Korea Electric Power Corporation Q4 2025 Earnings Call - FY2025 profit lifted by lower fuel costs and higher nuclear output, but Q4 clouded by volatile provisions and subsidiary costs

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): Good morning, and good evening. First of all, thank you all for joining this conference. Now we will begin the conferences of the fiscal year 2025 full quarter earnings resulted by KEPCO. This conference will start with a presentation, followed by a divisional Q&A session. If you have a question, please press asterisk 1 on your phone during the Q&A. Now, we shall commence the presentation on the fiscal year 2025 full quarter earnings resulted by KEPCO.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon. This is Si-young Yang, Head of Finance Department of KEPCO. I’d like to thank you all for participating in today’s conference call for the business results of the fourth quarter of 2025, despite your busy schedule. Today’s call will be conducted in both Korean and English. We will begin with a brief presentation of the earnings results, which will be followed by a Q&A session. Please note that the financial information to be disclosed today is preliminary consolidated IFRS figures, and all comparison is on a year-over-year basis, unless stated otherwise. Business plans, targets, financial estimates, and other forward-looking statements mentioned today are based on our current targets and forecasts. Please be noted that such statements may involve investment risks and uncertainties.

We will begin with an overview of the earnings results for the fourth quarter of 2025 in Korean, which will be then consecutively translated into English.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 영업손익부터 살펴보겠습니다. 2025년 연간 연결 영업이익은 KRW 13.5248 trillion을 기록하였습니다. 구체적인 내역을 살펴보면, 매출액은 4.3% 증가한 KRW 97.4345 trillion을 기록하였습니다. 이중 전기 판매 수익은 4.6% 증가한 KRW 93.0046 trillion, 해외 사업 수익 등 기타 수익은 1.8% 감소한 KRW 4.4299 trillion을 기록하였습니다. 매출 원가와 판관비는 1.3% 감소한 KRW 83.9097 trillion입니다. 이 중 연료비는 13.8% 감소한 KRW 19.4364 trillion, 구입 전력비는 1.8% 감소한 KRW 34.0527 trillion을 기록하였습니다. 감가상각비는 2.3% 증가한 KRW 11.6678 trillion을 기록하였습니다. 주요 영업외 손익 중 이자 비용은 전년 동기 대비 KRW 0.3256 trillion 감소한 KRW 4.3399 trillion을 기록하였습니다. 지금까지 언급한 내용을 주요 원인으로, 2025년도 연간 연결 영업이익은 KRW 13.5248 trillion, 당기순이익은 KRW 8.7372 trillion을 기록하였습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): I will first go over the operating items. The consolidated operating income in 2025 stood at KRW 13,524.8 billion. Revenue increased by 4.3% to KRW 97,434.5 billion. Power sales increased by 4.6% to KRW 93,004.6 billion. Overseas business and other revenue decreased by 1.8% to KRW 4,429.9 billion. Cost of goods sold and SG&A decreased by 1.3% to KRW 83,909.7 billion. Fuel costs decreased by 13.8% to KRW 19,436.4 billion, and purchase power costs decreased by 1.8% to KRW 34,052.7 billion. Depreciation expense increased by 2.3% to KRW 11,667.8 billion.

