Korea Electric Power Corporation (KEP): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la transformation mondiale de l'énergie, Korea Electric Power Corporation (KEP) se dresse au carrefour de l'innovation, de la durabilité et des défis stratégiques. Cette analyse complète du pilon dévoile les forces multiformes qui façonnent la trajectoire stratégique de KEP, explorant comment les engagements politiques, les pressions économiques, les attentes sociétales, les progrès technologiques, les cadres juridiques et les impératifs environnementaux convergent pour redéfinir l'avenir de la production d'électricité en Corée du Sud. Plongez dans cette exploration complexe de l'écosystème complexe de KEP, où chaque dimension révèle des informations critiques sur le potentiel de résilience, d'adaptation et de leadership de la société dans le secteur de l'énergie en évolution.

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs politiques

Le fort engagement du gouvernement envers la transition nucléaire et renouvelable

Le 9e plan de base de la Corée du Sud pour l'offre d'électricité et les objectifs de demande de 21,6% des énergies renouvelables d'ici 2030. L'investissement gouvernemental dans les énergies renouvelables a atteint 4,5 billions de wons en 2023.

Type d'énergie	2030 cible (%)	Part actuel (%)
Énergie renouvelable	21.6	6.4
Énergie nucléaire	20.0	26.4

Pressions réglementaires pour réduire les émissions de carbone

La Corée du Sud s'est engagée à réduire les émissions de gaz à effet de serre de 40% par rapport aux niveaux de 2018 d'ici 2030. KEP fait face à des mandats de réduction du carbone stricts avec des pénalités potentielles pouvant atteindre 100 milliards de won pour non-conformité.

• Cible de réduction des émissions de carbone: 40% d'ici 2030
• Amendes réglementaires potentielles: jusqu'à 100 milliards de
• Investissement obligatoire des énergies renouvelables: augmentation annuelle minimale de 5%

Propriété de l'État et contrôle stratégique

Le gouvernement coréen maintient 51,4% de la propriété de KEP par le biais d'actionnaires directs et indirects. La composition du conseil d'administration contrôlée par l'État assure un alignement stratégique sur les politiques énergétiques nationales.

Catégorie des actionnaires	Pourcentage de propriété
Propriété directe du gouvernement	36.3%
Propriété indirecte du gouvernement	15.1%
Actionnaires privés	48.6%

Tensions géopolitiques affectant les infrastructures énergétiques

Les tensions géopolitiques en cours avec la Corée du Nord et les incertitudes régionales ont un impact sur les investissements internationaux des infrastructures énergétiques de KEP. Les dépenses annuelles de protection contre les infrastructures liées à la sécurité estimées à 250 milliards de wons.

• Investissement annuel d'infrastructure de sécurité: 250 milliards de won
• Budget d'atténuation des risques géopolitiques: 150 milliards de won
• Fonds de contingence de partenariat international: 100 milliards de won

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs économiques

Fluctuant les prix de l'énergie impactant les performances financières de KEP

En 2023, le coût moyen de la production d'électricité pour KEP était de 93,4 won coréen par kWh. Le chiffre d'affaires total de la société a atteint 59,3 billions de coréens a gagné, avec un revenu net de 1,2 billion de won. La volatilité des prix de l'énergie a eu un impact direct sur les marges financières de la société.

Année	Coût de production d'électricité (gagné / kWh)	Revenus totaux (trillions gagnés)	Revenu net (billion gagné)
2023	93.4	59.3	1.2
2022	87.6	55.7	0.9

Coût d'investissement élevé des infrastructures pour moderniser la production d'électricité

KEP a alloué 3,6 billions de won pour la modernisation des infrastructures en 2023. L'investissement s'est concentré sur les infrastructures d'énergie renouvelable et la modernisation du réseau.

Catégorie d'investissement dans l'infrastructure	Montant d'investissement (milliards de billions)
Infrastructure d'énergie renouvelable	1.8
Modernisation de la grille	1.2
Transformation numérique	0.6

Demande croissante de solutions énergétiques durables et rentables

Cibles d'énergie renouvelable: KEP vise à augmenter la capacité des énergies renouvelables à 20% d'ici 2030. La contribution actuelle des énergies renouvelables s'élève à 6,8% de la production totale.

