Korea Electric Power (KEP) 20-F 2021 FY Annual report (foreign)

0000887225 ifrs-full:TopOfRangeMember kep:KoreaElectricPowerCorporationFundMember 2020-01-01 2020-12-31 0000887225 ifrs-full:OtherEquitySecuritiesMember ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLossCategoryMember 2021-01-01 2021-12-31 0000887225 kep:WorldCnMIncMember 2021-12-31 0000887225 kep:CashAndCashEquivalentsMember 2020-12-31

As filed with the Securities and Exchange Commission on April 29, 2022

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form

20-F

(Mark One)

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

OR

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

For the fiscal year ended December 31, 2021

OR

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

OR

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

Date of event requiring this shell company report

For the transition period from             to            

Commission File Number:

001-13372

KOREA ELECTRIC POWER CORPORATION

(Exact name of registrant as specified in its charter)

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

55

Jeollyeok-ro

,

Naju-si,

Jeollanam-do,

58322, Korea

(Address of principal executive offices)

Yoonjue Lee, +82 61 345 4213, yoonjue.lee@kepco.co.kr, +82 61 345 4299

55

Jeollyeok-ro

,

Naju-si,

Jeollanam-do,

58322, Korea

(Name, telephone, e-mail and/or facsimile number and address of company contact person)

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

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

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

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

None

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

One Hundred Year 7.95%

Zero-to-Full

Debentures, due April 1, 2096

6% Debentures due December 1, 2026

7% Debentures due February 1, 2027

6

3

⁄

4

% Debentures due August 1, 2027

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

covered by the annual report:

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

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

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

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

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

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

S-T

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

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

non-accelerated

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

12b-2

of the Exchange Act.

Large accelerated filer ☑                    Accelerated filer ☐                    

Non-accelerated

filer ☐                     Emerging Growth Company  ☐

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

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

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

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

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

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

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

12b-2

of the Exchange Act).    Yes  ☐    No  ☑

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

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

TABLE OF CONTENTS

			Page
PART I				3
ITEM 1.	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS			3
ITEM 2.	OFFER STATISTICS AND EXPECTED TIMETABLE			3
ITEM 3.	KEY INFORMATION			3
	Item 3.A.	[Reserved]		3
	Item 3.B.	Capitalization and Indebtedness		3
	Item 3.C.	Reasons for the Offer and Use of Proceeds		3
	Item 3.D.	Risk Factors		3
ITEM 4.	INFORMATION ON THE COMPANY			33
	Item 4.A.	History and Development of the Company		33
	Item 4.B.	Business Overview		34
	Item 4.C.	Organizational Structure		86
	Item 4.D.	Property, Plant and Equipment		92
ITEM 4A.	UNRESOLVED STAFF COMMENTS			93
ITEM 5.	OPERATING AND FINANCIAL REVIEW AND PROSPECTS			93
	Item 5.A.	Operating Results		93
	Item 5.B.	Liquidity and Capital Resources		102
	Item 5.C.	Research and Development, Patents and Licenses, etc.		109
	Item 5.D.	Trend Information		110
	Item 5.E.	Critical Accounting Estimates		110
ITEM 6.	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES			110
	Item 6.A.	Directors and Senior Management		110
	Item 6.B.	Compensation		115
	Item 6.C.	Board Practices		115
	Item 6.D.	Employees		116
	Item 6.E.	Share Ownership		117
ITEM 7.	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS			117
	Item 7.A.	Major Shareholders		117
	Item 7.B.	Related Party Transactions		117
	Item 7.C.	Interests of Experts and Counsel		118
ITEM 8.	FINANCIAL INFORMATION			118
	Item 8.A.	Consolidated Statements and Other Financial Information		118
	Item 8.B.	Significant Changes		121
ITEM 9.	THE OFFER AND LISTING			121
	Item 9.A.	Offer and Listing Details		121
	Item 9.B.	Plan of Distribution		123
	Item 9.C.	Markets		123
	Item 9.D.	Selling Shareholders		126
	Item 9.E.	Dilution		126
	Item 9.F.	Expenses of the Issue		126
ITEM 10.	ADDITIONAL INFORMATION			126
	Item 10.A.	Share Capital		126
	Item 10.B.	Memorandum and Articles of Incorporation		127
	Item 10.C.	Material Contracts		134
	Item 10.D.	Exchange Controls		134
	Item 10.E.	Taxation		140
	Item 10.F.	Dividends and Paying Agents		151
	Item 10.G.	Statements by Experts		151

i

			Page
	Item 10.H.	Documents on Display		151
	Item 10.I.	Subsidiary Information		152
ITEM 11.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			152
ITEM 12.	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES			157
	Item 12.A.	Debt Securities		157
	Item 12.B.	Warrants and Rights		157
	Item 12.C.	Other Securities		158
	Item 12.D.	American Depositary Shares		158
PART II				160
ITEM 13.	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES			160
ITEM 14.	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS			160
ITEM 15.	CONTROLS AND PROCEDURES			160
ITEM 16.	[RESERVED]			161
ITEM 16A.	AUDIT COMMITTEE FINANCIAL EXPERT			161
ITEM 16B.	CODE OF ETHICS			161
ITEM 16C.	PRINCIPAL ACCOUNTANT FEES AND SERVICES			162
ITEM 16D.	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEE			162
ITEM 16E.	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS			162
ITEM 16F.	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT			162
ITEM 16G.	CORPORATE GOVERNANCE			163
ITEM 16H.	MINE SAFETY DISCLOSURE			170
ITEM 16I.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS			170
PART III				171
ITEM 17.	FINANCIAL STATEMENTS			171
ITEM 18.	FINANCIAL STATEMENTS			171
ITEM 19.	EXHIBITS			171
INDEX OF EXHIBITS				172
INDEX TO FINANCIAL STATEMENTS				F-1

ii

CERTAIN DEFINED TERMS AND CONVENTIONS

All references to “Korea” or the “Republic” in this annual report on Form

20-F,

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

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

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

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

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

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

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

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

each of which is our wholly-owned generation subsidiary.

FORWARD-LOOKING STATEMENTS

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

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

CURRENCY TRANSLATIONS AND EXCHANGE RATES

In this annual report, unless otherwise indicated, all references to “Won,” “KRW” or “

W

” are to the currency of Korea, all references to “U.S. dollars,” “Dollars,” “USD”, “$” or “US$” are to the currency of the United States of America; all references to “Euro”, “€” or “EUR” are references to the currency of the European Union; all references to “Yen”, “¥” or “JPY” are references to the currency of Japan; all references to “A$” or “AUD” are to the currency of Australia; all references to “HK$” or “HKD” are to the currency of Hong Kong; all references to “Fr.” or “CHF” are to the currency of Switzerland; all references to “kr” or “SEK” are to the currency of Sweden. Unless otherwise indicated, all translations from Won to U.S. dollars

1

were made at Won 1,188.6 to US$1.00, which was the Noon Buying Rate of the Federal Reserve Board (the “Noon Buying Rate”) in effect as of December 31, 2021, which rates are available on the H.10 statistical release of the Federal Reserve Board. On April 8, 2022, the Noon Buying Rate was Won 1,225.1 to US$1.00. The exchange rate between the U.S. dollar and Korean Won may be highly volatile from time to time and no representation is made that the Won or U.S. dollar amounts referred to in this annual report could have been or could be converted into U.S. dollars or Won, as the case may be, at any particular rate or at all.

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

Year Ended December 31,	At End of Period		Average (1)		High		Low
	(Won per US$1.00)
2017		1,067.4		1,141.6		1,207.2		1,067.4
2018		1,112.9		1,099.3		1,141.7		1,054.6
2019		1,155.5		1,165.8		1,220.7		1,111.8
2020		1,086.1		1,180.6		1,267.3		1,081.9
2021		1,188.6		1,144.9		1,198.7		1,081.6
October		1,174.9		1,181.9		1,198.7		1,167.3
November		1,187.5		1,184.1		1,194.4		1,177.0
December		1,188.6		1,183.9		1,192.4		1,173.6
2022 (through April 8)		1,225.1		1,207.1		1,242.7		1,187.0
January		1,206.8		1,196.0		1,209.0		1,187.0
February		1,202.3		1,199.1		1,209.4		1,192.1
March		1,211.6		1,220.8		1,242.7		1,204.3
April (through April 8)		1,225.1		1,216.5		1,225.1		1,212.6

Source: Federal Reserve Board

Note:

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

2

PART I

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

Item 3.A. [Reserved]

Item 3.B. Capitalization and Indebtedness

Not applicable.

Item 3.C. Reasons for the Offer and Use of Proceeds

Not applicable.

Item 3.D. Risk Factors

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

Risks relating to KEPCO

primarily include:

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

• Governmental policies that may affect the industry or our operations;

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

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

• incurrence of additional indebtedness;

• the movement of Won against other currencies;

• risks associated with new business strategies and overseas expansion opportunities;

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

• labor unrest and increases in labor cost;

• risks associated with the operation of nuclear power generation facilities;

• opposition from civic groups in respect of the construction and operation of our facilities;

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

• limited amount and scope of insurance coverage;

• inability to raise equity capital without the Government’s participation;

• claims by current or previous employees for unpaid wages;

3

• cyberattacks;

• Russia-related dealings; and

• the effects of COVID-19.

Risks relating to Korea and Global Economy

primarily include:

• unfavorable financial and economic conditions in Korea;

• tensions with North Korea;

• being subject to Korean corporate governance and disclosure standards; and

• risks associated with enforcing a foreign judgment against us.

Risks relating to Our American Depositary Shares (ADSs)

primarily include:

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

• ownership of our shares being restricted under Korean law;

• no preemptive rights in certain circumstances;

• being affected by the volatility of the Korean securities market;

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

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

Risks Relating to KEPCO

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

In 2021, fuel costs constituted 30.5% of our cost of sales, and the ratio of fuel costs to our sales was 32.4%. Our generation subsidiaries purchase substantially all of the fuel that they use (except for anthracite coal) from suppliers outside Korea at prices determined in part by prevailing market prices in currencies other than Won. For example, most of the bituminous coal requirements (which accounted for approximately 42.6% of our fuel requirements in 2021 in terms of electricity output) are imported principally from Australia, Indonesia, Russia and, to a lesser extent, South Africaand others, which accounted for approximately 48.9%, 20.0%, 11.5%, 4.1% and 15.5%, respectively, of the annual bituminous coal requirements of our generation subsidiaries in 2021. Approximately 92.9% of the bituminous coal requirements of our generation subsidiaries in 2021 were purchased under long-term contracts and the remaining 7.1% from the spot market. Pursuant to the terms of our long-term supply contracts, prices are adjusted periodically based on prevailing market conditions. In addition, our generation subsidiaries purchase a significant portion of their fuel requirements under contracts with limited duration. See Item 4.B. “Business Overview—Fuel Sources and Requirements.”

The prices of our main fuel types, namely, bituminous coal, oil and liquefied natural gas, or LNG, fluctuate, sometimes significantly, in tandem with their international market prices. For example, the average weekly spot price of “free on board” Newcastle coal 5500 NAR (Net As Received) published on Korea Mineral Resource Information Service by Korea Mine Rehabilitation and Mineral Resources Corporation increased from US$45.89 per ton in 2020 to US$84.77 per ton in 2021 and further increased to US$196.38 per ton as of April 15, 2022. The prices of oil and LNG are substantially dependent on the price of crude oil, and according to Bloomberg (Bloomberg Ticker: PGCRDUBA), the average daily spot price of Dubai crude oil increased from US$42.21 per barrel in 2020 to US$69.01 per barrel in 2021 and further increased to US$104.83 per barrel as of April 14, 2022. Furthermore, because the prices of LNG are dependent on the price of crude oil, an increase in such fuel prices can result in an increase in the prices of LNG, which, in turn, affect the cost of purchasing electricity from

4

independent power producers. We cannot assure you that fuel prices will remain stable or will not significantly increase in the remainder of 2022 or thereafter. In addition, following the International Maritime Organization’s regulation referred to as IMO 2020 that regulates sulfur content of ships’ fuel oil, IMO 2023 will also be mandated from January 1, 2023. IMO 2023 will regulate energy efficiency and carbon emissions of ships by setting specific indices that all ships are required to comply with. While we have seen mixed reactions in the market, there is a likelihood that installation of energy saving devices or modification of ships to improve their carbon emissions level may increase as the regulation comes into force. Such trends may significantly increase the operating cost of the shipping lines and the increased costs are expected to be passed onto customers like us via higher freight rates. If fuel prices increase substantially in the future within a short span of time, our generation subsidiaries may be unable to secure adequate fuel supplies at prices commercially acceptable to them. In addition, any significant interruption or delay in the supply of fuel, bituminous coal in particular, from any of their suppliers may cause our generation subsidiaries to purchase fuel on the spot market at prices higher than the prices available under existing supply contracts, which would result in an increase in fuel costs.

As of January 1, 2021, we implemented a new cost pass-through tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers and to enhance transparency by separately billing fuel costs and climate/environment related costs. Previously, the electricity tariff consisted of two main components: (i) the base charge (the “Base Charge”) and (ii) the usage charge (the “Usage Charge”) based on the amount of electricity consumed by

end-users.

Under the new tariff system, there are new components to the tariff called the fuel cost adjusted charge (the “Fuel Cost Adjusted Charge”) and the climate/environment related charge (the “Climate/Environment Related Charge”). In principle, the Fuel Cost Adjusted Charge is calculated on a quarterly basis and the formula for calculating the amount of the Fuel Cost Adjusted Charge is multiplying (i) the unit price of the Fuel Cost Adjusted Charge (the “Unit Price of the Fuel Cost Adjusted Charge”), which is the difference between a base fuel cost (the “Base Fuel Cost”) and an actual fuel cost (the “Actual Fuel Cost”) and (ii) the amount of electricity consumed. The Base Fuel Cost is the past twelve-month average fuel price of bituminous coal, LNG and Bunker C oil as posted by the Korea Customs Service. The twelve-month average fuel price is measured by taking the average of monthly fuel prices of twelve months in between thirteen months and one month prior to the time a new Base Fuel Cost becomes effective. To illustrate, the Base Fuel Cost effective from 2022 is the average of the fuel prices from December 2020 to November 2021. On the other hand, the Actual Fuel Cost is the past three-month average fuel price of the same fuels we use to measure the Base Fuel Cost. The past three-month average fuel price is measured by taking the average of monthly fuel prices from three preceding months from one month before the start of each period when the applicable Fuel Cost Adjusted Charge will be updated. To illustrate, for the first quarter of 2022, we used the fuel costs for September, October and November 2021 to calculate the three-month average fuel price.

The quarterly-adjusted Fuel Cost Adjusted Charge has

built-in

limits in view of price stability and other public policy considerations. First, there are limits on the Unit Price of the Fuel Cost Adjusted Charge to be (i) no less than Won ±1 per kilowatt-hour and (ii) no greater than Won ±3 per kilowatt-hour as compared to the immediately preceding quarter. In other words, any change less than Won ±1 per kilowatt-hour will not be reflected to the Fuel Cost Adjusted Charge and any change greater than Won ±3 per kilowatt-hour will not be reflected to the extent of the portion that exceeds Won ±3 per kilowatt-hour. For example, in the first quarter of 2021, the Unit Price of the Fuel Cost Adjusted Charge was Won –10.5 per kilowatt-hour, meaning the Actual Fuel Cost was lower than the Base Fuel Cost, but after being subjected to the quarterly limit of Won ±3 per kilowatt-hour, the final rate for the Unit Price of the Fuel Cost Adjusted Charge came out to be Won –3.0 per kilowatt-hour. Second, the Unit Price of the Fuel Cost Adjusted Charge that exceeds Won ±5 per kilowatt-hour will not be reflected in the Fuel Cost Adjusted Charge. In other words, the maximum adjustment that can be incorporated to the Unit Price of the Fuel Cost Adjusted Charge is equal to Won ±5 per kilowatt-hour from the Base Fuel Cost that is in effect for a given period. The Base Fuel Cost can only be adjusted upon the revision of the Base Charge or the Usage Charge as described at further below in this risk factor.

However, our ability to pass on fuel and other cost increases to our customers may be limited due to the regulation of the Government on the rates we charge for the electricity we sell to our customers. In addition to

5

the

built-in

limits described in the preceding paragraph, the new tariff system gives the discretion to the Government not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances. For example, in the second and third quarters of 2021, although the Unit Price of the Fuel Cost Adjusted Charge was Won –0.2 and 0.0 per kilowatt-hour respectively, the Government notified us to keep it at the same Won –3.0 per kilowatt-hour as the first quarter of 2021. In the fourth quarter of 2021, we increased the Unit Price of the Fuel Cost Adjusted Charge to Won 0.0 per kilowatt-hour. However, in the first and second quarters of 2022, although the Unit Price of the Fuel Cost Adjusted Charge as calculated should have been Won 3.0 per kilowatt-hour, the Government notified us to keep it at the same Won 0.0 per kilowatt-hour as the fourth quarter of 2021. The Government cited different reasons for withholding the application of the quarterly Fuel Cost Adjusted Charge for each quarter but one of the more consistent reasons has been to alleviate the hardship caused by the prolonged economic effects of

COVID-19

pandemic.

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

Due to the likelihood of the Actual Fuel Cost being substantially over the

built-in

limits of the new tariff system and the Government’s discretion not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, there may be certain portions of the fuel costs that cannot be charged to our customers, even though those portions should have been included in the Fuel Cost Adjusted Charge. In such cases, we may accumulate such portions and reflect them in what is called the total comprehensive cost (the “Total Comprehensive Cost”), which is a variable we use to calculate the Base Charge and the Usage Charge of the tariff. The Total Comprehensive Cost, submitted yearly to the Government by us, is calculated based on our budget for relevant costs. Under the Total Comprehensive Cost approach, the Base Charge and the Usage Charge are established at levels that would enable us to recover our operating costs attributable to our basic electricity generation, transmission and distribution operations as well as receive a fair investment return on capital used in those operations. The operating costs are defined as the sum of our operating expenses, which principally consists of cost of sales and selling and administrative expenses, and our adjusted income taxes. The Base Charge and the Usage Charge that are derived from the Total Comprehensive Cost need to be approved by the Government to be revised. We announced in December 2021 that we plan to increase the rate of the Usage Charge of the tariff by Won 4.9 per kilowatt-hour on April 1 and October 1, 2022, which will result in a total increase of Won 9.8 per kilowatt-hour. Such increases are intended to reflect the rise in fuel prices and are in line with the purpose of the cost pass-through tariff system. However, we have decided to increase it incrementally in two rounds to relieve people’s hardship including the prolonged effects of COVID-19 pandemic. The first round of increase has become effective on April 1, 2022. In addition, the Base Fuel Cost in principle can only be adjusted upon the revision of the Base Charge or the Usage Charge. Therefore, if the Base Charge and the Usage Charge are not timely adjusted by the Government, there can be a delay for the change in fuel costs to be fully reflected in the tariff. To illustrate, in connection with the aforementioned increase in the Usage Charge announced in December 2021, we also increased the Base Fuel Cost effective from 2022 to be the average of the monthly fuel prices from December 2020 to November 2021.

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

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

From time to time, the Government considers various policy initiatives to foster efficiency in the Korean electric power industry, and at times have adopted policy measures that have substantially modified our business and operations. For example, in January 1999, with the aim of introducing greater competition in the Korean electric power industry and thereby improving its efficiency, the Government announced a restructuring plan for the Korean electric power industry, or the Restructuring Plan. For a detailed description of the Restructuring Plan, see Item 4.B. “Business Overview—Restructuring of the Electric Power Industry in Korea.” As part of this initiative, in April 2001 the Government established the Korea Power Exchange to enable the sale and purchase of electricity through a competitive bidding process, established the Korea Electricity Commission to ensure fair competition in the Korean electric power industry, and, in order to promote competition in electricity generation, split off our electricity generation business to form one nuclear generation company and five

non-nuclear

generation companies, in each case, to be wholly owned by us. In 2002, the Government introduced a plan to privatize one of our five

non-nuclear

generation subsidiaries, but this plan was suspended indefinitely in 2004 due to prevailing market conditions and other policy considerations.

In August 2010, the Ministry of Trade, Industry and Energy announced the Proposal for the Improvement in the Structure of the Electric Power Industry, which was designed to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them. Pursuant to this proposal, while our six generation subsidiaries continued to be our wholly-owned subsidiaries, in January 2011 the six generation subsidiaries were officially designated as “market-oriented public enterprises” (same as us) under the Act on the Management of Public Institutions, whereupon the President of Korea appoints the president and the standing director who is to become a member of the audit committee of each such subsidiary; the selection of

non-standing

directors of each such subsidiary is subject to approval by the minister of the Ministry of Economy and Finance; the president of each such subsidiary is required to enter into a management contract directly with the minister of the Ministry of Trade, Industry and Energy; and the Committee for Management of Public Institutions (which is comprised largely of Government officials and those recommended by Government officials) conducts performance evaluation of such subsidiaries. Previously, our president appointed the president and the statutory auditor of each such subsidiary; the selection of

non-standing

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

In June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) for the purpose of streamlining the operations of Government-affiliated energy companies by discouraging them from engaging in overlapping or similar businesses with each other, reducing

non-core

assets and activities and improving management and operational efficiency. The initiatives contemplated in this proposal that would affect us and our generation subsidiaries include the following: (i) the generation companies should take on greater responsibilities in overseas resource exploration and production projects as these involve procurement of fuels necessary for electricity generation while fostering cooperation among each other through closer coordination, (ii) KHNP should take a greater role in export of nuclear technology, and (iii) the current system of retail sale of electricity to

end-users

should be liberalized to encourage more competition. In accordance therewith, we transferred a substantial portion of our assets and liabilities in our overseas resource business to our generation subsidiaries as of December 31, 2016. In addition, pursuant to this Proposal, we

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considered a sale in the public market of a minority of our shares in our five

non-nuclear

generation subsidiaries, KEPCO KDN and KHNP. However, the planned sales have been put on hold, primarily due to prevailing market conditions. In any event, we plan to maintain a controlling stake in each of these subsidiaries.

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

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

Previously, there have been several adjustments to the existing tariff rates for certain consumers in order to ease the burden of electricity tariff on them. But these adjustments may be independent from fuel price movements and our business, results of operations, financial condition and profitability may suffer as a result. For example, effective on January 1, 2017, the progressive rate structure applicable to the residential sector, which applies a gradient of increasing tariff rates for heavier electricity usage, was changed from a

six-tiered

structure with the highest rate being no more than 11.7 times the lowest rate (which gradient system has been in place since 2005) into a three-tiered structure with the highest rate being no more than three times the lowest rate, in order to reflect the changes in the pattern of electricity consumption and reduce the electricity charges payable by consumers. Additionally, a new tariff structure was implemented to encourage energy saving by offering rate discounts to residential consumers that voluntarily reduce electricity consumption while charging special high rates to residential consumers with heavy electricity consumption during peak usage periods in the summer and the winter. Further, during July and August 2018, the residential electricity charges were reduced by temporarily relaxing the application of the then tariff structure and offering higher rate discounts to economically or otherwise disadvantaged customers to ease the burden on households that have significantly increased their use of air conditioners during a heatwave. Subsequently, a joint task force team, consisting of industry experts, scholars and Government officials, was formed, which announced a proposal for amending the tariff structure aimed to lower electricity rates for households during the summer. As a result, in July 2019, the residential electricity tariff rate system was amended to expand the usage ceiling for the first two tiers of rates (from 200 kilowatts to 300 kilowatts for the first tier and from 400 kilowatts to 450 kilowatts for the second tier) applied during July and August each year. With the implementation of the new tariff system as of September 1, 2021, the residents were given a new benefit to opt for a new schedule of residential tariff, which is an option we have already been providing to our industrial and commercial customers. The new schedule is called a seasonal and hourly tariff and it allows residents to be charged under a monthly Base Charge plus increments depending on time, day and season. Each household may also choose to stay under the current tariff schedule which in contrast is a progressive schedule with seasonal adjustments. Our plan is to provide this option to households in Jeju Province in Korea first as many of these households are equipped with the Advanced Metering Infrastructure (“AMI”) and review rolling it out to the rest of the country depending on the penetration rate of the AMI in each region.

On the other hand, there are also policy measures that have been repealed. For example, the rate discounts offered to residential consumers who voluntarily reduced electricity consumption and those offered to traditional wet markets were abolished in December 2019. The rate discounts for electric vehicles will be gradually terminated in phases by June 2022 and the rate discounts for households that use less than 200 kilowatt-hours

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were phased out to 50% in July 2021 and will be terminated in July 2022. Despite these, there can be no assurance that the current and future adjustments in electricity tariff rates and rate discounts will not have an adverse impact on our business, results of operations, financial condition and profitability. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates” for more information on electricity tariff charged to our consumers.

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

We and our generation subsidiaries make plans for expanding or upgrading our generation capacity and transmission infrastructure based on the Basic Plan Relating to the Long-Term Supply and Demand of Electricity, or the Basic Plan, which is generally revised and announced every two years by the Government. In December 2020, the Government announced the Ninth Basic Plan to revise the Eighth Basic Plan. The Ninth Basic Plan is effective for the period from 2020 to 2034. The Ninth Basic Plan focuses on, among other things, accelerating transition to

eco-friendly

power sources. The specific measures include: (i) thirty decrepit coal-fired power plants and eleven nuclear power plants will be retired, and, as a result, coal and nuclear generation capacities will be reduced to 29 gigawatts and 19.4 gigawatts respectively by 2034, (ii) twenty-four out of thirty decrepit coal-fired power plants will be retired, the total generation capacity for which is 12.7 gigawatts, and shall be converted into using LNG instead, and (iii) domestic renewable energy generation capacity will be expanded by 77.8 gigawatts by 2034 in accordance with the Green New Deal initiative of the Korean Government.

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

value-add

for traditional energy industries and maintaining a core energy ecosystem for nuclear power plants; and (v) improving the energy, gas and heat market systems to facilitate the national energy conversion and building platforms based on big data to foster creation of new energy industries.

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

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From time to time, we may experience temporary power shortages or circumstances bordering on power shortages due to factors beyond our control, such as extreme weather conditions. Such circumstances may lead to increased

end-user

complaints and greater public scrutiny, which may in turn require us to modify our capacity expansion plans, and if we were to substantially modify our capacity plans, this might result in additional capital expenditures and, as a result, have a material adverse effect on our results of operations, financial condition and cash flows.

Although the Government makes significant efforts to encourage conservation of electricity, including through public education campaigns, there is no assurance that such efforts will have the desired effect of substantially reducing the demand for electricity or improving efficient use thereof.

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

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

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

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

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

  ¡ In accordance with the Act on Allocation and Trading of Greenhouse Gas Emission Allowances enacted in March 2013, the Government implemented a greenhouse gas emission trading system under which the Government will allocate the amount of permitted greenhouse gas emission to companies by industry and a company whose business emits more carbon than the permitted amount is required to purchase the right to emit more carbon through the Korea Exchange. The categories of allowances traded include the Korean Allowance Unit (KAU), which is the

10

emissions allowance allocated to applicable companies by the Government; Korean Credit Unit (KCU), which is a tradable unit converted from external carbon offset certifications including the Korean Offset Credit; and Korean Offset Credit (KOC), which is the verified carbon offset credit obtained by companies for reducing carbon emissions through absorption or otherwise. The greenhouse gas emission trading system is expected to be implemented in three stages. During the first phase (2015 to 2017), the Government gradually has set up and conducted a test run of the trading system to ensure its smooth operation, allocating the greenhouse gas emission allowances free of charge. In July 2018, the Government released the allocation plan for the second phase (2018 to 2020), during which 97% of the greenhouse gas emission allowances were allocated free of charge, with 3% allocated through an auction. During the third phase (2021 to 2025), the Government expanded the scale of the system with aggressive greenhouse gas emission reduction targets and allocating 10% of the greenhouse gas emission allowances through an auction.

  ¡ In connection with the Climate Change Response Initiatives and the 2030 National Greenhouse Gas Reduction Roadmap announced by the Government in December 2016, the government subsequently announced the Long-term Low Greenhouse Gas Emission Development Strategies, which presents a long-term vision and national strategy for achieving carbon neutrality in 2050, and the Nationally Determined Contributions (“NDC”), which sets forth the greenhouse gas reduction targets by 2030. According to the Framework Act on Carbon Neutral and Green Growth to Cope with Climate Crisis and the latest figures of NDC announced by the Government, the target level in 2030 is 436.6 million tons and represents 40% reduction as compared to the level in 2018, and the target level for the electricity conversion sector as a whole which we are the part of is 149.9 million tons and represents 44.4% reduction. We cannot assure you that the reduction target will not be further raised in the future. Adhering to such emission and greenhouse gas reduction requirement may result in significant additional compliance costs. For example, the daily market price of the Korean Allowance Units (KAU), one of the categories of allowance traded on the Korea Exchange and allocated to applicable companies by the Government, was Won 8,640 per ton in early 2015, and the price has increased continuously thereafter, reaching its peak price at Won 42,500 per ton on April 2, 2020. Since then, the price has decreased due to the influence of COVID-19, and, as of the March 31, 2022, the price has been formed in the range of Won 23,000 per ton. We cannot predict how the price of the KAUs will fluctuate over time, and such volatility may adversely affect our results of operation, financial condition and cash flows.

• Obligatory and Voluntary Regulation of Coal-Fired Generation Units. As a measure to address the high level of particulate matter pollution, in October 2018, the Government introduced a pilot regulation to lower the output of 35 coal-fired generation units to approximately 80% of their capacity that emit more than a certain amount of particulate matter. The regulation was formally implemented in January 2019, targeting 40 coal-fired power plants with high emissions of particulate matter. From March to June 2019, the scope expanded to cover 60 units in total. From November 2019, the Government pursued a reduction of coal-fired generation units in order to implement the Special Measures to Respond to the High Concentration Period (December to March) of Particulate Matter. We plan to continue to participate in the effort to reduce the particulate matter emissions from coal-fired generation units, not only during the winter but also during the spring. For example, from December 2021 to March 2022, up to 12 coal-fired generation units were shut down, with a maximum of 46 coal-fired generation units subject to a cap of 80% on the output within the remaining reserve capacity range. Additionally, the Government adjusted the schedule to close down two decrepit coal-fired generation units (Boryeong #1 and #2), which were shut down in December 2020. Also, other coal-fired generation units, Samcheonpo #1 and #2 were shut down in May 2021 and Honam #1 and #2 units in December 2021. According to the Ninth Basic Plan announced in December 2020, the total coal-fired power plant capacity in 2030 will decrease to 32.6 gigawatts from 35.8 gigawatts in 2020, and its percentage of total power generation capacity will decrease to 18.9% from 28.1% in 2020. In addition, the Government will introduce a system that will limit the annual power generation of coal-fired power plants in line with its greenhouse gas reduction target. While such measures may be subject

11

to change, we expect to incur significant costs of complying with such measures, including in connection with more stringent particulate matter pollution regulations, retrofitting and overall replacement of environmental facilities. In 2021, our generation subsidiaries introduced a voluntary regulation to lower the output of coal-fired generation units, suspending the operations of up to 13 coal power generation plants and imposing a cap of 80% on the output of up to 40 coal-fired generation units.

• Coal and LNG Consumption Taxes . In January 2014, largely based on policy considerations of tax equity among different fuel types as well as environmental concerns, the Ministry of Economy and Finance announced that, effective July 1, 2014, consumption tax will apply to bituminous coal, which previously was not subject to consumption tax unlike other fuel types such as LNG or bunker oil. Pursuant to the amended Individual Consumption Tax Act effective as of April 1, 2019, which involved an increase of the unit tax rate for coal by Won 10 per kilogram across the board, the base tax rate (which is subject to certain adjustments) is Won 46 per kilogram for bituminous coal; however, due to concerns on the potential adverse effect on industrial activities, the applicable tax rate is applied differently based on the net heat generation amount. The currently applicable tax rate for bituminous coal is Won 43 per kilogram for net heat generation of less than 5,000 kilocalories, Won 46 per kilogram for net heat generation of 5,000 to 5,500 kilocalories and Won 49 per kilogram for net heat generation of 5,500 kilocalories or more. In contrast, the consumption tax and surcharge on importation of LNG decreased by Won 48 and Won 20.4 per kilogram, respectively, which came into effect in April 2019. The currently applicable consumption tax rate and surcharge on importation of LNG are Won 12 and Won 3.8 per kilogram, respectively. We expect any increase in tax rates may adversely affect our overall fuel costs and power purchase cost.

• Renewable Portfolio Standard . Under this program, each of our generation subsidiaries is required to generate a specified percentage of total electricity to be generated by such generation subsidiary in a given year in the form of renewable energy or, in case of a shortfall, purchase a corresponding amount of a Renewable Energy Certificate (a form of renewable energy credit) from other generation companies whose renewable energy generation surpass such percentage. The target percentage was 5.0% in 2018, 6.0% in 2019, 7.0% in 2020, and 9.0% in 2021. In 2020, all six of our generation subsidiaries met the target through renewable energy generation and/or the purchase of a Renewable Energy Certificate. Compliance by our generation subsidiaries of the 2021 target is currently under evaluation, and if any generation subsidiary is found to have failed to meet the target for 2021 or for subsequent years, such generation subsidiary may become subject to fines. From October 2021, an amendment to the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy will raise the upper limit of the target percentage even higher to 25% from the previous threshold of 10%. The Enforcement Decree of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy was amended and became effective on January 4, 2022 to gradually increase the annual upper limit of target percentage to 12.5% in 2022, 14.5% in 2023, 17.0% in 2024, 20.5% in 2025 in order to raise the upper limit of target percentage to 25% in 2026. Such increase may result in additional expenses for our generation subsidiaries.

	2022			2023			2024			2025			2026
Target Percentage under Renewable Portfolio Standard		12.5	%		14.5	%		17.0	%		20.5	%		25.0	%

• Renewable Energy Expansion Plan . In December 2017, the Ministry of Trade, Industry and Energy announced the Renewable Energy 3020 Plan, an initiative to increase the generation and use of renewable energy on a nationwide basis. The Government plans to increase the required percentage of total electricity to be generated from renewable energy sources from 7% in 2016 to 10.5% and 20% by 2022 and 2030, respectively. Moreover, the Government plans to increase the domestic renewable energy generation capacity to 63.8 gigawatts by 2030 through the expansion of solar and wind power generation capacities to 36.5 gigawatts and 17.7 gigawatts, respectively. According to the Ninth Basic

12

Plan and the Fifth Basic Plan on Renewable Energy announced in December 2020, the Government has set national targets of 82.2 gigawatts in renewable energy generation in 2034, with the goal of increasing the percentage of total electricity to be generated from renewable energy sources to 30% by 2030.

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

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

• Renewable Energy 100. In line with the spread of Renewable Energy 100 (“RE100”), a global campaign by companies around the world to cover 100% of their electricity use with renewable energy by 2050, the Government introduced its own version of RE100 that allows companies and other consumers to choose energy sources from which their electricity is generated. In order for a domestic company to participate in RE100, it may enter into a power purchase agreement (“PPA”) either with a renewable energy generator through us as an intermediary (“third-party PPA”) or with a renewable energy generator directly such that the generator will supply electricity to the company without going through the existing electricity market (“direct PPA”). The relevant legislation for the direct PPA was enacted in the National Assembly in March 2021 and has been in force since October 2021. The Ministry of Trade, Industry and Energy announced that detailed guideline for direct PPA will be finalized and announced within 2022. If there is an expansion in the use of direct PPA, it may adversely affect our market share in electricity sales.

• 2050 Carbon-Neutrality Declaration . In response to the Paris Agreement and the United Nations Framework Convention on Climate Change (UNFCCC)’s goal to comprehensively replace fossil fuels and achieve global net-zero emission by 2050, the Korean national assembly has passed a non-binding resolution on September 24, 2020 to establish a special committee on climate change and urge the Government to meet its 2030 carbon reduction goal and bolster its efforts to achieve carbon neutrality by 2050. On November 27, 2020, the Government officially announced the Government’s commitment to implement policies in all areas of the industry to achieve Korea’s carbon neutrality by 2050. On December 10, 2020, the Government followed up with broad 2050 carbon neutrality development strategies. In May 2021, the Government launched a carbon neutrality committee which issued a preliminary draft of the carbon neutrality scenario in August 2021. After going through the process of collecting opinions from the consultative bodies in various sectors and citizen participation groups, the committee deliberated and finalized the 2050 carbon neutrality scenarios in October 2021. According to the two scenarios that have been finalized, both them will aim to achieve net-zero domestic carbon dioxide emissions by 2050. Scenario A will completely suspend thermal power generation, while scenario B will actively utilize technologies such as carbon capture, utilization and storage (CCUS) while allowing some thermal power generation to continue. If any specific regulation or policy affecting our business is announced or implemented, we may experience an increased regulatory scrutiny over carbon dioxide emission from our electricity generation activities and related projects

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overseas. We and our generation subsidiaries announced the 2050 Carbon-Neutrality Vision in November 2021 and will further invest in various renewable energy power generation projects, new business opportunities and core technology development with a goal of entirely replacing domestic coal power generation by 2050. In the process of pursuing such, our business strategy and investment plan may change from time to time and it may result in additional costs to us, including, among other things, increased production costs, additional taxes, reduced emission allowances or additional restrictions on production or operations, particularly as they may relate to our power generation business. In addition, the achievement of carbon neutrality by 2050 may be delayed or made impossible due to unexpected changes in policies or power market conditions including a major shift in the supply and demand of electricity.

Complying with these Government initiatives and operating programs in furtherance thereof has involved and will likely continue to involve significant costs and resources on our part, which may adversely affect our results of operation, financial condition and cash flows. Our cost of complying with the Renewable Portfolio Standard increased as the target percentage for compliance increased in 2021. We expect our future compliance costs may increase as the requirements under Government initiatives and operating programs continue to become more rigorous. We may not be able to pass on the increased cost to customers at a sufficient level or on a timely basis. Further, we and our generation subsidiaries could also become subject to substantial fines and other forms of penalties for

non-compliance.

Even without such financial losses, increased public awareness and adverse publicity about potential impacts on climate change or environmental harm from us or our industry could harm our reputation or otherwise impact the Company adversely. In recent years, investors have also begun to show increased interest about sustainability and climate change as it relates to their investment decisions.

According to the new tariff system which came into effect on January 1, 2021, the Government introduced an additional component to the tariff called the Climate/Environment Related Charge. Previously, our climate and environment costs were embedded in the Usage Charge component of the tariff and our consumers could not discern the exact magnitude of such costs. By separating it out as an independent component, we intend to provide more information and transparency to our customers while having the flexibility to adjust it in alignment with the underlying costs. The Climate/Environment Related Charge for the coming year is calculated by multiplying (i) our total estimated costs of complying with the Renewable Portfolio Standard program, the Greenhouse Gas Emission Trading System and the coal-fired generation reduction program for the current year, and then dividing it by the electricity sales projected for the coming year (the “Climate/Environment Related Base Rate”), and (ii) the amount of electricity consumed. The value of the Climate/Environment Related Base Rate for 2021 was Won 5.3 per kilowatt-hour. In accordance with the tariff increase plan we announced in December 2021, we further reflected increased environmental costs in 2022 to raise the Climate/Environment Related Base Rate by Won 2.0 to Won 7.3 per kilowatt-hour, the original implementation date for which as of January 1, 2022 has been postponed to April 1, 2022 by the Government to alleviate the hardship caused by the prolonged economic effects of

COVID-19

pandemic. As such case illustrates, even though the Climate/Environment Related Charge is planned to be adjusted every year by reflecting the change in climate and environment-related costs, the Government may change the date of adjustment under reasonable circumstances. There is no guarantee the Climate/Environment Related Charge will be regularly updated, even though our climate and environment-related costs will likely increase each year. If there are discrepancies between our costs and the Climate/Environment Related Charge, we may accumulate such discrepancies and reflect them in our Total Comprehensive Cost. However, the electricity rate based on the Total Comprehensive Cost needs to be approved by the Government to be revised. There is no assurance that, particularly given the wide-ranging policy priorities of the Government, it will in fact raise the electricity rate to a level sufficient to fully cover additional costs associated with implementing and operating programs as described in this risk factor and do so on a timely basis or at all. If the Government does not do so or provide us and our generation subsidiaries with other forms of assistance to offset the costs involved, our results of operation, financial condition and cash flows may be materially and adversely affected.

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

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

We anticipate that a substantial amount of additional indebtedness will be required in the coming years in order to refinance existing debt, make capital expenditures for construction of generation plants and other facilities and/or make acquisitions, invest in renewable energy and the “new energy industry” projects and fund our overseas businesses. In 2019, 2020 and 2021, our capital expenditures in relation to the foregoing amounted to Won 15,795 billion, Won 15,485 billion and Won 13,964 billion, respectively, and our budgeted capital expenditures for 2022, 2023 and 2024 amount to Won 15,360 billion, Won 16,172 billion and Won 16,133 billion, respectively.

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

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

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

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

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

Changes in foreign exchange rates may also impact the cost of servicing our foreign currency-denominated debt. As of December 31, 2021, 16.4% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions, was denominated in foreign currencies, principally U.S. dollar. In addition, even if we make payments in Won for certain fuel materials and equipment, some of these fuel materials may originate from other countries and their prices may be affected accordingly by the exchange rates between the Won and foreign currencies, especially the U.S. dollar. Since the substantial majority of our revenues are denominated in Won, we must generally obtain foreign currencies through foreign currency-denominated financings or from foreign currency exchange markets to make such purchases or service such debt. As a result, any significant depreciation of Won against the U.S. dollar or other major foreign currencies will have a material adverse effect on our profitability and results of operations.

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We may not be successful in implementing new business strategies.

As part of our overall medium- to long-term business strategies created in 2022, we plan to (i) establish power grid system which could further contribute to achieving carbon neutrality, (ii) expand clean energy and promote strategic demand response, (iii) lead future energy market and improve sales competitiveness, (iv) lead platform-based new businesses, (v) transform overseas business portfolio to focus on

eco-friendly

projects and core competencies, (vi) secure future technologies and build a research and development ecosystem, (vii) promote digitalization in overall supply chain, and (viii) establish a highly reliable and highly efficient management system with respect to human beings and environment.

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

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

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

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

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

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

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

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

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

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

While our operations have,

to-date,

been primarily based in Korea, we and our generation subsidiaries may expand, on a selective and opportunistic basis, overseas operations in the future. In particular, we and our generation subsidiaries may further expand the construction and operation of renewable energy power plants, transmission and distribution and (primarily through our generation subsidiaries) mining and development of fuel sources.

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

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

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

• difficulties in enforcing creditors’ rights in foreign jurisdictions;

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

• difficulties in establishing, staffing and managing foreign operations;

• differing labor regulations;

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

• lack of familiarity with local markets and competitive conditions;

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

• obstacles to the repatriation of earnings and cash; and

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

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

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

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

As of December 31, 2021, we and our generation subsidiaries owned approximately 61.5% of the total electricity generation capacity in Korea (excluding plants generating electricity for private or emergency use). New entrants to the electricity business will erode our market share and create significant competition, which could have a material adverse impact on our financial condition and results of operations.

In particular, we compete with independent power producers with respect to electricity generation. The independent power producers accounted for 30.6% of total power generation in 2021 and 38.5% of total generation capacity as of December 31, 2021. As of December 31, 2021, there were 33 independent power producers in Korea, excluding renewable energy producers. Private enterprises became permitted to own and operate coal-fired power plants in Korea only after the Ministry of Trade, Industry and Energy approved plans for independent power producers to construct coal-fired power plants under the Sixth Basic Plan announced in February 2013. Under the Ninth Basic Plan announced in December 2020, six coal-fired power plants are planned to be constructed by independent power producers by 2024. Two of the six coal-fired power plants planned for construction were completed in 2021, one is expected to be completed in 2022, followed by two in 2023, and one in 2024. While it remains to be seen whether construction of these generation units will be completed as scheduled, if these units were to be completed as scheduled and/or independent power producers are permitted to build additional generation capacity (whether coal-fired or not), our market share in Korea may decrease, which may have a material adverse effect on our results of operations and financial condition.

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In addition, under the Community Energy System adopted by the Government in 2004, a minimal amount of electricity is supplied directly to consumers on a localized basis by independent power producers outside the cost-based pool system. Such system is used by our generation subsidiaries and most independent power producers to distribute electricity nationwide. The purpose of this system is to geographically decentralize electricity supply and thereby reduce transmission losses and improve the efficiency of energy use. These entities do not supply electricity on a national level but are licensed to supply electricity on a limited basis to their respective districts under the Community Energy System. As of March 31, 2022, the aggregate generation capacity of suppliers participating in the Community Energy System amounted to less than 1% of that of our generation subsidiaries in the aggregate.We currently do not expect the Community Energy System to be widely adopted, especially in light of the significant level of capital expenditure required for such direct supply. However, if the Community Energy System is widely adopted, it may erode our currently dominant market position in the generation and distribution of electricity in Korea and may have a material adverse effect on our business, results of operations and financial condition.

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

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

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

We and each of our generation subsidiaries have separate labor unions. As of December 31, 2021, approximately 73.7% of our and our generation subsidiaries’employees in the aggregate were members of these labor unions. Since a

six-week

labor strike in 2002 by union members of our generation subsidiaries in response to a proposed privatization of one of our generation subsidiaries, there has been no material labor dispute. However, we cannot assure you that there will not be a major labor strike or other material disruptions of operations by the labor unions of us and our generation subsidiaries if the Government resumes privatization or other restructuring initiatives or for other reasons, which may adversely affect our business and results of operations.

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

non-permanent

workers and increase the employment of permanent workers, in part by transitioning from

non-permanent

to permanent positions in the public sector. We have completed transitioning temporary workers to permanent workers at the end of 2019. Our generation subsidiaries have partially completed transitioning of

non-permanent

workers to permanent positions by hiring them for an indefinite period or establishing subsidiaries and hiring them through such subsidiaries. Our thermal generation subsidiaries plan to form a labor-management consultative body to transition the

in-house

subcontracted workers for the fuel and environmental facilities to permanent positions. Although the Government guidelines suggest that we transition the

non-permanent

workers to permanent positions within our existing budget for the related business, we cannot assure you that this will not result in increased costs for us or our generation subsidiaries and have an adverse impact on us or our generation subsidiaries’ financial condition and results of operations.

Additionally, domestic and international policy changes may affect our relationship with our employees, such as the Government’s ratification of seven of the eight essential conventions of International Labor

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Organization and potential reformation of the public employee wage structure. We cannot assure you that such policy changes will not negatively affect our relationship with our employees, which may in turn adversely affect our business and results of operations.

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

Through KHNP, we currently operate 24 nuclear-fuel generation units. Operation of nuclear power plants is subject to certain hazards, including environmental hazards such as leaks, ruptures and discharge of toxic and radioactive substances and materials. These hazards can cause personal injuries or loss of life, severe damage to or destruction of property and natural resources, pollution or other environmental damage,

clean-up

responsibilities, regulatory investigation and penalties and suspension of operations. Nuclear power has a stable and relatively inexpensive cost structure (which is least costly among the fuel types used by our generation subsidiaries) and is the second largest source of Korea’s electricity supply, accounting for 27.4% of electricity generated in Korea in 2021. Due to significantly lower unit fuel costs compared to those for thermal power plants, our nuclear power plants are generally operated at full capacity with only routine shutdowns for fuel replacement and maintenance, with limited exceptions.

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

In addition, heightened concerns regarding the safety of operating nuclear generation units could impede with our ability to operating them for an extended period of time or at all. For example, the nuclear power plant at Wolsong #1 unit began operations in 1982 and ended its operations in 2012 pursuant to its

30-year

operating license. In February 2015, the Nuclear Safety and Security Commission (“NSSC”) evaluated the safety of operating Wolsong #1 unit and approved its extended operation until November 2022. However, a civic group filed a lawsuit to annul such decision, and in February 2017, the Seoul Administrative Court ruled against the NSSC. The NSSC appealed this decision, and the civic group filed an injunction to suspend the operation of the Wolsong #1 unit. The civic group’s injunction was denied in July 2017. KHNP, which operated the unit pursuant to the NSSC’s initial decision, has joined this lawsuit.

There are ten other nuclear generation units whose life under their initial operating license will expire by 2030, and we may find it more difficult to have the life of other nuclear units extended as well. The failure to extend the life of these units would result in a loss of revenues from such units and the increase in our overall fuel costs (as nuclear fuel is the cheapest compared to coal, LNG or oil), which could adversely affect our results of operation and financial condition. In May 2019, a group of 729 Korean nationals brought a lawsuit against the NSSC to suspend the operation of Shin-Kori #4. In July 2019, we applied to participate in the lawsuit as a stakeholder. In February 2021, the Seoul Administrative Court dismissed the plaintiffs’ claim. The plaintiffs subsequently appealed in March 2021 and the case is currently being adjudicated in the Seoul High Court. We cannot assure you that there will not be new challenges to prohibit the construction of these new nuclear units in the future, whereby we may experience a loss of revenues and an increase in fuel costs (as nuclear fuel is the cheapest compared to coal, LNG or oil) as a result of such prohibition, which could adversely affect our results of operation and financial condition.

In order to prevent damages to the nuclear facilities such as a result of the tsunami and earthquake in March 2011 in Japan, KHNP prepared a comprehensive safety improvement plan including, but are not limited to,

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installing additional automatic shut-down systems for earthquakes, extending coastal barriers for seismic waves, procuring mobile power generators and storage batteries, installing passive hydrogen removers at nuclear facilities and improving the radiology emergency medical system. All

follow-up

measures will be finalized in December 2024 due to changes in the plan. KHNP also developed 10 additional supplementary safety measures by analysis of overseas plants and its current operations and implemented nine of such measures in 2017, with the one remaining measure to be implemented by 2023. However, there is no assurance that a similar or worse natural disaster may require the adoption and implementation of additional safety measures, which may be costly and have a material adverse impact on our financial condition and results of operations.

Subsequently, the Government unveiled its roadmap to shift in energy sources in October 2017 and announced the Eighth Basic Plan to implement such roadmap in December 2017. The Ninth Basic Plan announced in December 2020 also focuses on the same agenda as the Eighth Basic Plan. These Basic Plans focus on, among other things, decreasing the reliance on nuclear and coal-based supply sources. Accordingly, six new nuclear generation units in a planning stage (Shin-Hanul #3 and #4, Chunji #1 and #2 and Daejin #1 and #2) would not be constructed, while new nuclear plants under construction, including Shin-Kori #5, #6, Shin-Hanul #1 and #2, shall begin operation by 2024 upon completion of their construction. Shin-Hanul #1 and #2 will finish construction in 2022 and 2023 respectively, while actual construction of Shin-Kori #5 and #6 would be completed in 2024 and 2025 respectively to prevent undue speed in construction in light of the recent enactment of the Serious Accident Punishment Act. Future extensions of life of decrepit nuclear generation units would not be granted and the proportion of renewable energy sources would be increased. However, the current scheme for the construction and operation of nuclear generation units may be altered in the future. For example, in April 2022, KHNP submitted a safety evaluation report to the NSSC for the approval for an extension of the life of Kori #2, which is scheduled to shut down in April 2023. As future procedures will be carried out in accordance with relevant laws and regulations, it is not known at this time whether such extension of life will be granted or not. In addition, we cannot assure you that the current or future policies will not have an adverse impact on our or our generation subsidiaries’ financial condition and results of operations.

On June 15, 2018, the board of directors of KHNP decided to (i) retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the economic viability and regional sentiment of its continuing operation and (ii) discontinue the construction of Chunji #1 and #2 as well as Daejin #1 and #2 units. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1 unit. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Wolsong #1 unit accrued to Won 572,216 million and reversal of impairment loss was Won 16,693 million. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Chunji #1 and #2 as well as Daejin #1 and #2 units amounted to Won 38,886 million. Although the board of directors did not make any decisions regarding Shin-Hanul #3 and #4 units, which are new nuclear plants under construction, we cannot assure you that the construction of these units will not be discontinued. From the beginning of 2018 to the end of 2019, impairment loss in connection with the property, plant and equipment of Shin-Hanul #3 and #4 units accrued to Won 134,736 million. The Government revised the Enforcement Decree of the Electricity Business Act in June 2021 and enacted a notice that will allow KHNP to be compensated for reasonable costs incurred in relation to the

phase-out

of nuclear power plants in accordance with the Government’s energy transition policy. However, even if KHNP may apply for such compensation, there is no guarantee that it will cover the entire cost as the scope of such compensation has not been specifically determined yet. If KHNP cannot recoup its total cost, it may have an adverse impact on our financial condition.

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

From time to time, we encounter social and political opposition against construction and operation of our generation facilities (particularly nuclear units) and, to a lesser extent, our transmission and distribution facilities. For example, we recently faced intense opposition from local residents and civic groups to the construction of transmission lines in the Milyang area, which we resolved through various compensatory and other support

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programs. Such opposition delayed the schedule for completion of this project. Although we and the Government have undertaken various community programs to address concerns of residents in areas near our facilities, civic and community opposition could result in delayed construction or relocation of our planned facilities, which could have a material adverse impact on our business and results of operations.

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

In the course of our operations, we must manage a number of risks, such as regulatory risks, market risks and operational risks. Although we devote significant resources to developing and improving our risk management policies and procedures and expect to continue to do so in the future, our risk management practices may not be fully effective at all times in eliminating or mitigating risk exposures in all market environments or against all types of risk, including risks that are unidentified or unanticipated, such as natural disasters or employee misconduct. For example, in November 2019, prosecutors indicted six of KHNP’s employees for, among others, failing to immediately shut down Hanbit #1 reactor when its thermal output exceeded the threshold specified by the nuclear safety technical operations manual and filing false reports to the NSSC. KHNP is also indicted for secondary liability from its employees’ alleged wrongdoings. The case stemmed from the NSSC’s investigations into the manual shutdown of Hanbit #1 reactor during a diagnostic test in May 2019. In February 2021, the Gwangju District Court acquitted the employees of their charges of violating the safety technical operations manual and driving a vehicle without a license during the incident. However, three employees were fined for filing false reports to NSSC and KHNP was also fined in accordance with the disciplinary regulations. The prosecutors appealed the District Court’s decision and the case is currently being adjudicated in the Gwangju District Court. We cannot assure you that the outcomes of the ongoing case will not have any material adverse effect on us, our reputation and our operating results. To prevent similar incidents from occurring again, KHNP is working to improve its risk monitoring and management system. For additional information, see Item 4.B. “Business Overview—Nuclear Safety.”

In April 2019, a forest fire broke out in Goseong in Gangwon Province, about 210 kilometers from Seoul, causing damages to nearby towns, covering approximately 1,260 hectares. The National Forensic Service has investigated the cause of the fire and has determined that the fire seems to have started by an electrical arc from our utility pole’s wire, which broke as a result of a strong wind. Based on this finding, the Police Department of Goseong conducted

follow-up

investigations and issued a recommendation to prosecute seven employees of KEPCO in connection with the fire. The prosecutors have taken over the case and a trial is underway, the results of which may have a material adverse effect on us, our reputation and our operating results. In the meantime, we have settled with and completed compensation payment of Won 62.7 billion to victims as of February 2022. We expect settlements with the remaining victims would cost us approximately Won 6.1 billion. In addition, we are compensating the fire victims by providing a number of services, such as free supply of electricity, and implementing measures to prevent future fires that may result from an electrical arc, including a special maintenance program during the dry season between March and May. Also, we implemented operational measures such as tailored operation of protective devices and suspension of operation during periods of low loads and plan to change power facility designs to reflect regional and seasonal characteristics, all of which are intended to help prevent similar incidents from happening in the future. Despite our efforts, however, such incidents may occur again, and we cannot assure you that they will not have any material adverse effect on us, our reputation and our operating results.

Furthermore, our operational activities like the generation of electricity involve inherent operating risks that may result in accidents involving serious injury or loss of life, environmental damage or property damage. In December 2018, an employee of KOWEPO’s subcontractor died in an accident at a Taean thermal power unit, leading to a public scrutiny and review by the Ministry of Employment and Labor. As a result, KOWEPO was required to halt the operations of three Taean thermal power units (Taean #9 and #10 units as well as Taean Integrated Gasification Combined Cycle (IGCC)) between December 2018 and May 2019. Even though we plan to prioritize

on-site

safety management by engaging in communications with different stakeholders and investing more in safe environment, there is no guarantee that there will not be future accidents due to our inherent operating risks.

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

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

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

We manage interest rate exposure for our debt instruments by limiting our variable rate debt exposure as a percentage of our total debt and closely monitoring the movements in market interest rates. We also actively manage currency exchange rate exposure for our foreign currency-denominated liabilities by measuring the potential loss therefrom using risk analysis software and entering into derivative contracts to hedge such exposure when the possible loss reaches a certain risk limit. To the extent we have unhedged positions or our hedging and other risk management procedures do not work as planned, our results of operations and financial condition may be adversely affected.

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

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

In addition, our

non-nuclear

generation subsidiaries carry insurance covering certain risks, including fire, in respect of their key assets, including buildings and equipment located at their respective power plants,

construction-in-progress

and imported fuel and procurement in transit. Such insurance and indemnity, however, cover only a portion of the assets that these generation subsidiaries own and operate and do not cover all types or

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amounts of loss that could arise in connection with the ownership and operation of these power plants. In addition, our generation subsidiaries are not permitted to self-insure, and accordingly have not self-insured, against risks of their uninsured assets or business. Accordingly, material adverse financial consequences could result from a serious accident to the extent it is uninsured.

In addition, because neither we nor our

non-nuclear

generation subsidiaries carry any insurance against terrorist attacks, an act of terrorism would result in significant financial losses. See Item 4.B. “Business Overview—Insurance.”

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

Under applicable laws, the Government is required to directly or indirectly own at least 51% of our issued capital stock. As of December 31, 2021, the Government, directly and through Korea Development Bank (a statutory banking institution wholly owned by the Government), owned 51.1% of our issued capital stock. Accordingly, without changes in the existing Korean law, it may be difficult or impossible for us to undertake, without the participation of the Government, any equity financing in the future.

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

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

bi-monthly,

quarterly or semi-annual basis, although such interpretation had been a subject of controversy and had been overruled in a few court cases.

In December 2013, the Supreme Court of Korea ruled that regular bonuses fall under the category of ordinary wages on the condition that those bonuses are paid regularly and uniformly, and that any agreement which excludes such regular bonuses from ordinary wage is invalid. One of the key rulings provides that bonuses that are given to employees (i) on a regular and continuous basis and (ii) calculated according to the actual number of days worked (iii) that are not incentive-based must be included in the calculation of “ordinary wages.” The Supreme Court further ruled that in spite of invalidity of such agreements, employees shall not retroactively claim additional wages incurred due to such court decision, in case that such claims bring to employees unexpected benefits which substantially exceeds the wage level agreed by employers and employees and cause an unpredicted increase in expenditures for their company, which would lead the company to material managerial difficulty or would be a threat to the existence of the company. In that case, the claim is not acceptable since it is unjust and is in breach of the principle of good faith. However, in December 2021, the Supreme Court ruled that the claim of workers for additional wages should not be easily rejected for the reason of good faith if there is a possibility of overcoming business difficulties in the future.

As a result of such ruling by the Supreme Court of Korea, we and our subsidiaries became subject to a number of lawsuits filed by various industry-wide and company-specific labor unions based on claims that ordinary wage had been paid without including certain items that should have been included as ordinary wage. In July 2016, the court ruled against us, and in accordance with the court’s ruling, in August 2016 we paid Won 55.1 billion to the employees for three years of back pay plus interest. As of December 31, 2021, 12 lawsuits were pending against our subsidiaries for an aggregate claim amount of Won 38 billion, for which our subsidiaries set aside an aggregate amount of Won 3.2 billion to cover any potential future payments of additional ordinary wage in relation to the related lawsuits. We cannot presently assure you that the court will not rule against our subsidiaries in these lawsuits, or that the foregoing reserve amount will be sufficient to cover the amounts payable under the court rulings.

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Additionally, since the issue of determining which labor costs should be additionally included as part of ordinary wages has not been fully resolved by the courts reviewing the lawsuits to which our subsidiaries are a party and other ordinary wage lawsuits filed against other companies, we cannot presently assure you that there will not be additional lawsuits in relation to ordinary wages and that we or our subsidiaries may not become liable for greater amount of damages as a result of these lawsuits. Furthermore, court decisions or labor legislations expanding the definition of ordinary wages may prospectively increase the labor costs of us and our subsidiaries. As a result, there can be no assurance that the above-described lawsuits and circumstances will not have a material adverse effect on our results of operations. See Item 8.A. “Consolidated Statements and Other Financial Information—Legal Proceedings.”

We are subject to cyber security risk.

Recently, our activities have been subject to an increasing risk of cyber-attacks and information leakages, the nature of which is continually evolving. For example, in December 2014, KHNP became subject to a cyber terror incident. Hackers hacked into the computer network of former KHNP employees and threatened to shut down certain of KHNP’s nuclear plants, even though such incident did not jeopardize our nuclear operation in any material respect and none of the stolen information was material to our nuclear operation or the national nuclear policy. Also, even though past cyber-attacks were mostly unspecified attacks, recent attacks are more targeted and intelligent attacks, such as a ransomware that encrypts a victim’s files, whereupon an attacker demands a ransom from the victim to restore access to the victim’s data upon payment. In particular,

non-face-to-face

business environment due to

COVID-19

has led to more sophisticated phishing

e-mail

attacks that impersonate service providers and acquaintances. In light of the new developments, there is no assurance that a similar or more serious hacking or other forms of cyber terror will not happen with respect to us and our generation subsidiaries, which could have a material adverse impact on our business, financial condition and results of operations. See Item 4.B. “Business Overview—Cyber Security.”

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

In 2021, we purchased 11.5% of our bituminous coal requirements from Russia. Additionally, we also purchase uranium and conversion and enrichment services of uranium concentrates from Russian suppliers and also purchase Russian origin LNG. In 2021, the total value of all goods and services purchased from Russia was approximately US$0.9 billion.

OFAC sanctions concerning Russia,

inter alia

, block the property of certain designated individuals and entities, target certain sectors of the Russian economy, including the energy sector, and prohibit certain transactions by U.S. persons with certain targeted persons in targeted sectors of the Russian economy, and restrict investment in and trade with the Crimea region of Ukraine.

Non-U.S.

persons that engage in certain prohibited transactions concerning Russia or with certain sanctioned Russian persons or entities may be subject to sanctions if any such dealings or transactions involve a nexus to U.S. jurisdiction. In addition, in August 2017, the United States Congress passed CAATSA, which introduced a host of new U.S. secondary sanctions concerning Russia including,

inter alia

, for certain dealings with the Russian energy sector, support for Russia’s energy export pipelines and engaging in a “significant transaction” with a person that is part of, or operates for or on behalf of, Russia’s defense or intelligence sectors. Additionally, a

non-U.S.

person that knowingly facilitates a “significant transaction” or transactions for or on behalf of any person subject to sanctions imposed by the U.S. with respect to sanctioned Russian persons or entities, or their immediate family members, may also be subject to secondary sanctions.

In February, March, and April 2022, the United States, the European Union, the United Kingdom, and other countries began to impose a host of new economic sanctions on Russia and certain related persons in response to Russia’s military activities in Ukraine, including comprehensive, territory-wide sanctions on the self-described

24

Donetsk People’s Republic (“DNR”) and Luhansk People’s Republic (“LNR”), as well as export controls and bans on certain items and technologies, blocking sanctions on certain major Russian financial institutions and their affiliates, Russian oligarchs and persons active in the energy, banking and finance sectors (along with their family members) and Russian government officials, and debt and equity restrictions on certain Russian state-owned enterprises. The U.S. government also imposed a ban on importation into the U.S. of Russian crude oil, certain petroleum products, LNG, and coal, and also prohibited new investments in Russia by U.S. persons, wherever located. Additionally, both the European Union and Switzerland, among other jurisdictions, have imposed a ban on the importation of coal and certain other solid fossil fuels. Other countries, including Japan and the United Kingdom have announced plans to phase out Russian coal imports in the future. Further sanctions by the U.S. and other jurisdictions including the European Union, Switzerland, and the United Kingdom may also be forthcoming.

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

While we do not believe that our dealings related to Russia violate applicable economic sanctions, our ongoing dealings related to Russia expose us to risk. If the parties we are dealing or planning to deal with (directly or indirectly) become subject to sanctions, including suppliers of fuel sources, we may need to terminate our relationships with them and substitute them with alternative parties in order to not be in violation of any sanctions. There is no guarantee that we will be able to procure contractual terms with the alternative parties that are better or at least similar to our current terms. In addition, the current and future sanctions against Russia-related business dealings may cause the global prices of fuels including coal, uranium, and LNG to rise as the overall fuel supply will be curbed. Also, we may not be able to pursue other business with Russian counterparties. Our failure to comply with applicable economic sanctions or export controls affecting Russia or Russian companies may result in administrative, civil, or criminal penalties. Such events may have a material adverse effect on our reputation, business, results of operations, financial condition and cash flows.

The extent to which the recent coronavirus

(COVID-19)

outbreak impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.

The rapid and diffuse spread of the recent coronavirus

(COVID-19)

and global health concerns relating to this outbreak have had severe negative impact on, among other things, financial markets, liquidity, economic conditions and trade and could continue to do so or could worsen for an unknown period of time, which could in turn have a material adverse impact on our business, results of operations and financial condition. Although a number of governments and organizations project GDP growth forecasts for 2022, as they did in 2021, to reflect the economic recovery after the

COVID-19

vaccines are being rolled out both domestically and internationally, it is possible that the prolonged

COVID-19

will cause a recession depending on the timeliness and effectiveness of actions taken or not taken to contain and mitigate the effects of

COVID-19

both in Korea and internationally by governments, central banks, healthcare providers, health system participants, other businesses and individuals. The effects on the economy are still highly uncertain and cannot be predicted. Risks associated with a prolonged outbreak of

COVID-19

include:

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

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

25

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

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

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

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

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

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

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

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

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

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

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

Risks Relating to Korea and the Global Economy

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

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

The Korean economy is closely integrated with, and is significantly affected by, developments in the global economy and financial markets. In recent years, adverse conditions and volatility in the worldwide financial markets, fluctuations in oil and commodity prices and the general weakness of the global economy have contributed to the uncertainty of global economic prospects in general and have adversely affected, and may continue to adversely affect, the Korean economy, which in turn could adversely affect our business, financial condition and results of operations. As the Korean economy is highly dependent on the health and direction of the global economy, the prices of our securities may be adversely affected by investors’ reactions to developments in other countries. In addition, due to the ongoing volatility in the global financial markets, the value of the Won relative to the U.S. dollar has also fluctuated significantly in recent years, which in turn also may adversely affect our financial condition and results of operations.

26

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

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

• the global uncertainty and economic recession caused by the novel coronavirus (COVID-19) and its likelihood to further spread in the general population and stifle Korea’s economic activities and also those of the other countries that have economic ties with Korea;

• increases in inflation levels, volatility in foreign currency reserve levels, commodity prices (including oil prices), exchange rates (particularly against the U.S. dollar), interest rates, stock market prices and inflows and outflows of foreign capital, either directly, into the stock markets, through derivatives or otherwise, including as a result of increased uncertainty in the wake of the United Kingdom’s formal exit from the European Union on January 31, 2020, commonly known as “Brexit”;

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

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

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

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

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

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

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

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

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

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

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

27

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

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

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

Relations between Korea and North Korea have been tense throughout Korea’s modern history. The level of tension between the two Koreas has fluctuated and may increase abruptly as a result of current and future events. In particular, there continues to be uncertainty regarding the long-term stability of North Korea’s political leadership since the succession of Kim

Jong-un

to power following the death of his father in December 2011, which has raised concerns with respect to the political and economic future of the region. In February 2017, Kim

Jong-un’s

half-brother, Kim

Jong-nam,

was reported to have been assassinated in an international airport in Malaysia.

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

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

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

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

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

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

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

• On February 10, 2016, in retaliation of North Korea’s recent launch of a long-range rocket, South Korea announced that it would halt its operations of the Gaeseong Industrial Complex to impede North

28

Korea’s utilization of funds from the industrial complex to finance its nuclear and missile programs. In response, North Korea announced on February 11, 2016 that it would expel all South Korean employees from the industrial complex and freeze all South Korean assets there.

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

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

• In August 2015, two Korean soldiers were injured in a landmine explosion near the South Korean demilitarized zone. Claiming the landmines were set by North Koreans, the South Korean army re-initiated its propaganda program toward North Korea utilizing loudspeakers near the demilitarized zone. In retaliation, the North Korean army fired artillery rounds on the loudspeakers, resulting in the highest level of military readiness for both Koreas. High-ranking officials from North and South Korea subsequently met for discussions and entered into an agreement on August 25, 2015 intending to deflate military tensions.

• From time to time, North Korea has fired short- to medium-range missiles from the coast of the Korean peninsula into the sea. In March 2015, North Korea fired seven surface-to-air missiles into waters off its east coast in apparent protest of annual joint military exercises being held by Korea and the United States.

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

North Korea’s economy also faces severe challenges, including severe inflation and food shortages, which may further aggravate social and political tensions within North Korea. In addition, reunification of Korea and North Korea could occur in the future, which would entail significant economic commitment and expenditure by Korea that may outweigh any resulting economic benefits of reunification. On April 27, 2018, May 26, 2018 and September 18, 2018, President Moon

Jae-in

met Kim

Jong-un

in a summit to discuss, among other matters, denuclearization of the Korean Peninsula. On June 12, 2018, President Donald Trump and Kim

Jong-un

in turn had an official summit in Singapore and on February 27, 2019, the parties held the second official summit in Hanoi, Vietnam. However, in March 2019, announcement was made that no agreement was reached in the second bilateral summit meeting between the United States and North Korea. On June 30 2019, for the first time, President Moon

Jae-in,

President Donald Trump and Kim

Jong-un

met in Panmunjom, a symbolic place of

29

division in Korea, and the parties agreed to resume the United States and North Korea working-level negotiations, and on October 4, 2019, such working-level negotiations took place in Stockholm, Sweden. However, the negotiations did not result in any definitive agreement or any

follow-up

plans. On June 16, 2020, North Korea destroyed the joint liaison office in Gaeseong, citing anti-regime propaganda allegedly disseminated using balloons across the border by Korean activists, and cut all other communication channels with Korea. On July 27, 2021, both South and North Korea announced that a part of the communication channels have been reconnected. However, there has been no further discussion of resuming any operations in the Gaeseong Industrial Complex or any transactions that we are involved in.

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

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

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

non-public

companies in other countries. Such differences in corporate governance standards and less public information could result in less than satisfactory corporate governance practices or disclosure to investors in certain countries.

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

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

Risks Relating to Our American Depositary Shares (ADSs)

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

Under the deposit agreement, holders of shares of our common stock may deposit those shares with the depositary bank’s custodian in Korea and obtain American depositary shares, and holders of American depositary shares may surrender American depositary shares to the depositary bank and receive shares of our common

30

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

Ownership of our shares is restricted under Korean law.

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

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

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

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

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

• shares from the exercise of shareholders’ rights; or

• shares by gift, inheritance or bequest.

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

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

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

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

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

31

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

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

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

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

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

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

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

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

• sudden fluctuations in interest rates or exchange rates;

• extreme difficulty in stabilizing the balance of payments; and

• a substantial disturbance in the Korean financial and capital markets.

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

ITEM 4. INFORMATION ON THE COMPANY

Item 4.A. History and Development of the Company

General Information

Our legal and corporate name is Korea Electric Power Corporation. We were established by the Government on December 31, 1981 as a statutory juridical corporation in Korea under the Korea Electric Power Corporation Act (the “KEPCO Act”) as the successor to Korea Electric Company. Our registered office is located at

55 Jeollyeok-ro,

Naju-si,

Jeollanam-do,

58322, Korea, and our telephone number is

82-61-345-4213.

Our website address is

www.kepco.co.kr

.

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

The Korean electric utility industry traces its origin to the establishment of the first electric utility company in Korea in 1898. On July 1, 1961, the industry was reorganized by the merger of Korea Electric Power Company, Seoul Electric Company and South Korea Electric Company, which resulted in the formation of Korea Electric Company. From 1976 to 1981, the Government acquired the private minority shareholdings in Korea Electric Company. After the Government acquired all the remaining shares of Korea Electric Company, Korea Electric Company was dissolved, and we were incorporated in 1981 and assumed the assets and liabilities of Korea Electric Company. We ceased to be wholly owned by the Government in 1989 when the Government sold 21% of our common stock. As of December 31, 2021, the Government maintained 51.1% ownership in aggregate of our common shares by direct holdings by the Government and indirect holdings through Korea Development Bank, a statutory banking institution wholly owned by the Government.

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

We operate under the general supervision of the Ministry of Trade, Industry and Energy. The Ministry of Trade, Industry and Energy, in consultation with the Ministry of Economy and Finance, is responsible for approving, subject to review by the Korea Electricity Commission, the electricity rates we charge our customers. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.” We furnish reports to officials of the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance and other Government agencies and regularly consult with such officials on matters relating to our business and affairs. See Item 4.B. “Business Overview—Regulation.” Our

non-standing

directors, who comprise a majority of our board of directors, must be appointed by the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions (which is established by law and chaired by the minister of the Ministry of Economy and Finance and whose members consist of Government officials and others appointed by the President of the Republic based on recommendation by the minister of the Ministry of Economy and Finance) from a pool of candidates recommended by the director nomination committee. Our president and standing directors who concurrently serve as members of our audit committee must be appointed by the President of the Republic upon the motion of the minister of the Ministry of Trade, Industry and Energy (in the case of our president) and the minister of the Ministry of Economy and Finance (in the case of our standing director who

33

concurrently serves as a member of the audit committee) and following the nomination by our director nomination committee, the review and resolution of the Committee for Management of Public Institutions and an approval at the general meeting of shareholders. See Item 6.A. “Directors and Senior Management—Board of Directors” and Item 16.G. “Corporate Governance—The Act on the Management of Public Institutions.”

Item 4.B. Business Overview

Introduction

We are an integrated electric utility company engaged in the transmission and distribution of substantially all of the electricity in Korea. Through our six wholly-owned generation subsidiaries, we also generate the substantial majority of electricity produced in Korea. As of December 31, 2021, we and our generation subsidiaries owned approximately 61.5% of the total electricity generation capacity in Korea (excluding plants generating electricity primarily for private or emergency use). In 2021, we sold to our customers 533,431 gigawatt-hours of electricity. We purchase electricity principally from our generation subsidiaries and, to a lesser extent, from independent power producers. Of the 535,985 gigawatt-hours of electricity we purchased in 2021, 28.9% was generated by KHNP, our wholly-owned nuclear and hydroelectric power generation subsidiary, 41.9% was generated by our wholly-owned five

non-nuclear

generation subsidiaries and 29.2% was generated by independent power producers that trade electricity to us through the cost-based pool system of power trading (excluding independent power producers that supply electricity under power purchase agreements with us). Our five

non-nuclear

generation subsidiaries are KOSEP, KOMIPO, KOWEPO, KOSPO and EWP, each of which is wholly owned by us and is incorporated in Korea. We derive substantially all of our revenues and profit from Korea, and substantially all of our assets are located in Korea.

In 2021, we had sales of Won 59,914 billion and net loss of Won 5,229 billion, compared to sales of Won 57,926 billion and net profit of Won 2,092 billion in 2020.

Our revenues are closely tied to demand for electricity in Korea. Demand for electricity in Korea increased at a compounded average growth rate of 1.0% per annum from 2017 to 2021, compared to the real gross domestic product, or GDP, which increased at a compounded average growth rate of 2.1% during the same period, according to the Bank of Korea. During 2021, the GDP growth rate was 4.0%, while the demand for electricity in Korea during the same year increased by 4.7%.

Strategy

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

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

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

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

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

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

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

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

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

Government Ownership and Our Interactions with the Government

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

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

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

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

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Restructuring of the Electric Power Industry in Korea

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

The following provides further details relating to the Restructuring Plan.

Phase I

During Phase I, which served as a preparatory stage for Phase II and lasted from the announcement of the Restructuring Plan in January 1999 until April 2001, we undertook steps to split our generation business units off into one wholly-owned nuclear generation subsidiary (namely, KHNP) and five wholly-owned

non-nuclear

generation subsidiaries (namely, KOSEP, KOMIPO, KOWEPO, KOSPO and EWP), each with its own management structure, assets and liabilities. These steps were completed upon approval at our shareholders’ meeting in April 2001.

The Government’s principal objectives in the

split-off

of the generation units into separate subsidiaries were to: (i) introduce competition and thereby increase efficiency in the electricity generation industry in Korea, and (ii) ensure a stable supply of electricity in Korea.

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

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

Phase II

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

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

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

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Privatization of Generation Subsidiaries

In April 2002, the Ministry of Trade, Industry and Energy released the basic privatization plan for five of our generation subsidiaries other than KHNP. Pursuant to this plan, we commenced the process of selling our equity interest in KOSEP in 2002. According to the original plan, this process was, in principle, to take the form of a sale of management control, potentially supplemented by an initial public offering as a way of broadening the investor base. In November 2003, KOSEP submitted its application to the Korea Exchange for a preliminary screening review, which was approved in December 2003. However, in June 2004, KOSEP made a request to the Korea Exchange to delay its stock listing due to unfavorable stock market conditions at that time.

In accordance with the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) announced by the Government in June 2016, we considered a sale in the public market of a minority of our shares in our five

non-nuclear

generation subsidiaries, KEPCO KDN and KHNP gradually. However, the planned sales have been put on hold, primarily due to prevailing market conditions. In any event, we plan to maintain a controlling stake in each of these subsidiaries.

Suspension of the Plan to Form and Privatize Distribution Subsidiaries

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

Initiatives to Improve the Structure of Electricity Generation

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

In January 2011, the Ministry of Economy and Finance created a “joint cooperation unit” consisting of officers and employees selected from the five thermal power generation subsidiaries in order to reduce inefficiencies in areas such as fuel transportation, inventories, materials and equipment and construction, etc. and

37

allow the thermal power generation subsidiaries to continue utilizing the benefits of economy of scale after split off of our generation business units into separate subsidiaries. The purpose of the joint cooperation unit was to give greater autonomy to the generation subsidiaries with regard to power plant construction and management and fuel procurements, and thereby enhance efficiency in operating power plants. The main functions of the joint cooperation unit are as follows: (i) maintain inventories of bituminous coal through volume exchanges and joint purchases, (ii) reduce shipping and demurrage expenses through joint operation and distribution of dedicated vessels, (iii) reduce costs by sharing information on generation material inventories and (iv) sharing human resources among the five thermal power generation subsidiaries for construction projects, among other things.

Furthermore, in January 2011 the six generation subsidiaries were officially designated as “market-oriented public enterprises,” whereupon the President of Korea appoints the president and the statutory auditor of each such subsidiary; the selection of

non-standing

directors of each such subsidiary is subject to approval by the minister of the Ministry of Economy and Finance; the president of each such subsidiary is required to enter into a management contract directly with the minister of the Ministry of Trade, Industry and Energy; and the Public Enterprise Management Evaluation Team which is established by the Committee for Management of Public Institutions conducts performance evaluation of such subsidiaries. Previously, our president appointed the president and the statutory auditor of each such subsidiary; the selection of

non-standing

directors of each such subsidiary was subject to approval by our president; the president of each such subsidiary entered into a management contract with our president; and our evaluation committee conducted performance evaluation of such subsidiaries. For further details of the impact of the designation of our generation subsidiaries as “market-oriented public enterprises,” see Item 16.G. “Corporate Governance—The Act on the Management of Public Institutions.”

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

In June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) for the purpose of streamlining the operations of Government-affiliated energy companies by discouraging them from engaging in overlapping or similar businesses with each other, reducing

non-core

assets and activities and improving management and operational efficiency. The initiatives contemplated in this proposal that would affect us and our generation subsidiaries include the following: (i) the generation companies should take on greater responsibilities in overseas resource exploration and production projects as these involve procurement of fuels necessary for electricity generation while fostering cooperation among each other through closer coordination, (ii) KHNP should take a greater role in export of nuclear technology, and (iii) the current system of retail sale of electricity to

end-users

should be liberalized to encourage more competition. In accordance therewith, we transferred a substantial portion of our assets and liabilities in our overseas resource business to our generation subsidiaries as of December 31, 2016. In addition, this Proposal contemplated selling a minority stake in our generation subsidiaries and KEPCO KDN, butthe planned sales have been put on hold, as discussed above in “ –Privatization of Generation Subsidiaries.”

Proposed Amendment for Direct Participation in Renewable Energy

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

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Purchase of Electricity

Cost-based Pool System

Since April 2001, the purchase and sale of electricity in Korea is required to be made through the Korea Power Exchange, which is a statutory

not-for-profit

organization established under the Electric Utility Act with responsibilities for setting the price of electricity, handling the trading and collecting relevant data for the electricity market in Korea. The suppliers of electricity in Korea consist of our six generation subsidiaries, which were

split-off

from us in April 2001, and independent power producers, which numbered 33 (excluding renewable energy producers) as of December 31, 2021. We distribute electricity purchased through the Korea Power Exchange to end users.

Our Relationship with the Korea Power Exchange

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

Notwithstanding the foregoing relationships, however, we do not have control over the Korea Power Exchange or its policies since, among others, (i) the Korea Power Exchange, its personnel, policies, operations and finances are closely supervised and controlled by the Government, namely through the Ministry of Trade, Industry and Energy, and are subject to a host of laws and regulations, including, among others, the Electric Utility Act and the Act on the Management of Public Institutions, as well as the Articles of Incorporation of the Korea Power Exchange, (ii) we are entitled to elect no more than

one-third

of the Korea Power Exchange directors and our representatives represent only a minority of its board of directors and committees (with the other members being comprised of representatives of the Ministry of Trade, Industry and Energy, employees of the Korea Power Exchange, businesspersons and/or scholars), and (iii) the role of our representatives in the policy making process for the Korea Power Exchange is primarily advisory based on their technical expertise derived from their employment at us or our generation subsidiaries. Consistent with this view, the Finance Supervisory Service issued a ruling in 2005 that stated that we are not deemed to have significant influence or control over the decision-making process of the Korea Power Exchange relating to its business or financial affairs.

Pricing Factors

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

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

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Marginal Price

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

The system marginal price represents, in effect, the marginal price of electricity at a given hour at which the projected demand for electricity and the projected supply of electricity for such hour intersect, as determined by the merit order system, which is a system used by the Korea Power Exchange to allocate which generation units will supply electricity for which hour and at what price. To elaborate, the projected demand for electricity for a given hour is determined by the Korea Power Exchange based on a forecast made one day prior to trading, and such forecast takes into account, among others, historical statistics relating to demand for electricity nationwide by day and by hour, season and

on-peak-hour

versus

off-peak

hour demand analysis. The projected supply of electricity at a given hour is determined as the aggregate of the available capacity of all generation units that have submitted bids to supply electricity for such hour. These bids are submitted to the Korea Power Exchange one day prior to trading.

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

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

end-users.

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

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

An adjusted coefficient applies in principle to all generation units operated by our generation subsidiaries and the coal-fired generation units operated by independent power producers. The adjusted coefficient applicable to the generation units operated by our generation subsidiaries is determined based on considerations of, among others, electricity tariff rates and the relative fair returns on investment in respect of us compared to our generation subsidiaries. The purpose of the adjusted coefficient here is to prevent electricity trading from resulting in undue imbalances as to the relative financial results among generation subsidiaries as well as between us (as the purchaser of electricity) and our generation subsidiaries (as sellers of electricity). Such imbalances may arise from excessive profit taking by base load generators (on account of their inherently cheaper fuel cost structure compared to

non-base

load generators) as well as from fluctuations in fuel prices (it being the case that during times of rapid and substantial rises in fuel costs which are not offset by corresponding rises in electricity tariff rates charged by us to

end-users,

on a

non-consolidated

basis our profitability will decline compared to that our generation subsidiaries since our generation subsidiaries are entitled to sell

40

electricity to us at cost plus a guaranteed margin). In comparison, the adjusted coefficient applicable to the coal-fired generation units operated by independent power producers is determined to enable such independent power producers to recover the total costs of building and operating such units.

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

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

Capacity Price

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

The capacity price is determined by the Cost Evaluation Committee as a function of the following factors: (i) reference capacity price, (ii) reserve capacity factor,

(iii) time-of-the-day

capacity coefficient and (iv) since October 2016, fuel switching factor. The

time-of-the-day

capacity coefficient are determined annually before the end of December for the subsequent twelve-month period. The reference capacity price, reserve capacity factor and the fuel switching factor are determined annually before the end of June for the subsequent twelve-month period.

The reference capacity price refers to the Won amount per kilowatt-hour payable annually for annualized available capacity indicated in the bids submitted the day before trading (provided that such capacity is actually available on the relevant day of trading), and is determined based on the construction costs and maintenance costs of a standard generation unit and related transmission access facilities, and a base rate for loading electricity. Prior to October 2016, the same reference capacity price applied uniformly to all generation units. Since October 2016, the reference capacity price applies differentially to each generation unit depending on the start year of its commercial operation. Accordingly, the reference capacity price currently ranges from Won 9.61 to 10.65 per kilowatt hour.

The reserve capacity factor relates to the requirement to maintain a standard capacity reserve margin in the range of 13% in order to prevent excessive capacity

build-up

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

The

time-of-the-day

capacity coefficient allows hourly and seasonal adjustments in order to incentivize our generation subsidiaries to operate their generation facilities at full capacity during periods of highest demand. For example, the capacity price paid differs depending on whether the relevant hour is an

“on-peak”

hour, a

“mid-peak”

hour or an

“off-peak”

hour (the capacity price being highest for the

on-peak

hours and lowest for the

off-peak

hours) and the capacity price paid is highest during the months of January, July and August when electricity usage is highest due to weather conditions.

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The fuel switching factor, which was introduced in October 2016 to promote environmental sensitivities to climate change, seeks to encourage reduced greenhouse gas emission by penalizing generation units (mostly coal-fired units) for excessive greenhouse gas emission.

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

Vesting Contract System

In May 2014, the Electric Utility Act was amended to introduce a “vesting contract” system in determining the price and quantity of electricity to be sold and purchased between the purchaser of electricity (namely, us) and the sellers of electricity (namely, our generation subsidiaries and independent power producers). Under the vesting contract system, electricity generators using base load fuels (such as nuclear, coal, hydro and

by-product

gas) at a particular generation unit were to be required to enter into a contract with the purchaser of electricity (namely, us), which specifies, among other things, the quantity of electricity to be generated and sold at a particular generation unit and the price at which such electricity is sold, subject to certain adjustments.

The vesting contract system was introduced principally to prevent excessive profit-taking by

low-cost

producers of electricity using base load fuels (such as nuclear, coal, hydro and

by-product

gas) by replacing the adjusted coefficient as the basis for determining the guaranteed return to generation companies, as well as to enhance the stability of electricity supply by requiring long-term contractual arrangements for the purchase and sale of electricity and promote cost savings, productivity enhancements and operational efficiency by providing incentives and penalties depending on the degree to which the generation companies could supply electricity at costs below the contracted electricity prices.

In order to minimize undue shock to the electricity trading market in Korea, the vesting contract system was to be implemented in phases starting with

by-product

gas-based

electricity in 2015, which accounted for 1.8% of electricity purchased by us during such year. The rollout of the vesting contract system was further studied by a task force consisting of representatives from the Government, the Korea Power Exchange and generation companies.

Following such study, the Government announced in June 2016 that, due to changes in the electricity business environment (including an increase in generation capacity relative to peak usage, reduced fuel costs following a decline in oil prices and greater environmental concerns related to coal-fired electricity generation), it will indefinitely suspend any further rollout of the vesting contract system beyond

by-product

gas-based

electricity, and revert to the adjusted coefficient-based electricity pricing adjustment mechanism. As of the end of 2021, there are no active contracts remaining under the vesting contract system.

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Power Trading Results

The results of power trading, as effected through the Korea Power Exchange, for us and our generation subsidiaries and independent power producers in 2021 are as follows:

	Items	Volume (Gigawatt hours)		Percentage of Total Volume (%)		Sales to KEPCO (2) (in billions of Won)		Percentage of Total Sales (%)		Unit Price (Won/kWh)
Generation Companies	KHNP		154,842		28.9		9,069		17.6		58.57
	KOSEP		43,824		8.2		4,581		8.9		104.54
	KOMIPO		46,203		8.6		5,250		10.2		113.62
	KOWEPO		44,469		8.3		4,825		9.3		108.51
	KOSPO		48,605		9.1		5,654		11.0		116.33
	EWP		41,530		7.7		4,604		8.9		110.86
	Others (1)		156,513		29.2		17,586		34.1		112.36
	Total		535,985		100.0		51,569		100.0		96.21
Energy Sources	Nuclear		150,163		28.0		8,451		16.4		56.28
	Bituminous coal		186,813		34.9		19,001		36.9		101.71
	Anthracite coal		1,654		0.3		172		0.3		103.92
	Oil		2,110		0.4		460		0.9		218.12
	LNG/Combined-cycle		163,079		30.4		19,955		38.7		122.37
	Renewables		23,368		4.4		2,497		4.8		106.88
	Hydro		2,349		0.4		253		0.5		107.64
	Pumped storage		3,667		0.7		515		1.0		140.38
	Others		2,785		0.5		265		0.5		95.06
	Total		535,985		100.0		51,569		100.0		96.21
Load	Base load		338,629		63.2		27,624		53.6		81.57
	Non-base load		197,356		36.8		23,945		46.4		121.33
	Total		535,985		100.0		51,569		100.0		96.21

Notes:

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

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

Power Purchased from Independent Power Producers under Power Purchase Agreements

In 2021, we purchased an aggregate of 18,904gigawatt hours of electricity generated by independent power producers under existing power purchase agreements. These independent power producers had an aggregate generation capacity of 13,602megawatts as of December 31, 2021.

Power Generation

As of December 31, 2021, we and our generation subsidiaries had a total of 763 generation units, including nuclear, thermal, hydroelectric and internal combustion units, representing total installed generation capacity of 82,459 megawatts. Our thermal units produce electricity using steam turbine generators fired by coal, oil and LNG. Our internal combustion units use oil or diesel-fired gas turbines and our combined-cycle units are primarily

LNG-fired.

We also purchase power from several generation plants not owned by our generation subsidiaries.

43

The table below sets forth as of and for the year ended December 31, 2021 the number of units, installed capacity and the average capacity factor for each type of generating facilities owned by us and our generation subsidiaries.

	Number of Units		Installed Capacity (1)		Average Capacity Factor (2)
			(Megawatts)		(%)
Nuclear		24		23,250		74.5
Thermal:
Coal		53		32,559		60.5
Oil		3		1,200		14.2
LNG		4		1,400		9.6
Total thermal		60		35,159		56.8
Internal combustion		214		177		31.7
Combined-cycle (3)		117		16,652		36.8
Integrated gasification combined cycle (4)		1		346		72.2
Hydro		61		5,358		10.1
Wind		16		168		13.3
Solar		236		329		17.1
Fuel cell		26		305		74.6
Bio		7		705		56.2
Others (5)		1		10		75.2
Total		763		82,459		55.4

Notes:

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

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

(3) Involves generation through gas and oil.

(4) Involves generation through coal and gasified coal.

(5) Includes waste-to-energy.

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

We seek to achieve efficient use of fuels and diversification of generation capacity by fuel type. In the past, we relied principally upon

oil-fired

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

44

which require rapid

start-up

and shutdown. Thermal units fired by LNG, hydroelectric units and internal combustion units are the most efficient types of units for rapid

start-ups

and shutdowns, and therefore we use such units principally to meet short-term surges in demand. Anthracite coal is a less efficient fuel source than bituminous coal in terms of electricity output per unit cost.

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

The high average age of our

oil-fired

thermal units is attributable to our reliance on

oil-fired

thermal units as the primary means of electricity generation until

mid-1970s.

Since then, we have diversified our fuel sources and constructed relatively few

oil-fired

thermal units compared to units of other fuel types.

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

	2017		2018		2019		2020		2021		% of 2021 Gross Generation (1)
	(in gigawatt hours, except percentages)
Electricity generated by us and our generation subsidiaries:
Nuclear		148,426		133,505		145,910		160,184		158,015		27.4
Coal		227,187		222,818		211,785		178,808		172,419		29.9
Oil		5,225		5,845		1,842		1,504		1,494		0.3
LNG		220		—		—		587		1,177		0.2
Internal combustion		513		529		579		405		491		0.1
Combined-cycle		36,957		46,780		39,049		41,446		53,609		9.3
Hydro		5,263		5,187		4,477		4,501		4,762		0.8
Wind		209		195		192		202		195		0.0
Solar		142		183		209		236		493		0.1
Fuel cells		273		527		1,036		1,528		1,993		0.3
Others		2,069		2,758		3,991		5,121		5,725		1.0
Total generation by us and our generation subsidiaries		426,484		418,327		409,070		394,522		400,373		69.4
Electricity generated by IPPs:
Thermal		103,727		125,830		124,128		123,856		140,891		24.4
Hydro, other renewable and others		23,319		26,490		29,842		33,784		35,454		6.2
Total generation by IPPs		127,046		152,320		153,970		157,640		176,345		30.6
Gross generation		553,530		570,647		563,040		552,162		576,718		100
Auxiliary use (2)		21,707		21,390		21,573		21,135		21,254		3.7
Pumped-storage (3)		5,477		5,106		4,588		4,351		4,856		0.8
Total net generation (4)		526,346		544,151		536,879		526,676		550,608		95.5
Transmission and distribution losses (5)		18,790		19,359		19,000		18,610		19,424		3.5

IPPs = Independent power producers

Notes:

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

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

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

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

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

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

	2017		2018		2019		2020		2021
	(Megawatts)
Total capacity		116,657		117,205		121,147		127,819		131,330
Peak load		85,133		92,478		90,314		89,091		91,141
Average load		63,188		65,142		64,274		62,860		65,835

Korea Hydro & Nuclear Power Co., Ltd.

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

KHNP owns and operates 24 nuclear generation units at five power plant complexes in Korea, located in Kori (Busan), Saeul (Ulsan), Wolsong (Gyeongju), Hanbit (Yonggwang) and Hanul (Ulchin), 53 hydroelectric generation units including 16 pumped storage hydro generation units as well as 45 solar generation units and one wind generation unit as of December 31, 2021.

The table below sets forth the number of units and installed capacity as of December 31, 2021 and the average capacity factor by types of generation units in 2021.

	Number of Units		Installed Capacity (1)		Average Capacity Factor (2)
			(Megawatts)		(%)
Nuclear		24		23,250		74.5
Hydroelectric		53		5,307.475		10.0
Solar		45		61.94		15.2
Wind		1		0.75		—
Total		123		28,620.16

Notes:

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

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

KHNP commenced commercial operation of Shin-Kori #3, with a 1,400 megawatt capacity, in December 2016, and Shin-Kori #4 began commercial operations on August 2019. KHNP is currently building four additional nuclear generation units, two at the Shin-Kori and two at Shin-Hanul sites, each with a 1,400 megawatt capacity. KHNP expects to complete these units between 2022 and 2025. In June 2018, the board of directors of KHNP decided to retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the unit’s economic viability and regional sentiment of its continuing operation. The initial phase of the decommissioning of Kori #1, which primarily involves safety inspections and the removal of spent nuclear fuels, has begun after its permanent shutdown in June 2017.

46

Nuclear

The table below sets forth certain information with respect to the nuclear generation units of KHNP as of December 31, 2021.

Unit (5)	Reactor Type (1)		Reactor Design (2)	Turbine and Generation (3)	Commencement of Operations		Installed Capacity		Average Capacity Factor(4) (%)
							(Megawatts)
Kori-2		PWR	W	GEC		1983		650		97.9
Kori-3		PWR	W	GEC, Hitachi		1985		950		63.2
Kori-4		PWR	W	GEC, Hitachi		1986		950		63.9
Shin-Kori-1		PWR	D, KEPCO E&C, W	D, GE		2011		1,000		78.7
Shin-Kori-2		PWR	D, KEPCO E&C, W	D, GE		2012		1,000		84.1
Shin-Kori-3		PWR	D, KEPCO E&C, W	D, GE		2016		1,400		75.6
Shin-Kori-4		PWR	D, KEPCO E&C, W	D, GE		2019		1,400		74.3
Wolsong-2		PHWR	AECL, H, K	H, GE		1997		700		93.9
Wolsong-3		PHWR	AECL, H	H, GE		1998		700		89.1
Wolsong-4		PHWR	AECL, H	H, GE		1999		700		85.9
Shin-Wolsong-1		PWR	D, KEPCO E&C, W	D, GE		2012		1,000		76.9
Shin-Wolsong-2		PWR	D, KEPCO E&C, W	D, GE		2015		1,000		87.2
Hanbit-1		PWR	W	W, D		1986		950		72.6
Hanbit-2		PWR	W	W, D		1987		950		98.2
Hanbit-3		PWR	H, CE, K	H, GE		1995		1,000		100.1
Hanbit-4		PWR	H, CE, K	H, GE		1996		1,000		0.0
Hanbit-5		PWR	D, CE, W, KEPCO E&C	D, GE		2002		1,000		18.7
Hanbit-6		PWR	D, CE, W, KEPCO E&C	D, GE		2002		1,000		62.4
Hanul-1		PWR	F	A		1988		950		95.2
Hanul-2		PWR	F	A		1989		950		74.0
Hanul-3		PWR	H, CE, K	H, GE		1998		1,000		66.2
Hanul-4		PWR	H, CE, K	H, GE		1999		1,000		70.9
Hanul-5		PWR	D, KEPCO E&C, W	D, GE		2004		1,000		84.9
Hanul-6		PWR	D, KEPCO E&C, W	D, GE		2005		1,000		100.0
Total nuclear								23,250		74.5

Notes:

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

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

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

(4) The average fuel cost per kilowatt in 2021 for the entire generation units, including nuclear fuel cost, power purchase cost and material cost, was Won 7.75 per kilowatt. Hanbit-4 Unit was under an overhaul during 2021 as we had planned.

(5) Kori-1 was permanently shut down on June 18, 2017. Shin-Kori-4 commenced operations on August 29, 2019. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1.

47

Under extended-cycle operations, nuclear units can be run continuously for periods longer than the conventional twelve-month period between scheduled shutdowns for refueling and maintenance. Since 1987, we have adopted the mode of extended-cycle operations for all of our pressurized light water reactor units and plan to use it for our newly constructed units. The duration of shutdown for fuel replacement, maintenance and the evaluation period for approval to start after maintenance was 1,989.8 days in the aggregate in 2021. In addition, KHNP’s nuclear units experienced an average of 0.25 unplanned shutdowns per unit in 2021. In the ordinary course of operations, KHNP’s nuclear units routinely experience damage and wear and tear, which are repaired during routine shutdown periods or during unplanned temporary suspensions of operations. No significant damage has occurred in any of KHNP’s nuclear reactors, and no significant nuclear exposure or release incidents have occurred at any of KHNP’s nuclear facilities since the first nuclear plant commenced operation in 1978.

Hydroelectric

The table below sets forth certain information relating to KHNP’s pumped-storage and hydroelectric business units, including the installed capacity as of December 31, 2021 and the average capacity factor in 2021.

Location of Unit	Number of Units		Classification		Year Built		Installed Capacity		Average Capacity Factor
							(Megawatts)		(%)
Hwacheon		4		Dam waterway		1944		108.0		13.9
Chuncheon		2		Dam		1965		62.28		15.1
Euiam		2		Dam		1967		48.0		24.4
Cheongpyung		4		Dam		1943		140.1		17.1
Paldang		4		Dam		1973		120.0		31.2
Chilbo (Seomjingang)		3		Basin deviation		1945		35.4		23.3
Boseonggang		2		Basin deviation		1937		4.5		39.4
Kwoesan		2		Dam		1957		2.8		35.6
Anheung (GangLim)		3		Dam waterway		1978		0.4		3.3
Kangreung		2		Basin deviation		1991		82.0		0.0
Topyeong		1		Dam		2011		0.045		12.4
Muju		1		Dam		2003		0.4		10.0
Sancheong		2		Dam		2001		0.995		39.9
Yangyang		2		Dam		2005		1.4		38.3
Yangyang		1		Dam		2020		0.15		75.2
Yecheon		1		Dam		2011		0.9		19.8
Yecheon (Mini)		1		Dam		2018		0.025		90.8
Cheongpeoung		2		Pumped Storage		1980		400.0		9.3
Samrangjin		2		Pumped Storage		1985		600.0		11.1
Muju		2		Pumped Storage		1995		600.0		12.0
Sancheong		2		Pumped Storage		2001		700.0		12.0
Yangyang		4		Pumped Storage		2006		1,000.0		10.7
Cheongsong		2		Pumped Storage		2006		600.0		8.9
Yecheon		2		Pumped Storage		2011		800.0		0.0
Total		53						5,307.475		10.0

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Solar/Wind

The table below sets forth certain information, including the installed capacity as of December 31, 2021 and the average capacity factor in 2021, of the solar and wind power units of KHNP.

Location of Unit	Classification	Year Built		Installed Capacity		Average Capacity Factor
				(Megawatts)		(%)
Yonggwang	Solar		2008-2021		21.56		15.3
Yecheon	Solar		2012		2.01		14.9
Kori	Wind		2008		0.75		0.0
Kori	Solar		2017-2021		6.85		17.3
Gapyeong	Solar		2017		0.07		14.8
Hydro Technical Training Center	Solar		2017		0.09		14.2
Cheongpyung	Solar		2018		0.09		14.3
Cheongsong	Solar		2018-2021		4.49		15.9
Kwoesan	Solar		2018		0.25		15.1
Boseonggang	Solar		2018		1.99		13.0
Samrangjin	Solar		2019		2.77		15.2
Yeoncheon	Solar		2020		0.99		14.3
Jeju	Solar		2020-2021		14.08		13.6
Gyeongju	Solar		2020-2021		6.67		15.1
Total					62.69

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

start-up

and shut-down mechanism, hydroelectric power generation is reserved for peak demand periods.

Korea South-East Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2021 and the average capacity factor and average fuel cost per kilowatt in 2021 based upon the net amount of electricity generated, of KOSEP.

	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Samcheonpo #3, 4, 5, 6		26.2		2,120		42.4		63.5
Yeongheung #1, 2, 3, 4, 5, 6		12.7		5,080		65.4		63.3
Yeosu # 2		7.8		668.6		61.8		92.4
Combined cycle and internal Combustion:
Bundang gas turbine #1,2,3,4,5,6,7,8; steam turbine #1, 2		28		922.1		28.9		135.5
Hydro, Solar and other renewable energy				489.6		55.3		137.9
Total		23.4		9,280.3		55.2		73.1

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Korea Midland Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2021 and the average capacity factor and average fuel cost per kilowatt in 2021 based upon the net amount of electricity generated, of KOMIPO.

	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Boryeong #3, 4, 5, 6, 7, 8		22.96		3,050		59.08		61.55
Shin Boryeong #1, 2		4.46		2,038		68.72		55.54
Shin Seocheon #1		0.58		1,018		58.30		76.95
Oil-fired:
Jeju #2, 3		21.46		150		48.79		302.10
Combined-cycle and internal combustion:
Boryeong gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2, 3		22.82		1,350		14.98		113.39
Incheon gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2, 3		12.88		1,462.45		34.09		110.70
Seoul gas turbine #1, 2; steam turbine #1, 2		2.38		738.35		71.60		89.95
Jeju gas turbine #1, 2; steam turbine #1, 2		3.51		228.73		54.25		113.44
Sejong gas turbine #1, 2; steam turbine #1		8.17		530.44		78.05		94.96
Jeju Internal Combustion Engine #1,2		14.58		80		27.46		159.97
Wind:
Yangyang #1, 2		15.58		3		15.62		6.59
Sejong Maebongsan Wind		15.47		8.80		—		—
Jeju Sangmyung Wind		5.5		21		15.63		2.69
Combined heat and power:
Wonju #1		6.67		10		75.17		84.55
Hydroelectric:
Boryeong		12.86		7.50		15.41		0.46
Shin Boryeong		5.25		5		38.52		0.01
Shin Seocheon		0.58		2.59		22.51		0.0007
Photovoltaic (“PV”) power and fuel cell generation:
Boryeong (PV) site		4.32		3.11		13.48		3.67
Shin Boryeong (PV) site		5.58		2.90		13.61		0.01
Seocheon (PV) site		14		1.23		12.40		0.0003
Jeju (PV) site		4.84		4.29		11.42		0.42
Seoul (PV) site		10.42		1.30		14.43		4.55
Sejong (PV) site		4.08		0.33		13.98		0.001
Yeosu (PV) site		9.83		2.22		15.03		0.0003
Incheon (PV) site		4.18		1.58		13.65		0.001
Shin Boryeong (fuel cell) site		4.17		7.48		72.05		148.24
Incheon (fuel cell) site		1.92		15.84		94.26		132.22
Seoul (fuel cell) site		1.25		6		93.23		78.77
Sejong (fuel cell) site		1.92		5.28		94.62		101.29
Total		13.14		10,755.46		52.81		77.90

50

Korea Western Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2021 and the average capacity factor and average fuel cost per kilowatt in 2021 based upon the net amount of electricity generated, of KOWEPO.

	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Taean #1, 2, 3, 4, 5, 6, 7, 8, 9, 10		15.7		6,100		59.1		63.58
LNG-fired:
Pyeongtaek #1, 2, 3, 4 (1)		40.1		1,400		9.6		143.85
Combined cycle:
Pyeongtaek #2		7.2		868.5		65.7		97.84
Gunsan		11.6		718.4		28.7		118.30
West Incheon		29.1		1,800		28.6		112.74
Hydroelectric:
Taean		14.3		7.2		19.2		—
Solar:
Taean		4.4		17.3		13.4		—
Pyeongtaek		4.5		3.9		13.0		—
West Incheon		4.5		1.2		12.8		—
Gunsan		6.2		1.0		16.5		—
Samryangjin		14.1		3.0		14.2		—
Sejong City		9.5		5.0		13.3		—
Gyeonggi-do		8.7		2.5		13.8		—
Yeongam		8.8		13.3		15.3		—
Goheung		2.7		1.0		14.9		—
Fuel Cell:
West Incheon 1		6.7		16.6		40.2		146.29
West Incheon 2		2.4		60.3		76.0		134.25
Cheonan Cheongsu		2		5.3		85.3		147.96
Hwaseong Namyang		0.5		20.2		79.5		158.29
Gyeonggi Uiwang		0.4		9.9		95.5		114.82
Daejeon Hakha		0.1		6.2		84.1		112.64
Wind Power:
Hwasun		6		16		16.4		—
Jangheung		0.3		18		9.9		—
Integrated gasification combined cycle:
Taean		5.4		346.3		72.2		56.14
Total		19.5		11,441.1		47.0		77.09

Notes:

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

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Korea Southern Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2021 and the average capacity factor and average fuel cost per kilowatt in 2021 based upon the net amount of electricity generated, of KOSPO.

	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Hadong #1, 2, 3, 4, 5, 6, 7, 8		20.6		4,000		64.8		63.3
Samcheok #1, 2		4.8		2,044		59.5		72.3
Combined cycle:
Shin Incheon #1, 2, 3, 4		24.4		1,800		36.2		109.9
Busan #1, 2, 3, 4		18.2		1,800		46.3		102.5
Yeongwol #1		11.2		848		10.9		113.8
Hallim		24.4		105		50.8		141.2
Andong #1		7.8		362		52.7		88.7
Nam Jeju #1		1.1		146		9.2		248.9
Bio Oil:
Nam Jeju #1, 2		15		200		43.8		289.0
Wind power:
Hankyung		15.2		21		19.8		1.4
Seongsan		12.2		20		21.5		1.0
Solar		4.8		34		14.1		0.2
Small Hydropower		4.4		3		45.3		0.0
Fuel Cell		2.2		94		91.3		133.5
Total		16.3		11,477		50.8		83.1

Korea East-West Power Co., Ltd.

The table below sets forth, by fuel type, the weighted average age and installed capacity as of December 31, 2021 and the average capacity factor and average fuel cost per kilowatt in 2021 based upon the net amount of electricity generated, of EWP.

	Weighted Average Age of Units		Installed Capacity		Average Capacity Factor		Average Fuel Cost per kWh
	(Years)		(Megawatts)		(%)		(Won)
Bituminous:
Dangjin #1, 2, 3, 4, 5, 6, 7, 8, 9, 10		14.0		6,040		54.8		63.3
Anthracite:
Donghae #1, 2		22.8		400		52.9		96.0
Oil-fired:
Ulsan #4, 5, 6		41.4		1,200		14.2		201.5
Combined cycle:
Ulsan gas turbine #1, 2, 3, 4, 5, 6, 7, 8; steam turbine #1, 2, 3, 4		18.0		2,072		39.5		102.7
Ilsan gas turbine #1, 2, 3, 4, 5, 6; steam turbine #1, 2		27.8		900		15.6		146.3
Mini hydro, Photovoltaic, Fuel Cell, Wind-Power, Biomass:				164		40.3		71.9
Total		20.7		11,276		44.6		79.7

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Power Plant Remodeling and Recommissioning

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

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

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Power Plant	Capacity	Completed (Year)	Extension	Company
Hadong #1 - 8	4,000 MW (500 MW×8)	SCR Upgrade (#5. 2016) SCR Upgrade (#2,3,5. 2017) SCR Upgrade (#1,4,6,7. 2018) SCR Upgrade (#8. 2019) FGD Upgrade (#6, 2018) FGD Upgrade (#2, 3, 2019) FGD Upgrade (#4 2020) FGD Upgrade (#5 2021)	Anti-pollution	KOSPO

Notes:

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

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

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

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

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

(6) “WESP” means wet electrostatic precipitator.

Transmission and Distribution

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

As of December 31, 2021, our transmission system consisted of 34,923 circuit kilometers of lines of 765 kilovolts and others including high-voltage direct current lines, and we had 892 substations with aggregate installed transformer capacity of 344,286 megavolt-amperes.

As of December 31, 2021, our distribution system consisted of 132,376 megavolt-amperes of transformer capacity and 9,940,440 units of support with a total line length of 532,348 circuit kilometers.

We make substantial investments in our transmission and distribution systems to minimize power interruptions and improve efficiency. Our current projects principally focus on increasing capabilities of the existing power networks and reducing our transmission and distribution loss, which was 3.53% of our gross generation in 2021. To cope with increasing damages to large-scale transmission and distribution facilities, we plan to reinforce stability of our transmission and distribution facilities through stricter design and material specifications. In addition, we also plan to expand underground transmission and distribution facilities to meet customer demand for more environment-friendly facilities. In order to reduce the interruption time in power distribution, which is an indicator of the quality of electricity transmission, we are also continuing to invest in automation of electricity transmission and development of new transmission technologies, among others.

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

New Energy Industry Projects

Certain of our new energy industry projects are described below.

Advanced Metering Infrastructure

In July 2012, the Government implemented a master plan to build out a smart grid, which includes the Advanced Metering Infrastructure (“AMI”) roadmap, and revised the plan to focus on building electricity market ecosystem in August 2018. In accordance with such plan, we are in the process of installing “smart meters” and related communication networks and operating systems as part of the “smart grid” initiative in an effort to

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enhance efficiency in the power electricity industry and alleviate growing energy shortage concerns. Our goal is to complete such installation for all of the households in Korea. Smart meters refer to digital meters that record, on a real-time basis, electricity consumption within a household so that consumers will have a price-based incentive to enhance efficiency in their electricity usage. As of December 31, 2021, we have established data communication network that enables smart meters for 11 million households and plan to establish it for 12 million additional households by 2024. We have spent Won 900 billion on the AMI project until 2021 and expect to spend an additional Won 500 billion, bringing the total cost to approximately Won 1.4 trillion.

Smart Grids

Smart grids refer to next-generation networks for electricity distribution that integrate information technology into existing power grids with the aim of enabling

two-way

real time exchange of information between electricity suppliers and consumers for optimal efficiency in electricity use. As part of our overall business strategy, we are currently developing and implementing smart grids based on advanced information technology in order to promote more efficient allocation and use of electricity by consumers. We expect that such technology will improve efficiency and reduce electricity loss over the course of electricity transmission and distribution. We also expect that the smart grid initiative will significantly increase efficient energy consumption by providing real-time data to customers, which would in turn help to reduce greenhouse gas emission and decrease Korea’s reliance on foreign energy sources. Leveraging our experience gained through high-tech intelligent power transmission and distribution network, or “smart grid” test beds in Jeju Province from 2009 to 2013, we plan to expand our smart grid project.

As a way to commercialize an integrated grid system for apartments, we entered into a business agreement with Seoul City Gas for the joint use of the AMI infrastructure in September 2021 and are generating new revenue by providing meter reading services for both electricity and gas. Also, we are running an integrated grid system and smart city system based on a digital twin city approach in Siheung,

Gyeonggi-do

and Sejong City by drawing on our smart city research and development achievements from Naju Innovation City. In addition, we are conducting a project to build an energy integration platform and provide energy-related services in the Magok district of Seoul.

Energy Storage Systems

In October 2013, as part of an endeavor to create new markets for energy demand management applications using information and communication technology, we established a business plan to roll out energy storage systems for frequency regulation nationwide. These systems involve the establishment and operation of batteries and transformers with

large-sized

charge and discharge capabilities adjacent to substations to transmit electricity stably with regulated frequencies and optimize the efficiency of the substation operation. This system allows full conversion of reserve capacity for frequency regulation at existing

low-cost

generators into electricity storage and, if operated in sizable scale, offers opportunities for substantial cost savings in purchase of electricity.

In December 2014, we conducted a pilot project for this initiative by installing a 52 megawatts energy storage system at the

Seo-Anseong

substation and the Shin-Yongin substation. In July 2015, these substations began to commercially operate energy storage systems, and we expanded the energy storage capacity nationwide by an additional 184 megawatts in 2016, an additional 140 megawatts in 2017, with a total capacity of 376 megawatts as of December 31, 2021. Among them, we completed construction of the largest indoor energy storage systems for frequency regulation in Gimje substation with a 48 megawatts capacity.

Electric Vehicle Charging Infrastructure

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

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charging industry by charging for the service and making the infrastructures available to the market. We have installed 9,998 high speed electric vehicle charging stations by the end of 2021 and plan to expand such stations in line with the Government policy to popularize electric vehicles.

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

Fuel Sources and Requirements

Nuclear

Uranium, the principal fuel source for nuclear power, accounted for 35.7%, 40.6% and 39.5% the fuel requirements for electricity generation by us and our generation subsidiaries in 2019, 2020 and 2021, respectively.

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

In order to ensure a stable supply, KHNP enters into long-term and medium-term contracts with various suppliers and supplements such supplies with purchases in spot markets. In 2021, KHNP purchased approximately 4,595 tons of its uranium concentrate requirement under both long-term and spot supply contracts with suppliers in Canada, France, the United Kingdom, Switzerland, Australia, Germany, Hong Kong, Japan and Uzbekistan. Under the long-term supply contracts, the purchase prices of uranium concentrates are adjusted annually based on base prices and spot market prices prevailing at the time of actual delivery. The conversion and enrichment services of uranium concentrates are provided by suppliers in Canada, France, Japan, Russia, the United Kingdom and Switzerland. A Korean supplier typically provides fabrication of fuel assemblies. Except for certain fixed contract prices, contract prices for processing of uranium are adjusted annually in accordance with the general rate of inflation. KHNP intends to obtain its uranium requirements in the future, in part, through purchases under medium- to long-term contracts and, in part, through spot market purchases.

Coal

Bituminous coal accounted for 51.1%, 44.8% and 42.6% of the fuel requirements for electricity generation by us and our generation subsidiaries in 2019, 2020 and 2021, respectively, and anthracite coal accounted for 0.6%, 0.5% and 0.5% of our fuel requirements for electricity generation in 2019, 2020 and 2021, respectively.

In 2021, our generation subsidiaries purchased approximately 67 million tons of bituminous coal, of which approximately 48.9%, 20.0%, 11.5%, 4.1% and 15.5% were imported from Australia, Indonesia, Russia, South Africa and others, respectively. Approximately 92.9% of the bituminous coal requirements of our generation subsidiaries in 2021 were purchased under long-term contracts with the remaining 7.1% purchased in the spot market. Some of our long-term contracts relate to specific generating plants and extend through the end of the projected useful lives of such plants, subject in some cases to periodic renewal. Pursuant to the terms of our long-term supply contracts, prices are adjusted periodically based on market conditions. The average cost of bituminous coal per ton purchased under such contracts amounted to Won 101,624, Won 69,748 and Won 103,893 in 2019, 2020 and 2021, respectively.

In 2021, our generation subsidiaries purchased approximately 1 million tons of anthracite coal. The prices for anthracite coal under such contracts are set by the Government. The average cost of anthracite coal per ton purchased under such contracts was Won 136,526, Won 137,116 and Won 155,826 in 2019, 2020 and 2021, respectively.

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Oil

Oil accounted for 0.5%, 0.4% and 0.4% of the fuel requirements for electricity generation by us and our generation subsidiaries in 2019, 2020 and 2021, respectively.

In 2021, our generation subsidiaries purchased approximately 5 million barrels of fuel oil, substantial portion of which was purchased from domestic refiners through competitive open bidding. Purchase prices are based on the spot market price in Singapore. The average cost per barrel was Won 100,827, Won 91,566 and Won 127,644 in 2019, 2020 and 2021, respectively.

LNG

LNG accounted for 9.5%, 10.6% and 13.7% of the fuel requirements for electricity generation by us and our generation subsidiaries in 2019, 2020 and 2021, respectively. In 2021, for use in electricity generation we purchased approximately 7 million tons of LNG from Korea Gas Corporation, a Government-controlled entity in which we currently own a 20.47% equity interest (excluding treasury shares). In 2021, we purchased a substantial portion of our LNG requirements for use in power generation from Korea Gas Corporation. Under the terms of the LNG contract with Korea Gas Corporation, all of our five

non-nuclear

generation subsidiaries jointly and severally agreed to purchase a total of 5.8 million tons of LNG in 2021, subject to an automatic price adjustment annually based on a

pre-determined

formula if the actual purchased amount exceeds or falls short of the contracted amount. We believe the quantities of LNG provided under such contract will be adequate to meet the needs of our generation subsidiaries for LNG for the next several years. The LNG supply contracts between our generation subsidiaries and Korea Gas Corporation generally have a term of 20 years and provide for minimum purchase requirements for our generation subsidiaries, the specific terms of which are subject to negotiation between Korea Gas Corporation and our generation subsidiaries and approval by the Government. The average cost per ton of LNG was Won 727,083, Won 556,564 and Won 724,682, in 2019, 2020 and 2021, respectively. Korea Gas Corporation implemented a new individual tariffs formula, whereby the domestic power plants can negotiate lower prices directly with Korea Gas Corporation. The new formula applies to domestic power plants whose current contracts with Korea Gas Corporation expire after January 2022 and also to new power plants commencing operations from January 2022. Meanwhile, KOMIPO procures LNG directly through a contract with a brokerage firm, in addition to the amount supplied by Korea Gas Corporation. In 2021, the total amount of KOMIPO’s direct LNG procurement was 0.8 million tons, with 24.7%, 16.9%, 16.3%, 15.0%, 14.0% and 13.1% of the total imported from Australia, Malaysia, Russia, United States, United Arab Emirates and other countries, respectively.

Hydroelectric

Hydroelectric power generation accounted for 1.1%, 1.1% and 1.2%, of the fuel requirements for electricity generation by us and our generation subsidiaries in 2019, 2020 and 2021, respectively. The availability of water for hydroelectric power depends on rainfall and competing uses for available water supplies, including residential, commercial, industrial and agricultural consumption. Pumped storage enables us to increase the available supply of water for use during periods of peak electricity demand.

Sales and Customers

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

end-users.

Demand for electricity in Korea grew at a compounded average rate of 1.0% per annum for the five years ended December 31, 2021. According to the Bank of Korea, the compounded growth rate for GDP was approximately 2.1% per annum for the same period. The GDP growth rate was approximately 2.0%,

-1.0%

and 4.0% during 2019, 2020 and 2021, respectively.

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

year-on-year

basis.

	2017			2018			2019			2020			2021
Growth in GDP		3.1	%		2.7	%		2.0	%		(1.0	)%		4.0	%
Growth in electricity consumption		2.2	%		3.6	%		(1.1	)%		(2.2	)%		4.7	%

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

We do not use any marketing channels, including any special sales methods, to sell electricity to our customers, other than to install electricity meters

on-site

and take monthly readings of such meters, based upon which invoices are sent to our customers.

Demand by the Type of Usage

The table below sets forth consumption of electric power, and growth of such consumption on a

year-on-year

basis, by the type of usage (in gigawatt hours) for the periods indicated.

