Korea Electric Power Corporation
- Open
- 11.63
- Day high
- 11.74
- Day low
- 11.63
- Prev close
- 11.31
- Volume
- 214K
- Mkt cap
- $15.0B
- P/E (TTM)
- 2.6
- EPS (TTM)
- $4.44
- P/B
- 0.4
- P/S
- 0.2
- Yield
- 0.47%
- Per share
- $0.05
Korea Electric Power Corporation (KEP) is a Utilities company listed on NYSE. The stock is down 18% over the past year. Drillr has 1 published research article covering KEP.
Korea Electric Power Corporation (KEP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KEP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 12, 2026 | $0.45 | $0.27 | -39.9% | $15.5B | +1.1% |
| May 13, 2026 | $1.31 | $1.30 | -1.1% | $16.4B | -2.9% |
| Feb 26, 2026 | $0.78 | $0.71 | -8.7% | $16.3B | -3.5% |
| Dec 18, 2025 | $2.08 | $2.11 | +1.4% | $19.9B | +3.1% |
| Sep 15, 2025 | $0.60 | $0.63 | +4.8% | $16.1B | +1.8% |
| Jun 17, 2025 | — | $1.25 | — | $16.6B | — |
| Mar 11, 2025 | $0.55 | $0.57 | +2.9% | $15.8B | -6.5% |
| Sep 9, 2024 | $-0.00 | $0.04 | +1373.9% | $14.8B | -1.3% |
| Jun 13, 2024 | $0.41 | $0.33 | -19.5% | $17.1B | -2.2% |
| Mar 12, 2024 | $-0.06 | $0.73 | +1317.5% | $17.4B | +2.8% |
| Dec 7, 2023 | $0.51 | $0.47 | -8.0% | $18.0B | +1.7% |
| Sep 8, 2023 | $-1.35 | $-1.19 | +12.1% | $14.9B | -0.0% |
Korea Electric Power Corporation company profile
Overview
Korea Electric Power Corporation (NYSE:KEP) is South Korea's dominant electric utility company, founded in 1961 and headquartered in Naju-si, South Korea. As an integrated electric utility, KEPCO generates, transmits, and distributes electricity throughout South Korea while also operating internationally. The company went public in 1994 and serves as the backbone of South Korea's electrical infrastructure, providing power to residential, commercial, industrial, and agricultural customers across the nation. KEPCO operates through multiple business segments including transmission and distribution, nuclear power generation, thermal power generation, and other ancillary services.
Business
Korea Electric Power Corporation operates as South Korea's primary electric utility company, functioning as a vertically integrated monopoly that controls the entire electricity value chain from generation to end-user delivery. The electric utility industry is characterized by high capital requirements, regulatory oversight, and the need for reliable 24/7 power supply to support economic activity. KEPCO's operations are organized into four main business segments. The **Transmission and Distribution** segment forms the company's core infrastructure backbone, operating an extensive network that includes 34,923 circuit kilometers of transmission lines ranging from 765 kilovolts to high-voltage direct current lines, supported by 892 substations with 344,286 megavolt-amperes of transformer capacity. The distribution system encompasses 132,376 megavolt-amperes of transformer capacity and nearly 10 million support units covering over 532,000 circuit kilometers of lines. The **Nuclear Power Generation** segment represents a significant portion of KEPCO's generation capacity, utilizing nuclear reactors to produce baseload electricity. Nuclear power provides consistent, carbon-free electricity generation, though it requires substantial upfront capital investment and ongoing safety management. The **Thermal Power Generation** segment includes coal-fired, natural gas, and oil-burning power plants that provide flexible generation capacity to meet varying electricity demand throughout the day and seasons. The **Others** segment encompasses various ancillary services including utility plant maintenance, electric power information technology services, facility maintenance, electric meter reading, security services, and nuclear fuel sales. KEPCO's total generation capacity reaches 82,459 megawatts across 763 generation units, utilizing diverse energy sources including nuclear, coal, liquefied natural gas, hydroelectric, wind, solar, fuel cells, and biogas to ensure energy security and grid stability.
Revenue model
KEPCO generates revenue primarily through **electricity sales** to end customers, operating under a regulated utility model where electricity rates are set by government authorities rather than market forces. The company sells electricity to residential, commercial, educational, industrial, agricultural customers, as well as providing street lighting and overnight power services. Industrial customers typically represent the largest revenue segment due to their high electricity consumption volumes. Beyond core electricity sales, KEPCO earns revenue from **ancillary services** including utility maintenance, information technology services, facility management, meter reading, and security services. The company also generates income from **nuclear fuel sales** and various infrastructure services. Revenue from these non-electricity sources provides some diversification, though electricity sales remain the dominant revenue driver. Several factors significantly impact KEPCO's profitability margins. **Fuel costs** represent the largest variable expense, with coal, liquefied natural gas, and nuclear fuel prices directly affecting operating margins. The company's recent financial performance demonstrates this sensitivity - fuel costs decreased 18.6% year-over-year in 2024, contributing to improved profitability. **Regulatory tariff decisions** critically impact revenue generation, as seen with the industrial service power tariff increase of KRW 16.1 implemented in October 2024. **Foreign exchange fluctuations** affect both fuel import costs and the company's substantial foreign currency debt obligations, though KEPCO employs hedging strategies to mitigate these risks. **Nuclear plant utilization rates** significantly influence cost efficiency, as nuclear power provides low marginal cost baseload generation. The company targets nuclear utilization rates in the early-to-mid 80% range. **Environmental regulations** and carbon pricing policies increasingly influence generation mix decisions and capital allocation toward cleaner energy sources, potentially affecting long-term cost structures.
