Core Viewpoint - The Korea Electric Power Corporation (KEPCO) will maintain the fuel adjustment price for the second quarter, effectively freezing electricity prices for the period from April to June [1] Group 1 - KEPCO's fuel adjustment price will remain at the first quarter level of +5 Korean Won per kilowatt-hour [1]

Group 1 - Korea Electric Power Corporation (KEPCO) launched the Smart Electric Life platform on March 18, consolidating 39 energy services into one accessible location for consumers [1][3] - The platform integrates services from seven organizations, including KEPCO, the Korea Energy Agency, and the Korea Power Exchange, providing tools like "Find My Benefits" and bill simulations to help households optimize their energy usage [3][4] - KEPCO aims to promote rational energy use and convenience through this platform, encouraging citizens to adopt it for cost savings and to support renewable energy initiatives [4] Group 2 - KEPCO is South Korea's national electric utility company, responsible for generating, transmitting, and distributing electricity through various subsidiaries that operate nuclear, thermal, hydro, and renewable power plants [5]

Group 1 - Korea Electric Power Corporation (KEP) is poised to enter a phase of positive changes to leverage its energy potential [1] - KEP is the main state utilities company in South Korea, operating 848 units of generation [1]

Financial Performance - KEPCO reported consolidated sales of W 97,429,346 million for the fiscal year 2025, an increase of 4.4% from W 93,398,896 million in 2024[11]. - The company's operating profit for 2025 was W 13,490,557 million, representing a significant increase of 61.5% compared to W 8,364,710 million in 2024[11]. - KEPCO's net profit for the year was W 8,666,656 million, up 139.5% from W 3,621,968 million in 2024[12]. - Total comprehensive income for 2025 included a profit of W 8,544,918 million, with adjustments for various comprehensive losses and gains[14]. - The profit for the year 2025 reached W 8,666,656 million, a significant increase from W 3,621,968 million in 2024, representing a growth of approximately 139%[15]. Assets and Liabilities - Total assets as of December 31, 2025, reached W 254,927,457 million, a growth of 3.6% from W 246,807,795 million in 2024[10]. - The company's total liabilities were W 205,604,513 million, slightly up from W 205,444,962 million in 2024, indicating a stable liability position[10]. - KEPCO's equity attributable to owners of the controlling company increased to W 48,169,942 million in 2025, compared to W 39,915,236 million in 2024, reflecting a growth of 20.5%[10]. - The company's total equity as of December 31, 2025, was W 49,322,944 million, up from W 41,362,833 million at the end of 2024, indicating a growth of about 19%[14]. Earnings and Dividends - Basic and diluted earnings per share rose to W 13,311 in 2025, compared to W 5,439 in 2024, marking an increase of 144.5%[12]. - Dividends paid in 2025 totaled W 136,738 million, compared to W 126,900 million in 2024, indicating a slight increase in shareholder returns[14]. Cash Flow and Expenses - Cash flows from operating activities for 2025 amounted to W 22,992,428 million, compared to W 21,131,434 million in 2024, reflecting an increase of approximately 8.8%[15]. - The company reported an increase in income tax expenses to W 2,920,274 million in 2025 from W 1,634,561 million in 2024, which is an increase of about 79%[15]. - Depreciation expenses slightly decreased to W 13,630,181 million in 2025 from W 13,833,788 million in 2024[15]. - The total retained earnings increased to W 28,500,584 million by the end of 2025, up from W 20,128,247 million in 2024, marking a growth of approximately 42%[14]. Strategic Initiatives - The company aims to enhance its operational efficiency and financial performance through strategic initiatives and potential market expansions[2]. - The company plans to disclose its audit report on or around March 10, 2026, and a business report in Korean on March 17, 2026[4]. - KEPCO is seeking shareholder approval for its financial statements for the fiscal year 2025 during the AGM scheduled for March 25, 2026[5]. Remuneration and Governance - Proposed aggregate ceiling on remuneration for directors in fiscal year 2026 is 2,207,869 thousand won, an increase of 34,885 thousand won compared to 2025[17]. - Actual remuneration for directors in fiscal year 2025 was 1,664,368 thousand won[17]. - The increase in the remuneration ceiling is due to a government notification for a 3.4% increase in remuneration for directors of government-controlled entities[17]. - The standards for remuneration for the President and Standing Directors are determined by the Board of Directors based on guidelines established by the Minister of the Ministry of Finance and Economy[45]. - All amendments to the Articles of Incorporation require a resolution from the AGM and approval from the Minister of Climate, Energy, and Environment[49].

