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 2008
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 audited non-consolidated financial statements of Korea Electric Power Corporation (“KEPCO”) for the fiscal year 2007, all prepared in accordance with Korean GAAP are set forth below.
Incorporation by reference is made to KEPCO’s Form 6-K on the 47th Annual General Meeting of Shareholders of KEPCO filed with the U.S. Securities and Exchange Commission on February 14, 2008, which is available at www.sec.gov.
KOREA ELECTRIC POWER CORPORATION
Preliminary NON-CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006
| Korean Won | Translation into U.S. Dollars 2007 |
|||||||||||
| 2006 | 2007 | |||||||||||
| (In millions) | (In thousands) | |||||||||||
| Assets |
||||||||||||
| Property, plant and equipment |
(Won) | 46,072,259 | (Won) | 49,295,683 | $ | 52,542,829 | ||||||
| Less: accumulated depreciation |
(12,556,783 | ) | (14,415,883 | ) | (15,365,469 | ) | ||||||
| Less: construction grants |
(4,086,894 | ) | (6,126,776 | ) | (6,530,351 | ) | ||||||
| 29,428,582 | 28,753,024 | 30,647,009 | ||||||||||
| Construction in-progress |
2,122,773 | 2,265,117 | 2,414,322 | |||||||||
| Net property, plant and equipment |
31,551,355 | 31,018,141 | 33,061,331 | |||||||||
| Investments and other assets: |
||||||||||||
| Investment securities |
27,644,238 | 28,956,430 | 30,863,814 | |||||||||
| Long-term loans |
195,413 | 212,199 | 226,177 | |||||||||
| Intangible assets |
214,284 | 208,295 | 222,016 | |||||||||
| Other non-current assets |
262,197 | 1,557,873 | 1,660,491 | |||||||||
| Total non-current assets |
28,316,132 | 30,934,797 | 32,972,498 | |||||||||
| Current assets: |
||||||||||||
| Cash and cash equivalents |
129,225 | 189,346 | 201,819 | |||||||||
| Trade receivables, less allowance for doubtful accounts of (Won)52,406 million in 2007 and (Won)48,559 million in 2006 |
2,249,045 | 2,469,559 | 2,632,231 | |||||||||
| Other accounts receivable, less allowance for doubtful accounts of (Won)7,182 million in 2007 and (Won)5,724 million in 2006 |
264,305 | 447,450 | 476,923 | |||||||||
| Short-term financial instruments |
25,000 | — | — | |||||||||
| Currency swaps |
479,879 | — | — | |||||||||
| Currency forwards |
64 | — | — | |||||||||
| Inventories |
178,099 | 225,435 | 240,285 | |||||||||
| Deferred income tax assets, net |
251,413 | 251,762 | 268,346 | |||||||||
| Other current assets |
91,684 | 106,101 | 113,089 | |||||||||
| Total current assets |
3,668,714 | 3,689,653 | 3,932,693 | |||||||||
| Total assets |
(Won) | 63,536,201 | (Won) | 65,642,591 | $ | 69,966,522 | ||||||
(Continued)
KOREA ELECTRIC POWER CORPORATION
Preliminary NON-CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006
| Korean Won | Translation into U.S. Dollars 2007 |
|||||||||||
| 2006 | 2007 | |||||||||||
| (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 2006 |
(Won) | 3,207,839 | (Won) | 3,207,839 | $ | 3,419,142 | ||||||
| Capital surplus |
14,518,843 | 14,513,011 | 15,468,995 | |||||||||
| Capital adjustments |
(796,980 | ) | (741,825 | ) | (790,689 | ) | ||||||
| Accumulated other comprehensive income |
38,892 | 122,543 | 130,615 | |||||||||
