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 March 2019

 

 

KOREA ELECTRIC POWER CORPORATION

(Translation of registrant’s name into English)

 

 

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

(Address of principal executive offices)

 

 

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

Form 20-F  ☒            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  ☒

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

 

 

 


At the annual general meeting (“AGM”) of shareholders of Korea Electric Power Corporation (“KEPCO”) held on March 22, 2019, all the agendas set forth below submitted for shareholder approval were approved by the shareholders as originally proposed:

 

  1.

Agendas for Shareholder Approval:

 

  1)

Approval of financial statements for the fiscal year 2018

 

  2)

Approval of the maximum aggregate amount of remuneration for directors in 2019

 

   

Aggregate ceiling on remuneration for direactros in 2019 : 2,174,564 thousand won

 

  2.

Voting Results

 

Agenda

   Outstanding Shares      Attendant Shares      Shares for  

1. 1)

     641,964,077        525,181,688        491,395,343 (93.6%)  

1. 2)

     641,964,077        525,181,688        476,740,593 (90.8%)  

Details on the proposed agenda for the AGM are attached hereto.


SIGNATURES

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

 

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

Date: March 22, 2019


Attachment

Agenda 1. Approval of Financial Statements for the Fiscal Year 2018

Disclaimer: The financial statements for the fiscal year 2018 as presented below is in accordance with the International Financial Reporting Standard adopted in Korea (K-IFRS), and are subject to shareholders’ approval.


KOREA ELECTRIC POWER CORPORATION

AND SUBSIDIARIES

Consolidated Financial Statements

December 31, 2018

(With Independent Auditors’ Report Thereon)


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position

As of December 31, 2018 and 2017

 

In millions of won    Note      2018      2017  

Assets

        

Current assets

        

Cash and cash equivalents

     5,6,7,48      W 1,358,345        2,369,739  

Current financial assets, net

     5,9,12,13,14,15,48        2,359,895        1,958,357  

Trade and other receivables, net

     5,8,17,23,48,49,50        7,793,592        7,928,972  

Inventories, net

     16        7,188,253        6,002,086  

Income tax refund receivables

     44        143,214        100,590  

Current non-financial assets

     18        878,888        753,992  

Assets held-for-sale

     45        22,881        27,971  
     

 

 

    

 

 

 

Total current assets

        19,745,068        19,141,707  
     

 

 

    

 

 

 

Non-current assets

        

Non-current financial assets, net

     5,6,9,10,11,12,13,14,15,48        2,113,613        2,038,913  

Non-current trade and other receivables, net

     5,8,17,48,49,50        1,819,845        1,754,797  

Property, plant and equipment, net

     21,30,52        152,743,194        150,882,414  

Investment properties, net

     22,30        159,559        284,714  

Goodwill

     19        2,582        2,582  

Intangible assets other than goodwill, net

     24,30,49        1,225,942        1,187,121  

Investments in associates

     4,20        4,064,820        3,837,421  

Investments in joint ventures

     4,20        1,813,525        1,493,275  

Deferred tax assets

     44        1,233,761        919,153  

Non-current non-financial assets

     18        327,152        246,818  
     

 

 

    

 

 

 

Total non-current assets

        165,503,993        162,647,208  
     

 

 

    

 

 

 

Total Assets

     4      W 185,249,061        181,788,915  
     

 

 

    

 

 

 

(Continued)

 

1


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Position, Continued

As of December 31, 2018 and 2017

 

In millions of won    Note      2018     2017  

Liabilities

       

Current liabilities

       

Trade and other payables, net

     5,25,27,48,50      W 6,405,395       5,999,521  

Current financial liabilities, net

     5,14,26,48,50        7,981,879       9,194,552  

Income tax payables

     44        285,420       508,402  

Current non-financial liabilities

     23,31,32        5,574,041       5,584,308  

Current provisions

     29,48        1,594,798       2,137,498  
     

 

 

   

 

 

 

Total current liabilities

        21,841,533       23,424,281  
     

 

 

   

 

 

 

Non-current liabilities

       

