[Featured Stock] Korea Electric Power Corporation Sees Slight Decline of Around 1% Despite Electricity Rate Hike

Although the government announced an increase in electricity rates, the stock price of Korea Electric Power Corporation (KEPCO) recorded a decline.

As of 9:38 a.m. on the 15th, KEPCO was trading at 19,490 KRW, down 1.07% from the previous trading day.

Lee Chang-yang, Minister of Trade, Industry and Energy, announced on the same day that electricity rates would be raised by 8 KRW per kWh starting from the 16th. Since KEPCO's cumulative deficit reached 45 trillion KRW after 2021, the government raised electricity rates by 13.1 KRW in the first quarter of this year. Considering inflation concerns and public opinion, the government postponed the adjustment of electricity rates for the second quarter but decided on a slight additional increase on this day.

Earlier, KEPCO also presented a self-rescue plan worth around 25 trillion KRW, which included selling buildings in Yeouido and employees returning part of their salaries.

Shinhan Investment Corp. stated in a report released just before the announcement of the rate hike that "assuming electricity rates increase by 7 KRW per kWh, operating losses in the second quarter are expected to continue at 1.2 trillion KRW," adding, "the stock price is likely to continue trading within a range for the time being."

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