• Capacité d'énergie solaire: 3200 MW
• Capacité d'énergie éolienne: 1 500 MW
• Investissement renouvelable projeté: 5,2 billions gagnés d'ici 2025

Défis économiques de la réduction potentielle de la production d'électricité traditionnelle

La contribution traditionnelle de la production d'énergie est passée de 72% en 2022 à 68% en 2023. La production d'électricité à base de charbon a diminué de 4,5% en glissement annuel.

Source de production d'électricité	2022 contribution (%)	2023 contribution (%)
Charbon	35.6	31.1
Nucléaire	25.4	26.7
Gaz naturel	11.0	10.2

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs sociaux

Conscience et demande croissantes du public pour les technologies d'énergie propre

According to the Korea Energy Agency, renewable energy consumption increased to 6.17% in 2022, representing a 0.64 percentage point growth from 2021. Public support for clean energy technologies showed significant momentum, with 73.4% of South Korean citizens expressing positive attitudes towards renewable energy development .

Type d'énergie	Pourcentage du mélange d'énergie total (2022)	Croissance en glissement annuel
Énergie solaire	3.2%	+0.8%
Énergie éolienne	1.5%	+0.4%
Énergie de biomasse	1.5%	+0.2%

Faire du travail vieillissant et besoin de talents technologiques qualifiés

L'âge moyen de la main-d'œuvre de KEP est de 43,7 ans, avec 28% des employés qui devraient prendre leur retraite au cours des 5 prochaines années. Les défis techniques de recrutement persistent, avec un écart de compétences de 12,6% dans les technologies énergétiques émergentes.

Travailleur démographique	Pourcentage
Moins de 35 ans	22.3%
35 à 45 ans	39.4%
Plus de 45 ans	38.3%

Augmentation des attentes sociales en matière de responsabilité environnementale

KEP a déclaré des investissements de 1,2 billion de KRW dans les initiatives de durabilité environnementale en 2022. Les engagements de réduction du carbone ont atteint 35,5% de la stratégie totale de l'entreprise, avec des notes de satisfaction du public à 68,2% concernant les efforts environnementaux des entreprises.

Chart démographique influençant les modèles de consommation d'énergie

Les projections de population de la Corée du Sud indiquent une baisse annuelle de 1,3% de la population de l'âge ouvrière. Les modèles de consommation d'énergie montrent une réduction de 4,2% de la consommation d'électricité résidentielle parmi les jeunes générations, entraînée par une sensibilisation accrue à l'efficacité énergétique.

Segment démographique	Consommation d'électricité mensuelle moyenne	Indice d'efficacité énergétique
18-34 ans	280 kWh	0.86
35 à 55 ans	342 kWh	0.72
55 ans et plus	412 kWh	0.58

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs technologiques

Investissements importants dans les technologies intelligentes du réseau et des énergies renouvelables

KEP a investi 2,3 billions de KRW dans Smart Grid Technologies en 2023. Le portefeuille des énergies renouvelables de la société a atteint 15,7% de la capacité de production totale, avec 6 820 MW d'infrastructures d'énergie renouvelable installées.

Catégorie de technologie	Montant d'investissement (KRW)	Capacité (MW)
Infrastructure de la grille solaire	890 milliards	3,450
Systèmes d'énergie éolienne	670 milliards	2,350
Infrastructure numérique intelligente	740 milliards	N / A

Capacités avancées de recherche et de développement de l'énergie nucléaire

KEP a alloué 385 milliards de KRW à la recherche et au développement nucléaires en 2023. La société maintient 4 centres de recherche nucléaire actifs avec 276 chercheurs spécialisés.

Focus de recherche	Budget de recherche (KRW)	Chercheurs
Conception avancée des réacteurs nucléaires	145 milliards	98
Technologies de sécurité nucléaire	120 milliards	86
Gestion des déchets nucléaires	120 milliards	92

Mise en œuvre de l'intelligence artificielle dans les systèmes de gestion de l'énergie

KEP a déployé des systèmes de gestion de l'énergie axés sur l'IA dans 72% de ses installations de production d'électricité. La société a investi 215 milliards de KRW dans l'IA et les technologies d'apprentissage automatique en 2023.