	2017 (GWh)		YoY growth (%)			2018 (GWh)		YoY growth (%)			2019 (GWh)		YoY growth (%)			2020 (GWh)		YoY growth (%)			2021 (GWh)		YoY growth (%)			% of Total 2021
Residential		68,544		0.7			72,895		6.3			72,639		(0.4	)		76,303		5.0			79,915		4.7			15.0
Commercial		111,298		2.5			116,934		5.1			116,227		(0.6	)		113,639		(2.2	)		119,550		5.2			22.4
Educational		8,316		2.9			8,678		4.3			8,561		(1.4	)		7,515		(12.2	)		8,423		12.1			1.6
Industrial		285,969		2.6			292,999		2.5			289,240		(1.3	)		278,660		(3.7	)		291,333		4.6			54.6
Agricultural		17,251		4.0			18,504		7.3			18,882		2.0			19,029		0.8			20,603		8.3			3.9
Street lighting		3,557		2.7			3,582		0.7			3,571		(0.3	)		3,507		(1.8	)		3,445		(1.8	)		0.6
Overnight Power		12,811		(4.5	)		12,557		(2.0	)		11,379		(9.4	)		10,616		(6.7	)		10,162		(4.3	)		1.9
Total		507,746		2.2			526,149		3.6			520,499		(1.1	)		509,270		(2.2	)		533,431		4.7			100.0

The industrial sector represents the largest segment of electricity consumption in Korea. Demand for electricity from the industrial sector was 291,333 gigawatt hours in 2021, representing a 4.6% increase from 2020, largely due to a base effect from continued demand decreases for the last two years, a rapid recovery of domestic economy and consequent increases of industrial products. Demand for electricity from the commercial sector depends largely on the level and scope of commercial activities in Korea. Demand for electricity from the commercial sector increased to 119,550 gigawatt hours in 2021, representing a 5.2% increase from 2020, largely due to an improved consumer sentiment on service industry and increased heating and air conditioning each in January, February, July and August. Demand for electricity from the residential sector is largely dependent on population growth and use of heaters, air conditioners and other electronic appliances. Demand for electricity from the residential sector increased to 79,915 gigawatt hours in 2021, representing a 4.7% increase compared to 2020, largely due to an increase in household electricity usage from an increased time spent at home and telecommuting in response to the

COVID-19

pandemic and tightened disinfection guidelines.

Demand Management

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

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

	2017			2018			2019			2020			2021
Facility reserve margin		37.0	%		26.7	%		36.2	%		43.5	%		44.1	%
Supply reserve margin		12.9	%		7.7	%		6.7	%		9.9	%		10.5	%

While we seek to meet the growing demand for electricity in Korea primarily by continuing to expand our generation capacity, we have also implemented several measures to curtail electricity consumption, especially during peak periods. We apply

time-of-use

and seasonal tariff, which are structured so that higher tariffs are charged at the time and months of peak demand to select types of customers, and we also apply a progressive rate structure for the residential use of electricity. We have several demand management programs to control demand and induce power conservation during peak hours and peak seasons such as providing incentives for reducing power consumption during peak hours.

Electricity Rates

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

Under the Electric Utility Act and the Price Stabilization Act, electricity rates are established at levels that would enable us to recover our operating costs attributable to our basic electricity generation, transmission and distribution operations as well as receive a fair investment return on capital used in those operations.

For the purposes of rate approval, operating costs are defined as the sum of our operating expenses (which principally consists of cost of sales and selling and administrative expenses) and our adjusted income taxes.

Fair investment return represents an amount equal to the rate base multiplied by the rate of return.

The rate base is currently equal to the sum of:

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

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

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

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

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

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In 2020, the approved rate of return on the debt component of the rate base was 0.63% while the approved rate of return on the equity component of the rate base was 3.94%. As a result of such approved rates of returns, the fair rate of return in 2020 was determined to be 4.57%. The fair rates of return for 2021 have not yet been determined.

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

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

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

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

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

First, we implemented a new cost pass-through tariff system to reinforce the correlation between the costs we incur and the tariff we charge to our customers and to enhance transparency by separately billing fuel costs and climate/environment related costs. Previously, the electricity tariff consisted of two main components: (i) the base charge (the “Base Charge”) and (ii) the usage charge (the “Usage Charge”) based on the amount of electricity consumed by

end-users.

Under the new tariff system, there are new components to the tariff called the fuel cost adjusted charge (the “Fuel Cost Adjusted Charge”) and the climate/environment related charge (the “Climate/Environment Related Charge”). In principle, the Fuel Cost Adjusted Charge is calculated on a quarterly basis and the formula for calculating the amount of the Fuel Cost Adjusted Charge is multiplying (i) the unit price of the Fuel Cost Adjusted Charge (the “Unit Price of the Fuel Cost Adjusted Charge”), which is the difference between a base fuel cost (the “Base Fuel Cost”) and an actual fuel cost (the “Actual Fuel Cost”) and (ii) the amount of electricity consumed. The Base Fuel Cost is the past twelve-month average fuel price of bituminous coal, LNG and Bunker C oil as posted by the Korea Customs Service. The twelve-month average fuel price is measured by taking the average of monthly fuel prices of twelve months in between thirteen months and one month prior to the time a new Base Fuel Cost becomes effective. To illustrate, the Base Fuel Cost effective

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from January 2022 is the average of the fuel prices from December 2020 to November 2021. On the other hand, the Actual Fuel Cost is the past three-month average fuel price of the same fuels we use to measure the Base Fuel Cost. The past three-month average fuel price is measured by taking the average of monthly fuel prices from three preceding months from one month before the start of each period when the applicable Fuel Cost Adjusted Charge will be updated. To illustrate, for the first quarter of 2022, we used the fuel costs for September, October and November 2021 to calculate the three-month average fuel price.

The quarterly-adjusted Fuel Cost Adjusted Charge has

built-in

limits in view of price stability and other public policy considerations. First, there are limits on the Unit Price of the Fuel Cost Adjusted Charge to be (i) no less than Won ±1 per kilowatt-hour and (ii) no greater than Won ±3 per kilowatt-hour as compared to the immediately preceding quarter. In other words, any change less than Won ±1 per kilowatt-hour will not be reflected to the Fuel Cost Adjusted Charge and any change greater than Won ±3 per kilowatt-hour will not be reflected to the extent of the portion that exceeds Won ±3 per kilowatt-hour. For example, in the first quarter of 2021, the Unit Price of the Fuel Cost Adjusted Charge was Won –10.5 per kilowatt-hour, meaning the Actual Fuel Cost was lower than the Base Fuel Cost, but after being subjected to the quarterly limit of Won ±3 per kilowatt-hour, the final rate for the Unit Price of the Fuel Cost Adjusted Charge came out to be Won –3.0 per kilowatt-hour. Second, the Unit Price of the Fuel Cost Adjusted Charge that exceeds Won ±5 per kilowatt-hour will not be reflected in the Fuel Cost Adjusted Charge. In other words, the maximum adjustment that can be incorporated to the Unit Price of the Fuel Cost Adjusted Charge is equal to Won ±5 per kilowatt-hour from the Base Fuel Cost that is in effect for a given period. The Base Fuel Cost can only be adjusted upon the revision of the Base Charge or the Usage Charge as described at further below in this section.

In addition to the

built-in

limits described in the preceding paragraph, the new tariff system gives the discretion to the Government not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances. For example, in the second and third quarters of 2021, although the Unit Price of the Fuel Cost Adjusted Charge was Won –0.2 and 0.0 per kilowatt-hour respectively, the Government notified us to keep it at the same Won –3.0 per kilowatt-hour as the first quarter of 2021. In the fourth quarter of 2021, we increased the Unit Price of the Fuel Cost Adjusted Charge to Won 0.0 per kilowatt-hour. However, in the first and second quarters of 2022, although the Unit Price of the Fuel Cost Adjusted Charge as calculated should have been Won 3.0 per kilowatt-hour, the Government notified us to keep it at the same Won 0.0 per kilowatt-hour as the fourth quarter of 2021. The Government cited different reasons for withholding the application of the quarterly Fuel Cost Adjusted Charge for each quarter but one of the more consistent reasons has been to alleviate the hardship caused by the prolonged economic effects of

COVID-19

pandemic.

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

Due to the likelihood of the Actual Fuel Cost being substantially over the

built-in

limits of the new tariff system and the Government’s discretion not to wholly or partially adjust the quarterly Fuel Cost Adjusted Charge in case of extenuating circumstances, there may be certain portions of the fuel costs that cannot be charged to our customers, even though those portions should have been included in the Fuel Cost Adjusted Charge. In such cases, we may accumulate such portions and reflect them in what is called the total comprehensive cost (the “Total Comprehensive Cost”), which is a variable we use to calculate the Base Charge and the Usage Charge of the tariff. The Total Comprehensive Cost, submitted yearly to the Government by us, is calculated based on our budget for relevant costs. Under the Total Comprehensive Cost approach, the Base Charge and the Usage Charge are established at levels that would enable us to recover our operating costs attributable to our basic electricity generation, transmission and distribution operations as well as receive a fair investment return on capital used in

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those operations. The operating costs are defined as the sum of our operating expenses, which principally consists of cost of sales and selling and administrative expenses, and our adjusted income taxes. The Base Charge and the Usage Charge that are derived from the Total Comprehensive Cost need to be approved by the Government to be revised.

Also, the new tariff system introduced an additional component to the tariff called a climate/environment related charge (the “Climate/Environment Related Charge”). Previously, our climate and environment costs were embedded in the Usage Charge component of the tariff and our consumers could not discern the exact magnitude of such costs. By separating it out as an independent component, we intend to provide more information and transparency to our customers while having the flexibility to adjust it in alignment with the underlying costs. The Climate/Environment Related Charge for the coming year is calculated by multiplying (i) our total estimated costs of complying with the Renewable Portfolio Standard program, the Greenhouse Gas Emission Trading System and the coal-fired generation reduction program for the current year, and then dividing it by the electricity sales projected for the coming year (the “Climate/Environment Related Base Rate”), and (ii) the amount of electricity consumed. The value of the Climate/Environment Related Base Rate for 2021 was Won 5.3 per kilowatt-hour. The Climate/Environment Related Charge is planned to be adjusted every year by reflecting the change in climate and environment-related costs but the Government may change the date of adjustment under reasonable circumstances. If there are discrepancies between our costs and the Climate/Environment Related Charge, we may accumulate such discrepancies and reflect them in our Total Comprehensive Cost. However, the electricity rate based on the Total Comprehensive Cost needs to be approved by the Government to be revised.

We announced in December 2021 that we plan to increase the rate of the Usage Charge of the tariff by Won 4.9 per kilowatt-hour on April 1 and October 1, 2022, which will result in a total increase of Won 9.8 per kilowatt-hour. Such increases are intended to reflect the rise in fuel prices and are in line with the purpose of the cost pass-through tariff system. However, we have decided to increase it incrementally in two rounds to relieve people’s hardship including the prolonged effects of COVID-19 pandemic. The first round of increase has become effective on April 1, 2022. In connection with the announcement of the increase in the Usage Charge, we also increased the Base Fuel Cost effective from 2022 to be the average of the monthly fuel prices from December 2020 to November 2021. Also, we announced we plan to further reflect increased environmental costs in 2021 to raise the Climate/Environment Related Base Rate by Won 2.0 to Won 7.3 per kilowatt-hour as of April 1, 2022. The increase has become effective on April 1, 2022.

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

Third, the new tariff system ended certain special discounts we previously provided to our customers. The first of two such discounts was for customers who installed energy storage system (“ESS”). The benefits included tariff discounts of three times the Base Charge and 50% of the Usage Charge. Starting in January 2021, we rolled back the discount for ESS by decreasing it from three times the Base Charge to one times the Base Charge and discontinuing the 50% discount on the Usage Charge. The discount of one times the Base Charge is planned to also phase out in March 2026 as we originally intended. In addition, we intend to designate a three-hour time period during peak time and induce electricity discharge of the ESS during that period by giving more discount to

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the customers who made such discharge so they will increase supply during peak time. The second of the two discounts being rolled back is a 50% discount for customers who installed a renewable energy generator for their own industrial and general uses. We discontinued this discount in 2020 while only maintaining it for customers who are unable to sell their electricity in the market because of their small generation capacities (less than 10 kilowatts). The discount for such customers is planned to be discontinued by 2023.

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

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

Our current tariff schedule reflecting the adjustments outlined above and effective from April 1, 2022 is summarized below by the type of usage:

• Industrial . The monthly Base Charge varies from Won 5,550 per kilowatt to Won 9,810 per kilowatt depending on the type of contract, the voltage used and the rate option. The energy Usage Charge varies from Won 52.7 per kilowatt-hour to Won 196.5 per kilowatt-hour depending on the type of contract, the voltage used, the season, the time of day and the rate option.

• Commercial . The monthly Base Charge varies from Won 6,160 per kilowatt to Won 9,810 per kilowatt depending on the type of contract, the voltage used and the rate option. The energy Usage Charge varies from Won 53.6 per kilowatt-hour to Won 196.5 per kilowatt-hour depending on the type of contract, the voltage used, the season, the time of day and the rate option.

• Residential . The monthly Base Charge varies from Won 910 for electricity usage of less than 200 kilowatt hours to Won 7,300 for electricity usage in excess of 400 kilowatt hours. During the months of July and August each year, the usage ceiling for the first two tiers of rates is increased from 200 kilowatts to 300 kilowatts for the first tier and from 400 kilowatts to 450 kilowatts for the second tier. Residential tariff also includes an energy Usage Charge ranging from Won 93.2 to Won 280.5 per kilowatt-hour for electricity usage depending on the amount of usage and voltage. During the peak usage periods during summer and winter, namely the months of July and August and December to February, a higher energy Usage Charge of Won 709.4 per kilowatt-hour applies to residential consumers whose monthly electricity consumption exceeds 1,000 kilowatts hour. In accordance with the new tariff system, residents may also opt for our new seasonal and hourly tariff schedule as an alternative. Under the new schedule, the monthly Base Charge is Won 4,310 per kilowatt. The Usage Charge varies from Won 99.0 per kilowatt-hour to Won 193.7 per kilowatt-hour depending on season and time of the day.

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• Educational . The monthly Base Charge varies from Won 5,230 per kilowatt to Won 6,980 per kilowatt depending on the voltage used and the rate option. The energy Usage Charge varies from Won 43.7 per kilowatt-hour to Won 160.3 per kilowatt-hour depending on the voltage used, the season and the rate option.

• Agricultural . The monthly Base Charge varies from Won 360 per kilowatt to Won 1,210 per kilowatt depending on the type of usage. The energy Usage Charge varies from Won 21.5 per kilowatt-hour to Won 41.8 per kilowatt-hour depending on the type of contract, the voltage used and the season.

• Street-lighting . The monthly Base Charge is Won 6,290 per kilowatt and the energy Usage Charge is Won 85.8 per kilowatt-hour. For electricity capacity of less than 1 kilowatt or for places where the installation of the electricity meter is difficult, a fixed rate of Won 37.5 per watt applies, with the minimum monthly charge of Won 1,220.

In 2001, as part of implementing the Restructuring Plan, the Ministry of Trade, Industry and Energy established the Electric Power Industry Basis Fund to enable the Government to take over certain public services previously performed by us. In 2021, 3.7% of the tariff we collected from our customers was transferred to this fund prior to recognizing our sales revenue.

Power Development Strategy

We and our generation subsidiaries make plans for expanding or upgrading our generation capacity based on the Basic Plan, which is generally revised and announced every two years by the Government. In December 2020, the Government announced the Ninth Basic Plan which is more environmentally focused than the Eighth Basic Plan and effective for the period from 2020 to 2034. The Ninth Basic Plan focuses on, among other things, accelerating transition to an

eco-friendly

power source. The Ninth Basic Plan focuses on, among other things, (i) decreasing the reliance on nuclear and coal-based supply sources, (ii) converting retired coal-fired power plants into

LNG-fired

ones for stable power supply and (iii) accelerating the use expansion of renewable energies in light of the Green New Deal initiative of the Korean Government. Furthermore, the Ninth Basic Plan includes the following specific measures: (i) thirty decrepit coal-fired power plants and eleven nuclear power plants will be retired, and, as a result, coal and nuclear generation capacities will be reduced to 29 gigawatts and 19.4 gigawatts respectively by 2034, (ii) twenty-four out of thirty decrepit coal-fired power plants will be retired, the total generation capacity for which is 12.7 gigawatts, and shall be converted into using LNG instead, and (iii) domestic renewable energy generation capacity will be expanded by 77.8 gigawatts by 2034 in accordance with the Green New Deal initiative of the Korean Government.

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

value-add

for traditional energy industries and maintaining a core energy ecosystem for nuclear power plants; and (v) improving the energy, gas and heat market systems to facilitate the national energy conversion and building platforms based on big data to foster creation of new energy industries.

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

Capital Investment Program

The table below sets forth, for each of the years ended December 31, 2019, 2020 and 2021, the amounts of capital expenditures for the construction of generation, transmission and distribution facilities.

2019		2020		2021
(In billions of Won)
W	15,795	W	15,485	W	13,964

The table below sets forth the currently estimated installed capacity for new or expanded generation units to be completed by our generation subsidiaries in each year from 2022 to 2025 based on the Ninth Basic Plan, as amended.

Year	Number of Units	Type of Units	Total Installed Capacity
			(Megawatts)
2022	1	Nuclear power		1,400
	36	Renewables		186
2023	1	Nuclear power		1,400
	1	LNG-combined		495
	26	Renewables		300
2024	1	Nuclear power		1,400
	2	LNG-combined		1,158
	12	Renewables		211
2025	1	Nuclear power		1,400
	3	LNG-combined		1,500
	To be determined	Renewables		To be determined

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

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

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The table below sets forth, for the period from 2022 to 2024, the budgeted amounts of capital expenditures pursuant to our capital investment program, which primarily consist of budgets for the construction of generation, transmission and distribution facilities and, to a lesser extent, renewable energy generation and new energy industry projects.The budgeted amounts may vary from the actual amounts of capital expenditures for a variety of reasons, including, among others, the implementation of the Ninth Basic Plan currently in place, changes in the number of units to be constructed, the actual timing of such construction, changes in rates of exchange between the Won and foreign currencies and changes in interest rates.

	2022		2023		2024		Total
	(in billions of Won)
Generation (1) :
Nuclear	W	3,141	W	2,851	W	2,252	W	8,244
Thermal		3,392		3,544		4.169		11,105
Renewables and others		969		1,237		1,184		3,390
Sub-total		7,502		7,632		7,605		22,739
Transmission and Distribution:
Transmission		2,794		2,954		3,028		8,776
Distribution		3,613		3,933		3,987		11,533
Sub-total		6,407		6,887		7,015		20,809
Others (2)		1,451		1,653		1,513		4,617
Total	W	15,360	W	16,172	W	16,133	W	47,665

Notes:

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

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

In January 2016, the Ministry of Trade, Industry and Energy announced an initiative to promote the new energy industry by creating the New Energy Industry Fund, which is made up of funds sponsored by Government-affiliated energy companies. We contributed Won 500 billion to the funds in 2016. The purpose of these funds is to invest in substantially all frontiers of the new energy industry, including renewable energy, energy storage systems, electric vehicles,

small-sized

self-sustaining electricity generation grids known as “micro-grids”, among others, as well as invest in

start-up

companies, ventures, small- to

medium-sized

enterprise and project businesses that engage in these businesses but have not previously attracted sufficient capital from the private sector.

Furthermore, as a measure to address the high level of particulate matter pollution, in October 2018, the Government introduced a pilot regulation to lower the output of 35 coal-fired generation units to approximately 80% of their capacity that emit more than a certain amount of particulate matter. The regulation was formally implemented in January 2019, targeting 40 coal-fired power plants with high emissions of particulate matter. From March to June 2019, the scope expanded to cover 60 units in total. In addition, coal-fired generation units originally scheduled for preventive maintenance during the second half of 2019 were required to undertake such maintenance earlier in the spring of 2019. In November 2019, the Government pursued a reduction of coal-fired generation units in order to implement the Special Measures to Respond to the High Concentration Period (December to March) of Particulate Matter. We plan to continue to participate in the effort to reduce the particulate matter emissions from coal-fired generation units, not only during the winter but also during the spring. For example, from December 2021 to March 2022, up to 12 coal-fired generation units were shut down, with a maximum of 46 coal-fired generation units subject to a cap of 80% on the output within the remaining reserve capacity range. Additionally, the Government adjusted the schedule to close down two decrepit coal-fired generation units (Boryeong #1 and #2), which were shut down in December 2020. Also, other coal-fired generation units, Samcheonpo #1 and #2, were shut down in May 2021 and Honam #1 and #2 units in December

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2021. According to the Ninth Basic Plan announced in December 2020, the total coal-fired power plant capacity in 2030 will decrease to 32.6 gigawatts from 35.8 gigawatts in 2020, and its percentage of total power generation capacity will decrease to 18.9% from 28.1% in 2020. In addition, the Government will introduce a system that will limit the annual power generation of coal-fired power plants in line with its greenhouse gas reduction target. While such measures may be subject to change, we expect to incur significant costs of complying with such measures, including in connection with more stringent particulate matter pollution regulations, retrofitting and overall replacement of environmental facilities.

We have financed, and plan to finance in the future, our capital investment programs primarily through net cash provided by our operating activities and financing in the form of debt securities and loans from domestic financial institutions, and to a lesser extent, borrowings from overseas financial institutions. In addition, in order to prepare for potential liquidity shortage, we maintain several credit facilities with financial institutions in the aggregate amounts of Won 4,926 billion and US$1,645 million on a consolidated basis, the full amount of which was available as of December 31, 2021. We, KHNP, KOMIPO and KOWEPO also maintain global medium-term note programs in the aggregate amount of US$13 billion, of which approximately US$7 billion remains currently available for future drawdown. See also Item 5.B. “Liquidity and Capital Resources—Capital Resources.”

Environmental, Social, and Governance Programs

The Environmental Policy Basic Act, the Air Quality Preservation Act, the Water Quality Preservation Act, the Marine Pollution Prevention Act and the Waste Management Act, collectively referred in this annual report as the Environmental Acts, are the major laws of Korea that regulate atmospheric emissions, waste water, noise and other emissions from our facilities, including power generators and transmission and distribution units. Our existing facilities are currently in material compliance with the requirements of these environmental laws and international agreements, such as the United Nations Framework Convention on Climate Change, the Montreal Protocol on Substances that Deplete the Ozone Layer, the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal. In order to foster coordination among us and our generation subsidiaries in respect of climate change, we and 10 of our electricity-related subsidiaries formed the CEO Coordination Committee. Additionally, we are endeavoring to develop and implement greenhouse gas reduction strategy in line with the new climate regime set forth by the Paris Climate Agreement.

We continuously endeavor to contribute to sustainable growth (whether as an economy, a society or an ecosystem) by actively taking actions that befit our social responsibility as a corporate citizen in the energy industry. For example, in 2005, we became the first public company in Korea to join the United Nations Global Compact, an international voluntary initiative designed to hold a forum for corporations, United Nations agencies, labor and civic groups to promote reforms in economic, environmental and social policies. As part of our involvement with such initiative, we issue an annual report named the “Sustainability Report” to disclose our activities from the perspectives of economy, environment and society, in accordance with the reporting guidelines of the Global Reporting Initiative, the official collaborating center of the United Nations Environment Program that works in cooperation with United Nations Secretary General. In recognition of our efforts and achievements to reduce greenhouse gas emissions in response to global climate change, in May 2013, we obtained the Carbon Trust Standard certification issued by Carbon Trust, a British nonprofit organization with the goal of establishing a sustainable, low carbon economy. In 2015, we obtained recertification from Carbon Trust by satisfying even more rigorous evaluation criteria. We are also a participant of the Carbon Disclosure Project, an international organization that promotes transparency in informational disclosure of carbon management process, and from 2016 to 2021, we were recognized by the Carbon Disclosure Project and received honors in energy and utility sector. In 2021, pursuant to the Dow Jones Sustainability Indices, which measures management performance in terms of contribution to sustainability, we were selected as one of the notable companies in the Asia Pacific in the global electricity utility sector for eight years in a row from 2014. We recognize the interest in ESG within the investors’ community and are continuously pursuing safe and clean energy supply and distribution by reducing greenhouse gas emissions and enhancing our ability to respond to

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climate change, the details of such efforts provided through periodic sustainability reports. In addition, from 2020, we made detailed disclosures on our sustainability reports in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and the standards of the Sustainability Accounting Standards Board (SASB) regarding our activities in response to the global climate crisis and our efforts to transition into safe and clean energy sources. In October 2020, we made a statement that we intend to focus on

low-carbon

and

eco-friendly

overseas projects, such as new renewable energy and combined gas power generation, and not pursue new projects in coal-fired power plants. For those overseas coal-fired power plant projects we are already engaged in, we intend to work on those in an environment-friendly way by applying more stringent environmental standards than the international standards. We established an Environment, Social and Governance (“ESG”) Committee in our board of directors in December 2020 to reinforce

ESG-based

management system and to ensure continuous performance in this area. Our ESG Committee is charged with resolving major management issues related to ESG, establishing ESG management strategies and business plans and checking on the overall direction of sustainable management. In addition to the ESG committee, we established an advisory subcommittee within our ESG Committee. The subcommittee coordinates closely with the ESG Committee to strategically address more complicated and diverse ESG issues we are facing. All of our generation subsidiaries also established ESG Committee composed mainly of

non-standing

directors. Furthermore, we and our generation subsidiaries issued green bonds in 2019, 2020 and 2021, total issuance with the principal amount of US$800 million, US$800 million, and US$750 million respectively, to expand domestic and overseas renewable energy businesses and renewable energy related facilities. We and our generation subsidiaries declared the carbon-neutrality vision called “ZERO for Green” in November 2021. The slogans for the vision include (i) “Zero Emission” of carbon in the power generation sector through bold transition to carbon-free power sources such as renewable energy and hydrogen; (ii) “Reliable Energy” to ensure stable supply to clean electricity to consumers through preemptive measures and optimal operation of the power grid; and (iii) “On Time” to secure core technology for carbon neutrality in a timely manner by dramatically expanding research and development investment. Also, in December 2021, we and our generation subsidiaries established the Carbon Neutrality Promotion Committee composed of our management and external experts to establish Company-wide strategies for carbon neutrality and to strengthen internal and external communication.

The table below sets forth the number of emission control equipment installed at thermal power plants by our generation subsidiaries as of December 31, 2021.

	KOSEP		KOMIPO		KOWEPO		KOSPO		EWP
Flue Gas Desulfurization System		14		13		10		10		13
Selective Non-catalytic Reduction System		1		—		1		—		5
Selective Catalytic Reduction System		24		25		19		26		27
Electrostatic Precipitation System		16		15		10		12		15
Low NO2 Combustion System		22		402		27		34		25
Total		77		455		67		82		85

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

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phase (2018 to 2020), during which 97% of the greenhouse gas emission allowances were allocated free of charge, with 3% allocated through an auction. During the third phase (2021 to 2025), the Government expanded the scale of the system with aggressive greenhouse gas emission reduction targets and allocating 10% of the greenhouse gas emission allowances through an auction.

In December 2016, the Government announced the Climate Change Response Initiatives and the 2030 National Greenhouse Gas Reduction Roadmap, which set forth the greenhouse gas emission trading system as one of the primary means to reach the emission and greenhouse gas reduction targets of the policies. According to the Framework Act on Carbon Neutral and Green Growth to Cope with Climate Crisis and the latest figures of Nationally Determined Contributions (NDC) announced by the Government, the target level in 2030 is 436.6 million tons and represents 40% reduction as compared to the level in 2018, and the target level for the electricity conversion sector as a whole which we are the part of is 149.9 million tons and represents 44.4% reduction. In October 2021, the carbon neutrality committee set up by the Government deliberated and confirmed the two 2050 carbon neutrality scenarios, all of which aim to achieve

net-zero

domestic carbon dioxide emissions by 2050. Scenario A will completely suspend thermal power generation, while scenario B will actively utilize technologies such as carbon capture, utilization and storage (CCUS) while allowing some thermal power generation to continue.

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

COVID-19,

and, as of March 31, 2022, the price has been formed in the range of Won 23,000 per ton.

The table below sets forth the amount of annual emission from all generating facilities of our generation subsidiaries for the periods indicated. The amount of CO

2

emissions is expected to decrease in the long-term, principally due to an increased use of LNG on account of the fact that 24 coal-fired power plants with total capacity of 12.7 gigawatts are scheduled to be converted into

LNG-fired

power plants before the end of 2034, an increased use of renewable energy and the implementation of the greenhouse gas emission trading system.

Year (1)	SOx (g/MWh)		NOx (g/MWh)		TSP (2) (g/MWh)		CO 2 (kg/MWh)
2017		138		177		7		506
2018		120		146		7		516
2019		92		118		6		494
2020		61		77		4		445

Notes:

(1) The amounts of annual SOx, NOx and TSP emission for 2020 are expected to be determined by the end of 2022 and CO 2 emission in June 2022.

(2) “TSP” means Total Suspended Particles.

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

In order to comply with the current and expected environmental standards and address related legal and social concerns, we intend to continue to install additional equipment, make related capital expenditures and undertake several environment-friendly measures to foster community goodwill. For example, under the Persistent Organic Pollutants Management Act enacted in 2007, we are required to remove polychlorinated biphenyl, or PCB, a toxin, from the insulating oil of our transformers by 2025. In addition, when constructing certain large new transmission and distribution facilities, we assess and disclose their environmental impact at the

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planning stage of such construction, and we consult with local residents, environmental groups and technical experts to generate community support for such projects. We exercise additional caution in cases where such facilities are constructed near ecologically sensitive areas such as wetlands or preservation areas. We also make reasonable efforts to minimize any negative environmental impact, for example, by using more environment-friendly technology and hardware. Additionally, we also undertake measures to minimize losses during the transmission and distribution process by making our power distribution network more energy-efficient in terms of loss of power, as well as to lower consumption of energy, water and other natural resources. Furthermore, we and our subsidiaries acquired the ISO 14001 certification, an environmental management system widely adopted internationally, in 2007 and have made it a high priority to make our electricity generation and distribution more environment-friendly. In 2014, we were awarded the presidential award for environmental contributions as a corporate citizen, after scoring the highest among 102 corporations that competed for the award. In order to encourage the implementation of environment-friendly measures by other corporations and enhance environmental awareness at a social level, we have been disclosing our environment-related activities and achievements to the public through the Environment Information System managed by the Ministry of Environment since 2012.

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

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

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

The following table sets forth the generation capacity and generation volume in 2021 of our generation facilities that are powered by renewable energy sources.

	Generation Capacity (megawatts)			Generation Volume (gigawatt-hours)
Hydraulic Power (1)		659			1,079
Wind Power		168			195
Solar Energy		329			493
Fuel Cells		305			1,993
Others		1,051			5,660
Subtotal		2,512			9,420
As percentage of total (2)		3.05	%		2.35	%

Notes:

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

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

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

	2022			2023			2024			2025			2026
Target Percentage under Renewable Portfolio Standard		12.5	%		14.5	%		17.0	%		20.5	%		25.0	%

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

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

Furthermore, under the new electricity rate structure effected by the Government effective January 1, 2017, a temporary rate discount will apply in the case of investments in environment-friendly facilities such as energy storage systems, renewable energy and electric cars. While the initial temporary rate discount had applied between 2017 and 2019, it was extended until 2020. Starting in January 2021, we rolled back the discount for energy storage systems by decreasing it from three times the Base Charge to one times the Base Charge and discontinuing the 50% discount on the Usage Charge. The discount of one times the Base Charge is planned to also phase out in March 2026 as we originally intended. In addition, we intend to designate a three-hour time period during peak time and induce discharge during that period by giving more discount benefits to the customers. The second of the two discounts being rolled back is a 50% discount for customers who installed a renewable energy generator for their own industrial and general uses. We originally introduced this discount to encourage an increased supply of renewable energy. We discontinued this discount in 2020 while only maintaining it for customers who are unable to sell their electricity in the market because of their small generation capacities (less than 10 kilowatts). The discount for such customers is planned to be discontinued by 2023. Furthermore, in order to mitigate any potential burden on the consumers and shock to the electric car market, the temporary rate discount will be incrementally phased out by June 2022.

In line with the spread of RE100, a global campaign by companies around the world to cover 100% of their electricity use with renewable energy by 2050, the Government introduced its own version of RE100 that allows companies and other consumers to choose the energy sources from which their electricity is generated. In order

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for a domestic company to participate in RE100, it needs to enter into either a third-party PPA or a direct PPA, or general and industrial customers may also purchase renewable energy through us in a competitive bidding process and be issued with a certificate of use of renewable energy, which we refer to as the green premium system. On June 21, 2021, the Ministry of Trade, Industry and Energy announced the “Guidelines on the Transaction Contract for Renewable Energy Power Generation Power between Third Parties” that stipulated the method of transaction of renewable energy power among third parties. However, there is only one third-party PPA in process so far, and the electricity sales method of third-party PPA complies similarly with the existing method, which makes our performance unaffected. The relevant legislation for the direct PPA was enacted in the National Assembly in March 2021 and has been in force since October 2021. The Ministry of Trade, Industry and Energy announced that detailed guideline for direct PPA will be finalized and announced within 2022. If there is an expansion in the use of direct PPA, it may adversely affect our market share in electricity sales. The green premium system started in January 2021 and we, on behalf of Korea Energy Agency, are in charge of managing the bidding for renewable energy, receiving bid prices from winning companies, issuing a certificate of use of renewable energy to companies on a quarterly basis and receiving fees from Korea Energy Agency for our service.

Community Programs

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

low-income

residents.

Under the Act for Supporting the Communities Surrounding Power Plants, activities required to be undertaken under the Act are funded partly by the Electric Power Industry Basis Fund (see “—Sales and Customers—Electricity Rates”) and partly by KHNP as part of its budget. KHNP is required to make annual contributions to the affected local communities in an amount equal to Won 0.25 per kilowatt-hour of electricity generated by its nuclear generation units during the

one-year

period before the immediately preceding fiscal year, Won 5 million per thousand kilowatts of hydroelectric generation capacity and Won 0.5 million per thousand kilowatts of pumped-storage generation capacity.In addition, under Korean tax law, KHNP is required to pay local tax levied on its nuclear generation units in an amount equal to Won 1 (effective January 1, 2015, which reflects an increase from the previous Won 0.5 per kilowatt-hour of their generation volume in the affected areas) and Won 2 per 10 cubic meters of water used for hydroelectric generation.

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

Prior to the construction of a generation unit, our generation subsidiaries perform an environmental impact assessment which is designed to evaluate public hazards, damage to the environment and concerns of local residents. A report reflecting this evaluation and proposing measures to address the problems identified must be submitted to and approved by the Ministry of Trade, Industry and Energy following agreement with related administrative bodies, including the Ministry of Environment prior to the construction of the unit. Our generation

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subsidiaries are then required to implement the measures reflected in the approved report. Despite these activities, civic community groups may still oppose the construction and operation of generation units (including nuclear units), and such opposition could adversely impact our construction plans for generation units (including nuclear units) and have a material adverse effect on our business, results of operations and cash flow.

Upon relocation of our corporate headquarters in November 2014, we developed and established Bitgaram Energy Valley as a smart energy hub city in Gwangju and

Jeollanam-do,

to attract and facilitate the growth of

start-ups

and research institutions related to new energy industries while contributing to the local economy, balanced regional development and job creation. To achieve this goal, we provide funding, business networks and research and development assistance to companies which entered into investment contracts with us. As of December 31, 2021, we have signed agreements with 556 companies relating to investments in the Bitgaram Energy Valley, outperforming our target in 2021 of 550 companies. We are currently developing Bitgaram Energy Valley to establish a spontaneous industrial ecosystem, which will contribute to the power industry as well as the national economy.

Nuclear Safety

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

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

KHNP implements comprehensive programs to monitor, ensure and improve safety of nuclear power plants. In order to enhance nuclear safety through risk-informed assessment, KHNP conducts probabilistic safety assessments, including for low power-shutdown states, for all its nuclear power plants. In order to systematically verify nuclear safety and identify the potential areas for safety improvements, KHNP performs periodic safety reviews on a

10-year

frequency basis for all its operating units. These reviews have been completed for Kori #1, #2, #3, #4; Hanbit #1, #2, #3, #4, #5, #6; Wolsong #1, #2, #3, #4; and Hanul #1, #2, #3, #4, #5, #6 once or more. Reviews for Shin-Kori #1 and #2 are in progress. In order to enhance nuclear safety and plant performance, KHNP has established a maintenance effectiveness monitoring program based on the maintenance rules issued by the United States Nuclear Regulatory Commission, which covers all of KHNP’s nuclear power plants in commercial operation.

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

KHNP conducts various activities to enhance nuclear safety such as quality assurance audits and reviews by the KHNP Nuclear Review. KHNP maintains a close relationship with international nuclear organizations in order to enhance nuclear safety. KHNP invites international safety review teams such as the World Association of Nuclear Operators (“WANO”) Peer Review Team to its nuclear plants for purposes of meeting international standards for independent review of its facilities. KHNP actively exchanges relevant operational information and technical expertise with its peers in other countries. For example, KHNP conducted WANO

Pre-Startup

Peer Reviews for Shin-Hanul #1 unit in 2021. The recommendations and findings from this event were shared with KHNP’s other nuclear plants to implement improvements at such plants. In addition, KHNP has applied for the

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Operational Safety Review Team at the International Atomic Energy Agency to conduct a mission at Shin-Kori #3 and #4 units in the second half of 2022. The purpose of such application was to ensure that KHNP nuclear generation units reflect the global safety standards.

The average level of radiation dose per unit amounted to a relatively low level of 0.34

man-Sv

in 2021, which was substantially lower than the global average of 0.64

man-Sv/year

in 2021 as reported in the WANO performance indicator report.

In response to the damage to the nuclear facilities in Japan as a result of the tsunami and earthquake in March 2011, the Government conducted additional safety inspections on nuclear power plants by a group of experts from governmental authorities, civic groups and academia. As a result of such inspections, the Government required KHNP to perform 46 comprehensive safety improvement measures. As of December 31, 2021, KHNP has completed implementation of 45 measures and will implement the one remaining measure by 2024. The Government also established the Nuclear Safety & Security Commission in October 2011 for neutral and independent safety appraisals. KHNP developed ten additional measures through benchmarking of overseas cases and internal analysis of current operations. As of December 31, 2021, KHNP has completed implementation of nine measures and will implement the one remaining measure by 2023.

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

(Shin-Kori

#5 and #6), the core facilities will be able to withstand a magnitude 7.4 earthquake.

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

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

on-site

SNFs storage facility on nuclear power plants before the operation of the intermediate storage facility.

In 2009, the Radioactive Waste Management Act (“RWMA”) was enacted in order to centralize management of the disposal of SNFs and LILW and enhance the security and efficiency of related management processes. The RWMA designates KORAD to manage the disposal of SNFs and LILW. Pursuant to the RWMA, the Government has established the Radioactive Waste Management Fund. The management expense for LILW is paid when LILW is transferred to KORAD, and the charge for SNFs is paid based on the quantity generated every quarter. LILW-related management costs and charges for SNFs are reviewed by the Ministry of Trade, Industry and Energy every two years. In December 2021, after the review by the committee composed of

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Government officials, KHNP, KORAD and experts in finance and accounting, LILW-related management costs were decreased while charges for SNFs remained the same. The change in LILW-related management costs caused a decrease in KHNP’s expenses relating to radioactive waste.

In addition, in February 2021, in accordance with the Government’s guidelines for strengthening the safety of nuclear power plants, the period for verifying seismic resilience of major equipment was extended. In light of the fact that forced efforts to shorten the process could endanger the workers, the construction period of Shin-Kori #5 and #6 units have been extended by twelve months and nine months to March 2024 and March 2025, respectively.

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

Decommissioning

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

KHNP has accumulated decommissioning costs as a liability since 1983. The decommissioning costs of nuclear facilities are defined by the Radioactive-Waste Management Act, which requires KHNP to credit annual appropriations separately. These costs are estimated based on studies conducted by the relevant committees, and are reviewed by the Ministry of Trade, Industry and Energy every two years. In 2021, the actual discount rates decreased and the decommissioning cost per unit increased. As of December 31, 2021, KHNP was required to accrue Won 22,496 billion for the costs of dismantling and decontaminating existing nuclear power plants, which consisted of dismantling costs of nuclear plants of Won 19,461 billion and dismantling costs of spent nuclear fuels and radioactive waste of Won 3,034 billion.

Overseas Activities

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

Throughout the years, we have sought to expand our project portfolio to include the construction and operation of conventional thermal generation units, nuclear generation units and renewable energy power plants, transmission and distribution and mining and development of fuel sources. While strategically important, we believe that our overseas activities, as currently being conducted, are not in the aggregate significant in terms of scope or amount compared to our domestic activities. In addition, a number of the overseas contracts currently being pursued are based on

non-binding

memoranda of understanding and the details of such projects may significantly change during the course of negotiating the definitive agreements. In October 2020, we made a statement that we intend to focus on

low-carbon

and

eco-friendly

overseas projects, such as new renewable energy and combined gas power generation, and not pursue new projects in coal-fired power plants. For those

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overseas coal-fired power plant projects we are already engaged in, we intend to work on those in an environment-friendly way by applying more stringent environmental standards than the international standards.

Below is a description of our major overseas projects.

Generation Projects

Nuclear Generation Projects

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

On October 20, 2016, in order to foster a long-term strategic partnership and stable management of the units’ post-construction we entered into an investment agreement with ENEC to jointly establish Barakah One PJSC, a special purpose company which will oversee the operation and management of the nuclear power plant currently being constructed in Barakah, UAE. Barakah One PJSC is mainly capitalized with loans in the amount of US$19.6 billion and equity of US$4.7 billion. We have an 18% equity interest in Barakah One PJSC, and also have an 18% equity interest in Nawah Energy Company, a subsidiary of ENEC, which will also be responsible for the operation and maintenance of the Barakah nuclear power plant. On December 20, 2018, the board of directors of KEPCO resolved to invest additional US$380 million in Barakah One PJSC. With the additional investment, KEPCO’s total capital investment amount in Barakah One PJSC is expected to be US$1.28 billion. KEPCO’s equity interest in the project is 18%, which remains unchanged. The total project cost of the construction and operation of the Barakah nuclear power plant is expected to be approximately US$29.5 billion. Barakah One PJSC successfully achieved the commercial operation of Unit #1 and #2 of Barakah nuclear power plant in April 2021 and March 2022 respectively, with an expected plant life span of 60 years. Unit #3 completed construction in 2021 and is preparing operation pending regulatory approval, while Unit #4 will conduct hot functional testing later this year. The commercial operation of Unit #3 and #4 is projected to be consecutively achieved between 2023 and 2025. Actual capital contribution is currently scheduled to be made in 2025.

Non-nuclear

Generation Projects

We are currently engaged in three major power projects in the Philippines: (i) a “build, operate and transfer” of a

1,200-megawatt

combined-cycle power plant project in Ilijan, of which an energy conversion agreement with National Power Corporation (“NPC”) was entered into in November 1997. Construction of this project was completed in June 2002 and is being operated by us until 2022. The project cost of the Ilijan project was US$721 million, for which project finance on a limited recourse basis was provided), (ii) ownership of a 39.96% equity interest in SPC Power Corporation, an independent power producer, and a 39.96% equity interest in two distribution companies in the Philippines, and (iii) a “build, operate and own” of a

200-megawatt

CFBC coal power plant in Cebu whose construction and was completed in May 2011, followed by operation thereof until 2036. The project cost of the Cebu project was US$451 million, for which project financing on a limited recourse basis was provided.

In April 2007, we formed a limited partnership with Shanxi International Electricity Group and Deutsche Bank in China to develop and operate power projects in Shanxi province, China, which was approved by the

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Chinese government. The total capital investment in these projects amounted to US$1.33 billion, of which our capital investment was US$450 million. We expect to participate in the operation of the project for a period of 50 years ending 2057. The total capacity of these projects is 9,292 megawatts and our equity interest in the partnership is 34%.

In July 2008, a consortium consisting of us and Xenel of Saudi Arabia won the bid to “build, own and operate” a

gas-fired

power plant with installed capacity of 373 megawatts in Al Qatrana, near Amman, and we entered into definitive agreements in October 2009. Construction of this project was completed in December 2011, and the plant is currently in operation and will be operated until 2035. The total project cost was US$461 million, of which the consortium made an equity contribution of US$143 million and the remainder was funded with debt financing. We and Xenel own 80:20 equity interests in the project, respectively.

In December 2008, we formed a consortium with ACWA Power International of Saudi Arabia and submitted a bid for the 1,204 megawatts

oil-fired

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

In August 2010, we led a consortium and won the bid to “build, own and operate” the

433-megawatt

Norte II

gas-fueled

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

In October 2010, a consortium including us was selected by Abu Dhabi Water & Electricity Authority (“ADWEA”), a

state-run

utilities provider in the UAE, as the preferred bidder in an international bidding for the construction and operation of the combined-cycle natural

gas-fired

electricity generation facilities in Shuweihat, UAE with aggregate capacity of 1,600 megawatts. Construction was completed in July 2014 and we will participate in the operation of the plant until 2039. The total project cost was approximately US$1.4 billion, of which 20% was financed through equity investments by the consortium members and the remaining 80% through debt financing.

In January 2012, a consortium consisting of us, Mitsubishi Corporation and Wartsila Development & Financial Services of Finland was selected by National Electric Power Corporation, a

state-run

electricity provider in Jordan, to construct and operate a

573-megawatt

diesel engine power project in Al Manakher. Construction of this project was completed in October 2014 and the plant is currently in operation and will be operated until 2039. The total project cost was approximately US$760 million, of which the consortium made an equity contribution of approximately US$190 million and the remainder was funded with debt financing.

In March 2013, a consortium consisting of us and Marubeni, a Japanese corporation, was selected by the Ministry of Industry and Trade of Vietnam for the construction and operation of a 1,200 megawatts coal-fired power plant in Thanh Hoa province, Vietnam. We started construction in July 2018 and will complete completion by July 2022, followed by operation for 25 years. The total project cost is expected to be US$2.5 billion, of which 24% will be funded by equity contribution and the remaining 76% by debt financing. The share capital of the special purpose entity in charge of this project is US$568 million, and we, Marubeni, and Tohoku Power hold 50%, 40%, and 10% equity interest in the consortium, respectively.

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On January 2, 2020, Pulau Indah Power Plant, a special purpose company in which KEPCO owned 25% shares, received a Letter of Notification to develop a 1,200 megawatts combined-cycle

gas-fired

power plant from Energy Commission, the host entity of the project. The construction started in December 2020 and is expected to be completed by January 2024. The total project cost is expected to be approximately US$766 million, and we expect to invest approximately US$39 million for the equity interest. We signed a PPA in August 2020 with Tenaga Nasional Berhad, which will be effective from January 2024 for a period of 21 years.

On November 5, 2019, we entered into an Energy Conversion Agreement comprising of a PPA with the Guam Power Authority for a term of 25 years to construct and operate Ukudu

gas-fired

power plants in Guam, United States, including 198 megawatts gas-fired power plant, 39 megawatts

back-up

diesel generator and 25 megawatts energy storage facility. KEPCO and Korea East-West Power Co., Ltd., hold 60% and 40% shares in the project, respectively. The total project cost is expected to be approximately US$765 million, and we expect to invest US$92 million for the equity interest. The construction of the project is expected to commence in 2022 upon approval of the environmental impact assessment and the issuance of relevant permits. The power station is expected to commence commercial operation in 2024. The completed power plants are expected to be operated as base load generators, replacing the existing old heavy fuel power plants in Guam.

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

25-year

PPA with PLN.

On October 5, 2020, our board of directors approved our plan to invest US$2.05 million in the construction of Vung Ang 2 coal-fired power plant in Vietnam in exchange for 40% shares in the project. The new plant will be located in Ha Tinh Province, Vietnam, adjacent to Vung Ang 1 power plant and will consist of two units with 600 megawatts generation capacity each. We started the construction in October 2021 and the power plant is expected to be completed in 2025. Diamond Generating Asia, a subsidiary of Mitsubishi Corporation, a Japanese corporation, is the main sponsor of this project. We will operate this plant together with other

co-investors

for 25 years.

Exploration and Production Projects

In order to secure a more reliable supply of fuel for power generation and hedge against fluctuations in fuel price, from 2007 to 2016, we pursued overseas exploration and production projects, including five bituminous coal projects and five uranium projects involving investments of approximately Won 1.4 trillion. However, pursuant to the Government’s Proposal for Adjustment of Functions of Public Institutions (Energy Sector) announced in June 2016, as of December 31, 2016, except for the Bylong project described below, we transferred all our assets and liabilities for our overseas resource business to our six generation subsidiaries, which are the

end-consumers

of fuels and are therefore expected to more responsively manage these projects. The amount of net assets that we transferred to our generation subsidiaries as of December 31, 2016 was Won 622 billion.

One exception to the transfers on such date was our 90% equity interest in KEPCO Bylong Pty Ltd (“KEPCO Bylong”). We transferred 10% of our equity interest in the KEPCO Bylong to our five

non-nuclear

generation subsidiaries as of December 31, 2016. In July 2015, KEPCO Bylong lodged a development application to the State Government of New South Wales (the “NSW”) of Australia. In September 2019, Independent Planning Commission of the NSW, which is the governmental authority with the approval power, refused to accept our Bylong development application. After many rounds of legal proceedings, our request for

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appeal to the High Court of Australia was finally rejected in February 2022. As of December 31, 2021, we have invested approximately Won 810 billion in the Bylong project, and, as of December 31, 2021, the impairment loss in connection with the Bylong project accrued to approximately Won 540 billion. We are currently reviewing various alternative plans to minimize our business losses.

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

Renewable Energy, Transmission & Distribution Projects

Our overseas renewable energy and transmission & distribution projects are currently insignificant relative to our total overseas activities and our generation activities. However, we expect the portion of renewable energy projects to increase in the future as we seek to penetrate the overseas renewable energy market, diversify our businesses and actively address climate change. We expect to further diversify our business in the renewable energy sector to also include smart transmission and distribution facilities, smart grids and utilization of new energy related technologies.

Since 2005, joint ventures between us and China Datang Corporation of the People’s Republic of China have built and operated a number of wind farms in Inner Mongolia, Liaoning and Gansu provinces. We own 40% of these joint ventures, whose equity in the aggregate amount is approximately US$450 million. The projects are funded

one-third

by equity contributions and

two-thirds

by debt financing. As of December 31, 2021, the joint venture operated 22 wind farms with a total capacity of 1,017 megawatts and a

7-megawatt

photovoltaic power station.

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

In June 2015, we entered into a memorandum of understanding with Energy Product, a Japanese local developer, to build, own and operate photovoltaic power station with a capacity of 28 megawatts, together with a 13.7 megawatts-hour energy storage system, in Chitose, Hokkaido prefecture in Japan. The power station, in which we own 80.1% interest, started commercial operation in July 2017. Total project cost is approximately JPY 10.9 billion, of which 20% was financed through 80:20 equity investments by us and EP. In July 2020, our 15.1% equity interest and whole equity interest of Energy Product, 19.9%, was sold to

NH-Amundi.

As a result, we now have 65% and

NH-Amundi

has 35% of the total equity interest.

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

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

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

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

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

In December 2021, a consortium comprising of us, Japan’s Kyushu Electric Power Co., Inc. and Électricité de France (EDF) has been nominated as the successful bidder for the

HVDC-VSC

subsea transmission system construction and operation project of UAE announced by the Abu Dhabi National Oil Company (“ADNOC”), and clinched the deal through an international tender against numerous competitors. This project will supply power for the offshore production operations of ADNOC, by constructing and operating for 35 years a subsea transmission system along 2 routes with a total length of 259 kilometers. This mega project is worth $3.6 billion and is expected to generate a stable profit through a long-term transmission agreement with the Procurer for 35 years.

North Korea

Gaeseong Industrial Complex

Since 2005, we have provided electricity to the industrial complex located in Gaeseong, North Korea, which was established pursuant to an agreement made during the summit meeting of the two Koreas in June 2000. The Gaeseong Industrial Complex is the largest economic project between the two Koreas and is designed to combine the Republic’s capital and entrepreneurial expertise with the availability of land and labor of North Korea. In March 2005, we built a 22.9 kilovolt distribution line from Munsan substation in Paju,

Gyeonggi-do

to the Gaeseong Industrial Complex and became the first to supply electricity to pilot zones such as ShinWon Ebenezer. In April 2006, we started to construct a 154 kilovolt, 16 kilometer transmission line connecting Munsan substation to the Gaeseong Industrial Complex as well as Pyunghwa substation in the complex and began operations in May 2007.

At the end of 2015, we supplied electricity to 254 units, including administrative agencies, support facilities and resident corporations, using a tariff structure identical to that of South Korea. However, we suspended power transmission to the Gaeseong Industrial Complex since February 11, 2016 following the Government’s decision to halt operations of the industrial complex to impede North Korea’s utilization of funds from the industrial complex to finance its nuclear and missile programs. On August 14, 2018, we resumed power transmission to the facilities that are part of the Joint Liaison Office between South and North Korea but we suspended it again on June 16, 2020 in compliance with the request by the Ministry of Unification of the Korean Government. It has been reported in the media that the parties have now temporarily closed the Joint Liaison Office in accordance with the request by North Korea to stop the spread of

COVID-19

and all KEPCO personnel have withdrawn from the facilities without resuming power transmission since June 16, 2020.

As of December 31, 2021, the book value of our facility located at the Gaeseong Industrial Complex was Won 14.5 billion. For the year ended December 31, 2021, the amount of trade receivables from the companies residing in Gaeseong Industrial Complex was Won 2.9 billion. It is currently uncertain if we can exercise the

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property rights for our facility in the Gaeseong Industrial Complex. No assurance can be given that we will not experience any material losses as a result of the suspension of this project or failure of the project as a result of a breakdown or escalation of hostilities in the relationship between the Republic and North Korea. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy—Tensions with North Korea could have an adverse effect on us and the market value of our shares.”

Insurance

We and our generation subsidiaries carry insurance covering against certain risks, including fire, in respect of key assets, including buildings, equipment, machinery,

construction-in-progress

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

Substantial liability may result from the operations of our nuclear generation units, the use and handling of nuclear fuel and possible radioactive emissions associated with such nuclear fuel. KHNP maintains property and liability insurance against risks of its business to the extent required by the related law and regulations or considered as appropriate and otherwise self-insures against such risks. KHNP carries insurance for its generation units against certain risks, including property damage, nuclear fuel transportation and liability insurance for personal injury and property damage. KHNP carries property damage insurance covering up to US$1 billion per accident for all properties within its plant complexes, which includes property insurance coverage for acts of terrorism up to US$300 million and for breakdown of machinery up to US$300 million. In addition to the insurance on operating nuclear power generation units, KHNP has construction insurance for Shin-Kori #5 and #6 and Shin-Hanul #1 and #2. KHNP maintains nuclear liability insurance for personal injury and third-party property damage for coverage of up to 300 million Special Drawing Rights, or SDRs, which amounts to approximately US$419.9 million, at the rate of 1 SDR = US$1.399593 as posted on the Internet homepage of the International Monetary Fund on December 23, 2021 per plant complex, for a total coverage of 1.8 billion SDRs. KHNP is also the beneficiary of a government indemnity with respect to such risks for damage claims of up to Won 300 million SDRs per nuclear plant complex, for a total coverage of 1.8 billion SDRs. Under the Nuclear Damage Compensation Act of 1969, as amended, KHNP is liable only up to 900 million SDRs, per single accident per plant complex; provided that such limitation will not apply where KHNP intentionally causes harm or knowingly fails to prevent the harm from occurring. KHNP will receive the Government’s support, subject to the approval of the National Assembly, if (i) the damages exceed the insurance coverage amount of 300 million SDRs and (ii) the Government deems such support to be necessary for the purposes of protecting damaged persons and supporting the development of nuclear energy business. KHNP carries insurance for its generation units and nuclear fuel transportation, and we believe that the level of insurance is generally adequate and is in compliance with relevant laws and regulations. In addition, KHNP is the beneficiary of government indemnity which covers a portion of liability in excess of the insurance. However, such insurance is limited in terms of amount and scope of coverage and does not cover all types or amounts of losses which could arise in connection with the ownership and operation of nuclear plants. Accordingly, material adverse financial consequences could result from a serious accident or a natural disaster to the extent it is neither insured nor covered by the government indemnity. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The amount and scope of coverage of our insurance are limited.”

Competition

As of December 31, 2021, we and our generation subsidiaries owned approximately 61.5% of the total electricity generation capacity in Korea (excluding plants generating electricity for private or emergency use). New entrants to the electricity business will erode our market share and create significant competition, which could have a material adverse impact on our financial condition and results of operations.

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In particular, we compete with independent power producers with respect to electricity generation. The independent power producers accounted for 30.6% of total power generation in 2021 and 38.5% of total generation capacity as of December 31, 2021. As of December 31, 2021, there were 33 independent power producers in Korea, excluding renewable energy producers. Private enterprises became permitted to own and operate coal-fired power plants in Korea only after the Ministry of Trade, Industry and Energy approved plans for independent power producers to construct coal-fired power plants under the Sixth Basic Plan announced in February 2013. Under the Ninth Basic Plan announced in December 2020, six coal-fired power plants are planned to be constructed by independent power producers by 2024. Two of the six coal-fired power plants planned for construction were completed in 2021, one is expected to be completed in 2022, followed by two in 2023, and one in 2024. While it remains to be seen whether construction of these generation units will be completed as scheduled, if these units were to be completed as scheduled and/or independent power producers are permitted to build additional generation capacity (whether coal-fired or not), our market share in Korea may decrease.

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

In addition, under the Community Energy System adopted by the Government in 2004, a minimal amount of electricity is supplied directly to consumers on a localized basis by independent power producers outside the cost-based pool system. Such system is used by our generation subsidiaries and most independent power producers to distribute electricity nationwide. The purpose of this system is to geographically decentralize electricity supply and thereby reduce transmission losses and improve the efficiency of energy use. These entities do not supply electricity on a national level but are licensed to supply electricity on a limited basis to their respective districts under the Community Energy System. As of March 31, 2022, the aggregate generation capacity of suppliers participating in the Community Energy System amounted to less than 1% of that of our generation subsidiaries in the aggregate. We currently do not expect the Community Energy System to be widely adopted, especially in light of the significant level of capital expenditure required for such direct supply. However, if the Community Energy System is widely adopted, it may erode our currently dominant market position in the generation and distribution of electricity in Korea and may have a material adverse effect on our business, results of operations and financial condition.

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

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

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

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

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

gas-fired

combined heating and power plants.

Regulation

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

1. development of electric power resources;

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

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

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

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

6. businesses incidental to items 1 through 5;

7. Development and operation of certain real estate held by us to the extent that:

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

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

8. other activities entrusted by the Government.

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

• first, to make up any accumulated deficit;

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

• third, to pay dividends to shareholders;

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

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

• sixth, to carry forward surplus profit.

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As of December 31, 2021, the legal reserve was Won 1,605 billion and the voluntary reserve was Won 33,283 billion, which consisted of reserve for business expansion of Won 27,465 billion, reserve for investment in social overhead capital of Won 5,277 billion, reserve for research and human development of Won 330 billion and reserve for equalizing dividends of Won 210 billion.

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

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

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

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

Debt Reduction Program and Related Activities

In light of the general policy guideline of the Government for public institutions (including us and our generation subsidiaries) to reduce their respective overall debt levels, we and our generation subsidiaries have, in consultation with the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance. We set target

debt-to-equity

levels every year and undertook various programs to reduce debt and improve the overall financial stability, including disposing of

non-core

assets (such as

non-core

or loss-generating overseas operations and real property unrelated to operations), reducing costs and exploring alternative ways to generate additional revenue. In 2021, we adopted a new tariff system more aligned to our costs (including fuel cost pass-through adjustment) to lay the foundation for mid and long-term financial stability. See Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.” In addition, we are pursuing systematic cost management efforts by dividing the areas of cost in detail and reinforcing the concept of cost per unit.

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

Establishment of a University

In order to enhance the competitiveness of the national energy industry, cultivate high-quality talents to revitalize the Bitgaram Energy Valley, and secure a differentiated research platform to create a new energy market, we established a university in

Jeollanam-do

Province in the southwestern region of Korea in accordance with the Government’s five-year state management plan.

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

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

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

On August 8, 2019, our board of directors resolved to make an initial contribution of Won 60 billion for the promotion, initial operation and the design of the university campus, and the actual contribution was made in 2020. On March 24, 2021, a special law was passed in the National Assembly and finally enacted on April 1, 2021, that gives autonomy to the university and lays out the basis for direct financial support from the central government and the municipal government. On May 21, 2021, the legal entity of the university changed into special juristic person from school juristic person with the above law. On the same day, our board resolved to make an additional contribution of Won 64.5 billion to the university and Won 41.3 billion of such contribution was made in December 2021. The remaining Won 23.2 billion will be contributed by our generation subsidiaries in 2022 upon resolution by their board of directors. The total amount of contribution in 2022 and thereafter will be determined in discussion with the Government and the university but it is likely to be not greater than the total amount in 2021.

On March 2, 2022, the university, which is now called as Korea Institute of Energy Technology (“KENTECH”), had entrance ceremony and proclaimed its vision with congratulations from the President of Republic of Korea. KENTECH recruited a total of 107 students as its first students through a competitive admissions process, proving its recognition and appeal among students

.

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

Proposed Sale and Purchase of Certain Power Plants and Equity Interests

KEPCO Engineering & Construction Co., Inc.

Pursuant to the Third Phase of the Public Institution Reform Plan announced by the Government in August 2008, we conducted the initial public offering of Korea Engineering and Construction Co., Inc., or KEPCO E&C formerly known as Korea Power Engineering Co., Ltd., in December 2009 for gross proceeds to us of Won 165 billion, following which we owned 77.9% of KEPCO E&C’s shares. In furtherance of the Public Institution Reform Plan and to improve our financial profile, we sold our equity interests representing 3.1%, 4.0%, 4.5% and 0.54% of KEPCO E&C shares in November 2011, December 2013, December 2014 and December 2016, respectively, in each case to third party investors. We currently hold a 65.77% equity interest in KEPCO E&C.

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Korea Electric Power Industrial Development Co., Ltd.

In 2003, we privatized Korea Electric Power Industrial Development, or KEPID, formerly our wholly-owned subsidiary, by selling 51.0% of its equity interest to Korea Freedom Federation. Pursuant to the Fifth Phase of the Public Institution Reform Plan announced by the Government in 2009, we sold 20% of the KEPID shares through additional listing. Although we had originally planned to sell the remaining 29% as well, we are currently working on converting KEPID into a public institution to transition its non-permanent employees to permanent employees in light of the Government’s recent guideline promoting the transition of

non-permanent

employees to permanent employees in the public sector. Acquisition by us is essential for the designation of KEPID as a public institution by the Government. As a result, we and our five subsidiaries are now working on reacquiring the KEPID shares we previously sold.

Cyber Security

Recently, our activities have been subject to an increasing risk of cyber-attacks and information leakages, the nature of which is continually evolving. For example, in December 2014, KHNP became subject to a cyber terror incident. Hackers hacked into the computer network of former KHNP employees and threatened to shut down certain of KHNP’s nuclear plants. The hacking incident did not jeopardize our nuclear operation in any material respect and none of the stolen information was material to our nuclear operation or the national nuclear policy. In response to such incident, we and our subsidiaries have further bolstered anti-hacking and other preventive and remedial measures in relation to potential cyber terror.

In the past, cyber-attacks were mostly unspecified attacks, but the recent trend has been shifting towards more targeted and intelligent attacks, such as ransomware that encrypts a victim’s files, whereupon the attacker demands a ransom from the victim to restore access to the data upon payment. In particular,

non-face-to-face

business environment due to

COVID-19

has led to more sophisticated phishing

e-mail

attacks that impersonate service providers and acquaintances. In order to effectively respond to these cyber threats, we have established a cyber security management system and are continuously implementing prevention and response activities. In addition, specialized education and training are being conducted to foster cybersecurity experts, and the latest information protection system is being established and our cooperation with the Government is being strengthened. In accordance with laws and regulations, we have established and implemented a cybersecurity management system, and is receiving regular inspections from the Government on the prevention and response status against cyberattacks and threats.

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

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

Item 4.C. Organizational Structure

As of December 31, 2021, we have 153 subsidiaries, 90 associates and 96 joint ventures (not including any special purpose entities).

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Subsidiaries

Our wholly-owned six generation subsidiaries are KHNP, KOSEP, KOMIPO, KOWEPO, KOSPO and EWP. Our

non-generation

subsidiaries include KEPCO E&C, KEPCO KPS, KEPCO NF, and KEPCO KDN. For a full list of our subsidiaries, including foreign subsidiaries, and their respective jurisdiction of incorporation, please see Exhibit 8.1 attached to this annual report.

Associates and Joint Ventures

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

The table below sets forth each of our associates and joint ventures as of December 31, 2021 by name, the percentage of our shareholdings and their principal activities.

	Ownership (%)		Principal Activities
Associates:
Korea Gas Corporation (1)		20.47	Importing and wholesaling LNG
Korea Electric Power Industrial Development Co., Ltd.		29.00	Electricity metering and others
YTN Co., Ltd.		21.43	Broadcasting
Gangwon Wind Power Co., Ltd. (2)		15.00	Power generation
Hyundai Green Power Co., Ltd.		29.00	Power generation equipment consignment and operation service
Korea Power Exchange (3)		100.00	Management of power market and others
Taebaek Wind Power Co., Ltd.		25.00	Power generation
Taebaek Guinemi Wind Power Co., Ltd.		25.00	Power generation
Pyeongchang Wind Power Co., Ltd.		25.00	Power generation
Daeryun Power Co., Ltd. (2)		9.34	Power generation
Changjuk Wind Power Co., Ltd.		30.00	Power generation
KNH Solar Co., Ltd.		27.00	Power generation
SPC Power Corporation		38.00	Power generation
Gemeng International Energy Co., Ltd.		34.00	Power generation
PT. Cirebon Electric Power		27.50	Power generation
KNOC Nigerian East Oil Co., Ltd. (4)		14.63	Resources development
KNOC Nigerian West Oil Co., Ltd. (4)		14.63	Resources development
PT Wampu Electric Power		46.00	Power generation
PT. Bayan Resources TBK		20.00	Resources development
S-Power Co., Ltd.		49.00	Power generation
Pioneer Gas Power Limited		38.50	Power generation
Eurasia Energy Holdings		40.00	Power generation and resources development
Xe-Pian Xe-Namnoy Power Co., Ltd.		25.00	Power generation
PT. Mutiara Jawa		29.00	Manufacturing and operating floating coal terminal
Samcheok Eco Materials Co., Ltd. (5)		2.35	Recycling fly ashes
Noeul Green Energy Co., Ltd.		29.00	Power generation
Goseong Green Power Co., Ltd.		29.00	Power generation
Gangneung Eco Power Co., Ltd. (2)		1.61	Power generation
Shin Pyeongtaek Power Co., Ltd.		40.00	Power generation
Haeng Bok Do Si Photovoltaic Power Co., Ltd.		28.00	Power generation

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	Ownership (%)		Principal Activities
Dongducheon Dream Power Co., Ltd. (6)		33.61	Power generation
Jinbhuvish Power Generation Pvt. Ltd. (2)		5.16	Power generation
Daejung Offshore Wind Power Co., Ltd.		46.59	Power generation
GS Donghae Electric Power Co., Ltd.		34.00	Power generation
Daegu Photovoltaic Co., Ltd.		29.00	Power generation
Busan Green Energy Co., Ltd.		29.00	Power generation
Gunsan Bio Energy Co., Ltd. (2)		18.87	Power generation
Korea Electric Vehicle Charging Service (2)		17.50	Electric vehicle charge service
Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.)		28.98	Electric material agency
Korea Electric Power Corporation Fund (8)		98.09	Developing electric enterprises
Energy Infra Asset Management Co., Ltd. (2)		9.90	Asset management
Daegu clean Energy Co., Ltd.		28.00	Renewable power generation
Yaksu ESS Co., Ltd.		29.00	Installing ESS related equipment
Nepal Water & Energy Development Company Private Limited (8)		69.06	Construction and operation of utility plant
Gwangyang Green Energy Co., Ltd.		20.00	Power generation
PND Solar Co., Ltd.		29.00	Power generation
Hyundai Eco Energy Co., Ltd. (2)		19.00	Power generation
YeongGwang Yaksu Wind Electric Co., Ltd. (2)		9.63	Power generation
Green Energy Electricity Generation Co., Ltd.		29.00	Power generation
Korea Energy Solutions Co., Ltd.		20.00	R & D
ITR Co., Ltd.		20.00	R & D
Structure test network Co., Ltd.		20.00	Technical testing and consulting
Namjeongsusang Solar Power Operation Co., Ltd. (9)		15.00	Power generation
Indeck Niles Development, LLC (10)		56.25	Power generation
Indeck Niles Asset Management, LLC		33.33	Power generation
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1		49.00	Holding company
Suwon New Power Co., Ltd.		39.90	Power generation
KPGE Inc.		29.00	Power generation materials business
Gwangbaek Solar Power Investment Co., Ltd.		44.00	Power generation
Go deok Clean Energy Co., Ltd.		40.00	Fuel cell generation
SureDataLab Co., Ltd.		23.95	R & D
SEP Co., Ltd.		21.26	R & D
Hankook Electric Power Information Co., Ltd.		25.25	R & D
Tronix Co., Ltd.		20.00	R & D
O2&B Global Co., Ltd.		20.00	R & D
Muan Sunshine Solar Power Plant Co., Ltd.		20.00	Power generation
Bigeum Resident Photovoltaic Power Co., Ltd.		29.90	Power generation
Goesan Solar Park Co., Ltd.		29.00	Power generation
Saemangeum Heemang Photovoltaic Co., Ltd.		35.00	Power generation
Bitgoel Eco Energy Co., Ltd.		29.00	Power generation
Jeju Gimnyeong Wind Power Co., Ltd.		30.00	Power generation
Seoroseoro Sunny Power Plant Co., Ltd.		42.58	Power generation
Muan Solar Park Co., Ltd.		20.00	Power generation
YuDang Solar Co., Ltd.		20.00	Power generation
Anjwa Smart Farm & Solar City Co., Ltd.		20.00	Power generation
Daewon Green Energy Co., Ltd.		25.36	Power generation
G.GURU Co., Ltd.		24.65	R & D

88

	Ownership (%)		Principal Activities
UD4M Co., Ltd. (2)		12.50	R & D
Dongbu Highway Solar Co., Ltd.		20.00	Power generation
Seobu Highway Solar Co., Ltd.		20.00	Power generation
Korea Energy Data Co., Ltd.		29.37	R & D
Gangneung Sacheon Fuel Cell Co., Ltd. (7)		65.00	Power generation
Kosture Co., Ltd. (2)		0.26	Coal recycling business
Digital Innovation Growth Fund (7)		76.92	Holding company
Taebaek Gadeoksan Wind Power Co., Ltd. (18)		39.65	Power generation
Chuncheon Green Energy Co., Ltd. (7)		68.00	Power generation
Yeomsubong Wind Power Co., Ltd.		48.72	Power generation
Yeongyang Wind Power Corporation II		30.00	Power generation
Haeparang Energy Co., Ltd.		25.00	Power generation
Saemangeum Sebit Power Plant Co., Ltd. (7)		69.55	Power generation
Joint Ventures:
KEPCO-Uhde Inc. (11)		52.80	Power generation
Shuweihat Asia Power Investment B.V.		49.00	Holding company
Shuweihat Asia Operation & Maintenance Company (11)		55.00	Maintenance of utility plant
Waterbury Lake Uranium L.P.		33.10	Resources development
ASM-BG Investicii AD		50.00	Power generation
RES Technology AD		50.00	Power generation
KV Holdings, Inc.		40.00	Power generation
KEPCO SPC Power Corporation (11)		75.20	Construction and operation of utility plant
Gansu Datang Yumen Wind Power Co., Ltd.		40.00	Power generation
Datang Chifeng Renewable Power Co., Ltd.		40.00	Power generation
Datang KEPCO Chaoyang Renewable Power Co., Ltd.		40.00	Power generation
Rabigh Electricity Company		40.00	Power generation
Rabigh Operation & Maintenance Company Limited		40.00	Maintenance of utility plant
Jamaica Public Service Company Limited		40.00	Power generation
KW Nuclear Components Co., Ltd.		45.00	Manufacturing
Busan Shinho Solar Power Co., Ltd.		25.00	Power generation
Global Trade Of Power System Co., Ltd. (12)		29.00	Exporting products and technology of small or medium business by proxy
Expressway Solar-light Power Generation Co., Ltd. (12)		29.00	Power generation
Amman Asia Electric Power Company (11)		60.00	Power generation
KAPES, Inc. (11)		51.00	R & D
Honam Wind Power Co., Ltd.		29.00	Power generation
Korea Power Engineering Service Co., Ltd.		29.00	Construction and service
Chun-cheon Energy Co., Ltd.		29.90	Power generation
Yeonggwangbaeksu Wind Power Co., Ltd. (12)		15.00	Power generation
Nghi Son 2 Power LLC		50.00	Power generation
Kelar S.A. (11)		65.00	Power generation
PT. Tanjung Power Indonesia		35.00	Power generation
Incheon New Power Co., Ltd. (13)		29.00	Power generation
Seokmun Energy Co., Ltd.		29.00	Power generation
Daehan Wind Power PSC		50.00	Power generation
Barakah One Company (14)		18.00	Power generation

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	Ownership (%)		Principal Activities
Nawah Energy Company (14)		18.00	Operation of utility plant
Momentum		33.33	International thermonuclear experimental reactor construction management
Daegu Green Power Co., Ltd. (15)		29.00	Power generation
Yeonggwang Wind Power Co., Ltd.		46.00	Power generation
Chester Solar IV SpA		45.00	Power generation
Chester Solar V SpA		45.00	Power generation
Diego de Almagro Solar SpA		45.00	Power generation
South Jamaica Power Company Limited		20.00	Power generation
Daesan Green Energy Co., Ltd.		35.00	Power generation
RE Holiday Holdings LLC		50.00	Power generation
RE Pioneer Holdings LLC		50.00	Power generation
RE Barren Ridge 1 Holdings LLC		50.00	Power generation
RE Astoria 2 LandCo LLC		50.00	Power generation
RE Barren Ridge LandCo LLC		50.00	Power generation
Laurel SpA		45.00	Power generation
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd. (12)		12.37	Power generation
Chile Solar JV SpA		50.00	Power generation
Cheong-Song Noraesan Wind Power Co., Ltd.		29.01	Power generation
Chester Solar I SpA		45.00	Power generation
Solar Philippines Calatagan Corporation		38.00	Power generation
Saemangeum Solar Power Co., Ltd. (16)		81.00	Power generation
Chungsongmeon BongSan wind power Co., Ltd. (12)		29.00	Power generation
Jaeun Resident Wind Power Plant Co., Ltd.		29.00	Power generation
DE Energia SpA		49.00	Power generation
Dangjin Eco Power Co., Ltd.		34.00	Power generation
Haemodum Solar Co., Ltd.		49.00	Power generation
Yangyang Wind Power Co., Ltd.		50.00	Power generation
Horus Solar, S.A. De C.V. (17)		14.95	Renewable power generation
Recursos Solares PV De Mexico II, S.A. De C.V. (17)		14.95	Renewable power generation
Sunmex Renovables, S.A. De C.V. (17)		14.95	Renewable power generation
Stavro Holding II A.B.		20.00	Holding company
Solaseado Solar Power Co., Ltd.		38.90	Power generation
Yeongam Solar Power Co., Ltd. (12)		19.00	Power generation
Samsu Wind Power Co., Ltd. (12)		19.00	Power generation
Pulau Indah Power Plant Sdn. Bhd.		25.00	Power generation
Sam-Yang Photovoltaic Power Co., Ltd.		49.00	Power generation
NH-Amundi Global Infrastructure Investment Private Investment Trust 21		29.53	Holding company
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream (11)		90.00	Holding company
PT Barito Wahana Tenaga		30.61	Power generation
Cheongna Energy Co., Ltd. (16)		50.10	Generating and distributing vapor and hot/cold water
Naepo Green Energy Co., Ltd.		29.20	Power generation
Dayone Energy Co., Ltd. (19)		30.66	Power generation
OneEnergy Asia Limited		40.00	Power generation
KAS Investment I LLC		29.89	Holding company

90

	Ownership (%)		Principal Activities
KAS Investment II LLC		29.89	Holding company
Energyco Co., Ltd. (formerly, Energyco LLC)		29.00	Power generation
CAES, LLC		36.00	Holding company
Hapcheon Floating Photovoltaic Power Plant Inc. (12)		49.00	Power generation
Busan Industrial Solar Power Co., Ltd.		28.02	Power generation
Bitsolar Energy Co., Ltd.		27.10	Power generation
Pulau Indah O&M Sdn. Bhd. (20)		60.00	Power generation
Guadalupe Solar SpA (20)		60.00	Power generation
Omisan Wind Power Co., Ltd.		42.00	Power generation
Foresight Iberian Solar Group Holding, S.L. (20)		75.00	Power generation
Yeongwol Eco Wind Co., Ltd.		29.00	Power generation
Gurae Resident Power Co., Ltd.		29.00	Power generation
Cheongju Eco Park Co., Ltd.		29.00	Power generation
Enel X Midland Photovoltaic, LLC		20.00	Power generation
Geumsungsan Wind Power Co., Ltd.		29.00	Power generation
KEPCO KPS Carabao Corp.		40.00	Utility plant maintenance
Prime Swedish Holding AB		45.00	Holding company
Goheung New Energy Co., Ltd.		46.15	Power generation
Gunsan Land Solar Co., Ltd. (20)		75.29	Power generation
CapMan Lynx SCA, SICAR		50.00	Holding company
International Offshore Power Transmission Holding Company Limited		35.00	Undersea transmission network operation

Notes:

(1) Due to changes in equity, the nominal and effective percentage of ownership are 20.47%.

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

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

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

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

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

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

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

(9) The effective percentage of ownership is less than 20%. However, we consider the major decision-making body to be the general decision of the board of directors, and the general decision of the board of directors can be passed only by two directors of Namjeongsusang Solar Power Operation Co., Ltd. Accordingly, the entity is classified as an associate.

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(10) According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

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

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

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

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

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

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

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

(18) The percentage of ownership decreased due to the unequal capital increase. The entity was reclassified from a joint venture to an associate, due to the changes in voting rights.

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

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

Item 4.D. Property, Plant and Equipment

Our property consists mainly of power generation, transmission and distribution equipment and facilities in Korea. See Item 4.B. “Business Overview—Power Generation,” “—Transmission and Distribution” and “—Capital Investment Program.” In addition, we own our corporate headquarters building complex at

55 Jeollyeok-ro,

Naju-si,

Jeollanam-do,

58322, Korea. As of December 31, 2021, the net book value of our property, plant and equipment was Won 173,120 billion. As of December 31, 2021, investment property, which is accounted for separately from our property, plant and equipment, amounted to Won 213 billion. No significant amount of our properties is leased. There are no material encumbrances on our properties, including power generation, transmission and distribution equipment and facilities.

Pursuant to a Government plan announced in 2005, which mandated relocation of the headquarters of select government-invested enterprises from the Seoul metropolitan area to other provinces in Korea as part of an initiative to foster balanced economic growth in the provinces, we, our generation subsidiaries and our certain subsidiaries relocated our respective headquarters to the designated locations during 2014 and 2015. Our headquarters are currently located in Naju in

Jeollanam-do,

while the headquarters of our six generation subsidiaries and other subsidiaries are various cities outside of Seoul across Korea.

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

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During 2021, we completed the disposal of 185 properties on a separate basis (including residential properties, storage spaces, and substation lots that are located in Korea) which are not directly related to our operations for an aggregate sale price of approximately Won 49 billion. The book value of such properties amounted to Won 38 billion, representing 0.4% of our total real properties as of December 31, 2021. The foregoing sales reflect our ongoing efforts to improve our financial soundness through related debt reduction and enhance our management efficiency, selling noncore properties that have no direct relations to electricity facilities.

ITEM 4A. UNRESOLVED STAFF COMMENTS

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

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

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

Item 5.A. Operating Results

Overview

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

Under the Electric Utility Act and the Price Stabilization Act, the Government generally establishes electricity rates at levels that are expected to permit us to recover our operating costs attributable to our basic electricity generation, transmission and distribution operations in addition to receiving a fair investment return on capital used in those operations. For a detailed description of the fair investment return, see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.”

If fuel prices were to rise substantially and rapidly in the future, such rise may have a material adverse effect on our results of operations and profitability. For example, the net losses between 2018 and first half of 2019, were largely due to sustained rises in fuel costs that were neither timely nor sufficiently offset by a corresponding rise in electricity tariff rates. In part to address these concerns, the Government from time to time increases the electricity tariff rates. However, such increases may be insufficient to fully offset the adverse impact from the rise in fuel costs, and since such increases typically require lengthy public deliberations in order to be implemented, the tariff increases often occur with a significant time lag and as a result our results of operations and cash flows may suffer. We have amended the basic supply terms and conditions with the approval of the Ministry of Trade, Industry and Energy on December 17, 2020 to implement a new cost pass-through tariff system that reinforces the correlation between the costs we incur and the tariff we charge to our customers, among other changes. Such tariff system has been applied to the electricity rate since January 1, 2021 in accordance with the amendment. For further information, please see Item 4.B. “Business Overview—Sales and Customers—Electricity Rates.”

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In addition, we expect complying with the Government environmental-related initiatives and regulations to continue to involve significant costs and resources on our part, which may adversely affect our results of operation, financial condition and cash flows. For example, we have recognized as cost Won 710 billion for greenhouse gas emission allowances in 2019, Won 310 billion in 2020 and Won 518 billion in 2021. The decrease in 2020 compared to 2019 was due to the decrease in coal-fired power generation to comply with environmental regulations including the efforts to reduce a high level of particulate matter pollution. The increase in 2021 compared to 2020 was due to the strengthened regulations regarding coal-fired power generation, which resulted in reduced allowances received free of charge from the Government. Further, as we are required to supply increasing amount of renewable energy, we expect that the environmental-related risks will continue to increase.

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

• demand for electricity;

• electricity rates we charge to our customers;

• fuel costs; and

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

Demand for Electricity

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

Demand for electricity in Korea grew at a compounded average rate of 1.0% per annum for the five years ended December 31, 2021. According to the Bank of Korea, the compounded growth rate for GDP was approximately 2.1% for the same period. The GDP growth rate was approximately 2.0%,

-1.0%

and 4.0% during 2019, 2020 and 2021, respectively.

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

year-on-year

basis.

	2017			2018			2019			2020			2021
Growth in GDP		3.1	%		2.7	%		2.0	%		(1.0	%)		4.0	%
Growth in electricity consumption		2.2	%		3.6	%		(1.1	%)		(2.2	%)		4.7	%

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

• The industrial sector represents the largest segment of electricity consumption in Korea. Demand for electricity from the industrial sector was 291,333 gigawatt hours in 2021, representing a 4.6% increase from 2020, largely due to a base effect from continued demand decreases for the last two years, a rapid recovery of domestic economy and consequent increases of industrial products.

• Demand for electricity from the commercial sector depends largely on the level and scope of commercial activities in Korea. Demand for electricity from the commercial sector increased to 119,550 gigawatt hours in 2021, representing a 5.2% increase from 2020, largely due to an improved consumer sentiment on service industry and increased heating and air conditioning each in January, February, July and August.

• Demand for electricity from the residential sector is largely dependent on population growth and use of heaters, air conditioners and other electronic appliances. Demand for electricity from the residential

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sector increased to 79,915 gigawatt hours in 2021, representing a 4.7% increase compared to 2020, largely due to an increase in household electricity usage from an increased time spent at home and telecommuting in response to the

COVID-19

pandemic and tightened disinfection guidelines. For a discussion on demand by the type of customers, see Item 4.B. “Business Overview—Sales and Customers—Demand by the Type of Usage.”

Since our inception, we have had the predominant market share in terms of electricity generated in Korea. As for electricity we purchase from the market for transmission and distribution to our

end-users,

our generation subsidiaries accounted for 73.2%, 72.6% and 70.8% in 2019, 2020 and 2021, respectively, while the remainder was accounted for by independent power producers. As for transmission and distribution of electricity, we have historically handled, expect to continue to handle, substantially all of such activities in Korea.

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

Electricity Rates

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

Fuel Costs

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

Cost of fuel in any given year is a function of the volume of fuels consumed and the unit fuel cost for the various types of fuel used for generation of electricity which affects the cost structure for both our generation subsidiaries and independent power producers from whom we purchase electric power. A significant change in the unit fuel costs materially impacts the costs of electricity generated by our generation subsidiaries, which mainly comprise our fuel costs under the cost of sales, as well as, to our knowledge, the costs of electricity generated by the independent power producers that sell their electricity to us (see Item 4.B. “Business Overview—Purchase of

Electricity—Cost-based

Pool System”), which mainly comprise our purchased power costs under the cost of sales. We are however unable to provide a comparative analysis since the unit fuel cost information for independent power producers and their cost structures are proprietary information.

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Fuel costs constituted 31.6%, 28.6% and 30.5% of our cost of sales, and the ratio of fuel costs to our sales was 31.2%, 25.5% and 32.4% in 2019, 2020 and 2021, respectively. Substantially all of the fuel (except for anthracite coal) used by our generation subsidiaries is imported from outside of Korea at prices determined in part by prevailing market prices in currencies other than Won. In addition, our generation subsidiaries purchase a significant portion of their fuel requirements under contracts with limited quantity and duration. Pursuant to the terms of our long-term supply contracts, prices are adjusted from time to time subject to prevailing market conditions. See Item 4.B. “Business Overview—Fuel Sources and Requirements.”

Coal accounted for 51.8%, 45.3% and 43.1% of our fuel requirements in 2019, 2020 and 2021, respectively. Uranium accounted for 35.7%, 40.6% and 39.5% of our fuel requirements in 2019, 2020 and 2021, respectively. LNG accounted for 9.5%, 10.6% and 13.7% of our fuel requirements in 2019, 2020 and 2021, respectively. Oil accounted for 0.5%, 0.4% and 0.4% of our fuel requirements in 2019, 2020 and 2021, respectively. In each case, the fuel requirements are measured by the amount of electricity generated by us and our generation subsidiaries and do not include electricity purchased from independent power producers. In order to ensure stable supplies of fuel materials, our generation subsidiaries enter into long-term and medium-term contracts with various suppliers and supplement such supplies with fuel materials purchased on spot markets.

The price of bituminous coal, which represents our largest fuel requirement, fluctuates significantly from time to time. In 2021, approximately 92.9% of the bituminous coal requirements of our generation subsidiaries were purchased under long-term contracts and the remaining 7.1% purchased on the spot market. The average weekly spot price of “free on board” Newcastle coal 5500 NAR (Net As Received) published through Korea Mineral Resource Information Service by Korea Mine Rehabilitation and Mineral Resources Corporation increased from US$45.89 per ton in 2020 to US$84.77 per ton in 2021 and further increased to US$196.38 per ton as of April 15, 2022. If the price of bituminous coal were to sharply rise, our generation subsidiaries may not be able to secure their respective bituminous coal supplies at prices commercially acceptable to them. In addition, any significant interruption or delay in the supply of fuel, bituminous coal in particular, from any of their suppliers could cause our generation subsidiaries to purchase fuel on the spot market at prices higher than contracted, resulting in an increase in fuel cost.

From 2019 to 2021, the prices of oil and LNG fluctuated significantly. The prices of oil and LNG are substantially dependent on the price of crude oil, and according to Bloomberg (Bloomberg Ticker: PGCRDUBA), the average daily spot price of Dubai crude oil decreased from US$63.22 per barrel in 2019 to US$42.21 per barrel in 2020 but increased to US$69.01 per barrel in 2021 and further increased to US$104.83 per barrel as of April 14, 2022. While there was a significant increase in the price of crude oil recently, there is no guarantee that this trend will continue.

Nuclear power has a stable and relatively

low-cost

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

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

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

Korean Won has fluctuated significantly against major currencies from time to time. For fluctuations in exchange rates, see pages

1-2

of this annual report. In particular, Korean Won underwent substantial fluctuations during the recent global financial crisis, and remains subject to significant volatility. The Noon Buying Rate per one U.S. dollar decreased from Won 1,155.5 on December 31, 2019 to Won 1,086.1 on December 31, 2020 and

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increased to Won 1,188.6 on December 31, 2021 and further increased to Won 1,225.1 as of April 8, 2022. In 2019 and 2021, the Won generally depreciated against U.S. dollar and other foreign currencies, and such depreciation may result in a significant increase in the cost of fuel materials and equipment purchased from overseas as well as the cost of servicing our foreign currency debt. As of December 31, 2021, 16.4% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions was denominated in foreign currencies, principally U.S. dollars. The prices for substantially all of the fuel materials and a significant portion of the equipment we purchase are stated in currencies other than Won, generally in U.S. dollars. Since a substantial portion of our revenues is denominated in Won, we must generally obtain foreign currencies through foreign currency-denominated financings or from foreign currency exchange markets to make such purchases or service such debt, fulfill our obligations under existing overseas investments and make new overseas investments. As a result, any significant depreciation of Won against U.S. dollar or other foreign currencies will have a material adverse effect on our profitability and results of operations. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The movement of Won against the U.S. dollar and other currencies may have a material adverse effect on us.”

Recent Accounting Changes

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

Critical Accounting Policies

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

Consolidated Results of Operations

The selected consolidated financial data set forth below as of and for the years ended December 31, 2019, 2020 and 2021 have been derived from our audited consolidated financial statements which have been prepared in accordance with IFRS.

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

	2019			2020			2021			2021
	(rounded to billions of Won and millions of US$) (1)
Sales	W	58,568		W	57,926		W	59,914		$	50,407
Cost of sales		57,780			51,805			63,559			53,474
Gross profit (loss)		788			6,121			(3,646	)		(3,067	)
Selling and administrative expenses		2,670			2,678			2,876			2,419
Other income (expenses), net		756			619			776			653
Other gains (losses), net		(582	)		35			9			7
Operating profit (loss)		(1,708	)		4,097			(5,737	)		(4,826	)
Finance income (expenses), net		(1,772	)		(1,386	)		(1,843	)		(1,551	)
Profit (loss) before income tax		(3,266	)		2,992			(7,085	)		(5,961	)
Profit (loss) related to associates, joint ventures and subsidiaries		214			281			495			416
Income tax benefit (expense)		1,002			(899	)		1,856			1,561
Profit (loss) for the period		(2,264	)		2,092			(5,229	)		(4,399	)
Other comprehensive income (loss)		135			(220	)		600			504
Total comprehensive income (loss)		(2,128	)		1,873			(4,630	)		(3,895	)

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Note:

(1) The financial information denominated in Won as of and for the year ended December 31, 2021 has been translated into U.S. dollars at the exchange rate of Won 1,188.6 to US$1.00, which was the Noon Buying Rate as of December 31, 2021.

2021 Compared to 2020

In 2021, our consolidated sales, which is principally derived from the sale of electric power, increased by 3.4% to Won 59,914 billion in 2021 from Won 57,926 billion in 2020, primarily reflecting an increase in sales of electric power. Our sale of electric power increased by 3.6% to Won 58,702 billion in 2021 from Won 56,684 billion in 2020, primarily due to an increase in the volume of electricity sold. The volume of electricity sold increased by 4.7% to 533,431 gigawatt hours in 2021 from 509,270 gigawatt hours in 2020, primarily due to a 4.5% increase in the volume of electricity sold to the industrial sector, which represents the largest segment of electricity consumption in Korea, to 291,333 gigawatt hours in 2021 from 278,660 gigawatt hours in 2020 and a 5.2% increase in the volume of electricity sold to the commercial sector, which represents the second largest segment of electricity consumption in Korea, to 119,550 gigawatt hours in 2021 from 113,639 gigawatt hours in 2020 coupled with a 4.7% increase in the volume of electricity sold to the residential sector to 79,915 gigawatt hours in 2021 from 76,303 gigawatt hours in 2020. The increase in the volume of electricity sold to the industrial sector was primarily due to an increase in export sales recovered after recession in the light of

COVID-19

pandemic since the manufacturing industry has traditionally been a major consumer of electricity. The increase in the volume of electricity sold to the commercial sector was primarily due to the increase in domestic demand in response to the Government’s ‘with Corona’ strategy which relaxed social distancing policy after

COVID-19

pandemic. The increase in the volume of electricity sold to the residential sector was primarily due to increased time spent at home and telecommuting in response to the

COVID-19

pandemic and increased use of cooling and heating appliances to cope with increased number of hot summer and cold winter days. Average unit sales price decreased by 1.5% to Won 108.1 per kilowatt-hour in 2021 from Won 109.80 per kilowatt-hour in 2020, primarily due to a decrease in each unit sales price in the commercial and industrial sector. Our sales of construction services decreased by 7.0% to Won 755 billion in 2021 from Won 812 billion in 2020, primarily due to a decrease in sales amount recorded from the ongoing construction of our nuclear complex construction projects in the United Arab Emirates as the construction projects progress over time.

Our consolidated cost of sales, which is principally derived from the purchase of power from independent power producers and to a lesser extent, from raw materials used and depreciation, increased by 22.7%, to Won 63,559 billion in 2021 from Won 51,805 billion in 2020, primarily due to a 37.6% increase in power purchase, a 37.1% increase in raw material used and a 3.6% increase in depreciation.

Power purchase, which accounted for 34.0% and 30.4% of our cost of sales in 2021 and 2020, respectively, increased by 37.6% to Won 21,632 billion in 2021 from Won 15,725 billion in 2020, primarily due to increase in both quantity and the unit price of power purchase. The increased unit price of power purchase was mainly due to increased fuel costs.

Depreciation expense, excluding amortization of nuclear fuel charged to fuel costs in the amounts of Won 1,134 billion and Won 1,173 billion in 2021 and 2020, respectively, increased by 4.4% to Won 10,414 billion in 2021 from Won 9,978 billion in 2020 primarily due to an additional property, plant and equipment acquired in relation to the construction of new generation facilities pursuant to our capital investment program.

Other cost of sales increased by 9.8% to Won 2,022 billion in 2021 from Won 1,843 billion in 2020 primarily due to an increase in our greenhouse gas emission and related costs. For example, we have spent approximately Won 518 billion for the greenhouse gas emission allowances in 2021, compared to Won 310 billion in 2020. For further information, please see Item 4.B. “Business Overview—Environmental, Social and Governance Programs.”

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As a cumulative result of the foregoing factors, we recognized consolidated gross loss of Won 3,646 billion in 2021 compared to consolidated gross profit of Won 6,121 billion in 2020, and our consolidated gross profit margin decreased to (6.1)% in 2021 from 10.6% in 2020. The decreases in our consolidated gross profit and consolidated gross profit margin were largely attributable to a 22.7% increase in our consolidated cost of sales (which was mainly due to 37.6% increase in the power purchase costs, 37.1% increase in raw materials used, and 3.6% increase in depreciation expense) which substantially outpaced the 3.4% increase in our consolidated sales (which was primarily due to a 4.7% increase in the volume of electricity sold).

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

Our consolidated other income, net of expenses, increased by 25.5% to Won 776 billion in 2021 from Won 619 billion in 2020, mainly as a result of a decrease in donation for establishment of laboratory for nuclear power plant decommissioning.

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

As a cumulative effect of the foregoing factors, we recognized consolidated operating loss of Won 5,737 billion in 2021 compared to a profit of Won 4,097 billion in 2020, and our consolidated operating profit margin decreased to (9.6)% in 2021 from 7.1% in 2020. This was mainly due to increased fuel costs as a result of a higher price of LNG, increased power purchased and increased emission costs to comply with the stricter greenhouse gas emission trading system.

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

Our consolidated profit related to associates, joint ventures and subsidiaries increased by 75.9% to Won 495 billion in 2021 from Won 281 billion in 2020, primarily due to increased share in profit of Korea Gas Corporation, owing to increased LNG price.

As a cumulative result of the foregoing factors, we recognized consolidated loss before income taxes of Won 7,085 billion in 2021 compared to consolidated profit before income taxes of Won 2,992 billion in 2020.

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

As a cumulative result of the above factors, we recognized consolidated loss of Won 5,229 billion in 2021 compared to consolidated profit of Won 2,092 billion in 2020. Our consolidated net profit margin also decreased to (8.7)% in 2021 from 3.6% in 2020. Our loss attributable to the owners of the company was Won 5,315 billion in 2021 compared to a profit of Won 1,991 billion in 2020.

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

As a cumulative result of the above factors, we recognized consolidated total comprehensive loss of Won 4,630 billion in 2021 compared to total comprehensive income of Won 1,873 billion in 2020.

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2020 Compared to 2019

In 2020, our consolidated sales, which is principally derived from the sale of electric power, decreased by 1.1% to Won 57,926 billion in 2020 from Won 58,568 billion in 2019, primarily reflecting a decrease in sales of electric power. Our sale of electric power decreased by 0.4% to Won 56,684 billion for 2020 from Won 56,895 billion for 2019, primarily due to a decrease in the volume of electricity sold. The volume of electricity sold decreased by 2.2% to 509,270 gigawatt hours in 2020 from 520,499 gigawatt hours in 2019, primarily due to a 3.7% decrease in the volume of electricity sold to the industrial sector, which represents the largest segment of electricity consumption in Korea, to 278,660 gigawatt hours in 2020 from 289,240 gigawatt hours in 2019 and a 2.2% decrease in the volume of electricity sold to the commercial sector, which represents the second largest segment of electricity consumption in Korea, to 113,639 gigawatt hours in 2020 from 116,227 gigawatt hours in 2019; which was offset in part by a 5.0% increase in the volume of electricity sold to the residential sector to 76,303 gigawatt hours in 2020 from 72,639 gigawatt hours in 2019. The decrease in the volume of electricity sold to the industrial sector was primarily due to a decrease in the industrial electricity usage from a recession in the manufacturing industry in light of the

COVID-19

pandemic, even though the manufacturing industry has traditionally been a major consumer of electricity. The decrease in the volume of electricity sold to the commercial sector was primarily due to the decrease in the commercial electricity usage from a slowdown in the service industry as a consequence of the social distancing in response to the

COVID-19

pandemic and less air conditioning used in the stores as a result of a more temperate weather conditions. The increase in the volume of electricity sold to the residential sector was primarily due to increased time spent at home and telecommuting in response to the

COVID-19

pandemic and increased use of heat appliances to cope with cold winter. Average unit sales price increased by 1.0% to Won 109.80 per kilowatt-hour in 2020 from Won 108.66 per kilowatt-hour in 2019, primarily due to an increase in each unit sales price in the residential and industrial sector. Our sales of construction services decreased by 35.8% to Won 812 billion in 2020 from Won 1,265 billion in 2019, primarily due to a decrease in sales amount recorded from the ongoing construction of our nuclear complex construction projects in the United Arab Emirates as the construction projects progress over time.

Our consolidated cost of sales, which is principally derived from the purchase of power from independent power producers and to a lesser extent, from raw materials used and depreciation, decreased by 10.3%, to Won 51,805 billion in 2020 from Won 57,780 billion in 2019, primarily due to a 13.9% decrease in power purchase, a 20.7% decrease in raw material used and a 29.5% decrease in other cost of sales, which was partially offset by a 3.9% increase in depreciation.

Power purchase, which accounted for 30.4% and 31.6% of our cost of sales in 2020 and 2019, respectively, decreased by 13.9% to Won 15,725 billion in 2020 from Won 18,270 billion in 2019, primarily due to a decrease in the unit price of power purchase.

Depreciation expense, excluding amortization of nuclear fuel charged to fuel costs in the amounts of Won 1,173 billion and Won 1,050 billion in 2020 and 2019, respectively, increased by 3.0% to Won 9,978 billion in 2020 from Won 9,684 billion in 2019 primarily due to an additional property, plant and equipment acquired in relation to the construction of new generation facilities pursuant to our capital investment program.

Other cost of sales decreased by 29.5% to Won 1,843 billion in 2020 from Won 2,613 billion in 2019 primarily due to a decrease in the price of the greenhouse gas emission allowances and related costs, as our emission decreased from a decrease in coal-fired power generation. For example, we have spent approximately Won 311 billion for the greenhouse gas emission allowances in 2020, compared to Won 710 billion in 2019. For further information, please see Item 4.B. “Business Overview—Environmental, Social and Governance Programs.”

As a cumulative result of the foregoing factors, our consolidated gross profit increased by 676.8% to Won 6,121 billion in 2020 from Won 788 billion in 2019, and our consolidated gross profit margin increased to

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10.6% in 2020 from 1.3% in 2019. The increases in our consolidated gross profit and consolidated gross profit margin were largely attributable to a 10.3% decrease in our consolidated cost of sales (which was mainly due to 13.9% decrease in the power purchase costs and a 20.7% decrease in raw materials used, which were partially offset by a 3.9% increase in depreciation expense) which substantially outpaced the 1.1% decrease in our consolidated sales (which was primarily due to a 2.2% decrease in the volume of electricity sold and a decrease in sales amount recorded from the ongoing construction of our nuclear complex construction projects in the United Arab Emirates as the construction projects progress over time).

Our consolidated selling and administrative expenses slightly increased by 0.3% to Won 2,678 billion in 2020 from Won 2,670 billion in 2019, largely due to an increase in the labor-related costs from increases in average wage, which was partially offset by a decrease in commissions.

Our consolidated other income, net of expenses, decreased by 18.1% to Won 619 billion in 2020 from Won 756 billion in 2019, mainly as a result of an increase in donation for establishment of laboratory for nuclear power plant decommissioning and of Korea Institute of Energy Technology, formerly known as KEPCO Tech University.

Our consolidated net other gains increased to Won 35 billion in 2020 from net other losses of Won 582 billion in 2019, as the net other losses in 2019 was primarily due to the impairment loss of mining rights in Bylong, Australia.

As a cumulative effect of the foregoing factors, our performance has turned around resulting in our consolidated operating profit of Won 4,097 billion in 2020 from consolidated operating loss of Won 1,708 billion in 2019, and our consolidated operating profit margin increased to 7.1% in 2020 from (2.9)% in 2019. This was mainly due to lower fuel costs from decreasing coal generation to comply with policies to reduce particulate matters in the atmosphere, lower purchasing power price as a result of a declined price of LNG, and lower emission costs as a result of the lower amount of emission caused by a decrease in coal generation.

Our consolidated finance expenses, net, decreased by 21.8% to Won 1,386 billion in 2020 from Won 1,772 billion in 2019, primarily as a result of lower interest payment expenses due to decrease in interest rate and finding new funding sources with lower interest rates.

Our consolidated profit related to associates, joint ventures and subsidiaries increased by 31.3% to Won 281 billion in 2020 from Won 214 billion in 2019, primarily due to decrease in operational expenses owing to lower fuel unit price and higher operating profit after the achievement of commercial operation of facilities owned by joint ventures.

As a cumulative result of the foregoing factors, our consolidated profit (loss) before income taxes turned surplus to a profit of Won 2,992 billion in 2020 from a loss of Won 3,266 billion in 2019.

Our income tax benefit turned significantly into an expense of Won 899 billion in 2020 from a benefit of Won 1,002 billion in 2019, largely as a result of the increase in our profit before income taxes. Our effective tax rate, which represents tax expense as a percentage of profit before income taxes, was 30.05% in 2020.See Note 41 to our consolidated financial statements included in this annual report.

As a cumulative result of the above factors, our consolidated profit (loss) turned surplus to a profit of Won 2,093 billion in 2020 from a loss of Won 2,264 billion in 2019. Our consolidated net profit margin also increased to 3.6% in 2020 from (3.9)% in 2019. Our loss attributable to the owners of the company was a profit of Won 1,991 billion in 2020 compared to a loss of Won 2,346 billion in 2019.

We reported consolidated other comprehensive loss of Won 220 billion in 2020 compared to consolidated other comprehensive income of Won 135 billion in 2019, largely due to a decrease in the remeasurement of defined benefit liability, shares in other comprehensive loss of associates and joint ventures, net of tax, and foreign currency translation loss of foreign operations, net of tax.

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As a cumulative result of the above factors, our consolidated total comprehensive income was Won 1,873 billion in 2020, turned into surplus from a loss of Won 2,128 billion in 2019.

Segment Results

We operate the following business segments: transmission and distribution, nuclear power generation and thermal power generation and all others. The transmission and distribution segment, which is operated by us, the parent company, consists of operations related to the transmission, distribution and sale to

end-users

of electricity purchased from our generation subsidiaries as well as from independent power producers. The power generation segment, which is operated by our one nuclear generation subsidiary and five

non-nuclear

generation subsidiaries, consists of operations related to the generation of electricity sold to us through the Korea Power Exchange. The transmission and distribution segment and the power generation segment together represent our electricity business. The remainder of our operation is categorized as “all others.” The all other segment consists primarily of operations related to the plant maintenance and engineering service, information services, and sales of nuclear fuel, communication line leasing, overseas businesses and others. In 2019, 2020 and 2021, the unaffiliated revenues of the power generation segment (representing the six generation subsidiaries) and all our other revenues in the aggregate amounted to only 2.7%, 3.1% and 4.3% of our consolidated revenues, respectively, and the results of operations for our business segments substantially mirror our consolidated results of operations. For further information, see Note 4 of the notes to our consolidated financial statements included in this annual report.

Other

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

Item 5.B. Liquidity and Capital Resources

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

Capital Requirements

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

• capital expenditures pursuant to our capital investment program;

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

• payment of principal and interest on our existing debt; and

• overseas investments.

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

Capital Expenditures

We anticipate that capital expenditures will be the most significant use of our funds for the next several years. Our capital expenditures relate primarily to the construction of new generation units, maintenance of

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existing generation units and expansion of our transmission and distribution systems. Our capital expenditures generally follow budgets established under the Basic Plan, which contains projections relating to the supply and demand of electricity of Korea based on which we plan the construction of additional generation units and transmission systems.

Our total capital expenditures for the construction of generation, transmission and distribution facilities were Won 15,795 billion, Won 15,485 billion and Won 13,964 billion in 2019, 2020 and 2021, respectively, and under our current budgets, are estimated to be approximately Won 15,360 billion, Won 16,172 billion and Won 16,133 billion in 2022, 2023 and 2024, respectively. We plan to finance our capital expenditures primarily through issuance of securities in the capital markets, borrowings from financial institutions and construction grants.

In January 2016, the Ministry of Trade, Industry and Energy announced an initiative to promote the new energy industry by creating the New Energy Industry Fund, which is made up of funds sponsored by Government-affiliated energy companies. We contributed Won 500 billion to the funds in 2016. The purpose of these funds is to invest in substantially all frontiers of the new energy industry, including renewable energy, energy storage systems, electric vehicles,

small-sized

self-sustaining electricity generation grids known as “micro-grids”, among others, as well as invest in

start-up

companies, ventures, small- to

medium-sized

enterprise and project businesses that engage in these businesses but have not previously attracted sufficient capital from the private sector.

Furthermore, as part of the Comprehensive Measures against Particulate Matter and the Eighth and Ninth Basic Plan, announced by the Government in September 2017, December 2017 and December 2020, respectively, the Government set forth the following policy directions relating to coal-fired generation units: (i) two coal-fired generation units scheduled for construction and four existing coal-fired generation units shall convert to LNG fuel use, (ii) in principle, construction of new coal-fired generation units shall not be planned, (iii) seven of the coal-fired generation units that are 30 years or older will be shut down on an accelerated schedule, (iv) beginning in 2018, coal-fired generation units that are 30 years or older shall temporarily cease operations from March through June of each year, (v) coal-fired generation units shall be put through comprehensive functional and environmental upgrades and (vi) coal-fired generation units shall be subject to emission standards that came into effect in January 2019 that are twice as more rigorous than the previous standards. Compliance with such measures is expected to result in significant additional costs.

We plan to establish a research and entrepreneurship-oriented university specializing in the energy field. See Item 4.B. “Business Overview—Establishment of a University.” On August 8, 2019, our board of directors resolved to make an initial contribution of Won 60 billion for the promotion, initial operation and the design of the university campus. On May 21, 2021, our board resolved to make an additional contribution of Won 64.5 billion to the university and Won 41.3 billon of such contribution was made in December 2021. The total amount of contribution in 2022 and thereafter will be determined in discussion with the Government and the university but it is likely to be not greater than the total amount in 2021.

Fuel Purchases

We require significant funds to finance our operations, principally in relation to the purchase of fuels by our generation subsidiaries for generation of electricity. In 2019, 2020 and 2021, fuel costs constituted 31.6%, 28.6% and 30.5% of our cost of sales and the ratio of fuel costs to our sales was 31.2%, 25.5% and 32.4%, respectively. We plan to fund our fuel purchases primarily with net operating cash, although in cases of rapid increases in fuel prices as is the case from time to time, we may also rely on borrowings from financial institutions and issuance of debt securities in the capital markets.

Repayment of Existing Debt

Payments of principal and interest on indebtedness will require considerable resources. The table below sets forth the scheduled maturities of the outstanding interest-bearing debt (excluding original issue discounts and

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premium) without taking into consideration of swap transactions of us and our six wholly-owned generation subsidiaries as of December 31, 2021 for each year from 2022 to 2026 and thereafter. As of December 31, 2021, such debt represented 96.0% of our outstanding debt on a consolidated basis.

Year ended December 31	Local Currency Borrowings		Foreign Currency Borrowings		Domestic Debentures		Foreign Debentures		Total (1)
	(in billions of Won)
2022		3,387.1		363.8		7,430.4		2,193.2		13,374.5
2023		6.3		—		7,920.0		1,659.7		9,586.0
2024		5.8		—		7,500.0		1,369.4		8,875.3
2025		155.0		—		4,020.0		1,896.8		6,071.8
2026		3.2		10.4		7,330.0		2,276.7		9,620.2
Thereafter		57.4		—		27,960.3		1,927.6		29,945.3
Total (1)		3,614.9		374.2		62,160.7		11,323.3		77,473.1

Note:

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

We and our six wholly-owned generation subsidiaries incurred interest charges (including capitalized interest) in relation to our interest-bearing debt of Won 2,536 billion, Won 2,438 billion and Won 2,337 billion in 2019, 2020 and 2021, respectively. We anticipate that interest charges will increase in future years because of, among other factors, anticipated increases in our long-term debt. See “—Capital Resources” below. The weighted average rates of interest on our and our six wholly-owned generation subsidiaries’ interest-bearing long-term debt and borrowings under existing swap contracts were 2.75%, 2.55% and 2.35% in 2019, 2020 and 2021, respectively.

Overseas Investments

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

Capital Resources

The selected consolidated financial data set forth below as of and for the years ended December 31, 2019, 2020 and 2021 have been derived from our audited consolidated financial statements which have been prepared in accordance with IFRS.

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

	2019		2020		2021		2021
	(rounded to billions of Won and millions of US$) (1)
Net cash provided by operating activities	W	8,213	W	13,208	W	4,473	$	3,763
Long-term debt (excluding current portion) (2)		59,019		59,050		66,500		55,948
Current portion of the long-term debt		7,759		9,238		11,109		9,347
Total long-term debt (3)		66,890		68,450		77,781		65,440
Won-denominated long-term debt		55,196		56,759		64,995		54,683
Foreign currency-denominated long-term debt		11,694		11,692		12,786		10,757
Other long-term liabilities (4)		45,457		47,544		47,565		40,018
Short-term borrowings		1,099		1,437		2,921		2,457
Total equity		68,890		70,667		65,312		54,949

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Notes:

(1) The financial information denominated in Won as of and for the year ended December 31, 2021 has been translated into U.S. dollars at the exchange rate of Won 1,188.6 to US$1.00, which was the Noon Buying Rate as of December 31, 2021.

(2) Long-term debt, net consists of long-term borrowings and debt securities (excluding the current portions but including original issue discounts and premiums) without taking into consideration of swap transactions.

(3) Total long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions.

(4) Other long-term liabilities consist of total non-current liabilities of our consolidated financial statements included in this annual report minus long-term debt (excluding current portion) of this table.

We have traditionally met our working capital and other capital requirements primarily from net cash provided by operating activities, issuance of debt securities and borrowings from financial institutions. Net cash provided by operating activities is primarily a function of electricity sales and fuel purchases and is also affected by increases and decreases in trade receivables, trade payables and inventory related to electricity sales and fuel purchases. Net cash provided by operating activities was Won 8,213 billion, Won 13,208 billion and Won 4,473 billion in 2019, 2020 and 2021, respectively.

As of December 31, 2019, 2020 and 2021, our long-term debt (excluding the current portion but including original issue discounts and premium), without taking into consideration of swap transactions, amounted to Won 59,019 billion, Won 59,050 billion and Won 66,500 billion, respectively, representing 85.7%, 83.6% and 101.8% of equity, respectively, as of such dates. As of December 31, 2019, 2020 and 2021, the current portions of our long-term debt were Won 7,759 billion, Won 9,238 billion and Won 11,109 billion, respectively. As of December 31, 2019, 2020 and 2021, our short-term borrowings amounted to Won 1,099 billion, Won 1,437 billion and Won 2,921 billion, respectively. See Note 23 of the notes to our consolidated financial statements included in this annual report. Total long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, as of December 31, 2021 was Won 77,781 billion, of which Won 64,995 billion was denominated in Won and an equivalent of Won 12,786 billion was denominated in foreign currencies, primarily U.S. dollars. We, KHNP, KOMIPO and KOWEPO also maintain global medium-term note programs in the aggregate amount of US$13 billion, of which approximately US$7 billion remains currently available for future drawdown.

Subject to the implementation of our capital expenditure plan and the sale of our interests in our generation subsidiaries and other subsidiaries, our long-term debt may increase or decrease in future years. Until recently, a significant portion of our long-term debt was raised through foreign currency-denominated borrowings. Our foreign currency-denominated long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, amounted to Won 11,692 billion and Won 12,786 billion as of December 31, 2020 and 2021, respectively.

Our ability to incur long-term debt in the future is subject to a variety of factors, many of which are beyond our control, including, the amount of capital that other Korean entities may seek to raise in capital markets. Economic, political and other conditions in Korea may also affect investor demand for our securities and those of other Korean entities. In addition, our ability to incur debt will also be affected by the Government’s policies relating to foreign currency borrowings, the liquidity of the Korean capital markets and our operating results and financial condition. In case of adverse developments in Korea, the price at which such financing may be available may not be acceptable to us.

We incur our short-term borrowings primarily through commercial papers sold to domestic financial institutions. We have not had any material difficulties in obtaining short-term borrowings. In addition, in order to prepare for potential liquidity shortage, we maintain several credit facilities with financial institutions, with

Won-denominated

facilities amounting to Won 4,926 billion in aggregate and foreign currency-denominated

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facilities amounting to US$1,645 million in aggregate. The full amount of these facilities was available as of December 31, 2021.

We may raise capital from time to time through the issuance of equity securities. However, there are certain restrictions on our ability to issue equity instrument, including limitations on shareholdings by foreigners. In addition, without changes in the existing KEPCO Act which requires that the Government, directly or pursuant to the Korea Development Bank Act, through Korea Development Bank, own at least 51% of our capital stock, it may be difficult or impossible for us to undertake any equity financing other than sales of treasury stock without the participation of the Government. Even if we are able to conduct equity financing with the participation of the Government, prevailing market conditions may be such that we may not be able conduct equity financing on terms that are commercially acceptable to us. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy.”

Our total equity decreased by 7.6% from Won 70,667 billion as of December 31, 2020 to Won 65,312 billion as of December 31, 2021, mainly as a result of a decrease in total comprehensive income.

Liquidity

The selected consolidated financial data set forth below as of and for the years ended December 31, 2019, 2020 and 2021 have been derived from our audited consolidated financial statements which have been prepared in accordance with IFRS.

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

	2019			2020			2021			2021
	(rounded to billions of Won and millions of US$) (1)
Property, plant and equipment, net	W	164,702		W	168,709		W	173,120		$	145,651
Current trade and other payables, net		6,649			6,257			8,153			6,860
Current financial liabilities, net		8,931			10,725			14,037			11,810
Net cash provided by operating activities		8,213			13,208			4,473			3,763
Net cash used in investing activities		(13,499	)		(14,832	)		(12,354	)		(10,394	)
Net cash provided by financing activities		5,775			1,881			8,435			7,097
Net working capital (deficit) (2)		(4,749	)		(5,319	)		(9,681	)		(8,145	)

Notes:

(1) The financial information denominated in Won as of and for the year ended December 31, 2021 has been translated into U.S. dollars at the exchange rate of Won 1,188.6 to US$1.00, which was the Noon Buying Rate as of December 31, 2021.

(2) Net working capital is defined as current assets minus current liabilities. For the periods indicated, current liabilities exceeded current assets, which resulted in working capital deficit for such periods.

Our liquidity is substantially affected by our acquisition of property, plant and equipment, fuel purchases and schedule of repayment of debt. Our property, plant and equipment increased by 2.6% from Won 168,709 billion as of December 31, 2020 to Won 173,120 billion as of December 31, 2021. As the fuel costs increased by 31.2% from Won 14,794 billion in 2020 to Won 19,408 billion in 2021, our current trade and other payables also increased from Won 6,257 billion as of December 31, 2020 to Won 8,153 billion as of December 31, 2021. Our current financial liabilities increased by 30.9% from Won 10,725 billion as of December 31, 2020 to Won 14,037 billion as of December 31, 2021 according to our debt repayment schedule.

Our cash flows are also impacted by other factors. Our net cash provided by operating activities decreased by 66.1% from Won 13,208 billion in 2020 to Won 4,473 billion in 2021. There was a decrease in profit of Won 7,322 billion during 2021 compared to 2020.

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Our cash flows from investing activities are mainly affected by the acquisition of property, plant and equipment and financial assets, which was Won 18,562 billion in 2021, as well as the proceeds from disposals of financial assets, which was Won 7,024 billion in 2021. Our net cash used in investing activities decreased by 16.7% from Won 14,832 billion in 2020 to Won 12,354 billion in 2021, mainly due to the decrease in acquisition of financial assets of Won 3,310 billion and decrease in acquisition of property, plant and equipment of Won 613 billion offset by a decrease in proceeds from disposals of financial assets of Won 997 billion.

Our cash flows from financing activities are mainly affected by the proceeds and repayment of long-term borrowings and debt securities, which was a net inflow of Won 8,032 billion in 2021, as well as dividend paid, which was Won 812 billion in 2021. Our net cash from financing activities increased by 348.5% from Won 1,881 billion in 2020 to Won 8,435 billion in 2021, largely due to an increase of Won 7,222 billion in proceeds from long-term borrowings and securities.

Due to the capital-intensive nature of our business as well as significant volatility in fuel prices, from time to time we operate with working capital deficits, and we may have substantial working capital deficits in the future. As of December 31, 2019, 2020 and 2021, we had a working capital deficit of Won 4,749 billion, Won 5,319 billion and Won 9,681 billion, respectively. We have traditionally met our working capital and other capital requirements primarily with net cash provided by operating activities, issuance of debt securities, borrowings from financial institutions and construction grants. We also incur short-term borrowings primarily through commercial papers sold to domestic financial institutions. We have not had any material difficulties in obtaining short-term borrowings. See “—Capital Resources.”

We may face liquidity concerns in the case of sudden and sharp depreciation of the Won against major foreign currencies or depreciation over a sustained period of time. While substantially all of our revenues and our cash and cash equivalents are denominated in Won, we pay for substantially all of our fuel purchases in foreign currencies. Furthermore, as a substantial portion of our long-term debt is denominated in foreign currencies, the payment of principal and interest thereon is made in foreign currencies. In the past, we have incurred foreign currency debt principally due to the limited availability and the high cost of

Won-denominated

financing in Korea. However, in light of the increasing sophistication of the Korean capital markets and the recent increasein Won liquidity in the Korean financial markets, we plan to reduce the portion of our debt which is denominated in foreign currencies although we intend to continue to raise certain amounts of capital through long-term foreign currency debt for purposes of maintaining diversity in our funding sources as well as paying for overseas investments and fuel procurements in foreign currencies. As of December 31, 2021, 16.4% of our long-term debt (including the current portion but excluding original issue discounts and premium) without taking into consideration of swap transactions was denominated principally in U.S. dollars.

We enter into currency swaps and other hedging arrangements with respect to our foreign currency denominated debt only to a limited extent primarily due to the limited size of the Korean market for such derivative instrument. Such instruments include combined currency and interest rate swap agreements, interest rate swaps and foreign exchange agreements. We do not enter into derivative financial instruments in order to hedge market risk resulting from fluctuations in fuel costs. Our policy is to hold or issue derivative financial instruments for hedging purposes only. See Note 12 of the notes to our consolidated financial statements.

We did not pay any dividends in respect of fiscal year 2019 and 2021 on a separate basis. We paid dividends of Won 1,216 per share in respect of fiscal year 2020 on a separate basis.

Contractual Obligations

The following summarizes our known contractual obligations on a consolidated basis as of December 31, 2021 and the effect such obligations are expected to have on liquidity and cash flow in future

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periods. See Note 45 (2) of the notes to our consolidated financial statements included in this annual report for our management of short, medium and long-term funding and liquidity management requirements.

Contractual Obligations	Less than 1 Year		1~2 Years		2~5 Years		More than 5 Years		Total (3)
	In billions of Won
Borrowings and debt securities (1)	W	15,834		11,230		28,664		36,224		91,950
Lease liabilities		620		637		1,521		2,151		4,929
Trade and other payables		7,570		777		725		667		9,739
Financial guarantee contracts (2)		436		—		3,106		177		3,718
Total (3)	W	24,459		12,643		34,016		39,218		110,337

Notes:

(1) These includes interest payments on the borrowings and debts for the periods indicated.

(2) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2020 and 2021 are Won 66,354 million and Won 80,841 million, respectively.

