Korea Electric Power Corp (KEP)

The Korean government announced on 3 September 2026 a plan to merge KEPCO's five non-nuclear generation subsidiaries into a single entity 4.

The climate ministry said the new generator would start in October 2027 and stay a wholly owned subsidiary of KEPCO 8.

KEPCO said it would disclose details again once they are set, or within three months of its 2 October filing 4.

On results, first-half 2026 operating revenues were Won 46,317 billion and operating income was Won 4,913 billion, against Won 5,889 billion a year earlier 2.

The Asia Business Daily tied the drop to lower electricity sales volume and higher fuel costs from rising international coal prices 7.

At 30 June 2026 total assets were Won 262,561 billion and total equity was Won 51,845 billion 3.

Consolidated liabilities stood at 210.7 trillion won at the end of June, with borrowings of 133.3 trillion won 7.

Korea Electric Power Corporation (KEPCO) told the SEC it will close its shareholder register from 17 November to 25 November 2026 for an upcoming extraordinary general meeting 5.

The filing does not list what the meeting will vote on 5.

The Korean power industry traces its origin to the first electric utility in 1898, and KEPCO was established by the Government on 31 December 1981 as the successor to Korea Electric Company 1.

It stopped being wholly state owned in 1989, when the Government sold 21 percent of its common stock 1.

The big structural change came with the Restructuring Plan, published in January 1999 1. By April 2001 KEPCO had split its generation into one nuclear subsidiary, KHNP, and five non-nuclear ones 1.

Since April 2001 electricity has had to be bought and sold through the Korea Power Exchange, with KEPCO keeping a substantial monopoly over transmission and distribution 1. Plans to sell stakes in the generators were put on hold 1.

KEPCO reported an operating profit of Won 4,098 billion in 2020 and an operating loss of Won 5,723 billion in 2021, mainly on a higher price of LNG, more power purchased and higher emission costs 10.

In 2022 sales rose 17.6 percent to Won 70,546 billion, but cost of sales jumped 58.5 percent to Won 100,904 billion, so the gross loss reached Won 30,358 billion 10.

Power purchases from other generators and fuel burned by its own plants both cost far more, mainly because of higher LNG and other fuel prices 10.

The consolidated net loss that year was Won 24,429 billion 9. Tariff increases came in steps: the usage charge rose Won 4.9 per kilowatt-hour on 1 April 2022 and again on 1 October 2022 1.

In 2023 sales rose 24.0 percent to Won 87,476 billion, as the average unit sales price climbed 26.8 percent to Won 152.80 per kilowatt-hour after tariff increases made with the Government 9.

Fuel costs eased, and the gross loss shrank to Won 2,223 billion 9. The usage charge rose by Won 11.4 and Won 8.0 per kilowatt-hour in January and May 2023 1.

On 24 October 2024 industrial rates rose by an average of Won 16.1 per kilowatt-hour, or 9.7 percent, while other customers kept their rates 1.

For the year, sales rose 5.8 percent to Won 92,578 billion and gross profit was Won 10,614 billion, against a gross loss the year before 19.

In 2025 sales rose 4.3 percent to Won 96,568 billion, as the average unit sales price rose 4.6 percent to Won 170.37 per kilowatt-hour 1. The volume sold edged down 0.1 percent to 549,417 gigawatt hours 1.

Operating profit rose to Won 14,011 billion from Won 8,461 billion, mainly on lower prices of LNG and other raw materials, and net profit rose to Won 8,667 billion from Won 3,622 billion 1.

Abroad, KEPCO signed a prime contract in December 2009 with the Emirates Nuclear Energy Corporation, worth US$18.6 billion at the start, to build four reactors at Barakah in the UAE 1. Units 1 to 4 reached commercial operation in April 2021, March 2022, February 2023 and September 2024 1.

On 17 June 2025 its nuclear subsidiary KHNP signed a contract to build Dukovany Units 5 and 6 in the Czech Republic, worth about Won 25,861 billion 1.

What KEPCO sells and to whom

KEPCO is an integrated electric utility that transmits and distributes substantially all of the electricity in Korea 1. Through six wholly owned generation subsidiaries it also generates the substantial majority of Korea's power 1.

With its generators it owned about 53.4 percent of Korea's generation capacity at the end of 2025 1. It sold 549,417 gigawatt hours in 2025 1.

Industry is the largest customer group at 280,221 gigawatt hours, then commercial customers at 138,315 and homes at 88,474 1.

How the price is set

Prices to customers are regulated by the Government, which weighs the need to recover fair operating costs and earn a fair return 1. Since 16 April 2026 an industrial customer's energy charge runs from Won 88.0 to Won 242.9 per kilowatt-hour, depending on contract, voltage, season and time of day 1.

Residential customers pay a base charge from Won 730 to Won 7,300 a month, plus a usage charge of Won 105.0 to Won 307.3 per kilowatt-hour 1.

On the buying side, KEPCO bought 545,192 gigawatt hours in 2025 1. KHNP supplied 33.2 percent, the five non-nuclear generators 32.7 percent and independent power producers 34.1 percent 1.