Application d'IA	Couverture de mise en œuvre	Investissement (KRW)
Maintenance prédictive	65%	85 milliards
Optimisation de la charge de grille	55%	75 milliards
Prévision de la consommation d'énergie	48%	55 milliards

Transformation numérique en cours de l'infrastructure de production d'électricité et de distribution

KEP a terminé les mises à niveau des infrastructures numériques dans 89% de ses réseaux de production d'électricité et de distribution. L'investissement total de transformation numérique a atteint 1,2 billion de KRW en 2023.

Composant d'infrastructure numérique	Taux d'achèvement de mise à niveau	Investissement (KRW)
Digitalisation du réseau	92%	480 milliards
Systèmes de cybersécurité	85%	320 milliards
Intégration IoT	78%	400 milliards

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs juridiques

Règlements environnementales strictes régissant la production d'électricité

Le ministère de l'Environnement de la Corée du Sud applique des normes juridiques strictes pour les émissions de production d'électricité. La Clean Air Conservation Act oblige les niveaux d'émission maximaux autorisés:

Polluant	Émission maximale autorisée (mg / nm³)
Dioxyde de soufre (SO2)	50
Oxydes d'azote (NOx)	50
Particules	20

Exigences de conformité pour la sécurité nucléaire et la gestion des déchets

La loi sur la sécurité et la sécurité nucléaire impose des exigences légales strictes:

• Les opérateurs de centrales nucléaires doivent maintenir une réserve de capital minimale de 500 milliards de KRW pour une compensation potentielle d'accident
• Surveillance obligatoire des radiations tous les 6 mois avec des rapports détaillés à la Commission de sécurité nucléaire et de sécurité
• Les installations de stockage des déchets radioactifs doivent respecter les normes internationales de l'AIEA

Augmentation des mandats juridiques pour la production d'énergie durable

Cible d'énergie renouvelable	Pourcentage	Année
Part d'énergie renouvelable dans la génération totale	20%	2030
Norme de portefeuille renouvelable obligatoire (RPS)	5.5%	2024

Cadre réglementaire complexe pour les opérations du secteur de l'énergie

Organes de réglementation clés supervisant les opérations de KEP:

• Ministère du commerce, de l'industrie et de l'énergie
• Commission de sécurité nucléaire
• Agence énergétique de la Corée
• Commission du commerce équitable

La sanction légale pour non-conformité aux réglementations énergétiques peut atteindre 1 milliard de KRW par violation.

Korea Electric Power Corporation (KEP) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone et les émissions de gaz à effet de serre

Korea Electric Power Corporation (KEPCO) a fixé un objectif pour réduire les émissions de carbone de 26,9% d'ici 2030 par rapport aux niveaux de 2017. Les émissions totales de gaz à effet de serre de la société en 2022 étaient de 237,5 millions de tonnes d'équivalent CO2.

Année	Émissions de carbone (millions de tonnes CO2)	Cible de réduction
2017	324.6	Année de base
2022	237.5	Réduction de 26,9%

Focus stratégique sur le développement des infrastructures d'énergie renouvelable

KEPCO a investi 3,2 billions gagnés dans des projets d'énergie renouvelable en 2023. Le portefeuille actuel des énergies renouvelables de la société comprend:

Type d'énergie renouvelable	Capacité installée (MW)	Investissement (milliards gagné)
Énergie solaire	1,856	1,100
Énergie éolienne	752	850
Hydro-électrique	214	350
Biomasse	118	250

Mise en œuvre de pratiques durables dans la production d'électricité

KEPCO a mis en œuvre des mesures d'efficacité énergétique résultant en:

• Réduction de 5,2% de la consommation d'énergie par unité d'électricité générée
• Implémentation de technologies de réseau intelligent dans 78 villes
• Déploiement de 2,3 millions de mètres intelligents à l'échelle nationale

Relever les défis environnementaux dans la production d'énergie nucléaire et traditionnelle

Statistiques de production d'énergie nucléaire pour KEPCO en 2022:

Centrales nucléaires	Nombre de réacteurs	Capacité totale (MW)	Généré par électricité (GWH)
Centrales nucléaires opérationnelles	24	22,500	154,300
Déclassement prévu	4	4,000	-

L'investissement de gestion des déchets en 2023: 450 milliards a gagné alloué à la manipulation des déchets nucléaires et aux mesures de protection de l'environnement.