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

For a description of our commercial commitments and contingent liabilities, see Note 50 of the notes to our consolidated financial statements included in this annual report.

We entered into a power purchase agreement with GS EPS Co., Ltd. and CGN Yulchon Generation Co., Ltd. respectively, which are non-renewable energy independent power producers that are not part of the Community Energy System, under which we are required to purchase all electricity generated by these companies to the extent such electricity is traded through the Korea Power Exchange. The purchase prices for such electricity are predetermined under the power purchase agreements, subject to annual adjustments.We purchased power from these companies in the amounts of Won 500 billion, Won 379 billion and Won 371 billion in 2019, 2020 and 2021, respectively.As a result of the expiration of the contractual periods, our agreement with GS EPS Co., Ltd. terminated on March 31, 2021.

We meet our coal requirements primarily through purchases of bituminous coal and anthracite coal under long-term supply contracts with domestic and foreign suppliers to purchase. Under these long-term supply contracts, purchase prices are adjusted periodically based on prevailing market conditions. We have entered into several fuel purchase agreements under which we are committed to purchasing minimum quantities of fuel, including approximately 60 to 70 million tons of bituminous coal in 2021.

We also purchase a substantial portion of our LNG requirements from Korea Gas Corporation, a related party. We negotiate annually with Korea Gas Corporation and other suppliers to purchase LNG. We have also entered into long-term transportation contracts with Pan Ocean Co., Ltd. and others.

We import all uranium ore concentrates from sources outside Korea (including Canada, France, the United Kingdom, Switzerland, Australia, Germany, Hong Kong, Japan and Uzbekistan) through medium- to long-term contracts and purchases in spot markets, and pay for such concentrates with currencies other than Won, primarily U.S. dollars. Contract prices for processing of uranium are generally based on market prices.

The fuel purchase price is typically negotiated near or at the time of purchase subject to prevailing market conditions. In 2021, the fuel cost incurred to us was Won 19.4 trillion. See Note 49 of the notes to our consolidated financial statements for further details of these contracts.

Under the Long-term Transmission and Substation Plan approved by the Ministry of Trade, Industry and Energy, we are liable for the construction of all of our power transmission facilities and the maintenance and repair expenses for such facilities. Also, our generation subsidiaries make plans for expanding our generation

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capacity based on the Basic Plan Relating to the Long-Term Supply and Demand of Electricity, which is generally revised and announced every two years by the Government. For a description of our commitments for acquisition of property, plant and equipment, see Note 49 of the notes to our consolidated financial statements included in this annual report.

Payment guarantee

See Note 50 to our consolidated financial statements included in this annual report for payment guarantees and short-term credit facilities from financial institutions.

Overdraft and Others

See Note 47 to our consolidated financial statements included in this annual report for existing guarantees provided by us to our associates and joint ventures.

Other than as described in this annual report and also in Notes 47 and 50 of the notes to our consolidated financial statements included in this annual report, we did not have any other material credit lines and guarantee commitments provided to any third parties as of December 31, 2021.

Item 5.C. Research and Development, Patents and Licenses, etc.

Research and Development

Our research and development program is focused on developing advanced electric power, renewable energy, smart grid and customer-friendly electricity service technologies that will enable us to become a global leader in the energy industry and to preemptively respond to changes in the energy paradigm and to improve the quality of the electricity. As a result, we secured 37 core strategic technologies and 201

first-in-class

technologies in the related fields such as power network upgrading, the fourth industrial revolution and renewable energy. In 2022, consistent with the Government guidelines, we plan to invest approximately 5.15% of our annual estimated net sales on a separate basis, in the research and development. We also actively cope with changes in the external environment represented by carbon neutrality and established medium- to long-term technology development strategies for core strategies to create sustainable new growth engines.

Our research and development activities plan to focus on the following:

• in the electric power system sector, enhancing renewable electricity capacity and storage of renewable energy surplus;

• in the power generation sector, reducing CO 2 emissions and establishing an environment-friendly power generation system;

• establishing an intelligent plant operation system using data, networks, and artificial intelligence;

• commercializing high efficiency transmission technologies including superconductor; and

• establishing a system for avoiding safety incidents and disaster damage.

In addition, we cooperate closely with several other electric utility companies and research institutes, both foreign and domestic, on various projects to diversify the scope and scale of our research and development activities.

We invested Won 976 billion, Won 887 billion and Won 910 billion, in 2019, 2020 and 2021, respectively, and currently plan to invest Won 1,087 billion in 2022, on research and development. Our current focus in research and development is primarily in the area of low-carbon and clean energy development and

ICT-based

smart energy technological development. We had 1,287 employees engaged in research and development activities as of December 31, 2021. As a result of our research, wehad 5.902 registered patents and 7,189 patent applications outstanding in Korea and abroad as of December 31, 2021.

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Item 5.D. Trend Information

Trends, uncertainties and events which could have a material impact on our sales, liquidity and capital resources are discussed above in Item 5.A. “Operating Results” and Item 5.B. “Liquidity and Capital Resources.”

Item 5.E. Critical Accounting Estimates

See Note 2. (4) to our consolidated financial statements included in this annual report and other sections of our consolidated financial statements referred to thereunder for accounting estimates that have the most significant effect on the amounts recognized in our consolidated financial statements.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Item 6.A. Directors and Senior Management

Board of Directors

Under the KEPCO Act, the Act on the Management of Public Institutions and our Articles of Incorporation, our board of directors, which is required to consist of not more than 15 directors, including the president, is vested with the authority over our management.

Pursuant to the Act on the Management of Public Institutions and our Articles of Incorporation, we have two types of directors: standing directors (‘

sang-im-isa

’ in Korean) and

non-standing

directors (‘

bi-sang-im-isa

’ in Korean). Please see the below discussion under “—Standing Directors” and

“—Non-standing

Directors” for more information.

Under our Articles of Incorporation, there may not be more than seven standing directors, including our president, and more than eight

non-standing

directors. The number of

non-standing

directors must exceed the number of standing directors, including our president. A senior

non-standing

director appointed by the Ministry of Economy and Finance becomes our chairperson of the board following the review and resolution of the Committee for Management of Public Institutions.

Under the Act on the Management of Public Institutions amended on February 3, 2022 and to become effective on August 4, 2022, the labor director system will be introduced where one

non-standing

director of the public institution must be appointed among its employees who have held their offices for at least three years and (i) is recommended by the representative of the employees (or the representative of the labor union of the public institution if there is a labor union comprising the majority of the employees) or (ii) obtains consent from the majority of the employees of a public institution. The specific guidelines is not yet released for the implementation of such Act, but once released, we expect to take appropriate measures including amending our articles of incorporation in order to appoint a new labor director in accordance with such Act.

Standing Directors

The standing directors refer to our directors who serve their directorship positions in full-time capacity.

Our president serves as our chief executive officer and represents us and administers our

day-to-day

business in all matters and bears the responsibility for the management’s performance. Our president is appointed by the President of the Republic upon the motion of the Ministry of Trade, Industry and Energy following the nomination by our director nomination committee, the review and resolution of the Committee for Management of Public Institutions pursuant to the Act on the Management of Public Institutions and an approval at the general meeting of our shareholders.

In the event the president acts in violation of law or the Articles of Incorporation, is negligent in his duties, or otherwise is deemed to be significantly impeded in performing his official duties as president, the board of directors may by resolution request the minister of the Ministry of Trade, Industry and Energy to dismiss or recommend the dismissal of the president.

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Our standing director(s) who concurrently serves as a member of the audit committee is appointed through the same appointment process applicable to our president, except that the motion for appointment is made by the Ministry of Economy and Finance instead of the Ministry of Trade, Industry and Energy. Such director is

non-executive

in that he or she does not participate in the management of us and our subsidiaries and meets the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule

10A-3

under the Exchange Act.

Standing directors other than our president or those who concurrently serve as members of the audit committee are appointed by our president with the approval at the general meeting of our shareholders.

The names, titles and outside occupations, if any, of the standing directors as of April 8, 2022 and the respective years in which they took office are set forth below.

Name (Gender)	Age	Position	Outside Occupation	Position Held Since
Cheong, Seung-Il (Male)	56	President & Chief Executive Officer	None	June 1, 2021
Choi, Young-Ho (Male)	57	Comptroller & Auditor General and Member of the Audit Committee (Non-executive)	None	November 16, 2020
Lee, Heyn-Bin (Male)	59	Corporate Senior Executive Vice President & Chief Business Management Officer	None	September 14, 2020
Lee, Jong-Hwan (Male)	61	Corporate Senior Executive Vice President & Chief Safety Officer & Chief Business Operations Officer	None	November 9, 2020
Park, Heon-Gyu (Male)	59	Corporate Senior Executive Vice President & Chief Financial & Strategic Planning Officer	None	May 28, 2021
Kim, Tae-Ok (Male)	59	Corporate Senior Executive Vice President & Chief Power Grid Officer	None	March 25, 2021
Lee, Heung-Joo (Male)	60	Corporate Senior Executive Vice President & Chief Global & Nuclear Business Officer	None	October 14, 2021

Cheong,

Seung-Il

has

been our President and CEO since June 1, 2021. Prior to his current position, he served as a Vice Minister of the Ministry of Trade, Industry and Energy, Deputy Minister of the Office of Energy and Resources, Director General for Energy Industry Policy under the Ministry of Trade, Industry and Energy and the President and CEO of Korea Gas Corporation. Mr. Cheong received an M.B.A. from Seoul National University.

Choi,

Young-Ho

has been our Standing Director since November 16, 2020. Mr. Choi previously served as an Expert Advisor at Presidential Committee for Balanced National Development and a mayor of

Nam-gu,

which is a local government in Gwangju Metropolitan City, as elected by popular vote. Mr. Choi received a M.A. in social work from Gwangju University.

Lee,

Heyn-Bin

has been our Standing Director since September 14, 2020. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Business Management Officer and previously served as the Vice President & Head of KEPCO-Tech Project Department of KEPCO and Vice President & Head of Human Resources Department. Mr. Lee received a Korean Executive M.B.A. in utilities management from Helsinki School of Economics.

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Lee, Jong-Hwan

has been our Standing Director since November 9, 2020. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Safety Officer & Chief Business Operations Officer and previously served as the Executive Vice President & Chief Technology Officer and Vice President & Head of New Business Promotion Department. Mr. Lee received a M.E. in electrical engineering from Konkuk University.

Park,

Heon-Gyu

has been our Standing Director since May 28, 2021. Mr. Park also currently serves as our Corporate Senior Executive Vice President & Chief Financial & Strategic Planning Officer and previously served as the Executive Vice President & Chief Cooperations Officer and Vice President & Head of Audit & Inspection Office. Mr. Park received a Korean Executive M.B.A. in utilities management from Helsinki School of Economics.

Kim,

Tae-Ok

has been our Standing Director since March 25, 2021. Mr. Kim also currently serves as our Corporate Senior Executive Vice President & Chief Power Grid Officer and previously served as the Vice President of Regional Headquarters KEPCO Gwangju-Jeonnam and Vice President & Head of Technology Planning Department. Mr. Kim received a B.E. in electrical engineering from Ajou University.

Lee,

Heung-Joo

has been our Standing Director since October 14, 2021. Mr. Lee also currently serves as our Corporate Senior Executive Vice President & Chief Global & Nuclear Business Officer and previously served as the Corporate Vice President & Head of UAE Nuclear Project Department and the Assistant Vice President & Head of Program Management Team under UAE Nuclear Project Department. Mr. Lee received a B.ME from Inha University.

Non-standing

Directors

The

non-standing

directors refer to our directors who do not serve their directorship positions in full-time capacity. The

non-standing

directors currently do not hold any executive positions with us or our subsidiaries.

Our

non-standing

directors must be appointed by the minister of the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee and must have ample knowledge and experience in business management. Appointment of

non-standing

directors to become part of the audit committee is subject to approval at the general meeting of our shareholders.

Although the classification of the directors applicable to us as a statutory juridical corporation established under the KEPCO Act is different from the classification under the Korean Commercial Act which consists of (i) an inside director (‘

sa-nae-isa

’ in Korean), (ii) an outside director (‘

sa-oe-isa

’ in Korean) and (iii) other directors who do not serve their directorship positions in full-time capacity but do not qualify as outside directors (‘

gita-bi-sang-moo-isa

’ in Korean), all of our

non-standing

directors have been, and are currently appointed from, candidates who satisfy the qualifications of an outside director under the Korean Commercial Act, as the KEPCO Act generally requires us to apply the Korean Commercial Act as applicable.

We strictly scrutinize whether a

non-standing

director candidate engaged in any related party transactions that would disqualify such candidate from his or her directorship under the Korean Commercial Act. Moreover, we have reinforced the decision-making power of

non-standing

directors by requiring both a majority and the chairperson of the board be

non-standing

directors. Our

non-standing

directors may request any information necessary to fulfill their duties from our president, and except in special circumstances, our president must comply with such request.

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The names, titles and outside occupations, if any, of the

non-standing

directors as of April 8, 2022 and the respective years in which they took office are set forth below.

Name (Gender)	Age	Position	Principal Occupation	Position Held Since
Seong, Si-Heon (Male)	61	Non-Executive Director, Chairperson of the Board of Directors and the ESG Committee	None	June 10, 2020
Kim, Jae-Shin (Female)	55	Non-Executive Director and Chairperson of the Audit Committee	Certified public accountant of Saedure Accounting Firm	July 9, 2021
Park, Jong-Bae (Male)	58	Non-Executive Director	Professor of Electrical and Electronics Engineering, Konkuk University	January 31, 2020
Bang, Su-Ran (Female)	35	Non-Executive Director and Member of the ESG Committee	Senior Advisor of Seoul Energy Corporation Attorney-at-law/Partner of Law Firm S	September 1, 2020
Park, Hyo-Sung (Male)	63	Non-Executive Director and Member of the Audit Committee	None	April 14, 2021
Lee, Kee-Man (Male)	61	Non-Executive Director	Professor of Aerospace Engineering, Sunchon University	April 14, 2021
Hwang, Cheol-Ho (Male)	44	Non-Executive Director and Member of the ESG Committee	Head of Research support group on Carbon-neutral City under International Climate & Environment Center	April 14, 2021
Lee, Kye-Sung (Male)	65	Non-Executive Director	None	July 9, 2021

Seong,

Si-Heon

has been our

Non-Standing

Director since June 10, 2020. Mr. Seong previously served as the Chairperson and President of Korea Evaluation Institute of Industrial Technology and the Administrator of Korean Agency for Technology and Standards under the Ministry of Trade, Industry and Energy. Mr. Seong graduated from ChunchonHigh School.

Kim, Jae-Shin

has been our Non-Standing Director since July 9, 2021. Ms. Kim currently serves a certified public accountant of Saedure Accounting Firm, Non-standing director of the Korean Institute of Certified Public Accountants and the President of women’s association of the Korean Institute of Certified Public Accountants. Ms. Kim received a B.A. and M.B.A. from Ewha Womans University.

Park,

Jong-Bae

has been our

Non-Standing

Director since January 31, 2020. Mr. Park is currently the professor of Electrical and Electronics Engineering at Konkuk University. Mr. Park previously served as a Head of the Office of Career Development and Placement at Konkuk University. Mr. Park received a B.S. and a Ph.D in Electrical and Electronics Engineering from Seoul National University.

Bang,

Su-Ran

has been our

Non-Standing

Director since September 1, 2020. Ms. Bang is currently the Senior Advisor of Seoul Energy Corporation and the

Attorney-at-law

and Partner of Law Firm S, Ms. Bang previously served as the

Non-executive

Director of Korea Energy Information Culture Agency. Ms. Bang previously served as the

Non-executive

Director of Korea Energy Information Culture Agency. Ms. Bang received a L.L.B. from Ewha Womans University.

Park, Hyo-Sung

has been our

Non-Standing

Director since April 14, 2021. Mr. Park previously served as a Consul-General of Korean Consulate General in New York, U.S.A., Ambassador Extraordinary and Plenipotentiary to Romania and Ambassador and Deputy Permanent Representative of Korean Permanent

113

Mission to the UN Office and other International Organizations in Geneva, Switzerland. Mr. Park received a B.A. in Political Science and International Relations from Hankuk University of Foreign Studies and a M.A. in International Relations and M.G.A. (Master of Governmental Administration) from University of Pennsylvania.

Lee,

Kee-Man

has been our

Non-Standing

Director since April 14, 2021. Mr. Lee is currently the professor of Aerospace Engineering at Sunchon University. Mr. Lee previously served as the professor of Mechanical and Automotive Engineering at Jeonnam State University. Mr. Lee received a B.E. and a M.E. in Mechanical Engineering from Inha University and a Ph.D. in Mechanical Engineering from Korea Advanced Institute for Science and Technology (KAIST).

Hwang,

Cheol-Ho

has been our

Non-Standing

Director since April 14, 2021. Mr. Hwang is currently the Head of Research support group on Carbon-neutral City under International Climate & Environment Center and a civilian member of Korea’s Presidential Committee on Green Growth. Mr. Hwang received a B.E. and a M.E. in Environmental Engineering from Chosun University and a Ph.D. in Environmental Engineering from Chosun University.

Lee,

Kye-Sung

has been our

Non-Standing

Director since July 9, 2021. Mr. Lee previously served as a Senior Secretary for Political Affairs of National Assembly Speaker and a Spokesman of National Assembly Speaker. Mr. Lee received a B.A. in Political Science from Seoul National University and a M.A. in North Korean Studies from Yonsei University.

Term of Office of Directors

The term of our president is three years, while that of our directors (standing or

non-standing,

but except the president) is two years. According to the Act on the Management of Public Institutions, our president’s term cannot be terminated unless done so by the President of the Republic pursuant to the Act on the Management of Public Institutions or upon an event as specified in our Articles of Incorporation.

Resolutions of meeting of the Board of Directors

Attendance by a majority of the board members constitutes a voting quorum for our board meetings, and resolutions can be passed by a majority of the board members.

The business address of our directors is 55

Jeollyeok-ro,

Naju-si,

Jeollanam-do,

58322, Korea.

Audit Committee

Under the Act on the Management of Public Institutions, which took effect as of April 1, 2007, we are designated as a “market-oriented public enterprise” and, as such, are required to establish an audit committee in lieu of the

pre-existing

board of auditors upon expiration of the term of the last remaining member of the board of auditors. In September 2007, we amended our Articles of Incorporation to establish, in lieu of the

pre-existing

board of auditors, an audit committee meeting the requirements under the Sarbanes-Oxley Act. Under the Act on the Management of Public Institutions, the Korean Commercial Act and the amended Articles of Incorporation, we are required to maintain an audit committee consisting of three members, of which not less than two members are required to be

non-standing

directors. In addition, pursuant to certain amendments to the Act on the Management of Public Institutions that became effective as of January 1, 2021, in appointing the standing member of the audit committee, the director nomination committee shall recommend the person who is qualified in any of the followings: (i) a person who is qualified as a certified public accountant or an attorney and has a minimum of three years of experience in work related to such qualification, (ii) a person who has served as an assistant professor or at a higher position for at least three years in areas directly related to audit, investigation and judicial affairs, budget and accounting, investigation, planning and evaluation, etc. (hereinafter referred to as “audit-related works”) at a school under subparagraphs 1 through 5 of Article 2 of the Higher Education Act),

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(iii) a person who has been in charge of audit-related works for at least three years at a public institution, stock-listed corporation or research institute under Article 9(15)3 of the Financial Investment Services and Capital Markets Act and has experience prescribed by Presidential Decree, (iv) person who has been in charge of audit-related works for at least three years at the state or a local government and has served as a public official at the level prescribed by Presidential Decree, or (v) person with other expertise in accordance with the affairs of the relevant institution and qualified as prescribed by Presidential Decree.

The roles and responsibilities of our audit committee members are to perform the functions of an audit committee meeting the requirements under the Sarbanes-Oxley Act. Our audit committee was established on December 8, 2008.

On April 2, 2021, we amended our Articles of Incorporation to incorporate an amendment to the Commercial Act implemented on December 29, 2020, which requires at least one director who will serve as a member of the audit committee to be appointed separately from other directors at the meeting of shareholders.

Choi,

Young-Ho,

a standing director, Kim,

Jae-Shin

and Park,

Hyo-Sung,

both

non-standing

directors, are currently members of our audit committee. All such members of the audit committee are independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Korean Commercial Act and the New York Stock Exchange listing standards.

ESG Committee

We established an Environment, Social and Governance (“ESG”) Committee in our board of directors to reinforce

ESG-based

management system and to ensure continuous performance in this area. The ESG Committee is to consist of three directors. As of the date of this annual report, Seong, Si-Heon, Bang, Su-Ran and Hwang,

Cheol-Ho,

all

non-standing

directors, are the members of our ESG committee. Our ESG Committee is charged with resolving major management issues related to ESG, establishing ESG management strategies and business plans and checking on the overall direction of sustainable management.

Item 6.B. Compensation

The aggregate amount of remuneration paid to our standing and

non-standing

directors in the aggregate consist of (i) salaries and wages paid to standing and

non-standing

directors, which amounted to Won 1,512 million in aggregate in 2021, and (ii) accrued retirement and severance benefits for standing directors, which amounted to Won 21 million in 2021. Under the Act on the Management of Public Institution, our executive officers consist of the president and the standing and

non-standing

directors. Standing directors, except the standing director who concurrently serves as a member of our audit committee, take executive positions with our company while the other directors, including

non-standing

directors, do not. We do not have any other officer who is in charge of a principal business unit, division or function, any other officer who performs a policy making function or any other person who performs similar policy making functions for us.

Item 6.C. Board Practices

Under the Act on the Management of Public Institutions and our Articles of Incorporation, for appointments made after April 1, 2007, the term of office for our president is three years and the term of our office for our directors (whether standing or

non-standing

but not the president) is two years. Our president and directors may be reappointed for one or more additional terms of one year. In order to be reappointed, the president must be evaluated on the basis of his management performance; a standing director, on the basis of the performance of the duties for which he was elected to perform, or if the standing director has executed an incentive bonus contract, on the basis of his performance under the contract; and a

non-standing

director, on the basis of his performance of the duties for which he was elected to perform.

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Our board currently does not maintain a compensation committee. See Item 16.G. “Corporate Governance.” However, we currently maintain an audit committee meeting the requirements of the Sarbanes-Oxley Act to perform the roles and responsibilities of the compensation committee. Prior to the establishment of the audit committee on December 8, 2008 pursuant to the Act on the Management of Public Institutions, we maintained a board of auditors, which performed the roles and responsibilities required of an audit committee under the Sarbanes-Oxley Act, including the supervision of the financial and accounting audit by the independent registered public accountants.

Our president’s management contract includes benefits upon termination of his employment. The amount for termination benefits payable equals the average value of compensation for one month times the number of years the president is employed by us, provided that the president is only eligible for termination benefits after more than one year of continuous service.

The termination benefits for our standing directors are determined in accordance with our internal regulations for executive compensation. Standing directors are eligible for benefits only upon termination of employment or death following one year of continuous service.

See also Item 16.G. “Corporate Governance” for a further description of our board practices.

Item 6.D. Employees

As of December 31, 2021, we and our generation subsidiaries had a total of 48,809 regular employees, almost all of whom are employed within Korea. Approximately 10.9% of our regular employees (including employees of our generation subsidiaries) are located at our head office.

The following table sets forth the number of and other information relating to our regular employees, not including directors or senior management, as of December 31, 2021.

	KEPCO		KHNP		KOSEP		KOMIPO		KOWEPO		KOSPO		EWP		Total
Regular Employees
Administrative		5,207		1,037		355		417		280		313		271		7,880
Engineers		12,518		9,925		2,239		2,158		2,154		1,952		2,109		33,055
Others		5,556		1,130		213		175		257		418		125		7,874
Total		23,281		12,092		2,807		2,750		2,691		2,683		2,505		48,809
Head Office Employees		1,778		1,409		465		420		393		450		403		5,318
% of total		7.6%		11.7%		16.6%		15.3%		14.6%		16.8%		16.1%		10.9%
Members of Labor Union		18,119		8,611		2,023		1,715		1,894		1,796		1,807		35,965
% of total		77.8%		71.2%		72.1%		62.4%		70.4%		66.9%		72.1%		73.7%

We and each of our generation subsidiaries have separate labor unions. Approximately 73.7% of our and our generation subsidiaries’ employees in the aggregate are members of these labor unions, each of which negotiates a collective bargaining agreement for its members each year. Under applicable Korean law, an employee-employer cooperation committee comprised of an equal number of representatives of management and labor (which shall be no less than three and no more than ten representatives from each of management and labor) is required to be established. Accordingly, an employee-employer cooperation committee composed of eight representatives of management and eight representatives of labor has been established at us and at each of our generation subsidiaries. The committee meets periodically to discuss various labor issues.

Since our formation in 1981, our businesses had not been interrupted by any work stoppages or strikes except in early 2002, when employees belonging to our five

non-nuclear

generation subsidiaries went on strike for six weeks to protest the Government’s decision to privatize such

non-nuclear

generation subsidiaries

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according to the Restructuring Plan, which privatization plan has since been suspended indefinitely. See Item 3.D. “Risk Factors—Risks Relating to KEPCO—The Government may adopt policy measures to substantially restructure the Korean electric power industry or our operational structure, which may have a material adverse effect on our business, operations and profitability.”

We believe our relations with our employees are generally good.

Item 6.E. Share Ownership

As of December 31, 2021, none of our directors and members of our administrative, supervisory or management bodies own more than 0.1% of our common stock individually and in aggregate.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

Item 7.A. Major Shareholders

The following table sets forth certain information relating to certain owners of our capital stock as of December 31, 2021:

Title of Class	Identity of Person or Group	Shares Owned		Percentage of Class (1) (%)
Common stock	Government		116,841,794		18.2
	Korea Development Bank (2)		211,235,264		32.9
	Subtotal		328,077,058		51.1
	National Pension Service		37,969,179		5.9
	Employee Stock Ownership Association		4,874,457		0.8
	Directors as a group		1,789		0.0
	Public (non-Koreans)		91,105,897		14.2
	Common shares		79,780,464		12.4
	American depositary shares		11,325,433		1.8
	Public (Koreans)		179,935,697		28.0
	Total		641,964,077		100.0

Notes:

(1) Percentages are based on issued shares of common stock.

(2) Korea Development Bank is a Government-controlled entity.

All of our shareholders have equal voting rights. See Item 10.B. “Memorandum and Articles of Incorporation—Description of Capital Stock—Voting Rights.”

Item 7.B. Related Party Transactions

We are engaged in a variety of transactions with our affiliates. We have related party transactions with Government-controlled entities such as Korea Gas Corporation, our consolidated subsidiaries and our equity investees. In addition, we engage in related party transactions with Korea Development Bank, one of our major shareholders. See Note 47 of the notes to our consolidated financial statements included in this annual report for a description of transaction and balances with our related parties.

In the past three years, our related party transactions principally consisted of purchases of LNG from Korea Gas Corporation and long-term borrowings from Korea Development Bank. In 2019, 2020 and 2021, we and our generation subsidiaries purchased LNG from Korea Gas Corporation in the aggregate amount of Won 4,049 billion, Won 3,271 billion and Won 5,647 billion, respectively. As of December 31, 2021, we had borrowings from Korea Development Bank in the aggregate amount of Won 353 billion, which had an interest rate range of 0.50% to 4.60% as well as 1 year KoFC bond rate between +0.81 and +0.95 for certain operating funds.

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We also engage in extensive transactions with our consolidated generation subsidiaries, including the purchase of electricity from them through Korea Power Exchange, sales of electricity to them, payment and receipt of commissions for services and receivables and payables transactions. These are eliminated in the consolidation process. See Note 50 to our consolidated financial statements included in this annual report for payment guarantees. We also provide guarantees for certain of our affiliates. We also have certain relationships with the Korea Power Exchange. See Item 4.B. “Business Overview—Purchase of Electricity—Cost-based Pool System.”

For a further description of our transactions with our affiliates, see Note 47 of the notes to our consolidated financial statements included in this annual report.

Item 7.C. Interests of Experts and Counsel

Not applicable.

ITEM 8. FINANCIAL INFORMATION

Item 8.A. Consolidated Statements and Other Financial Information

See Item 18. “Financial Statements” and our consolidated financial statements included in this annual report.

Legal Proceedings

As of December 31, 2021, we and our subsidiaries were engaged in 683 lawsuits as a defendant and 284 lawsuits as a plaintiff. As of the same date, the total amount of damages claimed against us and our subsidiaries was Won 689 billion, for which we have made a provision of Won 115 billion as of December 31, 2021, and the total amount claimed by us and our subsidiaries was Won 784 billion as of December 31, 2021. While the outcome of any of these lawsuits cannot presently be determined with certainty, our management currently believes that the final results from these lawsuits will not have a material adverse effect on our liquidity, financial position or results of operations.

The following are potentially significant claims pertaining to us and our subsidiaries.

In December 2013, the Supreme Court of Korea ruled that regular bonuses fall under the category of ordinary wages on the condition that those bonuses are paid regularly and uniformly, and that any agreement which excludes such regular bonuses from ordinary wage is invalid. One of the key rulings provides that bonuses that are given to employees (i) on a regular and continuous basis and (ii) calculated according to the actual number of days worked (iii) that are not incentive-based must be included in the calculation of “ordinary wages.” The Supreme Court further ruled that in spite of invalidity of such agreements, employees shall not retroactively claim additional wages incurred due to such court decision, in case that such claims bring to employees unexpected benefits which substantially exceeds the wage level agreed by employers and employees and cause an unpredicted increase in expenditures for their company, which would lead the company to material managerial difficulty or would be a threat to the existence of the company. In that case, the claim is not acceptable since it is unjust and is in breach of the principle of good faith. As a result of such ruling by the Supreme Court of Korea, we and our subsidiaries became subject to a number of lawsuits filed by various industry-wide and company-specific labor unions based on claims that ordinary wage had been paid without including certain items that should have been included as ordinary wage. In July 2016, the court ruled against us, and in accordance with the court’s ruling, in August 2016 we paid Won 55.1 billion to the employees for three years of back pay plus interest. As of December 31, 2021, however, 12 lawsuits were pending against our subsidiaries for an aggregate claim amount of Won 38 billion, for which our subsidiaries set aside an aggregate amount of Won 3.2 billion to cover any potential future payments of additional ordinary and average wage in relation to the related lawsuits.

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All cases are currently

on-going

at various stages of proceedings. We cannot presently assure you that the courts will not ultimately rule against our subsidiaries in these lawsuits, or that the amount of our reserves against these lawsuits will be sufficient to cover the amounts actually payable under court rulings. Any of these developments would adversely affect our results of operations.

During the period from 2014 to 2021, certain residential customers filed class action lawsuits against us based on the claim that electricity tariffs, determined under the progressive rate structure, were excessive. As of December 31, 2021, we were subject to 14 such lawsuits brought by approximately 10,000 plaintiffs with an aggregate claim amount of Won 7.1 billion. Of these 14 lawsuits, seven cases are currently pending in the third round of proceedings (for which we won all of the first and second rounds of proceedings, except for one case) and four cases are currently pending in the second round of proceedings (for which we won all of the first rounds of proceedings). Three cases are currently pending in the first round of proceedings.

In November 2019, prosecutors indicted six of KHNP’s employees for, among others, failing to immediately shut down Hanbit #1 reactor when its thermal output exceeded the threshold specified by the nuclear safety technical operations manual and filing false reports to the NSSC. KHNP is also indicted for secondary liability from its employees’ alleged wrongdoings. The case stemmed from the NSSC’s investigations into the manual shutdown of Hanbit #1 reactor during a diagnostic test in May 2019. In February 2021, the Gwangju District Court acquitted the employees of their charges of violating the safety technical operations manual and driving a vehicle without a license during the incident. However, three employees were fined for filing false reports to the NSSC and KHNP was also fined in accordance with the disciplinary regulations. The prosecutors appealed the District Court’s decision and the case is currently being adjudicated in the Gwangju District Court.We cannot assure you that the outcomes of the ongoing case will not have any material adverse effect on us, our reputation and our operating results.

In addition, our generation subsidiaries, currently and from time to time, are involved in lawsuits incidental to the conduct of their business. A significant number of such lawsuits are based on the claim that the construction and operation of the electricity generation units owned by our generation subsidiaries have impaired neighboring fish farms. Our generation subsidiaries normally pay compensation to the members of fishery associations near our power plant complex for expected losses and damages arising from the construction and operation of their power plants in advance. Despite such compensation paid by us, a claim may still be filed against our generation subsidiaries challenging the compensation paid by us.

The nuclear power plant at Wolsong #1 unit began operations in 1982 and ended its operations in 2012 pursuant to its

30-year

operating license. In February 2015, the NSSC evaluated the safety of operating Wolsong #1 unit and approved its extended operation until November 2022. However, on June 15, 2018, the board of directors of KHNP decided to retire Wolsong #1 unit earlier than planned due to comprehensive evaluation of the economic viability and regional sentiment of its continuing operation. On December 24, 2019, the NSSC approved the permanent shutdown of Wolsong #1 unit. The Board of Audit and Inspection of Korea carried out an investigation into whether the shutdown of Wolsong #1 unit was economically feasible and reported that the benefits of continued operations were set unreasonably low compared to the benefits of being immediately shut down, which may have led to the approval of the permanent shutdown of Wolsong #1 unit. According to the results for the investigation on October 20, 2020, KHNP established new guidelines for economic feasibility assessment in December 2021. On June 30, 2021, the Daejeon District Prosecutor’s Office indicted the CEO of KHNP for his role in approving the early retirement of Wolsong #1 unit, which was the subject of the aforementioned investigation by the Board of Audit Inspection of Korea. The CEO of KHNP is facing charges of breach of trust and obstruction of business and the case is currently being adjudicated at the Daejeon District Court.

In May 2019, a group of 729 Korean nationals brought a lawsuit against the NSSC to suspend the operation of Shin-Kori #4. In July 2019, we have applied to participate in the lawsuit as a stakeholder. In February 2021, the Seoul Administrative Court dismissed the plaintiffs’ claim. The plaintiffs subsequently appealed in March 2021 and the case is currently being adjudicated in the Seoul High Court. We cannot assure you that there will not be new challenges to prohibit the construction of new nuclear units in the future, whereby we may experience

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a loss of revenues and an increase in our overall fuel costs (as nuclear fuel is the cheapest compared to coal, LNG or oil) as a result of such prohibition, which could adversely affect our results of operation and financial condition.

Currently, KHNP is going through a trial at a district court against 3,910 people who have brought a retirement pension and severance payment claim. In connection with such lawsuit, KHNP has recognized Won 11.73 billion as a litigation provision.

Currently, KEPCO KDN is facing a contract dispute claim on appeal at the Seoul High Court. The parties are disputing the commencement of commercial operations in connection with the construction project of a waste oil refining power generation plant of Next energy Co., Ltd. In connection with such lawsuit, KEPCO KDN has recognized Won 18.45 billion as a provision to reflect the amount of probable outflow of resources.

On May 18, 2021, the Gwangju District Prosecutor’s Office indicted one KHNP employee for falsely reporting the results of the investigation on welding errors in the reactor head penetration pipe to the Nuclear Safety Committee. The case is currently going through trial in the Gwangju District Court.

We and our subsidiaries are also involved in the following arbitrations, among others.

• Enzen, one of our subcontractors, filed an arbitration case against us over a contractual dispute in connection with the electric power IT modernization project in Kerala, India. We have not recognized any losses because the probability of economic benefit outflow is remote and the related amount cannot be reasonably determined.

• GE Energy Products France SNC and General Electric Global Services GmbH filed for arbitration against us to the Korea Commercial Arbitration Board regarding additional payments of construction cost, but we have not recognized any estimated provision because we believe the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

On November 9, 2018, certain of our former executive and employees were convicted in a district court on charges for receiving bribes. In May 2019, the appellate court confirmed the charges.

As part of our efforts to prevent recurrence of similar cases, we have implemented the following measures:

• Implementing web training program on integrity for all employees,

• Strengthening integrity and anti-corruption evaluation systems for high-ranking officers and reflecting such results in performance evaluations,

• Increasing the punishment and penalties for employee corruption, and

• Declaring management unaffected by conflicts of interest through banning the pursuit of private interests in the course of job performance and creating a work environment that caters integrity.

We do not believe such claims or proceedings, individually or in the aggregate, have had or will have a material adverse effect on us and our generation subsidiaries. However, we cannot assure you that this will be the case in the future, given the possibility that we may become subject to more legal and arbitral proceedings arising from changes in the environmental laws and regulations as they become applicable to us and our generation subsidiaries, and the related growth in demand for more compensation by actual and potential affected parties. Further, we cannot assure you that the above convictions and/or related events will not have an adverse effect on our reputation as well as the price of our common shares and our American depositary shares.

Dividend Policy

For our dividend policy, see Item 10.B. “Memorandum and Articles of Incorporation—Description of Capital Stock—Dividend Rights.” For a description of the tax consequences of dividends paid to our

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shareholders, see Item 10.E. “Taxation—Korean Taxes—Shares or ADSs—Dividends on the Shares of Common Stock or ADSs” and Item 10.E. “Taxation—U.S. Federal Income Tax Consideration for U.S. Persons—Tax Consequences with Respect to Common Stock and ADSs—Distributions on Common Stock or ADSs.”

Item 8.B. Significant Changes

Except as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of our audited consolidated financial statements included in this annual report.

ITEM 9. THE OFFER AND LISTING

Item 9.A. Offer and Listing Details

Notes

We have issued the following registered notes and debentures, which are traded principally in the

over-the-counter

market:

• 7.95% Zero-To-Full Debentures, due April 1, 2096 (the “7.95% Debentures”);

• 6% Debentures due December 1, 2026, (the “6% Debentures”);

• 7% Debentures due February 1, 2027 (the “7% Debentures”); and

• 6-3/4% Debentures due August 1, 2027 (the “6-3/4% Debentures,” and together with the 7.95% Debentures, the 6% Debentures and the 7% Debentures, the “Registered Debt Securities”).

Sales prices for the Registered Debt Securities are not regularly reported on any United States securities exchange or other United States securities quotation service.”

Share Capital

The principal trading market for our common stock is the Korea Exchange. Our common stock is also listed on the New York Stock Exchange in the form of ADSs. The ADSs have been issued by Citibank, N.A. as depositary and are listed on the New York Stock Exchange under the symbol “KEP.” One ADS represents

one-half

of one share of our common stock. As of December 31, 2021, 22,650,866 ADSs representing 1.8% shares of our common stock were outstanding.

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Common Stock

Shares of our common stock are listed on the KRX KOSPI Market of the Korea Exchange. The table below shows the high and low closing prices on the KRX KOSPI Market of the Korea Exchange for our common stock since 2017.

	Closing Price
Period	High		Low
	(In Won)
2017
First Quarter		48,750		40,350
Second Quarter		46,700		40,800
Third Quarter		45,500		38,200
Fourth Quarter		41,100		37,350
2018
First Quarter		37,750		30,850
Second Quarter		37,750		32,000
Third Quarter		33,300		28,700
Fourth Quarter		34,350		23,850
2019
First Quarter		35,800		29,900
Second Quarter		30,350		24,700
Third Quarter		27,950		24,700
Fourth Quarter		29,250		25,100
October		26,300		25,100
November		28,150		25,250
December		29,250		27,450
2020
First Quarter		28,500		16,250
Second Quarter		23,850		19,000
Third Quarter		21,950		18,700
Fourth Quarter		28,300		19,950
October		21,750		19,950
November		22,550		20,300
December		28,300		21,500
December		29,250		27,450
2021
First Quarter		27,150		22,700
Second Quarter		27,150		23,350
Third Quarter		25,650		23,150
Fourth Quarter		23,750		20,750
October		23,450		22,250
November		23,750		20,750
December		22,500		20,950
2022
First Quarter		24,750		20,100
January		22.350		20.100
February		23,200		21,100
March		24,750		22,550
April (through April 8)		23,250		22,000

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ADSs

The table below shows the high and low closing prices on the New York Stock Exchange for the outstanding ADSs since 2017. Each ADS represents

one-half

of one share of our common stock.

	Closing Price per ADS
Period	High		Low
	(In US$)
2017
First Quarter		21.35		17.53
Second Quarter		20.80		17.82
Third Quarter		20.38		16.73
Fourth Quarter		18.22		16.60
2018
First Quarter		17.83		14.28
Second Quarter		17.43		14.34
Third Quarter		14.70		12.62
Fourth Quarter		14.96		10.52
2019
First Quarter		15.75		13.01
Second Quarter		13.20		10.42
Third Quarter		11.79		10.24
Fourth Quarter		12.22		10.52
2020
First Quarter		17.82		10.51
Second Quarter		15.65		10.15
Third Quarter		14.59		11.20
Fourth Quarter		16.25		11.47
October		12.62		11.47
2021
First Quarter		12.37		10.04
Second Quarter		12.18		10.39
Third Quarter		11.06		9.84
Fourth Quarter		10.04		8.77
October		10.01		8.77
November		10.04		8.78
December		9.65		8.77
2022
First Quarter		10.18		8.34
January		9.29		8.34
February		9.70		8.71
March		10.18		9.31
April (through April 8)		9.54		9.00

Item 9.B. Plan of Distribution

Not applicable.

Item 9.C. Markets

The Korea Exchange

The Korea Exchange began its operations in 1956, originally under the name of the Korea Stock Exchange. On January 27, 2005, pursuant to the Korea Securities and Futures Exchange Act, the Korea Exchange was

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officially created through the consolidation of the Korea Stock Exchange, the Korea Futures Exchange, the KOSDAQ Stock Market, Inc., or KOSDAQ, and the KOSDAQ Committee within the Korea Securities Dealers Association, which was in charge of the management of the KOSDAQ. The KRX KOSPI Market of the Korea Exchange, formerly the Korea Stock Exchange, has a single trading floor located in Seoul. The Korea Exchange is a limited liability company, the shares of which are held by (i) securities companies and futures companies that were the members of the Korea Stock Exchange or the Korea Futures Exchange and (ii) the shareholders of the KOSDAQ.

As of March 31, 2022, the aggregate market value of equity securities listed on the KOSPI of the Korea Exchange was approximately Won 2,164,962 billion. The average daily trading volume of equity securities for the first quarter of 2022 was approximately 601 million shares with an average transaction value of Won 11,109 billion.

The Korea Exchange has the power in some circumstances to suspend trading of shares of a given company or to

de-list

a security. The Korea Exchange also restricts share price movements. All listed companies are required to file accounting reports annually, semi-annually and quarterly and to release immediately all information that may affect trading of a security.

The Government has in the past exerted, and continues to exert, substantial influence over many aspects of the private sector business community which can have the intention or effect of depressing or boosting the market. In the past, the Government has informally both encouraged and restricted the declaration and payment of dividends, induced mergers to reduce what it considers excess capacity in a particular industry and induced private companies to publicly offer their securities.

The Korea Exchange publishes the Korea Composite Stock Price Index, or KOSPI, every ten seconds, which is an index of all equity securities listed on the KRX KOSPI Market of the Korea Exchange. On January 1, 1983, the method of computing KOSPI was changed from the Dow Jones method to the aggregate value method. In the new method, the market capitalizations of all listed companies are aggregated, subject to certain adjustments, and this aggregate is expressed as a percentage of the aggregate market capitalization of all listed companies as of the base date, January 4, 1980.

Movements in KOSPI in the past five years are set out in the following table:

	Opening		High		Low		Closing
2017		2,026.16		2,557.97		2,026.16		2,467.49
2018		2,479.65		2,598.19		1,996.05		2,041.04
2019		2,010.00		2,248.63		1,909.71		2,197.67
2020		2,175.17		2,873.47		1,457.64		2,873.47
2021		2,944.45		3,305.21		2,839.01		2,977.65
2022 (through April 8)		2,988.77		2,989.24		2,614.49		2,700.39

Source:

The Korea Exchange

Shares are quoted

“ex-dividend”

on the first trading day of the relevant company’s accounting period; since the calendar year is the accounting period for the majority of listed companies, this may account for the drop in KOSPI between its closing level at the end of one calendar year and its opening level at the beginning of the following calendar year.

With certain exceptions, principally to take account of a share being quoted

“ex-dividend”

and

“ex-rights,”

upward and downward movements in share prices of any category of shares on any day are limited under the

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rules of the Korea Exchange to 30% of the previous day’s closing price of the shares, rounded down as set out below:

Previous Day’s Closing Price (Won)	Rounded Down to (Won)
less than 5,000	W	5
5,000 to less than 10,000		10
10,000 to less than 50,000		50
50,000 to less than 100,000		100
100,000 to less than 500,000		500
500,000 or more		1,000

As a consequence, if a particular closing price is the same as the price set by the fluctuation limit, the closing price may not reflect the price at which persons would have been prepared, or would be prepared to continue, if so permitted, to buy and sell shares. Orders are executed on an auction system with priority rules to deal with competing bids and offers.

Due to deregulation of restrictions on brokerage commission rates, the brokerage commission rate on equity securities transactions may be determined by the parties, subject to commission schedules being filed with the Korea Exchange by the securities companies. In addition, a securities transaction tax will generally be imposed on the transfer of shares or certain securities representing rights to subscribe for shares. A special agricultural and fishery tax of 0.15% of the sales prices will also be imposed on transfer of these shares and securities on the Korea Exchange. See Item 10.E. “Taxation—Korean Taxes.”

The number of companies listed on the KRX KOSPI Market of the Korea Exchange since 2016, the corresponding total market capitalization at the end of the periods indicated and the average daily trading volume for those periods are set forth in the following table:

Year	Number of Listed Companies		Total Market Capitalization on the Last Day for Each Period				Average Daily Trading Volume, Value
			(Millions of Won)		(Thousands of U.S. dollars) (1)		(Thousands of Shares)		(Millions of Won)		(Thousands of U.S. dollars) (1)
2017		774		1,605,820,912		1,504,422,814		340,457		5,325,760		4,989,470
2018		788		1,343,971,858		1,207,630,387		397,972		6,548,622		5,884,286
2019		799		1,475,909,366		1,277,290,667		470,723		4,989,807		4,318,309
2020		795		1,980,543,162		1,823,536,656		895,256		12,200,417		11,233,235
2021		818		2,203,366,546		1,853,749,408		1,039,479		15,424,224		12,976,800
2022 (through April 8)		821		2,119,201,356		1,729,819,081		656,227		11,067,694		9,034,114

Source

: The Korea Exchange

Note:

(1) Converted at the market average exchange rate as announced by Seoul Money Brokerage Services, Ltd. in Seoul at the end of the periods indicated.

The Korean securities markets are principally regulated by the Financial Services Commission and the Financial Investment Services and Capital Markets Act. The law imposes restrictions on insider trading and price manipulation, requires specified information to be made available by listed companies to investors and establishes rules regarding margin trading, proxy solicitation, takeover bids, acquisition of treasury shares and reporting requirements for shareholders holding substantial interests.

Protection of Customer’s Interest in Case of Insolvency of Financial Investment Companies with a Brokerage License

Under Korean law, the relationship between a customer and a financial investment company with a brokerage license in connection with a securities sell or buy order is deemed to be consignment, and the

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securities acquired by a consignment agent (i.e., the financial investment company with a brokerage license) through such sell or buy order are regarded as belonging to the customer insofar as the customer and the consignment agent’s creditors are concerned. Therefore, in the event of bankruptcy or reorganization procedures involving a financial investment company with a brokerage license, the customer of such financial investment company is entitled to the proceeds of the securities sold by such financial investment company.

When a customer places a sell order with a financial investment company with a brokerage license which is not a member of the Korea Exchange and this financial investment company places a sell order with another financial investment company with a brokerage license which is a member of the Korea Exchange, the customer is still entitled to the proceeds of the securities sold received by the

non-member

company from the member company regardless of the bankruptcy or reorganization of the

non-member

company.

Likewise, when a customer places a buy order with a

non-member

company and the

non-member

company places a buy order with a member company, the customer has the legal right to the securities received by the

non-member

company from the member company because the purchased securities are regarded as belonging to the customer insofar as the customer and the

non-member

company’s creditors are concerned.

Under the Financial Investment Services and Capital Markets Act, the Korea Exchange is obliged to indemnify any loss or damage incurred by a counterparty as a result of a breach by its members. If a financial investment company with a brokerage license which is a member of the Korea Exchange breaches its obligation in connection with a buy order, the Korea Exchange is obliged to pay the purchase price on behalf of the breaching member.

As the cash deposited with a financial investment company with a brokerage license is regarded as belonging to such financial investment company, which is liable to return the same at the request of its customer, the customer cannot take back deposited cash from the financial investment company with a brokerage license if a bankruptcy or reorganization procedure is instituted against such financial investment company and, therefore, can suffer from loss or damage as a result. However, the Depositor Protection Act provides that Korean Deposit Insurance Corporation will, upon the request of the investors, pay investors up to Won 50 million per depositor per financial institution in case of the such financial investment company’s bankruptcy, liquidation, cancellation of securities business license or other insolvency events (collectively, the “Insolvency Events”). Pursuant to the Financial Investment Services and Capital Markets Act, subject to certain exceptions, financial investment companies with a brokerage license are required to deposit the cash received from their customers with the Korea Securities Finance Corporation, a special entity established pursuant to the Financial Investment Services and Capital Markets Act.

Set-off

or attachment of cash deposits by financial investment companies with a brokerage license is prohibited. The premiums related to this insurance under the Depositor Protection Act are paid by financial investment companies with a brokerage license.

Item 9.D. Selling Shareholders

Not applicable.

Item 9.E. Dilution

Not applicable.

Item 9.F. Expenses of the Issue

Not applicable.

ITEM 10.

ADDITIONAL INFORMATION

Item 10.A. Share Capital

Not applicable.

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Item 10.B. Memorandum and Articles of Incorporation

Set forth below is information relating to our capital stock, including brief summaries of material provisions of our Articles of Incorporation, the KEPCO Act, the Financial Investment Services and Capital Markets Act, the Korean Commercial Act and certain related laws of Korea, all currently in effect. The following summaries are qualified in their entirety by reference to our Articles of Incorporation and the applicable provisions of the KEPCO Act, Financial Investment Services and Capital Markets Act, the Korean Commercial Act, the Act on the Management of Public Institutions and certain related laws of Korea. On April 2, 2021, we amended our Articles of Incorporation to accommodate new requirements under the Korean Commercial Act by requiring at least one director who will serve as a member of the audit committee to be appointed separately from other directors and adding details to the dividend record date in the article on shareholder rights.

Objects and Purposes

We are a statutory juridical corporation established under the KEPCO Act for the purpose of ensuring “stabilization of the supply and demand of electric power, and further contributing toward the sound development of the national economy through expediting development of electric power resources and carrying out proper and effective operation of the electricity business.” The KEPCO Act and our Articles of Incorporation (Article 2) contemplate that we engage in the following activities:

1. development of electric power resources;

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

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

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

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

6. businesses incidental to items 1 through 5;

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

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

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

8. other activities entrusted by the Government.

Our registered name is “Hankook Chollryuk Kongsa” in Korean and “Korea Electric Power Corporation” in English. Our registration number in the commercial registry office is 114671-0001456.

Directors

Under the KEPCO Act and our Articles of Incorporation, our board of directors consists of our president, standing directors and

non-standing

directors. A majority of the board members constitutes a voting quorum, and resolutions will be passed by a majority of the board members. Directors who have an interest in certain agenda proposed to the board may not vote on such issues.

The standards of remuneration for our officers, including directors, shall be determined by a resolution of the board of directors, provided that the maximum amount of remuneration to be paid to our officers shall be

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determined by shareholder resolution and provided that the remuneration standards for the president and standing directors shall be determined by board resolution in accordance with the guideline thereon established by the minister of the Ministry of Economy and Finance through review and resolution of our management committee. Directors who have an interest may not participate in the meeting of the board of directors for determining the remuneration for officers.

Neither the KEPCO Act nor our Articles of Incorporation have provisions relating to (i) borrowing powers exercisable by the directors and how such borrowing powers can be varied, (ii) retirement or

non-retirement

of directors under an age limit requirement, or (iii) the number of shares required for a director’s qualification.

Share Capital

Currently, our authorized share capital is 1,200,000,000 shares, which consists of shares of common stock and shares of

non-voting

preferred stock, par value Won 5,000 per share. Under our Articles of Incorporation, we are authorized to issue up to 150,000,000

non-voting

preferred shares. As of December 31, 2021, 641,964,077 common shares were issued and no

non-voting

preferred shares have been issued. All of the issued and outstanding common shares are fully-paid and

non-assessable

and are in registered form. Our shares are electronically registered with our account management institution in lieu of issuing share certificates.

Description of Capital Stock

Dividend Rights

Under the KEPCO Act, we are authorized to pay preferential dividends on our shares held by public shareholders as opposed to those held by the Government. Dividends to public shareholders are distributed in proportion to the number of shares of the relevant class of capital stock owned by each public shareholder following approval by the shareholders at a general meeting of shareholders. Korea Development Bank may receive dividends in proportion to the numbers of our shares held by them. Under the Korean Commercial Act and our Articles of Incorporation, we will pay full annual dividends on newly issued shares.

Under our Articles of Incorporation, holders of

non-voting

preferred shares (of which there are currently none) are entitled to receive an amount not less than 8% of their par value as determined by a resolution of the board of directors at the time of their issuance. However, stock dividends shall be paid based on par value and may not exceed the amount equivalent to a half of the total amount of profit available for dividend payment.

We declare our dividend annually at the annual general meeting of shareholders which is held within three months after the end of the fiscal year. The annual dividend is paid to the shareholders on record as of the end of the fiscal year preceding the annual shareholders’ meeting. Annual dividends may be distributed either in cash or in our shares. However, a dividend of shares must be distributed at par value, and dividends in shares may not exceed

one-half

of the annual dividend.

Under the Korean Commercial Act and our Articles of Incorporation, we do not have an obligation to pay any annual dividend unclaimed for five years from the payment date.

The KEPCO Act provides that we shall not pay an annual dividend unless we have made up any accumulated deficit and set aside as a legal reserve an amount equal to 20.0% or more of our net profit until our accumulated reserve reaches

one-half

of our stated capital.

Distribution of Free Shares

In addition to dividends in the form of shares to be paid out of retained or current earnings, the Korean Commercial Act permits us to distribute to our shareholders an amount transferred from our capital surplus or legal reserve to stated capital in the form of free shares.

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Voting Rights

Holders of our common shares are entitled to one vote for each common share, except that voting rights with respect to any common shares held by us or by a corporate shareholder, more than

one-tenth

of whose outstanding capital stock is directly or indirectly owned by us, may not be exercised. Any person (with certain exceptions) who holds more than 3% of our issued and outstanding shares cannot exercise voting rights with respect to the shares in excess of this 3% limit. See “—Limitation on Shareholdings.” Pursuant to the Korean Commercial Act, cumulative voting is permissible in relation to the appointment of directors. Under the Korean Commercial Act, a cumulative vote can be requested by the shareholders of a corporation representing at least 1% of the total voting shares of such corporation if the relevant shareholders’ meeting is intended to elect more than two seats of the board of directors and the request for cumulative voting is made to the management of the corporation in writing at least six weeks in advance of the shareholders’ meeting. Under this new voting method, each shareholder will have multiple voting rights corresponding to the number of directors to be appointed in such voting and may exercise all such voting rights to elect one director. Shareholders are entitled to vote cumulatively unless the Articles of Incorporation expressly prohibit cumulative voting. Our current Articles of Incorporation do not prohibit cumulative voting. Except as otherwise provided by law or our Articles of Incorporation, a resolution can be adopted at a general meeting of shareholders by affirmative majority vote of the voting shares of the shareholders present or represented at a meeting, which must also represent at least

one-fourth

of the voting shares then issued and outstanding. The holders of our

non-voting

preferred shares (other than enfranchised preferred shares (as described below)) are not entitled to vote on any resolution or to receive notice of any general meeting of shareholders unless the agenda of the meeting includes consideration of a resolution on which such holders are entitled to vote. If we are unable to pay any dividend to holders of

non-voting

preferred shares as provided in our Articles of Incorporation, the holders of

non-voting

preferred shares will become enfranchised and will be entitled to exercise voting rights until such dividends are paid. The holders of these “enfranchised preferred shares” have the same rights as holders of our common shares to request, receive notice of, attend and vote at a general meeting of shareholders. Pursuant to the KEPCO Act and our Articles of Incorporation, the appointment of standing directors, the president and standing member of the audit committee are subject to shareholder approval.

Under the Korean Commercial Act, for the purpose of electing our standing member of the audit committee, a shareholder (together with certain related persons) holding more than 3% of the total shares having voting rights may not exercise voting rights with respect to shares in excess of such 3% limit and, according to the amendments to Articles of Incorporation and the Korean Commercial Act, the standing member of the audit committee should be appointed separately from other directors with the procedures and methods stipulated in Article

542-12

of the Korean Commercial Act.

The Korean Commercial Act provides that the approval by holders of at least

two-thirds

of those shares having voting rights present or represented at a meeting, where such shares also represent at least

one-third

of the total issued and outstanding shares having voting rights, is required in order to, among other things:

• amend our Articles of Incorporation;

• remove a director (including a member of the audit committee);

• effect any dissolution, merger, consolidation or spin-off of us;

• transfer the whole or any significant part of our business;

• effect the acquisition by us of all of the business of any other company;

• effect the acquisition by us of the business of another company that may have a material effect on our business;

• reduce capital; or

• issue any new shares at a price lower than their par value.

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Under our Articles of Incorporation, an approval by the Ministry of Trade, Industry and Energy is required in order to amend the Articles of Incorporation. Any change to our authorized share capital requires an amendment to our Articles of Incorporation.

In addition, in the case of amendments to our Articles of Incorporation or any merger or consolidation of us or in certain other cases which affect the rights or interests of the

non-voting

preferred shares a resolution must be adopted by a meeting of the holders of

non-voting

preferred shares approving such event. This resolution may be adopted if approval is obtained from holders of at least

two-thirds

of those

non-voting

preferred shares present or represented at such meeting and such

non-voting

preferred shares also represent at least

one-third

of our total issued and outstanding

non-voting

preferred shares.

A shareholder may exercise his voting rights by proxy. The proxy shall present the power of attorney prior to the start of the general meeting of shareholders. Under the Financial Investment Services and Capital Markets Act and our Articles of Incorporation, no one other than us may solicit a proxy from shareholders.

Subject to the provisions of the deposit agreement, holders of our American Depositary Shares (“ADSs”) are entitled to instruct the depositary, whose agent is the record holder of the underlying common shares, how to exercise voting rights relating to those underlying common shares.

Preemptive Rights and Issuance of Additional Shares

Authorized but unissued shares may be issued at such times and, unless otherwise provided in the Korean Commercial Act, upon such terms as our board of directors may determine. The new shares must be offered on uniform terms to all our shareholders who have preemptive rights and who are listed on the shareholders’ register as of the record date. Subject to the limitations described under “—Limitation on Shareholdings” below and with certain other exceptions, all our shareholders are entitled to subscribe for any newly issued shares in proportion to their existing shareholdings. Under the Korean Commercial Act, we may vary, without shareholder approval, the terms of such preemptive rights for different classes of shares. Public notice of the preemptive rights to new shares and their transferability must be given not less than two weeks (excluding the period during which the shareholders’ register is closed) prior to the record date. Our board of directors may determine how to distribute shares for which preemptive rights have not been exercised or where fractions of shares occur.

Our Articles of Incorporation provide that new shares that are (1) publicly offered pursuant to the Financial Investment Services and Capital Markets Act, (2) issued to members of our employee stock ownership association, (3) represented by depositary receipts, (4) issued through offering to public investors, or (5) issued to investors in kind under the State Property Act may be issued pursuant to a resolution of the board of directors to persons other than existing shareholders, who in such circumstances will not have preemptive rights.

Under our Articles of Incorporation, we may issue convertible bonds or bonds with warrants each up to an aggregate principal amount of Won 2,000 billion and Won 1,000 billion, respectively, to persons other than existing shareholders. However, the aggregate principal amount of convertible bonds and bonds with warrants so issued to persons other than existing shareholders may not exceed Won 2,000 billion. The convertible bonds or bonds with warrants issued by us shall be electronically registered on the electronic registry maintained by the electronic registrar, in lieu of issuing any physical certificates representing such bonds in accordance with the Electronic Registration Act.

Under the Financial Investment Services and Capital Markets Act and our Articles of Incorporation, members of our employee stock ownership association, whether or not they are our shareholders, have a preemptive right, subject to certain exceptions, to subscribe for up to 20.0% of any shares publicly offered pursuant to the Financial Investment Services and Capital Markets Act. This right is exercisable only to the extent that the total number of shares so acquired and held by members of our employee stock ownership association does not exceed 20.0% of the total number of shares then outstanding.

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Liquidation Rights

In the event of our liquidation, the assets remaining after payment of all debts, liquidation expenses and taxes will be distributed among shareholders in proportion to the number of shares held. Holders of our

non-voting

preferred shares have no preference in liquidation.

Rights of Dissenting Shareholders

In certain limited circumstances (including, without limitation, the transfer of the whole or any significant part of our business or the merger, or consolidation upon a

split-off

of us with another company), dissenting holders of shares have the right to require us to purchase their shares. To exercise such right, shareholders must submit a written notice of their intention to dissent to us prior to the general meeting of shareholders or the class meeting of holders of

non-voting

preferred shares, as the case may be. Within 20 days after the date on which the relevant resolution is passed at such meeting, such dissenting shareholders must request us in writing to purchase their shares. We are obligated to purchase the shares of dissenting shareholders within one month after the expiration of such

20-day

period. The purchase price for such shares must be determined through negotiation between the dissenting shareholders and us. Under the Financial Investment Services and Capital Markets Act, if we cannot agree on a price through negotiation, the purchase price will be the average of (1) the weighted average of the daily share price on the Korea Exchange for a

two-month

period before the date of adoption of the relevant board resolution, (2) the weighted average of the daily share price on the Korea Exchange for the one month period before such date and (3) the weighted average of the daily share price on the Korea Exchange for the one week period before such date. However, if we or dissenting shareholders who requested us to purchase their shares oppose such purchase price, the determination of a purchase price may be filed with a court. Holders of ADSs will not be able to exercise dissenter’s rights unless they have withdrawn the underlying Common Stock and become our direct shareholders.

Transfer of Shares

Under the Electronic Registration Act, the transfer of shares is effected by the electronic registration of such transfers on an electronic register pursuant to the Electronic Registration Act, under which the electronic registration of stocks, bonds and transfers thereof will be required. To assert shareholders’ right against us, the transferee must have his name and address registered on our electronic register of shareholders. For this purpose, a shareholder is required to apply for electronic registration of transfers between accounts.

These requirements do not apply to the holders of ADSs. Under current Korean regulations, the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies with a dealing, brokerage or collective investment license and internationally recognized foreign custodians are authorized to act as agents and provide related services for foreign shareholders. Our transfer agent is Kookmin Bank, located at 26,

Gukjegeumyung-ro

8-gil,

Yeongdeungpo-gu,

Seoul, Korea. Certain foreign exchange controls and securities regulations apply to the transfer of our shares by

non-residents

of Korea or

non-Koreans.

See Item 9. “The Offer and Listing.”

Acquisition of Our Own Shares

Under the Korean Commercial Act, we may acquire our own shares through (1) purchases on a stock exchange or (2) purchase of the shares in proportion to the number of shares held by each shareholder on equal terms and conditions, by a resolution at a Shareholders’ meeting. The aggregate amount of the acquisition price shall not exceed the excess of our net assets, on a

non-consolidated

basis, over the sum of (1) our stated capital, (2) the total amount of our capital surplus reserve and earned surplus reserve which have accumulated up to the end of the previous fiscal year, (3) our earned surplus required to be accumulated for the then current fiscal year and (4) our net assets stated in the balance sheet as being increased as a result of the evaluation of the assets and liabilities in accordance with our accounting principles without being set off against any unrealized losses. In

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addition, under the Korean Commercial Act, we may not acquire our own shares if our net assets may fall short of the aggregate amount of the item (1) to (4) above, on a

non-consolidated

basis, as of the conclusion of the relevant business year of us. In general, our subsidiaries 50% or more of whose shares are owned by us may not acquire our shares.

General Meeting of Shareholders

The ordinary general meeting of our shareholders is held within three months after the end of each fiscal year, and subject to board resolution or court approval, an extraordinary general meeting of our shareholders may be held as necessary or at the request of shareholders holding an aggregate of 1.5% or more of our outstanding common shares for at least six consecutive months. Under the Korean Commercial Act, an extraordinary general meeting of shareholders may be convened at the request of our audit committee, subject to a board resolution or court approval. Holders of

non-voting

preferred shares may only request a general meeting of shareholders once the

non-voting

preferred shares have become enfranchised as described under “—Description of Capital Stock—Voting Rights” above. Written notices setting forth the date, place and agenda of the meeting must be given to shareholders at least two weeks prior to the date of the general meeting of shareholders. However, pursuant to the Korean Commercial Act and our Articles of Incorporation, with respect to holders of less than 1% of the total number of our issued and outstanding shares which are entitled to vote, notice may be given by placing at least two public notices at least two weeks in advance of the meeting in at least two daily newspapers published in Seoul or by placing a public notice in the electrical disclosure system of the Financial Supervisory Service or the Korea Exchange, at least two weeks in advance of the meeting. Currently, for giving such notice, we use an electronic disclosure system available for access at a website maintained by the Financial Supervisory Service (known as the Data Analysis, Retrieval and Transfer System, or DART). Shareholders not on the shareholders’ register as of the record date are not entitled to receive notice of the general meeting of shareholders or attend or vote at such meeting. Holders of the enfranchised preferred shares on the shareholders’ register as of the record date are entitled to receive notice of, and to attend and vote at, the general meetings. Otherwise, holders of

non-voting

preferred shares are not entitled to receive notice of general meetings of shareholders or vote at such meetings but may attend such meetings.

The general meeting of shareholders is held in Naju,

Jeollanam-do.

Register of Shareholders and Record Dates

Our transfer agent, Kookmin Bank, maintains the register of our shareholders at its office in Seoul, Korea. It registers transfers of our shares on the register of shareholders upon presentation of the share certificates.

The record date for annual dividends is December 31. For the purpose of determining the holders of shares entitled to annual dividends, the register of shareholders may be closed from January 1 to January 31 of each year. Further, the Korean Commercial Act and our Articles of Incorporation permit us at least two weeks’ public notice to set a record date and/or close the register of shareholders for not more than three months for the purpose of determining the shareholders entitled to certain rights pertaining to our shares. The trading of our shares and the electronic registration of share transfer between accounts pursuant to the Electronic Registration Act in respect of them may continue while the register of shareholders is closed.

Annual Report

At least one week prior to the annual general meeting of shareholders, our business report and audited consolidated financial statements must be made available for inspection at our principal office and at all branch offices. Copies of business reports, the audited

non-consolidated

financial statements and any resolutions adopted at the general meeting of shareholders will be available to our shareholders.

Under the Financial Investment Services and Capital Markets Act, we must file with the Financial Services Commission and the Korea Exchange an annual report within 90 days after the end of our fiscal year, a half-year

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report within 45 days after the end of the first six months of our fiscal year and quarterly reports within 45 days after the end of the first three months and nine months of our fiscal year. Following our adoption of IFRS starting in January 1, 2011 pursuant to regulatory requirements for listed companies in Korea, we are required to file annual, half-year and quarterly reports containing annual and interim financial statements and notes thereto on a consolidated basis as well as on a separate basis.

In addition, pursuant to the Enforcement Decree of the Commercial Act amended on January 29, 2020 and implemented from January 1, 2021, when a Korean listed company convokes a meeting of shareholders, it shall provide shareholders with the annual report and the audit report by sending them via email or posting them on its website no later than a week prior to the meeting of shareholders.

Limitation on Shareholdings

No person other than the Government, our employee stock ownership association and persons who obtain an approval from the Financial Services Commission may hold for its account more than 3% of our total issued and outstanding shares. In calculating shareholdings for this purpose, shares held by your spouse and your certain relatives or by your certain affiliates (such spouses, relatives and affiliates are together referred to as “Affiliated Holders”) are deemed to be held by you. If you hold our shares in violation of this 3% limit, you are not entitled to exercise the voting rights or preemptive rights of our shares in excess of such 3% limit and the Financial Services Commission may order you to take necessary corrective action. In addition, the KEPCO Act currently requires that the Government, directly or through Korea Development Bank, own not less than 51% of our capital. For other restrictions on shareholdings, see Item 9. “The Offer and Listing.”

Change of Control

The KEPCO Act requires that the Government, directly or pursuant to the Korea Development Bank Act, through Korea Development Bank, own not less than 51% of our capital.

Disclosure of Share Ownership

Under the Financial Investment Services and Capital Markets Act, any person whose direct or beneficial ownership of a listed company’s shares with voting rights, equity-related debt securities including convertible bonds, bonds with warrants, exchangeable bonds, certificates representing the rights to subscribe for common shares, derivatives-linked securities and depository receipts of the aforementioned securities (collectively referred to as “Equity Securities”), together with the Equity Securities directly or beneficially owned by certain related persons or by any person acting in concert with the person, accounts for 5% or more of our total outstanding Equity Securities is required to report the status and purpose (in terms of whether the purpose of shareholding is to participate in the management of the issuer) of the holdings and the material contents of the agreements relating to the Equity Securities and other matters prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act to the Financial Services Commission of Korea and the Korea Exchange within five business days after reaching the 5% ownership interest threshold.

In addition, (A) any change in the number of the owned Equity Securities that is 1% or more of the total outstanding Equity Securities subsequent to the report or (B) any change in (i) the purpose of the shareholding or ownership of the Equity Securities (whether such shareholding or ownership is to participate in the management of the listed company or not), (ii) whether such shareholding or ownership is for a simple investment purpose or not (limited to the case where the purpose of the shareholding or ownership of the Equity Securities is not to participate in the management of the listed company), (iii) the major terms and conditions of the agreements relating to the Equity Securities owned (such as trust agreements and collateral agreements) to the extent the number of relevant Equity Securities is 1% or more of the total outstanding Equity Securities or (iv) the type of the ownership (direct ownership or holdings) to the extent the number of relevant Equity Securities is equal to or exceeds 1% of the total outstanding Equity Securities, subsequent to the report, must be reported to the Financial

133

Services Commission and the Korea Exchange. Changes set forth in clauses (A) and (B) above must be reported within five business days from the date of such change (or by the tenth day of the month following the month in which the change described in (A) above occurs, in the case of a person (other than certain professional investors prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act) with a purpose of simple investment, or within ten business days from the date of such change in the case of a person with a purpose of general investment with no intent to seek management control).

Notwithstanding the foregoing, certain professional investors prescribed by the Presidential Decree of the Financial Investment Services and Capital Markets Act may report the 5% ownership status and the changes described in (A) above to the Financial Services Commission and the Korea Exchange by the tenth day of the month immediately following the end of the quarter in which such 5% ownership interest is reached or the change occurs.

When filing a report to the Financial Services Commission and the Korea Exchange in accordance with the reporting requirements described above, a copy of such report must be sent to the relevant listed company. Violation of these reporting requirements may subject a person to sanctions such as prohibition on the exercise of voting rights with respect to the Equity Securities for which the reporting requirement was violated or fines or imprisonment. Furthermore, the Financial Services Commission may order the disposal of the Equity Securities for which the reporting requirement was violated or may impose administrative fine.

A person reporting to the Financial Services Commission and the Korea Exchange that his purpose of holding the Equity Securities is to participate in the management of the listed company is prohibited from acquiring additional Equity Securities of the listed company and exercising voting rights during the period commencing from the date on which the event triggering the reporting requirements occurs to the fifth day from the date on which the report is made.

Item 10.C. Material Contracts

None.

Item 10.D. Exchange Controls

General

The Foreign Exchange Transaction Act and the Presidential Decree and regulations under that Act and Decree, or collectively the Foreign Exchange Transaction Laws, regulate investment in Korean securities by

non-residents

and issuance of securities outside Korea by Korean companies.

Non-residents

may invest in Korean securities pursuant to the Foreign Exchange Transaction Laws. The Financial Services Commission has also adopted, pursuant to its authority under the Financial Investment Services and Capital Markets Act, regulations that regulate investment by foreigners in Korean securities and issuance of securities outside Korea by Korean companies.

Subject to certain limitations, the Ministry of Economy and Finance has the authority to take the following actions under the Foreign Exchange Transaction Laws: (i) if the Government deems it necessary on account of war, armed conflict, natural disaster or grave, sudden and significant changes in domestic or foreign economic circumstances or similar events or circumstances, the Ministry of Economy and Finance may temporarily suspend performance under any or all foreign exchange transactions, in whole or in part, to which the Foreign Exchange Transaction Laws apply (including suspension of payment and receipt of foreign exchange) or impose an obligation to deposit, safe-keep or sell any instruments of payment to the Bank of Korea or certain other governmental agencies or a foreign exchange equalization fund or financial institutions, or effective from July 18, 2017, impose an obligation on resident creditors to collect and recover debts owed by

non-resident

debtors, and (ii) if the Government concludes that the international balance of payments and international

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financial markets are experiencing or are likely to experience significant disruption or that the movement of capital between Korea and other countries are likely to adversely affect the Korean Won, exchange rates or other macroeconomic policies, the Ministry of Economy and Finance may take action to require any person who intends to effect or effects a capital transaction to obtain permission or to deposit a portion of the instruments of payment acquired in such transactions with the Bank of Korea or a foreign exchange equalization fund or financial institutions.

Government Review of Issuances of Debt Securities and ADSs and Report for Payments

In order for us to issue debt securities of any series outside of the Republic, we are required to file a report with our designated foreign exchange bank or the Ministry of Economy and Finance on the issuance of such debt securities, depending on the issuance amount. The Ministry of Economy and Finance may at its discretion direct us to take measures as necessary to avoid undue exchange rate fluctuations before it accepts such report. Furthermore, in order for us to make payments of principal of or interest on the debt securities of any series and other amounts as provided in an indenture and such debt securities, we are required to present relevant documents to the designated foreign exchange bank at the time of each actual payment. The purpose of such presentation is to ensure that the actual remittance is consistent with the terms of the transaction reported to our designated foreign exchange bank or the Ministry of Economy and Finance.

In order for us to offer for purchase shares of our common stock held in treasury in the form of ADSs or issue shares of our common stock represented by the ADSs, we are required to file a prior report of such offer or issuance with our designated foreign exchange bank or the Ministry of Economy and Finance, depending on the offering amount. The Ministry of Economy and Finance may at its discretion direct us to take measures as necessary to avoid undue exchange rate fluctuations before it accepts such report. No further governmental approval is necessary for the initial offering and issuance of the ADSs.

In order for a depositary to acquire any existing shares of our common stock from holders of these shares of common stock (other than from us) for the purpose of issuance of depositary receipts representing these shares of common stock, the depositary would be required to obtain our consent for the number of shares to be deposited in any given proposed deposit which exceeds the difference between (1) the aggregate number of shares deposited by us or with our consent for the issuance of ADSs (including deposits in connection with the initial and all subsequent offerings of ADSs and stock dividends or other distributions related to these ADSs) and (2) the number of shares on deposit with the depositary at the time of such proposed deposit. We may not grant this consent for the deposit of shares of our common stock in the future, if our consent is required. Therefore, a holder of ADSs who surrenders ADSs and withdraws shares of our common stock may not be permitted subsequently to deposit such shares and obtain ADSs.

In addition, we are also required to notify the Ministry of Economy and Finance upon receipt of the full proceeds from the offering of ADSs. No additional governmental approval is necessary for the offering and issuance of ADSs.

Reporting Requirements for Holders of Substantial Interests

Under the Financial Investment Services and Capital Markets Act, any person whose direct beneficial ownership of a listed company’s Equity Securities, together with the Equity Securities beneficially owned by certain related persons or by any person acting in concert with such person, accounts for 5% or more of our total outstanding Equity Securities is required to report the status and purpose (namely, whether the purposes of the share ownership is to participate in the management of the issuer) of the holdings and the material contents of the agreements relating to the Equity Securities and other matters prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act to the Financial Services Commission and the Korea Exchange within five business days after reaching the 5% ownership interest and any change in ownership interest subsequent to the report which equals or exceeds 1.0% of the total outstanding Equity Securities is

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required to be reported to the Financial Services Commission and the Korea Exchange within five business days from the date of the change.

In addition, (A) any change in the number of the owned Equity Securities that is 1% or more of the total outstanding Equity Securities subsequent to the report or (B) any change in (i) the purpose of the shareholding or ownership of the Equity Securities (whether such shareholding or ownership is to participate in the management of the listed company or not), (ii) whether such shareholding or ownership is for a simple investment purpose or not (limited to the case where the purpose of the shareholding or ownership of the Equity Securities is not to participate in the management of the listed company), (iii) the major terms and conditions of the agreements relating to the Equity Securities owned (such as trust agreements and collateral agreements) to the extent the number of relevant Equity Securities is 1% or more of the total outstanding Equity Securities or (iv) the type of the ownership (direct ownership or holdings) to the extent the number of relevant Equity Securities is equal to or exceeds 1% of the total outstanding Equity Securities, subsequent to the report, must be reported to the Financial Services Commission and the Korea Exchange. Changes set forth in clauses (A) and (B) above must be reported within five business days from the date of such change (or by the tenth day of the month following the month in which the change described in (A) above occurs, in the case of a person (other than certain professional investors prescribed by the Presidential Decree under the Financial Investment Services and Capital Markets Act) with a purpose of simple investment, or within ten business days from the date of such change in the case of a person with a purpose of general investment with no intent to seek management control).

Notwithstanding the foregoing, certain professional investors prescribed by the Presidential Decree of the Financial Investment Services and Capital Markets Act may report the 5% ownership status and the changes described in (A) above to the Financial Services Commission and the Korea Exchange by the tenth day of the month immediately following the end of the quarter in which such 5% ownership interest is reached or the change occurs.

When filing a report to the Financial Services Commission and the Korea Exchange in accordance with the reporting requirements described above, a copy of such report must be sent to the relevant listed company. Violation of these reporting requirements may subject a person to sanctions such as prohibition on the exercise of voting rights with respect to the Equity Securities for which the reporting requirement was violated or fines or imprisonment. Furthermore, the Financial Services Commission may order the disposal of the Equity Securities for which the reporting requirement was violated or may impose administrative fine.

A person reporting to the Financial Services Commission and the Korea Exchange that his purpose of holding the Equity Securities is to participate in the management of the listed company is prohibited from acquiring additional Equity Securities of the listed company and exercising voting rights during the period commencing from the date on which the event triggering the reporting requirements occurs to the fifth day from the date on which the report is made.

In addition to the reporting requirements described above, any person whose direct or beneficial ownership of our voting stock and/or depository receipts for our voting stock accounts for 10.0% or more of the total issued and outstanding voting stock, whom we refer to as a major shareholder, must file a report to the Securities and Futures Commission and to the Korea Exchange within five business days after the date on which the person reached such shareholding percentage. In addition, such person must file a report to the Securities and Futures Commission and to the Korea Exchange regarding any subsequent change in his/her shareholding. Such report on subsequent change in shareholding must be filed within five business days of the occurrence of any such change. Violation of these reporting requirements may subject a person to criminal sanctions such as fines and imprisonment.

Restrictions Applicable to ADSs

No governmental approval is necessary for the sale and purchase of ADSs in the secondary market outside Korea or for the withdrawal of shares of our common stock underlying ADSs and the delivery inside Korea of

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the withdrawn shares. However, a foreigner who intends to acquire shares must obtain an Investment Registration Card from the Financial Supervisory Service as described below. The acquisition of shares by a foreigner must be reported by the foreigner or his standing proxy in Korea immediately to the Governor of the Financial Supervisory Service.

Special Reporting Requirement for Companies Whose Securities Are Listed on Foreign Exchanges

Under the regulations of the Financial Services Commission and the Korea Exchange, (i) if a company listed on the Korea Exchange has submitted a public disclosure of material matters to a foreign financial investment supervisory authority pursuant to the laws of the foreign jurisdiction, then it must submit a copy of the public disclosure and a Korean translation thereof to the Financial Services Commission of Korea and the Korea Exchange, and (ii) if a company listed on the Korea Exchange is approved for listing on a foreign stock market or determined to be

de-listed

from the foreign stock market or actually listed on, or

de-listed

from, a foreign stock market, then it must submit a copy of any document, which it submitted to or received from the relevant foreign government, foreign financial investment supervisory authority or the foreign stock market, and a Korean translation thereof to the Financial Services Commission of Korea and the Korea Exchange.

Persons who have acquired shares of our common stock as a result of the withdrawal of shares of common stock underlying ADSs may exercise their preemptive rights for new shares, participate in free distributions and receive dividends on shares of our common stock without any further governmental approval.

Restrictions Applicable to Common Stock

Under the Foreign Exchange Transaction Laws and the Regulations on Financial Investment Business (together, the “Investment Rules”), foreigners are permitted to invest, subject to certain exceptions and procedural requirements, in all shares of Korean companies unless prohibited by specific laws. Foreign investors may trade shares listed on the Korea Exchange only through the Korea Exchange except for certain limited circumstances. These circumstances include, among others,

(1) odd-lot

trading of shares, (2) acquisition of shares by a foreign company as a result of a merger, (3) acquisition or disposal of shares in connection with a tender offer, (4) acquisition of shares by exercise of warrant, conversion right under convertible bonds, exchange right under exchangeable bonds or withdrawal right under depositary receipts issued outside of Korea by a Korean company, such shares being “Converted Shares,” (5) acquisition of shares through exercise of rights under securities issued outside of Korea, (6) acquisition of shares as a result of inheritance, donation, bequest or exercise of shareholders’ rights (including preemptive rights or rights to participate in free distributions and receive dividends), (7)

over-the-counter

transactions between foreigners of a class of shares for which a ceiling on aggregate acquisition by foreigners (as explained below) exists and has been reached or exceeded, (8) acquisition of shares by direct investment under the Foreign Investment Promotion Law, (9) acquisition and disposal of shares on an overseas stock exchange market, if such shares are simultaneously listed on the KRX KOSPI Market or the KRX KOSDAQ Market of the Korea Exchange and such overseas stock exchange, and (10) arm’s length transactions between foreigners in the event all such foreigners belong to an investment group managed by the same person. For

over-the-counter

transactions of shares listed on the Korea Exchange outside the Korea Exchange between foreigners of a class of shares for which a ceiling on aggregate acquisition by foreigners exists and has been reached or exceeded, a financial investment company with a brokerage license in Korea must act as an intermediary.

Odd-lot

trading of shares listed on the Korea Exchange outside the Korea Exchange must involve a financial investment company with a dealing license in Korea as the other party. Foreign investors are prohibited from engaging in margin transactions with respect to shares subject to a ceiling on acquisition by foreigners.

The Investment Rules require a foreign investor who wishes to invest in or dispose of shares on the Korea Exchange (including Converted Shares) to register his/her identity with the Financial Supervisory Service prior to making any such investment or disposal unless he/she had previously registered. However, such registration requirement does not apply to foreign investors who acquire Converted Shares with the intention of selling them

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within three months from the date they were acquired. Upon registration, the Financial Supervisory Service will issue to the foreign investor an Investment Registration Card which must be presented each time the foreign investor opens a brokerage account with a financial investment company or financial institution in Korea. Foreigners eligible to obtain an Investment Registration Card include any foreign nationals who are individuals (with residence abroad for six months or more), foreign governments, foreign municipal authorities, foreign public institutions, international financial institutions or similar international organizations, corporations incorporated under foreign laws and any person in any additional category designated by the Decree of the Financial Services and Capital Markets Act. All Korean branches of a foreign corporation as a group are treated as a separate foreigner from the head office of the foreign corporation. However, a foreign branch of a Korean securities company, a foreign corporation or a depositary issuing depositary receipts may obtain one or more Investment Registration Cards in its name in certain circumstances as described in the relevant regulations.

Upon a foreign investor’s purchase of shares through the Korea Exchange, no separate report by the investor is required because the Investment Registration Card system is designed to control and oversee foreign investment through a computer system. However, a foreign investor’s acquisition or sale of shares outside the Korea Exchange (as discussed above) must be reported by the foreign investor or his standing proxy to the Governor of the Financial Supervisory Service at the time of each acquisition or sale. However, a foreign investor must ensure that any acquisition or sale by it of shares outside the Korea Exchange in the case of trades in connection with a tender offer,

odd-lot

trading of shares or trades of a class of shares for which the aggregate foreign ownership limit has been reached or exceeded, is reported to the Governor of the Financial Supervisory Service by the Korea Securities Depository, financial investment companies with a dealing or brokerage license or securities finance companies engaged to facilitate such transactions. In the event a foreign investor desires to acquire or sell shares outside the Korea Exchange and the circumstances in connection with such sale or acquisition do not fall within the exceptions made for certain limited circumstances described above, then the foreign investor must obtain the prior approval of the Governor. In addition, in the event a foreign investor acquires or sells shares outside the Korea Exchange, a prior report to the Governor of the Financial Supervisory Service may also be required in certain circumstances. A foreign investor may appoint one or more standing proxies from among the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies (including domestic branches of foreign financial investment companies) with a dealing, brokerage or collective investment license and certain eligible foreign custodians which will exercise shareholders’ rights or perform any matters related to the foregoing activities if the foreign investor does not perform these activities himself. Generally, a foreign investor may not permit any person, other than his/her standing proxy, to exercise rights relating to his shares or perform any tasks related thereto on his behalf. However, a foreign investor may be exempted from complying with these standing proxy rules with the approval of the Governor of the Financial Supervisory Service in cases deemed inevitable by reason of conflict between the laws of Korea and those of the home country of the foreign investor.

The shares of a listed Korean company owned by a foreign investor must be electronically registered in accordance with the Electronic Registration Act through an eligible custodian in Korea. Only the Korea Securities Depository, foreign exchange banks (including domestic branches of foreign banks), financial investment companies (including domestic branches of foreign financial investment companies) with a dealing, brokerage or collective investment license and certain eligible foreign custodians are eligible to be a custodian of shares for a foreign investor; provided, however, that a foreign investor is exempted from the above requirement if it (i) acquires shares publicly offered or sold outside Korea for the purpose of listing on an overseas stock exchange or (ii) acquires or disposes of shares through an overseas stock exchange if such shares are simultaneously listed on the Korea Exchange and such overseas stock exchange.

Under the Investment Rules, with certain exceptions, a foreign investor may acquire shares of a Korean company without being subject to any single or aggregate foreign investment ceiling. However, certain designated public corporations are subject to a 40.0% ceiling on acquisitions of shares by foreigners in the aggregate and a ceiling on acquisitions of shares by a single foreign investor provided in the Articles of Incorporation of such corporations. Of the Korean companies listed on the Korea Exchange, we are so

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designated. The Financial Services Commission may impose other restrictions as it deems necessary for the protection of investors and the stabilization of the Korean securities and derivatives market. Generally, the ownership of Converted Shares constitutes foreign ownership for purposes of such aggregate foreign ownership limit. However, the acquisition of Converted Shares is one of the exceptions under which foreign investors may acquire shares of designated corporations in excess of the 40.0% ceiling.

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

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

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

• Converted Shares;

• shares from the exercise of shareholders’ rights; or

• shares by gift, inheritance or bequest.

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

Under the Foreign Exchange Transaction Laws, a foreign investor who intends to acquire shares must designate a foreign exchange bank at which he must open a foreign currency account and a Won account exclusively for stock investments. No approval is required for remittance into Korea and deposit of foreign currency funds in the foreign currency account. Foreign currency funds may be transferred from the foreign currency account at the time required to place a deposit for, or settle the purchase price of, a stock purchase transaction to a Won account opened at a securities company. Funds in the foreign currency account may be remitted abroad without any governmental approval.

Dividends on shares of our common stock are paid in Won. No governmental approval is required for foreign investors to receive dividends on, or the Won proceeds of the sale of, any shares to be paid, received and retained in Korea. Dividends paid on, and the Won proceeds of the sale of, any shares held by a

non-resident

of Korea must be deposited either in a Won account with the investor’s securities company or the investor’s Won account. Funds in the investor’s Won account may be transferred to his foreign currency account or withdrawn for local living expenses, provided that any withdrawal of local living expenses in excess of a certain amount should be reported to the Governor of the Financial Supervisory Service. Funds in the investor’s Won account may also be used for future investment in shares or for payment of the subscription price of new shares obtained through the exercise of preemptive rights.

Financial investment companies with a securities dealing, brokerage or collective investment license are allowed to open foreign currency accounts with foreign exchange banks exclusively for accommodating foreign investors’ stock investments in Korea. Through these accounts, these securities companies and asset management companies may enter into foreign exchange transactions on a limited basis, such as conversion of foreign currency funds and Won funds, either as a counterparty to or on behalf of foreign investors without the foreign investors having to open their own accounts with foreign exchange banks.

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Item 10.E. Taxation

Korean Taxes

The following summary describes the material Korean tax consequences of ownership of the Registered Debt Securities and ADSs. Persons considering the purchase of the Registered Debt Securities or ADSs should consult their own tax advisors with regard to the application of the Korean income tax laws to their particular situations as well as any tax consequences arising under the laws of any other taxing jurisdiction. Reference is also made to a tax treaty between the Republic and the United States entitled “Convention Between the United States of America and the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Encouragement of International Trade and Investment,” signed on June 4, 1976 and entered into force on October 20, 1979.

The following summary of Korean tax considerations applies to you so long as you are not:

• a resident of Korea;

• a corporation having its head office, principal place of business or place of effective management in Korea; or

• engaged in a trade or business in Korea through a permanent establishment or a fixed base to which the relevant income is attributable or with which the relevant income is effectively connected.

Registered Debt Securities

Taxation of Interest

Pursuant to the Special Tax Treatment Control Law (“STTCL”), when we make payments of interest to you on the Registered Debt Securities, no amount will be withheld from such payments for, or on account of, any income taxes of any kind imposed, levied, withheld or assessed by Korea or any political subdivision or taxing authority thereof or therein, provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL.

If the tax exemption under the STTCL referred to above were to cease to be in effect, the rate of income tax or corporation tax applicable to the interest on the Registered Debt Securities would be 14% of income for a

non-resident

without a permanent establishment in Korea. In addition, local income tax would be imposed at the rate of 10.0% of the income tax or corporation tax (which would increase the total tax rate to 15.4%), unless reduction is available under an applicable income tax treaty. If you are a qualified resident in a country that has entered into a tax treaty with Korea, you may qualify for an exemption or a reduced rate of Korean withholding tax. See the discussion under “—Shares or ADSs—Tax Treaties” below for an additional explanation on treaty benefits.

In order to obtain the benefits of an exemption or a reduced withholding tax rate under a tax treaty, you must submit to us, prior to the interest payment date, such evidence of tax residence as may be required by the Korean tax authorities in order to establish your entitlement to the benefits of the applicable tax treaty.

Furthermore, Korean tax laws require the beneficial owner to submit an application for entitlement to a reduced tax rate together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available reduced tax rate pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, an overseas investment vehicle (which is defined as an organization established in a foreign jurisdiction that manages funds collected through investment solicitation by acquiring, disposing or otherwise investing in proprietary targets and then distributes the proceeds thereof to investors) (the “Overseas Investment Vehicle”) must obtain an application for entitlement to a reduced tax rate from the beneficial owner and submit to the withholding obligor an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

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Due to recent amendment to the Korean tax laws, which applies for fiscal years beginning on or after January 1, 2020, Overseas Investment Vehicles may be regarded as beneficial owners of Korean sourced income in certain situations. Pursuant to such amendment, Overseas Investment Vehicles may be treated as beneficial owners of Korean source income if one of the following conditions are met: (i) the Overseas Investment Vehicle is subject to taxation in the jurisdiction in which it resides and there is no intentional tax avoidance purpose to establishing the Overseas Investment Vehicle in the jurisdiction; (ii) the Overseas Investment Vehicle is deemed as the beneficial owner under a tax treaty; or (iii) the Overseas Investment Vehicle is unable to confirm its list of beneficial owners investing in the Overseas Investment Vehicle (if only a portion of the beneficial owners are confirmed, applies with respect to the remaining unconfirmed list of beneficial owners). Overseas Investment Vehicles that are not regarded as foreign “corporations” for purposes of the Korean tax law may be recognized as beneficial owners if one of the above conditions (ii) or (iii) are met. Starting from January 1, 2022, the above conditions (i) and (ii) are changed as follows: (i) under the applicable tax treaty, the Overseas Investment Vehicle bears tax liabilities in the country in which it is established and the Korean source income is eligible for the treaty benefits under the tax treaty; and (ii) where the Overseas Investment Vehicle does not meet the above condition (i), the Overseas Investment Vehicle is deemed to be the beneficial owner of the Korean source income under the applicable tax treaty and the Korean source income is eligible for the treaty benefits under the tax treaty. Further, Overseas Investment Vehicles that meet condition (iii) would be subject to the default statutory withholding tax rate under the Korean tax laws and the treaty withholding rates under relevant tax treaties would not apply even though the Overseas Investment Vehicles are deemed to be beneficial owners of Korean source income.

Taxation of Capital Gains

Korean tax laws currently exclude from Korean taxation gains made by a

non-resident

without a permanent establishment in Korea from the sale of a Registered Debt Security to another

non-resident

(except where a

non-resident

sells Registered Debt Securities to another

non-resident’s

permanent establishment in Korea, if any). In addition, capital gains realized from the transfer of Registered Debt Securities outside Korea by

non-residents

with or without permanent establishments in Korea are currently exempt from taxation by virtue of the STTCL, provided that the issuance of such Registered Debt Securities is deemed to be an overseas issuance of foreign currency-denominated bonds under the STTCL. If you sell or otherwise dispose of a Registered Debt Security through other ways than those mentioned above, any gain realized on the transaction will be taxable at ordinary Korean withholding tax rates (which is the lesser of 22.0% (including local income tax) of the net gain or 11.0% (including local income tax) of the gross sale proceeds, subject to the production of satisfactory evidence of the acquisition cost of such Registered Debt Securities and certain direct transaction costs attributable to the disposal of such Registered Debt Securities), unless an exemption is available under an applicable income tax treaty. See the discussion under “—Shares or ADSs—Tax Treaties” below for an additional explanation on treaty benefits.

Inheritance Tax and Gift Tax

If you die while you are the holder of Registered Debt Securities, the subsequent transfer of the Registered Debt Securities by way of succession will be subject to Korean inheritance tax. Similarly, if you transfer Registered Debt Securities as a gift, the donee will be subject to Korean gift tax and you may be required to pay the gift tax if the donee fails to do so.

At present, Korea has not entered into any tax treaty relating to inheritance or gift taxes.

Shares or ADSs

Dividends on the Shares of Common Stock or ADSs

We will deduct Korean withholding tax from dividends (whether in cash or in shares) paid to you at a rate of 22% (inclusive of local income tax). If you are a qualified resident in a country that has entered into a tax treaty with Korea, you may qualify for a reduced rate of Korean withholding tax. See the discussion under “—Tax Treaties” below for an additional explanation on treaty benefits.

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In order to obtain the benefits of a reduced withholding tax rate under a tax treaty, you must submit to the Korea Securities Depository, prior to the dividend payment date, such evidence of tax residence as may be required by the Korean tax authorities in order to establish your entitlement to the benefits of the applicable tax treaty. Evidence of tax residence may be submitted to the Korea Securities Depository through the withholding tax agent. If we distribute to you free shares representing a transfer of certain capital reserves or asset revaluation reserves into

paid-in

capital, such distribution may be subject to Korean withholding tax.

Furthermore, Korean tax laws require the beneficial owner to submit an application for entitlement to a reduced tax rate together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available reduced tax rate pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for entitlement to a reduced tax rate from the beneficial owner and submit to the withholding obligor an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

If you hold common shares or ADSs and receive the dividend through an account at the Korea Securities Depository held by a foreign depositary settlement institute, you are not required to submit the application for entitlement to a reduced tax rate. However, evidence of tax residence may need to be submitted to us through such foreign depositary settlement institute.

Taxation of Capital Gains

As a general rule, capital gains earned by

non-residents

upon the transfer of the common shares or ADSs would be subject to Korean income tax at a rate equal to the lesser of (i) 11.0% (including local income tax) of the gross proceeds realized or (ii) 22.0% (including local income tax) of the net realized gain (subject to the production of satisfactory evidence of the acquisition costs and certain direct transaction costs arising out of the transfer of such common shares or ADSs), unless such

non-resident

is exempt from Korean income taxation under an applicable Korean tax treaty into which Korea has entered with the

non-resident’s

country of tax residence. Please see the discussion under “—Tax Treaties” below for an additional explanation on treaty benefits. Even if you do not qualify for any exemption under a tax treaty, you will not be subject to the foregoing income tax on capital gains if you qualify for the relevant Korean domestic tax law exemptions discussed in the following paragraphs.

You will not be subject to Korean income taxation on capital gains realized upon the transfer of our common stocks or ADSs through the Korea Exchange if you (i) have no permanent establishment in Korea and (ii) did not own or have not owned (together with any shares owned by any entity which you have a certain special relationship with and possibly including the shares represented by the ADSs) 25.0% or more of our total issued and outstanding shares at any time during the calendar year in which the sale occurs and during the five calendar years prior to the calendar year in which the sale occurs.

It should be noted that (i) capital gains earned by you (regardless of whether you have a permanent establishment in Korea) from the transfer of ADSs outside Korea will be exempted from Korean income taxation provided that ADSs are deemed to have been issued overseas under the STTCL, but (ii) if and when an owner of the underlying shares of stock transfers ADSs after conversion of the underlying shares into ADSs, the exemption described in (i) is not applicable.

If you are subject to tax on capital gains with respect to the sale of ADSs, or of shares of common stock which you acquired as a result of a withdrawal, the purchaser or, in the case of the sale of shares of common stock on the Korea Exchange or through an investment dealer or investment broker under the Financial Investment Services and Capital Markets Act, an investment dealer or investment broker is required to withhold Korean tax from the sales price in an amount equal to 11.0% (including local income tax) of the gross realization

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proceeds and to make payment of these amounts to the Korean tax authority, unless you establish your entitlement to an exemption under an applicable tax treaty or domestic tax law or produce satisfactory evidence of your acquisition cost and transaction costs for the shares of common stock or the ADSs.

However, if you transfer the ADSs following an exchange of the underlying shares of stock owned by you for ADSs to a purchaser who is a

non-resident

or a foreign company without a permanent establishment in Korea, you are obligated to file an income tax return and pay tax on gain realized from such transfer unless exempt under an applicable tax treaty or domestic law. Further, if you transfer the shares of common stock outside of Korea (excluding a transfer on a foreign exchange) to

non-residents

or foreign companies without permanent establishments in Korea, you are obligated to file an income tax return and pay income tax on capital gain realized from such transfer unless exempt under an applicable tax treaty or domestic law. If a purchaser or an investment dealer or investment broker, as the case may be, withholds and remits the tax on capital gains derived from transfer of shares of common stock or ADSs, your obligation to file an income tax return and pay income tax will not apply.

In order to obtain the benefit of an exemption from tax pursuant to a tax treaty, you must submit to the purchaser or the investment dealer or the investment broker, or through the ADS depositary, as the case may be, prior to or at the time of payment, such evidence of your tax residence as the Korean tax authorities may require in support of your claim for treaty benefits. Please see the discussion under “—Tax Treaties” below for an additional explanation on claiming treaty benefits. Furthermore, Korean tax laws require the beneficial owner to submit an application for tax exemption together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available exemption pursuant to the relevant tax treaty. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for tax exemption from the beneficial owner and forward it to the withholding obligor along with an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

Tax Treaties

Korea has entered into a number of income tax treaties with other countries (including the United States), which would reduce or exempt Korean withholding tax on dividends on, and capital gains on transfer of, shares of our common stock or ADSs. For example, under the Korea-United States income tax treaty, reduced rates of Korean withholding tax of 16.5% or 11.0% (respectively, including local income tax, depending on your status and shareholding ratio) on dividends and an exemption from Korean withholding tax on capital gains are available to residents of the United States that are beneficial owners of the relevant dividend income or capital gains. However, under Article 17 (Investment of Holding Companies) of the Korea-United States income tax treaty, such reduced rates and exemption do not apply if (i) you are a United States corporation, (ii) by reason of any special measures, the tax imposed on you by the United States with respect to such dividends or capital gains is substantially less than the tax generally imposed by the United States on corporate profits, and (iii) 25.0% or more of your capital is held of record or is otherwise determined, after consultation between competent authorities of the United States and Korea, to be owned directly or indirectly by one or more persons who are not individual residents of the United States. Also, under Article 16 (Capital Gains) of the Korea-United States income tax treaty, the exemption on capital gains does not apply if you are an individual, and (a) you maintain a fixed base in Korea for a period or periods aggregating 183 days or more during the taxable year and your ADSs or shares of common stock giving rise to capital gains are effectively connected with such fixed base or (b) you are present in Korea for a period or periods of 183 days or more during the taxable year.

You should inquire for yourself whether you are entitled to the benefit of an income tax treaty with Korea. It is the responsibility of the party claiming the benefits of an income tax treaty in respect of dividend payments or capital gains to submit to us, the purchaser or the investment dealer or the investment broker, as applicable, a certificate as to his tax residence. In the absence of sufficient proof, we, the purchaser or the investment dealer or

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the investment broker, as applicable, must withhold tax at the normal rates. Further, in order for you to obtain the benefit of a tax exemption on certain Korean source income (e.g., interest, dividends and capital gains) under an applicable tax treaty, Korean tax laws require you (or your agent) to submit an application for tax exemption (if there is no change in the content of such application, it is not required to submit such application again within a period of three years thereafter) along with a certificate of your tax residence issued by a competent authority of your country of tax residence. Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for tax exemption from the beneficial owner and forward it to the withholding obligor along with an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner. The withholding obligor must submit the application and the report to the relevant tax office by the ninth day of the month following the date of the first payment of such income.

Furthermore, the Korean tax laws require the beneficial owner to submit an application for entitlement to a reduced tax rate (if there is no change in the content of such application, it is not required to submit such application again within a period of three years thereafter) together with evidence of tax residence (including a certificate of tax residence of the beneficial owner issued by a competent authority of the country of tax residence of the beneficial owner) to a withholding obligor paying Korean source income in order to benefit from the available reduced tax rate pursuant to the relevant tax treaty. If you hold the shares of common stock or ADSs and receive the dividend through an account at the Korea Securities Depository held by a foreign depositary settlement institute, you are not required to submit the application for entitlement to a reduced tax rate. However, evidence of tax residence may need to be submitted to us through such foreign depositary settlement institute.

Under Korean tax laws and subject to certain exceptions, the Overseas Investment Vehicle must obtain an application for a reduced tax rate from the beneficial owner and submit to the withholding obligor an overseas investment vehicle report (prepared by the Overseas Investment Vehicle) which includes a detailed statement on the beneficial owner.

Inheritance Tax and Gift Tax

If you die while holding an ADS or donate an ADS, it is unclear whether, for Korean inheritance and gift tax purposes, you will be treated as the owner of the shares of common stock underlying the ADSs. If the tax authority interprets depositary receipts as the underlying share certificates, you may be treated as the owner of the shares of common stock and your heir or the donee (or in certain circumstances, you as the donor) will be subject to Korean inheritance or gift tax presently at the rate of 10.0% to 50.0%, depending on the value of the ADSs or shares of common stock.

If you die while holding a share of common stock or donate a share of common stock, your heir or donee (or in certain circumstances, you as the donor) will be subject to Korean inheritance or gift tax at the same rate as indicated above.

At present, Korea has not entered into any tax treaty relating to inheritance or gift taxes.

Securities Transaction Tax

If you transfer shares of common stock on the Stock Market of the Korea Exchange, you will be subject to securities transaction tax at the rate of 0.08% (which will be reduced to 0% for transfers on or after January 1, 2023) and an agriculture and fishery special surtax at the rate of 0.15% of the sale price of the shares of common stock. If your transfer of the shares of common stock is not made on the Stock Market of the Korea Exchange, subject to certain exceptions you will be subject to securities transaction tax at the rate of 0.43% for transfers prior to January 1, 2023 and 0.35% for transfers on or after January 1, 2023 and will not be subject to an agriculture and fishery special surtax.

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Under the Securities Transaction Tax Law, depositary receipts (such as ADSs) constitute share certificates subject to the securities transaction tax. However, a transfer of depositary receipts listed on the New York Stock Exchange, NASDAQ National Market or other qualified foreign exchanges will be exempt from the securities transaction tax although depositary receipts, including ADSs, constitute share certificates subject to the securities transaction tax.

In principle, the securities transaction tax, if applicable, must be paid by the transferor of the shares or rights. When the transfer is effected through the Korea Securities Depository, the Korea Securities Depository is generally required to withhold and pay the tax to the tax authorities. When such transfer is made through an investment dealer or investment broker under the Financial Investment Services and Capital Markets Act only, such investment dealer or investment broker is required to withhold and pay the tax. Where the transfer is effected by a

non-resident

without a permanent establishment in Korea, other than through the Korea Securities Depository or an investment dealer or investment broker, the transferee is required to withhold the securities transaction tax for payment to the Korean tax authority.

U.S. Federal Income Tax Considerations for U.S. Persons

The following is a summary of certain U.S. federal income tax consequences for beneficial owners of the Registered Debt Securities, common stock and ADSs that are “U.S. Persons” (as defined below). For purposes of this summary, you are a “U.S. Person” if you are any of the following for U.S. federal income tax purposes:

• an individual citizen or resident of the United States;

• a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

• an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

• a trust if (1) it is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person.

This summary is based on current law, which is subject to change (perhaps retroactively), is for general purposes only and should not be considered tax advice. This summary does not represent a detailed description of the U.S. federal income tax consequences and does not address the effects of the Medicare contribution tax on net investment income, U.S. federal estate and gift taxes or foreign, state, local or other tax considerations that may be relevant to you in light of your particular circumstances. The discussion set forth below is applicable to you if (i) you are a resident of the United States for purposes of the current income tax treaty between the United States and Korea (the “Treaty”), (ii) your Registered Debt Securities, common stock or ADSs are not, for purposes of the Treaty, effectively connected with a permanent establishment in Korea and (iii) you otherwise qualify for the full benefits of the Treaty. This summary deals only with Registered Debt Securities, common stock or ADSs held as capital assets, and it does not represent a detailed description of the U.S. federal income tax consequences applicable to you if you are subject to special treatment under the U.S. federal income tax laws (including if you are a dealer in securities or currencies, a financial institution, a regulated investment company, a real estate investment trust, an insurance company, a tax-exempt organization, a person holding the Registered Debt Securities, common stock or ADSs as part of a hedging, integrated or conversion transaction, constructive sale or straddle, a person owning 10.0% or more of our stock (by vote or value), a trader in securities that elects to use a

mark-to-market

method of accounting for your securities holdings, a person liable for the alternative minimum tax, a person required to accelerate the recognition of any item of gross income with respect to the Registered Debt Securities, common stock or ADSs as a result of such income being recognized on an applicable financial statement, a partnership or other pass-through entity (or an investor therein), or a U.S. Person whose “functional currency” is not the U.S. dollar). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe in this summary.

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If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) holds the Registered Debt Securities, common stock or ADSs, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. If you are a partner of a partnership holding our Registered Debt Securities, common stock or ADSs, you should consult your tax advisor.

Because of the

100-year

maturity of the One Hundred Year 7.95%

Zero-to-Full

Debentures, due April 1, 2096 (the “ZTF Debentures”), it is not certain whether the ZTF Debentures will be treated as debt for U.S. federal income tax purposes. The discussion below assumes that the ZTF Debentures (as well as the other Registered Debt Securities) will be treated as debt, except that a summary of the consequences to you if the ZTF Debentures were not treated as debt is provided under “Tax Consequences with Respect to Registered Debt Securities Generally—ZTF Debentures Treated as Equity” below.

The discussion below of the tax consequences of the ownership of common stock and ADSs is based, in part, upon representations made by the depositary to us and assumes that the deposit agreement, and all other related agreements, will be performed in accordance with their terms.

You should consult your own tax advisor concerning the particular U.S. federal income tax consequences to you of the ownership of the Registered Debt Securities, common stock and ADSs, as well as the consequences to you arising under the laws of any other taxing jurisdiction.

Tax Consequences with Respect to Registered Debt Securities Generally

Payments

Except as provided below with regard to original issue discount (as defined below) on the ZTF Debentures, interest on a Registered Debt Security will generally be taxable to you as ordinary income at the time it is paid or accrued in accordance with your method of accounting for tax purposes. Principal payments on an amortizing Registered Debt Security generally will constitute a

tax-free

return of capital to you.

Although interest payments to you are currently exempt from Korean taxation provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL (see—“Korean Taxes—Registered Debt Securities—Taxation of Interest,” above), if the Korean law providing for the exemption is repealed, then, in addition to interest payments on the Registered Debt Securities and original issue discount on the ZTF Debentures, you will be required to include in income any additional amounts paid and any Korean tax withheld from interest payments notwithstanding that you in fact did not receive such withheld tax. You may be entitled to deduct or credit such Korean tax (up to the Treaty rate), subject to applicable limitations in the Internal Revenue Code of 1986, as amended (the “Code”). Your election to deduct or credit foreign taxes will apply to all of your foreign taxes for a particular taxable year. Interest income on a Registered Debt Security (including additional amounts and any Korean taxes withheld in respect thereof) and original issue discount on a ZTF Debenture generally will constitute foreign source income and generally will be considered passive category income for purposes of computing the foreign tax credit. You will generally be denied a foreign tax credit for Korean taxes imposed with respect to the Registered Debt Securities where you do not meet a minimum holding period requirement during which you are not protected from risk of loss. The rules governing the foreign tax credit are complex. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

Original Issue Discount

The ZTF Debentures were issued with original issue discount (“OID”) for U.S. federal income tax purposes equal to the difference between (i) the sum of all scheduled amounts payable on the ZTF Debentures (including the interest payable on such ZTF Debentures) and (ii) the “issue price” of the ZTF Debentures. The “issue price” of each ZTF Debenture is the first price at which a substantial amount of the ZTF Debentures was sold to the

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public (other than to an underwriter, broker, placement agent or wholesaler). If you hold ZTF Debentures, then (subject to the discussion in “—Acquisition Premium; Bond Premium” below) you generally must include OID in gross income (as ordinary income) in advance of the receipt of cash attributable to that income, regardless of your method of accounting. However, you generally will not be required to include separately in income cash payments received on the ZTF Debentures, even if denominated as interest.

The amount of OID includible in income by the holder of a ZTF Debenture is the sum of the “daily portions” of OID with respect to the ZTF Debenture for each day during the taxable year or portion of the taxable year in which such holder held such ZTF Debenture, or “accrued OID” (for a discussion relevant to subsequent purchasers, see “—Market Discount” and “—Acquisition Premium; Bond Premium,” below). The daily portion is determined by allocating to each day in any “accrual period” a pro rata portion of the OID allocable to that accrual period. The “accrual period” for a ZTF Debenture may be of any length and may vary in length over the term of the ZTF Debenture, provided that each accrual period is no longer than one year and each scheduled payment of principal or interest occurs on the first day or the final day of an accrual period. The amount of OID allocable to any accrual period other than the final accrual period is an amount equal to the product of the ZTF Debenture’s adjusted issue price at the beginning of such accrual period and its yield to maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period). OID allocable to a final accrual period is the difference between the amount payable at maturity and the adjusted issue price at the beginning of the final accrual period. The “adjusted issue price” of a ZTF Debenture at the beginning of any accrual period is equal to its issue price increased by the accrued OID for each prior accrual period (for subsequent purchasers, determined without regard to the amortization of any acquisition or bond premium, as described below) and reduced by any payments previously made on such ZTF Debenture. Under these rules, you will have to include in income increasingly greater amounts of OID in successive accrual periods. We are required to provide information returns stating the amount of OID accrued on ZTF Debentures held of record by persons other than corporations and other exempt holders.

As discussed above, although interest payments to you are currently exempt from Korean taxation provided that Registered Debt Securities are deemed to be foreign currency-denominated bonds issued outside of Korea for the purpose of the STTCL (see—“Korean Taxes—Registered Debt Securities—Taxation of Interest,” above), if the Korean law providing for the exemption is repealed, then Korean withholding tax may be imposed at times that differ from the times at which you are required to include interest or OID in income for U.S. federal income tax purposes and this disparity may limit the amount of foreign tax credit available.

Market Discount

If you purchased a Registered Debt Security other than a ZTF Debenture for an amount that is less than its stated redemption price at maturity, or, in the case of a ZTF Debenture, its adjusted issue price, the amount of the difference will be treated as “market discount” for U.S. federal income tax purposes, unless that difference is less than a specified de minimis amount. Under the market discount rules, you will be required to treat any principal payment on, or any gain on the sale, exchange, retirement or other disposition of, a Registered Debt Security as ordinary income to the extent of the market discount that you have not previously included in income and are treated as having accrued on the Registered Debt Security at the time of the payment or disposition. In addition, you may be required to defer, until the maturity of the Registered Debt Security or its earlier disposition in a taxable transaction, the deduction of all or a portion of the interest expense on any indebtedness attributable to the Registered Debt Security. Any amount treated as ordinary income pursuant to the market discount rules generally should be treated as foreign source income (although the matter is not free from doubt).

Any market discount will be considered to accrue ratably during the period from the date of acquisition to the maturity date of the Registered Debt Security, unless you elect to accrue on a constant interest method. Your election to accrue market discount on a constant interest method is to be made for the taxable year in which you acquired the Registered Debt Security, applies only to that Registered Debt Security and cannot be revoked. You may elect to include market discount in income currently as it accrues, on either a ratable or constant interest

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method, in which case the rule described above regarding deferral of interest deductions will not apply. Your election to include market discount in income currently, once made, applies to all market discount obligations acquired by you on or after the first day of the first taxable year to which your election applies and may not be revoked without the consent of the Internal Revenue Service (the “IRS”). You should consult your own tax advisor before making this election.

Acquisition Premium; Bond Premium

If you purchased a ZTF Debenture for an amount that is greater than its adjusted issue price but equal to or less than the sum of all amounts payable on the ZTF Debenture after the purchase date, you will be considered to have purchased that ZTF Debenture at an “acquisition premium.” Under the acquisition premium rules, the amount of OID that you must include in gross income with respect to a ZTF Debenture for any taxable year will be reduced by the portion of the acquisition premium properly allocable to that year.

If you purchased a Registered Debt Security for an amount in excess of the sum of all amounts payable on the Registered Debt Security after the purchase date other than qualified stated interest (as defined in the Code), you will be considered to have purchased the Registered Debt Security at a “premium” and, if such Registered Debt Security is a ZTF Debenture, you will not be required to include any OID in income. You generally may elect to amortize the premium over the remaining term of the Registered Debt Security on a constant yield method as an offset to interest when includible in income under your regular accounting method. In the case of instruments that provide for alternative payment schedules, bond premium is calculated by assuming that (a) you will exercise or not exercise options in a manner that maximizes your yield, and (b) we will exercise or not exercise options in a manner that minimizes your yield (except that we will be assumed to exercise call options in a manner that maximizes your yield). If you do not elect to amortize bond premium, that premium will decrease the gain or increase the loss you would otherwise recognize on disposition of a Registered Debt Security. Your election to amortize premium on a constant yield method will also apply to all taxable debt obligations held or subsequently acquired by you on or after the first day of the first taxable year to which the election applies. You may not revoke the election without the consent of the IRS. You should consult your own tax advisor before making this election.

Sale, Exchange and Retirement of Registered Debt Securities

Upon the sale, exchange, retirement or other disposition of a Registered Debt Security, you generally will recognize gain or loss equal to the difference between the amount you receive (not including an amount equal to any accrued qualified stated interest, which will be taxable as ordinary income to the extent not previously included in income) and your adjusted tax basis in the Registered Debt Security. Your adjusted tax basis in a Registered Debt Security other than a ZTF Debenture will generally be your cost of obtaining the Registered Debt Security, increased by any market discount included in income and reduced by payments of principal you receive and any bond premium that you have previously amortized. Your adjusted tax basis in a ZTF Debenture will, in general, be your cost therefor, increased by any market discount and OID previously included in income and reduced by any cash payments on the ZTF Debenture and any bond premium that you have previously amortized. Except as described above with respect to market discount, your gain or loss realized upon the sale, exchange, retirement or other disposition of a Registered Debt Security will be capital gain or loss and will generally be long-term capital gain or loss if, at the time of the sale, exchange, retirement or other disposition, you have held the Registered Debt Security for more than one year. Long-term capital gains of

non-corporate

U.S. Persons (including individuals) are eligible for reduced rates of taxation. Your ability to deduct capital losses is subject to limitations.

Except as described above with respect to market discount, your gain or loss realized upon the sale, exchange, retirement or other disposition of a Registered Debt Security will generally be treated as U.S. source gain or loss. Consequently, you may not be able to use a foreign tax credit for any Korean tax imposed on the disposition of Registered Debt Securities unless such credit can be applied (subject to applicable limitations)

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against tax due on other income treated as derived from foreign sources. However, pursuant to recently issued U.S. Treasury regulations that apply to taxes paid or accrued in taxable years beginning on or after December 28, 2021, any such Korean tax would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is derived from foreign sources). Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

ZTF Debentures Treated as Equity

If the ZTF Debentures were treated as equity for U.S. federal income tax purposes, amounts actually or deemed paid with respect to the ZTF Debentures would be deemed dividends for U.S. federal income tax purposes to the extent paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes).

You would include the amounts actually or deemed paid by us on the ZTF Debentures (before reduction for Korean withholding tax, if any) as dividend income when actually or constructively paid by us. Section 305 of the Code, which would apply to the ZTF Debentures if they were treated as equity for U.S. federal income tax purposes, requires current accrual of dividends under principles similar to the accrual of OID. Amounts treated as dividends will not be eligible for the dividends received deduction generally allowed to U.S. corporations.

Tax Consequences with Respect to Common Stock and ADSs

In general, for U.S. federal income tax purposes, holders of ADSs will be treated as the owners of the underlying common stock that is represented by such ADSs. Accordingly, deposits or withdrawals of common stock for ADSs will not be subject to U.S. federal income tax.

Distributions on Common Stock or ADSs

The gross amount of distributions (other than certain pro rata distributions of common stock or rights to subscribe for common stock) to holders of common stock or ADSs (including amounts withheld in respect of Korean withholding taxes) will be taxable dividends to such holders, to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Such income (including withheld taxes) will be includable in the gross income of a holder as ordinary income on the day actually or constructively received by the holder, in the case of common stock, or by the depositary, in the case of ADSs. Such dividends will not be eligible for the dividends received deduction allowed to corporations under the Code.

Subject to applicable limitations (including a minimum holding period requirement), certain dividends received by

non-corporate

U.S. Persons from a qualified foreign corporation may be treated as “qualified dividend income” that is subject to reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the benefits of an income tax treaty with the United States, if such treaty contains an exchange of information provision and the U.S. Treasury Department had determined that the treaty is satisfactory for purposes of the legislation. The U.S. Treasury Department has determined that the Treaty, which contains an exchange of information provision, is satisfactory for these purposes. In addition, we believe we are eligible for the benefits of the Treaty. In addition, a foreign corporation is also treated as a qualified foreign corporation with respect to dividends paid by that corporation on shares (or ADSs backed by such shares) that are readily tradable on an established securities market in the United States. Although shares of our common stock will generally not be considered readily tradable for these purposes, U.S. Treasury Department guidance indicates that our ADSs, which are listed on the New York Stock Exchange, are readily tradable on an established securities market in the United States. There can be no assurance that our ADSs will be considered readily tradable on an established securities market in the United States in later years. Holders should consult their own tax advisors regarding the application of the foregoing rules to their particular circumstances.

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The amount of any dividend paid in Won will equal the U.S. dollar value of the Won received calculated by reference to the exchange rate in effect on the date the dividend is received by the holder, in the case of common stock, or by the depositary, in the case of ADSs, regardless of whether the Won are converted into U.S. dollars. If the Won received as a dividend are not converted into U.S. dollars on the date of receipt, a holder will have a basis in the Won equal to their U.S. dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the Won will be treated as U.S. source ordinary income or loss. The amount of any distribution of property other than cash will be the fair market value of such property on the date of distribution.

The maximum rate of withholding tax on dividends paid to you pursuant to the Treaty is 16.5%. You will be required to properly demonstrate your entitlement to the reduced rate of withholding under the Treaty (see “—Korean Taxes—Shares or ADSs—Tax Treaties”). Subject to certain conditions and limitations, Korean withholding taxes (up to the Treaty rate) will be treated as foreign taxes eligible for deduction or credit against your U.S. federal income tax liability. Your election to deduct or credit foreign taxes will apply to all of your foreign taxes for a particular taxable year. For purposes of calculating the foreign tax credit, dividends paid on the common stock or ADSs will be treated as foreign source income and will generally constitute passive category income. Further, in certain circumstances, if you have held common stock or ADSs for less than a specified minimum period during which you are not protected from risk of loss, or are obligated to make payments related to the dividends, you will not be allowed a foreign tax credit for foreign taxes imposed on dividends paid on common stock or ADSs. The rules governing the foreign tax credit are complex. Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances, including the possible adverse impact on creditability to the extent you are entitled to a refund of any Korean tax withheld or a reduced rate of withholding.