Financial Data and Key Metrics Changes - The consolidated operating income for 2025 was KRW 13,524.8 billion, with revenue increasing by 4.3% to KRW 97,434.5 billion [4] - Power sales rose by 4.6% to KRW 93,004.6 billion, while overseas business and other revenue decreased by 1.8% to KRW 4,429.9 billion [4] - Cost of goods sold and SG&A decreased by 1.3% to KRW 83,909.7 billion, and fuel costs decreased by 13.8% to KRW 19,436.4 billion [4] - Net income for 2025 was KRW 8,737.2 billion [5] Business Line Data and Key Metrics Changes - The annual power sales volume was 549.4 terawatt-hours, reflecting a 0.1% decrease year-over-year due to economic downturn and decreased industrial demand [9] - The capacity factor for nuclear power increased, contributing more to the generation mix, while the contribution from LNG decreased due to reduced installed capacity [13] Market Data and Key Metrics Changes - Fuel prices for bituminous coal were around $105.7 per ton, and LNG prices were KRW 980,000 per ton, with SMP at KRW 112.7 per kilowatt hour [11] - The expected capacity factors for 2026 are projected to be mid to high 80% for nuclear power, mid 40% for coal, and early to mid 20% for LNG [13] Company Strategy and Development Direction - The company is focusing on enhancing its nuclear power generation capacity and is working closely with the government to develop a robust nuclear power plant export strategy [56] - There is an ongoing effort to streamline pricing schemes for industrial power, including seasonal and regional pricing adjustments [64] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in costs related to greenhouse gas emissions and nuclear site recovery impacted operating income, particularly in Q4 2025 [27] - The company anticipates a slight increase in total sales volume in 2026 due to expected economic growth and increased operating days [9] Other Important Information - The annual RPS expense on a consolidated basis was KRW 3,989.7 billion, and total borrowings as of Q4 2025 were KRW 129.8 trillion [15] - The dividend payout ratio decreased from 16.5% to 13.65%, but the absolute amount of dividends paid out increased due to higher standalone net income [42] Q&A Session Summary Question: Contribution of nuclear power generation and other costs - The increase in other costs was attributed to provisions for greenhouse gas emissions and nuclear site recovery, with a significant portion booked in Q4 2025 [27] - The capacity factor for nuclear power is expected to be mid-high 80% annually, with maintenance and new plants contributing to this increase [28] Question: Standalone vs. consolidated operating income - Standalone profits appeared stronger due to costs associated with subsidiaries not reflected in standalone numbers [34] - The adjustment coefficient for 2026 is expected to be slightly higher than in 2025 [38] Question: Provisional liabilities related to used nuclear fuel - Provisional liabilities for nuclear site recovery increased to KRW 24,076.9 billion, while used nuclear fuel liabilities decreased to KRW 2,745.3 billion [46] Question: Nuclear power generation export strategy - The company is collaborating with the government to develop a nuclear power plant export strategy, awaiting results from a research project [56] - Ongoing negotiations regarding additional construction costs incurred during the BNPP project are in progress, but specific numbers cannot be disclosed [59] Question: Tariff pricing schemes - The company is developing new pricing schemes for industrial power to reflect changes in load patterns and regional demand, but the impact on unit prices and timeline is still uncertain [64]

