Korea Electric Power Corporation President Reports 15 Trillion Won Financial Improvement

Korea Electric Power Corporation (KEPCO) President Kim Dong-cheol reported that the company achieved a financial improvement of 15 trillion won over the past four years. However, he noted that the rising international energy prices have not been reflected in electricity rates, leading to an increase in the company's debt ratio.

During a National Assembly audit on October 19, Kim responded to a question from Representative Kim Wi-sang of the ruling People Power Party regarding efforts to improve finances ahead of the expiration of a special provision for increasing KEPCO's bond issuance limit. Kim stated, "From 2022 to 2025, KEPCO has achieved a financial improvement of 15 trillion won."

He further explained, "Despite this, KEPCO's debt ratio has increased because energy prices surged 7 to 12 times from 2021 to 2023 due to the Russia-Ukraine war, yet these increases have not been reflected in electricity rates."

Kim also acknowledged that KEPCO requested advance payment of electricity fees from Samsung Electronics and SK Hynix. When asked if he personally made the request, he clarified, "It was done by the relevant department."

In response to inquiries about whether the request for advance payment was made after it was rejected, he stated, "It's not necessarily that way," adding that it was part of efforts to diversify funding sources.

The discussion also touched on the financial burden of future large-scale power grid investments. Kim mentioned that the 11th Long-Term Transmission and Transformation Facility Plan estimates that 113 trillion won will be needed for transmission and distribution costs by 2038, averaging about 10 trillion won annually.

He indicated that additional costs related to the government's plans for expanding underground transmission networks will also be incorporated into future plans. Regarding the costs associated with the 12th Long-Term Transmission and Transformation Facility Plan, he affirmed, "Naturally, all increased costs will be reflected."