Korea Electric Power supplies electricity nationwide, and its main revenue comes from adding directly purchased power to the electricity its generation subsidiaries produce and selling it to homes and factories at government-set tariffs. It emerged from massive losses in 2022 to post 2025 operating profit of ₩13.5 trillion and net profit of ₩8.5 trillion, and in the first quarter of 2026 it kept the recovery going with net profit of ₩2.5 trillion, up 6.7% from a year earlier. The key point to watch: profit is steady and profitability is good, with a 4.2% dividend yield and 17.7% ROE, but tariffs have been frozen for several quarters while fuel costs rise, and with over ₩200 trillion of debt and a heavy interest burden remaining, fuel prices largely dictate the direction of profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 529.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 45.8%).
- 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 17.7% (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
- Korea Electric Power is a state-owned enterprise that effectively holds a monopoly on electricity sales in Korea.
- The way it earns money is simple.
- It gathers the electricity made by its generation subsidiaries and power bought from private suppliers, sells it to homes, shops and factories at government-approved tariffs, and keeps the spread.
- So the core of its results is an asymmetric structure in which the government sets the sales tariff while fuel and power-purchase costs track international prices.
- When fuel (LNG, coal, uranium for nuclear plants) prices rise, costs increase immediately but tariffs cannot be raised right away, so profit is squeezed; the reverse lifts profit.
- The latest close is ₩35,200 and the market cap is ₩22.6 trillion.
- The price sits below its 20-day line (₩38,102) and below its 60-day line (₩40,405).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 39.4, a neutral level.
- The one-month change is -3.3%, the three-month change is -11.8%, and it stands -48.2% below its 52-week high.
- Its relative strength versus the KOSPI is 21 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 79% of all stocks for strength.
- Over the past three months it lagged the index by 35.4%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The valuation metrics are very low.
- The P/E ratio (how many years of profit the price equals) is 2.64x, and the P/B (price relative to book net assets) is 0.47x, so it trades at half of net assets.
- Profitability is on the good side, with ROE (how much is earned in a year on equity) at 17.7% and an operating margin of 13.9%.
- The dividend yield is a high 4.2%.
- The financial burden, however, is clear.
- The debt ratio (debt against equity) is 529%, meaning debt is more than five times equity.
- The interest coverage ratio (how many times operating profit covers interest) is 2.68x, so the interest burden is heavy relative to profit.
- The current ratio (assets that can be turned into cash quickly against debt due within a year) is also a low 45.8%.
- In short, it is a company that is cheap and profitable but carries heavy debt.
- The scale of recovery is large.
- Operating profit swung from a ₩32.7 trillion loss in 2022 to a ₩4.5 trillion loss in 2023, a ₩8.4 trillion profit in 2024 and a ₩13.5 trillion profit in 2025.
- Net profit also turned positive, from a ₩24.5 trillion loss in 2022 to a ₩8.5 trillion profit in 2025.
- This is the result of profit normalizing as it escaped the shock of surging international fuel prices during the loss years.
- But the pace of recovery is now moderating.
- The first quarter of 2026 brought revenue of ₩24.4 trillion, operating profit of ₩3.8 trillion (up 0.8% year over year) and net profit of ₩2.5 trillion (up 6.7%), with operating profit roughly flat and only net profit up slightly.
- This year looks more like a phase of stably holding onto profit than a big recovery.
- If this flow continues, 2026 net profit of around ₩9 trillion, similar to or slightly above last year, is possible, and on that basis the price multiple is still low.
- Disclosures center on results and financial and legal issues.
- In May 2026 it disclosed first-quarter preliminary consolidated results, confirming continued profit with operating profit of ₩3.8 trillion and net profit of ₩2.5 trillion.
- That same May there was a disclosure on the filing of a lawsuit involving a claim above a set amount.
- In June, a shareholders' meeting notice, a corporate governance report and a change in a large shareholding were disclosed in sequence.
- Under government policy, electricity tariffs have been frozen for 11 straight quarters for households and 5 straight quarters for industry, so it is a phase of absorbing fuel-cost changes without tariff increases.
- There are both strong conditions and cautions.
- While profit settles into positive territory, a low price tag of a 2.8x P/E, 0.49x P/B and 4.2% dividend yield reads as undervalued.
- It trades at half of net assets, and ROE of 17.7% is not low either.
- On the other hand, there are two cautions.
- First, with tariffs frozen for several quarters under government control, a rise in fuel costs would squeeze profit again.
- Second, cumulative debt in the ₩200 trillion range and a large interest burden remain, constraining financial headroom.