Next, I will go over the non-operating items. Interest expense decreased by KRW 325.6 billion YOY to KRW 4,339.5 billion. As a result of the foregoing, the 2025 consolidated annual operating income stood at KRW 13,524.8 billion, and net income was KRW 8,737.2 billion.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 안녕하세요, IR 담당 Eom Tae-seop입니다. 이어서 주요 관심 사항 말씀드리겠습니다. 먼저 전력 판매 실적 및 전망에 대해 말씀드리겠습니다. 연간 전력 판매량은 경기 둔화 등의 영향으로 산업용 수요가 감소하여 총 판매량 549.4 terawatt-hours를 기록하여 전년 동기 대비 0.1% 감소하였습니다. 2026년에는 경제 성장률 상승과 조업일수 증가 등의 영향으로 판매량이 소폭 증가할 것으로 전망하고 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon. I am Eom Tae-seop, head of IR Team. I will go over the matters of interest. I will talk about the performance of power sales and its outlook for the remainder of the year. Annual power sales volume due to economic downturn, and as a result of that, given the industrial demand has decreased, the total sales volume was 549.4 terawatt-hour, which is a 0.1% decrease year-over-year. In 2026, the economic growth rate and number of operating days increase should lead to a slight increase in the total sales volume.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 다음으로 연료 원별 연료 가격 및 SMP 추이에 대해 말씀드리겠습니다. 이천이십오년 연간 연료 가격은 유연탄은 호주탄 기준 톤당 백오점칠 달러, LNG는 JKM 기준 톤당 약 구십팔만 원을 기록하였습니다. 또한 SMP는 약 백십이점칠 원 per kilowatt hour를 기록하였습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): next, I will go over the fuel price by fuel source and SMP trends. In 2025, if you look at the annual trend of the fuel prices for bituminous coal, Australia, the price was around $105.7 per ton. For LNG, JKM was KRW 980,000 per ton, and the SMP was around KRW 112.7 per kilowatt hour.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 전력 그룹사 발전 믹스를 살펴보면, 2025년 연간 발전 비중의 경우 원전은 이용률 상승으로 발전 비중이 증가하였습니다. 석탄의 경우 이용률 상승으로 발전 비중이 증가하였고, LNG는 설비 용량 감소와 기저 발전량 증가로 발전 비중이 감소하였습니다. 2026년 연간으로는 원전 발전 비중 증가, 석탄 비중은 감소, LNG 비중은 유지할 것으로 예상합니다. 2026년 연간 발전원별 이용률 전망은 원전은 80% 중후반, 석탄은 40% 중반, LNG는 20% 초중반을 전망하고 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Next, I will go over the generation company. If you look at the annual 2025 generation mix, the capacity factor of nuclear power increased, thus its contribution to the mix increased as well. For coal, the capacity factor increased, thus the contribution in the generation mix increased. For LNG, the installed capacity decreased, due to the increase of base load power generation, the contribution to the mix decreased. For 2026 on annual basis, we expect the contribution of nuclear power to increase, coal to decrease, LNG should largely remain flat. In 2026, the capacity factor for each fuel source should be as follows: nuclear power around mid to high 80%, coal around mid 40%, LNG should be around early to mid 20%.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): IPS 관련 비용에 대해 말씀드리겠습니다. 2025 연간 IPS 비용은 연결기준 KRW 3,989.7 billion, 별도 기준 KRW 4,818.8 billion을 기록하였습니다. 마지막 자금조달 현황입니다. 2025 Q4 연결 기준 차입금은 KRW 129.8 trillion, 별도 기준 차입금은 KRW 84.9 trillion을 기록하고 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Next, I will go over the RPS cost. In 2025, annual RPS expense on consolidated basis was KRW 3,989.7 billion, and on standalone basis it was KRW 4,818.8 billion. Last, I will go over the funding situation. As of 2025 Q4, consolidated total borrowings was KRW 129.8 trillion, and on standalone basis it was KRW 84.9 billion.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 이어서 질의응답 시간을 갖도록 하겠습니다. 국, 영문 순차 통역으로 진행되므로 질문과 답변을 간단하고 명료하게 해주시면 감사하겠습니다. 그럼 이제 질문을 시작해 주시기 바랍니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Now we will move on to the Q&A session. Since we will be conducting the Q&A session in both Korean and English, please make your questions and answers clear and brief. Thank you.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 지금부터 질의응답을 시작하겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1을 눌러주십시오. 신청하신 질문을 취소하시려면 별표와 2를 눌러주시면 됩니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Now, the Q&A session will begin. Please press asterisk one if you have any questions. For cancellation, please press asterisk two on your phone.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 처음으로 질문해 주실 분은 LS증권의 성종환님입니다. 질문해 주십시오.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): The first question will be given by Jong Hwa Sung from LS Securities. Please go ahead.