Competitive moat
KEPCO possesses a **strong regulatory moat** as South Korea's monopolistic electric utility, benefiting from exclusive rights to transmit and distribute electricity throughout the country. This natural monopoly status stems from the prohibitive cost of duplicating electrical infrastructure and the government's strategic control over essential energy services. The regulatory framework provides predictable, though government-controlled, revenue streams while creating virtually insurmountable barriers to entry for potential competitors. The company's **infrastructure moat** is substantial, built upon decades of capital investment in generation, transmission, and distribution assets that would require hundreds of billions of dollars to replicate. KEPCO's integrated network effects create operational efficiencies and reliability advantages that strengthen its competitive position. The company's technical expertise in nuclear power operations and grid management represents specialized knowledge accumulated over decades. However, KEPCO's moat faces **emerging challenges** from distributed energy resources, renewable energy adoption, and potential energy market liberalization. Government policies promoting renewable energy and energy independence could gradually erode KEPCO's generation monopoly. Industrial customers increasingly explore on-site generation and energy storage solutions, potentially reducing demand for grid electricity. Additionally, South Korea's commitment to carbon neutrality may require substantial capital investments in clean energy infrastructure while potentially stranding existing fossil fuel assets. The **regulatory dependency** that provides KEPCO's moat also represents a vulnerability, as government tariff decisions directly impact profitability. Political considerations often influence electricity pricing, potentially constraining the company's ability to pass through cost increases to customers, as evidenced by the substantial losses incurred in 2022-2023 due to elevated fuel costs and regulated tariff constraints.
Risks & safety
KEPCO presents **moderate financial risk** with concerning liquidity metrics but manageable solvency indicators. **Liquidity concerns:** - Current ratio of 0.46 indicates insufficient short-term assets to cover current liabilities - Quick ratio of 0.30 shows limited liquid assets relative to immediate obligations - Negative free cash flow of -KRW 623 billion in Q4 2024, though operating cash flow remained positive at KRW 2.0 trillion **Debt and solvency:** - Debt-to-equity ratio of 0.61 represents manageable leverage levels - Total debt of approximately KRW 132 trillion requires ongoing refinancing capabilities - Government backing as state-controlled utility provides implicit support for debt obligations **Valuation metrics:** - Price-to-earnings ratio of 3.2 suggests potential undervaluation - Price-to-book ratio of 0.33 indicates trading below tangible book value - EV/EBITDA of 1.24 appears attractive relative to utility sector norms **Other considerations:** - KRW 30 trillion financial stabilization plan (2022-2026) demonstrates commitment to financial recovery - Recent return to profitability in 2024 after significant losses in 2022-2023 - Regulatory tariff increases provide pathway to improved cash generation
Recent development
KEPCO has undergone significant strategic transformation over the past few years, primarily focused on financial stabilization following substantial losses during the global energy crisis. The company implemented a **comprehensive KRW 30 trillion financial stabilization plan** spanning 2022-2026, aimed at restoring profitability through cost management and tariff adjustments. **Tariff restructuring** has been a key strategic initiative, with the company securing industrial service power tariff increases of KRW 16.1 in October 2024. Management indicated no immediate plans for additional tariff increases, suggesting confidence in current pricing levels supporting financial recovery. The company returned to profitability in 2024 with net income of KRW 2.35 trillion after experiencing losses of KRW 19.4 billion in 2022 and KRW 3.5 trillion in 2023. **Operational optimization** efforts have focused on improving generation efficiency and fuel cost management. The company achieved an 18.6% reduction in fuel costs and 11.6% decrease in power purchase costs during 2024. Nuclear power plant utilization rates target the early-to-mid 80% range, while coal plants operate at early-to-mid 50% utilization and LNG plants maintain approximately 20% utilization rates. **Financial management strategies** include comprehensive hedging programs to mitigate foreign exchange risks on both fuel purchases and foreign currency borrowings. The company is considering **asset revaluation** to improve its financial standing and balance sheet metrics. Management has indicated flexibility regarding dividend policy, with decisions based on annual performance rather than predetermined payout ratios. **Infrastructure development** continues with ongoing investments in grid modernization and generation capacity, though specific new project details were not extensively discussed in recent earnings calls. The company maintains focus on balancing energy security, cost efficiency, and environmental considerations in its generation mix planning.
KEP company profile · for informational purposes only — not investment advice.
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