- In short, the stock is strong when fuel prices are stable and the tariff framework holds, and profit can shake when fuel prices spike sharply or the tariff freeze drags on.
🔎 Valuation vs peers Undervalued
Compared against government-regulated domestic energy and power state enterprises and KEPCO affiliates.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Gas Corporation | 22.41x | 0.28x | 1.23% |
| KEPCO KPS | 16.21x | 1.50x | 9.23% |
| KEPCO E&C | 42.94x | 5.86x | 13.66% |
The valuation is set low. The 2.8x P/E and 0.49x P/B sit cheaply on both an earnings and a net-asset basis even within the regulated-energy peer set (Korea Gas P/B 0.28x with ROE 1.2%, KEPCO KPS P/E 15.9x, KEPCO E&C P/E 42.5x). In particular, despite ROE of 17.7% being higher than peers, the P/B is well below 1x. But there are reasons for this discount. Because the government controls tariffs, profit is hard to forecast, and financial weaknesses such as debt in the ₩200 trillion range, the interest burden and a 45.8% current ratio are reflected in the low multiples. The P/E on last year's reported earnings and the P/E on this year's estimated earnings are both similar at 2.6-2.8x, so this is closer to a stable phase where a low multiple is entrenched than an inflection in which profit turns over sharply. In sum, it is a stock that is cheap relative to profitability and assets, with financial and regulatory risk being the reason.
Price history Close · MA20 · MA60
The latest close is ₩35,200 and the market capitalization is ₩22.6 trillion. The price sits below its 20-day moving average (₩38,102) and below its 60-day moving average (₩40,405). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.4, a neutral level. The one-month change is -3.3%, the three-month change is -11.8%, and the position relative to the 52-week high is -48.2%. Relative strength versus the KOSPI is 21 (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 21% of all stocks. Over the past three months it lagged the index by 35.4%. 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 -35.43% / 6M -56.74% / 12M -58.10%
Key metrics vs whole-market median
Valuation
The P/E of 2.64x is below the whole-market median (13.81x). The P/B of 0.47x is below the whole-market median (1.15x). 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 17.7%, above the whole-market average (5.0%). The operating margin is 13.9%. The debt ratio is 529.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $58.5B | $61.9B | $64.6B | +4.32% ↓ slower |
| Operating profit | -$3.0B | $5.5B | $8.9B | +61.28% |
| Net profit | -$3.2B | $2.3B | $5.7B | +144.72% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $40.2B | $47.2B | $58.5B | $61.9B | $64.6B |
| Operating profit | -$3.9B | -$21.6B | -$3.0B | $5.5B | $8.9B |
| Net profit | -$3.5B | -$16.2B | -$3.2B | $2.3B | $5.7B |
| 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 Q1 2026 · vs year-ago
Technical indicators
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 4.4%, is on the high side.
- ROE of 17.7% points to solid profitability.
Points to watch
- Debt far exceeds equity (debt ratio 529.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 45.8%).
- Revenue rose 4.3% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-13EarningsFirst-quarter 2026 preliminary consolidated results disclosure — revenue about ₩24.4 trillion, operating profit about ₩3.8 trillion, net profit about ₩2.5 trillion, continuing to be profitableNear term: operating profit roughly flat year over year, net profit up 6.7%, confirming the profitable trend. Medium term: a signal of entering a phase of slowing recovery and stabilizing profit. Source
- 2026-05-22UpdateDisclosure of the filing of a lawsuit involving a claim above a set amount (including a same-day correction)Near term: a financial variable given the possibility of a contingent liability depending on the outcome. Medium term: the scale and progress of the lawsuit need to be watched. Source
- 2026-05-08IRInvestor briefing (IR) announcement and advance notice of the earnings disclosureNear term: a channel to communicate results and outlook. Medium term: an opportunity to confirm the direction of tariff, fuel and debt management. Source
- 2026-06-01FilingReport on a large shareholding (short form) and corporate governance report disclosedNear term: updates on ownership and governance. Medium term: reference material on governance transparency. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated operating profit | approx. ₩3.78 trillion(base quarter) | approx. 3₩784.2 billion | Confirmed | link |
| Q1 2026 consolidated revenue | approx. ₩24.40 trillion(base quarter) | approx. 24₩398.5 billion | Confirmed | link |
| 2025 annual net profit / ROE | net profit ₩8.54 trillion, ROE 17.7%(base fundamentals) | — | Unverified | link |
| 2026 net profit estimate | approx. ₩9 trillion(self-estimate) | — | Unverified | — |
Recent filings
- 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.