To the extent that the amount of any distribution exceeds our current and accumulated earnings and profits for a taxable year, as determined under U.S. federal income tax principles, the distribution will first be treated as a

tax-

free return of capital, causing a reduction in the adjusted basis of the common stock or ADSs (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by the investor on a subsequent disposition of the common stock or ADSs), and the balance in excess of adjusted basis will be taxed as capital gain recognized on a sale or exchange of property. Consequently, such distributions in excess of our current and accumulated earnings and profits would not give rise to foreign source income and you generally would not be able to use a foreign tax credit for any Korean withholding tax imposed on such distributions unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. However, we do not expect to keep earnings and profits in accordance with U.S. federal income tax principles. Therefore, you should expect that a distribution will generally be treated as a dividend (as discussed above).

Distributions of common stock or rights to subscribe for common stock that are received as part of a pro rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax. Consequently, such distributions will not give rise to foreign source income and you generally will not be able to use a foreign tax credit for any Korean withholding tax imposed on such distributions unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources.

Sale, Exchange or Other Disposition of ADSs or Common Stock

Upon the sale, exchange or other disposition of ADSs or common stock, you generally will recognize capital gain or loss equal to the difference between the amount realized upon the sale, exchange or other disposition and your adjusted tax basis in the ADSs or common stock, both as determined in U.S. dollars. The capital gain or loss will be long-term capital gain or loss if, at the time of sale, exchange or other disposition, the ADSs or common stock have been held by you for more than one year. Under current law, long-term capital gains of

non-corporate

U.S. Persons (including individuals) are eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations. Any gain or loss recognized by you will generally be

150

treated as U.S. source gain or loss. Consequently, you may not be able to use a foreign tax credit for any Korean tax imposed on the disposition of ADSs or common stock unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. However, pursuant to recently issued U.S. Treasury regulations that apply to taxes paid or accrued in taxable years beginning on or after December 28, 2021, any such Korean tax would generally not be a foreign income tax eligible for a foreign tax credit (regardless of any other income that you may have that is derived from foreign sources). Investors are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

You should note that any Korean securities transaction tax will not be treated as a creditable foreign tax for U.S. federal income tax purposes.

Passive Foreign Investment Company Rules

Based upon the past and projected composition of our income and assets and the valuation of our assets, we do not believe that we were a passive foreign investment company (a “PFIC”) for 2021, and we do not expect to be a PFIC in 2022 or to become one in the foreseeable future, although there can be no assurance in this regard. If, however, we become a PFIC, such characterization could result in adverse U.S. tax consequences to you. For example, if we become a PFIC, our U.S. investors may become subject to increased tax liabilities under U.S. tax laws and regulations and will become subject to burdensome reporting requirements. In addition,

non-corporate

U.S. Persons will not be eligible for reduced rates of taxation on any dividends received from us if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year. Our PFIC status is determined on an annual basis and depends on the composition of our income and assets in each year. Specifically, we will be classified as a PFIC for U.S. federal income tax purposes for any taxable year if either: (i) 75% or more of our gross income in such year is passive income, or (ii) the average percentage of our assets by value in such year which produce or are held for the production of passive income (which generally includes cash) is at least 50%. We cannot assure you that we will not be a PFIC for 2022 or any future taxable year.

Information Reporting and Backup Withholding

In general, information reporting requirements will apply to principal, interest, OID and premium payments on Registered Debt Securities and dividend payments in respect of the common stock or ADSs or the proceeds received on the sale, exchange, retirement or other disposition of the Registered Debt Securities, common stock or ADSs that are paid within the United States (and in certain cases, outside of the United States), unless you are an exempt recipient. A backup withholding tax may apply to such amounts if you fail to provide an accurate taxpayer identification number or certification of exempt status or fail to report interest and dividends required to be shown on your U.S. federal income tax returns. The amount of any backup withholding from a payment to you will be allowed as a refund or a credit against your U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

Item 10.F. Dividends and Paying Agents

Not applicable.

Item 10.G. Statements by Experts

Not applicable.

Item 10.H. Documents on Display

We are subject to the information requirements of the Exchange Act, and, in accordance therewith, are required to file reports, including annual reports on Form

20-F,

and other information with the U.S. Securities

151

and Exchange Commission. You may inspect and copy these materials, including this annual report and the exhibits thereto, at SEC’s Public Reference Room 100 Fifth Street, N.E., Washington D.C. 20549. Please call the Commission at

1-800-SEC-0330

for further information on the public reference rooms. As a foreign private issuer, we are also required to make filings with the Commission by electronic means. Any filings we make electronically will be available to the public over the Internet at the Commission’s web site at http://www.sec.gov.

Item 10.I. Subsidiary Information

Not applicable.

ITEM 11.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our primary market risk exposures are to fluctuations in exchange rates, interest rates and fuel prices. We are exposed to foreign exchange risk related to foreign currency-denominated liabilities. As of December 31, 2021, 16.4% of our long-term debt (including the current portion but excluding original issue discounts and premium), without taking into consideration of swap transactions, was denominated in foreign currencies, principally U.S. dollar. However, a substantial portion of our revenues is denominated in Won. As a result, changes in exchange rates, particularly between the Won and the U.S. dollar, significantly affect us due to our significant amounts of foreign currency-denominated debt and the effect of such changes on the amount of funds required by us to make interest and principal payments on such debt. In order to reduce the impact of foreign exchange rate fluctuations on our results of operations, we have entered into currency swaps and other hedging arrangements with respect to our foreign currency denominated debt.

We are also exposed to foreign exchange risk related to our purchases of fuel since we obtain substantially all of our fuel materials (other than anthracite coal) directly or indirectly from sources outside Korea. Prices for such fuel materials are quoted based on prices stated in, and in many cases are paid for in, currencies other than Won. In 2021, fuel costs represented 32.4% of our sales.

We are exposed to interest rate risk due to significant amounts of debt. Upward fluctuations in interest rates increase the cost of additional debt and the interest cost of outstanding floating rate borrowings. We are also exposed to fluctuations in prices of fuel materials. In 2021, for electricity generation, uranium accounted for 39.5% of our fuel requirements, coal accounted for 43.1%, LNG accounted for 13.7%, oil accounted for 0.4%, and others accounted for 3.3%, measured in each case by the amount of electricity we generated. In 2020, for electricity generation, uranium accounted for 40.6% of our fuel requirements, coal accounted for 45.3%, LNG accounted for 10.6%, oil accounted for 0.4%, and others accounted for 3.1%, measured in each case by the amount of electricity we generated.

For additional discussions of our market risks, see Item 3.D. “Risk Factors” and Item 5.B. “Liquidity and Capital Resources—Liquidity.”

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We have entered into various swap contracts to hedge exchange rate risks arising from foreign currency-denominated debts. Details of currency swap contracts outstanding as of December 31, 2021 are as follows:

	Counterparty	Contract Year		Settlement Year		Contract amounts				Contract interest rate		Contract Exchange Rate
Type						Pay		Receive		Pay	Receive
						(in millions of Won or thousands of foreign currencies except contract exchange rate information)
Trading	Standard Chartered		2014		2029		KRW 102,470		USD 100,000	3.14%	3.57%		1,024.70
	Societe Generale		2014		2024		KRW 105,017		USD 100,000	4.92%	5.13%		1,050.17
	Hana Bank		2015		2024		KRW 107,970		USD 100,000	4.75%	5.13%		1,079.70
	Credit Agricole		2015		2024		KRW 94,219		USD 86,920	4.85%	5.13%		1,083.97
	Woori Bank		2019		2027		KRW 21,708		USD 19,417	5.04%	6.75%		1,118.00
	Woori Bank		2019		2024		KRW 296,000		USD 250,000	1.21%	2.50%		1,184.00
	Korea Development Bank		2019		2024		KRW 177,600		USD 150,000	1.24%	2.50%		1,184.00
	Hana Bank		2019		2024		KRW 118,400		USD 100,000	1.24%	2.50%		1,184.00
	Woori Bank		2020		2025		KRW 241,320		USD 200,000	0.54%	1.13%		1,206.60
	Korea Development Bank		2020		2025		KRW 241,320		USD 200,000	0.54%	1.13%		1,206.60
	Kookmin Bank		2020		2025		KRW 120,660		USD 100,000	0.54%	1.13%		1,206.60
	Kookmin Bank		2020		2026		KRW 76,355		USD 70,445	5.83%	6.00%		1,083.90
	Woori Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Korea Development Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Hana Bank		2021		2026		KRW 118,170		USD 100,000	1.11%	1.13%		1,181.70
	Citibank		2012		2022		KRW 112,930		USD 100,000	2.79%	3.00%		1,129.30
	JP Morgan		2012		2022		KRW 112,930		USD 100,000	2.79%	3.00%		1,129.30
	Bank of America		2012		2022		KRW 112,930		USD 100,000	2.79%	3.00%		1,129.30
	Shinhan Bank		2016		2022		KRW 112,930		USD 100,000	2.79%	3.00%		1,129.30
	HSBC		2012		2022		KRW 111,770		USD 100,000	2.89%	3.00%		1,117.70
	Hana Bank		2012		2022		KRW 111,770		USD 100,000	2.87%	3.00%		1,117.70
	Standard Chartered		2012		2022		KRW 111,770		USD 100,000	2.89%	3.00%		1,117.70
	Deutsche Bank		2012		2022		KRW 55,885		USD 50,000	2.79%	3.00%		1,117.70
	Nomura		2015		2025		KRW 111,190		USD 100,000	2.60%	3.25%		1,111.90
	Korea Development Bank		2015		2025		KRW 111,190		USD 100,000	2.62%	3.25%		1,111.90
	Woori Bank		2015		2025		KRW 55,595		USD 50,000	2.62%	3.25%		1,111.90
	Hana Bank		2015		2025		KRW 55,595		USD 50,000	2.62%	3.25%		1,111.90
	Woori Bank		2017		2027		KRW 111,610		USD 100,000	2.25%	3.13%		1,116.10
	Korea Development Bank		2017		2027		KRW 111,610		USD 100,000	2.31%	3.13%		1,116.10
	Hana Bank		2017		2027		KRW 111,610		USD 100,000	2.31%	3.13%		1,116.10
	Korea Development Bank		2018		2028		KRW 108,600		HKD 800,000	2.69%	3.35%		135.75
	Shinhan Bank		2018		2028		KRW 115,387		HKD 850,000	2.66%	3.35%		135.75
	Korea Development Bank		2018		2023		KRW 170,280		USD 150,000	2.15%	3.75%		1,135.20
	Woori Bank		2018		2023		KRW 170,280		USD 150,000	2.18%	3.75%		1,135.20
	Hana Bank		2018		2023		KRW 113,520		USD 100,000	2.17%	3.75%		1,135.20
	Shinhan Bank		2018		2023		KRW 227,040		USD 200,000	2.17%	3.75%		1,135.20
	Citibank		2019		2024		KRW 239,956		CHF 200,000	1.44%	0.00%		1,199.78
	Korea Development Bank		2019		2027		KRW 119,978		CHF 100,000	1.43%	0.05%		1,199.78
	Woori Bank		2021		2026		KRW 222,800		USD 200,000	0.93%	1.25%		1,114.00
	Shinhan Bank		2021		2026		KRW 111,400		USD 100,000	0.92%	1.25%		1,114.00
	Korea Development Bank		2021		2026		KRW 111,400		USD 100,000	0.93%	1.25%		1,114.00
	Nonghyup Bank		2021		2026		KRW 111,400		USD 100,000	0.93%	1.25%		1,114.00
	HSBC		2019		2024		USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%		USD 0.69
Cash flow hedge	Kookmin Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Shinhan Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Hana Bank		2020		2025		KRW 118,780		USD 100,000	1.29%	2.13%		1,187.80
	Korea Development Bank		2020		2026		KRW 118,910		USD 100,000	0.61%	1.00%		1,189.10
	Hana Bank		2020		2026		KRW 118,910		USD 100,000	0.61%	1.00%		1,189.10
	Woori Bank		2020		2026		KRW 118,910		USD 100,000	0.62%	1.00%		1,189.10
	Nomura		2017		2037		KRW 52,457		EUR 40,000	2.60%	1.70%		1,311.42

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	Counterparty	Contract Year		Settlement Year		Contract amounts				Contract interest rate		Contract Exchange Rate
Type						Pay		Receive		Pay	Receive
						(in millions of Won or thousands of foreign currencies except contract exchange rate information)
	Nomura		2017		2037		KRW 59,423		SEK 450,000	2.62%	2.36%		132.05
	Korea Development Bank		2019		2022		KRW 112,650		USD 100,000	1.80%	3.38%		1,126.50
	Kookmin Bank		2019		2022		KRW 112,650		USD 100,000	1.80%	3.38%		1,126.50
	Woori Bank		2019		2022		KRW 112,650		USD 100,000	1.80%	3.38%		1,126.50
	Kookmin Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Korea Development Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Hana Bank		2021		2026		KRW 114,230		USD 100,000	1.27%	1.25%		1,142.30
	Korea Development Bank		2018		2023		KRW 320,880		USD 300,000	2.03%	3.75%		1,069.60
	BNP Paribas		2019		2024		KRW 111,841		CHF 100,000	1.78%	0.13%		1,118.41
	Kookmin Bank		2019		2024		KRW 111,841		CHF 100,000	1.78%	0.13%		1,118.41
	Korea Development Bank		2019		2022		KRW 117,340		USD 100,000	1.06%	2.38%		1,173.40
	Hana Bank		2019		2022		KRW 117,340		USD 100,000	1.06%	2.38%		1,173.40
	Kookmin Bank		2019		2022		KRW 117,340		USD 100,000	1.06%	2.38%		1,173.40
	Woori Bank		2021		2026		KRW 220,600		USD 200,000	0.47%	0.75%		1,103.00
	Shinhan Bank		2021		2026		KRW 220,600		USD 200,000	0.47%	0.75%		1,103.00
	Hana Bank		2021		2026		KRW 55,150		USD 50,000	0.48%	0.75%		1,103.00
	Hana Bank		2017		2022		KRW 226,600		USD 200,000	1.94%	2.63%		1,133.00
	Korea Development Bank		2017		2022		KRW 113,300		USD 100,000	1.94%	2.63%		1,133.00
	Nomura		2017		2022		KRW 113,300		USD 100,000	1.95%	2.63%		1,133.00
	Woori Bank		2017		2022		KRW 56,650		USD 50,000	1.95%	2.63%		1,133.00
	Kookmin Bank		2017		2022		KRW 56,650		USD 50,000	1.95%	2.63%		1,133.00
	Korea Development Bank		2018		2023		KRW 169,335		USD 150,000	2.26%	3.88%		1,128.90
	Woori Bank		2018		2023		KRW 169,335		USD 150,000	2.26%	3.88%		1,128.90
	Credit Agricole		2018		2023		KRW 112,890		USD 100,000	2.26%	3.88%		1,128.90
	Hana Bank		2018		2023		KRW 56,445		USD 50,000	2.26%	3.88%		1,128.90
	Kookmin Bank		2018		2023		KRW 56,445		USD 50,000	2.26%	3.88%		1,128.90
	Woori Bank		2020		2025		KRW 245,560		USD 200,000	0.93%	1.75%		1,227.80
	Hana Bank		2020		2025		KRW 245,560		USD 200,000	0.93%	1.75%		1,227.80
	Korea Development Bank		2020		2025		KRW 122,780		USD 100,000	0.93%	1.75%		1,227.80

Under these currency swap contracts, we recognized net valuation gain of Won 787 billion in 2021.

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Details of interest rate contracts outstanding as of December 31, 2021 are as follows:

	Counterparty	Contract Year		Settlement Year		Contract amounts		Contract interest rate per annum
Type								Pay	Receive
						(in millions of Won or thousands of USD)
Trading	Hana Bank		2017		2022		KRW 100,000	2.01%	3M CD + 0.24%
	Hana Bank		2017		2022		KRW 100,000	2.06%	3M CD + 0.27%
	Nomura (1)		2018		2038		KRW 30,000	2.56%	3.75%
	Hana Bank		2018		2023		KRW 200,000	2.15%	3M CD + 0.19%
	Hana Bank		2018		2023		KRW 200,000	2.17%	3M CD + 0.19%
	Hana Bank		2018		2023		KRW 150,000	2.03%	3M CD + 0.21%
	Hana Bank		2019		2024		KRW 200,000	1.87%	3M CD + 0.13%
	Shinhan Bank		2021		2025		KRW 100,000	2.32%	3M CD + 0.43%
	Societe Generale		2017		2022		KRW 200,000	3M Libor +��3.44%	3.77%
	Nomura		2017		2032		KRW 52,457	3M Libor + 2.22%	2.60%
	Nomura		2017		2032		KRW 59,423	3M Libor + 2.24%	2.62%
	Nomura (2)		2021		2041		KRW 30,000	1.84%	2.60%
	Nomura (3)		2021		2041		KRW 50,000	1.87%	2.38%
Cash flow hedge	Export-Import Bank of Korea		2015		2031		USD 15,893	2.67%	6M USD Libor
	ING Bank		2015		2031		USD 7,861	2.67%	6M USD Libor
	BNP Paribas		2015		2031		USD 7,861	2.67%	6M USD Libor
	BNP Paribas		2009		2027		USD 60,316	4.16%	6M USD Libor
	KFW		2009		2027		USD 60,316	4.16%	6M USD Libor
	Export-Import Bank of Korea		2016		2036		USD 71,116	3.00%	6M USD Libor

Notes:

(1) 2.56% of the contract interest rate for paying 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 date on the same day of every year starting from June 15, 2023.

(2) 1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(3) 1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

Under these interest rate swap contracts, we recognized net valuation gain of Won 18 billion in 2021.

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We engage in transactions denominated in foreign currencies and consequently become exposed to fluctuations in exchange rates. The carrying amounts of our foreign currency-denominated monetary assets and monetary liabilities as of December 31, 2020 and 2021 were as follows:

	Assets				Liabilities
Type	2020		2021		2020		2021
	(In thousands of foreign currencies)
AED		39,678		6,481		31,594		31,637
AUD		133		3,733		707,538		926,960
BDT		93,442		50,145		—		577
BWP		890		939		—		—
EGP		—		—		948		595
CAD		247		582		1,840		2,266
CHF		—		—		500,406		500,230
CZK		—		—		2,033		386
EUR		310		1,809		121,069		42,981
GBP		—		—		43		—
HKD		—		—		1,651,839		1,651,665
IDR		342,496		768,731		555,241		995,510
INR		1,231,895		1,715,900		155,134		342,833
JOD		1,673		1,852		—		118
JPY		825,269		697,747		484,585		153,383
KZT		1,510		1,510		—		—
MGA		5,645,349		4,262,857		—		475,807
MMK		11,032		210,335		—		—
MYR		—		1,964		—		—
PHP		191,122		164,167		104,161		104,245
PKR		371,328		200,844		12,222		74,423
SAR		2,178		2,615		—		—
SEK		—		—		449,824		449,167
USD		1,445,522		1,381,441		12,234,563		12,023,085
UYU		78,265		90,930		1,585		3,097
VND		672,563		952,135		—		262,372
ZAR		303		31,971		—		—

The following analysis sets forth the sensitivity of our consolidated net income before income taxes (our

“pre-tax

income”) to changes in exchange rates, interest rates, electricity rates and fuel costs. For purposes of this section, we and our related parties are deemed one entity. The range of changes in such risk categories represents our view of the changes that are reasonably possible over a

one-year

period, although it is difficult to predict such changes as a result of adverse economic developments in Korea. See Item 3.D. “Risk Factors—Risks Relating to Korea and the Global Economy—Unfavorable financial and economic conditions in Korea and globally may have a material adverse impact on us.” The following discussion only addresses material market risks faced by us and does not discuss other risks which we face in the normal course of business, including country risk, credit risk and legal risk. Unless otherwise specified, all calculations are made under IFRS.

If the Won depreciates against the U.S. dollar and all other foreign currencies held by us by 10%, and all other variables are held constant from their levels as of December 31, 2021, we estimate that our unrealized foreign exchange translation losses will increase by Won 1,439 billion in 2022. Such sensitivity analysis is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency as of December 31, 2020 and 2021, without taking into consideration of the hedge effect of swap transactions. To manage our foreign currency risk related to foreign currency-denominated receivables and payables, we have a policy of entering into currency forward agreements. In addition, to manage our foreign currency risk related to

156

foreign currency-denominated expected sales transactions and purchase transactions, we enter into cross-currency swap agreements.

We are exposed to interest rate risk due to our borrowings with floating interest rates. If interest rates increase by 1% on all of our borrowings and debentures bearing variable interest, and all other variables are held constant as of December 31, 2021, we estimate that our profit before income taxes will decrease by Won 31 billion (not reflecting the fact that a portion of such interest may be capitalized under IFRS) in 2022. Such sensitivity analysis does not take into consideration of the hedge effect of interest rate swap transactions. To manage our interest rate risks, we, in addition to maintaining an appropriate mix of fixed and floating rate loans, have entered into certain interest rate swap agreements.

We are exposed to electricity rates risk due to the rate regulation by the Government, which considers the effect of electricity rate changes on the national economy. If the electricity rate rises by 1% and all other variables are held constant as of December 31, 2021, we estimate that our profit before income taxes will increase by Won 572 billion in 2022.

We are exposed to fuel price risks due to the heavy influence of fuel costs on our sales and cost of sales. If the fuel prices of anthracite and bituminous coal, oil, LNG and others used for generation by us and our generation subsidiaries rise by 1% and all other variables are held constant as of December 31, 2021, we estimate that our profit before income taxes will decrease by Won 190 billion in 2022.

The above discussion and the estimated amounts generated from the sensitivity analyzes referred to above include “forward-looking statements,” which assume for analytical purposes that certain market conditions may occur. Accordingly, such forward-looking statements should not be considered projections by us of future events or losses.

See Note 45 of the notes to our consolidated financial statements included in this annual report for further related information.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

Item 12.A. Debt Securities

Of the four debt securities issued by us that are registered under the Exchange Act as set forth in the cover page of this annual report, the One Hundred Year 7.95%

Zero-to-Full

Debentures due April 1, 2096, were guaranteed by Korea Development Bank. However, such guarantee expired on April 1, 2016 by reason of the expiration of a put option period applicable to such debentures in accordance with the terms of such debentures.

Korea Development Bank, a statutory bank for the Korean government, is 100% beneficially owned by the Korean government. The voting rights in our equity interest held by Korea Development Bank are effectively exercised by the Korean government.

The guarantee by Korea Development Bank of our above-mentioned registered debt securities was itself a security registered under the Securities Act. Korea Development Bank is a Schedule B issuer and periodically files registration statements with the Commission. These registration statements typically include financial statements prepared in accordance with the applicable generally accepted accounting principles, currently the Korean International Financial Reporting Standards, and audited in accordance with generally accepted auditing standards in the Republic of Korea.

Item 12.B. Warrants and Rights

Not applicable.

157

Item 12.C. Other Securities

Not applicable.

Item 12.D. American Depositary Shares

Under the terms of the Deposit Agreement in respect of our ADSs, the holder and beneficiary owners of ADSs, any party depositing or withdrawing or surrendering ADSs or ADRs, whichever applicable, may be required to pay the following fees and charges to Citibank, N.A., whose principal executive office located in 388 Greenwich St. New York, NY 10013, acting as depositary for our ADSs:

Item	Services	Fees
1	Taxes and other governmental charges	As applicable
2	Registration of transfer of common shares generally on our shareholders’ register, any institution authorized under the applicable law to effect book-entry transfers of securities (including Korea Securities Depositary), or any entity that presently carries out the duties of registrar for the common shares, and applicable to transfers of common shares to the name of the Depositary or its nominee on the making of deposits or withdrawals	A fee of US$1.50 or less per ADS
3	Cable, telex and facsimile transmission expenses	As applicable
4	Expenses incurred by the Depositary in the conversion of foreign currency	As applicable
5	Execution and delivery of ADRs and the surrender of ADRs	Fee of US$0.05 or less per ADS
6	Cash distribution made by the Depositary or its agent	Fee of US$0.02 or less per ADS
7	Fee for the distribution of proceeds of sales of securities or rights for distribution other than cash, common shares or rights to subscribe for shares, distribution in shares or distribution in rights to subscribe for shares	Lesser of (i) the fee for the execution and delivery of ADRs referred to above which would have been charged as a result of the deposit by the holders of securities or common shares received in exercise of rights distributed to them, but which securities or rights are instead sold by the Depositary and the net proceeds distributed and (ii) the amount of such proceeds
8	Depositary services performed in administering the ADRs (which fee shall be assessed against holders of ADSs as of the record date or dates and shall be payable at the sole discretion of the Depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash distributions)	Fee of US$0.02 or less per ADS per calendar year

Depositary fees payable upon the issuance and cancellation of ADSs are typically paid to the depositary by the brokers (on behalf of their clients) receiving the newly-issued ADSs from the depositary and by the brokers

158

(on behalf of their clients) delivering the ADSs to the depositary for cancellation. The brokers in turn charge these transaction fees to their clients.

Depositary fees payable in connection with distributions of cash or securities to ADS holders and the depositary services fee are charged by the depositary to the holders of record of ADSs as of the applicable ADS record date. The depositary fees payable for cash distributions are generally deducted from the cash being distributed. In the case of distributions other than cash (i.e., stock dividends, rights offerings), the depositary charges the applicable fee to the ADS record date holders concurrent with the distribution. In the case of ADSs registered in the name of the investor (whether certificated or

un-certificated

in direct registration), the depositary sends invoices to the applicable record date ADS holders. In the case of ADSs held in brokerage and custodian accounts via the central clearing and settlement system, the Depository Trust Company (“DTC”), the depositary generally collects its fees through the systems provided by DTC (whose nominee is the registered holder of the ADSs held in DTC) from the brokers and custodians holding ADSs in their DTC accounts. The brokers and custodians who hold their clients’ ADSs in DTC accounts in turn charge their clients’ accounts the amount of the fees paid to the depositary.

In the event of refusal to pay the depositary fees, the depositary may, under the terms of the Deposit Agreement, refuse the requested service until payment is received or may

set-off

the amount of the depositary fees from any distribution to be made to the ADS holder.

The fees and charges the ADS holders may be required to pay may vary over time and may be changed by us and by the depositary. The ADS holders will receive prior notice of such changes.

Depositary Payments for the Fiscal Year 2021

The following table sets forth our expenses incurred in 2021, which were reimbursed by Citibank, N.A. in the aggregate:

	(In thousands of U.S. dollars) (1)
Reimbursement of legal fees	US$	148,993
Contributions towards our investor relations and other financing efforts (including investor conferences, non-deal roadshows and market information services)		224,295
Other		140,604
Total	US$	513,892

Note:

(1) Converted at the market average exchange rate as announced by Seoul Money Brokerage Services, Ltd. in Seoul for the year ended December 31, 2021.

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PART II

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Not applicable.

ITEM 15. CONTROLS AND PROCEDURES

Disclosure Control

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule

13a-15(e)

under the Exchange Act) as of December 31, 2021. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can provide only reasonable assurance of achieving their control objectives. Based upon our evaluation, our chief executive officer and chief financial officer concluded that the design and operation of our disclosure controls and procedures as of December 31, 2021 were effective to provide reasonable assurance that information required to be disclosed by us in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decision regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules

13a-15(f)

and

15d-15(f)

under the Exchange Act, for our company. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of our internal control over financial reporting as of December 31, 2021 based on the framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with generally accepted accounting principles and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of a company’s assets, (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that a company’s receipts and expenditures are being made only in accordance with authorizations of a company’s management and directors, and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company’s assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance with respect to consolidated financial statement preparation and presentation and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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Following the overhaul in May 2013 by the Committee of Sponsoring Organization of the Treadway (“COSO”) of the COSO Framework relating to internal controls and adoption of the 2013 Integrated Framework of the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO Framework (2013)”), we have, effective January 1, 2014, adopted the COSO Framework (2013) and incorporated it into our internal control system for us and our subsidiaries in order to comply with the Sarbanes Oxley Act and to standardize our internal control system. As required by Section 404 of the Sarbanes-Oxley Act of 2002 and related rules as promulgated by the Securities and Exchange Commission, management assessed the effectiveness of our internal control over financial reporting as of December 31, 2021 using criteria established by the COSO Framework (2013). Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2021 based on the criteria established by the COSO Framework (2013).

Audit Report of the Independent Registered Public Accounting Firm

Ernst & Young Han Young has issued an audit report on the effectiveness of our internal control over financial reporting as of December 31, 2021, which is included elsewhere in this annual report.

Changes in Internal Controls

There were no changes in our internal control over financial reporting that occurred during the year ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our adoption of the COSO Framework (2013) did not have, and is not reasonably likely to have, any material effect on our internal control over financial reporting.

On the other hand, in preparation for seamless transition to the new cost pass-through system, we have adopted an enhancement to our internal control over financial reporting effective as of January 1, 2021. Nevertheless, such enhancement did not have any effect on our consolidated financial statements included in this annual report or related internal controls to have any effect on our assessment of internal control over financial reporting as of December 31, 2021. We believe such enhancement would not have, and is not likely to have, any material effect on our internal control over financial reporting in 2022.

We operate an integrated ERP system for a transparent and efficient management of the core ERP components, including personnel, accounting, procurement, construction and facilities maintenance. In addition, we also operate a strategic enterprise management system that includes business warehouse, management information and business planning and simulation systems. We will continue to upgrade and improve the ERP system, which is being used as our core information infrastructure.

ITEM 16. [RESERVED]

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

Our board of directors has determined that we have at least one “audit committee financial expert” as such term is defined by the regulations of the Securities and Exchange Commission issued pursuant to Section 407 of the Sarbanes-Oxley Act of 2002. Our audit committee financial expert is Kim,

Jae-Shin.

Such member is independent within the meaning of the Korea Exchange listing standards, the regulations promulgated under the Enforcement Decree of the Korean Commercial Act and the New York Stock Exchange listing standards.

ITEM 16B. CODE OF ETHICS

We have adopted a code of ethics for our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions as required under Section 406 of the Sarbanes-Oxley Act of 2002, together with an insider reporting system in compliance with Section 301 of the

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Sarbanes-Oxley Act. The code of ethics is available on our website www.kepco.co.kr. We have not granted any waiver, including an implicit waiver, from a provision of the code of ethics to any of the above-mentioned officers during our most recently completed fiscal year.

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table sets forth the aggregate fees billed for each of the years ended December 31, 2020 and 2021 for professional services rendered by our principal accountant for such year, for various types of services and a brief description of the nature of such services. Ernst & Young Han Young, a Korean independent registered public accounting firm, was our principal accountant for the years ended December 31, 2020 and 2021 and we currently expect Ernst & Young Han Young to serve as our principal accountant for the year ended December 31, 2022.

	Aggregate Fees Billed During
Type of Services	2020		2021		Nature of Services
	(In millions of Won)
Audit Fees	W	7,774	W	8,002	Audit service including interim review service for KEPCO and its subsidiaries.
Audit-Related Fees		516		498	Comfort letter services.
Tax Fees		56		20	Tax return and consulting advisory service.
All Other Fees		—		—	All other services which do not meet the three categories above.
Total	W	8,346	W	8,520

The U.S. law and regulations in effect since May 6, 2003 generally require all service of the principal accountant to be

pre-approved

by an independent audit committee or, if no such committee exists with respect to an issuer, by the entire board of directors. We have adopted the following policies and procedures for consideration and approval of requests to engage our principal accountant to perform audit and

non-audit

services. If the request relates to services that would impair the independence of our principal accountant, the request must be rejected. If the service request relates to audit and permitted

non-audit

services for us and our subsidiaries, it must be forwarded to our audit committee and receive

pre-approval.

In addition, the U.S. law and regulations permit the

pre-approval

requirement to be waived with respect to engagements for

non-audit

services aggregating no more than five percent of the total amount of revenues we paid to our principal auditors, if such engagements were not recognized by us at the time of engagement and were promptly brought to the attention of our audit committee or a designated member thereof and approved prior to the completion of the audit.

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEE

Not applicable.

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Neither we nor any “affiliated purchaser,” as defined in Rule

10b-18(a)(3)

of the Exchange Act, purchased any of our equity securities during the period covered by this annual report.

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

Not applicable.

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ITEM 16G. CORPORATE GOVERNANCE

We are committed to high standards of corporate governance. We are in compliance with the corporate governance provisions of the KEPCO Act, the Act on the Management of Public Institutions, the Korean Commercial Act, the Financial Investment Services and Capital Markets Act of Korea and the Listing Rules of the Korea Exchange.We, like all other companies in Korea, must comply with the corporate governance provisions under the Korean Commercial Act, except to the extent the KEPCO Act and the Act on the Management of Public Institutions otherwise require. Our corporate governance is also affected by various regulatory guidelines, including those promulgated by the Ministry of Economy and Finance. In addition, as a company listed on the Korea Exchange, we are subject to the Financial Investment Services and Capital Markets Act of Korea, unless the Financial Investment Services and Capital Markets Act of Korea otherwise provides.

The Act on the Management of Public Institutions

General Provisions

On April 1, 2007, the Act on the Management of Public Institutions took effect by abolishing and replacing the Government-invested Enterprise Management Basic Act, which was enacted in 1984. Unless stated otherwise therein, the Act on the Management of Public Institutions takes precedence over any other laws and regulations in the event of inconsistency. On April 2, 2007, pursuant to this Act the minister of the Ministry of Economy and Finance designated us as a “market-oriented public enterprise” as defined under this Act, and we became subject to this Act accordingly. We incorporated the applicable provisions of this Act into our Articles of Incorporation by amendment thereto in September 2007.

The Act on the Management of Public Institutions sets out the rules for corporate governance for entities that are subject to this Act, including the appointment of their respective president and directors. Under this Act as it applies to us as a “market-oriented public enterprise”, (i) a senior

non-standing

director as appointed by the minister of the Ministry of Economy and Finance becomes the chairperson of our board of directors following the review and resolution of the Committee for Management of Public Institutions; (ii) our president and our standing directors who concurrently serve as members of our audit committee are appointed by the President of the Republic upon the motion of the Ministry of Trade, Industry and Energy (in the case of our president) or of the Ministry of Economy and Finance (in the case of standing directors who concurrently serve as members of our audit committee), following the nomination by such enterprise’s director nomination committee, the review and resolution of the Committee for Management of Public Institutions pursuant to the Act on the Management of Public Institutions and an approval at the general meeting of our shareholders; (iii) our standing directors other than the president and those who also serve as audit committee members must be appointed by our president with the approval at the general meeting of our shareholders from a pool of candidates recommended by our director nomination committee; and (iv) our

non-standing

directors must be appointed by the minister of the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee, and must have ample knowledge and experience in business management.

The Committee for Management of Public Institutions is established pursuant to the Act on the Management of Public Institutions and is comprised of one chairperson who is the Minister of the Ministry of Economy and Finance and the following members: (i) one Vice Minister-level public official from the Office for Government Policy Coordination as nominated by the minister of the Office for Government Policy Coordination; (ii) one Vice Minister, Deputy Administrator or an equivalent public official of the related administrative agency as prescribed by Presidential Decree; (iii) one Vice Minister, Deputy Administrator, or an equivalent public official of the competent agency who does not fall under subclause (ii); and (iv) 11 or fewer persons commissioned by the President based on the recommendation of the Minister of the Ministry of Economy and Finance from among persons in various fields including law, economy, press, academia, labor, who have good knowledge and experience in the operation and business administration of public institutions as well as good reputation for impartiality.

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Our director nomination committee, which is also known as the Committee for Recommendation of Executive Officers, is comprised of

non-standing

directors and members appointed by the board of directors. The number of members ranges from five to 15 persons and must be decided by a resolution of the board of directors; provided that, the number of members appointed by the board of directors must be less than half of the total number of members of our director nomination committee.

Under the Act on the Management of Public Institutions and our Articles of Incorporation, the term of office is three years for our president and two years for our directors (standing and

non-standing)

other than our president. Our directors (including the president) may be reappointed for one or more additional terms of one year. In order to be reappointed, the president must be evaluated on the basis of his management performance; a standing director, on the basis of the performance of the duties for which he was elected to perform, or if the standing director has executed an incentive bonus contract, on the basis of his performance under the contract; and a

non-standing

director, on the basis of his performance of the duties for which he was elected to perform.

Under the Act on the Management of Public Institutions and our Articles of Incorporation, a recommendation from the director nomination committee is required for the appointment of our executive officers, except in the case of reappointments. The director nomination committee consists of five to fifteen members, including private-sector members appointed by the board of directors.

Non-standing

directors must comprise at least a majority of the director nomination committee. One of the private-sector members must be able to represent our opinion and must not be currently employed by us. As required under the Act on the Management of Public Institutions, we established an audit committee. At least

two-thirds

of the audit committee members must be

non-standing

directors, and at least one committee member must be an expert in finance or accounting. According to the Act on the Management of Public Institutions, our president’s term cannot be terminated unless done so by the President of the Republic pursuant to the Act on the Management of Public Institutions or upon an event as specified in our Articles of Incorporation.

As required under Act on the Management of Public Institutions, we submit to the Government by October 31 every year a report on our medium- to long-term management goals. Under the Act on the Management of Public Institutions, we are also required to give separate public notice of important management matters, such as our budget and financial statements, status of directors and annual reports. In addition, for purposes of providing a comparison of the management performances of Government agencies, we are required to post on a designated website a notice on a standard form detailing our management performance. Following consultation with the minister of the Ministry of Trade, Industry and Energy and the review and resolution of the Committee for Management of Public Institutions, the Ministry of Economy and Finance must examine the adequacy and competency of Government agencies and establish plans on merger, abolishment, restructuring and privatization of public agencies. In such case, the minister of the Ministry of Trade, Industry and Energy must execute these plans and submit a performance report to the Ministry of Economy and Finance.

Under certain amendments to the Act on the Management of Public Institutions that became effective as of July 1, 2019, our president is required to establish a plan to appoint directors and senior management based on the gender equality, endeavor to follow such plan, and submit an annual report on our gender equality plan regarding appointment of directors and senior management to the Ministry of Economy and Finance.

Application of the Act to Our Generation Subsidiaries

On January 24, 2011, the Ministry of Economy and Finance changed the designation of our six generation subsidiaries from “other public institutions” to “market-oriented public enterprises”, each as defined in the Act on the Management of Public Institutions, and all of our generation subsidiaries accordingly amended their respective articles of incorporation in 2011 to be in compliance with this Act. As “other public institutions”, our generation subsidiaries previously were not subject to the same regulations under the Act on the Management of Public Institutions applicable to us with regards to corporate governance matters such as the appointment and dismissal of directors and the composition of the boards of directors. However, as “market-oriented public enterprises”, our generation subsidiaries are currently subject to the same such regulations that are applicable to us.

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Specifically, prior to such designation, (i) our president appointed the presidents and the statutory auditors of our generation subsidiaries; (ii) the selection of

non-standing

directors of each such subsidiary was subject to approval by our president; (iii) the president of each such subsidiary entered into a management contract with our president; and (iv) our evaluation committee conducted performance evaluation of such subsidiaries. However, following such designation, akin to the appointment process applicable to us, (i) the President of the Republic appoints the presidents and standing directors of our generation subsidiaries that concurrently serve as members of the audit committees; (ii) the selection of

non-standing

directors of these subsidiaries is subject to approval by the minister of the Ministry of Economy and Finance; (iii) the president of each such generation subsidiary is required to enter into a management contract directly with the minister of the Ministry of Trade, Industry and Energy; and the Committee for Management of Public Institutions conducts performance evaluation of such subsidiaries.

Our Control over the Generation Subsidiaries

Designation of our generation subsidiaries as “market-oriented public enterprises” was intended to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them so as to provide improved service to the general public. Such designation also has had the effect of the Government exercising greater direct control over the appointment of the governing body of our generation subsidiaries (in ways that are similar how the Government exercises such control over us as our majority shareholder as well as our regulator).

In addition, the Government has imposed a number of regulations that further affect the respective operational boundaries between us and our generation subsidiaries, including as follows:

• In August 2010, in furtherance of the Act on the Management of Public Institutions, the Ministry of Economy and Finance announced the Proposal for the Improvement in the Structure of the Electric Power Industry, which was designed to promote responsible management by and improve operational efficiency of Government-affiliated electricity companies by fostering competition among them. Key initiatives of the proposal included the following: (i) maintain the current structure of having six generation subsidiaries and designate the six generation subsidiaries as market-oriented public enterprises under the Act on the Management of Public Institutions in order to foster competition among the generation subsidiaries and promote efficiency in their operations, and (ii) clarify the scope of the business of us and the six generation subsidiaries (namely, that we shall manage the financial structure and governance of the six generation subsidiaries and nuclear power plant and overseas resources development projects, while the six generation subsidiaries will have greater autonomy with respect to construction and management of generation units and procurement of fuel, among others).

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

• In June 2016, the Government announced the Proposal for Adjustment of Functions of Public Institutions (Energy Sector) for the purpose of streamlining the operations of Government-affiliated

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energy companies by discouraging them from engaging in overlapping or similar businesses with each other, reducing

non-core

assets and activities and improving management and operational efficiency. The initiatives contemplated in this proposal that would affect us and our generation subsidiaries include the following: (i) the generation companies should take on greater responsibilities in overseas resource exploration and production projects as these involve procurement of fuels necessary for electricity generation while fostering cooperation among each other through closer coordination, (ii) KHNP should take a greater role in export of nuclear technology, and (iii) the current system of retail sale of electricity to

end-users

should be liberalized to encourage more competition.

However, notwithstanding these developments, we, also a government-controlled entity, remain as the sole shareholder of our generation subsidiaries and continue to exercise significant control over them in such capacity as the sole shareholder well as through other practical means as further described below.

First, as the sole shareholder, we continue to have the right, under the Act on the Management of Public Institutions, to approve or disapprove the appointment of key members of the governing body of our generation subsidiaries (namely, the president, the standing directors, and the

non-standing

directors) by way of a vote at the general shareholders meeting before such appointments are ultimately approved and made by the President of the Republic (in the case of the presidents and standing directors concurrently serving as audit committee members of the generation subsidiaries) or by the president of each generation subsidiary (in the case of other standing directors of such generation subsidiary). Our right to exercise such voting right as a shareholder is also protected by the Commercial Act of Korea.

Second, in practice we retain significant control over our generation subsidiaries through the following means:

• We are the sole purchaser of electricity produced by the generation subsidiaries and continue to have near monopoly in terms of transmitting and distributing electricity in Korea. Accordingly, we continue to have significant influence over our generation subsidiaries in the electricity industry.

• Our president holds regular meetings (known as “CEO Meetings”) with the presidents of our generation subsidiaries for which our president determines whether and when to convene such meetings, sets the agenda for such meetings and chairs such meetings. Since significant issues that jointly affect us and our generation subsidiaries are often discussed and decided at these meetings, the leadership role exercised by our president in such meetings is significant in setting the policies and direction for us and our generation subsidiaries as a whole.

• We maintain and operate the Affiliated Company Management Team within the parent company organizational structure. The purpose of this team is to support and coordinate the management of the generation subsidiaries. Activities of the Affiliated Company Management Team include preparation of the CEO meetings, deliberation on major issues to be discussed at CEO Meetings, convening a general meeting of shareholders of the generation subsidiaries and coordination on the decision-making process for the general meeting of shareholders of the generation subsidiaries.

Ultimately, our control over our generation subsidiaries is derived from the fact that the Government owns the majority of our shares and effectively controls us as the supervisor and regulator in a heavily regulated industry, and in effect also exercises the same degree of control over our generation subsidiaries through our sole share ownership over our generation subsidiaries as well as its statutory power of direct appointment of the governing bodies of our generation subsidiaries. In effect, we are acting as an intermediate holding company in a vertical control structure involving the Government, us and our generation subsidiaries, where the Government holds the ultimate control over both us and our generation subsidiaries and exercises its control over our generation subsidiaries in part through us acting as the sole shareholder and the parent company.

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Differences between Korean and New York Stock Exchange Corporate Governance Practices

We are a “foreign private issuer” (as such term is defined in Rule

3b-4

under the Exchange Act), and our ADSs are listed on the New York Stock Exchange, or NYSE. Under Section 303A of the NYSE Listed Company Manual, NYSE-listed companies that are foreign private issuers are permitted to follow home country practice in lieu of the corporate governance provisions specified by the NYSE with limited exceptions. Under the NYSE Listed Company Manual, we as a foreign private issuer are required to disclose significant differences between NYSE’s corporate governance standards and those we follow under Korean law. The following summarizes some significant ways in which our corporate governance practices differ from those followed by U.S. companies listed on the NYSE under the listing rules of the NYSE.

Majority of Independent Directors on the Board

Under the NYSE listing rules, U.S. companies listed on the NYSE must have a board, the majority of which is comprised of independent directors satisfying the requirements of “independence” as set forth in Rule

10A-3

under the Exchange Act. No director qualifies as “independent” unless the board of directors affirmatively determines that the director has no material relationship with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with us). The NYSE rules include detailed tests for determining director independence. As a foreign private issuer, we are exempt from this requirement. Under the Act on the Management of Public Institutions, more than

one-half

of our directors must be

non-standing

directors. For a discussion on qualifications of

non-standing

directors, see Item 6.A. “Directors and Senior Management—Board of Directors.” Under the Act on the Management of Public Institutions, a

non-standing

director is appointed by the Ministry of Economy and Finance following the review and resolution of the Committee for Management of Public Institutions from a pool of candidates recommended by the director nomination committee, and must have ample knowledge and experience in business management. Government officials that are not part of the teaching staff in national and public schools are ineligible to become our

non-standing

directors.

Executive Session

Under the NYSE listing rules,

non-management

directors of U.S. companies listed on the NYSE are required to meet on a regular basis without management present and independent directors must meet separately at least once per year. While no such requirement currently exists under applicable Korean law, listing standards or our Articles of Incorporation, executive sessions were held from time to time in 2018 and in 2021 in order to promote the exchange of diverse opinions by

non-standing

directors.

Audit Committee

Under the NYSE listing rules, listed companies must have an audit committee that has a minimum of three members, and all audit committee members must satisfy the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule

10A-3

under the Exchange Act. Our audit committee members meet the requirements of independence set forth in Section 303A.02 of the NYSE Listed Company Manual and Rule

10A-3

under the Exchange Act. The audit committee must be directly responsible for the appointment, compensation, retention and oversight of the work of the independent registered public accountants. Our audit committee performs the roles and responsibilities required of an audit committee under the Sarbanes-Oxley Act, including the supervision of the audit by the independent registered public accountants. Under the Korea Exchange listing rules and the Korean Commercial Act, a large listed company must also establish an audit committee of which at least

two-thirds

of its members must be

non-standing

directors and whose chairperson must be a

non-standing

director. Under the Act on the Management of Public Institutions, the Korean Commercial Act, the amended Articles of Incorporation and the Korea Exchange listing rules, we are required to maintain an audit committee consisting of three members, of which not less than two members are required to be

non-standing

directors. In addition, pursuant to certain amendments to the Act on the Management

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of Public Institutions that became effective as of January 1, 2021, in appointing the standing member of the audit committee, the director nomination committee shall recommend the person who is qualified in any of the followings: (i) a person who is qualified as a certified public accountant or an attorney and has a minimum of three years of experience in work related to such qualification, (ii) a person who has served as an assistant professor or at a higher position for at least three years in areas directly related to audit, investigation and judicial affairs, budget and accounting, investigation, planning and evaluation, etc. (hereinafter referred to as “audit related works”) at a school under subparagraphs 1 through 5 of Article 2 of the Higher Education Act), (iii) a person who has been in charge of audit-related works for at least three years at a public institution, stock-listed corporation or research institute under Article 9(15)3 of the Financial Investment Services and Capital Markets Act and has experience prescribed by Presidential Decree, (iv) person who has been in charge of audit-related works for at least three years at the state or a local government and has served as a public official at the level prescribed by Presidential Decree, or (v) person with other expertise in accordance with the affairs of the relevant institution and qualified as prescribed by Presidential Decree.

Our audit committee is in compliance with the foregoing requirements under the Act on the Management of Public Institutions, the Korean Commercial Act, the amended Articles of Incorporation and the Korea Exchange listing rules.

On April 2, 2021, we amended our Articles of Incorporation to incorporate an amendment to the Commercial Act implemented on December 29, 2020, which requires at least one director who will serve as a member of the audit committee to be appointed separately from other directors at the meeting of shareholders. Our amended Articles of Incorporation requires all three directors who will serve as a member of the audit committee to be appointed separately from other directors at the meeting of shareholders.

Nomination/Corporate Governance Committee

Under the NYSE listing rules, U.S. companies listed on the NYSE must have a nomination/corporate governance committee composed entirely of independent directors. In addition to identifying individuals qualified to become board members, this committee must develop and recommend to the board a set of corporate governance principles. Under the Act on the Management of Public Institutions, we are required to have a director nomination committee which consists of

non-standing

directors and ad hoc members appointed by our board of directors. Our standing directors and executives as well as governmental officials that are not part of the teaching staff in national and public schools are ineligible to become a member of our director nomination committee. There is no requirement to establish a corporate governance committee under applicable Korean law.

Pursuant to the NYSE listing standards,

non-management

directors must meet on a regular basis without management present and independent directors must meet separately at least once per year. No such requirement currently exists under applicable Korean law.

Compensation Committee

Under the NYSE listing rules, U.S. companies listed on the NYSE are required to have a compensation committee which is composed entirely of independent directors. In January 2013, the SEC approved amendments to the listing rules of NYSE and NASDAQ regarding the independence of compensation committee members and the appointment, payment and oversight of compensation consultants. The listing rules were adopted as required by Section 952 of the Dodd-Frank Act and rule

10C-1

of the Exchange Act, which direct the national securities exchanges to prohibit the listing of any equity security of a company that is not in compliance with the rule’s compensation committee director and advisor independence requirements. Certain elements of the listing rules became effective on July 1, 2013 and companies listed on the NYSE must comply with such listing rules by the earlier of the company’s first annual meeting after January 15 or October 31, 2014.

No such requirement currently exists under applicable Korean law or listing standards, and we currently do not have a compensation committee.

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Corporate Governance Guidelines and Code of Business Conduct and Ethics

Under the NYSE listing rules, U.S. companies listed on the NYSE are required to establish corporate governance guidelines and to adopt a code of business conduct and ethics for directors, officers and employees, and promptly disclose any waivers of the code for directors or executive officers. As a foreign private issuer, we are exempt from this requirement. Pursuant to the requirements of the Sarbanes-Oxley Act, we have adopted a code of ethics applicable to our President & Chief Executive Officer and all other directors and executive officers including the Chief Financial Officer and the Chief Accounting Officer, as well as all financial, accounting and other officers that are involved in the preparation and disclosure of our consolidated financial statements and internal control of financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act. We have also adopted an insider reporting system in compliance with Section 301 of the Sarbanes-Oxley Act. The code of ethics applicable to our executive officers and financial officers are available on

www.kepco.co.kr

.

Shareholder Approval of Equity Compensation Plans

Under the NYSE listing rules, shareholders of U.S. companies listed on the NYSE are required to approve all equity compensation plans. Under Korean law and regulations, stock options can be granted to employees to the extent expressly permitted by the articles of incorporation. We currently do not have any equity compensation plans.

Annual Certification of Compliance

Under the NYSE listing rules, a chief executive officer of a U.S. company listed on the NYSE must annually certify that he or she is not aware of any violation by the company of NYSE corporate governance standards. As a foreign private issuer, we are not subject to this requirement. However, in accordance with rules applicable to both U.S. companies and foreign private issuers, we are required to promptly notify the NYSE in writing if any executive officer becomes aware of any material noncompliance with the NYSE corporate governance standards applicable to us. In addition, foreign private issuers, including us, are required to submit to the NYSE an annual written affirmation relating to compliance with Sections 303A.06 and 303A.11 of the NYSE listed company manual, which are the NYSE corporate governance standards applicable to foreign private issuers. All written affirmations must be executed in the form provided by the NYSE, without modification. An annual written affirmation is required to be submitted to the NYSE within 30 days of filing with the SEC our annual report on Form

20-F.

We have been in compliance with this requirement in all material respects and plan to submit such affirmation within the prescribed time line.

Whistle Blower Protection

On May 25, 2011, the SEC adopted final rules to implement whistleblower provisions of the Dodd-Frank Act, which are applicable to foreign private issuers with securities registered under the U.S. securities laws. The final rules provide that any eligible whistleblower who voluntarily provides the SEC with original information that leads to the successful enforcement of an action brought by the SEC under U.S. securities laws must receive an award of between 10 and 30 percent of the total monetary sanctions collected if the sanctions exceed US$1,000,000. An eligible whistleblower is defined as someone who provides information about a possible violation of the securities laws that he or she reasonably believes has occurred, is ongoing, or is about to occur. The possible violation does not need to be material, probably or even likely, but the information must have a “facially plausible relationship to some securities law violation”; frivolous submissions would not qualify. The final rules also prohibit retaliation against the whistleblower. While the final rules do not require employees to first report allegations of wrongdoing through a company’s corporate compliance system, they do seek to incentivize whistleblowers to utilize internal corporate compliance first by, among other things, (i) giving employees who first report information internally the benefit of the internal reporting date for purposes of the SEC program so long as the whistleblower submits the same information to the SEC within 120 days of the initial disclosure; (ii) clarifying that the SEC will consider, as part of the criteria for determining the amount of a

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whistleblower’s award, whether the whistleblower effectively utilized the company’s corporate compliance program or hindered the function of the program; and (iii) crediting a whistleblower who reports internally first and whose company passes the information along to the SEC, which would mean the whistleblower could receive a potentially higher award for information gathered in an internal investigation initiated as a result of the whistleblower’s internal report.

In addition, the final rules address concerns that the whistleblower rules incentivize officers, directors and those with legal, audit, compliance or similar responsibilities to abuse these positions by making whistleblower complaints to the SEC with respect to information they obtained in these roles by generally providing that information obtained through a communication subject to attorney-client privilege or as a result of legal representation would not be eligible for a whistleblower award unless disclosure would be permitted by attorney conduct rules. Accordingly, officers and directors, auditors and compliance personnel and other persons in similar roles would not be eligible to receive awards for information received in these positions unless (x) they have a reasonable basis to believe that (1) disclosure of the information is necessary to prevent the entity from engaging in conduct that is likely to cause substantial injury to the financial interests of the entity or investors; or (2) the entity is engaging in conduct that will impede an investigation of the misconduct, for example, destroying documents or improperly influencing witnesses; or (y) 120 days have passed since the whistleblower provided the information to senior responsible persons at the entity or 120 days have passed since the whistleblower received the information at a time when these people were already aware of the information.

In Korea, under the Financial Investment Services and Capital Markets Act, anyone may provide or furnish the Financial Services Commission or the Securities and Futures Commission with information on unfair trading or any other violation of the Financial Investment Services and Capital Markets Act. The Financial Services Commission shall keep the identity of the whistleblower confidential, and any institution, organization or company to which the whistleblower belongs may not treat the whistleblower unfavorably, directly or indirectly. In addition, the Financial Services Commission may also reward the whistleblower within the limit of the budget of the Financial Services Commission.

ITEM 16H. MINE SAFETY DISCLOSURE

Not applicable.

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

170

PART III

ITEM 17. FINANCIAL STATEMENTS

We have responded to Item 18 in lieu of responding to this item.

ITEM 18. FINANCIAL STATEMENTS

Reference is made to Item 19(a). “Exhibits” for a list of all financial statements filed as part of this annual report.

ITEM 19. EXHIBITS

(a) Exhibits filed as part of this Annual Report

See Index of Exhibits beginning on page 172 of this annual report.

(b) Financial Statements filed as part of this Annual Report

See Index to Financial Statements on page

F-1

of this annual report.

171

INDEX OF EXHIBITS

1.1	Articles of Incorporation, as amended on April 2, 2021 (in English)*
2.1	Form of Deposit Agreement**
8.1	List of Subsidiaries
12.1	Certifications of our Chief Executive Officer required by Rule 13a-14(a) of the Exchange Act (Certifications under Section 302 of the Sarbanes-Oxley Act of 2002)
12.2	Certifications of our Chief Financial Officer required by Rule 13a-14(a) of the Exchange Act (Certifications under Section 302 of the Sarbanes-Oxley Act of 2002)
13.1	Certifications of our Chief Executive Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of the United States Code (18 U.S.C. 1350) (Certifications under Section 906 of the Sarbanes-Oxley Act of 2002)
13.2	Certifications of our Chief Financial Officer required by Rule 13a-14(b) and Section 1350 of Chapter 63 of the United States Code (18 U.S.C. 1350) (Certifications under Section 906 of the Sarbanes-Oxley Act of 2002)
15.1	The Korea Electric Power Corporation Act, as amended on March 21, 2017 (in English)***
15.2	Enforcement Decree of the Korea Electric Power Corporation Act, as amended on January 5, 2021 (in English)*
15.3	The Act on the Management of Public Institutions, as amended on March 31, 2020 (in English)*
15.4	Enforcement Decree of the Act on the Management of Public Institutions, as amended on February 17, 2022 (in English)
101.INS	Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	The cover page for the Company’s Annual Report on Form 20-F for the year ended December 31, 2021, has been formatted in Inline XBRL

* Incorporated by reference to the Registrant’s annual report on Form 20-F (No. 001-13372) previously filed on April 30, 2021.

** Incorporated by reference to the Registrant’s Registration Statement on Form F-6 with respect to the ADSs, registered under Registration No. 333-196703.

*** Incorporated by reference to the Registrant’s annual report on Form 20-F (No. 001-13372) previously filed on April 30, 2019.

172

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form

20-F

and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.

KOREA ELECTRIC POWER CORPORATION
By:	/s/ Cheong, Seung-Il
Name:	Cheong, Seung-Il
Title:	President and Chief Executive Officer
Date:	April 29, 2022

173

INDEX TO FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm (Ernst & Young Han Young; PCAOB ID No. 1437) on Consolidated Financial Statements (as of December 31, 2020 and 2021 and for each of the three years in the period ended December 31, 2021)		F-2
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting		F-4
Consolidated Statements of Financial Position as of December 31, 2020 and 2021		F-5
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2019, 2020 and 2021		F-7
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2019, 2020 and 2021		F-9
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2020 and 2021		F-12
Notes to the Consolidated Financial Statements		F-14

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON CONSOLIDATED FINANCIAL STATEMENTS

To the Shareholders and Board of Directors of

Korea Electric Power Corporation

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Korea Electric Power Corporation and subsidiaries (the “Company”) as of December 31, 2020 and 2021, the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2021, and the related notes (collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated April 2

9

, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment of property, plant and equipment in electricity transmission and distribution business

Description of the Matter

As described in note 18 to the consolidated financial statements, the aggregate carrying value of the Company’s property, plant and equipment (“PP&E”) as of December 31, 2021 is KRW 173,119,781 million, and no impairment charge was recognized during the year ended December 31, 2021. Since the Company was operating at a loss during the year, the Company evaluated its cash-generating unit (“CGU”) in its electricity transmission and distribution business for recoverability by comparing the carrying amount of the CGU with its value-in-use (“VIU”) amount measured using the discounted cash flow model and concluded that the CGU was fully recoverable as of December 31, 2021. Auditing the Company’s impairment assessment involved subjective judgment and required the involvement of specialists because, in preparing the VIU estimate, management uses estimates in the discounted cash flow model that include, among others, assumptions about future sales volumes, unit sales prices, cost of power

F-2

purchases, and discount rates, that are inherently uncertain. Further, the carrying amount of PP&E to the consolidated financial statements is material and as such these assumptions have a significant effect on the outcome of the impairment assessment.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness, of controls over the Company’s processes in determining the VIU of the CGU. This included our evaluation of management review controls over significant assumptions (i.e., future sales volumes, unit sales prices, cost of power purchases, and discount rates) used to develop the discounted cash flow forecasts. Our testing of the Company’s impairment calculation included, among other procedures, evaluating the discounted cash flow model used by the Company by involving our valuation specialists to assist in testing the significant assumptions used to develop the cash flow forecasts and testing the completeness and accuracy of the underlying data. We assessed the accuracy of the Company’s historical projections by comparing them with actual operating results, evaluated management’s methodology for determining the discount rate used to calculate the present value of the forecasted cash flows by comparing it against our own calculated rate using both market and entity-specific information, searched for and evaluated information that corroborates or contradicts the Company’s assumptions, and performed sensitivity analyses of significant assumptions to evaluate the changes in the VIU estimate that could result from changes in the assumptions. Furthermore, we considered the Company’s business plan and external market data for major unobservable inputs such as future sales volumes, unit sales prices and cost of power purchases, that were used in estimating the VIU. For example, we compared these significant assumptions to current industry practice, market and economic trends, historical results of the Company’s business and other relevant factors.

/s/ Ernst & Young Han Young

We have served as the Company’s auditor since 2018.

Seoul, the Republic of Korea

April 2

9

, 2022

F-3

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

ON INTERNAL CONTROL OVER FINANCIAL REPORTING

To the Shareholders and Board of Directors of Korea Electric Power Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Korea Electric Power Corporation and subsidiaries (the “Company”)’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2020 and 2021, the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for each of the three years in the period ended December 31, 2021, and the related notes (collectively, the “consolidated financial statements”), and our report dated April 2

9

, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young Han Young

Seoul, the Republic of Korea

April 2

9

, 2022

F-4

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2020 and 2021

	Note			2020		2021
				In millions of won
Assets
Current assets
Cash and cash equivalents		5,6,7,45	￦		2,029,584		2,635,238
Current financial assets, net		5,6,9,11,12,13,45,47			2,800,220		1,868,796
Trade and other receivables, net		5,8,20,24,45,46,47			7,918,470		8,122,415
Inventories, net		14			6,742,909		7,608,182
Income tax receivables		41			49,675		41,344
Current non-financial assets		15			1,020,158		1,758,991
Assets held-for-sale		16,42			925		15,879
Total current assets					20,561,941		22,050,845
Non-current assets
Non-current financial assets, net		5,6,9,10,11,12,13,45,47			2,472,821		2,909,810
Non-current trade and other receivables, net		5,8,20,45,46,47			1,861,569		1,906,861
Property, plant and equipment, net		18,24,27,49			168,709,387		173,119,781
Investment properties, net		19,27			225,195		212,784
Goodwill		16,51			98,166		105,647
Intangible assets other than goodwill, net		21,27,46			1,055,730		1,044,077
Investments in associates		4,17			4,250,787		5,232,373
Investments in joint ventures		4,17			1,919,746		2,239,011
Defined benefit assets, net		25			7,231		20,871
Deferred tax assets		41			1,733,146		1,901,992
Non-current non-financial assets		15			246,392		364,818
Total non-current assets					182,580,170		189,058,025
Total Assets		4	￦		203,142,111		211,108,870

(Continued)    

F-5

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position, Continued

As of December 31, 2020 and 2021

	Note			2020			2021
				In millions of won
Liabilities
Current liabilities
Trade and other payables, net		5,22,24,45,47	￦		6,256,521			8,153,426
Current financial liabilities, net		5,12,23,45,47			10,724,689			14,037,125
Income tax payables		41			476,898			229,460
Current non-financial liabilities		20,28,29			5,971,450			6,466,333
Current provisions		26,45			2,451,664			2,845,876
Total current liabilities					25,881,222			31,732,220
Non-current liabilities
Non-current trade and other payables, net		5,22,24,45,47			6,480,412			5,996,498
Non-current financial liabilities, net		5,12,23,45,47			59,365,011			66,570,419
Non-current non-financial liabilities		28,29			9,661,941			10,216,364
Employee benefits liabilities, net		25,45			1,910,860			1,679,158
Deferred tax liabilities		41			9,100,247			7,100,938
Non-current provisions		26,45			20,075,572			22,501,424
Total non-current liabilities					106,594,043			114,064,801
Total Liabilities		4	￦		132,475,265			145,797,021
Equity
Contributed capital		1,30,45
Share capital			￦		3,209,820			3,209,820
Share premium					843,758			843,758
					4,053,578			4,053,578
Retained earnings		31
Legal reserves					1,604,910			1,604,910
Voluntary reserves					32,179,066			33,282,817
Unappropriated retained earnings					17,349,625			10,359,255
					51,133,601			45,246,982
Other components of equity		34
Other capital surplus					1,224,105			1,231,109
Accumulated other comprehensive loss					(409,577	)		(57,632	)
Other equity					13,294,973			13,294,973
					14,109,501			14,468,450
Equity attributable to owners of the controlling company					69,296,680			63,769,010
Non-controlling interests		16,33			1,370,166			1,542,839
Total Equity			￦		70,666,846			65,311,849
Total Liabilities and Equity			￦		203,142,111			211,108,870

See accompanying notes to the consolidated financial statements.

F-6

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2019, 2020 and 2021

	Note			2019			2020			2021
				In millions of won, except per share information
Sales		4,35,45,47
Sales of goods			￦		56,894,876			56,684,312			58,702,209
Sales of construction services		20			1,264,916			812,175			754,998
Sales of services					408,290			429,350			456,400
					58,568,082			57,925,837			59,913,607
Cost of sales		14,25,43,47
Cost of sales of goods					(55,750,468	)		(50,353,315	)		(62,079,313	)
Cost of sales of construction services					(998,766	)		(1,009,430	)		(898,963	)
Cost of sales of services					(1,030,601	)		(441,851	)		(580,902	)
					(57,779,835	)		(51,804,596	)		(63,559,178	)
Gross profit (loss)					788,247			6,121,241			(3,645,571	)
Selling and administrative expenses		25,36,43,47			(2,669,576	)		(2,678,443	)		(2,875,784	)
Other income		28,37			997,973			1,036,448			1,034,133
Other expenses		37			(241,913	)		(417,720	)		(257,932	)
Other gains (losses), net		38			(582,258	)		35,094			8,519
Operating profit (loss)		4			(1,707,527	)		4,096,620			(5,736,635	)
Finance income		5,12,39			1,009,706			1,510,249			1,402,614
Finance expenses		5,12,40			(2,782,156	)		(2,896,443	)		(3,245,777	)
Profit (loss) related to associates, joint ventures and subsidiaries		4,16,17
Share in profit of associates and joint ventures					257,673			398,972			775,588
Gain on disposal of investments in associates and joint ventures					70,094			10,165			1,844
Share in loss of associates and joint ventures					(90,853	)		(119,848	)		(218,532	)
Loss on disposal of investments in associates and joint ventures					(2	)		(16	)		(64,119	)
Impairment loss on investments in associates and joint ventures					(22,517	)		(1,556	)		0
Loss on disposal of investments in subsidiaries					(256	)		(6,610	)		(197	)
					214,139			281,107			494,584
Profit (loss) before income tax					(3,265,838	)		2,991,533			(7,085,214	)
Income tax benefit (expense)		41			1,002,303			(899,064	)		1,855,989
Profit (loss) for the year			￦		(2,263,535	)		2,092,469			(5,229,225	)

(Continued)

F-7

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss), Continued

For the years ended December 31, 2019, 2020 and 2021

	Note			2019			2020			2021
				In millions of won, except per share information
Other comprehensive income (loss), net of tax		5,12,25,31,34
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability		25,31	￦		42,315			(69,804	)		210,409
Share in other comprehensive income (loss) of associates and joint ventures		31			(6,789	)		3,181			3,609
Net change in fair value of financial assets at fair value through other comprehensive income		34			(11,732	)		(8,532	)		59,024
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		5,12,34			19,242			64,561			(15,778	)
Foreign currency translation of foreign operations		34			72,816			(76,442	)		41,189
Share in other comprehensive income (loss) of associates and joint ventures		34			19,344			(132,805	)		301,161
Other comprehensive income (loss) for the year					135,196			(219,841	)		599,614
Total comprehensive income (loss) for the year			￦		(2,128,339	)		1,872,628			(4,629,611	)
Profit (loss) attributable to:
Owners of the controlling company		44	￦		(2,345,517	)		1,991,347			(5,315,055	)
Non-controlling interests					81,982			101,122			85,830
			￦		(2,263,535	)		2,092,469			(5,229,225	)
Total comprehensive income (loss) attributable to:
Owners of the controlling company			￦		(2,239,147	)		1,802,824			(4,754,046	)
Non-controlling interests					110,808			69,804			124,435
			￦		(2,128,339	)		1,872,628			(4,629,611	)
Earnings (loss) per share (in won)		44
Basic and diluted earnings (loss) per share			￦		(3,654	)		3,102			(8,279	)

See accompanying notes to the consolidated financial statements.

F-8

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2019, 2020 and 2021

		Equity attributable to owners of the controlling company											Non- controlling interests
		Contributed capital		Retained earnings			Other components of equity			Subtotal						Total equity
		In millions of won
Balance at January 1, 2019	￦		4,053,578		51,519,119			14,171,228			69,743,925			1,348,837			71,092,762
Total comprehensive income (loss) for the year
Profit (loss) for the year			0		(2,345,517	)		0			(2,345,517	)		81,982			(2,263,535	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			0		36,160			0			36,160			6,155			42,315
Share in other comprehensive loss of associates and joint ventures, net of tax			0		(6,789	)		0			(6,789	)		0			(6,789	)
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			0		0			(11,732	)		(11,732	)		0			(11,732	)
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			0		0			14,041			14,041			5,201			19,242
Foreign currency translation of foreign operations, net of tax			0		0			55,347			55,347			17,469			72,816
Share in other comprehensive income of associates and joint ventures, net of tax			0		0			19,343			19,343			1			19,344
Transactions with owners of the Company, recognized directly in equity
Dividends paid			0		0			0			0			(99,255	)		(99,255	)
Issuance of shares of capital by subsidiaries and others			0		0			0			0			21,071			21,071
Transactions between consolidated entities			0		0			(8,460	)		(8,460	)		323			(8,137	)
Changes in consolidation scope			0		0			0			0			24,932			24,932
Dividends paid (hybrid bond)			0		0			0			0			(13,385	)		(13,385	)
Others			0		(840	)		840			0			0			0
Balance at December 31, 2019	￦		4,053,578		49,202,133			14,240,607			67,496,318			1,393,331			68,889,649

(Continued)

F-9

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2019, 2020 and 2021

		Equity attributable to owners of the controlling company											Non- controlling interests
		Contributed capital		Retained earnings			Other components of equity			Subtotal						Total equity
		In millions of won
Balance at January 1, 2020	￦		4,053,578		49,202,133			14,240,607			67,496,318			1,393,331			68,889,649
Total comprehensive income (loss) for the year
Profit for the year			0		1,991,347			0			1,991,347			101,122			2,092,469
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			0		(62,857	)		0			(62,857	)		(6,947	)		(69,804	)
Share in other comprehensive income of associates and joint ventures, net of tax			0		3,181			0			3,181			0			3,181
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			0		0			(8,533	)		(8,533	)		1			(8,532	)
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			0		0			58,523			58,523			6,038			64,561
Foreign currency translation of foreign operations, net of tax			0		0			(46,032	)		(46,032	)		(30,410	)		(76,442	)
Share in other comprehensive loss of associates and joint ventures, net of tax			0		0			(132,805	)		(132,805	)		0			(132,805	)
Transactions with owners of the Company, recognized directly in equity
Dividends paid			0		0			0			0			(81,011	)		(81,011	)
Issuance of shares of capital by subsidiaries and others			0		0			(148	)		(148	)		(5,297	)		(5,445	)
Transactions between consolidated entities			0		(203	)		(2,111	)		(2,314	)		1,040			(1,274	)
Changes in consolidation scope			0		0			0			0			5,684			5,684
Dividends paid (hybrid bond)			0		0			0			0			(13,385	)		(13,385	)
Balance at December 31, 2020	￦		4,053,578		51,133,601			14,109,501			69,296,680			1,370,166			70,666,846

(Continued)

F-10

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2019, 2020 and 2021

		Equity attributable to owners of the controlling company											Non- controlling interests			Total equity
		Contributed capital		Retained earnings			Other components of equity			Subtotal
		In millions of won
Balance at January 1, 2021	￦		4,053,578		51,133,601			14,109,501			69,296,680			1,370,166			70,666,846
Total comprehensive income (loss) for the year
Profit (loss) for the year			0		(5,315,055	)		0			(5,315,055	)		85,830			(5,229,225	)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax			—		201,067			0			201,067			9,342			210,409
Share in other comprehensive income of associates and joint ventures, net of tax			0		3,609			0			3,609			0			3,609
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			0		0			59,022			59,022			2			59,024
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			0		0			(19,610	)		(19,610	)		3,832			(15,778	)
Foreign currency translation of foreign operations, net of tax			0		0			15,760			15,760			25,429			41,189
Share in other comprehensive loss of associates and joint ventures, net of tax			0		0			301,161			301,161			0			301,161
Transactions with owners of the Company, recognized directly in equity
Dividends paid			0		(780,628	)		0			(780,628	)		(31,516	)		(812,144	)
Issuance of shares of capital by subsidiaries and others			0		0			(491	)		(491	)		75,702			75,211
Transactions between consolidated entities			0		0			7,452			7,452			(42,199	)		(34,747	)
Changes in consolidation scope			0		0			43			43			59,636			59,679
Dividends paid (hybrid bond)			0		0			0			0			(13,385	)		(13,385	)
Others			0		4,388			(4,388	)		0			0			0
Balance at December 31, 2021	￦		4,053,578		45,246,982			14,468,450			63,769,010			1,542,839			65,311,849

See accompanying notes to the consolidated financial statements.

F-11

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2019, 2020 and 2021

		2019			2020			2021
		In millions of won
Cash flows from operating activities
Profit (loss) for the year	￦		(2,263,535	)		2,092,469			(5,229,225	)
Adjustments to reconcile profit (loss) for the year to net cash provided by operating activities:
Income tax expense (benefit)			(1,002,303	)		899,064			(1,855,989	)
Depreciation			10,971,825			11,377,553			11,772,111
Amortization			156,915			170,466			166,161
Employee benefit expense			725,120			492,288			511,942
Bad debt expense			16,629			50,686			67,242
Interest expense			2,046,811			1,995,425			1,914,457
Loss on disposal of financial assets			2,106			648			1,045
Loss on disposal of property, plant and equipment			72,508			162,725			92,622
Loss on abandonment of property, plant and equipment			364,233			255,346			207,934
Loss on impairment of property, plant and equipment			50,034			80,413			4,056
Loss on impairment of intangible assets			513,609			3,599			0
Loss on disposal of intangible assets			827			392			145
Increase in provisions			2,301,215			1,832,765			2,466,452
Loss (gain) on foreign currency translation, net			370,309			(782,167	)		997,119
Gain on valuation of financial assets at fair value through profit or loss			(5,575	)		(12,904	)		(14,338	)
Loss on valuation of financial assets at fair value through profit or loss			4,513			7,396			5,480
Valuation and transaction loss (gain) on derivative instruments, net			(403,765	)		390,322			(907,076	)
Share in profit of associates and joint ventures, net			(166,820	)		(279,124	)		(557,056	)
Gain on disposal of financial assets			(3,866	)		(11,992	)		(7,718	)
Reversal of impairment loss on intangible assets			0			0			(14	)
Gain on disposal of property, plant and equipment			(43,784	)		(93,195	)		(56,284	)
Gain on disposal of intangible assets			(206	)		(1,556	)		(1	)
Gain on disposal of investments in associates and joint ventures			(70,094	)		(10,165	)		(1,844	)
Loss on disposal of investments in associates and joint ventures			2			16			64,119
Impairment loss on investments in associates and joint ventures			22,517			1,556			0
Loss on disposal of investments in subsidiaries			256			6,610			197
Interest income			(268,118	)		(242,586	)		(221,874	)
Dividend income			(13,838	)		(7,316	)		(10,522	)
Others, net			128,237			30,411			(169,856	)
			15,769,297			16,316,676			14,468,510
Changes in working capital:
Trade receivables			95,345			(107,639	)		(216,734	)
Non-trade receivables			64,027			459,524			869,870
Accrued income			83,589			(258,963	)		(17,918	)
Other receivables			(116,583	)		(32,536	)		24,306
Other current assets			(271,986	)		(462,125	)		(569,732	)
Inventories			(980,216	)		(723,495	)		(1,738,000	)
Other non-current assets			(611,066	)		(140,017	)		(3,462	)
Trade payables			(546,159	)		(262,985	)		2,144,561
Non-trade payables			192,506			(363,260	)		(571,051	)
Accrued expenses			(454,501	)		(222,113	)		(456,992	)
Other current liabilities			373,403			388,163			379,378
Other non-current liabilities			650,468			755,005			458,007
Investments in associates and joint ventures (dividends received)			215,612			237,695			288,242
Provisions			(1,473,461	)		(1,499,436	)		(2,426,017	)
Payments of employee benefit obligations			(65,242	)		(74,848	)		(159,477	)
Plan assets			(348,386	)		(582,275	)		(317,707	)
	￦		(3,192,650	)	��	(2,889,305	)		(2,312,726	)

(Continued)

F-12

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows, Continued

For the years ended December 31, 2019, 2020 and 2021

		2019			2020			2021
		In millions of won
Cash generated from operating activities	￦		10,313,112			15,519,840			6,926,559
Dividends received (financial assets at fair value through other comprehensive income)			24,255			7,316			10,522
Interest paid			(2,027,850	)		(2,081,663	)		(1,928,160	)
Interest received			186,122			215,183			201,022
Income taxes paid			(282,211	)		(452,203	)		(736,757	)
Net cash provided by operating activities			8,213,428			13,208,473			4,473,186
Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			0			5,444			4,472
Acquisition of investments in associates and joint ventures			(107,821	)		(342,116	)		(673,017	)
Proceeds from disposals of property, plant and equipment			522,742			331,777			277,998
Acquisition of property, plant and equipment			(14,000,359	)		(13,281,294	)		(12,668,534	)
Proceeds from disposals of intangible assets			7,702			10,871			59
Acquisition of intangible assets			(229,426	)		(120,371	)		(113,100	)
Proceeds from disposals of financial assets			2,783,474			8,020,406			7,023,674
Acquisition of financial assets			(2,165,342	)		(9,203,450	)		(5,893,404	)
Increase in loans			(335,773	)		(336,744	)		(223,950	)
Collection of loans			292,745			215,292			218,704
Increase in deposits			(280,637	)		(276,255	)		(222,924	)
Decrease in deposits			275,314			280,941			166,066
Proceeds from disposals of assets held-for-sale			30,662			32,578			1,148
Receipt of government grants			21,705			41,209			37,920
Cash outflow from merger			(154,311	)		0			0
Net cash outflow from changes in consolidation scope			(2,917	)		(24,624	)		(63,492	)
Other cash outflow from investing activities, net			(157,116	)		(185,475	)		(225,948	)
Net cash used in investing activities			(13,499,358	)		(14,831,811	)		(12,354,328	)
Cash flows from financing activities
Proceeds from short-term borrowings, net			188,957			345,338			1,621,440
Proceeds from long-term borrowings and debt securities			13,221,407			10,170,107			17,392,311
Repayment of long-term borrowings and debt securities			(7,068,290	)		(7,976,658	)		(9,360,357	)
Payment of lease liabilities			(573,437	)		(613,977	)		(572,036	)
Settlement of derivative instruments, net			102,146			42,263			98,068
Change in non-controlling interests			17,365			11,554			90,096
Dividends paid (hybrid bond)			(13,385	)		(13,385	)		(13,385	)
Dividends paid			(99,356	)		(81,298	)		(812,159	)
Other cash outflow from financing activities, net			0			(3,120	)		(8,901	)
Net cash provided by financing activities			5,775,407			1,880,824			8,435,077
Net increase in cash and cash equivalents before effect of exchange rate fluctuations			489,477			257,486			553,935
Effect of exchange rate fluctuations on cash held			(37,693	)		(38,031	)		51,719
Net increase in cash and cash equivalents			451,784			219,455			605,654
Cash and cash equivalents at January 1			1,358,345			1,810,129			2,029,584
Cash and cash equivalents at December 31	￦		1,810,129			2,029,584			2,635,238

See accompanying notes to the consolidated financial statements.

F-13

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

December 31, 2020 and 2021

1. Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”) was incorporated on December 31, 1981 in accordance with the

Korea Electric Power Corporation

Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO also provides power plant construction services. KEPCO’s stock was first listed on the Korea Stock Exchange on August 10, 1989 and subsequently on the New York Stock Exchange on October 27, 1994 through its depository receipts. KEPCO’s headquarters is located in Naju-si, Jeollanam-do.

As of December 31, 2021, KEPCO’s share capital amounts to

W

3,209,820 million and KEPCO’s shareholders are as

follows:

	Number of shares		Percentage of ownership
The Government of the Republic of Korea		116,841,794		18.20	%
Korea Development Bank  (KDB)		211,235,264		32.90	%
Foreign investors		91,105,897		14.19	%
Other		222,781,122		34.71	%
		641,964,077		100.00	%

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

2. Basis of Preparation

The consolidated financial statements of KEPCO and its subsidiaries (the “Company”) were approved by the Board of Directors of KEPCO on February 24, 2022 and authorized on April 22, 2022 for the purpose of Form

20-F

filing with the Securities and Exchange Commission.

(1) Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

(2) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis, except for the following material items in the consolidated statements of financial position:

• financial assets at fair value through profit or loss

• financial assets at fair value through other comprehensive income

• derivative financial instruments are measured at fair value

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

(3) Functional and presentation currency

These consolidated financial statements are presented in Korean won (presented as “won” or “KRW”), which is also the functional currency of KEPCO and most of the significant operating subsidiaries.

(4) Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

F-14

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The followings are the key assumptions and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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

The Company reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. Management’s assumptions could affect the determination of estimated economic useful lives.

The Company records the fair value of estimated decommissioning costs as a liability in the period in which the Company incurs a legal obligation associated with the retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. The Company is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.

(ii) Deferred tax

The Company recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities of each consolidated taxpaying entity. However, the amount of deferred tax assets may be different if the Company determines the estimated future taxable income is not sufficient to realize the deferred tax assets recognized.

(iii) Valuations of financial instruments at fair values

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and

non-financial

assets and liabilities. The Company has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(iv) Defined employee benefit liabilities

The Company offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).

F-15

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

(v) Unbilled revenue

Electricity delivered but neither metered nor billed is estimated at the reporting date based on the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, and etc. Unbilled revenue recognized as of December 31, 2020 and 2021 are ￦1,691,294 million and ￦1,725,444 million, respectively.

(vi) Construction contracts

The Company recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Company’s progress towards complete satisfaction of providing the power plant construction, which has been identified as a single performance obligation. In applying the cost-based input method, it is necessary to use estimates and assumptions related to the Company’s efforts or inputs expected to be incurred. Costs incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however, it can also be affected by uncertainties resulting from unexpected future events.

(vii) Early shutdown of the Wolsong Unit 1 nuclear power plant and changes in new nuclear power plants construction

The

30-year

design life of the Wolsong Unit 1 nuclear power plant of the Company expired on November 20, 2012. On February 27, 2015, however, approval from the Nuclear Safety and Security Commission (NSSC) was received to continue its operation until November 20, 2022.

According to the Eighth Basic Plan for Electricity Supply and Demand announced by the Ministry of Trade, Industry and Energy in 2017, the Wolsong Unit 1 nuclear power plant was expected to go through a comprehensive evaluation for the feasibility of continuous operation including economic efficiency and acceptability of household and community in 2018 in order to decide whether to shut down early. On June 15, 2018, the board of directors of Korea Hydro & Nuclear Power Co., Ltd. (“KHNP”), a subsidiary of KEPCO, decided to shut down the Wolsong Unit 1 on the grounds that its deficit was increasing and its economic efficiency was low due to the nonoptimal utilization rate. On December 24, 2019, the NSSC approved permanent shutdown of the Wolsong Unit 1.

In addition, the Company has also decided to discontinue the construction of the Cheonji Unit 1 and 2 and Daejin Unit 1 and 2 pursuant to the Korean government’s energy transformation policy. Accordingly, the Company recognized impairment loss and other expenses during the year ended December 31, 2018.

Among the new nuclear power plants under construction, the Shin-Hanwool Unit 3 and 4, for which approval for power generation business was previously obtained, are not included in the list of construction suspension as determined by the board of directors of KHNP. However, it is highly likely that the construction of the Shin-Hanwool Unit 3 and 4 will be suspended according to the government’s policy. Accordingly, the Company recognized impairment loss during the year ended December 31, 2018, as the Company believed that there was a significant change in its operating environment.

In relation to the Korean government’s nuclear phase-out plan pursuant to its energy transformation policy, the Korean government has established a legal basis and relevant procedures to make up for the Company’s losses relating to the decommissioning of the nuclear power plants to be achieved in stages.

As of December 31, 2021, there is no indication that the above-mentioned impairment has ceased to exist or reduced.

F-16

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

2. Basis of Preparation, Continued

(4) Use of estimates and judgments, continued

Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in the following notes:

✓ Note 17 – Investments in Associates and Joint Ventures

✓ Note 18 – Property, Plant and Equipment

✓ Note 20 – Construction Contracts

✓ Note 45 – Risk Management

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included in the following notes:

✓ Note 25 – Employment Benefits

✓ Note 41 – Income Taxes

(5) Changes in accounting policies

Changes in accounting standards effective from January 1, 2021 are as follows. The Company believes that these amendments have no significant impact on the Company’s consolidated financial statements. The Company has not applied the new and revised standards in issue but not yet effective for the periods starting from January 1, 2021, even though the early adoption of these standards is possible.

Amendments to IFRS 9 ’Financial Instruments’, IAS 39 ‘Financial Instruments: Recognition and Measurement’, IFRS 7 ‘Financial Instruments: Disclosures’, IFRS 4 ‘Insurance Contracts’ and IFRS 16 ‘

Leases’

—Interest Rate Benchmark Reform Phase II.

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

• A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

• Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued

• Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

F-17

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies

The accounting policies applied by the Company in these consolidated financial statements are the same as those applied by the Company in its consolidated financial statements as of and for the year ended December 31, 2020, except for the changes described in Note 2.(5).

(1) Basis of consolidation

The consolidated financial statements are the financial statements of the Company in which the assets, liabilities, equity, income, expenses and cash flows of KEPCO and its subsidiaries are presented as those of a single economic entity. Subsidiaries are those entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Income and expense of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income (loss) from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the

non-controlling

interests even if this results in the

non-controlling

interests having a deficit balance.

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

All intra-company assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities within the Company are eliminated in full on consolidation.

Changes in the Company’s ownership interests in a subsidiary that do not result in the Company losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the Company’s interests and the

non-controlling

interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the

non-controlling

interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Company.

When the Company loses control of a subsidiary, the income or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any

non-controlling

interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognized in other comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and accumulated in equity are accounted for as if the Company had directly disposed of the relevant assets (i.e., reclassified to profit or loss or transferred directly to retained earnings). The fair value of any investment retained in the former subsidiary at the date when control is lost is recognized as the fair value on initial recognition for subsequent accounting under IFRS 9 ‘Financial Instruments’ or, when applicable, the cost on initial recognition of an investment in an associate or a jointly controlled entity.

(2) Business combinations

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control.

The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred.

F-18

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(2) Business combinations, continued

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value at the acquisition date, except that:

• deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognized and measured in accordance with IAS 12 ‘Income Taxes’ and IAS 19 ‘Employee Benefits’ respectively;

• assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 ‘Non-current Assets Held for Sale’ are measured in accordance with that standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any

non-controlling

interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any

non-controlling

interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain.

Non-controlling

interest that is present on acquisition day and entitles the holder to a proportionate share of the entity’s net assets in an event of liquidation, may be initially measured either at fair value or at the

non-controlling

interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The choice of measurement can be elected on a

transaction-by-transaction

basis. Other types of

non-controlling

interests are measured at fair value or, when applicable, on the basis specified in other IFRSs.

When the consideration transferred by the Company in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date.

The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not

re-measured

at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is

re-measured

at subsequent reporting dates in accordance with IFRS 9 ‘Financial Instruments’, or with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ as appropriate, with the corresponding gain or loss being recognized in profit or loss.

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

re-measured

to fair value at the acquisition date (i.e., the date when the Company obtains control) and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest were disposed of.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date.

The assets and liabilities acquired under business combinations under common control are recognized at the carrying amounts recognized previously in the consolidated financial statements of the ultimate parent. The difference between consideration transferred and carrying amounts of net assets acquired is recognized as part of share premium.

F-19

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(3) Investments in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not control or joint control over those policies. If the Company holds 20% ~ 50% of the voting power of the investee, it is presumed that the Company has significant influence over the investee.

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. If the investment is classified as held for sale, in which case it is accounted for in accordance with IFRS 5

‘Non-current

Assets Held for Sale’, any retained portion of an investment in associates that has not been classified as held for sale shall be accounted for using the equity method until disposal of the portion that is classified as held for sale takes place. After the disposal takes place, the Company shall account for any retained interest in associates in accordance with IFRS 9 ‘Financial Instruments’ unless the retained interest continues to be an associate, in which case the entity uses the equity method.

Under the equity method, an investment in an associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. When the Company’s share of losses of an associate exceeds the Company’s interest in that associate (which includes any long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

Upon disposal of an associate that results in the Company losing significant influence over that associate, any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset in accordance with IFRS 9. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate.

In addition, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a gain or loss previously recognized in other comprehensive income by that associate would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when it loses significant influence over that associate.

The requirements of IAS 28’ Investments in Associates and Joint Ventures’ are applied to determine whether it is necessary to recognize any impairment loss with respect to the Company’s investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with IAS 36 ‘Impairment of Assets’ as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount, any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized in accordance with IAS 36 to the extent that the recoverable amount of the investment subsequently increases.

When the Company transacts with its associate, incomes and losses resulting from the transactions with the associate are recognized in the Company’s consolidated financial statements only to the extent of interests in the associate that are not related to the Company.

F-20

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(4) Joint arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Joint arrangements are classified into two types - joint operations and joint ventures. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e., joint ventures) have rights to the net assets of the arrangement.

The classification of a joint arrangement as a joint operation or a joint venture depends upon the rights and obligations of the parties to the arrangement. The Company determines the type of joint arrangement in which it is involved by considering the structure and form of the arrangement, the terms agreed by the parties in the contractual arrangement and other facts and circumstances.

If the joint arrangement is a joint operation, the Company is to recognize and measure the assets and liabilities (and recognize the related revenues and expenses) in relation to its interest in the arrangement in accordance with relevant IFRSs applicable to the particular assets, liabilities, revenues and expenses. If the joint arrangement is a joint venture, the Company is to account for that investment using the equity method accounting in accordance with IAS 28 ‘Investment in Associates and Joint Ventures’ (refer to Note 3.(3)), except when the Company is applicable to the IFRS 5

‘Non-current

Assets Held for Sale’.

(5) Non-current assets held for sale

Non-current

assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the

non-current

asset (or disposal group) is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

When the Company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Company will retain a

non-controlling

interest in its former subsidiary after the sale.

Non-current

assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

(6) Goodwill

The Company measures goodwill which acquired in a business combination at the amount recognized at the date on which it obtains control of the acquiree (acquisition date) less any accumulated impairment losses. Goodwill acquired in a business combination is allocated to each cash-generating unit (CGU) that is expected to benefit from the synergies arising from the business acquired.

The Company assesses at the end of each reporting period and whenever there is an indication that the asset may be impaired. An impairment loss is recognized if the carrying amount of an asset or a CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

Any impairment identified at the CGU level will first reduce the carrying value of goodwill and then be used to reduce the carrying amount of the other assets in the CGU on a pro rata basis. Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

On disposal of the relevant CGU, the amount of goodwill is included in the determination of the gain or loss on disposal.

F-21

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(7) Revenue from Contracts with Customers

The Company recognizes revenue by applying the five-step approach (Step 1: Identify the contract(s) with a customer, Step 2: Identify the performance obligations in the contract, Step 3: Determine the transaction price, Step 4: Allocate the transaction price to the performance obligations in the contract, Step 5: Recognize revenue when the entity satisfied a performance obligation). The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services, excluding amounts collected on behalf of third parties. Also, the Company recognizes revenue when the Company satisfies a performance obligation by transferring a promised good or service to a customer.

(i) Sale of goods

The Company sells electricity to customers and accounts for the generation, transmission and distribution of electricity together as a single performance obligation. The sale of electricity is recognized at a point in time when electricity has been distributed to the customer. The transaction price includes variable consideration due to the progressive electricity billing system, discounts on electricity bills for government policy purposes and penalties. In situations where electricity had been delivered but not yet billed, the Company also estimates the volume of electricity delivered which can vary significantly as a result of customer usage patterns, customer mix, meter reading schedules, weather, etc. Variable consideration is estimated by using the expected value method which predicts the amount of consideration to which the Company will be entitled and is recognized only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved which is when the customer is billed.

(ii) Sale of construction services

The Company provides power plant construction and EPC services which are each identified as a single performance obligation and is recognized over time on the estimated progress to completion using the cost-based input method. The Company believes using the cost-based input method represents a faithful depiction of the transfer of services to the customer. Cost incurred towards contract completion include costs associated with direct materials, labor, and other indirect costs related to contract performance. Judgment is required in estimating the costs expected to incur in completing the construction projects which involves estimating future materials, labor, contingencies and other related costs. Revenue is estimated based on the contractual amount; however it can also be affected by uncertainties resulting from unexpected future events.

Revenue may be recognized in advance of billing the customer which results in the recording of a contract asset. Once the Company meets the billing criteria and its rights to consideration become unconditional, the contract asset is then transferred to trade receivable. Billing requirements are generally structured around the completion of certain construction milestones. On some instances, contract liability is recognized when the Company receives consideration before being able to recognize revenue. Once revenue recognition conditions are met, the contract liability is subsequently released to revenue.

(iii) Sale of services

The Company develops electric power resources including the provision of power generation byproducts and O&M services which are accounted for as a separate performance obligation under each contract. The Company recognizes revenue over time when customers consume the benefits provided by the Company under the terms of the service agreement.

(iv) Adoption of the cost pass-through tariff system

The Company amended the basic supply terms and conditions with the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020. The cost pass-through tariff system has been applied to the electricity rate after January 1, 2021 in accordance with the amendment. The Company expects the adoption of the new system would not affect the existing accounting policies including ‘revenue from contracts with customers’.

F-22

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(8) Deferred Revenue

The Company receives consideration in the form of an item of property, equipment or cash for constructing or acquiring an item of property or equipment in exchange for supplying electricity to its customers. The transaction price is based on the fair value of the consideration received and is initially recorded in deferred revenue included in current and

non-current

non-financial

liabilities of the Company’s consolidated statement of financial position. The Company determines the supply of electricity to be a single performance obligation. Deferred revenue is released to other income over time on a straight-line basis throughout the estimated service period which does not exceed the transferred asset’s useful life.

(9) Leases

The lessee and the lessor account for each lease component separately from

non-lease

component, in the lease contracts or contracts that contain lease. However, the Company applied a practical expedient to each type of underlying asset in accounting as a lessee, and instead of separating the

non-lease

component from the lease component, it applied a method of accounting for each lease component and the related

non-lease

component as a single lease contract. The lessor’s accounting has not changed significantly. Therefore, a lease that transfers most of the risks and rewards of ownership of the underlying asset is classified as a finance lease, and a lease that does not transfer most of the risks and rewards of ownership of the underlying asset is classified as an operating lease.

(i) The Company as a lessor

In the case of finance leases, the Company recognizes the same amount of the net investment in the lease as finance lease receivables and recognizes interest income using the effective interest rate method. Income from operating leases is recognized using the straight-line basis over the lease term, and lease opening direct costs incurred during the negotiation and contract phase of the operating lease contract are added to the carrying amount of the lease asset and recognized as expenses over the lease term on a straight-line basis.

(ii) The Company as a lessee

(a) Right-of-use assets

The Company recognizes

right-of-use

assets at the commencement date of the lease.

Right-of-use

assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any

re-measurement

of lease liabilities. The cost of

right-of-use

assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized

right-of-use

assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.

Right-of-use

assets are subject to impairment.

(b) Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including

in-substance

fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expenses in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the

in-substance

fixed lease payments or a change in the assessment of an option to purchase the underlying asset.

F-23

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(9) Leases, continued

(c) Short-term leases and leases of low-value assets

The Company applies the short-term leases recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the leases of

low-value

assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of

low-value

assets are recognized as expense on a straight-line basis over the lease term.

Book value and changes in book value of

right-of-use

assets and lease liabilities during the period are described in Note 24.

(10) Foreign currencies

Transactions in foreign currencies are translated to the respective functional currencies of the Company entities at exchange rates at the dates of the transactions. Monetary items in foreign currencies are retranslated to the functional currency using the reporting date’s exchange rate.

Non-monetary

items that are measured at fair value in foreign currencies are retranslated to the functional currency at the exchange rate at the date that the fair value was determined, while non-monetary items that are measured in terms of historical cost in foreign currencies shall not be retranslated.

Exchange differences are recognized in profit or loss in the period in which they arise except for:

• Exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings;

• Exchange differences on transactions entered into in order to hedge certain foreign currency risks (refer to note 3.(24) Derivative financial instruments, including hedge accounting); and

• Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal or partial disposal of the net investment.

For the purpose of presenting financial statements, the assets and liabilities of the Company’s foreign operations are expressed in Korean won using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (if applicable, in

non-controlling

interests).

On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the controlling interests shall be reclassified from equity to profit or loss (as a reclassification adjustment). The cumulative amount of the exchange differences relating to that foreign operation that have been attributed to the

non-controlling

interests shall be derecognized, but shall not be reclassified to profit or loss.

On the partial disposal of a subsidiary that includes a foreign operation, the entity shall

re-attribute

the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income to the

non-controlling

interests in that foreign operation. In any other partial disposal of a foreign operation the entity shall reclassify to profit or loss only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation shall be treated as assets and liabilities of the foreign operation. Thus they shall be expressed in the functional currency of the foreign operation and shall be translated at the closing rate. Such exchange differences shall be recognized in equity.

F-24

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(11) Borrowing costs

The Company capitalizes borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized in expense as incurred. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(12) Government grants

Government grants are not recognized unless there is reasonable assurance that the Company will comply with the grant’s conditions and that the grant will be received.

Benefit from a government loan at a below-market interest rate is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates.

(i) If the Company received grants related to assets, government grants whose primary condition is that the Company purchases, constructs or otherwise acquires long-term assets are deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.

(ii) If the Company received grants related to expenses, government grants which are intended to compensate the Company for expenses incurred are recognized as other income (government grants) in profit or loss over the periods in which the Company recognizes the related costs as expenses.

(13) Employee benefits

When an employee has rendered service to the Company during a period, the Company recognizes the contribution payable to a defined contribution plan in exchange for that service as a liability (accrued expense).

For defined benefit pension plans and other post-employment benefits, the net periodic pension expense is actuarially determined by “Pension Actuarial System” developed by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. However, if there is not a deep market, market yields on government bonds are used.

Net defined benefit liability’s measurement is composed of actuarial gains and losses, return on plan assets excluding net interest on net defined benefit liability, and any change in the effect of the asset ceiling, excluding net interest, which are immediately recognized in other comprehensive income. The actuarial gains or losses recognized in other comprehensive income which will not be reclassified into net profit or loss for later periods are immediately recognized in retained earnings. Past service cost will be recognized as expenses upon the earlier of the date of change or reduction to the plan, or the date of recognizing termination benefits.

The retirement benefit obligation recognized in the consolidated statement of financial position represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses and unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

F-25

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(14) Income taxes

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

(i) Current tax

Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and

non-taxable

or

non-deductible

items from the accounting profit.

Current tax assets and liabilities are offset only if, the Company: (a) has a legally enforceable right to set off the recognized amounts; and (b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

(ii) Deferred tax

Deferred tax is recognized, using the asset-liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences: taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable income.

In certain circumstances such as when accounting for leases or decommissioning costs of nuclear power plants, the carrying amount of the asset recorded is equal to the liability recognized at initial recognition. When recording its deferred tax balances, the Company considers these assets and liabilities separately on a gross basis. Accordingly, the taxable temporary difference relating to the asset and the deductible temporary difference relating to the liability are separately recognized and presented on a net basis in the consolidated financial statements.

The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets or deferred tax liabilities on investment properties measured at fair value, unless any contrary evidence exists, are measured using the assumption that the carrying amount of the property will be recovered entirely through sale.

The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Company recognizes a deferred tax asset for all deductible temporary differences arising from investments in subsidiaries and associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax liabilities and assets, and they relate to income taxes levied by the same tax authority and they intend to settle current tax liabilities and assets on a net basis.

F-26

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(14) Income taxes, continued

(iii) Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

(15) Property, plant and equipment

Property, plant and equipment are initially measured at cost and after initial recognition, are carried at cost less accumulated depreciation and accumulated impairment losses. The cost of property, plant and equipment includes expenditures arising directly from the construction or acquisition of the asset, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are recognized in the carrying amount of property, plant and equipment at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the

day-to-day

servicing are recognized in profit or loss as incurred.

Property, plant and equipment, except for land, are depreciated on a straight-line basis over estimated useful lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be consumed. For loaded nuclear fuel related to

long-term

raw materials and spent nuclear fuels related to asset retirement costs, the Company uses the

unit-of-production

method to measure and recognize depreciation expenses.

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

follows:

	Useful lives (years)
Buildings	8 ~ 40
Structures	5 ~ 50
Machinery	2 ~ 32
Vehicles	3 ~ 8
Loaded heavy water	30
Asset retirement costs	18, 30, 40, 60
Right-of-use assets	1 ~ 65
Ships	9
Others	4 ~ 15

A component that is significant compared to the total cost of property, plant and equipment is depreciated over its separate useful life.

Depreciation methods, residual values and useful lives of property, plant and equipment are reviewed at the end of each reporting period and if change is deemed appropriate, it is treated as a change in accounting estimate.

Property, plant and equipment are derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an item of property, plant and equipment, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

F-27

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(16) Investment property

A property held for the purpose of earning rentals or benefiting from capital appreciation is classified as investment property. Investment property is initially measured at its cost. Transaction costs are included in the initial measurement. Subsequently, investment property is carried at depreciated cost less any accumulated impairment losses.

Subsequent costs are recognized in the carrying amount of investment property at cost or, if appropriate, as separate items if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the

day-to-day

servicing are recognized in profit or loss as incurred.

Investment properties except for land, are depreciated on a straight-line basis over 8 ~ 40 years as estimated useful lives.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.

(17) Intangible assets

(i) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

(ii) Research and development

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated:

• The technical feasibility of completing the intangible asset so that it will be available for use or sale;

• The intention to complete the intangible asset and use or sell it;

• The ability to use or sell the intangible asset;

• How the intangible asset will generate probable future economic benefits;

• The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

• The ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. When the development expenditure does not meet the criteria listed above, an internally-generated intangible asset cannot be recognized and the expenditure is recognized in profit or loss in the period in which it is incurred.

Internally-generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses.

F-28

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(17) Intangible assets, continued

The estimated useful lives and amortization methods of the Company’s intangible assets are as follows:

	Useful lives (years)	Amortization methods
Usage rights for donated assets	10 ~ 30	Straight line
Software	4, 5	Straight line
Industrial rights	5 ~ 10	Straight line
Development expenditures	5	Straight line
Leasehold rights	8 ~ 10	Straight line
Others	3 ~ 50 or indefinite	Straight line
Mining rights	0	Unit of production

(iii) Intangible assets acquired in a business combination

Intangible assets that are acquired in a business combination are recognized separately from goodwill are initially recognized at their fair value at the acquisition date.

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

(iv) Derecognition of intangible assets

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized.

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

In accordance with the Act on the Allocation and Trading of Greenhouse Gas Emission Rights and its Enforcement Decree, the Company applies the following accounting policies for greenhouse gas emissions rights and obligations.

(i) Greenhouse gas emissions rights

Greenhouse gas emissions rights consist of the allowances received free of charge from the government and the ones purchased. The cost of the greenhouse gas emissions rights includes expenditures arising directly from the acquisition and any other costs incurred during normal course of the acquisition.

Greenhouse gas emissions rights are held by the Company to fulfill the legal obligation and recorded as intangible assets. To the extent that the portion to be submitted to the government within one year from the end of reporting period, the greenhouse gas emissions rights are classified as current assets. Greenhouse gas emissions rights recorded as intangible assets are initially measured at cost and substantially remeasured at cost less accumulated impairment losses.

Greenhouse gas emissions rights are derecognized on submission to the government or when no future economic benefits are expected from its use or disposal.

(ii) Greenhouse gas emissions obligations

Greenhouse gas emissions obligations are the Company’s present legal obligation to submit the greenhouse gas emissions allowances to the government and recognized when an outflow of resources is probable and a reliable estimate can be made of the amount of the obligation. Greenhouse gas emissions obligations are measured as the sum of the carrying amount of the allocated rights that will be submitted to the government and the best estimate of expenditure required to settle the obligation at the end of the reporting period for any excess emission.

F-29

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(19) Impairment of non-financial assets other than goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets with definite useful lives to determine whether there is any indication that those assets may have been impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a

pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, to the extent the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or CGU) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

(20) Inventories

Inventories are measured at the lower of cost and net realizable value. Cost of inventories for inventories in transit are measured by using specific identification method. Cost of inventories, except for those in transit, are measured under the weighted average method and consists of the purchase price, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, are recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs.

(21) Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

The risks and uncertainties that inevitably surround many events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows.

F-30

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(21) Provisions, continued

Where some or all of the expenditures required to settle a provision are expected to be reimbursed by another party, the reimbursement shall be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement shall be treated as a separate asset.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

(i) Provision for employment benefits

The Company determines the provision for employment benefits as the incentive payments based on the results of the individual performance evaluation or management assessment.

(ii) Provision for decommissioning costs of nuclear power plants

The Company records the fair value of estimated decommissioning costs as a liability in the period in which the Company incurs a legal obligation associated with retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. Accretion expense consists of

period-to-period

changes in the liability for decommissioning costs resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows.

(iii) Provision for disposal of spent nuclear fuel

Under the Radioactive Waste Management Act, the Company is levied to pay the spent nuclear fuel fund for the management of spent nuclear fuel. The Company recognizes the provision of present value of the payments.

(iv) Provision for low and intermediate radioactive wastes

Under the Radioactive Waste Management Act, the Company recognizes the provision for the disposal of low and intermediate radioactive wastes in best estimate of the expenditure required to settle the present obligation.

(v) Provision for Polychlorinated Biphenyls (“PCBs”)

Under the Persistent Organic Pollutants Control Act, enacted in 2007, the Company is required to remove PCBs, a toxin, from the insulating oil of its transformers by 2025. As a result of the enactments, the Company is required to inspect the PCBs contents of transformers and dispose of PCBs in excess of safety standards under the legally settled procedures. The Company’s estimates and assumptions used to determine fair value can be affected by many factors, such as the estimated costs of inspection and disposal, inflation rate, discount rate, regulations and the general economy.

(vi) Provisions for the power plant region support programs

The power plant region support programs consist of scholarship programs to local students, local economy support programs, local culture support programs, environment development programs, and local welfare programs. The Company recognizes the provision in relation to the power plant region support programs.

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

The Company has present obligation to conduct certain programs to support neighboring areas of our transmission and transformation facilities under the Act on Assistance to Electric Power Plants-Neighboring Areas. The Company recognizes the provision of estimated amount to fulfill the obligation.

(viii) Renewable Portfolio Standard (“RPS”) provisions

RPS program is required to generate a specified percentage of total electricity to be generated in the form of renewable energy and provisions are recognized for the governmental regulations to require the production of energies from renewable energy sources such as solar, wind and biomass.

F-31

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(22) Financial instruments

The Company recognizes financial assets and financial liabilities in the consolidated statement of financial position when the Company becomes a party to the contractual provisions of the instrument. Upon initial recognition, financial assets and financial liabilities are measured at their fair value plus, in the case of a financial asset or financial liabilities not at fair value through profit or loss, transaction costs that are directly attributable to the asset’s acquisition or issuance.

(i) Classification and measurement of financial assets

The Company classifies financial assets into three principal categories; measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL) based on the business model in which assets are managed and their cash flow characteristics. The Company assesses the hybrid financial instrument in which derivatives embedded as a whole for

classification.

	Cash flow characteristics
Business model	Solely payments of principal and interest (SPPI)	Other than SPPI
To collect contractual cash flows	Amortized cost	FVTPL (*2)
Both collecting contractual cash flows and selling financial assets	FVOCI (*1)
To sell financial assets	FVTPL

(*1) To eliminate or reduce an accounting mismatch, the Company may elect to recognize the amount of change in fair value in profit or loss.

(*2) On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI.

① A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is to hold assets to collect contractual cash flows; and 2) its contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

② A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) its contractual terms of the financial asset give rise on specified dates to cash flow that are solely payments of principal and interest on the principal amount outstanding.

③ All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. On initial recognition of equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in fair value in OCI, and will not reclassify (recycle) those items in OCI to profit or loss subsequently.

(ii) Classification and measurement of financial liabilities

Financial liabilities are classified as FVTPL or other financial liabilities.

① A financial liability is classified as at FVTPL if it is classified as

held-for-trading,

it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

② A

non-derivative

financial liability that is not classified as at FVTPL is classified as other financial liabilities. Other financial liabilities are measured initially at its fair value minus transaction costs that are directly attributable to the acquisition or issue. Other financial liabilities are subsequently measured at amortized cost using the effective interest rate method.

F-32

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(22) Financial instruments, continued

(iii) Impairment: Financial assets and contract assets

The Company applies a forward-looking ‘expected credit loss’ (ECL) model for debt instruments, lease receivables, contractual assets, loan commitments and financial guarantee contracts.

The Company recognizes loss allowances measured on either of the

12-month

or lifetime ECL based on the extent of increase in credit risk since inception as shown in the below table.

Classification		Loss allowances
Stage 1	Credit risk has not increased significantly since the initial recognition	12-month ECL:	ECLs that resulted from possible default events within the 12 months after the reporting date
Stage 2	Credit risk has increased significantly since the initial recognition	Lifetime ECL:	ECL that resulted from all possible default events over the expected life of a financial instrument
Stage 3	Credit-impaired

Under IFRS 9, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivables or contract assets that result from transactions that are within the scope of IFRS 15 and that do not contain a significant financing component in accordance with IFRS 15, and if the trade receivables or contract assets include a significant financing component, the Company may choose as its accounting policy to measure the loss allowance at an amount equal to lifetime expected credit losses.

The Company has chosen to measure the loss allowance at an amount equal to lifetime expected credit losses for the trade receivables, contract assets and lease receivables that contain a significant financing component.

(iv) Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Company enters into transactions whereby it transfers assets recognized in its consolidated statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any

non-cash

assets transferred or liabilities assumed) is recognized in profit or loss.

(23) Service Concession Arrangements

The Company recognizes revenues from construction services and operating services related to service concession arrangements in accordance with IFRS 15 ‘Revenue from Contracts with Customers’.

The Company recognizes a financial asset to the extent that it has an unconditional contractual right to receive cash or another financial asset for the construction services and an intangible asset to the extent that it receives a right (license) to charge users of the public service. Borrowing costs attributable to the arrangement are recognized as an expense in the period in which they are incurred unless the Company has a contractual right to receive an intangible asset (a right to charge users of the public service). In this case, borrowing costs attributable to the arrangement are capitalized during the construction phase of the arrangement.

F-33

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

(24) Derivative financial instruments, including hedge accounting

The Company enters into a variety of derivative arrangements to manage its exposure to interest rate and foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and cross currency swaps and others.

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value.

The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in such case the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognized as a financial asset; a derivative with a negative fair value is recognized as a financial liability. A derivative is presented as a

non-current

asset or a

non-current

liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities.

(i) Separable embedded derivatives

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of the host contracts and when the host contracts are not measured at FVTPL.

An embedded derivative is presented as a

non-current

asset or a

non-current

liability if the remaining maturity of the hybrid instrument to which the embedded derivative is part of, is more than 12 months and it is not expected to be realized or settled within 12 months. All other embedded derivatives are presented as current assets or current liabilities.

(ii) Hedge accounting

The Company designates certain hedging instruments, which include derivatives, embedded derivatives and

non-derivatives

in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

At the inception of the hedge relationship, the entity documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

(iii) Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The changes in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk relating to the hedged items are recognized in the consolidated statements of comprehensive income (loss).

Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortized and recognized as profit or loss from that date.

F-34

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

3. Significant Accounting Policies, Continued

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

(iv) Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, and is included in the ‘finance income and expense’.

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognized in profit or loss, in the same line of the consolidated statement of comprehensive income (loss) as the recognized hedged item. However, when the forecast transaction that is hedged results in the recognition of a

non-financial

asset or a

non-financial

liability, the gains or losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the

non-financial

asset or

non-financial

liability.

Hedge accounting is discontinued when the Company revokes the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or it no longer qualifies for hedge accounting. Any gain or loss accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

(25) Assets held-for-sale

The Company classifies

non-current

assets or disposal groups as held for sale if their carrying amounts will be recovered principally through a sale or distribution rather than through continuing use. The criteria for

assets-held-for-sale

classification is regarded as met only when the disposal is highly probable, and the asset or disposal group is available for immediate distribution in its present condition. Management must be committed to the distribution expected within one year from the date of the classification.

Such

non-current

assets and disposal groups classified as held for sale or as held for distribution are measured at the lower of their carrying amount and fair value less costs to sell or to distribute.

F-35

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information

(1) Segment determination and explanation of the measurements

The Company’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by chief operating decision makers of the Company including but not limited to the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Company’s reportable segments are ‘Transmission and distribution’, ‘Electric power generation (Nuclear)’, ‘Electric power generation

(Non-nuclear)’,

‘Plant maintenance & engineering service’ and ‘Others’; others mainly represent the business unit that manages the Company’s foreign operations.

Segment operating profit (loss) is determined the same way that consolidated operating profit is determined under IFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an

arm’s-length

basis at market prices that would be applicable to an independent third party. For subsidiaries which are in a different segment from that of its immediate parent company, their carrying amount in separate financial statements is eliminated in the consolidating adjustments in the tables below. In addition, consolidation adjustments in the table below include adjustments of the amount of investment in associates and joint ventures from the cost basis amount reflected in segment assets to that determined using equity method in the consolidated financial statements.

F-36

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information, Continued 

(2) Financial information of the segments for the years ended December 31, 2019, 2020 and 2021, respectively, are as follows:

		2019
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net				Operating profit (loss)
		In millions of won
Transmission and distribution	￦		58,328,372			1,336,725			56,991,647		3,814,428			73,478			777,120			140,757			298,144			350,865		987,828				(2,568,529	)
Electric power generation (Nuclear)			8,937,026			8,908,803			28,223		3,227,695			37,277			511,864			(5,497	)		132,283			0		672,134				782,511
Electric power generation (Non-nuclear)			24,254,957			23,472,153			782,804		3,955,333			35,626			655,466			77,641			163,626			13,364		766,407				551,287
Plant maintenance & engineering service			2,627,539			2,254,841			372,698		125,546			14,214			2,861			1,237			124,745			0		124,242				312,341
Others			1,049,324			656,614			392,710		127,364			141,262			134,248			0			18,409			4		2,408				(489,585	)
Consolidation adjustments			(36,629,136	)		(36,629,136	)		0		(121,626	)		(33,739	)		(34,748	)		0			(12,087	)		0		(251,804	)			(295,552	)
	￦		58,568,082			0			58,568,082		11,128,740			268,118			2,046,811			214,138			725,120			364,233		2,301,215				(1,707,527	)
Finance income																																1,009,706
Finance expense																																(2,782,156	)
Gain related to associates, joint ventures and subsidiaries																																214,139
Loss before income tax																														￦		(3,265,838	)

F-37

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the years ended December 31, 2019, 2020 and 2021, respectively, are as follows, continued:

		2020
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net				Operating profit (loss)
		In millions of won
Transmission and distribution	￦		57,345,933			1,224,602			56,121,331		3,836,355			48,220			737,973			169,176			190,302			236,727		731,194				3,045,912
Electric power generation (Nuclear)			9,938,941			9,817,147			121,794		3,564,120			25,581			503,485			(4,905	)		86,672			0		691,052				1,168,833
Electric power generation (Non-nuclear)			20,329,611			19,552,376			777,235		4,034,024			20,843			622,346			115,096			112,775			17,679		346,195				(172,884	)
Plant maintenance & engineering service			2,703,472			2,283,333			420,139		119,056			11,789			1,250			1,740			101,255			0		230,264				197,553
Others			1,582,001			1,096,663			485,338		122,092			167,005			162,843			0			50,889			940		3,711				148,393
Consolidation adjustments			(33,974,121	)		(33,974,121	)		0		(127,628	)		(30,852	)		(32,472	)		0			(49,605	)		0		(169,651	)			(291,187	)
	￦		57,925,837			0			57,925,837		11,548,019			242,586			1,995,425			281,107			492,288			255,346		1,832,765				4,096,620
Finance income																																1,510,249
Finance expense																																(2,896,443	)
Gain related to associates, joint ventures and subsidiaries																																281,107
Loss before income tax																														￦		2,991,533

F-38

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information, Continued

(2) Financial information of the segments for the years ended December 31, 2019, 2020 and 2021, respectively, are as follows, continued:

		2021
Segment		Total segment revenue			Intersegment revenue			Revenue from external customers		Depreciation and amortization			Interest income			Interest expense			Profit (loss) related to associates, joint ventures and subsidiaries			Employee benefit expense			Loss on abandonment of property, plant and equipment		Increase in provisions, net			Operating profit (loss)
		In millions of won
Transmission and distribution	￦		58,999,388			1,672,776			57,326,612		3,990,464			36,831			678,986			391,116			193,412			202,262		1,194,643			(7,244,319	)
Electric power generation (Nuclear)			9,324,391			9,207,516			116,875		3,611,594			22,209			477,512			(18,146	)		86,730			0		680,358			762,164
Electric power generation (Non-nuclear)			25,837,982			24,518,167			1,319,815		4,178,520			22,226			624,391			109,765			121,020			5,672		285,152			364,572
Plant maintenance & engineering service			2,805,785			2,370,900			434,885		121,493			9,515			933			11,849			94,269			0		213,500			245,360
Others			2,010,843			1,295,423			715,420		158,952			158,680			162,345			0			52,698			0		2,981			200,363
Consolidation adjustments			(39,064,782	)		(39,064,782	)		0		(122,751	)		(27,587	)		(29,710	)		0			(36,187	)		0		89,818			(64,775	)
	￦		59,913,607			0			59,913,607		11,938,272			221,874			1,914,457			494,584			511,942			207,934		2,466,452			(5,736,635	)
Finance income																															1,402,614
Finance expense																															(3,245,777	)
Gain related to associates, joint ventures and subsidiaries																															494,584
Profit before income tax																													￦		(7,085,214	)

F-39

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information, Continued

(3) Information related to segment assets and segment liabilities as of and for the years ended December 31, 2020 and 2021 are as follows:

		2020
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
		In millions of won
Transmission and distribution	￦		113,115,667			4,204,090		6,535,380			59,772,046
Electric power generation (Nuclear)			61,850,865			116,867		2,419,939			35,652,467
Electric power generation (Non-nuclear)			54,531,155			1,807,409		3,758,795			33,292,680
Plant maintenance & engineering service			3,492,571			42,167		141,226			1,061,949
Others			8,923,046			0		577,056			4,039,220
Segment totals			241,913,304			6,170,533		13,432,396			133,818,362
Consolidation adjustments:
Elimination of inter-segment amounts			(39,762,888	)		0		(30,731	)		(6,749,728	)
Equity method adjustment			1,372,001			0		0			0
Deferred taxes			47,664			0		0			5,417,629
Others			(427,970	)		0		0			(10,998	)
			(38,771,193	)		0		(30,731	)		(1,343,097	)
Consolidated totals	￦		203,142,111			6,170,533		13,401,665			132,475,265
		2021
Segment		Segment assets			Investments in associates and joint ventures		Acquisition of non-current assets			Segment liabilities
		In millions of won
Transmission and distribution	￦		115,578,517			4,700,863		6,754,298			68,531,927
Electric power generation (Nuclear)			64,628,651			141,885		1,959,479			38,361,337
Electric power generation (Non-nuclear)			57,304,296			2,575,019		3,331,813			35,803,289
Plant maintenance & engineering service			3,672,366			53,617		110,330			1,086,926
Others			10,861,823			0 ��		637,715			4,961,880
Segment totals			252,045,653			7,471,384		12,793,635			148,745,359
Consolidation adjustments:
Elimination of inter-segment amounts			(41,701,400	)		0		(12,001	)		(8,101,011	)
Equity method adjustment			1,866,554			0		0			0
Deferred taxes			1,881			0		0			5,248,627
Others			(1,103,818	)		0		0			(95,954	)
			(40,936,783	)		0		(12,001	)		(2,948,338	)
Consolidated totals	￦		211,108,870			7,471,384		12,781,634			145,797,021

F-40

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

4. Segment, Geographic and Other Information, Continued

(4) Geographic information

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

		Revenue from external customers						Non-current assets (*2)
Geographical unit		2019		2020		2021		2019		2020		2021
		In millions of won
Domestic	￦		56,942,128		56,774,578		58,672,484		169,366,365		173,673,478		178,745,707
Overseas (*1)			1,625,954		1,151,259		1,241,123		2,743,755		2,831,925		3,572,784
	￦		58,568,082		57,925,837		59,913,607		172,110,120		176,505,403		182,318,491

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

(*2) The amounts exclude financial assets and deferred tax assets.

