UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

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

the Securities Exchange Act of 1934

For the Month of June 2025

Commission File Number 001-13372

 

 

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

 

 

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

(Address of principal executive offices)

 

 

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

Form 20-F ☒    Form 40-F ☐

 

SIGNATURES

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

 

Date: June 17, 2025

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Condensed consolidated interim financial statements

March 31, 2025

with the independent auditors’ review report

TABLE OF CONTENTS

 

		Page
Independent auditors’ review report
Consolidated interim statements of financial position			1
Consolidated interim statements of comprehensive income			3
Consolidated interim statements of changes in equity			5
Consolidated interim statements of cash flows			7
Notes to the consolidated interim financial statements			9

Independent Auditors’ Review Report

(English translation of a report originally issued in Korean)

To the Board of Directors and Shareholders of

Korea Electric Power Corporation

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of Korea Electric Power Corporation and its subsidiaries (the “Group”), which comprise the condensed consolidated interim statement of financial position as of March 31, 2025, the condensed consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month period ended March 31, 2025 and notes, comprising of material accounting policy information and other explanatory information.

Management’s Responsibility

Management is responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”) No. 1034, ‘Interim Financial Reporting’ and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Review Responsibility

Our responsibility is to issue a report on these condensed consolidated interim financial statements based on our review.

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements referred to above do not present fairly, in all material respects, in accordance with K-IFRS No. 1034, ‘Interim Financial Reporting’.

Other Matters

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

The condensed consolidated interim statements of comprehensive loss, change in equity and cash flows for the three-month period ended March 31, 2024, presented for comparative purposes, were reviewed by another auditor. The review report dated May 16, 2024, stated that nothing had come to their attention that caused them to believe that those consolidated interim financial statements did not present fairly, in all material respects, in accordance with K-IFRS No. 1034, ‘Interim Financial Reporting’.

The consolidated statement of financial position as of December 31, 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, which are not accompanying this report, have been audited by another auditor in accordance with Korean Standards on Auditing and their report thereon, dated March 11, 2025, expressed an unmodified opinion. The accompanying consolidated statement of financial position as of December 31, 2024, presented for comparative purposes, is not different from that audited by another auditor from which it was derived in all material respects.

 

Seoul, Korea

May 15, 2025

 

KOREA ELECTRIC POWER CORPORATION

AND ITS SUBSIDIARIES

Consolidated interim financial statements

For each of the three-month periods ended March 31, 2025 and 2024

“The accompanying consolidated interim financial statements, including all footnotes and disclosures, have been prepared by, and are the responsibility of, the Group.”

Dong-Cheol Kim

Chief Executive Officer

Korea Electric Power Corporation

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of financial position

As of March 31, 2025 and December 31, 2024 (Unaudited)

 

In millions of won		Note				March 31, 2025				December 31, 2024
Assets
Current assets
Cash and cash equivalents			5,6,7,44			W	2,442,980				2,382,979
Current financial assets, net			5,6,9,11,12,13,44,45,46				5,104,546				3,494,717
Trade and other receivables, net			5,8,20,24,44,45,46				11,279,269				12,216,216
Inventories, net			14				9,791,697				9,769,236
Current income tax assets							95,617				78,495
Current non-financial assets			15				1,286,914				1,267,914
Assets held-for-sale			41				28,868				45,648
Total current assets							30,029,891				29,255,205
Non-current assets
Non-current financial assets, net			5,6,9,10,11,12,13,44,46				4,714,821				4,945,990
Non-current trade and other receivables, net			5,8,20,44,45,46				3,089,051				3,157,409
Property, plant and equipment, net			18,24,27,48				183,845,454				182,982,763
Investment properties, net			19,27				216,988				228,984
Goodwill			16				99,247				99,179
Intangible assets other than goodwill, net			21,27				1,056,423				1,046,918
Investments in associates			4,17				6,840,066				6,704,754
Investments in joint ventures			4,17				6,345,101				4,581,340
Defined benefit assets, net			25				21,606				40,425
Deferred tax assets							13,301,165				13,436,624
Non-current non-financial assets			15				353,284				328,204
Total non-current assets							219,883,206				217,552,590
Total assets			4			W	249,913,097				246,807,795

(Continued)

 

1

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of financial position, Continued

