Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


FORM 6-K

 


REPORT OF FOREIGN PRIVATE ISSUER

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

the Securities Exchange Act of 1934

For the Month of February 2006

 


KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

 


167, Samseong-dong, Gangnam-gu, Seoul 135-791, 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      X            Form 40-F              

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

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                      No      X    

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            .

 



This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including by reference in the Registration Statement on Form F-3 (Registration No. 33-99550) and the Registration Statement on Form F-3 (Registration No. 333-9180).


Korea Electric Power Corporation

Non-consolidated Balance Sheets (Unaudited)

December 31, 2005 and 2004

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won     U.S. dollars  
     2005     2004     2005     2004  
Assets         

Property, Plant and Equipment

        

Utility plant

   (Won) 43,163,840     40,125,462     $ 42,609,911     39,610,525  

Less: accumulated depreciation

     (10,854,375 )   (9,107,944 )     (10,715,079 )   (8,991,060 )

Less: construction grants

     (3,640,966 )   (3,182,366 )     (3,594,241 )   (3,141,526 )
                            
     28,668,499     27,835,152       28,300,591     27,477,939  

Construction in-progress

     2,118,540     2,110,396       2,091,352     2,083,313  
                            
     30,787,039     29,945,548       30,391,944     29,561,252  
                            

Investments and others:

        

Investment securities

     26,797,485     25,462,887       26,453,588     25,136,117  

Long-term loans

     180,084     163,525       177,773     161,426  

Long-term other accounts receivable, less discount on present value

     66     88       65     87  

Currency and interest rate swaps

     549,668     312,611       542,614     308,599  

Intangibles, net

     235,040     233,016       232,024     230,026  

Other non-current assets

     151,789     148,070       149,841     146,170  
                            
     27,914,131     26,320,197       27,555,904     25,982,425  
                            

Current assets:

        

Cash and cash equivalents

     208,513     445,863       205,837     440,141  

Trade receivables, less allowance for doubtful accounts

     2,041,366     1,576,542       2,015,169     1,556,310  

Other account receivables, less allowance for doubtful accounts

     263,041     465,821       259,665     459,843  

Short-term financial instruments

     38,000     46,000       37,512     45,410  

Inventories

     92,741     70,484       91,551     69,579  

Other current assets

     282,011     46,869       278,392     46,268  
                            
     2,925,671     2,651,579       2,888,125     2,617,551  
                            

Total assets

   (Won) 61,626,841     58,917,324     $ 60,835,973     58,161,228  
                            


Korea Electric Power Corporation

Non-consolidated Balance Sheets (Unaudited), Continued

December 31, 2005 and 2004

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won     U.S. dollars  
     2005     2004     2005     2004  

Liabilities and Shareholders’ Equity

        

Shareholders’ equity:

        

Common stock of (Won) 5,000 par value

        

Authorized - 1,200,000,000 shares Issued and outstanding - 641,567,712 shares in 2005 and 640,748,573 in 2004

   (Won) 3,207,839     3,203,743     $ 3,166,672     3,162,629  

Capital surplus

     14,422,727     14,372,895       14,237,638     14,188,445  

Retained earnings

        

Appropriated

     22,209,291     19,554,340       21,924,275     19,303,396  

Unappropriated

     2,444,452     3,379,107       2,413,082     3,335,742  

Capital adjustments

     (78,646 )   (233,151 )     (77,637 )   (230,159 )
                            

Total shareholders’ equity

     42,205,662     40,276,934       41,664,030     39,760,053  
                            

Long-term liabilities:

        

Long-term borrowings

     10,430,342     10,118,184       10,296,488     9,988,336  

Reserve for retirement and severance benefits, net

     450,422     439,701       444,642     434,058  

Reserve for self insurance

     98,618     93,352       97,352     92,154  

Currency and interest rate swaps

     56,388     158,060       55,664     156,032  

Deferred income tax liabilities

     2,300,950     1,822,513       2,271,422     1,799,124  

Other long-term liabilities

     401,270     381,942       396,120     377,040  
                            
     13,737,990     13,013,752       13,561,688     12,846,744  
                            

Current liabilities:

        

Trade payables

     2,103,862     1,377,976       2,076,863     1,360,292  

Other accounts payable

     358,007     506,049       353,413     499,555  

Short-term borrowings

     71,000     200,172       70,089     197,603  

Current portion of long-term debt

     2,328,206     2,198,443       2,298,328     2,170,230  

Income tax payable

     97,189     677,599       95,942     668,903  

Accrued interest expenses

     91,100     95,858       89,931     94,628  

Dividends payable

     2,781     2,501       2,745     2,469  

Other current liabilities

     631,044     568,040       622,946     560,750  
                            
     5,683,188     5,626,638       5,610,255     5,554,430  
                            

Total liabilities

     19,421,179     18,640,390       19,171,944     18,401,175  
                            

Commitments and contingencies

        