Financial Data and Key Metrics Changes - The consolidated operating income for 2025 was KRW 13.5248 trillion, with revenue increasing by 4.3% to KRW 97.4345 trillion [4] - Power sales rose by 4.6% to KRW 93.0046 trillion, while overseas business and other revenue decreased by 1.8% to KRW 4.4299 trillion [4] - Cost of goods sold and SG&A decreased by 1.3% to KRW 83.9097 trillion, and fuel costs decreased by 13.8% to KRW 19.4364 trillion [4] - Net income for 2025 was KRW 8.7372 trillion [5] Business Line Data and Key Metrics Changes - The annual power sales volume was 549.4 TWh, reflecting a 0.1% decrease year-over-year due to economic downturns affecting industrial demand [9] - The capacity factor for nuclear power increased, contributing more to the generation mix, while the contribution from LNG decreased due to reduced installed capacity [13] Market Data and Key Metrics Changes - Fuel prices for bituminous coal were around $105.7 per ton, and LNG prices were KRW 980,000 per ton [11] - The SMP was around KRW 112.7 per kWh [11] Company Strategy and Development Direction - The company is focusing on increasing the contribution of nuclear power in the generation mix for 2026, with expectations of a capacity factor around mid to high 80% [28] - KEPCO is working closely with the government to develop a nuclear power plant export strategy to maximize global customer satisfaction [61] Management Comments on Operating Environment and Future Outlook - Management noted that the economic growth rate and number of operating days are expected to increase in 2026, leading to a slight increase in total sales volume [9] - The company is developing new pricing schemes for industrial power to reflect changing load patterns and regional demand [69] Other Important Information - The annual RPS expense on a consolidated basis was KRW 3.9897 trillion [14] - As of Q4 2025, consolidated total borrowings were KRW 129.8 trillion [14] Q&A Session Summary Question: Contribution of nuclear power generation and unexpected costs - The contribution of nuclear power generation in Q4 2025 decreased by around 6%, and management acknowledged that other costs were higher than expected, primarily due to greenhouse gas provisions and nuclear site recovery costs [23][27] Question: Comparison of operating income and before-tax profit - Management explained that standalone profits appeared stronger due to costs associated with subsidiaries not reflected in standalone numbers, and the adjustment coefficient for 2026 is expected to be slightly higher than in 2025 [32][34][38] Question: Dividend payout and expectations for 2026 - The dividend payout decreased from 16.5% to 13.65%, but the absolute amount of dividends paid out increased, with DPS rising to around KRW 1,541 per share [42] Question: Provisional liabilities related to used nuclear fuel - Provisional liabilities for nuclear site recovery increased to KRW 24.0769 trillion, while used nuclear fuel liabilities decreased to KRW 2.7453 trillion [47] Question: Nuclear power generation export strategy and court case - KEPCO is collaborating with the government on the nuclear power plant export strategy, and ongoing negotiations regarding the KRW 1.4 trillion construction cost dispute are in progress [61][63]

Financial Data and Key Metrics Changes - The consolidated operating income for 2025 was KRW 13,524.8 billion, with revenue increasing by 4.3% to KRW 97,434.5 billion [5] - Power sales rose by 4.6% to KRW 93,004.6 billion, while overseas business and other revenue decreased by 1.8% to KRW 4,429.9 billion [5] - Cost of goods sold and SG&A decreased by 1.3% to KRW 83,909.7 billion, and fuel costs decreased by 13.8% to KRW 19,436.4 billion [5] - Net income for 2025 was KRW 8,737.2 billion [6] Business Line Data and Key Metrics Changes - The annual power sales volume was 549.4 terawatt-hours, reflecting a 0.1% decrease year-over-year due to economic downturn and decreased industrial demand [8] - The generation mix for 2025 showed an increase in the capacity factor of nuclear power, while the contribution from LNG decreased due to reduced installed capacity [12] Market Data and Key Metrics Changes - Fuel prices for bituminous coal were around $105.7 per ton, and LNG prices were KRW 980,000 per ton, with SMP at KRW 112.7 per kilowatt hour [10] - The expected capacity factors for 2026 are projected to be mid to high 80% for nuclear power, mid 40% for coal, and early to mid 20% for LNG [12] Company Strategy and Development Direction - The company is focusing on increasing the contribution of nuclear power in the generation mix while managing costs associated with greenhouse gas emissions and nuclear site recovery [25] - There is an ongoing effort to streamline the Korean nuclear power generation export strategy, with collaboration from the Ministry of Industry [52] Management Comments on Operating Environment and Future Outlook - Management noted that the economic growth rate and number of operating days are expected to increase in 2026, leading to a slight increase in total sales volume [8] - The company anticipates that the capacity factor for nuclear power will improve in 2026 due to maintenance and the addition of new power plants [26] Other Important Information - The annual RPS expense on a consolidated basis was KRW 3,989.7 billion, and total borrowings as of Q4 2025 were KRW 129.8 trillion [14] - The dividend payout ratio decreased from 16.5% to 13.65%, but the absolute amount of dividends paid out increased due to a significant rise in standalone net income [39] Q&A Session Summary Question: Contribution of nuclear power generation and unexpected costs - The analyst from LS Securities inquired about the unexpected increase in other costs related to nuclear power generation and the contribution of nuclear power in Q4 2025 [22] - Management responded that provisions for greenhouse gas emissions and nuclear site recovery increased, impacting costs, and the capacity factor for nuclear power is expected to be mid-high 80% annually [25][26] Question: Comparison of operating income and before-tax profit - An analyst from Meritz Securities asked about the reasons behind the stronger before-tax profit compared to operating income and the expected adjustment coefficient for Q1 2026 [29] - Management explained that standalone profits appear stronger due to costs associated with subsidiaries not reflected in standalone numbers, and the adjustment coefficient for 2026 is expected to be slightly higher than in 2025 [32][36] Question: Provisional liabilities and coal price impacts - An analyst from Hana Securities asked about provisional liabilities related to used nuclear fuel and the expected cost impact from the end of a grace period for coal prices [42] - Management indicated that provisional liabilities for nuclear site recovery increased, while used nuclear fuel liabilities decreased, and they could not disclose specific estimates for coal price impacts [43][44] Question: Nuclear power generation export strategy and bond issuance - An analyst inquired about the status of the nuclear power generation export strategy and the bond issuance limit [50] - Management confirmed that the Ministry of Industry is involved in developing the export strategy and that negotiations regarding bond issuance are ongoing, with final numbers to be calculated post-dividend finalization [52][55]