As of March 31, 2025 and December 31, 2024 (Unaudited)

 

In millions of won		Note				March 31, 2025				December 31, 2024
Liabilities
Current liabilities
Trade and other payables			5,22,24,44,46			W	8,526,811				9,411,315
Current financial liabilities			5,12,23,44,46				43,521,189				44,465,866
Current income tax liabilities							1,210,192				970,496
Current non-financial liabilities			20,28,29				7,027,883				6,327,141
Current provisions			26,44				3,138,495				2,793,971
Total current liabilities							63,424,570				63,968,789
Non-current liabilities
Non-current trade and other payables			5,22,24,44,46				4,500,784				4,609,241
Non-current financial liabilities			5,12,23,44,46				89,994,826				88,352,359
Non-current non-financial liabilities			28,29				13,471,514				13,281,520
Employee benefits liabilities, net			25,44				1,600,749				1,451,547
Deferred tax liabilities							5,849,674				5,944,472
Non-current provisions			26,44				27,959,858				27,837,034
Total non-current liabilities							143,377,405				141,476,173
Total liabilities			4			W	206,801,975				205,444,962
Equity
Contributed capital			1,30,44
Share capital						W	3,209,820				3,209,820
Share premium							843,758				843,758
							4,053,578				4,053,578
Retained earnings			31
Legal reserves							1,604,910				1,604,910
Voluntary reserves							567,469				—
Unappropriated retained earnings							20,052,687				18,523,337
							22,225,066				20,128,247
Other components of equity			33
Other capital surplus							1,601,138				1,600,812
Accumulated other comprehensive income							1,368,224				1,424,014
Other equity							12,708,585				12,708,585
							15,677,947				15,733,411
Equity attributable to owners of the controlling company							41,956,591				39,915,236
Non-controlling interests			16,32				1,154,531				1,447,597
Total equity						W	43,111,122				41,362,833
Total liabilities and equity						W	249,913,097				246,807,795

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

 

2

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of comprehensive income

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won, except per share information		Note				March 31, 2025				March 31, 2024
Sales			4,34,44,46
Sales of goods			2			W	23,809,449				22,850,748
Sales of services							146,692				167,700
Sales of construction services			20				56,197				85,506
Revenue related to transfer of assets from customers			28				211,646				188,789
							24,223,984				23,292,743
Cost of sales			14,25,42,46
Cost of sales of goods							(19,195,043	)			(21,045,353	)
Cost of sales of services							(141,105	)			(127,530	)
Cost of sales of construction services							(420,796	)			(130,304	)
							(19,756,944	)			(21,303,187	)
Gross profit							4,467,040				1,989,556
Selling and administrative expenses			25,35,42,46				(713,433	)			(690,213	)
Operating profit			4				3,753,607				1,299,343
Other income			36				92,807				125,394
Other expenses			36				(19,878	)			(102,516	)
Other gains, net			37				98,572				25,064
Finance income			5,12,38				413,301				987,226
Finance expenses			5,12,39				(1,231,655	)			(2,001,253	)
Profit (loss) related to associates, joint ventures and subsidiaries			4,16,17
Gain on valuation of investments in associates and joint ventures							318,456				298,870
Gain on disposal of investments in associates and joint ventures							41				185,339
Loss on valuation of investments in associates and joint ventures							(193,377	)			(79,682	)
							125,120				404,527
Profit before income tax							3,231,874				737,785
Income tax expense			40				(870,166	)			(141,850	)
Profit for the period						W	2,361,708				595,935

(Continued)

 

3

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of comprehensive income, Continued

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won, except per share information		Note				March 31, 2025				March 31, 2024
Other comprehensive income (loss), net of tax			5,12,25,31,33
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans			25,31			W	(100,137	)			(33,665	)
Share in other comprehensive income (loss) of associates and joint ventures			31				(248	)			635
Net change in fair value of equity investments at fair value through other comprehensive income (loss)			33				(39,754	)			66,174
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			5,12,33				10,463				1,501
Foreign currency translation of foreign operations			33				24,557				35,109
Share in other comprehensive income (loss) of associates and joint ventures			33				(52,419	)			249,513
Other comprehensive income (loss) for the period							(157,538	)			319,267
Total comprehensive income for the period						W	2,204,170				915,202
Profit attributable to:
Owners of the controlling company			43			W	2,328,246				561,462
Non-controlling interests							33,462				34,473
						W	2,361,708				595,935
Total comprehensive income attributable to:
Owners of the controlling company						W	2,177,767				857,341
Non-controlling interests							26,403				57,861
						W	2,204,170				915,202
Earnings per share (in won)			43
Basic and diluted earnings per share						W	3,627				875