Korea Electric Power Corporation (KEP) - PESTLE Analysis: Social factors

Public resistance to steep electricity tariff increases is high

You are operating in a highly politicized pricing environment, where the social cost of living acts as a hard cap on your primary revenue driver. The government has consistently frozen household electricity rates to mitigate public outcry and inflation concerns, despite the financial strain on Korea Electric Power Corporation (KEP). This political decision-making creates a significant structural risk for KEP's financial health.

To offset this, the rate hikes have been selectively applied to the industrial sector, which accounts for over half of the country's total power demand. For example, industrial electricity rates were raised by an average of 9.7% in October 2024. The rate for large businesses, the biggest energy consumers, increased by 10.2% to 182.7 won per kWh from 165.8 won per kWh. This disparity means the industrial selling price in the first half of 2025 reached 179.2 Korean won per kWh, significantly surpassing the household rate of 155.5 Korean won per kWh. Honestly, the household rate is defintely below the cost of supply.

Customer Segment	Rate Adjustment Status (Q4 2025)	H1 2025 Selling Price (per kWh)
Household & Small Stores	Frozen (Fuel Cost Component)	155.5 Korean won
Industrial (Large Business)	Raised 10.2% (Oct 2024)	182.7 Korean won

Growing demand for stable, affordable energy supply

The social expectation is simple: stable power supply at a low cost. This demand is accelerating due to the rapid electrification of transport and buildings, plus the explosive growth in power consumption from high-tech sectors like the semiconductor industry and new data centers. KEP's ability to maintain this stability is directly linked to its financial capacity to invest in infrastructure.

Here's the quick math: KEP's consolidated operating income surged 131% to 5,889 billion KRW in the first half of 2025, a dramatic turnaround that was partly driven by the industrial tariff adjustments. This improved profitability is crucial, as it provides the necessary capital to invest in grid modernization and generation capacity, which are essential for meeting the rising, stability-sensitive demand from the high-value manufacturing sector.

Safety concerns regarding aging nuclear power plant infrastructure

Nuclear power, operated by KEP's subsidiary Korea Hydro and Nuclear Power Co., is a cornerstone of the power mix, but its social license hinges on safety, especially as reactors age. Interestingly, public sentiment on nuclear safety has shifted significantly: a Gallup Korea poll in October 2025 showed that 64% of the public believe domestic nuclear power plants are safe, a massive jump from only 32% in July 2017. Furthermore, 40% now favor expanding nuclear power generation.

This increased public acceptance is allowing KEP to pursue life extensions for aging units, which is a clear action to ensure supply stability. The Nuclear Safety and Security Commission approved a 10-year life extension for the Kori-2 reactor in November 2025. This reactor, which began commercial operations in 1983, had been offline since its 40-year license expired in April 2023. This decision is a critical precedent, as KEP plans to seek life extensions for nine additional aging reactors to meet the country's growing power needs. South Korea currently operates 26 nuclear power reactors with a combined capacity of 25,609 MWe.

Public sentiment supports transition to cleaner energy sources

There is a clear, dual social mandate: keep power cheap and transition to cleaner energy. This is a difficult balancing act for KEP, as renewable energy generation costs are often higher than those for coal or nuclear in the short term. As of 2025, approximately 20% of South Korea's electricity is generated from renewable sources, a notable increase from 15% in 2024.

The government's commitment, driven by social and global pressure, is clear, with a target to reach a 40% renewable share by 2030 or 2035. Business leaders are even more aggressive, with 92% supporting a coal phase-out within a decade. Still, KEP faces local social resistance, as public opposition to new renewable infrastructure developments, such as wind farms or transmission lines, remains a significant barrier to project execution.

• Current Renewable Share (2025): 20% of electricity generation.
• Government Target: 40% renewable share by 2030/2035.
• Business Support for Coal Phase-out: 92% of executives support phase-out within a decade.

Korea Electric Power Corporation (KEP) - PESTLE Analysis: Technological factors

Mandatory rollout of Advanced Metering Infrastructure (AMI) for smart grids

You can't modernize a grid without knowing exactly where the power is going, so the mandatory rollout of Advanced Metering Infrastructure (AMI) is a foundational technological push for Korea Electric Power Corporation (KEP). AMI, or smart meters, moves the system from a one-way flow of electricity to a two-way flow of both power and data, which is essential for a truly smart grid (intelligent electric transmission system).

