approved as proposed	Resolution
	Approval to call for the annual general meeting of shareholders for the fiscal year 2019	Approved as proposed	Resolution
	Approval of consolidated and separate financial statements for the fiscal year 2019	Approved as proposed	Resolution
	Approval of the maximum aggregate amount of remuneration for directors in 2020	Approved as proposed	Resolution
	Approval of amendments to the Articles of Incorporation	Approved as proposed	Resolution
	Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service	Approved as proposed	Resolution
	Report on audit results for 2019	Accepted as reported	Report
	Report on internal control over financial reporting for the fiscal year 2019	Accepted as reported	Report
	Report on the evaluation of internal control over financial reporting for the fiscal year 2019	Accepted as reported	Report
	Report on the annual management of commercial papers in 2019	Accepted as reported	Report
	Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)	Accepted as reported	Report
	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 (2020-2021)	Accepted as reported	Report
March 20, 2020	Approval of utilization project of Gwanak-Dongjak regional office site	Approved as proposed	Resolution
	Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia	Approved as proposed	Resolution

4. Attendance Status of Non-standing directors

Date	Agenda	Kim, Jwa- Kwan	Kim, Chang- Joon	Yang, Bong- Ryull	Jung, Yeon- Gil	Noh, Geum- Sun	Choi, Seung- Kook	Park, Cheol- Su	Park, Jong- Bae
January 22, 2020	Approval of the safety management plan of 2020	For	For	For	For	For	For	For	Before Appointment
February 28, 2020	Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director	For	For	For	For	For	For	For	For
	Approval to call for the annual general meeting of shareholders for the fiscal year 2019	For	For	For	For	For	For	For	For
	Approval of consolidated and separate financial statements for the fiscal year 2019	For	For	For	For	For	For	For	For
	Approval of the maximum aggregate amount of remuneration for directors in 2020	For	For	For	For	For	For	For	For
	Approval of amendments to the Articles of Incorporation	For	For	For	For	For	For	For	For
	Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service	For	For	For	For	For	For	For	For
	Report on audit results for 2019	Agenda for Report
	Report on internal control over financial reporting for the fiscal year 2019	Agenda for Report
	Report on the evaluation of internal control over financial reporting for the fiscal year 2019	Agenda for Report
	Report on the annual management of commercial papers in 2019	Agenda for Report
	Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)	Agenda for Report
	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 (2020-2021)	Agenda for Report
March 20, 2020	Approval of utilization project of Gwanak-Dongjak regional office site	For	For	For	For	For	For	For	For
	Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia	For	For	For	For	For	For	For	For
	Attendance Rate	100%	100%	100%	100%	100%	100%	100%	100%

5. Attendance Status of Standing directors

Date	Agenda	JongKap KIM	Kim, Hoe- Chun	Kim, Dong- Sub	Park, Hyung- Duck	Kim, Sung- Arm	Lim, Hyun- Seung
January 22, 2020	Approval of the safety management plan of 2020	For	For	For	For	For	For
February 28, 2020	Approval of forming Director Nomination Committee and evaluation standards for the candidates of non-standing director	For	For	For	For	For	For
	Approval to call for the annual general meeting of shareholders for the fiscal year 2019	For	For	For	For	For	For
	Approval of consolidated and separate financial statements for the fiscal year 2019	For	For	For	For	For	For
	Approval of the maximum aggregate amount of remuneration for directors in 2020	For	For	For	For	For	For
	Approval of amendments to the Articles of Incorporation	For	For	For	For	For	For
	Approval to consign contract administration regarding construction of distribution facilities to Public Procurement Service	For	For	For	For	For	For
	Report on audit results for 2019	Agenda for Report
	Report on internal control over financial reporting for the fiscal year 2019	Agenda for Report
	Report on the evaluation of internal control over financial reporting for the fiscal year 2019	Agenda for Report
	Report on the annual management of commercial papers in 2019	Agenda for Report
	Report on the contribution plan to the educational foundation (tentatively named as KEPCO Tech University)	Agenda for Report
	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 (2020-2021)	Agenda for Report
March 20, 2020	Approval of utilization project of Gwanak-Dongjak regional office site	For	For	For	For	For	For
	Approval of contribution to a gas-fired power project in Pulau Indah, Malaysia	For	For	For	For	For	For
	Attendance Rate	100%	100%	100%	100%	100%	100%

6. Major activities of the Audit Committee

Date	Agenda	Results	Type
January 22, 2020	Approval of appointment of independent auditors of subsidiaries	Approved as proposed	Resolution
	Approval of Audit plans for 2020	Approved as proposed	Resolution
	Report on education plans for auditors in 2020	Accepted as reported	Report
	Prior report on independence of independent auditors	Accepted as reported	Report
February 28. 2020	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019	Approved as proposed	Resolution
	Report on internal control over financial reporting for the fiscal year 2019	Accepted as reported	Report
	Report on the evaluation on internal control over financial reporting for the fiscal year 2019	Accepted as reported	Report
	Report on agendas with audit service by independent auditors for fiscal year 2019	Accepted as reported	Report
	Report on audit results for fiscal year 2019	Accepted as reported	Report
March 20, 2020	Prior approval for non-audit service for subsidiaries by the independent auditor	Approved as proposed	Resolution
	Approval of investigation result on the agendas for the annual general meeting of shareholders	Approved as proposed	Resolution
	Approval of auditor’s report for the annual general meeting of shareholders	Approved as proposed	Resolution
	Report on audit results by the independent auditor for the fiscal year 2019	Accepted as reported	Report

* 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.

7. Attendance Status of the Audit Committee

Date	Agenda	Noh, Geum-Sun	Jung, Yeon-Gil	Lee, Jung-Hee(*)
January 22, 2020	Approval of appointment of independent auditors of subsidiaries	For	For	Absent
	Approval of Audit plans for 2020	For	For	Absent
	Report on education plans for auditors in 2020	For	For	Absent
	Prior report on independence of independent auditors	For	For	Absent
February 28. 2020	Approval of for the consolidated and separate financial statements and business report for the fiscal year 2019	For	For	Absent
	Report on internal control over financial reporting for the fiscal year 2019	For	For	Absent
	Report on the evaluation on internal control over financial reporting for the fiscal year 2019	For	For	Absent
	Report on agendas with audit service by independent auditors for fiscal year 2019	For	For	Absent
	Report on audit results for fiscal year 2019	For	For	Absent
March 20, 2020	Prior approval for non-audit service for subsidiaries by the independent auditor	For	For	Absent
	Approval of investigation result on the agendas for the annual general meeting of shareholders	For	For	Absent
	Approval of auditor’s report for the annual general meeting of shareholders	For	For	Absent
	Report on audit results by the independent auditor for the fiscal year 2019	For	For	Absent
	Attendance Rate	100%	100%	—

^(*)  Lee, Jung-Hee voluntarily resigned as a standing director and as a member of the audit committee on December 13, 2019. Under Korean law, Lee, Jung-Hee retains the rights and is subject to obligations as a member of the audit committee and a standing director, to the extent such rights and obligations are connected to performance of his duties as a member of the audit committee, until his successor to take his place at our audit committee is approved and appointed at a general meeting of the shareholders.

V. Shareholders

1. List of shareholders as of December 31, 2019

		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		50,592,477		7.88
Public(Non-Koreans)	Common Shares		1,024		127,250,445		19.82
	American depositary shares (ADS)		1		27,593,238		4.30
Public (Koreans)			431,598		108,450,859		16.90
Total			432,626		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 represents one-half of one share of our common stock.

VI. Directors and employees as of and for a three-month period ended March 31, 2020 (KEPCO Only)

1. Directors

		(In thousands of Won)
Type		Number of directors		Total remuneration		Average remuneration per person		Remarks
Standing director			6		193,655		32,276	Excluding the members of Audit Committee
Non-standing director			6		41,854		6,976
Member of Audit Committee	Standing director		0		—		—	Vacant after December 13, 2019
	Non-standing director		2		15,000		7,500	—
Total			14		250,509		17,894	—

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		17,762		78		17,840		15.7		405,882,117		22,751
Female		4,748		58		4,806		13.0		88,239,744		18,360
Total		22,510		136		22,646		15.1		494,121,861		21,819

VII. Other Information Necessary for the Protection of Investors

1. Summary of shareholder’s meetings for a three-month period ended March 31, 2020

Type	Agenda	Results
Annual General Meeting held on March 27, 2020	Approval of the consolidated and separate financial statements for the fiscal year 2019	Approved as proposed
	Approval of the maximum aggregate amount of remuneration for directors in 2020	Approved as proposed
	Approval of amendments to the Articles of Incorporation	Approved as proposed

2. Pending legal proceedings as of March 31, 2020

	(In billions of Won)
Type	Number of lawsuits		Amount claimed
Lawsuits where KEPCO and its subsidiaries are engaged as the defendants		636		676
Lawsuits where KEPCO and its subsidiaries are engaged as the plaintiffs		199		439

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, Byung-in
Name:	Kim, Byung-in
Title:	Vice President

Date: June 4, 2020

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

March 31, 2020

(Unaudited)

(With Independent Auditor’s Report Thereon)

INDEX TO FINANCIAL STATEMENTS

	Page
Independent Auditor’s 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

2

Ernst & Young Han Young Taeyoung Building, 111, Yeouigongwon-ro, Yeongdeungpo-gu, Seoul 150-777 Korea   Tel: +82 2 3787 6600 Fax: +82 2 783 5890 ey.com/kr

Independent Auditor’s Review Report

Based on a report originally issued in Korean

The Board of Directors and Shareholders

Korea Electric Power Corporation:

Report on Review of Consolidated Interim Financial Statements

We have reviewed the accompanying consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (collectively referred as the “Group”), which comprise the consolidated interim statement of financial position as of March 31, 2020, the consolidated interim statements of comprehensive income (loss), consolidated interim statements of changes in equity and consolidated interim statements of cash flows for the three-month periods ended March 31, 2020 and 2019 and the notes to the accompanying consolidated interim financial statements, including 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 (“KIFRS”) 1034 ‘Interim Financial Reporting’ and for such internal control as management determines is necessary to enable the preparation of interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Review Responsibility

Our responsibility is to issue a report on these consolidated interim financial statements based on our review. We conducted our review 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 auditing standards generally accepted in the Republic of Korea (“KGAAS”) 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.

Conclusion

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

Other Matters

We have audited the consolidated statement of financial position as of December 31, 2019, and the related consolidated statement of comprehensive income (loss), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, in accordance with KGAAS (not presented herein), our report dated March 17, 2020 expressed an unqualified opinion thereon. The accompanying consolidated statement of financial position as of December 31, 2019 presented for comparative purpose is not different, in all material respects, from the above audited consolidated statement of financial position.

May 15, 2020

This review report is effective as of May 15, 2020, the independent auditor’s review report date. Accordingly, certain material subsequent events or circumstances may have occurred during the period from the independent auditor’s review report date to the time this review report is used. Such events and circumstances could significantly affect the accompanying consolidated interim financial statements and may result in modifications to this review report.

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of March 31, 2020 and December 31, 2019

(Unaudited)

In millions of won	Note		March 31, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents		5,6,7,44	W	1,458,491		1,810,129
Current financial assets, net		5,6,9,11,12,13,44		3,464,952		1,586,509
Trade and other receivables, net		5,8,20,24,44,45,46		6,673,798		7,701,452
Inventories, net		14		6,870,199		7,050,700
Income tax receivables				27,884		99,718
Currentnon-financial assets		15		1,223,019		1,206,377
Assetsheld-for-sale		16,41		23,290		28,116
Total current assets				19,741,633		19,483,001
Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,44		2,984,955		2,563,498
Non-current trade and other receivables, net		5,8,20,44,45,46		2,060,052		2,002,297
Property, plant and equipment, net		18,24,27,48		165,095,908		164,701,827
Investment properties, net		19,27		138,968		158,580
Goodwill		16		97,977		97,977
Intangible assets other than goodwill, net		21,27,45		1,100,947		1,069,976
Investments in associates		4,17		4,392,883		4,251,802
Investments in joint ventures		4,17		1,708,886		1,663,029
Defined benefit assets, net		25		—		1,047
Deferred tax assets				1,514,464		1,437,829
Non-currentnon-financial assets		15		257,500		166,929
Totalnon-current assets				179,352,540		178,114,791
Total Assets		4	W	199,094,173		197,597,792

(Continued)

2

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Financial Position, Continued

As of March 31, 2020 and December 31, 2019

(Unaudited)

In millions of won	Note		March 31, 2020			December 31, 2019
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,44,46	W	5,652,069			6,649,402
Current financial liabilities, net		5,12,23,44,46		7,934,830			8,930,903
Income tax payables				490,469			358,277
Currentnon-financial liabilities		20,28,29		6,138,821			5,688,353
Current provisions		26,44		2,879,638			2,604,721
Total current liabilities				23,095,827			24,231,656
Non-current liabilities
Non-current trade and other payables, net		5,22,24,44,46		7,139,179			6,965,760
Non-current financial liabilities, net		5,12,23,44,46		61,278,808			59,115,598
Non-currentnon-financial liabilities		28,29		9,004,528			8,834,452
Employee benefits liabilities, net		25,44		2,073,620			1,929,854
Deferred tax liabilities				8,458,164			8,564,775
Non-current provisions		26,44		19,221,929			19,066,048
Totalnon-current liabilities				107,176,228			104,476,487
Total Liabilities		4	W	130,272,055			128,708,143
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				34,785,425			34,785,425
Unappropriated retained earnings				12,793,451			12,811,798
				49,183,786			49,202,133
Other components of equity		33
Other capital surplus				1,224,402			1,226,364
Accumulated other comprehensive loss				(318,784	)		(280,730	)
Other equity				13,294,973			13,294,973
				14,200,591			14,240,607
Equity attributable to owners of the controlling company				67,437,955			67,496,318
Non-controlling interests		16,32		1,384,163			1,393,331
Total Equity			W	68,822,118			68,889,649
Total Liabilities and Equity			W	199,094,173			197,597,792

The accompanying notes are an integral part of the consolidated interim financial statements.

3

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss)

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won, except per share information	Note		March 31, 2020			March 31, 2019
Sales		4,34,44,46
Sales of goods			W	14,612,845			14,754,012
Sales related to provision of services				120,225			94,879
Sales related to construction contracts		20		207,421			256,054
Revenue related to transfer of assets from customers		28		152,636			143,459
				15,093,127			15,248,404
Cost of sales		14,25,42,46
Cost of sales of goods				(13,677,754	)		(14,891,171	)
Cost of sales related to provision of services				(255,024	)		(123,722	)
Cost of sales related to construction contracts				(163,997	)		(237,015	)
				(14,096,775	)		(15,251,908	)
Gross profit (loss)				996,352			(3,504	)
Selling and administrative expenses		25,35,42,46		565,798			626,376
Operating income (loss)		4		430,554			(629,880	)
Othernon-operating income		36		86,524			80,597
Othernon-operating expense		36		(16,613	)		(20,236	)
Other gains (losses), net		37		61,940			(10,284	)
Finance income		5,12,38		800,765			301,575
Finance expenses		5,12,39		(1,424,036	)		(698,776	)
Profit (loss) related to associates, joint ventures and subsidiaries		4,17
Gain on valuation of investments in associates and joint ventures				239,961			205,732
Gain on disposal of investments in associates and joint ventures				—			6,200
Loss on valuation of investments in associates and joint ventures				(34,124	)		(30,543	)
Loss on disposal of investments in associates and joint ventures				(16	)		(2	)
				205,821			181,387
Profit (loss) before income tax				144,955			(795,617	)
Income tax expense (benefit)		40		91,347			(34,461	)
Net profit (loss) for the period			W	53,608			(761,156	)

(Continued)

4

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Income (Loss), Continued

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won, except per share information	Note		March 31, 2020			March 31, 2019
Other comprehensive income (loss)		5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		25,31	W	(36,285	)		(97,763	)
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax		31		(248	)		206
Net change in fair value of financial assets at fair value through other comprehensive income (loss)		33		(51,545	)		18,871
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		5,12,33		24,017			5,263
Foreign currency translation of foreign operations, net of tax		33		44,723			24,237
Share in other comprehensive income (loss) of equity-accounted associates and joint ventures, net of tax		33		(38,831	)		27,280
Other comprehensive loss, net of tax				(58,169	)		(21,906	)
Total comprehensive loss for the period			W	(4,561	)		(783,062	)
Profit (loss) attributable to:
Owners of the controlling company		43	W	22,979			(787,798	)
Non-controlling interests				30,629			26,642
			W	53,608			(761,156	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company			W	(56,401	)		(812,702	)
Non-controlling interests				51,840			29,640
			W	(4,561	)		(783,062	)
Earnings (loss) per share (in won)		43
Basic and diluted earnings (loss) per share			W	36			(1,227	)

The accompanying notes are an integral part of the consolidated interim financial statements.

5

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won	Equity attributable to owners of the controlling company
	Contributed capital		Retained earnings			Other components of equity			Subtotal			Non- controlling interests			Total equity
Balance at January 1, 2019	W	4,053,578		51,519,119			14,171,228			69,743,925			1,348,837			71,092,762
Total comprehensive income (loss) for the period
Net profit (loss) for the period		—		(787,798	)		—			(787,798	)		26,642			(761,156	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(94,641	)		—			(94,641	)		(3,122	)		(97,763	)
Share in other comprehensive income of associates and joint ventures, net of tax		—		206			—			206			—			206
Net change in fair value of equity investments at fair value through other comprehensive income		—		—			13,105			13,105			5,766			18,871
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		—		—			4,908			4,908			355			5,263
Foreign currency translation of foreign operations, net of tax		—		—			24,237			24,237			—			24,237
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			27,281			27,281			(1	)		27,280
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		—			—			—			(58,455	)		(58,455	)
Transactions between consolidated entities		—		—			(254	)		(254	)		2,592			2,338
Changes in consolidation scope		—		—			—			—			15,409			15,409
Dividends paid (hybrid bond)		—		—			—			—			(3,346	)		(3,346	)
Others		—		(1,504	)		1,504			—			—			—
Balance at March 31, 2019	W	4,053,578		50,635,382			14,242,009			68,930,969			1,334,677			70,265,646

(Continued)

6

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity, Continued

For the three-month periods ended March 31, 2020 and 2019

(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, 2020	W	4,053,578		49,202,133			14,240,607			67,496,318			1,393,331			68,889,649
Total comprehensive income (loss) for the period
Net profit for the period		—		22,979			—			22,979			30,629			53,608
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability, net of tax		—		(41,078	)		—			(41,078	)		4,793			(36,285	)
Share in other comprehensive income of associates and joint ventures, net of tax		—		(248	)		—			(248	)		—			(248	)
Net change in fair value of equity investments at fair value through other comprehensive income		—		—			(51,544	)		(51,544	)		(1	)		(51,545	)
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		—		—			13,962			13,962			10,055			24,017
Foreign currency translation of foreign operations, net of tax		—		—			38,364			38,364			6,359			44,723
Share in other comprehensive income (loss) of associates and joint ventures, net of tax		—		—			(38,836	)		(38,836	)		5			(38,831	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid		—		—			—			—			(66,735	)		(66,735	)
Issuance of shares of capital by subsidiaries and others		—		—			(1,962	)		(1,962	)		9,073			7,111
Dividends paid (hybrid bond)		—		—			—			—			(3,346	)		(3,346	)
Balance at March 31, 2020	W	4,053,578		49,183,786			14,200,591			67,437,955			1,384,163			68,822,118

The accompanying notes are an integral part of the consolidated interim financial statements.

7

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won	March 31, 2020			March 31, 2019
Cash flows from operating activities
Net profit (loss) for the year	W	53,608			(761,156	)
Adjustments to reconcile net loss to net cash flows provided by operating activities:
Income tax expense (benefit)		91,347			(34,461	)
Depreciation		2,800,959			2,619,248
Amortization		38,115			36,826
Employee benefit expense		108,957			95,188
Bad debts expense		18,488			5,800
Interest expense		516,383			503,377
Loss on sale of financial assets		47			58
Loss on disposal of property, plant and equipment		7,786			13,992
Loss on abandonment of property, plant, and equipment		77,208			98,537
Loss on impairment of property, plant, and equipment		—			2,279
Increase in provisions, net		429,557			333,586
Loss on foreign currency translation, net		681,083			194,934
Gain on valuation of financial assets at fair value through profit or loss		(6,225	)		(4,961	)
Loss on valuation of financial assets at fair value through profit or loss		225			696
Valuation and transaction gain on derivative instruments, net		(504,911	)		(181,059	)
Share in income of associates and joint ventures, net		(205,837	)		(175,189	)
Gain on sale of financial assets		—			(850	)
Gain on disposal of property, plant and equipment		(27,357	)		(8,833	)
Gain on disposal of intangible assets		—			(97	)
Gain on disposal of associates and joint ventures		—			(6,200	)
Loss on disposal of associates and joint ventures		16			2
Interest income		(66,506	)		(61,304	)
Dividend income		(42	)		(1,313	)
Others, net		(25,617	)		(6,726	)
		3,933,676			3,423,530
Changes in operating assets and liabilities:
Trade receivables		1,007,582			925,080
Non-trade receivables		149,028			86,112
Accrued income		(6,591	)		193,753
Other receivables		18,836			19,588
Other current assets		(87,992	)		30,488
Inventories		56,677			(101,573	)
Othernon-current assets		(30,165	)		(30,886	)
Trade payables		(508,736	)		(525,831	)
Non-trade payables		(398,060	)		(252,938	)
Accrued expenses		(155,967	)		(258,941	)
Other payables		1,189			—
Other current liabilities		461,592			256,414
Othernon-current liabilities		119,912			49,820
Investments in associates and joint ventures (dividends received)		26,638			54,645
Provisions		(47,032	)		(169,446	)
Payments of employee benefit obligations		(17,589	)		(19,244	)
Plan assets		(1,669	)		(270	)
	W	587,653			256,771

(Continued)

8

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated Interim Statements of Cash Flows, Continued

For the three-month periods ended March 31, 2020 and 2019

(Unaudited)

In millions of won	March 31, 2020			March 31, 2019
Cash generated from operating activities	W	4,574,937			2,919,145
Dividends received (financial assets at fair value through other comprehensive income)		42			1,313
Interest paid		(513,938	)		(538,055	)
Interest received		38,701			42,330
Income taxes paid		(55,602	)		(84,967	)
Net cash provided by operating activities		4,044,140			2,339,766
Cash flows from investing activities
Proceeds from disposals of associates and joint ventures		93			—
Acquisition of associates and joint ventures		(36,008	)		(45,670	)
Proceeds from disposals of property, plant and equipment		96,279			89,476
Acquisition of property, plant and equipment		(3,020,721	)		(2,271,156	)
Proceeds from disposals of intangible assets		2,662			457
Acquisition of intangible assets		(13,783	)		(69,743	)
Proceeds from disposals of investment properties		41,059			—
Proceeds from disposals of financial assets		1,447,028			399,260
Acquisition of financial assets		(3,201,943	)		(1,565,586	)
Increase in loans		(132,858	)		(54,284	)
Collection of loans		117,028			70,933
Increase in deposits		(139,862	)		(67,671	)
Decrease in deposits		131,505			71,328
Proceeds from disposals of assetsheld-for-sale		4,841			—
Receipt of government grants		150			4,427
Net cash inflow from changes in consolidation scope		—			16,737
Other cash outflow from investing activities, net		(26,726	)		(4,364	)
Net cash used in investing activities		(4,731,256	)		(3,425,856	)
Cash flows from financing activities
Proceeds from (repayment of) short-term borrowings, net		(972,383	)		1,869,635
Proceeds from long-term borrowings and debt securities		3,296,239			3,480,192
Repayment of long-term borrowings and debt securities		(1,804,494	)		(3,440,060	)
Payment of lease liabilities		(199,867	)		(111,403	)
Settlement of derivative instruments, net		22,517			24,435
Change innon-controlling interest		9,868			10
Dividends paid (hybrid bond)		(3,346	)		(3,346	)
Dividends paid		(20,724	)		(16,082	)
Other cash outflow from financing activities, net		(5	)		—
Net cash provided by financing activities		327,805			1,803,381
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations		(359,311	)		717,291
Effect of exchange rate fluctuations on cash held		7,673			2,587
Net increase (decrease) in cash and cash equivalents		(351,638	)		719,878
Cash and cash equivalents at January 1		1,810,129			1,358,345
Cash and cash equivalents at March 31	W	1,458,491			2,078,223

The accompanying notes are an integral part of the consolidated interim financial statements.

9

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

March 31, 2020

(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 (“KIFRS”) 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 March 31, 2020, 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	%
Others (*)		313,887,019		48.90	%
		641,964,077		100.00	%

(*) The number of shares held by foreign shareholders are 154,843,683 shares (24.12%) as of December 31, 2019.

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 with KIFRS 1034 ‘Interim Financial Reporting’ as part of the period covered by KEPCO and subsidiaries’ (the “Group”) KIFRS 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:

• financial assets at fair value through profit or loss

• financial assets at fair value through other comprehensive income or loss

• derivative financial instruments are measured at fair value

• liabilities for defined benefit plans are recognized at the net of the total present value of defined benefit obligations less the fair value of plan assets

(3) Functional and presentation currency

These consolidated financial statements are presented in Korean won (“Won”), which is KEPCO’s functional currency and the currency of the primary economic environment in which the Group operates.

10

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with KIFRS 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 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 are as follows:

(i) Useful lives of property, plant and equipment, and estimations on provision for decommissioning costs

The Group 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 Group records the fair value of estimated decommissioning costs as a liability in the period in which the Group 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 Group is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.

(ii) Deferred tax

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

(iii) Valuations of financial instruments at fair values

The Group’s accounting policies and disclosures require the measurement of fair values, for both financial andnon-financial assets and liabilities. The Group has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS 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 Group 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 Group 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 Group 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 ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

(v) Unbilled revenue

Energy delivered but not metered nor billed is estimated at the reporting date 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 as of March 31, 2020 and 2019 areW1,240,270 million andW1,348,717 million, respectively.

(vi) Construction contracts

For each performance obligation satisfied over time, the Group recognizes revenue over time by measuring the progress towards complete satisfaction of that performance obligation. The Group 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 Group’s efforts or inputs expected to be incurred in the future, costs incurred which are not related to the performance obligation, changes in the Group’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.

12

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

2. Basis of Preparation, Continued

(5) Changes in accounting policies

Changes in accounting standards effective from January 1, 2020 are as follows. The Group believes that these amendments have no significant impact on the Group’s consolidated interim financial statements. The Group has not applied the new and revised standards in issue but not yet effective for the periods starting from January 1, 2020, even though the early adoption of these standards is possible.

Amendments to KIFRS 1103 Business Combination—Definition of a Business

The amendment to KIFRS 1103 clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Furthermore, it clarified that a business can exist without including all of the inputs and processes needed to create outputs.

Amendments to KIFRS 1107 Financial Instruments : disclosures,KIFRS 1109 Financial Instruments,and KIFRS 1039 Financial Instruments : Recognition and Measurements – Interest Rate Benchmark Reform

The amendments to KIFRS 1109 and KIFRS 1039Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainties about the timing and or amount of benchmark-based cash flows of the hedged item or the hedging instrument.

Amendments to KIFRS 1001 Presentation of Financial Statementsand KIFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Material

The amendments provide a new definition of material that states “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.”

The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users.

The Conceptual Framework for Financial Reporting

The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards.

The revised Conceptual Framework includes some new concepts, provides updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts.

3. Significant Accounting Policies

The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2019.

13

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information

(1) Segment determination and explanation of the measurements

The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by the Group’s the chief operating decision maker, the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Group’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 Group’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under KIFRS 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 consolidation 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.

14

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the three-month periods ended March 31, 2020 and 2019, respectively, are as follows:

In millions of won
March 31, 2020
Segment	Total segment revenue			Intersegment revenue			Revenue from external customers		Operating profit (loss)			Depreciation and amortization			Interest income			Interest expense			Profit (loss) related associates, joint ventures and subsidiaries
Transmission and distribution	W	14,905,633			314,343			14,591,290		(547,321	)		937,777			16,281			200,388			129,884
Electric power generation (Nuclear)		2,485,055			2,456,228			28,827		327,428			880,620			5,945			124,356			(988	)
Electric power generation(Non-nuclear)		5,921,662			5,673,033			248,629		586,900			989,554			5,567			160,610			75,382
Plant maintenance & engineering service		545,627			412,720			132,907		31,928			29,536			3,555			489			1,543
Others		358,690			267,216			91,474		35,937			27,393			43,197			36,495			—
Consolidation adjustments		(9,123,540	)		(9,123,540	)		—		(4,318	)		(25,806	)		(8,039	)		(5,955	)		—
	W	15,093,127			—			15,093,127		430,554			2,839,074			66,506			516,383			205,821
In millions of won
March 31, 2019
Segment	Total segment revenue			Intersegment revenue			Revenue from external customers		Operating profit (loss)			Depreciation and amortization			Interest income			Interest expense			Profit (loss) related associates, joint ventures and subsidiaries
Transmission and distribution	W	15,117,687			382,070			14,735,617		(2,411,381	)		883,574			19,092			186,008			145,069
Electric power generation (Nuclear)		2,556,962			2,534,233			22,729		655,762			774,015			8,902			127,747			1,531
Electric power generation(Non-nuclear)		7,357,654			7,058,553			299,101		1,102,920			964,468			5,340			166,277			36,625
Plant maintenance & engineering service		499,482			426,386			73,096		36,496			30,796			3,765			1,435			(1,838	)
Others		220,356			102,495			117,861		31,335			21,142			31,369			29,482			—
Consolidation adjustments		(10,503,737	)		(10,503,737	)		—		(45,012	)		(17,921	)		(7,164	)		(7,572	)		—
	W	15,248,404			—			15,248,404		(629,880	)		2,656,074			61,304			503,377			181,387

15

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
Match 31, 2020
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	110,161,326			3,818,750		1,417,315			59,008,538
Electric power generation (Nuclear)		60,047,554			57,499		689,048			34,281,584
Electric power generation(Non-nuclear)		54,483,751			2,174,654		666,328			32,751,482
Plant maintenance & engineering service		3,439,013			50,866		21,613			1,121,527
Others		8,488,580			—		229,622			3,934,541
Consolidation adjustments		(37,526,051	)		—		10,578			(825,617	)
	W	199,094,173			6,101,769		3,034,504			130,272,055
In millions of won
December 31, 2019
Segment	Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
Transmission and distribution	W	109,809,254			3,716,931		6,340,593			58,350,681
Electric power generation (Nuclear)		59,562,190			59,081		2,574,358			33,909,152
Electric power generation(Non-nuclear)		54,758,933			2,088,581		4,955,784			33,117,193
Plant maintenance & engineering service		3,528,879			50,238		95,810			1,124,855
Others		7,833,516			—		344,795			3,531,496
Consolidation adjustments		(37,894,980	)		—		(81,555	)		(1,325,234	)
	W	197,597,792			5,914,831		14,229,785			128,708,143

(4) Geographic information

Electricity sales, the main operations of the Group, 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)
Geographical unit	March 31, 2020		March 31, 2019		March 31, 2020		December 31, 2019
Domestic	W	14,783,111		14,889,435		169,924,332		169,366,365
Overseas (*1)		310,016		358,969		2,868,737		2,743,755
	W	15,093,127		15,248,404		172,793,069		172,110,120

(*1) Middle East and other Asian countries make up the majority of overseas revenue andnon-current assets. Since the overseas revenue ornon-current assets attributable to particular countries are not material, they are not disclosed individually.