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

 

4

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of changes in equity

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won		Equity attributable to owners of the controlling company																Non- controlling interests
		Contributed capital				Retained earnings				Other components of equity				Subtotal								Total equity
Balance as of January 1, 2024		W	4,053,578				16,338,262				15,453,203				35,845,043				1,419,707				37,264,750
Total comprehensive income (loss) for the period
Profit for the period			—				561,462				—				561,462				34,473				595,935
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans, net of tax			—				(35,182	)			—				(35,182	)			1,517				(33,665	)
Share of other comprehensive income of associates and joint ventures, net of tax			—				635				—				635				—				635
Net change in fair value of financial assets at fair value through other comprehensive income, net of tax			—				—				66,173				66,173				1				66,174
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				1,089				1,089				412				1,501
Foreign currency translation of foreign operations, net of tax			—				—				13,651				13,651				21,458				35,109
Share of other comprehensive income of associates and joint ventures, net of tax			—				—				249,513				249,513				—				249,513
Transactions with owners of the Group, recognized directly in equity
Dividends paid			—				—				—				—				(57,926	)			(57,926	)
Additional paid-in capital and others			—				—				—				—				(5,296	)			(5,296	)
Transactions between consolidated entities			—				—				29				29				—				29
Dividends paid for hybrid bonds			—				—				—				—				(2,553	)			(2,553	)
Others
Transfer of revaluation reserve			—				586,394				(586,394	)			—				—				—
Balance as of March 31, 2024		W	4,053,578				17,451,571				15,197,264				36,702,413				1,411,793				38,114,206

 

(Continued)

5

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of changes in equity, Continued

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won		Equity attributable to owners of the controlling company																Non- controlling interests
		Contributed capital				Retained earnings				Other components of equity				Subtotal								Total equity
Balance as of January 1, 2025		W	4,053,578				20,128,247				15,733,411				39,915,236				1,447,597				41,362,833
Total comprehensive income (loss) for the period
Profit for the period			—				2,328,246				—				2,328,246				33,462				2,361,708
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans, net of tax			—				(94,441	)			—				(94,441	)			(5,696	)			(100,137	)
Share of other comprehensive loss of associates and joint ventures, net of tax			—				(248	)			—				(248	)			—				(248	)
Net change in fair value of financial assets at fair value through other comprehensive loss, net of tax			—				—				(39,752	)			(39,752	)			(2	)			(39,754	)
Items that may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax			—				—				11,230				11,230				(767	)			10,463
Foreign currency translation of foreign operations, net of tax			—				—				25,151				25,151				(594	)			24,557
Share of other comprehensive loss of associates and joint ventures, net of tax			—				—				(52,419	)			(52,419	)			—				(52,419	)
Transactions with owners of the Group, recognized directly in equity
Dividends paid			—				(136,738	)			—				(136,738	)			(74,241	)			(210,979	)
Additional paid-in capital and others			—				—				245				245				(5,960	)			(5,715	)
Transactions between consolidated entities			—				—				81				81				(7,140	)			(7,059	)
Dividends paid for hybrid bonds			—				—				—				—				(2,128	)			(2,128	)
Repayment of hybrid bond			—				—				—				—				(230,000	)			(230,000	)
Balance as of March 31, 2025		W	4,053,578				22,225,066				15,677,947				41,956,591				1,154,531				43,111,122

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

 