KEP's technological strategy is now embedded within a larger, long-term infrastructure commitment. In May 2025, KEP announced a plan to invest 72.8 trillion won (approximately $53.5 billion) through 2038 to expand the national power grid. This represents a massive 28.8% increase from the previous projection, driven largely by the need to handle intermittent renewable energy and the soaring demand from new data centers and AI. This huge investment is the engine for the 'intelligent development of power infrastructure' that KEP is targeting, enabling real-time control of supply and demand.

The goal here is simple: increase system reliability and offer customized services. Without the data from AMI, none of the smart grid benefits-like dynamic pricing or faster outage detection-are possible. The challenge, though, is ensuring the rollout is defintely on schedule and the massive investment is spent efficiently.

Need for large-scale Energy Storage Systems (ESS) to integrate renewables

The biggest technological challenge for KEP is integrating renewable energy, and the only real solution is large-scale Energy Storage Systems (ESS). Renewables like solar and wind are intermittent, meaning they produce power when the sun shines or the wind blows, not necessarily when customers need it. ESS acts as a giant battery, smoothing out these fluctuations and stabilizing the grid.

KEP already completed Asia's largest battery ESS project for grid stabilization in late 2024, boasting a power output of 978 MW and a storage capacity of 889 MWh. This project came with a price tag of around KRW 830 billion (about $632 million). Building on this, the national government is pushing a significant expansion starting in 2025 to ease grid strain, with a plan to deploy 540 MW of new ESS facilities through a multi-billion-won initiative.

The national target is ambitious, aiming to construct 3.7 GW of ESS facilities between 2025 and 2030, averaging 0.6 GW of new capacity annually. This is a clear market signal for KEP and its subsidiaries to accelerate investment in this area.

ESS Metric	Value/Target (2025 Context)	Significance for KEP
National ESS Construction Target (2025-2030)	Average of 0.6 GW annually	Mandates sustained, high-volume ESS procurement and deployment.
Major Government ESS Bidding (May 2025)	540 MW (500 MW mainland, 40 MW Jeju)	Indicates immediate, large-scale project pipeline for KEP and its partners.
KEP's Largest Completed ESS Project (2024)	978 MW / 889 MWh (Cost: ~$632 million)	Provides a proven, utility-scale model and experience base for future 2025-2030 projects.

Investment in next-generation nuclear reactor technology (e.g., Small Modular Reactors)

Next-generation nuclear technology, particularly Small Modular Reactors (SMRs), is a critical technological factor for KEP, offering a carbon-free, dispatchable power source to complement renewables. KEP is a central player in the domestic development of the innovative SMR (i-SMR) through its subsidiary, KEPCO Engineering and Construction (KEPCO E&C), in a government-led consortium.

The i-SMR project is currently in its crucial Phase 2 (2023-2028), with the Basic Design phase actively underway from 2025 to 2027. The long-term goal for the consortium is to secure standard-design approval by 2028 and bring demonstration units online by 2035.

Still, the path is not without financial risk. The government's public-private program for a different SMR type, the Sodium-cooled Fast Reactor (SFR), saw a major setback in its 2025 funding. The National Assembly cut the program's 2025 budget by a dramatic 90%, reducing the initial planned funding of 7 billion won (approx. $5.15 million) to just 700 million won. This budget cut has delayed the project's start, which is a clear warning sign about the political volatility of long-term R&D funding.

Cybersecurity risk management for critical national infrastructure

As KEP digitizes its grid with AMI and smart substations, the attack surface-the total area where a cyberattack could occur-widens considerably. Managing cybersecurity risk for this critical national infrastructure is no longer just an IT issue; it's a national security and operational technology (OT) imperative.

The financial stakes are astronomical. Globally, the cost of cybercrime is projected to reach US$10.5 trillion annually by 2025. In South Korea, enterprise security spending is expected to reach US$2 billion in 2025, reflecting the heightened threat landscape.

