Edgar Filing: KOREA ELECTRIC POWER CORP

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 2009

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).

Preliminary and unaudited non-consolidated financial statements of Korea Electric Power Corporation (“KEPCO”) for the fiscal year 2008, all prepared in accordance with Korean GAAP are set forth below.

The translation of Korean Won amounts into U.S. dollar has been made at the rate of (Won)1,257.50 to US$1.00 at December 31, 2008, the Base Rate announced by Seoul Money Brokerage Service, Ltd.

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED BALANCE SHEETS (Unaudited)

AS OF DECEMBER 31, 2007 AND 2008


	Korean Won						Translation into U.S. Dollars
	2007			2008			2008
	(In millions)						(In thousands)
Assets
Property, plant and equipment:	(Won)	49,295,683		(Won)	52,404,020		$	41,673,177
Less: accumulated depreciation		(14,415,883	)		(16,303,750	)		(12,965,208	)
Less: construction grants		(6,126,776	)		(6,789,063	)		(5,398,858	)

		28,753,024			29,311,207			23,309,111
Construction in-progress		2,265,117			2,629,946			2,091,408

Net property, plant and equipment		31,018,141			31,941,153			25,400,519


Investments and other assets:
Investment securities		28,956,430			28,498,281			22,662,649
Long-term other accounts receivable, less allowance for doubtful accounts of (Won)13,066 in 2007 and (Won)11,775 million in 2008		1,293,500			1,170,688			930,964
Long-term loans		212,199			226,439			180,071
Intangible assets		208,295			195,951			155,826
Currency Swap		—			303,270			241,174
Other non-current assets		264,373			301,981			240,139

Total non-current assets		30,934,797			30,696,610			24,410,823


Current assets:
Cash and cash equivalents		189,346			219,222			174,332
Trade receivables, less allowance for doubtful accounts of (Won)52,406 million in 2007 and (Won)48,092 million in 2008		2,469,559			2,620,968			2,084,269
Other accounts receivable, less allowance for doubtful accounts of (Won)7,182 million in 2007 and (Won)6,824 million in 2008		447,450			674,309			536,230
Inventories		225,435			226,856			180,402
Deferred income tax assets, net		251,762			431,435			343,090
Other current assets		106,101			57,622			45,822

Total current assets		3,689,653			4,230,412			3,364,145


Total assets	(Won)	65,642,591		(Won)	66,868,175		$	53,175,487

(Continued)

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED BALANCE SHEETS (Unaudited), CONTINUED

AS OF DECEMBER 31, 2007 AND 2008


	Korean Won						Translation into U.S. Dollars
	2007			2008			2008
	(In millions)						(In thousands)
Liabilities and Shareholders’ Equity
Stockholders’ equity:
Common stock of (Won)5,000 par value Authorized - 1,200,000,000 shares Issued and outstanding - 641,567,712 shares in 2007 and 2008	(Won)	3,207,839		(Won)	3,207,839		$	2,550,965
Capital surplus		14,555,890			14,556,185			11,575,495
Capital adjustments		(741,825	)		(741,489	)		(589,653	)
Accumulated other comprehensive income		79,664			406,673			323,398
Retained earnings:
Appropriated		25,372,349			26,462,200			21,043,499
Before appropriations		1,556,815			(2,952,468	)		(2,347,887	)

Total shareholders’ equity		44,030,732			40,938,940			32,555,817


Long-term liabilities:
Long-term debt, net		10,648,983			15,236,631			12,116,605
Accrual for retirement and severance benefits, net		689,800			877,319			697,669
Reserve for self insurance		109,273			115,268			91,665
Other provisions		242,219			268,755			213,722
Deferred income tax liabilities, net		2,513,867			1,133,239			901,184
Currency swap		—			21,297			16,936
Other long-term liabilities		423,844			401,195			319,041

Total long-term liabilities		14,627,986			18,053,704			14,356,822


Current liabilities:
Trade payables		2,098,630			2,961,375			2,354,970
Other accounts payable		309,592			364,265			289,674
Short-term borrowings		489,999			300,000			238,569
Current portion of long-term debt, net		3,479,974			3,472,579			2,761,494
Income tax payable		—			68,646			54,589
Other current liabilities		605,678			708,666			563,552

Total current liabilities		6,983,873			7,875,531			6,262,848


Total liabilities		21,611,859			25,929,235			20,619,670

Commitments and contingencies
Total shareholders’ equity and liabilities	(Won)	65,642,591		(Won)	66,868,175		$	53,175,487

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008


	Korean Won						Translation into U.S. Dollars
	2007			2008			2008
	(In millions)						(In thousands)
OPERATING REVENUES:
Sale of electricity	(Won)	28,953,328		(Won)	31,480,221		$	25,033,973
Other operating revenues		30,557			42,162			33,528

		28,983,885			31,522,383			25,067,501

OPERATING EXPENSES
Power generation, transmission and distribution costs		4,645,447			4,704,474			3,741,132
Purchased power		22,724,191			29,107,892			23,147,429
Other operating costs		43,657			59,359			47,204
Selling and administrative expenses		1,240,590			1,309,860			1,041,638