6

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of cash flows

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won		March 31, 2025				March 31, 2024
Cash flows from operating activities
Profit for the period		W	2,361,708				595,935
Adjustments to reconcile profit for the period to net cash provided by operating activities:
Income tax expense			870,166				141,850
Depreciation			3,493,162				3,512,295
Amortization			40,299				40,504
Retirement benefit expenses			112,443				101,376
Bad debt expense			10,875				12,721
Interest expense			1,117,124				1,151,729
Loss on disposal of financial assets			735				27
Loss on disposal of property, plant and equipment			37,158				17,983
Loss on abandonment of property, plant and equipment			34,971				37,646
Loss on disposal of intangible assets			13				110
Increase in provisions, net			762,929				484,318
Loss (gain) on foreign currency translation, net			(26,487	)			733,108
Gain on valuation of financial assets at fair value through profit or loss			(14,609	)			(36,671	)
Loss on valuation of financial assets at fair value through profit or loss			215				238
Gain on valuation and transaction of derivative instruments, net			(81,689	)			(710,682	)
Gain on valuation of investments in associates and joint ventures, net			(125,079	)			(219,188	)
Gain on disposal of financial assets			(10,564	)			(8,108	)
Gain on disposal of property, plant and equipment			(5,363	)			(34,053	)
Gain on disposal of intangible assets			—				(11	)
Gain on disposal of associates and joint ventures			(41	)			(185,339	)
Interest income			(111,988	)			(118,441	)
Dividends income			(13,551	)			(78	)
Others, net			(104,736	)			8,642
			5,985,983				4,929,976
Changes in:
Trade receivables			1,069,490				1,375,173
Non-trade receivables			(134,013	)			(176,741	)
Accrued income			69,228				(82,997	)
Other receivables			30,026				25,851
Other current assets			(382,332	)			(211,654	)
Inventories			(456,199	)			(206,012	)
Other non-current assets			(98,859	)			(14,620	)
Trade payables			(675,647	)			213,202
Non-trade payables			47,840				508,405
Accrued expenses			(99,797	)			(281,804	)
Other current liabilities			799,853				709,886
Other non-current liabilities			260,656				124,094
Investments in associates and joint ventures (dividends received)			38,623				72,620
Provisions			(325,163	)			(218,046	)
Payments of employee benefit obligations			(103,229	)			(28,549	)
Plan assets			(5	)			(180	)
		W	40,472				1,808,628

 

(Continued)

7

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Consolidated interim statements of cash flows, Continued

For the three-month periods ended March 31, 2025 and 2024 (Unaudited)

 

In millions of won		March 31, 2025				March 31, 2024
Cash generated from operating activities		W	8,388,163				7,334,539
Dividends received			13,508				78
Interest paid			(1,184,055	)			(1,130,112	)
Interest received			81,476				85,509
Income taxes paid			(545,998	)			(57,495	)
Net cash flows provided by operating activities			6,753,094				6,232,519
Cash flows from investing activities
Proceeds from disposals of investments in associates and joint ventures			12,086				199,718
Acquisition of investments in associates and joint ventures			(1,934,522	)			(130,524	)
Proceeds from disposals of property, plant and equipment			58,494				120,728
Acquisition of property, plant and equipment			(3,772,784	)			(3,709,684	)
Proceeds from disposals of intangible assets			498				341
Acquisition of intangible assets			(19,232	)			(21,460	)
Proceeds from disposals of financial assets			2,676,313				1,690,588
Acquisition of financial assets			(4,134,278	)			(1,733,010	)
Increase in loans			(46,357	)			(37,155	)
Collection of loans			139,380				70,040
Increase in deposits			(41,850	)			(56,981	)
Decrease in deposits			39,198				49,169
Proceeds from disposals of assets held-for-sale			14,363				—
Receipt of government grants			4,954				11,564
Other cash outflow from investing activities, net			(52,128	)			(79,289	)
Net cash flows used in investing activities			(7,055,865	)			(3,625,955	)
Cash flows from financing activities
Repayment of short-term borrowings, net			(203,040	)			(4,157,627	)
Proceeds from long-term borrowings			461,841				480,151
Proceeds from debt securities			8,481,212				2,748,184
Repayment of long-term borrowings			(51,929	)			(61,909	)
Repayment of debt securities			(7,942,524	)			(2,959,450	)
Payment of lease liabilities			(188,632	)			(184,957	)
Settlement of derivative instruments, net			46,860				106,862
Change in non-controlling interests			(11,133	)			(331	)
Repayment of hybrid bond			(230,000	)			—
Dividends paid for hybrid bond			(2,128	)			(2,553	)
Net cash flows provided by (used in) financing activities			360,527				(4,031,630	)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate fluctuations			57,756				(1,425,066	)
Effect of exchange rate fluctuations on cash held			2,245				32,519
Net increase (decrease) in cash and cash equivalents			60,001				(1,392,547	)
Cash and cash equivalents as of January 1, 2025 and 2024			2,382,979				4,342,887
Cash and cash equivalents as of March 31, 2025 and 2024		W	2,442,980				2,950,340