(5) Information on significant customers

There is no single customer which accounts for 10% or more of the Company’s revenue for the years ended December 31, 2019, 2020 and 2021.

F-41

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

5. Classification of Financial Instruments

(1) Classification of financial assets as of December 31, 2020 and 2021 are as follows:

		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
		In millions of won
Current assets
Cash and cash equivalents	￦		0		0		2,029,584		0		2,029,584
Current financial assets
Current financial assets at fair value through profit or loss			1,196,101		0		0		0		1,196,101
Current financial assets at amortized costs			0		0		13,149		0		13,149
Current derivative assets			18,332		0		0		11,193		29,525
Other financial assets			0		0		1,561,445		0		1,561,445
Trade and other receivables			0		0		7,918,470		0		7,918,470
			1,214,433		0		11,522,648		11,193		12,748,274
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			685,281		0		0		0		685,281
Non-current financial assets at fair value through other comprehensive income			0		358,559		0		0		358,559
Non-current financial assets at amortized costs			0		0		1,273		0		1,273
Non-current derivative assets			92,432		0		0		44,456		136,888
Other financial assets			0		0		1,290,820		0		1,290,820
Trade and other receivables			0		0		1,861,569		0		1,861,569
			777,713		358,559		3,153,662		44,456		4,334,390
	￦		1,992,146		358,559		14,676,310		55,649		17,082,664

F-42

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

5. Classification of Financial Instruments, Continued

(1) Classification of financial assets as of December 31, 2020 and 2021 are as follows, continued:

		2021
		Financial assets at fair value through profit or loss		Financial assets at fair value through other comprehensive income		Financial assets at amortized cost		Derivative assets (applying hedge accounting)		Total
		In millions of won
Current assets
Cash and cash equivalents	￦		0		0		2,635,238		0		2,635,238
Current financial assets
Current financial assets at fair value through profit or loss			360,833		0		0		0		360,833
Current financial assets at amortized costs			0		0		15,422		0		15,422
Current derivative assets			93,374		0		0		33,564		126,938
Other financial assets			0		0		1,365,603		0		1,365,603
Trade and other receivables			0		0		8,122,415		0		8,122,415
			454,207		0		12,138,678		33,564		12,626,449
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			672,031		0		0		0		672,031
Non-current financial assets at fair value through other comprehensive income			0		435,107		0		0		435,107
Non-current financial assets at amortized costs			0		0		9,851		0		9,851
Non-current derivative assets			349,653		0		0		171,192		520,845
Other financial assets			0		0		1,271,976		0		1,271,976
Trade and other receivables			0		0		1,906,861		0		1,906,861
			1,021,684		435,107		3,188,688		171,192		4,816,671
	￦		1,475,891		435,107		15,327,366		204,756		17,443,120

F-43

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

5. Classification of Financial Instruments, Continued

(2) Classification of financial liabilities as of December 31, 2020 and 2021 are as follows:

		2020
		Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
		In millions of won
Current liabilities
Borrowings	￦		0		2,113,181		0		2,113,181
Debt securities			0		8,561,624		0		8,561,624
Derivative liabilities			13,053		0		36,831		49,884
Trade and other payables			0		6,256,521		0		6,256,521
			13,053		16,931,326		36,831		16,981,210
Non-current liabilities
Borrowings			0		3,003,999		0		3,003,999
Debt securities			0		56,045,777		0		56,045,777
Derivative liabilities			144,873		0		170,362		315,235
Trade and other payables			0		6,480,412		0		6,480,412
			144,873		65,530,188		170,362		65,845,423
	￦		157,926		82,461,514		207,193		82,826,633
		2021
		Financial liabilities at fair value through profit or loss		Financial liabilities recognized at amortized cost		Derivative liabilities (applying hedge accounting)		Total
		In millions of won
Current liabilities
Borrowings	￦		0		4,382,218		0		4,382,218
Debt securities			0		9,647,616		0		9,647,616
Derivative liabilities			6,838		0		453		7,291
Trade and other payables			0		8,153,426		0		8,153,426
			6,838		22,183,260		453		22,190,551
Non-current liabilities
Borrowings			0		2,265,624		0		2,265,624
Debt securities			0		64,234,055		0		64,234,055
Derivative liabilities			49,418		0		21,322		70,740
Trade and other payables			0		5,996,498		0		5,996,498
			49,418		72,496,177		21,322		72,566,917
	￦		56,256		94,679,437		21,775		94,757,468

F-44

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

5. Classification of Financial Instruments, Continued

(3) Classification of comprehensive income (loss) from financial instruments for the years ended December 31, 2019, 2020 and 2021 are as follows:

			2019			2020			2021
			In millions of won
Cash and cash equivalents	Interest income	￦		42,861			9,419			12,692
	Gain (loss) on foreign currency transactions and translations			(3,332	)		(15,911	)		34,923
Financial assets at fair value through profit or loss	Interest income			29,411			19,114			18,415
	Dividends income			6,984			4,734			2,949
	Gain (loss) on valuation of derivatives			151,604			(52,447	)		450,896
	Gain (loss) on transaction of derivatives			63,329			36,563			54,352
	Gain (loss) on valuation of financial assets			1,062			5,508			8,858
	Gain (loss) on disposal of financial assets			1,760			11,344			4,221
Financial assets at fair value through other comprehensive income	Dividends income			6,854			2,582			7,573
Financial assets at amortized cost	Interest income			539			612			797
	Gain (loss) on foreign currency transactions and translations			(690	)		(1,733	)		(3,647	)
Loans	Interest income			63,448			26,232			25,196
	Gain (loss) on foreign currency transactions and translations			(631	)		(527	)		729
Trade and other receivables	Interest income			69,941			151,035			144,543
	Gain (loss) on disposal of financial assets			—			—			2,452
	Gain (loss) on foreign currency transactions and translations			(31,500	)		23,458			14,207
Short-term financial instruments	Interest income			49,070			25,540			7,531
	Gain (loss) on foreign currency transactions and translations			39,845			(38,088	)		32,218
Long-term financial instruments	Interest income			12,794			10,406			12,470
	Gain (loss) on foreign currency transactions and translations			0			0			27
Other financial assets	Interest income			54			228			230
Derivatives (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)			123,730			(77,733	)		211,180
	Gain (loss) on valuation of derivatives (equity, before tax)			38,305			9,925			(11,734	)
	Gain (loss) on transaction of derivatives			65,651			36,053			31,351
Financial liabilities at fair value through profit or loss	Gain (loss) on valuation of derivatives			27,686			(104,607	)		2,751
	Gain (loss) on transaction of derivatives			(493	)		(49,788	)		(15,358	)
Financial liabilities carried at amortized cost	Interest expense of borrowings and debt securities			1,394,328			1,365,801			1,316,269
	Gain (loss) on repayment of financial liabilities			0			(35	)		(10	)
	Interest expense of trade and other payables			94,019			88,757			213,765
	Interest expense of others			558,464			540,867			384,423
	Other finance income			0			0			1,284
	Other finance expenses			0			0			2,504
	Gain (loss) on foreign currency transactions and translations			(409,867	)		772,045			(1,162,835	)
Derivatives (applying hedge accounting)	Gain (loss) on valuation of derivatives (profit or loss)			14,330			(220,928	)		158,167
	Gain (loss) on valuation of derivatives (equity, before tax)			(2,578	)		101,295			(28,726	)
	Gain (loss) on transaction of derivatives			(42,072	)		42,565			13,737

F-45

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

6. Restricted Deposits

Restricted deposits as of December 31, 2020 and 2021 are as follows:

			2020		2021
			In millions of won
Cash and cash equivalents	Escrow accounts	￦		544		0
	Deposits for government project and others			5,066		22,286
	Collateral provided for borrowings			117,747		264,813
	Collateral provided for lawsuit			42		42
	Deposits for transmission regional support program			5,469		5,921
	Deposits for other business purposes			—		3,050
Short-term financial instruments	Restriction on withdrawal related to ‘win-win growth program’ for small and medium enterprises and others			109,000		114,000
	Collateral provided for borrowings			—		11,745
Non-current financial assets at fair value through profit or loss	Decommissioning costs of nuclear power plants			577,481		531,720
Long-term financial instruments	Escrow accounts			76		70
	Guarantee deposits for banking accounts at oversea branches			306		333
	Collateral provided for borrowings			11,745		0
	Decommissioning costs of nuclear power plants			258,282		324,609
	Funds for developing small and medium enterprises (*)			210,000		10,000
		￦		1,295,758		1,288,589

(*) As of December 31, 2020, it consisted of the deposits for small and medium enterprises at the Industrial Bank of Korea (IBK) and others for construction of Bitgaram Energy Valley and support for high potential businesses amounting to ￦200,000 million and the deposits were returned during the year ended December 31, 2021.

F-46

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

7. Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Cash	￦		871		19,623
Other demand deposits			1,291,058		1,825,751
Short-term deposits classified as cash equivalents			432,263		407,921
Short-term investments classified as cash equivalents			305,392		381,943
	￦		2,029,584		2,635,238

F-47

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

8. Trade and Other Receivables

(1) Trade and other receivables as of December 31, 2020 and 2021 are as follows:

		2020
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,370,923		(208,184	)		0			7,162,739
Other receivables			799,598		(42,332	)		(1,535	)		755,731
			8,170,521		(250,516	)		(1,535	)		7,918,470
Non-current assets
Trade receivables			227,261		(806	)		0			226,455
Other receivables			1,728,486		(90,047	)		(3,325	)		1,635,114
			1,955,747		(90,853	)		(3,325	)		1,861,569
	￦		10,126,268		(341,369	)		(4,860	)		9,780,039
		2021
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Trade receivables	￦		7,743,735		(203,838	)		0			7,539,897
Other receivables			602,113		(18,555	)		(1,040	)		582,518
			8,345,848		(222,393	)		(1,040	)		8,122,415
Non-current assets
Trade receivables			185,512		(1,501	)		0			184,011
Other receivables			1,792,895		(64,155	)		(5,890	)		1,722,850
			1,978,407		(65,656	)		(5,890	)		1,906,861
	￦		10,324,255		(288,049	)		(6,930	)		10,029,276

F-48

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

8. Trade and Other Receivables, Continued

(2) Other receivables as of December 31, 2020 and 2021 are as follows:

		2020
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		441,031		(37,062	)		0			403,969
Accrued income			38,956		0			0			38,956
Deposits			239,011		0			(1,535	)		237,476
Finance lease receivables(*1)			57,084		(365	)		0			56,719
Others			23,516		(4,905	)		0			18,611
			799,598		(42,332	)		(1,535	)		755,731
Non-current assets
Non-trade receivables			215,136		(80,451	)		0			134,685
Accrued income			834		0			0			834
Deposits			364,855		0			(3,325	)		361,530
Finance lease receivables(*2)			1,065,982		(625	)		0			1,065,357
Others			81,679		(8,971	)		0			72,708
			1,728,486		(90,047	)		(3,325	)		1,635,114
	￦		2,528,084		(132,379	)		(4,860	)		2,390,845
(*1)  Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦105,127 million. (*2)  Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦1,087,559 million.
		2021
		Gross amount		Allowance for doubtful accounts			Present value discount			Book value
		In millions of won
Current assets
Non-trade receivables	￦		232,172		(17,084	)		(9	)		215,079
Accrued income			57,300		0			0			57,300
Deposits			212,666		0			(1,031	)		211,635
Finance lease receivables(*1)			60,613		(178	)		0			60,435
Others			39,362		(1,293	)		0			38,069
			602,113		(18,555	)		(1,040	)		582,518
Non-current assets
Non-trade receivables			123,537		(56,407	)		(281	)		66,849
Accrued income			1,828		0			0			1,828
Deposits			441,393		0			(5,609	)		435,784
Finance lease receivables(*2)			1,140,080		(590	)		0			1,139,490
Others			86,057		(7,158	)		0			78,899
			1,792,895		(64,155	)		(5,890	)		1,722,850
	￦		2,395,008		(82,710	)		(6,930	)		2,305,368

(*1) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦111,915 million.

(*2) Gross amount of finance lease receivables is the net lease investment by deducting unearned finance income of ￦1,082,712 million.

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

F-49

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

8. Trade and Other Receivables, Continued

(4) Aging analysis of trade receivables as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Trade receivables: (not overdue)	￦		7,274,773			7,603,472
Trade receivables: (impairment reviewed)			323,411			325,775
Less than 60 days			3,505			11,577
60 ~ 90 days			28,729			27,201
90 ~ 120 days			10,687			28,230
120 days ~ 1 year			34,036			51,945
Over 1 year			246,454			206,822
			7,598,184			7,929,247
Less: allowance for doubtful accounts			(208,990	)		(205,339	)
	￦		7,389,194			7,723,908

At the end of each reporting period, the Company assesses whether the credit to trade receivables is impaired. The Company recognizes loss allowances for trade receivables individually when there is any objective evidence that trade receivables are impaired and significant and classifies the trade receivables that are not individually assessed as the trade receivables subject to be assessed on a collective basis. Also, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

(5) Aging analysis of other receivables as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Other receivables: (not overdue)	￦		2,363,967			2,251,474
Other receivables: (impairment reviewed)			164,117			143,534
Less than 60 days			46,399			87
60 ~ 90 days			31,183			4,881
90 ~ 120 days			1,873			1,248
120 days ~ 1 year			11,803			11,438
Over 1 year			72,859			125,880
			2,528,084			2,395,008
Less: allowance for doubtful accounts			(132,379	)		(82,710	)
Less: present value discount			(4,860	)		(6,930	)
	￦		2,390,845			2,305,368

At the end of each reporting period, the Company assesses whether the credit to other receivables is impaired. The Company recognizes loss allowances for other receivables individually when there is any objective evidence that other receivables are impaired and significant, and classifies the other receivables that are not individually assessed as the other receivables subject to be assessed on a collective basis. Also, the Company recognizes loss allowances based on an ‘expected credit loss’ (ECL) model.

F-50

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

8. Trade and Other Receivables, Continued

(6) Changes in the allowance for doubtful accounts for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019						2020						2021
		Trade receivables			Other receivables			Trade receivables			Other receivables			Trade receivables			Other receivables
		In millions of won
Beginning balance	￦		215,868			104,726			212,759			114,155			208,990			132,379
Bad debt expense			29,221			19,206			24,021			27,329			19,039			18,411
Write-off			(10,106	)		(1,146	)		(20,332	)		(1,910	)		(21,809	)		(58,762	)
Reversal			(41,940	)		0			(3,373	)		(2,464	)		(1,071	)		(79	)
Others			19,716			(8,631	)		(4,085	)		(4,731	)		190			(9,239	)
Ending balance	￦		212,759			114,155			208,990			132,379			205,339			82,710

F-51

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

9. Financial Assets at Fair Value through Profit or Loss

(1) Financial assets at fair value through profit or loss as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Financial assets at fair value through profit or loss
Beneficiary Certificate	￦		1,313		155,122		629		206,160
Cooperative			0		5,692		0		5,797
Other (*)			1,194,788		312,401		360,204		202,003
			1,196,101		473,215		360,833		413,960
Financial assets designated as at fair value through profit or loss
Debt with embedded derivatives			0		212,066		0		258,071
	￦		1,196,101		685,281		360,833		672,031

(*) ‘Other’ includes MMT, etc.

(2) Details of income (loss) from financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Beneficiary Certificate	￦		6,127		13,632
Cooperative			645		110
Debt with embedded derivatives			3,598		854
Other			30,329		19,848
	￦		40,699		34,444

F-52

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income

(1) Changes in financial assets at fair value through other comprehensive income for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance
		In millions of won
Listed	￦		201,201		0		(4	)		(7,809	)		1,281			194,669
Unlisted			177,969		2,900		(1	)		(23,128	)		6,150			163,890
			379,170		2,900		(5	)		(30,937	)		7,431			358,559
Current financial assets at fair value through other comprehensive income	￦		0		0		0			0			0			0
Non-current financial assets at fair value through other comprehensive income			379,170		2,900		(5	)		(30,937	)		7,431			358,559
		2021
		Beginning balance		Acquisition		Disposal			Valuation			Others			Ending balance
		In millions of won
Equity securities
Listed	￦		194,669		1,500		(8,208	)		81,112			4,753			273,826
Unlisted			163,890		8,929		(13	)		(12,335	)		319			160,790
			358,559		10,429		(8,221	)		68,777			5,072			434,616
Debt securities
Corporate bond			0		500		0			0			(9	)		491
			358,559		10,929		(8,221	)		68,777			5,063			435,107
Current financial assets at fair value through other comprehensive income	￦		0		0		0			0			0			0
Non-current financial assets at fair value through other comprehensive income			358,559		10,929		(8,221	)		68,777			5,063			435,107

F-53

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows:

	2020
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
Listed
Korea District Heating Corp.		2,264,068		19.55	%	￦		173,201		91,356		91,356
Ssangyong Motor Co., Ltd.		38,568		0.03	%			428		107		107
SM Korea Line Corp.		180		0.00	%			1		1		1
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%			15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%			2		0		0
Elcomtec Co., Ltd.		32,875		0.04	%			217		49		49
P an Ocean Co., Ltd.		1,492		0.00	%			14		7		7
Dongbu Corp.		955		0.02	%			12		13		13
KSP Co., Ltd.		22,539		0.08	%			53		34		34
STX Heavy Industries Co., Ltd.		7,419		0.12	%			107		29		29
Codes Combine Co., Ltd.		291		0.00	%			1		1		1
PT Adaro Energy Tbk.		480,000,000		1.50	%			65,028		53,127		53,127
Energy Fuels Inc.		1,711,814		1.31	%			16,819		7,888		7,888
Bunji Corporation Limited		99,763		0.07	%			18,445		0		0
Denison Mines Corp.		58,284,000		9.76	%			84,134		41,776		41,776
Fission 3.0		75,000		0.05	%			0		6		6
Fission Uranium Corp.		800,000		0.16	%			785		266		266
SangSangin Industry Co., Ltd.(formerly, DMC Co., Ltd.)		5,831		0.02	%			38		4		4
Vitzosys Co., Ltd.		399		0.00	%			2		2		2
EMnI Co., Ltd.		1,257		0.00	%			25		2		2
								359,327		194,669		194,669
Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%	￦		5,000		954		954
Hwan Young Steel Co., Ltd.		10,916		0.14	%			1,092		97		97
Sambo Auto . Co., Ltd.		15,066		0.02	%			38		38		38
Mobo Co., Ltd.		504		0.00	%			14		14		14
Dae Kwang Semiconductor Co., Ltd.		589		0.07	%			6		6		6
Sanbon Department Store		828		0.01	%			124		3		3
Miju Steel Mfg. Co., Ltd.		1,097		0.23	%			50		50		50
Sungwon Co., Ltd.		117		0.07	%			15		15		15
KC Development Co., Ltd.		839		0.02	%			6		6		6
Imhwa Corp.		329		0.11	%			5		5		5
Dalim Special Vehicle Co., Ltd.		58		0.08	%			10		10		10
ASA Jeonju Co., Ltd.		34,846		1.34	%			697		69		69
Moonkyung Silica Co., Ltd.		42		0.56	%			0		0		0
Sungkwang Timber Co., Ltd.		3		0.08	%			5		5		5
HJ Steel Co., Ltd.		218		0.07	%			2		2		2
KS Remicon Co., Ltd.		12		0.04	%			3		3		3
Joongang Platec Co., Ltd.		3,591		0.75	%			72		35		35
Pyungsan SI Co., Ltd.		434		0.01	%			9		9		9
Samgong Development Co., Ltd.		12		0.01	%			7		7		7
Joongang Development Co., Ltd.		540		0.12	%			8		8		8
AJS Co., Ltd.		12,906		0.23	%			32		32		32
MSE Co., Ltd.		429		0.13	%			9		9		9
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%			15		15		15
Youngjin Hi-Tech Co., Ltd.		2,512		0.25	%			126		21		21
Buyoung Co., Ltd.		270		0.00	%			3		3		3
Ilsuk Co., Ltd.		152		0.17	%			10		10		10
Dongyang Telecom Co., Ltd.		1,760		0.01	%			11		1		1
Jongwon Remicon Co., Ltd.		31		0.18	%			13		13		13
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%			0		0		0
Daewoo Development Co., Ltd.		8		0.00	%			0		0		0
Seyang Inc.		537		0.05	%			27		27		27

F-54

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership			Acquisition cost		Book value		Fair value
						In millions of won
Seungri Enterprise Co., Ltd.		93		0.05	%		3		3		3
Shin-E P&C Co., Ltd.		1,569		0.64	%		111		3		3
Ejung Ad Co., Ltd.		132		0.09	%		3		3		3
Solvus Co., Ltd.		1,056		0.04	%		3		3		3
Myung Co., Ltd.		89		0.05	%		2		2		2
Shinil Engineering Co., Ltd.		887		0.06	%		3		3		3
Biwang Industry Co., Ltd		406		0.04	%		2		2		2
Young Sung Co., Ltd.		89		0.40	%		26		26		26
Yuil Industrial Electronics Co., Ltd.		804		0.32	%		15		15		15
Woojin Industry Corporation		3		0.00	%		16		16		16
Kwang Sung Industry Co., Ltd.		325		0.35	%		7		7		7
Futech Mold Co., Ltd.		274		0.27	%		14		14		14
Woojoo Environment Ind. Co., Ltd.		101		0.11	%		13		13		13
Hyungji Esquire Co., Ltd.		61		0.02	%		22		22		22
Kolmar Pharma Co., Ltd.		1,426		0.01	%		52		3		3
Morado Co., Ltd.		209		0.04	%		2		2		2
Myung Sung Tex Co., Ltd.		20		0.00	%		2		2		2
Kwang Sung Co., Ltd.		610		0.53	%		31		31		31
Seen Business and Technology co., Ltd.		29,424		0.73	%		148		7		7
Woobang Construction Co., Ltd.		8		0.00	%		8		8		8
Shin Pyung Co., Ltd.		6		0.03	%		3		3		3
JMC Heavy Industries Co., Ltd.		2,724		0.10	%		27		2		2
Najin Steel Co., Ltd.		37		0.06	%		5		5		5
Sinkwang Industry Co., Ltd.		1,091		1.68	%		5		5		5
Elephant & Friends Co., Ltd.		563		0.61	%		3		3		3
Mireco Co., Ltd.		109		0.25	%		11		11		11
L&K Industry Co., Ltd.		1,615		0.60	%		24		24		24
JO Tech Co., Ltd.		1,263		0.62	%		25		25		25
Kendae Printing Co., Ltd.		422		0.60	%		21		21		21
Dauning Co., Ltd.		231		0.41	%		6		6		6
Korea Trecision Co., Ltd.		22		0.45	%		5		5		5
Ace Track Co., Ltd.		3,130		1.08	%		219		59		59
Dung Hwan Co., Ltd.		556		0.02	%		6		6		6
Hurim Biocell Co., Ltd.		1,021		0.00	%		5		5		5
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
Sunjin Power Tech Co., Ltd.		4,941		0.92	%		247		32		32
Beer Yeast Korea Inc.		1,388		0.43	%		7		7		7
B CON Co., Ltd.		96		1.16	%		6		6		6
Ace Integration Co., Ltd		105		0.09	%		24		24		24
AceInti Agricultural Co., Ltd.		16		0.02	%		5		5		5
KyungDong Co., Ltd.		130		0.01	%		1		1		1
ChunWon Development Co., Ltd.		193		0.19	%		39		39		39
SungLim Industrial Co., Ltd.		29		0.03	%		1		1		1
Korea Minerals Co., Ltd.		191		0.05	%		134		1		1
HyoDong Development Co., Ltd.		128		0.16	%		25		25		25
Haspe Tech Co., Ltd.		652		0.55	%		20		20		20
JoHyun Co., Ltd.		350		1.56	%		18		18		18
KC Co., Ltd.		5,107		0.17	%		26		26		26
SeongJi Industrial Co.,Ltd.		41		0.05	%		1		1		1

F-55

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership			Acquisition cost		Book value		Fair value
						In millions of won
Dong Yang Metal Co., Ltd.		2,951		1.97	%		161		147		147
Seyang Precision Ind.Co., Ltd.		829		0.23	%		41		41		41
Dooriwon Food System Co., Ltd.		13		0.27	%		1		1		1
ShinShin Co., Ltd		339		1.12	%		17		17		17
Sung Kwang Co., Ltd.		23		0.37	%		6		6		6
Shinheung petrol. Co., Ltd.		699		0.14	%		35		35		35
Force TEC Co., Ltd.		3,501		0.02	%		18		18		18
Samsung Tech Co., Ltd.		486		1.28	%		97		36		36
Tae Hyung Co., Ltd.		28		0.43	%		20		20		20
Younil Metal Co., Ltd.		41		0.21	%		21		21		21
Hankook Precision Ind Co., Ltd.		110		0.06	%		3		3		3
CJ Paradise Co.,Ltd		24		0.02	%		12		12		12
Han Young Technology Company Co.,Ltd.		35		0.00	%		0		0		0
STX Offshore & Shipbuilding Co., Ltd.		8,622		0.25	%		1,078		1,078		1,078
Ptotronics Co., Ltd.		843		0.42	%		84		6		6
NFT Co., Ltd.		136		0.40	%		8		8		8
Hyundaitech Co.,Ltd.		1,363		0.87	%		27		27		27
Dasan Material Co., Ltd.		29		0.04	%		22		22		22
Fish World Co.,Ltd.		47		0.21	%		2		2		2
SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%		6		6		6
Samdo Industry Electric Co.,Ltd.		48		0.02	%		1		1		1
Taejung Industries Co.,Ltd.		9,268		0.30	%		5		5		5
Shinsei Trading Co., Ltd.		64		0.72	%		6		6		6
Dynamic Co., Ltd.		111		0.19	%		3		3		3
Green Alchemy Co.,Ltd.		38,202		1.48	%		191		17		17
Youone TBM Engineering & Construction Co., Ltd.		615		0.27	%		31		31		31
KM Leatech Co., Ltd.		1,648		0.98	%		8		8		8
Semist Co.,Ltd.		555		0.80	%		3		3		3
Sewon Bus Co.,Ltd		12		0.00	%		0		0		0
Enertec Co., Ltd.		7,937		0.19	%		44		44		44
Sangji Co., Ltd.		20		0.26	%		4		4		4
Bellie Doughnuts Co., Ltd.		169		0.19	%		10		10		10
Airtech Information communication Co., Ltd		2,379		0.60	%		12		12		12
Shin kwang Industrial Co., Ltd.		884		0.35	%		55		55		55
Kiscom Co., Ltd.		1,493		0.04	%		1		1		1
Wonil laser Co., Ltd		157		0.37	%		16		16		16
Pyung Hwa Industrial Co.,Ltd.		3,388		3.00	%		85		85		85
PT. Kedap Saayq		671		10.00	%		18,540		0		0
Set Holding (*2)		1,100,220		2.50	%		229,255		143,765		143,765
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,440		2,440
Choheung packing Co.,Ltd.		61		0.13	%		12		12		12
Jaewoo Co., Ltd.		359		0.24	%		11		11		11
Wooyang HC Co., Ltd		1,375		0.01	%		159		159		159
Sungsan Parts Co., Ltd.		629		0.80	%		63		63		63
TheYeonriji Co., Ltd.		116		0.10	%		6		6		6
Flusys Co., Ltd.		9		0.08	%		2		2		2
DongSeo Electronics Co., Ltd.		347		0.07	%		17		17		17
Daewoo Display Co., Ltd.		177		0.03	%		5		5		5
Yeong-gwang Remicon Co., Ltd.		15		0.12	%		2		2		2
NTS Co., Ltd.		143		0.22	%		36		36		36

F-56

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
AID C o ., Ltd.		1,212		0.57	%			36		36		36
Changwon Eco-friendly farming Corp.		3		0.01	%			0		0		0
Kumo Hitech Co., Ltd.		6,697		0.53	%			100		100		100
Kyung Pyo Industry Co., Ltd.		186		0.76	%			19		19		19
Daedong Industry Co., Ltd.		617		0.55	%			46		46		46
Doosung Heavy Industries Co., Ltd.		53		0.06	%			5		5		5
Samjoo Hightech Co., Ltd.		522		0.08	%			3		3		3
Samkwang Chemical Co., Ltd.		204		1.27	%			51		51		51
SG Corp.		213		0.54	%			21		21		21
Shinseung Chemical Industy Co., Ltd.		5		0.01	%			60		60		60
KJ Alloy Co., Ltd.		368		0.20	%			7		7		7
SM Hi-tech Co., Ltd.		22		0.39	%			22		22		22
Keum Mun Industry Co., Ltd.		1,320		0.97	%			330		56		56
Puruen Environment Co., Ltd.		967		1.34	%			19		19		19
Miretech Co., Ltd.		9,111		0.27	%			18		18		18
SIE Co., Ltd.		12		0.02	%	��		1		1		1
Sejin Hightech Co., Ltd.		17,980		0.16	%			18		18		18
Eun Sung Enterprise Co., Ltd.		1,131		0.72	%			17		17		17
Dongdo Basalt Industry Co., Ltd.		182		1.50	%			73		73		73
Shinyoung Textiles Co., Ltd.		523		1.01	%			52		23		23
Ilwoo Steel Co., Ltd.		41		0.28	%			17		17		17
Dong-un Tech Co., Ltd.		1,159		6.28	%			81		81		81
Wongwang Door Corp.		575		1.00	%			29		29		29
Seobu Highway Solar Co., Ltd.		19,460		2.86	%			195		195		195
Dongbu Highway Solar Co., Ltd.		19,020		4.99	%			190		190		190
Mansu Co.,Ltd.		344		0.25	%			15		15		15
Eanskorea Co., Ltd.		39		0.05	%			2		2		2
Youngdongseafood Co., Ltd.		165		0.33	%			8		8		8
Hyunwoo Winstar Co., Ltd.		1		0.00	%			0		0		0
Sehwa Diecasting Co., Ltd.		299		1.66	%			44		44		44
Sungchang Tech Co., Ltd.		159		0.31	%			10		10		10
Yuchang Industry Co., Ltd.		90		0.11	%			5		5		5
Jeongpum Co., Ltd.		322		0.35	%			16		16		16
Korea Steel Power Co., Ltd.		2,761		1.88	%			55		55		55
Amanex Co., Ltd.		10		0.02	%			9		9		9
Dae-A Leisure Co., Ltd.		23		0.00	%			4		4		4
Caffe Bene Co.,Ltd.		1,908		0.03	%			2		2		2
Daechang HRSG Co.,Ltd.		618		0.12	%			62		62		62
Shinjin International Corp.		4		0.01	%			1		1		1
Daewoon Shell Tech Co., Ltd.		666		2.81	%			33		33		33
Jinhung Packaging Co.,Ltd		4,329		3.02	%			22		22		22
Donglim Eng Co., Ltd.		26		0.11	%			3		3		3
SIP Co., Ltd.		274		0.55	%			7		7		7
Clizen Co., Ltd.		615		0.34	%			31		31		31
Daedong Millennium  Co., Ltd.		159		0.42	%			32		32		32
Daeji Product Co., Ltd.		15		0.05	%			1		0		0
Cheong Hae Myeong Ga Co.,Ltd.		1,867		0.11	%			5		5		5
Jaein Circuit Co., Ltd.		498		1.12	%			65		65		65
SSET Co., Ltd.		181		0.30	%			18		18		18
Sewon PM Tech Co., Ltd.		963		1.11	%			48		48		48
Dawon Yuhwa Co., Ltd.		506		1.94	%			25		25		25
Ogokbaekkwa Co., Ltd.		101		0.12	%			1		1		1
Shinwoo Toptech Co., Ltd.		834		0.51	%			83		83		83
KMLC Co., Ltd.		281		0.14	%			22		22		22

F-57

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership			Acquisitioncost		Book value		Fair value
						In millions of won
Seinfood Co., Ltd.		13		0.17	%		7		7		7
TaeSung Eco-Tech. Co., Ltd.		1,368		4.55	%		34		34		34
Kukex Inc.		639		0.05	%		3		3		3
Youngshin Plus Co., Ltd.		104		0.12	%		5		5		5
Chang won Engineering Co., Ltd.		22		0.00	%		4		4		4
Samsung Silup Co., Ltd.		47		0.19	%		5		5		5
Samwon Bio Tech Co., Ltd.		390		0.25	%		6		6		6
IZU K orea Co., Ltd.		48		0.00	%		2		2		2
Dongdo CNP Co., Ltd.		234		0.36	%		6		6		6
Dae Bang Industry Co.,Ltd.		115		0.13	%		6		6		6
S.I.T. Co.,Ltd		2,213		0.44	%		22		22		22
Taejin Hiech Co., Ltd.		78		0.26	%		3		3		3
Headone Co.,Ltd.		69		0.12	%		7		7		7
Enaindustry Co., Ltd.		201		0.28	%		141		141		141
TCT Co., Ltd.		3,277		0.55	%		82		82		82
E-Won Solutech Co., Ltd.		158		0.16	%		40		40		40
MJT Co., Ltd.		1,013		0.20	%		51		51		51
KPL Circuit Co., Ltd.		283		0.08	%		14		14		14
Road Solar Co., Ltd.		12		0.00	%		0		0		0
Sung Ae Co., Ltd.		190		0.80	%		10		10		10
Han Mi Flexible Co.,Ltd.		143		0.20	%		43		43		43
Samhwa Casting Co., Ltd.		200		0.04	%		100		100		100
Millennium PNT Co., Ltd.		227		0.37	%		6		6		6
GN Chem Co., Ltd.		40		0.07	%		1		1		1
GW Industry Co., Ltd.		505		0.07	%		51		51		51
TM Construction Co., Ltd.		4		0.00	%		0		0		0
Dae Myung Co., Ltd.		114		0.08	%		3		3		3
Nanomicart Co., Ltd.		176		1.06	%		35		35		35
Young San Heavy Industries Co., Ltd.		74		0.11	%		7		7		7
Samchungwon Co., Ltd.		15		0.24	%		2		2		2
Wooyang Frozen Foods Co., Ltd.		66		0.82	%		27		27		27
Nanomic Co., Ltd.		94		0.63	%		38		38		38
Samsung Nonferrous Metal Co., Ltd.		89		0.26	%		9		9		9
Daewha Fuel Pump Ind., Ltd.		83		0.05	%		10		10		10
HIC Co., Ltd.		7,408		0.71	%		111		111		111
Addies Direct Co., Ltd.		1		0.00	%		0		0		0
WorldCnM Inc.		131		1.09	%		10		10		10
Superone Co., Ltd.		1,585		1.45	%		8		8		8
Deok-u Co., Ltd.		1,626		1.92	%		195		195		195
Buyoung Panji Co., Ltd.		478		0.44	%		12		12		12
International Paint Korea Co., Ltd.		111		0.48	%		11		11		11
EI Lighting Co., Ltd.		358		0.36	%		18		18		18
Hightech Mnp Co., Ltd.		123		0.35	%		6		6		6
Dongjin Foundry Industry Co., Ltd.		966		4.10	%		193		193		193
Yooseung Co., Ltd.		10		0.08	%		1		1		1
Sungkwang Co., Ltd.		48		0.35	%		2		2		2
Taeyang Gasteel Co., Ltd.		8		0.02	%		1		1		1
Ajin KSB Co., Ltd.		204		0.31	%		18		18		18
Sewon Ceramic Co., Ltd.		530		1.01	%		5		5		5
Choyang Tech Co., Ltd.		465		1.01	%		23		23		23

F-58

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership			Acquisition cost		Book value		Fair value
						In millions of won
TK Co., Ltd.		307		0.70	%		15		15		15
Sungdo Co., Ltd.		130		1.10	%		52		52		52
KSM Tecj Co., Ltd.		25		0.11	%		1		1		1
Arari Co., Ltd.		14		0.05	%		1		1		1
Potech Co., Ltd.		39		0.13	%		14		14		14
C&S Corporation Co., Ltd.		1,304		0.01	%		13		13		13
Sungshin Parts Co., Ltd.		345		0.40	%		14		14		14
Global The One of Korea Co., Ltd.		62		0.06	%		3		3		3
Steellife Co., Ltd.		85		0.06	%		4		4		4
D&C Castech Co., Ltd.		330		1.89	%		25		25		25
Geumhan Co., Ltd.		498		0.24	%		7		7		7
Mokgan Co., Ltd.		5		0.02	%		1		1		1
Wenex Co., Ltd.		373		0.53	%		19		19		19
Sulim Co., Ltd.		30		0.20	%		6		6		6
Shinkwang Engineering Co., Ltd.		24		0.36	%		2		2		2
Ek Cookware Co., Ltd.		60		0.04	%		1		1		1
KTTW Co., Ltd.		28		0.05	%		2		2		2
Avajar Co., Ltd.		1,061		0.01	%		1		1		1
Koomin Precisions Co., Ltd.		124		0.26	%		12		12		12
Woosung I.B. Co.,Ltd		7,071		0.07	%		14		14		14
CAP Korea Co., Ltd.		16		0.30	%		3		3		3
MSM Co., Ltd.		25		0.08	%		0		0		0
Ddpopstyle Co., Ltd.		22		0.14	%		1		1		1
Finemetal Co., Ltd.		49		0.08	%		1		1		1
Sungkyeong Co., Ltd.		52		0.24	%		2		2		2
RMK Co., Ltd.		63		0.90	%		22		22		22
Tpp Co., Ltd.		36,645		11.72	%		1,832		1,832		1,832
Kuklim Plastic New Technology Co., Ltd.		393		0.29	%		8		8		8
Dukeong Metal Heat Treatment Co., Ltd.		843		3.61	%		84		84		84
Newko Co., Ltd.		331		0.06	%		10		10		10
KMC&R Co., Ltd.		16		0.11	%		1		1		1
Dongsung Mulsan Co., Ltd.		137		0.34	%		14		14		14
Pizzakorea Co., Ltd.		42		0.18	%		9		9		9
Geumdani Co., Ltd.		2,377		1.82	%		36		36		36
Mezzanine I-pack Co., Ltd.		38		0.02	%		1		1		1
Newclean Livestock Co., Ltd.		86		0.17	%		4		4		4
Ltop Co., Ltd.		36		0.06	%		7		7		7
Simile Aluminium Co., Ltd.		428		0.31	%		9		9		9
GT Tooling Co., Ltd.		604		0.17	%		6		6		6
Panax Korea Co., Ltd.		58		0.14	%		9		9		9
Team Korea Co., Ltd.		4,782		0.37	%		24		24		24
Donghwa TCA Co., Ltd.		1,012		0.30	%		25		25		25
Hankook Piaget Co., Ltd.		4		0.01	%		1		1		1
Coco Food Co., Ltd.		648		1.24	%		33		33		33
Woori Industry Co., Ltd.		102		1.05	%		21		21		21
Para Belleza Co., Ltd		1,211		1.74	%		74		74		74
Dongsung Co., Ltd.		1,983		1.63	%		198		198		198
Ssangyong Youngweol Plant Service&Engineering Co., Ltd.		83		0.07	%		4		4		4
SH Co., Ltd.		31		0.20	%		6		6		6

F-59

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2020
	Shares		Ownership				Acquisitioncost		Book value		Fair value
							In millions of won
Namsunnam Co., Ltd.		1,275		0.19	%			6		6		6
Daeyoung Co., Ltd.		75		0.01	%			8		8		8
Chandown Food Co., Ltd.		46		0.14	%			9		9		9
Getron Co., Ltd.		7,259		0.20	%			37		37		37
Jungmun Co., Ltd.		19		0.26	%			2		2		2
Andong Trading Corporation Co., Ltd.		42		0.00	%			2		2		2
JM Tech Co., Ltd.		403		0.67	%			82		82		82
SGC Energy Co., Ltd.		580,000		5.00	%			2,900		2,900		2,900
Ihsung CNI Co., Ltd.		13,526		18.22	%			3,000		3,000		3,000
H Robotics Co., Ltd.		9,192		4.55	%			1,000		1,000		1,000
Good Tcells Co., Ltd.		11,364		0.34	%			500		500		500
								275,496		163,890		163,890
						￦		634,823		358,559		358,559

(*1) The Company used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

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

F-60

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership				Acquisitioncost		Book value		Fair value
							In millions of won
Listed
Korea District Heating Corp.		2,264,068		19.55	%	￦		173,201		87,733		87,733
Ssangyong Motor Co., Ltd.		38,568		0.03	%			428		0		0
SM Korea Line Corp.		180		0.00	%			1		0		0
Namkwang Engineering & Construction Co., Ltd.		121		0.00	%			15		1		1
Bumyang Construction Co., Ltd.		35		0.00	%			2		0		0
Elcomtec Co., Ltd.		32,875		0.04	%			217		42		42
P an Ocean Co., Ltd.		1,492		0.00	%			14		8		8
STX Heavy Industries Co., Ltd.		7,419		0.03	%			107		35		35
Codes Combine Co., Ltd.		291		0.00	%			1		1		1
PT Adaro Energy Tbk.		480,000,000		1.50	%			65,028		89,747		89,747
Denison Mines Corp.		58,284,000		9.76	%			84,134		94,376		94,376
Fission Uranium Corp.		100,000		0.02	%			41		73		73
SangSangin Industry Co., Ltd.		5,831		0.01	%			38		6		6
Vitzosys Co., Ltd.		399		0.00	%			2		2		2
EMnI Co., Ltd.		628		0.00	%			25		2		2
Vissem electronics, Co., Ltd.		229		0.00	%			11		2		2
KC Industry Co., Ltd.		139		0.00	%			6		1		1
Ihsung CNI Co., Ltd.		142,860		4.81	%			1,500		1,779		1,779
Aone Alform Co., Ltd.		2,672		0.08	%			19		18		18
								324,790		273,826		273,826
Unlisted (*1)
Intellectual Discovery Co., Ltd.		1,000,000		6.00	%	￦		5,000		954		954
Hwan Young Steel Co., Ltd.		10,916		0.14	%			1,092		97		97
Sambo Auto . Co., Ltd.		15,066		0.02	%			38		38		38
Mobo Co., Ltd.		504		0.00	%			14		14		14
Dae Kwang Semiconductor Co., Ltd.		589		0.07	%			6		6		6
Sanbon Department Store		828		0.01	%			124		3		3
Miju Steel Mfg. Co., Ltd.		1,097		0.23	%			50		50		50
Sungwon Co., Ltd.		117		0.07	%			29		29		29
Imhwa Corp.		329		0.11	%			5		5		5
Dalim Special Vehicle Co., Ltd.		58		0.08	%			10		10		10
ASA Jeonju Co., Ltd.		34,846		1.34	%			697		69		69
Moonkyung Silica Co., Ltd.		42		0.56	%			0		0		0
Sungkwang Timber Co., Ltd.		3		0.08	%			5		5		5
HJ Steel Co., Ltd.		218		0.07	%			2		2		2
KS Remicon Co., Ltd.		12		0.04	%			3		3		3
Joongang Platec Co., Ltd.		3,591		0.75	%			72		35		35
Pyungsan SI Co., Ltd.		434		0.01	%			9		9		9
Samgong Development Co., Ltd.		12		0.01	%			7		7		7
Joongang Development Co., Ltd.		540		0.12	%			8		8		8
AJS Co., Ltd.		12,906		0.23	%			32		32		32
MSE Co., Ltd.		429		0.13	%			9		9		9
Ilrim Nano Tec Co., Ltd.		1,520		0.07	%			15		15		15
Youngjin Hi-Tech Co., Ltd.		11,109		0.25	%			255		150		150
Buyoung Co., Ltd.		270		0.00	%			3		3		3
Ilsuk Co., Ltd.		152		0.17	%			10		10		10
Zyle Daewoo Motor Sales Co., Ltd.		22		0.00	%			0		0		0
Daewoo Development Co., Ltd.		8		0.00	%			0		0		0
Seyang Inc.		537		0.05	%			27		27		27
Seungri Enterprise Co., Ltd.		93		0.05	%			3		3		3
Shin-E P&C Co., Ltd.		1,569		0.64	%			111		2		2
Ejung Ad Co., Ltd.		132		0.09	%			3		3		3

F-61

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisitioncost		Book value		Fair value
						In millions of won
Solvus Co., Ltd.		1,056		0.04	%		3		3		3
Myung Co., Ltd.		89		0.05	%		2		2		2
Biwang Industry Co., Ltd		406		0.04	%		2		2		2
Young Sung Co., Ltd.		89		0.40	%		26		26		26
Yuil Industrial Electronics Co., Ltd.		804		0.32	%		15		15		15
Woojin Industry Corporation		3		0.00	%		16		16		16
Kwang Sung Industry Co., Ltd.		325		0.35	%		7		7		7
Futech Mold Co., Ltd.		274		0.27	%		14		14		14
Woojoo Environment Ind. Co., Ltd.		101		0.11	%		13		13		13
Hyungji Esquire Co., Ltd.		61		0.02	%		22		22		22
Morado Co., Ltd.		209		0.04	%		2		2		2
Myung Sung Tex Co., Ltd.		20		0.00	%		2		2		2
Kwang Sung Co., Ltd.		610		0.53	%		31		31		31
Seen Business and Technology co., Ltd.		29,424		0.73	%		148		7		7
Woobang Construction Co., Ltd.		8		0.00	%		8		8		8
Shin Pyung Co., Ltd.		6		0.03	%		3		3		3
JMC Heavy Industries Co., Ltd.		2,724		0.10	%		27		2		2
Najin Steel Co., Ltd.		37		0.06	%		5		5		5
Sinkwang Industry Co., Ltd.		1,091		1.68	%		5		5		5
Elephant & Friends Co., Ltd.		563		0.61	%		3		3		3
Mireco Co., Ltd.		109		0.25	%		11		11		11
L&K Industry Co., Ltd.		1,615		0.60	%		24		24		24
JO Tech Co., Ltd.		1,263		0.62	%		25		25		25
Kendae Printing Co., Ltd.		422		0.60	%		21		21		21
Dauning Co., Ltd.		231		0.41	%		6		6		6
Korea Trecision Co., Ltd.		22		0.45	%		5		5		5
Ace Track Co., Ltd.		3,130		1.08	%		219		59		59
Dung Hwan Co., Ltd.		556		0.02	%		6		6		6
Hurim Biocell Co., Ltd.		1,021		0.00	%		5		5		5
Smart Power Co., Ltd.		133,333		4.14	%		200		200		200
Sunjin Power Tech Co., Ltd.		4,941		0.92	%		247		32		32
Beer Yeast Korea Inc.		1,388		0.43	%		7		7		7
B CON Co., Ltd.		96		1.16	%		6		6		6
Ace Integration Co., Ltd		105		0.09	%		24		24		24
AceInti Agricultural Co., Ltd.		16		0.02	%		5		5		5
KyungDong Co., Ltd.		130		0.01	%		1		1		1
ChunWon Development Co., Ltd.		193		0.19	%		39		39		39
SungLim Industrial Co., Ltd.		29		0.03	%		1		1		1
Korea Minerals Co., Ltd.		191		0.05	%		134		1		1
HyoDong Development Co., Ltd.		128		0.16	%		25		1		1
Haspe Tech Co., Ltd.		652		0.55	%		20		20		20
JoHyun Co., Ltd.		350		1.56	%		18		18		18
KC Co., Ltd.		5,107		0.17	%		26		26		26
SeongJi Industrial Co.,Ltd.		41		0.05	%		1		1		1
Seyang Precision Ind.Co., Ltd.		829		0.23	%		41		41		41
Dooriwon Food System Co., Ltd.		13		0.27	%		1		1		1
ShinShin Co., Ltd		339		1.12	%		17		17		17
Sung Kwang Co., Ltd.		23		0.37	%		6		6		6
Shinheung P etrol Co., Ltd.		699		0.14	%		35		35		35

F-62

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisitioncost		Book value		Fair value
						In millions of won
Force TEC Co., Ltd.		3,501		0.02	%		18		18		18
Samsung Tech Co., Ltd.		486		1.28	%		97		36		36
Younil Metal Co., Ltd.		41		0.21	%		21		21		21
CJ Paradise Co.,Ltd		24		0.02	%		12		12		12
Han Young Technology Company Co.,Ltd.		35		0.00	%		0		0		0
K Shipbuilding Co., Ltd. (formerly, STX Offshore & Shipbuilding Co., Ltd.)		8,622		0.25	%		1,078		1,078		1,078
Ptotronics Co., Ltd.		843		0.42	%		84		6		6
NFT Co., Ltd.		136		0.40	%		8		8		8
Hyundaitech Co.,Ltd.		1,363		0.87	%		27		27		27
Dasan Material Co., Ltd.		29		0.04	%		22		22		22
Fish World Co.,Ltd.		47		0.21	%		2		2		2
SG Shinsung Engineering and Construction Co., Ltd.		10		0.00	%		6		0		0
Samdo Industry Electric Co.,Ltd.		48		0.02	%		1		1		1
Taejung Industries Co.,Ltd.		9,268		0.30	%		5		5		5
Shinsei Trading Co., Ltd.		64		0.72	%		6		6		6
Dynamic Co., Ltd.		111		0.19	%		3		3		3
Green Alchemy Co.,Ltd.		38,202		1.48	%		191		17		17
Youone TBM Engineering & Construction Co., Ltd.		615		0.27	%		31		31		31
KM Leatech Co., Ltd.		1,648		0.98	%		8		8		8
Semist Co.,Ltd.		555		0.80	%		3		3		3
Sewon Bus Co.,Ltd		12		0.00	%		0		0		0
Enertec Co., Ltd.		7,937		0.19	%		44		44		44
Sangji Co., Ltd.		20		0.26	%		4		4		4
Bellie Doughnuts Co., Ltd.		169		0.19	%		10		10		10
Airtech Information communication Co., Ltd		2,379		0.60	%		12		12		12
Kiscom Co., Ltd.		1,493		0.04	%		1		1		1
Wonil laser Co., Ltd		157		0.37	%		16		16		16
Pyung Hwa Industrial Co.,Ltd.		3,388		3.00	%		85		85		85
Set Holding (*2)		1,100,220		2.50	%		229,255		131,036		131,036
PT. Cirebon Energi Prasarana		22,420		10.00	%		2,612		2,658		2,658
Choheung packing Co.,Ltd.		61		0.13	%		12		12		12
Jaewoo Co., Ltd.		359		0.24	%		11		11		11
Wooyang HC Co., Ltd		1,375		0.01	%		159		13		13
TheYeonriji Co., Ltd.		116		0.10	%		6		6		6
Flusys Co., Ltd.		9		0.08	%		2		2		2
DongSeo Electronics Co., Ltd.		347		0.07	%		16		17		17
Daewoo Display Co., Ltd.		177		0.03	%		5		5		5
NTS C o., Ltd.		143		0.22	%		36		36		36
AID C o ., Ltd.		1,212		0.57	%		36		36		36
Changwon Eco-friendly farming Corp.		3		0.01	%		0		0		0
Kumo Hitech Co., Ltd.		6,697		0.53	%		100		32		32
Kyung Pyo Industry Co., Ltd.		186		0.76	%		19		19		19
Daedong Industry Co., Ltd.		617		0.55	%		46		46		46
Doosung Heavy Industries Co., Ltd.		53		0.06	%		5		5		5
Samjoo Hightech Co., Ltd.		522		0.08	%		3		3		3
Samkwang Chemical Co., Ltd.		204		1.27	%		51		51		51
SG Corp.		213		0.54	%		21		21		21
Shinseung Chemical Industy Co., Ltd.		5		0.01	%		60		60		60
KJ Alloy Co., Ltd.		368		0.20	%		7		7		7
SM Hi-tech Co., Ltd.		22		0.39	%		22		22		22

F-63

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisitioncost		Book value		Fair value
						In millions of won
Puruen Environment Co., Ltd.		967		1.34	%		19		19		19
Miretech Co., Ltd.		9,111		0.27	%		18		18		18
Sejin Hightech Co., Ltd.		17,980		0.16	%		18		18		18
Eun Sung Enterprise Co., Ltd.		1,131		0.72	%		17		17		17
Dongdo Basalt Industry Co., Ltd.		182		1.50	%		73		73		73
Shinyoung Textiles Co., Ltd.		523		1.01	%		52		23		23
Ilwoo Steel Co., Ltd.		41		0.28	%		17		17		17
Dong-un Tech Co., Ltd.		1,159		6.28	%		81		81		81
Wongwang Door Corp.		575		1.00	%		29		29		29
Mansu Co.,Ltd.		344		0.25	%		15		15		15
Eanskorea Co., Ltd.		39		0.05	%		2		2		2
Youngdongseafood Co., Ltd.		165		0.33	%		8		8		8
Hyunwoo Winstar Co., Ltd.		1		0.00	%		0		0		0
Sehwa Diecasting Co., Ltd.		299		1.66	%		44		44		44
Sungchang Tech Co., Ltd.		159		0.31	%		10		10		10
Yuchang Industry Co., Ltd.		90		0.11	%		5		5		5
Jeongpum Co., Ltd.		322		0.35	%		16		16		16
Korea Steel Power Co., Ltd.		2,761		1.88	%		55		55		55
Amanex Co., Ltd.		10		0.02	%		9		9		9
Dae-A Leisure Co., Ltd.		23		0.00	%		4		4		4
Caffe Bene Co.,Ltd.		1,908		0.03	%		9		9		9
Shinjin International Corp.		4		0.01	%		1		1		1
Jinhung Packaging Co.,Ltd		4,329		3.02	%		22		22		22
Donglim Eng Co., Ltd.		26		0.11	%		3		3		3
SIP Co., Ltd.		274		0.55	%		7		7		7
Clizen Co., Ltd.		615		0.34	%		31		31		31
Daedong Millennium  Co., Ltd.		159		0.42	%		32		32		32
Daeji Product Co., Ltd.		15		0.05	%		1		0		0
Jaein Circuit Co., Ltd.		498		1.12	%		65		65		65
SSET Co., Ltd.		181		0.30	%		18		18		18
Sewon PM Tech Co., Ltd.		963		1.11	%		48		48		48
Dawon Yuhwa Co., Ltd.		506		1.94	%		25		25		25
Ogokbaekkwa Co., Ltd.		101		0.12	%		1		1		1
Shinwoo Toptech Co., Ltd.		834		0.51	%		83		6		6
KMLC Co., Ltd.		281		0.14	%		22		22		22
Seinfood Co., Ltd.		13		0.17	%		7		7		7
TaeSung Eco-Tech. Co., Ltd.		1,368		4.55	%		34		34		34
Kukex Inc.		639		0.05	%		3		3		3
Youngshin Plus Co., Ltd.		104		0.12	%		5		5		5
Chang won Engineering Co., Ltd.		22		0.00	%		4		4		4
Samsung Silup Co., Ltd.		47		0.19	%		5		5		5
Samwon Bio Tech Co., Ltd.		390		0.25	%		6		6		6
IZU K orea  Co., Ltd.		48		0.00	%		2		2		2
Dongdo CNP Co., Ltd.		234		0.36	%		6		6		6
Dae Bang Industry Co.,Ltd.		115		0.13	%		6		6		6
S.I.T. Co.,Ltd .		2,213		0.44	%		22		22		22
Taejin Hiech Co., Ltd.		78		0.26	%		3		3		3
Headone Co.,Ltd.		69		0.12	%		7		7		7
E-Won Solutech Co., Ltd.		158		0.16	%		40		40		40
MJT Co., Ltd.		1,013		0.20	%		51		51		51
KPL Circuit Co., Ltd.		283		0.08	%		14		14		14
Road Solar Co., Ltd.		12		0.00	%		0		0		0
Han Mi Flexible Co.,Ltd.		143		0.20	%		43		43		43
Samhwa Casting Co., Ltd.		200		0.04	%		100		100		100

F-64

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisitioncost		Book value		Fair value
						In millions of won
Millennium PNT Co., Ltd.		227		0.37	%		6		6		6
GN Chem Co., Ltd.		40		0.07	%		1		1		1
GW Industry Co., Ltd.		505		0.07	%		51		51		51
TM Construction Co., Ltd.		4		0.00	%		0		0		0
Dae Myung Co., Ltd.		114		0.08	%		3		3		3
Nanomicart Co., Ltd.		176		1.06	%		35		35		35
Young San Heavy Industries Co., Ltd.		74		0.11	%		7		7		7
Samchungwon Co., Ltd.		15		0.24	%		2		2		2
Wooyang Frozen Foods Co., Ltd.		66		0.82	%		27		27		27
Nanomic Co., Ltd.		94		0.63	%		38		38		38
Samsung Nonferrous Metal Co., Ltd.		89		0.26	%		9		9		9
Daewha Fuel Pump Ind., Ltd.		83		0.05	%		10		10		10
Addies Direct Co., Ltd.		1		0.00	%		0		0		0
WorldCnM Inc.		131		1.09	%		10		10		10
Superone Co., Ltd.		1,585		1.45	%		8		8		8
Buyoung Panji Co., Ltd.		478		0.44	%		12		12		12
International Paint Korea Co., Ltd.		111		0.48	%		11		11		11
EI Lighting Co., Ltd.		358		0.36	%		18		18		18
Hightech Mnp Co., Ltd.		123		0.35	%		6		6		6
Yooseung Co., Ltd.		10		0.08	%		1		1		1
Sungkwang Co., Ltd.		48		0.35	%		2		2		2
Taeyang G asteel Co., Ltd.		8		0.02	%		1		1		1
Ajin KSB Co., Ltd.		204		0.31	%		18		18		18
Sewon Ceramic Co., Ltd.		530		1.01	%		5		5		5
Choyang Tech Co., Ltd.		465		1.01	%		23		23		23
TK Co., Ltd.		307		0.70	%		15		15		15
Arari Co., Ltd.		14		0.05	%		1		1		1
Potech Co., Ltd.		39		0.13	%		14		14		14
C&S Corporation Co., Ltd.		1,304		0.01	%		13		13		13
Global The One of Korea Co., Ltd.		62		0.06	%		3		3		3
Steellife Co., Ltd.		85		0.06	%		4		4		4
D&C Castech Co., Ltd.		330		1.89	%		25		25		25
Geumhan Co., Ltd.		498		0.24	%		7		7		7
Mokgan Co., Ltd.		5		0.02	%		1		1		1
Wenex Co., Ltd.		373		0.53	%		19		19		19
Sulim Co., Ltd.		30		0.20	%		6		6		6
Shinkwang Engineering Co., Ltd.		24		0.36	%		2		2		2
Ek Cookware Co., Ltd.		60		0.04	%		1		1		1
KTTW Co., Ltd.		28		0.05	%		2		2		2
Avajar Co., Ltd.		1,061		0.01	%		1		1		1
Woosung I.B. Co.,Ltd		7,071		0.07	%		14		14		14
CAP Korea Co., Ltd.		16		0.30	%		3		3		3
MSM Co., Ltd.		25		0.08	%		0		0		0
Ddpopstyle Co., Ltd.		22		0.14	%		0		0		0
Finemetal Co., Ltd.		49		0.08	%		1		1		1
Sungkyeong Co., Ltd.		52		0.24	%		2		2		2
RMK Co., Ltd.		63		0.90	%		22		22		22
Tpp Co., Ltd.		36,645		11.72	%		1,832		1,832		1,832
Dukeong Metal Heat Treatment Co., Ltd.		843		3.61	%		84		84		84
Newko Co., Ltd.		331		0.06	%		10		10		10
KMC&R Co., Ltd.		16		0.11	%		1		1		1
Dongsung Mulsan Co., Ltd.		137		0.34	%		14		14		14
Pizzakorea Co., Ltd.		42		0.18	%		9		9		9

F-65

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisitioncost		Book value		Fair��value
						In millions of won
Geumdani Co., Ltd.		2,377		1.82	%		36		36		36
Mezzanine I-pack Co., Ltd.		38		0.02	%		1		1		1
Ltop Co., Ltd.		36		0.06	%		7		7		7
Simile Aluminium Co., Ltd.		428		0.31	%		9		9		9
GT Tooling Co., Ltd.		604		0.17	%		6		6		6
Team Korea Co., Ltd.		4,782		0.37	%		24		24		24
Donghwa TCA Co., Ltd.		1,012		0.30	%		25		25		25
Hankook Piaget Co., Ltd.		4		0.01	%		1		1		1
Coco Food Co., Ltd.		648		1.24	%		33		33		33
Woori Industry Co., Ltd.		102		1.05	%		21		21		21
Ssangyong Youngweol Plant Service&Engineering Co., Ltd.		83		0.07	%		4		1		1
SH Co., Ltd.		39		0.20	%		8		8		8
Namsunnam Co., Ltd.		1,275		0.19	%		6		1		1
Daeyoung Co., Ltd.		75		0.01	%		8		8		8
Chandown Food Co., Ltd.		46		0.14	%		9		9		9
Getron Co., Ltd.		7,259		0.20	%		37		4		4
Jungmun Co., Ltd.		19		0.26	%		2		2		2
Andong Trading Corporation Co., Ltd.		42		0.00	%		2		2		2
JM Tech Co., Ltd.		403		0.67	%		82		10		10
SGC Energy Co., Ltd.		580,000		5.00	%		2,900		2,900		2,900
Le Soleil KHNP LLC		137,600		19.00	%		1,376		1,376		1,376
Ihsung CNI Co., Ltd.		127,660		4.30	%		1,500		2,618		2,618
H Robotics Co., Ltd.		903,601		8.05	%		4,000		5,639		5,639
Good Tcells Co., Ltd.		11,364		0.34	%		500		457		457
IPS Bio Co., Ltd.		1,975		3.13	%		1,000		1,000		1,000
Nine B Co., Ltd.		5,000		4.96	%		1,000		1,000		1,000
Choigang-gujo Co., Ltd.		61		0.45	%		6		1		1
DS Cotec Co., Ltd.		973		0.71	%		15		5		5
Youngheung Industry Co., Ltd.		101		0.05	%		5		1		1
Hosungsteel Co., Ltd.		323		0.26	%		14		3		3
Uktae IND. Co., Ltd.		140		0.12	%		7		1		1
Gangdong R&S Co., Ltd.		69		1.25	%		1		1		1
JFC Co., Ltd.		16		0.01	%		2		2		2
Seokjin E&T Co., Ltd.		81		0.06	%		8		8		8
Hyundai Tech Co., Ltd.		28		0.69	%		10		10		10
Daeil Co., Ltd.		301		0.42	%		15		2		2
Seohan Food Co., Ltd.		83		0.19	%		2		2		2
Daehyeon Recycle Co., Ltd.		59		0.61	%		12		12		12
Metal Link Inc. Co., Ltd.		709		0.17	%		35		4		4
Pipetec Korea Co., Ltd.		50		0.07	%		10		1		1
SungJin Tech Co., Ltd.		803		1.20	%		24		8		8
Yujin E&C Co., Ltd.		29		0.18	%		6		0		0
Daishin Logistics Co., Ltd.		13		0.09	%		1		1		1
JinSung Engineering Co., Ltd.		18		0.30	%		18		18		18
Yongho Industry Co., Ltd.		157		0.22	%		32		1		1
Wow tech Co., Ltd.		369		0.75	%		11		11		11
World Power Tech Co., Ltd.		16		0.28	%		24		24		24
PBM Auto Co., Ltd.		1,001		1.06	%		10		10		10
K2 Motors Co., Ltd.		54		0.28	%		1		1		1
CL Tech Co., Ltd.		801		2.25	%		40		40		40
Mirae Industry Co., Ltd.		39		0.04	%		6		6		6
Gentak Korea Co., Ltd.		301		0.31	%		8		8		8

F-66

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisition cost		Book value		Fair value
						In millions of won
Sungjin Chemical Co., Ltd.		118		0.36	%		4		4		4
LMAT Co., Ltd.		198		0.04	%		20		20		20
Poong Lim Industrial Co., Ltd.		25		0.00	%		38		38		38
Dae Sung GeoTech Co., Ltd.		631		1.28	%		32		32		32
Saeheemang Co., Ltd.		756		0.60	%		15		15		15
Hakbong Precision Co., Ltd.		1,460		1.18	%		15		15		15
Vornech Co., Ltd.		431		0.37	%		11		2		2
Woojin Formtech Co., Ltd.		76		0.08	%		8		1		1
Korea Engineer Manufacturing Co., Ltd.		114		0.26	%		6		1		1
Sinwa J&K Co., Ltd.		476		0.28	%		5		5		5
Owon E&G Co., Ltd.		132		0.20	%		4		4		4
Guseong Co., Ltd.		141		0.20	%		4		4		4
Irefarm Co., Ltd.		45		0.30	%		3		3		3
Nam-hae E&C Co., Ltd.		117		0.10	%		2		2		2
Haenarae Agricultural Corp.		15		0.03	%		2		2		2
Ja Yeon Science Ind. Co., Ltd.		10		0.05	%		2		2		2
DECO&E Co., Ltd.		1,261		0.00	%		2		2		2
Design Beyond Co., Ltd.		17		0.19	%		2		2		2
LBK Co., Ltd.		8		0.05	%		1		1		1
Duckwon industrial Co., Ltd.		32		0.43	%		13		13		13
ASPT Co., Ltd.		64		0.82	%		19		19		19
SIMA Co., Ltd.		29		0.05	%		3		3		3
Jingkang Resources Co., Ltd.		90		1.57	%		13		13		13
Eslin Co., Ltd.		39		0.14	%		8		8		8
Shinwon Co., Ltd.		275		0.42	%		19		19		19
CIC Tech Co., Ltd.		96		0.54	%		10		10		10
Orano Expansion		5,742,405		4.72	%		0		0		0
Fourever Co., Ltd.		44		0.10	%		4		4		4
Segyo Hitech Co., Ltd.		156		0.24	%		8		8		8
Myungil Metal Co., Ltd.		80		0.10	%		4		4		4
Daeshin ECM Co., Ltd.		182		0.30	%		9		9		9
Greencarbon Co., Ltd.		79		0.06	%		1		1		1
Sunkoo Co., Ltd.		4		0.10	%		2		2		2
Jians Construction Co., Ltd.		13		0.00	%		2		2		2
DH trading Co., Ltd.		891		0.04	%		178		178		178
Diotech Co., Ltd.		2,186		2.84	%		219		219		219
Sangsin Co., Ltd.		29		0.09	%		15		15		15
Steel focus Co., Ltd.		154		0.20	%		4		4		4
Kamada Korea Co., Ltd.		437		0.33	%		22		22		22
Fosys Co., Ltd.		19		0.08	%		4		4		4
GB precision Co., Ltd.		137		0.57	%		1		1		1
Ewon Art Co., Ltd.		185		0.61	%		9		9		9
DI Tech Co., Ltd.		3		0.00	%		0		0		0
Hans AD Co., Ltd.		33		0.35	%		2		2		2

F-67

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership			Acquisition cost		Book value		Fair value
						In millions of won
Chaegim Environment Development Co., Ltd.		158		0.01	%		3		3		3
Daesung Stain Co., Ltd.		32		0.32	%		2		2		2
YSM Co., Ltd.		281		2.07	%		14		14		14
Dong In Industry Co., Ltd.		65		0.13	%		3		3		3
U&I Co., Ltd.		50		0.22	%		5		5		5
World One Co., Ltd.		401		0.58	%		10		10		10
Yewon Co., Ltd.		24		0.02	%		1		0		0
Seeun P&P Co., Ltd.		163		0.48	%		33		33		33
TSNT Co., Ltd.		119		0.00	%		24		24		24
Shinsung Tech Co., Ltd.		314		0.01	%		16		16		16
JSL Co., Ltd.		51		0.49	%		3		3		3
Loft Garden Co., Ltd.		1		0.04	%		0		0		0
Handon Co., Ltd.		74		0.25	%		11		11		11
GH Tech Co., Ltd.		82		0.22	%		3		3		3
Daeo Co., Ltd.		13		0.23	%		4		4		4
Bokwang Co., Ltd.		76		0.00	%		15		15		15
Samkum Industry Co., Ltd.		201		0.48	%		40		40		40
Dyntex Korea Co., Ltd.		75		0.28	%		15		15		15
IGSP Co., Ltd.		17,662		0.21	%		18		18		18
Mirae Engineering Co., Ltd.		66		0.15	%		1		1		1
Mideumeul-juneun-namu Co., Ltd.		119		0.53	%		6		6		6
Leagis Co., Ltd.		829		1.38	%		66		66		66
Seil Textile Co., Ltd.		16		0.15	%		3		3		3
Ilshin Tech Co., Ltd.		36		0.00	%		7		7		7
Magtec Co., Ltd.		28		0.00	%		6		6		6
Sukwon Co., Ltd.		2,885		0.59	%		29		29		29
Hae-sung Metal Co., Ltd.		159		0.17	%		3		3		3
White&Clean Foods Co., Ltd.		330		0.00	%		3		3		3
Michang Cable Co., Ltd.		861		0.13	%		4		4		4
G.M Foods Co., Ltd.		57		0.16	%		9		9		9
Wecan Global Inc. Co., Ltd.		165		0.08	%		8		8		8
Daeju Steel Co., Ltd.		11		0.20	%		1		1		1
Hyundai Glass Co., Ltd.		860		0.83	%		43		43		43
MEC Co., Ltd.		16,468		1.17	%		41		41		41
Daeyeoneco Co., Ltd.		151		0.00	%		15		15		15
Hyesung Cable&Communication Inc.		762		0.39	%		38		38		38
Sangjin Co., Ltd.		428		0.35	%		21		21		21
Topis Co., Ltd.		246		0.71	%		14		14		14
G&L Tech Co., Ltd.		2		0.06	%		0		0		0
Cheonhae Co., Ltd.		72		0.00	%		2		2		2
Iksan-guwon Co., Ltd.		563		0.00	%		11		11		11
Korea Remicon Co., Ltd.		36		0.03	%		5		5		5
New Tech Co., Ltd.		23		0.15	%		2		2		2
Segeon Co., Ltd.		124		0.00	%		4		4		4

F-68

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

10. Financial Assets at Fair Value through Other Comprehensive Income, Continued

(2) Financial assets at fair value through other comprehensive income as of December 31, 2020 and 2021 are as follows, continued:

	2021
	Shares		Ownership				Acquisition cost		Book value		Fair value
							In millions of won
MS Tech Co., Ltd.		9		0.15	%			1		1		1
J.I Steel Co., Ltd.		21		0.00	%			2		2		2
HNT Co., Ltd.		172		0.00	%			9		9		9
Taejin Co., Ltd.		27		0.08	%			3		3		3
Macroad Co., Ltd.		953		0.17	%			10		10		10
Jinsung Electronics Co., Ltd.		69		1.41	%			14		14		14
Woongjin Energy Co., Ltd.		94		0.00	%			9		9		9
Electric Contractors’ Financial Cooperative Co., Ltd.		0		0.00	%			38		38		38
Information&Communication Financial Cooperative Co., Ltd.		0		0.00	%			15		15		15
Common Computer Co., Ltd.		3,856		1.87	%			1,000		1,000		1,000
Fine Powerex Co., Ltd.		72,633		4.92	%			1,500		1,500		1,500
								263,904		160,790		160,790
Debt securities
Aron Flying Ship Co., Ltd.(*1)								500		491		491
						￦		589,194		435,107		435,107

(*1) The Company used initial cost as their fair value because there was not enough information to determine fair value, and the range of the estimated fair value is wide.

(*2) The Company has estimated the fair value of Set Holding by using the discounted cash flow method and has recognized the difference between its fair value and book value as gain or loss on valuation of financial assets at FVOCI in other comprehensive income or loss during the year ended December 31, 2021.

F-69

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

11. Financial Assets at Amortized Cost

Financial assets at amortized cost as of December 31, 2020 and 2021 are as follows:

		2020
		Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value
		In millions of won
Government bonds	￦		1,422		0		0		0		1,422
Others			13,000		0		0		0		13,000
	￦		14,422		0		0		0		14,422
Current	￦		13,149		0		0		0		13,149
Non-current			1,273		0		0		0		1,273
		2021
		Financial assets at amortized cost		Government grants		Allowance for doubtful accounts		Others		Book value
		In millions of won
Government bonds	￦		1,308		0		0		0		1,308
Others			23,965		0		0		0		23,965
	￦		25,273		0		0		0		25,273
Current	￦		15,422		0		0		0		15,422
Non-current			9,851		0		0		0		9,851

F-70

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

12. Derivatives

(1) Derivatives as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Derivative assets
Currency forward	￦		18,332		0		559		6,899
Currency swap			11,193		127,386		125,877		506,957
—Trading			0		82,931		92,313		335,765
—Hedging			11,193		44,455		33,564		171,192
Interest rate swap			0		9,502		502		6,980
—Trading			0		9,502		502		6,980
—Hedging			0		0		0		0
Others			0		0		0		9
	￦		29,525		136,888		126,938		520,845
Derivative liabilities
Currency forward	￦		10,014		4,977		301		0
Currency swap			36,088		232,669		4,446		16,708
—Trading			0		93,245		4,446		15,576
—Hedging			36,088		139,424		0		1,132
Interest rate swap			3,782		66,451		2,544		28,138
—Trading			2,192		22,687		174		2,829
—Hedging			1,590		43,764		2,370		25,309
Others (*1,2,3)			0		11,138		0		25,894
	￦		49,884		315,235		7,291		70,740

(*1) The Company has an obligation to settle the convertible preferred stock to financial investors pursuant to the settlement contract with Samcheok Eco Materials Co., Ltd. and the fair value of the obligation is recorded in ‘Others’.

(*2) The Company has granted stock option to Chester Solar IV SpA, a joint venture of the Company, and 4 other third party investors, and recognized its fair value as other derivative liabilities.

(*3) The Company has an obligation to purchase the shares of Hyundai Green Power Co., Ltd., an associate of the Company from financial investors, and the fair value of the obligation is recorded in ‘Others’.

F-71

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

12. Derivatives, Continued

(2) Currency forward contracts which are not designated as hedging instruments as of December 31, 2021 are as follows:

	Contract date		Maturity date		Contract amounts						Contract exchange rate (in won)
Counterparty						Pay		Receive
	In millions of won and thousands of USD except contract exchange rate information
Korea Development Bank		2021.09.27		2022.01.07	￦		59,049		USD 50,050	￦		1,179.80
Shinhan Bank		2021.12.13		2022.01.04			17,354		USD 14,720			1,178.95
Hana Bank		2021.12.24		2022.01.11			1,185		USD 1,000			1,185.35
Hana Bank		2021.12.30		2022.01.06			11,840		USD 10,004			1,183.53
Kookmin Bank		2021.12.23		2022.01.14			11,869		USD 10,000			1,186.92
Mizuho Bank		2021.12.27		2022.01.17			11,862		USD 10,000			1,186.20
Morgan Stanley		2021.12.24		2022.01.13			11,865		USD 10,000			1,186.50
Nonghyup Bank		2021.12.10		2022.01.03			11,746		USD 10,000			1,174.60
Nonghyup Bank		2021.12.30		2022.01.18			11,880		USD 10,000			1,188.00
Nonghyup Bank		2021.12.23		2022.01.12			5,921		USD 5,000			1,184.10
Standard Chartered		2021.12.24		2022.01.13			11,796		USD 10,000			1,179.62
Woori Bank		2021.12.16		2022.01.13			8,985		USD 7,590			1,183.90
Woori Bank		2021.12.29		2022.01.20			11,870		USD 10,000			1,187.00
JP Morgan		2021.12.23		2022.01.04			14,243		USD 12,000			1,186.88
JP Morgan		2021.12.23		2022.01.04			6,532		USD 5,500			1,187.68
HSBC		2021.12.30		2022.01.07			16,601		USD 14,000			1,185.77
JP Morgan		2021.12.30		2022.01.07			16,601		USD 14,000			1,185.82
Nonghyup Bank		2021.12.23		2022.01.10			11,871		USD 10,000			1,187.10
Standard Chartered		2021.12.23		2022.01.12			10,690		USD 9,000			1,187.80
Mizuho Bank		2021.12.29		2022.01.03			5,932		USD 5,000			1,186.40
JP Morgan		2021.12.29		2022.01.03			4,744		USD 4,000			1,186.00
HSBC		2021.12.29		2022.01.20			5,936		USD 5,000			1,187.14
HSBC		2021.12.30		2022.01.21			17,771		USD 15,000			1,184.70
MUFG		2021.12.30		2022.01.25			5,925		USD 5,000			1,184.90
HSBC		2020.10.19		2024.10.29			140,913		USD 125,000			1,127.30
HSBC		2021.11.30		2022.01.07			5,939		USD 5,000			1,187.70
HSBC		2021.11.30		2022.01.07			5,934		USD 5,000			1,186.70
HSBC		2021.11.30		2022.01.07			5,929		USD 5,000			1,185.70
Woori Bank		2021.12.01		2022.01.07			11,856		USD 10,000			1,185.55
Woori Bank		2021.12.29		2022.01.28			11,885		USD 10,000			1,188.50
MUFG		2021.12.29		2022.01.28			11,876		USD 10,000			1,187.55
Woori Bank		2021.12.30		2022.01.28			11,852		USD 10,000			1,185.20
Woori Bank		2021.12.23		2022.02.18			8,316		USD 7,000			1,188.00
HSBC		2021.12.29		2022.02.18			11,880		USD 10,000			1,188.00
Shinhan Bank		2021.12.24		2022.02.25			5,938		USD 5,000			1,187.50
Hana Bank		2021.12.24		2022.02.25			5,935		USD 5,000			1,186.99
Standard Chartered		2021.12.29		2022.02.25			11,885		USD 10,000			1,188.50
MUFG		2021.12.17		2022.03.18			259		USD 219			1,183.74

F-72

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

12. Derivatives, Continued

(3) Currency swap contracts which are not designated as hedging instruments as of December 31, 2021 are as follows:

	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won, USD)
Counterparty				Pay		Receive		Pay	Receive
	In millions of won and thousands of foreign currencies except contract exchange rate information
Standard Chartered		2014~2029	￦		102,470		USD 100,000	3.14%	3.57%	￦		1,024.70
Societe Generale		2014~2024			105,017		USD 100,000	4.92%	5.13%			1,050.17
Hana Bank		2015~2024			107,970		USD 100,000	4.75%	5.13%			1,079.70
Credit Agricole		2015~2024			94,219		USD 86,920	4.85%	5.13%			1,083.97
Woori Bank		2019~2027			21,708		USD 19,417	5.04%	6.75%			1,118.00
Woori Bank		2019~2024			296,000		USD 250,000	1.21%	2.50%			1,184.00
Korea Development Bank		2019~2024			177,600		USD 150,000	1.24%	2.50%			1,184.00
Hana Bank		2019~2024			118,400		USD 100,000	1.24%	2.50%			1,184.00
Woori Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%			1,206.60
Korea Development Bank		2020~2025			241,320		USD 200,000	0.54%	1.13%			1,206.60
Kookmin Bank		2020~2025			120,660		USD 100,000	0.54%	1.13%			1,206.60
Kookmin Bank		2020~2026			76,355		USD 70,445	5.83%	6.00%			1,083.90
Woori Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
Korea Development Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
Hana Bank		2021~2026			118,170		USD 100,000	1.11%	1.13%			1,181.70
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
Woori Bank		2021~2026			222,800		USD 200,000	0.93%	1.25%			1,114.00
Shinhan Bank		2021~2026			111,400		USD 100,000	0.92%	1.25%			1,114.00
Korea Development Bank		2021~2026			111,400		USD 100,000	0.93%	1.25%			1,114.00
Nonghyup Bank		2021~2026			111,400		USD 100,000	0.93%	1.25%			1,114.00
HSBC		2019~2024			USD 205,500		AUD 300,000	3M Libor + 0.78%	3M BBSW + 0.97%			USD 0.69

F-73

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

12. Derivatives, Continued

(4) Currency swap contracts which are designated as hedging instruments as of December 31, 2021 are as follows:

Counterparty	Contract year			Contract amount				Contract interest rate			Contract exchange rate (in won)
				Pay		Receive		Pay	Receive
	In millions of won and thousands of foreign currencies except contract exchange rate information
Kookmin Bank		2020~2025	￦		118,780		USD 100,000	1.29%	2.13%	￦		1,187.80
Shinhan Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Hana Bank		2020~2025			118,780		USD 100,000	1.29%	2.13%			1,187.80
Korea Development Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Hana Bank		2020~2026			118,910		USD 100,000	0.61%	1.00%			1,189.10
Woori Bank		2020~2026			118,910		USD 100,000	0.62%	1.00%			1,189.10
Nomura		2017~2037			52,457		EUR 40,000	2.60%	1.70%			1,311.42
Nomura		2017~2037			59,423		SEK 450,000	2.62%	2.36%			132.05
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
Kookmin Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Korea Development Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Hana Bank		2021~2026			114,230		USD 100,000	1.27%	1.25%			1,142.30
Korea Development Bank		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
Woori Bank		2021~2026			220,600		USD 200,000	0.47%	0.75%			1,103.00
Shinhan Bank		2021~2026			220,600		USD 200,000	0.47%	0.75%			1,103.00
Hana Bank		2021~2026			55,150		USD 50,000	0.48%	0.75%			1,103.00
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
Woori Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Hana Bank		2020~2025			245,560		USD 200,000	0.93%	1.75%			1,227.80
Korea Development Bank		2020~2025			122,780		USD 100,000	0.93%	1.75%			1,227.80

F-74

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

12. Derivatives, Continued

(5) Interest rate swap contracts which are not designated as hedging instruments as of December 31, 2021 are as follows:

Counterparty	Contract year		Contract amount		Contract interest rate per annum
					Pay	Receive
				In millions of won
Hana Bank		2017~2022	￦	100,000	2.01%	3M CD + 0.24%
Hana Bank		2017~2022		100,000	2.06%	3M CD + 0.27%
Nomura (*1)		2018~2038		30,000	2.56%	3.75%
Hana Bank		2018~2023		200,000	2.15%	3M CD + 0.19%
Hana Bank		2018~2023		200,000	2.17%	3M CD + 0.19%
Hana Bank		2018~2023		150,000	2.03%	3M CD + 0.21%
Hana Bank		2019~2024		200,000	1.87%	3M CD + 0.13%
Shinhan Bank		2021~2025		100,000	2.32%	3M CD + 0.43%
Societe Generale		2017~2022		200,000	3M Libor + 3.44%	3.77%
Nomura		2017~2032		52,457	3M Libor + 2.22%	2.60%
Nomura		2017~2032		59,423	3M Libor + 2.24%	2.62%
Nomura (*2)		2021~2041		30,000	1.84%	2.60%
Nomura (*3)		2021~2041		50,000	1.87%	2.38%

(*1) 2.56% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CD + 0.10% is applied thereafter. Depending on the counterparty exercising the right, the contract may be early settled on the same date every year from June 15, 2023.

(*2) 1.84% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(*3) 1.87% of the contract paying interest rate is applied for five years from the date of issuance, and 3M CMT + 0.35% is applied thereafter.

(6) Interest rate swap contracts which are designated as hedging instruments as of December 31, 2021 are as follows:

Counterparty	Contract year		Contract amount		Contract interest rate per annum
					Pay	Receive
			In thousands of USD
Export-Import Bank of Korea		2015~2031		USD 15,893	2.67%		6M USD Libor
ING Bank		2015~2031		USD 7,861	2.67%		6M USD Libor
BNP Paribas		2015~2031		USD 7,861	2.67%		6M USD Libor
BNP Paribas		2009~2027		USD 60,316	4.16%		6M USD Libor
KFW		2009~2027		USD 60,316	4.16%		6M USD Libor
Export-Import Bank of Korea		2016~2036		USD 71,116	3.00%		6M USD Libor

(7) Gain and loss on valuation and transaction of derivatives for the years ended December 31, 2019, 2020 and 2021 are as follows and included in finance income and expenses in the consolidated statements of comprehensive income (loss):

		Net income effects of valuation gain (loss)									Net income effects of transaction gain (loss)									Other comprehensive income (loss) (*)
		2019			2020			2021			2019			2020			2021			2019			2020		2021
		In millions of won
Currency forward	￦		24,265			(40,590	)		33,066			12,488			(17,911	)		33,032			0			0		0
Currency swap			310,732			(406,607	)		787,264			110,813			93,557			61,353			38,802			105,642		(59,108	)
- Trading			172,087			(108,090	)		420,551			52,842			16,661			16,265			0			0		0
- Hedging			138,645			(298,517	)		366,713			57,971			76,896			45,088			38,802			105,642		(59,108	)
Interest rate swap			(16,231	)		(1,845	)		18,123			(36,886	)		(10,253	)		(10,303	)		(3,075	)		5,578		18,648
- Trading			(15,647	)		(309	)		18,123			(2,495	)		(11,975	)		(10,303	)		0			0		0
- Hedging			(584	)		(1,536	)		0			(34,391	)		1,722			0			(3,075	)		5,578		18,648
Other derivatives			(1,416	)		(6,673	)		(15,459	)		0			0			0			0			0		0
	￦	317,350			(455,715)			822,994			86,415			65,393			84,082			35,727			111,220		(40,460)

(*) For the year ended December 31, 2021, the net loss on valuation of derivatives applying cash flow hedge accounting of ￦15,778 million, net of tax, is included in other comprehensive income (loss).

F-75

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

13. Other Financial Assets

(1) Other financial assets as of December 31, 2020 and 2021 are as follows:

			2020						2021
			Current			Non-current			Current			Non-current
			In millions of won
Loans	￦			78,806			762,555			88,406			903,397
Less: Allowance for doubtful accounts				(1	)		(20,266	)		(10	)		(52,667	)
Less: Present value discount				(842	)		(30,090	)		(807	)		(29,248	)
				77,963			712,199			87,589			821,482
Long-term / short-term financial instruments				1,483,482			578,621			1,278,014			450,494
		￦		1,561,445			1,290,820			1,365,603			1,271,976

(2) Loans as of December 31, 2020 and 2021 are as follows:

		2020
		Face value		Allowance for doubtful accounts			Present value discount			Carrying value
		In millions of won
Short-term loans
Loans for tuition	￦		33,864		0			(842	)		33,022
Loans for housing			21,988		0			0			21,988
Fisheries loan			3,816		0			0			3,816
Other loans			19,138		(1	)		0			19,137
			78,806		(1	)		(842	)		77,963
Long-term loans
Loans for tuition			420,274		(9,091	)		(30,090	)		381,093
Loans for housing			237,100		0			0			237,100
Loans for related parties			50,682		(1,047	)		0			49,635
Other loans			54,499		(10,128	)		0			44,371
			762,555		(20,266	)		(30,090	)		712,199
	￦		841,361		(20,267	)		(30,932	)		790,162
		2021
		Face value		Allowance for doubtful accounts			Present value discount			Carrying value
		In millions of won
Short-term loans
Loans for tuition	￦		28,975		0			(807	)		28,168
Loans for housing			25,750		0			0			25,750
Other loans			33,681		(10	)		0			33,671
			88,406		(10	)		(807	)		87,589
Long-term loans
Loans for tuition			431,002		(37,783	)		(29,248	)		363,971
Loans for housing			282,833		0			0			282,833
Loans for related parties			150,541		(14,861	)		0			135,680
Fisheries loan			203		0			0			203
Other loans			38,818		(23	)		0			38,795
			903,397		(52,667	)		(29,248	)		821,482
	￦		991,803		(52,677	)		(30,055	)		909,071

F-76

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

13. Other Financial Assets, Continued

(3) Changes in the allowance for doubtful accounts of loans for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Beginning balance	￦		4,952		15,094		20,267
Bad debt expense			10,142		5,173		30,942
Other			0		0		1,468
Ending balance	￦		15,094		20,267		52,677

(4) Long-term and short-term financial instruments as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Time deposits	￦		996,265		160,433		976,899		103,607
CD			50,000		0		0		0
RP			203,008		0		0		0
Others			234,209		418,188		301,115		346,887
	￦		1,483,482		578,621		1,278,014		450,494

F-77

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

14. Inventories

Inventories as of December 31, 2020 and 2021 are as follows:

		2020
		Acquisition cost		Valuation allowance			Book value
		In millions of won
Raw materials	￦		3,602,073		(885	)		3,601,188
Merchandises			234		0			234
Work-in-progress			148,067		0			148,067
Finished goods			42,070		0			42,070
Supplies			2,280,682		(7,892	)		2,272,790
Inventories-in-transit			666,967		0			666,967
Other inventories			11,593		0			11,593
	￦		6,751,686		(8,777	)		6,742,909
		2021
		Acquisition cost		Valuation allowance			Book value
		In millions of won
Raw materials	￦		3,655,588		(1,247	)		3,654,341
Merchandises			512		0			512
Work-in-progress			180,220		0			180,220
Finished goods			27,254		0			27,254
Supplies			2,541,028		(3,869	)		2,537,159
Inventories-in-transit			1,195,148		0			1,195,148
Other inventories			13,548		0			13,548
	￦		7,613,298		(5,116	)		7,608,182

The reversals of the allowance for loss on inventory valuation due to increase in the net realizable value of inventories deducted from cost of sales for the years ended December 31, 2019, 2020 and 2021 were ￦4,872 million, ￦2,020 million and ￦11,422 million, respectively.

The amounts of loss from inventory valuation included in other gains or losses for the years ended December 31, 2019, 2020 and 2021 were ￦3,127 million, ￦4,998 million and ￦7,761 million, respectively.

F-78

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

15. Non-Financial Assets

Non-financial assets as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Advanced payments	￦		169,737		32,693		161,466		124,305
Prepaid expenses			216,073		140,730		756,729		151,095
Others (*1)			634,348		72,969		840,796		89,418
	￦		1,020,158		246,392		1,758,991		364,818
(*1)  Details of others as of December 31, 2020 and 2021 are as follows:
		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Greenhouse gas emissions rights	￦		357,355		0		524,658		0
Other quick assets			276,993		72,969		316,138		89,418
	￦		634,348		72,969		840,796		89,418

F-79

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries

(1) Consolidated subsidiaries as of December 31, 2020 and 2021 are as follows:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2020			2021
Korea Hydro & Nuclear Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea South-East Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Midland Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Western Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea Southern Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Korea East-West Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KEPCO Engineering & Construction Company, Inc.(*1)	Engineering and construction for utility plant and others	Korea		65.77	%		65.77	%
KEPCO Plant Service & Engineering Co., Ltd.	Utility plant maintenance and others	Korea		51.00	%		51.00	%
KEPCO Nuclear Fuel Co., Ltd.	Nuclear fuel	Korea		96.36	%		96.36	%
KEPCO KDN Co., Ltd.	Electric power information technology and others	Korea		100.00	%		100.00	%
KEPCO International HongKong Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO International Philippines Inc.	Holding company	Philippines		100.00	%		100.00	%
KEPCO Gansu International Ltd.	Holding company	Hong Kong		100.00	%		100.00	%
KEPCO Philippines Holdings Inc.	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	%		0
KEPCO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSEP Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KEPCO Middle East Holding Company	Holding company	Bahrain		100.00	%		100.00	%
Qatrana Electric Power Company	Construction and operation of utility plant	Jordan		80.00	%		80.00	%
KHNP Canada Energy Ltd.	Holding company	Canada		100.00	%		100.00	%
KEPCO Bylong Australia Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
Korea Waterbury Uranium Limited Partnership	Resources development	Canada		80.00	%		80.00	%
KEPCO Holdings de Mexico	Holding company	Mexico		100.00	%		100.00	%
KST Electric Power Company, S.A.P.I. de C.V.	Construction and operation of utility plant	Mexico		56.00	%		56.00	%
KEPCO Energy Service Company	Operation of utility plant	Mexico		100.00	%		100.00	%
KEPCO Netherlands S3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
PT. KOMIPO Pembangkitan Jawa Bali	Operation of utility plant	Indonesia		51.00	%		51.00	%
PT. Cirebon Power Service(*2)	Operation of utility plant	Indonesia		27.50	%		27.50	%
KOWEPO International Corporation	Operation of utility plant	Philippines		99.99	%		99.99	%
KOSPO Jordan LLC	Operation of utility plant	Jordan		100.00	%		100.00	%
EWP America Inc.	Holding company	USA		100.00	%		100.00	%
EWP Renewable Corporation	Holding company	USA		100.00	%		100.00	%
DG Fairhaven Power, LLC	Power generation	USA		100.00	%		0
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	%		0
PT. EWP Indonesia	Holding company	Indonesia		99.96	%		99.96	%
KEPCO Netherlands J3 B.V.	Holding company	Netherlands		100.00	%		100.00	%
Korea Offshore Wind Power Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Global One Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Global Energy Pioneer B.V.	Holding company	Netherlands		100.00	%		100.00	%
Mira Power Limited(*3)	Power generation	Pakistan		76.00	%		76.00	%

F-80

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of December 31, 2020 and 2021 are as follows, continued:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2020			2021
KOSEP Material Co., Ltd.	Recycling fly ashes	Korea		86.22	%		86.22	%
Commerce and Industry Energy Co., Ltd.(*4)	RDF power generation	Korea		85.03	%		85.03	%
KEPCO KPS Philippines Corp.	Utility plant maintenance and others	Philippines		99.99	%		99.99	%
KOSPO Chile SpA	Holding company	Chile		100.00	%		100.00	%
PT. KOWEPO Sumsel Operation And Maintenance Services	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
Hee mang sunlight Power Co., Ltd.	Operation of utility plant	Korea		100.00	%		100.00	%
Fujeij Wind Power Company	Operation of utility plant	Jordan		100.00	%		100.00	%
KOSPO Youngnam Power Co., Ltd.(*5)	Operation of utility plant	Korea		50.00	%		50.00	%
VI Carbon Professional Private Special Asset Investment Trust 1	Holding company	Korea		96.67	%		0
Chitose Solar Power Plant LLC	Power generation	Japan		80.10	%		65.00	%
KEPCO Energy Solution Co., Ltd.	Energy service	Korea		100.00	%		100.00	%
KEPCO Solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
KOSPO Power Services Ltda.	Utility plant maintenance and others	Chile		65.00	%		65.00	%
Energy New Industry Specialized Investment Private Investment Trust	Holding company	Korea		99.01	%		99.01	%
KOEN Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOMIPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOSPO Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
EWP Bylong Pty., Ltd.	Resources development	Australia		100.00	%		100.00	%
KOWEPO Lao International	Utility plant maintenance and others	Laos		100.00	%		100.00	%
KEPCO US Inc.	Holding company	USA		100.00	%		100.00	%
KEPCO Alamosa LLC	Holding company	USA		50.10	%		50.10	%
KEPCO Solar of Alamosa LLC	Power generation	USA		100.00	%		100.00	%
KEPCO Mangilao Holdings LLC(*6)	Holding company	USA		100.00	%		100.00	%
Mangilao Investment LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mangilao Solar, LLC	Power generation	USA		100.00	%		100.00	%
Jeju Hanlim Offshore Wind Co., Ltd.	Power generation	Korea		75.99	%		79.03	%
PT. Siborpa Eco Power	Construction and operation of utility plant	Indonesia		55.00	%		55.00	%
BSK E-New Industry Fund VII	Holding company	Korea		81.67	%		81.67	%
e-New Industry LB Fund 1	Holding company	Korea		76.11	%		76.11	%
Songhyun e-New Industry Fund	Holding company	Korea		80.65	%		80.65	%
BSK E-New Industry Fund X	Holding company	Korea		66.80	%		66.80	%
PT. Korea Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KOLAT SpA	Utility plant maintenance and others	Chile		100.00	%		100.00	%
KEPCO California, LLC	Holding company	USA		100.00	%		100.00	%
KEPCO Mojave Holdings, LLC	Holding company	USA		100.00	%		100.00	%
Incheon Fuel Cell Co., Ltd.	Power generation	Korea		60.00	%		60.00	%
KOEN Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOMIPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOWEPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
EWP Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
PT. KOMIPO Energy Indonesia	Utility plant maintenance and others	Indonesia		95.00	%		95.00	%
KNF Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOSPO USA Inc.	Holding company	USA		100.00	%		100.00	%
Nambu USA LLC	Holding company	USA		100.00	%		100.00	%
Tamra Offshore Wind Power Co., Ltd.	Power generation	Korea		63.00	%		63.00	%
KEPCO MCS Co., Ltd.	Electric meter reading and others	Korea		100.00	%		100.00	%
KEPCO FMS Co., Ltd.	Security service and others	Korea		100.00	%		100.00	%
Firstkeepers Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Secutec Co., Ltd.	Security service	Korea		100.00	%		100.00	%
SE Green Energy Co., Ltd.	Power generation	Korea		84.80	%		84.80	%
KEPCO Mangilao America LLC(*7)	Holding company	USA		100.00	%		100.00	%
Mangilao Intermediate Holdings LLC	Holding company	USA		100.00	%		100.00	%
KEPCO CSC Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KOAK Power Limited	Hydro power facility maintenance	Pakistan		100.00	%		100.00	%
KOMIPO Europe B.V.	Holding company	Netherlands		100.00	%		100.00	%
Haenanum Energy Fund	Holding company	Korea		99.64	%		99.64	%

F-81

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of December 31, 2020 and 2021 are as follows, continued:

			Percentage of ownership (%)
Subsidiaries	Key operation activities	Location	2020			2021
Paju Ecoenergy Co., Ltd.	Power generation	Korea		89.00	%		89.00	%
Guam Ukudu Power LLC	Power generation	USA		100.00	%		100.00	%
TS Energy No. 25 Co., Ltd.	Power generation	Korea		90.00	%		90.00	%
KPS Partners Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
KEPCO E&C Service Co., Ltd.	Facility maintenance and service	Korea		100.00	%		100.00	%
Moha solar Co., Ltd.	Power generation	Korea		100.00	%		100.00	%
Ogiri Solar Power Co., Ltd.	Power generation	Korea		70.00	%		70.00	%
KHNP USA LLC	Holding company	USA		100.00	%		100.00	%
KOMIPO Vanphong Power Service LLC	Utility plant maintenance and others	Vietnam		100.00	%		100.00	%
Energy Innovation Fund I	Holding company	Korea		71.91	%		71.91	%
KHNP Chile SpA	Holding company	Chile		0			100.00	%
Yeong Yang Apollon Photovoltaic Co., Ltd.	Power generation	Korea		0			100.00	%
Yeong Yang Corporation Co., Ltd.	Power generation	Korea		0			100.00	%
SolarVader Co., Ltd.	Power generation	Korea		0			100.00	%
Yeong Yang Innovation Co., Ltd.	Power generation	Korea		0			100.00	%
Yeong Yang Horus Photovoltaic Co., Ltd.	Power generation	Korea		0			100.00	%
Yeong Yang Solar Management Co., Ltd.	Power generation	Korea		0			100.00	%
LSG Hydro Power Limited	Holding company	Pakistan		0			99.80	%
KOEN Bio Co., Ltd.	Wood pellet utilization business	Korea		0			70.00	%
KOMIPO Energy Solution America, LLC	Holding company	USA		0			100.00	%
Elara Investment Holdings, LLC(*8)	Holding company	USA		0			0.10	%
Elara Equity Holdings, LLC	Holding company	USA		0			51.22	%
Elara Class B Holdings, LLC	Holding company	USA		0			100.00	%
Elara Class B Member, LLC	Holding company	USA		0			100.00	%
Elara Development Holdings, LLC	Holding company	USA		0			100.00	%
Elara Development, LLC	Holding company	USA		0			100.00	%
Elara Energy Holdings, LLC(*8)	Holding company	USA		0			43.94	%
Elara Energy Project, LLC	Power generation	USA		0			100.00	%
KOMIPO Iberian Solar Group, S.L.U.	Holding company	Spain		0			100.00	%
Jeongam Wind Power Co., Ltd.	Power generation	Korea		0			80.00	%
KOWEPO Europe B.V.	Holding company	Netherlands		0			100.00	%
CVS Equity Holdings, LLC	Holding company	USA		0			100.00	%
CVS Class B Holdings, LLC	Holding company	USA		0			100.00	%
CVS Development Holdings, LLC	Holding company	USA		0			100.00	%
CVS Development, LLC	Holding company	USA		0			100.00	%
CVS Class B Member, LLC	Holding company	USA		0			100.00	%
CVS Energy Holdings, LLC	Holding company	USA		0			100.00	%
Concho Valley Energy, LLC	Holding company	USA		0			100.00	%
Concho Valley Solar, LLC	Power generation	USA		0			100.00	%
Yeongdeok Sunrise Wind Power Co., Ltd.	Power generation	Korea		0			70.00	%
KHNP Spain, S.L.	Holding company	Spain		0			100.00	%

F-82

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(1) Consolidated subsidiaries as of December 31, 2020 and 2021 are as follows, continued:

(*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 Company obtained the majority of the voting power under the shareholders’ agreement.

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

(*4) The Company guarantees a certain return on investment related to Commerce and Industry Energy Co., Ltd. for the financial investors. The financial investors have a right to sell their shares to the Company which can be exercised 84 months after the date of investment. Accordingly, the purchase price including the return on investment is classified as a liability.

(*5) The subsidiary is included in the consolidated financial statements as the Company owns 50%+1 stake and has the ability to appoint a majority of the board members under the shareholders’ agreement.

(*6) As of the end of the reporting period, the Company does not have a shareholding; however, this subsidiary is included in the consolidated financial statements as the Company has control over the entity by virtue of the right to nominate all 4 members of the board of directors.

(*7) As of the end of the reporting period, the Company does not have a shareholding; however, this subsidiary is included in the consolidated financial statements as the Company has control over the entity by virtue of the right to nominate the CEO and key management members.

(*8) The effective percentage of ownership is less than 50%. However, this consolidated subsidiary is included in the consolidated financial statements as the Company has control over the board of directors under the shareholders’ agreement.

F-83

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(2) Subsidiaries newly included in and excluded from consolidation for the year ended December 31, 2021 are as follows:

Subsidiaries included in consolidation during the year ended December 31, 2021.

Subsidiaries	Reason
KHNP Chile SpA	Newly established
Yeong Yang Apollon Photovoltaic Co., Ltd.	New investment
Yeong Yang Corporation Co., Ltd.	New investment
SolarVader Co., Ltd.	New investment
Yeong Yang Innovation Co., Ltd.	New investment
Yeong Yang Horus Photovoltaic Co., Ltd.	New investment
Yeong Yang Solar Management Co., Ltd.	New investment
LSG Hydro Power Limited	Newly established
KOEN Bio Co., Ltd.	Newly established
KOMIPO Energy Solution America, LLC	Newly established
Elara Investment Holdings, LLC	Newly established
Elara Equity Holdings, LLC	Newly established
Elara Class B Holdings, LLC	Newly established
Elara Class B Member, LLC	Newly established
Elara Development Holdings, LLC	Newly established
Elara Development, LLC	Newly established
Elara Energy Holdings, LLC	Newly established
Elara Energy Project, LLC	New investment
KOMIPO Iberian Solar Group, S.L.U.	New investment
Prime Swedish Holding AB	Newly established
Jeongam Wind Power Co., Ltd.	Change in a relationship
KOWEPO Europe B.V.	Newly established
CVS Equity Holdings, LLC	Newly established
CVS Class B Holdings, LLC	Newly established
CVS Development Holdings, LLC	Newly established
CVS Development, LLC	Newly established
CVS Class B Member, LLC	Newly established
CVS Energy Holdings, LLC	Newly established
Concho Valley Energy, LLC	Newly established
Concho Valley Solar, LLC	New investment
Yeongdeok Sunrise Wind Power Co., Ltd.	Newly established
KHNP Spain, S.L.	Newly established

Subsidiaries excluded from consolidation during the year ended December 31, 2021.

Subsidiaries	Reason
DG Fairhaven Power, LLC	Disposal
VI Carbon Professional Private Special Asset Investment Trust 1	Liquidation
Prime Swedish Holding AB	Change in a relationship
KOSEP USA, Inc.	Liquidation
Korea Imouraren Uranium Investment Corp.	Liquidation

F-84

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows:

2020
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		61,859,753		35,652,467		9,938,941		647,641
Korea South-East Power Co., Ltd.			10,858,645		5,954,129		4,258,904		(139,149	)
Korea Midland Power Co., Ltd.			13,028,436		9,357,603		4,293,364		(29,880	)
Korea Western Power Co., Ltd.			10,357,023		6,594,779		3,605,986		(108,953	)
Korea Southern Power Co., Ltd.			10,658,015		6,411,524		4,015,941		(17,588	)
Korea East-West Power Co., Ltd.			9,619,485		4,974,645		4,155,416		(65,427	)
KEPCO Engineering & Construction Company, Inc.			699,244		200,169		431,723		20,160
KEPCO Plant Service & Engineering Co., Ltd.			1,345,857		296,515		1,299,186		85,916
KEPCO Nuclear Fuel Co., Ltd.			798,368		390,155		331,228		14,542
KEPCO KDN Co., Ltd.			647,496		174,192		641,308		45,207
KEPCO International HongKong Ltd.			120,213		0		0		1,571
KEPCO International Philippines Inc.			133,215		366		0		35,182
KEPCO Gansu International Ltd.			7,753		512		0		(19	)
KEPCO Philippines Holdings Inc.			187,375		127		0		65,792
KEPCO Philippines Corporation			6,173		17		0		(187	)
KEPCO Ilijan Corporation			322,066		47,234		81,400		39,443
KEPCO Lebanon SARL			1,669		9,195		0		(59	)
KEPCO Neimenggu International Ltd.			213,444		2,492		0		26,593
KEPCO Shanxi International Ltd.			508,363		196,408		0		2,278
KOMIPO Global Pte Ltd.			263,378		656		0		12,460
KEPCO Netherlands B.V.			117,449		71		0		14,503
Korea Imouraren Uranium Investment Corp.			13,955		123		0		(675	)
KEPCO Australia Pty., Ltd.			451		17		0		71
KOSEP Australia Pty., Ltd.			34,249		3,500		14,327		2,150
KOMIPO Australia Pty., Ltd.			45,250		3,782		14,327		2,685
KOWEPO Australia Pty., Ltd.			44,270		2,909		14,327		1,663
KOSPO Australia Pty., Ltd.			38,341		2,750		14,327		2,242
KEPCO Middle East Holding Company			90,601		78,553		0		(1,539	)
Qatrana Electric Power Company			464,507		287,859		21,279		24,717
KHNP Canada Energy Ltd.			63,794		26		0		(7	)
KEPCO Bylong Australia Pty., Ltd.			44,691		349,542		0		16,897
Korea Waterbury Uranium Limited Partnership			20,908		165		0		(76	)
KEPCO Holdings de Mexico			148		27		0		(14	)
KST Electric Power Company, S.A.P.I. de C.V.			531,367		410,743		65,695		37,899
KEPCO Energy Service Company			2,255		994		5,880		507
KEPCO Netherlands S3 B.V.			44,042		54		0		2,833
PT. KOMIPO Pembangkitan Jawa Bali			12,946		3,298		20,306		4,775
PT. Cirebon Power Service			1,825		550		8,642		344
KOWEPO International Corporation			0		10		0		0
KOSPO Jordan LLC			31,620		15,654		9,356		1,570
EWP America Inc.(*1)			37,681		2,683		14,312		(14,327	)
KNF Canada Energy Limited			1,871		22		0		(50	)
EWP Barbados 1 SRL			313,409		1,170		2,950		44,729
Gyeonggi Green Energy Co., Ltd.			265,768		240,366		64,660		(9,968	)
PT. Tanggamus Electric Power			217,730		184,057		3,491		11,942
Gyeongju Wind Power Co., Ltd.			105,726		68,629		13,939		2,108
KOMIPO America Inc.			105,926		918		342		(1,783	)
KOSEP USA, Inc.			1		4,837		0		0
PT. EWP Indonesia			33,900		1,125		0		7,083
KEPCO Netherlands J3 B.V.			138,824		84		0		28,242
Korea Offshore Wind Power Co., Ltd.			354,643		187,576		26,838		98
Global One Pioneer B.V.			177		60		0		(76	)
Global Energy Pioneer B.V.			338		64		0		(70	)
Mira Power Limited			348,737		266,565		31,172		(2,960	)
KOSEP Material Co., Ltd.			2,312		429		3,457		189

F-85

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Commerce and Industry Energy Co., Ltd.	￦		89,681		41,384		31,603		1,623
KEPCO KPS Philippines Corp.			3,119		284		5,151		158
KOSPO Chile SpA			128,795		48,813		0		(542	)
PT. KOWEPO Sumsel Operation And Maintenance Services			108		241		0		(15	)
Hee mang sunlight Power Co., Ltd.			7,261		4,339		423		(142	)
Fujeij Wind Power Company			194,844		174,051		0		13,720
KOSPO Youngnam Power Co., Ltd.			389,071		294,408		254,966		3,405
VI Carbon Professional Private Special Asset Investment Trust 1			3,006		4		0		7
Chitose Solar Power Plant LLC			133,643		118,783		17,073		1,521
KEPCO Energy Solution Co., Ltd.			313,754		4,093		5,585		3,656
KEPCO Solar Co., Ltd.			230,443		23,098		3,933		1,888
KOSPO Power Services Ltda.			4,354		1,644		10,846		1,011
Energy New Industry Specialized Investment Private Investment Trust(*2)			279,489		24,173		23,682		8,248
KOEN Bylong Pty., Ltd.			6		75		0		(11	)
KOMIPO Bylong Pty., Ltd.			7		76		0		(11	)
KOWEPO Bylong Pty., Ltd.			6		64		0		0
KOSPO Bylong Pty., Ltd.			153		213		0		(2	)
EWP Bylong Pty., Ltd.			6		35		0		28
KOWEPO Lao International			8,982		392		8,466		4,706
KEPCO US Inc.			16,154		0		0		(21	)
KEPCO Alamosa LLC			31,353		270		127		(237	)
KEPCO Solar of Alamosa LLC			68,336		42,910		9,096		(2,052	)
KEPCO Mangilao Holdings LLC			25,785		28,924		0		(502	)
Mangilao Investment LLC			38,090		14		0		(15	)
KEPCO Mangilao Solar, LLC			69,830		34,029		0		(253	)
Jeju Hanlim Offshore Wind Co., Ltd.			20,525		9,805		0		(3,049	)
PT. Siborpa Eco Power			10,491		14		0		(361	)
PT. Korea Energy Indonesia			1,746		196		2,428		190
KOLAT SpA			31,109		425		243		(216	)
KEPCO California, LLC			41,973		4,683		0		(1,330	)
KEPCO Mojave Holdings, LLC			95,326		67,138		0		(4,358	)
Incheon Fuel Cell Co., Ltd.			192,184		170,976		0		(979	)
KOEN Service Co., Ltd.			6,239		5,598		32,150		129
KOMIPO Service Co., Ltd.			3,381		3,649		28,596		(479	)
KOWEPO Service Co., Ltd.			6,045		4,849		29,559		726
KOSPO Service Co., Ltd.			5,617		4,708		25,103		832
EWP Service Co., Ltd.			4,568		4,074		23,223		(15	)
PT. KOMIPO Energy Indonesia			2,473		154		2,391		52
KNF Partners Co., Ltd.			1,470		743		5,487		256
KOSPO USA Inc.			120,380		266		0		(1,611	)
Nambu USA LLC			42,739		0		0		544
Tamra Offshore Wind Power Co., Ltd.			150,957		112,184		22,200		4,575
KEPCO MCS Co., Ltd.			59,227		36,786		342,053		19,190
KEPCO FMS Co., Ltd.			14,390		12,585		89,228		837
Firstkeepers Co., Ltd.			13,981		12,234		68,538		2,994
Secutec Co., Ltd.			11,473		9,771		62,256		1,609
SE Green Energy Co., Ltd.			152,205		122,606		19,731		2,463
KEPCO Mangilao America LLC			1,793		0		0		0
Mangilao Intermediate Holdings LLC			100,609		80,210		0		(3,708	)
KEPCO CSC Co., Ltd.			8,817		5,551		38,465		2,479
KOAK Power Limited			15,864		1,118		0		607

F-86

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
KOMIPO Europe B.V.	￦		43,198		46		333		(386	)
Haenanum Energy Fund			28,219		132		128		(13	)
Paju Ecoenergy Co., Ltd.			57,320		3,506		3,069		247
Guam Ukudu Power LLC			3,165		3,589		0		(1,577	)
TS Energy No. 25 Co., Ltd.			184,667		142,709		0		(3,779	)
KPS Partners Co., Ltd.			2,139		1,127		3,562		313
KEPCO E&C Service Co., Ltd.			2,514		1,549		4,989		464
Moha solar Co., Ltd.			7,390		7,809		0		(364	)
Ogiri Solar Power Co., Ltd.			1,032		0		0		0
KHNP USA LLC			464		23		229		119
KOMIPO Vanphong Power Service LLC			1,727		12		0		(34	)
Energy Innovation Fund I			8,412		1		25		(201	)

(*1) Financial information of EWP America Inc. includes that of four other subsidiaries, EWP Renewable Corporation, DG Fairhaven 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 four other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund and BSK E-New Industry Fund X.

F-87

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		64,638,690		38,361,337		9,324,391		302,232
Korea South-East Power Co., Ltd.			11,487,325		6,510,826		5,188,856		(58,096	)
Korea Midland Power Co., Ltd.			13,756,040		9,912,907		5,263,302		54,869
Korea Western Power Co., Ltd.			10,822,780		7,116,671		4,970,805		(171,562	)
Korea Southern Power Co., Ltd.			11,350,984		7,099,881		5,671,989		(113,352	)
Korea East-West Power Co., Ltd.			9,895,739		5,163,005		4,743,030		10,872
KEPCO Engineering & Construction Company, Inc.			705,043		191,592		433,127		16,452
KEPCO Plant Service & Engineering Co., Ltd.			1,420,705		311,607		1,375,668		98,132
KEPCO Nuclear Fuel Co., Ltd.			837,249		405,614		323,729		25,799
KEPCO KDN Co., Ltd.			721,634		189,242		673,261		67,244
KEPCO International HongKong Ltd.			128,968		0		0		341
KEPCO International Philippines Inc.			154,317		482		0		8,766
KEPCO Gansu International Ltd.			7,151		559		0		(25	)
KEPCO Philippines Holdings Inc.			191,757		128		0		60,192
KEPCO Philippines Corporation			6,122		19		0		(68	)
KEPCO Ilijan Corporation			259,069		38,555		60,532		12,981
KEPCO Lebanon SARL			1,729		9,794		0		(86	)
KEPCO Neimenggu International Ltd.			241,299		3,106		0		16,762
KEPCO Shanxi International Ltd.			551,407		207,844		0		3,526
KOMIPO Global Pte Ltd.			302,340		1,351		0		11,462
KEPCO Netherlands B.V.			133,610		866		0		5,395
Korea Imouraren Uranium Investment Corp.			83		0		0		(13,898	)
KEPCO Australia Pty., Ltd.			481		11		0		25
KOSEP Australia Pty., Ltd.			44,798		5,561		22,013		8,268
KOMIPO Australia Pty., Ltd.			54,162		5,648		22,013		5,942
KOWEPO Australia Pty., Ltd.			54,564		4,766		22,013		7,387
KOSPO Australia Pty., Ltd.			43,886		4,502		22,013		5,940
KEPCO Middle East Holding Company			104,068		89,756		0		1,144
Qatrana Electric Power Company			480,809		262,725		21,368		19,156
KHNP Canada Energy Ltd.			109,326		25		0		29
KEPCO Bylong Australia Pty., Ltd.			44,319		394,349		0		(37,065	)
Korea Waterbury Uranium Limited Partnership			20,920		159		0		(57	)
KEPCO Holdings de Mexico			148		27		0		(8	)
KST Electric Power Company, S.A.P.I. de C.V.			584,625		435,796		151,467		18,499
KEPCO Energy Service Company			2,500		956		12,070		574
KEPCO Netherlands S3 B.V.			51,045		150		0		3,199
PT. KOMIPO Pembangkitan Jawa Bali			13,499		3,314		18,296		885
PT. Cirebon Power Service			2,545		631		8,664		505
KOWEPO International Corporation			0		10		0		0
KOSPO Jordan LLC			33,782		16,298		9,698		816
EWP America Inc.(*1)			46,687		1,278		18,335		6,807
KNF Canada Energy Limited			2,101		17		0		(43	)
EWP Barbados 1 SRL			354,024		1,172		2,861		16,168
Gyeonggi Green Energy Co., Ltd.			243,977		224,132		93,794		(5,588	)
PT. Tanggamus Electric Power			212,161		167,409		2,903		3,017
Gyeongju Wind Power Co., Ltd.			96,937		60,702		15,289		3,132
KOMIPO America Inc.(*2)			329,986		56,325		1,715		(1,311	)
PT. EWP Indonesia			47,031		1,226		0		4,615
KEPCO Netherlands J3 B.V.			151,478		172		0		27,365
Korea Offshore Wind Power Co., Ltd.			359,393		188,507		36,020		3,820
Global One Pioneer B.V.			119		116		0		(132	)
Global Energy Pioneer B.V.			293		131		0		(147	)
Mira Power Limited			424,183		311,459		70,287		34,018
KOSEP Material Co., Ltd.			3,405		842		4,518		442
Commerce and Industry Energy Co., Ltd.			85,315		35,543		30,531		1,345
KEPCO KPS Philippines Corp.			8,051		3,652		9,768		1,493
KOSPO Chile SpA			142,956		56,688		0		(851	)

��

F-88

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
PT. KOWEPO Sumsel Operation And Maintenance Services	￦		116		259		0		0
Hee mang sunlight Power Co., Ltd.			6,242		3,272		499		47
Fujeij Wind Power Company			200,783		169,340		0		14,739
KOSPO Youngnam Power Co., Ltd.			393,745		292,765		318,770		6,339
Chitose Solar Power Plant LLC			125,578		109,470		16,630		1,794
KEPCO Energy Solution Co., Ltd.			317,676		4,938		21,423		3,104
KEPCO Solar Co., Ltd.			231,567		22,229		11,305		2,014
KOSPO Power Services Ltda.			8,007		5,800		21,133		(356	)
Energy New Industry Specialized Investment Private Investment Trust(*3)			336,932		28,536		19,405		11,116
KOEN Bylong Pty., Ltd.			8		86		0		0
KOMIPO Bylong Pty., Ltd.			8		86		0		(8	)
KOWEPO Bylong Pty., Ltd.			8		86		0		(18	)
KOSPO Bylong Pty., Ltd.			73		168		0		(20	)
EWP Bylong Pty., Ltd.			8		54		0		0
KOWEPO Lao International			12,974		70		8,543		5,681
KEPCO US Inc.			17,601		0		0		0
KEPCO Alamosa LLC			34,100		297		124		(62	)
KEPCO Solar of Alamosa LLC			57,104		41,953		8,008		(742	)
KEPCO Mangilao Holdings LLC			28,504		32,501		0		(556	)
Mangilao Investment LLC			43,459		29		0		(14	)
KEPCO Mangilao Solar, LLC			206,018		166,095		0		(865	)
Jeju Hanlim Offshore Wind Co., Ltd.			41,325		5,139		0		(2,893	)
PT. Siborpa Eco Power			11,306		0		0		(105	)
PT. Korea Energy Indonesia			1,917		215		1,681		37
KOLAT SpA			28,349		849		180		(464	)
KEPCO California, LLC			43,732		4,113		1,310		160
KEPCO Mojave Holdings, LLC			95,294		71,358		0		(4,254	)
Incheon Fuel Cell Co., Ltd.			259,111		236,901		46,034		962
KOEN Service Co., Ltd.			8,963		6,557		35,190		2,326
KOMIPO Service Co., Ltd.			4,384		4,475		32,323		(96	)
KOWEPO Service Co., Ltd.			7,289		5,869		31,700		303
KOSPO Service Co., Ltd.			5,762		4,990		26,257		31
EWP Service Co., Ltd.			5,483		5,455		24,957		14
PT. KOMIPO Energy Indonesia			2,996		395		2,077		106
KNF partners Co., Ltd.			1,800		969		5,664		152
KOSPO USA Inc.			286,081		293		0		968
Nambu USA LLC			277,698		0		0		568
Tamra Offshore Wind Power Co., Ltd.			146,736		106,961		21,731		5,168
KEPCO MCS Co., Ltd.			80,277		39,139		349,116		19,043
KEPCO FMS Co., Ltd.			17,188		15,577		94,210		214
Firstkeepers Co., Ltd.			17,152		16,041		77,189		19
Secutec Co., Ltd.			13,176		10,662		65,963		1,774
SE Green Energy Co., Ltd.			153,105		119,461		38,867		4,025
KEPCO Mangilao America LLC			2,173		1		0		0
Mangilao Intermediate Holdings LLC			220,690		205,421		0		(6,975	)
KEPCO CSC Co., Ltd.			8,093		6,799		41,854		(2,101	)
KOAK Power Limited			14,363		393		0		(551	)
KOMIPO Europe B.V.			70,431		97		402		(503	)

F-89

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(3) Summary of financial information of consolidated subsidiaries as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Subsidiaries		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Haenanum Energy Fund	￦		7,463		3		40		(74	)
Paju Ecoenergy Co., Ltd.			57,795		2,118		15,425		2,234
Guam Ukudu Power LLC			30,133		30,438		0		(2,030	)
TS Energy No. 25 Co., Ltd.			353,324		318,977		421		(7,525	)
KPS Partners Co., Ltd.			2,809		1,529		9,520		323
KEPCO E&C Service Co., Ltd.			4,054		1,889		15,985		1,242
Moha solar Co., Ltd.			32,808		33,933		48		(706	)
Ogiri Solar Power Co., Ltd.			1,041		1		0		9
KHNP USA LLC			766		10		1,001		267
KOMIPO Vanphong Power Service LLC			3,758		860		3,853		958
Energy Innovation Fund I			22,616		3,202		0		(888	)
KHNP Chile SpA			5,294		3,879		0		17
Yeong Yang Apollon Photovoltaic Co., Ltd.			1,775		1,632		5		(30	)
Yeong Yang Corporation Co., Ltd.			1,776		1,623		9		(19	)
SolarVader Co., Ltd.			1,772		1,627		0		(26	)
Yeong Yang Innovation Co., Ltd.			1,773		1,622		5		(21	)
Yeong Yang Horus Photovoltaic Co., Ltd.			1,771		1,624		9		(24	)
Yeong Yang Solar Management Co., Ltd.			1,774		1,625		0		(23	)
LSG Hydro Power Limited			1		0		0		0
KOEN Bio Co., Ltd.			394		199		51		(305	)
KOMIPO Iberian Solar Group, S.L.U.			70,993		56,707		0		1,354
Jeongam Wind Power Co., Ltd.			86,853		74,267		10,476		1,027
KOWEPO Europe B.V.			39,973		1,449		0		(744	)
Yeongdeok Sunrise Wind Power Co., Ltd.			21,252		768		0		(116	)
KHNP Spain, S.L.			5		0		0		0

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

(*2) Financial information of KOMIPO America Inc. includes that of 17 other subsidiaries including Elara Equity Holdings, LLC and CVS Equity Holdings, LLC.