| Retained earnings: |
||||||||||||
| Appropriated |
23,922,207 | 25,372,349 | 27,043,645 | |||||||||
| Before appropriations |
2,071,223 | 1,556,815 | 1,659,364 | |||||||||
| Total shareholders’ equity |
42,962,024 | 44,030,732 | 46,931,072 | |||||||||
| Long-term liabilities: |
||||||||||||
| Long-term debt, net |
10,230,839 | 10,648,983 | 11,350,440 | |||||||||
| Accrual for retirement and severance benefits, net |
557,887 | 689,800 | 735,238 | |||||||||
| Reserve for self insurance |
103,942 | 109,273 | 116,471 | |||||||||
| Currency and interest rate swaps |
— | — | — | |||||||||
| Deferred income tax liabilities, net |
2,435,310 | 2,513,867 | 2,679,457 | |||||||||
| Other long-term liabilities |
389,062 | 666,063 | 709,937 | |||||||||
| Total long-term liabilities |
13,717,040 | 14,627,986 | 15,591,543 | |||||||||
| Current liabilities: |
||||||||||||
| Trade payables |
1,776,592 | 2,098,630 | 2,236,868 | |||||||||
| Other accounts payable |
421,832 | 309,592 | 329,986 | |||||||||
| Short-term borrowings |
200,000 | 489,999 | 522,276 | |||||||||
| Current portion of long-term debt, net |
3,363,742 | 3,479,974 | 3,709,203 | |||||||||
| Income tax payable |
423,120 | — | — | |||||||||
| Other current liabilities |
671,851 | 605,678 | 645,574 | |||||||||
| Total current liabilities |
6,857,137 | 6,983,873 | 7,443,907 | |||||||||
| Total liabilities |
20,574,177 | 21,611,859 | 23,035,450 | |||||||||
| Commitments and contingencies |
||||||||||||
| Total shareholders’ equity and liabilities |
(Won) | 63,536,201 | (Won) | 65,642,591 | $ | 69,966,522 | ||||||
KOREA ELECTRIC POWER CORPORATION
Preliminary NON-CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
| Korean Won | Translation into U.S. Dollars 2007 |
|||||||||||
| 2006 | 2007 | |||||||||||
| (In millions) | (In thousands) | |||||||||||
| OPERATING REVENUES: |
||||||||||||
| Sale of electricity |
(Won) | 26,900,604 | (Won) | 28,953,328 | $ | 30,860,508 | ||||||
| Other operating revenues |
78,429 | 30,557 | 32,569 | |||||||||
| 26,979,033 | 28,983,885 | 30,893,077 | ||||||||||
| OPERATING EXPENSES: |
||||||||||||
| Power generation, transmission and distribution costs |
4,112,928 | 4,609,631 | 4,913,271 | |||||||||
| Purchased power |
20,347,128 | 22,724,191 | 24,221,052 | |||||||||
| Other operating costs |
85,611 | 43,657 | 46,533 | |||||||||
| Selling and administrative expenses |
1,201,775 | 1,224,706 | 1,305,378 | |||||||||
| 25,747,442 | 28,602,185 | 30,486,234 | ||||||||||
| OPERATING INCOME |
1,231,591 | 381,700 | 406,843 | |||||||||
| OTHER INCOME: |
||||||||||||
| Interest income |
15,702 | 82,447 | 87,878 | |||||||||
| Interest expense |
(544,328 | ) | (602,489 | ) | (642,176 | ) | ||||||
| Gain on foreign currency transactions and translation, net |
236,336 | (76,919 | ) | (81,986 | ) | |||||||
| Donations |
(105,687 | ) | (73,997 | ) | (78,871 | ) | ||||||
| Rental income |
138,294 | 154,567 | 164,748 | |||||||||
| Equity income of affiliates, net |
1,589,394 | 1,765,939 | 1,882,263 | |||||||||
| Gain on disposal of property, plant and equipment, net |
6,784 | 16,117 | 17,179 | |||||||||
| Valuation loss on currency and interest rate swaps, net |
(26,466 | ) | 2,594 | 2,765 | ||||||||