(*2) Amounts exclude financial assets, defined benefit assets and deferred tax assets.

16

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

4. Segment, Geographic and Other Information, Continued

(5) Information on significant customers

There is no individual customer comprising more than 10% of the Group’s revenue for the three-month periods ended March 31, 2020 and 2019.

5. Classification of Financial Instruments

(1) Classification of financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		—		1,458,491		—		1,458,491
Current financial assets
Current financial assets at fair value through profit or loss		1,313,009		—		—		—		1,313,009
Current financial assets at amortized costs		—		—		12,316		—		12,316
Current derivative assets		6,501		—		—		145,256		151,757
Other financial assets		—		—		1,987,870		—		1,987,870
Trade and other receivables		—		—		6,673,798		—		6,673,798
		1,319,510		—		10,132,475		145,256		11,597,241
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		662,540		—		—		—		662,540
Non-current financial assets at fair value through other comprehensive income		—		304,425		—		—		304,425
Non-current financial assets at amortized costs		—		—		1,317		—		1,317
Non-current derivative assets		444,096		—		—		260,440		704,536
Other financial assets		—		—		1,312,137		—		1,312,137
Trade and other receivables		—		—		2,060,052		—		2,060,052
		1,106,636		304,425		3,373,506		260,440		5,045,007
	W	2,426,146		304,425		13,505,981		405,696		16,642,248

17

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won	December 31, 2019
	Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
Current assets
Cash and cash equivalents	W	—		—		1,810,129		—		1,810,129
Current financial assets
Current financial assets at fair value through profit or loss		131,385		—		—		—		131,385
Current financial assets at amortized costs		—		—		12,302		—		12,302
Current derivative assets		21		—		—		27,597		27,618
Other financial assets		—		—		1,415,204		—		1,415,204
Trade and other receivables		—		—		7,701,452		—		7,701,452
		131,406		—		10,939,087		27,597		11,098,090
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss		615,876		—		—		—		615,876
Non-current financial assets at fair value through other comprehensive income		—		379,170		—		—		379,170
Non-current financial assets at amortized costs		—		—		1,307		—		1,307
Non-current derivative assets		165,183		—		—		118,232		283,415
Other financial assets		—		—		1,283,730		—		1,283,730
Trade and other receivables		—		—		2,002,297		—		2,002,297
		781,059		379,170		3,287,334		118,232		4,565,795
	W	912,465		379,170		14,226,421		145,829		15,663,885

18

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
Current liabilities
Borrowings	W—			286,926		—		286,926
Debt securities		—		7,555,473		—		7,555,473
Derivative liabilities		9,204		—		83,227		92,431
Trade and other payables		—		5,652,069		—		5,652,069
		9,204		13,494,468		83,227		13,586,899
Non-current liabilities
Borrowings		—		3,605,389		—		3,605,389
Debt securities		—		57,540,519		—		57,540,519
Derivative liabilities		75,819		—		57,081		132,900
Trade and other payables		—		7,139,179		—		7,139,179
		75,819		68,285,087		57,081		68,417,987
	W	85,023		81,779,555		140,308		82,004,886

In millions of won	December 31, 2019
	Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
Current liabilities
Borrowings	W	—		1,315,134		—		1,315,134
Debt securities		—		7,542,705		—		7,542,705
Derivative liabilities		13,286		—		59,778		73,064
Trade and other payables		—		6,649,402		—		6,649,402
		13,286		15,507,241		59,778		15,580,305
Non-current liabilities
Borrowings		—		3,389,743		—		3,389,743
Debt securities		—		55,628,959		—		55,628,959
Derivative liabilities		39,861		—		57,035		96,896
Trade and other payables		—		6,965,760		—		6,965,760
		39,861		65,984,462		57,035		66,081,358
	W	53,147		81,491,703		116,813		81,661,663

19

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income (loss) from financial instruments for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won		March 31, 2020			March 31, 2019
Cash and cash equivalents	Interest income	W	28,455			17,895
Financial assets at fair value through profit or loss	Interest income		2,722			686
	Gain on valuation of financial assets		6,000			4,265
	Gain (loss) on disposal of financial assets		(47	)		792
Financial assets at fair value through other comprehensive income	Dividends income		42			1,313
Financial assets at amortized cost	Interest income		90			18
Loans	Interest income		2,157			12,674
Trade and other receivables	Interest income		12,493			19,028
Short-term financial instruments	Interest income		8,502			10,851
Long-term financial instruments	Interest income		2,862			1
Other financial assets	Interest income		9,225			151
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities		357,508			346,950
	Interest expense of trade and other payables		50,793			28,377
	Interest expense of others		108,082			128,050
	Other finance income		149			—
	Loss on foreign currency transactions and translations		(694,693	)		(198,850	)
Derivatives (trading)	Gain on valuation of derivatives (profit or loss)		248,820			81,910
	Gain on transaction of derivatives		20,336			13,001
Derivatives (applying hedge accounting)	Gain on valuation of derivatives (profit or loss)		228,175			73,667
	Gain on valuation of derivatives (equity, before tax)		32,343			14,634
	Gain on transaction of derivatives		7,580			12,481

20

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

6. Restricted Deposits

Restricted deposits as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020	December 31, 2019
Cash and cash equivalents	Deposits for government project	W8,215		9,287
	Collateral provided for borrowings	81,269		63,198
	Collateral provided for lawsuit	2		3
	Deposits for transmission regional support program	7,868		3,002
Short-term financial instruments	Restriction on withdrawal related to‘win-win growth program’ for small and medium enterprises	93,000		93,000
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants	557,693		541,969
Long-term financial instruments	Escrow	98		74
	Guarantee deposits for banking accounts at oversea branches	344		326
	Collateral provided for borrowings	11,745		11,745
	Decommissioning costs of nuclear power plants	268,073		250,464
	Funds for developing small and medium enterprises (*)	200,000		200,000
		W1,228,307		1,173,068

(*) Deposits for small and medium enterprise at IBK and others for construction of Bitgaram Energy Valley and support for high potential businesses as of March 31, 2020 and December 31, 2019.

7. Cash and Cash Equivalents

Cash and cash equivalents as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Cash	W	1,059		266
Other demand deposits		1,024,726		1,117,499
Short-term deposits classified as cash equivalents		373,040		527,235
Short-term investments classified as cash equivalents		59,666		165,129
	W	1,458,491		1,810,129

21

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables

(1) Trade and other receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	6,210,754		(224,522	)		—			5,986,232
Other receivables		717,278		(27,761	)		(1,951	)		687,566
		6,928,032		(252,283	)		(1,951	)		6,673,798
Non-current assets
Trade receivables		329,374		(221	)		(330	)		328,823
Other receivables		1,826,199		(90,178	)		(4,792	)		1,731,229
		2,155,573		(90,399	)		(5,122	)		2,060,052
	W	9,083,605		(342,682	)		(7,073	)		8,733,850

In millions of won	December 31, 2019
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Trade receivables	W	7,147,683		(208,505	)		—			6,939,178
Other receivables		792,147		(27,579	)		(2,294	)		762,274
		7,939,830		(236,084	)		(2,294	)		7,701,452
Non-current assets
Trade receivables		338,261		(4,254	)		(382	)		333,625
Other receivables		1,759,930		(86,576	)		(4,682	)		1,668,672
		2,098,191		(90,830	)		(5,064	)		2,002,297
	W	10,038,021		(326,914	)		(7,358	)		9,703,749

22

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(2) Other receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	271,672		(27,433	)		—			244,239
Accrued income		96,641		—			—			96,641
Deposits		269,334		—			(1,951	)		267,383
Finance lease receivables		65,172		(328	)		—			64,844
Others		14,459		—			—			14,459
		717,278		(27,761	)		(1,951	)		687,566
Non-current assets
Non-trade receivables		188,665		(80,397	)		—			108,268
Accrued income		3,371		—			—			3,371
Deposits		357,958		—			(4,792	)		353,166
Finance lease receivables		1,165,814		(365	)		—			1,165,449
Others		110,391		(9,416	)		—			100,975
		1,826,199		(90,178	)		(4,792	)		1,731,229
	W	2,543,477		(117,939	)		(6,743	)		2,418,795

In millions of won	December 31, 2019
	Gross amount		Allowance for doubtful accounts			Present value discount			Book value
Current assets
Non-trade receivables	W	376,438		(27,201	)		—			349,237
Accrued income		68,921		—			—			68,921
Deposits		273,887		—			(2,294	)		271,593
Finance lease receivables		60,304		(378	)		—			59,926
Others		12,597		—			—			12,597
		792,147		(27,579	)		(2,294	)		762,274
Non-current assets
Non-trade receivables		196,821		(78,654	)		—			118,167
Accrued income		2,222		—			—			2,222
Deposits		338,989		—			(4,682	)		334,307
Finance lease receivables		1,118,537		(484	)		—			1,118,053
Others		103,361		(7,438	)		—			95,923
		1,759,930		(86,576	)		(4,682	)		1,668,672
	W	2,552,077		(114,155	)		(6,976	)		2,430,946

(3) Trade and other receivables are classified as financial assets at amortized cost and are measured using the effective interest rate method. No interest is accrued for trade receivables related to electricity for the duration between the billing date and the payment due dates. But once trade receivables are overdue, the Group imposes a monthly interest rate of 1.5% on the overdue trade receivables. The Group holds deposits of three months’ expected electricity usage for customers requesting temporary usage and customers with delinquent payments.

23

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Trade receivables: (not overdue)	W	6,227,864			7,338,757
Trade receivables: (impairment reviewed)		312,264			147,187
Less than 60 days		4,132			6,555
60 ~ 90 days		41,277			1,899
90 ~ 120 days		12,376			2,106
120 days ~ 1 year		59,829			37,357
Over 1 year		194,650			99,270
		6,540,128			7,485,944
Less: allowance for doubtful accounts		(224,743	)		(212,759	)
Less: present value discount		(330	)		(382	)
	W	6,315,055			7,272,803

At the end of each reporting period, the Group assesses whether the credit to trade receivables is impaired. The Group 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 Group recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5) Changes in the allowance for doubtful accounts for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020						December 31, 2019
	Trade receivables			Other receivables			Trade receivables			Other receivables
Beginning balance	W	212,759			114,155			215,868			104,726
Bad debts expense		21,310			34			29,221		��	19,206
Write-off, etc.		(2,694	)		665			(10,106	)		(1,146	)
Reversal		(2,833	)		(24	)		(41,940	)		—
Others		(3,799	)		3,109			19,716			(8,631	)
Ending balance	W	224,743			117,939			212,759			114,155

24

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

9. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Financial assets at fair value through profit or loss
Beneficiary Certificate	W	—		200,594		894		160,952
Cooperative		—		32,888		—		5,155
Others (*)		1,313,009		226,775		130,491		244,857
		1,313,009		460,257		131,385		410,964
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives		—		154,978		—		150,916
Others		—		47,305		—		53,996
		—		202,283		—		204,912
	W	1,313,009		662,540		131,385		615,876

(*) ‘Others’ include MMT, etc.

25

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income

(1) Changes in financial assets at fair value through other comprehensive income for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Acquisitions		Disposals		Valuation			Others			Ending balance
Listed	W	201,201		—		—		(73,636	)		(538	)		127,027
Unlisted		177,969		—		—		(141	)		(430	)		177,398
		379,170		—		—		(73,777	)		(968	)		304,425
Current financial assets at fair value through other comprehensive income	W	—		—		—		—			—			—
Non-current financial assets at fair value through other comprehensive income		379,170		—		—		(73,777	)		(968	)		304,425

In millions of won	December 31, 2019
	Beginning balance		Acquisitions		Disposals			Valuation			Others		Ending balance
Listed	W	210,055		—		—			(11,734	)		2,880		201,201
Unlisted		189,439		1,876		(19,315	)		3,715			2,254		177,969
		399,494		1,876		(19,315	)		(8,019	)		5,134		379,170
Current financial assets at fair value through other comprehensive income	W	—		—		—			—			—		—
Non-current financial assets at fair value through other comprehensive income		399,494		1,876		(19,315	)		(8,019	)		5,134		379,170

26

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income, Continued

(2) Financial assets at fair value through other comprehensive income as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		70,186		70,186
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		55		55
SM Korea Line Corp.		18		0.00	%		1		—		—
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%		15		—		—
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		57		57
PAN Ocean Co., Ltd.		1,492		0.00	%		14		4		4
Dongbu Corp.		955		0.00	%		12		7		7
KSP Co., Ltd.		22,539		0.06	%		24		26		26
STX Heavy Industries Co., Ltd.		8,639		0.05	%		213		14		14
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		35,545		35,545
Energy Fuels Inc.		1,711,814		1.91	%		16,819		2,435		2,435
Bunji Corporation Limited		99,763		0.07	%		18,445		—		—
Denison Mines Corp.		58,284,000		10.42	%		84,134		18,591		18,591
Fission 3.0		75,000		0.14	%		—		3		3
Fission Uranium Corp.		700,000		0.16	%		785		103		103
							359,339		127,027		127,027
Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
PT. Kedap Sayaaq		671		10.00	%		18,540		—		—
Set Holding (*2)		1,100,220		2.50	%		229,255		166,865		166,865
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,742		2,742
Seobu Highway Solar Co., Ltd.		19,460		2.86	%		195		195		195
Dongbu Highway Solar Co., Ltd.		19,020		4.99	%		190		190		190
Others (*3)							9,956		6,252		6,252
							265,948		177,398		177,398
						W	625,287		304,425		304,425

(*1) The Group 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 Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the three-month periods ended March 31, 2020.

(*3) Equity securities acquired throughdebt-for-equity swaps of electricity rate bonds, etc. It consists of 245 companies including Borneo Co., Ltd.

27

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

10. Financial assets at fair value through other comprehensive income, Continued

(2) Financial assets at fair value through other comprehensive income as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won	December 31, 2019
	Shares		Ownership			Acquisition cost		Book value		Fair value
Listed
Korea District Heating Corp.		2,264,068		19.55	%	W	173,201		107,090		107,090
Ssangyong Motor Co., Ltd.		38,568		0.03	%		428		80		80
SM Korea Line Corp.		18		0.00	%		1		—		—
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%		15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%		2		—		—
ELCOMTEC Co., Ltd.		32,875		0.04	%		217		52		52
PAN Ocean Co., Ltd.		1,492		0.00	%		14		7		7
Dongbu Corp.		955		0.00	%		12		8		8
KSP Co., Ltd.		22,539		0.06	%		24		40		40
STX Heavy Industries Co., Ltd.		8,639		0.03	%		213		26		26
Codes Combine Co., Ltd.		291		0.00	%		1		1		1
PT Adaro Energy Tbk		480,000,000		1.50	%		65,028		62,026		62,026
Energy Fuels Inc.		1,711,814		1.91	%		16,819		3,764		3,764
Bunji Corporation Limited		99,763		0.07	%		18,445		—		—
Denison Mines Corp.		58,284,000		10.42	%		84,134		27,903		27,903
Fission 3.0		75,000		0.14	%		—		5		5
Fission Uranium Corp.		800,000		0.16	%		785		199		199
							359,339		201,202		201,202
Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%		5,000		954		954
Seobu Highway Solar Co., Ltd.		19,460		10.00	%		192		192		192
Dongbu Highway Solar Co., Ltd.		19,020		4.99	%		192		192		192
Muan Sunshine Solar Power Plant Co., Ltd.		298,300		19.00	%		1,491		1,491		1,491
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
PT. Kedap Sayaaq		671		10.00	%		18,540		—		—
Set Holding (*2)		1,100,220		2.50	%		229,255		166,863		166,863
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,596		2,596
Others (*3)		—					9,235		5,480		5,480
							266,717		177,968		177,968
						W	626,056		379,170		379,170

(*1) The Group 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 Group has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2019.

(*3) Equity securities acquired throughdebt-for-equity swaps of electricity rate bonds, etc. It consists of 224 companies including Borneo Co., Ltd.

28

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

11. Financial assets at amortized cost

Financial assets at amortized cost as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value
Government bonds	W	1,633		—		—		—		1,633
Others		12,000		—		—		—		12,000
	W	13,633		—		—		—		13,633
Current	W	12,316		—		—		—		12,316
Non-current		1,317		—		—		—		1,317
In millions of won	December 31, 2019
	Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value
Government bonds	W	1,609		—		—		—		1,609
Others		12,000		—	��	—		—		12,000
	W	13,609		—		—		—		13,609
Current	W	12,302		—		—		—		12,302
Non-current		1,307		—		—		—		1,307

12. Derivatives

(1) Derivatives as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Derivative assets
Currency forward	W	6,502		77,555		21		43,931
Currency swap		145,255		614,201		27,597		229,258
Interest rate swap		—		10,146		—		7,592
Others (*1)		—		2,634		—		2,634
	W	151,757		704,536		27,618		283,415
Derivative liabilities
Currency forward	W	2,999		—		7,081		—
Currency swap		82,230		50,326		59,327		45,184
Interest rate swap		997		81,565		451		50,756
Others (*2, 3)		6,205		1,009		6,205		956
	W	92,431		132,900		73,064		96,896

(*1) As described in Note 16, the Group has a right to purchase the shares of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Group, and the amount is the fair value of the stock option.

(*2) As described in Note 46, the Group has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’.

(*3) The Group has granted stock option to Chester Solar IV SpA, a joint venture of the Group, and other 4 investors, and recognized its evaluated amount as other derivative liabilities.

29

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of March 31, 2020 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
Hana Bank		2014.04.10		2021.07.12	W	55,120		USD 52,000	W	1,060.00
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
Hana Bank		2014.05.09		2021.07.12		104,600		USD 100,000		1,046.00
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
Woori Bank		2020.03.10		2020.04.08		5,966		USD 5,000		1,193.14
Hana Bank		2020.03.18		2020.04.09		6,166		USD 5,000		1,233.20
Kookmin Bank		2020.03.19		2020.04.10		6,296		USD 5,000		1,259.10
Hana Bank		2020.03.19		2020.04.10		6,367		USD 5,000		1,273.30
Hana Bank		2020.03.19		2020.04.10		3,823		USD 3,000		1,274.30
Hana Bank		2020.03.20		2020.04.13		6,353		USD 5,000		1,270.55
Hana Bank		2020.03.20		2020.04.13		6,323		USD 5,000		1,264.55
CCB		2020.03.20		2020.04.16		6,270		USD 5,000		1,254.00
Morgan Stanley		2020.03.20		2020.04.17		6,237		USD 5,000		1,247.30
Woori Bank		2020.03.20		2020.04.22		6,206		USD 5,000		1,241.20
Kookmin Bank		2020.03.23		2020.04.20		3,792		USD 3,000		1,264.00
Hana Bank		2020.03.27		2020.04.24		6,126		USD 5,000		1,225.15
Korea Development Bank		2020.03.31		2020.04.27		6,096		USD 5,000		1,219.20
MUFG		2020.03.11		2020.04.02		2,385		USD 2,000		1,192.55
Korea Development Bank		2020.03.20		2020.04.06		2,519		USD 2,000		1,259.60
Korea Development Bank		2020.03.24		2020.04.06		1,254		USD 1,000		1,254.00
Korea Development Bank		2020.03.24		2020.04.02		1,254		USD 1,000		1,254.35
Korea Development Bank		2020.03.25		2020.04.13		9,841		USD 8,000		1,230.10
Korea Development Bank		2020.03.26		2020.04.13		4,909		USD 4,000		1,227.25
Hana Bank		2020.03.26		2020.04.13		4,908		USD 4,000		1,227.00
Hana Bank		2020.03.27		2020.04.13		8,484		USD 7,000		1,211.95
HSBC		2020.03.05		2020.04.09		5,315		USD 4,500		1,181.00
Credit Agricole		2020.03.10		2020.04.13		8,357		USD 7,000		1,193.90
Mizuho Bank		2020.03.25		2020.04.20		7,352		USD 6,000		1,225.30
HSBC		2020.03.27		2020.04.07		6,034		USD 5,000		1,206.70
Nonghyup Bank		2020.03.27		2020.04.10		12,087		USD 10,000		1,208.70
Mizuho Bank		2020.03.27		2020.04.17		6,032		USD 5,000		1,206.30
Nonghyup Bank		2020.03.31		2020.04.24		6,083		USD 5,000		1,216.60
Mizuho Bank		2020.03.31		2020.04.24		6,080		USD 5,000		1,215.90
HSBC		2020.03.31		2020.04.24		6,076		USD 5,000		1,215.15
HSBC		2019.12.13		2020.09.10		46,580		USD 40,000		1,164.50
Nova Scotia		2019.12.13		2020.09.10		34,959		USD 30,000		1,165.30
Nova Scotia		2019.12.16		2020.12.03		11,657		USD 10,000		1,165.70
Nonghyup Bank		2019.12.16		2020.12.03		23,324		USD 20,000		1,166.20
Hana Bank		2020.03.17		2020.04.06		9,916		USD 8,000		1,239.45
Hana Bank		2020.03.19		2020.04.13		7,697		USD 6,000		1,282.75
Mizuho Bank		2020.03.24		2020.04.13		11,289		USD 9,000		1,254.35
Suhyup Bank		2020.03.25		2020.04.23		9,808		USD 8,000		1,226.00

30

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of March 31, 2020 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
Hana Bank		2020.03.26		2020.04.23	W	8,569		USD     7,000	W	1,224.20
Mizuho Bank		2020.03.26		2020.04.23		6,125		USD 5,000		1,225.00
Nova Scotia		2020.03.27		2020.04.13		6,108		USD 5,000		1,221.50
BNP Paribas		2020.03.27		2020.04.06		7,288		USD 6,000		1,214.70
Hana Bank		2020.03.27		2020.04.06		7,289		USD 6,000		1,214.80
Standard Chartered		2020.03.03		2020.04.06		2,642		USD 2,220		1,190.25
Shinhan Bank		2020.03.06		2020.04.06		7,147		USD 6,000		1,191.22
Nova Scotia		2020.03.06		2020.04.10		3,569		USD 3,000		1,189.80
Nova Scotia		2020.03.06		2020.04.10		3,564		USD 3,000		1,187.90
Woori Bank		2020.03.19		2020.04.16		490		USD 380		1,288.30
Woori Bank		2020.03.19		2020.04.10		3,452		USD 2,700		1,278.60
Woori Bank		2020.03.25		2020.04.20		5,097		USD 4,150		1,228.20
Nova Scotia		2020.03.26		2020.04.20		5,522		USD 4,500		1,227.20
Hana Bank		2019.07.31		2020.07.14		4,993		USD 4,257		1,173.00

31

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
Counterparty			Contract amounts				Contract interest rate		Contract exchange rate (in won, USD)
	Contract year		Pay		Receive		Pay	Receive
Standard Chartered		2014~2029	W	102,470		USD     100,000	3.14%	3.57%	W	1,024.70
Societe Generale		2014~2024		105,017		USD 100,000	4.92%	5.13%		1,050.17
Hana Bank		2015~2024		107,970		USD 100,000	4.75%	5.13%		1,079.70
Credit Agricole		2015~2024		94,219		USD 86,920	4.85%	5.13%		1,083.97
Woori Bank		2019~2027		21,708		USD 19,417	5.04%	6.75%		1,118.00
Woori Bank		2019~2024		296,000		USD 250,000	1.21%	2.50%		1,184.00
Korea Development Bank		2019~2024		177,600		USD 150,000	1.24%	2.50%		1,184.00
Hana Bank		2019~2024		118,400		USD 100,000	1.24%	2.50%		1,184.00
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
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
Nomura		2015~2025		111,190		USD 100,000	2.60%	3.25%		1,111.90
Korea Development Bank		2015~2025		111,190		USD 100,000	2.62%	3.25%		1,111.90
Woori Bank		2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Hana Bank		2015~2025		55,595		USD 50,000	2.62%	3.25%		1,111.90
Woori Bank		2017~2027		111,610		USD 100,000	2.25%	3.13%		1,116.10
Korea Development Bank		2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Hana Bank		2017~2027		111,610		USD 100,000	2.31%	3.13%		1,116.10
Korea Development Bank		2018~2028		108,600		HKD 800,000	2.69%	3.35%		135.75
Shinhan Bank		2018~2028		115,387		HKD 850,000	2.66%	3.35%		135.75
Korea Development Bank		2018~2023		170,280		USD 150,000	2.15%	3.75%		1,135.20
Woori Bank		2018~2023		170,280		USD 150,000	2.18%	3.75%		1,135.20
Hana Bank		2018~2023		113,520		USD 100,000	2.17%	3.75%		1,135.20
Shinhan Bank		2018~2023		227,040		USD 200,000	2.17%	3.75%		1,135.20
Citibank		2019~2024		239,956		CHF 200,000	1.44%	0.00%		1,199.78
Korea Development Bank		2019~2027		119,978		CHF 100,000	1.43%	0.05%		1,199.78
HSBC		2019~2024		USD   205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%		USD 0.69

32

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies except contract exchange rate information
			Contract amounts				Contract interest rate		Contract exchange rate (in won, USD)
Counterparty	Contract year		Pay		Receive		Pay	Receive
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%		USD 0.94
Standard Chartered		2014~2020		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
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
Kookmin Bank		2020~2025		118,780		USD 100,000	1.29%	2.13%		1,187.80
Shinhan Bank		2020~2025		118,780		USD 100,000	1.29%	2.13%		1,187.80
Hana Bank		2020~2025		118,780		USD 100,000	1.29%	2.13%		1,187.80
Korea Development Bank		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
Korea Development Bank		2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Kookmin Bank		2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Woori Bank		2019~2022		112,650		USD 100,000	1.80%	3.38%		1,126.50
Korea Development Bank		2018~2023		320,880		USD 300,000	2.03%	3.75%		1,069.60
BNP Paribas		2019~2024		111,841		CHF 100,000	1.78%	0.13%		1,118.41
Kookmin Bank		2019~2024		111,841		CHF 100,000	1.78%	0.13%		1,118.41
Korea Development Bank		2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
Hana Bank		2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
Kookmin Bank		2019~2022		117,340		USD 100,000	1.06%	2.38%		1,173.40
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
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
Hana Bank		2014~2020		55,340		USD 50,000	2.16%	2.50%		1,106.80
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
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	2.26%	3.88%		1,128.90
Woori Bank		2018~2023		169,335		USD 150,000	2.26%	3.88%		1,128.90
Credit Agricole		2018~2023		112,890		USD 100,000	2.26%	3.88%		1,128.90
Hana Bank		2018~2023		56,445		USD 50,000	2.26%	3.88%		1,128.90
Kookmin Bank		2018~2023		56,445		USD 50,000	2.26%	3.88%		1,128.90

33

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of USD					Contract interest rate per annum
Counterparty	Contract year		Contract amount		Pay	Receive
Hana Bank		2017~2022	W	100,000	2.01%	3M CD + 0.24%
Hana Bank		2017~2022		100,000	2.06%	3M CD + 0.27%
Nomura (*1)		2017~2037		30,000	2.05%	3.08%
Hana Bank		2017~2021		200,000	2.45%	3M CD + 0.32%
Nomura (*2)		2018~2038		30,000	2.56%	3.75%
Hana Bank		2018~2023		200,000	2.15%	3M CD + 0.19%
Hana Bank		2018~2023		200,000	2.17%	3M CD + 0.19%
Hana Bank		2018~2023		150,000	2.03%	3M CD + 0.21%
Hana Bank		2019~2024		200,000	1.87%	3M CD + 0.13%
Societe Generale		2017~2022		200,000	3M Libor + 3.44%	3.77%
Nomura		2017~2027		52,457	3M Libor + 2.25%	2.60%
Nomura		2017~2027		59,423	3M Libor + 2.27%	2.62%
Export-import bank of Korea		2015~2031		USD 15,893	2.67%	6M USD Libor
ING Bank		2015~2031		USD 7,861	2.67%	6M USD Libor
BNP Paribas		2015~2031		USD 7,861	2.67%	6M USD Libor

(*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. Depending on exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from September 18, 2022.

(*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. Depending on exercise of counterparty’s right, it can be reimbursed before the due on the same day of every year starting from June 15, 2023.

(6) Interest rate swap contracts which are designated as hedging instruments as of March 31, 2020 are as follows:

In millions of won and thousands of USD					Contract interest rate per annum
Counterparty	Contract year		Contract amount		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
Export-import bank of Korea		2016~2036		USD 80,514	3.00%		6M USD Libor

34

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

12. Derivatives, Continued

(7) Gains and losses on valuation and transaction of derivatives for the three-month periods ended March 31, 2020 and 2019 are as follows and included in finance income and expenses in the consolidated 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) (*)
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019			March 31, 2020		March 31, 2019
Currency forward	W	38,922			15,049			13,537			5,097			—		—
Currency swap		455,934			147,428			15,690			20,620			18,487		21,592
Interest rate swap		(16,876	)		(6,900	)		(1,311	)		(235	)		13,856		(6,958	)
Other derivatives		(985	)		—			—			—			—		—
	W	476,995			155,577			27,916			25,482			32,343		14,634

(*) For the three-month period ended March 31, 2020, the net gain on valuation of derivatives applying cash flow hedge accounting ofW24,017 million, net of tax, is included in other comprehensive income (loss).