		28,653,885			35,181,585			27,977,403

OPERATING INCOME		330,000			(3,659,202	)		(2,909,902	)

OTHER INCOME (EXPENSES):
Interest income		82,447			90,590			72,040
Interest expense		(602,489	)		(752,366	)		(598,303	)
Gain on foreign currency transactions and translation, net		(76,919	)		(585,373	)		(465,506	)
Donations		(22,297	)		(30,515	)		(24,267	)
Rental income		167,014			164,807			131,060
Equity income of affiliates, net		1,765,939			(64,944	)		(51,645	)
Gain on disposal of property, plant and equipment, net		16,117			22,564			17,943
Valuation gain on currency and interest rate swaps, net		2,594			279,379			222,170
Translation gain (loss) on currency and interest rate swaps, net		9,592			(153,139	)		(121,780	)
Other, net		211,777			181,968			144,706

		1,553,775			(847,029	)		(673,582	)

INCOME BEFORE INCOME TAX		1,883,775			(4,506,231	)		(3,583,484	)
INCOME TAX EXPENSE		326,960			(1,553,763	)		(1,235,597	)

NET INCOME	(Won)	1,556,815		(Won)	(2,952,468	)	$	(2,347,887	)


BASIC EARNINGS PER SHARE		2,504			(4,742	)		(3.77	)

DILUTED EARNINGS PER SHARE	(Won)	2,461		(Won)	(4,742	)	$	(3.77	)

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED STATEMENT OF DISPOSITION OF DEFICIT (Unaudited)

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008


	Korean Won					Translation into U.S. Dollars
	2007		2008			2008
	(In millions)					(In thousands)
Unappropriated retained earnings:
Balance at beginning of year	(Won)	—	(Won)	—		$	—
Change in retained earnings of affiliated companies due to cumulative effect of accounting changes		—		—			—
Net income		1,556,815		(2,952,468	)		(2,347,887	)


Balance at end of year before appropriation		1,556,815		(2,952,468	)		(2,347,887	)


Transfer from voluntary reserves:
Reserve for business rationalization		—		31,900			25,368
Reserve for business expansion		—		2,920,568			2,322,519


Appropriation of retained earnings:
Reserve for investment in social overhead capital		—		—			—
Reserve for research and human resource development		—		—			—
Reserve for business expansion		1,089,851		—			—
Dividends – 15% on par value at 750 Won per share in 2007		466,964		—			—

		1,556,815		—			—

Unappropriated retained earnings to be carried forward to subsequent year	(Won)	—	(Won)	—		$	—

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

FOR THE YEAR ENDED DECEMBER 31, 2007 and 2008


	Korean Won (In millions)
	Capital stock		Capital surplus			Capital adjustments			Accumulated other comprehensive income			Retained earnings			Total
Beginning of January 1, 2007	(Won)	3,207,839	(Won)	14,518,843		(Won)	(796,980	)	(Won)	38,892		(Won)	25,993,431		(Won)	42,962,025
Exercise of conversion right		—		(9,903	)		—			—			—			(9,903	)
Treasury stock exchange of exchangeable bond				—			6,041			—			—			6,041
Changes in treasury stock		—		—			49,114			—			—			49,114
Gain on disposal of treasury stock		—		22,749			—			—			—			22,749
Loss on valuation of available-for-sale securities, net		—		—			—			(3,668	)		—			(3,668	)
Gain on disposal of subsidiary’s securities		—		59,143			—			—			—			59,143
Equity gain of affiliates		—		—			—			5,301			—			5,301
Equity loss of affiliates		—		—			—			54,604			—			54,604
Directly charged tax effect		—		(34,942	)		—			(15,465	)		—			(50,407	)
Net income		—		—			—			—			1,556,815			1,556,815

Dividends declared		—		—			—			—			(621,082	)		(621,082	)

Balance at December 31, 2007	(Won)	3,207,839	(Won)	14,555,890		(Won)	(741,825	)	(Won)	79,664		(Won)	26,929,164		(Won)	44,030,732


Beginning of January 1, 2008	(Won)	3,207,839	(Won)	14,555,890		(Won)	(741,825	)	(Won)	79,664		(Won)	26,929,164		(Won)	44,030,732
Exercise of conversion right		—		—			—			—			—			—
Treasury stock exchange of exchangeable bond		—		(84	)		—			—			—			(84	)
Changes in treasury stock		—		—			336			—			—			336
Gain on disposal of treasury stock		—		259			—			—			—			259
Loss on valuation of available-for-sale securities, net		—		—			—			(3,501	)		—			(3,501	)
Gain on disposal of subsidiary’s securities		—		168			—			—			—			168
Equity gain of affiliates		—		—			—			331,713			—			331,713
Equity loss of affiliates		—		—			—			84,270			—			84,270
Directly charged tax effect		—		(48	)		—			(85,473	)		—			(85,521	)
Net income		—		—			—			—			(2,952,468	)		(2,952,468	)
Dividends declared		—		—			—			—			(466,964	)		(466,964	)