(*3) Financial information of Energy New Industry Specialized Investment Private Investment Trust includes that of four other subsidiaries, BSK E-New Industry Fund VII, e-New Industry LB Fund 1, Songhyun e-New Industry Fund and BSK E-New Industry Fund X.

F-90

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(4) Significant restrictions on abilities to subsidiaries are as follows:

Company	Nature and extent of significant restrictions
Gyeonggi Green Energy Co., Ltd.	Acquisition or disposal of assets of more than ￦35 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Company.
KOSPO Youngnam Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied, or prior written consent of financial institutions is obtained. The Company’s shares cannot be wholly or partially transferred without prior written consent of financial institutions.
Jeongam Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied, and payments to the contracting party may be restricted depending on the financial management priority of the contract. The Company’s shares cannot be wholly or partially transferred without prior consent of other stakeholders including shareholders or financial institutions.
Incheon Fuel Cell Co., Ltd.	Acquisition or disposal of assets of more than ￦20 billion, change in the capacity of cogeneration units (except for the change due to performance improvement of equipment, maintenance) will require unanimous consent of all directors of the Company.
Gyeongju Wind Power Co., Ltd.	Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Korea Offshore Wind Power Co., Ltd.	Principals and interest payments on subordinated loans or dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

(5) As of December 31, 2021, the Company has following entitlements in relation to its subsidiaries as per its shareholder’s agreements:

Company	Nature and extent of significant restrictions
KOSPO Youngnam Power Co., Ltd.	The Company holds the right to purchase all shares held by the financial investors of KOSPO Youngnam Power Co., Ltd., a subsidiary of the Company, at face value of the issued shares on the 7th and 12th years from the Company’s establishment date.
Jeongam Wind Power Co., Ltd.	When the Company requests other shareholders to transfer shares after the completion of the power generation complex, the Company has a right to purchase the shares at fair value.

F-91

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(6) Details of non-controlling interests prior to intra-Company eliminations as of and for the years ended December 31, 2019, 2020 and 2021 are as follows:

2019
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		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 interests			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 (loss) for the period			40,818			157,737			26,398			(48,963	)		175,990
Profit (loss) for the period attributable to non-controlling interests			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 to non-controlling interests			(68,678	)		(44,332	)		(34,632	)		223,233			75,591
Dividends to non-controlling interests			(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

2020
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		236,602			755,454			235,805			801,813			2,029,674
Non-current assets			85,464			590,403			463,439			3,499,258			4,638,564
Current liabilities			(12,322	)		(254,495	)		(186,296	)		(414,673	)		(867,786	)
Non-current liabilities			(34,912	)		(42,020	)		(13,873	)		(2,511,848	)		(2,602,653	)
Net assets			274,832			1,049,342			499,075			1,374,550			3,197,799
Book value of non-controlling interests			134,668			514,177			169,286			552,035			1,370,166
Sales			81,400			1,299,186			431,723			956,692			2,769,001
Profit for the period			39,443			85,916			20,160			107,661			253,180
Profit for the period attributable to non-controlling interests			19,327			42,099			6,838			32,858			101,122
Cash flows from operating activities			121,835			74,159			15,225			240,987			452,206
Cash flows from investing activities			7,561			26,748			(34,333	)		(661,820	)		(661,844	)
Cash flows from financing activities before dividends to non-controlling interests			(31,793	)		(47,809	)		(9,165	)		371,448			282,681
Dividends to non-controlling interests			(30,319	)		(42,336	)		(4,000	)		(4,643	)		(81,298	)
Effect of exchange rate fluctuation			(8,153	)		(2,171	)		(22	)		(7,893	)		(18,239	)
Net increase (decrease) of cash and cash equivalents			59,131			8,591			(32,295	)		(61,921	)		(26,494	)

F-92

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(6) Details of non-controlling interests prior to intra-Company eliminations as of and for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

2021
Description		KEPCO Ilijan Corporation			KEPCO Plant Service & Engineering Co., Ltd.			KEPCO Engineering & Construction Company, Inc.			Others			Total
		In millions of won
Percentage of ownership			49.00	%		49.00	%		33.92	%
Current assets	￦		234,224			793,995			253,958			1,030,049			2,312,226
Non-current assets			24,845			626,710			451,085			3,829,243			4,931,883
Current liabilities			(30,783	)		(265,017	)		(183,100	)		(599,373	)		(1,078,273	)
Non-current liabilities			(7,772	)		(46,590	)		(8,492	)		(2,666,345	)		(2,729,199	)
Net assets			220,514			1,109,098			513,451			1,593,574			3,436,637
Book value of non-controlling interests			108,052			543,458			174,163			717,166			1,542,839
Sales			60,532			1,375,668			433,127			1,277,848			3,147,175
Profit for the year			12,981			98,132			16,452			120,488			248,053
Profit for the year attributable to non-controlling interests			6,361			48,085			5,581			25,803			85,830
Cash flows from operating activities			116,440			133,160			(16,270	)		295,532			528,862
Cash flows from investing activities			2,216			(39,444	)		19,061			(301,402	)		(319,569	)
Cash flows from financing activities before dividends to non-controlling interests			(88,927	)		(30,599	)		(8,467	)		125,685			(2,308	)
Dividends to non-controlling interests			0			(25,269	)		(3,639	)		(2,608	)		(31,516	)
Effect of exchange rate fluctuation			10,683			885			38			7,243			18,849
Net increase (decrease) of cash and cash equivalents			40,412			38,733			(9,277	)		124,450			194,318

(7) Changes in goodwill

(i) Details of goodwill as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Acquisition cost	￦		98,166		105,647
Less: Accumulated impairment			0		0
Carrying book value	￦		98,166		105,647

(ii) Changes in goodwill for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning		Increase		Decrease		Ending
		In millions of won
Acquisition cost	￦		97,977		189		0		98,166
Less: Accumulated impairment			0		0		0		0
Carrying book value	￦		97,977		189		0		98,166

		2021
		Beginning		Increase		Decrease		Ending
		In millions of won
Acquisition cost	￦		98,166		7,481		0		105,647
Less: Accumulated impairment			0		0		0		0
Carrying book value	￦		98,166		7,482		0		105,647

F-93

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

16. Consolidated Subsidiaries, Continued

(8) Disposals of subsidiaries

The Company has completed the liquidation process of VI Carbon Professional Private Special Asset Investment Trust 1, KOSEP USA, Inc., and

Korea

Imouraren Uranium Investment Corp. and has disposed of shares of DG Fairhaven Power, LLC during the year ended December 31, 2021. The Company had completed the liquidation process of EWP Philippines Corporation and had disposed of shares of DG Whitefield, LLC and Springfield Power, LLC during the year ended December 31, 2020.

(9) Cash dividends received from subsidiaries for the years ended December 31, 2019, 2020 and 2021, respectively, are as follows:

Subsidiaries		2019		2020		2021
		In millions of won
Korea Hydro & Nuclear Power Co., Ltd.	￦		0		106,675		279,779
Korea South-East Power Co., Ltd.			7,143		11,905		0
Korea Midland Power Co., Ltd.			0		0		0
Korea Western Power Co., Ltd.			0		0		0
Korea Southern Power Co., Ltd.			15,277		0		0
Korea East-West Power Co., Ltd.			985		17,959		0
KEPCO Engineering & Construction Company, Inc.			3,519		7,793		7,089
KEPCO Plant Service & Engineering Co., Ltd.			41,084		44,068		26,301
KEPCO Nuclear Fuel Co., Ltd.			4,219		7,270		5,206
KEPCO KDN Co., Ltd.			19,136		14,720		18,854
KEPCO International HongKong Ltd.			10,243		11,858		0
KEPCO International Philippines Inc.			70,480		0		0
KEPCO Ilijan Corporation			65,776		34,502		7,955
KEPCO Philippines Holdings Inc.			63,522		70,876		60,520
KOSEP Australia Pty., Ltd.			8,120		1,856		0
KOSPO Australia Pty., Ltd.			4,335		0		3,095
Qatrana Electric Power Company			10,313		0		2,615
KEPCO KPS Philippines Corp.			3,854		1,215		0
Tamra Offshore Wind Power Co., Ltd.			4,823		2,640		0
KEPCO Netherlands S3 B.V.			874		6,981		0
PT. KOMIPO Pembangkitan Jawa Bali			1,971		0		153
KEPCO Netherlands J3 B.V.			0		0		27,237
Gyeongju Wind Power Co., Ltd.			2,800		2,800		2,800
VI Carbon Professional Private Special Asset Investment Trust 1			11		7		0
KOSPO Power Services Limitada			745		0		0
KEPCO Netherlands B.V.			13,266		11,098		0
PT. Cirebon Power Service			0		221		0
Chitose Solar Power Plant LLC			814		858		0
Fujeij Wind Power Company			0		6,306		11,920
KOSPO Jordan LLC			0		535		731
Energy Innovation Fund I			0		19		0
	￦		353,310		362,162		454,255

F-94

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows:

2020
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Gas Corporation(*1)	Importing and wholesaling LNG	Korea		20.47	%	￦		94,500		1,647,325
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others	Korea		29.00	%			4,727		25,630
YTN Co., Ltd.	Broadcasting	Korea		21.43	%			59,000		40,549
Gangwon Wind Power Co., Ltd.(*2)	Power generation	Korea		15.00	%			5,725		11,443
Hyundai Green Power Co., Ltd.	Power generation	Korea		29.00	%			88,885		132,774
Korea Power Exchange(*3)	Management of power market and others	Korea		100.00	%			127,839		269,122
Taebaek Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,810		6,392
Taebaek Guinemi Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,420		3,087
Pyeongchang Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,875		5,027
Daeryun Power Co., Ltd.(*2)	Power generation	Korea		9.34	%			40,854		26,353
Changjuk Wind Power Co., Ltd.	Power generation	Korea		30.00	%			3,801		7,867
KNH Solar Co., Ltd.	Power generation	Korea		27.00	%			1,296		2,436
SPC Power Corporation	Power generation	Philippines		38.00	%			20,635		69,912
Gemeng International Energy Co., Ltd.	Power generation	China		34.00	%			413,153		679,708
PT. Cirebon Electric Power	Power generation	Indonesia		27.50	%			40,365		117,811
KNOC Nigerian East Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		0
KNOC Nigerian West Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		0
PT Wampu Electric Power	Power generation	Indonesia		46.00	%			21,292		27,865
PT. Bayan Resources TBK	Resources development	Indonesia		20.00	%			615,860		425,234
S-Power Co., Ltd.	Power generation	Korea		49.00	%			132,300		110,292
Pioneer Gas Power Limited	Power generation	India		38.50	%			49,831		0
Eurasia Energy Holdings	Power generation and resources development	Russia		40.00	%			461		0
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation	Laos		25.00	%			87,426		64,570
Hadong Mineral Fiber Co., Ltd.(*2)	Recycling fly ashes	Korea		8.33	%			50		0
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal	Indonesia		29.00	%			2,978		1,780
Samcheok Eco Materials Co., Ltd.(*5)	Recycling fly ashes	Korea		2.35	%			686		0
Noeul Green Energy Co., Ltd.	Power generation	Korea		29.00	%			1,740		4,197
Goseong Green Power Co., Ltd.(*2)	Power generation	Korea		1.12	%			2,900		2,186
Gangneung Eco Power Co., Ltd.(*2)	Power generation	Korea		1.61	%			2,900		2,368
Shin Pyeongtaek Power Co., Ltd.	Power generation	Korea		40.00	%			72,000		69,591
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Power generation	Korea		28.00	%			194		210
Dongducheon Dream Power Co., Ltd.(*6)	Power generation	Korea		33.61	%			148,105		80,637
Jinbhuvish Power Generation Pvt. Ltd.(*2, 7)	Power generation	India		5.16	%			9,000		0
Daejung Offshore Wind Power Co., Ltd.	Power generation	Korea		46.59	%			5,190		2,165
GS Donghae Electric Power Co., Ltd.	Power generation	Korea		34.00	%			204,000		244,426
Daegu Photovoltaic Co., Ltd.	Power generation	Korea		29.00	%			1,230		2,066
Busan Green Energy Co., Ltd.	Power generation	Korea		29.00	%			5,243		8,778
Gunsan Bio Energy Co., Ltd.(*2)	Power generation	Korea		18.87	%			1,000		0
Korea Electric Vehicle Charging Service	Electric vehicle charge service	Korea		28.00	%			2,800		576
Korea Nuclear Partners Co., Ltd.	Electric material agency	Korea		28.98	%			537		200
Korea Electric Power Corporation Fund(*8)	Developing electric enterprises	Korea		98.09	%			51,500		41,926
Energy Infra Asset Management Co., Ltd.(*2)	Asset management	Korea		9.90	%			297		938
Daegu clean Energy Co., Ltd.	Renewable power generation	Korea		28.00	%			140		12
Yaksu ESS Co., Ltd.	Installing ESS related equipment	Korea		29.00	%			210		454
Nepal Water & Energy Development Company Private Limited(*9)	Construction and operation of utility plant	Nepal		60.35	%			50,268		42,677
Gwangyang Green Energy Co., Ltd.	Power generation	Korea		20.00	%			2,000		926
PND S olar Co., Ltd.	Power generation	Korea		29.00	%			1,250		1,149
Hyundai Eco Energy Co., Ltd.(*2)	Power generation	Korea		19.00	%			3,610		4,250
YeongGwang Yaksu Wind Electric Co., Ltd.(*2)	Power generation	Korea		9.63	%			533		312
Green Energy Electricity Generation Co., Ltd.	Power generation	Korea		29.00	%			1,189		25
Korea Energy Solutions Co., Ltd.	R & D	Korea		20.00	%			300		197
ITR Co., Ltd.	R & D	Korea		20.00	%			50		40
Structure test network Co., Ltd.	Technical testing and consulting	Korea		20.00	%			25		27
Namjeongsusang Solar Power Operation Co., Ltd.(*10)	Power generation	Korea		15.00	%			969		103

F-95

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
Indeck Niles Development, LLC(*11)	Power generation	USA		24.08	%	￦		45,562		20,627
Indeck Niles Asset Management, LLC	Power generation	USA		33.33	%			0		101
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Holding company	Korea		49.00	%			7,300		7,326
Suwon New Power Co., Ltd.	Power generation	Korea		39.90	%			798		1,054
KPGE Inc.	Power generation materials business	Korea		29.00	%			287		287
Gwangbaek Solar Power Investment Co., Ltd.	Power generation	Korea		44.00	%			4,757		4,682
Go deok Clean Energy Co., Ltd.(*12)	Fuel cell generation	Korea		61.00	%			1,830		960
SureDataLab Co., Ltd.	R & D	Korea		23.95	%			126		85
SEP Co., Ltd.	R & D	Korea		21.26	%			27		14
Hankook Electric Power Information Co., Ltd.	R & D	Korea		25.25	%			38		139
Tronix Co., Ltd.	R & D	Korea		20.00	%			75		119
O2&B Global Co., Ltd.	R & D	Korea		20.00	%			25		22
Muan Sunshine Solar Power Plant Co., Ltd.	Power generation	Korea		20.00	%			1,570		1,096
Bigeum Resident Photovoltaic Power Co., Ltd.	Power generation	Korea		29.90	%			1		0
Jeju SolarOne Co., Ltd.(*13)	Power generation	Korea		10.00	%			161		159
Goesan Solar Park Co., Ltd.	Power generation	Korea		29.00	%			1,276		1,684
Saemangeum Heemang Photovoltaic Co., Ltd.	Power generation	Korea		35.00	%			11,022		11,022
Bitgoel Eco Energy Co., Ltd.	Power generation	Korea		29.00	%			29		29
Jeju Gimnyeong Wind Power Co., Ltd.	Power generation	Korea		30.00	%			714		1,578
Seoroseoro Sunny Power Plant Co., Ltd.(*14)	Power generation	Korea		19.46	%			230		230
Muan Solar Park Co., Ltd.(*14)	Power generation	Korea		19.00	%			4,180		4,180
YuDang Solar Co., Ltd.	Power generation	Korea		20.00	%			360		360
Anjwa Smart Farm & Solar City Co., Ltd.(*14)	Power generation	Korea		19.50	%			5,510		5,510
Daewon Green Energy Co., Ltd.	Power generation	Korea		25.36	%			3,910		3,910
								2,481,761		4,250,787
<Joint ventures>
KEPCO-Uhde Inc.(*15)	Power generation	Korea		52.80	%			11,355		100
Shuweihat Asia Power Investment B.V.	Holding company	Netherlands		49.00	%			44,405		13,264
Shuweihat Asia Operation & Maintenance Company(*15)	Maintenance of utility plant	Cayman		55.00	%			30		1,057
Waterbury Lake Uranium L.P.	Resources development	Canada		33.10	%			26,602		19,797
ASM-BG Investicii AD	Power generation	Bulgaria		50.00	%			16,101		18,200
RES Technology AD	Power generation	Bulgaria		50.00	%			15,595		15,930
KV Holdings, Inc.	Power generation	Philippines		40.00	%			2,103		2,405
KEPCO SPC Power Corporation(*15)	Construction and operation of utility plant	Philippines		75.20	%			94,579		201,663
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation	China		40.00	%			16,621		6,530
Datang Chifeng Renewable Power Co., Ltd.	Power generation	China		40.00	%			121,928		188,478
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	China		40.00	%			39,872		42,530
Rabigh Electricity Company	Power generation	Saudi Arabia		40.00	%			109,743		97,157
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant	Saudi Arabia		40.00	%			70		3,813
Jamaica Public Service Company Limited	Power generation	Jamaica		40.00	%			301,910		266,221
KW Nuclear Components Co., Ltd.	Manufacturing	Korea		45.00	%			833		11,171
Busan Shinho Solar Power Co., Ltd.	Power generation	Korea		25.00	%			2,100		5,378
Global Trade Of Power System Co., Ltd.(*16)	Exporting products and technology of small or medium business by proxy	Korea		29.00	%			290		546
Expressway Solar-light Power Generation Co., Ltd.(*16)	Power generation	Korea		29.00	%			1,856		2,896
Amman Asia Electric Power Company(*15)	Power generation	Jordan		60.00	%			111,476		161,253
KAPES, Inc.(*15)	R & D	Korea		51.00	%			5,629		0
Honam Wind Power Co., Ltd.	Power generation	Korea		29.00	%			3,480		3,887
Jeongam Wind Power Co., Ltd.	Power generation	Korea		40.00	%			5,580		4,620
Korea Power Engineering Service Co., Ltd.	Construction and service	Korea		29.00	%			290		5,362
Chun-cheon Energy Co., Ltd.	Power generation	Korea		29.90	%			52,700		27,518
Yeonggwangbaeksu Wind Power Co., Ltd.(*16)	Power generation	Korea		15.00	%			3,000		3,124
Nghi Son 2 Power LLC	Power generation	Vietnam		50.00	%			2,781		0
Kelar S.A.(*15)	Power generation	Chile		65.00	%			78,060		71,449

F-96

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
PT. Tanjung Power Indonesia	Power generation	Indonesia		35.00	%	￦		26,892		33,063
Incheon New Power Co., Ltd.(*17)	Power generation	Korea		29.00	%			461		0
Seokmun Energy Co., Ltd.	Power generation	Korea		29.00	%			15,370		14,814
Daehan Wind Power PSC	Power generation	Jordan		50.00	%			7,493		0
Barakah One Company(*18)	Power generation	UAE		18.00	%			118		0
Nawah Energy Company(*18)	Operation of utility plant	UAE		18.00	%			296		270
Momentum	International thermonuclear experimental reactor construction management	France		33.33	%			1		565
Daegu Green Power Co., Ltd.(*19)	Power generation	Korea		29.00	%			46,225		23,045
Yeonggwang Wind Power Co., Ltd.	Power generation	Korea		46.00	%			17,475		17,256
Chester Solar IV SpA	Power generation	Chile		45.00	%			1,700		1,064
Chester Solar V SpA	Power generation	Chile		45.00	%			525		277
Diego de Almagro Solar SpA	Power generation	Chile		45.00	%			2,091		1,490
South Jamaica Power Company Limited	Power generation	Jamaica		20.00	%			20,521		31,897
Daesan Green Energy Co., Ltd.	Power generation	Korea		35.00	%			17,850		22,552
RE Holiday Holdings LLC	Power generation	USA		50.00	%			42,948		68,809
RE Pioneer Holdings LLC	Power generation	USA		50.00	%			27,891		49,639
RE Barren Ridge 1 Holdings LLC	Power generation	USA		50.00	%			28,021		4,466
RE Astoria 2 LandCo LLC	Power generation	USA		50.00	%			5,188		5,230
RE Barren Ridge LandCo LLC	Power generation	USA		50.00	%			2,187		1,847
Laurel SpA	Power generation	Chile		45.00	%			1,222		1,092
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd(*16)	Power generation	Australia		12.37	%			4,095		4,129
Chile Solar JV SpA	Power generation	Chile		50.00	%			37,689		34,883
Taebaek Gadeoksan Wind Power Co., Ltd.	Power generation	Korea		47.31	%			12,570		13,362
Cheong-Song Noraesan Wind Power Co., Ltd.	Power generation	Korea		29.01	%			3,200		3,453
Chester Solar I SpA	Power generation	Chile		45.00	%			1,181		1,621
Solar Philippines Calatagan Corporation	Power generation	Philippines		38.00	%			47,903		49,017
Saemangeum Solar Power Co., Ltd.(*20)	Power generation	Korea		81.00	%			26,399		24,292
Chungsongmeon BongSan wind power Co., Ltd.(*16)	Power generation	Korea		29.00	%			2,900		4,124
Jaeun Resident Wind Power Plant Co., Ltd.(*16)	Power generation	Korea		29.00	%			2,494		2,195
DE Energia SpA	Power generation	Chile		49.00	%			8,364		8,187
Dangjin Eco Power Co., Ltd.	Power generation	Korea		34.00	%			25,661		25,523
Haemodum Solar Co., Ltd.	Power generation	Korea		49.00	%			2,940		3,065
Yangyang Wind Power Co., Ltd.	Power generation	Korea		50.00	%			10,800		10,485
Horus Solar, S.A. De C.V.(*21)	Renewable power generation	Mexico		14.95	%			5,068		3,394
Recursos Solares PV De Mexico II, S.A. De C.V.(*21)	Renewable power generation	Mexico		14.95	%			3,678		3,660
Sunmex Renovables, S.A. De C.V.(*21)	Renewable power generation	Mexico		14.95	%			307		240
Stavro Holding II A.B.	Holding company	Sweden		20.00	%			8,829		9,277
Solaseado Solar Power Co., Ltd.	Power generation	Korea		38.90	%			7,020		9,915
Yeongam Solar Power Co., Ltd.(*16)	Power generation	Korea		19.00	%			6,460		6,042
Samsu Wind Power Co., Ltd.(*16)	Power generation	Korea		19.00	%			2,637		2,607
Pulau Indah Power Plant Sdn. Bhd.	Power generation	Malaysia		25.00	%			11,569		11,204
Sam-Yang Photovoltaic Power Co., Ltd.	Power generation	Korea		49.00	%			5,245		5,535
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Holding company	Korea		29.53	%			20,952		22,242
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream(*15)	Holding company	Korea		90.00	%			15,699		16,129
PT Barito Wahana Tenaga	Power generation	Indonesia		30.61	%			59,395		63,029
Cheongna Energy Co., Ltd.(*20, 22)	Generating and distributing vapor and hot/cold water	Korea		50.10	%			49,344		4,940
Naepo Green Energy Co., Ltd.(*23)	Power generation	Korea		29.20	%			29,200		—
Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)(*24)	Power generation	Korea		30.66	%			71,070		—
OneEnergy Asia Limited	Power generation	Vietnam		40.00	%			56,654		56,654
KAS Investment I LLC(*25)	Holding company	USA		29.89	%			23,437		23,437
KAS Investment II LLC(*25)	Holding company	USA		29.89	%			23,343		23,343
Energyco LLC	Power generation	Korea		29.00	%			1,659		1,659

F-97

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
CAES, LLC	Holding company	USA		36.00	%	￦		19,414		17,626
Hapcheon Floating Photovoltaic Power Plant Inc.(*16)	Power generation	Korea		19.47	%			1,890		1,890
Busan Industrial Solar Power Co., Ltd.	Power generation	Korea		28.02	%			510		510
Bitsolar Energy Co., Ltd.	Power generation	Korea		27.10	%			352		352
								1,943,392		1,919,746
						￦		4,425,153		6,170,533

(*1) The effective percentage of ownership is 22.02% considering treasury stocks.

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

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

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

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

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

(*7) The Company recognized a full impairment loss for the carrying amount of Jinbhuvish Power Generation Pvt. Ltd. before the prior year, due to the Company’s decision to withdraw its business since there are no business activities occurring.

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

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

(*10) The effective percentage of ownership is less than 20%. However, the Company considers the major decision-making body to be the general decision of the board of directors, and the general decision of the board of directors can be passed only by two directors of Namjeongsusang Solar Power Operation Co., Ltd. Accordingly, the entity is classified as an associate.

(*11) According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

(*12) Even though the effective percentage of ownership is more than 50%, the Company does not hold control over the entity as it has less than 50% of decision-making rights. However the Company can exercise significant influence on the entity by participating in the board of directors and others.Therefore the entity is classified as an associate.

(*13) It was newly invested during the year ended December 31, 2020. The effective percentage of ownership is less than 20%. However, it is classified as an associate, judging that the Company can exercise significant influence on the entity.

(*14) The entities were newly invested during the year ended December 31, 2020. The effective percentage of ownership is less than 20%. However, the Company can exercise significant influence by virtue of its contractual right to appoint a director to the board of directors of the entity.

F-98

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

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

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

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

(*18) The effective percentage of ownership is less than 20%. However, all operation related decisions must be agreed by ownership parties. Accordingly, the entity is classified as joint ventures.

(*19) Although the nominal percentage of ownership is 29.00%, the effective percentage of ownership is 54.24%, considering the interest of financial investors as a liability component.

(*20) The effective percentage of ownership is more than 50%. However, all operation related decisions must be agreed by all ownership parties. Accordingly, the entity is classified as a joint venture.

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

(*22) The classification of the entity was changed from an associate to a joint venture, due to the additional investment during the year ended December 31, 2020.

(*23) The percentage of ownership decreased due to the unequal capital increase. The entity was reclassified from an associate to a joint venture, due to the changes in voting rights.

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

(*25) The entities were included in the joint ventures due to the new investment during the year ended December 31, 2020. Since the final settlement of the entity was not completed before the Company’s financial statements date, the financial statements of October 7, were used for consolidation.

F-99

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
<Associates>
Korea Gas Corporation(*1)	Importing and wholesaling LNG	Korea		20.47	%	￦		94,500		1,815,513
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering and others	Korea		29.00	%			4,727		24,617
YTN Co., Ltd.	Broadcasting	Korea		21.43	%			59,000		51,828
Gangwon Wind Power Co., Ltd.(*2)	Power generation	Korea		15.00	%			5,725		10,554
Hyundai Green Power Co., Ltd.	Power generation equipment consignment and operation service	Korea		29.00	%			88,885		121,955
Korea Power Exchange(*3)	Management of power market and others	Korea		100.00	%			127,839		269,728
Taebaek Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,810		6,800
Taebaek Guinemi Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,420		3,357
Pyeongchang Wind Power Co., Ltd.	Power generation	Korea		25.00	%			3,875		5,411
Daeryun Power Co., Ltd.(*2)	Power generation	Korea		9.34	%			40,854		25,426
Changjuk Wind Power Co., Ltd.	Power generation	Korea		30.00	%			3,801		8,355
KNH Solar Co., Ltd.	Power generation	Korea		27.00	%			1,296		2,278
SPC Power Corporation	Power generation	Philippines		38.00	%			20,635		65,046
Gemeng International Energy Co., Ltd.	Power generation	China		34.00	%			413,153		595,218
PT. Cirebon Electric Power	Power generation	Indonesia		27.50	%			40,365		121,969
KNOC Nigerian East Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		0
KNOC Nigerian West Oil Co., Ltd.(*4)	Resources development	Nigeria		14.63	%			12		0
PT Wampu Electric Power	Power generation	Indonesia		46.00	%			21,292		35,077
PT. Bayan Resources TBK	Resources development	Indonesia		20.00	%			615,860		661,289
S-Power Co., Ltd.	Power generation	Korea		49.00	%			132,300		122,786
Pioneer Gas Power Limited	Power generation	India		38.50	%			49,831		0
Eurasia Energy Holdings	Power generation and resources development	Russia		40.00	%			461		0
Xe-Pian Xe-Namnoy Power Co., Ltd.	Power generation	Laos		25.00	%			87,426		92,441
PT. Mutiara Jawa	Manufacturing and operating floating coal terminal	Indonesia		29.00	%			2,978		2,569
Samcheok Eco Materials Co., Ltd.(*5)	Recycling fly ashes	Korea		2.35	%			686		0
Noeul Green Energy Co., Ltd.	Power generation	Korea		29.00	%			1,740		3,808
Goseong Green Power Co., Ltd.	Power generation	Korea		29.00	%			262,740		260,858
Gangneung Eco Power Co., Ltd.(*2)	Power generation	Korea		1.61	%			2,900		2,288
Shin Pyeongtaek Power Co., Ltd.	Power generation	Korea		40.00	%			72,000		93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Power generation	Korea		28.00	%			194		223
Dongducheon Dream Power Co., Ltd.(*6)	Power generation	Korea		33.61	%			148,105		74,198
Jinbhuvish Power Generation Pvt. Ltd.(*2)	Power generation	India		5.16	%			9,000		0
Daejung Offshore Wind Power Co., Ltd.	Power generation	Korea		46.59	%			5,190		1,704
GS Donghae Electric Power Co., Ltd.	Power generation	Korea		34.00	%			204,000		243,772
Daegu Photovoltaic Co., Ltd.	Power generation	Korea		29.00	%			1,230		2,342
Busan Green Energy Co., Ltd.	Power generation	Korea		29.00	%			5,243		5,032
Gunsan Bio Energy Co., Ltd.(*2)	Power generation	Korea		18.87	%			1,000		0
Korea Electric Vehicle Charging Service(*2)	Electric vehicle charge service	Korea		17.50	%			2,800		1,250
Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.)	Electric material agency	Korea		28.98	%			537		219
Korea Electric Power Corporation Fund(*7)	Developing electric enterprises	Korea		98.09	%			48,410		47,983
Energy Infra Asset Management Co., Ltd.(*2)	Asset management	Korea		9.90	%			297		1,066
Daegu clean Energy Co., Ltd.	Renewable power generation	Korea		28.00	%			140		12
YaksuESS Co., Ltd.	Installing ESS related equipment	Korea		29.00	%			210		716
Nepal Water & Energy Development Company Private Limited (*8)	Construction and operation of utility plant	Nepal		69.06	%			70,228		66,333
Gwangyang Green Energy Co., Ltd.	Power generation	Korea		20.00	%			26,800		25,466
PND Solar Co., Ltd.	Power generation	Korea		29.00	%			1,250		1,229
Hyundai Eco Energy Co., Ltd.(*2)	Power generation	Korea		19.00	%			3,610		5,572
YeongGwang Yaksu Wind Electric Co., Ltd.(*2)	Power generation	Korea		9.63	%			533		233
Green Energy Electricity Generation Co., Ltd.	Power generation	Korea		29.00	%			1,189		1,713
Korea Energy Solutions Co., Ltd.	R & D	Korea		20.00	%			300		123
ITR Co., Ltd.	R & D	Korea		20.00	%			50		32
Structure test network Co., Ltd.	Technical testing and consulting	Korea		20.00	%			25		306
Namjeongsusang Solar Power Operation Co., Ltd.(*9)	Power generation	Korea		15.00	%			969		361

F-100

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
Indeck Niles Development, LLC(*10)	Power generation	USA		56.25	%	￦		268,113		246,273
Indeck Niles Asset Management, LLC	Power generation	USA		33.33	%			0		111
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Holding company	Korea		49.00	%			7,112		7,138
Suwon New Power Co., Ltd.	Power generation	Korea		39.90	%			798		1,035
KPGE Inc.	Power generation materials business	Korea		29.00	%			287		309
Gwangbaek Solar Power Investment Co., Ltd.	Power generation	Korea		44.00	%			4,757		4,806
Go deok Clean Energy Co., Ltd.	Fuel cell generation	Korea		40.00	%			5,560		4,302
SureDataLab Co., Ltd.	R & D	Korea		23.95	%			126		128
SEP Co., Ltd.	R & D	Korea		21.26	%			27		7
Hankook Electric Power Information Co., Ltd.	R & D	Korea		25.25	%			38		161
Tronix Co., Ltd.	R & D	Korea		20.00	%			75		109
O2&B Global Co., Ltd.	R & D	Korea		20.00	%			25		35
Muan Sunshine Solar Power Plant Co., Ltd.	Power generation	Korea		20.00	%			1,570		1,268
Bigeum Resident Photovoltaic Power Co., Ltd.	Power generation	Korea		29.90	%			1		0
Goesan Solar Park Co., Ltd.	Power generation	Korea		29.00	%			1,276		1,927
Saemangeum Heemang Photovoltaic Co., Ltd.	Power generation	Korea		35.00	%			11,022		10,238
Bitgoel Eco Energy Co., Ltd.	Power generation	Korea		29.00	%			4,640		4,356
Jeju Gimnyeong Wind Power Co., Ltd.	Power generation	Korea		30.00	%			714		911
Seoroseoro Sunny Power Plant Co., Ltd.	Power generation	Korea		42.58	%			706		721
Muan Solar P ark Co., Ltd.	Power generation	Korea		20.00	%			4,400		6,083
YuDang Solar Co., Ltd.	Power generation	Korea		20.00	%			360		565
Anjwa Smart Farm & Solar City Co., Ltd.	Power generation	Korea		20.00	%			5,651		6,784
Daewon Green Energy Co., Ltd.	Power generation	Korea		25.36	%			3,910		3,877
G.GURU Co., Ltd.	R & D	Korea		24.65	%			493		403
UD4M Co., Ltd.(*2)	R & D	Korea		12.50	%			75		144
Dongbu Highway Solar Co., Ltd.	Power generation	Korea		20.00	%			190		265
Seobu Highway Solar Co., Ltd.	Power generation	Korea		20.00	%			195		289
Korea Energy Data Co., Ltd.	R & D	Korea		29.37	%			60		62
Gangneung Sacheon Fuel Cell Co., Ltd.(*7)	Power generation	Korea		65.00	%			1,950		1,878
Kosture Co., Ltd.(*2)	Coal recycling business	Korea		0.26	%			0		0
Digital Innovation Growth Fund(*7)	Holding company	Korea		76.92	%			10,000		9,890
Taebaek Gadeoksan Wind Power Co., Ltd.(*18)	Power generation	Korea		39.65	%			12,570		16,495
Chuncheon Green Energy Co., Ltd.(*7)	Power generation	Korea		68.00	%			3,400		3,372
Yeomsubong Wind Power Co., Ltd.	Power generation	Korea		48.72	%			95		95
Yeongyang Wind Power Corporation II	Power generation	Korea		30.00	%			7,965		7,965
Haeparang Energy Co., Ltd.	Power generation	Korea		25.00	%			2,241		2,241
Saemangeum Sebit Power Plant Co., Ltd.(*7)	Power generation	Korea		69.55	%			6,000		6,000
								3,059,835		5,232,373
<Joint ventures>
KEPCO-Uhde Inc.(*11)	Power generation	Korea		52.80	%			11,355		58
Shuweihat Asia Power Investment B.V.	Holding company	Netherlands		49.00	%			44,405		37,069
Shuweihat Asia Operation & Maintenance Company(*11)	Maintenance of utility plant	Cayman		55.00	%			30		1,380
Waterbury Lake Uranium L.P.	Resources development	Canada		33.10	%			26,602		21,590
ASM-BG Investicii AD	Power generation	Bulgaria		50.00	%			16,101		18,692
RES Technology AD	Power generation	Bulgaria		50.00	%			15,595		16,703
KV Holdings, Inc.	Power generation	Philippines		40.00	%			2,103		2,527
KEPCO SPC Power Corporation(*11)	Construction and operation of utility plant	Philippines		75.20	%			94,579		198,979
Gansu Datang Yumen Wind Power Co., Ltd.	Power generation	China		40.00	%			16,621		6,635
Datang Chifeng Renewable Power Co., Ltd.	Power generation	China		40.00	%			121,928		204,587
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	Power generation	China		40.00	%			39,872		44,217
Rabigh Electricity Company	Power generation	Saudi Arabia		40.00	%			109,743		143,678
Rabigh Operation & Maintenance Company Limited	Maintenance of utility plant	Saudi Arabia		40.00	%			70		4,071
Jamaica Public Service Company Limited	Power generation	Jamaica		40.00	%			301,910		294,649
KW Nuclear Components Co., Ltd.	Manufacturing	Korea		45.00	%			833		15,734
Busan Shinho Solar Power Co., Ltd.	Power generation	Korea		25.00	%			2,100		5,841

F-101

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
Global Trade Of Power System Co., Ltd.(*12)	Exporting products and technology of small or medium business by proxy	Korea		29.00	%	￦		290		597
Expressway Solar-light Power Generation Co., Ltd.(*12)	Power generation	Korea		29.00	%			1,856		3,084
Amman Asia Electric Power Company(*11)	Power generation	Jordan		60.00	%			111,476		178,679
KAPES, Inc.(*11)	R & D	Korea		51.00	%			5,629		—
Honam Wind Power Co., Ltd.	Power generation	Korea		29.00	%			3,480		4,041
Korea Power Engineering Service Co., Ltd.	Construction and service	Korea		29.00	%			290		5,415
Chun-cheon Energy Co., Ltd.	Power generation	Korea		29.90	%			52,700		25,896
Yeonggwangbaeksu Wind Power Co., Ltd.(*12)	Power generation	Korea		15.00	%			3,000		2,728
Nghi Son 2 Power LLC	Power generation	Vietnam		50.00	%			2,781		—
Kelar S.A. (*11)	Power generation	Chile		65.00	%			78,060		86,695
PT. Tanjung Power Indonesia	Power generation	Indonesia		35.00	%			26,892		46,546
Incheon New Power Co., Ltd.(*13)	Power generation	Korea		29.00	%			461		—
Seokmun Energy Co., Ltd.	Power generation	Korea		29.00	%			15,370		13,842
Daehan Wind Power PSC	Power generation	Jordan		50.00	%			7,493		5,154
Barakah One Company(*14)	Power generation	UAE		18.00	%			118		—
Nawah Energy Company(*14)	Operation of utility plant	UAE		18.00	%			296		294
Momentum	International thermonuclear experimental reactor construction management	France		33.33	%			1		368
Daegu Green Power Co., Ltd.(*15)	Power generation	Korea		29.00	%			46,225		24,054
Yeonggwang Wind Power Co., Ltd.	Power generation	Korea		46.00	%			17,475		17,646
Chester Solar IV SpA	Power generation	Chile		45.00	%			1,700		—
Chester Solar V SpA	Power generation	Chile		45.00	%			525		25
Diego de Almagro Solar SpA	Power generation	Chile		45.00	%			2,091		362
South Jamaica Power Company Limited	Power generation	Jamaica		20.00	%			20,430		37,360
Daesan Green Energy Co., Ltd.	Power generation	Korea		35.00	%			17,850		21,244
RE Holiday Holdings LLC	Power generation	USA		50.00	%			42,948		73,167
RE Pioneer Holdings LLC	Power generation	USA		50.00	%			27,891		47,015
RE Barren Ridge 1 Holdings LLC	Power generation	USA		50.00	%			28,021		1,883
RE Astoria 2 LandCo LLC	Power generation	USA		50.00	%			5,188		5,998
RE Barren Ridge LandCo LLC	Power generation	USA		50.00	%			2,187		2,120
Laurel SpA	Power generation	Chile		45.00	%			1,222		290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd.(*12)	Power generation	Australia		12.37	%			4,095		3,625
Chile Solar JV SpA	Power generation	Chile		50.00	%			37,689		32,457
Cheong-Song Noraesan Wind Power Co., Ltd.	Power generation	Korea		29.01	%			3,200		4,106
Chester Solar I SpA	Power generation	Chile		45.00	%			1,181		1,120
Solar Philippines Calatagan Corporation	Power generation	Philippines		38.00	%			47,903		58,231
Saemangeum Solar Power Co., Ltd. (*16)	Power generation	Korea		81.01	%			26,400		23,939
Chungsongmeon BongSan wind power Co., Ltd.(*12)	Power generation	Korea		29.00	%			2,900		3,808
Jaeun Resident Wind Power Plant Co., Ltd.	Power generation	Korea		29.00	%			2,494		1,958
DE Energia SpA	Power generation	Chile		49.00	%			8,364		8,921
Dangjin Eco Power Co., Ltd.	Power generation	Korea		34.00	%			25,661		26,109
Haemodum Solar Co., Ltd.	Power generation	Korea		49.00	%			2,940		3,081
Yangyang Wind Power Co., Ltd.	Power generation	Korea		50.00	%			12,000		11,191
Horus Solar, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			5,068		5,842
Recursos Solares PV De Mexico II, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			3,678		4,536
Sunmex Renovables, S.A. De C.V.(*17)	Renewable power generation	Mexico		14.95	%			1,678		1,610
Stavro Holding II A.B.	Holding company	Sweden		20.00	%			17,615		17,627
Solaseado Solar Power Co., Ltd.	Power generation	Korea		38.90	%			7,020		9,891
Yeongam Solar Power Co., Ltd.(*12)	Power generation	Korea		19.00	%			6,460		6,838
Samsu Wind Power Co., Ltd.(*12)	Power generation	Korea		19.00	%			2,637		2,828
Pulau Indah Power Plant Sdn. Bhd.	Power generation	Malaysia		25.00	%			23,833		22,099
Sam-Yang Photovoltaic Power Co., Ltd.	Power generation	Korea		49.00	%			5,245		4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Holding company	Korea		29.53	%			19,983		21,456
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream(*11)	Holding company	Korea		90.00	%			15,699		16,288

F-102

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees	Key operation activities	Location	Percentage of ownership				Acquisition cost		Book value
	In millions of won
PT Barito Wahana Tenaga	Power generation	Indonesia		30.61	%	￦		59,535		81,595
Cheongna Energy Co., Ltd.(*16)	Generating and distributing vapor and hot/cold water	Korea		50.10	%			49,344		11,198
Naepo Green Energy Co., Ltd.	Power generation	Korea		29.20	%			29,200		0
Dayone Energy Co., Ltd.(*19)	Power generation	Korea		30.66	%			71,070		0
OneEnergy Asia Limited	Power generation	Vietnam		40.00	%			76,916		79,700
KAS Investment I LLC	Holding company	USA		29.89	%			23,437		15,273
KAS Investment II LLC	Holding company	USA		29.89	%			23,343		15,213
Energyco Co., Ltd. (formerly, Energyco LLC)	Power generation	Korea		29.00	%			1,659		1,535
CAES, LLC	Holding company	USA		36.00	%			19,414		18,435
Hapcheon Floating Photovoltaic Power Plant Inc.(*12)	Power generation	Korea		49.00	%			7,512		6,971
Busan Industrial Solar Power Co., Ltd.	Power generation	Korea		28.02	%			510		612
Bitsolar Energy Co., Ltd.	Power generation	Korea		27.10	%			352		352
Pulau Indah O&M Sdn. Bhd.(*20)	Power generation	Malaysia		60.00	%			0		0
Guadalupe Solar SpA(*20)	Power generation	Chile		60.00	%			1,397		659
Omisan Wind Power Co., Ltd.	Power generation	Korea		42.00	%			10,752		10,633
Foresight Iberian Solar Group Holding, S.L.(*20)	Power generation	Spain		75.00	%			9,697		9,743
Yeongwol Eco Wind Co., Ltd.	Power generation	Korea		29.00	%			3,089		3,196
Gurae Resident Power Co., Ltd.	Power generation	Korea		29.00	%			386		395
Cheongju Eco Park Co., Ltd.	Power generation	Korea		29.00	%			5,858		5,465
Enel X Midland Photovoltaic, LLC	Power generation	Korea		20.00	%			1,695		1,688
Geumsungsan Wind Power Co., Ltd.	Power generation	Korea		29.00	%			6,531		6,053
KEPCO KPS Carabao Corp.	Utility plant maintenance	Philippines		40.00	%			93		386
Prime Swedish Holding AB	Holding company	Sweden		45.00	%			14,514		15,441
Goheung New Energy Co., Ltd.	Power generation	Korea		46.15	%			12,959		11,708
Gunsan Land Solar Co., Ltd.(*20)	Power generation	Korea		75.29	%			19,091		19,317
CapMan Lynx SCA, SICAR	Holding company	Luxembourg		50.00	%			9,601		9,976
International Offshore Power Transmission Holding Company Limited	Undersea transmission network operation	UAE		35.00	%			0		0
								2,069,491		2,239,011
						￦		5,129,326		7,471,384

(*1) Due to changes in equity, the nominal and effective percentage of ownership are 20.47%.

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

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

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

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

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

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

F-103

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(1) Investments in associates and joint ventures as of December 31, 2020 and 2021 are as follows, continued:

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

(*9) The effective percentage of ownership is less than 20%. However, the Company considers the major decision-making body to be the general decision of the board of directors, and the general decision of the board of directors can be passed only by two directors of Namjeongsusang Solar Power Operation Co., Ltd. Accordingly, the entity is classified as an associate.

(*10) According to the shareholders’ agreement, additional investment of 50% of total stake is agreed by March 2022.

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

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

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

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

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

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

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

(*18) The percentage of ownership decreased due to the unequal capital increase. The entity was reclassified from a joint venture to an associate, due to the changes in voting rights.

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

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

F-104

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(2) The fair value of associates which are actively traded on an open market and have a readily available market value as of December 31, 2020 and 2021 are as follows:

Investees		2020		2021
		In millions of won
<Associates>
Korea Electric Power Industrial Development Co., Ltd.	￦		45,048		115,339
Korea Gas Corporation(*)			584,010		738,990
YTN Co., Ltd.			27,000		26,550
SPC Power Corporation			139,698		203,589
PT. Bayan Resources TBK			798,510		1,495,801

(*) An indicator of impairment has been identified for the Company’s investment in Korea Gas Corporation (“KOGAS”) for the years ended December 31, 2020 and 2021 as management determined that the carrying amount of the investment in KOGAS at ￦1,647,325 million and ￦1,815,513 million respectively were significantly higher than its fair value. Accordingly, management has assessed the recoverable amount of the investment by estimating the Company’s share of the present value of the estimated future cash flows expected to be generated by KOGAS. The carrying amount of KOGAS as at December 31, 2020 and 2021 are supported by the recoverable amount determination and as such, no impairment has been recognized for the years ended December 31, 2020 and 2021.

The recoverable amount estimate is most sensitive to assumptions regarding long-term revenue forecasts as well as the discount rate:

• Revenue forecasts: price and volume of gas sold are based on the long-term natural gas supply and demand programs approved by the Ministry of Trade, Industry & Energy.

• Discount rate: the discount rate is derived using the weighted average cost of capital methodology adjusted for any risks that are not reflected in the underlying cash flows. A real post-tax discount rate of 4.60% and 4.90% was applied to post-tax cash flows respectively as at December 31, 2020 and 2021.

Changes in circumstances may affect the assumptions used to determine recoverable amount and could result in an impairment of KOGAS at future reporting dates.

F-105

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows:

2020
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Korea Gas Corporation	￦		1,693,967		0		0			(7,182	)		(14,104	)		(25,023	)		(333	)		1,647,325
Korea Electric Power Industrial Development Co., Ltd.			25,393		0		0			(2,146	)		3,806			0			(1,423	)		25,630
YTN Co., Ltd.			39,747		0		0			(90	)		1,086			(6	)		(188	)		40,549
Cheongna Energy Co., Ltd.			1,411		990		0			0			2,518			0			(4,919	)		0
Gangwon Wind Power Co., Ltd.			12,327		0		0			(1,988	)		1,104			0			0			11,443
Hyundai Green Power Co., Ltd.			124,253		0		0			(8,889	)		17,410			0			0			132,774
Korea Power Exchange			258,899		0		0			0			1,860			1			8,362			269,122
Dayone Energy Co., Ltd.			0		0		0			0			0			0			0			0
Ecollite Co., Ltd.(*1)			0		0		0			0			0			0			0			0
Taebaek Wind Power Co., Ltd.			7,039		0		0			(175	)		(472	)		0			0			6,392
Taebaek Guinemi Wind Power Co., Ltd.			2,553		0		0			0			534			0			0			3,087
Pyeongchang Wind Power Co., Ltd.			5,877		0		0			(813	)		(37	)		0			0			5,027
Daeryun Power Co., Ltd.			26,247		0		0			0			104			0			2			26,353
Changjuk Wind Power Co., Ltd.			8,520		0		0			(750	)		97			0			0			7,867
KNH Solar Co., Ltd.			2,382		0		0			0			54			0			0			2,436
SPC Power Corporation			63,583		0		0			(10,764	)		5,491			11,649			(47	)		69,912
Gemeng International Energy Co., Ltd.			670,896		0		0			(11,620	)		15,965			4,468			(1	)		679,708
PT. Cirebon Electric Power			123,425		0		0			(9,782	)		11,330			434			(7,596	)		117,811
KNOC Nigerian East Oil Co., Ltd.			0		0		0			0			(22	)		671			(649	)		0
KNOC Nigerian West Oil Co., Ltd.			0		0		0			0			(22	)		617			(595	)		0
PT Wampu Electric Power			29,355		0		0			(1,303	)		3,245			(1,639	)		(1,793	)		27,865
PT. Bayan Resources TBK			445,141		0		0			(15,720	)		17,139			(21,256	)		(70	)		425,234
S-Power Co., Ltd.			115,784		0		0			0			(5,429	)		0			(63	)		110,292
Pioneer Gas Power Limited			0		0		0			0			0			0			0			0
Eurasia Energy Holdings			0		0		0			0			0			0			0			0
Xe-Pian Xe-Namnoy Power Co., Ltd.			72,935		0		0			0			(2,896	)		(5,469	)		0			64,570
Hadong Mineral Fiber Co., Ltd.			0		0		0			0			0			0			0			0
Green Biomass Co., Ltd.			108		0		(108	)		0			0			0			0			0
PT. Mutiara Jawa			1,438		0		0			0			459			(117	)		0			1,780
Samcheok Eco Materials Co., Ltd.			0		0		0			0			0			0			0			0
Noeul Green Energy Co., Ltd.			6,610		0		0			0			(2,413	)		0			0			4,197
Naepo Green Energy Co., Ltd.			0		0		0			0			(9,789	)		0			9,789			0
Goseong Green Power Co., Ltd.			2,340		0		0			0			(154	)		0			0			2,186
Gangneung Eco Power Co., Ltd.			2,430		0		0			0			(62	)		0			0			2,368
Shin Pyeongtaek Power Co., Ltd.			66,956		0		0			0			11,877			(3,604	)		(5,638	)		69,591
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			215		0		0			0			(5	)		0			0			210

F-106

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
Dongducheon Dream Power Co., Ltd.	￦		76,547		0		0			0			4,095			0			(5	)		80,637
Jinbhuvish Power Generation Pvt. Ltd.			0		0		0			0			0			0			0			0
Daejung Offshore Wind Power Co., Ltd.			2,361		0		0			0			(411	)		0			215			2,165
GS Donghae Electric Power Co., Ltd.			255,983		0		0			(25,796	)		14,265			0			(26	)		244,426
Daegu Photovoltaic Co., Ltd.			2,060		0		0			(325	)		331			0			0			2,066
Busan Green Energy Co., Ltd.			10,637		0		0			0			(1,862	)		0			3			8,778
Gunsan Bio Energy Co., Ltd.			0		0		0			0			0			0			0			0
Korea Electric Vehicle Charging Service			1,063		0		0			0			(491	)		0			4			576
Korea Nuclear Partners Co., Ltd.			0		247		0			0			(43	)		(4	)		0			200
Korea Electric Power Corporation Fund			41,126		0		0			0			(908	)		1,708			0			41,926
Energy Infra Asset Management Co., Ltd.			791		0		0			0			147			0			0			938
Daegu clean Energy Co., Ltd.			13		0		0			0			(1	)		0			0			12
YaksuESS Co., Ltd.			516		0		0			0			(62	)		0			0			454
Nepal Water & Energy Development Company Private Limited			31,145		14,697		0			0			(1,699	)		(1,466	)		0			42,677
Gwangyang Green Energy Co., Ltd.			948		0		0			0			(22	)		0			0			926
PND Solar Co., Ltd.			1,144		0		0			0			5			0			0			1,149
Hyundai Eco Energy Co., Ltd.			3,781		0		0			0			469			0			0			4,250
YeongGwang Yaksu Wind Electric Co., Ltd.			386		0		0			0			(74	)		0			0			312
Green Energy Electricity Generation Co., Ltd.			163		0		0			0			(138	)		0			0			25
Korea Energy Solutions Co., Ltd.			259		0		0			0			(62	)		0			0			197
ITR Co., Ltd.			33		0		0			0			7			0			0			40
Structure test network Co., Ltd.			21		0		0			0			6			0			0			27
Namjeongsusang Solar Power Operation Co., Ltd.			812		0		0			0			(709	)		0			0			103
Indeck Niles Development, LLC			0		45,562		0			0			(13,344	)		(9,846	)		(1,745	)		20,627
Indeck Niles Asset Management, LLC			87		0		0			(539	)		559			0			(6	)		101
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			7,126		294		(99	)		(291	)		296			0			0			7,326
Suwon New Power Co., Ltd.			798		0		0			0			256			0			0			1,054
KPGE Inc.			287		0		0			0			0			0			0			287
Gwangbaek Solar Power Investment Co., Ltd.			2,054		2,703		0			0			(75	)		0			0			4,682
Go deok Clean Energy Co., Ltd.			1,830		0		0			0			(843	)		(27	)		0			960
SureDataLab Co., Ltd.			0		126		0			0			(41	)		0			0			85
SEP Co., Ltd.			0		27		0			0			(13	)		0			0			14
Hankook Electric Power Information Co., Ltd.			0		38		0			0			101			0			0			139
Tronix Co., Ltd.			0		75		0			0			44			0			0			119
O2&B Global Co., Ltd.			0		25		0			0			(3	)		0			0			22
Muan Sunshine Solar Power Plant Co., Ltd.			0		79		0			0			(475	)		0			1,492			1,096
Bigeum Resident Photovoltaic Power Co., Ltd.			0		0		0			0			0			0			0			0
Jeju SolarOne Co., Ltd.			0		161		0			0			0			(2	)		0			159
Energy Innovation Fund I			0		4,000		0			(2	)		(159	)		0			(3,839	)		0
Goesan Solar Park Co., Ltd.			0		1,276		0			0			408			0			0			1,684
Saemangeum Heemang Photovoltaic Co., Ltd.			0		11,022		0			0			0			0			0			11,022
Bitgoel Eco Energy Co., Ltd.			0		29		0			0			0			0			0			29
Jeju Gimnyeong Wind Power Co., Ltd.			0		714		0			0			864			0			0			1,578

F-107

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
Seoroseoro Sunny Power Plant Co., Ltd.	￦		0		230		0			0			0			0			0			230
Muan Solar Park Co., Ltd.			0		4,180		0			0			0			0			0			4,180
YuDang Solar Co., Ltd.			0		360		0			0			0			0			0			360
Anjwa Smart Farm & Solar City Co., Ltd.			0		5,510		0			0			0			0			0			5,510
Daewon Green Energy Co., Ltd.			0		3,910		0			0			0			0			0			3,910
			4,251,802		96,255		(207	)		(98,175	)		59,092			(48,911	)		(9,069	)		4,250,787
<Joint ventures>
KEPCO-Uhde Inc.			134		0		0			0			(34	)		0			0			100
Shuweihat Asia Power Investment B.V.			18,318		0		0			(4,337	)		5,919			(6,636	)		0			13,264
Shuweihat Asia Operation & Maintenance Company			1,408		0		0			(922	)		1,074			(503	)		0			1,057
Waterbury Lake Uranium L.P.			20,562		0		0			0			4			(769	)		0			19,797
ASM-BG Investicii AD			19,376		0		0			(4,206	)		2,575			455			0			18,200
RES Technology AD			16,248		0		0			(1,981	)		1,051			612			0			15,930
KV Holdings, Inc.			2,441		0		0			(617	)		580			1			0			2,405
KEPCO SPC Power Corporation			214,794		0		0			(48,486	)		48,479			(12,995	)		(129	)		201,663
Gansu Datang Yumen Wind Power Co., Ltd.			8,149		0		0			0			(1,718	)		99			0			6,530
Datang Chifeng Renewable Power Co., Ltd.			185,307		0		0			(13,453	)		15,317			1,307			0			188,478
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			41,024		0		0			0			1,231			275			0			42,530
Rabigh Electricity Company			109,096		0		0			(14,956	)		25,474			(22,458	)		1			97,157
Rabigh Operation & Maintenance Company Limited			6,879		0		0			(5,340	)		2,788			(514	)		0			3,813
Jamaica Public Service Company Limited			253,607		0		0			(4,352	)		24,669			(10,891	)		3,188			266,221
KW Nuclear Components Co., Ltd.			9,052		0		0			(833	)		2,952			0			0			11,171
Busan Shinho Solar Power Co., Ltd.			5,045		0		0			(330	)		663			0			0			5,378
Global Trade Of Power System Co., Ltd.			571		0		0			0			(25	)		0			0			546
Expressway Solar-light Power Generation Co., Ltd.			2,883		0		0			0			13			0			0			2,896
Amman Asia Electric Power Company			192,164		0		0			(28,281	)		20,165			(22,795	)		0			161,253
KAPES, Inc.			10,832		0		0			0			(10,806	)		0			(26	)		0
Honam Wind Power Co., Ltd.			4,375		0		0			(435	)		(53	)		0			0			3,887
Jeongam Wind Power Co., Ltd.			4,437		0		0			0			183			0			0			4,620
Korea Power Engineering Service Co., Ltd.			4,902		0		0			0			446			0			14			5,362
Chun-cheon Energy Co., Ltd.			34,872		0		0			0			(7,354	)		0			0			27,518
Yeonggwangbaeksu Wind Power Co., Ltd.			3,040		0		0			0			84			0			0			3,124
Nghi Son 2 Power LLC			0		0		0			0			0			0			0			0
Kelar S.A.			70,462		0		0			0			14,864			(9,186	)		(4,691	)		71,449
PT. Tanjung Power Indonesia			34,327		0		0			0			7,522			(9,220	)		434			33,063
Incheon New Power Co., Ltd.			0		0		0			0			0			0			0			0
Seokmun Energy Co., Ltd.			17,342		0		0			0			(2,528	)		0			0			14,814
Daehan Wind Power PSC			1,757		4,302		0			0			(626	)		(5,433	)		0			0
Barakah One Company			0		0		0			0			0			0			0			0
Nawah Energy Company			285		0		0			0			2			(17	)		0			270
Momentum			553		0		0			(404	)		399			17			0			565
Daegu Green Power Co., Ltd.			22,824		0		0			0			128			0			93			23,045
Yeonggwang Wind Power Co., Ltd.			17,627		0		0			0			(371	)		0			0			17,256
Chester Solar IV SpA			672		0		0			0			389			80			(77	)		1,064
Chester Solar V SpA			146		0		0			0			135			17			(21	)		277
Diego de Almagro Solar SpA			1,035		0		0			0			455			107			(107	)		1,490
South Jamaica Power Company Limited			13,863		0		0			0			20,468			(2,432	)		(2	)		31,897
Daesan Green Energy Co., Ltd.			17,182		0		0			0			5,371			0			(1	)		22,552

F-108

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
RE Holiday Holdings LLC	￦		42,070		0		0			0			33,072			(6,333	)		0			68,809
RE Pioneer Holdings LLC			31,156		0		0			(1,246	)		24,466			(4,737	)		0			49,639
RE Barren Ridge 1 Holdings LLC			42,916		0		0			(872	)		(35,735	)		(1,843	)		0			4,466
RE Astoria 2 LandCo LLC			5,602		0		0			(249	)		210			(333	)		0			5,230
RE Barren Ridge LandCo LLC			1,966		0		0			(95	)		95			(119	)		0			1,847
Laurel SpA			595		0		0			0			498			80			(81	)		1,092
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			4,024		0		0			0			(24	)		129			0			4,129
Chile Solar JV SpA			34,859		0		0			0			187			(163	)		0			34,883
Taebaek Gadeoksan Wind Power Co., Ltd.			7,846		4,070		0			0			1,468			(22	)		0			13,362
Cheong-Song Noraesan Wind Power Co., Ltd.			3,043		0		0			0			409			0			1			3,453
Chester Solar I SpA			1,157		0		0			0			472			107			(115	)		1,621
Solar Philippines Calatagan Corporation			48,930		0		0			(6,439	)		6,745			(219	)		0			49,017
Saemangeum Solar Power Co., Ltd.			8,324		16,399		0			0			(431	)		0			0			24,292
Chungsongmeon BongSan wind power Co., Ltd.			2,764		0		0			0			(232	)		1,592			0			4,124
Jaeun Resident Wind Power Plant Co., Ltd.			2,198		0		0			0			(3	)		0			0			2,195
DE Energia SpA			8,665		0		0			0			506			572			(1,556	)		8,187
Dangjin Eco Power Co., Ltd.			25,661		0		0			0			96			(237	)		3			25,523
Haemodum Solar Co., Ltd.			2,940		0		0			0			140			(15	)		0			3,065
Yangyang Wind Power Co., Ltd.			10,800		0		0			0			(286	)		(29	)		0			10,485
Horus Solar, S.A. DE C.V.			3,403		1,665		0			0			(1,985	)		311			0			3,394
Recursos Solares PV De Mexico II, S.A. De C.V.			672		3,006		0			0			36			(54	)		0			3,660
Sunmex Renovables, S.A. De C.V.			222		85		0			0			(46	)		(21	)		0			240
Stavro Holding II A.B.			5,625		3,305		0			0			(156	)		346			157			9,277
Solaseado Solar Power Co., Ltd.			0		7,020		0			0			2,895			0			0			9,915
Yeongam Solar Power Co., Ltd.			0		6,460		0			0			(418	)		0			0			6,042
Samsu Wind Power Co., Ltd.			0		2,637		0			0			(30	)		0			0			2,607
Pulau Indah Power Plant Sdn. Bhd.			0		11,569		0			0			(144	)		(221	)		0			11,204
Sam-Yang Photovoltaic Power Co., Ltd.			0		5,245		0			0			290			0			0			5,535
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			0		20,952		0			(1,388	)		2,678			0			0			22,242
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			0		15,699		0			0			430			0			0			16,129
PT Barito Wahana Tenaga			0		59,395		0			0			4,923			(1,289	)		0			63,029
Cheongna Energy Co., Ltd.			0		0		0			0			21			0			4,919			4,940
Naepo Green Energy Co., Ltd.			0		0		0			0			0			0			0			0
Dayone Energy Co., Ltd.			0		0		0			0			0			0			0			0
OneEnergy Asia Limited			0		56,654		0			0			0			0			0			56,654
KAS Investment I LLC			0		23,437		0			0			0			0			0			23,437
KAS Investment II LLC			0		23,343		0			0			0			0			0			23,343
Energyco LLC			0		1,659		0			0			0			0			0			1,659
CAES, LLC			0		19,414		0			(297	)		0			0			(1,491	)		17,626
Hapcheon Floating Photovoltaic Power Plant Inc.			0		1,890		0			0			0			0			0			1,890
Busan Industrial Solar Power Co., Ltd.			0		510		0			0			0			0			0			510
Bitsolar Energy Co., Ltd.			0		352		0			0			0			0			0			352
			1,663,029		289,068		0			(139,519	)		220,032			(113,377	)		513			1,919,746
	￦		5,914,831		385,323		(207	)		(237,694	)		279,124			(162,288	)		(8,556	)		6,170,533

(*1) The Company recognized a impairment loss for the carrying amount of Ecollite Co., Ltd. during the prior period due to the suspension of operating activities. Ecollite Co., Ltd. has been removed from associates since it is under the process of liquidation as of December 31, 2020.

F-109

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Associates>
Korea Gas Corporation	￦		1,647,325		0		0			0			209,357			13,017			(54,186	)		1,815,513
Korea Electric Power Industrial Development Co., Ltd.			25,630		0		0			(1,966	)		378			0			575			24,617
YTN Co., Ltd.			40,549		0		0			(270	)		11,192			22			335			51,828
Gangwon Wind Power Co., Ltd.			11,443		0		0			(1,703	)		814			0			0			10,554
Hyundai Green Power Co., Ltd.			132,774		0		0			(8,888	)		(562	)		(1,346	)		(23	)		121,955
Korea Power Exchange			269,122		0		0			0			(10	)		0			616			269,728
Taebaek Wind Power Co., Ltd.			6,392		0		0			0			408			0			0			6,800
Taebaek Guinemi Wind Power Co., Ltd.			3,087		0		0			0			270			0			0			3,357
Pyeongchang Wind Power Co., Ltd.			5,027		0		0			0			384			0			0			5,411
Daeryun Power Co., Ltd.			26,353		0		0			0			(927	)		0			0			25,426
Changjuk Wind Power Co., Ltd.			7,867		0		0			(449	)		937			0			0			8,355
KNH Solar Co., Ltd.			2,436		0		0			0			(158	)		0			0			2,278
SPC Power Corporation			69,912		0		0			(20,468	)		5,311			10,291			0			65,046
Gemeng International Energy Co., Ltd.			679,708		0		0			(11,886	)		(154,930	)		82,326			0			595,218
PT. Cirebon Electric Power			117,811		0		0			(18,253	)		10,679			1,396			10,336			121,969
KNOC Nigerian East Oil Co., Ltd.			0		0		0			0			(14	)		(938	)		952			0
KNOC Nigerian West Oil Co., Ltd.			0		0		0			0			(15	)		(862	)		877			0
PT Wampu Electric Power			27,865		0		0			0			3,196			1,355			2,661			35,077
PT. Bayan Resources TBK			425,234		0		0			(68,666	)		267,874			36,885			(38	)		661,289
S-Power Co., Ltd.			110,292		0		0			0			12,437			57			0			122,786
Pioneer Gas Power Limited			0		0		0			0			0			0			0			0
Eurasia Energy Holdings			0		0		0			0			0			0			0			0
Xe-Pian Xe-Namnoy Power Co., Ltd.			64,570		0		0			0			19,306			8,565			0			92,441
Hadong Mineral Fiber Co., Ltd.			0		0		0			0			0			0			0			0
PT. Mutiara Jawa			1,780		0		0			0			630			159			0			2,569
Samcheok Eco Materials Co., Ltd.			0		0		0			0			0			0			0			0
Noeul Green Energy Co., Ltd.			4,197		0		0			0			(389	)		0			0			3,808
Goseong Green Power Co., Ltd.			2,186		259,840		0			0			(1,168	)		0			0			260,858
Gangneung Eco Power Co., Ltd.			2,368		0		0			0			(80	)		0			0			2,288
Shin Pyeongtaek Power Co., Ltd.			69,591		0		0			0			23,476			0			7			93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			210		0		0			0			13			0			0			223
Dongducheon Dream Power Co., Ltd.			80,637		0		0			0			(6,439	)		0			0			74,198
Jinbhuvish Power Generation Pvt. Ltd.			0		0		0			0			0			0			0			0
Daejung Offshore Wind Power Co., Ltd.			2,165		0		0			0			(461	)		0			0			1,704
GS Donghae Electric Power Co., Ltd.			244,426		0		0			(15,640	)		14,972			0			14			243,772
Daegu Photovoltaic Co., Ltd.			2,066		0		0			(206	)		482			0			0			2,342
Busan Green Energy Co., Ltd.			8,778		0		0			0			(3,750	)		0			4			5,032
Gunsan Bio Energy Co., Ltd.			0		0		0			0			0			0			0			0
Korea Electric Vehicle Charging Service			576		0		0			0			(283	)		0			957			1,250
Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.)			200		0		0			0			19			0			0			219
Korea Electric Power Corporation Fund			41,926		0		(3,090	)		0			9,065			82			0			47,983
Energy Infra Asset Management Co., Ltd.			938		0		0			0			128			0			0			1,066
Daegu clean Energy Co., Ltd.			12		0		0			0			0			0			0			12
YaksuESS Co., Ltd.			454		0		0			0			262			0			0			716
Nepal Water & Energy Development Company Private Limited			42,677		19,960		0			0			(616	)		4,312			0			66,333
Gwangyang Green Energy Co., Ltd.			926		24,800		0			0			(138	)		(122	)		0			25,466
PND Solar Co., Ltd.			1,149		0		0			0			80			0			0			1,229
Hyundai Eco Energy Co., Ltd.			4,250		0		0			0			1,322			0			0			5,572
YeongGwang Yaksu Wind Electric Co., Ltd.			312		0		0			0			(79	)		0			0			233
Green Energy Electricity Generation Co., Ltd.			25		0		0			0			1,688			0			0			1,713
Korea Energy Solutions Co., Ltd.			197		0		0			0			(74	)		0			0			123
ITR Co., Ltd.			40		0		0			0			(8	)		0			0			32
Structure test network Co., Ltd.			27		0		0			0			279			0			0			306
Namjeongsusang Solar Power Operation Co., Ltd.			103		0		0			0			258			0			0			361
Indeck Niles Development, LLC			20,627		222,551		0			0			(13,160	)		6,652			9,603			246,273
Indeck Niles Asset Management, LLC			101		0		0			0			567			0			(557	)		111

F-110

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	￦		7,326		0		(188	)		0			399			0			(399	)		7,138
Suwon New Power Co., Ltd.			1,054		0		0			0			(5	)		(14	)		0			1,035
KPGE Inc.			287		0		0			0			22			0			0			309
Gwangbaek Solar Power Investment Co., Ltd.			4,682		0		0			0			124			0			0			4,806
Go deok Clean Energy Co., Ltd.			960		3,730		0			0			(333	)		(55	)		0			4,302
SureDataLab Co., Ltd.			85		0		0			0			43			0			0			128
SEP Co., Ltd.			14		0		0			0			(7	)		0			0			7
Hankook Electric Power Information Co., Ltd.			139		0		0			0			22			0			0			161
Tronix Co., Ltd.			119		0		0			0			(10	)		0			0			109
O2&B Global Co., Ltd.			22		0		0			0			13			0			0			35
Muan Sunshine Solar Power Plant Co., Ltd.			1,096		0		0			0			172			0			0			1,268
Bigeum Resident Photovoltaic Power Co., Ltd.			0		0		0			0			0			0			0			0
Jeju SolarOne Co., Ltd.			159		45		(206	)		0			(1	)		0			3			0
Goesan Solar Park Co., Ltd.			1,684		0		0			0			249			(6	)		0			1,927
Saemangeum Heemang Photovoltaic Co., Ltd.			11,022		0		0			0			(784	)		0			0			10,238
Bitgoel Eco Energy Co., Ltd.			29		4,611		0			0			(261	)		(23	)		0			4,356
Jeju Gimnyeong Wind Power Co., Ltd.			1,578		0		0			0			(665	)		(2	)		0			911
Seoroseoro Sunny Power Plant Co., Ltd.			230		476		0			0			15			0			0			721
Muan Solar Park Co., Ltd.			4,180		220		0			0			1,683			0			0			6,083
YuDang Solar Co., Ltd.			360		0		0			0			205			0			0			565
Anjwa Smart Farm & Solar City Co., Ltd.			5,510		141		0			0			1,133			0			0			6,784
Daewon Green Energy Co., Ltd.			3,910		0		0			0			(33	)		0			0			3,877
G.GURU Co., Ltd.			0		493		0			0			(90	)		0			0			403
UD4M Co., Ltd.			0		75		0			0			217			0			(148	)		144
Dongbu Highway Solar Co., Ltd.			0		0		0			0			74			0			191			265
Seobu Highway Solar Co., Ltd.			0		0		0			0			94			0			195			289
Korea Energy Data Co., Ltd.			0		60		0			0			2			0			0			62
Gangneung Sacheon Fuel Cell Co., Ltd.			0		1,950		0			0			(72	)		0			0			1,878
Kosture Co., Ltd.			0		0		0			0			0			0			0			0
Digital Innovation Growth Fund			0		10,000		0			0			(110	)		0			0			9,890
Taebaek Gadeoksan Wind Power Co., Ltd.			0		0		0			0			2,532			0			13,963			16,495
Chuncheon Green Energy Co., Ltd.			0		3,400		0			0			(28	)		0			0			3,372
Yeomsubong Wind Power Co., Ltd.			0		95		0			0			0			0			0			95
Yeongyang Wind Power Corporation II			0		7,965		0			0			0			0			0			7,965
Haeparang Energy Co., Ltd.			0		2,241		0			0			0			0			0			2,241
Saemangeum Sebit Power Plant Co., Ltd.			0		6,000		0			0			0			0			0			6,000
			4,250,787		568,653		(3,484	)		(148,395	)		417,123			161,751			(14,062	)		5,232,373

F-111

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
<Joint ventures>
KEPCO-Uhde Inc.	￦		100		0		0			0			(42	)		0			0			58
Shuweihat Asia Power Investment B.V.			13,264		0		0			(2,467	)		4,564			21,708			0			37,069
Shuweihat Asia Operation & Maintenance Company			1,057		0		0			(881	)		1,101			103			0			1,380
Waterbury Lake Uranium L.P.			19,797		0		0			0			0			1,793			0			21,590
ASM-BG Investicii AD			18,200		0		0			(2,703	)		2,700			495			0			18,692
RES Technology AD			15,930		0		0			(676	)		1,116			333			0			16,703
KV Holdings, Inc.			2,405		0		0			(901	)		962			61			0			2,527
KEPCO SPC Power Corporation			201,663		0		0			(35,763	)		37,073			(3,994	)		0			198,979
Gansu Datang Yumen Wind Power Co., Ltd.			6,530		0		0			0			(619	)		724			0			6,635
Datang Chifeng Renewable Power Co., Ltd.			188,478		0		0			(14,191	)		9,342			20,958			0			204,587
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			42,530		0		0			(2,884	)		1,562			3,009			0			44,217
Rabigh Electricity Company			97,157		0		0			(7,221	)		17,896			35,846			0			143,678
Rabigh Operation & Maintenance Company Limited			3,813		0		0			(4,085	)		3,489			854			0			4,071
Jamaica Public Service Company Limited			266,221		0		0			(4,578	)		12,963			23,820			(3,777	)		294,649
KW Nuclear Components Co., Ltd.			11,171		0		0			(833	)		5,396			0			0			15,734
Busan Shinho Solar Power Co., Ltd.			5,378		0		0			(352	)		815			0			0			5,841
Global Trade Of Power System Co., Ltd.			546		0		0			0			51			0			0			597
Expressway Solar-light Power Generation Co., Ltd.			2,896		0		0			0			188			0			0			3,084
Amman Asia Electric Power Company			161,253		0		0			(27,428	)		18,487			26,367			0			178,679
KAPES, Inc.			0		0		0			0			0			0			0			0
Honam Wind Power Co., Ltd.			3,887		0		0			0			154			0			0			4,041
Jeongam Wind Power Co., Ltd.			4,620		5,808		(10,741	)		0			313			0			0			0
Korea Power Engineering Service Co., Ltd.			5,362		0		0			0			206			0			(153	)		5,415
Chun-cheon Energy Co., Ltd.			27,518		0		0			0			(1,622	)		0			0			25,896
Yeonggwangbaeksu Wind Power Co., Ltd.			3,124		0		—			0			(396	)		0			0			2,728
Nghi Son 2 Power LLC			0		0		0			0			0			0			0			0
Kelar S.A.			71,449		0		0			0			2,121			6,416			6,709			86,695
PT. Tanjung Power Indonesia			33,063		0		0			0			5,027			9,029			(573	)		46,546
Incheon New Power Co., Ltd.			0		0		0			0			0			0			0			0
Seokmun Energy Co., Ltd.			14,814		0		0			0			(972	)		0			0			13,842
Daehan Wind Power PSC			0		0		0			0			3,791			1,363			0			5,154
Barakah One Company			0		0		0			0			0			0			0			0
Nawah Energy Company			270		0		0			0			0			24			0			294
Momentum			565		0		0			(569	)		368			4			0			368
Daegu Green Power Co., Ltd.			23,045		0		0			0			982			0			27			24,054
Yeonggwang Wind Power Co., Ltd.			17,256		0		0			0			390			0			0			17,646
Chester Solar IV SpA			1,064		0		0			0			(1,083	)		(36	)		55			0
Chester Solar V SpA			277		0		0			0			(269	)		2			15			25
Diego de Almagro Solar SpA			1,490		0		0			0			(1,095	)		(123	)		90			362
South Jamaica Power Company Limited			31,897		0		0			0			2,515			2,949			(1	)		37,360
Daesan Green Energy Co., Ltd.			22,552		0		0			0			(1,308	)		0			0			21,244
RE Holiday Holdings LLC			68,809		0		0			(9,577	)		6,299			7,636			0			73,167
RE Pioneer Holdings LLC			49,639		0		0			(14,199	)		5,556			6,019			0			47,015
RE Barren Ridge 1 Holdings LLC			4,466		0		0			(1,365	)		(3,162	)		1,944			0			1,883
RE Astoria 2 LandCo LLC			5,230		0		0			(337	)		619			486			0			5,998
RE Barren Ridge LandCo LLC			1,847		0		0			(140	)		240			173			0			2,120
Laurel SpA			1,092		0		0			0			(798	)		(71	)		67			290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			4,129		0		0			0			(111	)		(393	)		0			3,625
Chile Solar JV SpA			34,883		0		0			0			831			(3,257	)		0			32,457
Cheong-Song Noraesan Wind Power Co., Ltd.			3,453		0		0			0			653			0			0			4,106
Chester Solar I SpA			1,621		0		0			0			(430	)		(195	)		124			1,120
Solar Philippines Calatagan Corporation			49,017		0		0			(5,961	)		5,961			9,214			0			58,231
Saemangeum Solar Power Co., Ltd.			24,292		1		0			0			(354	)		0			0			23,939

F-112

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(3) Changes in investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Beginning balance		Acquisitions		Disposals			Dividends received			Share of profit (loss)			Other comprehensive income (loss)			Others			Ending balance
		In millions of won
Chungsongmeon BongSan wind power Co., Ltd.	￦		4,124		0		0			0			(316	)		0			0			3,808
Jaeun Resident Wind Power Plant Co., Ltd.			2,195		0		0			0			(237	)		0			0			1,958
DE Energia SpA			8,187		0		0			0			0			734			0			8,921
Dangjin Eco Power Co., Ltd.			25,523		0		0			0			274			312			0			26,109
Haemodum Solar Co., Ltd.			3,065		0		0			0			16			0			0			3,081
Yangyang Wind Power Co., Ltd.			10,485		1,200		0			0			(488	)		(6	)		0			11,191
Horus Solar, S.A. De C.V.			3,394		0		0			0			2,396			52			0			5,842
Recursos Solares PV De Mexico II, S.A. DE C.V.			3,660		0		0			0			766			110			0			4,536
Sunmex Renovables, S.A. De C.V.			240		1,371		0			0			(49	)		48			0			1,610
Stavro Holding II A.B.			9,277		8,684		0			0			(55	)		(271	)		(8	)		17,627
Solaseado Solar Power Co., Ltd.			9,915		0		0			0			(24	)		0			0			9,891
Yeongam Solar Power Co., Ltd.			6,042		0		0			0			796			0			0			6,838
Samsu Wind Power Co., Ltd.			2,607		0		0			0			221			0			0			2,828
Pulau Indah Power Plant Sdn. Bhd.			11,204		12,264		0			0			(519	)		(850	)		0			22,099
Sam-Yang Photovoltaic Power Co., Ltd.			5,535		0		0			0			(542	)		0			0			4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			22,242		0		(969	)		(1,727	)		1,910			0			0			21,456
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			16,129		0		0			0			159			0			0			16,288
PT Barito Wahana Tenaga			63,029		140		0			0			4,194			14,232			0			81,595
Cheongna Energy Co., Ltd.			4,940		0		0			0			6,258			0			0			11,198
Naepo Green Energy Co., Ltd.			0		0		0			0			0			0			0			0
Dayone Energy Co., Ltd.			0		0		0			0			0			0			0			0
OneEnergy Asia Limited			56,654		20,262		0			0			(1,138	)		3,922			0			79,700
KAS Investment I LLC			23,437		0		0			0			(6,876	)		(1,288	)		0			15,273
KAS Investment II LLC			23,343		0		0			0			(6,515	)		(1,615	)		0			15,213
Energyco Co., Ltd. (formerly, Energyco LLC)			1,659		0		0			0			(60	)		(64	)		0			1,535
CAES, LLC			17,626		0		0			(1,009	)		(331	)		850			1,299			18,435
Hapcheon Floating Photovoltaic Power Plant Inc.			1,890		5,622		0			0			(541	)		0			0			6,971
Busan Industrial Solar Power Co., Ltd.			510		0		0			0			102			0			0			612
Bitsolar Energy Co., Ltd.			352		0		0			0			0			0			0			352
Pulau Indah O&M Sdn. Bhd.			0		0		0			0			0			0			0			0
Guadalupe Solar SpA			0		1,397		0			0			(672	)		(66	)		0			659
Omisan Wind Power Co., Ltd.			0		10,752		0			0			(119	)		0			0			10,633
Foresight Iberian Solar Group Holding, S.L.			0		0		0			0			72			0			9,671			9,743
Yeongwol Eco Wind Co., Ltd.			0		3,089		0			0			122			(15	)		0			3,196
Gurae Resident Power Co., Ltd.			0		386		0			0			12			(3	)		0			395
Cheongju Eco Park Co., Ltd.			0		5,858		0			0			(393	)		0			0			5,465
Enel X Midland Photovoltaic, LLC			0		1,695		0			0			(7	)		0			0			1,688
Geumsungsan Wind Power Co., Ltd.			0		6,531		0			0			(478	)		0			0			6,053
KEPCO KPS Carabao Corp.			0		93		0			0			293			0			0			386
Prime Swedish Holding AB			0		8,155		0			0			22			1,060			6,204			15,441
Taebaek Gadeoksan Wind Power Co., Ltd.			13,362		0		0			0			762			0			(14,124	)		0
Goheung New Energy Co., Ltd.			0		12,959		0			0			(1,251	)		0			0			11,708
Gunsan Land Solar Co., Ltd.			0		19,091		0			0			324			(98	)		0			19,317
CapMan Lynx SCA, SICAR			0		9,601		0			0			375			0			0			9,976
International Offshore Power Transmission Holding Company Limited			0		0		0			0			0			0			0			0
			1,919,746		134,959		(11,710	)		(139,847	)		139,933			190,305			5,625			2,239,011
	￦		6,170,533		703,612		(15,194	)		(288,242	)		557,056			352,056			(8,437	)		7,471,384

F-113

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows:

2020
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the period
		In millions of won
<Associates>
Korea Gas Corporation(*1)	￦		35,909,775		28,174,619		20,833,722		(172,060	)
Korea Electric Power Industrial Development Co., Ltd.			164,015		75,636		297,962		16,284
YTN Co., Ltd.			295,151		105,923		126,730		7,095
Gangwon Wind Power Co., Ltd.			77,297		1,336		23,350		7,472
Hyundai Green Power Co., Ltd.			874,574		416,732		390,442		55,591
Korea Power Exchange			337,577		68,455		104,698		979
Taebaek Wind Power Co., Ltd.			28,048		2,480		4,364		(561	)
Taebaek Guinemi Wind Power Co., Ltd.			44,434		32,085		5,023		1,368
Pyeongchang Wind Power Co., Ltd.			72,713		52,606		8,387		(154	)
Daeryun Power Co., Ltd.			789,277		498,346		126,343		1,941
Changjuk Wind Power Co., Ltd.			27,515		1,292		4,777		656
KNH Solar Co., Ltd.			18,240		9,219		3,564		728
SPC Power Corporation			255,462		17,705		47,091		39,677
Gemeng International Energy Co., Ltd.			7,427,157		5,428,013		1,955,707		64,077
PT. Cirebon Electric Power			730,020		301,615		246,014		40,676
KNOC Nigerian East Oil Co., Ltd.			22,215		93,736		0		(142	)
KNOC Nigerian West Oil Co., Ltd.			23,999		89,739		0		(142	)
PT Wampu Electric Power			199,841		139,264		20,265		7,372
PT. Bayan Resources TBK			1,544,875		795,131		1,646,390		219,406
S-Power Co., Ltd.			782,561		554,393		421,519		(10,805	)
Pioneer Gas Power Limited			260,344		359,790		0		(44,568	)
Eurasia Energy Holdings			556		993		0		0
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,138,994		876,336		140,069		(11,318	)
Hadong Mineral Fiber Co., Ltd.			203		231		0		0
PT. Mutiara Jawa			23,061		16,923		7,946		2,523
Samcheok Eco Materials Co., Ltd.			24,024		598		10,483		23
Noeul Green Energy Co., Ltd.			116,929		102,457		27,486		(8,303	)
Goseong Green Power Co., Ltd.			4,559,480		4,351,119		0		(12,280	)
Gangneung Eco Power Co., Ltd.			2,630,752		2,475,848		0		(3,623	)
Shin Pyeongtaek Power Co., Ltd.			1,020,650		814,369		520,468		32,002
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			2,001		1,258		387		(11	)
Dongducheon Dream Power Co., Ltd.			1,374,640		1,095,926		524,890		10,982
Jinbhuvish Power Generation Pvt. Ltd.			58,699		12,122		0		0
Daejung Offshore Wind Power Co., Ltd.			6,281		1,634		0		(810	)
GS Donghae Electric Power Co., Ltd.			2,174,835		1,455,935		685,579		41,955
Daegu Photovoltaic Co., Ltd.			13,843		6,718		3,343		1,149
Busan Green Energy Co., Ltd.			170,261		139,995		40,241		(6,422	)
Gunsan Bio Energy Co., Ltd.			9,340		28,322		0		(1,501	)
Korea Electric Vehicle Charging Service			8,173		6,116		10,807		(1,756	)
Korea Nuclear Partners Co., Ltd.			1,350		105		1,062		(150	)
Korea Electric Power Corporation Fund			42,988		249		82		(730	)
Energy Infra Asset Management Co., Ltd.			10,424		946		5,130		1,488
Daegu clean Energy Co., Ltd.			368		324		0		(1	)
Yaksu ESS Co., Ltd.			6,584		5,022		217		(212	)
Nepal Water & Energy Development Company Private Limited			109,321		41,093		0		(444	)
Gwangyang Green Energy Co., Ltd.			28,634		24,095		0		(113	)
PND Solar Co., Ltd.			38,997		35,566		5,129		(121	)
Hyundai Eco Energy Co., Ltd.			195,040		173,800		24,166		4,280
YeongGwang Yaksu Wind Electric Co., Ltd.			43,039		42,915		5,802		(637	)
Green Energy Electricity Generation Co., Ltd.			53,934		56,533		0		(920	)
Korea Energy Solutions Co., Ltd.			1,009		25		78		(280	)
ITR Co., Ltd.			418		220		153		(66	)
Structure test network Co., Ltd.			101		234		99		27
Namjeongsusang Solar Power Operation Co., Ltd.			63,041		62,488		1,128		(4,655	)
Indeck Niles Development, LLC			772,124		738,826		0		(29,392	)
Indeck Niles Asset Management, LLC			314		11		2,272		1,139

F-114

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the period
		In millions of won
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	￦		15,157		206		634		603
Suwon New Power Co., Ltd.			1,974		8		0		0
KPGE Inc.			1,021		32		354		5
Gwangbaek Solar Power Investment Co., Ltd.			339,223		329,298		13,192		(329	)
Go deok Clean Energy Co., Ltd.			1,639		65		0		(1,382	)
SureDataLab Co., Ltd.			400		47		303		(108	)
SEP Co., Ltd.			164		100		0		(63	)
Hankook Electric Power Information Co., Ltd.			1,163		613		1,208		390
Tronix Co., Ltd.			942		349		2,030		(6	)
O2&B Global Co., Ltd.			233		125		285		(57	)
Muan Sunshine Solar Power Plant Co., Ltd.			147,908		144,898		6,017		(2,365	)
Bigeum Resident Photovoltaic Power Co., Ltd.			11,164		11,551		0		(309	)
Jeju SolarOne Co., Ltd.			1,608		14		0		(4	)
Goesan Solar Park Co., Ltd.			56,332		50,524		2,809		(262	)
Saemangeum Heemang Photovoltaic Co., Ltd.			35,447		6,070		0		(1,943	)
Bitgoel Eco Energy Co., Ltd.			100		0		0		0
Jeju Gimnyeong Wind Power Co., Ltd.			72,557		67,297		8,927		(1,576	)
Seoroseoro Sunny Power Plant Co., Ltd.			1,182		0		0		0
Muan Solar Park Co., Ltd.			245,431		225,057		14,359		(966	)
YuDang Solar Co., Ltd.			23,360		20,876		1,611		686
Anjwa Smart Farm & Solar City Co., Ltd.			295,570		271,396		1,900		(1,684	)
Daewon Green Energy Co., Ltd.			15,370		122		0		(93	)
<Joint ventures>
KEPCO-Uhde Inc.			208		11		0		(66	)
Shuweihat Asia Power Investment B.V.			27,073		4		0		12,080
Shuweihat Asia Operation & Maintenance Company			1,960		38		2,689		1,953
Waterbury Lake Uranium L.P.			59,885		77		0		0
ASM-BG Investicii AD			80,261		43,861		13,355		5,150
RES Technology AD			67,232		35,372		8,381		2,102
KV Holdings, Inc.			6,013		0		27		1,449
KEPCO SPC Power Corporation			289,271		21,102		184,481		66,311
Gansu Datang Yumen Wind Power Co., Ltd.			69,668		53,343		7,157		(4,295	)
Datang Chifeng Renewable Power Co., Ltd.			747,990		276,796		119,955		39,439
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			182,342		76,018		26,378		2,914
Rabigh Electricity Company			2,294,880		1,898,701		293,722		94,927
Rabigh Operation & Maintenance Company Limited			28,666		19,133		26,268		7,318
Jamaica Public Service Company Limited			1,664,412		1,027,418		1,042,422		35,916
KW Nuclear Components Co., Ltd.			44,571		19,354		19,762		7,262
Busan Shinho Solar Power Co., Ltd.			39,266		17,754		7,296		2,652
Global Trade Of Power System Co., Ltd.			2,319		435		4,105		(96	)
Expressway Solar-light Power Generation Co., Ltd.			14,801		4,816		2,298		144
Amman Asia Electric Power Company			725,101		456,346		20,586		33,608
KAPES, Inc.			127,418		95,322		167,201		10,908
Honam Wind Power Co., Ltd.			36,237		22,945		4,433		(220	)
Jeongam Wind Power Co., Ltd.			89,829		78,279		9,757		412
Korea Power Engineering Service Co., Ltd.			24,162		5,674		9,435		1,538
Chun-cheon Energy Co., Ltd.			605,493		512,642		222,066		(24,597	)
Yeonggwangbaeksu Wind Power Co., Ltd.			90,758		69,967		11,232		572
Nghi Son 2 Power LLC			2,207,764		2,474,324		819,706		108,832
Kelar S.A.			598,901		492,838		93,375		16,863
PT. Tanjung Power Indonesia			645,152		550,687		90,255		20,487
Incheon New Power Co., Ltd.			3,439		2,914		1,519		(670	)
Seokmun Energy Co., Ltd.			227,539		176,457		33,677		(8,734	)
Daehan Wind Power PSC			98,544		106,254		0		(765	)
Barakah One Company			24,693,571		24,924,087		0		(4,520	)

F-115

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the period
		In millions of won
Nawah Energy Company	￦		139,286		137,788		0		12
Momentum			10,772		9,076		31,161		1,122
Daegu Green Power Co., Ltd.			549,034		469,126		221,382		290
Yeonggwang Wind Power Co., Ltd.			249,999		213,556		26,535		1,690
Chester Solar IV SpA			14,232		11,990		1,688		485
Chester Solar V SpA			4,674		4,313		588		150
Diego de Almagro Solar SpA			17,916		14,808		1,824		535
South Jamaica Power Company Limited			405,804		246,310		209,596		12,208
Daesan Green Energy Co., Ltd.			275,911		211,476		62,286		15,346
RE Holiday Holdings LLC			320,908		183,290		19,659		13,247
RE Pioneer Holdings LLC			236,565		137,287		12,410		8,821
RE Barren Ridge 1 Holdings LLC			194,643		87,171		10,679		(722	)
RE Astoria 2 LandCo LLC			10,733		274		664		541
RE Barren Ridge LandCo LLC			3,776		82		266		223
Laurel SpA			13,529		11,496		1,704		702
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			33,930		618		0		(191	)
Chile Solar JV SpA			74,776		5,011		4,390		1,476
Taebaek Gadeoksan Wind Power Co., Ltd.			142,731		114,487		10,587		2,411
Cheong-Song Noraesan Wind Power Co., Ltd.			55,460		43,771		7,411		2,039
Chester Solar I SpA			12,795		9,713		1,111		824
Solar Philippines Calatagan Corporation			97,947		47,098		23,182		15,249
Saemangeum Solar Power Co., Ltd.			34,363		4,180		0		(532	)
Chungsongmeon BongSan wind power Co., Ltd.			64,341		56,264		0		(1,206	)
Jaeun Resident Wind Power Plant Co., Ltd.			63,940		56,371		0		(645	)
DE Energia SpA			48,327		54,934		3,789		(21,087	)
Dangjin Eco Power Co., Ltd.			97,834		23,769		3,953		565
Haemodum Solar Co., Ltd.			19,041		12,786		1,188		286
Yangyang Wind Power Co., Ltd.			20,917		33		0		(572	)
Horus Solar, S.A. De C.V.			181,432		182,674		0		(13,285	)
Recursos Solares PV De Mexico II, S.A. De C.V.			81,257		71,295		0		243
Sunmex Renovables, S.A. De C.V.			7,781		6,204		0		(309	)
Stavro Holding II A.B.			46,394		9		0		(782	)
Solaseado Solar Power Co., Ltd.			349,855		327,865		43,782		7,443
Yeongam Solar Power Co., Ltd.			312,960		285,231		17,347		(3,324	)
Samsu Wind Power Co., Ltd.			59,597		45,877		0		243
Pulau Indah Power Plant Sdn. Bhd.			31,538		9,293		0		(894	)
Sam-Yang Photovoltaic Power Co., Ltd.			55,345		44,049		2,769		592
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			73,573		39		1,770		8,989
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			17,932		11		6		478
PT Barito Wahana Tenaga			205,894		0		0		28,631
Cheongna Energy Co., Ltd.			341,478		335,736		78,387		5,995
Naepo Green Energy Co., Ltd.			152,003		159,805		7,056		(28,043	)
Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)			441,875		496,355		93,832		30,269
OneEnergy Asia Limited			78,005		150		0		(578	)
KAS Investment I LLC			78,410		0		0		0
KAS Investment II LLC			78,096		0		0		0
Energyco LLC			3,425		563		0		(2,856	)
CAES, LLC			40,840		0		0		(1,656	)
Hapcheon Floating Photovoltaic Power Plant Inc.			9,708		0		0		0
Busan Industrial Solar Power Co., Ltd.			15,283		14,499		19		(485	)
Bitsolar Energy Co., Ltd.			144,758		149,561		0		(6,116	)

(*1) The loss for the year ended December 31, 2020 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

F-116

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
<Associates>
Korea Gas Corporation(*1)	￦		43,669,902		34,550,567		27,520,756		950,757
Korea Electric Power Industrial Development Co., Ltd.			158,163		73,278		312,705		7,233
YTN Co., Ltd.			367,950		126,062		137,439		51,044
Gangwon Wind Power Co., Ltd.			71,153		1,121		19,623		5,433
Hyundai Green Power Co., Ltd.			812,287		391,754		101,818		(280	)
Korea Power Exchange			331,640		61,912		110,075		492
Taebaek Wind Power Co., Ltd.			30,375		3,176		5,744		1,588
Taebaek Guinemi Wind Power Co., Ltd.			43,411		29,985		5,910		1,371
Pyeongchang Wind Power Co., Ltd.			69,939		48,295		10,087		1,537
Daeryun Power Co., Ltd.			757,157		476,152		188,193		(10,232	)
Changjuk Wind Power Co., Ltd.			29,539		1,690		6,213		3,265
KNH Solar Co., Ltd.			13,859		5,423		3,222		805
SPC Power Corporation			242,058		18,535		54,042		35,441
Gemeng International Energy Co., Ltd.			8,151,333		5,976,164		2,511,377		(404,570	)
PT. Cirebon Electric Power			697,614		254,089		273,650		39,965
KNOC Nigerian East Oil Co., Ltd.			24,693		102,722		0		(99	)
KNOC Nigerian West Oil Co., Ltd.			26,625		98,360		0		(99	)
PT Wampu Electric Power			209,172		132,917		20,294		7,102
PT. Bayan Resources TBK			2,884,474		743,452		3,264,057		1,456,893
S-Power Co., Ltd.			856,963		603,519		608,259		24,998
Pioneer Gas Power Limited			282,577		438,366		0		(36,864	)
Eurasia Energy Holdings			606		1,082		0		0
Xe-Pian Xe-Namnoy Power Co., Ltd.			1,321,406		947,430		161,686		76,996
PT. Mutiara Jawa			24,355		15,498		10,958		2,835
Samcheok Eco Materials Co., Ltd.			26,545		1,854		14,281		1,237
Noeul Green Energy Co., Ltd.			109,354		96,222		36,029		(1,269	)
Goseong Green Power Co., Ltd.			5,412,537		4,509,791		740,028		51,450
Gangneung Eco Power Co., Ltd.			4,001,681		3,851,537		0		(4,188	)
Shin Pyeongtaek Power Co., Ltd.			1,028,028		764,551		653,117		57,202
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			1,823		1,033		426		46
Dongducheon Dream Power Co., Ltd.			1,398,244		1,139,521		750,127		(16,685	)
Jinbhuvish Power Generation Pvt. Ltd.			62,926		12,995		0		0
Daejung Offshore Wind Power Co., Ltd.			5,321		1,664		0		(149	)
GS Donghae Electric Power Co., Ltd.			2,149,060		1,432,083		760,323		44,035
Daegu Photovoltaic Co., Ltd.			13,046		4,970		3,519		1,621
Busan Green Energy Co., Ltd.			163,016		145,664		45,088		(10,843	)
Gunsan Bio Energy Co., Ltd.			8,503		28,981		0		(1,496	)
Korea Electric Vehicle Charging Service			13,351		6,207		13,808		(1,022	)
Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.)			1,409		100		836		64
Korea Electric Power Corporation Fund			49,150		237		9,773		9,534
Energy Infra Asset Management Co., Ltd.			11,196		426		4,703		1,306
Daegu clean Energy Co., Ltd.			368		324		0		(1	)
YaksuESS Co., Ltd.			6,999		4,535		1,715		903
Nepal Water & Energy Development Company Private Limited			153,184		58,545		0		(642	)
Gwangyang Green Energy Co., Ltd.			128,375		1,136		0		(688	)
PND S olar Co., Ltd.			37,152		33,444		5,078		(128	)
Hyundai Eco Energy Co., Ltd.			186,309		158,111		25,762		6,921
YeongGwang Yaksu Wind Electric Co., Ltd.			40,484		41,176		7,066		(914	)
Green Energy Electricity Generation Co., Ltd.			75,664		72,442		2,796		(58	)
Korea Energy Solutions Co., Ltd.			654		40		228		(347	)
ITR Co., Ltd.			529		372		135		(29	)
Structure test network Co., Ltd.			1,665		400		1,451		1,134
Namjeongsusang Solar Power Operation Co., Ltd.			56,376		54,104		7,095		(1,280	)
Indeck Niles Development, LLC			1,051,557		729,078		0		(25,184	)
Indeck Niles Asset Management, LLC			347		13		2,232		1,135

F-117

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	￦		14,778		211		848		815
Suwon New Power Co., Ltd.			1,997		30		0		2
KPGE Inc.			1,086		20		709		77
Gwangbaek Solar Power Investment Co., Ltd.			320,001		309,796		14,615		125
Go deok Clean Energy Co., Ltd.			65,566		54,811		0		(2,482	)
SureDataLab Co., Ltd.			612		79		733		205
SEP Co., Ltd.			132		100		0		(2	)
Hankook Electric Power Information Co., Ltd.			1,512		876		1,887		229
Tronix Co., Ltd.			1,002		455		2,228		89
O2&B Global Co., Ltd.			231		54		345		3
Muan Sunshine Solar Power Plant Co., Ltd.			142,858		138,987		15,582		(156	)
Bigeum Resident Photovoltaic Power Co., Ltd.			22,159		23,158		0		(608	)
Goesan Solar Park Co., Ltd.			52,443		45,799		6,388		836
Saemangeum Heemang Photovoltaic Co., Ltd.			157,298		130,158		902		(2,237	)
Bitgoel Eco Energy Co., Ltd.			51,471		36,450		0		(900	)
Jeju Gimnyeong Wind Power Co., Ltd.			65,754		62,716		6,915		(2,085	)
Seoroseoro Sunny Power Plant Co., Ltd.			5,833		4,186		469		36
Muan Solar Park Co., Ltd.			226,920		198,132		30,990		8,639
YuDang Solar Co., Ltd.			22,430		19,604		3,452		626
Anjwa Smart Farm & Solar City Co., Ltd.			278,981		249,143		37,691		5,996
Daewon Green Energy Co., Ltd.			131,218		116,100		18		(130	)
G.GURU Co., Ltd.			1,644		8		58		(346	)
UD4M Co., Ltd.			1,359		205		1,004		196
Dongbu Highway Solar Co., Ltd.			18,794		17,721		2,394		163
Seobu Highway Solar Co., Ltd.			19,828		18,384		2,647		315
Korea Energy Data Co., Ltd.			238		27		86		6
Gangneung Sacheon Fuel Cell Co., Ltd.			2,758		3		0		(123	)
Kosture Co., Ltd.			150		26		166		11
Digital Innovation Growth Fund			12,857		0		4		(143	)
Taebaek Gadeoksan Wind Power Co., Ltd.			166,172		124,570		22,773		8,732
Chuncheon Green Energy Co., Ltd.			4,901		20		0		(101	)
Yeomsubong Wind Power Co., Ltd.			400		396		0		(17	)
Yeongyang Wind Power Corporation II			28,972		9,456		0		(1,233	)
Haeparang Energy Co., Ltd.			9,566		681		0		(2	)
Saemangeum Sebit Power Plant Co., Ltd.			105,259		96,963		0		(190	)
<Joint ventures>
KEPCO-Uhde Inc.			128		14		0		(84	)
Shuweihat Asia Power Investment B.V.			75,652		0		0		23,905
Shuweihat Asia Operation & Maintenance Company			2,586		77		2,821		2,002
Waterbury Lake Uranium L.P.			65,240		14		0		0
ASM-BG Investicii AD			74,977		37,593		13,161		5,365
RES Technology AD			63,495		30,090		8,142		2,220
KV Holdings, Inc.			6,318		1		10		2,405
KEPCO SPC Power Corporation			290,981		26,381		181,443		49,499
Gansu Datang Yumen Wind Power Co., Ltd.			75,268		58,680		9,666		(1,547	)
Datang Chifeng Renewable Power Co., Ltd.			827,213		315,746		120,989		24,398
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			198,437		87,895		29,094		3,905
Rabigh Electricity Company			2,410,335		1,910,203		266,822		34,268
Rabigh Operation & Maintenance Company Limited			29,107		18,930		32,079		9,808
Jamaica Public Service Company Limited			2,174,800		1,469,297		1,113,943		41,277
KW Nuclear Components Co., Ltd.			42,033		6,678		32,938		12,335
Busan Shinho Solar Power Co., Ltd.			37,016		13,653		7,918		3,261
Global Trade Of Power System Co., Ltd.			2,443		385		6,355		76
Expressway Solar-light Power Generation Co., Ltd.			13,747		3,113		2,637		466
Amman Asia Electric Power Company			731,745		433,946		17,753		30,815

F-118

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Total assets		Total liabilities		Sales		Profit (loss) for the year
		In millions of won
KAPES, Inc.	￦		92,790		59,099		87,775		1,571
Honam Wind Power Co., Ltd.			33,623		19,800		5,395		531
Korea Power Engineering Service Co., Ltd.			24,068		5,397		11,259		709
Chun-cheon Energy Co., Ltd.			610,650		523,223		327,534		(5,451	)
Yeonggwangbaeksu Wind Power Co., Ltd.			82,439		64,290		8,411		(2,302	)
Nghi Son 2 Power LLC			2,982,805		3,020,684		548,027		84,276
Kelar S.A.			655,236		526,063		84,504		3,641
PT. Tanjung Power Indonesia			713,715		580,727		89,491		14,511
Incheon New Power Co., Ltd.			3,240		2,606		2,336		109
Seokmun Energy Co., Ltd.			219,414		171,682		41,555		(3,434	)
Daehan Wind Power PSC			137,388		127,080		6,794		7,581
Barakah One Company			29,707,801		29,951,656		253,653		4,011
Nawah Energy Company			155,191		153,559		0		0
Momentum			7,546		6,442		34,527		1,105
Daegu Green Power Co., Ltd.			541,304		459,536		295,645		1,796
Yeonggwang Wind Power Co., Ltd.			239,701		202,410		25,892		958
Chester Solar IV SpA			11,966		12,144		1,344		(2,060	)
Chester Solar V SpA			4,034		4,256		440		(601	)
Diego de Almagro Solar SpA			15,155		14,572		1,615		(2,103	)
South Jamaica Power Company Limited			474,664		287,852		224,159		5,743
Daesan Green Energy Co., Ltd.			264,618		203,921		88,147		(3,310	)
RE Holiday Holdings LLC			335,130		188,796		19,724		10,897
RE Pioneer Holdings LLC			220,390		126,361		12,925		9,307
RE Barren Ridge 1 Holdings LLC			201,629		87,291		10,575		(541	)
RE Astoria 2 LandCo LLC			12,294		298		889		799
RE Barren Ridge LandCo LLC			4,328		89		345		315
Laurel SpA			10,566		10,350		1,159		(1,425	)
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			30,809		1,573		0		(916	)
Chile Solar JV SpA			68,445		3,531		3,060		1,408
Cheong-Song Noraesan Wind Power Co., Ltd.			57,047		43,106		7,929		2,309
Chester Solar I SpA			12,965		11,043		1,065		(1,146	)
Solar Philippines Calatagan Corporation			117,324		46,759		19,418		11,782
Saemangeum Solar Power Co., Ltd.			35,323		5,771		0		(631	)
Chungsongmeon BongSan wind power Co., Ltd.			74,683		67,696		0		(1,186	)
Jaeun Resident Wind Power Plant Co., Ltd.			81,477		74,724		0		(1,325	)
DE Energia SpA			49,201		59,587		5,219		(2,954	)
Dangjin Eco Power Co., Ltd.			98,010		22,223		4,139		805
Haemodum Solar Co., Ltd.			23,038		16,750		1,799		45
Yangyang Wind Power Co., Ltd.			53,586		31,291		0		(965	)
Horus Solar, S.A. De C.V.			192,650		177,514		8,392		16,664
Recursos Solares PV De Mexico II, S.A. De C.V.			153,855		138,033		0		4,842
Sunmex Renovables, S.A. De C.V.			90,956		80,218		0		(333	)
Stavro Holding II A.B.			88,220		87		0		(276	)
Solaseado Solar Power Co., Ltd.			367,915		345,987		41,684		4,170
Yeongam Solar Power Co., Ltd.			324,132		292,213		37,301		4,930
Samsu Wind Power Co., Ltd.			69,213		54,331		3,918		1,162
Pulau Indah Power Plant Sdn. Bhd.			404,458		338,635		228		(2,589	)
Sam-Yang Photovoltaic Power Co., Ltd.			50,837		40,647		7,376		150
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			70,910		38		3,428		6,468
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			18,121		23		333		288
PT Barito Wahana Tenaga			266,584		39		0		25,839
Cheongna Energy Co., Ltd.			357,248		338,763		77,640		12,743
Naepo Green Energy Co., Ltd.			222,885		249,415		7,044		(21,392	)
Dayone Energy Co., Ltd.			452,509		504,351		143,870		409

F-119

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(4) Summary of financial information of associates and joint ventures as of and for the years ended December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Total assets		Total liabilities		Sales			Profit (loss) for the year
		In millions of won
OneEnergy Asia Limited	￦		136,247		777		0			(2,844	)
KAS Investment I LLC			52,681		1,583		(19,390	)		(23,007	)
KAS Investment II LLC			52,476		1,581		(19,311	)		(21,801	)
Energyco Co., Ltd. (formerly, Energyco LLC)			59,662		57,227		168			(2,514	)
CAES, LLC			43,089		0		0			(923	)
Hapcheon Floating Photovoltaic Power Plant Inc.			73,978		59,832		1,120			(972	)
Busan Industrial Solar Power Co., Ltd.			19,085		17,937		1,879			566
Bitsolar Energy Co., Ltd.			80,307		85,340		8,298			(1,105	)
Pulau Indah O&M Sdn. Bhd.			0		0		0			0
Guadalupe Solar SpA			8,774		7,839		12			(1,119	)
Omisan Wind Power Co., Ltd.			128,724		103,802		0			(320	)
Foresight Iberian Solar Group Holding, S.L.			90,610		79,519		168			(603	)
Yeongwol Eco Wind Co., Ltd.			43,784		39,066		0			421
Gurae Resident Power Co., Ltd.			6,932		5,734		0			42
Cheongju Eco Park Co., Ltd.			138,657		120,485		6,454			(1,708	)
Enel X Midland Photovoltaic, LLC			9,053		611		122			(31	)
Geumsungsan Wind Power Co., Ltd.			66,862		47,906		0			(2,146	)
KEPCO KPS Carabao Corp.			3,482		2,516		5,309			733
Prime Swedish Holding AB			34,257		20		0			(5	)
Goheung New Energy Co., Ltd.			55,145		32,125		0			(2,711	)
Gunsan Land Solar Co., Ltd.			86,654		60,996		432			432
CapMan Lynx SCA, SICAR			113,658		93,706		0			0
International Offshore Power Transmission Holding Company Limited			5		0		0			0

(*1) The profit for the year ended December 31, 2021 is reduced by the associate entity’s net income (loss) attributable to non-controlling interests.

