Debt-ridden Kepco to dump properties in Philippines, Indonesia

Korea Electric Power Corporation (Kepco) will divest its overseas assets, including its 60 percent share of a coal-fired power plant in Cebu, the Philippines.

Korea Electric Power Corporation headquarters in South Jeolla [YONHAP]

Korea Electric Power Corporation (Kepco) will divest overseas assets, including its 60 percent share of a coal-fired power plant in Cebu, the Philippines, to enhance its financial stability and streamline its portfolio.

The severely indebted government-backed electric utility, which is responsible for about 90 percent of Korea's electricity generation, announced Sept. 27 that it plans to sell its shares of five business units located in the Philippines, Jordan and Indonesia.

Kepco aims to secure at least 250 billion won ($189.12 million) from these asset sales. It plans to put the funds toward emerging sectors like green hydrogen and renewable energy.

“Leveraging our accumulated business development expertise and know-how, we plan to identify new business opportunities. By strategically divesting certain equity holdings and improving capital turnover, we will secure the necessary resources to reinvest in these new ventures,” said a Kepco spokesperson.

Kepco's total debt reached a staggering 203 trillion won ($154.11 billion) in 2023, highlighting its longstanding financial challenges.

The company announced its intention to sell all overseas coal-fired power plants in 2022 and entered the sale process for its interest in one such plant in Cebu but did not ultimately complete that transaction.

A consortium of five public power companies, including Korea East-West Power and Korea South-East Power, under the umbrella of Kepco, is also considering divesting its shares in Bayan Resources, a coal-fired power plant in Indonesia.

BY YOON SEUNG-JIN [yoon.seungjin@joongang.co.kr]