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

 

8

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements

March 31, 2025 and 2024 (unaudited)

 

1.	Reporting Entity (Description of the controlling company)

Korea Electric Power Corporation (“KEPCO”), the controlling company as defined in International Financial Reporting Standards as adopted by the Republic of Korea (“KIFRS”) 1110 Consolidated Financial Statements, was incorporated on January 1, 1982 in accordance with the Korea Electric Power Corporation Act (the “KEPCO Act”) to engage in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. KEPCO’s stock was listed on the Korea Stock Exchange on August 10, 1989 and KEPCO listed its Depository Receipts (DR) on the New York Stock Exchange on October 27, 1994. KEPCO’s head office is located in Naju, Jeollanam-do.

As of March 31, 2025, KEPCO’s share capital amounts to W3,209,820 million and KEPCO’s shareholders are as follows:

 

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

 

(*)	The number of shares held by foreign shareholders is 97,414,248 shares (15.17%) as of December 31, 2024, the most recent closing date of the shareholder list.

In accordance with the Restructuring Plan enacted on January 21, 1999 by the Ministry of Trade, Industry and Energy, KEPCO spun off its power generation divisions on April 2, 2001, resulting in the establishment of six power generation subsidiaries.

 

2.	Basis of Preparation

 

(1)	Statement of compliance

These consolidated interim financial statements have been prepared in accordance with KIFRS 1034 Interim Financial Reporting, enacted by the Act on External Audits of Stock Companies in the Republic of Korea. The accompanying consolidated interim financial statements have been translated into English from the Korean language financial statements. In the event of any differences in interpreting the financial statements or the independent auditors’ review report thereon, the Korean version, which is used for regulatory reporting purposes, shall prevail.

 

(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 instruments at fair value through profit or loss;

 

•

financial instruments at fair value through other comprehensive income or loss;

 

•

derivative financial instruments are measured at fair value; and

 

•

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.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

2.	Basis of Preparation, Continued

 

(4)	Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with KIFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Meanwhile, the Group considers climate-related risks resulting from climate change and the establishment of a global greenhouse gas reduction implementation system in its estimates and assumptions. Climate-related risks increase the uncertainty of the estimates and assumptions considered in various items of the financial statements, and the Group carefully monitors climate-related changes and developments, such as new climate-related legislation, even if it does not have a material impact on current measurements.

The followings are the key assumptions and other key sources of estimation uncertainty at the end of the reporting period, which 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, intangible assets other than goodwill and estimations on provision for decommissioning costs.

The Group reviews the estimated useful lives of property, plant and equipment, intangible assets other than goodwill at the end of each annual reporting period. Management’s assumptions could affect the determination of estimated economic useful lives.

The Group records the present value of estimated decommissioning costs as a liability in the period in which the Group incurs a legal obligation associated with the retirement of long-lived assets that result from acquisition, construction, development and/or normal use of the assets. The Group is required to record a liability for the dismantling (demolition) of nuclear power plants and disposal of spent fuel and low and intermediate radioactive wastes. The measurement of such liability is subject to change based on change in estimated cash flow, inflation rate, discount rate, and expected timing of decommissioning.

 

(ii)

Deferred tax

The Group recognizes deferred tax assets and liabilities based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities of each consolidated taxpaying entity. However, the amount of deferred tax assets may be different if the Group 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 Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has established control framework with respect to the measurement of fair values. The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of KIFRS including the level in the fair value hierarchy in which such valuation techniques should be classified.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

2.	Basis of Preparation, Continued

 

(4)	Use of estimates and judgments, continued

 

(iv)

Defined employee benefit liabilities

The Group offers its employees defined benefit plans. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. For actuarial valuations, certain inputs such as discount rates and future salary increases are estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature (refer to Note 25).

 

(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 March 31, 2025 and 2024 are W2,004,454 million and W2,054,355 million, respectively.