Balance at December 31, 2008	(Won)	3,207,839	(Won)	14,556,185		(Won)	(741,489	)	(Won)	406,673		(Won)	23,509,732		(Won)	40,938,940


Translation into U.S. Dollars (In thousands)	$	2,550,965	$	11,575,495		$	(589,653	)	$	323,398		$	18,695,612		$	32,555,817

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008


	Korean Won						Translation into U.S. Dollars
	2007			2008			2008
	(In millions)						(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	(Won)	1,556,815		(Won)	(2,952,468	)	$	(2,347,887	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,891,759			1,954,298			1,554,114
Property, plant and equipment removal cost		294,734			294,376			234,096
Provision for severance and retirement benefits		159,266			222,218			176,714
Bad debt expense		18,854			19,547			15,545
Interest expense		32,341			32,435			25,793
Gain on foreign currency translation, net		57,783			536,227			426,423
Equity loss (income) of affiliates, net		(1,765,939	)		64,944			51,645
Gain on disposal of property, plant and equipment, net		(16,117	)		(22,564	)		(17,943	)
Loss (gain) on disposal of investments		(13,021	)		19,688			15,657
Contribution to self-insurance		7,191			7,180			5,710
Contribution to other provisions		33,454			15,152			12,049
Valuation gain on currency and interest rate swaps, net		(2,594	)		(279,379	)		(222,171	)
Transaction loss (gain) on currency and interest rate swaps, net		(9,592	)		153,139			121,781
Others		(145,211	)		(64,213	)		(51,063	)

		542,908			2,953,048			2,348,350

Changes in assets and liabilities:
Increase in trade receivables		(239,386	)		(170,963	)		(135,955	)
Increase in other accounts receivable		(4,060	)		(87,445	)		(69,538	)
Decrease in inventories		35,340			109,961			87,444
Increase in deferred income tax assets		(348	)		(179,674	)		(142,882	)
Decrease (Increase) in other current assets		(42,270	)		91,865			73,054
Increase in other non-current assets		—			(1,404	)		(1,117	)
Increase in trade payables		322,037			862,746			686,080
Increase (Decrease) in other accounts payable		(112,240	)		54,673			43,477
Increase (Decrease) in income tax payable		(437,741	)		68,598			54,551
Increase in other current liabilities		62,923			86,697			68,944
Increase (Decrease) in deferred income tax liabilities		186,430			(1,466,100	)		(1,165,885	)
Decrease in other long-term liabilities		(8,664	)		(660	)		(525	)
Payment of severance and retirement benefits, net		(29,768	)		(37,884	)		(30,126	)
Increase in severance insurance deposits		(850	)		(1,661	)		(1,321	)
Payment of self-insurance		(1,860	)		(1,185	)		(942	)
Provision for other estimated liabilities		(29,248	)		(13,300	)		(10,577	)
Dividend from equity investments		748,909			826,672			657,393

		449,204			140,936			112,075

Net cash provided by operating activities		2,548,927			141,516			112,538

(Continued)

KOREA ELECTRIC POWER CORPORATION

PRELIMINARY NON-CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited), CONTINUED

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008


	Korean Won						Translation into U.S. Dollars
	2007			2008			2008
	(In millions)						(In thousands)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of property, plant and equipment	(Won)	24,351		(Won)	43,647		$	34,709
Additions to property, plant and equipment		(4,030,212	)		(4,311,397	)		(3,428,547	)
Receipt of construction grants		1,042,175			1,115,646			887,193
Proceeds from disposal of investment securities		145,239			1,223			973
Acquisition of investment securities		(311,776	)		(41,767	)		(33,214	)
Collection of loans		29,630			28,226			22,446
Extension of loans		(46,215	)		(47,012	)		(37,385	)
Acquisition of intangible assets		(33,772	)		(62,639	)		(49,813	)
Proceeds from short-term financial instruments		25,000			—			—
Settlement under currency and interest rate swap contracts		485,429			(153,139	)		(121,781	)
Other, net		313			(39,323	)		(31,270	)


Net cash used in investing activities		(2,669,838	)		(3,466,535	)		(2,756,689	)


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from short-term borrowings		282,953			—			—
Proceeds from long-term debt		3,829,716			7,492,901			5,958,569
Proceeds from disposal of corporation own stock fund		58,988			—			—
Repayment of short-term borrowings					(189,999	)		(151,023	)
Repayment of long-term debt		(3,369,407	)		(3,480,931	)		(2,768,206	)
Dividends paid		(621,218	)		(467,076	)		(371,432	)


Net cash provided by (used in) financing activities		181,032			3,354,895			2,667,908


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		60,121			29,876			23,757

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		129,225			189,346			150,574


CASH AND CASH EQUIVALENTS, END OF YEAR	(Won)	189,346		(Won)	219,222		$	174,331

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, Myung-Whan
Name:		Kim, Myung-Whan
Title:		General Manager, Finance Team

Date: March 18, 2009