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 2018

 

 

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 30, 2018, 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 2017

 

    Dividend per share : KRW 790

 

  2) Approval of the maximum aggregate amount of remuneration for directors in 2018

 

    Aggregate ceiling on remuneration for direactros in 2018 : 2,120,796 thousand won

 

  2. Voting Results

 

Agenda

 

Outstanding Shares

 

Attendant Shares

 

Shares for

1. 1)

  641,964,077   528,258,103   524,629,257 (99.31%)

1. 2)

  641,964,077   528,258,103   422,261,017 (79.93%)

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, Jong-Soo

Name:   Kim, Jong-Soo
Title:   Vice President

Date: March 30, 2018


Agenda 1. Approval of Financial Statements for the Fiscal Year 2017

Disclaimer: The financial statements for the fiscal year 2017 as presented below is in accordance with the International Financial Reporting Standard adopted in Korea (K-IFRS).


Consolidated Statements of Financial Position

As of December 31, 2017 and 2016

 

In millions of won    2017      2016  

Assets

     

Current assets

     

Cash and cash equivalents

   W 2,369,739        3,051,353  

Current financial assets, net

     1,958,357        2,671,989  

Trade and other receivables, net

     7,928,972        7,788,876  

Inventories, net

     6,002,086        5,479,443  

Income tax refund receivables

     100,590        19,163  

Current non-financial assets

     753,992        631,860  

Assets held-for-sale

     27,971        65,842  
  

 

 

    

 

 

 

Total current assets

     19,141,707        19,708,526  
  

 

 

    

 

 

 

Non-current assets

     

Non-current financial assets, net

     2,038,913        2,657,494  

Non-current trade and other receivables, net

     1,754,797        1,903,515  

Property, plant and equipment, net

     150,882,414        145,743,056  

Investment properties, net

     284,714        353,680  

Goodwill

     2,582        2,582  

Intangible assets other than goodwill, net

     1,187,121        980,821  

Investments in associates

     3,837,421        4,092,252  

Investments in joint ventures

     1,493,275        1,418,196  

Deferred tax assets

     919,153        795,131  

Non-current non-financial assets

     246,818        181,789  
  

 

 

    

 

 

 

Total non-current assets

     162,647,208        158,128,516  
  

 

 

    

 

 

 

Total Assets

   W 181,788,915        177,837,042  
  

 

 

    

 

 

 

(Continued)


Liabilities

    

Current liabilities

    

Trade and other payables, net

   W 5,999,521       5,585,411  

Current financial liabilities, net

     9,194,552       8,942,329  

Income tax payables

     508,402       1,843,288  

Current non-financial liabilities

     5,584,308       6,368,210  

Current provisions

     2,137,498       1,999,988  
  

 

 

   

 

 

 

Total current liabilities

     23,424,281       24,739,226  
  

 

 

   

 

 

 

Non-current liabilities

    

Non-current trade and other payables, net

     3,223,480       3,558,175  

Non-current financial liabilities, net

     45,980,899       44,835,562  

Non-current non-financial liabilities

     8,072,434       7,591,605  

Employee benefits liabilities, net

     1,483,069       1,686,258  

Deferred tax liabilities

     10,415,397       8,948,520  

Non-current provisions

     16,224,714       13,427,151  
  

 

 

   

 

 

 

Total non-current liabilities

     85,399,993       80,047,271  
  

 

 

   

 

 

 

Total Liabilities

   W 108,824,274       104,786,497  
  

 

 

   

 

 

 

Equity

    

Contributed capital

    

Share capital

   W 3,209,820       3,209,820  

Share premium

     843,758       843,758  
  

 

 

   

 

 

 
     4,053,578       4,053,578  

Retained earnings

    

Legal reserves

     1,604,910       1,604,910  

Voluntary reserves

     34,833,844       31,847,275  

Unappropriated retained earnings

     16,931,804       19,721,686  
  

 

 

   

 

 

 
     53,370,558       53,173,871  
  

 

 

   

 

 

 

Other components of equity

    

Other capital surplus

     1,233,793       1,235,146  

Accumulated other comprehensive loss

     (271,457     (33,875

Other equity

     13,294,973       13,294,973  
  

 

 

   

 

 

 
     14,257,309       14,496,244  
  

 

 

   

 

 

 

Equity attributable to owners of the controlling company

     71,681,445       71,723,693  

Non-controlling interests

     1,283,196       1,326,852  
  

 

 

   

 

 

 

Total Equity

   W 72,964,641       73,050,545  
  

 

 

   

 

 

 

Total Liabilities and Equity

   W 181,788,915       177,837,042  
  

 

 

   

 

 

 


Consolidated Statements of Comprehensive Income

For the years ended December 31, 2017 and 2016

 

In millions of won, except per share information    2017     2016  

Sales

    