Jong Hwa Sung, Analyst, LS Securities: 네, 감사합니다. LS Securities의 성종화입니다. 감기로 목소리가 좀 안 좋은 거 양해 구하고요. 우선 실적 관련된 질문 2가지 드리겠습니다. 4분기가 그 원전 계획예방정비 집중으로 원전 비중이 YOY로 조금 과도 비중으로 투서되는 것을 감안해서 그 연료비와 전력 구입비를 좀 조정해 놓았기 때문에 예상에 부합했는데, 영업이익이 한 KRW 1 trillion 정도 예상에 미달한 것이 조금 기타 비용 쪽인 것 같아요. 기타 비용이 예상보다 한 KRW 1 trillion, KRW 2.2 trillion 정도 초과를 했거든요. 4분기 혹시 원전 복구 충당금이나 온실가스 배출권 가격이 2025년에는 4분기에 집중되는 걸로 알고 있는데요. 그 금액이 얼마 정도 되는지 말씀해 주시고, 이 매년 특정 분기에 고정적으로 계속 발생 하는 게 아니라, 분기별로 어떤 분기는 뭐 2분기, 어떤 분기는 4분기 자꾸 돌아가면서 발생하고 있는데, 혹시 연간으로는 연도별로는 원전 복구 충당금이나 온실가스 배출권가가 비교적 비슷한 금액이 유지가 되고 있는지 그것도 말씀해 주시고요. 첫 번째 질문이었습니다.

두 번째는, 아까 올해 원전 믹스, 원전 발전 비중은 작년보다는 전체적으로 좀 증가한다고 말씀하셨는데, 작년 Q4가 좀 이례적으로 잘 가다가 원전 발전 비중이 YOY 6 percentage points 이상 이렇게 축소가 됐잖아요? 축소된 그 모수를 기준으로, 예를 들어, 올해 Q4도 그것이 좀 증가한다는 것인지, 아니면 작년 Q4 원전 발전 그 비중이 좀 이례적으로 축소된 것이기 때문에 원래 그 좀 증가했으리라고 가정하는 원래 수준 대비 좀 증가할 것이라는 것인지? 올해 Q4 원전 발전 비중은 작년 Q4 대비로는 상당폭 비중이 확대가 되는 것인지, 아니면 조금 확대가 되는 것인지 답변 부탁드리겠습니다. 두 번째 질문이었습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon, thank you for the opportunity. I am from LS Securities, my name is Hong Jong Hwa, please understand my sore throat today. I have two questions. Number 1, it’s about the contribution of the nuclear power generation in the generation mix. I think largely fuel cost and power purchase cost was in line with expectations. Nevertheless, the operating income was underperforming expectations by around KRW 1 trillion. I think this is largely because of other costs. I think other costs was around KRW 1.2 trillion higher than what we expected. I believe this is mainly coming from the recovery of nuclear power generation sites and costs associated to carbon and greenhouse gases. It seems that these cost items were concentrated in Q4 in 2025.

However, if you look at other years, sometimes it’s booked in Q2, sometimes it’s booked in Q4, and so, the seasonality is not stable. On an annual basis, on an annual basis, how much do you expect these other cost items to be generated or incurred every year? Second is about the contribution of the nuclear power generation. In Q4 2025, on a YY basis, I think the nuclear power generation contribution went down by around 6%, which is unusual given that for the first three quarters of 2025, our nuclear power generation contribution was higher than that.

When you say, or you said in your keynote that the contribution of nuclear power will probably increase in 2026, is it compared to Q4 2025, or is it compared to the first 3 quarters of 2025? In other words, in Q4 2026, will nuclear power generation contribution be slightly higher or significantly higher than 2025 Q4? Thank you.