Non-current trade and other payables, net

     5,25,27,48,50        2,941,696       3,223,480  

Non-current financial liabilities, net

     5,14,26,48,50        53,364,911       45,980,899  

Non-current non-financial liabilities

     31,32        8,160,033       8,072,434  

Employee benefits liabilities, net

     28,48        1,645,069       1,483,069  

Deferred tax liabilities

     44        9,617,309       10,415,397  

Non-current provisions

     29,48        16,585,748       16,224,714  
     

 

 

   

 

 

 

Total non-current liabilities

        92,314,766       85,399,993  
     

 

 

   

 

 

 

Total Liabilities

     4      W 114,156,299       108,824,274  
     

 

 

   

 

 

 

Equity

       

Contributed capital

     1,33,48       

Share capital

      W 3,209,820       3,209,820  

Share premium

        843,758       843,758  
     

 

 

   

 

 

 
        4,053,578       4,053,578  

Retained earnings

     34       

Legal reserves

        1,604,910       1,604,910  

Voluntary reserves

        35,906,267       34,833,844  

Unappropriated retained earnings

        14,007,942       16,931,804  
     

 

 

   

 

 

 
        51,519,119       53,370,558  
     

 

 

   

 

 

 

Other components of equity

     37       

Other capital surplus

        1,234,825       1,233,793  

Accumulated other comprehensive loss

        (358,570     (271,457

Other equity

        13,294,973       13,294,973  
     

 

 

   

 

 

 
        14,171,228       14,257,309  
     

 

 

   

 

 

 

Equity attributable to owners of the controlling company

        69,743,925       71,681,445  

Non-controlling interests

     19,36        1,348,837       1,283,196  
     

 

 

   

 

 

 

Total Equity

      W 71,092,762       72,964,641  
     

 

 

   

 

 

 

Total Liabilities and Equity

      W 185,249,061       181,788,915  
     

 

 

   

 

 

 

 

2


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2018 and 2017

 

In millions of won, except per share information    Note      2018     2017  

Sales

     4,38,48,50       

Sales of goods

      W 57,897,804       55,772,548  

Sales of services

        392,867       351,157  

Sales of construction services

     23        1,742,391       3,212,184  

Revenue related to transfer of assets from customers

        594,548       478,973  
     

 

 

   

 

 

 
        60,627,610       59,814,862  
     

 

 

   

 

 

 

Cost of sales

     16,28,46,50       

Cost of sales of goods

        (55,976,628     (48,454,036

Cost of sales of services

        (592,224     (597,423

Cost of sales of construction services

        (1,638,869     (3,047,396
     

 

 

   

 

 

 
        (58,207,721     (52,098,855
     

 

 

   

 

 

 

Gross profit

        2,419,889       7,716,007  

Selling and administrative expenses

     28,39,46,50        (2,627,890     (2,762,855
     

 

 

   

 

 

 

Operating profit (loss)

     4        (208,001     4,953,152  

Other non-operating income

     40        375,346       390,145  

Other non-operating expense

     40        (231,330     (180,055

Other gains (losses), net

     41        (621,124     156,627  

Finance income

     5,14,42        796,870       1,530,618  

Finance expenses

     5,14,43        (2,470,743     (3,127,952

Profit (loss) related to associates, joint ventures and subsidiaries

     4,20       

Share in profit of associates and joint ventures

        473,269       241,537  

Gain on disposal of investments in associates and joint ventures

        5,079       609  

Gain on disposal of investments in subsidiaries

        73       —    

Share in loss of associates and joint ventures

        (110,168     (323,225

Loss on disposal of investments in associates and joint ventures

        (2,183     —    

Impairment loss on investments in associates and joint ventures

     20        (7,907     (27,238
     

 

 

   

 

 

 
        358,163       (108,317
     

 

 

   

 

 

 

Profit (loss) before income tax

        (2,000,819     3,614,218  

Income tax benefit (expense)

     44        826,321       (2,172,824
     

 

 

   

 

 

 

Profit (loss) for the period

      W (1,174,498     1,441,394  

(Continued)

 

3


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss), Continued

For the years ended December 31, 2018 and 2017

 