Sales of goods

   W 55,772,548       55,379,487  

Sales of services

     351,157       356,743  

Sales of construction services

     3,212,184       4,026,857  

Revenue related to transfer of assets from customers

     478,973       427,297  
  

 

 

   

 

 

 
     59,814,862       60,190,384  
  

 

 

   

 

 

 

Cost of sales

    

Cost of sales of goods

     (48,454,036     (41,237,372

Cost of sales of services

     (597,423     (557,037

Cost of sales of construction services

     (3,047,396     (3,755,144
  

 

 

   

 

 

 
     (52,098,855     (45,549,553
  

 

 

   

 

 

 

Gross profit

     7,716,007       14,640,831  

Selling and administrative expenses

     (2,762,855     (2,639,232
  

 

 

   

 

 

 

Operating profit

     4,953,152       12,001,599  

Other non-operating income

     390,145       412,887  

Other non-operating expense

     (180,055     (188,624

Other gains, net

     156,627       70,498  

Finance income

     1,530,618       791,543  

Finance expenses

     (3,127,952     (2,437,087

Profit related to associates, joint ventures and subsidiaries

    

Share in profit of associates and joint ventures

     241,537       224,435  

Gain on disposal of investments in associates and joint ventures

     609       52  

Share in loss of associates and joint ventures

     (323,225     (243,361

Loss on disposal of investments in associates and joint ventures

     —         (2,935

Impairment loss on investments in associates and joint ventures

     (27,238     (115,539
  

 

 

   

 

 

 
     (108,317     (137,348
  

 

 

   

 

 

 

Profit before income tax

     3,614,218       10,513,468  

Income tax expense

     (2,172,824     (3,365,141
  

 

 

   

 

 

 

Profit for the period

     1,441,394       7,148,327  


In millions of won, except per share information    2017     2016  

Other comprehensive income (loss)

    

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

    

Remeasurement of defined benefit liability, net of tax

   W 170,337       (75,926

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

     10,067       (2,515

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

     (7,098     61,279  

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

     20,868       28,414  

Foreign currency translation of foreign operations, net of tax

     (134,196     41,360  

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

     (154,694     (54,914
  

 

 

   

 

 

 

Other comprehensive loss, net of tax

     (94,716     (2,302
  

 

 

   

 

 

 

Total comprehensive income for the period

   W 1,346,678       7,146,025  
  

 

 

   

 

 

 

Profit or loss attributable to:

    

Owners of the controlling company

   W 1,298,720       7,048,581  

Non-controlling interests

     142,674       99,746  
  

 

 

   

 

 

 
   W 1,441,394       7,148,327  
  

 

 

   

 

 

 

Total comprehensive income attributable to:

    

Owners of the controlling company

   W 1,230,194       7,041,557  

Non-controlling interests

     116,484       104,468  
  

 

 

   

 

 

 
   W 1,346,678       7,146,025  
  

 

 

   

 

 

 

Earnings per share

    

Basic and diluted earnings per share

   W 2,023       10,980  


Statement of Appropriation of Retained Earnings

For the year ended December 31, 2016, KEPCO’s retained earnings were appropriated on March 21, 2017. For the year ended December 31, 2017, KEPCO’s retained earnings are expected to be appropriated on March 30, 2018. Statements of appropriation of retained earnings of KEPCO, the controlling company, for the years ended December 31, 2017 and 2016 are as follows:

 

In millions of won except for dividends per share    2017     2016  

I. Retained earnings before appropriations

    

Unappropriated retained earnings carried over from prior years

   W            —    

Net income

     1,506,852       4,261,986  

Remeasurement of the defined benefit plan

     72,723       (4,328
     

 

 

   

 

 

 
     1,579,575       4,257,658  
     

 

 

   

 

 

 

II. Transfer from voluntary reserves

     —         —    
     

 

 

   

 

 

 

III. Subtotal ( I+II )

     1,579,575       4,257,658  
     

 

 

   

 

 

 

IV. Appropriations of retained earnings

     (1,579,575     (4,257,658

Legal reserve

     —         —    

Dividends (government, individual)

    

(Amount of dividends per share (%) :

   Current year – W790 (16%)     
   Prior year – W1,980 (40%))      (507,152     (1,271,089

Reserve for business expansion

     (1,072,423     (2,986,569

V. Unappropriated retained earnings to be carried over forward to subsequent year

     —         —    


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

 

    Proposed aggregate ceiling on remuneration for directors:

 

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

 

    2,108,298 thousand won in fiscal year 2017 (total number of directors: 15; number of non-standing directors: 8)

 

    We proposed to increase the maximum aggregate amount of remuneration for directors in 2018 by 0.6% compared to 2017 as a result of (i) the notification by the Government to increase the remuneration for directors of government controlled entities by 2.6% and (ii) the decreased severance payments due to the decrease in the average incumbency of our directors from 26 months to 19 months.