35

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

13. Other Financial Assets

(1) Other financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020						December 31, 2019
	Current			Non-current			Current			Non-current
Loans	W	73,390			739,459			64,111			725,755
Less: allowance for doubtful accounts		(8	)		(15,087	)		(31	)		(15,063	)
Less: present value discount		(987	)		(34,526	)		(847	)		(35,218	)
Long-term / short-term financial instruments		1,915,475			622,291			1,351,971			608,256
	W	1,987,870			1,312,137			1,415,204			1,283,730

(2) Loans as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Face value		Allowance for doubtful accounts			Present value discount			Book value
Short-term loans
Loans for tuition	W	36,939		—			(987	)		35,952
Loans for housing		18,646		—			—			18,646
Other loans		17,805		(8	)		—			17,797
		73,390		(8	)		(987	)		72,395
Long-term loans
Loans for tuition		427,611		—			(34,526	)		393,085
Loans for housing		211,721		—			—			211,721
Loans for related parties		83,476		(4,930	)		—			78,546
Other loans		16,651		(10,157	)		—			6,494
		739,459		(15,087	)		(34,526	)		689,846
	W	812,849		(15,095	)		(35,513	)		762,241

In millions of won	December 31, 2019
	Face value		Allowance for doubtful accounts			Present value discount			Book value
Short-term loans
Loans for tuition	W	33,636		—			(847	)		32,789
Loans for housing		17,113		—			—			17,113
Other loans		13,362		(31	)		—			13,331
		64,111		(31	)		(847	)		63,233
Long-term loans
Loans for tuition		419,905		—			(35,197	)		384,708
Loans for housing		199,454		—			—			199,454
Loans for related parties		89,132		(4,930	)		—			84,202
Other loans		17,264		(10,133	)		(21	)		7,110
		725,755		(15,063	)		(35,218	)		675,474
	W	789,866		(15,094	)		(36,065	)		738,707

36

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Beginning balance	W	15,094		4,952
Bad debts expense		1		10,142
Ending balance	W	15,095		15,094

(4) Long-term and short-term financial instruments as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Time deposits	W	1,507,670		271,850		1,034,971		257,857
CP		109,478		—		40,000		—
CD		5,000		—		15,000		—
RP		70,104		—		40,000		—
Others		223,223		350,441		222,000		350,399
	W	1,915,475		622,291		1,351,971		608,256

37

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

14. Inventories

Inventories as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Acquisition cost		Valuation allowance			Book value
Raw materials	W	3,692,985		(1,430	)		3,691,555
Merchandises		375		—			375
Work-in-progress		170,568		—			170,568
Finished goods		25,966		—			25,966
Supplies		2,120,230		(4,593	)		2,115,637
Inventories-in-transit		851,061		—			851,061
Other inventories		15,037		—			15,037
	W	6,876,222		(6,023	)		6,870,199

In millions of won	December 31, 2019
	Acquisition cost		Valuation allowance			Book value
Raw materials	W	3,790,443		(1,430	)		3,789,013
Merchandises		340		—			340
Work-in-progress		165,073		—			165,073
Finished goods		58,280		—			58,280
Supplies		2,121,363		(4,369	)		2,116,994
Inventories-in-transit		906,267		—			906,267
Other inventories		14,733		—			14,733
	W	7,056,499		(5,799	)		7,050,700

The reversal 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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 wereW580 million andW4,872 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 wereW804 million andW3,127 million, respectively.

38

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

15. Non-Financial Assets

Non-financial assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Advance payment	W	150,749		54,921		147,784		2,694
Prepaid expenses		269,113		154,219		308,017		84,421
Others (*1)		803,157		48,360		750,576		79,814
	W	1,223,019		257,500		1,206,377		166,929

(*1) Details of others as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Greenhouse gas emissions rights	W	557,298		—		437,562		—
Other quick assets (*2)		245,859		48,360		313,014		79,814
	W	803,157		48,360		750,576		79,814

(*2) During the year ended December 31, 2019, the Group converted its loans with Orano Expansion into equity. The Group recognized an impairment loss ofW49,201 million as it was determined that there is objective evidence of impairment related to the rights of equity interest in Orano Expansion.

39

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows:

Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
			March 31, 2020			December 31, 2019
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	%
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 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		80.00	%		80.00	%
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		100.00	%		100.00	%
EWP Barbados 1 SRL	Holding company	BARBADOS		100.00	%		100.00	%
California Power Holdings, LLC	Power generation	USA		100.00	%		100.00	%
Gyeonggi Green Energy Co., Ltd.	Power generation	KOREA		62.01	%		62.01	%
PT. Tanggamus Electric Power	Power generation	INDONESIA		52.50	%		52.50	%
Gyeongju Wind Power Co., Ltd.	Power generation	KOREA		70.00	%		70.00	%
KOMIPO America Inc.	Holding company	USA		100.00	%		100.00	%
EWPRC Biomass Holdings, LLC	Holding company	USA		100.00	%		100.00	%
KOSEP USA, INC.	Power generation	USA		100.00	%		100.00	%
PT. EWP Indonesia	Holding company	INDONESIA		99.96	%		99.96	%

40

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows, continued:

Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
			March 31, 2020			December 31, 2019
KEPCO Netherlands J3 B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
Korea Offshore Wind Power Co., Ltd.	Power generation	KOREA		100.00	%		100.00	%
Global One Pioneer B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
Global Energy Pioneer B.V.	Holding company	NETHERLANDS		100.00	%		100.00	%
Mira Power Limited (*3)	Power generation	PAKISTAN		76.00	%		76.00	%
KOSEP Material Co., Ltd.	Recycling fly ashes	KOREA		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd. (*4)	Power generation	KOREA		85.00	%		85.00	%
KEPCO KPS Philippines Corp.	Utility plant maintenance and others	PHILIPPINES		99.99	%		99.99	%
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	%
VI 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		99.01	%		99.01	%
KOEN Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOMIPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOWEPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOSPO Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
EWP Bylong Pty., Ltd.	Resources development	AUSTRALIA		100.00	%		100.00	%
KOWEPO Lao International	Utility plant maintenance and others	LAOS		100.00	%		100.00	%
KEPCO US Inc.	Holding company	USA		100.00	%		100.00	%
KEPCO Alamosa LLC	Holding company	USA		50.10	%		50.10	%
KEPCO Solar of Alamosa, LLC	Power generation	USA		100.00	%		100.00	%
KEPCO-LG CNS Mangilao Holdings LLC (*5)	Holding company	USA		70.00	%		70.00	%
Mangilao Investment LLC	Holding company	USA		100.00	%		100.00	%
KEPCO-LG CNS Mangilao Solar, LLC	Power generation	USA		100.00	%		100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	KOREA		75.99	%		75.99	%
PT. Siborpa Eco Power	Construction and operation of utility plant	INDONESIA		55.00	%		55.00	%
BSKE-New Industry Fund VII	Holding company	KOREA		81.67	%		81.67	%
e-New Industry LB Fund 1	Holding company	KOREA		76.11	%		76.11	%
Songhyune-New Industry Fund	Holding company	KOREA		80.65	%		80.65	%
PT. Korea Energy Indonesia	Utility plant maintenance	INDONESIA		95.00	%		95.00	%
KOLAT SpA	Utility plant maintenance and others	CHILE		100.00	%		100.00	%
KEPCO California, LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mojave Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Incheon Fuel Cell Co., Ltd.	Power generation	KOREA		60.00	%		60.00	%
KOEN Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
KOMIPO Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
KOWEPO Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
KOSPO Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
EWP Service Co., Ltd.	Facility maintenance and service	KOREA		100.00	%		100.00	%
PT. KOMIPO Energy Indonesia	Utility plant maintenance and others	INDONESIA		95.00	%		95.00	%
KNF Partners Co., Ltd.	Facility maintenance	KOREA		100.00	%		100.00	%
KOSPO USA Inc.	Holding company	USA		100.00	%		100.00	%
Nambu USA LLC	Holding company	USA		100.00	%		100.00	%
Tamra Offshore Wind Power Co., Ltd.	Power generation	KOREA		63.00	%		63.00	%
KEPCO MCS Co., Ltd.	Electric meter reading and others	KOREA		100.00	%		100.00	%
KEPCO FMS Co., Ltd.	Security service and others	KOREA		100.00	%		100.00	%
Firstkeepers Co., Ltd.	Facility maintenance	KOREA		100.00	%		100.00	%
Secutec Co., Ltd.	Security service	KOREA		100.00	%		100.00	%

41

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of March 31, 2020 and December 31, 2019 are as follows, continued:

Subsidiaries	Key operation activities	Location	Percentage of ownership (%)
			March 31, 2020			December 31, 2019
SE Green Energy Co., Ltd.	Power generation	KOREA		84.80	%		84.80	%
KEPCO Mangilao America LLC	Holding company	USA		100.00	%		100.00	%
Mangilao Intermediate Holdings LLC	Holding company	USA		100.00	%		100.00	%
KEPCO CSC Co., Ltd.	Facility maintenance	KOREA		100.00	%		100.00	%
KOAK Power Limited	Facility maintenance	PAKISTAN		100.00	%		100.00	%
KOMIPO Europe B.V.	Holding company	SWEDEN		100.00	%		100.00	%
Haenanum Energy Fund	Holding company	KOREA		99.64	%		99.64	%
Paju Ecoenergy Co., Ltd.	Power generation	KOREA		89.00	%		89.00	%
Guam Ukudu Power LLC	Power generation	USA		100.00	%		—

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

(*2) The effective percentage of ownership is less than 50%. However, this subsidiary is included in the consolidated financial statements as the Group 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 Group 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 Group 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.

(*5) The Group does not hold a stake, but it is included in subsidiaries because the Group has control overKEPCO-LG CNS Mangilao Holdings LLC with nomination rights among 4 out of 6 board members.

(2) A subsidiary newly included in the consolidation scope during the three-month period ended March 31, 2020 is as follows, and there are no subsidiaries that are excluded from the consolidation scope during the three-month period ended March 31, 2020.

<A subsidiary newly included in the consolidation scope during the three-month period ended March 31, 2020.>

Subsidiary	Reason
Guam Ukudu Power LLC	Newly established

42

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
Korea Hydro & Nuclear Power Co., Ltd.	W	60,047,554		34,281,584		2,485,055		189,483
Korea South-East Power Co., Ltd.		11,400,012		6,251,903		1,333,627		142,461
Korea Midland Power Co., Ltd.		12,552,895		8,809,070		1,232,340		73,907
Korea Western Power Co., Ltd.		10,205,970		6,359,865		1,059,445		(5,078	)
Korea Southern Power Co., Ltd.		10,685,335		6,409,393		1,146,052		28,901
Korea East-West Power Co., Ltd.		9,639,539		4,921,251		1,150,197		31,861
KEPCO Engineering & Construction Company, Inc.		689,412		206,825		89,698		5,043
KEPCO Plant Service & Engineering Co., Ltd.		1,366,462		355,371		248,918		23,086
KEPCO Nuclear Fuel Co., Ltd.		783,067		391,680		76,095		(2,934	)
KEPCO KDN Co., Ltd.		600,072		167,651		130,916		6,158
KEPCO International HongKong Ltd.		146,877		1		—		806
KEPCO International Philippines Inc.		131,303		392		—		17,649
KEPCO Gansu International Ltd.		8,713		576		—		—
KEPCO Philippines Holdings Inc.		173,487		5,657		—		1,014
KEPCO Philippines Corporation		6,680		70		—		(87	)
KEPCO Ilijan Corporation		371,952		64,244		21,717		10,827
KEPCO Lebanon SARL		1,923		10,332		—		(12	)
KEPCO Neimenggu International Ltd.		212,021		—		—		(76	)
KEPCO Shanxi International Ltd.		568,748		223,258		—		(2,608	)
KOMIPO Global Pte., Ltd.		284,389		813		—		473
KEPCO Netherlands B.V.		129,206		112		—		(244	)
KOREA Imouraren Uranium Investment Corp.		14,139		143		—		(605	)
KEPCO Australia Pty., Ltd.		356		13		—		19
KOSEP Australia Pty., Ltd.		31,148		3,914		3,286		(529	)
KOMIPO Australia Pty., Ltd.		38,725		3,934		3,286		(276	)
KOWEPO Australia Pty., Ltd.		39,265		4,095		3,286		(529	)
KOSPO Australia Pty., Ltd.		32,700		2,622		3,286		139
KEPCO Middle East Holding Company		99,778		84,736		—		(88	)
Qatrana Electric Power Company		518,930		335,271		5,395		6,247
KHNP Canada Energy, Ltd.		35,046		39		—		(2	)
KEPCO Bylong Australia Pty., Ltd.		38,437		376,180		—		(49,872	)
Korea Waterbury Uranium Limited Partnership		20,147		166		—		(17	)
KEPCO Holdings de Mexico		150		18		—		(9	)
KST Electric Power Company		591,363		473,207		12,070		22,062
KEPCO Energy Service Company		2,030		1,443		1,467		424
KEPCO Netherlands S3 B.V.		54,110		68		—		903
PT. KOMIPO Pembangkitan Jawa Bali		12,042		5,219		4,713		2,124
PT. Cirebon Power Service		2,067		349		2,143		(199	)
KOWEPO International Corporation		—		11		—		—
KOSPO Jordan LLC		18,509		1,042		1,961		590
EWP Philippines Corporation		1,770		932		—		(6	)
EWP America Inc. (*1)		55,199		2,709		3,267		(1,740	)
KNF Canada Energy Limited		1,853		25		—		(11	)
EWP Barbados 1 SRL		317,326		777		746		22,173
Gyeonggi Green Energy Co., Ltd.	��	226,237		191,861		7,096		(970	)
PT. Tanggamus Electric Power		239,669		212,354		1,111		(5,796	)
Gyeongju Wind Power Co., Ltd.		112,866		76,036		5,001		1,843
KOMIPO America Inc.		9,362		626		—		(576	)
KOSEP USA, Inc.		1		5,435		—		—
PT. EWP Indonesia		32,125		598		—		2,366
KEPCO Netherlands J3 B.V.		126,722		95		—		(17	)
Korea Offshore Wind Power Co., Ltd.		333,352		166,018		6,092		365
Global One Pioneer B.V.		159		57		—		(11	)
Global Energy Pioneer B.V.		337		66		—		(12	)
Mira Power Limited		389,700		299,076		—		(2,012	)
KOSEP Material Co., Ltd.		2,457		1,214		531		(344	)
Commerce and Industry Energy Co., Ltd.		88,667		41,100		7,462		300
KEPCO KPS Philippines Corp.		5,611		1,945		2,503		809

43

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
March 31, 2020
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the period
KOSPO Chile SpA	W	143,445		53,141		—		(130	)
PT. KOWEPO Sumsel Operation And Maintenance Services		107		236		—		(16	)
HeeMang Sunlight Power Co., Ltd.		11,891		8,890		74		(64	)
Fujeij Wind Power Company		239,849		221,327		—		5,336
KOSPO Youngnam Power Co., Ltd.		417,951		321,350		88,060		5,332
VI Carbon Professional Private Special Asset Investment Trust 1		2,997		4		—		(1	)
Chitose Solar Power Plant LLC		143,979		128,313		3,538		148
KEPCO Energy Solution Co., Ltd.		312,305		5,409		895		851
Solar School Plant Co., Ltd.		209,247		3,389		351		398
KOSPO Power Services Limitada		3,278		1,344		2,598		398
Energy New Industry Specialized Investment Private Investment Trust (*2)		216,849		1,798		627		(709	)
KOEN Bylong Pty., Ltd.		4		40		—		—
KOMIPO Bylong Pty., Ltd.		4		40		—		—
KOWEPO Bylong Pty., Ltd.		4		39		—		—
KOSPO Bylong Pty., Ltd.		3		37	��	—		—
EWP Bylong Pty., Ltd.		2		36		—		—
KOWEPO Lao International		7,121		416		2,119		1,583
KEPCO US Inc.		18,173		—		—		—
KEPCO Alamosa LLC		35,280		160		32		(96	)
KEPCO Solar of Alamosa, LLC		68,953		52,498		1,958		(301	)
KEPCO-LG CNS Mangilao Holdings LLC		28,974		32,314		—		(324	)
Mangilao Investment LLC		42,209		—		—		—
KEPCO-LG CNS Mangilao Solar, LLC		41,447		4		—		(119	)
Jeju Hanlim Offshore Wind Co., Ltd.		13,493		473		—		(751	)
PT. Siborpa Eco Power		12,034		12		—		(121	)
PT. Korea Energy Indonesia		1,499		114		617		69
KOLAT SpA		28,918		326		100		4
KEPCO California, LLC		47,236		1,935		—		(245	)
KEPCO Mojave Holdings, LLC		107,680		72,579		—		(1,063	)
Incheon Fuel Cell Co., Ltd.		138,224		116,501		—		(472	)
KOEN Service Co., Ltd.		5,221		4,416		7,888		292
KOMIPO Service Co., Ltd.		3,280		2,611		6,948		(54	)
KOWEPO Service Co., Ltd.		4,403		3,203		7,241		275
KOSPO Service Co., Ltd.		3,873		2,846		6,003		325
EWP Service Co., Ltd.		3,904		3,242		5,693		152
PT. KOMIPO Energy Indonesia		2,198		313		310		(348	)
KNF Partners Co., Ltd.		1,206		800		1,135		(81	)
KOSPO USA Inc.		5,597		131		—		(611	)
Nambu USA LLC		260		1		—		1
Tamra Offshore Wind Power Co., Ltd.		157,739		122,854		4,156		686
KEPCO MCS Co., Ltd.		54,100		39,546		71,173		10,196
KEPCO FMS Co., Ltd.		4,711		8,729		15,905		(4,717	)
Firstkeepers Co., Ltd.		9,501		7,896		15,538		2,853
Secutec Co., Ltd.		7,336		4,925		13,975		2,319
SE Green Energy Co., Ltd.		132,813		105,675		—		2
KEPCO Mangilao America LLC		1,451		—		—		(4	)
Mangilao Intermediate Holdings LLC		40,170		13,573		—		(186	)
KEPCO CSC Co., Ltd.		2,129		2,606		5,840		(1,263	)
KOAK Power Limited		15,367		9		—		(104	)
KOMIPO Europe B.V.		7,533		117		65		(19	)
Haenanum Energy Fund		28,159		34		—		24
Paju Ecoenergy Co., Ltd.		53,839		—		—		—
Guam Ukudu Power LLC		713		—		—		—

44

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

(*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.

In millions of won
December 31, 2019
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
Korea Hydro & Nuclear Power Co., Ltd.	W	59,570,219		33,917,275		8,969,072		306,007
Korea South-East Power Co., Ltd.		10,938,358		5,866,642		5,385,387		41,006
Korea Midland Power Co., Ltd.		12,684,828		8,977,766		4,479,707		(28,449	)
Korea Western Power Co., Ltd.		10,514,438		6,637,451		4,448,992		(46,061	)
Korea Southern Power Co., Ltd.		10,884,799		6,608,301		5,084,907		(41,342	)
Korea East-West Power Co., Ltd.		9,724,311		5,022,921		4,855,964		56,698
KEPCO Engineering & Construction Company, Inc.		735,207		242,994		448,635		26,398
KEPCO Plant Service & Engineering Co., Ltd.		1,356,983		294,757		1,244,613		157,737
KEPCO Nuclear Fuel Co., Ltd.		831,604		429,799		309,055		24,618
KEPCO KDN Co., Ltd.		604,458		159,807		625,567		42,205
KEPCO International HongKong Ltd.		138,942		633		—		3,330
KEPCO International Philippines Inc.		107,224		371		—		67,991
KEPCO Gansu International Ltd.		10,448		545		—		(20	)
KEPCO Philippines Holdings Inc.		200,503		6,656		—		66,200
KEPCO Philippines Corporation		6,706		332		—		(52	)
KEPCO Ilijan Corporation		371,377		56,156		95,072		40,818
KEPCO Lebanon SARL		1,835		9,786		—		255
KEPCO Neimenggu International Ltd.		200,858		—		—		(354	)
KEPCO Shanxi International Ltd.		538,604		208,895		—		151
KOMIPO Global Pte., Ltd.		269,302		463		—		10,400
KEPCO Netherlands B.V.		122,577		101		—		948
KOREA Imouraren Uranium Investment Corp.		14,173		111		—		(49,716	)
KEPCO Australia Pty., Ltd.		364		14		—		(395,914	)
KOSEP Australia Pty., Ltd.		32,782		2,911		15,514		3,935
KOMIPO Australia Pty., Ltd.		40,898		2,909		15,514		3,766
KOWEPO Australia Pty., Ltd.		44,182		5,772		15,514		2,761
KOSPO Australia Pty., Ltd.		37,254		5,012		15,514		2,638
KEPCO Middle East Holding Company		102,164		87,834		—		5,934
Qatrana Electric Power Company		490,723		322,857		20,773		21,807
KHNP Canada Energy, Ltd.		44,639		43		—		(10	)
KEPCO Bylong Australia Pty., Ltd.		45,207		355,163		—		(220,909	)
Korea Waterbury Uranium Limited Partnership		20,717		167		—		(77	)
KEPCO Holdings de Mexico		187		25		—		(14	)
KST Electric Power Company		539,952		449,459		55,783		(20,797	)
KEPCO Energy Service Company		2,262		1,995		5,984		(481	)
KEPCO Netherlands S3 B.V.		50,352		49		—		2,637
PT. KOMIPO Pembangkitan Jawa Bali		12,391		5,719		18,722		4,312
PT. Cirebon Power Service		2,089		313		8,049		406
KOWEPO International Corporation		—		10		—		(2	)
KOSPO Jordan, LLC		17,489		1,521		10,878		2,634
EWP Philippines Corporation		1,691		888		—		(111	)
EWP America Inc. (*1)		66,622		2,619		21,719		(6,497	)
KNF Canada Energy Limited		1,933		24		—		(48	)
EWP Barbados 1 SRL		279,295		1,031		2,914		2,368
Gyeonggi Green Energy Co., Ltd.		194,425		159,078		13,717		(73,394	)
PT. Tanggamus Electric Power		228,601		195,826		2,256		(4,529	)
Gyeongju Wind Power Co., Ltd.		113,745		75,427		15,548		3,384
KOMIPO America Inc.		9,424		593		118		(1,033	)
KOSEP USA, Inc.		1		5,147		—		(119	)
PT. EWP Indonesia		34,455		5		—		5,124

45

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
KEPCO Netherlands J3 B.V.	W	120,006		74		—		(79	)
Korea Offshore Wind Power Co., Ltd.		284,495		117,527		—		(12,768	)
Global One Pioneer B.V.		180		73		—		(86	)
Global Energy Pioneer B.V.		348		80		—		(90	)
Mira Power Limited		356,111		285,577		—		(971	)
KOSEP Material Co., Ltd.		2,788		1,186		3,357		22
Commerce and Industry Energy Co., Ltd.		90,637		43,985		32,728		(7,532	)
KEPCO KPS Philippines Corp.		5,198		1,341		6,246		2
KOSPO Chile SpA		134,827		49,183		—		(456	)
PT. KOWEPO Sumsel Operation And Maintenance Services		135		262		—		(1,104	)
HeeMang Sunlight Power Co., Ltd.		12,185		8,545		643		75
Fujeij Wind Power Company		218,333		196,964		—		5,515
KOSPO Youngnam Power Co., Ltd.		398,495		307,226		318,338		3,514
VI Carbon Professional Private Special Asset Investment Trust 1		3,002		—		—		12
Chitose Solar Power Plant LLC		121,457		106,254		17,103		5,480
KEPCO Energy Solution Co., Ltd.		308,188		2,142		2,843		2,805
Solar School Plant Co., Ltd.		208,730		3,269		1,962		2,553
KOSPO Power Services Limitada		3,244		1,564		10,013		452
Energy New Industry Specialized Investment Private Investment Trust (*2)		100,116		17,359		2,418		(7,735	)
KOEN Bylong Pty., Ltd.		—		39		—		(14	)
KOMIPO Bylong Pty., Ltd.		4		43		—		(14	)
KOWEPO Bylong Pty., Ltd.		4		40		—		(12	)
KOSPO Bylong Pty., Ltd.		4		40		—		(12	)
EWP Bylong Pty., Ltd.		4		40		—		(12	)
KOWEPO Lao International		5,430		575		4,308		1,584
KEPCO US Inc.		17,231		—		—		—
KEPCO Alamosa LLC		33,515		183		145		(311	)
KEPCO Solar of Alamosa, LLC		65,468		50,348		8,739		(1,902	)
KEPCO-LG CNS Mangilao Holdings LLC		27,439		30,287		—		(1,240	)
Mangilao Investment LLC		39,972		—		—		—
KEPCO-LG CNS Mangilao Solar, LLC		39,373		11		—		(524	)
Jeju Hanlim Offshore Wind Co., Ltd.		14,328		558		—		(2,459	)
PT. Siborpa Eco Power		11,574		71		—		(1,165	)
PT. Korea Energy Indonesia		1,592		121		2,462		323
KOLAT SpA		31,178		167		656		(296	)
KEPCO California, LLC		44,074		936		358		(513	)
KEPCO Mojave Holdings, LLC		103,815		69,544		—		(4,215	)
Incheon Fuel Cell Co., Ltd.		22,669		475		—		(1,010	)
KOEN Service Co., Ltd.		5,347		4,252		25,890		543
KOMIPO Service Co., Ltd.		3,327		2,622		24,556		146
KOWEPO Service Co., Ltd.		4,228		3,302		23,982		389
KOSPO Service Co., Ltd.		3,493		2,788		18,741		135
EWP Service Co., Ltd.		4,786		4,064		20,837		162
PT. KOMIPO Energy Indonesia		2,647		196		1,392		79
KNF Partners Co., Ltd.		1,378		890		3,383		187
KOSPO USA Inc.		5,896		127		—		(1,408	)
Nambu USA LLC		245		1		—		245
Tamra Offshore Wind Power Co., Ltd.		156,708		121,724		19,670		1,154
KEPCO MCS Co., Ltd.		26,510		22,151		129,393		3,408
KEPCO FMS Co., Ltd.		11,336		10,638		37,627		198
Firstkeepers Co., Ltd.		1,552		2,800		121		(2,239	)
Secutec Co., Ltd.		322		229		—		(597	)
SE Green Energy Co., Ltd.		132,727		105,619		—		816

46

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Subsidiaries	Total assets		Total liabilities		Sales		Profit (loss) for the year
KEPCO Mangilao America LLC	W	—		—		—		—
Mangilao Intermediate Holdings LLC		13,220		12,774		—		(66	)
KEPCO CSC Co., Ltd.		837		51		—		(14	)
KOAK Power Limited		15,930		—		—		—
KOMIPO Europe B.V.		7,362		—		—		(286	)
Haenanum Energy Fund		28,101		1		—		1
Paju Ecoenergy Co., Ltd.		53,839		—		—		—

(*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.

(4) Significant restrictions on the Group’s power over the subsidiaries as of March 31, 2020 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.
Gyeongju Wind Power Co., Ltd.	Dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Korea Offshore Wind Power Co., Ltd.	Principals and interest payments on subordinated loans or payments for dividends and settlement amounts for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained.

(5) As of March 31, 2020, the Group has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:

Company	Group’s unexercised entitlements
KOSPO Youngnam Power Co., Ltd.	The Group holds the right to purchase all shares held by the financial investors of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Group, at face value of the issued shares on the 7th and 12th years from the Group’s establishment date.

47

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(6) Details ofnon-controlling interest prior to intra-group eliminations as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
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	192,816			764,606			218,064			951,281			2,126,767
Non-current assets		179,136			601,856			471,348			3,466,596			4,718,936
Current liabilities		(17,685	)		(314,823	)		(181,155	)		(427,475	)		(941,138	)
Non-current liabilities		(46,559	)		(40,548	)		(25,670	)		(2,434,103	)		(2,546,880	)
Net assets		307,708			1,011,091			482,587			1,556,299			3,357,685
Book value ofnon-controlling interest		150,777			495,435			163,694			574,257			1,384,163
Sales		21,717			248,918			89,698			223,431			583,764
Profit for the period		10,827			23,086			5,043			26,639			65,595
Profit for the period attributable tonon-controlling interest		5,305			11,312			1,710			12,302			30,629
Cash flows from operating activities		19,319			45,193			(7,793	)		75,342			132,061
Cash flows from investing activities		2,454			(37,737	)		(33,088	)		(331,439	)		(399,810	)
Cash flows from financing activities before dividends tonon-controlling interest		(17,264	)		(1,155	)		(376	)		255,608			236,813
Dividends tonon-controlling interest		(17,373	)		—			—			(3,346	)		(20,719	)
Effect of exchange rate fluctuation		2,384			(354	)		79			4,438			6,547
Net increase (decrease) of cash and cash equivalents		(10,480	)		5,947			(41,178	)		603			(45,108	)

In millions of won
December 31, 2019
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	173,931			779,764			257,593			864,596			2,075,884
Non-current assets		197,446			577,219			477,614			3,169,317			4,421,596
Current liabilities		(11,990	)		(247,737	)		(223,522	)		(450,311	)		(933,560	)
Non-current liabilities		(44,166	)		(47,020	)		(19,472	)		(2,193,501	)		(2,304,159	)
Net assets		315,221			1,062,226			492,213			1,390,101			3,259,761
Book value of non-controlling interest		154,458			520,491			166,959			551,423			1,393,331
Sales		95,072			1,244,613			448,635			855,023			2,643,343
Profit for the year		40,818			157,737			26,398			(48,963	)		175,990
Profit for the year attributable to non-controlling interest		20,001			77,291			8,954			(24,264	)		81,982
Cash flows from operating activities		101,707			164,373			27,081			219,450			512,611
Cash flows from investing activities		4,458			(89,159	)		47,219			(356,434	)		(393,916	)
Cash flows from financing activities before dividends tonon-controlling interest		(68,678	)		(44,332	)		(34,632	)		223,233			75,591
Dividends to non-controlling interest		(48,750	)		(39,466	)		(1,807	)		(9,233	)		(99,256	)
Effect of exchange rate fluctuation		2,111			(593	)		(14	)		2,501			4,005
Net increase (decrease) of cash and cash equivalents		(9,152	)		(9,177	)		37,847			79,517			99,035

48

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

16. Consolidated Subsidiaries, Continued

(7) Changes in goodwill

(i) Details of goodwill as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Acquisition cost	W	97,977		97,977
Accumulated impairment		—		—
Carrying book value	W	97,977		97,977

(ii) Changes in goodwill for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning		Increase		Decrease		Ending
Acquisition cost	W	97,977		—		—		97,977
Accumulated impairment		—		—		—		—
Carrying book value	W	97,977		—		—		97,977

In millions of won	December 31, 2019
	Beginning		Increase		Decrease		Ending
Acquisition cost	W	2,582		95,395		—		97,977
Accumulated impairment		—		—		—		—
Carrying book value	W	2,582		95,395		—		97,977

49

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
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		1,774,633
Gemeng International Energy Co., Ltd.	Power generation		CHINA		34.00%		413,153		687,990
PT. Bayan Resources TBK	Resources development		INDONESIA		20.00%		615,860		432,522
Korea Power Exchange (*2)	Management of power market and others		KOREA		100.00%		127,839		267,619
GS Donghae Electric Power Co., Ltd.	Power generation		KOREA		34.00%		204,000		250,335
Hyundai Green Power Co., Ltd.	Power generation		KOREA		29.00%		88,885		123,434
PT. Cirebon Electric Power	Power generation		INDONESIA		27.50%		40,365		125,354
S-Power Co., Ltd.	Power generation		KOREA		49.00%		132,300		118,140
Dongducheon Dream Power Co., Ltd. (*3)	Power generation		KOREA		33.61%		148,105		84,382
Xe-PianXe-Namnoy Power Co., Ltd.	Power generation		LAOS		25.00%		87,426		76,543
Shin Pyeongtaek Power Co., Ltd.	Power generation		KOREA		40.00%		72,000		74,694
SPC Power Corporation	Power generation		PHILIPPINES		38.00%		20,635		74,991
Korea Electric Power Corporation Fund (*4)	Developing electric enterprises		KOREA		98.09%		51,500		40,438
YTN Co., Ltd.	Broadcasting		KOREA		21.43%		59,000		39,369
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation of utility plant		NEPAL		60.35%		50,268		48,055
PT. Wampu Electric Power	Power generation		INDONESIA		46.00%		21,292		31,610
Others (Daeryun Power Co., Ltd. and 54 others)							332,089		142,774
						W	2,559,217		4,392,883
<Joint ventures>
Jamaica Public Service Company Limited	Power generation		JAMAICA		40.00%		301,910		282,862
KEPCO SPC Power Corporation (*6)	Construction and operation of utility plant		PHILIPPINES		75.20%		94,579		240,937
Amman Asia Electric Power Company (*6)	Power generation		JORDAN		60.00%		111,476		191,339
Datang Chifeng Renewable Power Co., Ltd.	Power generation		CHINA		40.00%		121,928		197,949
Rabigh Electricity Company	Power generation		SAUDI ARABIA		40.00%		109,743		102,321
Kelar S.A. (*6)	Power generation		CHILE		65.00%		78,060		79,789
Solar Philippines Calatagan Corporation	Power generation		PHILIPPINES		38.00%		47,903		50,043
RE Barren Ridge 1 Holdings LLC	Power generation		USA		50.00%		28,021		—
RE Holiday Holdings LLC	Power generation		USA		50.00%		42,948		33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation		CHINA		40.00%		10,858		43,194
Chun-cheon Energy Co., Ltd.	Power generation		KOREA		29.90%		52,700		32,645
Chile Solar JV SpA	Power generation		CHILE		50.00%		37,689		32,681
PT. Tanjung Power Indonesia	Power generation		INDONESIA		35.00%		26,892		31,511
Shuweihat Asia Power Investment B.V.	Holding company		NETHERLAND		49.00%		44,405		31,688
RE Pioneer Holdings LLC	Power generation		USA		50.00%		27,891		21,654
Others (Daegu Green Power Co., Ltd. and 51 others)							355,440		336,572
							1,492,443		1,708,886
						W	4,051,660		6,101,769

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

(*2) The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

(*4) The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. For this reason, the entity is classified as an associate.

