Korea Electric Power Corp (NYSE: KEP)

Korea Electric Power Corporation is an integrated electric utility company responsible for the transmission and distribution of substantially all electricity in South Korea. Through its six wholly owned generation subsidiaries the company generates the majority of electricity produced in the nation. As of December 31 2024 Korea Electric Power Corporation maintained an extensive transmission network of 35 856 circuit kilometers and 925 substations while its distribution system comprised 547 850 circuit kilometers of lines and over 10 million support units. The company and its generation subsidiaries collectively owned approximately 55.8 percent of Korea's total electricity generation capacity excluding private emergency use facilities.

Revenue is generated primarily from electricity sales to end users across residential commercial industrial agricultural and public sectors. Sales volume directly reflects domestic electricity demand which in 2024 reached 549 821 gigawatt hours resulting in revenue of 92 578 billion South Korean Won. The company acquires its electricity supply through purchases from its generation subsidiaries and independent power producers via the Korea Power Exchange which administers a cost based pool system for wholesale power transactions. This procurement model ensures competitive pricing while maintaining supply reliability for end consumer distribution.

Korea Electric Power Corporation organizes its operations around six wholly owned generation subsidiaries which constitute its reportable business segments.

• Korea Hydro and Nuclear Power Company Limited KHNP specializes in nuclear and hydroelectric power generation. As of December 31 2024 KHNP operated 26 nuclear reactor units totaling 26 050 megawatts 53 hydroelectric facilities with 5 307.5 megawatts 67 solar installations amounting to 84.68 megawatts and one wind turbine of 0.75 megawatts. The nuclear portfolio achieved an 83.8 percent average capacity factor while hydroelectric resources averaged 13.1 percent. KHNP traces its origins to 1978 when Korea's first commercial nuclear unit began operation.

• Korea South East Power Company Limited KOSEP focuses on thermal power generation utilizing bituminous coal as its primary fuel. As of December 31 2024 KOSEP managed bituminous coal capacity of 9 363.7 megawatts across the Samcheonpo Yeongheung and Yeosu power stations. The supplement also maintained combined cycle internal combustion and renewable energy assets. KOSEP delivered an average capacity factor of 48.2 percent with an average fuel expenditure of 92.58 Won per kilowatt hour generated.

• Korea Midland Power Company Limited KOMIPO operates a diversified generation portfolio including bituminous coal liquefied natural gas and renewable sources. As of December 31 2024 KOMIPO controlled significant bituminous coal capacity at Boryeong Shin Boryeong and Shin Seocheon sites. The segment further maintained substantial combined cycle gas turbine internal combustion bio oil wind hydroelectric and solar photovoltaic installations. KOMIPO achieved a 48.9 percent average capacity factor with an average fuel cost of 162.15 Won per kilowatt hour.

• Korea Western Power Company Limited KOWEPO generates electricity from bituminous coal liquefied natural gas and multiple renewable technologies. As of December 31 2024 KOWEPO operated the Taean bituminous coal complex at 6 100 megawatts and the Pyeongtaek liquefied natural gas facility. The segment additionally maintained extensive solar wind and fuel cell capacity across its western Korean service territory. KOWEPO recorded a 36.3 percent average capacity factor and an average fuel cost of 105.96 Won per kilowatt hour.

• Korea Southern Power Company Limited KOSPO produces electricity using bituminous coal combined cycle systems and renewable energy. As of December 31 2024 KOSPO managed the Hadong bituminous coal facility at 4 000 megawatts and the Samcheok power station. The segment also maintained material wind solar and fuel cell installations. KOSPO realized a 36.3 percent average capacity factor with an average fuel cost of 119.0 Won per kilowatt hour.

• Korea East West Power Company Limited EWP concentrates on bituminous coal anthracite and combined cycle power generation. As of December 31 2024 EWP operated the Dangjin bituminous coal complex at 6 040 megawatts and the Donghae anthracite facility. The segment additionally maintained various renewable energy installations including mini hydro solar wind and biomass systems. EWP attained a 41.8 percent average capacity factor with an average fuel cost of 99.5 Won per kilowatt hour.

Korea Electric Power Corporation occupies a dominant position in South Korea's electricity sector particularly in transmission and distribution where it functions under government sanctioned monopoly conditions. The company and its generation subsidiaries collectively control approximately 55.8 percent of national generation capacity competing with 37 independent power producers and thousands of small scale renewable operators. This market standing is reinforced by legal requirements mandating minimum 51 percent government ownership which ensures alignment with national energy policy objectives including carbon neutrality targets.

The customer base encompasses residential households commercial enterprises educational institutions industrial plants agricultural operations and public infrastructure such as street lighting. In 2024 residential users represented 15.8 percent of electricity sales commercial consumers 24.5 percent educational facilities 1.7 percent industrial clients 52.1 percent agricultural users 3.8 percent street lighting 0.6 percent and overnight power services 1.4 percent. No specific customer names are identified in the regulatory filing.