Nuclear power: KHNP

KHNP runs Korea's nuclear and hydroelectric plants 1. KEPCO and its generators had 860 generation units with 83,555 megawatts of installed capacity at the end of 2025 1.

Shin-Hanul 1 began commercial operation in December 2022 and Shin-Hanul 2 in April 2024, and KHNP is building two more 1,400 megawatt units at Saeul, due by 2026 and 2027 1.

The life extension of the Kori 2 unit was approved in November 2025, and it resumed operation in April 2026 1.

Thermal power and fuel

Five non-nuclear subsidiaries burn coal, oil and gas: KOSEP, KOMIPO, KOWEPO, KOSPO and EWP 1. LNG made up 9.9 percent of the fuel for generation in 2025 1.

In 2025 it bought about 4.87 million tons of LNG from Korea Gas Corporation, in which KEPCO owns a 20.47 percent equity interest 1. Government policy calls for 28 older coal units to be converted to LNG by 2036 1.

The grid

At the end of 2025 its transmission system had 36,183 circuit kilometers of lines and 939 substations 1. The distribution system had 556,356 circuit kilometers of line 1.

Overseas projects

KEPCO holds an 18 percent equity interest in Barakah One PJSC and in Nawah Energy Company, which operate the Barakah plant in the UAE 1. The total project cost is expected to be about US$29.5 billion 1.

KHNP also builds turbine islands at El Dabaa in Egypt, from 2023 to a planned 2029 finish, and a tritium removal facility at Cernavoda in Romania worth about 193 million euros 1.

In China, KEPCO has a 42 percent equity interest in a Shanxi power partnership 1. In the Philippines it plans to sell its interests in SPC Power Corporation and the CFBC Coal Power Plant 1.

People and rivals

KEPCO and its generation subsidiaries had 48,650 regular employees at the end of 2025 1. Kim Dong-Cheol has been President and chief executive since 19 September 2023 1.

KEPCO has no rival in transmission and distribution, but it buys from competing generators: 44 independent power producers and 7,355 renewable energy producers at the end of 2025 1.

Current problems

In the first half, operating income fell Won 976 billion to Won 4,913 billion, and net income fell to Won 2,797 billion 2.

On 21 May 2026 KHNP started arbitration seeking about USD 1.1 billion over the operational support contract for the UAE plant, an amount KEPCO disputes 11.

KEPCO has recognized a provision of Won 1,450 billion for costs of prolonged nuclear projects 1. Long-term debt was Won 83,882 billion at the end of 2025, or 170.1 percent of equity 1.

The umbrella, in words

At the end of 2025 KEPCO had 169 subsidiaries, 107 associates and 122 joint ventures 1. Its six wholly owned generation subsidiaries are KHNP, KOSEP, KOMIPO, KOWEPO, KOSPO and EWP 1.

Its non-generation subsidiaries include KEPCO E&C, KEPCO KPS, KEPCO NF and KEPCO KDN 1. The full list is in the annual report's Exhibit 8.1, which is not all listed companies 1.

KEPCO owns 20.47 percent of Korea Gas Corporation, which imports and wholesales LNG 1. It and its six generators together own 100 percent of the Korea Power Exchange 1.

The Government holds 18.2 percent directly and Korea Development Bank, which it wholly owns, holds 32.9 percent, together 51.1 percent of the common stock 1. The National Pension Service holds 7.9 percent 1.

The KEPCO Act requires the Government to own at least 51 percent of its capital, and all shareholders have equal voting rights 1.

KEPCO's current budgets put capital spending on generation, transmission and distribution at about Won 23,099 billion in 2026, Won 27,391 billion in 2027 and Won 27,625 billion in 2028 1.

The climate ministry said it would start in October 2027, with 1,800 employees at headquarters, 600 fewer than the five companies now have 8.

The ministry also said it would seek a way to exempt the merger from Fair Trade Commission review 8. It said the new generator would have a capacity of 53 gigawatts 8.

KEPCO said on 2 October it will disclose the details again once set, or within three months 4.

KEPCO said holders on its register on 16 November 2026 may vote at the extraordinary general meeting 5.

On finances, the Asia Business Daily reported that KEPCO plans to keep electricity rates stable in the second half 7. KEPCO also warned that financial normalization may slow if higher oil prices and exchange rates fully take effect 7.

The annual report says the Government announced plans to raise the tariff gradually to address KEPCO's cumulative deficit by 2027, but the annual report says there is no assurance this will happen 1.

On 16 March 2026 KEPCO announced a restructuring of its time-of-use tariff to shift demand toward daytime hours, when solar power is most abundant 1.

Government coal policy calls for 12 older coal units to be converted to carbon-free sources, including pumped-storage hydro, hydrogen and ammonia co-firing, by 2038 1.

KEPCO plans to end its overseas coal-fired generation projects and switch much of its overseas portfolio to eco-friendly projects 1.

KEPCO's board resolved on 30 October 2026 to give Won 13.6 billion to the Korea Institute of Energy Technology, bringing planned 2026 contributions to Won 62.4 billion 6.