KEPCO Posts Record $9.8 Billion Operating Profit; Debt Remains at $149 Billion

Korea Electric Power Corporation (KEPCO) reported record operating profit of 13.52 trillion won ($9.8 billion) for 2024, the company disclosed Thursday.

KEPCO announced the preliminary financial results showing revenue of 97.43 trillion won, up 4.3% year-over-year. The utility has set new annual revenue records every year since 2020.

Operating profit surged 61.7%, or 5.16 trillion won, from the previous year. On a standalone basis, operating profit nearly tripled to 8.54 trillion won from 3.17 trillion won in 2023.

The strong performance was driven by higher electricity prices and lower fuel costs. Electricity sales volume remained flat at 549.4 TWh, but the average selling price rose 4.6% to 170.4 won per kWh from 162.9 won. Average purchase prices for both bituminous coal and liquefied natural gas fell by double digits.

However, analysts say KEPCO's path to financial normalization remains long. The utility accumulated 47.8 trillion won in operating losses from 2021 to 2023, when LNG prices spiked globally. Unlike utilities in other countries, KEPCO absorbed the fuel cost surge as debt rather than passing it through to consumers.

As a result, KEPCO's total debt remained at 205.7 trillion won ($149 billion) as of year-end 2024.