 

(vi)

Construction contracts

The Group recognizes revenue over time using the cost-based input method which represents a faithful depiction of the Group’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 Group’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.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

2.	Basis of Preparation, Continued

 

(5)	Changes in accounting policies

The Group has applied the following new accounting standards and amendments for their annual reporting period commencing January 1, 2025. The amendment has no significant impact on the Group’s consolidated interim financial statements. The Group has not early adopted any other standards, interpretations or amendments that have been issued but not yet effective.

Amendments to KIFRS 1021 - Assessment of exchangeability and determination of spot exchange rate when exchangeability is lacking

The amendments to KIFRS 1021 The Effects of Changes in Foreign Exchange Rates specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments require disclosure of information that enables users of financial statements to understand the risk and impact of a currency not being exchangeable, or is expected to affect, an entity’s financial performance, financial position, and cash flows.

The amendments apply to annual reporting periods beginning on or after January 1, 2025. When applying this amendment, the Group does not restate comparative information.

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

3.	Material Accounting Policies

The accounting policies applied by the Group in these consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as of and for the year ended December 31, 2024, except for the changes described in Note 2.(5).

 

4.	Segment, Geographic and Other Information

 

(1)	Segment determination and explanation of the measurements

The Group’s operating segments are its business components that generate discrete financial information that is reported to and regularly reviewed by chief operating decision makers of the Group including but not limited to the Chief Executive Officer, for the purpose of resource allocation and assessment of segment performance. The Group’s reportable segments classified in accordance with KIFRS 1108 are “Transmission and distribution”, “Electric power generation (Nuclear)”, “Electric power generation (Non-nuclear)”, “Plant maintenance & engineering service” and “Others”; others mainly represent the business unit that manages the Group’s foreign operations.

Segment operating profit (loss) is determined in the same way that consolidated operating profit is determined under KIFRS without any adjustment for corporate allocations. The accounting policies used by each segment are consistent with the accounting policies used in the preparation of the consolidated financial statements. Segment assets and liabilities are determined based on separate financial statements of the entities instead of on a consolidated basis. There are various transactions between the reportable segments, including sales of property, plant and equipment and so on, that are conducted on an 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.

 

13

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

4.	Segment, Geographic and Other Information, Continued

 

(2)	The financial information of the segments for each of the three-month periods ended March 31, 2025 and 2024, respectively, is as follows:

 

In millions of won
For the three-month period ended March 31, 2025
Segment		Total segment revenue				Intersegment revenue				Revenue from external customers				Operating profit (loss)				Depreciation and amortization				Interest income				Interest expense				Profit (loss) related to associates, joint ventures and subsidiaries
Transmission and distribution		W	23,861,484				573,045				23,288,439				1,900,916				1,110,839				31,207				685,537				44,440
Electric power generation (Nuclear)			4,274,879				4,264,934				9,945				1,285,494				1,332,043				13,149				207,947				(14,182	)
Electric power generation (Non-nuclear)			7,029,030				6,371,859				657,171				576,602				1,034,045				10,352				165,349				94,646
Plant maintenance & engineering service			669,609				558,920				110,689				30,759				42,369				8,755				2,021				216
Others			563,004				405,264				157,740				22,962				62,442				63,113				78,154				—
Consolidation adjustments			(12,174,022	)			(12,174,022	)			—				(63,126	)			(48,277	)			(14,588	)			(21,884	)			—
		W	24,223,984				—				24,223,984				3,753,607				3,533,461				111,988				1,117,124				125,120
In millions of won
For the three-month period ended March 31, 2024
Segment		Total segment revenue				Intersegment revenue				Revenue from external customers				Operating profit (loss)				Depreciation and amortization				Interest income				Interest expense				Profit (loss) related to associates, joint ventures and subsidiaries
Transmission and distribution		W	22,782,168				500,086				22,282,082				1,261,893				1,081,830				28,101				741,673				178,758
Electric power generation (Nuclear)			2,697,185				2,647,385				49,800				(277,567	)			1,352,647				18,791				179,407				(5,618	)
Electric power generation (Non-nuclear)			7,849,482				7,133,959				715,523				306,773				1,066,695				20,201				186,822				46,164
Plant maintenance & engineering service			782,106				679,651				102,455				99,109				38,350				5,756				1,947				185,223
Others			527,088				384,205				142,883				12,238				61,180				59,009				61,269				—
Consolidation adjustments			(11,345,286	)			(11,345,286	)			—				(103,103	)			(47,903	)			(13,417	)			(19,389	)			—
		W	23,292,743				—				23,292,743				1,299,343				3,552,799				118,441				1,151,729				404,527

