KEPCO, KOGAS rack up staggering debt interest

[Photo provided by each company]

South Korean public utilities Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation (KOGAS) are grappling with a combined debt of nearly 250 trillion won ($188 billion). Their combined financial burden was exacerbated by the substantial interest payments of 6 trillion won incurred in 2023 alone, primarily due to borrowing from financial institutions and issuing bonds.

Analysts suggest that the challenges for both entities, struggling to generate operating profits, are further compounded by soaring borrowing costs, which are eating into their overall profit outlook.

According to industry sources on Sunday, the total debt of KEPCO and KOGAS at the end of 2023 amounted to 249.8 trillion won. KEPCO’s debt soared from 192.8 trillion won in 2022 to 202.4 trillion won in 2023, up by 9.6 trillion won.

In contrast, KOGAS managed to reduce its debt from 52 trillion won in 2022 to 47.4 trillion won that year.