| Other, net |
82,318 | 247,780 | 264,102 | |||||||||
| 1,392,347 | 1,516,039 | 1,615,902 | ||||||||||
| INCOME BEFORE INCOME TAX |
2,623,938 | 1,897,739 | 2,022,745 | |||||||||
| INCOME TAX EXPENSE |
553,395 | 340,924 | 363,381 | |||||||||
| NET INCOME |
(Won) | 2,070,543 | (Won) | 1,556,815 | $ | 1,659,364 | ||||||
| BASIC EARNINGS PER SHARE |
(Won) | 3,245 | (Won) | 2,504 | $ | 2.70 | ||||||
| DILUTED EARNINGS PER SHARE |
(Won) | 3,153 | (Won) | 2,461 | $ | 2.66 | ||||||
KOREA ELECTRIC POWER CORPORATION
Preliminary NON-CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
| Korean Won | Translation into U.S. Dollars |
|||||||||||
| 2006 | 2007 | 2007 | ||||||||||
| (In millions) | (In thousands) | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
| Net income |
(Won) | 2,070,543 | (Won) | 1,556,815 | $ | 1,659,364 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||
| Depreciation and amortization |
1,825,733 | 1,891,759 | 2,016,370 | |||||||||
| Property, plant and equipment removal cost |
229,417 | 294,734 | 314,148 | |||||||||
| Provision for severance and retirement benefits |
128,803 | 159,266 | 169,757 | |||||||||
| Reversal of bad debt expense |
— | — | — | |||||||||
| Bad debt expense |
21,814 | 18,854 | 20,096 | |||||||||
| Interest income |
— | — | — | |||||||||
| Interest expense |
13,731 | 32,341 | 34,471 | |||||||||
| Gain on foreign currency translation, net |
(197,115 | ) | 57,783 | 61,589 | ||||||||
| Equity income of affiliates, net |
(824,255 | ) | (1,017,030 | ) | (1,084,023 | ) | ||||||
| Gain on disposal of property, plant and equipment, net |
(6,784 | ) | (16,117 | ) | (17,179 | ) | ||||||
| Gain on disposal of investments |
(17 | ) | (13,021 | ) | (13,878 | ) | ||||||
| Contribution to self-insurance |
6,906 | 7,191 | 7,665 | |||||||||
| Contribution to provisions for other estimated liabilities |
53,708 | 33,454 | 35,657 | |||||||||
| Valuation loss (gain) on currency and interest rate swaps, net |
26,466 | (2,594 | ) | (2,765 | ) | |||||||
| Transaction loss(gain) on currency and interest rate swaps, net |
8,747 | (9,592 | ) | (10,223 | ) | |||||||
| Gain on retirement of bonds |
(2,329 | ) | — | — | ||||||||
| Others |
4,661 | (145,211 | ) | (154,775 | ) | |||||||
| 1,289,486 | 1,291,817 | 1,376,910 | ||||||||||
| Changes in assets and liabilities: |
||||||||||||
| Increase in trade receivables |
(229,496 | ) | (239,386 | ) | (255,155 | ) | ||||||
| Increase in other accounts receivable |
(3,037 | ) | (4,060 | ) | (4,327 | ) | ||||||
| Decrease(Increase) in inventories |
(17,232 | ) | 35,340 | 37,668 | ||||||||
| Increase in deferred income tax assets |
(43,553 | ) | (348 | ) | (371 | ) | ||||||
| Increase in other current assets |
(119,069 | ) | (42,270 | ) | (45,054 | ) | ||||||
| Increase(Decrease) in trade payables |
(327,269 | ) | 322,037 | 343,250 | ||||||||
| Increase(Decrease) in other accounts payable |
63,803 | (112,240 | ) | (119,633 | ) | |||||||
| Increase(Decrease) in income tax payable |
317,024 | (437,741 | ) | (466,575 | ) | |||||||
| Increase(Decrease) in accrued expenses |
15,630 | (2,532 | ) | (2,699 | ) | |||||||
| Increase(Decrease) in other current liabilities |
