Korea Electric Power (KEPCO) (015760) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Korea Electric Power (KEPCO) is Korea's only state-owned electric utility, making money by delivering electricity nationwide and collecting bills, with the electricity business spanning generation, transmission and distribution, and retail sales accounting for most of its revenue. Amid a surge in fuel costs in 2021-2023 it could not raise tariffs and ran up losses in the ₩47 trillion range, but subsequent tariff hikes and stabilized fuel costs turned it back to a profit in 2025 with revenue of ₩97 trillion, operating profit of ₩13 trillion and net profit of ₩8.5 trillion, and in the first quarter of 2026 net profit also rose 6.7% from a year earlier. The most notable point is that a higher nuclear-plant utilization rate and an industrial-tariff overhaul support this year's earnings, while more than ₩200 trillion of debt and a structure in which tariffs are governed by government policy can shake earnings again when the cycle turns down.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Utilities & Environment” (Telecom & Utilities), a type typically read first through P/B.
Utilities and environmental firms run large asset bases — power plants, water systems, treatment facilities — under regulation with steady operations. Profit can move with rate rules and fuel costs, but the asset base reflects the real substance of the business, so price-to-book (P/B) — the price against asset value — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 410.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 42.9%).
- Revenue rose 4.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.7% higher than a year earlier.
- ROE is 17.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.9%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Development Bank 32.9% (corporate)
Controlling bloc incl. related parties 51.1%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Korea Electric Power (KEPCO) is a company that supplies electricity to the whole country and makes money by collecting the bills. It sends electricity generated by its power subsidiaries and bought from private generators to homes, factories and businesses across the country through transmission towers and the power grid, and collects an electricity bill each month. Almost all of its revenue comes from this sale of electricity, with industrial use the largest share, followed by general and residential use. The profit structure is simple: if it charges more than the fuel and purchase costs of making the electricity, it earns a profit; if it charges less, it runs a loss. So results are governed by international fuel prices and the tariff level set by the government.
The latest close is ₩35,950 and the market capitalization is ₩23.1 trillion. The price sits above its 20-day moving average (₩34,562) and below its 60-day moving average (₩37,113). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.0, a neutral level. The one-month change is -5.9%, the three-month change is -20.2%, and the position relative to the 52-week high is -47.0%. Relative strength versus the KOSPI is 18 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 18% of all stocks. Over the past three months it lagged the index by 4.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On valuation metrics alone it is very low. The P/E ratio (how many times one year's profit the price represents) is 2.70x and the P/B (how many times the company's net assets the price represents) is 0.46x — both well below the market average. ROE (how much is earned in a year on equity) is 17.7%, with profitability improving since the return to profit, and the operating margin is 13.9%. The dividend yield is 4.5%, high for the market, with ₩1,542 per share paid. The financial structure is heavy, however: the debt ratio (debt relative to equity) is a very high 529%. The interest expense on more than ₩200 trillion of debt runs to several trillion won a year, eating into a substantial part of profit. The current ratio (assets convertible to cash relative to debt due within a year) is also a low 46%, so short-term funding continues to depend on refinancing. In short, 'earnings look cheap but debt is heavy' is the crux of this company's finances.
Results follow a classic cyclical-recovery path. Fuel prices spiked in 2021-2023 while tariffs were held down, producing a huge loss — in 2022 alone, an operating loss of ₩32.7 trillion and a net loss of ₩24.5 trillion. After that, tariffs rose in stages and fuel costs stabilized, bringing a return to profit in 2024 and, in 2025, a recovery to operating profit of ₩13.5 trillion (+61% year on year) and net profit of ₩8.5 trillion (+145% year on year). In the first quarter of 2026, net profit rose 6.7% from a year earlier, continuing the profit trend. Two things clearly support this year's earnings. First, the nuclear-plant utilization rate rises from around 84% last year to about 89% this year. Because nuclear fuel costs far less than coal or gas, a larger nuclear share in generation lowers costs at the same tariff and improves the margin. Second, from April the industrial tariff structure was overhauled, raising rates during the evening peak and creating factors favorable to the average selling price. If these two factors are reflected across the year, 2026 earnings have room to exceed 2025's results. Conversely, the signals of a cycle turning down are a spike in international fuel prices or a tariff freeze or cut.
Disclosures illustrate the nature of a regulated business well. On May 8, 2026 it filed a correction to its annual results; on May 13 a correction related to consolidated financial statements; and on May 15 its first-quarter report. It held an IR alongside the results release. On May 22 there was a disclosure that a lawsuit or dispute related to a large construction project had been filed; as a company with many large-scale facility investments and contracts, litigation risk is a matter of ongoing management. In early June, disclosures related to board resolutions followed. Rather than order disclosures governing results as at an ordinary company, its results' direction is set by macro and policy variables such as tariff decisions, fuel prices and nuclear-plant operation.
Korea Electric Power (KEPCO) is a stock that is 'cheap by the numbers, but for a reason.' A P/E of 2.55x and a P/B of 0.45x are among the lowest in the market. Those low multiples reflect two things: one is that current earnings are in the strong phase of a cycle that has just recovered from losses, and the other is the structural burden of more than ₩200 trillion of debt and tariffs that rest in the government's hands. The supportive case is clear: if a higher nuclear-plant utilization rate and stable fuel costs continue and tariffs hold, low costs keep profit steady or growing and support the 4.5% dividend. The weak case is just as clear: if international fuel prices jump again or tariffs are frozen or cut to stabilize inflation, profit can shrink quickly as in the past loss period. The fact that heavy debt means fixed interest expense also magnifies the burden in a downturn. In sum, this is a classic regulated, cyclical utility — strong when tariffs and fuel costs are stable, and weak when that balance breaks.
