KEPCO Recovers 90 Billion Won in Unpaid Dividends from China Wind Project Thanks to Government and Embassy Cooperation

Unpaid Dividends Accumulated Due to Delayed Subsidies Since 2016
Final Agreement Reached with Joint Venture Partner Datang Group for Full Payment in October

Korea Electric Power Corporation operates wind power plants totaling 420MW, including the Inner Mongolia Saehanpae Wind Power Plant and the Gamsuk Wind Power Plant. View of the Inner Mongolia wind power complex

Korea Electric Power Corporation (KEPCO) is set to recover nearly all of the 90 billion won in accumulated unpaid dividends from its wind power joint venture in China. With diplomatic support from the Ministry of Trade, Industry and Energy and the Korean Embassy in China, the remaining dividends are expected to be fully paid out by October 2025.

According to KEPCO on September 25, the company received an initial dividend payment of 14.5 billion won earlier this month. KEPCO has also reached an agreement with its Chinese joint venture partner, Datang Group, to receive the remaining 75.3 billion won in full by October. As a result, the total of 89.8 billion won in outstanding dividends is expected to be recovered within the year. This agreement allows KEPCO to resolve longstanding concerns about unstable cash flow and business stability.

KEPCO launched a 1,024MW wind power project in 2005 in partnership with the Chinese state-owned Datang Group, operating in the Inner Mongolia, Liaoning, and Gansu regions. KEPCO invested a total of 230 billion won and holds a 40% stake, operating the business stably based on renewable energy subsidies from the Chinese government. However, as renewable energy installations surged in China after 2016, the subsidy pool became insufficient, which led to deteriorating cash flow for the joint venture. As a result, KEPCO faced difficulties in receiving regular dividends, and by the end of last year, the amount of unpaid dividends had reached 90 billion won.

As risks associated with overseas operations became more pronounced, KEPCO sought solutions through cooperation with the Ministry of Trade, Industry and Energy and the Korean Embassy in China, moving beyond a solo response. The turning point came at the APEC Korea-China Energy Ministers’ Meeting held in Busan in August. At that time, Minister Kim Jungkwan of the Ministry of Trade, Industry and Energy directly requested a resolution from the Director General of China’s National Energy Administration, and the issue was subsequently discussed in high-level meetings between the two countries.

Following this, KEPCO President Kim Dongcheol visited China, held a shareholders’ meeting with senior officials from Datang New Energy, and finalized the dividend payment schedule. With the goal of recovering the funds within the year now in sight, the long-standing issue that had raised concerns about prolonged delays is expected to be resolved.

A KEPCO official stated, "We were able to resolve this long-standing issue thanks to close cooperation with the government," adding, "We will continue to expand investments in eco-friendly energy in major overseas markets and contribute to the global energy transition."