KEPCO Focuses on Ensuring Trans -parency and Int'l Standards
- An IR session marking the 10th anniversary of listing its ADRs to NYSE

KEPCO President-CEO Han Joon-ho said his company would make efforts to ensure transparency by improving its governance structure and meeting the requirements imposed on the utility as a listed company of the New York Stock Exchange (NYSE) and a corporation registered with the U.S Securities and Exchange Commission (SEC).
KEPCO President Han made the remarks in his speech he delivered during its presentation session on foreign investors and closing bell ceremony held at the NYSE on Oct. 28 (KST). "Korea Electric Power Corporation (KEPCO) has emerged as an excellent company with transparency by satisfying more stringent U.S. regulations such as duties on public notices in the past 10 years than in Korea, and KEPCO will redouble efforts to enhance transparency by observing such requirements as the regulation of the Sarbanes-Oxley Act," Han said.
The investor relation session and bell closing ceremony were held in celebration of the 10th anniversary of listing KEPCO ADRs (American Depository Receipts) on the NYSE with KEPCO President Han, John Thain, NYSE chairman and foreign investors participating.
KEPCO has conducted two more listings since it put 1.2 percent of its shares on the NYSE for the first time in 1994. As a result, the shares listed on the NYSE has increased to 81.66 million ADRs, accounting for 7.15 percent of the total shares listed in Korea and abroad. The ADR price closed at $10.65 as of Oct. 25, and the aggregate value of the listed value was worth $980 million. Foreign investors' stock holding stood at 30.8 percent.
During the session, KEPCO President Han released KEPCO's interim report on the third-quarter business performances posting 6,663.8 billion won in estimated sales for the quarter, an 8.9 percent rise over the same period of last year. Its operating profit for the quarter was projected at 1,291.8 billion won, a 14.2 year-on-year rise, while net profit was estimated at 1.2 trillion won, a 19.3 percent surge. Han attributed the better business performance for the third-quarter to a 7 percent rise in electricity sales, caused by the sultry summer.
Answering to questions from foreign investors during the IR session, KEPCO President Han said KEPCO would consult with the government a plan to raise electricity charges around the end of the year when an examination into what impact energy cost hikes have on electricity production costs is complete. KEPCO has exerted itself to secure such favorable purchase terms as long-term coal contracts in its collaboration with its power generation units aimed at establishing a stable supply of fuels and saving energy costs, he said. To this end, the Korean utility giant said it also would secure holdings into foreign energy suppliers and implement direct resource development projects abroad.
Han said his company would make efforts to raise its financial soundness by selling off their stakes in their non-core units such as Korea Southern Power Co. and Korea Plant Service and Engineering Co. KEPCO will actively participate in overseas projects in a bid to overcome the growth limits of the domestic electricity industry, he said.
In his meeting with reporters, KEPCO President Han said Korea Gas Corp. put up opposition to KEPCO's plan to participate in the direct import of liquefied natural gas (LNG) from foreign countries, but KEPCO's involvement in importing LNG is necessary in terms of securing competitiveness. "Such countries as China and the Philippines have floated a proposal granting KEPCO the permission on developing LNG in return for constructing power plants for them, so KEPCO needs to participate in LNG imports to capitalize on such suggestions and If end-users like KEPCO were allowed to do so, their import prices would be lowered," Han said.
Han noted that KEPCO would give a higher rate of dividend of 21 percent or more, beyond last year's level. nw