Korea Electric Power Corp. reported an operating profit of 5.9 trillion won ($4.5 billion) for the first nine months of 2024, marking a dramatic turnaround from a 6.5 trillion won loss in the same period last year.
The state-run utility’s recovery stems from three electricity price hikes implemented in 2023 and declining fuel costs. Sales rose 6.4% to 69.9 trillion won, while operating expenses fell 11.4% as global coal prices dropped 27% and liquefied natural gas costs decreased 22%.
Despite the improved performance, KEPCO faces ongoing challenges. The company continues to grapple with accumulated deficits from previous years’ losses, while volatile fuel prices and a strong dollar threaten to pressure margins.
The utility recently introduced selective rate increases, raising tariffs by up to 10.2% for industrial users while keeping residential prices unchanged. However, analysts note these measures may not be sufficient to address KEPCO’s long-term financial stability.
The company plans to further reduce costs through power-load shedding agreements with customers and is seeking government support to extend fuel tax reductions. These efforts come as KEPCO attempts to balance financial recovery with its role as South Korea’s primary electricity provider.