네, 말씀드리겠습니다. 첫 번째 질문 관련해 가지고, 온실가스 충당부채 전입액은 전년 대비 KRW 1,606억 증가한 KRW 3,406억 정도 되고요. 이제 원전 충당부채 증액종목 같은 경우에는 전년 대비 KRW 4,112억 증가한 KRW 46억 환입액, -KRW 46억이라고 보시면 될 것 같습니다. 이게 언제 이게 쌓이냐라고 하는 부분은 저희가 이제 내부적으로 논의하고 답변 드리도록 하겠습니다.

I will first address your first question regarding the other cost. The provisions for related to greenhouse gas emissions went up by around KRW 120.6 billion to KRW 340.6 billion. The provisions regarding the recovery of the nuclear power generation sites, it went up by KRW 411.2 billion, resulting in a -KRW 4.6 billion. There was actually write backs. The exact timing of when we book these type of provisions and costs, I think we will discuss internally and I’ll get back to you later on. Regarding your second question, we mentioned that the capacity factor for nuclear power should be around mid-high 80% on an annual basis.

Maybe towards the end or early part of the year, the capacity factor may seem lower than that, but on an annual basis, I believe that it will be higher. Especially given that we have nuclear power plants who are going through and completing its maintenance, preventive maintenance process, which should come back online. The addition of new power plants should add to the higher capacity factor of nuclear power in 2026.

다음 질문 받겠습니다.

Jong Hwa Sung, Analyst, LS Securities: 다음으로 질문해 주실 분은 Meritz Securities의 Kyeong Won Moon님입니다. 질문해 주십시오. The following question is by Kyeong Won Moon from Meritz Securities. Please go ahead.

Kyeong Won Moon, Analyst, Meritz Securities: 네, 안녕하세요. Meritz Securities Kyeong Won Moon, Analyst. 3가지 질문이 있습니다. 우선 첫 번째로는 3분기 대비해서 4분기 연결 영업이익이 크게 줄었음에도 불구하고, 별도 영업이익은 오히려 늘어났거든요. 이 원인을 설명해 주시면 좋겠습니다. 아무래도 정산조정계수 관련한 것 같은데, 이게 얼마나 변했는지 궁금하고, 1분기에 정산조정계수도 어떤 식으로 변화할지 같이 설명해 주셨으면 좋겠습니다. 두 번째 질문은, 영업이익 대비 세전이익이 좀 잘 나온 것 같습니다. 연결손익, 별도손익 모두, 영업이익 대비 세전손익이 생각보다는, 제 생각보다는 잘 나온 것 같은데, 금융 손익에서 뚜렷한 어떤 일회성 이익이나 이런 것들이 있었는지 궁금합니다. 세 번째로는 방금 배당 공시가 나왔는데요. 제가 계산하기로는 별도 순이익 기준 대비 이 배당성향이 작년보다도 오히려 감소한 이 모습을 보여준 것 같은데, 이 DPS 산출 논리가 어떻게 됐는지, 왜 이런 숫자가 나오게 됐는지 궁금하고요. 2026년에 배당성향은 2024년, 2025년보다 더 늘어날 수 있을지, 그 방향성에 대해서도 같이 공유해 주시면 감사하겠습니다. 이상입니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon. My name is from Meritz Securities, and I have three questions today. One, if you compare the consolidated operating income of Q3 and Q4, and the standalone operating of the two quarters, I believe that the standalone operating income is relatively higher numbers or relatively better, show better performance. I believe this is largely driven by the adjustment coefficient. Is that the main reason, or what is the main reason behind this? What would be your expected adjustment coefficient for Q1, 2026? My second question is regarding the before tax profit. Compared to the operating income, the before tax profit seemed to have performed quite strongly, both for consolidated and standalone numbers. What would be the reason behind this?

Were there any one-off PNL items in other categories, like the finance, and other businesses? My third question is related to the dividends. I believe that the dividend was just announced, and if you look at the dividend payout on the standalone net income basis, it seems that it actually decreased compared to last year. How did you come to this DPS number? What is the logic behind that? What would be your expectation or outlook for the dividend payout of 2026? Do you think it will be higher than 2024 and 2025?