(73,736 | ) | 65,455 | 69,766 | ||||||||
| Increase in deferred income tax liabilities |
136,118 | 186,430 | 198,711 | |||||||||
| Decrease in other long-term liabilities |
(12,138 | ) | (8,664 | ) | (9,236 | ) | ||||||
| Payment of severance and retirement benefits, net |
(20,862 | ) | (29,768 | ) | (31,729 | ) | ||||||
| Receipt of severance and retirement benefits |
(475 | ) | (850 | ) | (906 | ) | ||||||
| Payment of self-insurance |
(1,582 | ) | (1,860 | ) | (1,982 | ) | ||||||
| Provision for other estimated liabilities |
(1,337 | ) | (29,248 | ) | (31,175 | ) | ||||||
| (317,211 | ) | (299,705 | ) | (319,447 | ) | |||||||
| Net cash provided by operating activities |
3,042,818 | 2,548,927 | 2,716,827 | |||||||||
(Continued)
KOREA ELECTRIC POWER CORPORATION
Preliminary NON-CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
| Korean Won | Translation into U.S. Dollars |
|||||||||||
| 2006 | 2007 | 2007 | ||||||||||
| (In millions) | (In thousands) | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
| Proceeds from disposal of property, plant and equipment |
(Won) | 25,491 | (Won) | 24,351 | $ | 25,955 | ||||||
| Additions to property, plant and equipment |
(3,657,394 | ) | (4,030,212 | ) | (4,295,685 | ) | ||||||
| Receipt of construction grants |
796,994 | 1,042,175 | 1,110,824 | |||||||||
| Proceeds from disposal of investment securities |
33 | 145,239 | 154,806 | |||||||||
| Acquisition of investment securities |
(35,664 | ) | (311,776 | ) | (332,313 | ) | ||||||
| Collection of loans |
23,474 | 29,630 | 31,582 | |||||||||
| Increase in long-term loans |
(40,210 | ) | (46,215 | ) | (49,259 | ) | ||||||
| Acquisition of intangible assets |
(33,366 | ) | (33,772 | ) | (35,997 | ) | ||||||
| Proceeds from short-term financial instruments |
38,000 | 25,000 | 26,647 | |||||||||
| Additions to short-term financial instruments |
(25,000 | ) | — | — | ||||||||
| Receipts (payments) under currency and interest rate swap contracts, net |
(51,574 | ) | 485,429 | 517,405 | ||||||||
| Other, net |
(16,467 | ) | 313 | 334 | ||||||||
| Net cash used in investing activities |
(2,975,683 | ) | (2,669,838 | ) | (2,845,701 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||||||
| Proceeds from short-term borrowings |
129,000 | 282,953 | 301,591 | |||||||||
| Proceeds from long-term debt |
3,725,919 | 3,829,716 | 4,081,983 | |||||||||
| Proceeds from disposal of corporation own stock fund |
— | 58,988 | 62,873 | |||||||||
| Repayment of long-term debt |
(2,529,532 | ) | (3,369,407 | ) | (3,591,353 | ) | ||||||
| Acquisition of treasury stock |
(740,949 | ) | — | — | ||||||||
| Dividends paid |
(730,858 | ) | (621,218 | ) | (662,138 | ) | ||||||
| Other, net |
(3 | ) | — | — | ||||||||
| Net cash provided by (used in) financing activities |
(146,423 | ) | 181,032 | 192,956 | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(79,288 | ) | 60,121 | 64,082 | ||||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
208,513 | 129,225 | 137,737 | |||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
(Won) | 129,225 | (Won) | 189,346 | $ | 201,819 | ||||||
KOREA ELECTRIC POWER CORPORATION
Preliminary NON- CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2007