The government is responding with a sweeping cybersecurity plan, which includes large-scale inspections of about 1,600 key IT systems across public infrastructure in 2025. For KEP, this means a rigorous focus on:

• Securing Operational Technology (OT) systems, like those controlling power plants and substations.
• Protecting the vast amounts of real-time data flowing from the new AMI smart meters.
• Ensuring the supply chain for new digital grid components is free of vulnerabilities.

The new regulatory environment proposes direct CEO accountability for major breaches, which changes the risk calculation from a technical problem to a boardroom priority. You need to view cybersecurity as a core operational expense, not just a compliance cost.

Next Step: KEP's Chief Information Security Officer (CISO): Present a detailed 2026 budget proposal to the board by the end of Q4 2025, specifically quantifying the investment needed to secure the new AMI and ESS OT infrastructure against the $10.5 trillion global cybercrime threat.

Korea Electric Power Corporation (KEP) - PESTLE Analysis: Legal factors

The Electricity Business Act governs KEP's near-monopoly status

The legal structure of the South Korean electricity market, rooted in the Electricity Business Act, is the single most important factor for Korea Electric Power Corporation (KEP). KEP is the sole entity legally responsible for electricity transmission and distribution across the entire country. While the power generation sector was technically opened to competition in 2001, KEP's generation subsidiaries still produce the majority of the nation's power, reinforcing a near-monopoly on the final sale to consumers.

This legal status is a double-edged sword. It provides KEP with an essential, 'too big to fail' government backing, but it also strips the company of commercial autonomy, particularly on pricing. Because KEP is a state-owned utility, it must consult with the government to adjust electricity rates, a process that has historically kept prices artificially low, leading to massive financial strain. For instance, KEP logged a record-high operating loss of 32.6 trillion won in 2022.

A significant, market-opening legal change was enacted in March 2025, allowing large-scale electric consumers to bypass KEP and purchase power directly from generators via Power Purchase Agreements (PPAs). This is the first real crack in the distribution monopoly.

Strict regulatory oversight of nuclear power plant safety and operations

Nuclear power is a core part of KEP's strategy, but it operates under the stringent legal oversight of the Nuclear Safety and Security Commission (NSSC), which acts as the final arbiter of reactor safety. The NSSC's regulatory actions directly impact KEP's operational capacity and long-term asset value.

In January 2025, the NSSC announced a plan to fully expand the regular inspection system to all nuclear power plants, moving beyond the pilot-testing at Shin-Wolsong Unit 2. This shift to more in-depth, operational inspections aims to improve safety but will defintely add complexity and potential downtime to KEP's maintenance schedules.

A major legal and operational risk in 2025 centers on life-extension applications for aging reactors. The NSSC is expected to rule on the continued operation of Kori Units 3 and 4, which applied for extensions in 2022, with seven other reactors also awaiting review.

Government sets the legal framework for Renewable Portfolio Standard (RPS)

The government legally mandates the transition to clean energy through the Renewable Portfolio Standard (RPS), which applies to KEP's generation companies with capacity over 500 MW. The RPS requires a minimum percentage of total power generation to come from renewable sources.

The mandatory RPS quota for the 2025 fiscal year is set at 20.5%. This is a substantial increase from the 2024 target of 17% and is part of a legislative push to reach a 25% overall renewable energy target.

To be fair, KEP's subsidiaries have historically met this obligation by purchasing Renewable Energy Certificates (RECs) rather than directly building new capacity. However, a master plan launched in May 2024 by the Ministry of Trade, Industry and Energy (MOTIE) aims to reform the RPS system to reduce this reliance on RECs and promote direct investment through a government-led bidding system.

Environmental regulations mandate coal power plant retirement schedules

The most immediate legal pressure on KEP's thermal power generation comes from new environmental regulations and international commitments. In November 2025, South Korea formally joined the Powering Past Coal Alliance (PPCA) at COP30, legally committing to a phase-out of unabated coal power.

This commitment translates into a clear, albeit long-term, retirement schedule for KEP's coal fleet.

• 40 of the country's 61 existing coal-fired power plants are already scheduled to be phased out by 2040.
• The retirement schedule for the remaining 21 plants will be finalized in a specific plan due in 2026, based on economic and environmental feasibility.

Here's the quick math: KEP must prepare for the decommissioning of two-thirds of its coal assets over the next 15 years, requiring massive capital expenditure for new gas and renewable capacity to replace the lost generation.