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 첫 번째 질문 답변 드리겠습니다. 저희 연결이익 대비 별도이익이 조금 더 나아 보이는 사유는, 연결이익에서는 자회사 관련 비용이 좀 추가된 게 있는데, 별도 이익에서는 그게 없기 때문에 그렇게 나타난 것으로 보이고 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Regarding your first question, it may seem that the standalone profits are stronger than the consolidated numbers, because there are some costs associated with our subsidiaries, which is booked under consolidated financial statements, but not on our standalone numbers.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 두 번째, 정산조정계수 관련해 조금 부연 설명을 드리면, 정산조정계수는 작년 사분기 중에 조금 높으, 높- 평소보다, 어, 기존보다 조금 높게 설정이 되었습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Regarding the adjustment coefficient, in Q4 last year, the numbers were slightly higher than previous, you know, average quarters.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 2026년에 정산조정계수 방향성은 2025년보다는 조금 높은 방향으로 설정이 되어 있는 상태입니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): The coefficient for 2026, we expect to be slightly higher than 2025.

Kyeong Won Moon, Analyst, Meritz Securities: 두 번째 질문에 대한 답변 드리겠습니다. 영업이익에서 이제 세전손익으로 넘어갈 때 이제 금융손익 쪽에서 말씀 주셨는데, 이게 저희 현금 말고 자회사 쪽에서는 이제 환율 하락으로 헷지가 불가능한 리스 부채가 있는데, 이게 외화 환율이 하락을 하면서 이제 외화 평가이익 손익이 발생을 해서 그런 이제 차이, 그, 가 별로 안 나는 그런 차이가 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Regarding your question comparing the operating income and the before tax income. For our subsidiaries, there were some lease liabilities that could not be hedged due to the decrease in the FX rates. Because of the FX in the process of the FX conversion, there were some valuation losses and gains that needed to be booked that impacted the numbers.

네, 세 번째 질문에 대한 답변 드리겠습니다. 일단 말씀 주신 대로 전년 배당 성향이 16.5% 대비 올해 배당성향은 13.65%로, 배당성향 자체는 감소하였습니다. 다만, 당기순이익이 크게 증가함에 따라 별도 기준 당기순이익이 크게 증가함에 따라, 총 배당금액을 주당 배당금으로 나누는 DPS 같은 경우에는 증가 1,540 KRW으로 크게 증가하였습니다. 2026년 배당성향 같은 경우에는 저희는 두 규제 상법에 따라 정부 배당 계산 주어서도, 저희가 단독으로 결정하기는 어렵고, 정부와 협의하여 결정되는 사항이기 때문에 현재로서는 배당 증가에 대한 부분은 말씀드리기 어려울 것 같습니다.

Regarding your question on dividends, last year, the payout was 16.5%, and this year it was 13.65%. Like you mentioned, it did decrease. However, I’d like to note that the size of the net income on standalone basis increased significantly, so the absolute amount of dividends that were paid out will increase. DPS also increased to around KRW 1,541 per share. As for 2026, as you know, we are a public corporation, and subject to the relevant legislations. We need to discuss the dividend strategy with government departments. At this point, unfortunately, we are not able to comment on the direction of 2026 dividends.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): Foreign language

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): The following question is by Jaeseon Yoo from Hana Securities. Please go ahead.

Kyeong Won Moon, Analyst, Meritz Securities: Yeah.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon. I am Jaeseon Yoo from Hana Securities. I have four questions. My first question is provisional liabilities related to used fuel, used nuclear fuel. In January, I read news that the unit price has gone up. Maybe can you give us a little bit more color on this topic? My second question is also related to this as well. What was the total amount of the used nuclear fuel related provisional liabilities booked by KHNP in Q4 2025? Third, there was a 15% decrease, price decrease, that was subject to a grace period. That grace period is coming to an end. I believe, therefore, the bituminous coal in price can go up.

What would be the associated cost that you are expecting in regards to the end of the grace period? Fourth is related to the bond issuance limit. What would be the outstanding amount of bonds issued, and how much room do you have in comparison to the cap?