In millions of won, except per share information    Note      2018     2017  

Other comprehensive income (loss)

     5,14,28,34,37       

Items that will not be reclassified subsequently to profit or loss:

       

Remeasurement of defined benefit liability, net of tax

     28,34      W (108,169     170,337  

Share in other comprehensive income (loss) of associates and joint ventures, net of tax

     34        (1,153     10,067  

Net change in fair value of equity investments at fair value through other comprehensive income (loss)

     37        (34,185     —    

Items that are or may be reclassified subsequently to profit or loss:

       

Net change in the unrealized fair value of available-for-sale financial assets, net of tax

     37        —         (7,098

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

     5,14,37        211       20,868  

Foreign currency translation of foreign operations, net of tax

     37        (20,717     (134,196

Share in other comprehensive income (loss) of associates and joint ventures, net of tax

     37        57,088       (154,694
     

 

 

   

 

 

 

Other comprehensive loss, net of tax

        (106,925     (94,716
     

 

 

   

 

 

 

Total comprehensive income (loss) for the period

      W (1,281,423     1,346,678  
     

 

 

   

 

 

 

Profit (loss) attributable to:

       

Owners of the controlling company

     47      W (1,314,567     1,298,720  

Non-controlling interests

        140,069       142,674  
     

 

 

   

 

 

 
      W (1,174,498     1,441,394  
     

 

 

   

 

 

 

Total comprehensive income (loss) attributable to:

       

Owners of the controlling company

      W (1,426,477     1,230,194  

Non-controlling interests

        145,054       116,484  
     

 

 

   

 

 

 
      W (1,281,423     1,346,678  
     

 

 

   

 

 

 

Earnings (loss) per share (in won)

     47       

Basic and diluted earnings (loss) per share

      W (2,048     2,023  

 

4


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2018 and 2017

 

In millions of won   Equity attributable to owners of the controlling company     Non-
controlling
interests
       
    Contributed
capital
    Retained
earnings
    Other
components
of equity
    Subtotal     Total
equity
 

Balance at January 1, 2017

  W 4,053,578       53,173,871       14,496,244       71,723,693       1,326,852       73,050,545  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income (loss) for the period

           

Profit for the period

    —         1,298,720       —         1,298,720       142,674       1,441,394  

Items that will not be reclassified subsequently to profit or loss:

           

Remeasurement of defined benefit liability, net of tax

    —         158,991       —         158,991       11,346       170,337  

Share in other comprehensive income of associates and joint ventures, net of tax

    —         10,065       —         10,065       2       10,067  

Items that are or may be reclassified subsequently to profit or loss:

           

Net change in the unrealized fair value of available-for-sale financial assets, net of tax

    —         —         (7,102     (7,102     4       (7,098

Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

    —         —         19,614       19,614       1,254       20,868  

Foreign currency translation of foreign operations, net of tax

    —         —         (95,103     (95,103     (39,093     (134,196

Share in other comprehensive income (loss) of associates and joint ventures, net of tax

    —         —         (154,991     (154,991     297       (154,694

Transactions with owners of the Company, recognized directly in equity

           

Dividends paid

    —         (1,271,089     —         (1,271,089     (70,252     (1,341,341

Issuance of shares of capital by subsidiaries and others

    —         —         (1,378     (1,378     18,381       17,003  

Changes in consolidation scope

    —         —         —         —         7,337       7,337  

Dividends paid (hybrid securities)

    —         —         —         —         (15,856     (15,856

Repayment of hybrid securities

    —         —         —         —         (99,750     (99,750

Others

    —         —         25       25       —         25  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2017

  W 4,053,578       53,370,558       14,257,309       71,681,445       1,283,196       72,964,641  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(Continued)

 

5


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity, Continued

For the years ended December 31, 2018 and 2017

 

In millions of won   Equity attributable to owners of the controlling company     Non-
controlling
interests
       
    Contributed
capital
    Retained
earnings
    Other
components
of equity
    Subtotal     Total
equity
 

