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Board of Directors (Care)

Audit Committee
(Chair person : Kim Jae-shin)

ESG Committee
(Chair person : Seong Si-heon)

Risk Deliberation Committee
(composed of internal and external experts)

Financial Risk
- Investment deliberation
- Budget deliberation
- Currency risk management
- External construction management
Business Risk
- Deliberation on risks for domestic projects, overseas projects, and government-requested Projects
Operational Risk
- Conflict management
- Contract management
- Security management
- Safety management, etc.

External Auditor
(Accounting Firm: EY)

- Auditing of financial statements
- Verification of internal accounting management system

Internal Audit
Organization
(Audit Office)

- Comprehensive audit
- Scheduled audit
- Specific audits, etc.

※ CRO : Lee Jong-hwan,, Senior Executive Vice President
※ CISO : Yang Yong-jun, Head of Information Security Team

Emerging Risks (Medium & Long Term)

(Risk 1) Lower Profitability due to fuel cost increase(+)

  • ▪ Description of the Risk

    A sharp increase in costs of fuel such as bituminous coal, oil, and LNG due to supply insecurity because of war and various other reasons may not be fully reflected in the electricity rate.
  • ▪ Potential Impact

    Failure to raise electricity rates to a sufficient level in a timely manner in response to rising fuel costs may result in deterioration of our business performance.
  • ▪ Mitigation

    According to the cost-linked rate plan above, in December 2021, the base fuel cost (electricity charge) was announced, reflecting the increase in international fuel prices. In consideration of the burden to the public suffering from prolonged COVID-19, it was decided that increase of the base fuel cost would be divided into two parts, by KRW 4.9/kWh in April and additional KRW 4.9/kWh in October

(Risk 2) Compliance costs due to environmental policies and regulations(+)

  • ▪ Description of the Risk

    Costs may increase for the implementation of environment-related government policies and laws (e.g., reduction of GHG emissions and reduction of coal power generation according to the nationally determined contributions (NDC), renewable portfolio standard (RPS), etc.)
  • ▪ Potential Impact

    Profitability of KEPCO and its power generation subsidiaries may deteriorate due to environmental law compliance costs (e.g., changes in carbon credit prices (prices of certified emission reduction), increase in new and renewable energy supply costs, etc.).
  • ▪ Mitigation

    In January 2021, we introduced a cost-linked electricity rate system to strengthen the correlation between climate and environmental costs and electricity rates and to enhance transparency through separate billing of these costs. The item ‘climate environment fee’ has been separated from the existing electricity rate items. Climate environment fee reflects the RPS and ETS implementation costs and costs relating to reducing coal power generation. In December 2021, in line with the purpose of introducing the cost-linked rate plan, the climate environment fee to apply in 2022 was announced by reflecting the increase in climate environment cost in 2021. In consideration of the burden to the public suffering from prolonged COVID-19, etc., an increase of KRW 2.0/kWh from the previous level has applied since April 2022.