Core Perspective - The article discusses a landmark civil lawsuit in South Korea where farmers are suing the state-owned utility KEPCO for climate-related agricultural damages, highlighting the impact of climate change on agriculture and the legal accountability of major corporate emitters [5][6][10]. Group 1: Climate Impact on Agriculture - Farmers in South Korea are experiencing significant losses due to extreme weather conditions linked to climate change, including heat waves, heavy rainfall, and shifting growing seasons [4][6]. - Ma Yong-un, a plaintiff in the lawsuit, reported that half of his apple crop was of poor quality due to adverse weather conditions, reflecting a broader trend among farmers facing similar challenges [3][4]. Group 2: Legal Action Against KEPCO - The lawsuit, filed by five farmers, seeks financial compensation for damages caused by KEPCO's greenhouse gas emissions, which are claimed to have materially contributed to climate change and subsequent economic losses for the plaintiffs [5][6][7]. - KEPCO is identified as the largest corporate emitter in South Korea, responsible for approximately 27% of the country's total greenhouse gas emissions from 2011 to 2023, equating to an estimated $72.9 billion in climate-related economic damages [7][8]. Group 3: Economic Vulnerability and Policy Implications - South Korea's reliance on imported food, with a calorie self-sufficiency rate of only 32.5% in 2023, makes the country particularly vulnerable to climate disruptions affecting major food-exporting nations [15][16]. - Experts warn that climate change could lead to severe agricultural crises in the future, emphasizing the need for a shift in energy policy towards more sustainable practices [16][18].

Group 1 - The article provides a market analysis focusing on Korea Electric Power Corp ADR, Barclays PLC ADR, and Deutsche Bank AG [1] - It highlights the performance trends and investment opportunities within these companies [1] - The analysis includes financial metrics and market positioning relevant to investors [1] Group 2 - Korea Electric Power Corp ADR is analyzed for its operational efficiency and market challenges [1] - Barclays PLC ADR is discussed in terms of its financial health and strategic initiatives [1] - Deutsche Bank AG's performance is evaluated with respect to its competitive landscape and growth prospects [1]

Group 1 - Samsung SDI and Korea Electric Power Corporation (KEP) have signed a memorandum of understanding to collaborate on global energy projects, focusing on energy storage and renewable energy initiatives [1] - This partnership is expected to positively impact Korea Electric's long-term business expansion [1] Group 2 - Over the past week, KEP's stock price has shown volatility, with a decline of 3.82% on February 10, closing at $20.90, followed by a rebound of 2.44% on February 11, closing at $21.41, and a slight drop of 0.28% on February 12, closing at $21.35 [1] - The stock has experienced a price range fluctuation of 5.43% and has increased by 29.36% year-to-date [1] - KEP's current price-to-earnings ratio (TTM) stands at 4.67, and the price-to-book ratio is at 0.86 [1]