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): Foreign language

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Try to address your first two questions at once. The provisional liabilities that were booked for the recovery of nuclear power sites was KRW 904.5 billion, increased by KRW 904.5 billion, to KRW 24,076.9 billion. As for the used nuclear fuel, it decreased by KRW 178.4 billion to KRW 2,745.3 billion. As for the mid and low level nuclear waste associated provisions and liabilities, it went up by KRW 10.2 billion to KRW 1,077.2 billion.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): Foreign language

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): As for your third question, regarding the grace period of the individual consumption tax coming to an end, and how that would impact our cost. We do have an internal estimate, but unfortunately, we are not able to disclose those numbers to the public and the market, so we ask for your understanding.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): Foreign language

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Yes, regarding your final question on the bond issuance cap. The final exact number can be calculated after the dividend is finalized at the board and shareholders meeting. We believe that it will be something around just over 3 times once all of those dividend-related activities are finalized.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 다음 질문 받겠습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): 현재 질문을 입청하고 계신 분은 없습니다. 질문 있으신 분들은 전화기 버튼의 별표와 일번을 눌러주십시오. Currently, there are no participants with questions. Please press asterisk one to give you a question. 다시 한번 말씀드리겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 일번을 눌러주십시오. Once again, if you have a question, please press asterisk one. 다음으로 질문해주실 분은 LS증권의 성종화입니다. 질문해 주십시오. The following question is by 성종화 from LS Securities. Please go ahead.

Jong Hwa Sung, Analyst, LS Securities: 안녕하세요. 두 가지 더 질문드리겠습니다. 첫 번째는 혹시 이 자리에서 가능한 수준 내에서, 그 원전 수출 일원화 관련 진행 사항이라든지 방향에 대해서 조금 공유해 주실 수 있는지요? 첫 번째 질문이고요. 그 두 번째는 BNPP 추가 공사비 한 KRW 1.4 trillion 정도에 대해서 자회사 한수원이 몇몇 분쟁 중재소에 지금 제출한 상황이잖아요. 그 추가 공사비 KRW 1.4 trillion은 그동안은 저희 연결 실적에 이제 비용으로 쭉 묻어서 이게 감인 요인으로 반영되어 있는 것인지. 만약 그렇다면, 나중에 한전이 UAE 정부로부터 또 이를 받아낼 수 있는지, 받아낸다면 도대체 실제에는 어떠한 식으로 반영이 되는지, 이 부분 말씀 부탁드리겠습니다. 예, 두 가지 질문이 있습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Yes, I have two questions. First is regarding the nuclear power generation export strategy. I believe that there is a process currently ongoing to streamline the Korean nuclear power generation export strategy. Maybe can you elaborate a little bit on how that is moving forward? Second, I believe that there is some court case in the international mediation courts by KHNP regarding the additional KRW 1.4 trillion construction cost that was incurred during the BNPP construction project. Has that been already reflected in the financial statement? If so, if KHNP is able to recover the cost from the UAE government, will that have impact on the financial statements?

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 네, 첫 번째 질문에 대해 답변드리겠습니다. 원전 수출 체계 일원화 관련으로는 현재 산업부에서 관련 협력을 진행 중인 것으로 알고 있습니다. 한전은 정부 한수원과의 협력을 통해서, 국익극대화 차원에서 가장 좋은 원전 수출 이원화 체계를 나아가는 데 협조하도록 하겠습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Yes. I will address your first question regarding the export of nuclear power plants of Korea. I believe that the research project has been outsourced by the Ministry of Industry, and they are currently waiting for the results. KEPCO, of course, will be closely cooperating with the government to ensure that high quality nuclear power plant export strategy can be developed to maximize and satisfy the global customers.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 두 번째 질문 답변드리겠습니다. 현재 KEPCO KHNP 분쟁 관련해서는 분쟁이 진행 중이나 양 사간의 대화와, 대화의 길을 열어놓고 계속 협상하고 있으며, 분쟁 해결 방안을 모색 중에 있습니다. 구체적인 수치 관련해서는 답변드리기 힘든 점 말씀 양해 부탁드립니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Yes, your second question regarding the dispute between KEPCO and KHNP. We are currently in conversation and negotiation with them, and I think both parties are making utmost effort to resolve this conflict in a stable manner. However, please understand that we are not able to disclose any specific numbers.

