KEPCO to receive $2.5 bn in interim dividends from power subsidiaries

[Photo by Yonhap]

Korea Electric Power Corp (KEPCO), grappling with over 200 trillion won ($154.2 billion) in debt, will receive interim dividends worth 3.2 trillion won from its six power generation subsidiaries including the Korea Hydro & Nuclear Power Co. (KHNP).

KHNP held a board meeting on Wednesday and approved an interim dividend of 1.56 trillion won to KEPCO. Korea Western Power Co. also passed a proposal for an interim dividend of about 300 billion won and Korea Southern Power Co. and Korea Midland Power Co. plan to follow suit on Thursday and Friday, respectively.

Korea East-West Power, however, presented a condition that it will provide an interim dividend this year but will not offer its regular dividends next year. Other power generation subsidiaries may set similar terms.

The financial support from its subsidiaries comes as concerns grow that KEPCO may not be able to issue new bonds next year.

As of December, the balance of KEPCO bonds stood at 80.1 trillion won. The limit for bond issuance is set at five times KEPCO’s capital and reserves. Failing to raise electricity prices on time and selling electricity below cost resulted in a net loss of 25.3 trillion won in 2022 and 7 trillion won in the first 9 months of this year.