Balance at January 1, 2018

  W 4,053,578       53,370,558       14,257,309       71,681,445       1,283,196       72,964,641  

Effect of change in accounting policy

    —         71,928       (76,851     (4,923     —         (4,923
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted balance at January 1, 2018

    4,053,578       53,442,486       14,180,458       71,676,522       1,283,196       72,959,718  

Total comprehensive income (loss) for the period

           

Profit (loss) for the period

    —         (1,314,567     —         (1,314,567     140,069       (1,174,498

Items that will not be reclassified subsequently to profit or loss:

           

Remeasurement of defined benefit liability, net of tax

    —         (100,495     —         (100,495     (7,674     (108,169

Share in other comprehensive income of associates and joint ventures, net of tax

    —         (1,153     —         (1,153     —         (1,153

Net change in fair value of equity investments at fair value through other comprehensive income

    —         —         (34,125     (34,125     (60     (34,185

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

    —         —         (1,140     (1,140     1,351       211  

Foreign currency translation of foreign operations, net of tax

    —         —         (32,086     (32,086     11,369       (20,717

Share in other comprehensive income (loss) of associates and joint ventures, net of tax

    —         —         57,089       57,089       (1     57,088  

Transactions with owners of the Company, recognized directly in equity

           

Dividends paid

    —         (507,152     —         (507,152     (92,741     (599,893

Issuance of shares of capital by subsidiaries and others

    —         —         1,032       1,032       17,183       18,215  

Changes in consolidation scope

    —         —         —         —         9,530       9,530  

Dividends paid (hybrid bond)

    —         —         —         —         (13,385     (13,385
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at December 31, 2018

  W 4,053,578       51,519,119       14,171,228       69,743,925       1,348,837       71,092,762  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

6


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2018 and 2017

 

In millions of won    2018     2017  

Cash flows from operating activities

    

Profit (loss) for the period

   W (1,174,498     1,441,394  
  

 

 

   

 

 

 

Adjustments for:

    

Income tax expense (benefit)

     (826,321     2,172,824  

Depreciation

     9,905,856       9,660,039  

Amortization

     118,938       113,672  

Employee benefit expense

     360,575       391,360  

Bad debt expense

     57,468       126,326  

Interest expense

     1,868,458       1,789,552  

Loss on sale of financial assets

     1       2,343  

Loss on disposal of property, plant and equipment

     60,704       70,514  

Loss on abandonment of property, plant, and equipment

     481,176       424,091  

Loss on impairment of property, plant, and equipment

     710,162       51,067  

Loss on impairment of intangible assets

     8,112       20  

Loss on disposal of intangible assets

     43       183  

Increase to provisions

     1,056,994       1,690,120  

Loss (gain) on foreign currency translation, net

     243,378       (902,878

Gain on valuation of financial assets at fair value through profit or loss

     (8,495     —    

Loss on valuation of financial assets at fair value through profit or loss

     6,616       —    

Valuation and transaction loss (gain) on derivative instruments, net

     (300,500     1,043,628  

Share in loss (income) of associates and joint ventures, net

     (363,101     81,688  

Gain on sale of financial assets

     (1,838     (1,130

Gain on disposal of property, plant and equipment

     (98,077     (48,316

Gain on disposal of intangible assets

     (12     (564

Gain on disposal of associates and joint ventures

     (5,079     (609

Loss on disposal of associates and joint ventures

     2,183       —    

Impairment loss on associates and joint ventures

     7,907       27,238  

Gain on disposal of subsidiaries

     (72     —    

Interest income

     (223,767     (206,143

Dividend income

     (12,777     (11,477

Impairment loss on available-for-sale securities

     —         2,713  

Others, net

     81,317       16,679  
  

 

 

   

 

 

 
     13,129,849       16,492,940  
  

 

 

   

 

 

 

Changes in:

    

Trade receivables

     246,755       (218,328

Non-trade receivables

     154,580       (31,807

Accrued income

     (484,718     577,838  

Other receivables

     (61,961     (1,271

Other current assets

     (148,509     37,576  

Inventories

     (1,771,550     (1,373,438

Other non-current assets

     (54,148     (46,079

Trade payables

     478,744       342,126  

Non-trade payables

     (292,912     (214,704

Accrued expenses

     (361,204     (715,305

Other payables

     —         292  

Other current liabilities

     250,112       (126,323

Other non-current liabilities

     287,488       763,958  

Investments in associates and joint ventures (dividends received)