Legal/Regulatory Mandate	Applicable KEP Business Segment	Key 2025 Requirement/Impact
Electricity Business Act (Monopoly)	Transmission & Distribution	Large consumers permitted direct power purchase (PPA) starting March 2025, eroding the sales monopoly.
Renewable Portfolio Standard (RPS)	Generation Subsidiaries	Mandatory renewable energy quota for 2025 is 20.5% of total generation.
NSSC Safety Regulations	Nuclear Power Operations	Full expansion of regular, in-operation inspection system to all nuclear plants announced in January 2025.
PPCA Commitment/Coal Phase-out	Thermal Generation	40 coal plants scheduled for phase-out by 2040, with a plan for the remaining 21 due in 2026.

Korea Electric Power Corporation (KEP) - PESTLE Analysis: Environmental factors

South Korea's 2050 Carbon Neutrality goal mandates reduced coal usage

The biggest environmental headwind for Korea Electric Power Corporation (KEP) is the legally binding national commitment to achieve carbon neutrality by 2050. This isn't a suggestion; it's a mandate that forces a complete overhaul of the generation mix, which historically relied heavily on coal. The government's Tenth Electricity Plan, for example, aims to drop coal's share of the energy mix to just 21.2% by 2030, a massive reduction from the 41.9% share it held in 2018. The plan involves shutting down 20 coal-fired power plants and converting another 26 to run on liquefied natural gas (LNG), a transitional fuel. This means KEP must manage the accelerated retirement and conversion of significant, still-functional assets, which creates a huge stranded asset risk on the balance sheet.

Pressure to meet ambitious renewable energy generation targets

KEP is under intense pressure to integrate non-dispatchable power sources like solar and wind, even as the government prioritizes nuclear for base load. The national goal is to increase the renewable energy share to 21.6% by 2030. For KEP, this translates directly into the cost of complying with the Renewable Portfolio Standard (RPS), which mandates a minimum amount of renewable energy generation. In 2025, KEP's consolidated RPS compliance costs stood at approximately KRW 2.876 trillion. That's a massive, recurring operational expense. To be fair, KEP's own internal goal is a 20% renewable share by 2030, but the financial burden of integrating this capacity is what keeps me up at night.

Here's the quick math on the generation mix shift:

Generation Source	Share in 2021	Target Share by 2030 (Tenth Plan)
Coal	~34.3%	21.2%
Nuclear	27.4%	32.8%
Renewable Energy	~6.0%	21.6%

Significant capital expenditure required for grid modernization to handle intermittent power

The biggest near-term risk is that the physical grid infrastructure simply can't handle the influx of intermittent renewable power. You can build all the solar farms you want, but if the grid can't move the power, you get congestion and wasted energy. KEP's strategic CapEx (Capital Expenditure) for 2023-2025 is projected at USD 11.14 billion, a significant portion of which must be channeled into grid modernization. In 2024 alone, KEP invested over KRW 2 trillion in upgrading its transmission and distribution infrastructure.

Still, the execution is lagging badly. As of October 2025, more than 55% of KEP's transmission and substation construction projects are either delayed or expected to face delays. This is a critical bottleneck for the entire national energy transition. The delays stem from:

• Lack of public acceptance for new transmission lines.
• Prolonged permitting and environmental impact assessment procedures.
• Difficulties in securing sites, like the East Coast-Capital Region transmission line project, which is now delayed until at least December 2027.

Need for carbon capture and storage (CCS) technology investment

Since KEP cannot immediately retire all its coal and LNG plants, Carbon Capture and Storage (CCS) technology is a necessary bridge. The national plan relies on CCS to cut 11.2 million tonnes (mn t) of CO2 equivalent by 2030. KEP is actively involved in this research and development, having invested KRW 100 billion in CCS pilot projects in 2024. This is a high-risk, high-reward technology bet. Success means KEP can continue to operate its existing thermal fleet for longer, generating cash flow while meeting emission targets. Failure means those assets become liabilities much faster than anticipated.

What this estimate hides is the political will-the government could choose to socialize the debt instead of raising tariffs, but that just shifts the financial burden. Still, the underlying operational deficit remains. Your next step is clear.

Action: Strategy Team: Model KEP's valuation based on a 30% tariff increase scenario versus a 50% increase scenario by the end of next week.