Eom Tae-seop, Head of IR Team, Korea Electric Power Corporation (KEPCO): 다음 질문 받겠습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): 다음으로 질문해 주실 분은 UBS의 조윤행님입니다. 질문해 주십시오. The following question is by 조윤행 from UBS. Please go ahead.

Unknown, Analyst, JP Morgan: 예, 질문 기회 감사합니다. 세 가지 질문 드리겠습니다. 먼저 전기요금 관련해서인데요. 최근에 이제 언론 보도에 따르면 산업용 요금에 대해서 일단 정부하 요금, 이제 시간과 특히 뭐 주말 할인 같은 것들을 고려하고 있다는 보도가 나왔는데요. 추가적으로 또 이제 지역별 요금제도 산업용에 이제 한정해서 적용을 이제 예상을 하고 있다고 기후에너지환경부 장관님이 말씀을 하셨습니다. 그래서 이와 같은 이 두 가지 변화에 대해서 저희가 어떤 방향으로 지금 계획을 짜고 계신지, 그리고 전체적인 전기요금 평균 단가에 어떤 영향을 예상하고 계신지 궁금하고요. 또 이러한 제도들이 어느 시점에 이제 새로 적용이 될 예정인지도 좀 그 타임라인 좀 말씀해 주시면 감사할 것 같습니다. 두 번째 질문과 세 번째 질문은 간단한 숫자 관련인데요.

일단 두 번째 질문은 그 아까 말씀해 주실 때 그 사분기 때 뭐 자회사에서 관련된 비용이 좀 추가된 게 있다고 답변을 말씀해 주셨는데, 혹시 저희가 좀 인지해야 될 만한 좀 특이사항이라든지, 또 일회성 비용이 자회사 쪽에서 있었는지 궁금합니다? 세 번째 질문은 저희가 사분기 때 혹시 연결 기준 판매 관리비 얼마인지 숫자 여쭙겠습니다. 감사합니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Good afternoon. Thank you for the opportunity today. I have three questions. One is regarding the tariffs. The press recently has reported that there may be some differentiated price scheme applied to industrial power. Currently you are thinking of, for example, different pricing per time or offering weekend discounts for the industrial use. There are also talks about regional pricing schemes for the industrial power, and these elements have been mentioned by the Minister of Climate, Energy and Environment. Can you elaborate or give us a little bit more color on this scheme? How do you think it will impact the average unit price of power overall? When do you think that these new schemes can be introduced? My second question is regarding to your comments earlier today.

You mentioned that in Q4, there were some costs associated subsidiaries that were booked. Were there any unusual one-offs that should be aware of? My third question is about the SG&A cost. What was the exact amount, consolidated basis for Q4?

First question, inaudible.

Regarding your first question, with the increase of the solar PV power generation, the overall load patterns are changing. To reflect this change, we are currently developing seasonal and seasonal pricing schemes and also different pricing schemes for time period. We are also considering the balanced growth of the overall national economy and regions, and also working to distribute or disperse the power demand nationwide. These are the reasons why we are also developing a new pricing scheme that can better reflect the regional situations and regional demand. We are working closely with the central government to develop a reasonable and reasonable new pricing scheme, reflecting all of these elements. However, as to its impact on unit price and the exact timeline, I believe it’s a little bit early.

We are also listening to the opinion of the corporates and overall business and industry community as well. Once we have a better idea on the specifics of this matter, then I think, you know, we can disclose some of the information. Currently we are under a close negotiation and discussion with the government.

Regarding your second question, I think, all we can say at this point about the cost of both by subsidiary is that it is related to overseas businesses.