🔎 Valuation vs peers Undervalued
Compared with a large domestic regulated state-owned energy company (Korea Gas Corporation) and KEPCO-affiliated utilities (KEPCO KPS, KEPCO E&C) — similar business structures where tariffs are tied to government policy and debt burdens are heavy.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Gas Corporation | 24.12x | 0.28x | 2.76% |
| KEPCO KPS | 17.10x | 1.62x | 10.87% |
| KEPCO E&C | 45.76x | 6.64x | 5.70% |
On an earnings basis, KEPCO's 2.55x P/E is markedly lower than the same regulated state-owned energy company, Korea Gas Corporation (22.48x), or the KEPCO affiliates. Its ROE of 17.7% also far outpaces Korea Gas Corporation (1.2%) and others. Its P/B of 0.45x versus net assets is likewise at a discount. That said, the low multiple cannot be read at face value simply as 'cheap.' First, current earnings are in the strong phase of a cycle that has just recovered from losses, so there is a distortion in which the trailing P/E looks even lower than it really is. Second, more than ₩200 trillion of debt explains a substantial part of the P/B discount. Even so, in a phase where a higher nuclear-plant utilization rate and stable tariffs continue, there is room for earnings to hold or grow on a forward basis too, so as long as the recovery cycle holds, the multiple is read as being in undervalued territory. In the end, the key is whether the tariff-and-fuel-cost balance is maintained.
Price history Close · MA20 · MA60
The latest close is ₩35,950 and the market capitalization is ₩23.1 trillion. The price sits above its 20-day moving average (₩34,562) and below its 60-day moving average (₩37,113). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.0, a neutral level. The one-month change is -5.9%, the three-month change is -20.2%, and the position relative to the 52-week high is -47.0%. Relative strength versus the KOSPI is 18 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 18% of all stocks. Over the past three months it lagged the index by 4.3%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -4.33% / 6M -50.68% / 12M -52.23%
Key metrics Computed vs whole-market median
Valuation
The P/E of 2.70x is below the whole-market median (12.97x). The P/B of 0.46x is below the whole-market median (0.84x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 17.3%, above the whole-market average (3.0%). The operating margin is 13.9%. The debt ratio is 410.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $62.0B | $65.6B | $68.4B | +4.32% ↓ slower |
| Operating profit | -$3.2B | $5.9B | $9.5B | +61.28% |
| Net profit | -$3.4B | $2.5B | $6.0B | +144.72% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $42.6B | $50.1B | $62.0B | $65.6B | $68.4B |
| Operating profit | -$4.1B | -$22.9B | -$3.2B | $5.9B | $9.5B |
| Net profit | -$3.7B | -$17.2B | -$3.4B | $2.5B | $6.0B |
| Revenue CAGR | 4-yr avg 12.57% | ||||
Revenue rose 4.3% year over year (2023 ₩88.2 trillion → 2024 ₩93.4 trillion → 2025 ₩97.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 61.3% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.6%. The two-year revenue CAGR is 5.1%. In the most recent quarter (Q1 2026), revenue was 0.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 4.3%, is on the high side.
- ROE of 17.3% points to solid profitability.
Points to watch
- Debt far exceeds equity (debt ratio 410.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 42.9%).
- Revenue rose 4.3% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15EarningsFirst-quarter 2026 report filed. Consolidated revenue of ₩24.4 trillion, operating profit of ₩3.78 trillion and net profit of ₩2.52 trillion, with net profit up 6.7% year on year and the profit trend continuing.Near term: confirms continued profit. Medium term: the key is whether the effects of nuclear-plant utilization and the tariff overhaul are reflected across the year. Source
- 2026-05-08EarningsCorrection to annual results disclosed and a results-related IR held. Confirmed the 2025 return-to-profit results of revenue of ₩97.4 trillion, operating profit of ₩13.5 trillion and net profit of ₩8.5 trillion.Medium term: reaffirms the normalization of profitability after the loss period, suggesting a strong phase of the recovery cycle. Source
- 2026-05-22UpdateDisclosure of the filing of lawsuits related to large-scale facilities and construction (claim amounts above a certain size). Given the business's many large infrastructure investments and contracts, lawsuits and disputes arise regularly.Near term: the financial impact of individual lawsuits is limited, but it shows that dispute risk is ever-present given large capital investment. Source
- 2026-06-02FilingDisclosure related to a board resolution. As a regulated state-owned company, key decisions such as dividends, investment and financing are made through the board.Medium term: serves as the basis for shareholder returns and financial direction, such as dividend policy and investment plans. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-02Shareholders' meeting notice
- 2026-06-02Shareholders' meeting notice
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-22Litigation disclosure (amended)
- 2026-05-22Litigation disclosure
- 2026-05-21Shareholders' meeting notice
- 2026-05-15PeriodicQuarterly report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-05-08EarningsEarnings disclosure
- 2026-05-07Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.