F-120

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows:

2020
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Korea Gas Corporation	￦		7,735,156			22.02	%		1,703,281			0		0			(55,956	)		1,647,325
Korea Electric Power Industrial Development Co., Ltd.			88,379			29.00	%		25,630			0		0			0			25,630
YTN Co., Ltd.			189,228			21.43	%		40,549			0		0			0			40,549
Gangwon Wind Power Co., Ltd.			75,961			15.00	%		11,394			49		0			0			11,443
Hyundai Green Power Co., Ltd.			457,842			29.00	%		132,774			0		0			0			132,774
Korea Power Exchange			269,122			100.00	%		269,122			0		0			0			269,122
Taebaek Wind Power Co., Ltd.			25,568			25.00	%		6,392			0		0			0			6,392
Taebaek Guinemi Wind Power Co., Ltd.			12,349			25.00	%		3,087			0		0			0			3,087
Pyeongchang Wind Power Co., Ltd.			20,107			25.00	%		5,027			0		0			0			5,027
Daeryun Power Co., Ltd.			290,931			9.34	%		27,173			0		0			(820	)		26,353
Changjuk Wind Power Co., Ltd.			26,223			30.00	%		7,867			0		0			0			7,867
KNH Solar Co., Ltd.			9,021			27.00	%		2,436			0		0			0			2,436
SPC Power Corporation			237,757			38.00	%		90,348			0		0			(20,436	)		69,912
Gemeng International Energy Co., Ltd.			1,999,144			34.00	%		679,709			0		0			(1	)		679,708
PT. Cirebon Electric Power			428,405			27.50	%		117,811			0		0			0			117,811
KNOC Nigerian East Oil Co., Ltd.			(71,521	)		14.63	%		(10,464	)		0		0			10,464			0
KNOC Nigerian West Oil Co., Ltd.			(65,740	)		14.63	%		(9,618	)		0		0			9,618			0
PT Wampu Electric Power			60,577			46.00	%		27,865			0		0			0			27,865
PT. Bayan Resources TBK			749,744			20.00	%		149,949			351,662		0			(76,377	)		425,234
S-Power Co., Ltd.			228,168			49.00	%		111,802			0		(1,510	)		0			110,292
Pioneer Gas Power Limited			(99,446	)		38.50	%		(38,284	)		22,278		0			16,006			0
Eurasia Energy Holdings			(437	)		40.00	%		(175	)		0		0			175			0
Xe-Pian Xe-Namnoy Power Co., Ltd.			262,658			25.00	%		65,665			305		(1,110	)		(290	)		64,570
Hadong Mineral Fiber Co., Ltd.			(28	)		8.33	%		(2	)		0		0			2			0
PT. Mutiara Jawa			6,138			29.00	%		1,780			0		0			0			1,780
Samcheok Eco Materials Co., Ltd.			23,426			25.54	%		5,983			0		0			(5,983	)		0
Noeul Green Energy Co., Ltd.			14,472			29.00	%		4,197			0		0			0			4,197
Goseong Green Power Co., Ltd.			208,361			1.12	%		2,324			0		(138	)		0			2,186
Gangneung Eco Power Co., Ltd.			154,904			1.61	%		2,496			0		(128	)		0			2,368
Shin Pyeongtaek Power Co., Ltd.			206,281			40.00	%		82,512			3,559		(16,480	)		0			69,591
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			743			28.00	%		208			0		0			2			210
Dongducheon Dream Power Co., Ltd.			278,714			34.01	%		94,791			1,757		(3,329	)		(12,582	)		80,637
Jinbhuvish Power Generation Pvt. Ltd.			46,577			5.16	%		2,403			0		0			(2,403	)		0
Daejung Offshore Wind Power Co., Ltd.			4,647			46.59	%		2,165			0		0			0			2,165
GS Donghae Electric Power Co., Ltd.			718,900			34.00	%		244,426			0		0			0			244,426
Daegu Photovoltaic Co., Ltd.			7,125			29.00	%		2,066			0		0			0			2,066
Busan Green Energy Co., Ltd.			30,266			29.00	%		8,777			0		0			1			8,778
Gunsan Bio Energy Co., Ltd.			(18,982	)		18.87	%		(3,582	)		0		0			3,582			0
Korea Electric Vehicle Charging Service			2,057			28.00	%		576			0		0			0			576
Korea Nuclear Partners Co., Ltd.			1,245			28.98	%		361			0		0			(161	)		200
Korea Electric Power Corporation Fund			42,739			98.09	%		41,923			0		0			3			41,926
Energy Infra Asset Management Co., Ltd.			9,478			9.90	%		938			0		0			0			938
Daegu clean Energy Co., Ltd.			44			28.00	%		12			0		0			0			12
Yaksu ESS Co., Ltd.			1,562			29.00	%		453			1		0			0			454
Nepal Water & Energy Development Company Private Limited			68,228			58.59	%		39,975			971		0			1,731			42,677
Gwangyang Green Energy Co., Ltd.			4,539			20.00	%		908			18		0			0			926
PND S olar Co., Ltd.			3,431			29.00	%		995			154		0			0			1,149
Hyundai Eco Energy Co., Ltd.			21,240			19.00	%		4,036			214		0			0			4,250
YeongGwang Yaksu Wind Electric Co., Ltd.			124			9.63	%		12			300		0			0			312
Green Energy Electricity Generation Co., Ltd.			(2,599	)		29.00	%		(754	)		779		0			0			25
Korea Energy Solutions Co., Ltd.			984			20.00	%		197			0		0			0			197
ITR Co., Ltd.			198			20.00	%		40			1		0			(1	)		40
Structure test network Co., Ltd.			(133	)		20.00	%		(27	)		54		0			0			27

F-121

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Namjeongsusang Solar Power Operation Co., Ltd.	￦		553			15.00	%		83			20		0			0			103
Indeck Niles Development, LLC			33,298			24.08	%		8,017			12,610		0			0			20,627
Indeck Niles Asset Management, LLC			303			33.33	%		101			0		0			0			101
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1			14,951			49.00	%		7,326			0		0			0			7,326
Suwon New Power Co., Ltd.			1,966			33.11	%		651			0		267			136			1,054
KPGE Inc.			989			29.00	%		287			0		0			0			287
Gwangbaek Solar Power Investment Co., Ltd.			9,925			44.00	%		4,367			315		0			0			4,682
Go deok Clean Energy Co., Ltd.			1,574			61.00	%		960			0		0			0			960
SureDataLab Co., Ltd.			353			23.95	%		85			0		0			0			85
SEP Co., Ltd.			64			21.26	%		14			0		0			0			14
Hankook Electric Power Information Co., Ltd.			550			25.25	%		139			0		0			0			139
Tronix Co., Ltd.			593			20.00	%		119			0		0			0			119
O2&B Global Co., Ltd.			108			20.00	%		22			0		0			0			22
Muan Sunshine Solar Power Plant Co., Ltd.			3,010			20.00	%		602			494		0			0			1,096
Bigeum Resident Photovoltaic Power Co., Ltd.			(387	)		29.90	%		(116	)		0		0			116			0
Jeju SolarOne Co., Ltd.			1,594			10.00	%		159			0		0			0			159
Goesan Solar Park Co., Ltd.			5,808			29.00	%		1,684			0		0			0			1,684
Saemangeum Heemang Photovoltaic Co., Ltd.			29,377			35.00	%		10,282			740		0			0			11,022
Bitgoel Eco Energy Co., Ltd.			100			29.00	%		29			0		0			0			29
Jeju Gimnyeong Wind Power Co., Ltd.			5,260			30.00	%		1,578			0		0			0			1,578
Seoroseoro Sunny Power Plant Co., Ltd.			1,182			19.46	%		230			0		0			0			230
Muan Solar Park Co., Ltd.			20,374			19.00	%		3,871			309		0			0			4,180
YuDang Solar Co., Ltd.			2,484			20.00	%		497			0		0			(137	)		360
Anjwa Smart Farm & Solar City Co., Ltd.			24,174			19.50	%		4,714			796		0			0			5,510
Daewon Green Energy Co., Ltd.			15,248			25.36	%		3,866			44		0			0			3,910
<Joint ventures>
KEPCO-Uhde Inc.			197			50.80	%		100			0		0			0			100
Shuweihat Asia Power Investment B.V.			27,069			49.00	%		13,264			0		0			0			13,264
Shuweihat Asia Operation & Maintenance Company			1,922			55.00	%		1,057			0		0			0			1,057
Waterbury Lake Uranium L.P.			59,808			33.10	%		19,797			0		0			0			19,797
ASM-BG Investicii AD			36,400			50.00	%		18,200			0		0			0			18,200
RES Technology AD			31,860			50.00	%		15,930			0		0			0			15,930
KV Holdings, Inc.			6,013			40.00	%		2,405			0		0			0			2,405
KEPCO SPC Power Corporation			268,169			75.20	%		201,663			0		0			0			201,663
Gansu Datang Yumen Wind Power Co., Ltd.			16,325			40.00	%		6,530			0		0			0			6,530
Datang Chifeng Renewable Power Co., Ltd.			471,194			40.00	%		188,478			0		0			0			188,478
Datang KEPCO Chaoyang Renewable Power Co., Ltd.			106,324			40.00	%		42,530			0		0			0			42,530
Rabigh Electricity Company			396,179			40.00	%		158,472			0		(60,511	)		(804	)		97,157
Rabigh Operation & Maintenance Company Limited			9,533			40.00	%		3,813			0		0			0			3,813
Jamaica Public Service Company Limited			636,994			40.00	%		254,798			29,357		0			(17,934	)		266,221
KW Nuclear Components Co., Ltd.			25,217			45.00	%		11,348			0		0			(177	)		11,171
Busan Shinho Solar Power Co., Ltd.			21,512			25.00	%		5,378			0		0			0			5,378
Global Trade Of Power System Co., Ltd.			1,884			29.00	%		546			0		0			0			546
Expressway Solar-light Power Generation Co., Ltd.			9,985			29.00	%		2,896			0		0			0			2,896
Amman Asia Electric Power Company			268,755			60.00	%		161,253			0		0			0			161,253
KAPES, Inc.			32,096			51.00	%		16,369			0		(19,567	)		3,198			0

F-122

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Net assets			Percentage of ownership(*)				Share in net assets			Investment differential			Intercompany transaction			Others			Book value
		In millions of won
<Joint ventures>
Honam Wind Power Co., Ltd.	￦		13,292			29.00	%			3,855			32			0			0			3,887
Jeongam Wind Power Co., Ltd.			11,550			40.00	%			4,620			0			0			0			4,620
Korea Power Engineering Service Co., Ltd.			18,488			29.00	%			5,362			0			0			0			5,362
Chun-cheon Energy Co., Ltd.			92,851			29.90	%			27,762			3			0			(247	)		27,518
Yeonggwangbaeksu Wind Power Co., Ltd.			20,791			15.00	%			3,119			5			0			0			3,124
Nghi Son 2 Power LLC			(266,560	)		50.00	%			(133,280	)		0			0			133,280			0
Kelar S.A.			106,063			65.00	%			68,941			2,508			0			0			71,449
PT. Tanjung Power Indonesia			94,465			35.00	%			33,063			0			0			0			33,063
Incheon New Power Co., Ltd.			525			29.00	%			152			0			0			(152	)		0
Seokmun Energy Co., Ltd.			51,082			29.00	%			14,814			0			0			0			14,814
Daehan Wind Power PSC			(7,710	)		50.00	%			(3,855	)		0			0			3,855			0
Barakah One Company			(230,516	)		18.00	%			(41,493	)		0			(27,845	)		69,338			0
Nawah Energy Company			1,498			18.00	%			270			0			0			0			270
Momentum			1,696			33.33	%			565			0			0			0			565
Daegu Green Power Co., Ltd.			79,908			54.24	%			43,342			84			0			(20,381	)		23,045
Yeonggwang Wind Power Co., Ltd.			36,443			46.00	%			16,764			492			0			0			17,256
Chester Solar IV SpA			2,242			45.00	%			1,009			55			0			0			1,064
Chester Solar V SpA			361			45.00	%			162			115			0			0			277
Diego de Almagro Solar SpA			3,108			45.00	%			1,399			91			0			0			1,490
South Jamaica Power Company Limited			159,494			20.00	%			31,899			0			0			(2	)		31,897
Daesan Green Energy Co., Ltd.			64,435			35.00	%	��		22,552			0			0			0			22,552
RE Holiday Holdings LLC			137,618			50.00	%			68,809			0			0			0			68,809
RE Pioneer Holdings LLC			99,278			50.00	%			49,639			0			0			0			49,639
RE Barren Ridge 1 Holdings LLC			107,472			50.00	%			53,736			0			0			(49,270	)		4,466
RE Astoria 2 LandCo LLC			10,459			50.00	%			5,230			0			0			0			5,230
RE Barren Ridge LandCo LLC			3,694			50.00	%			1,847			0			0			0			1,847
Laurel SpA			2,033			45.00	%			915			177			0			0			1,092
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			33,312			12.37	%			4,121			8			0			0			4,129
Chile Solar JV SpA			69,765			50.00	%			34,883			0			0			0			34,883
Taebaek Gadeoksan Wind Power Co., Ltd.			28,244			47.31	%			13,362			0			0			0			13,362
Cheong-Song Noraesan Wind Power Co., Ltd.			11,689			29.01	%			3,391			61			0			1			3,453
Chester Solar I SpA			3,082			45.00	%			1,387			234			0			0			1,621
Solar Philippines Calatagan Corporation			50,849			38.00	%			19,323			29,694			0			0			49,017
Saemangeum Solar Power Co., Ltd.			30,183			81.00	%			24,450			(158	)		0			0			24,292
Chungsongmeon BongSan wind power Co., Ltd.			8,077			29.00	%			2,342			1,782			0			0			4,124
Jaeun Resident Wind Power Plant Co., Ltd.			7,569			29.00	%			2,195			0			0			0			2,195
DE Energia SpA			(6,607	)		49.00	%			(3,237	)		0			0			11,424			8,187
Dangjin Eco Power Co., Ltd.			74,065			34.00	%			25,182			341			0			0			25,523
Haemodum Solar Co., Ltd.			6,255			49.00	%			3,065			0			0			0			3,065
Yangyang Wind Power Co., Ltd.			20,884			50.00	%			10,442			43			0			0			10,485
Horus Solar, S.A. De C.V.			(1,242	)		14.95	%			(186	)		3,580			0			0			3,394
Recursos Solares PV De Mexico II, S.A. De C.V.			9,962			14.95	%			1,489			2,171			0			0			3,660
Sunmex Renovables, S.A. De C.V.			1,577			14.95	%			236			4			0			0			240
Stavro Holding II A.B.			46,385			20.00	%			9,277			0			0			0			9,277
Solaseado Solar Power Co., Ltd.			21,990			38.90	%			8,554			1,361			0			0			9,915
Yeongam Solar Power Co., Ltd.			27,729			19.00	%			5,269			773			0			0			6,042
Samsu Wind Power Co., Ltd.			13,720			19.00	%			2,607			0			0			0			2,607
Pulau Indah Power Plant Sdn. Bhd.			22,245			25.00	%			5,561			5,643			0			0			11,204
Sam-Yang Photovoltaic Power Co., Ltd.			11,296			49.00	%			5,535			0			0			0			5,535
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			73,534			29.53	%			21,715			0			0			527			22,242
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			17,921			90.00	%			16,129			0			0			0			16,129

F-123

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2020
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others		Book value
		In millions of won
PT Barito Wahana Tenaga	￦		205,894			30.61	%		63,029			0		0			0		63,029
Cheongna Energy Co., Ltd.			5,742			50.10	%		2,877			3,137		(1,074	)		0		4,940
Naepo Green Energy Co., Ltd.			(7,802	)		29.20	%		(2,278	)		0		0			2,278		0
Dayone Energy Co., Ltd.			(54,480	)		46.30	%		(25,224	)		0		(923	)		26,147		0
OneEnergy Asia Limited			77,855			40.00	%		31,142			25,512		0			0		56,654
KAS Investment I LLC			78,410			29.89	%		23,437			0		0			0		23,437
KAS Investment II LLC			78,096			29.89	%		23,343			0		0			0		23,343
Energyco LLC			2,862			29.00	%		830			829		0			0		1,659
CAES, LLC			40,840			36.00	%		14,702			2,924		0			0		17,626
Hapcheon Floating Photovoltaic Power Plant Inc.			9,708			19.47	%		1,890			0		0			0		1,890
Busan Industrial Solar Power Co., Ltd.			784			28.02	%		220			290		0			0		510
Bitsolar Energy Co., Ltd.			(4,803	)		27.10	%		(1,302	)		1,654		0			0		352

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

F-124

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Associates>
Korea Gas Corporation	￦		9,119,335			20.47	%		1,866,728			0		0			(51,215	)		1,815,513
Korea Electric Power Industrial Development Co., Ltd.			84,885			29.00	%		24,617			0		0			0			24,617
YTN Co., Ltd.			241,863			21.43	%		51,828			0		0			0			51,828
Gangwon Wind Power Co., Ltd.			70,032			15.00	%		10,505			49		0			0			10,554
Hyundai Green Power Co., Ltd.			420,533			29.00	%		121,955			0		0			0			121,955
Korea Power Exchange			269,728			100.00	%		269,728			0		0			0			269,728
Taebaek Wind Power Co., Ltd.			27,199			25.00	%		6,800			0		0			0			6,800
Taebaek Guinemi Wind Power Co., Ltd.			13,426			25.00	%		3,357			0		0			0			3,357
Pyeongchang Wind Power Co., Ltd.			21,644			25.00	%		5,411			0		0			0			5,411
Daeryun Power Co., Ltd.			281,005			9.34	%		26,246			0		0			(820	)		25,426
Changjuk Wind Power Co., Ltd.			27,849			30.00	%		8,355			0		0			0			8,355
KNH Solar Co., Ltd.			8,436			27.00	%		2,278			0		0			0			2,278
SPC Power Corporation			223,523			38.00	%		84,939			0		0			(19,893	)		65,046
Gemeng International Energy Co., Ltd.			2,175,169			34.00	%		739,557			0		0			(144,339	)		595,218
PT. Cirebon Electric Power			443,525			27.50	%		121,969			0		0			0			121,969
KNOC Nigerian East Oil Co., Ltd.			(78,029	)		14.63	%		(11,416	)		0		0			11,416			0
KNOC Nigerian West Oil Co., Ltd.			(71,735	)		14.63	%		(10,495	)		0		0			10,495			0
PT Wampu Electric Power			76,255			46.00	%		35,077			0		0			0			35,077
PT. Bayan Resources TBK			2,141,022			20.00	%		428,204			309,464		0			(76,379	)		661,289
S-Power Co., Ltd.			253,444			49.00	%		124,188			0		(1,402	)		0			122,786
Pioneer Gas Power Limited			(155,789	)		38.50	%		(59,975	)		22,278		0			37,697			0
Eurasia Energy Holdings			(476	)		40.00	%		(190	)		0		0			190			0
Xe-Pian Xe-Namnoy Power Co., Ltd.			373,976			25.00	%		93,494			305		(1,069	)		(289	)		92,441
PT. Mutiara Jawa			8,857			29.00	%		2,569			0		0			0			2,569
Samcheok Eco Materials Co., Ltd.			24,691			25.54	%		6,306			0		0			(6,306	)		0
Noeul Green Energy Co., Ltd.			13,132			29.00	%		3,808			0		0			0			3,808
Goseong Green Power Co., Ltd.			902,746			29.00	%		261,796			0		(938	)		0			260,858
Gangneung Eco Power Co., Ltd.			150,144			1.61	%		2,419			0		(131	)		0			2,288
Shin Pyeongtaek Power Co., Ltd.			263,477			40.00	%		105,391			3,559		(15,876	)		0			93,074
Haeng Bok Do Si Photovoltaic Power Co., Ltd.			790			28.00	%		221			0		0			2			223
Dongducheon Dream Power Co., Ltd.			258,723			34.01	%		87,992			1,757		(2,969	)		(12,582	)		74,198
Jinbhuvish Power Generation Pvt. Ltd.			49,931			5.16	%		2,576			0		0			(2,576	)		0
Daejung Offshore Wind Power Co., Ltd.			3,657			46.59	%		1,704			0		0			0			1,704
GS Donghae Electric Power Co., Ltd.			716,977			34.00	%		243,772			0		0			0			243,772
Daegu Photovoltaic Co., Ltd.			8,076			29.00	%		2,342			0		0			0			2,342
Busan Green Energy Co., Ltd.			17,352			29.00	%		5,032			0		0			0			5,032
Gunsan Bio Energy Co., Ltd.			(20,478	)		18.87	%		(3,864	)		0		0			3,864			0
Korea Electric Vehicle Charging Service			7,144			17.50	%		1,250			0		0			0			1,250
Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.)			1,309			28.98	%		379			0		0			(160	)		219
Korea Electric Power Corporation Fund			48,913			98.09	%		47,979			0		0			4			47,983
Energy Infra Asset Management Co., Ltd.			10,770			9.90	%		1,066			0		0			0			1,066
Daegu clean Energy Co., Ltd.			44			28.00	%		12			0		0			0			12
YaksuESS Co., Ltd.			2,464			29.00	%		715			1		0			0			716
Nepal Water & Energy Development Company Private Limited			94,639			69.06	%		65,361			972		0			0			66,333
Gwangyang Green Energy Co., Ltd.			127,239			20.00	%		25,448			18		0			0			25,466
PND Solar Co., Ltd.			3,708			29.00	%		1,075			154		0			0			1,229
Hyundai Eco Energy Co., Ltd.			28,198			19.00	%		5,358			214		0			0			5,572
YeongGwang Yaksu Wind Electric Co., Ltd.			(692	)		9.63	%		(67	)		300		0			0			233
Green Energy Electricity Generation Co., Ltd.			3,222			29.00	%		934			779		0			0			1,713
Korea Energy Solutions Co., Ltd.			614			20.00	%		123			0		0			0			123
ITR Co., Ltd.			157			20.00	%		31			1		0			0			32
Structure Test Network Co., Ltd.			1,265			20.00	%		253			53		0			0			306

F-125

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction		Others		Book value
		In millions of won
<Associates>
Namjeongsusang Solar Power Operation Co., Ltd.	￦		2,272			15.00	%		341			20		0		0		361
Indeck Niles Development, LLC			322,479			56.25	%		181,395			64,878		0		0		246,273
Indeck Niles Asset Management, LLC			334			33.33	%		111			0		0		0		111
Hanwha Corporation-linked Sunlight Power SpecialPrivate Equity Investment Trust No. 1			14,567			49.00	%		7,138			0		0		0		7,138
Suwon New Power Co., Ltd.			1,967			39.90	%		785			0		250		0		1,035
KPGE Inc.			1,066			29.00	%		309			0		0		0		309
Gwangbaek Solar Power Investment Co., Ltd.			10,205			44.00	%		4,490			316		0		0		4,806
Go deok Clean Energy Co., Ltd.			10,755			40.00	%		4,302			0		0		0		4,302
SureDataLab Co., Ltd.			533			23.95	%		128			0		0		0		128
SEP Co., Ltd.			32			21.26	%		7			0		0		0		7
Hankook Electric Power Information Co., Ltd.			636			25.25	%		161			0		0		0		161
Tronix Co., Ltd.			547			20.00	%		109			0		0		0		109
O2&B Global Co., Ltd.			177			20.00	%		35			0		0		0		35
Muan Sunshine Solar Power Plant Co., Ltd.			3,871			20.00	%		774			494		0		0		1,268
Bigeum Resident Photovoltaic Power Co., Ltd.			(999	)		29.90	%		(299	)		24		0		275		0
Goesan Solar Park Co., Ltd.			6,644			29.00	%		1,927			0		0		0		1,927
Saemangeum Heemang Photovoltaic Co., Ltd.			27,140			35.00	%		9,499			739		0		0		10,238
Bitgoel Eco Energy Co., Ltd.			15,021			29.00	%		4,356			0		0		0		4,356
Jeju Gimnyeong Wind Power Co., Ltd.			3,038			30.00	%		911			0		0		0		911
Seoroseoro Sunny Power Plant Co., Ltd.			1,647			42.58	%		701			20		0		0		721
Muan Solar Park Co., Ltd.			28,788			20.00	%		5,758			325		0		0		6,083
YuDang Solar Co., Ltd.			2,826			20.00	%		565			0		0		0		565
Anjwa Smart Farm & Solar City Co., Ltd.			29,838			20.00	%		5,968			816		0		0		6,784
Daewon Green Energy Co., Ltd.			15,118			25.36	%		3,833			44		0		0		3,877
G.GURU Co., Ltd.			1,636			24.65	%		403			0		0		0		403
UD4M Co., Ltd.			1,154			12.50	%		144			0		0		0		144
Dongbu Highway Solar Co., Ltd.			1,073			20.00	%		215			50		0		0		265
Seobu Highway Solar Co., Ltd.			1,444			20.00	%		289			0		0		0		289
Korea Energy Data Co., Ltd.			211			29.37	%		62			0		0		0		62
Gangneung Sacheon Fuel Cell Co., Ltd.			2,755			65.00	%		1,791			87		0		0		1,878
Kosture Co., Ltd.			124			0.26	%		0			0		0		0		0
Digital Innovation Growth Fund			12,857			76.92	%		9,890			0		0		0		9,890
Taebaek Gadeoksan Wind Power Co., Ltd.			41,602			39.65	%		16,495			0		0		0		16,495
Chuncheon Green Energy Co., Ltd.			4,881			68.00	%		3,319			53		0		0		3,372
Yeomsubong Wind Power Co., Ltd.			4			48.72	%		2			93		0		0		95
Yeongyang Wind Power Corporation II			19,516			30.00	%		5,855			2,110		0		0		7,965
Haeparang Energy Co., Ltd.			8,885			25.00	%		2,221			20		0		0		2,241
Saemangeum Sebit Power Plant Co., Ltd.			8,296			69.55	%		5,770			230		0		0		6,000
<Joint ventures>
KEPCO-Uhde Inc.			114			50.85	%		58			0		0		0		58
Shuweihat Asia Power Investment B.V.			75,652			49.00	%		37,069			0		0		0		37,069
Shuweihat Asia Operation & MaintenanceCompany			2,509			55.00	%		1,380			0		0		0		1,380
Waterbury Lake Uranium L.P.			65,226			33.10	%		21,590			0		0		0		21,590
ASM-BG Investicii AD			37,384			50.00	%		18,692			0		0		0		18,692
RES Technology AD			33,405			50.00	%		16,703			0		0		0		16,703
KV Holdings, Inc.			6,317			40.00	%		2,527			0		0		0		2,527
KEPCO SPC Power Corporation			264,600			75.20	%		198,979			0		0		0		198,979
Gansu Datang Yumen Wind Power Co., Ltd.			16,588			40.00	%		6,635			0		0		0		6,635
Datang Chifeng Renewable Power Co., Ltd.			511,467			40.00	%		204,587			0		0		0		204,587

F-126

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential		Intercompany transaction			Others			Book value
		In millions of won
<Joint ventures>
Datang KEPCO Chaoyang Renewable Power Co., Ltd.	￦		110,542			40.00	%		44,217			0		0			0			44,217
Rabigh Electricity Company			500,132			40.00	%		200,053			0		(55,571	)		(804	)		143,678
Rabigh Operation & Maintenance Company Limited			10,177			40.00	%		4,071			0		0			0			4,071
Jamaica Public Service Company Limited			705,503			40.00	%		282,201			29,357		0			(16,909	)		294,649
KW Nuclear Components Co., Ltd.			35,355			45.00	%		15,910			0		0			(176	)		15,734
Busan Shinho Solar Power Co., Ltd.			23,363			25.00	%		5,841			0		0			0			5,841
Global Trade Of Power System Co., Ltd.			2,058			29.00	%		597			0		0			0			597
Expressway Solar-light Power Generation Co., Ltd.			10,634			29.00	%		3,084			0		0			0			3,084
Amman Asia Electric Power Company			297,799			60.00	%		178,679			0		0			0			178,679
KAPES, Inc.			33,691			51.00	%		17,182			0		(20,697	)		3,515			0
Honam Wind Power Co., Ltd.			13,823			29.00	%		4,009			32		0			0			4,041
Korea Power Engineering Service Co., Ltd.			18,671			29.00	%		5,415			0		0			0			5,415
Chun-cheon Energy Co., Ltd.			87,427			29.90	%		26,141			3		0			(248	)		25,896
Yeonggwangbaeksu Wind Power Co., Ltd.			18,149			15.00	%		2,722			6		0			0			2,728
Nghi Son 2 Power LLC			(37,879	)		50.00	%		(18,940	)		0		0			18,940			0
Kelar S.A.			129,173			65.00	%		83,962			2,733		0			0			86,695
PT. Tanjung Power Indonesia			132,988			35.00	%		46,546			0		0			0			46,546
Incheon New Power Co., Ltd.			634			29.00	%		184			0		0			(184	)		0
Seokmun Energy Co., Ltd.			47,732			29.00	%		13,842			0		0			0			13,842
Daehan Wind Power PSC			10,308			50.00	%		5,154			0		0			0			5,154
Barakah One Company			(243,855	)		18.00	%		(43,894	)		0		1,058			42,836			0
Nawah Energy Company			1,632			18.00	%		294			0		0			0			294
Momentum			1,104			33.33	%		368			0		0			0			368
Daegu Green Power Co., Ltd.			81,768			54.24	%		44,351			84		0			(20,381	)		24,054
Yeonggwang Wind Power Co., Ltd.			37,291			46.00	%		17,154			492		0			0			17,646
Chester Solar IV SpA			(178	)		45.00	%		(80	)		60		0			20			0
Chester Solar V SpA			(222	)		45.00	%		(100	)		125		0			0			25
Diego de Almagro Solar SpA			583			45.00	%		262			100		0			0			362
South Jamaica Power Company Limited			186,812			20.00	%		37,362			0		0			(2	)		37,360
Daesan Green Energy Co., Ltd.			60,697			35.00	%		21,244			0		0			0			21,244
RE Holiday Holdings LLC			146,334			50.00	%		73,167			0		0			0			73,167
RE Pioneer Holdings LLC			94,029			50.00	%		47,015			0		0			0			47,015
RE Barren Ridge 1 Holdings LLC			114,338			50.00	%		57,169			0		0			(55,286	)		1,883
RE Astoria 2 LandCo LLC			11,996			50.00	%		5,998			0		0			0			5,998
RE Barren Ridge LandCo LLC			4,239			50.00	%		2,120			0		0			0			2,120
Laurel SpA			216			45.00	%		97			193		0			0			290
KIAMCO KOWEPO Bannerton Hold Co Pty Ltd			29,236			12.37	%		3,616			9		0			0			3,625
Chile Solar JV SpA			64,914			50.00	%		32,457			0		0			0			32,457
Cheong-Song Noraesan Wind Power Co., Ltd.			13,941			29.01	%		4,045			61		0			0			4,106
Chester Solar I SpA			1,922			45.00	%		865			255		0			0			1,120
Solar Philippines Calatagan Corporation			70,565			38.00	%		26,815			0		0			31,416			58,231
Saemangeum Solar Power Co., Ltd.			29,552			81.01	%		23,939			0		0			0			23,939
Chungsongmeon BongSan wind power Co., Ltd.			6,987			29.00	%		2,026			1,782		0			0			3,808
Jaeun Resident Wind Power Plant Co., Ltd.			6,753			29.00	%		1,958			0		0			0			1,958
DE Energia SpA			(10,386	)		49.00	%		(5,089	)		0		0			14,010			8,921
Dangjin Eco Power Co., Ltd.			75,787			34.00	%		25,768			341		0			0			26,109
Haemodum Solar Co., Ltd.			6,288			49.00	%		3,081			0		0			0			3,081
Yangyang Wind Power Co., Ltd.			22,295			50.00	%		11,148			43		0			0			11,191
Horus Solar, S.A. De C.V.			15,136			14.95	%		2,262			3,580		0			0			5,842
Recursos Solares PV De Mexico II, S.A. De C.V.			15,822			14.95	%		2,365			2,171		0			0			4,536
Sunmex Renovables, S.A. De C.V.			10,738			14.95	%		1,605			5		0			0			1,610

F-127

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(5) Financial information of associates and joint ventures reconciled to the Company’s investments in consolidated financial statements as of December 31, 2020 and 2021 are as follows, continued:

2021
Investees		Net assets			Percentage of ownership(*)			Share in net assets			Investment differential			Intercompany transaction			Others		Book value
		In millions of won
<Joint ventures>
Stavro Holding II A.B.	￦		88,133			20.00	%		17,627			0			0			0		17,627
Solaseado Solar Power Co., Ltd.			21,928			38.90	%		8,530			1,361			0			0		9,891
Yeongam Solar Power Co., Ltd.			31,919			19.00	%		6,065			773			0			0		6,838
Samsu Wind Power Co., Ltd.			14,882			19.00	%		2,828			0			0			0		2,828
Pulau Indah Power Plant Sdn. Bhd.			65,823			25.00	%		16,456			5,643			0			0		22,099
Sam-Yang Photovoltaic Power Co., Ltd.			10,190			49.00	%		4,993			0			0			0		4,993
NH-Amundi Global Infrastructure Investment Private Investment Trust 21			70,872			29.53	%		20,929			527			0			0		21,456
Shin-han BNPP Private Investment Trust for East-West Sunlight Dream			18,098			90.00	%		16,288			0			0			0		16,288
PT Barito Wahana Tenaga			266,545			30.61	%		81,595			0			0			0		81,595
Cheongna Energy Co., Ltd.			18,485			50.10	%		9,261			3,137			(1,200	)		0		11,198
Naepo Green Energy Co., Ltd.			(26,530	)		29.20	%		(7,747	)		0			0			7,747		0
Dayone Energy Co., Ltd.			(51,842	)		46.30	%		(24,003	)		0			(882	)		24,885		0
OneEnergy Asia Limited			135,470			40.00	%		54,188			25,512			0			0		79,700
KAS Investment I LLC			51,098			29.89	%		15,273			0			0			0		15,273
KAS Investment II LLC			50,895			29.89	%		15,213			0			0			0		15,213
Energyco Co., Ltd. (formerly, Energyco LLC)			2,435			29.00	%		706			829			0			0		1,535
CAES, LLC			43,089			36.00	%		15,512			2,923			0			0		18,435
Hapcheon Floating Photovoltaic Power Plant Inc.			14,146			49.00	%		6,932			39			0			0		6,971
Busan Industrial Solar Power Co., Ltd.			1,148			28.02	%		322			290			0			0		612
Bitsolar Energy Co., Ltd.			(5,033	)		27.10	%		(1,364	)		352			0			1,364		352
Pulau Indah O&M Sdn. Bhd.			0			60.00	%		0			0			0			0		0
Guadalupe Solar SpA			935			60.00	%		561			98			0			0		659
Omisan Wind Power Co., Ltd.			24,922			42.00	%		10,467			166			0			0		10,633
Foresight Iberian Solar Group Holding, S.L.			11,091			75.00	%		8,318			1,425			0			0		9,743
Yeongwol Eco Wind Co., Ltd.			4,718			29.00	%		1,368			1,828			0			0		3,196
Gurae Resident Power Co., Ltd.			1,198			29.00	%		347			48			0			0		395
Cheongju Eco Park Co., Ltd.			18,172			29.00	%		5,270			195			0			0		5,465
Enel X Midland Photovoltaic, LLC			8,442			20.00	%		1,688			0			0			0		1,688
Geumsungsan Wind Power Co., Ltd.			18,956			29.00	%		5,497			556			0			0		6,053
KEPCO KPS Carabao Corp.			966			40.00	%		386			0			0			0		386
Prime Swedish Holding AB			34,237			45.00	%		15,407			34			0			0		15,441
Goheung New Energy Co., Ltd.			23,020			46.15	%		10,624			1,084			0			0		11,708
Gunsan Land Solar Co., Ltd.			25,658			75.29	%		19,317			0			0			0		19,317
CapMan Lynx SCA, SICAR			19,952			50.00	%		9,976			0			0			0		9,976
International Offshore Power Transmission Holding Company Limited			5			35.00	%		2			(2	)		0			0		0

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

F-128

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(6) As of December 31, 2020, and 2021, 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:

		2020					2021
		Unrecognized equity interest			Accumulated unrecognized equity interest		Unrecognized equity interest			Accumulated unrecognized equity interest
		In millions of won
Hadong Mineral Fiber Co., Ltd.	￦		0			2		0			0
Eurasia Energy Holdings			(10	)		175		15			190
Gunsan Bio Energy Co., Ltd.			290			3,582		282			3,864
Daehan Wind Power PSC			3,855			3,855		(3,855	)		0
Dayone Energy Co., Ltd.			(14,035	)		24,696		(1,244	)		23,452
Nghi Son 2 Power LLC			30,456			133,280		(114,340	)		18,940
Samcheok Eco Materials Co., Ltd.			(3	)		785		(323	)		462
Naepo Green Energy Co., Ltd.			(7,003	)		2,278		5,469			7,747
Barakah One Company			(46,758	)		69,338		(26,502	)		42,836
Pioneer Gas Power Limited			15,824			15,938		21,691			37,629
Incheon New Power Co., Ltd.			194			194		(31	)		163
Bigeum Resident Photovoltaic Power Co., Ltd.			116			116		182			298
KAPES, Inc.			3,198			3,198		317			3,515
Chester Solar IV SpA			0			0		21			21

(7) As of December 31, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows:

(i) Gemeng International Energy Co., Ltd.

Gemeng International Energy Co., Ltd. issued put options on 8% of its shares to its financial investors, KEPCO Woori Sprott PEF (NPS

Co-Pa

PEF). If the investment fund is not collected until the maturity date (December 25, 2023, two years extension is possible), PEF can exercise the option at strike price which is the same as a principal investment price (including operating fees ratio of below 1% per annum), and also, the Company provided a performance guarantee on this agreement.

(ii) Taebaek Wind Power Co., Ltd.

In the case where

non-controlling

shareholders decide to dispose of their shares in Taebaek Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Company acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

(iii) Pyeongchang Wind Power Co., Ltd.

In the case where

non-controlling

shareholders decide to dispose of their shares in Pyeongchang Wind Power Co., Ltd. after commercial operation of the power plant has started, the Company acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with the careful consideration of various factors such as financial status and business situation. The Company is under agreement of O&M with the entity. Pursuant to the agreement, the Company guarantees a certain level of utilization rate and it is obligated to pay the penalty in the event of suspension in power generating.

(iv) Daeryun Power Co., Ltd.

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

(v) Daegu Green Power Co., Ltd.

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

(vi) Yeonggwang Wind Power Co., Ltd.

In case the Company intends to purchase all or part of the shares from Daehan Green Energy Co., Ltd., which is a

non-controlling

shareholder, Daehan Green Energy Co., Ltd. has an obligation to evaluate the shares at fair value and transfer them to the Company.

F-129

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(7) As of December 31, 2021, shareholders’ agreements on investments in associates and joint ventures that may cause future economic resource or cash outflows are as follows, continued:

(vii) Chester Solar I SpA

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

(viii) Chester Solar IV SpA

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

(ix) Chester Solar V SpA

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

(x) Diego de Almagro Solar SpA

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

(xi) Laurel SpA

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

(xii) Samcheok Eco Materials Co., Ltd.

For Samcheok Eco Materials Co., Ltd., ordinary shareholders have the right to buy the shares of preferred shareholders if preferred shareholders intend to sell their preferred stock until December 26, 2023, and ordinary shareholders shall guarantee the investment principle of preferred shareholders.

(xiii) Hyundai Green Power Co., Ltd.

As of December 31, 2021, the Company has call option against the financial investors (Korea Development Bank and others) and also has an obligation to sell its shares in Hyundai Green Power Co., Ltd. when claimed by the financial investors at certain period of time in the future. Also, at certain period of time in the future, the Company has put option against Hyundai Steel Company and a third party designated by Hyundai Steel Company (collectively, “Hyundai Steel Group”), the operating investor of Hyundai Green Power Co., Ltd., according to the conditions of the agreement and also has an obligation to sell its shares upon request from Hyundai Steel Group.

(xiv) Kosture Co., Ltd.

The Company acquires the shares with the settled amount of coal provided to Kosture Co., Ltd. every year until completion of the subscription set forth in the shareholders’ agreement.

(xv) Omisan Wind Power Co., Ltd.

When the Company requests Unison Co., Ltd. to transfer shares after the completion of the power generation complex, the Company has a right to purchase the shares or transfer them to others at fair value.

(xvi) Changjuk Wind Power Co., Ltd.

In the case where

non-controlling

shareholders decide to dispose of their shares in Changjuk Wind Power Co., Ltd. after the warrant period of defect repair for wind power generator has expired, the Company acquires those shares at fair value. The acquisition is to be made after the conditions of the acquisition are discussed among the parties involved, with consideration of various factors such as financial status and business situation.

(xvii) Geumsungsan Wind Power Co., Ltd.

The Company has a right to purchase shares owned by Daemyung Energy Co., Ltd., within the range of 18%, for 3 years after the commencement of the operation.

F-130

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Company’s abilities on associates or joint ventures as of December 31, 2021 are as follows:

Company	Nature and extent of any significant restrictions
Daegu Green Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior written consent of financial institutions.
Pyeongchang Wind Power Co., Ltd.	Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Shares cannot be wholly or partially transferred without prior consent of the stakeholders.
Daeryun Power Co., Ltd.	Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions. Shares cannot be wholly or partially transferred without prior consent of the majority of major stakeholders.
KNH Solar Co., Ltd.	Principals and interests on subordinated loans or dividends to shareholders cannot be paid without written consent of financial institutions. Also, shares cannot be wholly or partially transferred without the consent of other shareholders.
Korea Power Engineering Service Co., Ltd.	Shares cannot be wholly or partially transferred without the consent of the board of directors.
Daehan Wind Power PSC	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Daejung Offshore Wind Power Co., Ltd.	Before the commencement of the operation, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Naepo Green Energy Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Solaseado Solar Power Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Samcheok Eco Materials Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
KPGE Inc.	Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Taebaek Guinemi Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the shareholder’s agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Indeck Niles Asset Management, LLC	Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Indeck Niles Development, LLC	Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar IV SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar V SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Diego de Almagro Solar Spa	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Laurel SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Chester Solar I SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
Kelar S.A.	Dividends can only be paid when all conditions of the loan agreement are satisfied. Also, shares cannot be wholly or partially transferred without the consent of the stakeholders.
GS Donghae Electric Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Shinho Solar Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied.
Honam Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied.
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.

F-131

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

17. Investments in Associates and Joint Ventures, Continued

(8) Significant restrictions on the Company’s abilities on associates or joint ventures as of December 31, 2021 are as follows, continued:

Company	Nature and extent of any significant restrictions
Yeonggwangbaeksu Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when written consent of financial institutions is obtained.
Yeonggwang Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Jamaica Public Service Company Limited	Dividends can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
PT. Tanjung Power Indonesia	Dividends can only be paid when all conditions of the loan agreement are satisfied.
DE Energia SpA	Dividends can only be paid when all conditions of the loan agreement are satisfied.
Daesan Green Energy Co., Ltd.	Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.
Taebaek Gadeoksan Wind Power Co., Ltd.	Dividends and settlement amount for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, principals and interests on subordinated loans can only be paid when prior written consent of financial institutions is obtained.
Bitsolar Energy Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied.
Omisan Wind Power Co., Ltd.	Principals and interests on subordinated loans or dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained. Also, either of Omisan Wind Power Co., Ltd. and Unison Co., Ltd. shall not transfer their shares to others wholly or partially until 4 years have passed from the completion of power complex without the written consent from the other party. In case the shares of each party becomes less than 10% of outstanding shares after the transfer, it also requires the written consent from the other party.
Yangyang Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Busan Industrial Solar Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Kosture Co., Ltd.	Shares cannot be wholly or partially transferred without the consent of the stakeholders.
Geumsungsan Wind Power Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied. Shares cannot be wholly or partially transferred for 3 years after the commencement of operation, and also cannot be transferred or disposed to the third party in a way not permitted in the financial documents without prior written consent of an agent bank.
Daewon Green Energy Co., Ltd.	Dividends can only be paid when all conditions of the loan agreement are satisfied or prior written consent of financial institutions is obtained.
Cheongju Eco Park Co., Ltd.	Dividends and settlement amounts for renewable energy certificate can only be paid when all conditions of the loan agreement are satisfied, or permitted by related financing contracts, or prior written consent of financial institutions is obtained.
Goheung New Energy Co., Ltd.	Payment of dividends or repayment of loans such as subordinated loans to the investors can only be made when all conditions of the loan agreement are satisfied and prior written consent of financial institutions is obtained.

F-132

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

18. Property, Plant and Equipment

(1) Property, plant and equipment as of December 31, 2020 and 2021 are as follows:

		2020
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
		In millions of won
Land	￦		13,970,098		(23,475	)		0			(26,772	)		13,919,851
Buildings			21,773,824		(57,231	)		(9,150,218	)		(7,074	)		12,559,301
Structures			74,136,523		(180,009	)		(27,864,461	)		(13,207	)		46,078,846
Machinery			94,295,027		(157,785	)		(43,740,838	)		(515,402	)		49,881,002
Ships			2,482		0			(2,227	)		0			255
Vehicles			338,386		(632	)		(259,288	)		(115	)		78,351
Equipment			1,895,528		(227	)		(1,487,643	)		(42	)		407,616
Tools			1,195,721		(239	)		(1,003,295	)		(39	)		192,148
Construction-in-progress			31,121,255		(79,126	)		0			(157,530	)		30,884,599
Right-of-use assets			7,905,214		0			(3,363,048	)		0			4,542,166
Asset retirement costs			12,260,732		0			(4,701,138	)		(146,423	)		7,413,171
Others			13,979,980		0			(11,227,899	)		0			2,752,081
	￦		272,874,770		(498,724	)		(102,800,055	)		(866,604	)		168,709,387

		2021
		Acquisition cost		Government grants			Accumulated depreciation			Accumulated impairment losses			Book value
		In millions of won
Land	￦		14,135,452		(23,474	)		0			(27,487	)		14,084,491
Buildings			22,973,395		(52,122	)		(10,041,270	)		(7,073	)		12,872,930
Structures			78,473,094		(172,021	)		(30,171,363	)		(13,205	)		48,116,505
Machinery			101,049,793		(140,082	)		(48,791,577	)		(514,991	)		51,603,143
Ships			2,068		0			(1,891	)		0			177
Vehicles			371,207		(1,675	)		(281,833	)		(117	)		87,582
Equipment			1,989,115		(149	)		(1,591,890	)		(42	)		397,034
Tools			1,256,189		(64	)		(1,073,086	)		(38	)		183,001
Construction-in-progress			30,313,624		(111,822	)		0			(157,530	)		30,044,272
Right-of-use assets			7,848,138		0			(3,788,741	)		0			4,059,397
Asset retirement costs			14,348,920		0			(5,277,109	)		(146,423	)		8,925,388
Others			14,852,245		0			(12,106,384	)		—			2,745,861
	￦		287,613,240		(501,409	)		(113,125,144	)		(866,906	)		173,119,781

F-133

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the years ended December 31, 2021 and 2020 are as follows:

		2020
		Beginning balance			Acquisition		Disposal			Depreciation			Impairment			Others			Ending balance
		In millions of won
Land	￦		13,848,063			5,330		(31,304	)		(273	)		0			121,510			13,943,326
(Government grants)			(21,817	)		0		2			0			0			(1,660	)		(23,475	)
Buildings			12,445,706			7,225		(16,015	)		(875,680	)		(2,107	)		1,057,403			12,616,532
(Government grants)			(61,920	)		0		0			5,206			0			(517	)		(57,231	)
Structures			45,178,870			36,091		(346,612	)		(2,313,920	)		(3,571	)		3,707,997			46,258,855
(Government grants)			(186,554	)		0		2,032			9,526			0			(5,013	)		(180,009	)
Machinery			49,907,300			407,521		(283,845	)		(5,526,816	)		(74,362	)		5,608,989			50,038,787
(Government grants)			(158,907	)		0		496			17,468			0			(16,842	)		(157,785	)
Ships			201			0		0			(106	)		0			160			255
Vehicles			70,585			3,880		(151	)		(35,036	)		0			39,705			78,983
(Government grants)			(2,275	)		0		4			2,064			0			(425	)		(632	)
Equipment			374,115			72,655		(86	)		(186,004	)		0			147,163			407,843
(Government grants)			(241	)		0		0			149			0			(135	)		(227	)
Tools			164,064			28,048		(193	)		(82,862	)		0			83,330			192,387
(Government grants)			(403	)		0		0			243			0			(79	)		(239	)
Construction-in-progress			28,419,470			12,726,469		(486	)		0			7,799			(10,189,527	)		30,963,725
(Government grants)			(61,211	)		8,783		0			0			0			(26,698	)		(79,126	)
Right-of-use assets			4,783,573			291,334		(827	)		(586,254	)		0			54,340			4,542,166
Asset retirement costs			7,374,527			131		(196	)		(819,708	)		0			858,417			7,413,171
Others			2,628,681			6,470		(8,145	)		(984,097	)		(366	)		1,109,538			2,752,081
	￦		164,701,827			13,593,937		(685,326	)		(11,376,100	)		(72,607	)		2,547,656			168,709,387

F-134

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

18. Property, Plant and Equipment, Continued

(2) Changes in property, plant and equipment for the years ended December 31, 2021 and 2020 are as follows, continued:

		2021
		Beginning balance			Acquisition			Disposal			Depreciation			Impairment			Others			Ending balance
		In millions of won
Land	￦		13,943,326			9,561			(54,447	)		0			0			209,525			14,107,965
(Government grants)			(23,475	)		0			1			0			0			0			(23,474	)
Buildings			12,616,532			9,036			(19,974	)		(889,539	)		0			1,208,997			12,925,052
(Government grants)			(57,231	)		0			0			5,174			0			(65	)		(52,122	)
Structures			46,258,855			(5,472	)		(319,287	)		(2,582,488	)		(741	)		4,937,659			48,288,526
(Government grants)			(180,009	)		0			1,811			9,517			0			(3,340	)		(172,021	)
Machinery			50,038,787			268,126			(135,803	)		(5,759,155	)		0			7,331,270			51,743,225
(Government grants)			(157,785	)		0			531			17,519			0			(347	)		(140,082	)
Ships			255			0			0			(103	)		0			25			177
Vehicles			78,983			4,807			(4,298	)		(37,980	)		0			47,745			89,257
(Government grants)			(632	)		(26	)		0			460			0			(1,477	)		(1,675	)
Equipment			407,843			54,875			(667	)		(184,007	)		0			119,139			397,183
(Government grants)			(227	)		0			0			95			0			(17	)		(149	)
Tools			192,387			19,389			(89	)		(81,984	)		0			53,362			183,065
(Government grants)			(239	)		0			0			209			0			(34	)		(64	)
Construction-in-progress			30,963,725			12,165,238			(66,965	)		0			(3,315	)		(12,902,589	)		30,156,094
(Government grants)			(79,126	)		5,027			0			0			0			(37,723	)		(111,822	)
Right-of-use assets			4,542,166			78,213			(11,787	)		(554,615	)		0			5,420			4,059,397
Asset retirement costs			7,413,171			92			(209	)		(844,518	)		0			2,356,852			8,925,388
Others			2,752,081			5,311			(2,332	)		(869,310	)		0			860,111			2,745,861
	￦		168,709,387			12,614,177			(613,515	)		(11,770,725	)		(4,056	)		4,184,513			173,119,781

F-135

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

19. Investment Properties

(1) Investment properties as of December 31, 2020 and 2021 are as follows:

		2020
		Acquisition cost		Government grants			Accumulated depreciation			Book value
		In millions of won
Land	￦		200,391		0			0			200,391
Buildings			59,347		(29	)		(34,514	)		24,804
	￦		259,738		(29	)		(34,514	)		225,195

		2021
		Acquisition cost		Government grants			Accumulated depreciation			Book value
		In millions of won
Land	￦		201,605		0			0			201,605
Buildings			19,543		(30	)		(8,334	)		11,179
	￦		221,148		(30	)		(8,334	)		212,784

(2) Changes in investment properties for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance			Depreciation			Others			Ending balance
		In millions of won
Land	￦		129,897			0			70,494			200,391
Buildings			28,696			(1,454	)		(2,409	)		24,833
(Government grants)			(13	)		1			(17	)		(29	)
	￦		158,580			(1,453	)		68,068			225,195

		2021
		Beginning balance			Depreciation			Others			Ending balance
		In millions of won
Land	￦		200,391			0			1,214			201,605
Buildings			24,833			(1,387	)		(12,237	)		11,209
(Government grants)			(29	)		1			(2	)		(30	)
	￦		225,195			(1,386	)		(11,025	)		212,784

F-136

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

19. Investment Properties, Continued

(3) Income and expenses related to investment properties for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Rental income	￦		8,335			10,118
Operating and maintenance expenses related to rental income			(1,453	)		(1,386	)
	￦		6,882			8,732

(4) Fair value of investment properties as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Book value		Fair value		Book value		Fair value
		In millions of won
Land	￦		200,391		300,001		201,605		268,702
Buildings			24,804		44,597		11,179		13,636
	￦		225,195		344,598		212,784		282,338

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

(5) All of the Company’s investment properties are held under freehold interests.

F-137

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

20. Construction Contracts

(1) Changes in total contract amount in which revenue is not yet recognized for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance
		In millions of won
Nuclear power plant construction in UAE and others	￦		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 is ￦390,224 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦10,955 million.

		2020
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance
		In millions of won
Nuclear power plant construction in UAE and others	￦		2,735,141		1,229,759		(812,175	)		3,152,725

(*) For the year ended December 31, 2020, the increased balance of contracts from new orders is ￦1,512,460 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦282,701 million.

		2021
		Beginning balance		Increase (decrease)(*)		Recognized as revenue			Ending balance
		In millions of won
Nuclear power plant construction in UAE and others	￦		3,152,725		386,208		(754,998	)		2,783,935

(*) For the year ended December 31, 2021, the increased balance of contracts from new orders is ￦458,635 million and the decreased balance of contracts due to changes in scope of construction work and foreign exchange impact is ￦72,427 million.

(2) Accumulated earned revenue, expense and others related to the Company’s construction contracts in progress as of December 31, 2020 and 2021 are as follows:

		2020
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts
		In millions of won
Nuclear power plant construction in UAE and others	￦		21,460,431		20,242,735		1,217,696		97,348

		2021
		Accumulated earned revenue		Accumulated expense		Accumulated profit		Unearned advance receipts
		In millions of won
Nuclear power plant construction in UAE and others	￦		22,051,129		20,967,097		1,084,032		23,238

F-138

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

20. Construction Contracts, Continued

(3) Gross amount due from customers recognized as contract assets and due to customers recognized as contract liabilities for contract work as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Contract assets(*1)		Contract liabilities(*2)		Contract assets(*1)		Contract liabilities(*2)
		In millions of won
Nuclear power plant construction in UAE and others	￦		79,662		88,126		82,306		5,330

(*1) Included in trade and other receivables, net, in the consolidated statements of financial position. The balance of trade receivables from construction contracts are ￦39,063 million and ￦57,639 million, as of December 31, 2020 and 2021, respectively.

(*2) Included in non-financial liabilities as advance received in the consolidated statements of financial position. The revenue recognized on December 31, 2021 from the amounts included in contract liabilties at the end of the prior year is ￦87,934 million.

Revenue recognized for the year ended December 31, 2021 from performance obligations satisfied in previous periods is

(-) ￦6,480 million.

F-139

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

21. Intangible Assets other than Goodwill

(1) Intangible assets as of December 31, 2020 and 2021 are as follows:

		2020
		Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
		In millions of won
Software	￦		775,667		(136	)		(623,504	)		0			152,027
Licenses and franchises			547		0			(547	)		0			0
Copyrights, patents rights and other industrial rights			101,866		0			(49,772	)		(9,178	)		42,916
Mining rights			604,703		0			(34,062	)		(528,251	)		42,390
Development expenditures			958,035		(5,043	)		(862,850	)		(19	)		90,123
Intangible assets under development			79,862		(7,203	)		0			(12,844	)		59,815
Usage rights of donated assets and other			592,930		0			(408,455	)		0			184,475
Leasehold rights			27,843		0			(21,503	)		0			6,340
Greenhouse gas emissions rights			61,373		0			0			0			61,373
Others			566,200		(75	)		(137,843	)		(12,011	)		416,271
	￦		3,769,026		(12,457	)		(2,138,536	)		(562,303	)		1,055,730

		2021
		Acquisition cost		Government grants			Accumulated amortization			Accumulated impairment losses			Book value
		In millions of won
Software	￦		867,185		(91	)		(704,589	)		0			162,505
Copyrights, patents rights and other industrial rights			103,428		0			(59,063	)		(9,178	)		35,187
Mining rights			623,122		0			(39,803	)		(541,417	)		41,902
Development expenditures			978,768		(3,820	)		(905,805	)		(19	)		69,124
Intangible assets under development			94,275		(7,326	)		0			(12,845	)		74,104
Usage rights of donated assets and others			592,870		0			(423,087	)		0			169,783
Leasehold rights			28,185		0			(22,337	)		0			5,848
Greenhouse gas emissions rights			78,137		0			0			0			78,137
Others			574,957		(71	)		(155,404	)		(11,995	)		407,487
	￦		3,940,927		(11,308	)		(2,310,088	)		(575,454	)		1,044,077

F-140

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

21. Intangible Assets other than Goodwill, Continued

(2) Changes in intangible assets for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance			Acquisition		Disposal			Amortization			Impairment			Others			Ending balance
		In millions of won
Software	￦		164,995			14,101		0			(77,501	)		0			50,568			152,163
(Government grants)			(235	)		0		0			99			0			0			(136	)
Copyrights, patents rights and other industrial rights			53,261			369		(390	)		(8,352	)		0			(1,972	)		42,916
Mining rights			43,723			1,664		0			(4,380	)		0			1,383			42,390
Development expenditures			93,843			10,273		0			(32,034	)		0			23,084			95,166
(Government grants)			(1,492	)		0		0			1,453			0			(5,004	)		(5,043	)
Intangible assets under development			60,490			53,638		0			0			(23	)		(47,087	)		67,018
(Government grants)			(11,029	)		0		0			0			0			3,826			(7,203	)
Usage rights of donated assets and other			193,161			0		0			(18,448	)		0			9,762			184,475
Leasehold rights			5,318			0		0			(831	)		0			1,853			6,340
Greenhouse gas emissions rights			41,656			37,109		(9,271	)		0			0			(8,121	)		61,373
Others			426,364			3,217		(46	)		(30,476	)		(3,576	)		20,863			416,346
(Government grants)			(79	)		0		0			4			0			0			(75	)
	￦		1,069,976			120,371		(9,707	)		(170,466	)		(3,599	)		49,155			1,055,730

		2021
		Beginning balance			Acquisition		Disposal			Amortization			Impairment		Others			Ending balance
		In millions of won
Software	￦		152,163			18,834		(1	)		(77,881	)		0		69,481			162,596
(Government grants)			(136	)		0		0			64			0		(19	)		(91	)
Copyrights, patents rights and other industrial rights			42,916			166		(131	)		(7,771	)		0		7			35,187
Mining rights			42,390			1,022		0			(3,526	)		0		2,016			41,902
Development expenditures			95,166			309		0			(37,033	)		0		14,502			72,944
(Government grants)			(5,043	)		0		0			1,439			0		(216	)		(3,820	)
Intangible assets under development			67,018			51,988		0			0			0		(37,576	)		81,430
(Government grants)			(7,203	)		0		0			0			0		(123	)		(7,326	)
Usage rights of donated assets and others			184,475			0		0			(13,594	)		0		(1,098	)		169,783
Leasehold rights			6,340			0		0			(834	)		0		342			5,848
Greenhouse gas emissions rights			61,373			78,091		0			(31	)		0		(61,296	)		78,137
Others			416,346			2,229		0			(26,998	)		14		15,967			407,558
(Government grants)			(75	)		0		0			4			0		0			(71	)
	￦		1,055,730			152,639		(132	)		(166,161	)		14		1,987			1,044,077

F-141

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

21. Intangible Assets other than Goodwill, Continued

(3) Significant specific intangible assets as of December 31, 2020 and 2021 are as follows:

2020
Type	Description	Currency	Amount		Remaining useful lives
	In millions of won and thousands of Australian dollars
Software	ERP system and others	KRW		81	2 months ~ 4 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		4,936	1 year and 9 months
	Contributions to ARP NRC DC	KRW		29,219	7 years
Mining rights	Mining rights of Bylong mine	AUD		0	0  (*)
Development expenditures	Electricity sales information system	KRW		8,229	1 year and 2 months
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		26,847	5 years and 11 months
	Dangjin power plant load facility usage right	KRW		1,574	3 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		10,016	9 years and 6 months
Others	Occupancy and use of public waters	KRW		87,035	16 years and 1 month
	Greenhouse gas emissions rights	KRW		61,373	0
	Business rights	KRW		166,207	28 years and 11 months

(*) The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

2021
Type	Description	Currency	Amount		Remaining useful lives
	In millions of won and thousands of Australian dollars
Software	DAS MS-SQL CORE license	KRW		3,817	2 years and 8 months
Copyrights, patents rights and other industrial rights	Smart technology verification and standard design project conducting right	KRW		1,851	9 months
	Contributions to ARP NRC DC	KRW		25,045	6 years
Mining rights	Mining rights of Bylong mine	AUD		0	0(*)
Usage rights of donated assets and others	Sejong Haengbogdosi sharing charge	KRW		22,310	4 years and 11 months
	Right of use electricity and gas supply facility (Community district of Songdo)	KRW		8,962	8 years and 6 months
Others	Occupancy and use of public waters	KRW		81,623	15 years and 1 month
	Greenhouse gas emissions rights	KRW		78,137	—
	Business rights	KRW		160,459	27 years and 11 months

(*) The carrying amount of mining rights is nil, because KEPCO Australia Pty., Ltd. and KEPCO Bylong Australia Pty., Ltd. had recognized impairment losses in full.

(4) For the years ended December 31, 2019, 2020 and 2021, the Company recognized research and development expenses of ￦ 735,715 million, ￦ 700,642 million and ￦ 689,397 million, respectively.

F-142

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

22. Trade and Other Payables

Trade and other payables as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Trade payables	￦		2,606,861		0		4,780,260		0
Non-trade payables			1,785,068		2,324,965		1,536,976		2,032,260
Accrued expenses			1,197,815		2,038		1,174,765		8,095
Leasehold deposits received			2,336		943		1,699		741
Other deposits received			83,505		67,645		72,063		68,050
Lease liabilities			576,665		4,044,431		583,558		3,826,945
Dividends payable			4,271		0		4,105		0
Others(*)			0		40,390		0		60,407
	￦		6,256,521		6,480,412		8,153,426		5,996,498

(*) Details of others as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Advance received from local governments	￦		0		4,278		0		3,477
Others			0		36,112		0		56,930
	￦		0		40,390		0		60,407

F-143

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities

(1) Borrowings and debt securities as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Current liabilities
Short-term borrowings	￦		1,436,922			2,920,563
Current portion of long-term borrowings			677,982			1,463,703
Current portion of debt securities			8,565,301			9,652,986
Less : Current portion of discount on long-term borrowings			(1,723	)		(2,048	)
Less : Current portion of discount on debt securities			(3,677	)		(5,370	)
			10,674,805			14,029,834
Non-current liabilities
Long-term borrowings			3,018,898			2,278,481
Debt securities			56,188,234			64,385,784
Less : Discount on long-term borrowings			(14,899	)		(12,857	)
Less : Discount on debt securities			(143,823	)		(152,760	)
Add: Premium on debt securities			1,366			1,031
			59,049,776			66,499,679
	￦		69,724,581			80,529,513

(2) Repayment schedule of borrowings and debt securities as of December 31, 2020 and 2021 are as follows:

		2020				��
		Borrowings		Debt Securities
		In millions of won
Less than 1 year	￦		2,114,904		8,565,301
1~ 5 years			1,564,252		28,746,117
Over 5 years			1,454,646		27,442,117
	￦		5,133,802		64,753,535

		2021
		Borrowings		Debt Securities
		In millions of won
Less than 1 year	￦		4,384,266		9,652,986
1~ 5 years			1,013,500		34,156,038
Over 5 years			1,264,981		30,229,746
	￦		6,662,747		74,038,770

F-144

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities, Continued

(3) Short-term borrowings as of December 31, 2020 and 2021 are as follows:

2020
Type	Creditor	Interest rate (%)		Maturity		Foreign currency			Local currency
In millions of won and thousands of foreign currencies
Local short-term borrowings	DB financial investment and others		0.80 ~ 4.60		2021.01.05 ~2021.12.31		—	￦		580,004
Electronic short-term bonds	KB Securities and others		0.75 ~ 1.35		2021.01.13 ~2021.03.18		—			470,000
Foreign short-term borrowings	Shinhan Bank		0.71 ~ 0.74		2021.01.04 ~2021.03.31		USD 55,393			60,268
Foreign short-term borrowings(*)	Korea Development Bank and others		1M Libor + 1.25		2022.04.29		USD 73,704			81,290
Local bank overdraft	Woori Bank		Standard overdraft rate + 1.26		2021.02.26		—			29,960
Local bank overdraft	Korea Development Bank and others		1.42 ~ 1.88		2021.01.07~ 2021.04.26		—			215,400
								￦		1,436,922
2021
Type	Creditor	Interest rate (%)		Maturity		Foreign currency			Local currency
In millions of won and thousands of foreign currencies
Local short-term borrowings	DB financial investment and others		1.96~4.60		2022.01.07 ~ 2022.12.31		0	￦		2,030,886
Electronic short-term bonds	BNK Securities and others		1.35~1.77		2022.01.21 ~ 2022.02.08		0			100,000
Foreign short-term borrowings	Shinhan Bank and others		0.34~0.45		2022.01.04 ~ 2022.03.30		USD 157,533			186,755
Foreign short-term borrowings	Korea Development Bank and others		1M Libor + 1.25		2022.04.29		USD 173,042			205,142
Foreign short-term borrowings	Shinhan Bank and others		0.57~0.80		2022.06.17 ~ 2022.08.31		USD 78,319			92,847
Foreign short-term borrowings	Credit Agricole and others		0.04		2022.06.28		EUR 72,199			96,915
Local bank overdraft	Korea Development Bank and others		1.73~2.25		2022.01.07 ~ 2022.02.26		0			208,018
								￦		2,920,563

(*) The contractual maturity is 2022 but is classified as short-term borrowing due to intention of early redemption in 3 months after borrowing.

F-145

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of December 31, 2020 and 2021 are as follows:

2020
Type		Interest rate (%)	Maturity		Foreign currency		Local currency
		In millions of won and thousands of foreign currencies
Local long-term borrowings
Korea Development Bank	Others	0.50		2021~2044		—	￦	2,946
	Facility	2.50~4.60		2021~2028		—		50,293
	Operating funds	2.33		2022		—		20,000
	Operating funds	1yr KoFC bond rate +0.81~0.95		2022~2023		—		24,300
Hana Bank	Commercial Paper	3M CD+0.13~0.32		2021~2024		—		1,150,000
	Facility	4.60		2028		—		11,088
	Facility	3yr KTB rate-1.25 Standard overdraft rate+1.50~2.45		2021~2035		—		43,419
IBK	PF Refinancing	CD+1.25		2030		—		9,543
Export-Import Bank of Korea	Project loans	1.50		2026		—		16,204
	Facility	1.32		2028		—		32,000
	Operating funds	1.78		2023		—		15,700
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25		2023~2025		—		2,509
	Facility	3yr KTB rate-2.25		2021~2024		—		1,527
	Project loans	—		2023		—		1,197
	Others	KTB rate-2.25		2024~2028		—		14,045
Shinhan Bank	Facility	CB rate+1.10		2028		—		16,632
	Others	3.95		2034		—		89,257
	Others	Standard overdraft rate+1.00		2034		—		89,257
Kookmin Bank	Facility	MOR+0.79 3M CD+1.79		2021~2031		—		46,512
Others	Facility	1.75~6.80		2026~2037		—		510,262
	Facility	CB rate+1.10~1.20 3M CD+1.60 Standard overdraft rate+1.50~2.45		2023~2037		—		89,506
	PF Refinancing	4.10		2030		—		26,509
	Others	3.90~7.90		2023~2039		—		222,356
								2,485,062
Foreign long-term borrowings
Korea Energy Agency	Project loans	—		2021~2023		USD 8,744		9,513
Export-Import Bank of Korea and others	Direct loan and others	1M Libor+1.80~3.20		2036		USD 96,014		104,463
	Direct loan and others	3M LIBOR+2.75~3.70		2027		JOD 132,228		202,912
	PF Loan	6M LIBOR+1.70~2.50		2032		USD 111,225		121,013
	Others	3.88		2021		USD 289,509		314,986
POSCO and others	Shareholder’s loan	8.00		2023		USD 14,061		15,298
	Shareholder’s loan	8.00		2031		JOD 4,853		7,447
Samsung Life Insurance and others	Syndicated Loans	3.10		2032		JPY 4,682,816		49,369
Woori Bank and others	Syndicated Loans	JPY 6M Libor+2.00		2032		JPY 3,020,746		31,847
IFC and others	Others	6M Libor+5.00		2031		USD 224,115		243,837
Federal Financing Bank and others	PF Loans	2.39~6.00		2031~2038		USD 97,347		105,913
Others	Others	—		—		USD 4,798		5,220
								1,211,818
								3,696,880
Less: Discount on long-term borrowings								(16,622	)
Less: Current portion of long-term borrowings								(677,982	)
Add: Current portion of discount on long-term borrowings								1,723
							￦	3,003,999

F-146

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities, Continued

(4) Long-term borrowings as of December 31, 2020 and 2021 are as follows, continued:

2021
Type		Interest rate (%)	Maturity		Foreign currency		Local currency
		In millions of won and thousands of foreign currencies
Local long-term borrowings
Korea Development Bank	Others	0.50		2023~2044		—	￦	2,509
	Facility	2.50~4.60		2022~2028		—		39,430
	Operating funds	2.33		2022		—		20,000
	Operating funds	1yr KoFC bond rate +0.81~0.95		2022~2023		—		64,300
Hana Bank	Commercial Paper	3M CD+0.13~0.43		2022~2025		—		1,050,000
	Facility	4.60		2028		—		9,647
	Facility	3yr KTB rate-1.25		2022~2028		—		4,485
IBK	PF Refinancing	CD+1.25		2030		—		8,589
Export-Import Bank of Korea	Project loans	1.50		2026		—		13,258
	Facility	1.32		2028		—		32,000
	Operating funds	1.78		2023		—		15,700
Korea Energy Agency	Development of power resources	3yr KTB rate-2.25		2023~2025		—		8,971
	Facility	3yr KTB rate-2.25		2022~2024		—		995
	Project loans	—		2023		—		1,197
	Others	1.75		2028		—		4,893
Shinhan Bank and others	Facility	CB rate+1.10		2028		—		14,470
	Commercial paper	3M CD+0.38		2025		—		150,000
	Others	3.95		2034		—		84,179
	Others	Standard overdraft rate+1.00		2034		—		84,179
Kookmin Bank	Facility	MOR+0.79 3M CD+1.79		2022~2031		—		59,333
Others	Facility	2.80~6.80		2024~2039		—		620,185
	Facility	CB rate+0.90~1.10 3M CD+1.60 3.37		2028~2037		—		171,733
	PF Refinancing	3.80~5.00		2030~2034		—		71,742
	PF Refinancing	1.75		2029		—		22,265
	Others	4.40~7.90		2022~2038		—		116,367
	Others	1.80~4.50		2031~2034		—		49,928
								2,720,355
Foreign long-term borrowings
Korea Energy Agency	Project loans	—		2026		USD 8,744		10,366
Export-Import Bank of Korea and others	Direct loan and others	1M Libor+1.80~3.20		2036		USD 89,823		106,485
	Direct loan and others	3M Libor+2.75~3.70		2027		JOD 107,868		180,363
	PF Loan	6M Libor+1.70~2.50		2032		USD 103,340		122,509
POSCO and others	Shareholder’s loan	8.00		2025		USD 11,953		14,171
	Shareholder’s loan	8.00		2031		JOD 4,853		8,114
Samsung Life Insurance and others	Syndicated Loans	3.10~8.00		2032		JPY 5,144,387		53,000
Woori Bank and others	Syndicated Loans	JPY 6M Libor+2.00		2032		JPY 2,820,708		29,060
KiwoomSolar Power Professional Investor Private Placement Investment Trust V	Senior borrowing	3.90		2029		EUR 36,311		48,741
IFC and others	Others	6M Libor+5.00		2031		USD 230,018		272,686
Federal Financing Bank and others	PF Loans	2.39~6.00		2031~2038		USD 94,135		111,597
Others	Others	—		—		USD 54,607		64,737
								1,021,829
								3,742,184
Less: Discount on long-term borrowings								(14,905	)
Less: Current portion of long-term borrowings								(1,463,703	)
Add: Current portion of discount on long-term borrowings								2,048
							￦	2,265,624

F-147

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities, Continued

(5) Local debt securities as of December 31, 2020 and 2021 are as follows:

	Issue date		Maturity		Interest rate (%)		2020			2021
	In millions of won
Electricity Bonds		2012.01.15~ 2021.12.23		2022.01.05~ 2049.10.24	1.02~4.20	￦		27,810,000			34,080,000
Corporate Bonds(*)		2009.10.16~ 2021.11.22		2022.01.19~ 2051.11.22	0.86~6.00			26,463,577			28,194,472
								54,273,577			62,274,472
Less: Discount on local debt securities								(46,730	)		(52,723	)
Less: Current portion of local debt securities								(7,243,217	)		(7,432,647	)
Add: Current portion of discount on local debt securities								2,108			2,510
						￦		46,985,738			54,791,612

(*) Among the corporate bonds, each holder of Hee Mang Sunlight Power Co., Ltd.’s private equity bonds, amounting to ￦2,697 million, may exercise the early redemption rights  on the 5th year (March 31, 2021) from the date of issuance of the bonds and every year on March 31 thereafter, until the year before the redemption date.

(6) Foreign debt securities as of December 31, 2020 and 2021 are as follows:

	2020
Type	Issue date	Maturity	Interest rate (%)	Foreign currency			Local currency
	In millions of won and thousands of foreign currencies
FY-96	1996.04.01~ 1996.12.06	2026.12.01~ 2096.04.01	6.00~7.95		USD 278,701	￦		303,227
FY-97	1997.01.31~ 1997.08.04	2027.02.01~ 2027.08.01	6.75~7.00		USD 314,717			342,412
FY-04	2004.04.23	2034.04.23	5.13		USD 286,920			312,169
FY-11	2011.07.13	2021.07.13	4.75		USD 500,000			544,000
FY-12	2012.09.19	2022.09.19	3.00		USD 750,000			816,000
FY-14	2014.07.30	2029.07.30	3.57		USD 100,000			108,800
FY-15	2015.06.15	2025.06.15	3.25		USD 300,000			326,400
FY-16	2016.01.21	2021.07.21	2.50		USD 300,000			326,400
FY-17	2017.06.19~ 2017.07.25	2022.06.19~ 2027.07.25	2.63~3.13		USD 800,000			870,400
FY-17	2017.10.30	2037.10.30	1.70		EUR 40,000			53,530
FY-17	2017.11.16	2037.11.16	2.36		SEK 450,000			59,747
FY-18	2018.01.29~ 2018.07.25	2021.01.29~ 2023.07.25	3.00~3.88		USD 1,800,000			1,958,400
FY-18	2018.03.13	2028.03.13	3.35		HKD 1,650,000			231,578
FY-19	2019.01.22~ 2019.06.24	2022.01.22~ 2024.06.24	2.50~3.38		USD 800,000			870,400
FY-19	2019.02.27	2024.02.27	0.13		CHF 200,000			246,866
FY-19	2019.07.19	2024.07.19~ 2027.07.19	0.00~0.05		CHF 300,000			370,299
FY-19	2019.07.22	2022.07.22	2.38		USD 300,000			326,400
FY-19	2019.10.30	2024.10.30	3M BBSW+0.97		AUD 300,000			250,968
FY-19	2019.12.19	2037.12.31	3.30~5.70		USD 387,098			421,163
FY-20	2020.02.03	2025.02.03	2.13		USD 300,000			326,400
FY-20	2020.06.15	2025.06.15	1.13		USD 500,000			544,000
FY-20	2020.05.06	2025.05.06	1.75		USD 500,000			544,000
FY-20	2020.08.03	2026.02.03	0.61		USD 300,000			326,399
								10,479,958
Less : Discount on foreign debt securities								(100,770	)
Add : Premium on foreign debt securities								1,366
Less : Current portion of foreign debt securities								(1,322,084	)
Add : Current portion of discount on foreign debt securities								1,569
						￦		9,060,039

F-148

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

23. Borrowings and Debt Securities, Continued

(6) Foreign debt securities as of December 31, 2020 and 2021 are as follows, continued:

	2021
Type	Issue date		Maturity		Interest rate (%)	Foreign currency			Local currency
	In millions of won and thousands of foreign currencies
FY-96		1996.04.01~ 1996.12.06		2026.12.01~ 2096.04.01	6.00~7.95		USD 278,701	￦		330,400
FY-97		1997.01.31~ 1997.08.04		2027.02.01~ 2027.08.01	6.75~7.00		USD 314,717			373,097
FY-04		2004.04.23		2034.04.23	5.13		USD 286,920			340,144
FY-12		2012.09.19		2022.09.19	3.00		USD 750,000			889,125
FY-14		2014.07.30		2029.07.30	3.57		USD 100,000			118,550
FY-15		2015.06.15		2025.06.15	3.25		USD 300,000			355,650
FY-17		2017.06.19~ 2017.07.25		2022.06.19~ 2027.07.25	2.63~3.13		USD 800,000			948,400
FY-17		2017.10.30		2037.10.30	1.70		EUR 40,000			53,694
FY-17		2017.11.16		2037.11.16	2.36		SEK 450,000			58,968
FY-18		2018.03.13		2028.03.13	3.35		HKD 1,650,000			250,850
FY-18		2018.06.07~ 2018.07.25		2023.06.07~ 2023.07.25	3.75~3.88		USD 1,400,000			1,659,700
FY-19		2019.01.22~ 2019.06.24		2022.01.22~ 2024.06.24	2.50~3.38		USD 800,000			948,400
FY-19		2019.02.27		2024.02.27	0.13		CHF 200,000			259,494
FY-19		2019.07.19		2024.07.19~ 2027.07.19	0.00~0.05		CHF 300,000			389,241
FY-19		2019.07.22		2022.07.22	2.38		USD 300,000			355,650
FY-19		2019.10.30		2024.10.30	3M BBSW+0.97		AUD 300,000			257,667
FY-19		2019.12.19		2037.12.31	3.30~5.70		USD 371,947			440,943
FY-20		2020.02.03		2025.02.03	2.13		USD 300,000			355,650
FY-20		2020.05.06		2025.05.06	1.75		USD 500,000			592,750
FY-20		2020.06.15		2025.06.15	1.13		USD 500,000			592,750
FY-20		2020.08.03		2026.02.03	0.61		USD 300,000			355,650
FY-21		2021.01.27		2026.01.27	0.75		USD 450,000			533,475
FY-21		2021.04.27		2026.04.27	1.25		USD 500,000			592,750
FY-21		2021.08.09		2026.08.09	1.25		USD 300,000			355,650
FY-21		2021.09.24		2026.09.24	1.13		USD 300,000			355,650
										11,764,298
Less: Discount on foreign debt securities										(105,407	)
Add: Premium on foreign debt securities										1,031
Less: Current portion of foreign debt securities										(2,220,339	)
Add: Current portion of discount on foreign debt securities										2,860
								￦		9,442,443

(7) Changes in borrowings and debt securities for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		67,876,541			69,724,581
Cash flow			2,538,787			9,653,394
Effect of exchange rate fluctuations			(640,304	)		1,001,493
Others			(50,443	)		150,045
Ending balance	￦		69,724,581			80,529,513

F-149

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

24. Leases

Company as a lessee

(1) Lease contracts

The Company applies the short-term leases recognition exemption to its lease contracts that have a lease term of 12 months or less from the commencement date, and recognized ￦45,787 million and ￦199,490 million respectively, as expense for the years ended December 31, 2020 and 2021. The Company also applies the leases of low-value assets recognition exemption to leases contracts with underlying assets considered to be

of 

low value (i.e., approximately less than ￦5 million), and recognized ￦2,796 million and ￦2,349 million respectively, as expense for the year ended December 31, 2020 and 2021. The Company has lease contracts for various items such as consecutive voyage charter contracts, power purchase agreements (PPA), real estate lease contracts including buildings, switchyard, and land for electric substation, vehicles, and other equipment.

(2) Right-of-use assets as of December 31, 2020 and 2021 are as follows:

		2020
		Acquisition cost		Accumulated depreciation			Book value
		In millions of won
Land	￦		811,014		(104,435	)		706,579
Buildings			82,749		(35,527	)		47,222
Structures			24,175		(3,689	)		20,486
Machinery			1,308		(613	)		695
Ships			4,280,331		(842,968	)		3,437,363
Vehicles			29,281		(15,756	)		13,525
Others(*)			2,676,356		(2,360,060	)		316,296
	￦		7,905,214		(3,363,048	)		4,542,166

(*) Including power purchase agreements (“PPA”) with GS EPS and another LNG combined power supplier.

		2021
		Acquisition cost		Accumulated depreciation			Book value
		In millions of won
Land	￦		814,795		(162,000	)		652,795
Buildings			106,823		(43,939	)		62,884
Structures			26,374		(5,226	)		21,148
Machinery			1,308		(743	)		565
Ships			4,217,735		(1,188,516	)		3,029,219
Vehicles			30,375		(16,757	)		13,618
Others(*)			2,650,728		(2,371,560	)		279,168
	￦		7,848,138		(3,788,741	)		4,059,397

(*) Including a power purchase agreement (“PPA”) with CGN Yulchon Generation Co., Ltd.

F-150

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

24. Lease, Continued

(3) Changes in right-of-use assets for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
		In millions of won
Land	￦		644,074		12,269		(52,069	)		0			102,305			706,579
Buildings			34,577		53,182		(37,609	)		(803	)		(2,125	)		47,222
Structures			25,644		260		(1,485	)		0			(3,933	)		20,486
Machinery			824		0		(129	)		0			0			695
Ships			3,688,289		183,789		(427,221	)		0			(7,494	)		3,437,363
Vehicles			13,708		9,009		(7,747	)		(21	)		(1,424	)		13,525
Others			376,457		32,825		(59,994	)		(3	)		(32,989	)		316,296
	￦		4,783,573		291,334		(586,254	)		(827	)		54,340			4,542,166
		2021
		Beginning balance		Increase		Depreciation			Decrease			Others			Ending balance
		In millions of won
Land	￦		706,579		7,312		(57,231	)		0			(3,865	)		652,795
Buildings			47,222		22,336		(25,780	)		(1,469	)		20,575			62,884
Structures			20,486		2,198		(1,536	)		0			0			21,148
Machinery			695		0		(130	)		0			0			565
Ships			3,437,363		9,694		(411,291	)		0			(6,547	)		3,029,219
Vehicles			13,525		9,583		(8,162	)		(7	)		(1,321	)		13,618
Others			316,296		27,090		(50,485	)		(10,311	)		(3,422	)		279,168
	￦		4,542,166		78,213		(554,615	)		(11,787	)		5,420			4,059,397

F-151

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

24. Lease, Continued

(4) Lease liabilities as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Less than 1 year	￦		614,442			620,121
1 ~ 5 years			2,133,538			2,158,145
More than 5 years			2,461,557			2,150,722
			5,209,537			4,928,988
Less : Discount			(588,441	)		(518,485	)
Present value of lease payment	￦		4,621,096			4,410,503

(5) The details of the liquidity classification of lease liabilities as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Current lease liabilities	￦		576,665		583,558
Non-current lease liabilities			4,044,431		3,826,945
	￦		4,621,096		4,410,503

(6) Changes in lease liabilities for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)			Ending balance
		In millions of won
Lease liabilities	￦		5,070,133		280,114		(725,759	)		111,782		(115,174	)		4,621,096

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

		2021
		Beginning balance		Increase		Decrease			Interest expenses		Others(*)		Ending balance
		In millions of won
Lease liabilities	￦		4,621,096		73,090		(665,687	)		93,651		288,353		4,410,503

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

F-152

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

24. Lease, Continued

(7) Details of expense relating to lease contracts as lessee for the years ended December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Depreciation of right-of-use assets	￦		586,254		554,615
Interest expenses of lease liabilities			111,782		93,651
Leases expenses for short-term leases			45,787		199,490
Leases expenses for leases of low-value assets			2,796		2,349
Variable lease payments			33,267		54,675
	￦		779,886		904,780

(8) The total cash outflow related to the lease contracts, including cash outflows due to short-term leases and leases of low-value assets , amounts to ￦ 807,609 million and ￦ 922,200 million, for the years ended December 31, 2020 and 2021, respectively.

F-153

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

24. Lease, Continued

Company as a lessor

(1) Finance lease contracts

The Company entered into power purchase agreements (“PPA”) with Jordan Electric Power Company to provide a 373MW level Qatrana

Gas Combined Power Plant

over a 25-year lease term, and an 89.1MW level Fujeij

Wind Power Plant

over a 20-year lease term. Also, the Company has provided fly-ash pipe

conduits

as finance leases with an average lease term of 7 years. In addition, the Company provides 26 energy storage system installation projects and 131 energy efficiency contracts as finance leases with a lease term of 2 to 11 years. Also, the Company entered into a PPA with the Comission Federal de Electricidad in Mexico to provide for 25 years (from December 2013 to November 2038) all electricity generated from the power plant after completion of its construction and collect rates consisting of fixed costs (to recover the capital) and variable costs during the contracted period.

(2) Profit and loss related to finance lease for the years ended December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Finance income on the net investment in the lease	￦		117,763		111,569

(3) Maturity analysis of the lease payments receivable and reconciliation of the undiscounted lease payments to the net investment in the lease as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Less than 1 year	￦		162,211			172,528
1 ~ 2 years			148,485			163,937
2 ~ 3 years			144,913			158,933
3 ~ 4 years			139,605			156,450
4 ~ 5 years			136,962			155,068
More than 5 years			1,583,576			1,588,403
			2,315,752			2,395,319
Less : Unearned finance income			(1,192,686	)		(1,194,627	)
Net investment in the lease(*)	￦		1,123,066			1,200,692

(*) Including the present value of unguaranteed residual value amounting to ￦16,407 million and ￦19,574 million, as of December 31, 2020 and 2021, respectively.

The implicit interest rate for a lease term is determined on the lease contract date. The implicit interest rate of the finance lease contracts is from 0.00% up to 16.83% per year as of December 31, 2021. (prior year : 1.39% ~ 16.60%)

(4) Changes in the allowance for doubtful accounts of finance lease receivables for the years ended December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Beginning balance	￦		862		990
Bad debt expense			128		0
Reversal of allowance for doubtful accounts			0		(222	)
Ending balance	￦		990		768

F-154

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

25. Employment Benefits

(1) Employment benefit obligations as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Net defined benefit asset	￦		7,231		20,871
Net defined benefit obligations			1,907,013		1,675,741
Other long-term employee benefit obligations			3,847		3,417

(2) Principal assumptions used for actuarial valuation as of December 31, 2020 and 2021 are as follows:

	2020		2021
Discount rate		1.87%~2.12%		2.51% ~ 2.60%
Future salary and benefit levels		4.28%		4.28%
Weighted average duration		10.77 years		10.39 years

(3) Details of expense relating to defined benefit plans for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Current service cost	￦		440,300			509,520			524,942
Interest cost			83,619			83,248			91,877
Expected return on plan assets			(41,597	)		(42,742	)		(52,782	)
Past service cost			301,442			(2,027	)		5,483
Loss from settlement			(2,017	)		0			0
	￦		781,747			547,999			569,520

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

		2019		2020		2021
		In millions of won
Cost of sales	￦		580,623		397,442		415,959
Selling and administrative expenses			120,455		94,846		95,983
Others (Construction-in-progress and others)			80,669		55,711		57,578
	￦		781,747		547,999		569,520

In addition, for the years ended December 31, 2019, 2020 and 2021, employee benefit obligations expenses of ￦71,844 million, ￦60,587 million and ￦71,875 million, respectively, are recognized as cost of sales, and ￦12,775 million, ￦9,121 million and ￦17,144 million, respectively, are recognized as selling and administrative expenses, and ￦13,893 million, ￦11,861 million and ￦13,126 million, respectively, are recognized as construction-in-progress and others, relates to the Company’s defined contribution plans.

F-155

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

25. Employment Benefits, Continued

(4) Details of defined benefit obligations as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Present value of defined benefit obligation from funded plans	￦		4,570,614			4,564,417
Fair value of plan assets			(2,670,832	)		(2,909,547	)
Net liabilities incurred from defined benefit plans	￦		1,899,782			1,654,870

(5) Changes in the present value of defined benefit obligations for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		4,035,400			4,570,614
Current service cost			509,520			524,942
Interest cost			83,248			91,877
Remeasurement component			84,385			(345,755	)
Past service cost			(2,027	)		5,483
Actual payments			(139,956	)		(282,794	)
Others			44			50
Ending balance	￦		4,570,614			4,564,417

(6) Changes in the fair value of plan assets for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		2,111,313			2,670,832
Expected return			42,742			52,782
Remeasurement component			(390	)		(8,457	)
Contributions by the employers			582,275			317,707
Actual payments			(65,108	)		(123,317	)
Ending balance	￦		2,670,832			2,909,547

In addition, loss on accumulated remeasurement component amounting to ￦169,234 million and gain on accumulated remeasurement component amounting to ￦98,844 million have been recognized as other comprehensive income or loss for the years ended December 31, 2020 and 2021, respectively.

F-156

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

25. Employment Benefits, Continued

(7) Details of the fair value of plan assets as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Equity instruments	￦		253,358		344,002
Debt instruments			822,582		744,167
Bank deposits			284,655		407,809
Others			1,310,237		1,413,569
	￦		2,670,832		2,909,547

For the years ended December 31, 2020 and 2021, actual returns on plan assets amounted to ￦42,352 million and ￦44,325 million, respectively.

(8) Remeasurement components recognized in other comprehensive income (loss) for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Actuarial gain from changes in financial assumptions	￦		(2,979	)		(258,194	)
Experience adjustments, etc.			87,364			(87,561	)
Expected return			390			8,457
	￦		84,775			(337,298	)

Remeasurement

components

recognized as other comprehensive income or loss

are

included in retained earnings.

F-157

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

26. Provisions

(1) Provisions as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Employment benefits
Provisions for employment benefits	￦		1,024,574		0		1,048,939		0
Litigation
Litigation provisions			46,287		66,715		26,269		88,449
Decommissioning cost
Nuclear plants			0		16,974,884		0		19,461,461
Spent fuel			487,529		866,472		457,466		893,196
Radioactive waste			46,369		1,845,244		137,342		1,695,193
PCBs			0		119,019		0		103,665
Other recovery provisions			0		25,840		0		30,231
Others
Power plant regional support program			144,272		0		146,588		0
Transmission regional support program			96,895		0		250,288		0
Provisions for financial guarantee			22,250		44,104		21,032		59,809
Provisions for RPS			9,126		0		0		0
Provisions for greenhouse gas emissions obligations			393,121		0		655,544		0
Others			181,241		133,294		102,408		169,420
	￦		2,451,664		20,075,572		2,845,876		22,501,424

(2) Changes in provisions for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
		In millions of won
Employment benefits
Provisions for employment benefits	￦		975,619		1,078,382		(1,028,218	)		0			(1,209	)		1,024,574
Litigation
Litigation provisions			88,398		81,990		(34,662	)		(22,724	)		0			113,002
Decommissioning cost
Nuclear plants			15,994,039		1,028,580		(47,735	)		0			0			16,974,884
Spent fuel			1,355,280		394,642		(395,921	)		0			0			1,354,001
Radioactive waste			1,888,082		71,529		(67,998	)		0			0			1,891,613
PCBs			152,981		3,017		(14,839	)		(22,140	)		0			119,019
Other recovery provisions			10,773		15,280		0			0			(213	)		25,840
Others
Power plant regional support program			140,133		39,445		(42,935	)		0			7,629			144,272
Transmission regional support program			139,785		151,796		(194,686	)		0			0			96,895
Provisions for tax			0		0		(24	)		25			(1	)		0
Provisions for financial guarantee			81,357		11,303		(20,962	)		(5,317	)		(27	)		66,354
Provisions for RPS			2,889		494,199		(487,962	)		0			0			9,126
Provisions for greenhouse gas emissions obligations			682,459		331,684		(633,482	)		65,389			(52,929	)		393,121
Others			158,974		210,051		(48,919	)		(4,593	)		(978	)		314,535
	￦		21,670,769		3,911,898		(3,018,343	)		10,640			(47,728	)		22,527,236

F-158

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

26. Provisions, Continued

(2) Changes in provisions for the years ended December 31, 2020 and 2021 are as follows, continued:

		2021
		Beginning balance		Increase in provision		Payment			Reversal			Others			Ending balance
		In millions of won
Employment benefits
Provisions for employment benefits	￦		1,024,574		1,048,569		(1,024,212	)		0			8			1,048,939
Litigation
Litigation provisions			113,002		67,443		(44,446	)		(15,763	)		(5,518	)		114,718
Decommissioning cost
Nuclear plants			16,974,884		2,545,803		(59,226	)		0			0			19,461,461
Spent fuel			1,354,001		452,063		(455,402	)		0			0			1,350,662
Radioactive waste			1,891,613		3,862		(51,666	)		(11,274	)		0			1,832,535
PCBs			119,019		2,182		(17,408	)		(128	)		0			103,665
Other recovery provisions			25,840		553		(169	)		0			4,007			30,231
Others
Power plant regional support program			144,272		49,596		(47,280	)		0			0			146,588
Transmission regional support program			96,895		306,409		(153,016	)		0			0			250,288
Provisions for financial guarantee			66,354		85,355		(72,109	)		0			1,241			80,841
Provisions for RPS			9,126		445,402		(430,344	)		(24,184	)		0			0
Provisions for greenhouse gas emissions obligations			393,121		547,911		(235,469	)		(2,174	)		(47,845	)		655,544
Others			314,535		104,416		(95,541	)		(40,139	)		(11,443	)		271,828
	￦		22,527,236		5,659,564		(2,686,288	)		(93,662	)		(59,550	)		25,347,300

(3) Greenhouse gas emissions rights and obligations:

(i) Allowances received free of charge from the government for each planned period as of December 31, 2021 are as follows:

	3rd planned period
	2021		2022		2023		2024		2025		Total
	In ten thousands of tons(tCO2-eq)
Allowances received free of charge from the government		15,625		15,782		15,782		5,261		5,261		57,711

(ii) Changes in greenhouse gas emissions rights for the years ended December 31, 2021 and 2020 are as follows:

	2020
	2nd planned period
	Quantity			Amount
	In ten thousands of tons(tCO2-eq) and millions of won
Beginning		17,276			18,306
Purchase (sell)		723			270,338
Government submission		0			0
Borrowing (carryforward)		(94	)		68,711
Ending		17,905			357,355

F-159

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

26. Provisions, Continued

(3) Greenhouse gas emissions rights and obligations, continued:

	2021
	2nd planned period						3rd planned period
	2020						2021				2022					2023					2024					2025					Total
	Quantity			Amount			Quantity		Amount		Quantity			Amount		Quantity			Amount		Quantity			Amount		Quantity			Amount		Quantity		Amount
	In ten thousands of tons(tCO2-eq) and millions of won
Beginning		17,905			357,355			16,051		38,338		15,782			0		15,782			0		5,261			0		5,261			0		58,137		38,338
Purchase (sell)		433			95,375			1,426		410,099		(31	)		7,296		(43	)		5,479		(75	)		0		(50	)		6,873		1,227		429,747
Government submission		(17,560	)		(280,924	)		0		0		0			0		0			0		0			0		0			0		0		0
Borrowing (carryforward)		(539	)		(113,014	)		352		76,221		277			55,439		10			3,050		0			0		0			0		639		134,710
Others		(239	)		(58,792	)		0		0		0			0		0			0		0			0		0			0		0		0
Ending		0			0			17,829		524,658		16,028			62,735		15,749			8,529		5,186			0		5,211			6,873		60,003		602,795

(iii) The Company does not have greenhouse gas emissions rights pledged as collateral as of December 31, 2021.

(iv) The Company does not hold any greenhouse gas emissions rights for a purpose of  generating a profit from short-term fluctuations in price as of December 31, 2021.

(v) Estimated greenhouse gas emission of the Company for the year ended December 31, 2021 is 17,618 ten thousand tons.

F-160

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

27. Government Grants

(1) Government grants as of December 31, 2020 and 2021 are as follows:

			2020			2021
			In millions of won
Land	￦			(23,475	)		(23,474	)
Buildings				(57,231	)		(52,122	)
Structures				(180,009	)		(172,021	)
Machinery				(157,785	)		(140,082	)
Vehicles				(632	)		(1,675	)
Equipment				(227	)		(149	)
Tools				(239	)		(64	)
Construction-in-progress				(79,126	)		(111,822	)
Investment properties				(29	)		(30	)
Software				(136	)		(91	)
Development expenditures				(5,043	)		(3,820	)
Intangible assets under development				(7,203	)		(7,326	)
Other intangible assets				(75	)		(71	)
		￦		(511,210	)		(512,747	)

F-161

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

27. Government Grants, Continued

(2) Changes in government grants for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
		In millions of won
Cash	￦		0			(41,209	)		0			0		0		41,209			0
Land			(21,817	)		0			0			0		2		(1,660	)		(23,475	)
Buildings			(61,920	)		0			0			5,206		0		(517	)		(57,231	)
Structures			(186,554	)		0			0			9,526		2,032		(5,013	)		(180,009	)
Machinery			(158,907	)		0			0			17,468		496		(16,842	)		(157,785	)
Vehicles			(2,275	)		0			0			2,064		4		(425	)		(632	)
Equipment			(241	)		0			0			149		0		(135	)		(227	)
Tools			(403	)		0			0			243		0		(79	)		(239	)
Construction-in-progress			(61,211	)		0			8,783			0		0		(26,698	)		(79,126	)
Investment properties			(13	)		0			0			1		0		(17	)		(29	)
Software			(235	)		0			0			99		0		0			(136	)
Development expenditures			(1,492	)		0			0			1,453		0		(5,004	)		(5,043	)
Intangible assets under development			(11,029	)		0			0			0		0		3,826			(7,203	)
Other intangible assets			(79	)		0			0			4		0		0			(75	)
	￦		(506,176	)		(41,209	)		8,783			36,213		2,534		(11,355	)		(511,210	)
		2021
		Beginning balance			Receipt			Acquisition			Offset the items of depreciation expense and others		Disposal		Others			Ending balance
		In millions of won
Cash	￦		0			(37,920	)		0			0		0		37,920			0
Land			(23,475	)		0			0			0		1		0			(23,474	)
Buildings			(57,231	)		0			0			5,174		0		(65	)		(52,122	)
Structures			(180,009	)		0			0			9,517		1,811		(3,340	)		(172,021	)
Machinery			(157,785	)		0			0			17,519		531		(347	)		(140,082	)
Vehicles			(632	)		0			(26	)		460		0		(1,477	)		(1,675	)
Equipment			(227	)		0			0			95		0		(17	)		(149	)
Tools			(239	)		0			0			209		0		(34	)		(64	)
Construction-in-progress			(79,126	)		0			5,027			0		0		(37,723	)		(111,822	)
Investment properties			(29	)		0			0			1		0		(2	)		(30	)
Software			(136	)		0			0			64		0		(19	)		(91	)
Development expenditures			(5,043	)		0			0			1,439		0		(216	)		(3,820	)
Intangible assets under development			(7,203	)		0			0			0		0		(123	)		(7,326	)
Other intangible assets			(75	)		0			0			4		0		0			(71	)
	￦		(511,210	)		(37,920	)		5,001			34,482		2,343		(5,443	)		(512,747	)

F-162

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

27. Government Grants, Continued

(3) Changes in government grants for specific business projects for the years ended December 31, 2020 and 2021 are as follows:

						2020
								Increase												Decrease
								Contribution						Interests						Execution							Return
Department	Project	Description	Period	Budget		Beginning balance		Self- payment		Local government		Government subsidies		Self- payment		Local government		Government subsidies		Self- payment		Local government		Government subsidies			Self- payment		Local government		Government subsidies			Others		Ending balance
				In millions of won
Ministry of Trade, Industry and Energy	Temporary electricity bill support for small business owners	Temporary electricity bill support for small business owners	2020.04.01 ~  2020.12.31		72,662		0		0		0		72,662		0		0		16		0		0		(71,914	)		0		0		(16	)		0		748
	Energy Voucher	2020 Energy VoucherSupport	2020.01.01 ~ 2020.12.31		46,148		0		0		0		46,148		0		0		2		0		0		(46,148	)		0		0		(2	)		0		0
						2021
								Increase												Decrease
								Contribution						Interests						Execution							Return
Department	Project	Description	Period	Budget		Beginning balance		Self- payment		Local government		Government subsidies		Self- payment		Local government		Government subsidies		Self- payment		Local government		Government subsidies			Self- payment		Local government		Government subsidies			Others		Ending balance
				In millions of won
Ministry of Trade, industry and Energy	Temporary electricity bill support for small business owners	Temporary electricity bill support for small business owners	2021.04.01 ~ 2022.06.30		211,235		748		0		0		139,550		0		0		0		0		0		(122,563	)		0		0		0			0		17,735

F-163

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

28. Deferred Revenues

Deferred revenue for the years ended December 31, 2020 and 2021 are as follows which included in current and non-current non-financial liabilities in the consolidated statements of financial position:

		2020			2021
		In millions of won
Beginning balance	￦		9,201,538			9,868,189
Increase			1,310,128			1,149,578
Recognized as revenue			(643,477	)		(661,212	)
Ending balance	￦		9,868,189			10,356,555

29. Non-financial Liabilities

Non-financial liabilities as of December 31, 2020 and 2021 are as follows:

		2020				2021
		Current		Non-current		Current		Non-current
		In millions of won
Advance received	￦		3,693,043		331,596		4,157,916		398,056
Unearned revenue			35,068		6,122		40,187		6,517
Deferred revenue			625,596		9,242,593		659,397		9,697,158
Withholdings			257,059		9,909		345,892		5,171
Others			1,360,684		71,721		1,262,941		109,462
	￦		5,971,450		9,661,941		6,466,333		10,216,364

F-164

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

30. Contributed Capital

(1) Details of shares issued as of December 31, 2020 and 2021 are as follows:

	2020
	Shares authorized		Shares issued			Par value per share (in won)		Owned by government(*)		Owned by others		Total
	In millions of won except share information
Common shares		1,200,000,000		641,964,077	￦		5,000		1,640,385		1,569,435		3,209,820

(*) Korea Development Bank’s interest of ￦1,056,176 million is included.

	2021
	Shares authorized		Shares issued			Par value per share (in won)		Owned by government(*)		Owned by others		Total
	In millions of won except share information
Common shares		1,200,000,000		641,964,077	￦		5,000		1,640,385		1,569,435		3,209,820

(*) Korea Development Bank’s interest of ￦1,056,176 million is included.

(2) Details in number of outstanding capital stock for the years ended December 31, 2020 and 2021 are as follows.

	2020		2021
	Number of shares
Beginning balance		641,964,077		641,964,077
Ending balance		641,964,077		641,964,077

(3) Details of share premium as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Share premium	￦		843,758		843,758

F-165

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

31. Retained Earnings and Dividends Paid

(1) Details of retained earnings as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Legal reserve(*)	￦		1,604,910		1,604,910
Voluntary reserves			32,179,066		33,282,817
Retained earnings before appropriations			17,349,625		10,359,255
Retained earnings	￦		51,133,601		45,246,982

(*) The KEPCO Act requires KEPCO to appropriate a legal reserve equal to at least 20 percent of net income for each accounting period until the reserve equals 50 percent of KEPCO’s common stock. The legal reserve is not available for cash dividends; however, this reserve may be credited to paid-in capital or offset against accumulated deficit by the resolution of the shareholders.

(2) Details of voluntary reserves as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Reserve for investment on social overhead capital	￦		5,277,449		5,277,449
Reserve for research and human development(*)			330,000		330,000
Reserve for business expansion			26,361,617		27,465,368
Reserve for equalizing dividends			210,000		210,000
	￦		32,179,066		33,282,817

(*) 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 years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		49,202,133			51,133,601
Profit (loss) for the period attributed to owner of the controlling Company			1,991,347			(5,315,055	)
Changes in equity method retained earnings			3,181			3,609
Remeasurements of defined benefit liability, net of tax			(62,857	)		201,067
Transfer of gain (loss) on valuation of financial assets at FVOCI			0			4,388
Dividends paid			0			(780,628	)
Transactions between consolidated entities			(203	)		0
Ending balance	￦		51,133,601			45,246,982

F-166

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

31. Retained Earnings and Dividends Paid, Continued

(4) Dividends paid for the years ended December 31, 2019, 2020 and 2021 are as follows:

	2019
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid
								(In won)
Common shares		641,964,077		0		641,964,077	￦		0		0

	2020
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid
								(In won)
Common shares		641,964,077		0		641,964,077	￦		0		0

	2021
In millions of won	Number of shares issued		Number of treasury stocks		Number of shares eligible for dividends			Dividends paid per share		Dividends paid
								(In won)
Common shares		641,964,077		0		641,964,077	￦		1,216		780,628

(5) Changes in retained earnings of investments in associates and joint ventures for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		(2,820	)		361
Changes			3,181			3,609
Ending balance	￦		361			3,970

(6) Changes in remeasurement components related to defined benefit liability for the years ended December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Beginning balance	￦		(117,779	)		(169,234	)
Changes			(77,828	)		327,957
Income tax effect			14,971			(126,890	)
Transfer to reserve for business expansion			11,402			67,011
Ending balance	￦		(169,234	)		98,844

F-167

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

32. Statements of Appropriation of Retained Earnings (Disposition of Deficit)

For the year ended December 31, 2020, KEPCO’s retained earnings were appropriated on March 25, 2021. For the year ended December 31, 2021, KEPCO’s deficits are expected to be disposed on March 29, 2022.

The statements

of disposition of deficit and appropriation of retained earnings of KEPCO, the controlling company, for the years ended December 31, 2020 and 2021, respectively, are as follows:

		2020			2021
		In millions of won except for dividends per share
I.   Retained earnings before appropriations (undisposed deficit)
Unappropriated retained earnings (deficit) carried over from prior years	￦		0			0
Net income (loss)			1,951,498			(5,607,732	)
Remeasurement of the defined benefit plan			(67,118	)		107,884
			1,884,380			(5,499,848	)
II. Transfer from voluntary reserves			0			5,499,848
III.  Subtotal ( I+II )			1,884,380			0
IV.  Appropriations of retained earnings (Disposition of deficit)
Legal reserve			—			—
Dividends (government, individual) (Amount of dividends per share (%) : Current year – ￦ 0 (0%),                                                              Prior year – ￦ 1,216 (24.32%))			(780,628	)		0
Reserve for business expansion			(1,103,752	)		0
			(1,884,380	)		0
V. Unappropriated retained earnings to be carried over forward to subsequent year			0			0

F-168

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

33. Hybrid Bonds

Hybrid bonds classified as equity (non-controlling interest) as of December 31, 2020 and 2021 are as follows:

Issuer	Hybrid bond	Issued date		Maturity		Yield (%)			2020			2021
	In millions of won
Korea South-EastPower Co., Ltd.	1st hybrid bond		2012.12.07		2042.12.06		4.38	￦		170,000			170,000
Korea South-EastPower Co., Ltd.	2nd hybrid bond		2012.12.07		2042.12.06		4.44			230,000			230,000
Expense of issuance										(1,090	)		(1,090	)
								￦		398,910			398,910

Although these instruments have contractual maturity dates, th

e

 contractual agreements allow these subsidiaries to indefinitely extend the maturity dates and defer the payment of interest without modification to the other terms of the instruments. When the Company decides not to pay dividends on ordinary shares, they are not required to pay interest on the hybrid bonds.

As

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

F-169

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

34. Other Components of Equity

(1) Other components of equity of the parent as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Other capital surplus	￦		1,224,105			1,231,109
Accumulated other comprehensive income (loss)			(409,577	)		(57,632	)
Other equity			13,294,973			13,294,973
	￦		14,109,501			14,468,450

(2) Changes in other capital surplus for the years ended December 31, 2020 and 2021 are as follows:

		2020								2021
		Gains on disposal of treasury stocks		Others			Subtotal			Gains on disposal of treasury stocks		Others			Subtotal
		In millions of won
Beginning balance	￦		387,524		838,840			1,226,364			387,524		836,581			1,224,105
Changes in consolidation scope			0		0			0			0		43			43
Issuance of share capital of subsidiary			0		(148	)		(148	)		0		(491	)		(491	)
Others			0		(2,111	)		(2,111	)		0		7,452			7,452
Ending balance	￦		387,524		836,581			1,224,105			387,524		843,585			1,231,109

F-170

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

34. Other Components of Equity, Continued

(3) Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2020 and 2021 are as follows:

		2020
		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 credit			Reserve for gain (loss) on valuation of derivatives			Total
		In millions of won
Beginning balance	￦		(92,599	)		142,896			(294,898	)		(36,129	)		(280,730	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			(8,533	)		0			0			0			(8,533	)
Shares in other comprehensive Income(loss) of associates and joint ventures, net of tax			0			(132,805	)		0			0			(132,805	)
Foreign currency translation of foreign operations, net of tax			0			0			(46,032	)		0			(46,032	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			0			0			0			58,523			58,523
Ending balance	￦		(101,132	)		10,091			(340,930	)		22,394			(409,577	)
		2021
		Financial assets at fair value through other comprehensive income valuation reserve			Shares in other comprehensive income of investments in associates and joint ventures			Reserve for overseas operations translation credit			Reserve for gain (loss) on valuation of derivatives			Total
		In millions of won
Beginning balance	￦		(101,132	)		10,091			(340,930	)		22,394			(409,577	)
Changes in the unrealized fair value of financial assets at FVOCI, net of tax			59,022			0			0			0			59,022
Shares in other comprehensive income of associates and joint ventures, net of tax			0			301,161			0			0			301,161
Foreign currency translation of foreign operations, net of tax			0			0			15,760			0			15,760
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			0			0			0			(19,610	)		(19,610	)
Others			(4,388	)		0			0			0			(4,388	)
Ending balance	￦		(46,498	)		311,252			(325,170	)		2,784			(57,632	)

(4) Other equity as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Statutory revaluation reserve	￦		13,295,098			13,295,098
Changes in other equity			(125	)		(125	)
	￦		13,294,973			13,294,973

F-171

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

35. Sales

Details of sales for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019				2020				2021
		Domestic		Overseas		Domestic		Overseas		Domestic		Overseas
		In millions of won
[Type of goods and services]
Sales of goods	￦		56,609,330		285,546		56,380,608		303,704		58,261,006		441,203
Electricity			55,939,001		0		55,730,985		0		57,210,231		0
Heat supply			220,948		0		198,715		0		232,294		0
Others			449,381		285,546		450,908		303,704		818,481		441,203
Sales related to rendering of services			222,106		186,184		223,075		206,275		252,216		204,184
Sales of construction services			110,692		1,154,224		170,895		641,280		159,262		595,736
	￦		56,942,128		1,625,954		56,774,578		1,151,259		58,672,484		1,241,123
[Timing of revenue recognition]
Performance obligations satisfied at a point in time	￦		56,609,330		285,546		56,380,608		303,704		58,261,006		441,203
Performance obligations satisfied over time			332,798		1,340,408		393,970		847,555		411,478		799,920
	￦		56,942,128		1,625,954		56,774,578		1,151,259		58,672,484		1,241,123

F-172

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

36. Selling and Administrative Expenses

(1) Selling and administrative expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020		2021
		In millions of won
Salaries	￦		775,204			1,095,183		1,121,188
Retirement benefit expense			157,272			103,967		113,127
Welfare and benefit expense			120,463			155,071		155,558
Insurance expense			12,427			10,178		17,909
Depreciation			232,510			218,103		219,427
Amortization of intangible assets			76,547			87,086		91,428
Bad debt expense			(12,719	)		20,648		17,968
Commission			632,849			368,275		410,275
Advertising expense			34,453			29,559		29,230
Training expense			7,174			5,196		4,923
Vehicle maintenance expense			9,525			9,435		8,849
Publishing expense			3,414			3,677		3,568
Business promotion expense			3,038			3,614		3,522
Rent expense			40,505			36,337		43,650
Telecommunication expense			8,451			8,686		8,569
Transportation expense			865			1,007		870
Taxes and dues			58,666			62,828		93,446
Expendable supplies expense			6,682			8,029		9,052
Water, light and heating expense			11,867			11,749		12,351
Repairs and maintenance expense			88,576			79,185		123,134
Ordinary development expense			224,463			197,436		213,936
Travel expense			15,652			10,793		11,099
Clothing expense			9,369			14,834		10,540
Survey and analysis expense			848			826		889
Membership fee			969			1,274		1,331
Others			150,506			135,467		149,945
	￦		2,669,576			2,678,443		2,875,784

(2) Details of “others” included in selling and administrative expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020		2021
		In millions of won
Accommodation development expenses	￦		53,945			30,889		57,815
Miscellaneous wages			39,794			45,887		47,221
Litigation and filing expenses			21,768			19,341		16,383
Compensation for damages			(1,924	)		8,374		3,303
Outsourcing expenses			3,293			3,610		3,799
Reward expenses			2,858			3,228		3,006
Overseas market development expenses			1,997			1,218		1,192
Others			28,775			22,920		17,226
	￦		150,506			135,467		149,945

F-173

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

37. Other Income and Expenses

(1) Other income for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Reversal of other provisions	￦		16,542		25,826		15,548
Reversal of other allowance for doubtful accounts			0		2,465		98
Gains on government grants			281		269		458
Gains on assets contributed			6,921		24,324		9,347
Gains on liabilities exempted			916		1,314		1,830
Compensation and reparations revenue			113,292		95,407		104,826
Revenue from foundation fund			—		—		1
Revenue from research contracts			5,276		4,001		5,996
Income related to transfer of assets from customers			604,808		643,477		661,212
Rental income			191,088		193,567		204,123
Others			58,849		45,798		30,694
	￦		997,973		1,036,448		1,034,133

(2) Details of “others” included in other income for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Refund of claim for rectification	￦		1,969		11,880		7,274
Adjustment of research project			3,294		2,150		7,638
Maintenance expenses on lease building			153		2,785		160
Training expenses			3,167		3,852		1,739
Deposit redemption			436		314		378
Reversal of expenses on litigation			9,926		620		991
Revenue on royalty fee			0		0		173
Reimbursement of insurance fee			610		22		1
Gains on guarantee contracts			135		134		27
Others			39,159		24,041		12,313
	￦		58,849		45,798		30,694

F-174

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

37. Other Income and Expenses, Continued

(3) Other expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Compensation and indemnification expense	￦		403		11,959		663
Accretion expenses of other provisions			7,939		17,991		2,711
Depreciation expenses on investment properties			5,069		1,453		1,386
Depreciation expenses on idle assets			6,542		6,604		3,621
Other bad debt expense			29,348		32,503		49,372
Donations			64,752		316,981		152,456
Others			127,860		30,229		47,723
	￦		241,913		417,720		257,932

(4) Details of “others” included in other expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Operating expenses related to the idle assets	￦		49		46		44
Research grants			399		91		109
Expenses related to farming and fishing village  supports			13,991		16,115		17,065
Expenses related to  Operating of a fitness center			5,234		5,101		6,948
Expenses on adjustment of research and development grants			554		720		2,241
Taxes and dues			188		253		119
Expenses on R&D supports			67		242		861
Others			107,378		7,661		20,336
	￦		127,860		30,229		47,723

F-175

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

38. Other Gains (Losses)

(1) Composition of other gains (losses) for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Other gains
Gains on disposal of property, plant and equipment	￦		43,784			93,195			56,284
Gains on disposal of intangible assets			206			1,556			1
Reversal of impairment loss on property, plant and equipment			16,692			7,805			0
Reversal of impairment loss on intangible assets			0			0			14
Gains on foreign currency translation			16,340			8,917			20,598
Gains on foreign currency transaction			53,152			61,865			48,671
Gains on insurance proceeds			17,410			43,800			144
Others			238,688			322,379			250,174
Other losses
Losses on disposal of property, plant and equipment			(72,508	)		(162,725	)		(92,622	)
Losses on disposal of intangible assets			(827	)		(392	)		(145	)
Losses on valuation of other non-current assets			0			(241	)		0
Impairment loss on property, plant and equipment			(50,034	)		(80,413	)		(4,056	)
Impairment loss on intangible assets			(513,609	)		(3,599	)		0
Impairment loss on other non-current assets			(49,620	)		0			(16,035	)
Losses on foreign currency translation			(8,757	)		(17,664	)		(4,732	)
Losses on foreign currency transaction			(55,283	)		(49,694	)		(67,990	)
Others			(217,892	)		(189,695	)		(181,787	)
	￦		(582,258	)		35,094			8,519

(2) Details of “others” included in other gains for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Gains on disposal of inventories	￦		3,424		3,373		4,446
Gains on proxy collection of TV license fee			41,013		41,438		42,271
Gains on compensation of impaired electric poles			1,372		978		812
Gains on harbor facilities dues			3,741		2,231		3,281
Gains on technical fees			3,044		4,826		3,968
Reversal of occupation development training fees			1,472		352		229
Gains on disposal of waste			5,317		6,927		4,272
Gains on insurance			812		0		690
Gains on tax rebate			341		772		685
Gains on other commission			1,111		1,643		1,822
Gains on disposal of greenhouse gas emissions rights			0		0		8,739
Gains on disposal of assets held-for-sale			23,778		0		160
Others			153,263		259,839		178,799
	￦		238,688		322,379		250,174

(3) Details of “others” included in other losses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Losses on valuation of inventories	￦		3,127		4,998		7,761
Losses on disposal of inventories			10,456		37,644		8,874
Losses due to disaster			7,635		16,814		6,238
Losses on rounding adjustment of electric charge surtax			1,268		1,276		1,283
Loss on disposal of greenhouse gas emissions rights			—		—		11,282
Others			195,406		128,963		146,349
	￦		217,892		189,695		181,787

F-176

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

39. Finance Income

(1) Finance income for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Interest income	￦		268,118		242,586		221,874
Dividends income			13,838		7,316		10,522
Gains on disposal of financial assets			3,866		11,992		7,718
Gains on valuation of financial assets at fair value through profit or loss			5,575		12,904		14,338
Gains on valuation of derivatives			362,735		57,563		860,011
Gains on transaction of derivatives			157,961		146,448		124,900
Gains on foreign currency translation			175,839		1,005,961		146,349
Gains on foreign currency transactions			21,774		24,009		15,618
Other financial income			0		1,470		1,284
	￦		1,009,706		1,510,249		1,402,614

(2) Details of interest income included in finance income for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Cash and cash equivalents	￦		42,861		9,419		12,692
Financial assets at fair value through profit or loss			29,411		19,114		18,415
Financial assets at amortized cost			539		612		797
Loans			63,448		26,232		25,196
Short-term financial instruments			49,070		25,540		7,531
Long-term financial instruments			12,794		10,406		12,470
Other financial assets			54		228		230
Trade and other receivables			69,941		151,035		144,543
	￦		268,118		242,586		221,874

F-177

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

40. Finance Expenses

(1) Finance expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Interest expense	￦		2,046,811		1,995,425		1,914,457
Losses on sale of financial assets			2,106		648		1,045
Losses on valuation of financial assets at fair value through profit or loss			4,513		7,396		5,480
Losses on valuation of derivatives			45,385		513,278		37,017
Losses on transaction of derivatives			71,546		81,055		40,818
Losses on foreign currency translation			553,731		215,047		1,159,334
Losses on foreign currency transaction			55,509		79,103		83,558
Losses on repayment of financial liabilities			0		35		10
Others			2,555		4,456		4,058
	￦		2,782,156		2,896,443		3,245,777

(2) Details of interest expense included in finance expenses for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Trade and other payables	￦		94,019			88,757			213,765
Short-term borrowings			42,971			29,358			42,371
Long-term borrowings			119,806			118,678			115,141
Debt securities			1,827,511			1,805,253			1,728,588
Other financial liabilities			558,464			540,867			384,423
			2,642,771			2,582,913			2,484,288
Less: Capitalized borrowing costs			(595,960	)		(587,488	)		(569,831	)
	￦		2,046,811			1,995,425			1,914,457

Capitalization rates for the years ended December 31, 2019, 2020 and 2021 are 2.37%~3.44%, 2.14%~4.84% and 2.02%~4.33%, respectively.

F-178

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

41. Income Taxes

(1) Income tax expense (benefit) for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Current income tax expense
Payment of income tax	￦		538,223			671,179			357,767
Adjustment in respect of prior years due to change in estimate			(176,441	)		(63,756	)		153,113
Current income tax directly recognized in equity			(53,302	)		51,486			(198,714	)
			308,480			658,909			312,166
Deferred tax expense (benefit)
Generation and realization of temporary differences			(636,984	)		(77,985	)		(489,411	)
Changes of unrecognized tax losses, tax credit and temporary differences for prior periods			(22,469	)		(10,471	)		(43,653	)
Changes in deferred tax on tax losses carryforwards			(582,011	)		296,070			(1,641,823	)
Tax credit carryforwards			(71,306	)		32,541			(12,199	)
Amount due to change in tax rate or regulations			1,987			0			18,931
			(1,310,783	)		240,155			(2,168,155	)
Income tax expense (benefit)	￦		(1,002,303	)		899,064			(1,855,989	)

(2) Reconciliation between actual income tax expense (benefit) and amount computed by applying the statutory tax rate to profit (loss) before income taxes for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Profit (loss) before income tax	￦		(3,265,838	)		2,991,533			(7,085,214	)
Income tax expense (benefit) computed at applicable tax rate(*1)			(898,105	)		822,672			(1,948,434	)
Adjustments
Effect of applying gradual tax rate			10,362			(10,362	)		(10,362	)
Effect of non-taxable income			(9,990	)		(13,593	)		(4,983	)
Effect of non-deductible expenses			12,197			46,776			78,814
Effect of tax losses that are not recognized as deferred tax asset			57,490			0			1,351
Effects of tax credits and deduction			(76,983	)		(63,753	)		(43,931	)
Reversal of unrecognized deferred tax asset, net			(22,469	)		(10,471	)		(43,641	)
Effect of change in deferred tax due to change in tax rate			16,848			(17,590	)		18,931
Deduction of deferred tax assets			0			55,682			73,887
Deferred tax related to investments in subsidiaries, associates and joint ventures			147,598			102,137			(135,878	)
Others, net			(62,810	)		51,322			5,144
			72,243			140,148			(60,668	)
Adjustment in respect of prior years due to change in estimate			(176,441	)		(63,756	)		153,113
Income tax expense (benefit)	￦		(1,002,303	)		899,064			(1,855,989	)
Effective tax rate			(*02	)		30.05	%		(*02	)

(*1) Applicable tax rate is 27.5% as of December 31, 2019, 2020 and 2021.

(*2) The effective tax rate for the year ended December 31, 2019 and 2021 is not calculated due to income tax benefit and the effective tax rate for the year ended December 31, 2020 is 30.05%.

(3) Income tax directly adjusted to equity (except for accumulated other comprehensive income (loss)) for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019		2020		2021
		In millions of won
Dividends of hybrid bond  and others	￦		3,432		4,273		4,736

F-179

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

41. Income Taxes, Continued

(4) Income tax recognized as other comprehensive income (loss) for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019			2020			2021
		In millions of won
Income tax recognized as other comprehensive income (loss)
Gain (loss) on valuation of financial assets at fair value through other comprehensive income	￦		(4,217	)		19,447			(9,753	)
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			(15,642	)		(47,231	)		24,220
Remeasurement of defined benefit liability			(40,235	)		14,971			(126,890	)
Investments in associates			4,275			35,714			(53,672	)
Others			(914	)		24,312			(37,355	)
	￦		(56,733	)		47,213			(203,450	)

F-180

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

41. Income Taxes, Continued

(5) Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2020 and 2021 are as follows, continued:

		2020
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance
		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		648,847			14,566			26,374			—		689,787
Cash flow hedge			(999	)		63,817			(47,231	)		—		15,587
Investments in subsidiaries, associates and joint ventures			(8,665,727	)		(38,002	)		35,714			—		(8,668,015	)
Property, plant and equipment			(7,115,218	)		(598,231	)		—			—		(7,713,449	)
Finance lease			(160,443	)		(50,977	)		—			—		(211,420	)
Intangible assets			(55,906	)		24,740			—			—		(31,166	)
Financial assets at fair value through profit or loss			341			(328	)		—			—		13
Financial assets at fair value through other comprehensive income			18,245			258			19,447			—		37,950
Deferred revenue			213,003			(13,302	)		—			—		199,701
Provisions			5,456,919			459,884			—			—		5,916,803
Doubtful receivables			59			(59	)		—			—		—
Other finance liabilities			39,364			(13,238	)		—			4,273		30,399
Gains or losses on foreign exchange translation			57,961			(69,596	)		—			—		(11,635	)
Allowance for doubtful accounts			57,607			(1,478	)		—			—		56,129
Accrued income			(4,376	)		13,320			—			—		8,944
Special deduction for property, plant and equipment			(215,373	)		(10,978	)		—			—		(226,351	)
Others			1,342,716			150,326			12,909			—		1,505,951
			(8,382,980	)		(69,278	)		47,213			4,273		(8,400,772	)
Deferred tax on unused tax losses and tax credit
Unused tax losses			1,111,813			(218,739	)		—			—		893,074
Excess of donation limit			36,695			(1,514	)		—			—		35,181
Tax credit			107,526			(2,110	)		—			—		105,416
			1,256,034			(222,363	)		—			—		1,033,671
	￦		(7,126,946	)		(291,641	)		47,213			4,273		(7,367,101	)

F-181

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

41. Income Taxes, Continued

(5) Changes in deferred tax assets (liabilities) recognized in the consolidated statements of financial position for the years ended December 31, 2020 and 2021 are as follows, continued:

		2021
		Beginning balance			Amounts recognized in profit or loss			Amount recognized in other comprehensive income (loss)			Amounts recognized directly in equity		Ending balance
		In millions of won
Deferred tax on temporary differences
Employee benefits	￦		689,787			(4,514	)		(126,890	)		—		558,383
Cash flow hedge			15,587			(90,217	)		24,220			463		(49,947	)
Investments in subsidiaries, associates and joint ventures			(8,668,015	)		367			(53,672	)		—		(8,721,320	)
Property, plant and equipment			(7,713,449	)		282,988			—			—		(7,430,461	)
Finance lease			(211,420	)		(204,138	)		—			—		(415,558	)
Intangible assets			(31,166	)		(315	)		—			—		(31,481	)
Financial assets at fair value through profit or loss			13			(1	)		—			—		12
Financial assets at fair value through other comprehensive income			37,950			(816	)		(9,753	)		—		27,381
Deferred revenue			199,701			(13,310	)		—			—		186,391
Provisions			5,916,803			577,511			—			—		6,494,314
Doubtful receivables			0			801			—			—		801
Other finance liabilities			30,399			(3,262	)		—			4,273		31,410
Gains or losses on foreign exchange translation			(11,635	)		103,046			—			—		91,411
Allowance for doubtful accounts			56,129			8,135			—			—		64,264
Accrued income			8,944			1,058			—			—		10,002
Special deduction for property, plant and equipment			(226,351	)		2,224			—			—		(224,127	)
Others			1,505,951			(22,769	)		(37,355	)		—		1,445,827
			(8,400,772	)		636,788			(203,450	)		4,736		(7,962,698	)
Deferred tax on unused tax losses and tax credit
Unused tax losses			893,074			1,666,803			—			—		2,559,877
Excess of donation limit			35,181			34,004			—			—		69,185
Tax credit			105,416			29,274			—			—		134,690
			1,033,671			1,730,081			—			—		2,763,752
	￦		(7,367,101	)		2,366,869			(203,450	)		4,736		(5,198,946	)

F-182

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

41. Income Taxes, Continued

(6) Deferred tax assets (liabilities) recognized in the consolidated statements of financial position as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Deferred tax assets	￦		1,733,146			1,901,992
Deferred tax liabilities			(9,100,247	)		(7,100,938	)
	￦		(7,367,101	)		(5,198,946	)

(7) Details of deductible temporary differences, tax losses and unused tax credits for which no deferred tax assets were recognized as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Deductible temporary differences	￦		1,405,621		1,539,980

F-183

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

42. Assets Held-for-Sale

Assets held-for-sale as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Land(*1)	￦		0		2,907
Buildings(*1)			1		12,971
Investments(*1)			0		1
Others(*2)			924		0
	￦		925		15,879

(*1) The board of directors of KEPCO Engineering & Construction Company, Inc., a subsidiary of the Company, made a resolution to sell its old office building in Yongin -si , Gyeonggi-do during the year ended December 31, 2021, and reclassified the buildings, structures, and land as assets held-for-sale expecting its carrying amount would be recovered through a sale transaction.

(*2) The Company had decided to sell its shares of DG Fairhaven Power, LLC, a subsidiary of the Company, and classified them as assets held-for-sale as of December 31, 2020. The disposal was completed during the year ended December 31, 2021.

