Korea Electric Power Corporation

What they do

KEPCO operates as an integrated electric utility in Korea and reports equity investments in associates and joint ventures, including an entity it fully owns but does not consolidate because the government requires arm's-length transactions with KPX. The filing notes that many investments are classified as associates or joint ventures despite ownership above 50% because shareholder agreements require unanimous consent for material financial and operating decisions. It is selling its Uijeongbu substation, reclassified as held-for-sale in 2022 and sold during 2025, and plans to sell its investments in SPC Power Corporation, KEPCO SPC Power Corporation and KV Holdings, Inc., though timing and proceeds were unspecified as of December 31, 2024.

Revenue drivers

• Regulated electric utility operations — Core electricity sales from generation, transmission and distribution; the filing excerpts provided do not break out segment revenue or relative size.
• Equity-method associates — Income from entities where KEPCO exercises significant influence but does not control, including cases with ownership below 20% or above 50% where shareholder agreements prevent control.
• Joint ventures — Returns from entities where control is shared and material financial and operating decisions require unanimous consent, including some entities where KEPCO holds more than 50%.
• Asset sales — Proceeds from disposals such as the Uijeongbu substation, reclassified as held-for-sale in 2022 and sold during 2025; no sale price is stated in the excerpts.

Recent performance

Diluted EPS was $-2048 in 2018, $-3654 in 2019 and $3102 in 2020, according to the XBRL data. Operating cash flow was $21.61T in 2016, $15.25T in 2017, $8.82T in 2018, $10.31T in 2019 and $15.52T in 2020. The 20-F filed April 29, 2026 states KEPCO completed the sale of the Uijeongbu substation during the year ended December 31, 2025, and that the second hybrid bond was redeemed during that year. Applicable tax rates were 25.64%, 25.93% and 26.92% as of December 31, 2023, 2024 and 2025, respectively. The filing excerpts do not provide revenue, net income, or EPS for 2024 or 2025.

Strategy

KEPCO is divesting non-core assets, having completed the Uijeongbu substation sale in 2025, and it plans to sell its investments in SPC Power Corporation, KEPCO SPC Power Corporation and KV Holdings, Inc., with timing and proceeds unspecified as of December 31, 2024. It manages a complex investment portfolio in which several majority-owned entities are classified as associates or joint ventures because shareholder agreements require unanimous approval for material decisions. The second hybrid bond was redeemed during 2025; the filing states bondholders cannot require prepayment, the company holds a call option 12 years after issuance, and a step-up clause applies from the initial call date, with contractual maturity dates extendable indefinitely. The excerpts provided do not describe any other specific growth projects or capital investment plans.

Risks

• Government influence over subsidiaries — The government regulates KEPCO's ability to make operating and financial decisions over at least one 100%-owned entity by requiring arms-length transactions, preventing consolidation.
• Control may not follow ownership — Multiple entities where KEPCO owns more than 50% are classified as associates or joint ventures because shareholder agreements require unanimous consent or joint control.
• Unspecified divestment proceeds — The planned sales of SPC Power Corporation, KEPCO SPC Power Corporation and KV Holdings, Inc. had no specified timing or proceeds as of December 31, 2024.
• Hybrid bond step-up and extension features — The second hybrid bond was redeemed in 2025, but the remaining instruments have step-up clauses from the initial call date and allow KEPCO to indefinitely extend maturity and defer interest.

Outlook

The filing excerpts state that KEPCO plans to sell its investments in SPC Power Corporation, KEPCO SPC Power Corporation and KV Holdings, Inc., but timing and proceeds were not specified as of December 31, 2024. The company completed the Uijeongbu substation sale in 2025. The second hybrid bond was redeemed during 2025. The excerpts provided do not contain management guidance for revenue, earnings, or capital spending.