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

(*6) The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

50

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
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		1,693,967
Gemeng International Energy Co., Ltd.	Power generation	CHINA		34.00	%		413,153		670,896
PT. Bayan Resources TBK	Resources development	INDONESIA		20.00	%		615,860		445,141
Korea Power Exchange (*2)	Management of power market and others	KOREA		100.00	%		127,839		258,899
GS Donghae Electric Power Co., Ltd.	Power generation	KOREA		34.00	%		204,000		255,983
Hyundai Green Power Co., Ltd.	Power generation	KOREA		29.00	%		88,885		124,253
PT. Cirebon Electric Power	Power generation	INDONESIA		27.50	%		40,365		123,425
S-Power Co., Ltd.	Power generation	KOREA		49.00	%		132,300		115,784
Dongducheon Dream Power Co., Ltd. (*3)	Power generation	KOREA		33.61	%		148,105		76,547
Xe-PianXe-Namnoy Power Co., Ltd.	Power generation	LAOS		25.00	%		87,426		72,935
Shin Pyeongtaek Power Co., Ltd.	Power generation	KOREA		40.00	%		72,000		66,956
SPC Power Corporation	Power generation	PHILIPPINES		38.00	%		20,635		63,583
Korea Electric Power Corporation Fund (*4)	Developing electric enterprises	KOREA		98.09	%		51,500		41,126
YTN Co., Ltd.	Broadcasting	KOREA		21.43	%		59,000		39,747
Nepal Water & Energy Development Company Private Limited (*5)	Construction and operation of utility plant	NEPAL		57.76	%		35,571		31,145
PT. Wampu Electric Power	Power generation	INDONESIA		46.00	%		21,292		29,355
Others (Daeryun Power Co., Ltd. and 49 others)							327,525		142,060
						W	2,539,956		4,251,802
<Joint ventures>
Jamaica Public Service Company Limited	Power generation	JAMAICA		40.00	%		301,910		253,607
KEPCO SPC Power Corporation (*6)	Construction and operation of utility plant	PHILIPPINES		75.20	%		94,579		214,794
Amman Asia Electric Power Company (*6)	Power generation	JORDAN		60.00	%		111,476		192,164
Datang Chifeng Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%		121,928		185,307
Rabigh Electricity Company	Power generation	SAUDI ARABIA		40.00	%		109,743		109,096
Kelar S.A. (*6)	Power generation	CHILE		65.00	%		78,060		70,462
Solar Philippines Calatagan Corporation	Power generation	PHILIPPINES		38.00	%		47,903		48,930
RE Barren Ridge 1 Holdings LLC	Power generation	USA		50.00	%		28,021		42,916
RE Holiday Holdings LLC	Power generation	USA		50.00	%		42,948		42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	CHINA		40.00	%		10,858		41,024
Chun-cheon Energy Co., Ltd.	Power generation	KOREA		29.90	%		52,700		34,872
Chile Solar JV SpA	Power generation	CHILE		50.00	%		37,689		34,859
PT. Tanjung Power Indonesia	Power generation	INDONESIA		35.00	%		26,892		34,327
Shuweihat Asia Power Investment B.V.	Holding company	NETHERLAND		49.00	%		44,405		18,318
RE Pioneer Holdings LLC	Power generation	USA		50.00	%		27,891		31,156
Others (Daegu Green Power Co., Ltd. and 48 others)							338,693		309,127
							1,475,696		1,663,029
						W	4,015,652		5,914,831

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

(*2) The effective percentage of ownership is 100%. However, the Government regulates the Group’s ability to make operating and financial decisions over the entity, as the Government requires maintaining arms-length transactions between KPX and the Group’s other subsidiaries. The Group can exercise significant influence by virtue of right to nominate directors to the board of directors of the entity.

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

(*4) The effective percentage of ownership is more than 50% but the Group does not hold control over relevant business while it exercises significant influence by participating in the Investment Decision Committee. For this reason, the entity is classified as an associate.

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

(*6) The effective percentage of ownership is more than 50%. However, according to the shareholders’ agreement, all critical financial and operating decisions must be agreed to by all ownership parties. For this reason, the entities are classified as joint ventures.

51

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Investees	March 31, 2020		December 31, 2019
<Associates>
Korea Electric Power Industrial Development Co., Ltd.	W	27,133		33,089
Korea Gas Corporation		406,350		715,365
YTN Co., Ltd.		13,230		18,450
SPC Power Corporation		121,139		117,230
PT. Bayan Resources TBK		723,067		880,860

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees	Beginning balance		Acquisitions		Disposals		Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,693,967		—		—		(7,182	)		107,000			(18,960	)		(192	)		1,774,633
Gemeng International Energy Co., Ltd.		670,894		—		—		—			(9,685	)		26,781			—			687,990
PT. Bayan Resources TBK		445,141		—		—		—			7,425			(20,032	)		(12	)		432,522
Korea Power Exchange		258,899		—		—		—			8,720			—			—			267,619
GS Donghae Electric Power Co., Ltd.		255,983		—		—		(12,898	)		7,250			—			—			250,335
Hyundai Green Power Co., Ltd.		124,253		—		—		(8,889	)		8,070			—			—			123,434
PT. Cirebon Electric Power		123,425		—		—		(4,643	)		553			(771	)		6,790			125,354
S-Power Co., Ltd.		115,784		—		—		—			2,356			—			—			118,140
Dongducheon Dream Power Co., Ltd.		76,547		—		—		—			7,835			—			—			84,382
Xe-PianXe-Namnoy Power Co., Ltd.		72,935		—		—		—			1,428			2,180			—			76,543
Shin Pyeongtaek Power Co., Ltd.		66,956		—		—		—			7,738			—			—			74,694
SPC Power Corporation		63,583		—		—		—			8,593			2,789			26			74,991
Korea Electric Power Corporation Fund		41,126		—		—		—			(438	)		(250	)		—			40,438
YTN Co., Ltd.		39,747		—		—		(90	)		(271	)		(14	)		(3	)		39,369
Nepal Water & Energy Development Company Private Limited		31,145		14,697		—		—			(169	)		2,382			—			48,055
PT. Wampu Electric Power		29,355		—		—		—			598			—			1,657			31,610
Others (Daeryun Power Co., Ltd. and 55 others)		142,060		4,565		—		(6,196	)		2,428			(1,192	)		1,109			142,774
	W	4,251,800		19,262		—		(39,898	)		159,431			(7,087	)		9,375			4,392,883

52

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
March 31, 2020
Investees	Beginning balance		Acquisitions		Disposals		Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Joint ventures>
Jamaica Public Service Company Limited	W	253,607		—		—		—			14,704			14,551			—			282,862
KEPCO SPC Power Corporation		214,794		—		—		—			14,926			11,346			(129	)		240,937
Amman Asia Electric Power Company		192,164		—		—		—			5,194			(6,019	)		—			191,339
Datang Chifeng Renewable Power Co., Ltd.		185,307		—		—		—			5,121			7,521			—			197,949
Rabigh Electricity Company		109,093		—		—		—			(4,309	)		(2,463	)		—			102,321
Kelar S.A.		70,462		—		—		—			5,683			3,495			149			79,789
Solar Philippines Calatagan Corporation		48,930		—		—		(1,100	)		1,223			990			—			50,043
RE Barren Ridge 1 Holdings LLC		42,916		—		—		—			(4,798	)		(38,118	)		—			—
RE Holiday Holdings LLC		42,070		—		—		—			(1,179	)		(7,190	)		—			33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		41,024		—		—		—			509			1,661			—			43,194
Chun-cheon Energy Co., Ltd.		34,872		—		—		—			(2,227	)		—			—			32,645
Chile Solar JV SpA		34,859		—		—		—			527			(2,705	)		—			32,681
PT. Tanjung Power Indonesia		34,327		—		—		—			2,477			(5,159	)		(134	)		31,511
Shuweihat Asia Power Investment B.V.		18,318		—		—		(468	)		1,055			12,783			—			31,688
RE Pioneer Holdings LLC		31,156		—		—		—			(939	)		(8,563	)		—			21,654
Others (Daegu Green Power Co., Ltd. and 51 others)		309,127		16,746		—		(2,058	)		8,439			3,960			358			336,572
		1,663,026		16,746		—		(3,626	)		46,406			(13,910	)		244			1,708,886
	W	5,914,826		36,008		—		(43,524	)		205,837			(20,997	)		9,619			6,101,769

In millions of won
December 31, 2019
Investees	Beginning balance		Acquisitions		Disposals		Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Associates>
Korea Gas Corporation	W	1,701,848		—		—		(25,704	)		8,511			12,687			(3,375	)		1,693,967
Gemeng International Energy Co., Ltd.		647,010		—		—		(11,468	)		26,300			9,209			(155	)		670,896
PT. Bayan Resources TBK		511,646		—		—		(71,100	)		6,181			(1,586	)		—			445,141
Korea Power Exchange		251,802		—		—		—			10,907			—			(3,810	)		258,899
GS Donghae Electric Power Co., Ltd.		—		—		—		—			—			—			255,983			255,983
Hyundai Green Power Co., Ltd.		127,160		—		—		(8,889	)		5,982			—			—			124,253
PT. Cirebon Electric Power		108,628		—		—		—			11,079			(65	)		3,783			123,425
S-Power Co., Ltd.		114,566		—		—		—			1,218			—			—			115,784
Dongducheon Dream Power Co., Ltd.		76,386		—		—		—			441			—			(280	)		76,547
Xe-PianXe-Namnoy Power Co., Ltd.		77,165		3,052		—		—			(10,210	)		2,928			—			72,935
Shin Pyeongtaek Power Co., Ltd.		67,600		—		—		—			(827	)		198			(15	)		66,956
SPC Power Corporation		57,558		—		—		(14,229	)		5,929			14,286			39			63,583
Korea Electric Power Corporation Fund		47,189		—		—		—			(6,931	)		868			—			41,126
YTN Co., Ltd.		40,338		—		—		(180	)		(449	)		5			33			39,747
Nepal Water & Energy Development Company Private Limited		30,961		—		—		—			(854	)		1,038			—			31,145
PT. Wampu Electric Power		31,097		—		—		—			(2,867	)		2			1,123			29,355
Others (Daeryun Power Co., Ltd. and 55 others)		173,866		14,607		—		(4,442	)		(16,992	)		(371	)		(24,608	)		142,060
	W	4,064,820		17,659		—		(136,012	)		37,418			39,199			228,718			4,251,802

53

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees	Beginning balance		Acquisitions		Disposals			Dividends received			Share of income (loss)			Other comprehen- sive income (loss)			Others			Ending balance
<Joint ventures>
Jamaica Public Service Company Limited	W	239,632		—		—			(4,631	)		10,166			8,440			—			253,607
KEPCO SPC Power Corporation		208,306		—		—			(45,349	)		48,043			3,781			13			214,794
Amman Asia Electric Power Company		177,357		—		—			—			20,648			(5,841	)		—			192,164
Datang Chifeng Renewable Power Co., Ltd.		166,162		—		—			—			16,325			2,820			—			185,307
Rabigh Electricity Company		105,328		—		—			—			4,355			(1,734	)		1,147			109,096
Kelar S.A.		72,824		—		—			—			3,435			(8,416	)		2,619			70,462
Solar Philippines Calatagan Corporation		47,903		—		—			(4,633	)		4,305			1,355			—			48,930
RE Barren Ridge 1 Holdings LLC		41,415		—		—			(1,152	)		4,609			(1,957	)		1			42,916
RE Holiday Holdings LLC		51,094		—		—			—			(6,525	)		(2,500	)		1			42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		39,442		—		—			—			875			707			—			41,024
Chun-cheon Energy Co., Ltd.		42,505		—		—			—			(7,385	)		—			(248	)		34,872
Chile Solar JV SpA		36,865		—		—			—			842			(2,849	)		1			34,859
PT. Tanjung Power Indonesia		7,081		26,146		—			—			5,601			(4,489	)		(12	)		34,327
Shuweihat Asia Power Investment B.V.		27,251		—		—			(2,176	)		5,288			(12,045	)		—			18,318
RE Pioneer Holdings LLC		38,898		—		—			(939	)		(5,507	)		(1,296	)		—			31,156
Others (Daegu Green Power Co., Ltd. and 53 others)		511,462		64,016		(5,359	)		(20,721	)		24,327			1,835			(266,433	)		309,127
		1,813,525		90,162		(5,359	)		(79,601	)		129,402			(22,189	)		(262,911	)		1,663,029
	W	5,878,345		107,821		(5,359	)		(215,613	)		166,820			17,010			(34,193	)		5,914,831

54

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the period
<Associates>
Korea Gas Corporation (*)	W	39,550,174		31,034,900		7,967,770		537,199
Gemeng International Energy Co., Ltd.		7,223,131		5,199,630		441,661		(11,364	)
PT. Bayan Resources TBK		1,625,816		968,031		389,448		48,002
Korea Power Exchange		318,514		50,895		27,074		7,022
GS Donghae Electric Power Co., Ltd.		2,291,092		1,554,813		191,305		21,322
Hyundai Green Power Co., Ltd.		1,069,729		644,094		119,658		23,384
PT. Cirebon Electric Power		839,106		383,272		52,215		1,480
S-Power Co., Ltd.		816,552		572,204		159,854		5,248
Dongducheon Dream Power Co., Ltd.		1,466,197		1,175,676		182,247		22,774
Xe-PianXe-Namnoy Power Co., Ltd.		1,271,744		961,073		31,522		6,099
Shin Pyeongtaek Power Co., Ltd.		966,882		769,813		181,402		22,789
SPC Power Corporation		296,919		24,906		13,171		6,988
Korea Electric Power Corporation Fund		41,515		293		19		(250	)
YTN Co., Ltd.		279,460		95,738		24,548		(1,037	)
Nepal Water & Energy Development Company Private Limited		105,853		28,614		—		(323	)
PT. Wampu Electric Power		229,764		161,046		4,257		1,452
<Joint ventures>
Jamaica Public Service Company Limited		1,756,036		1,082,226		258,746		9,468
KEPCO SPC Power Corporation		343,001		22,605		50,302		19,796
Amman Asia Electric Power Company		852,782		533,884		5,881		8,657
Datang Chifeng Renewable Power Co., Ltd.		791,370		296,498		32,661		13,947
Rabigh Electricity Company		2,643,303		2,224,948		73,043		30,993
Kelar S.A.		680,626		562,208		24,164		2,791
Solar Philippines Calatagan Corporation		104,897		51,349		5,254		3,218
RE Barren Ridge 1 Holdings LLC		136,473		87,348		12,838		(3,901	)
RE Holiday Holdings LLC		324,271		96,029		22,856		(2,711	)
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		197,381		89,397		6,039		1,271
Chun-cheon Energy Co., Ltd.		629,877		519,877		82,048		(7,448	)
Chile Solar JV SpA		69,706		4,343		2,144		1,677
PT. Tanjung Power Indonesia		714,946		624,914		24,849		6,062
Shuweihat Asia Power Investment B.V.		64,683		14		—		(65	)
RE Pioneer Holdings LLC		235,908		71,181		15,055		(3,774	)

(*) The profit for the three-month period ended March 31, 2020 is reduced by the associate entity’s net income attributable tonon-controlling interests.

55

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees	Total assets		Total liabilities		Sales		Profit (loss) for the year
<Associates>
Korea Gas Corporation (*)	W	39,311,855		31,165,334		24,982,640		38,764
Gemeng International Energy Co., Ltd.		6,758,957		4,785,740		2,024,730		95,435
PT. Bayan Resources TBK		1,302,637		622,576		1,707,387		252,855
Korea Power Exchange		315,683		54,926		107,034		8,268
GS Donghae Electric Power Co., Ltd.		2,301,774		1,548,883		688,055		75,842
Hyundai Green Power Co., Ltd.		1,086,738		658,279		507,653		26,222
PT. Cirebon Electric Power		852,457		403,639		277,370		39,581
S-Power Co., Ltd.		805,622		566,025		576,554		2,319
Dongducheon Dream Power Co., Ltd.		1,474,224		1,206,478		689,414		2,849
Xe-PianXe-Namnoy Power Co., Ltd.		1,194,125		898,023		6,731		(40,437	)
Shin Pyeongtaek Power Co., Ltd.		981,387		807,107		119,162		11,847
SPC Power Corporation		250,544		22,459		63,218		39,876
Korea Electric Power Corporation Fund		42,162		239		127		(5,430	)
YTN Co., Ltd.		281,699		96,211		127,782		(1,230	)
Nepal Water & Energy Development Company Private Limited		78,309		26,783		—		(1,380	)
PT. Wampu Electric Power		222,266		158,451		18,165		(2,315	)
<Joint ventures>
Jamaica Public Service Company Limited		1,543,049		940,609		1,035,399		32,828
KEPCO SPC Power Corporation		308,274		22,643		187,867		64,152
Amman Asia Electric Power Company		821,997		501,723		23,866		34,424
Datang Chifeng Renewable Power Co., Ltd.		765,598		302,329		122,398		40,371
Rabigh Electricity Company		2,538,719		2,100,347		208,514		1,567
Kelar S.A.		634,633		530,335		86,702		8,867
Solar Philippines Calatagan Corporation		98,577		47,956		18,720		11,331
RE Barren Ridge 1 Holdings LLC		209,850		124,017		10,384		7,630
RE Holiday Holdings LLC		331,862		247,722		18,744		(345	)
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		189,157		86,596		23,910		2,188
Chun-cheon Energy Co., Ltd.		607,823		490,375		313,438		(24,490	)
Chile Solar JV SpA		69,903		186		591		1,686
PT. Tanjung Power Indonesia		654,365		556,287		109,825		16,489
Shuweihat Asia Power Investment B.V.		37,389		5		—		(159	)
RE Pioneer Holdings LLC		246,571		184,258		12,207		(1,912	)

(*) The profit for the year ended December 31, 2019 is reduced by the associate entity’s net income attributable tonon-controlling interests.

56

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential		Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	8,515,273		21.57	%		1,836,744		—		—			(62,111	)		1,774,633
Gemeng International Energy Co., Ltd.		2,023,500		34.00	%		687,990		—		—			—			687,990
PT. Bayan Resources TBK		657,785		20.00	%		131,558		377,344		—			(76,380	)		432,522
Korea Power Exchange		267,619		100.00	%		267,619		—		—			—			267,619
GS Donghae Electric Power Co., Ltd.		736,279		34.00	%		250,335		—		—			—			250,335
Hyundai Green Power Co., Ltd.		425,635		29.00	%		123,434		—		—			—			123,434
PT. Cirebon Electric Power		455,834		27.50	%		125,354		—		—			—			125,354
S-Power Co., Ltd.		244,349		49.00	%		119,731		—		(1,591	)		—			118,140
Dongducheon Dream Power Co., Ltd.		290,521		34.01	%		98,806		1,757		(3,599	)		(12,582	)		84,382
Xe-PianXe-Namnoy Power Co., Ltd.		310,671		25.00	%		77,668		305		(1,141	)		(289	)		76,543
Shin Pyeongtaek Power Co., Ltd.		197,069		40.00	%		78,827		12,800		(16,933	)		—			74,694
SPC Power Corporation		272,013		38.00	%		103,365		—		—			(28,374	)		74,991
Korea Electric Power Corporation Fund		41,222		98.09	%		40,435		—		—			3			40,438
YTN Co., Ltd.		183,721		21.43	%		39,369		—		—			—			39,369
Nepal Water & Energy Development Company Private Limited		77,239		60.96	%		47,083		972		—			—			48,055
PT. Wampu Electric Power		68,717		46.00	%		31,610		—		—			—			31,610
<Joint ventures>
Jamaica Public Service Company Limited		673,810		40.00	%		269,524		42,937		—			(29,599	)		282,862
KEPCO SPC Power Corporation		320,396		75.20	%		240,937		—		—			—			240,937
Amman Asia Electric Power Company		318,898		60.00	%		191,339		—		—			—			191,339
Datang Chifeng Renewable Power Co., Ltd.		494,872		40.00	%		197,949		—		—			—			197,949
Rabigh Electricity Company		418,355		40.00	%		167,342		—		(64,216	)		(805	)		102,321
Kelar S.A.		118,417		65.00	%		76,971		2,818		—			—			79,789
Solar Philippines Calatagan Corporation		53,548		38.00	%		20,348		29,695		—			—			50,043
RE Barren Ridge 1 Holdings LLC		49,125		50.00	%		24,563		—		—			(24,563	)		—
RE Holiday Holdings LLC		228,242		50.00	%		114,121		—		—			(80,420	)		33,701
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		107,984		40.00	%		43,194		—		—			—			43,194
Chun-cheon Energy Co., Ltd.		110,000		29.90	%		32,890		3		—			(248	)		32,645
Chile Solar JV SpA		65,363		50.00	%		32,681		—		—			—			32,681
PT. Tanjung Power Indonesia		90,032		35.00	%		31,511		—		—			—			31,511
Shuweihat Asia Power Investment B.V.		64,669		49.00	%		31,688		—		—			—			31,688
RE Pioneer Holdings LLC		164,727		50.00	%		82,363		—		—			(60,709	)		21,654

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

57

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Group’s investments in consolidated financial statements as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won
December 31, 2019
Investees	Net assets		Percentage of ownership (*)			Share in net assets		Investment differential			Intercompany transaction			Others			Book value
<Associates>
Korea Gas Corporation	W	8,146,521		21.57	%		1,757,205		—			—			(63,238	)		1,693,967
Gemeng International Energy Co., Ltd.		1,973,217		34.00	%		670,896		—			—			—			670,896
PT. Bayan Resources TBK		680,061		20.00	%		136,012		385,508			—			(76,379	)		445,141
Korea Power Exchange		260,757		100.00	%		260,757		—			—			(1,858	)		258,899
GS Donghae Electric Power Co., Ltd.		752,891		34.00	%		255,983		—			—			—			255,983
Hyundai Green Power Co., Ltd.		428,459		29.00	%		124,253		—			—			—			124,253
PT. Cirebon Electric Power		448,818		27.50	%		123,425		—			—			—			123,425
S-Power Co., Ltd.		239,597		49.00	%		117,403		—			(1,619	)		—			115,784
Dongducheon Dream Power Co., Ltd.		267,746		34.01	%		91,060		1,757			(3,688	)		(12,582	)		76,547
Xe-PianXe-Namnoy Power Co., Ltd.		296,102		25.00	%		74,026		305			(1,106	)		(290	)		72,935
Shin Pyeongtaek Power Co., Ltd.		174,280		40.00	%		69,712		12,800			(15,556	)		—			66,956
SPC Power Corporation		228,085		38.00	%		86,672		—			—			(23,089	)		63,583
Korea Electric Power Corporation Fund		41,923		98.09	%		41,122		—			—			4			41,126
YTN Co., Ltd.		185,488		21.43	%		39,747		—			—			—			39,747
Nepal Water & Energy Development Company Private Limited		51,526		58.59	%		30,173		972			—			—			31,145
PT. Wampu Electric Power		63,815		46.00	%		29,355		—			—			—			29,355
<Joint ventures>
Jamaica Public Service Company Limited		602,440		40.00	%		240,976		(80,161	)		—			92,792			253,607
KEPCO SPC Power Corporation		285,631		75.20	%		214,794		—			—			—			214,794
Amman Asia Electric Power Company		320,274		60.00	%		192,164		—			—			—			192,164
Datang Chifeng Renewable Power Co., Ltd.		463,269		40.00	%		185,307		—			—			—			185,307
Rabigh Electricity Company		438,372		40.00	%		175,349		—			(65,450	)		(803	)		109,096
Kelar S.A.		104,298		65.00	%		67,794		2,668			—			—			70,462
Solar Philippines Calatagan Corporation		50,621		38.00	%		19,236		29,694			—			—			48,930
RE Barren Ridge 1 Holdings LLC		85,833		50.00	%		42,916		—			—			—			42,916
RE Holiday Holdings LLC		84,140		50.00	%		42,070		—			—			—			42,070
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		102,561		40.00	%		41,024		—			—			—			41,024
Chun-cheon Energy Co., Ltd.		117,448		29.90	%		35,117		—			—			(245	)		34,872
Chile Solar JV SpA		69,717		50.00	%		34,859		—			—			—			34,859
PT. Tanjung Power Indonesia		98,078		35.00	%		34,327		—			—			—			34,327
Shuweihat Asia Power Investment B.V.		37,384		49.00	%		18,318		—			—			—			18,318
RE Pioneer Holdings LLC		62,313		50.00	%		31,156		—			—			—			31,156

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(6) As of March 31, 2020 and December 31, 2019, 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	March 31, 2020					December 31, 2019
	Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
Hadong Mineral Fiber Co., Ltd.	W	—			2		—			2
Eurasia Energy Holdings		10			196		6			186
Gunsan Bio Energy Co., Ltd.		70			3,362		1,090			3,292
Hyundai Energy Co., Ltd.		(540	)		38,191		12,890			38,731
Nghi Son 2 Power LLC		124,078			226,902		61,165			102,824
Samcheok Eco Materials Co., Ltd.		(6	)		782		(497	)		788
Naepo Green Energy Co., Ltd.		(4,367	)		4,914		9,281			9,281
Barakah One Company		22,887			138,983		116,096			116,096
Pioneer Gas Power Limited		3,195			3,309		114			114
Korea Nuclear Partners Co., Ltd.,		37			37		—			—
RE Barren ridge 1 Holdings LLC		1,059			1,059		—			—
Incheon New Power Co., Ltd.		29			29		—			—

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of March 31, 2020, 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 Group provided a performance guarantee on this agreement.

(ii) Taebaek Wind Power Co., Ltd.

In the case wherenon-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 Group acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

(iii) Pyeongchang Wind Power Co., Ltd.

In the case wherenon-controlling shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Group 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.

(iv) Daeryun Power Co., Ltd.

The Group reserves the right to participate in the transfer of shares in Daeryun Power Co., Ltd. on the same terms as Daeryun E&S Co., Ltd., if Daeryun E&S Co., Ltd. wishes to transfer its shares in Daeryun Power Co., Ltd.

(v) Jeongam Wind Power Co., Ltd.

In the case wherenon-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 Group is obligated to acquire those shares at fair value.

(vi) Daegu Green Power Co., Ltd.

The Group has a right to purchase all the shares of Daegu Green Power Co., Ltd. held by the financial investores at the yield-based transfer amount agreed with the shareholders. The Group can exercise its right 5, 10 and 13 years after the date of the investment. The Group has a right to purchase all or part of the shares of Daegu Green Power Co., Ltd. held by Lotte Engineering & Construction Co. at the yield-based transfer amount agreed with the shareholders.

(vii) Taebaek Guinemi Wind Power Co., Ltd.

At the commencement of the operation of the faciliity, the Group has a right to purchase all or part of the shares from the shareholders at fair value.

(viii) Yeonggwang Wind Power Co., Ltd.

In case the Group intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is anon-controlling shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Group.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(7) As of March 31, 2020, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(ix) Chester Solar I SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(x) Chester Solar IV SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xi) Chester Solar V SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xii) Diego de Almagro Solar SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

(xiii) Laurel SpA

According to the shareholders’ agreement, the Group has an obligation to purchase the shares at the agreed yield-based transfer price on the agreed date of exercise. According to the shareholders’ agreement, when Sprott Chile Solar I SpA intends to sell its shares.

