'Up to 6 Times More KEP Bonds Issued' Amendment to KEP Act Passes Legislation and Judiciary Committee

Expected to be processed at the National Assembly plenary session on the 28th
Current KEPCO corporate bond issuance limit doubled
Up to 6 times with Ministry of Trade, Industry and Energy minister approval

[Image source=Yonhap News]

[Asia Economy Reporter Han Jinju] The amendment to the Korea Electric Power Corporation Act, which raises the corporate bond issuance limit of Korea Electric Power Corporation (KEPCO) up to six times, passed the National Assembly's Legislation and Judiciary Committee on the 27th.

The Legislation and Judiciary Committee held a plenary session in the afternoon and approved the amendment to the KEPCO Act, which raises the issuance limit of KEPCO bonds (KEPCO bonds) from the existing two times to up to six times. The amendment will be submitted to the plenary session of the National Assembly on the 28th.

The amendment includes increasing the issuance limit of KEPCO bonds to five times the sum of the corporation's capital and reserves. In urgent cases such as management crises, with the approval of the Minister of Trade, Industry and Energy, the issuance limit of KEPCO bonds can be increased up to six times.

The amendment also includes a provision requiring the Minister of Trade, Industry and Energy to report to the relevant standing committee of the National Assembly if approval is given for issuing corporate bonds exceeding the issuance limit.

A "five-year sunset clause" maintaining the KEPCO bond issuance limit only until December 31, 2027, was also included in the amendment at the request of the Democratic Party of Korea.

Previously, the amendment to the KEPCO Act was rejected at the plenary session of the National Assembly on the 8th. A significant number of People Power Party members were absent, and many Democratic Party members opposed or abstained.

Subsequently, as public opinion grew that KEPCO was experiencing management difficulties, electricity rates were soaring, and the power industry was in crisis, the ruling and opposition parties pushed for reapproval of the bill, leading to the passage of the KEPCO Act amendment.

At the plenary session on the same day, the amendment to the Korea Gas Corporation Act, which expands the corporate bond issuance limit of Korea Gas Corporation from the existing four times to five times, was also approved.

This content was produced with the assistance of AI translation services.