| Korean Won (In millions) | |||||||||||||||||||||||
| Capital stock |
Capital surplus |
Capital adjustments |
Accumulated other comprehensive income |
Retained earnings |
Total | ||||||||||||||||||
| Beginning of period |
(Won) | 3,207,839 | (Won) | 14,518,843 | (Won) | (796,981 | ) | (Won) | 38,892 | (Won) | 25,993,431 | (Won) | 42,962,024 | ||||||||||
| Exercise of conversion right |
— | (9,903 | ) | — | — | — | (9,903 | ) | |||||||||||||||
| Treasury stock exchange of exchangeable bond |
12,876 | — | — | — | 12,876 | ||||||||||||||||||
| Changes in treasury stock |
— | — | 55,156 | — | — | 55,156 | |||||||||||||||||
| Gain on disposal of treasury stock |
— | 9,873 | — | — | — | 9,873 | |||||||||||||||||
| Gain (loss) on valuation of available-for-sale securities, net |
— | — | — | (3,668 | ) | — | (3,668 | ) | |||||||||||||||
| Equity gain of affiliates |
— | — | — | 64,444 | — | 64,444 | |||||||||||||||||
| Equity loss of affiliates |
— | — | — | 54,604 | — | 54,604 | |||||||||||||||||
| Directly charged tax effect |
— | (18,678 | ) | — | (31,729 | ) | — | (50,407 | ) | ||||||||||||||
| Net income |
— | — | — | — | 1,556,815 | 1,556,815 | |||||||||||||||||
| Dividends declared |
— | — | — | — | (621,082 | ) | (621,082 | ) | |||||||||||||||
| Balance at Dec 31, 2007 |
(Won) | 3,207,839 | (Won) | 14,513,011 | (Won) | (741,825 | ) | (Won) | 122,543 | (Won) | 26,929,164 | (Won) | 44,030,732 | ||||||||||
| Translation into U.S. Dollars |
$ | 3,419,142 | $ | 15,468,994 | $ | (790,689 | ) | $ | 130,615 | $ | 28,703,010 | $ | 46,931,072 | ||||||||||
KOREA ELECTRIC POWER CORPORATION
Preliminary NON- CONSOLIDATED STATEMENT OF APPROPRIATION OF RETAINED
EARNINGS
Years ended December 31, 2007 and 2006
Date of Appropriation for 2007: February 29, 2008
Date of Appropriation for 2006: March 26, 2007
| Korean Won | Translation into U.S. Dollars 2007 | ||||||||
| 2006 | 2007 | ||||||||
| (In millions) | (In thousands) | ||||||||
| Unappropriated retained earnings: |
|||||||||
| Balance at beginning of year |
(Won) | — | (Won) | — | $ | — | |||
| Change in retained earnings due to cumulative effect of accounting change |
— | — | — | ||||||
| Change in retained earnings of affiliated companies due to cumulative effect of accounting changes |
680 | — | — | ||||||
| Net income |
2,070,543 | 1,556,815 | 1,659,364 | ||||||
| Balance at end of year before appropriation |
2,071,223 | 1,556,815 | 1,659,364 | ||||||
| — | |||||||||
| Appropriation of retained earnings: |
— | ||||||||
| Legal reserve |
— | — | — | ||||||
| Reserve for investment in social overhead capital |
60,000 | — | — | ||||||
| Reserve for research and human resource development |
60,000 | — | — | ||||||
| Reserve for business expansion |
1,330,141 | 1,089,851 | 1,161,640 | ||||||
| Dividends – 15% on par value at 750 Won per share in 2007 and 20% on par value at 1,000 Won per share in 2006 |
621,082 | 466,964 | 497,724 | ||||||
| 2,071,223 | 1,556,815 | 1,659,364 | |||||||
| Unappropriated retained earnings to be carried over to subsequent year |
(Won) | — | (Won) | — | $ | — | |||
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: |
Director Finance Team |
Date: February 26, 2008