61

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2020 are as follows:

Company	Nature and extent of any significant restrictions
Daegu Green Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions is obtained.
Pyeongchang Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions is obtained.
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.
KNH Solar Co., Ltd.	Principal and interest, dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without consent of other shareholders is obtained.
Jeongam Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied and reimbursement to the lender can be restricted depending on the priority of the loans. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Korea Power Engineering Service Co., Ltd.	Shares cannot be wholly or partially transferred without consent of the board of directors is obtained.
Daehan Wind Power PSC	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Daejung Offshore Wind Power Co., Ltd.	Before the commencement of the operation, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Naepo Green Energy Co., Ltd.	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Samcheok Eco Materials Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
KPGE Inc.	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Taebaek Guinemi Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Solaseado Solar Power Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Indeck Niles Asset Management, LLC	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Indeck Niles Development, LLC	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar IV SpA	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar V SpA	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Diego de Almagro Solar Spa	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Laurel SpA	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Chester Solar I SpA	Shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.
Kelar S.A.	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without consent of the stakeholders is obtained.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Group’s abilities on associates or joint ventures as of March 31, 2020 are as follows, continued:

Company	Nature and extent of any significant restrictions
GS Donghae Electric Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Shinho Solar Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied.
Honam Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied.
Seokmun Energy Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Chun-cheon Energy Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, principals and interests on subordinated loans shall not be paid until the collateralized debt is fully repaid.
Yeonggwangbaeksu Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Yeonggwang Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Jamaica Public Service Company Limited	Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions are obtained.
PT. Tanjung Power Indonesia	Dividends can only be paid when all conditions of the loan agreement are satisfied.
DE Energia SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied.
Daesan Green Energy Co., Ltd.	Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Taebaek Gadeoksan Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy supply certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment

(1) Property, plant and equipment as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	13,872,943		(21,818	)		—			—			13,851,125
Buildings		20,928,979		(60,636	)		(8,515,996	)		(4,962	)		12,347,385
Structures		71,584,055		(186,443	)		(26,239,735	)		(9,633	)		45,148,244
Machinery		90,015,229		(154,530	)		(40,112,613	)		(461,226	)		49,286,860
Ships		2,279		—			(2,103	)		—			176
Vehicles		315,900		(1,736	)		(245,249	)		(116	)		68,799
Equipment		1,740,141		(204	)		(1,383,686	)		(42	)		356,209
Tools		1,104,394		(335	)		(950,685	)		(38	)		153,336
Construction-in-progress		29,529,249		(66,910	)		—			(165,335	)		29,297,004
Right-of-use assets		7,690,138		—			(2,943,473	)		—			4,746,665
Asset retirement costs		11,716,836		—			(4,286,426	)		(146,423	)		7,283,987
Others		13,107,350		—			(10,551,232	)		—			2,556,118
	W	261,607,493		(492,612	)		(95,231,198	)		(787,775	)		165,095,908

In millions of won	December 31, 2019
	Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
Land	W	13,848,063		(21,817	)		—			—			13,826,246
Buildings		20,756,351		(61,920	)		(8,305,683	)		(4,962	)		12,383,786
Structures		70,900,343		(186,554	)		(25,711,840	)		(9,633	)		44,992,316
Machinery		89,224,339		(158,907	)		(38,865,392	)		(451,647	)		49,748,393
Ships		3,104		—			(2,903	)		—			201
Vehicles		309,829		(2,275	)		(239,128	)		(116	)		68,310
Equipment		1,716,210		(241	)		(1,342,053	)		(42	)		373,874
Tools		1,098,127		(403	)		(934,023	)		(40	)		163,661
Construction-in-progress		28,584,806		(61,211	)		—			(165,336	)		28,358,259
Right-of-use assets		7,574,010		—			(2,790,437	)		—			4,783,573
Asset retirement costs		11,690,188		—			(4,169,238	)		(146,423	)		7,374,527
Others		12,955,782		—			(10,327,101	)		—			2,628,681
	W	258,661,152		(493,328	)		(92,687,798	)		(778,199	)		164,701,827

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance			Acquisitions			Disposals			Depreciation			Others			Ending balance
Land	W	13,848,063			34			(13,121	)		(6	)		37,973			13,872,943
(Government grants)		(21,817	)		—			—			—			(1	)		(21,818	)
Buildings		12,445,706			90			(2,206	)		(207,984	)		172,415			12,408,021
(Government grants)		(61,920	)		—			—			1,287			(3	)		(60,636	)
Structures		45,178,870			8			(102,121	)		(599,464	)		857,394			45,334,687
(Government grants)		(186,554	)		—			474			2,369			(2,732	)		(186,443	)
Machinery		49,907,300			84,884			(44,557	)		(1,342,794	)		836,557			49,441,390
(Government grants)		(158,907	)		—			126			4,252			(1	)		(154,530	)
Ships		201			—			—			(25	)		—			176
Vehicles		70,585			1,013			(38	)		(8,040	)		7,015			70,535
(Government grants)		(2,275	)		—			—			548			(9	)		(1,736	)
Equipment		374,115			10,767			(6	)		(44,589	)		16,126			356,413
(Government grants)		(241	)		—			—			44			(7	)		(204	)
Tools		164,064			1,644			(1	)		(18,381	)		6,345			153,671
(Government grants)		(403	)		—			—			68			—			(335	)
Construction-in-progress		28,419,470			2,933,690			(163	)		(3,891	)		(1,985,192	)		29,363,914
(Government grants)		(61,211	)		(1,464	)		—			—			(4,235	)		(66,910	)
Right-of-use assets		4,783,573			113,871			—			(148,636	)		(2,143	)		4,746,665
Asset retirement costs		7,374,527			23			—			(205,476	)		114,913			7,283,987
Others		2,628,681			264			(2,435	)		(229,871	)		159,479			2,556,118
	W	164,701,827			3,144,824			(164,048	)		(2,800,589	)		213,894			165,095,908

65

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows, continued:

In millions of won	December 31, 2019
	Beginning balance			Effect of change in accounting policy			Acquisitions			Disposals			Depreciation			Impairment (*1, 4)			Others (*2, 3)			Ending balance
Land	W	13,554,292			—			40,752			(29,205	)		—			(25,626	)		307,850			13,848,063
(Government grants)		(21,968	)		—			—			151			—			—			—			(21,817	)
Buildings		11,933,691			—			3,195			(23,409	)		(821,680	)		(1,293	)		1,355,202			12,445,706
(Government grants)		(63,189	)		—			(592	)		—			6,214			—			(4,353	)		(61,920	)
Structures		42,711,795			—			1,663			(470,230	)		(2,399,283	)		(1,234	)		5,336,159			45,178,870
(Government grants)		(190,854	)		—			—			2,405			9,373			—			(7,478	)		(186,554	)
Machinery		47,456,595			—			326,606			(248,951	)		(5,452,669	)		(12,247	)		7,837,966			49,907,300
(Government grants)		(173,242	)		—			(1,050	)		635			17,993			—			(3,243	)		(158,907	)
Ships		302			—			—			—			(100	)		—			(1	)		201
Vehicles		72,189			—			3,789			4,558			(33,650	)		—			23,699			70,585
(Government grants)		(4,220	)		—			(228	)		5			2,170			—			(2	)		(2,275	)
Equipment		382,859			—			47,532			(162	)		(199,376	)		(227	)		143,489			374,115
(Government grants)		(418	)		—			(81	)		—			262			—			(4	)		(241	)
Tools		192,675			—			20,956			(31	)		(87,708	)		—			38,172			164,064
(Government grants)		(675	)		—			—			—			281			—			(9	)		(403	)
Construction-in-progress		28,821,167			—			13,544,091			(199,853	)		—			(8,828	)		(13,737,107	)		28,419,470
(Government grants)		(54,740	)		—			12,338			—			—			—			(18,809	)		(61,211	)
Finance lease assets		195,730			(195,730	)		—			—			—			—			—			—
(Government grants)		(26	)		26			—			—			—			—			—			—
Right-of-use assets		—			5,143,651			220,996			—			(581,074	)		—			—			4,783,573
Asset retirement costs		5,571,754			—			—			—			(626,856	)		—			2,429,629			7,374,527
Others		2,359,477			—			1,388			(221	)		(800,653	)		(581	)		1,069,271			2,628,681
	W	152,743,194			4,947,947			14,221,355			(964,308	)		(10,966,756	)		(50,036	)		4,770,431			164,701,827

(*1) KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiary, performed an impairment test over its land and others. The Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss.

(*2) ‘Others’ include the amounts of assets acquired by the business combination.

(*3) ‘Others’ includes the amounts reclassified fromconstruction-in-progress to other assets during the prior year relating to assets which were available for use two years before but were considered immaterial.

(*4) The Group recognized impairment loss ofW3,819 million related to Wolsong unit 1, Shin-Hanul unit 3 & 4 and reversal of impairment loss ofW16,693 million related to Wolsong unit 1.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

19. Investment Properties

(1) Investment properties as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	114,463		—			—			114,463
Buildings		57,356		(11	)		(32,840	)		24,505
	W	171,819		(11	)		(32,840	)		138,968

In millions of won	December 31, 2019
	Acquisition cost		Government grants			Accumulated depreciation			Book value
Land	W	129,897		—			—			129,897
Buildings		64,590		(13	)		(35,894	)		28,683
	W	194,487		(13	)		(35,894	)		158,580

(2) Changes in investment properties for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance			Disposals			Depreciation			Others			Ending balance
Land	W	129,897			(5,528	)		—			(9,906	)		114,463
Buildings		28,696			(1,108	)		(370	)		(2,702	)		24,516
(Government grants)		(13	)		—			—			2			(11	)
	W	158,580			(6,636	)		(370	)		(12,606	)		138,968

In millions of won	December 31, 2019
	Beginning balance			Depreciation			Others			Ending balance
Land	W	139,940			—			(10,043	)		129,897
Buildings		19,669			(5,070	)		14,097			28,696
(Government grants)		(50	)		1			36			(13	)
	W	159,559			(5,069	)		4,090			158,580

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020			March 31, 2019
Rental income	W	1,279			2,207
Operating and maintenance expenses related to rental income		(357	)		(244	)
	W	922			1,963

(4) Fair value of investment properties as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Book value		Fair value		Book value		Fair value
Land	W	114,463		188,885		129,897		202,042
Buildings		24,505		33,129		28,683		38,046
	W	138,968		222,014		158,580		240,088

The Group determined the fair value of investment property on the transition date based on valuations conducted by an independent valuation firm that is independent of the Group. The valuation firm has appropriate qualifications and experience in the valuation of real estate in the Republic of Korea, and the valuation was conducted using a comparison method, which is a method of obtaining economic value based on the marketability of the property. The fair values of the investment properties as of the reporting date were determined by considering fluctuations in the publicly announced individual land price after the KIFRS transition date. (January 1, 2010)

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

20. Construction Contracts

(1) Changes in major contract amount in which revenue is not yet recognized for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Increase (decrease) (*)		Recognized as revenue			Ending balance
Nuclear power plant construction in UAE and others	W	2,735,141		238,788		(207,421	)		2,766,508

(*) For the three-month period ended March 31, 2020, the increased balance of contracts from new orders and foreign exchange impact isW260,616 million and the decreased balance of contracts due to changes in scope of construction work isW21,828 million.

In millions of won	December 31, 2019
	Beginning balance		Increase (decrease) (*)		Recognized as revenue			Ending balance
Nuclear power plant construction in UAE and others	W	3,620,788		379,269		(1,264,916	)		2,735,141

(*) For the year ended December 31, 2019, the increased balance of contracts from new orders and foreign exchange impact isW390,224 million and the decreased balance of contracts due to changes in scope of construction work isW10,955 million.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

20. Construction Contracts, Continued

(2) Accumulated earned revenue, costs and others related to the Group’s construction contracts as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Accumulated earned revenue		Accumulated costs		Accumulated profit
Nuclear power plant construction in UAE and others	W	20,850,778		19,431,806		1,418,972

In millions of won	December 31, 2019
	Accumulated earned revenue		Accumulated costs		Accumulated profit
Nuclear power plant construction in UAE and others	W	20,971,487		19,566,647		1,404,840

(3) Gross amount due from customers recognized as assets and due to customers recognized as liabilities for contract work as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Assets (*1)		Liabilities (*2)		Assets (*1)		Liabilities (*2)
Nuclear power plant construction in UAE and others	W	54,177		60,298		53,827		73,420

(*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 with BOC (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. are not allowed without consent from the purchaser. BOC did not agree to disclose such information. Accordingly, the Group did not disclose such information based on KIFRS 1115 129.2(2) as it is probable that BOC may file a lawsuit for breach of contract if the Group does so. Also, the Group reported to the audit committee that those items will not be disclosed in the notes to the consolidated financial statements.

(5) Changes in estimates of contract revenues and costs related to the Group’s construction services for the three-month period ended March 31, 2020 are as follows:

In millions of won	March 31, 2020
											Assets from construction contracts				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	—		34,933			23,063			11,870		19,837		—		—		—		—
Plant maintenance & engineering service		1,187		(31	)		(77	)		46		34,340		—		—		—		125
	W	1,187		34,902			22,986			11,916		54,177		—		—		—		125

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill

(1) Intangible assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	716,299		(208	)		(560,806	)		—			155,285
Licenses and franchises		3,398		—			(3,398	)		—			—
Copyrights, patents rights and other industrial rights		100,471		—			(42,720	)		(9,178	)		48,573
Mining rights		556,330		—			(30,914	)		(478,727	)		46,689
Development expenditures		930,071		(4,515	)		(832,035	)		(19	)		93,502
Intangible assets under development		67,478		(7,885	)		—			(12,845	)		46,748
Usage rights of donated assets and others		582,825		—			(394,339	)		—			188,486
Leasehold rights		27,843		—			(20,880	)		—			6,963
Greenhouse gas emissions rights		89,655		—			—			—			89,655
Others		564,987		(78	)		(124,248	)		(15,615	)		425,046
	W	3,639,357		(12,686	)		(2,009,340	)		(516,384	)		1,100,947

In millions of won	December 31, 2019
	Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
Software	W	707,731		(235	)		(542,736	)		—			164,760
Licenses and franchises		3,398		—			(3,398	)		—			—
Copyrights, patents rights and other industrial rights		102,828		—			(40,389	)		(9,178	)		53,261
Mining rights		584,969		—			(28,456	)		(512,790	)		43,723
Development expenditures		916,834		(1,492	)		(822,972	)		(19	)		92,351
Intangible assets under development		73,335		(11,029	)		—			(12,845	)		49,461
Usage rights of donated assets and others		582,825		—			(389,664	)		—			193,161
Leasehold rights		25,989		—			(20,671	)		—			5,318
Greenhouse gas emissions rights		41,656		—			—			—			41,656
Others		557,749		(79	)		(119,446	)		(11,939	)		426,285
	W	3,597,314		(12,835	)		(1,967,732	)		(546,771	)		1,069,976

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance			Acquisitions		Disposals			Amortization			Others			Ending balance
Software	W	164,995			2,215		—			(17,248	)		5,531			155,493
(Government grants)		(235	)		—		—			27			—			(208	)
Copyrights, patents rights and other industrial rights		53,261			4		—			(2,092	)		(2,600	)		48,573
Mining rights		43,723			1,604		—			(1,451	)		2,813			46,689
Development expenditures		93,843			—		—			(7,113	)		11,287			98,017
(Government grants)		(1,492	)		—		—			270			(3,293	)		(4,515	)
Intangible assets under development		60,490			7,888		—			—			(13,745	)		54,633
(Government grants)		(11,029	)		—		—			—			3,144			(7,885	)
Usage rights of donated assets and others		193,161			—		—			(4,452	)		(223	)		188,486
(Government grants)		—			—		—			—			—			—
Leasehold rights		5,318			—		—			(208	)		1,853			6,963
Greenhouse gas emissions rights		41,656			1,725		(2,619	)		—			48,893			89,655
Others		426,364			347		(43	)		(5,849	)		4,305			425,124
(Government grants)		(79	)		—		—			1			—			(78	)
	W	1,069,976			13,783		(2,662	)		(38,115	)		57,965			1,100,947

In millions of won	December 31, 2019
	Beginning balance			Acquisitions		Disposals			Amortization			Impairment (*1)			Others (*2)			Ending balance
Software	W	157,681			42,694		(774	)		(81,883	)		—			47,277			164,995
(Government grants)		(420	)		—		—			202			—			(17	)		(235	)
Copyrights, patents rights and other industrial rights		67,112			171		(325	)		(9,196	)		—			(4,501	)		53,261
Mining rights		534,524			8,742		—			(7,186	)		(513,519	)		21,162			43,723
Development expenditures		92,486			687		—			(28,901	)		(68	)		29,639			93,843
(Government grants)		(2,110	)		—		—			833			—			(215	)		(1,492	)
Intangible assets under development		70,536			56,082		—			—			—			(66,128	)		60,490
(Government grants)		(10,564	)		—		—			—			—			(465	)		(11,029	)
Usage rights of donated assets and others		87,011			—		—			(15,632	)		—			121,782			193,161
(Government grants)		—			—		—			—			—			—			—
Leasehold rights		5,552			—		—			(741	)		—			507			5,318
Greenhouse gas emissions rights		7,050			118,743		(7,058	)		—			—			(77,079	)		41,656
Others		217,084			2,307		(164	)		(14,413	)		(22	)		221,572			426,364
(Government grants)		—			—		—			2			—			(81	)		(79	)
	W	1,225,942			229,426		(8,321	)		(156,915	)		(513,609	)		293,453			1,069,976

(*1) KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd., 100% owned subsidiaries, performed an impairment test over the mining rights and the Group recognized the amount of the carrying amount in excess of its recoverable amount as an impairment loss.

(*2) ‘Others’ include the business rights amounting toW172,434 million increased from the business combination between Korea East-West Power Co., Ltd. and Eumseong Natural Gas Power Co., Ltd.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of Australian dollars
March 31, 2020
Type	Description	Currency		Amount		Remaining useful lives
Software	ERP system and others		KRW		344	11 months ~ 1 year and 1 month
	Electricity sales information system		KRW		4,410	2 years 8 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right		KRW		6,170	2 years and 6 months
	Contributions to ARP NRC DC		KRW		32,340	7 years 9 months
Mining rights	Mining right of Bylong mine		AUD		—	- (*)
Development expenditures	Electricity sales information system		KRW		13,520	1 year and 11 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right		KRW KRW		30,251 6,296	6 years and 8 months 1 year
Others	Occupancy and use of public waters		KRW		91,094	16 years and 10 months
	Greenhouse gas emissions rights		KRW		25,933	—
	Business rights		KRW		170,518	29 years and 8 months

(*) The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. recognized impairment losses in full during the year ended December 31, 2019.

In millions of won and thousands of Australian dollars
December 31, 2019
Type	Description	Currency		Amount		Remaining useful lives
Software	ERP system and others		KRW		432	1 year and 2 months ~ 1 year and 4 months
	Electricity sales information system		KRW		4,824	3 years
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right		KRW		6,787	2 years and 9 months
	Contributions to ARP NRC DC		KRW		34,755	8 years
Mining rights	Mining right of Bylong mine		AUD		—	- (*)
Development expenditures	Electricity sales information system		KRW		15,283	2 years and 3 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge Dangjin power plant load facility usage right		KRW KRW		31,385 7,870	6 years and 11 months 1 year and 3 months
Others	Occupancy and use of public waters		KRW		92,446	17 years and 1 month
	Business rights		KRW		171,955	29 years and 11 months

(*) The carrying amount of mining right does not exist, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. recognized impairment losses in full during the year ended December 31, 2019.

(4) For the three-month periods ended March 31, 2020 and 2019, the Group recognized research and development expenses ofW154,470 million andW154,437 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

22. Trade and Other Payables

Trade and other payables as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Trade payables	W	2,381,499		—		2,859,721		—
Other trade payables		1,370,731		2,467,107		1,952,659		2,446,714
Accrued expenses		1,015,213		35,470		1,028,869		2,033
Leasehold deposits received		2,571		709		2,571		709
Other deposits received		168,781		68,274		163,382		68,702
Lease liabilities		658,582		4,556,341		635,349		4,434,784
Dividends payable		54,692		—		6,851		—
Others (*)		—		11,278		—		12,818
	W	5,652,069		7,139,179		6,649,402		6,965,760

(*) Details of others as of March 31, 2020 and December 31, 2019are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Advance received from local governments	W	—		4,278		—		5,818
Others		—		7,000		—		7,000
	W	—		11,278		—		12,818

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Current liabilities
Short-term borrowings	W	102,622			1,098,555
Current portion of long-term borrowings		185,321			217,579
Current portion of debt securities		7,558,479			7,545,485
Less : Current portion of discount on long-term borrowings		(1,017	)		(1,000	)
Less : Current portion of discount on debt securities		(3,006	)		(2,780	)
		7,842,399			8,857,839
Non-current liabilities
Long-term borrowings		3,625,374			3,411,052
Debt securities		57,653,890			55,716,183
Less : Discount on long-term borrowings		(19,985	)		(21,309	)
Less : Discount on debt securities		(115,078	)		(88,920	)
Add : Premium on debt securities		1,707			1,696
		61,145,908			59,018,702
	W	68,988,307			67,876,541

73

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(2) Repayment schedule of borrowings and debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
March 31, 2020
Type	Borrowings		Debt securities
Less than 1 year	W	287,943		7,558,479
1~ 5 years		2,193,962		30,902,567
Over 5 years		1,431,412		26,751,323
	W	3,913,317		65,212,369

In millions of won
December 31, 2019
Type	Borrowings		Debt securities
Less than 1 year	W	1,316,134		7,545,485
1~ 5 years		2,113,404		31,552,963
Over 5 years		1,297,648		24,163,220
	W	4,727,186		63,261,668

74

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
March 31, 2020
Type	Creditor	Interest rate (%)		Maturity		Foreign currency		Local currency
Local short-term borrowings	Woori Bank and others		1.86 ~ 3.93		2020.04.06 ~ 2020.06.30		—	W	5,284
Foreign short-term borrowings	Korea Development Bank and others		1.86 ~ 4.60		2020.05.06 ~ 2020.09.23		USD 63,468		77,596
Foreign short-term borrowings	BDO Unibank		3M BVAL + 50bp		2020.12.20		PHP 225,000		5,393
Bank overdraft	Kookmin Bank and others		2.10		2020.04.01		—		13,000
Bank overdraft	Woori Bank and others		Libor +1.26 ~ 1.76		2020.05.31 ~ 2021.02.26		—		1,349
								W	102,622

In millions of won and thousands of foreign currencies
December 31, 2019
Type	Creditor	Interest rate (%)		Maturity		Foreign currency		Local currency
Local short-term borrowings	DB financial investment and others		2.00 ~ 2.20		2020.01.13 ~2020.02.05		—	W	280,000
Foreign short-term borrowings	LG-CNS		4.60		2020.06.30		USD 23,699		27,439
Foreign short-term borrowings	BDO Unibank		3M BVAL + 50bp		2020.12.20		PHP 225,000		5,130
Foreign short-term borrowings	Mizuho Bank		4.60		2020.06.30		USD 11,027		12,767
Electronic short-term bonds	Mirae asset daewoo and others		1.72 ~ 2.20		2020.01.10 ~2020.02.05		—		400,000
Local bank overdraft	Korea development Bank and others		1.98 ~ 2.75		2020.01.01 ~2020.04.16		—		373,219
								W	1,098,555

75

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
March 31, 2020
Type		Interest rate (%)		Maturity		Foreign currency		Local currency
Local long-term borrowings
Korea Development Bank	Others		0.50		2020~2044		—	W	3,361
	Facility		2.50~4.60		2023~2028		—		57,762
	Operating funds		2.33~3.04		2020~2023		—		64,300
	Operating funds		1yr KoFC bond rate +0.95		2020~2022		—		24,000
Hana Bank	Commercial Paper		3M CD+0.13~0.32		2021~2024		—		1,150,000
	Facility		4.60		2028		—		12,127
	Facility		3yr KTBrate-1.25 Standard overdraft rate+2.45		2020~2035		—		30,095
IBK	PF Refinancing		CD+1.25		2030		—		10,259
Export-Import Bank of Korea	Project loans		1.50		2026		—		19,150
	Operating funds		1.78		2023		—		15,700
Korea Energy Agency	Development of power resources		3yr KTB rate-2.25		2023~2025		—		4,048
	Facility		3yr KTB rate-2.25		2020~2024		—		1,925
	Project loans		—		2023		—		1,197
	Others		KTB rate-2.25		2024~2028		—		15,283
Shinhan Bank	Facility		CB rate+1.10		2028		—		18,191
	Others		3.95		2035		—		97,941
	Others		Standard overdraft rate+1.00		2035		—		97,941
Kookmin Bank	Facility		MOR+0.79 3M CD+1.79		2023~2031		—		32,582
Others	Facility		1.75~6.80		2026~2037		—		523,604
	Facility		CB rate+1.20 3M CD+1.60 Standard overdraft rate+2.45		2023~2037		—		85,325
	PF Refinancing		4.10		2030		—		28,496
	Others		4.50~7.90		2022~2039		—		102,364
									2,395,651
Foreign long-term borrowings
Korea Energy Agency	Project loans		—		2021~2023	USD	8,744		10,690
Export-Import Bank of Korea and others	Direct loan and others		1M Libor+1.80~3.20		2036	USD	101,943		124,635
	Direct loan and others		3M Libor+2.75~3.70		2027	JOD	146,380		252,418
	PF Loan		6M Libor+2.50~2.70		2032	USD	116,151		142,007
	Others		3.88		2021	USD	289,084		353,434
SCNT and others	Shareholder’s loan		8.00		2023	USD	12,357		15,107
	Shareholder’s loan		8.00		2031	JOD	4,853		8,368
Samsung Life Insurance and others	Syndicated Loan		3.10		2032	JPY	4,692,815		53,068
Woori Bank and others	Syndicated Loan		JPY 6M Libor+2.00		2032	JPY	3,027,196		34,232
IFC and others	Others		6M Libor+5.00		2031		PKR 39,986,650		295,501
Federal Financing Bank and others	PF Loan		2.39~13.00		2031~2038		USD 101,630		124,253
Others	Others		—		—		USD 1,088		1,331
									1,415,044
									3,810,695
Less : Discount on long-term borrowings									(21,002	)
Less : Current portion of long-term borrowings									(185,321	)
Add : Current portion of discount on long-term borrowings									1,017
								W	3,605,389

76

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2019
Type		Interest rate (%)	Maturity	Foreign currency		Local currency
Local long-term borrowings
Korea Development Bank	Others	0.50	2020~2044		—	W	3,500
	Facility	2.50~4.60	2023~2028		—		59,845
	Operating funds	2.33~3.04	2020~2022		—		55,000
	Operating funds	1yr KoFC bond rate +0.95	2020~2022		—		24,000
Hana Bank	Commercial Paper	3M CD+0.13~0.32	2021~2024		—		1,150,000
	Facility	4.60	2028		—		12,466
	Facility	3yr KTBrate-1.25	2020~2028		—		6,699
IBK	PF Refinancing	CD+1.25	2030		—		10,497
Export-Import Bank of Korea	Project loans	1.50	2026		—		19,150
	Operating funds	2.21	2020		—		35,000
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25	2023~2025		—		4,350
	Facility	3yr KTB rate-2.25	2020~2024		—		2,058
	Project loans	—	2023		—		1,197
	Others	KTB rate-2.25	2024~2028		—		15,696
Shinhan Bank	Facility	CB rate+1.10	2028		—		18,698
	Others	3.95	2035		—		99,146
	Others	Standard overdraft rate+1.00	2035		—		99,146
Kookmin Bank	Facility	3.16	2020		—		10,000
	Facility	MOR+0.79	2023		—		23,333
Others	Facility	1.75~6.80	2026~2036		—		390,044
	Facility	CB rate+1.10~1.60 Standard overdraft rate+2.45	2023~2036		—		111,834
	PF Refinancing	4.10	2030		—		29,159
	Others	4.50~7.90	2022~2039		—		102,348
							2,283,166
Foreign long-term borrowings
Korea Energy Agency	Project loans	—	2021~2023	USD	8,744		10,123
Export-Import Bank of Korea and others	Direct loan and others	1M Libor+1.80~3.20	2036	USD	101,912		117,994
	Direct loan and others	3M Libor+2.75~3.70	2027	JOD	146,380		239,039
	PF Loan	6M Libor+2.50~2.70	2032	USD	118,684		137,412
	Others	3.88	2021	USD	289,709		334,685
SCNT and others	Shareholder’s loan	6.50~8.00	2023	USD	13,000		15,051
	Shareholder’s loan	8.00	2031	JOD	4,853		7,925
Samsung Life Insurance and others	Syndicated Loan	3.10	2032	JPY	4,981,038		52,972
Woori Bank and others	Syndicated Loan	JPY 6M Libor+2.00	2032	JPY	3,213,121		34,171
IFC and others	Others	6M Libor+5.00	2031		PKR 37,252,930		278,652
Federal Financing Bank and others	PF Loan	2.39~13.00	2031~2038	USD	101,380		117,377
Others	Others	—	—	USD	57		64
							1,345,465
							3,628,631
Less : Discount on long-term borrowings							(22,309	)
Less : Current portion of long-term borrowings							(217,579	)
Add : Current portion of discount on long-term borrowings							1,000
						W	3,389,743

77

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
	Issue date	Maturity	Interest rate (%)	March 31, 2020			December 31, 2019
Electricity bonds	2010.04.08~2020.03.30	2020.04.08~2049.10.24	1.32~5.26	W	29,700,000			28,450,000
Corporate bonds (*)	2009.10.16~2020.03.18	2020.04.05~2050.02.25	1.29~6.00		24,253,577			24,463,577
					53,953,577			52,913,577
Less : Discount on local debt securities					(41,214	)		(42,274	)
Less : Current portion of local debt securities					(5,830,000	)		(6,340,000	)
Add : Current portion of discount on local debt securities					1,405			1,409
				W	48,083,768			46,532,712

(*) Corporate bonds of HeeMang Sunlight Power Co., Ltd. amounting toW2,697 million can be redeemed on every March 31 for five years from its issue date, March 31, 2016.