Total shareholders’ equity and liabilities

   (Won) 61,626,841     58,917,324     $ 60,835,973     58,161,228  
                            


Korea Electric Power Corporation

Non-consolidated Statements of Income (Unaudited)

December 31, 2005 and 2004

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won     U.S. dollars  
     2005     2004     2005     2004  

Operating revenues:

        

Sale of electricity

   (Won) 24,995,344     23,490,001     $ 24,674,575     23,188,550  

Other operating revenues

     116,987     109,912       115,486     108,501  
                            
     25,112,331     23,599,913       24,790,060     23,297,051  
                            

Operating expenses

        

Power generation, transmission and distribution

     3,964,824     3,687,105       3,913,943     3,639,788  

Purchased power

     18,543,717     16,766,232       18,305,742     16,551,068  

Other operating costs

     122,680     112,369       121,106     110,927  

Selling and administrative expenses

     1,155,194     1,061,048       1,140,369     1,047,431  
                            
     23,786,414     21,626,754       23,481,159     21,349,214  
                            

Operating income

     1,325,917     1,973,159       1,308,901     1,947,837  

Other income (expense):

        

Interest income

     16,001     36,079       15,796     35,616  

Interest expense

     (472,979 )   (562,971 )     (466,909 )   (555,746 )

Gain (loss) on foreign currency transactions and translation, net

     235,946     616,592       232,918     608,679  

Donations

     (108,636 )   (81,682 )     (107,242 )   (80,634 )

Rental income

     128,469     130,237       126,820     128,566  

Equity income of affiliates

     1,912,194     1,793,808       1,887,654     1,770,788  

Gain on disposal of investments, net

     —       7,472       —       7,376  

Gain (loss) on disposal of utility plant, net

     22,359     5,887       22,072     5,811  

Valuation gain (loss) on currency and interest rate swaps, net

     127,363     20,806       125,729     20,539  

Other, net

     (5,593 )   49,376       (5,521 )   48,742  
                            
     1,855,124     2,015,604       1,831,317     1,989,737  
                            

Income before income taxes

     3,181,041     3,988,763       3,140,218     3,937,575  

Income taxes

     (732,430 )   (1,107,993 )     (723,031 )   (1,093,774 )
                            

Net income

   (Won) 2,448,611     2,880,770     $ 2,417,188     2,843,801  
                            


Korea Electric Power Corporation

Non-Consolidated Statements of Appropriations of Retained Earnings (Unaudited)

For the years ended December 31, 2005 and 2004

Date of Appropriation for 2005: March 17, 2006

Date of Appropriation for 2004: March 18, 2005

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won    U.S. dollars (note 2)
     2005     2004    2005     2004

Unappropriated retained earnings:

         

Balance at beginning of year

   (Won) —       —      $ —       —  

Change in retained earnings of affiliated company due to cumulative effect of accounting change

     (4,159 )   498,337      (4,106 )   491,942

Net income

     2,448,611     2,880,770      2,417,188     2,843,801
                         

Balance at end of year before appropriation

     2,444,452     3,379,107      2,413,082     3,335,742
                         

Appropriation of retained earnings:

         

Legal reserve

     2,048     —        2,022     —  

Reserve for investment on social overhead capital

     65,000     60,000      64,166     59,230

Reserve for research and human development

     60,000     30,000      59,230     29,615

Reserve for business expansion

     1,585,869     2,564,951      1,565,517     2,532,035

Dividends – 23% on par value at 1,150 Won per share in 2005 and 23% on par value at 1,150 Won per share in 2004

     731,535     724,156      722,147     714,863
                         
     2,444,452     3,379,107      2,413,082     3,335,742
                         

Unappropriated retained earnings to be carried over to subsequent year

   (Won) —       —      $ —       —  
                         


Korea Electric Power Corporation

Non-consolidated Statements of Cash Flows (Unaudited)

December 31, 2005 and 2004

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won     U.S. dollars  
     2005     2004     2005     2004  

Cash flows from operating activities:

        

Net income

   (Won) 2,448,611     2,880,770     $ 2,417,188     2,843,801  

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     1,860,860     1,696,501       1,836,979     1,674,730  

Utility plant removal cost

     193,232     191,777       190,752     189,316  

Provision for severance and retirement benefits

     122,383     133,450       120,812     131,737  

Bad debt expense

     23,732     19,530       23,427     19,279  

Interest income

     (4,262 )   (21,451 )     (4,207 )   (21,176 )

Interest expense

     14,091     16,275       13,910     16,066  

Gain on foreign currency translation, net

     (167,898 )   (542,002 )     (165,743 )   (535,046 )

