KEPCO freezes Q4 rates: what it means for KEPCO stock

Published on 10/02/2026 at 19:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Fuel costs required KRW 7.30 per kWh, but the cap stayed at KRW 5.00. For KEPCO stock, Q2 revenue was KRW 21.9 trillion, down 0.10 percent.

KEPCO, KR7015760002, Illustration mit AI erstellt.

KEPCO (ISIN KR7015760002) will keep its fourth-quarter fuel cost adjustment at KRW 5.00 per kilowatt-hour, even though the formula indicated KRW 7.30, SBS reported on September 21, 2026. The decision keeps the adjustment at its statutory ceiling for the 18th consecutive quarter and leaves fuel costs only partly reflected in customer bills.

Rate freeze leaves fuel gap

The fourth-quarter rate decision applies from October through December 2026. SBS reported that the required adjustment was KRW 7.30 per kWh, while the permitted charge remained KRW 5.00, creating a KRW 2.30 gap per kWh.

The pressure is visible in KEPCO's balance sheet. Consolidated liabilities, including power-generation subsidiaries, stood at KRW 210.7 trillion in the first half of 2026, according to SBS.

Revenue holds while profit narrows

KEPCO reported KRW 21.9 trillion in revenue for the second quarter of 2026, down 0.10 percent year on year, while operating profit was KRW 1.13 trillion, according to ATS View. The comparison matters because revenue was broadly stable, but regulated pricing leaves less room to absorb higher fuel costs.

The latest analyst snapshot is cautious. MarketBeat reported on October 2, 2026, that five research firms average a Reduce recommendation, with two sell ratings and three holds. That split places tariff recovery and fuel-cost exposure ahead of short-term revenue growth in the investment debate.

Debt remains the counterweight

KEPCO's common shares traded at KRW 30,050 on the Korea Stock Exchange on October 2, 2026 at 3:30 p.m. KST, down KRW 100 or 0.33 percent from KRW 30,150, according to the dated quote page. The current market value was KRW 19.3 trillion, and the 52-week range was KRW 29,800 to KRW 69,500.