[Featured Stock] Korea Electric Power Corporation Rises on Financial Structure Improvement and Share Buyback Prospects

The stock price of Korea Electric Power Corporation (KEPCO) is on the rise. Improvements in financial structure and expectations of share buybacks appear to be influencing the stock price.

As of 10:55 a.m. on the 19th, KEPCO is trading at 22,750 KRW, up 7.82% from the previous day. During the session, it rose to 22,950 KRW, marking a 52-week high.

Kim Dong-chul, President of Korea Electric Power Corporation, is delivering the New Year's address at the 2024 opening ceremony held on the 2nd of last month at the KEPCO headquarters in Naju, Jeollanam-do.
[Photo by Yonhap News]

According to industry sources, Kim Dong-cheol, CEO of KEPCO, is considering a share buyback. This seems to be in line with the government's 'Corporate Value-Up Program.' There are also forecasts that Kim's share buyback amount will reach the maximum limit of around 30 million KRW.

On the same day, Hwang Seong-hyun, a researcher at Eugene Investment & Securities, explained, "The power generation mix is expected to improve due to one new nuclear power plant in the second half of last year. Although dividends will be difficult, considering the reduction in borrowings and improvement in financial structure, a stock price rebound is possible."

He added, "The expansion of market participants due to the third-party power purchase agreement (PPA) will lead to partial market liberalization in the long term. We expect a liberalized electricity market like those in the United States and Japan. The U.S. and Japan have cost-reflective tariff systems, which lead to capital increases and dividend expansions."