(6) Foreign debt securities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won and thousands of foreign currencies
March 31, 2020
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~7.95	USD	249,076	W	304,520
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00	USD	314,717		384,773
FY-04	2004.04.23	2034.04.23	5.13	USD	286,920		350,788
FY-11	2011.07.13	2021.07.13	4.75	USD	500,000		611,300
FY-12	2012.09.19	2022.09.19	3.00	USD	750,000		916,950
FY-13	2013.09.25	2020.09.25	5.75	AUD	325,000		244,585
FY-14	2014.07.30~2014.12.02	2020.06.02~2029.07.30	2.50~3.57	USD	600,000		733,560
FY-15	2015.06.15	2025.06.15	3.25	USD	300,000		366,780
FY-16	2016.01.21	2021.07.21	2.50	USD	300,000		366,780
FY-17	2017.04.12~2017.07.25	2020.04.12~2027.07.25	2.38~3.13	USD	1,100,000		1,344,860
FY-17	2017.10.30	2037.10.30	1.70	EUR	40,000		53,946
FY-17	2017.11.16	2037.11.16	2.36	SEK	450,000		54,774
FY-18	2018.01.29~2018.07.25	2021.01.29~2023.07.25	3.00~3.88	USD	1,800,000		2,200,680
FY-18	2018.03.13	2028.03.13	3.35	HKD	1,650,000		260,139
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38	USD	800,000		978,080
FY-19	2019.02.27	2024.02.27	0.13	CHF	200,000		254,762
FY-19	2019.07.19	2024.07.19~2028.07.19	0.00~0.05	CHF	300,000		382,143
FY-19	2019.07.22	2022.07.22	2.38	USD	300,000		366,780
FY-19	2019.10.30	2024.10.30	3M BBSW+97bp	AUD	300,000		225,771
FY-19	2019.12.19	2037.12.31	3.30~5.70	USD	400,817		490,040
FY-20	2020.02.03	2025.02.23	1.29	USD	300,000		366,781
							11,258,792
Less : Discount on foreign debt securities							(76,870	)
Add : Premium on foreign debt securities							1,707
Less : Current portion of foreign debt securities							(1,728,479	)
Add : Current portion of discount on foreign debt securities							1,601
						W	9,456,751

78

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won and thousands of foreign currencies
December 31, 2019
Type	Issue date	Maturity	Interest rate (%)	Foreign currency		Local currency
FY-96	1996.04.01~1996.12.06	2026.12.01~2096.04.01	6.00~7.95		USD 249,074	W	288,379
FY-97	1997.01.31~1997.08.04	2027.02.01~2027.08.01	6.75~7.00		USD 314,717		364,379
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920		332,196
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000		578,900
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000		868,350
FY-13	2013.09.25	2020.09.25	5.75		AUD 325,000		263,361
FY-14	2014.07.30~2014.12.02	2020.06.02~2029.07.30	2.50~3.57		USD 600,000		694,680
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000		347,340
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000		347,340
FY-17	2017.04.12~2017.07.25	2020.04.12~2027.07.25	2.38~3.13		USD 1,100,000		1,273,580
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000		51,897
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000		55,737
FY-18	2018.01.29~2018.07.25	2021.01.29~2023.07.25	3.00~3.88		USD 1,800,000		2,084,040
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000		245,289
FY-19	2019.01.22~2019.06.24	2022.01.22~2024.06.24	2.50~3.38		USD 800,000		926,240
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000		239,104
FY-19	2019.07.19	2024.07.19~2027.07.19	0.00~0.05		CHF 300,000		358,656
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000		347,340
FY-19	2019.10.31	2024.10.30	3M BBSW+97bp		AUD 300,000		243,102
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 378,460		438,181
							10,348,091
Less : Discount on foreign debt securities							(49,426	)
Add : Premium on foreign debt securities							1,696
Less : Current portion of foreign debt securities							(1,205,485	)
Add : Current portion of discount on foreign debt securities							1,371
						W	9,096,247

(7) Changes in borrowings and debt securities for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020			March 31, 2019
Beginning balance	W	67,876,541			61,034,627
Cash flow		519,362			1,909,767
Effect of exchange rate fluctuations		617,470			245,912
Others		(25,066	)		1,612
Ending balance	W	68,988,307			63,191,918

79

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease

1) Group as a lessee

(1) Lease contracts

The Group applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognizedW14,158 million as expense for the three-month period ended March 31, 2020. The Group also applies the leases oflow-value assets recognition exemption to leases contracts with underlying assets considered to be low value (i.e. approximately less thanW5 million), and recognizedW569 million as expense for the three-month period ended March 31, 2020.

The Group has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2) Right-of-use assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Acquisition cost		Accumulated depreciation			Book value
Land	W	718,590		(61,603	)		656,987
Buildings		53,141		(23,343	)		29,798
Structures		28,458		(3,020	)		25,438
Machinery		1,308		(516	)		792
Ships		4,214,493		(533,878	)		3,680,615
Vehicles		24,736		(10,950	)		13,786
Others (*)		2,649,412		(2,310,163	)		339,249
	W	7,690,138		(2,943,473	)		4,746,665

In millions of won	December 31, 2019
	Acquisition cost		Accumulated depreciation			Book value
Land	W	693,103		(49,029	)		644,074
Buildings		54,980		(20,403	)		34,577
Structures		28,198		(2,554	)		25,644
Machinery		1,308		(484	)		824
Ships		4,113,754		(425,465	)		3,688,289
Vehicles		20,817		(7,109	)		13,708
Others (*)		2,661,850		(2,285,393	)		376,457
	W	7,574,010		(2,790,437	)		4,783,573

(*) Including power purchase agreements (“PPA”) with GS EPS and two other LNG combined power suppliers

80

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease, Continued

(3) Changes inright-of-use assets for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Increase		Depreciation			Others			Ending balance
Land	W	644,074		—		(12,357	)		25,270			656,987
Buildings		34,577		7,104		(6,823	)		(5,060	)		29,798
Structures		25,644		260		(466	)		—			25,438
Machinery		824		—		(32	)		—			792
Ships		3,688,289		100,740		(108,414	)		—			3,680,615
Vehicles		13,708		2,259		(1,948	)		(233	)		13,786
Others		376,457		3,508		(18,596	)		(22,120	)		339,249
	W	4,783,573		113,871		(148,636	)		(2,143	)		4,746,665

In millions of won	December 31, 2019
	Beginning balance		Changes in accounting policies (*)		Increase		Depreciation			Ending balance
Land	W	—		684,386		8,717		(49,029	)		644,074
Buildings		—		36,874		18,106		(20,403	)		34,577
Structures		—		20,840		7,358		(2,554	)		25,644
Machinery		—		—		1,308		(484	)		824
Ships		—		3,986,947		126,807		(425,465	)		3,688,289
Vehicles		—		11,258		9,559		(7,109	)		13,708
Others		—		403,346		49,141		(76,030	)		376,457
	W	—		5,143,651		220,996		(581,074	)		4,783,573

(*) Including transferred amount ofW195,704 million, which was classified as finance lease assets as of December 31, 2018.

(4) Lease liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
Less than 1 year	W	703,062
1 ~ 5 years		2,438,325
More than 5 years		2,851,619
		5,993,006
Less : Discount		(778,083	)
Present value of lease payment	W	5,214,923

In millions of won	December 31, 2019
Less than 1 year	W	686,445
1 ~ 5 years		2,334,883
More than 5 years		2,735,681
		5,757,009
Less : Discount		(686,876	)
Present value of lease payment	W	5,070,133

81

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease, Continued

(5) The details of the liquidity classification of lease liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Current lease liabilities	W	658,582		635,349
Non-current lease liabilities		4,556,341		4,434,784
	W	5,214,923		5,070,133

(6) Changes in lease liabilities for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Increase		Decrease			Interest expenses		Others (*)		Ending balance
Leaseliabilities	W	5,070,133		108,102		(230,313	)		30,446		236,555		5,214,923

(*) Including translation effect of foreign currency lease liabilities and others.

In millions of won	December 31, 2019
	Beginning balance		Changes in accounting policies		Increase		Decrease			Interest expenses		Others (*)		Ending balance
Leaseliabilities	W	283,806		4,943,584		218,800		(659,387	)		85,950		197,380		5,070,133

(*) Including translation effect of foreign currency lease liabilities and others.

(7) Details of expense relating to lease contracts as lessee for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Depreciation ofright-of-use assets	W	148,636		135,141
Interest expenses of lease liabilities		30,446		20,381
Leases expenses for short-term leases		14,158		4,722
Leases expenses for leases oflow-value assets		569		341
Variable lease payments		10,863		(4,281	)
	W	204,672		156,304

(8) For the three-month periods ended March 31, 2020 and 2019, the total cash outflow related to the lease contract, including cash outflows due to short-term leases and leases oflow-value asset leases, amounts toW255,903 million andW132,566 million, respectively.

82

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

24. Lease, Continued

2) Group as a lessor

(1) Finance lease contracts

The Group entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana gas combined power plant over a 25 year lease term, and an 89.1MW level Fujeij wind power plant over a 20 year lease term. Also, the Group has providedfly-ash pipe conduit as finance leases with an average lease term of 7 years. In addition, the Group provides 30 energy storage system installation projects and 103 energy efficiency contracts as finance leases with a lease term of 1 to 10 years. Also, the Group entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

(2) Profit and loss related to finance lease for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Finance income on the net investment in the lease	W	30,846		20,427

(3) Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Less than 1 year	W	181,968			173,093
1 ~ 2 years		158,435			150,895
2 ~ 3 years		158,489			150,596
3 ~ 4 years		156,398			149,364
4 ~ 5 years		153,271			145,964
More than 5 years		1,748,882			1,740,652
		2,557,442			2,510,564
Less : Unearned finance income		(1,326,456	)		(1,331,723	)
Net investment in the lease	W	1,230,986			1,178,841

The implicit interest rate for a lease term is determined on the lease contract date. The average implicit interest rate of the finance lease contracts is from 3.5% up to 16.66% per year as of March 31, 2020. (prior year : 3.5%~16.48%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	862			1,133
Bad debt expense		—			—
Reversal of allowance for doubtful accounts		(169	)		(271	)
Ending balance	W	693			862

83

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

25. Employment Benefits

(1) Employment benefit obligations as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Net defined benefit asset	W	—		(1,047	)
Net defined benefit obligations		2,069,031		1,925,134
Other long-term employee benefit obligations		4,589		4,720
	W	2,073,620		1,928,807

(2)    Principal assumptions on actuarial valuation as of March 31, 2020 and December 31, 2019 are as follows:

	March 31, 2020	December 31, 2019
Discount rate	1.88% ~ 2.05%	1.92% ~ 2.05%
Weighted average future salary and benefit levels	4.24%	4.39%
Weighted average duration	13.24 years	13.23 years

84

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(3) Details of expense relating to defined benefit plans for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020			March 31, 2019
Current service cost	W	114,569			99,702
Interest cost		19,458			19,756
Expected return on plan assets		(10,351	)		(10,215	)
Past service cost		(2,027	)		—
Loss from settlement		—			(234	)
	W	121,649			109,009

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

In millions of won	March 31, 2020		March 31, 2019
Cost of sales	W	90,066		81,475
Selling and administrative expenses		18,892		13,713
Others(Construction-in-progress and others)		12,691		13,821
	W	121,649		109,009

In addition, for the three-month periods ended March 31, 2020 and 2019, employee benefit obligations expenses ofW11,687 million andW16,253 million, respectively, are recognized as cost of sales; andW253 million andW3,490 million, respectively, are recognized as selling and administrative expenses; andW2,381 million andW3,256 million, respectively, are recognized asconstruction-in-progress and others, relates to the Group’s defined contribution plans.

85

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Present value of defined benefit obligation from funded plans	W	4,177,620			4,035,400
Fair value of plan assets		(2,108,589	)		(2,111,313	)
Net liabilities incurred from defined benefit plans	W	2,069,031			1,924,087

(5) Changes in the present value of defined benefit obligations for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	4,035,400			3,414,116
Current service cost		114,569			440,300
Interest cost (*)		19,458			83,619
Remeasurement component		43,857			(93,736	)
Past service cost		(2,027	)		301,442
Loss (profit) from settlement		—			(2,018	)
Actual payments		(33,791	)		(108,057	)
Others		154			(266	)
Ending balance	W	4,177,620			4,035,400

(*) 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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	2,111,313			1,775,331
Expected return		10,351			41,597
Remeasurement component		1,390			(11,186	)
Contributions by the employers		1,669			348,386
Actual payments		(16,202	)		(42,815	)
Others		68			—
Ending balance	W	2,108,589			2,111,313

In addition, losses on accumulated remeasurement component amounted toW147,455 million andW117,779 million have been recognized as other comprehensive income or loss for the three-month period ended March 31, 2020 and for the year ended December 31, 2019, respectively.

86

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Equity instruments	W	214,909		189,235
Debt instruments		612,514		648,265
Bank deposit		234,905		199,743
Others		1,046,261		1,074,070
	W	2,108,589		2,111,313

For the three-month period ended March 31, 2020 and for the year ended December 31, 2019, actual returns on plan assets amounted toW11,741 million andW30,411 million, respectively.

(8) Remeasurement component recognized in other comprehensive income (loss) for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Actuarial gain from changes in financial assumptions	W	8,714			(2,916	)
Experience adjustments, etc.		35,143			(90,820	)
Expected return		(1,390	)		11,186
	W	42,467			(82,550	)

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

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

26. Provisions

(1) Provisions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Employment benefits
Provisions for employment benefits	W	1,061,789		—		975,619		—
Litigation
Litigation provisions		42,369		47,983		39,177		49,221
Decommissioning cost
Nuclear plants		—		16,083,989		—		15,994,039
Spent fuel		334,712		1,018,649		401,741		953,539
Radioactive waste		77,644		1,810,533		77,053		1,811,029
PCBs		—		150,571		—		152,981
Other recovery provisions		—		16,866		—		10,773
Others
Power plant regional support program		177,719		—		140,133		—
Transmission regional support program		176,575		—		139,785		—
Provisions for financial guarantee		11		76,902		111		81,246
Provisions for RPS		45,626		—		2,889		—
Provisions for greenhouse gas emissions obligations		818,132		—		682,459		��
Others		145,061		16,436		145,754		13,220
	W	2,879,638		19,221,929		2,604,721		19,066,048

88

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

26. Provisions, Continued

(2) Changes in provisions for the March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Increase in provision		Payments			Reversals			Others		Ending balance
Employment benefits
Provisions for employment benefits	W	975,619		246,662		(160,492	)		—			—		1,061,789
Litigation
Litigation provisions		88,398		3,920		(17,606	)		(1,585	)		17,225		90,352
Decommissioning cost
Nuclear plants		15,994,039		97,614		(7,664	)		—			—		16,083,989
Spent fuel		1,355,280		147,871		(149,790	)		—			—		1,353,361
Radioactive waste		1,888,082		8,920		(8,825	)		—			—		1,888,177
PCBs		152,981		755		(3,165	)		—			—		150,571
Other recovery provisions		10,773		5,647		—			—			447		16,867
Others
Power plant regional support program		140,133		39,455		(9,498	)		—			7,629		177,719
Transmission regional support program		139,785		69,148		(32,358	)		—			—		176,575
Provisions for financial guarantee		81,357		164		(70	)		(4,975	)		436		76,912
Provisions for RPS		2,889		146,006		(58,214	)		(45,055	)		—		45,626
Provisions for greenhouse gas emissions obligations		682,459		117,525		—			—			18,148		818,132
Others		158,974		2,852		(935	)		(102	)		708		161,497
	W	21,670,769		886,539		(448,617	)		(51,717	)		44,593		22,101,567
In millions of won	December 31, 2019
	Beginning balance		Increase in provision		Payments			Reversals			Others		Ending balance
Employment benefits
Provisions for employment benefits	W	976,347		900,033		(879,980	)		(20,781	)		—		975,619
Litigation
Litigation provisions		77,793		59,366		(17,236	)		(31,525	)		—		88,398
Decommissioning cost
Nuclear plants		13,388,134		2,639,562		(33,657	)		—			—		15,994,039
Spent fuel		1,291,354		440,029		(376,103	)		—			—		1,355,280
Radioactive waste		1,685,008		209,551		(6,787	)		—			310		1,888,082
PCBs		147,668		14,251		(8,938	)		—			—		152,981
Other recovery provisions		10,477		2,020		(2,033	)		—			309		10,773
Others
Power plant regional support program		137,668		41,341		(48,390	)		—			9,514		140,133
Transmission regional support program		151,698		169,616		(181,529	)		—			—		139,785
Provisions for tax		6,845		—		—			(6,847	)		2		—
Provisions for financial guarantee		15,586		83,910		(16,589	)		(1,551	)		1		81,357
Provisions for RPS		93,919		222,119		(313,149	)		—			—		2,889
Provisions for greenhouse gas emissions obligations		136,187		724,002		(152,463	)		(25,267	)		—		682,459
Others		61,862		113,751		(16,217	)		(833	)		411		158,974
	W	18,180,546		5,619,551		(2,053,071	)		(86,804	)		10,547		21,670,769

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

27. Government Grants

(1) Government grants as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Land	W	(21,818	)		(21,817	)
Buildings		(60,636	)		(61,920	)
Structures		(186,443	)		(186,554	)
Machinery		(154,530	)		(158,907	)
Vehicles		(1,736	)		(2,275	)
Equipment		(204	)		(241	)
Tools		(335	)		(403	)
Construction-in-progress		(66,910	)		(61,211	)
Investment properties		(11	)		(13	)
Software		(208	)		(235	)
Development expenditures		(4,515	)		(1,492	)
Intangible assets under development		(7,885	)		(11,029	)
Other intangible assets		(78	)		(79	)
	W	(505,309	)		(506,176	)

90

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

27. Government Grants, Continued

(2) Changes in government grants for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance			Receipt			Acquisitions			Offset items with depreciation expense and others		Disposals		Others			Ending balance
Cash	W	—			(150	)		—			—		—		150			—
Land		(21,817	)		—			—			—		—		(1	)		(21,818	)
Buildings		(61,920	)		—			—			1,287		—		(3	)		(60,636	)
Structures		(186,554	)		—			—			2,369		474		(2,732	)		(186,443	)
Machinery		(158,907	)		—			—			4,252		126		(1	)		(154,530	)
Vehicles		(2,275	)		—			—			548		—		(9	)		(1,736	)
Equipment		(241	)		—			—			44		—		(7	)		(204	)
Tools		(403	)		—			—			68		—		—			(335	)
Construction-in-progress		(61,211	)		—			(1,464	)		—		—		(4,235	)		(66,910	)
Investment properties		(13	)		—			—			—		—		2			(11	)
Software		(235	)		—			—			27		—		—			(208	)
Development expenditures		(1,492	)		—			—			270		—		(3,293	)		(4,515	)
Intangible assets under development		(11,029	)		—			—			—		—		3,144			(7,885	)
Other intangible assets		(79	)		—			—			1		—		—			(78	)
	W	(506,176	)		(150	)		(1,464	)		8,866		600		(6,985	)		(505,309	)

In millions of won	December 31, 2019
	Beginning balance			Receipt			Acquisitions		Offset items with depreciation expense and others		Disposals		Others			Ending balance
Cash	W	—			(21,705	)		—		—		—		21,705			—
Land		(21,968	)		—			—		—		151		—			(21,817	)
Buildings		(63,189	)		—			—		6,214		—		(4,945	)		(61,920	)
Structures		(190,854	)		—			—		9,373		2,405		(7,478	)		(186,554	)
Machinery		(173,242	)		—			—		17,993		635		(4,293	)		(158,907	)
Vehicles		(4,220	)		—			—		2,170		5		(230	)		(2,275	)
Equipment		(418	)		—			—		262		—		(85	)		(241	)
Tools		(675	)		—			—		281		—		(9	)		(403	)
Construction-in-progress		(54,740	)		—			12,338		—		—		(18,809	)		(61,211	)
Finance lease assets		(26	)		—			—		—		—		26			—
Investment properties		(50	)		—			—		1		—		36			(13	)
Software		(420	)		—			—		202		—		(17	)		(235	)
Development expenditures		(2,110	)		—			—		833		—		(215	)		(1,492	)
Intangible assets under development		(10,564	)		—			—		—		—		(465	)		(11,029	)
Other intangible assets		—			—			—		2		—		(81	)		(79	)
	W	(522,476	)		(21,705	)		12,338		37,331		3,196		(14,860	)		(506,176	)

91

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

28. Deferred Revenue

Deferred revenue related to the Group’s construction contracts for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	9,201,538			8,606,563
Increase during the period		263,973			1,199,783
Recognized as revenue during the period		(152,636	)		(604,808	)
Ending balance	W	9,312,875			9,201,538

29. Non-financial Liabilities

Non-financial liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Current		Non-current		Current		Non-current
Advance received	W	3,739,785		222,858		3,825,240		192,863
Unearned revenue		30,806		6,593		30,988		6,589
Deferred revenue		584,668		8,728,207		590,928		8,610,610
Withholdings		318,829		10,920		160,977		10,901
Others		1,464,733		35,950		1,080,220		13,489
	W	6,138,821		9,004,528		5,688,353		8,834,452

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

30. Contributed Capital

(1) Details of shares issued as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won except share information

March 31, 2020

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, 2019

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 issued capital stock for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

Number of shares	March 31, 2020		December 31, 2019
Beginning balance		641,964,077		641,964,077
Ending balance		641,964,077		641,964,077

(3) Details of share premium as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Share premium	W	843,758		843,758

93

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Legal reserve (*)	W	1,604,910		1,604,910
Voluntary reserves		34,785,425		34,785,425
Retained earnings before appropriations		12,793,451		12,811,798
Retained earnings	W	49,183,786		49,202,133

(*) 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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
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		28,967,976		28,967,976
Reserve for equalizing dividends		210,000		210,000
	W	34,785,425		34,785,425

(*) 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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	49,202,133			51,519,119
Net profit (loss) for the period attributed to owner of the Group		22,979			(2,345,517	)
Changes in equity method retained earnings		(248	)		(6,789	)
Remeasurement of defined benefit liability, net of tax		(41,078	)		36,160
Transfer of gain (loss) on valuation of financial assets through other comprehensive income		—			(840	)
Ending balance	W	49,183,786			49,202,133

(4) Dividends paid for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	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	—		—

In millions of won	December 31, 2019
	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	—		—

94

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

31. Retained Earnings and Dividends Paid, Continued

(5) Changes in retained earnings of investments in associates and joint ventures for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	(2,820	)		3,969
Changes		(248	)		(6,789	)
Ending balance	W	(3,068	)		(2,820	)

(6) Changes in remeasurement components related to defined benefit liability for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Beginning balance	W	(117,779	)		(219,381	)
Changes		(47,260	)		76,395
Income tax effect		6,182			(40,235	)
Transfer to reserve for business expansion		11,402			65,442
Ending balance	W	(147,455	)		(117,779	)

32. Hybrid Bonds

Hybrid bonds classified as equity(non-controlling interest) as of March 31, 2020 and December 31, 2019are as follows:

In millions of won
Issuer	Hybrid bond		Issued date		Maturity		Yield (%)		March 31, 2020			December 31, 2019
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 Group decides not to pay dividends on common 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 Group’s consolidated financial statements.

95

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

33. Other Components of Equity

(1) Other components of equity as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Other capital surplus	W	1,224,402			1,226,364
Accumulated other comprehensive loss		(318,784	)		(280,730	)
Other equity		13,294,973			13,294,973
	W	14,200,591			14,240,607

(2) Changes in other capital surplus for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020								December 31, 2019
	Gain on disposal of treasury stocks		Others			Subtotal			Gain on disposal of treasury stocks		Others			Subtotal
Beginning balance	W	387,524		838,840			1,226,364			387,524		847,301			1,234,825
Issuance of share capital of subsidiary and others		—		(1,962	)		(1,962	)		—		—			—
Others		—		—			—			—		(8,461	)		(8,461	)
Ending balance	W	387,524		836,878			1,224,402			387,524		838,840			1,226,364

96

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

33. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Financial asset at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income (loss) of investments in associates and joint ventures			Reserve for overseas operations translation			Reserve for loss on valuation of derivatives			Total
Beginning balance	W	(92,599	)		142,896			(294,898	)		(36,129	)		(280,730	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		(51,544	)		—			—			—			(51,544	)
Shares in other comprehensive income (loss) of associates and joint ventures, net of tax		—			(38,836	)		—			—			(38,836	)
Foreign currency translation of foreign operations, net of tax		—			—			38,364			—			38,364
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—			—			13,962			13,962
Ending balance	W	(144,143	)		104,060			(256,534	)		(22,167	)		(318,784	)
In millions of won	December 31, 2019
	Financial asset at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures			Reserve for overseas operations translation			Reserve for loss on valuation of derivatives			Total
Beginning balance	W	(81,708	)		123,553			(350,245	)		(50,170	)		(358,570	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax		(10,891	)		—			—			—			(10,891	)
Shares in other comprehensive income of associates and joint ventures, net of tax		—			19,343			—			—			19,343
Foreign currency translation of foreign operations, net of tax		—			—			55,347			—			55,347
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax		—			—			—			14,041			14,041
Ending balance	W	(92,599	)		142,896			(294,898	)		(36,129	)		(280,730	)

(4) Other equity as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Statutory revaluation reserve	W	13,295,098			13,295,098
Changes in other equity		(125	)		(125	)
	W	13,294,973			13,294,973

97

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

34. Sales

Details of sales for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020						March 31, 2019
	Domestic		Overseas		Total		Domestic		Overseas		Total
[Type of goods and services]
Sales of goods	W	14,550,236		62,609		14,612,845		14,676,701		77,311		14,754,012
Electricity		14,304,384		—		14,304,384		14,437,525		—		14,437,525
Heat supply		104,868		—		104,868		132,598		—		132,598
Others		140,984		62,609		203,593		106,578		77,311		183,889
Sales related to provision of services		52,233		67,992		120,225		51,758		43,121		94,879
Sales related to provision of construction services		28,006		179,415		207,421		17,517		238,537		256,054
Revenue related to transfer of assets from customers		152,636		—		152,636		143,459		—		143,459
	W	14,783,111		310,016		15,093,127		14,889,435		358,969		15,248,404
[Timing of revenue recognition]
Performance obligations satisfied at a point in time	W	14,550,236		62,609		14,612,845		14,676,701		77,311		14,754,012
Performance obligations satisfied over time		232,875		247,407		480,282		212,734		281,658		494,392
	W	14,783,111		310,016		15,093,127		14,889,435		358,969		15,248,404

98

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

35. Selling and Administrative Expenses

Selling and administrative expenses for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Salaries	W	196,094		196,655
Retirement benefit expense		19,145		17,203
Welfare and benefit expense		28,128		27,690
Insurance expense		2,579		3,019
Depreciation		53,126		59,055
Amortization of intangible assets		17,322		13,964
Bad debts expense		18,477		4,952
Commission		108,417		179,967
Advertising expense		5,409		6,883
Training expense		983		1,553
Vehicle maintenance expense		2,097		2,866
Publishing expense		837		1,439
Business development expense		834		771
Rent expense		5,586		6,882
Telecommunication expense		2,195		2,265
Transportation expense		428		211
Taxes and dues		7,148		4,016
Expendable supplies expense		1,939		1,753
Water, light and heating expense		4,479		4,455
Repairs and maintenance expense		13,614		12,731
Ordinary development expense		41,970		41,030
Travel expense		3,458		4,509
Clothing expense		696		443
Survey and analysis expense		188		217
Membership fee		541		434
Others		30,108		31,413
	W	565,798		626,376

99

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

36. OtherNon-operating Income and Expense

(1) Othernon-operating income for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Reversal of other provisions	W	1,570		7,080
Reversal of other allowance for bad debts		24		—
Gains on government grants		71		71
Gains on assets contributed		10,437		64
Gains on liabilities exempted		830		103
Compensation and reparations revenue		19,495		18,842
Revenue from research contracts		937		1,150
Rental income		46,867		46,982
Others		6,293		6,305
	W	86,524		80,597

(2) Othernon-operating expense for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Compensation and indemnification expense	W	313		—
Accretion expenses of other provisions		56		51
Depreciation expenses on investment properties		370		244
Depreciation expenses on idle assets		1,639		1,636
Other bad debts expense		35		847
Donations		11,143		11,985
Others		3,057		5,473
	W	16,613		20,236

100

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

37. Other Gains (Losses)

Composition of other gains (losses) for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020			March 31, 2019
Other gains
Gains on disposal of property, plant and equipment	W	27,357			8,833
Gains on disposal of intangible assets		—			97
Gains of disposal of investment property		34,423			—
Gains on foreign currency translation		12,018			4,540
Gains on foreign currency transactions		7,830			6,301
Gains on insurance proceeds		—			13
Others		61,244			66,345
Other losses
Losses on disposal of property, plant and equipment		(7,786	)		(13,992	)
Impairment loss on property, plant and equipment		—			(2,279	)
Losses on foreign currency translation		(8,581	)		(58,960	)
Losses on foreign currency transactions		(22,100	)		(9,860	)
Others		(42,465	)		(11,322	)
	W	61,940			(10,284	)

38. Finance Income

Finance income for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Interest income	W	66,506		61,304
Dividends income		42		1,313
Gains on disposal of financial assets		—		850
Gains on valuation of financial assets at fair value through profit or loss		6,225		4,961
Gains on valuation of derivatives		559,180		164,543
Gains on transaction of derivatives		39,897		35,144
Gains on foreign currency translation		124,239		29,293
Gains on foreign currency transactions		4,527		4,167
Others		149		—
	W	800,765		301,575

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

39. Finance Expenses

Finance expenses for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020		March 31, 2019
Interest expense	W	516,383		503,377
Losses on sale of financial assets		47		58
Losses on valuation of financial assets at fair value through profit or loss		225		696
Losses on valuation of derivatives		82,185		8,966
Losses on transaction of derivatives		11,981		9,662
Losses on foreign currency translation		808,759		169,807
Losses on foreign currency transactions		3,867		4,524
Others		589		1,686
	W	1,424,036		698,776

Capitalization rates for the three-month periods ended March 31, 2020 and 2019 are 2.50%~4.60% and 2.37%~3.86% respectively.

40. Income Taxes

Income tax expense (benefit) is calculated by adjusting adjustments recognized in the current period, changes in deferred tax assets and liabilities resulting from temporary differences, and income tax expense related to items recognized as other than profit or loss. The average effective tax rate for the current period is 63.02%, and for the previous period, the Group did not calculate the average effective tax rate, because income tax benefit occurred for the period.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

41. AssetsHeld-for-Sale

Assetsheld-for-sale as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Land	W	23,002		23,002
Buildings		—		193
Investment stocks (*1, 2)		288		4,921
	W	23,290		28,116

(*1) Ulleungdo Natural Energy Co., Ltd. was in the process of liquidating its business as of March 31, 2020 and has been reclassified to assetsheld-for-sale, during the year ended December 31, 2019.