F-184

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

43. Expenses Classified by Nature

Expenses classified by nature for the years ended December 31, 2019, 2020 and 2021 are as follows:

		2019
		Selling and administrative expenses			Cost of sales		Total
		In millions of won
Raw materials used	￦		0			17,084,029		17,084,029
Salaries			775,204			3,834,772		4,609,976
Retirement benefit expense			157,272			652,467		809,739
Welfare and benefit expense			120,463			443,482		563,945
Insurance expense			12,427			93,702		106,129
Depreciation			232,510			10,734,246		10,966,756
Amortization of intangible assets			76,547			80,368		156,915
Bad debt expense			(12,719	)		0		(12,719	)
Commission			632,849			378,861		1,011,710
Advertising expense			34,453			9,852		44,305
Training expense			7,174			16,903		24,077
Vehicle maintenance expense			9,525			7,652		17,177
Publishing expense			3,414			3,423		6,837
Business promotion expense			3,038			3,981		7,019
Rent expense			40,505			176,413		216,918
Telecommunication expense			8,451			11,034		19,485
Transportation expense			865			4,555		5,420
Taxes and dues			58,666			481,684		540,350
Expendable supplies expense			6,682			32,999		39,681
Water, light and heating expense			11,867			32,378		44,245
Repairs and maintenance expense			88,576			2,210,278		2,298,854
Ordinary development expense			224,463			511,252		735,715
Travel expense			15,652			68,581		84,233
Clothing expense			9,369			7,539		16,908
Survey and analysis expense			848			3,949		4,797
Membership fee			969			12,730		13,699
Power purchase			0			18,269,732		18,269,732
Others			150,506			2,612,973		2,763,479
	￦		2,669,576			57,779,835		60,449,411

F-185

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

43. Expenses Classified by Nature, Continued

Expenses classified by nature for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

		2020
		Selling and administrative expenses		Cost of sales		Total
		In millions of won
Raw materials used	￦		0		13,544,827		13,544,827
Salaries			1,095,183		4,183,454		5,278,637
Retirement benefit expense			103,967		458,029		561,996
Welfare and benefit expense			155,071		484,319		639,390
Insurance expense			10,178		93,130		103,308
Depreciation			218,103		11,151,393		11,369,496
Amortization of intangible assets			87,086		83,380		170,466
Bad debt expense			20,648		0		20,648
Commission			368,275		376,047		744,322
Advertising expense			29,559		8,161		37,720
Training expense			5,196		12,912		18,108
Vehicle maintenance expense			9,435		7,161		16,596
Publishing expense			3,677		3,524		7,201
Business promotion expense			3,614		3,720		7,334
Rent expense			36,337		191,073		227,410
Telecommunication expense			8,686		9,961		18,647
Transportation expense			1,007		10,362		11,369
Taxes and dues			62,828		492,203		555,031
Expendable supplies expense			8,029		36,966		44,995
Water, light and heating expense			11,749		31,209		42,958
Repairs and maintenance expense			79,185		2,465,716		2,544,901
Ordinary development expense			197,436		503,206		700,642
Travel expense			10,793		60,896		71,689
Clothing expense			14,834		8,116		22,950
Survey and analysis expense			826		3,746		4,572
Membership fee			1,274		13,130		14,404
Power purchase			0		15,725,220		15,725,220
Others			135,467		1,842,735		1,978,202
	￦		2,678,443		51,804,596		54,483,039

F-186

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

43. Expenses Classified by Nature, Continued

Expenses classified by nature for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

		2021
		Selling and administrative expenses		Cost of sales		Total
		In millions of won
Raw materials used	￦		0		18,575,160		18,575,160
Salaries			1,121,188		4,272,971		5,394,159
Retirement benefit expense			113,127		487,834		600,961
Welfare and benefit expense			155,558		570,142		725,700
Insurance expense			17,909		104,544		122,453
Depreciation			219,427		11,547,677		11,767,104
Amortization of intangible assets			91,428		74,733		166,161
Bad debt expense			17,968		0		17,968
Commission			410,275		307,211		717,486
Advertising expense			29,230		9,552		38,782
Training expense			4,923		13,276		18,199
Vehicle maintenance expense			8,849		8,152		17,001
Publishing expense			3,568		3,300		6,868
Business promotion expense			3,522		3,777		7,299
Rent expense			43,650		193,470		237,120
Telecommunication expense			8,569		10,959		19,528
Transportation expense			870		53,365		54,235
Taxes and dues			93,446		529,183		622,629
Expendable supplies expense			9,052		41,367		50,419
Water, light and heating expense			12,351		42,934		55,285
Repairs and maintenance expense			123,134		2,492,030		2,615,164
Ordinary development expense			213,936		475,461		689,397
Travel expense			11,099		67,086		78,185
Clothing expense			10,540		7,994		18,534
Survey and analysis expense			889		3,955		4,844
Membership fee			1,331		8,492		9,823
Power purchase			0		21,632,127		21,632,127
Others			149,945		2,022,426		2,172,371
	￦		2,875,784		63,559,178		66,434,962

F-187

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

44. Earnings (Loss) Per Share

(1) Basic earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021 are as follows:

Type		2019			2020		2021
		In won
Basic earnings (loss) per share	￦		(3,654	)		3,102		(8,279	)

(2) Diluted earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021 are as follows:

Type		2019			2020		2021
		In won
Diluted earnings (loss) per share	￦		(3,654	)		3,102		(8,279	)

(3) Basic earnings (loss) per share

Profit (loss) for the year and weighted average number of common shares used in the calculation of basic earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021 are as follows:

Type		2019			2020		2021
		In millions of won except number of shares
Profit (loss) attributable to owners of the controlling company	￦		(2,345,517	)		1,991,347		(5,315,055	)
Profit (loss) used in the calculation of total basic earnings (loss) per share			(2,345,517	)		1,991,347		(5,315,055	)
Weighted average number of common shares			641,964,077			641,964,077		641,964,077

(4) Diluted earnings (loss) per share

Diluted earnings (loss) per share is calculated by applying adjusted weighted average number of common shares under the assumption that all dilutive potential common shares are converted to common shares.

Profit (loss) used in the calculation of total diluted earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021 are as follows:

Type		2019			2020		2021
		In millions of won
Profit (loss) used in the calculation of total diluted earnings (loss) per share	￦		(2,345,517	)		1,991,347		(5,315,055	)

Weighted average number of common shares used in calculating diluted earnings (loss) per share are adjusted from weighted average number of common shares used in calculating basic earnings (loss) per share. Detailed information of the adjustment for the years ended December 31, 2019, 2020 and 2021 are as follows:

Type	2019		2020		2021
	In number of shares
Weighted average number of common shares		641,964,077		641,964,077		641,964,077
Diluted weighted average number of shares		641,964,077		641,964,077		641,964,077

(5) There are no potential dilutive instruments, thus diluted earnings (loss) per share are same as basic earnings (loss) per share for the years ended December 31, 2019, 2020 and 2021.

F-188

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management

(1) Capital risk management

The Company manages its capital to ensure that entities in the Company will be able to continue while maximizing the return to shareholder through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (offset by cash and cash equivalents) and equity. The Company’s overall capital risk management strategy remains consistent with the prior year.

Details of the Company’s capital management accounts as of December 31, 2020 and 2021 are as follows:

		2020			2021
		In millions of won
Total borrowings and debt securities	￦		69,724,581			80,529,513
Cash and cash equivalents			2,029,584			2,635,238
Net borrowings and debt securities			67,694,997			77,894,275
Total equity			70,666,846			65,311,849
Debt to equity ratio			95.79	%		119.27	%

(2) Financial risk management

The Company is exposed to various risks related to its financial instruments, such as, market risk (currency risk, interest rate risk, price risk), credit risk. The Company monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. The Company uses derivative financial instruments to hedge certain risk exposures. The Company’s overall financial risk management strategy remains consistent with the prior year.

(i) Credit risk

Credit risk is the risk of finance loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the sales activities, securities and derivatives. In addition, credit risk exposure may exist within financial guarantees and unused line of credits. As these financial institutions the Company makes transactions with are reputable financial institutions, the credit risk from them are considered limited. The Company decides credit transaction limits based on evaluation of client’s credit, through information obtained from the credit bureau and disclosed financial position at committing contracts.

① Credit risk management

Electricity sales, the main operations of the Company are the necessity for daily life and industrial activities of Korean nationals and have importance as one of the national key industries. The Company dominates the domestic market supplying electricity to customers. The Company is not exposed to significant credit risk as customers of the Company are diverse and are from various industries and areas. The Company uses publicly available information and its own internal data related to trade receivables, to rate its major customers and to measure the credit risk that a counter party will default on a contractual obligation. For the incurred but not recognized loss, it is measured considering overdue period.

② Impairment and allowance account

In accordance with the Company policies, individual material financial assets are assessed on a regular basis, trade receivables that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Value of the acquired collateral (including the confirmation of feasibility) and estimated collectable amounts are included in this assessment.

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

F-189

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

Book values of the financial assets represent the maximum exposed amounts of the credit risk. Details of the Company’s level of maximum exposure to credit risk as of December 31, 2020 and 2021 are as follows:

		2020		2021
		In millions of won
Cash and cash equivalents	￦		2,029,584		2,635,238
Financial assets at fair value through profit or loss(*1)			1,808,404		932,736
Derivative assets (trading)			110,764		443,027
Financial assets at fair value through other comprehensive income (debt securities)			0		491
Financial assets at amortized cost			14,422		25,273
Loans			790,162		909,071
Long-term/short-term financial instruments			2,062,103		1,728,508
Derivative assets (applying hedge accounting)			55,649		204,756
Trade and other receivables			9,780,039		10,029,276
Financial guarantee contracts(*2)			3,224,696		3,718,015

(*1) Equity investments held by the Company are excluded.

(*2) Maximum exposure associated with the financial guarantee contracts is the maximum amounts of the obligation.

As of the reporting date, there are no financial assets and non-financial assets that were acquired through the exercise of the right of collateralized assets and reinforcement of credit arrangement.

(ii) Market risk

Market risk is the risk that the Company’s fair values of the financial instruments or future cash flows are affected by the changes in the market. Market risk consists of interest rate risk,

foreign 

currency risk and other price risk.

F-190

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

(iii) Sensitivity analysis

Significant assets and liabilities with uncertainties in underlying assumptions

① Defined benefit obligation

A sensitivity analysis of defined benefit obligation assuming a 1% increase and decrease movements in the actuarial valuation assumptions as of December 31, 2020 and 2021 are as follows:

			2020						2021
Type	Accounts		1% Increase			1% Decrease			1% Increase			1% Decrease
			In millions of won
Future salary increases	Increase (decrease) in defined benefit obligation	￦		488,087			(425,708	)		466,832			(407,554	)
Discount rate	Increase (decrease) in defined benefit obligation			(443,527	)		524,856			(422,290	)		499,571

Changes of employee benefits assuming a 1% increase and decrease movements in discount rate on plan asset for the years ended December 31, 2020 and 2021 are ￦20,960 million and ￦25,649 million, respectively.

② Provisions

Changes in provisions due to movements in underlying assumptions as of December 31, 2020 and 2021 are as follows:

Type	Accounts	2020			2021
PCBs	Inflation rate		1.06	%		1.37	%
	Discount rate		1.83	%		1.88	%
Nuclear plants	Inflation rate		1.07	%		1.41	%
	Discount rate		2.20	%		2.20	%
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 December 31, 2020 and 2021 are as follows:

			2020						2021
Type	Accounts		0.1% Increase			0.1% Decrease			0.1% Increase			0.1% Decrease
			In millions of won
Discount rate	PCBs	￦		(292	)		293			(222	)		223
	Nuclear plants			(326,926	)		336,928			(369,540	)		381,026
	Spent fuel			(51,558	)		53,571			(51,430	)		53,438
Inflation rate	PCBs			295			(294	)		224			(224	)
	Nuclear plants			357,676			(347,450	)		403,420			(391,754	)
	Spent fuel			54,345			(52,375	)		54,210			(52,245	)

F-191

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

Management judgment effected by uncertainties in underlying assumptions

① Foreign currency risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities as of December 31, 2020 and 2021 are as follows:

	Assets				Liabilities
Type	2020		2021		2020		2021
	In thousands of foreign currencies
AED		39,678		6,481		31,594		31,637
AUD		133		3,733		707,538		926,960
BDT		93,442		50,145		0		577
BWP		890		939		0		0
EGP		0		0		948		595
CAD		247		582		1,840		2,266
CHF		0		0		500,406		500,230
CZK		0		0		2,033		386
EUR		310		1,809		121,069		42,981
GBP		0		0		43		0
HKD		0		0		1,651,839		1,651,665
IDR		342,496		768,731		555,241		995,510
INR		1,231,895		1,715,900		155,134		342,833
JOD		1,673		1,852		0		118
JPY		825,269		697,747		484,585		153,383
KZT		1,510		1,510		0		0
MGA		5,645,349		4,262,857		0		475,807
MMK		11,032		210,335		0		0
MYR		0		1,964		0		0
PHP		191,122		164,167		104,161		104,245
PKR		371,328		200,844		12,222		74,423
SAR		2,178		2,615		0		0
SEK		0		0		449,824		449,167
USD		1,445,522		1,381,441		12,234,563		12,023,085
UYU		78,265		90,930		1,585		3,097
VND		672,563		952,135		0		262,372
ZAR		303		31,971		0		0

A sensitivity analysis on the Company’s income for the period assuming a 10% increase and decrease in currency exchange rates as of December 31, 2020 and 2021 are as follows:

		2020					2021
Type		10% Increase			10% Decrease		10% Increase			10% Decrease
		In millions of won
Increase (decrease) of profit before income tax	￦		(1,336,821	)		1,336,821		(1,439,185	)		1,439,185
Increase (decrease) of equity(*)			(1,336,821	)		1,336,821		(1,439,185	)		1,439,185

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

The sensitivity analysis above is conducted for monetary assets and liabilities denominated in foreign currencies other than functional currency, without consideration of hedge effect of related derivatives, as of December 31, 2020 and 2021.

F-192

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

To manage its foreign currency risk related to foreign currency denominated receivables and payables, the Company has a policy to enter into currency forward agreements. In addition, to manage its foreign currency risk related to foreign currency denominated expected sales transactions and purchase transactions, the Company enters into currency forward agreements.

There is an economic relationship between the hedged item and the hedging instrument as the terms of cross-currency swap agreement is consistent with the terms of expected transaction (repayment of foreign debt securities and others). The hedging ratio is 1:1 as the risk of cross-currency swap agreement matches the hedged instrument. As of December 31, 2021, the hedging instrument (cross-currency swap) hedges the risk of the hedged item (repayment of foreign debt securities and others).

② Interest rate risk

The Company is exposed to interest rate risk due to its borrowing with floating interest rates. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

The Company’s borrowings and debt securities with floating interest rates as of December 31, 2020 and 2021 are as follows:

Type		2020		2021
		In millions of won
Short-term borrowings	￦		171,518		391,897
Long-term borrowings			2,191,322		2,405,244
Debt securities			250,968		257,667
	￦		2,613,808		3,054,808

A sensitivity analysis on the Company’s long-term borrowings and debt securities assuming a 1% increase and decrease in interest rates, without consideration of hedge effect of related derivatives for the years ended December 31, 2020 and 2021 are as follows:

		2020					2021
Type		1% Increase			1% Decrease		1% Increase			1% Decrease
		In millions of won
Increase (decrease) of profit before income tax	￦		(26,138	)		26,138		(30,548	)		30,548
Increase (decrease) of shareholder’s equity(*)			(26,138	)		26,138		(30,548	)		30,548

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

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. The above analysis measures the interest rate risk before reflecting the hedge effect by related derivatives.

F-193

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

③ Electricity rates risk

Following the approval of the Ministry of Trade, Industry and Energy (MOTIE) on December 17, 2020, the Company has adopted a new pricing system, “the cost pass-through tariff system”, beginning January 1, 2021. Under the cost pass-through system, the electricity rates are not predetermined at fixed rates but change upon approval by the MOTIE under Electric Utility Act of the Republic of Korea.

The Company is exposed to electricity rates risk due to changes in government regulations and policies on national power supply schemes and electricity billing rates, in consideration of the national economy.

A sensitivity analysis on the Company’s income for the period assuming a 1% increase and decrease in price of electricity for the years ended December 31, 2020 and 2021 is as follows:

		2020					2021
Type		1% Increase		1% Decrease			1% Increase		1% Decrease
		In millions of won
Increase (decrease) of profit before income tax	￦		557,310		(557,310	)		572,102		(572,102	)
Increase (decrease) of shareholder’s equity(*)			557,310		(557,310	)		572,102		(572,102	)

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

F-194

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

(iv) Liquidity risk

The Company has established an appropriate liquidity risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by continuously monitoring forecasted and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

In addition, the Company has established credit lines on its trade financing and bank overdrafts, and through payment guarantees it has received, it maintains an adequate credit (borrowing) line. In addition, the Company has the ability to utilize excess cash or long-term borrowings for major construction investments.

The expected maturities for non-derivative financial liabilities as of December 31, 2020 and 2021 in detail are as follows:

		2020
Type		Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
		In millions of won
Borrowings and debt securities	￦		12,413,346		10,919,041		24,778,020		34,215,888		82,326,295
Finance lease liabilities			614,442		569,161		1,564,377		2,461,557		5,209,537
Trade and other payables			5,679,856		373,907		894,903		1,167,171		8,115,837
Financial guarantee contracts(*)			926,244		348,860		26,230		1,923,362		3,224,696
	￦		19,633,888		12,210,969		27,263,530		39,767,978		98,876,365

		2021
Type		Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
		In millions of won
Borrowings and debt securities	￦		15,833,589		11,229,657		28,663,693		36,223,543		91,950,482
Lease liabilities			620,121		636,724		1,521,421		2,150,722		4,928,988
Trade and other payables			7,569,869		777,017		725,231		667,304		9,739,421
Financial guarantee contracts(*)			435,729		0		3,105,599		176,687		3,718,015
	￦		24,459,308		12,643,398		34,015,944		39,218,256		110,336,906

(*) This represents the total guarantee amounts associated with the financial guarantee contracts. Financial guarantee liabilities which are recognized as of December 31, 2020 and 2021 are ￦66,354 million and ￦80,841 million, respectively.

F-195

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

The following table shows the details of maturities of non-derivative financial liabilities as of December 31, 2020 and 2021. This table, based on the undiscounted cash flows of the non-derivative financial liabilities including estimated interests, has been prepared based on the respective liabilities’ earliest maturity date.

The expected maturities for non-derivative financial assets as of December 31, 2020 and 2021 in detail are as follows:

		2020
Type		Less than 1 year		1~5 Years		More than 5 years		Other (*)		Total
		In millions of won
Cash and cash equivalents	￦		2,029,584		0		0		0		2,029,584
Financial assets at fair value through other comprehensive income			0		0		0		358,559		358,559
Financial assets at amortized cost			13,149		1,265		8		0		14,422
Loans			78,805		385,571		325,212		31,506		821,094
Long-term/short-term financial instruments			1,483,482		252,349		386		325,886		2,062,103
Financial assets at fair value through profit or loss			1,196,101		0		2,690		682,591		1,881,382
Trade and other receivables			7,920,005		1,160,400		704,494		0		9,784,899
	￦		12,721,126		1,799,585		1,032,790		1,398,542		16,952,043

		2021
Type		Less than 1 year		1~5 Years		More than 5 years		Other (*)		Total
		In millions of won
Cash and cash equivalents	￦		2,635,238		0		0		0		2,635,238
Financial assets at fair value through other comprehensive income			0		0		0		435,107		435,107
Financial assets at amortized cost			15,422		9,840		11		0		25,273
Loans			88,396		443,146		407,584		0		939,126
Long-term/short-term financial instruments			1,278,014		171,636		286		278,572		1,728,508
Financial assets at fair value through profit or loss			360,833		346		3,130		668,555		1,032,864
Trade and other receivables			8,123,455		1,233,703		679,048		0		10,036,206
	￦		12,501,358		1,858,671		1,090,059		1,382,234		16,832,322

(*) The maturities cannot be presently determined.

F-196

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(2) Financial risk management, continued

Derivative liabilities classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2020 and 2021 are as follows:

		2020
Type		Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
		In millions of won
Net settlement
—Trading	￦		0			0			0			0			0
Gross settlement
—Trading			(12,777	)		(22,827	)		(118,704	)		(4,380	)		(158,688	)
—Hedging			(37,858	)		(39,528	)		(75,450	)		(55,208	)		(208,044	)
	￦		(50,635	)		(62,355	)		(194,154	)		(59,588	)		(366,732	)
		2021
Type		Less than 1 year			1~2 Years			2~5 Years			More than 5 years			Total
		In millions of won
Net settlement
—Trading	￦		0			0			0			0			0
Gross settlement
—Trading			(6,628	)		(4,954	)		(33,635	)		(2,291	)		(47,508	)
—Hedging			(2,555	)		(638	)		(1,914	)		(23,704	)		(28,811	)
	￦		(9,183	)		(5,592	)		(35,549	)		(25,995	)		(76,319	)

Derivative assets classified by maturity periods which from reporting date to maturity dates as per the contracts as of December 31, 2020 and 2021 are as follows:

		2020
Type		Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
		In millions of won
Net settlement
—Trading	￦		0		0		0		0		0
Gross settlement
—Trading			18,332		1,529		45,237		52,163		117,261
—Hedging			11,191		0		41,206		3,252		55,649
	￦		29,523		1,529		86,443		55,415		172,910
		2021
Type		Less than 1 year		1~2 Years		2~5 Years		More than 5 years		Total
		In millions of won
Net settlement
—Trading	￦		0		0		0		0		0
Gross settlement
—Trading			93,554		54,617		202,663		105,856		456,690
—Hedging			33,564		65,198		102,760		3,235		204,757
	￦		127,118		119,815		305,423		109,091		661,447

F-197

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(3) Fair value risk

The fair value of the Company’s actively-traded financial instruments (i.e., FVTPL, FVOCI, etc.) is based on the traded market-price as of the reporting period end. The fair value of the Company’s financial assets is the amount which the asset could be exchanged for or the amount a liability could be settled for.

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the Company uses that technique.

For trade receivables and payables, the Company considers the carrying value net of impairment as fair value. While for disclosure purposes, the fair value of financial liabilities is estimated by discounting the future contractual cash flows based on current market interest rates applied to similar financial instruments.

(i) Fair value and book value of financial assets and liabilities as of December 31, 2020 and 2021 are as follows:

		2020				2021
Type		Book value		Fair value		Book value		Fair value
		In millions of won
Assets recognized at fair value
Financial assets at fair value through other comprehensive income	￦		358,559		358,559		435,107		435,107
Derivative assets (trading)			110,764		110,764		443,027		443,027
Derivative assets (applying hedge accounting)			55,649		55,649		204,756		204,756
Financial assets at fair value through profit or loss			1,881,382		1,881,382		1,032,864		1,032,864
	￦		2,406,354		2,406,354		2,115,754		2,115,754
Assets carried at amortized cost
Financial assets at amortized cost	￦		14,422		14,422		25,273		25,273
Loans and receivables			790,162		790,162		909,071		909,071
Trade and other receivables			9,780,039		9,780,039		10,029,276		10,029,276
Long-term financial instruments			578,621		578,621		450,494		450,494
Short-term financial instruments			1,483,482		1,483,482		1,278,014		1,278,014
Cash and cash equivalents			2,029,584		2,029,584		2,635,238		2,635,238
	￦		14,676,310		14,676,310		15,327,366		15,327,366
Liabilities recognized at fair value
Derivative liabilities (trading)	￦		157,926		157,926		56,256		56,256
Derivative liabilities (applying hedge accounting)			207,193		207,193		21,775		21,775
	￦		365,119		365,119		78,031		78,031
Liabilities carried at amortized cost
Secured borrowings	￦		63,614		63,614		176,358		176,358
Unsecured bond			64,607,401		68,839,316		73,881,671		69,803,043
Lease liabilities			4,621,096		4,621,096		4,410,503		4,410,503
Unsecured borrowings			4,808,206		5,513,242		6,471,484		5,938,613
Trade and other payables(*)			8,115,837		8,115,837		9,739,421		9,739,421
Bank overdraft			245,360		245,360		0		0
	￦		82,461,514		87,398,465		94,679,437		90,067,938

(*) Excludes lease liabilities.

F-198

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(3) Fair value risk, continued

(ii) Interest rates used for determining fair value

The interest rates used to discount estimated cash flows, when applicable, are based on the government yield curve at the reporting date plus an adequate credit spread.

The discount

rates

used for calculating fair value as of December 31, 2020 and 2021 are as follows:

Type	2020		2021
Derivatives		(-) 0.73% ~ 3.08%		(-) 0.63% ~ 3.88%
Borrowings and debt securities		(-) 0.53% ~ 4.38%		(-) 0.30% ~ 4.38%
Finance lease		0.57% ~ 16.60%		0.00% ~ 16.83%

(iii) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, classified as Level 1, 2 or 3, based on the degree to which the fair value is observable.

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3: Inputs that are not based on observable market data.

Fair values of financial instruments by hierarchy level as of December 31, 2020 and 2021 are as follows:

		2020
Type		Level 1		Level 2		Level 3		Total
		In millions of won
Financial assets at fair value
Financial assets at fair value through other comprehensive income	￦		194,670		0		163,889		358,559
Derivative assets			0		166,413		0		166,413
Financial assets at fair value through profit or loss			0		1,875,690		5,692		1,881,382
	￦		194,670		2,042,103		169,581		2,406,354
Financial liabilities at fair value
Derivative liabilities	￦		0		365,119		0		365,119

		2021
Type		Level 1		Level 2		Level 3		Total
		In millions of won
Financial assets at fair value
Financial assets at fair value through other comprehensive income	￦		273,826		0		161,281		435,107
Derivative assets			0		647,783		0		647,783
Financial assets at fair value through profit or loss			0		1,027,067		5,797		1,032,864
	￦		273,826		1,674,850		167,078		2,115,754
Financial liabilities at fair value
Derivative liabilities	￦		0		78,031		0		78,031

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 accounted for using the valuation results of external valuation services in which weighted average borrowing rates of interest of evaluated companies are used as the discount rates. The fair value of derivatives is measured using the discounted cash flow (DCM) model reflecting key input factors such as credit risks, interest rates and exchange rates.

F-199

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

45. Risk Management, Continued

(3) Fair value risk, continued

Changes of financial assets and liabilities which are classified as level 3 for the years ended December 31, 2020 and 2021 are as follows:

		2020
		Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation and others			Ending balance
		In millions of won
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	￦		5,156		359		0		623			(446	)		0			5,692
Financial assets at fair value through other comprehensive income
Unlisted securities			177,968		2,900		0		(23,128	)		(1	)		6,150			163,889
		2021
		Beginning balance		Acquisitions		Reclassified category		Valuation			Disposal			Foreign currency translation and others			Ending balance
		In millions of won
Financial assets at fair value
Financial assets at fair value through profit or loss Cooperative	￦		5,692		0		0		105			0			0			5,797
Financial assets at fair value through other comprehensive income
Unlisted securities			163,889		8,929		0		(12,335	)		(13	)		320			160,790
Debt securities			0		500		0		0			0			(9	)		491

F-200

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

46. Service Concession Arrangements

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

(i) Significant terms and concession period of the arrangement

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

(ii) Rights and classification of the arrangement

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

(iii) The Company’s expected future collections of service concession arrangements as of December 31, 2021 are as follows:

Type		Amounts
		In millions of won
Less than 1 year	￦		51,596

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

(i) Significant terms and concession period of the arrangement

The Company has entered into a contract with PT. Perusahaan Listrik Negara (the “PT PLN”) whereby the Company provides electricity generated and charge tariff rates designed to recover capital cost, fixed O&M cost, water usage cost, variable O&M cost and special facilities cost during the concession period after building, rehabilitating, and operating the power plant for approximately 30 years (2018~2048) subsequent to the completion of plant construction.

(ii) Rights and classification of the arrangement

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

(iii) The Company’s expected future collections of service concession arrangements as of December 31, 2021 are as follows:

Type		Amounts
		In millions of won
Less than 1 year	￦		29,576
1 ~ 2 years			29,610
2 ~ 3 years			29,747
Over 3 years			542,683
	￦		631,616

F-201

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties

(1) Related parties of the Company as of December 31, 2021 are as follows:

Type	Related party
Parent	Republic of Korea government
Subsidiaries (153 subsidiaries)	Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd., Korea East-West Power Co., Ltd., KEPCO Engineering & Construction Company, Inc., KEPCO Plant Service & Engineering Co., Ltd., KEPCO Nuclear Fuel Co., Ltd., KEPCO KDN Co., Ltd., Gyeonggi Green Energy Co., Ltd., Korea Offshore Wind Power Co., Ltd., KOSEP Material Co., Ltd., KEPCO International HongKong Ltd., KEPCO International Philippines Inc., KEPCO Philippines Corporation, KEPCO Ilijan Corporation, KEPCO Gansu International Ltd., KEPCO Philippines Holdings Inc., KEPCO Lebanon SARL, KEPCO Neimenggu International Ltd., KEPCO Australia Pty., Ltd., KEPCO Shanxi International Ltd., KOMIPO Global Pte Ltd., KOSEP Australia Pty., Ltd., KOMIPO Australia Pty., Ltd., KOWEPO Australia Pty., Ltd., KOSPO Australia Pty., Ltd., KEPCO Netherlands B.V., KEPCO Middle East Holding Company, Qatrana Electric Power Company, KOWEPO International Corporation, KOSPO Jordan LLC, Korea Waterbury Uranium Limited Partnership, PT. Cirebon Power Service, EWP America Inc., KHNP Canada Energy Ltd., KEPCO Bylong Australia Pty., Ltd., KNF Canada Energy Limited, KEPCO Holdings de Mexico, KST Electric Power Company, S.A.P.I. de C.V., KEPCO Energy Service Company, KEPCO Netherlands S3 B.V., PT. KOMIPO Pembangkitan Jawa Bali, EWP Barbados 1 SRL, PT. Tanggamus Electric Power, KOMIPO America Inc., PT. EWP Indonesia, KEPCO Netherlands J3 B.V., Global One Pioneer B.V., Global Energy Pioneer B.V., Mira Power Limited, KEPCO KPS Philippines Corp., KOSPO Chile SpA, PT. KOWEPO Sumsel Operation And Maintenance Services, Commerce and Industry Energy Co., Ltd., Gyeongju Wind Power Co., Ltd., California Power Holdings, LLC, EWP Renewable Corporation, EWPRC Biomass Holdings, LLC, Hee mang sunlight Power Co., Ltd., Fujeij Wind Power Company, KOSPO Youngnam Power Co., Ltd., Chitose Solar Power Plant LLC., KEPCO Solar Co., Ltd., KEPCO Energy Solution Co., Ltd., KOSPO Power Services Ltda., KOEN Bylong Pty., Ltd., KOWEPO Bylong Pty., Ltd., KOSPO Bylong Pty., Ltd., EWP Bylong Pty., Ltd., KOWEPO Lao International, KOMIPO Bylong Pty., Ltd., Energy New Industry Specialized Investment Private Investment Trust., KEPCO US Inc., KEPCO Alamosa LLC, KEPCO Solar of Alamosa LLC, KEPCO Mangilao Holdings LLC, Mangilao Investment LLC, KEPCO Mangilao Solar, LLC, Jeju Hanlim Offshore Wind Co., Ltd., PT. Siborpa Eco Power, e-New Industry LB Fund 1, Songhyun e-New Industry Fund, BSK E-New Industry Fund VII, PT. Korea Energy Indonesia, KOLAT SpA, KEPCO California, LLC, KEPCO Mojave Holdings, LLC, Incheon Fuel Cell Co., Ltd., KOEN Service Co., Ltd., KOMIPO Service Co., Ltd., KOWEPO Service Co., Ltd., KOSPO Service Co., Ltd., EWP Service Co., Ltd., PT. KOMIPO Energy Indonesia, KNF Partners Co., Ltd., KOSPO USA Inc., Nambu USA LLC, Tamra Offshore Wind Power Co., Ltd., KEPCO MCS Co., Ltd., KEPCO FMS Co., Ltd., Firstkeepers Co., Ltd., Secutec Co., Ltd., SE Green Energy Co., Ltd., 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, TS Energy No. 25 Co., Ltd., KPS Partners Co., Ltd., KEPCO E&C Service Co., Ltd., Moha solar Co., Ltd., KHNP USA LLC, KOMIPO Vanphong Power Service LLC, Ogiri Solar Power Co., Ltd., BSK E-New Industry Fund X, Energy Innovation Fund I, KHNP Chile SpA, Yeong Yang Apollon Photovoltaic Co., Ltd., Yeong Yang Corporation Co., Ltd., SolarVader Co., Ltd., Yeong Yang Innovation Co., Ltd., Yeong Yang Horus Photovoltaic Co., Ltd., Yeong Yang Solar Management Co., Ltd., LSG Hydro Power Limited, KOEN Bio Co., Ltd., KOMIPO Energy Solution America, LLC, Elara Investment Holdings, LLC, Elara Equity Holdings, LLC, Elara Class B Holdings, LLC, Elara Class B Member, LLC, Elara Development Holdings, LLC, Elara Development, LLC, Elara Energy Holdings, LLC, Elara Energy Project, LLC, KOMIPO Iberian Solar Group, S.L.U., KOWEPO Europe B.V., CVS Equity Holdings, LLC, CVS Class B Holdings, LLC, CVS Development Holdings, LLC, CVS Development, LLC, CVS Class B Member, LLC, CVS Energy Holdings, LLC, Concho Valley Energy, LLC, Concho Valley Solar, LLC, Jeongam Wind Power Co., Ltd., Yeongdeok Sunrise Wind Power Co., Ltd., KHNP Spain, S.L.
Associates (90 associates)	Dongducheon Dream Power Co., Ltd., Korea Gas Corporation, Daegu Photovoltaic Co., Ltd., Haeng Bok Do Si Photovoltaic Power Co., Ltd., Korea Electric Power Industrial Development Co., Ltd., Goseong Green Power Co., Ltd., Gangneung Eco Power Co., Ltd., Shin Pyeongtaek Power Co., Ltd., Noeul Green Energy Co., Ltd., YTN Co., Ltd., Samcheok Eco Materials Co., Ltd., Gangwon Wind Power Co., Ltd., Gwangyang Green Energy Co., Ltd., Hyundai Green Power Co., Ltd., Korea Power Exchange, Taebaek Wind Power Co., Ltd., Taebaek Guinemi Wind Power Co., Ltd., Pyeongchang Wind Power Co., Ltd., Daeryun Power Co., Ltd., Changjuk Wind Power Co., Ltd., KNH Solar Co., Ltd., S-Power Co., Ltd., SPC Power Corporation, Gemeng International Energy Co., Ltd., PT. Cirebon Electric Power, KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd., PT Wampu Electric Power, PT. Bayan Resources TBK, Nepal Water & Energy Development Company Private Limited, Pioneer Gas Power Limited, Eurasia Energy Holdings, Xe-Pian Xe-Namnoy Power Co., Ltd., PT. Mutiara Jawa, Jinbhuvish Power Generation Pvt. Ltd., Daejung Offshore Wind Power Co., Ltd., GS Donghae Electric Power Co., Ltd., Busan Green Energy Co., Ltd., Gunsan Bio Energy Co., Ltd., Korea Electric Vehicle Charging Service, Hansuwon KNP Co., Ltd. (formerly, Korea Nuclear Partners Co., Ltd.), Korea Electric Power Corporation Fund, Energy Infra Asset Management Co., Ltd., Daegu clean Energy Co., Ltd., Yaksu ESS Co., Ltd., PND Solar Co., Ltd., Hyundai Eco Energy Co., Ltd., YeongGwang Yaksu Wind Electric Co., Ltd., Green Energy Electricity Generation Co., Ltd., Korea Energy Solutions Co., Ltd., ITR Co., Ltd., Structure test network Co., Ltd., Namjeongsusang Solar Power Operation Co., Ltd., Indeck Niles Development, LLC, Indeck Niles Asset Management, LLC, Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1, Suwon New Power Co., Ltd., KPGE Inc., Gwangbaek Solar Power Investment Co., Ltd., Go deok Clean Energy Co., Ltd., SureDataLab Co., Ltd., SEP Co., Ltd., Hankook Electric Power Information Co., Ltd., Tronix Co., Ltd., O2&B Global Co., Ltd., Muan Sunshine Solar Power Plant Co., Ltd., Bigeum Resident Photovoltaic Power Co., Ltd., Goesan Solar park Co., Ltd., Saemangeum Heemang Photovoltaic Co., Ltd., Bitgoel Eco Energy Co., Ltd., Jeju Gimnyeong Wind Power Co., Ltd., Seoroseoro Sunny Power Plant Co., Ltd., Muan Solar Park Co., Ltd., YuDang Solar Co., Ltd., Anjwa Smart Farm & Solar City Co., Ltd., Daewon Green Energy Co., Ltd., G.GURU Co., Ltd., UD4M Co., Ltd., Dongbu Highway Solar Co., Ltd., Seobu Highway Solar Co., Ltd., Korea Energy Data Co., Ltd., Gangneung Sacheon Fuel Cell Co., Ltd., Kosture Co., Ltd., Digital Innovation Growth Fund, Taebaek Gadeoksan Wind Power Co., Ltd., Chuncheon Green Energy Co., Ltd., Yeomsubong Wind Power Co., Ltd., Yeongyang Wind Power Corporation II, Haeparang Energy Co., Ltd., Saemangeum Sebit Power Plant Co., Ltd.

F-202

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(1) Related parties of the Company as of December 31, 2021 are as follows, continued:

Type	Related party
Joint ventures (96 joint ventures)	Daegu Green Power Co., Ltd., KEPCO SPC Power Corporation, KAPES, Inc., Honam Wind Power Co., Ltd., Korea Power Engineering Service Co., Ltd., Seokmun Energy Co., Ltd., Incheon New Power Co., Ltd., Chun-cheon Energy Co., Ltd., Yeonggwangbaeksu Wind Power Co., Ltd., KW Nuclear Components Co., Ltd., KEPCO-Uhde Inc., Busan Shinho Solar Power Co., Ltd., Global Trade Of Power System Co., Ltd., Expressway Solar-light Power Generation Co., Ltd., Gansu Datang Yumen Wind Power Co., Ltd., Datang Chifeng Renewable Power Co., Ltd., Rabigh Electricity Company, Rabigh Operation & Maintenance Company Limited, Datang KEPCO Chaoyang Renewable Power Co., Ltd., Shuweihat Asia Power Investment B.V., Shuweihat Asia Operation & Maintenance Company, Waterbury Lake Uranium L.P., ASM-BG Investicii AD, RES Technology AD, Jamaica Public Service Company Limited, KV Holdings, Inc., Amman Asia Electric Power Company, Kelar S.A., PT. Tanjung Power Indonesia, Nghi Son 2 Power LLC, Daehan Wind Power PSC, Momentum, Barakah One Company, Nawah Energy Company, Yeonggwang Wind Power Co., Ltd., Chester Solar IV SpA, Chester Solar V SpA, Diego de Almagro Solar SpA, South Jamaica Power Company Limited, Daesan Green Energy Co., Ltd., RE Holiday Holdings LLC, RE Pioneer Holdings LLC, RE Barren Ridge 1 Holdings LLC, RE Astoria 2 LandCo LLC, RE Barren Ridge LandCo LLC, Laurel SpA, KIAMCO KOWEPO Bannerton Hold Co Pty Ltd, Chile Solar JV SpA, Cheong-Song Noraesan Wind Power Co., Ltd., Chester Solar I SpA, Solar Philippines Calatagan Corporation, Saemangeum Solar Power Co., Ltd., Chungsongmeon BongSan wind power Co., Ltd., Jaeun Resident Wind Power Plant Co., Ltd., DE Energia SpA, Dangjin Eco Power Co., Ltd., Haemodum Solar Co., Ltd., Yangyang Wind Power Co., Ltd., Horus Solar, S.A. De C.V., Recursos Solares PV De Mexico II, S.A. De C.V., S.A. De C.V., Sunmex Renovables, S.A. De C.V., Stavro Holding II AB, Solaseado Solar Power Co., Ltd., Yeongam Solar Power Co., Ltd., Samsu Wind Power Co., Ltd., Pulau Indah Power Plant Sdn. Bhd., Sam-Yang Photovoltaic Power Co., Ltd., NH-Amundi Global Infrastructure Investment Private Investment Trust 21, Shin-han BNPP Private Investment Trust for East-West Sunlight Dream, PT Barito Wahana Tenaga, Cheongna Energy Co., Ltd., Dayone Energy Co., Ltd., OneEnergy Asia Limited, KAS Investment I LLC, KAS Investment II LLC, Energyco Co., Ltd. (formerly, Energyco LLC), CAES, LLC, Hapcheon Floating Photovoltaic Power Plant Inc., Busan Industrial Solar Power Co., Ltd., Bitsolar Energy Co., Ltd., Naepo Green Energy Co., Ltd., Pulau Indah O&M Sdn. Bhd., Guadalupe Solar SpA, Omisan Wind Power Co., Ltd., Foresight Iberian Solar Group Holding, S.L., Yeongwol Eco Wind Co., Ltd., Gurae Resident Power Co., Ltd., Cheongju Eco Park Co., Ltd., Prime Swedish Holding AB, Enel X Midland Photovoltaic, LLC, Geumsungsan Wind Power Co., Ltd., KEPCO KPS Carabao Corp., Goheung New Energy Co., Ltd., Gunsan Land Solar Co., Ltd., CapMan Lynx SCA, SICAR, International Offshore Power Transmission Holding Company Limited
Other	Korea Development Bank

F-203

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

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

(3) Related party transactions for the years ended December 31, 2019, 2020 and 2021 are as follows:

<Sales and Others>

			Sales and others
Company name	Transaction type		2019		2020		2021
			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Electricity sales	￦		7,071		7,757		19,923
Korea Gas Corporation	Electricity sales			116,484		97,685		96,362
Daejung Offshore Wind Power Co., Ltd.	Electricity sales			1		32		46
Daegu Photovoltaic Co., Ltd.	Electricity sales			327		325		207
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Electricity sales			2		2		2
Korea Electric Power Industrial Development Co., Ltd.	Service			11,085		10,833		11,208
Goseong Green Power Co., Ltd.	Electricity sales			19,245		47,701		514,470
Gangneung Eco Power Co., Ltd.	Service			7,446		10,178		14,200
Shin Pyeongtaek Power Co., Ltd.	Electricity sales			21,218		20,791		23,501
Noeul Green Energy Co., Ltd.	Electricity sales			30		30		30
Samcheok Eco Materials Co., Ltd.	Electricity sales			627		700		620
YTN Co., Ltd.	Electricity sales			2,257		1,805		1,922
Busan Green Energy Co., Ltd.	Electricity sales			18		34		49
Gunsan Bio Energy Co., Ltd.	Electricity sales			4,755		102		20
Korea Electric Vehicle Charging Service	Electricity sales			1,029		1,956		3,059
Energy Infra Asset Management Co., Ltd.	Electricity sales			0		0		4,629
Gangwon Wind Power Co., Ltd.	Electricity sales			2,433		2,109		1,865
Gwangyang Green Energy Co., Ltd.	Electricity sales			122		23		486
Bigeum Resident Photovoltaic Power Co., Ltd.	Electricity sales			0		85		755
Hyundai Green Power Co., Ltd.	Electricity sales and design service			13,106		17,257		11,934
Korea Power Exchange	Service			7,670		25,919		39,796
Taebaek Wind Power Co., Ltd.	Service			991		226		44
Taebaek Guinemi Wind Power Co., Ltd.	Electricity sales			77		37		26
Pyeongchang Wind Power Co., Ltd.	Electricity sales			1,189		2,064		1,180
Daeryun Power Co., Ltd.	Electricity sales			1,879		1,947		1,944
Changjuk Wind Power Co., Ltd.	Electricity sales			927		2,067		463
GS Donghae Electric Power Co., Ltd.	Electricity sales			15,792		31,557		21,127
KNH Solar Co., Ltd.	Electricity sales			17		16		14
S-Power Co., Ltd.	Service			6,535		6,682		5,229
PND Solar Co., Ltd.	Electricity sales			407		409		416
Hyundai Eco Energy Co., Ltd.	Electricity sales			117		167		187
YeongGwang Yaksu Wind Electric Co., Ltd.	Electricity sales			81		77		78
Taebaek Gadeoksan Wind Power Co., Ltd.(*2)	Electricity sales			0		0		295
Korea Energy Solutions Co., Ltd.	Electricity sales			52		7		2
ITR Co., Ltd.	Service			0		0		3
Structure test network Co., Ltd.	Service			0		0		5
Green Energy Electricity Generation Co., Ltd.	Electricity sales			0		14		0
Namjeongsusang Solar Power Operation Co., Ltd.	Electricity sales			0		14		22
Hanwha Corporation-linked Sunlight Power Special Private Equity Investment Trust No. 1	Service			0		291		399
Bitgoel Eco Energy Co., Ltd.	Electricity sales			0		0		282
Muan Solar Park Co., Ltd.	Electricity sales			0		57		232
Anjwa Smart Farm & Solar City Co., Ltd.	Electricity sales			0		0		624
Daewon Green Energy Co., Ltd.	Electricity sales			0		0		155
Saemangeum Heemang Photovoltaic Co., Ltd.	Electricity sales			0		0		13
UD4M Co., Ltd.	Electricity sales			0		0		4
Dongbu Highway Solar Co., Ltd.	Electricity sales			0		0		5
Seobu Highway Solar Co., Ltd.	Electricity sales			0		0		8
SureDataLab Co., Ltd.	Electricity sales			0		0		1
Suwon New Power Co., Ltd.	Electricity sales			5,606		2,974		1,820
Hankook Electric Power Information Co., Ltd.	Electricity sales			0		0		1
Kosture Co., Ltd.	Electricity sales			0		0		1
Muan Sunshine Solar Power Plant Co., Ltd.	Electricity sales			0		30		52
9 Associates (Overseas)	Electricity sales and others			98,450		66,755		125,723

F-204

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(3) Related party transactions for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

			Sales and others
Company name	Transaction type		2019		2020		2021
			In millions of won
<Joint ventures>
Naepo Green Energy Co., Ltd.	Electricity sales	￦		154		217		467
Cheongna Energy Co., Ltd.	Service			9,922		13,791		16,469
Dayone Energy Co., Ltd.(formerly, Hyundai Energy Co., Ltd.)	Service			3,437		4,816		8,159
Daegu Green Power Co., Ltd.	Electricity sales			1,151		1,285		1,053
KAPES, Inc.	Commission			504		476		413
Honam Wind Power Co., Ltd.	Electricity sales			657		502		71
Jeongam Wind Power Co., Ltd. (*1)	Electricity sales and Service			1,198		1,213		588
Korea Power Engineering Service Co., Ltd.	Service			348		203		339
Seokmun Energy Co., Ltd.	Service			1,495		1,932		1,701
Incheon New Power Co., Ltd.	Construction revenue			354		14		14
Chun-cheon Energy Co., Ltd.	Electricity sales			2,397		2,657		2,329
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity sales			1,744		1,788		1,836
Yeonggwang Wind Power Co., Ltd.	Electricity sales			705		793		818
Sam-Yang Photovoltaic Power Co., Ltd.	Electricity sales			0		33		1,920
NH-Amundi Global Infrastructure Investment Private Investment Trust 21	Service			0		1,388		1,727
KW Nuclear Components Co., Ltd.	Service			721		1,639		2,598
KEPCO-Uhde Inc.	Electricity sales			15		8		10
Busan Shinho Solar Power Co., Ltd.	Electricity sales			452		353		376
Daesan Green Energy Co., Ltd.	Electricity sales			39		703		523
Taebaek Gadeoksan Wind Power Co., Ltd. (*2)	Electricity sales			0		3		2
Cheong-Song Noraesan Wind Power Co., Ltd.	Electricity sales			6		29		30
Chungsongmeon BongSan wind power Co., Ltd.	Electricity sales			0		0		1
Saemangeum Solar Power Co., Ltd.	Service			2,230		2,846		1,141
Jaeun Resident Wind Power Plant Co., Ltd.	Electricity sales			105		0		0
Dangjin Eco Power co., Ltd.	Electricity sales			4		33		32
Energyco Co., Ltd. (formerly, Energyco LLC)	Electricity sales			0		0		1
Busan Industrial Solar Power Co., Ltd.	Electricity sales			0		0		9
Bitsolar Energy Co., Ltd.	Electricity sales			0		42		296
Omisan Wind Power Co., Ltd.	Electricity sales			0		0		1
Haemodum Solar Co., Ltd.	Electricity sales			0		4		6
Yeongam Solar Power Co., Ltd.	Electricity sales			0		165		339
Solaseado Solar Power Co., Ltd.	Electricity sales			0		66		2,890
35 Joint ventures (Overseas)	Electricity sales and others			1,275,279		831,596		773,289
<Others>
Korea Development Bank	Electricity sales			3,948		4,248		4,177
	Interest income			2,091		3,461		756

F-205

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(3) Related party transactions for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

<Purchase and Others>

			Purchase and others
Company name	Transaction type		2019		2020		2021
			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Electricity purchase	￦		689,510		552,692		750,148
Korea Gas Corporation	Purchase of power generation fuel			4,049,486		3,270,972		5,646,713
Daegu Photovoltaic Co., Ltd.	REC purchase			3,626		3,313		3,532
Haeng Bok Do Si Photovoltaic Power Co., Ltd.	REC purchase			450		370		393
Korea Electric Power Industrial Development Co., Ltd.	Electricity metering servicefee			245,057		212,366		241,925
Goseong Green Power Co., Ltd.	Electricity purchase			32		0		987,540
Shin Pyeongtaek Power Co., Ltd.	Electricity purchase			119,162		520,737		653,306
Noeul Green Energy Co., Ltd.	REC purchase			22,767		10,634		10,014
Samcheok Eco Materials Co., Ltd.	Electricity purchase			9,425		10,713		13,612
YTN Co., Ltd.	Service			333		353		388
Busan Green Energy Co., Ltd.	Electricity purchase			13,811		18,678		18,996
Gunsan Bio Energy Co., Ltd.	Electricity purchase			3,022		24		0
Korea Electric Vehicle Charging Service	Service			536		581		393
Energy Infra Asset Management Co., Ltd.	Service			0		0		2,657
Yaksu ESS Co., Ltd.	Service			1,191		217		1,715
Gangwon Wind Power Co., Ltd.	Electricity purchase			24,116		23,350		19,623
Goesan Solar park Co., Ltd.	Electricity purchase			0		0		6,209
Hyundai Green Power Co., Ltd.	Electricity purchase			507,662		349,778		0
Korea Power Exchange	Trading fees			120,509		87,361		86,716
Taebaek Wind Power Co., Ltd.	Electricity purchase			7,070		4,003		5,930
Taebaek Guinemi Wind Power Co., Ltd.	Electricity purchase			349		5,023		5,910
Pyeongchang Wind Power Co., Ltd.	Electricity purchase			5,188		3,969		4,099
Daeryun Power Co., Ltd.	Electricity purchase			144,862		99,523		157,234
Changjuk Wind Power Co., Ltd.	Electricity purchase			6,994		6,084		6,213
GS Donghae Electric Power Co., Ltd.	Electricity purchase			681,379		660,351		760,377
KNH Solar Co., Ltd.	Electricity purchase			3,377		3,564		3,222
S-Power Co., Ltd.	Electricity purchase			522,469		293,515		608,530
PND Solar Co., Ltd.	Electricity purchase			557		5,234		5,502
Hyundai Eco Energy Co., Ltd.	Electricity purchase			6,810		17,777		25,762
YeongGwang Yaksu Wind Electric Co., Ltd.	Electricity purchase			6,511		9,151		11,729
Taebaek Gadeoksan Wind Power Co., Ltd. (*2)	Electricity purchase			0		0		16,360
Green Energy Electricity Generation Co., Ltd.	Electricity purchase			0		0		1,238
Namjeongsusang Solar Power Operation Co., Ltd.	Electricity purchase			0		0		14,286
Jeju Gimnyeong Wind Power Co., Ltd.	Electricity purchase			0		0		12,833
Seoroseoro Sunny Power Plant Co., Ltd.	Electricity purchase			0		0		217
Muan Solar Park Co., Ltd.	Electricity purchase			0		0		31,017
YuDang Solar Co., Ltd.	Electricity purchase			0		0		3,495
Anjwa Smart Farm & Solar City Co., Ltd.	Electricity purchase			0		0		24,601
Dongbu Highway Solar Co., Ltd.	Electricity purchase			0		0		2,605
Seobu Highway Solar Co., Ltd.	Electricity purchase			0		0		2,936
Korea Energy Solution Co., Ltd.	Electricity purchase			15		0		0
Gwangbaek Solar Power Investment Co., Ltd.	Electricity purchase			0		373		742
Muan Sunshine Solar Power Plant Co., Ltd.	Electricity purchase			0		0		15,900
1 Associates (Overseas)	Electricity purchase			0		0		502

F-206

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(3) Related party transactions for the years ended December 31, 2019, 2020 and 2021 are as follows, continued:

<Purchase and Others>

			Purchase and others
Company name	Transaction type		2019		2020		2021
			In millions of won
<Joint ventures>
Cheongna Energy Co., Ltd.	Electricity purchase	￦		58,747		66		57
Dayone Energy Co., Ltd. (formerly, Hyundai Energy Co., Ltd.)	Electricity purchase			2,847		1,120		5,409
Daegu Green Power Co., Ltd.	Electricity purchase			296,464		215,224		289,052
KAPES, Inc.	Service			142,511		219,673		64,140
Honam Wind Power Co., Ltd.	Electricity purchase			5,306		4,382		4,807
Jeongam Wind Power Co., Ltd. (*1)	Electricity purchase			0		5,982		3,145
Korea Power Engineering Service Co., Ltd.	Service			1,774		1,594		1,315
Seokmun Energy Co., Ltd.	Electricity purchase			26,370		33,164		44,315
Chun-cheon Energy Co., Ltd.	Electricity purchase			313,471		222,069		327,536
Yeonggwangbaeksu Wind Power Co., Ltd.	Electricity purchase			11,739		11,232		9,471
Yeonggwang Wind Power Co., Ltd.	Electricity purchase			11,940		24,103		21,004
Sam-Yang Photovoltaic Power Co., Ltd.	Electricity purchase			0		3,848		5,852
KW Nuclear Components Co., Ltd.	Service			0		0		96
Busan Shinho Solar Power Co., Ltd.	REC purchase			7,843		7,296		7,895
Global Trade Of Power System Co., Ltd.	Service			502		337		323
Expressway Solar-light Power Generation Co., Ltd.	REC purchase			3,067		2,472		3,146
Daesan Green Energy Co., Ltd.	Electricity purchase			0		104,854		146,776
Taebaek Gadeoksan Wind Power Co., Ltd. (*2)	Electricity purchase			0		0		5,080
Saemangeum Solar Power Co., Ltd.	Electricity purchase			0		0		5
Dangjin Eco Power Co., Ltd.	Electricity purchase			0		3,953		4,139
Busan Industrial Solar Power Co., Ltd.	Electricity purchase			0		19		2,815
Bitsolar Energy Co., Ltd.	Electricity purchase			0		0		5,703
Omisan Wind Power Co., Ltd.	Electricity purchase			0		0		7
Haemodum Solar Co., Ltd.	Electricity purchase			0		967		1,625
Yeongam Solar Power Co., Ltd.	Electricity purchase			0		32,208		47,805
Samsu Wind Power Co., Ltd.	Electricity purchase			0		0		2,800
Solaseado Solar Power Co., Ltd.	Electricity purchase			0		28,516		31,031
5 Joint ventures (Overseas)	Electricity purchase and others			7,232		14,767		49,055
<Others>
Korea Development Bank	Interest expense			4,063		3,872		2,756
	Dividends paid			20		17		256,862

(*1) Reclassified from a joint venture to a subsidiary during the year ended December 31, 2021. Transactions are made before the reclassification.

(*2) Reclassified from a joint venture to an associate during the year ended December 31, 2021.

F-207

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of December 31, 2020 and 2021 are as follows:

			Receivables				Payables
Company name	Type		2020		2021		2020		2021
			In millions of won
<Associates>
Dongducheon Dream Power Co., Ltd.	Trade receivables	￦		388		6,282		—		—
	Non-trade receivables and others			213		493		—		—
	Trade payables			—		—		65,794		114,613
Korea Gas Corporation	Trade receivables			9,969		10,015		—		—
	Non-trade receivables and others			95		187		—		—
	Trade payables			—		—		428,763		800,509
	Non-trade payables and others			—		—		617		759
Daejung Offshore Wind Power Co., Ltd.	Non-trade receivables and others			31		77		—		—
Daegu Photovoltaic Co., Ltd.	Trade payables			—		—		57		115
Korea Electric Power Industrial Development Co., Ltd.	Trade receivables			508		269		—		—
	Non-trade receivables and others			16		15		—		—
	Trade payables			—		—		133		873
	Non-trade payables and others			—		—		3,779		5,880
Goseong Green Power Co., Ltd.	Trade receivables			2,181		495		—		—
	Non-trade receivables and others			9,214		76,855		—		—
	Trade payables			—		—		—		218,627
	Non-trade payables and others			—		—		64,986		59,987
Gangneung Eco Power Co., Ltd.	Trade receivables			661		826		—		—
	Non-trade receivables and others			146		465		—		—
	Non-trade payables and others			—		—		—		97
Shin Pyeongtaek Power Co., Ltd.	Trade receivables			1,348		1,788		—		—
	Non-trade receivables and others			2,823		3,116		—		—
	Trade payables			—		—		47,948		79,828
	Non-trade payables and others			—		—		85		99
Noeul Green Energy Co., Ltd.	Trade receivables			3		3		—		—
	Non-trade receivables and others			969		1,169		—		—
Samcheok Eco Materials Co., Ltd.	Trade receivables			47		52		—		—
YTN Co., Ltd.	Trade receivables			97		99		—		—
Busan Green Energy Co., Ltd.	Trade receivables			5		1		—		—
	Non-trade receivables and others			13,946		20,658		—		—
Gunsan Bio Energy Co., Ltd.	Non-trade receivables and others			—		11,728		—		—
Korea Electric Vehicle Charging Service	Trade receivables			141		193		—		—
	Non-trade receivables and others			281		120		—		—
Yaksu ESS Co., Ltd.	Trade payables			—		—		739		1,374
Gangwon Wind Power Co., Ltd.	Trade receivables			6		8		—		—
	Trade payables			—		—		2,678		4,293
Gwangyang Green Energy Co., Ltd.	Non-trade receivables and others			1,356		532		—		—
Bigeum Resident Photovoltaic Power Co., Ltd.	Trade receivables			—		922		—		—
Goesan Solar park Co., Ltd.	Trade payables			—		—		—		73
Hyundai Green Power Co., Ltd.	Trade receivables			554		229		—		—
	Trade payables			—		—		9,825		—
Korea Power Exchange	Trade receivables			1,608		627		—		—
	Non-trade receivables and others			24		1,300		—		—
	Trade payables			—		—		1,362		—
	Non-trade payables and others			—		—		70,456		2,189
Taebaek Wind Power Co., Ltd.	Non-trade receivables and others			1,405		—		—		—
	Trade payables			—		—		443		560
	Non-trade payables and others			—		—		—		262
Taebaek Guinemi Wind Power Co., Ltd.	Trade payables			—		—		413		670
	Non-trade payables and others			—		—		509		—
Pyeongchang Wind Power Co., Ltd.	Trade receivables			3		4		—		—
Daeryun Power Co., Ltd.	Trade receivables			189		213		—		—
	Trade payables			—		—		16,079		21,362
Changjuk Wind Power Co., Ltd.	Trade payables			—		—		461		724
	Non-trade payables and others			—		—		309		295
GS Donghae Electric Power Co., Ltd.	Trade receivables			386		383		—		—
	Non-trade receivables and others			321		272		—		—
	Trade payables			—		—		91,213		113,529
	Non-trade payables and others			—		—		36		17

F-208

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of December 31, 2020 and 2021 are as follows, continued:

			Receivables				Payables
Company name	Type		2020		2021		2020		2021
			In millions of won
<Associates>
KNH Solar Co., Ltd.	Trade receivables	￦		1		1		—		—
	Trade payables			—		—		14		—
	Non-trade payables and others			—		—		187		—
	Trade receivables			137		82		—		—
S-Power Co., Ltd.	Non-trade receivables and others			46		48		—		—
	Trade payables			—		—		23,415		91,277
PND Solar Co., Ltd.	Trade payables			—		—		58		—
Hyundai Eco Energy Co., Ltd.	Trade receivables			16		19		—		—
	Trade payables			—		—		—		732
YeongGwang Yaksu Wind Electric Co., Ltd.	Trade receivables			8		6		—		—
Taebaek Gadeoksan Wind Power Co., Ltd.(*2)	Non-trade receivables and others			—		119		—		—
	Trade payables			—		—		—		8,397
	Non-trade payables and others			—		—		—		1,571
Bitgoel Eco Energy Co., Ltd.	Non-trade receivables and others			—		27		—		—
Jeju Gimnyeong Wind Power Co., Ltd.	Trade payables			—		—		—		885
Muan Solar Park Co., Ltd.	Trade receivables			24		—		—		—
	Non-trade receivables and others			—		23		—		—
Daewon Green Energy Co., Ltd.	Non-trade receivables and others			—		94		—		—
Dongbu Highway Solar Co., Ltd.	Trade receivables			—		1		—		—
	Trade payables			—		—		—		98
	Non-trade payables and others			—		—		—		90
Seobu Highway Solar Co., Ltd.	Trade payables			—		—		—		177
	Non-trade payables and others			—		—		—		105
Go deok Clean Energy Co., Ltd.	Non-trade receivables and others			1		—		—		—
Suwon New Power Co., Ltd.	Trade receivables			2		—		—		—
	Non-trade receivables and others			712		1,198		—		—
Kosture Co., Ltd.	Trade receivables			—		1		—		—
Muan Sunshine Solar Power Plant Co., Ltd.	Trade payables			—		—		—		1,748
4 Associates (Overseas)	Non-trade receivables and others			3,248		3,196		—		—
	Non-trade payables and others			—		—		—		502
<Joint ventures>
Naepo Green Energy Co., Ltd.	Trade receivables			56		42		—		—
Dayone Energy Co., Ltd.	Trade receivables			57		52		—		—
	Non-trade receivables and others			11,749		13,297		—		—
	Trade payables			—		—		10		1,009
	Non-trade payables and others			—		—		9,119		11,306
Daegu Green Power Co., Ltd.	Trade receivables			44		71		—		—
	Non-trade receivables and others			55		55		—		—
	Trade payables			—		—		26,213		35,766
KAPES, Inc.	Trade receivables			2		2		—		—
	Non-trade receivables and others			5,172		—		—		—
	Non-trade payables and others			—		—		20,577		2,121
Honam Wind Power Co., Ltd.	Trade payables			—		—		216		575
	Non-trade payables and others			—		—		345		—
Jeongam Wind Power Co., Ltd.(*1)	Non-trade receivables and others			162		—		—		—
	Non-trade payables and others			—		—		692		—
Korea Power Engineering Service Co., Ltd.	Non-trade receivables and others			43		48		—		—
Seokmun Energy Co., Ltd.	Trade receivables			62		34		—		—
	Non-trade receivables and others			9,460		149		—		—
	Trade payables			—		—		4,898		7,941
	Non-trade payables and others			—		—		9,559		—
Chun-cheon Energy Co., Ltd.	Trade receivables			98		126		—		—
	Non-trade receivables and others			165		167		—		—
	Trade payables			—		—		27,428		41,410
Yeonggwangbaeksu Wind Power Co., Ltd.	Trade receivables			8		6		—		—
	Non-trade receivables and others			159		53		—		—
	Trade payables			—		—		405		1,099
	Non-trade payables and others			—		—		1,747		—

F-209

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(4) Receivables and payables arising from related party transactions as of December 31, 2020 and 2021 are as follows, continued:

			Receivables				Payables
Company name	Type		2020		2021		2020		2021
			In millions of won
<Joint ventures>
Cheongna Energy Co., Ltd.	Trade receivables	￦		1,592		4,164		—		—
	Non-trade receivables and others			1,186		1,350		—		—
	Non-trade payables and others			—		—		—		1
Yeonggwang Wind Power Co., Ltd.	Trade receivables			12		10		—		—
	Non-trade receivables and others			54		59		—		—
	Trade payables			—		—		886		730
	Non-trade payables and others			—		—		3,038		—
Sam-Yang Photovoltaic Power Co., Ltd.	Trade receivables			5		5		—		—
	Non-trade payables and others			—		—		625		—
KW Nuclear Components Co., Ltd.	Trade receivables			4		—		—		—
KEPCO-Uhde Inc.	Non-trade payables and others			—		—		—		10
Busan Shinho Solar Power Co., Ltd.	Trade receivables			2		2		—		—
	Trade payables			—		—		135		281
	Non-trade payables and others			—		—		780		—
Global Trade Of Power System Co., Ltd.	Non-trade payables and others			—		—		—		7
Expressway Solar-light Power Generation Co., Ltd.	Trade payables			—		—		—		102
Daesan Green Energy Co., Ltd.	Trade receivables			11		11		—		—
	Non-trade receivables and others			216		120		—		—
	Trade payables			—		—		7,694		5,120
Taebaek Gadeoksan Wind Power Co., Ltd.(*2)	Non-trade receivables and others			5		—		—		—
	Trade payables			—		—		2,473		—
	Non-trade payables and others			—		—		5		—
Cheong-Song Noraesan Wind Power Co., Ltd.	Trade receivables			2		2		—		—
Saemangeum Solar Power Co., Ltd.	Non-trade receivables and others			3,141		4,268		—		—
Dangjin Eco Power Co., Ltd.	Trade receivables			3		3		—		—
	Trade payables			—		—		326		276
Busan Industrial Solar Power Co., Ltd.	Trade receivables			—		1		—		—
	Trade payables			—		—		1		54
	Non-trade payables and others			—		—		—		24
Bitsolar Energy Co., Ltd.	Non-trade receivables and others			—		7		—		—
	Non-trade payables and others			—		—		—		54
Haemodum Solar Co., Ltd.	Trade receivables			—		1		—		—
Yeongam Solar Power Co., Ltd.	Trade receivables			26		29		—		—
	Trade payables			—		—		14,652		3,324
Samsu Wind Power Co., Ltd.	Trade payables			—		—		—		1,300
18 Joint ventures (Overseas)	Trade receivables			58,839		84,150		—		—
	Non-trade receivables and others			17,217		26,060		—		—
	Non-trade payables and others			—		—		105,682		22,050
<Others>
Korea Development Bank	Accrued interest income			51		154		—		—
	Non-trade receivables and others			206,916		420,732		—		—
	Non-trade payables and others			—		—		123		21,172
	Derivatives			20,167		59,139		20,001		—

(*1) Reclassified from a joint venture to a subsidiary during the year ended December 31, 2021. Transactions are made before the reclassification.

(*2) Reclassified from a joint venture to an associate during the year ended December 31, 2021.

F-210

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(5) Loans and others arising from related party transactions as of December 31, 2020 and 2021 are as follows:

Type	Company name		Beginning balance			Loans			Collection			Others			Ending balance
			In millions of won
Associate	KNOC Nigerian East Oil Co., Ltd., KNOC Nigerian West Oil Co., Ltd.	￦		27,149			34			—			2,298			29,481
	(Allowance for doubtful accounts)			(5,246	)		—			—			(2,995	)		(8,241	)
Associate	Xe-Pian Xe-Namnoy Power Co., Ltd.			19,692			—			—			1,764			21,456
Associate	PT Wampu Electric Power			12,358			—			(1,349	)		1,991			13,000
Associate	Gunsan Bio Energy Co., Ltd.			12,396			—			—			—			12,396
	(Allowance for doubtful accounts)			(10,128	)		(2,268	)		—			—			(12,396	)
Associate	Bigeum Resident Photovoltaic Power Co., Ltd.			3,500			7,712			—			—			11,212
Associate	Daejung Offshore Wind Power Co., Ltd.			1,000			—			—			—			1,000
Associate	Bitgoel Eco Energy Co., Ltd.			—			19,349			—			—			19,349
Joint venture	Solaseado Solar Power Co., Ltd.			64,000			10,000			(39,000	)		—			35,000
Joint venture	Recursos Solares PV De Mexico II, S.A. D e C.V.			4,844			2,282			(1,450	)		458			6,134
Joint venture	Horus Solar , S.A. D e C.V.			13,380			2,755			(843	)		1,222			16,514
Joint venture	Sunmex Renovables, S.A. d e C.V.			1,842			11,377			—			352			13,571
Joint venture	Kelar S.A.			39,616			—			—			3,551			43,167
Joint venture	DE Energia SpA			6,232			—			—			559			6,791
Joint venture	Daehan Wind Power PSC			10,700			1,927			—			1,047			13,674
Joint venture	PT. Tanjung Power Indonesia			705			314			—			71			1,090
Joint venture	Bitsolar Energy Co., Ltd.			3,165			—			—			—			3,165
Joint venture	Pulau Indah Power Plant Sdn. Bhd.			—			10,006			—			(10,006	)		—
Joint venture	Guadalupe Solar SpA			—			3,365			(6	)		1			3,360
Joint venture	Foresight Iberian Solar Group Holding, S.L.			—			9,376			(424	)		50,381			59,333
Joint venture	Capman Lynx SCA, SICAR			—			30,001			—			(231	)		29,770
		￦		205,205			106,230			(43,072	)		50,463			318,826

(6) Borrowings arising from related party transactions as of December 31, 2020 and 2021 are as follows:

Related parties	Type		Beginning balance		Borrowings		Repayment			Others			Ending balance
			In millions of won
Korea Development Bank	Facility	￦		50,293		56,906		(10,863	)		1,684			98,020
	Others			2,946		0		(437	)		0			2,509
	Operating funds			144,300		140,000		(100,000	)		0			184,300
	Syndicated  Loans			15,923		0		(1,042	)		(351	)		14,530
	EBL and others			40,093		9,923		0			3,949			53,965
		￦		253,555		206,829		(112,342	)		5,282			353,324

F-211

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of December 31, 2021 are as follows:

Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Electric Power Corporation	Shuweihat Asia Operation & Maintenance Company	Performance guarantees		USD 11,000	Shuweihat Asia Power Investment B.V.
Korea Electric Power Corporation	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others		USD 1,387	Rabigh Electricity Company
Korea Electric Power Corporation	Nghi Son 2 Power LLC	Performance guarantees		USD 70,000	SMBC Ho Chi Minh and others
		Debt guarantees		USD 285,000	SMBC Singapore
Korea Electric Power Corporation	Barakah One Company	Debt guarantees		USD 1,223,355	Export-Import Bank of Korea and others
		Performance guarantees and others		USD 4,349,360
Korea Electric Power Corporation	RE Holiday Holdings LLC	Performance guarantees(*10)		USD 222,077	EFS Renewables Holdings, LLC, CA-CIB and others
Korea Electric Power Corporation	RE Pioneer Holdings LLC	Performance guarantees		USD 106,873	EFS Renewables Holdings, LLC
Korea Electric Power Corporation	RE Barren Ridge 1 Holdings LLC	Performance guarantees(*10)		USD 68,838	Firstar Development, LLC
Korea Electric Power Corporation	Shuweihat Asia Power Investment B.V.	Performance guarantees		USD 100,000	ING Bank
Korea Electric Power Corporation	Amman Asia Electric Power Company	Performance guarantees		USD 16,800	Shinhan Bank
Korea Electric Power Corporation	Horus Solar, S.A. De C.V.	Other performance guarantees		MXN 16,413	CENACE and others
Korea Electric Power Corporation	Recursos Solares PV De Mexico II, S.A. De C.V.	Other performance guarantees		MXN 1,518	SEMARNAT
Korea Electric Power Corporation	Sunmex Renovables, S.A. De C.V.	Other performance guarantees		USD 9,078	CENACE
Korea Electric Power Corporation				MXN 3,666	SEMARNAT
Korea Electric Power Corporation	Pulau Indah Power Plant Sdn. Bhd.	Collateralized money invested		KRW 22,099	Malaysian Trustee Berhad
Korea Western Power Co., Ltd.	Cheongna Energy Co., Ltd.	Collateralized money invested		KRW 11,198	Kookmin Bank and others
		Guarantees for supplemental funding (*1)		—
Korea Western Power Co., Ltd.	Xe-Pian Xe-Namnoy Power Co., Ltd.	Payment guarantees for business reserve		USD 2,500	Krung Thai Bank
		Collateralized money invested		KRW 92,441
		Impounding bonus guarantees		USD 5,000	SK E&C
Korea Western Power Co., Ltd.	Rabigh Operation & Maintenance Company Limited	Performance guarantees and others		SAR 11,200	National Bank of Kuwait
Korea Western Power Co., Ltd.	Daegu Photovoltaic Co., Ltd.	Collateralized money invested		KRW 2,342	Korea Development Bank
Korea Western Power Co., Ltd.	Dongducheon Dream Power Co., Ltd.	Collateralized money invested(*5)		KRW 39,524	Kookmin Bank and others
		Debt guarantees		KRW 20,300	BNK Securities
Korea Western Power Co., Ltd.	PT. Mutiara Jawa	Collateralized money invested		KRW 2,569	Woori Bank
Korea Western Power Co., Ltd.	Haeng Bok Do Si Photovoltaic Power Co., Ltd.	Collateralized money invested		KRW 223	Nonghyup Bank
Korea Western Power Co., Ltd.	Shin Pyeongtaek Power Co., Ltd.	Collateralized money invested		KRW 93,074	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Haemodum Solar Co., Ltd.	Collateralized money invested		KRW 3,081	Nonghyup Bank
Korea Western Power Co., Ltd.	Sam-Yang Photovoltaic Power Co., Ltd.	Collateralized money invested		KRW 4,993	Korea Development Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Muan Solar Park Co., Ltd.	Collateralized money invested		KRW 6,083	IBK and others
Korea Western Power Co., Ltd.	Anjwa Smart Farm & Solar City Co., Ltd.	Collateralized money invested		KRW 6,784	Hana Bank and others

F-212

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of December 31, 2021 are as follows, continued:

Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Western Power Co., Ltd.	Seoroseoro Sunny Power Plant Co., Ltd.	Collateralized money invested		KRW 721	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	YuDang Solar Co., Ltd.	Collateralized money invested		KRW 565	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Hapcheon Floating Photovoltaic Power Plant Inc.	Collateralized money invested		KRW 6,971	Nonghyup Bank and others
Korea Western Power Co., Ltd.	Yeongwol Eco Wind Co., Ltd.	Collateralized money invested		KRW 3,197	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea Western Power Co., Ltd.	Gurae Resident Power Co., Ltd.	Collateralized money invested Guarantees for supplemental funding(*1)		KRW 396 —	Hana Bank and others
Korea Western Power Co., Ltd	Gunsan Land Solar Co., Ltd.	Collateralized money invested		KRW 19,317	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Busan Shinho Solar Power Co., Ltd.	Collateralized money invested		KRW 5,841	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Seokmun Energy Co., Ltd.	Collateralized money invested		KRW 13,842	Kookmin Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Chun-cheon Energy Co., Ltd.	Collateralized money invested		KRW 25,896	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 4,041	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 243,772	Korea Development Bank and others
Korea East-West Power Co., Ltd.	Yeonggwangbaeksu Wind Power Co., Ltd.	Collateralized money invested		KRW 2,728	Kookmin Bank and others
Korea East-West Power Co., Ltd.	Yeonggwang Wind Power Co., Ltd.	Collateralized money invested		KRW 17,646	KDB Capital Corporation and others
Korea East-West Power Co., Ltd.	Daesan Green Energy Co., Ltd.	Collateralized money invested		KRW 21,244	IBK
		Guarantees for supplemental funding(*1)		KRW 18,989
Korea East-West Power Co., Ltd.	Taebaek Gadeoksan Wind Power Co., Ltd.	Collateralized money invested		KRW 16,495	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
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 46,546	MUFG and others
Korea East-West Power Co., Ltd.	South Jamaica Power Company Limited	Performance guarantees		USD 14,400	Credit Agricole Corporate & Investment Bank Seoul
		Collateralized money invested		KRW 37,360	JCSD Trustee Services Limited and others
Korea East-West Power Co., Ltd.	DE Energia SpA	Collateralized money invested		KRW 8,921	Mirae Asset Daewoo Co., Ltd. and others
		Collateralized loans		USD 5,728
		Payment guarantees(*8)		USD 950	Hana Bank
Korea East-West Power Co., Ltd.	Bitsolar Energy Co., Ltd.	Collateralized money invested		KRW 352	Mirae Asset Life Insurance Co., Ltd. and others
Korea East-West Power Co., Ltd.	Cheongju Eco Park Co., Ltd.	Collateralized money invested		KRW 5,465	Kyobo Life Insurance Co., Ltd. and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Busan Industrial Solar Power Co., Ltd.	Collateralized money invested		KRW 612	Shinhan Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Yangyang Wind Power Co., Ltd.	Collateralized money invested		KRW 11,191	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Daewon Green Energy Co., Ltd.	Collateralized money invested		KRW 3,877	Hana Bank and others
		Guarantees for supplemental funding(*1)		—
Korea East-West Power Co., Ltd.	Goheung New Energy Co., Ltd.	Collateralized money invested		KRW 3,577	Woori Bank and others
		Guarantees for supplemental funding(*1)		—

F-213

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of December 31, 2021 are as follows, continued:

Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Southern Power Co., Ltd.	KNH Solar Co., Ltd.	Collateralized money invested		KRW 2,278	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 25,426	Korea Development Bank and others
Korea Southern Power Co., Ltd.	Daegu Green Power Co., Ltd.	Collateralized money invested		KRW 24,054	Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Kelar S.A.	Performance guarantees		USD 54,282	Hana Bank, MUFG
Korea Southern Power Co., Ltd.	Daehan Wind Power PSC	Performance guarantees		USD 1,500	Shinhan Bank
		Payment guarantees(*7)		USD 1,898	Hana Bank
Korea Southern Power Co., Ltd.	Pyeongchang Wind Power Co., Ltd.	Collateralized money invested		KRW 5,411	Woori Bank and Shinhan Bank and others
		Performance guarantees		—
Korea Southern Power Co., Ltd.	Taebaek Guinemi Wind Power Co., Ltd.	Collateralized money invested		KRW 3,357	IBK
Korea Southern Power Co., Ltd.	Samcheok Eco Materials Co., Ltd.	Payment guarantees(*2)		0	SEM Investment Co., Ltd.
Korea Southern Power Co., Ltd.	Solaseado Solar Power Co., Ltd.	Collateralized money invested		KRW 7,360	Kookmin Bank and others
Korea Southern Power Co., Ltd.	Naepo Green Energy Co., Ltd.	Collateralized money invested(*9)		0	IBK and others
		Guarantees for supplemental funding(*1)		KRW 30,000
		Guarantees for other supplemental funding and performance guarantees(*1)		0
Korea Southern Power Co., Ltd.	Omisan Wind Power Co., Ltd.	Collateralized money invested		KRW 10,634	Shinhan Bank and others
		Guarantees for supplemental funding and performance guarantees(*1)		—
Korea Southern Power Co., Ltd.	Geumsungsan Wind Power Co., Ltd.	Collateralized money invested Guarantees for supplemental funding(*1)		KRW 6,053 —	Kookmin Bank
KOSPO Chile SpA	Kelar S.A.	Collateralized money invested		KRW 86,695	Export-Import Bank of Korea and others
KOSPO Chile SpA	Chester Solar I SpA	Collateralized money invested		KRW 1,120	IBK
KOSPO Chile SpA	Chester Solar IV SpA	Collateralized money invested		0	IBK
KOSPO Chile SpA	Chester Solar V SpA	Collateralized money invested		KRW 25	IBK
KOSPO Chile SpA	Diego de Almagro Solar SpA	Collateralized money invested		KRW 362	IBK
KOSPO Chile SpA	Laurel SpA	Collateralized money invested		KRW 290	IBK
Korea Midland Power Co., Ltd.	YeongGwang Yaksu Wind Electric Co., Ltd.	Collateralized money invested		KRW 233	IBK and others
Korea Midland Power Co., Ltd.	Hyundai Green Power Co., Ltd.	Collateralized money invested		KRW 121,955	Korea Development Bank and others
Korea Midland Power Co., Ltd.	PT. Cirebon Electric Power	Debt guarantees		USD 9,955	Mizuho Bank
Korea Midland Power Co., Ltd.	PT Wampu Electric Power	Debt guarantees		USD 4,817	SMBC
Korea Midland Power Co., Ltd.	Green Energy Electricity Generation Co., Ltd.	Collateralized money invested		KRW 1,713	IBK
		Guarantees for supplemental funding and others(*1)		0	IBK and others
Korea Midland Power Co., Ltd.	Yaksu ESS Co., Ltd.	Collateralized money invested		KRW 716	IBK
Korea Midland Power Co., Ltd.	Namjeongsusang Solar Power Operation Co., Ltd.	Collateralized money invested		KRW 361	IBK
Korea Midland Power Co., Ltd.	Gwangbaek Solar Power Investment Co., Ltd.	Collateralized money invested		KRW 4,806	Kyobo Life Insurance Co., Ltd. and others
Korea Midland Power Co., Ltd.	Muan Sunshine Solar Power Plant Co., Ltd.	Collateralized money invested		KRW 1,268	IBK
Korea Midland Power Co., Ltd.	Goesan Solar park Co., Ltd.	Collateralized money invested		KRW 1,927	IBK
Korea Midland Power Co., Ltd.	Bitgoel Eco Energy Co., Ltd.	Collateralized money invested		KRW 4,356	IBK and others
		Guarantees for supplemental funding(*1)		—
Korea Midland Power Co., Ltd.	Energyco Co., Ltd. (formerly, Energyco LLC)	Collateralized money invested		KRW 1,535	Nonghyup Bank
Korea Midland Power Co., Ltd.	Jeju Gimnyeong Wind Power Co., Ltd.	Collateralized money invested		KRW 911	Nonghyup Bank
Korea Midland Power Co., Ltd.	Dongbu Highway Solar Co., Ltd.	Collateralized money invested		KRW 265	Nonghyup Bank

F-214

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(7) Guarantees provided to associates or joint ventures as of December 31, 2021 are as follows, continued:

Primary guarantor	Principal obligor	Type of guarantees	Credit limit		Creditor
			In millions of won and thousands of foreign currencies
Korea Midland Power Co., Ltd.	Seobu Highway Solar Co., Ltd.	Collateralized money invested		KRW 289	Nonghyup Bank
Korea South-East Power Co., Ltd.	Dayone Energy Co., Ltd.	Collateralized money invested(*3)		—	IBK
		Guaranteesforsupplementalfundingandothers(*1,4)		KRW 76,800	NH investment & securities Co., Ltd. and others
Korea South-East Power Co., Ltd.	RES Technology AD	Collateralized money invested		KRW 16,703	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	ASM-BG Investicii AD	Collateralized money invested		KRW 18,692	UniCredit Bulbank and others
Korea South-East Power Co., Ltd.	Expressway Solar-light Power Generation Co., Ltd.	Guarantees for supplemental funding and others		KRW 1,856	Woori Bank
Korea South-East Power Co., Ltd.	Goseong Green Power Co., Ltd.	Collateralized money invested		KRW 260,858	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Gangneung Eco Power Co., Ltd.	Collateralized money invested		KRW 2,288	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	PND Solar Co., Ltd.	Collateralized money invested		KRW 1,229	IBK
Korea South-East Power Co., Ltd.	Hyundai Eco Energy Co., Ltd.	Collateralized money invested		KRW 5,572	Samsung Life Insurance and others
Korea South-East Power Co., Ltd.	Jaeun Resident Wind Power Plant Co., Ltd.	Collateralized money invested		KRW 1,958	IBK
Korea South-East Power Co., Ltd.	Chungsongmeon BongSan wind power Co., Ltd.	Collateralized money invested		KRW 3,808	Kyobo Life Insurance Co., Ltd. and others
Korea South-East Power Co., Ltd.	Yeongam Solar Power Co., Ltd.	Collateralized money invested		KRW 6,838	Kookmin Bank and others
Korea South-East Power Co., Ltd.	Samsu Wind Power Co., Ltd.	Collateralized money invested		KRW 2,828	Shinhan Bank and others
Korea South-East Power Co., Ltd.	Saemangeum Heemang Photovoltaic Co., Ltd.	Collateralized money invested		KRW 10,238	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Noeul Green Energy Co., Ltd.	Collateralized money invested		KRW 3,809	Hana Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Busan Green Energy Co., Ltd.	Collateralized money invested		KRW 5,033	Shinhan Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Go deok Clean Energy Co., Ltd.	Collateralized money invested		KRW 4,301	Kookmin Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Cheong-Song Noraesan Wind Power Co., Ltd.	Collateralized money invested		KRW 4,106	Woori Bank and others
Korea Hydro & Nuclear Power Co., Ltd.	Gwangyang Green Energy Co., Ltd.	Collateralized money invested		KRW 25,465	Shinhan Bank and others
KEPCO Plant Service & Engineering Co., Ltd.	Incheon New Power Co., Ltd.	Collateralized money invested(*6)		—	Shinhan Bank
		Guarantees for supplemental funding and others(*1)		0

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

(*2) Controlling and non-controlling common shareholders of Samcheok Eco Materials Co., Ltd. have pre-emption rights, if preferred shareholders intend to sell their shares until December 26, 2023. The promised yield of the preferred stock is guaranteed through the transaction. As of December 31, 2021, the Company has recognized derivative liabilities of ￦6,760 million related to the guarantee. Meanwhile, the Company is under an agreement with Samcheok Eco Materials Co., Ltd. that if a damage incurs related to the fulfillment of obligations pursuant to the mandatory contract of coal ash supply, compensation for the expected amount of the damage should be settled.

(*3) The Company recognized an impairment loss on all of the equity securities of Dayone Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is ￦47,067 million.

(*4) Pursuant to the guarantee agreement, the Company recognized other provisions of ￦26,772 million as the possibility of economic benefit outflow to fulfill the obligation was deemed probable and the amount could be reasonably estimated.

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

(*6) The Company 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 is ￦461 million.

(*7) The Company provided a payment guarantee to Daehan Wind Power PSC for opening LC for Debt Service Reserve Account (DSRA).

(*8) This includes a guarantee related to LC for debt repayment allowance provided to DE Energia SpA, a joint venture of the Company.

(*9) The Company recognized an impairment loss on all of the equity securities of Naepo Green Energy Co., Ltd. before the prior year, and the acquisition cost of the securities provided as collateral is ￦29,200 million.

(*10) The credit limits of guarantees to RE Holiday Holdings LLC and RE Barren Ridge 1 Holdings LLC include the credit limits of guarantees to their subsidiaries.

F-215

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

47. Related Parties, Continued

(8) As of December 31, 2021, there is no financial guarantee provided by related parties.

(9) Derivatives transactions with related parties as of December 31, 2021 are as follows:

(i) Currency Swap

Counterparty	Contract year			Contract amounts				Contract interest rate per annum							Contract exchange rate
				Pay		Receive		Pay			Receive
	In millions of won and thousands of foreign currencies except contract exchange rate information
Korea Development Bank		2019~2024	￦		177,600		USD 150,000		1.24	%		2.50	%	￦		1,184.00
		2020~2025			241,320		USD 200,000		0.54	%		1.13	%			1,206.60
		2021~2026			118,170		USD 100,000		1.11	%		1.13	%			1,181.70
		2015~2025			111,190		USD 100,000		2.62	%		3.25	%			1,111.90
		2017~2027			111,610		USD 100,000		2.31	%		3.13	%			1,116.10
		2018~2028			108,600		HKD 800,000		2.69	%		3.35	%			135.75
		2018~2023			170,280		USD 150,000		2.15	%		3.75	%			1,135.20
		2019~2027			119,978		CHF 100,000		1.43	%		0.05	%			1,199.78
		2021~2026			111,400		USD 100,000		0.93	%		1.25	%			1,114.00
		2020~2026			118,910		USD 100,000		0.61	%		1.00	%			1,189.10
		2019~2022			112,650		USD 100,000		1.80	%		3.38	%			1,126.50
		2021~2026			114,230		USD 100,000		1.27	%		1.25	%			1,142.30
		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
		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
		2020~2025			122,780		USD 100,000		0.93	%		1.75	%			1,227.80

(ii) Currency forward

Counterparty

Contract date

Maturity date

Contract amounts

Contract exchange rate

Pay

Receive

In millions of won and thousands of USD except contract exchange rate information

Korea Development Bank

2021.09.27

2022.01.07

￦

59,049

USD 50,050

￦

1,179.80

(10) The Company considers all standing directors of the Board who serve as executive officers responsible for planning, operations and/or control of business activities, as key management personnel, except a standing director who is a member of the Audit Committee. The Company recorded salaries and other compensations related to the key management personnel as follows:

Type		2019		2020		2021
		In millions of won
Salaries	￦		1,315		1,295		1,272
Retirement benefits			31		58		21
	￦		1,346		1,353		1,293

F-216

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

48. Statement of Cash Flows

(1) Significant non-cash transactions for the years ended December 31, 2019, 2020, and 2021 are as follows:

Transactions		2019		2020		2021
		In millions of won
Transfer from construction-in-progress to other assets	￦		14,052,094		10,189,527		12,902,589
Recognition of asset retirement cost and related provision for decommissioning costs			2,425,668		895,507		2,356,805
Transfer from provision for disposal of spent nuclear fuel to accrued expenses			376,103		395,921		455,401
Transfer from long-term borrowings and debt securities to current portion of long-term borrowings and debt securities			7,759,284		9,237,883		11,109,271
Transfer from inventory to stored nuclear fuel			1,129,374		1,055,974		908,842
Transfer of right-of-use assets due to change in accounting policy and others			5,364,647		291,334		78,213

(2) Changes in liabilities incurred from financing activities for the years ended December 31, 2020, and 2021 are as follows:

		2020
							Non-cash changes
		Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others			Ending balance
		In millions of won
Borrowings and debt securities	￦		67,876,541		2,538,787			0		(690,747	)		69,724,581
Lease liabilities			5,070,133		(613,977	)		275,686		(110,746	)		4,621,096
	￦		72,946,674		1,924,810			275,686		(801,493	)		74,345,677
		2021
							Non-cash changes
		Beginning balance		Cash flows			Increase		Effect of exchange rate fluctuations and others			Ending balance
		In millions of won
Borrowings and debt securities	￦		69,724,581		9,653,394			0		1,151,538			80,529,513
Lease liabilities			4,621,096		(572,036	)		73,090		288,353			4,410,503
	￦		74,345,677		9,081,358			73,090		1,439,891			84,940,016

F-217

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

49. Commitments for Expenditure

(1) The commitments related to acquisition of property, plant and equipment as of December 31, 2020 and 2021 are as follows:

		2020				2021
Contracts		Commitment amounts		Remaining liability balances		Commitment amounts		Remaining liability balances
		In millions of won
Purchase of cable (PVC, 1C, 2000SQ) 153,000M and others (Shin-Bupyung-Youngseo)	￦		56,574		16,038		57,046		16,240
Purchase of cable (PVC, 1C, 2500SQ) 103,374M and others (Bukdangjin-Shin-Tangjung)			45,390		32,876		46,616		34,102
Purchase of GIS (362kV, 6300A, 63kA) 23CB – Youngseo S/S			36,143		29,898		36,143		25,292
Purchase of GIS (362kV, 6300A, 63kA) 26CB – Hwasung S/S			40,010		8,328		40,010		5,540
Purchase of GIS (362kV, 6300A, 63kA) 27CB – Kwangyang S/S			37,744		2,244		37,744		140
Purchase of cable (FR CNCO-W, 1C, 325SQ) 1,400,000M			59,716		37,249		0		0
Purchase of switch (Eco) 9,360 units			40,631		24,031		0		0
Purchase of cable (TR CNCE-W,1C,600SQ) 551,200M			37,288		23,100		0		0
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 4,464,000M			82,622		51,130		0		0
Purchase of cable (FR CNCO-W,1C,325SQ) 1,092,000M			42,068		35,358		0		0
Concrete pole (10M, general purpose, 350KGF) 102,435 ea and five other equipments			91,889		80,904		0		0
Purchase of cable (PVC, 1C, 2500SQ) 100,548M and others			0		0		56,860		34,576
Purchase of GIS (362kV, 6300A, 63kA) 25CB – Migeum S/S			0		0		32,000		26,700
Advanced E-Type low-pressure electronic power meter 1,320,000 ea			0		0		65,972		23,262
Purchase of cable (PVC, 1C, 2000SQ) 5,862M and others (Baekun-Gwangyanghang)			0		0		34,423		23,297
Purchase of cable (TR CNCE- W,1C,325SQ) 1,016,000M			0		0		66,581		40,254
Purchase of cable (TR CNCE-W,1C,600SQ) 485,000M			0		0		46,194		37,810
Purchase of cable (TR CNCE-W/AL,1C,400SQ) 3,303,900M			0		0		87,382		83,628
Concrete pole (10M, general purpose, 350KGF) 126,948 ea and five other equipments			0		0		188,338		168,456
Purchase of GIS (362KV, 6300A, 63KA) 25 – Shinyangsan S/S							31,464		31,464
Construction of Shin-Kori Units (#5,6)			8,625,387		3,256,117		9,800,424		3,479,667
Construction of Shin-Hanul Units (#1,2)			9,443,635		160,512		9,745,123		0
Other 30 contracts			107,586		58,466		792,485		620,593
Service of designing Seoul Combined Units (#1,2)			31,841		984		31,841		934
Service of designing Shin-Boryeong Units (#1,2)			121,163		521		121,114		0
Purchase of furnace for construction of Shin-Seocheon Thermal Power Plant			305,209		29,042		305,209		7,722
Purchase of turbine generator for construction of Shin-Seocheon Thermal Power Plant			105,226		8,279		105,226		6,301
Electricity construction of Shin-Seocheon Thermal Power Plant			282,234		13,524		340,356		0
Purchase of main machine for Jeju LNG Combined			166,287		11,182		166,287		10,972
Service of designing Taean U nits (#9,10)			112,813		12,933		112,909		12,623
Purchase of gas turbines and turbine equipment of Gimpo Combined Heat & Power Plant			104,600		41,840		126,302		61,735
Purchase of steam turbine, HRSG and Popwer Block of Gimpo Combined Heat & Power Plant			210,900		147,630		214,053		138,244
Construction of Gimpo Combined Heat & Power Plant			0		0		130,015		86,323
Purchase of coal handling machine for construction of Samcheok Units (#1,2)			285,158		22,751		286,571		6,215
Purchase of furnace main equipment for construction of Samcheok Units (#1,2)			1,065,141		11,609		0		0
Purchase of turbine main equipment for Samcheok U nits (#1,2)			211,349		125		0		0
Purchase of main equipment for Namjeju			140,144		112		140,144		3
Purchase of main equipment for Shin-Sejong Combined Thermal Power Plant			0		0		234,392		200,122

F-218

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

49. Commitments for Expenditure, Continued

(2) As of December 31, 2021, details of contracts for inventory purchase commitment are as follows:

The Company imports all of its uranium ore concentrates from sources outside Korea (including the United States, United Kingdom, Kazakhstan, France, Russia, South Africa, Canada and Australia) which are paid for with currencies other than Won, primarily in U.S. dollars. In order to ensure stable supply, the Company entered into long-term and medium-term contracts with various suppliers, and supplements such supplies with purchases of fuels on spot markets. The long-term and medium-term contract periods vary among contractors and the stages of fuel manufacturing process. Contract prices for processing of uranium are generally based on market prices. Contract periods for ore concentrates, conversion, enrichment and design and fabrication are as follows:

Type	Periods		Contracted quantity
Concentrate		2020 ~ 2030	32,435 Ton U3O8
Transformed		2020 ~ 2030	18,088 Ton U
Enrichment		2020 ~ 2030	17,667 Ton SWU

In addition, the contracted quantity of the molded uranium between Korea Hydro & Nuclear Power Co., Ltd. and KEPCO Nuclear Fuel Co., Ltd., which are subsidiaries of the Company, is 1,625 Ton U (contract periods : 2014 ~ 2024).

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KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments

(1) Ongoing litigations and claims related with contingent liabilities and contingent assets as of December 31, 2020 and 2021 are as follows:

	2020				2021
	Number of cases		Claim amount		Number of cases		Claim amount
	In millions of won
As the defendant		663	￦	550,535		683	￦	689,415
As the plaintiff		200		729,798		284		784,453

As of December 31, 2021, the Company is party to two ongoing litigations and one arbitration.

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 has been dismissed on May 29, 2020, resulting in plaintiffs’ loss. 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, but the appeal had been closed on April 29, 2021. The Company joined these litigations as a stakeholder after obtaining permission from the court.

As of December 31, 2021, in connection with Shin-Hanul unit 3 & 4, the Company has received communications from a vendor for costs incurred for the preliminary work of the main equipment and associated compensation due to the discontinuation of the construction. The Company does not believe that it has a present obligation to this vendor, and that it is probable that the Company will prevail if a lawsuit is filed against the Company. In addition, the Company cannot reliably estimate the potential economic outflow related to the obligation as of December 31, 2021.

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

1) There is an ongoing claim against the Company from a group of plaintiffs (consisting of 3,910 individuals) regarding the contribution to plan assets and payment of retirement benefits. The Company recognized ￦11,730 million as litigation provisions in relation to the lawsuit.

2) There is an ongoing claim against the Company regarding the completion of the waste oil refining power generation plant of Next energy Co., Ltd. The Company recognized the amount of probable outflow of resources as a provision.

3) There are multiple ongoing claims against the Company related to ordinary wages, requesting payment of unpaid wages. The Company believes that the possibility of the outflow of economic benefits is probable on the ongoing and the expected lawsuits. Accordingly, the Company recognized ￦3,233 million as litigation provisions in relation to the lawsuit as of December 31, 2021.

In addition to the abovementioned significant ongoing claims, there are 5 arbitration cases pertaining to the Company as of December 31, 2021 and the significant arbitration cases for the year ended December 31, 2021 are as follows:

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

2) Two companies including GE Energy Products France SNC filed an arbitration against the Company to Korea Commercial Arbitration Board regarding additional payment of construction costs, but the Company has not recognized any provision because the probability of economic benefit outflow is remote and the related amount cannot be reliably estimated.

F-220

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of December 31, 2021 are as follows:

1) The Company has outstanding borrowings with a limit of USD 275,600 thousand from its creditors such as International Finance Corporation. Regarding the borrowing contract, the Company has guaranteed capital contribution of USD 69,808 thousand and additional contribution up to USD 19,000 thousand for contingencies, if any. Moreover, for one of the electricity purchasers, Central Power Purchasing Agency Guarantee Ltd., the Company has provided payment guarantee up to USD 2,777 thousand, in case of construction delay or insufficient contract volume after commencement of the construction.

2) The Company 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 Company has provided MUFG Bank, Ltd. (MUFG) borrowing guarantee up to USD 41,258 thousand in proportion to its ownership in the Equity Bridge Loan (EBL) guarantee with PT. Cirebon Energi Prasarana in relation to the second electric power generation business in Cirebon, Indonesia.

4) The Company has provided the Export-Import Bank of Korea, BNP Paribas and ING Bank with the guarantees 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 Company has provided USD 18,500 thousand of business performance guarantees to AEP Texas, Inc., for the construction, ownership, operation, and related cost-bearing implementation of electric power transmission equipment regarding Concho Valley solar business in the United States.

6) The Company has provided the syndicate of lenders of PT Indo Raya Tenaga, the business corporation of PT Barito Wahana Tenaga, a guarantee by establishing the right of pledge on the shares of PT Barito Wahana Tenaga for project financing of PT Barito Wahana Tenaga as of December 31, 2021.

7) The Company has provided a guarantee to complete the construction of the waste oil refining power generation plant of Next energy Co.,Ltd. (contract amount : ￦14,700 million) to the financial institution agents, thus the Company is liable to compensate to financial institution agents for the any damages incurred in the event of incompletion of the construction. Also, the power generation guarantee agreement was concluded in connection with the consignment service for management and operations (the repayment period of the principal of the loan) after the completion of the construction. If the amount of power generated falls short of the contracted power generation amount, the Company will be liable to pay compensation for the shortage. The Company has recognized a provision based on the assessment of expected outflow of resources.

8) The Company has provided Axia Power Holdings B.V. and others a performance guarantee up to USD 54,000 thousand for the implementation of Cirebon thermal power generation project in Indonesia.

9) The Company has provided PT Perusahaan Listrik Negara a performance guarantee up to IDR 35,907,215 thousand for the implementation of Tanjung Jati power plant operation project in Indonesia.

10) The Company has provided Export-Import Bank of Korea and others a performance guarantee up to USD 12,090 thousand for the excess project costs of hydroelectric power generation project of Tanggamus, Indonesia.

11) The Company has provided Export-Import Bank of Korea and others a borrowing guarantee up to USD 5,911 thousand for the DSRA guarantee of hydroelectric power generation project of Tanggamus, Indonesia.

12) The Company has provided PT. Cirebon Energi Prasarana a performance guarantee up to USD 43,500 thousand for the fulfillment of subscription obligation regarding Cirebon 2 coal-fired power generation project in Indonesia.

13) The Company has provided Van Phong Power Company Ltd. a performance guarantee up to USD 5,000 thousand for the operation maintenance project in Van Phong, Vietnam.

14) The Company has provided Morgan Stanley Capital Group Inc. a performance guarantee up to USD 30,000 thousand for the implementation of photovoltaic power generation project in USA.

15) The Company has provided Morgan Stanley Renewables Inc. a performance guarantee up to USD 70,000 thousand for the fulfillment of subscription obligation regarding photovoltaic power generation project in USA.

F-221

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments, Continued

(2) Guarantees of payments and commitments provided to other companies as of December 31, 2021 are as follows, continued:

16) The Company has provided EUR 10,000 thousand for a performance guarantee to Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch through Kookmin Bank, to guarantee the opening of VAT payment loan account for Guba Buget wind power project in Sweden.

17) The Company has provided EUR 5,022 thousand for a performance guarantee to Microsoft through Kookmin Bank, to guarantee the implementation of the power plant construction for Guba Buget wind power project in Sweden.

18) The Company has provided EUR 9,980 thousand of a performance guarantee to Ellevio through Shinhan Bank, to guarantee the performance of the electric power transmission equipment connection construction for Guba Buget wind power project in Sweden.

19) The Company has provided USD 60,000 thousand of a borrowing guarantee to Shinhan Bank, to guarantee the Equity Bridge Loan (EBL) for the solar power business in USA.

20) The Company has provided a performance guarantee to EDF Energy service, LLC, for the solar power business in USA.

21) The Company has provided USD 76,700 thousand of a performance guarantee to Primoris Renewable Energy, Inc., to guarantee the construction of power plants of the solar power business in USA.

22) The Company has provided USD 54,000 thousand of a performance guarantee to PT. Cirebon Electro Power, for Cirebon coal-fired power plant operation and maintenance project in Indonesia.

F-222

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments, Continued

(3) Credit lines provided by financial institutions as of December 31, 2021 are as follows:

Commitments	Financial institutions	Currency	Credit limit		Used amount
	In millions of won and thousands of foreign currencies
Commitments on Bank-overdraft	Nonghyup Bank and others	KRW		1,815,500		208,018
Commitments on Bank-daylight overdraft	Nonghyup Bank	KRW		280,000		0
Limit amount available for CP	Hana Bank and others	KRW		1,050,000		1,050,000
Limit amount available for card	Hana Bank and others Banco de Oro	KRW PHP		47,404 5,000		5,529 3,000
Loan limit	Kookmin Bank and others DBS Bank Ltd and others	KRW USD		1,780,028 1,644,700		1,319,181 167,533
Certification of payment on payables from foreign country	Nonghyup Bank	USD		8,700		7,213
Certification of payment on L/C	Shinhan Bank and others	USD		1,019,834		463,355
	Shinhan Bank	JPY		707,337		—
	Hana Bank and others	EUR		48,122		41,262
Certification of Performance guarantee on contract	Seoul Guarantee Insurance and others	KRW		104,705		96,658
	First Abu Dhabi Bank and others	USD		947,707		682,903
	Korea Development Bank and others	JPY		620,000		620,000
	Hana Bank	EUR		3,965		3,965
	Shinhan Bank	INR		51,678		51,678
Certification of bidding	Hana Bank	USD		5,200		197
Advance payment bond, Warranty bond, Retention bond and others	Seoul Guarantee Insurance	KRW		49,874		49,874
	Hana Bank and others	USD		331,072		286,388
	Hana Bank	SAR		6,508		6,508
	Hana Bank and others	MXN		21,597		20,027
Others	Nonghyup Bank and others	KRW		610,983		29,730
	Export-Import Bank of Korea and others	USD		2,625,372		1,842,173
	Standard Chartered	AED		50		50
Inclusive credit	Hana Bank	KRW		8,000		825
	Hana Bank and others	USD		135,078		15,633
Trade finance	Export-Import Bank of Korea and others	USD		850,000		149,328

F-223

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments, Continued

(4) As of December 31, 2021, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows:

Guarantor	Creditor	Assets provided as security	Currency	Amount		Description
	In millions of won and thousands of foreign currencies
Mira Power Limited	International Finance Corporation and others	Property, plant and equipment and others	USD		275,600	Collateral for borrowings(*1)
Tamra Offshore Wind Power Co., Ltd.	Kyobo Life Insurance Co., Ltd. and others	Property, plant and equipment and others	KRW		171,600	Collateral for borrowings(*2)
Gyeonggi Green Energy Co., Ltd.	Korea Development Bank and others	Cash and cash equivalents and others	KRW		327,080	Collateral for borrowings(*2)
Commerce and Industry Energy Co., Ltd.	IBK and others	Property, plant and equipment and others	KRW		110,500	Collateral for borrowings(*2)
KOSPO Youngnam Power Co., Ltd.	Shinhan Bank and others	Cash and cash equivalents and others	KRW		396,120	Collateral for borrowings(*2)
Gyeongju Wind Power Co., Ltd.	Shinhan Bank and others	Property, plant and equipment and others	KRW		68,400	Collateral for borrowings(*2)
Korea Offshore Wind Power Co., Ltd.	Woori Bank and others	Property, plant and equipment and others	KRW		293,400	Collateral for borrowings(*2)
Qatrana Electric Power Company	The Islamic Development Bank and others	Finance lease receivable and property, plant and equipment and others	JOD		236,570	Collateral for borrowings(*1)
KST Electric Power Company, S.A.P.I. de C.V.	The Export—Import Bank of Korea and others	Finance lease receivable and property, plant and equipment and others	USD		401,277	Collateral for debt securities(*1)
Incheon Fuel Cell Co., Ltd.	Kookmin Bank and others	Cash and cash equivalents and others	KRW		276,960	Collateral for borrowings(*2)
TS Energy No. 25 Co., Ltd.	Kyobo Life Insurance Co., Ltd. and others	Property, plant and equipment and others	KRW		521,281	Collateral for borrowings(*2)
Jeongam Wind Power Co., Ltd.	KDB Capital Corporation and others	Cash and cash equivalents and others	KRW		221,631	Collateral for borrowings(*2)

(*1) Based on the credit limits of the respective loans.

(*2) As of December 31, 2021, the Company has established guarantees for pledge for transfer of rights of long-term borrowings, pledge for insurance claims, pledge for shares, etc.

The Company has ￦1,197

million of project loans from the Korea Energy Agency as of December 31, 2021. The Company has provided blank check as a repayment guarantee.

F-224

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

50. Contingencies and Commitments, Continued

(4) As of December 31, 2021, blank check and assets provided as collaterals or pledges to financial institutions by the Company are follows, continued:

(5) The Company temporarily suspended operations of the Gangneung hydroelectric generating plant, with a carrying amount of ￦68,674 million as of December 31, 2021, to improve the quality of water used in generating electricity. The expenses related to the suspension of operations of ￦44 million and depreciation on the idle assets of ￦3,621 million are recorded in other expenses for the year ended December 31, 2021. Regarding the improvement of water quality, the results of damages compensation for the local residents cannot be reasonably estimated, and the Company is in negotiations with Gangneung City and related stakeholders to restart the Gangneung hydroelectric generating plant as of December 31, 2021.

(6) Due to the Korean government’s announcement of suspension of operation in the Gaeseong Industrial District, it is uncertain if the Company can exercise the property rights for the Company’s facility in the Gaeseong Industrial District as of December 31, 2021. The book value of facility is ￦14,451 million and the amount of trade receivables related to the companies residing in Gaeseong industrial complex is ￦2,911 million. The outcome of this event cannot be reasonably estimated as of December 31, 2021.

(7) In connection with the electric power IT modernization project in Kerala, India, negotiations are underway due to disagreements in the contract regarding the existence and the scope of a warranty obligation. However, the Company has not recognized any provision because the amount and timing of economic benefit outflow cannot be reasonably estimated as of December 31, 2021.

(8) To prevent the spread of COVID-19, a variety of prevention and control measures, including movement restrictions, are being implemented worldwide, and as a result, the global economy is being affected extensively. In addition, various forms of government policies are being announced to cope with COVID-19. The Company was unable to reasonably estimate the impact of COVID-19 and the impact of the government support policies on the Company’s consolidated financial statements as of December 31, 2021, and the resulting effects have not been reflected in the consolidated financial statements.

(9) The Korea Institute of Energy Technology   (KENTECH) was established in April, 2020, in accordance with the “Basic plan for the establishment of KENTECH (July, 2019)”. By the special law to create KENTECH, the Company, government, and local government may contribute to the fund. The Company will decide whether to contribute to the fund on a board resolution after consulting with relevant organizations considering its financial situation by year.

F-225

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

51. Business Combination

(1) Details of the business combination that occurred for the year ended December 31, 2019 are as follows:

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

Eumseong Natural Gas Power Co., Ltd. was established in August 2019 by spin-off from Dangjin Eco Power Co., Ltd., and obtained the license for LNG combined power generation under the 8th Basic Plan for Long-Term Electricity Supply and Demand. Korea East-West Power Co., Ltd., a subsidiary of the Company, 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:

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

(*) The outstanding payment of ￦10,000 million as of December 31, 2019, has been received during the current year.

(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:

Type		Amounts
		In millions of won
Fair value of the identifiable assets
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	)
	￦		130,363

F-226

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

51. Business Combination, Continued

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

Type		Amounts
		In millions of won
Fair value of transfer price	￦		225,758
Less : Fair value of the identifiable net assets			(130,363	)
	￦		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 years ended December 31, 2019 and 2020 are as follows:

Type		2019			2020
		In millions of won
Cash paid for the acquisition	￦		156,700			10,000
Less: Cash and cash equivalents received			(2,389	)		0
	￦		154,311			10,000

(6) Fees for legal service, due diligence and others relating to the business combination amounted to ￦ 24 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.

F-227

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

52. Subsequent Events

(1) Subsequent to December 31, 2021, the Company and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd. and Korea East-West Power Co., Ltd. issued corporate bonds for the purposes of repayment of existing debts and others as follows:

Company	Type	Issue date		Maturity		Interest rate			Amount
	In millions of won and thousands of USD
Korea Electric Power Corporation	#1117 Corporate bond		2022.01.04		2025.01.04		2.33	%		KRW 150,000
	#1118 Corporate bond		2022.01.04		2027.01.04		2.53	%		KRW 200,000
	#1119 Corporate bond		2022.01.06		2029.01.06		2.75	%		KRW 200,000
	#1120 Corporate bond		2022.01.06		2032.01.06		2.83	%		KRW 100,000
	#1121 Corporate bond		2022.01.10		2025.01.10		2.50	%		KRW 270,000
	#1122 Corporate bond		2022.01.10		2029.01.10		2.83	%		KRW 200,000
	#1123 Corporate bond		2022.01.12		2027.01.12		2.69	%		KRW 280,000
	#1124 Corporate bond		2022.01.12		2032.01.12		2.90	%		KRW 120,000
	#1125 Corporate bond		2022.01.19		2025.01.19		2.58	%		KRW 160,000
	#1126 Corporate bond		2022.01.19		2029.01.19		2.92	%		KRW 100,000
	#1127 Corporate bond		2022.01.25		2027.01.25		2.80	%		KRW 150,000
	#1128 Corporate bond		2022.01.25		2032.01.25		2.98	%		KRW 100,000
	#1129 Corporate bond		2022.01.27		2025.01.27		2.70	%		KRW 190,000
	#1130 Corporate bond		2022.01.27		2029.01.27		2.99	%		KRW 140,000
	#1131 Corporate bond		2022.02.04		2027.02.04		2.97	%		KRW 190,000
	#1132 Corporate bond		2022.02.04		2032.02.04		3.05	%		KRW 160,000
	#1133 Corporate bond		2022.02.08		2025.02.08		2.80	%		KRW 150,000
	#1134 Corporate bond		2022.02.08		2029.02.08		3.10	%		KRW 140,000
	#1135 Corporate bond		2022.02.10		2027.02.10		3.03	%		KRW 300,000
	#1136 Corporate bond		2022.02.10		2032.02.10		3.17	%		KRW 70,000
	#1137 Corporate bond		2022.02.14		2025.02.14		2.89	%		KRW 200,000
	#1138 Corporate bond		2022.02.14		2029.02.14		3.19	%		KRW 90,000
	#1139 Corporate bond		2022.02.18		2025.02.18		2.86	%		KRW 180,000
	#1140 Corporate bond		2022.02.18		2027.02.18		3.08	%		KRW 110,000
	#1141 Corporate bond		2022.02.22		2025.02.22		2.93	%		KRW 160,000
	#1142 Corporate bond		2022.02.22		2027.02.22		3.15	%		KRW 130,000
	#1143 Corporate bond		2022.02.25		2025.02.25		2.82	%		KRW 120,000
	#1144 Corporate bond		2022.02.25		2027.02.25		3.09	%		KRW 40,000
	#1145 Corporate bond		2022.03.02		2025.03.02		2.85	%		KRW 150,000
	#1146 Corporate bond		2022.03.02		2027.03.02		3.12	%		KRW 160,000
	#1147 Corporate bond		2022.03.04		2025.03.04		2.84	%		KRW 190,000
	#1148 Corporate bond		2022.03.04		2027.03.04		3.12	%		KRW 90,000
	#1149 Corporate bond		2022.03.04		2029.03.04		3.15	%		KRW 20,000
	#1150 Corporate bond		2022.03.07		2025.03.07		2.82	%		KRW 160,000
	#1151 Corporate bond		2022.03.07		2027.03.07		3.11	%		KRW 90,000
	#1152 Corporate bond		2022.03.07		2029.03.07		3.15	%		KRW 50,000
	#1153 Corporate bond		2022.03.10		2025.03.10		2.88	%		KRW 170,000
	#1154 Corporate bond		2022.03.10		2027.03.10		3.10	%		KRW 130,000
	#1155 Corporate bond		2022.03.16		2025.03.16		2.89	%		KRW 210,000
	#1156 Corporate bond		2022.03.16		2027.03.16		3.10	%		KRW 130,000
	#1157 Corporate bond		2022.03.18		2025.03.18		2.93	%		KRW 180,000
	#1158 Corporate bond		2022.03.18		2027.03.18		3.09	%		KRW 180,000
	#1159 Corporate bond		2022.03.24		2024.03.24		2.73	%		KRW 160,000
	#1160 Corporate bond		2022.03.24		2027.03.24		3.29	%		KRW 80,000
	#1161 Corporate bond		2022.03.28		2052.03.28		3.30	%		KRW 130,000
	#1162 Corporate bond		2022.03.30		2024.03.30		3.01	%		KRW 100,000
	#1163 Corporate bond		2022.03.30		2025.03.30		3.35	%		KRW 60,000
	#1164 Corporate bond		2022.03.30		2027.03.30		3.49	%		KRW 30,000
	#1165 Corporate bond		2022.04.01		2024.04.01		3.07	%		KRW 150,000
	#1166 Corporate bond		2022.04.01		2025.04.01		3.45	%		KRW 160,000
	#1167 Corporate bond		2022.04.01		2032.04.01		3.50	%		KRW 10,000
	#1168 Corporate bond		2022.04.05		2024.04.05		3.19	%		KRW 130,000
	#1169 Corporate bond		2022.04.05		2025.04.05		3.46	%		KRW 70,000
	#1170 Corporate bond		2022.04.05		2027.04.05		3.61	%		KRW 70,000
	#1171 Corporate bond		2022.04.07		2024.04.07		3.36	%		KRW 100,000
	#1172 Corporate bond		2022.04.07		2025.04.07		3.58	%		KRW 50,000
	#1173 Corporate bond		2022.04.07		2027.04.07		3.70	%		KRW 20,000
	#1174 Corporate bond		2022.04.11		2024.04.11		3.65	%		KRW 160,000
	#1175 Corporate bond		2022.04.11		2025.04.11		3.71	%		KRW 40,000
	#1176 Corporate bond		2022.04.11		2027.04.11		3.84	%		KRW 10,000
	#1177 Corporate bond		2022.04.15		2024.04.15		3.55	%		KRW 230,000

F-228

KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2020 and 2021

52. Subsequent Events, Continued

(1) Subsequent to December 31, 2021, the Company and its subsidiaries including Korea Hydro & Nuclear Power Co., Ltd., Korea South-East Power Co., Ltd., Korea Midland Power Co., Ltd., Korea Western Power Co., Ltd., Korea Southern Power Co., Ltd. and Korea East-West Power Co., Ltd. issued corporate bonds for the purposes of repayment of existing debts and others as follows, continued:

Company	Type	Issue date		Maturity		Interest rate			Amount
	In millions of won and thousands of USD
Korea Electric Power Corporation	#1178 Corporate bond		2022.04.15		2025.04.15		3.70	%		KRW 60,000
	#1179 Corporate bond		2022.04.15		2027.04.15		3.72	%		KRW 10,000
	#1180 Corporate bond		2022.04.19		2023.10.19		3.29	%		KRW 230,000
	#1181 Corporate bond		2022.04.19		2025.04.19		3.70	%		KRW 80,000
	#1182 Corporate bond		2022.04.21		2023.10.21		3.19	%		KRW 200,000
	#1183 Corporate bond		2022.04.21		2025.04.21		3.71	%		KRW 150,000
	#1184 Corporate bond		2022.04.21		2052.04.21		3.72	%		KRW 100,000
	#1185 Corporate bond		2022.04.26		2024.04.26		3.30	%		KRW 130,000
	#1186 Corporate bond		2022.04.26		2025.04.26		3.65	%		KRW 130,000
	#1187 Corporate bond		2022.04.26		2027.04.26		3.77	%		KRW 60,000
	#1188 Corporate bond		2022.04.28		2024.04.28		3.35	%		KRW 210,000
	#1189 Corporate bond		2022.04.28		2025.04.28		3.70	%		KRW 260,000
	#1190 Corporate bond		2022.04.28		2027.04.28		3.77	%		KRW 30,000
Korea Hydro & Nuclear Power Co., Ltd.	#63-1 Corporate bond		2022.02.17		2027.02.17		2.81	%		KRW 40,000
	#63-2 Corporate bond		2022.02.17		2042.02.17		3.04	%		KRW 60,000
	#63-3 Corporate bond		2022.02.17		2052.02.17		2.97	%		KRW 50,000
	#64-1 Corporate bond		2022.03.11		2042.03.11		3.10	%		KRW 70,000
	#64-2 Corporate bond		2022.03.11		2052.03.11		3.02	%		KRW 80,000
	#65-1 Corporate bond		2022.04.22		2027.04.22		3.68	%		KRW 30,000
	#65-2 Corporate bond		2022.04.22		2042.04.22		3.84	%		KRW 60,000
	#65-3 Corporate bond		2022.04.22		2052.04.22		3.72	%		KRW 20,000
Korea South-East Power Co., Ltd.	Corporate bond		2022.03.28		2027.03.28		3.30	%		KRW 10,000
	Corporate bond		2022.03.28		2052.03.28		3.13	%		KRW 40,000
	Corporate bond		2022.03.28		2025.03.28		3.24	%		KRW 90,000
Korea Midland Power Co., Ltd.	#65-1 non-guaranteedCorporate bond		2022.01.17		2032.01.17		2.85	%		KRW 10,000
	#65-2 non-guaranteedCorporate bond		2022.01.17		2042.01.17		2.83	%		KRW 10,000
	#66-1 non-guaranteedCorporate bond		2022.01.24		2025.01.24		2.83	%		KRW 40,000
	#66-2 non-guaranteedCorporate bond		2022.01.24		2027.01.24		2.95	%		KRW 30,000
	#66- 3 non-guaranteedCorporate bond		2022.01.24		2052.01.24		2.87	%		KRW 50,000
	#67 non-guaranteedCorporate bond		2022.02.17		2052.02.17		3.01	%		KRW 40,000
	#9 Foreign currencyCorporate bond		2022.04.21		2027.04.21		3.63	%		USD 300,000
Korea Western Power Co., Ltd.	#51-1 Corporate bond		2022.01.25		2025.01.24		2.76	%		KRW 50,000
	#51-2 Corporate bond		2022.01.25		2042.01.24		2.78	%		KRW 20,000
	#52-1 Corporate bond		2022.03.28		2025.03.28		3.18	%		KRW 90,000
	#52-2 Corporate bond		2022.03.28		2042.03.28		3.35	%		KRW 30,000
	#52-3 Corporate bond		2022.03.28		2052.03.28		3.20	%		KRW 10,000
Korea Southern Power Co., Ltd.	Corporate bond		2022.03.24		2025.03.24		3.13	%		KRW 40,000
	Corporate bond		2022.03.24		2042.03.24		3.29	%		KRW 60,000
	Corporate bond		2022.04.26		2025.04.26		3.63	%		KRW 160,000
	Corporate bond		2022.04.26		2025.04.26		3.63	%		KRW 10,000
	Corporate bond		2022.04.26		2052.04.26		3.60	%		KRW 20,000
Korea East-West Power Co., Ltd.	Corporate bond		2022.04.22		2025.04.22		3.75	%		KRW 60,000

(2) The Company established the right of pledge on the shares of Jeju Hanlim Offshore Wind Co., Ltd. with other shareholders to procure project financing of Jeju Hanlim Offshore Wind Co., Ltd. which is a subsidiary of the Company on February 25, 2022.

(3) The ongoing armed conflict between Russia and Ukraine in the territory of Ukraine, which started in February 2022, and relevant sanctions against Russia and Belarus imposed by the international community can impact not only sanctioned entities of Russia and Belarus but also the entities doing business directly or indirectly with Ukraine, Russia or Belarus and the entities exposed directly or indirectly to industries or economy of those countries. The Company has accounted for the event as a non-adjusting event after the reporting period. The Company is unable to make reasonable estimates of the future financial impact of the Ukraine-Russia conflict on the Company’s financial position or performance.

F-229