[6-K/A] Korea Electric Power Corp Amended Current Report (Foreign Issuer)
Korea Electric Power Corporation (KEPCO) amended its Form 6-K/A to disclose parent guarantees totaling KRW 1,173,253,249,214 (USD 842,854,345.70) for two Saudi project companies, Remal Energy Company and Naseem Energy Company. The guarantees cover payment obligations under power purchase agreements, equity bridge loans, capital contributions and local content management.
The guaranteed amount represents about 2.8% of KEPCO's consolidated equity of KRW 41,362,833,061,743 (as of Dec 31, 2024). KEPCO reports an aggregate financial guarantees balance of KRW 2,508,354,664,718. The board approved the guarantees on November 20, 2024 with all eight outside directors present and the audit committee standing member in attendance. The filing notes some executed guarantees are smaller than previously approved amounts and uses an exchange rate of 1 USD = 1,392 KRW.
- Board approval with full outside director attendance (8 of 8) and audit committee member present, indicating formal oversight
- Guaranteed amount equals 2.8% of consolidated equity (KRW 41,362,833,061,743), limiting proportional exposure
- Some executed guarantees decreased below Board-approved amounts, which reduces the realized contingent exposure
- Contingent liability of KRW 1,173,253,249,214 (USD 842,854,345.70) for Remal and Naseem projects
- Total financial guarantees balance of KRW 2,508,354,664,718 represents ongoing contingent obligations
- Certain lenders/creditors are not yet confirmed as the filing states some creditor details are prior to execution of financial contracts
Insights
TL;DR: KEPCO assumes contingent exposure of KRW 1.17T (USD 842.85m) for two Saudi projects, modest relative to equity at 2.8%.
The filing documents explicit parent guarantees for project-level obligations including PPA payments, equity bridge loans, capital contributions and local content commitments. The headline KRW 1,173,253,249,214 equals USD 842,854,345.70 using the stated 1,392 KRW/USD rate. KEPCO's consolidated equity base (KRW 41,362,833,061,743) limits the relative exposure to 2.8%, suggesting containment of balance-sheet risk, although the guarantees create contingent liabilities through 2029 to 2032 depending on instrument type. The aggregate guarantees balance of KRW 2,508,354,664,718 provides additional context for ongoing contingent obligations.
TL;DR: Board oversight was documented with full outside director attendance and audit committee participation at approval.
KEPCO records formal board approval on November 20, 2024 with 8 of 8 outside directors attending and the standing audit committee member present, indicating governance processes were followed. The company also notes executed guarantee amounts in some agreements have decreased below Board-approved levels and that it will file amendments once guarantee agreement terms are finalized, demonstrating follow-up disclosure practices. Some creditor details remain unconfirmed prior to final contract execution, which KEPCO discloses.
FAQ
What guarantees did KEPCO disclose in the Form 6-K/A (KEP)?
How large is the guarantee relative to KEPCO's equity?
What are the key terms and durations of the guarantees?
Are the lenders and creditors fully confirmed?
When did KEPCO's Board approve the guarantees?