(*2) Garolim Tidal Power Plant Co., Ltd. was in the process of liquidating its business as of March 31, 2020 and has been reclassified to assetsheld-for-sale, during the year ended December 31, 2019.

42. Expenses Classified by Nature

Expenses classified by nature for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		3,790,815		3,790,815
Salaries		196,094		1,035,352		1,231,446
Retirement benefit expense		19,145		101,753		120,898
Welfare and benefit expense		28,128		112,575		140,703
Insurance expense		2,579		22,998		25,577
Depreciation		53,126		2,745,824		2,798,950
Amortization of intangible assets		17,322		20,793		38,115
Bad debts expense		18,477		—		18,477
Commission		108,417		114,978		223,395
Advertising expense		5,409		1,309		6,718
Training expense		983		2,019		3,002
Vehicle maintenance expense		2,097		1,805		3,902
Publishing expense		837		772		1,609
Business promotion expense		834		899		1,733
Rent expense		5,586		14,459		20,045
Telecommunication expense		2,195		2,747		4,942
Transportation expense		428		1,357		1,785
Taxes and dues		7,148		91,965		99,113
Expendable supplies expense		1,939		10,170		12,109
Water, light and heating expense		4,479		8,303		12,782
Repairs and maintenance expense		13,614		532,266		545,880
Ordinary development expense		41,970		112,500		154,470
Travel expense		3,458		16,382		19,840
Clothing expense		696		571		1,267
Survey and analysis expense		188		754		942
Membership fee		541		4,493		5,034
Power purchase		—		4,819,457		4,819,457
Others		30,108		529,459		559,567
	W	565,798		14,096,775		14,662,573

103

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

42. Expenses Classified by Nature, Continued

Expenses classified by nature for the three-month periods ended March 31, 2020 and 2019 are as follows, continued:

In millions of won	March 31, 2019
	Selling and administrative expenses		Cost of sales		Total
Raw materials used	W	—		4,735,035		4,735,035
Salaries		196,655		885,072		1,081,727
Retirement benefit expense		17,203		97,728		114,931
Welfare and benefit expense		27,690		99,274		126,964
Insurance expense		3,019		23,480		26,499
Depreciation		59,055		2,558,314		2,617,369
Amortization of intangible assets		13,964		22,862		36,826
Bad debts expense		4,952		—		4,952
Commission		179,967		83,966		263,933
Advertising expense		6,883		1,588		8,471
Training expense		1,553		2,545		4,098
Vehicle maintenance expense		2,866		1,629		4,495
Publishing expense		1,439		704		2,143
Business promotion expense		771		1,034		1,805
Rent expense		6,882		44,619		51,501
Telecommunication expense		2,265		2,456		4,721
Transportation expense		211		1,253		1,464
Taxes and dues		4,016		88,175		92,191
Expendable supplies expense		1,753		5,940		7,693
Water, light and heating expense		4,455		10,833		15,288
Repairs and maintenance expense		12,731		403,549		416,280
Ordinary development expense		41,030		113,407		154,437
Travel expense		4,509		16,131		20,640
Clothing expense		443		1,468		1,911
Survey and analysis expense		217		748		965
Membership fee		434		4,201		4,635
Power purchase		—		5,538,651		5,538,651
Others		31,413		507,246		538,659
	W	626,376		15,251,908		15,878,284

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

43. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the three-month periods ended March 31, 2020 and 2019 are as follows:

In won
Type	March 31, 2020		March 31, 2019
Basic earnings (loss) per share	W	36		(1,227	)

(2) Net profit (loss) for the period and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won except number of shares
Type	March 31, 2020		March 31, 2019
Net income (loss) attributable to controlling interest	W	22,979		(787,798	)
Profit (loss) used in the calculation of total basic earnings per share		22,979		(787,798	)
Weighted average number of common shares		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-month periods ended March 31, 2020 and 2019 are as follows:

In number of shares
Type	March 31, 2020		March 31, 2019
The number of common shares issued at beginning of the year		641,964,077		641,964,077
Weighted average number of common shares		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 three-month periods ended March 31, 2020 and 2019.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management

(1) Capital risk management

The Group manages its capital to ensure that entities in the Group 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 Group consists of net debt (offset by cash and cash equivalents) and equity. The Group’s overall capital risk management strategy remains consistent with the prior year.

Details of the Group’s capital management accounts as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020			December 31, 2019
Total borrowings and debt securities	W	68,988,307			67,876,541
Cash and cash equivalents		1,458,491			1,810,129
Net borrowings and debt securities		67,529,816			66,066,412
Total shareholder’s equity	W	68,822,118			68,889,649
Debt to equity ratio		98.12	%		95.90	%

(2) Financial risk management

The Group is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), credit risk. The Group monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. The Group uses derivative financial instruments to hedge certain risk exposures. The Group’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 Group 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 Group makes transactions with are reputable financial institutions, the credit risk from them are considered limited. The Group 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 Group are the necessity for daily life and industrial activities of Korean nationals, and have importance as one of the national key industries. The Group dominates the domestic market supplying electricity to customers. The Group is not exposed to significant credit risk as customers of the Group are diverse and are from various industries and areas. The Group 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 counterparty 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 Group policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

Allowance for bad debts assessed on a collective basis are recognized for (i) the group of assets which individually are not material and (ii) incurred but not recognized losses that are assessed using statistical methods, judgment and past experience.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 Group’s level of maximum exposure to credit risk as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020		December 31, 2019
Cash and cash equivalents	W	1,458,491		1,810,129
Financial assets at fair value through profit or loss		1,975,549		747,261
Derivative assets (trading)		450,597		165,204
Financial assets at amortized cost		13,633		13,609
Loans		762,241		738,707
Long-term/short-term financial instruments		2,537,766		1,960,227
Derivative assets (applying hedge accounting)		405,696		145,829
Trade and other receivables		8,733,850		9,703,749
Financial guarantee contracts (*)		3,222,218		3,338,566

(*) 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 Group’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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020						December 31, 2019
Type	Accounts	1% Increase			1% Decrease			1% Increase			1% Decrease
Future salary increases	Increase (decrease) in defined benefit obligation	W	444,505			(415,592	)		442,748			(386,147	)
Discount rate	Increase (decrease) in defined benefit obligation		(424,589	)		469,133			(402,099	)		475,765

Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the three-month periods ended March 31, 2020 and 2019areW5,236 million andW4,435 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Provisions

Changes in provisions due to movements in underlying assumptions as of March 31, 2020 and December 31, 2019 are as follows:

Type	Accounts	March 31, 2020			December 31, 2019
PCBs	Inflation rate		1.09	%		1.09	%
	Discount rate		1.97	%		1.97	%
Nuclear plants	Inflation rate		1.10	%		1.10	%
	Discount rate		2.43	%		2.43	%
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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won		March 31, 2020						December 31, 2019
Type	Accounts	0.1% Increase			0.1% Decrease			0.1% Increase			0.1% Decrease
Discount rate	PCBs	W	(491	)		493			(527	)		530
	Nuclear plants		(314,222	)		323,763			(316,184	)		325,828
	Spent fuel		(51,534	)		53,545			(51,607	)		53,621
Inflation rate	PCBs		497			(495	)		534			(532	)
	Nuclear plants		348,165			(338,206	)		346,082			(336,182	)
	Spent fuel		54,319			(52,350	)		54,396			(52,424	)

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Management judgement affected by uncertainties in underlying assumptions

① Foreign currency risk

The Group undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities as of March 31, 2020 and December 31, 2019 are as follows:

In thousands of foreign currencies		Assets				Liabilities
Type		March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
AED			56,827		57,403		23,213		40,061
AUD			141		143		622,752		1,036,785
BDT			87,885		85,547		692		635
BWP			1,037		1,437		—		—
CAD			207		86		2,158		3,112
CHF			—		—		500,717		500,753
CNY			—		—		26,140		26,140
CZK			—		—		2,198		243
EUR			1,136		208		55,063		111,199
GBP			—		—		88		191
HKD			—		—		1,648,846		1,648,815
IDR			120,976		376,136		23,886		219,801
INR			1,225,870		1,244,170		210,688		210,232
JOD	��		2,046		1,516		976		147
JPY			226,999		109,970		11,808		314,402
KZT			319		319		—		—
MGA			4,960,475		3,858,201		92,283		133,403
MMK			19,563		29,651		—		—
PHP			175,977		175,210		141,860		130,073
PKR			391,470		354,361		4,144		4,366
SAR			2,432		2,653		—		480
SEK			—		—		451,892		449,072
USD			1,288,156		1,227,054		10,967,882		9,963,928
UYU			120,291		58,781		5,150		8,213
VND			666,535		418,998		—		1,375
ZAR			328		450		3		6

A sensitivity analysis on the Group’s income for the period assuming a 10% increase and decrease in currency exchange rates as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020					December 31, 2019
Type	10% Increase			10% Decrease		10% Increase			10% Decrease
Increase (decrease) of profit before income tax	W	(1,329,232	)		1,329,232		(1,197,530	)		1,197,530
Increase (decrease) of shareholder’s equity (*)		(1,329,232	)		1,329,232		(1,197,530	)		1,197,530

(*) 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 March 31, 2020 and December 31, 2019. To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Group has a policy to enter into cross-currency swap agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Group enters into currency forward agreements.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

② Interest rate risk

The Group 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 Group’s borrowings and debt securities with floating interest rates as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Type	March 31, 2020		December 31, 2019
Short-term borrowings	W	6,742		—
Long-term borrowings		2,318,442		2,273,579
Debt securities		225,771		243,102
	W	2,550,955		2,516,681

A sensitivity analysis on the Group’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 three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020					December 31, 2019
Type	1% Increase			1% Decrease		1% Increase			1% Decrease
Increase (decrease) of profit before income tax	W	(6,377	)		6,377		(25,167	)		25,167
Increase (decrease) of shareholder’s equity (*)		(6,377	)		6,377		(25,167	)		25,167

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

To manage its interest rate risks, the Group enters into certain interest swap agreements or maintains an appropriate mix of fixed and floating rate borrowings. These sensitivity analyses above are conducted without consideration of hedge effect of related derivatives.

③ Electricity rates risk

The Group 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 Group’s income for the period assuming a 1% increase and decrease in price of electricity for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020					March 31, 2019
Type	1% Increase		1% Decrease			1% Increase		1% Decrease
Increase (decrease) of profit before income tax	W	143,044		(143,044	)		144,375		(144,375	)
Increase (decrease) of shareholder’s equity (*)		143,044		(143,044	)		144,375		(144,375	)

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

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

(iv) Liquidity risk

The Group has established an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group 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 Group 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 Group has the ability to utilize excess cash or long-term borrowings for major construction investments.

In millions of won	March 31, 2020
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	9,596,848		11,412,828		26,557,863		34,016,596		81,584,135
Lease liabilities		703,062		651,962		1,786,363		2,851,619		5,993,006
Trade and other payables		4,993,486		836,799		659,569		1,086,471		7,576,325
Financial guarantee contracts (*)		1,004,459		—		44,998		2,172,761		3,222,218
	W	16,297,855		12,901,589		29,048,793		40,127,447		98,375,684

In millions of won	December 31, 2019
Type	Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
Borrowings and debt securities	W	10,660,737		10,997,510		27,881,873		30,859,669		80,399,789
Lease liabilities		686,445		617,449		1,717,434		2,735,681		5,757,009
Trade and other payables		6,014,054		382,809		971,469		1,176,697		8,545,029
Financial guarantee contracts (*)		937,091		302,186		32,314		2,066,975		3,338,566
	W	18,298,327		12,299,954		30,603,090		36,839,022		98,040,393

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of March 31, 2020 and December 31, 2019 areW76,913 million andW81,357 million, respectively.

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

The following table shows the details of maturities ofnon-derivative financial liabilities as of March 31, 2020 and December 31, 2019. 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.

The expected maturities fornon-derivative financial assets as of March 31, 2020 and December 31, 2019 in detail are as follows:

In millions of won	March 31, 2020
Type	Less than 1 year		1~5 Years		More than 5 years		Others (*)		Total
Cash and cash equivalents	W	1,458,491		—		—		—		1,458,491
Financial assets at fair value through other comprehensive income		—		—		—		304,425		304,425
Financial assets at amortized cost		12,316		1,317		—		—		13,633
Loans		73,383		349,155		347,235		27,981		797,754
Long-term/short-term financial instruments		1,915,475		265,700		—		356,591		2,537,766
Financial assets at fair value through profit or loss		1,313,009		31,014		—		631,526		1,975,549
Trade and other receivables		6,675,749		1,023,467		857,503		184,204		8,740,923
	W	11,448,423		1,670,653		1,204,738		1,504,727		15,828,541

In millions of won	December 31, 2019
Type	Less than 1 year		1~5 Years		More than 5 years		Others (*)		Total
Cash and cash equivalents	W	1,810,129		—		—		—		1,810,129
Financial assets at fair value through other comprehensive income		—		—		—		379,170		379,170
Financial assets at amortized cost		12,302		1,307		—		—		13,609
Loans		64,081		346,583		336,502		27,606		774,772
Long-term/short-term financial instruments		1,351,971		269,863		—		338,393		1,960,227
Financial assets at fair value through profit or loss		131,385		79		—		615,797		747,261
Trade and other receivables		7,703,746		980,951		818,431		207,979		9,711,107
	W	11,073,614		1,598,783		1,154,933		1,568,945		15,396,275
										��

(*) The maturities cannot be presently determined.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(2) Financial risk management, continued

Derivative liabilities classified by maturity periods from reporting date to maturity date of contract as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	(6,205	)		—			—			(1,009	)		(7,214	)
Gross settlement
- Trading		(8,164	)		(8,794	)		(52,057	)		(9,557	)		(78,572	)
- Hedging		(83,378	)		(1,304	)		(3,443	)		(52,184	)		(140,309	)
	W	(97,747	)		(10,098	)		(55,500	)		(62,750	)		(226,095	)

In millions of won	December 31, 2019
Type	Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
Net settlement
- Trading	W	(3,017	)		—			—			—			(3,017	)
Gross settlement
- Trading		(15,011	)		(8,295	)		(39,654	)		4,235			(58,725	)
- Hedging		(59,846	)		(21,466	)		(1,914	)		(33,588	)		(116,814	)
	W	(77,874	)		(29,761	)		(41,568	)		(29,353	)		(178,556	)

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk

The fair value of the Group’s actively-traded financial instruments (i.e. FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Group’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 arms-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 Group uses that technique.

In the case of trade receivables and payables, the Group considers the carrying value net of impairment as fair value. For disclosure purposes, the fair value of financial liabilities is estimated by discounting 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 March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
Type	Book value		Fair value		Book value		Fair value
Assets recognized at fair value
Financial assets at fair value through other comprehensive income	W	304,425		304,425		379,170		379,170
Derivative assets (trading)		450,597		450,597		165,204		165,204
Derivative assets (applying hedge accounting)		405,696		405,696		145,829		145,829
Financial assets at fair value through profit or loss		1,975,549		1,975,549		747,261		747,261
	W	3,136,267		3,136,267		1,437,464		1,437,464
Assets carried at amortized cost
Financial assets at amortized cost	W	13,633		13,633		13,609		13,609
Loans and receivables		762,241		762,241		738,707		738,707
Trade and other receivables		8,733,850		8,733,850		9,703,749		9,703,749
Long-term financial instruments		622,291		622,291		608,256		608,256
Short-term financial instruments		1,915,475		1,915,475		1,351,971		1,351,971
Cash and cash equivalents		1,458,491		1,458,491		1,810,129		1,810,129
	W	13,505,981		13,505,981		14,226,421		14,226,421
Liabilities recognized at fair value
Derivative liabilities (trading)	W	85,023		85,023		53,147		53,147
Derivative liabilities (applying hedge accounting)		140,308		140,308		116,813		116,813
	W	225,331		225,331		169,960		169,960
Liabilities carried at amortized cost
Secured borrowings	W	219,525		219,525		227,135		227,135
Unsecured bond		65,095,992		68,548,899		63,171,664		66,917,421
Lease liabilities		5,214,923		5,214,923		5,070,133		5,070,133
Unsecured borrowings		3,658,441		3,667,699		4,104,523		4,113,955
Trade and other payables (*)		7,576,325		7,576,325		8,545,029		8,545,029
Bank overdraft		14,349		14,349		373,219		373,219
	W	81,779,555		85,241,720		81,491,703		85,246,892

(*) Excludes lease liabilities.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 March 31, 2020 and December 31, 2019 are as follows:

Type	March 31, 2020	December 31, 2019
Derivatives	0.01% ~ 4.16%	0.01% ~ 4.16%
Borrowings and debt securities	0.20% ~ 4.63%	0.17% ~ 3.90%
Leases	1.37% ~ 10.83%	1.38% ~ 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 levels as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	127,027		—		177,398		304,425
Derivative assets		—		853,659		2,634		856,293
Financial assets at fair value through profit or loss		—		1,970,045		5,504		1,975,549
	W	127,027		2,823,704		185,536		3,136,267
Financial liabilities at fair value
Derivative liabilities	W	—		225,331		—		225,331

In millions of won	December 31, 2019
Type	Level 1		Level 2		Level 3		Total
Financial assets at fair value
Financial assets at fair value through other comprehensive income	W	201,202		—		177,968		379,170
Derivative assets		—		308,399		2,634		311,033
Financial assets at fair value through profit or loss		—		742,105		5,156		747,261
	W	201,202		1,050,504		185,758		1,437,464
Financial liabilities at fair value
Derivative liabilities	W	—		169,960		—		169,960

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

44. Risk Management, Continued

(3) Fair value risk, continued

The fair value of financial assets (FVTPL and FVOCI) publicly traded is measured at the closing bid price quoted at the end of the reporting period. Meanwhile, the fair value of unquoted financial assets (FVTPL and FVOCI) is calculated using the valuation results from an external pricing service in which weighted average borrowing rates of interest of evaluated companies are used as a discount rate. The fair value of derivatives is measured using valuation model which is determined at the present value of estimated future cash flows discounted at current market interest rate.

Changes of financial assets and liabilities which are classified as level 3 for the three-month period ended March 31, 2020 and for the year ended December 31, 2019 are as follows:

In millions of won	March 31, 2020
	Beginning balance		Effect of change in accounting policy		Acquisitions		Reclassified category		Valuation			Disposal		Foreign currency translation			Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,156		—		354		—		(6	)		—		—			5,504
Financial assets at fair value through other comprehensive income Unlisted securities		177,968		—		—		—		(141	)		—		(429	)		177,398

In millions of won	December 31, 2019
	Beginning balance		Effect of change in accounting policy		Acquisitions		Reclassified category		Valuation		Disposal			Foreign currency translation		Ending balance
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	W	5,052		—		40		—		64		—			—		5,156
Financial assets at fair value through other comprehensive income Unlisted securities		189,439		—		1,876		—		3,715		(19,315	)		2,253		177,968

116

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(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 Group has entered into a contract with National Power Corporation (the “NPC”), based in the Republic of the Philippines whereby the Group 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 Group 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 Group has an obligation to transfer its ownership of the power plant to NPC.

(iii) The Group’s expected future collections of service concession arrangements as of March 31, 2020 are as follows:

In millions of won
Type	Amounts
Less than 1 year	W	127,706
1~2 years		127,706
More than 2 years		21,284
	W	276,696

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

(i) Significant terms and concession period of the arrangement

The Group has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Group 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 approximately 30 years (2018~2048) subsequent to the completion of plant construction.

(ii) Rights and classification of the arrangement

The Group has the rights to use, own and operate the power plant during the concession period from 2018 to 2048. At the end of the concession period, PT PLN has an option to take over the ownership of the power plant from the Group.

(iii) The Group’s expected future collections of service concession arrangements as of March 31, 2020 are as follows:

In millions of won
Type	Amounts
Less than 1 year	W	30,445
1~2 years		30,478
2~3 years		30,513
Over 3 years		611,039
	W	702,475

117

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties

(1) Related parties of the Group as of March 31, 2020 are as follows:

Type	Related party
Parent	Republic of Korea government
Subsidiaries (120 subsidiaries)	Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte., Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KOREA Imouraren Uranium Investment Corp., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy, Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., 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 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., VI 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,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., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., KEPCO Mangilao America LLC, Mangilao Intermediate Holdings LLC, KEPCO CSC Co., Ltd., KOAK Power Limited, KOMIPO Europe B.V., Haenanum Energy Fund, Paju Ecoenergy Co., Ltd., Guam Ukudu Power LLC
Associates (71 associates)	Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., 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, Hyundai Energy Co., Ltd., Ecollite Co., Ltd., Taebaek Wind Power Co., Ltd., Taebaek 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., 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., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Korea Nuclear Partners Co., Ltd., Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., YaksuESS Co., Ltd., PND solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric. Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., KPGE Inc., Gwangbaek Solar Power Investment Co., Ltd., Goduk Clean Energy Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd.
Joint ventures (67 joint ventures)	Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Jeongam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P.,ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, MOMENTUM, Barakah One Company, Nawah Energy Company P.J.S.C., 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, Taebaek Gadeoksan Wind Power Co., Ltd., Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., HORUS SOLAR, S.A. DE C.V., RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V., SUNMEX RENOVABLES, S.A. DE C.V., Stavro Holding II AB, Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Solaseado Solar Power Co., Ltd.
Others (3 others)	Korea Development Bank, Ulleungdo Natural Energy Co., Ltd., Garolim Tidal Power Plant Co., Ltd.

118

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

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

(3) Related party transactions for the three-month periods ended March 31, 2020 and 2019 are as follows:

<Sales and Others>

In millions of won		Sales and others
Company name	Transaction type	March 31, 2020			March 31, 2019
<Associates>
Korea Gas Corporation	Electricity sales	W	32,422			52,311
GS Donghae Power Co., Ltd.	Electricity sales		14,197			21,817
Dongducheon Dream Power Co., Ltd.	Electricity sales		1,907			1,571
S-Power Co., Ltd.	Service		1,522			1,780
Hyundai Green Power Co., Ltd.	Design service		10,262	��		10,037
Korea Electric Power Industrial Development Co., Ltd.	Service		3,857			3,374
Daeryun Power Co., Ltd.	Electricity sales		496			509
Shin Pyeongtaek Power Co., Ltd.	Electricity sales		5,504			3,683
Korea Power Exchange	Service		4,186			1,443
Cheongna Energy Co., Ltd.	Service		2,828			5,574
Gangwon Wind Power Co., Ltd.	Electricity sales		2,015			2,299
Noeul Green Energy Co., Ltd.	Electricity sales		8			8
Gosung Green Power Co., Ltd.	Electricity sales		3,364			2,104
Busan Green Energy Co., Ltd.	Electricity sales		4			4
Samcheok Eco Materials Co., Ltd.	Electricity sales		183			189
Others (Taebaek Wind Power Co., Ltd. and 19 others)	Electricity sales		14,220			5,890
<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity sales		569			365
Daegu Green Power Co., Ltd.	Electricity sales		306			245
KAPES, Inc.	Commission		96			111
Rabigh Electricity Company	Service		89			12,186
Nawah Energy Company P.J.S.C.	Service		40,600			22,359
KEPCO SPC Power Corporation	Others		332			1,023
Seokmun Energy Co., Ltd.	Service		759			354
Amman Asia Electric Power Company	Others		4,765			4,886
Kelar S.A.	Service		62			1,016
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales		441			423
Yeonggwang Wind Power Co., Ltd.	Electricity sales		241			34
Others (Honam Wind Power Co., Ltd. and 23 others)	Electricity sales		162,814			12,144
<Others>
Korea Development Bank	Electricity sales		861			933
	Interest income		2,439			96

119

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(3) Related party transactions for the three-month periods ended March 31, 2020 and 2019 are as follows, continued:

<Purchase and Others>

In millions of won		Purchase and others
Company name	Transaction type	March 31, 2020		March 31, 2019
<Associates>
Korea Gas Corporation	Electricity sales	W	1,134,037		1,339,296
GS Donghae Power Co., Ltd.	Electricity sales		183,028		193,197
Dongducheon Dream Power Co., Ltd.	Electricity sales		182,247		207,255
S-Power Co., Ltd.	Service		139,691		172,043
Hyundai Green Power Co., Ltd.	Design service		119,667		108,993
Korea Electric Power Industrial Development Co., Ltd.	Service		36,943		63,038
Daeryun Power Co., Ltd.	Electricity sales		33,063		52,402
Shin Pyeongtaek Power Co., Ltd.	Electricity sales		181,577		—
Korea Power Exchange	Service		24,971		42,875
Cheongna Energy Co., Ltd.	Service		60		56
Gangwon Wind Power Co., Ltd.	Electricity sales		6,326		7,984
Noeul Green Energy Co., Ltd.	Electricity sales		2,883		3,306
Busan Green Energy Co., Ltd.	Electricity sales		5,399		4,839
Samcheok Eco Materials Co., Ltd.	Electricity sales		2,776		11,183
Others (Taebaek Wind Power Co., Ltd. and 19 others)	Electricity sales		15,097		13,095
<Joint ventures>
Chun-cheon Energy Co., Ltd.	Electricity sales		81,900		103,152
Daegu Green Power Co., Ltd.	Electricity sales		76,443		100,682
KAPES, Inc.	Commission		29,805		15,074
Seokmun Energy Co., Ltd.	Service		13,240		6,723
Amman Asia Electric Power Company	Others		143		—
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales		4,081		3,475
Yeonggwang Wind Power Co., Ltd.	Electricity sales		6,807		5,438
Others (Honam Wind Power Co., Ltd. and 23 others)	Electricity sales		8,536		4,677
<Others>
Korea Development Bank	Interest expense		1,155		1,132
	Dividends paid		—		1

120

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won		Receivables				Payables
Company name	Type	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
<Associates>
Korea Gas Corporation	Trade receivables	W	6,424		9,267		—		—
	Non-trade receivables and others		7,275		38		—		—
	Trade payables		—		—		363,709		462,138
	Non-trade payables and others		—		—		389		560
Dongducheon Dream Power Co., Ltd.	Trade receivables		637		323		—		—
	Non-trade receivables and others		213		267		—		—
	Trade payables		—		—		43,181		85,920
	Non-trade payables and others		—		—		13		12
Goseong Green Power Co., Ltd.	Trade receivables		135		103		—		—
	Non-trade receivables and others		5,286		5,285		—		—
	Non-trade payables and others		—		—		65,627		65,626
GS Donghae Electric power Co., Ltd.	Trade receivables		312		175		—		—
	Non-trade receivables and others		13,137		367		—		—
	Trade payables		—		—		46,321		69,811
	Non-trade payables and others		—		—		21		16
Shin Pyeongtaek Power Co., Ltd.	Trade receivables		1,247		1,014		—		—
	Non-trade receivables and others		2,290		2,281		—		—
	Trade payables		—		—		61,648		64,696
	Non-trade payables and others		—		—		495		61
S-Power Co., Ltd.	Trade receivables		111		89		—		—
	Non-trade receivables and others		46		43		—		—
	Trade payables		—		—		45,172		53,705
Hyundai Green Power Co., Ltd.	Trade receivables		667		502		—		—
	Trade payables		—		—		35,743		41,587
Hyundai Energy Co., Ltd.	Trade receivables		123		128		—		—
	Non-trade receivables and others		12,046		12,532		—		—
	Trade payables		—		—		255		175
	Non-trade payables and others		—		—		9,718		9,178
Daeryun Power Co., Ltd.	Trade receivables		156		144		—		—
	Trade payables		—		—		6,747		19,843
Korea Electric Power Industrial Development Co., Ltd.	Trade receivables		359		243		—		—
	Non-trade receivables and others		2,164		43		—		—
	Trade payables		—		—		3,435		3,756
	Non-trade payables and others		—		—		2,802		3,827
Korea Power Exchange	Trade receivables		1,280		1,142		—		—
	Non-trade receivables and others		41		144		—		—
	Trade payables		—		—		1,256		—
	Non-trade payables and others		—		—		35,576		4,160
Others (Gangwon Wind Power Co., Ltd. and 29 others)	Trade receivables		2,160		1,536		—		—
	Non-trade receivables and others		12,019		6,191		—		—
	Trade payables		—		—		3,807		4,568
	Non-trade payables and others		—		—		3,045		2,983

121

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows, continued:

In millions of won		Receivables				Payables
Company name	Type	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
<Joint ventures>
KAPES, Inc.	Trade receivables	W	—		1		—		—
	Non-trade payables and others		—		—		16,153		50,738
Nawah Energy Company P.J.S.C.	Trade receivables		66,029		43,312		—		—
	Non-trade receivables and others		1,116		47		—		—
Daegu Green Power Co., Ltd.	Trade receivables		124		113		—		—
	Non-trade receivables and others		1		1		—		—
	Trade payables		—		—		25,627		28,980
Chun-cheon Energy Co., Ltd.	Trade receivables		106		260		—		—
	Non-trade receivables and others		214		5,362		—		—
	Trade payables		—		—		25,617		23,438
Amman Asia Electric Power Company	Non-trade payables and others		—		—		18,826		19,096
Kelar S.A.	Trade receivables		—		1,902		—		—
	Non-trade receivables and others		9,040		7,632		—		—
Jamaica Public Service Company Limited	Trade receivables		1,299		6,476		—		—
	Non-trade payables and others		—		—		—		57
Others (Seokmun Energy Co., Ltd. and 17 others)	Trade receivables		679		258		—		—
	Non-trade receivables and others		4,738		8,606		—		—
	Trade payables		—		—		13,771		1,166
	Non-trade payables and others		—		—		65,601		79,369
<Others>
Korea Development Bank	Accrued interest income		2,389		1,630		—		—
	Non-trade receivables and others		160,338		146,416		—		—
	Non-trade payables and others		—		—		289		152
	Derivatives		80,392		41,368		216		6,531