     175,175       106,983  

Provisions

     (1,132,969     (1,390,606

Payments of employee benefit obligations

     (89,253     (69,489

Plan assets

     (330,064     (325,080
  

 

 

   

 

 

 
   W (3,134,434     (2,683,657
  

 

 

   

 

 

 

(Continued)

 

7


KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements, Continued

December 31, 2018

 

In millions of won

   2018     2017  

Cash generated from operating activities

   W 8,820,917       15,250,677  

Dividends received (financial assets at fair value through other comprehensive income)

     11,182       10,590  

Interest paid

     (1,895,898     (1,886,303

Interest received

     194,221       173,226  

Income taxes paid

     (450,290     (2,298,296
  

 

 

   

 

 

 

Net cash from operating activities

     6,680,132       11,249,894  
  

 

 

   

 

 

 

Cash flows from investing activities

    

Proceeds from disposals of associates and joint ventures

     1,617       10,542  

Acquisition of associates and joint ventures

     (319,425     (206,753

Proceeds from disposals of property, plant and equipment

     234,138       85,801  

Acquisition of property, plant and equipment

     (12,266,870     (12,535,958

Proceeds from disposals of intangible assets

     13       1,072  

Acquisition of intangible assets

     (110,587     (143,887

Proceeds from disposals of financial assets

     2,419,259       5,296,680  

Acquisition of financial assets

     (2,841,651     (4,786,717

Increase in loans

     (188,675     (218,698

Collection of loans

     100,010       120,967  

Increase in deposits

     (299,564     (397,078

Decrease in deposits

     259,930       110,383  

Proceeds from disposals of assets held-for-sale

     18,716       —    

Receipt of government grants

     30,416       55,533  

Net cash inflow from changes in consolidation scope

     2,141        

Other cash inflow (outflow) from investing activities, net

     (53,769     1,414  
  

 

 

   

 

 

 

Net cash used in investing activities

     (13,014,301     (12,606,699
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from (repayment of) short-term borrowings, net

     (183,660     370,328  

Proceeds from long-term borrowings and debt securities

     14,251,586       10,098,067  

Repayment of long-term borrowings and debt securities

     (8,095,590     (8,198,882

Payment of finance lease liabilities

     (134,454     (122,919

Settlement of derivative instruments, net

     60,907       33,434  

Change in non-controlling interest

     20,113       23,582  

Repayment of hybrid bond

     —         (99,750

Dividends paid (hybrid bond)

     (17,658     (15,856

Dividends paid

     (599,391     (1,340,387

Other cash outflow from financing activities, net

     (175     (2,023
  

 

 

   

 

 

 

Net cash from financing activities

     5,301,678       745,594  
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents before effect of exchange rate fluctuations

     (1,032,491     (611,211

Effect of exchange rate fluctuations on cash held

     21,097       (70,403
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (1,011,394     (681,614

Cash and cash equivalents at January 1

     2,369,739       3,051,353  
  

 

 

   

 

 

 

Cash and cash equivalents at December 31

   W 1,358,345       2,369,739  
  

 

 

   

 

 

 

 

8


Agenda 2. Approval of the ceiling amount of remuneration for directors

 

   

Proposed aggregate ceiling on remuneration for directors:

 

   

2,174,564 thousand won in fiscal year 2019 (total number of directors: 15; number of non-standing directors: 8)

 

   

2,120,796 thousand won in fiscal year 2018 (total number of directors: 15; number of non-standing directors: 8)

 

   

We proposed to increase the maximum aggregate amount of remuneration for directors in 2019 by 2.54% compared to 2018 as a result of (i) the notification by the Government to increase the remuneration for directors of government controlled entities by 1.8% and (ii) the increased severance payments due to the increase in the average incumbency of our directors from 19 months to 20 months.