Korea Electric Power: Profits Recovered From Deep Losses While the Share Price Has Fallen Sharply

Thesis

The data supports a clear earnings recovery. Operating income moved from a loss of ₩32.7T in 2022 to a profit of ₩13.5T in 2025, and the trailing twelve months to H1 2026 show ₩12.5T. Multiples are low, with a P/E of 2.3 and a P/B of 0.4, and the dividend yield is 5.8%.

What the data does not support is an easy reading of the share price. The stock is down 13.7% in one month, 16.6% in three months and 20.1% in one year, and the 52-week high was ₩69,500. The data gives no explanation for the decline: no news headlines are available, and investor flows, foreign ownership and short balance are not available. Operating income in the trailing period is also below 2025's, and liabilities to equity remain at 406.4%. Low multiples may reflect uncertainty about how durable the recent profits are, but the data cannot confirm that.

Business overview

Korea Electric Power is a KOSPI-listed utility, founded on 1961-07-01 and listed on 1989-08-10, with 641,964,077 listed shares. Its market capitalisation is about ₩18.3T and its enterprise value about ₩15.7T. Revenue has grown every year in the data, from ₩60.6T in 2021 to ₩97.4T in 2025, and trailing revenue to H1 2026 is ₩97.6T. The peers in the data are much smaller: Korea Gas Corporation has a market cap of ₩3.3T and the others are below ₩1T. The CEO listed in the data is 김동철.

Financial analysis

These figures come from filed financial statements (DART). Revenue rose 4.3% in 2025 to ₩97.4T, after growth of 5.9% in 2024 and 23.8% in 2023. Operating income was ₩13.5T in 2025 (13.8% margin) versus ₩8.4T in 2024 (9.0%), a loss of ₩4.5T in 2023 and a loss of ₩32.7T in 2022. Net income was ₩8.5T in 2025 and ₩3.5T in 2024, against losses of ₩4.8T in 2023 and ₩24.5T in 2022.

Trailing figures to H1 2026: revenue ₩97.6T, operating income ₩12.5T (12.8% margin), net income ₩7.8T (8.0% margin) and ROE 17.3%, versus 19.4% in 2025. Liabilities to equity is 406.4%. Cash is ₩2.6T and free cash flow is ₩1.6T, which is small relative to profit. Borrowings are not available in the data.

Valuation

Current multiples are P/E 2.3, P/B 0.4, P/S 0.2, EV/EBITDA 0.6 and a dividend yield of 5.8%. At the end of 2025 the P/E was 3.5 and the P/B 0.6, so both are lower now. Earlier year-end multiples are not available, as the company had losses. Peer multiples are not available in the data (P/E and P/B are null for all five), so a comparison with similar companies cannot be made. The low EV/EBITDA is calculated from the data as given and should be read with the company's high leverage in mind.

Catalysts

• The half-year report for June 2026 was filed on 2026-08-14, following preliminary consolidated earnings on 2026-08-12, and sets the latest profit base.
• An investor relations event was held on 2026-08-07, and a record-date filing was made on 2026-08-27, which may relate to shareholder returns, though the data does not give details.
• The company filed responses to rumour or news reports on 2026-09-03 and 2026-10-02, though the content is not available in the data.
• Insider shareholding reports were filed on 2026-09-29 and 2026-10-13, which may be watched for ownership changes.
• A filing on 2026-07-07 covered the appointment or departure of an independent director.

Risks

• The share price is near its 52-week low after falling 20.1% in a year, and the data does not explain why.
• Liabilities to equity of 406.4% leaves the balance sheet highly leveraged.
• Trailing operating income of ₩12.5T and ROE of 17.3% are below the 2025 levels, which shows profit momentum may have eased.
• Free cash flow of ₩1.6T is small compared with net income of ₩7.8T.
• A serious accident was reported at a subsidiary on 2026-06-24, and the data does not describe the impact.

Closing view

The filed numbers show a large turnaround from heavy losses to sizeable profits, and valuation multiples are low on both earnings and book value. Against that, the share price has fallen sharply, leverage is high, trailing profits are slightly lower than 2025, and the data lacks investor flows, peer multiples and news that would explain the market's view. The evidence is mixed and incomplete, so it describes a recovered but heavily indebted utility whose market pricing is not explained by the available data.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationKorea Electric Power: Profits Recovered From Deep Losses While the Share Price Has Fallen Sharply