 

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KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

4.	Segment, Geographic and Other Information, Continued

 

(3)	The information related to segment assets and segment liabilities as of March 31, 2025 and December 31, 2024 is as follows:

 

In millions of won
As of March 31, 2025
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	141,807,325				8,600,177				1,603,407				119,779,204
Electric power generation (Nuclear)			74,735,587				157,745				854,613				48,843,613
Electric power generation (Non-nuclear)			66,289,605				4,425,323				1,053,174				37,228,313
Plant maintenance & engineering service			4,463,592				1,922				35,756				1,686,980
Others			17,032,222				—				39,140				7,052,247
Consolidation adjustments			(54,415,234	)			—				87,399				(7,788,382	)
		W	249,913,097				13,185,167				3,673,489				206,801,975
In millions of won
As of December 31, 2024
Segment		Segment assets				Investments in associates and joint ventures				Acquisition of non-current assets				Segment liabilities
Transmission and distribution		W	139,472,103				6,839,513				8,417,992				120,083,068
Electric power generation (Nuclear)			72,508,359				171,956				2,629,626				47,082,862
Electric power generation (Non-nuclear)			66,834,569				4,272,928				3,862,287				36,363,754
Plant maintenance & engineering service			4,522,610				1,697				160,978				1,508,112
Others			14,977,126				—				195,451				7,073,716
Consolidation adjustments			(51,506,972	)			—				(185,981	)			(6,666,550	)
		W	246,807,795				11,286,094				15,080,353				205,444,962

 

15

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

4.	Segment, Geographic and Other Information, Continued

 

(4)	Geographic information

Electricity sales, the main operations of the Group, 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:

 

In millions of won		Revenue from external customers								Non-current assets (*2)
Geographical unit		For the three-month period ended March 31, 2025				For the three-month period ended March 31, 2024				As of March 31, 2025				As of December 31, 2024
Domestic		W	24,007,197				23,088,796				192,186,729				191,214,679
Overseas (*1)			216,787				203,947				6,569,834				4,757,463
		W	24,223,984				23,292,743				198,756,563				195,972,142

 

(*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, deferred tax assets and defined benefit assets.

 

(5)	Information on significant customers

There is no single customer who accounts for 10% or more of the Group’s revenue for each of the three-month periods ended March 31, 2025 and 2024.

 

16

KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

Notes to the consolidated interim financial statements, Continued

March 31, 2025 and 2024 (unaudited)

 

5.	Classification of Financial Instruments

 

(1)	The classification of financial assets as of March 31, 2025 and December 31, 2024 is as follows:

 

In millions of won		As of March 31, 2025
		Financial assets at fair value through profit or loss				Financial assets at fair value through other comprehensive income				Financial assets at amortized cost				Derivative assets (applying hedge accounting)				Total
Current assets
Cash and cash equivalents		W	—				—				2,442,980				—				2,442,980
Current financial assets
Current financial assets at fair value through profit or loss			2,333,715				—				—				—				2,333,715
Current financial assets at amortized costs			—				—				50,283				—				50,283
Current derivative assets			396,229				—				—				519,428				915,657
Other financial assets			—				—				1,804,891				—				1,804,891
Trade and other receivables			—				—				11,279,269				—				11,279,269
			2,729,944				—				15,577,423				519,428				18,826,795
Non-current assets
Non-current financial assets
Non-current financial assets at fair value through profit or loss			703,579				—				—				—				703,579
Non-current financial assets at fair value through other comprehensive income			—				621,935				—				—				621,935
Non-current financial assets at amortized costs			—				—				10,090				—				10,090
Non-current derivative assets			1,483,951				—				—				252,216				1,736,167
Other financial assets			—				—				1,643,050				—				1,643,050
Trade and other receivables			—				—				3,089,051				—				3,089,051
			2,187,530				621,935				4,742,191				252,216				7,803,872
		W	4,917,474				621,935				20,319,614				771,644				26,630,667

 

17