Equity income of affiliates

     (1,912,194 )   (1,793,808 )     (1,887,654 )   (1,770,788 )

Gain on disposal of investments, net

     —       (7,472 )     —       (7,376 )

Loss (gain) on disposal of utility plant, net

     (22,359 )   (5,887 )     (22,072 )   (5,811 )

Deferred income tax expense

     264,321     164,877       260,929     162,761  

Valuation loss (gain) on currency and interest rate swaps

     (127,363 )   (20,806 )     (125,729 )   (20,539 )

Changes in assets and liabilities:

        

Decrease in trade receivables

     (488,556 )   (92,097 )     (482,286 )   (90,915 )

Decrease (increase) in other accounts receivable

     220,955     213,716       218,119     210,973  

Decrease in inventories

     58,471     83,449       57,721     82,378  

Increase in other current assets

     (106,294 )   (20,403 )     (104,930 )   (20,141 )

Increase (decrease) in trade payables

     725,886     121,450       716,571     119,891  

Decrease in other accounts payable

     (148,065 )   (65,717 )     (146,165 )   (64,874 )

Increase (decrease) in income tax payable

     (604,518 )   513,430       (596,760 )   506,841  

Increase (decrease) in accrued interest expenses

     (4,758 )   (27,713 )     (4,697 )   (27,357 )

Increase in other current liabilities

     85,213     178,108       84,119     175,822  

Decrease in other long-term liabilities

     (31,338 )   (105,040 )     (30,936 )   (103,692 )

Payment of severance and retirement benefits

     (12,762 )   (10,159 )     (12,598 )   (10,029 )

Payment of self-insurance

     (1,535 )   (848 )     (1,515 )   (837 )

Other, net

     (18,624 )   (20,813 )     (18,385 )   (20,546 )
                            

Net cash provided by operating activities

   (Won) 2,367,229     3,479,117     $ 2,336,850     3,434,469  
                            


Korea Electric Power Corporation

Non-consolidated Statements of Cash Flows (Unaudited), Continued

December 31, 2005 and 2004

(In millions of Korean Won and in thousands of U.S. dollars)

 

     Won     U.S. dollars  
     2005     2004     2005     2004  

Cash flows from investing activities:

        

Proceeds from disposal of utility plant

   (Won) 65,382     16,311       64,543     16,102  

Additions to utility plant

     (3,642,281 )   (3,329,195 )     (3,595,539 )   (3,286,471 )

Receipt of construction grants

     679,692     617,366       670,969     609,443  

Proceeds from disposal of investment securities

     658,624     813,558       650,172     803,117  

Acquisition of investment securities

     (11,629 )   (5,783 )     (11,480 )   (5,709 )

Collection of long-term loans

     8,385     5,307       8,277     5,239  

Increase in long-term loans

     (38,275 )   (36,591 )     (37,784 )   (36,121 )

Acquisition of intangibles

     (25,459 )   (16,010 )     (25,132 )   (15,805 )

Collection of short-term loans

     10,874     9,336       10,734     9,216  

Decrease in other non-current assets

     5,189     7,427       5,122     7,332  
                            

Net cash used in investing activities

     (2,289,499 )   (1,918,274 )     (2,260,117 )   (1,893,656 )
                            

Cash flows from financing activities:

        

Proceeds from short -term borrowings

     —       183,927       —       181,567  

Proceeds from long-term debt

     2,934,965     3,422,194       2,897,300     3,378,276  

Repayment of long-term debt

     (2,192,577 )   (4,239,104 )     (2,164,439 )   (4,184,703 )

Acquisition of treasury stock

     —       —         —       —    

Dividends paid

     (723,876 )   (661,360 )     (714,586 )   (652,873 )

Payments under currency and interest rate swap contracts

     (204,413 )   (187,454 )     (201,790 )   (185,048 )

Others

     (129,180 )   —         (127,522 )   —    
                            

Net cash provided by (used in) financing activities

     (315,080 )   (1,481,797 )     (311,037 )   (1,462,781 )
                            

Net increase in cash and cash equivalents

     (237,350 )   79,046       (234,304 )   78,032  

Cash and cash equivalents, at beginning of the period

     445,863     366,817       440,141     362,110  
                            

Cash and cash equivalents, at end of the period

   (Won) 208,513     445,863     $ 205,837     440,141  
                            

* Figures have been translated into U.S. dollars at the rate of KRW 1013.0 to US$1, the basic exchange rate at the end of year 2005.
* Figures may not add up due to rounding.


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.

 

/s/ Kwang-Choong Kim

Name:   Kwang-Choong Kim
Title:   Treasurer

Date: February 24, 2006