Korea Electric Power Corp. delivered a sharp rebound in profitability during the first half of 2025, with operating profit climbing to 5.9 trillion won ($4.24 billion) compared to the same period last year. The 130% surge reflects the state-controlled utility’s aggressive pricing strategy rather than operational improvements.
The utility’s consolidated sales revenue rose 5.5% to 46.17 trillion won ($33.17 billion) even as electricity consumption edged down 0.05%. KEPCO achieved this by raising electricity rates 5.7% to 167.5 won per kilowatt-hour from 158.4 won previously, according to company officials.
The results underscore KEPCO’s continued reliance on tariff adjustments to restore profitability after years of losses. The monopoly utility has faced mounting pressure to balance financial stability with affordable energy costs for Korean consumers and manufacturers.
While the earnings recovery may provide temporary relief for shareholders, the approach raises questions about the sustainability of growth through price increases alone. South Korea’s export-dependent economy remains sensitive to energy costs, particularly as global competitors maintain lower industrial electricity rates.
The utility’s ability to maintain pricing power will likely depend on government policy decisions and public acceptance of higher energy bills during an uncertain economic climate.