(5) Loans and others arising from related party transactions as of March 31, 2020 and December 31, 2019 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	28,676			54		—			1,485			30,215
	(Allowance for doubtful accounts)		(7,325	)		—		—			(1,977	)		(9,302	)
Associates	PT. Cirebon Electric Power		578			—		(609	)		31			—
Associates	Xe-PianXe-Namnoy Power Co., Ltd.		20,955			—		—			1,173			22,128
Associates	PT. Wampu Electric Power		16,502			—		—			1,232			17,734
Associates	Gunsan Bio Energy Co., Ltd.		12,396			—		—			—			12,396
	(Allowance for doubtful accounts)		(10,128	)		—		—			—			(10,128	)
Associates	Hyundai Energy Co., Ltd.		2,465			—		—			—			2,465
	(Allowance for doubtful accounts)		(2,465	)		—		—			—			(2,465	)
Joint ventures	RECURSOS SOLARES PV DE MEXICO II, S.A. DE C.V.		1,055			797		—			59			1,911
Joint ventures	HORUS SOLAR, S.A. DE C.V		3,323			585		—			186			4,094
Joint ventures	SUNMEX RENOVABLES, S.A. DE C.V.		144			122		—			8			274
Joint ventures	Kelar S.A.		42,158			—		—			2,360			44,518
Joint ventures	Chun-cheon Energy Co., Ltd.		5,057			—		(5,057	)		—			—
Joint ventures	DE Energia SpA		6,632			—		—			371			7,003
		W	120,023			1,558		(5,666	)		4,928			120,843

122

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(6) Borrowings arising from related party transactions as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won
Related parties	Type	December 31, 2019		Borrowings		Repayment			Others		March 31, 2020
Korea Development	Facility	W	59,845		—		(2,083	)		—		57,762
Bank	Others		3,500		—		(139	)		—		3,361
	Operating funds		179,000		52,961		(105,000	)		459		127,420
	Syndicated Loan		17,085		—		(1,019	)		1,050		17,116

(7) Guarantees provided to related parties as of March 31, 2020 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	Shuweihat Asia Power Investment B.V.
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others	USD 1,387	Rabigh Electricity Company
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees	USD 70,000	SMBC Ho Chi Minh and others
Korea Electric Power Corporation	Barakah One Company	Debt guarantees	USD 900,000	Export-Import Bank of Korea and others
		Performance guarantees and others	USD 4,368,904
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
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	Rabigh Electricity Company	Performance guarantees	SAR 6,508	Hana Bank
Korea Electric Power Corporation		Debt guarantees	SAR 80,000
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees	USD 100,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested	KRW 4,962	Hana Bank and others
		Guarantees for supplemental funding and others (*1)	—
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	KRW 76,543
		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 1,849	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested (*7) Debt guarantees	KRW 48,250 KRW 20,300	Kookmin Bank and others BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested	KRW 569	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested	KRW 209	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested	KRW 74,694	Kookmin Bank
		Guarantees for supplemental funding (*1)	—	Kookmin Bank and others

123

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested	KRW 4,863	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested	KRW 16,373	Kookmin Bank and others
		Guarantees for supplemental funding (*1)	—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested	KRW 32,645	Kookmin Bank and others
		Guarantees for supplemental funding (*1)	KRW 90,800
Korea East-West Power Co., Ltd.	Honam Wind Power Co., Ltd.	Collateralized money invested	KRW 4,134	Shinhan Bank and others
		Guarantees for supplemental funding (*1)	—
Korea East-West Power Co., Ltd.	GS Donghae Electric Power Co., Ltd.	Collateralized money invested	KRW 250,335	Korea Development Bank and others
		Guarantees for supplemental funding (*1)	—
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested	KRW 3,245	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested	KRW 18,388	KDB Capital Corporation and others
		Guarantees for supplemental funding (*1)	—
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested	KRW 17,133	IBK
		Guarantees for supplemental funding (*1)	KRW 18,989	IBK
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested	KRW 8,133	Samsung Fire & Marine Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	PT. Tanjung Power Indonesia	Debt guarantees	USD 24,544	Sumitomo mitsui banking
		Other guarantees	USD 3,150	PT Adaro Indonesia
		Guarantees for supplemental funding (*1)	—	Sumitomo mitsui banking and others
		Collateralized money invested	KRW 31,511	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees	USD 14,400	Societe Generale
		Collateralized money invested	KRW 22,506	JCSD Trustee Services Limited and others
EWP Barbados 1 SRL	South Jamaica Power Company Limited	Guarantees for supplemental funding (*1, 3)	—	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested	KRW 9,665	Mirae Asset Daewoo Co., Ltd. and others
Korea East-West Power Co., Ltd.		Debt guarantees	USD 5,728
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested	KRW 2,268	Shinhan Bank and others
		Performance guarantees and guarantees for supplemental funding (*1)	—
Korea Southern Power Co., Ltd.	Daeryun Power Co., Ltd.	Collateralized money invested	KRW 26,651	Korea Development Bank and others
		Guarantees for supplemental funding and others (*1)	KRW 8,000
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested	KRW 25,623	Shinhan Bank and others
		Performance guarantees	—
Korea Southern Power Co., Ltd.	Kelar S.A.	Performance guarantees	USD 61,692	Hana Bank, MUFG
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Debt guarantees (*9)	USD 16,000	Shinhan Bank
		Performance guarantees	USD 3,600
		Debt guarantees (*9)	USD 240
		Performance Debt guarantees (*9)	USD 1,898	Hana Bank
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested	KRW 5,080	Woori Bank and Shinhan Bank and others
		Performance guarantees	—

124

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 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.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested	KRW 2,754	IBK
		Guarantees for supplemental funding (*1)	—
Korea Southern Power Co., Ltd.	Jeongam Wind Power Co., Ltd.	Guarantees for supplemental funding (*1) and performance guarantees	—	SK Securities.Co., LTD., KDB Capital Corporation, and others
		Collateralized money invested	KRW 4,410
Korea Southern Power Co., Ltd.	Samcheok Eco Materials Co., Ltd.	Payment guarantees (*4)	—	SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.	Solaseado Solar Power Co., Ltd.	Collateralized money invested	KRW 3,751	Kookmin Bank and others
Kospo Chile SpA	Kelar S.A.	Collateralized money invested	KRW 79,789	Export-Import Bank of Korea and others
	Chester Solar I SpA	Collateralized money invested	KRW 1,068	IBK
	Chester Solar IV SpA	Collateralized money invested	KRW 107
	Chester Solar V SpA	Collateralized money invested	KRW 5
	Diego de Almagro Solar Spa	Collateralized money invested	KRW 452
	Laurel SpA	Collateralized money invested	KRW 355
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric. Co., Ltd.	Collateralized money invested	KRW 380	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested	KRW 123,434	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees	USD 10,560	Mizuho Bank
Korea Midland Power Co., Ltd.	PT. Wampu Electric Power	Debt guarantees	USD 4,854	SMBC
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Collateralized money invested	KRW 15	IBK
		Guarantees for supplemental funding and others (*1)	—	IBK and others
Korea Midland Power Co., Ltd.	YaksuESS Co., Ltd.	Collateralized money invested	KRW 614	IBK
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested	KRW 621	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested	KRW 4,654	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested	KRW 1,570	IBK
Korea South-East Power Co., Ltd.	Hyundai Energy Co., Ltd.	Collateralized money invested (*5)	—	IBK
		Guarantees for supplemental funding and others (*1, 6)	KRW 76,800	NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.	S-Power Co., Ltd.	Collateralized money invested	KRW 118,140	Korea Development Bank and others
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested	KRW 17,056	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested	KRW 20,583	UniCredit Bulbank and others
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.	Goseong Green Power Co., Ltd.	Collateralized money invested	KRW 2,308	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested	KRW 2,411	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND solar., Ltd.	Collateralized money invested	KRW 988	IBK
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested	KRW 3,595	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested	KRW 2,376	IBK
Korea South-East Power Co., Ltd.	Cheongsong Myeonbongsan Wind Power Plant Co., Ltd.	Collateralized money invested	KRW 4,303	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Youngam Solar Power Co., Ltd.	Collateralized money invested	KRW 6,460	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested	KRW 2,637	Shinhan Bank and others

125

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(7) Guarantees provided to related parties as of March 31, 2020 are as follows, continued:

In millions of won and thousands of foreign currencies
Primary guarantor	Principal obligor	Type of guarantees	Credit limit	Guarantee
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested	KRW 6,723	Hana Bank and others
		Guarantees for supplemental funding (*1)	—
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested	KRW 10,028	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested	KRW 2,664	Woori Bank and others
		Guarantees for supplemental funding (*1)	—
KEPCO Plant Service & Engineering Co., Ltd.	Incheon New Power Co., Ltd.	Collateralized money invested (*8)	—	Shinhan Bank
		Guarantees for supplemental funding (*1)	—

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

(*2) The Group 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 Group to dispose of shares in ESPG held by the Group 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 18,400,000 and there is no residual guarantee amount among total collateral limit.

(*4) Controlling andnon-controlling common shareholders of Samcheok Eco Materials Co., Ltd. havepre-emption rights, if preferred shareholders intend to sell their shares until December 23, 2020. And promised yield of the preferred stock is guaranteed through the transaction. As of March 31, 2020, the Group has recognized derivative liabilities ofW6,205 million related to the the guarantee. Meanwhile, the Group is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*5) The Group recognized an impairment loss on all of the equity securities of Hyundai Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral isW47,067 million.

(*6) Pursuant to the guarantee agreement, the Group recognized other provisions ofW28,717 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

(*7) The common stocks of Dongducheon Dream Power Co., Ltd. held by the Group were pledged as collateral.

(*8) The Group recognized an impairment loss on all of the equity securities of Incheon New Power Co., Ltd. during the year ended December 31,2019, and the acquisition cost of the securities provided as collateral isW461 million.

(*9) The Group provided a payment guarantee to Daehan Wind Power PSC for reimbursement of Equity Bridge Loan(EBL), opening LC for Debt Service Reserve Account(DSRA), guarantee for the swap termination costs and others.

126

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

46. Related Parties, Continued

(8) As of March 31, 2020, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of March 31, 2020 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 (in won)
			Pay		Receive		Pay			Receive
Korea Development Bank		2019~2024	W	177,600		USD 150,000		1.24	%		2.50	%	W	1,184.00
		2015~2025		111,190		USD 100,000		2.62	%		3.25	%		1,111.90
		2017~2027		111,610		USD 100,000		2.31	%		3.13	%		1,116.10
		2018~2028		108,600		HKD 800,000		2.69	%		3.35	%		135.75
		2018~2023		170,280		USD 150,000		2.15	%		3.75	%		1,135.20
		2019~2027		119,978		CHF 100,000		1.43	%		0.05	%		1,199.78
		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
		2019~2022		112,650		USD 100,000		1.80	%		3.38	%		1,126.50
		2018~2023		320,880		USD 300,000		2.03	%		3.75	%		1,069.60
		2019~2022		117,340		USD 100,000		1.06	%		2.38	%		1,173.40
		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 exchange rate (in won)
					Pay		Receive
Korea Development Bank		2017.12.27		2021.07.12	W	104,849		USD 100,000	W	1,048.49
		2020.03.31		2020.04.27		6,096		USD 5,000		1,219.20
		2020.03.20		2020.04.06		2,519		USD 2,000		1,259.60
		2020.03.24		2020.04.06		1,254		USD 1,000		1,254.00
		2020.03.24		2020.04.02		1,254		USD 1,000		1,254.35
		2020.03.25		2020.04.13		9,841		USD 8,000		1,230.10
		2020.03.26		2020.04.13		4,909		USD 4,000		1,227.25

(10) The Group considers executive directors and executive head officer in charge of planning, operation, control of business activity as the key members of management. Salaries and other compensations to the key members of management of the Group for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won
Type	March 31, 2020		March 31, 2019
Salaries	W	189		216
Employee benefits		14		2
	W	203		218

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

47. Statements of Cash Flows

(1) Significantnon-cash transactions for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won
Transactions	March 31, 2020		March 31, 2019
Transfer fromconstruction-in-progress to other assets	W	1,874,217		1,721,968
Recognition of asset retirement cost and related provision for decommissioning costs		114,813		140,718
Transfer from provision for disposal of used nuclear fuel to accrued expenses		149,790		117,402
Change in accounting policy and increase inright-of-use assets		113,871		4,590,988

(2) Changes in liabilities incurred from financing activities for the three-month periods ended March 31, 2020 and 2019 are as follows:

In millions of won	March 31, 2020
						Non-cash changes
	Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	67,876,541		519,362			—		592,404		68,988,307
Lease liabilities		5,070,133		(199,867	)		108,102		236,555		5,214,923
	W	72,946,674		319,495			108,102		828,959		74,203,230

In millions of won	March 31, 2019
						Non-cash changes
	Beginning balance		Cash flows			Increase		Changes in accounting policies		Effect of exchange rate fluctuations and others		Ending balance
Borrowings and debt securities	W	61,034,627		1,909,767			—		—		247,524		63,191,918
Lease liabilities		283,806		(111,403	)		95,508		4,584,555		71,587		4,924,053
	W	61,318,433		1,798,364			95,508		4,584,555		319,111		68,115,971

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

48. Commitments for Expenditure

(1) The commitments for acquisition of property, plant and equipment as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
Contracts	Amounts		Balance		Amounts		Balance
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)	W	56,408		21,619		56,408		24,721
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)		45,390		32,876		45,390		32,876
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S		36,143		33,020		36,143		36,143
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S		40,010		12,511		40,010		15,300
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S		37,744		2,244		37,744		9,700
Purchase of cable (FRCNCO-W, 1C, 325SQ) 1,400,000		59,716		37,249		59,716		37,249
Purchase of switch (Eco) 9,360 units		40,631		24,031		40,631		24,031
Purchase of cable (TRCNCE-W/AL, 1C, 400SQ) 2,654,400M		36,063		—		36,063		6,243
Construction of Shin-Kori units (#5,6)		8,625,387		4,063,319		8,625,387		4,479,956
Construction of Shin-Hanul units (#1,2)		9,443,635		596,664		8,306,149		—
Other 27 contracts		346,700		116,728		352,710		122,890
Service of designing Seoul Combined units (#1,2)		31,515		2,855		30,778		2,119
Purchase of main machine for construction of Seoul Combined units (#1,2)		331,249		15,216		331,249		15,918
Construction of Seoul Combined units (#1,2)		391,517		24,999		387,722		31,150
Service of designing Shin-Boryeong units (#1,2)		121,163		846		120,668		888
Purchase of main machine for construction of Shin-Boryeong units (#1,2)		816,317		4,048		816,317		4,955
Purchase of furnace for construction of Shin-Seocheon thermal power plant		305,209		37,142		305,209		43,388
Purchase of turbine generator for construction of Shin-Seocheon thermal power plant		105,226		10,275		105,226		10,736
Electricity construction of Shin-Seocheon thermal power plant		231,196		79,483		231,196		87,874
Purchase of main machine for Jeju LNG combined		166,287		11,428		166,287		12,088
Service of designing Taean IGCC plant units		46,101		2,332		46,101		2,332
Service of designing Taean units (#9,10)		112,483		12,862		112,483		12,862
Purchase of furnace for construction of Taean units (#9,10)		556,206		20,403		556,206		17,579
Purchase of turbine generator for construction of Taean units (#9,10)		214,208		13,525		214,208		10,857
Purchase of coal handling machine for construction of Taean (#9,10) and IGCC units (conditional contract for installation)		205,764		282		205,764		282
Purchase of oxygen plant for construction of Taean IGCC units		97,345		1,938		97,345		1,630
Purchase of gas turbine and turbine equipment of Gimpo combined heat & power plant		104,600		104,600		104,600		104,600
Purchase of coal handling machine for construction of Samcheok units (#1,2)		284,497		33,879		282,927		42,785
Purchase of furnace for construction of Samcheok units (#1,2)		1,092,287		11,710		1,066,824		11,771
Purchase of turbine main equipment for Samcheok units (#1,2)		212,188		125		223,550		132
Purchase of main equipment for Namjeju		146,594		54,612		138,486		84,982

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

48. Commitments for Expenditure, Continued

(2) As of March 31, 2020, details of contracts for inventory purchase commitment are as follows:

The Group 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 Group 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	2020 ~ 2030	32,435 Ton U3O8
Transformed	2020 ~ 2030	18,088 Ton U
Enrichment	2020 ~ 2030	17,667 Ton SWU
Molded (Light)	2020	756 Ton U
Molded (Medium))	2020	401 Ton U
Molded (Initial core)	2020 ~ 2023	415 Ton U

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

49. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of March 31, 2020 and December 31, 2019 are as follows:

In millions of won	March 31, 2020				December 31, 2019
	Number of cases		Claim amount		Number of cases		Claim amount
As the defendant		636	W	675,571		586	W	697,835
As the plaintiff		199		438,988		199		707,287

A group of plaintiffs (consisting of 2,167 individuals) filed a lawsuit against NSSC (Nuclear Safety and Security Commission) 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 March 31, 2020. Also, Greenpeace and others filed an administrative litigation against NSSC requesting cancelation of the construction permit of Shin-Kori unit 5 and 6 in September 12, 2016 and lost the lawsuit in February 14, 2019. They appealed the case in March 18, 2019. The Group joined these litigations as a stakeholder after obtaining permission from the Court.

As of March 31, 2020, in connection with Shin-Hanul unit 3 & 4, the Group has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Group does not believe that it has a present obligation to this vendor, and that it is probable that the Group will prevail if a lawsuit is filed against the Group. In addition, the Group cannot reliably estimate the potential economic outflow related to the obligation as of March 31, 2020.

The Group is the defendant against a number of claims. The following is potentially significant ongoing claims pertaining to the Group:

There are multiple ongoing claims against the Group related to ordinary wages, requesting payment of unpaid wages. The Group believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. For this reason, the Group recognizedW33,536 million as litigation provisions in relation to the lawsuit as of March 31, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of March 31, 2020 and December 31, 2019 are as follows, continued:

In addition to the abovementioned significant ongoing claims, there are 10 arbitration cases pertaining to the Group as of March 31, 2020 and the significant arbitration cases for the three-month period ended March 31, 2020 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 Court of Arbitration of the International Chamber of Commerce. The Group recognizedW1,056 million of litigation provision in relation to the lawsuit during the year ended December 31, 2019.

② In relation to the electric power IT modernization project in Kerala, India, Enzen, a subcontractor, filed an arbitration against the Group to the Indian Council of Arbitration due to disagreements in the contract, but the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated.

③ Doosan Heavy Industries & Construction Co., Ltd. and two other companies filed an arbitration against the Group to Korea Commercial Arbitration Board regarding additional payment of construction costs, but the Group has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

(2) Guarantees of payments and commitments provided to other companies as of March 31, 2020 are as follows:

① The Group has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Group 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 Group has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

② The Group has provided PT. Perusahaan Listrik Negara performance guarantee up to USD 2,293 thousand and investment guarantee up to USD 43,500 thousand to Mizuho bank and others 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.

③ The Group has provided MUFG Bank, Ltd. (MUFG) 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.

④ The Group 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.

⑤ The Group 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 Group.

⑥ The Group provides the DekaBank with an investment guarantee of EUR 13,800 thousand to Stavro Vind AB, to enter into a loan contract for the Sweden Wind Power (Stavro) construction operation project.

⑦ The Group is obligated to complete the construction of the waste oil refining for power generation business of Next energy Co., Ltd. (contract amount :W14,700 million) as a construction company. The Group is liable to compensate to financial institution agents for the liquidated damages in case of incompletion of the construction. Also, the Group has made performance guarantee agreement with Next energy Co., Ltd. after the completion of the construction, which obliges the Group to provide supplemental funding if the amount of power generated or the operation time of the power plant does not reach the agreed level. The Group expected outflow of resources is probable due to guarantee of completing the construction. Hence, the Group recognized revenue over time after deductingW5,244 million as the variable consideration for the contract amount of the project.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of March 31, 2020 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		1,850,500
Commitments on Bank-daylight overdraft	Nonghyup Bank and others		KRW		280,000
Limit amount available for CP	Hana Bank and others		KRW		1,150,000
Limit amount available for card	Hana Bank and others		KRW		30,000
	Banco de Oro		PHP		5,000
Loan limit	Kookmin Bank and others		KRW		1,325,208
	DBS Bank and others		USD		2,472,700
Certification of payment on payables from foreign country	Nonghyup Bank		USD		8,700
Certification of payment on L/C	Shinhan Bank		KRW		7,749
	Shinhan Bank and others		USD		971,934
Certification of Performance guarantee on contract	Seoul Guarantee Insurance and others		KRW		72,782
	First Abu Dhabi Bank and others		USD		599,143
	Korea Development Bank and others		JPY		637,495
	Hana Bank and others		EUR		4,158
	Hana Bank and others		INR		191,883
	Hana Bank		CAD		464
	Shinhan Bank		ZAR		55,730
Certification of bidding	Hana Bank		USD		10,000
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance		KRW		44,047
	Export-Import Bank of Korea and others		USD		654,435
	Hana Bank		SAR		86,508
	SMBC Bank		QAR		15,000
Others	Nonghyup Bank and others		KRW		554,030
	Export-Import Bank of Korea and others		USD		1,562,194
	Shinhan Bank		JPY		381,210
	Standard Chartered		AED		50
Inclusive credit	Hana Bank		KRW		8,000
	Hana Bank and others		USD		30,722
	Shinhan Bank		INR		92,348
Trade finance	BNP Paribas and others		USD		700,000

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(4) As of March 31, 2020, blank check and assets provided as collaterals or pledges to financial institutions by the Group are as follows:

In millions of won and thousands of foreign currencies
Guarantor	Guarantee	Type of guarantee	Currency	Amount		Description
Mira Power Limited	International Finance Corporation and others	Property, plant and equipment and others	USD		275,600	Collateral for borrowings (*1)
Tamra Offshore Wind Power Co., Ltd.	Kyobo Life Insurance Co., Ltd. and others	Property, plant and equipment and others	KRW		171,600	Collateral for borrowings (*2)
SE Green Energy Co., Ltd.	DB Insurance Co., Ltd. and others	Property, plant and equipment and others	KRW		149,500	Collateral for borrowings (*2)
Gyeonggi Green Energy Co., Ltd.	Korea Development Bank and others	Cash and cash equivalents and others	KRW		327,800	Collateral for borrowings (*2)
Commerce and Industry Energy Co., Ltd.	IBK and others	Land, buildings, structures and machinery and others	KRW		110,500	Collateral for borrowings (*2)
KOSPO Youngnam Power Co., Ltd.	Shinhan Bank and others	Cash and cash equivalents and others	KRW		396,120	Collateral for borrowings (*2)
Gyeongju Wind Power Co., Ltd.	Samsung Fire & Marine Insurance Co., Ltd. and others	Property, plant and equipment and others	KRW		110,240	Collateral for borrowings (*2)
Korea Offshore Wind Power Co., Ltd.	Woori Bank and others	Utility plant and others	KRW		293,400	Collateral for borrowings (*2)
Qatrana Electric Power Company	The Islamic Development Bank and others	Finance lease receivable and property, plant and equipment and others	JOD		236,570	Collateral for borrowings (*1)
KST Electric Power Company	The Export – Import Bank of Korea and others	Finance lease receivable and property, plant and equipment and others	USD		401,277	Collateral for debt securities (*1)
Incheon Fuel Cell Co., Ltd.	Kookmin Bank and others	Cash and cash equivalents and others	KRW		276,960	Collateral for borrowings (*2)

(*1) This is based on the amount of loan commitment limit.

(*2) As of March 31, 2020, the Group has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.

The Group hasW1,197 million of project loans from Korea Energy Agency as of March 31, 2020. The Group has provided a blank check as repayment guarantee.

(5) The Group temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of

W74,106 million as of March 31, 2020 to improve the quality of water used in generating electricity. The expenses related to the suspension of operations ofW7 million and depreciation on the idle assets ofW1,639 million are recorded in other expenses for the three-month period ended March 31, 2020. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Group is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of March 31, 2020.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

49. Contingencies and Commitments, Continued

(6) Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Group can exercise the property rights for the Group’s facility in the Gaeseong Industrial District as of March 31, 2020. The book value of facility isW16,334 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex isW2,911 million. The outcome of this event cannot be reasonably estimated as of March 31, 2020.

(7) In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Group has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of March 31, 2020.

(8) To prevent the spread ofCOVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope withCOVID-19. The Group was unable to reasonably estimate the impact ofCOVID-19 and the impact of the government support policies on the Group’s interim consolidated financial statements as of March 31, 2020, and the resulting effects have not been reflected in the interim consolidated financial statements.

50. Business Combination

(1) The details of business combinations that occurred for the year ended December 31, 2019 are as follows:

In millions of won
Company	Key operation activities	Date of merger		Transfer price
Eumseong Natural Gas Power Co., Ltd.	Power generation		2019.12.23		225,758

Eumseong Natural Gas Power Co., Ltd. was established in August 2019 byspin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8^thBasic Plan for Long-Term Electricity Supply and Demand. Korea East-West Power Co., Ltd., a subsidiary of the Group, acquired 100% of its interest in Eumseong Natural Gas Power Co., Ltd. for stable power supply and profit generation through diversification of power sources, and merged with Eumseong Natural Gas Power Co., Ltd. on December 23, 2019.

(2) Details of the transfer price at fair value given by the acquirer of the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type	Amounts
Cash and cash equivalents	W	166,700
Fair value of the shares owned before the acquisition		59,058
	W	225,758

(3) The fair values of assets and liabilities acquired through the business combination at the acquisition date for the year ended December 31, 2019 are as follows:

In millions of won
Type	Amounts
Fair value of the identifiable assets	W
Current assets
Cash and cash equivalents		2,389
Trade and other receivables		55
Non-current assets
Property, plant and equipment		54
Intangible assets		172,434
Other assets		60
Fair value of the identifiable liabilities
Current liabilities
Borrowings		(2,900	)
Non-current liabilities
Deferred tax liabilities		(41,729	)
	W	130,363

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

50. Business Combination, Continued

(4) Details of goodwill resulting from the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type	Amounts
Fair value of transfer price	W	225,758
Less : Fair value of the identifiable net assets		(130,363	)
	W	95,395

Goodwill arose from the business combination due to the transfer price including the premium to obtain control paid in order to acquire Eumseong Natural Gas Power Co., Ltd. It also includes expectation of synergy effect and future growth in profits derived from business combination with LNG combined power generation project. These business rights can be separated from goodwill which satisfies the recognition requirements and thus the business rights have been recognized as a separate intangible asset.

On the contrary, the expected benefits such as direct fuel acquisition and reduce costs for O&M did not satisfy the recognition requirements for identifiable intangible assets and thus were not recognized separately from the goodwill.

(5) Net cash outflows from the business combination for the year ended December 31, 2019 are as follows:

In millions of won
Type	Amounts
Cash paid for the acquisition	W	156,700
Less : Cash and cash equivalents received		(2,389	)
	W	154,311

(6) Fees for legal service, due diligence and others relating to the business combination amounted toW24 million. The fees were excluded from the transfer price and recognized as selling and administrative expenses in the statement of comprehensive income (loss) for the year ended December 31, 2019.

(7) There is no sale or net profit included in the statement of comprehensive income (loss) for the year ended December 31,2019, in relation to additional business launched by Eumseong Natural Gas Power Co., Ltd.

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Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

51. Subsequent Events

Subsequent to March 31, 2020, Korea Hydro & Nuclear Power Co., Ltd., Korea Southern Power Co., Ltd. and Korea East-West Power Co., Ltd., issued a foreign bond and corporate bonds for funding debt repayment, facility investments, and operations as follows:

In millions of won and thousands of foreign currencies
Company	Type	Issue date	Maturity	Interest rate				Amount
Korea Hydro & Nuclear Power Co., Ltd.	#55-1 corporate bond	2020.04.02	2040.04.02		1.80	%	KRW		50,000
	#55-2 corporate bond	2020.04.02	2050.04.02		1.80	%	KRW		50,000
	#56-1 corporate bond	2020.04.28	2025.04.28		1.62	%	KRW		60,000
	#56-2 corporate bond	2020.04.28	2040.04.28		1.81	%	KRW		90,000
	#56-3 corporate bond	2020.04.28	2050.04.28		1.83	%	KRW		150,000
Korea Southern Power Co., Ltd.	#52-1non-guaranteed corporate bond	2020.04.27	2025.04.27		1.64	%	KRW		70,000
	#52-2non-guaranteed corporate bond	2020.04.27	2030.04.27		1.79	%	KRW		30,000
Korea East-West Power Co., Ltd.	#20-1 foreign corporate bond	2020.05.06	2025.05.06		1.75	%	USD		500,000

137

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements, Continued

March 31, 2020

(Unaudited)

52. Adjusted Operating Profit (loss)

The operating profit (loss) in the Group’s consolidated statements of comprehensive income (loss) prepared in accordance with KIFRS included in this report differs from that in its consolidated statements of comprehensive income (loss) prepared in accordance with IFRS as issued by IASB. The table below sets forth a reconciliation of the Group’s results from operating activities as presented in the Group’s consolidated interim statements of comprehensive income (loss) prepared in accordance with KIFRS for each of the three-month periods ended March 31, 2020 and 2019 to the operating profit or loss as presented in the Group’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	March 31, 2020			March 31, 2019
Operating income (loss) on the consolidated interim statements of comprehensive income (loss)	W	430,554			(629,880	)
Add
Other income
Reversal of other provisions		1,570			7,080
Reversal of other allowance for bad debts		24			—
Gains on government grants		71			71
Gains on assets contributed		10,437			64
Gains on liabilities exempted		830			103
Compensation and reparations revenue		19,495			18,842
Revenue from research contracts		937			1,150
Rental income		46,867			46,982
Others		6,293			6,305
Other gains
Gains on disposal of property, plant and equipment		27,357			8,833
Gains on disposal of intangible assets		—			97
Gains on disposal of investment properties		34,423			—
Gains on foreign currency translation		12,018			4,540
Gains on foreign currency transactions		7,830			6,301
Gains on insurance proceeds		—			13
Others		61,244			66,345
Deduct
Other expense
Compensation and indemnification expense		(313	)		—
Accretion expenses of other provisions		(56	)		(51	)
Depreciation expenses on investment properties		(370	)		(244	)
Depreciation expenses on idle assets		(1,639	)		(1,636	)
Other bad debts expense		(35	)		(847	)
Donations		(11,143	)		(11,985	)
Others		(3,057	)		(5,473	)
Other losses
Losses on disposal of property, plant and equipment		(7,786	)		(13,992	)
Impairment loss on property, plant and equipment		—			(2,279	)
Losses on foreign currency translation		(8,581	)		(58,960	)
Losses on foreign currency transactions		(22,100	)		(9,860	)
Others		(42,465	)		(11,322	)
Adjusted operating profit (loss)	W	562,405			(579,803	)

138