As for your final question regarding consolidated SG&A cost. Currently we are in the process of closing the books, and so we do not have the final exact numbers right now. Once the audit report is released, the number will be included in the financial statements.

Unknown, Analyst, JP Morgan: The following question is by from JP Morgan. Please go ahead.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Thank you for the opportunity. I only have 1 question. I believe that in the past, there were some discussions on reflecting the individual elements in the fuel cost of the ASFP. Have you continued those discussions? Do you have any updates that you can share with us? Can you please elaborate on that question, please?

Unknown, Executive/Spokesperson, Korea Electric Power Corporation (KEPCO): 그 한전의 전력 단가를 결정하는 방식에 대해서, 현재까지는 한국전력에서는 좀 제한을 드리고, 그러니까 plus or minus 5 KRW에 대해서 어느 정도, 그, 한국전력에서는 이 정도 가격을 책정을 해주셨으면 한다라고 정부에 건의를 하는 방식이고, 그걸 정부가 결정하는 방식이었는데, 그렇게 하지 않고 이제 또 법률을 통해서, 법률을 통해서 그 가격을 결정하는 방식으로 가게 된다면, 이게 전력, 만약에 현재 이제 fuel cost가 만약에 오르게 된다고 하더라도, 그것을 자연스럽게 전가하는 방식으로, 그러니까 한국 외에 다른 해외 발전 회사처럼 그 cost가 정립되는 방식으로 될 수 있지 않을까라는 생각을 가지고 있는데, 혹시 현재까지 조금 한전 내부 내지는 정부와의 협의가 좀 어떻게 진행되고 있는지 저는 궁금합니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Yes, I believe that currently, when the tariffs are determined, KEPCO would make a proposal to the government, maybe around plus minus 5 KRW, and ultimately the government would make the decision. However, I believe that there were some discussions on finding the legal mechanism to ensure that the cost pass-through system can work, unlike other utility companies outside of Korea. If the fuel costs would go up, this would naturally be reflected in the tariffs through the cost pass-through mechanism. I was wondering if there were any progress in those discussions with the government?

답변 드리겠습니다. KEPCO에서는 현재 그 말씀하신 KEPCO fuel cost linkage system을 운영을 하고 있고요. 각 분기마다 변동하는 연료비 단가를 반영을 해서 저희 전기요금 단가에 조정을 하고 있는데, 이제 그 전체적으로 합리적인 전기요금 제도가 될 수 있도록, 또 제대로 작동될 수 있도록, 지금 정부랑 또 각계의 의견을 듣고 있습니다. 그 전체적으로 KEPCO fuel cost linkage system도 좀 더 개선되고 합리적으로 운영될 수 있도록, 저희가 정부랑 협의해서 운영을 해보겠습니다.

Currently we have in place the cost pass-through system. On a quarterly basis, the fuel prices are reflected in the tariffs. We are also working to improve how it is being implemented. We are, you know, discussing with the government and listening to the voices of the related parties and industries to find ways to further improve the cost pass-through system going forward.

다음 질문 받겠습니다.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 현재 질문을 요청하고 계신 분은 없습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Currently, there are no participants with questions. Please press asterisk one to give you a question.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 다시 한번 말씀드리겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): Once again, if you have a question, please press asterisk 1.

Unknown, Conference Moderator, Korea Electric Power Corporation (KEPCO): 질문이 더 이상 없으신 관계로 이상으로 질의응답을 마치겠습니다. 추가로 궁금하신 점은 IR Team으로 문의 부탁드립니다. 바쁘신 중에도 참석해 주신 분들께 감사드리며, Korea Electric Power Corporation의 2025년 Q4 실적 발표는 이것으로 마치겠습니다. 고맙습니다.

Si-young Yang, Head of Finance Department, Korea Electric Power Corporation (KEPCO): As there are no further questions, we will now end the Q&A sessions. If you have any question inquiries, additional inquiries, please contact our IR department. This concludes the fiscal year 2025 4 quarter earnings resulted by KEPCO. Thanks for the participation.