Kim Dong-cheol, President of Korea Electric Power Corporation (KEPCO), marked the New Year of 2026, the Year of the Fire Horse (Byeong-o, 丙午年), by expressing a strong commitment to overcome the company’s financial crisis and to lead the global energy market with the drive of a “red horse galloping a thousand li.” In his 2026 New Year’s address, Kim presented “five core strategies” to make 2026 a starting point for innovation, building on last year’s achievements.

Ninth consecutive quarter of profit, Grade A in management evaluation… ‘Business normalization’ on full track

Despite a rapidly changing business environment last year, KEPCO recorded notable results. It achieved nine consecutive quarters of profit and, for the first time in nine years, obtained a Grade A in the public institution management evaluation, demonstrating that its continuous efforts toward financial normalization are bearing fruit.

These achievements were immediately reflected in the market. The share price, which had lingered in the KRW 20,000 range, recently rose to around KRW 50,000, interpreted as a signal reaffirming market confidence in KEPCO’s future value and potential. In addition, winning the 1,500 MW mega-scale wind power project in Saudi Arabia and driving the enactment of the Special Act on Power Grid Expansion are being assessed as having laid a solid foundation for mid- to long-term growth.

Five core strategies for 2026

Under its new vision established in 2025, “Global Energy & Solution Leader,” KEPCO plans to take the lead in enhancing public benefit and creating national value by 2035, targeting KRW 127 trillion in revenue, KRW 199 trillion in total assets, and KRW 20 trillion in overseas and growth-business revenue.

Within this broad direction, President Kim stated that, in response to the climate crisis, the evolving trend of convergence between the energy industry and AI, and the restructuring of the domestic power ecosystem such as the launch of distributed energy special zones, KEPCO will mobilize company-wide capabilities to implement five key tasks in 2026.

① Expansion of power infrastructure, including early construction of the Energy Expressway=To ensure stable power supply, which is essential to the competitiveness of high-tech industries, KEPCO will innovate power grid construction systems and processes. In particular, it plans to focus all efforts on the early construction of the “West Coast Energy Expressway,” which will serve as the main artery for national economic growth. To resolve the backlog of renewable energy waiting for grid connection, KEPCO will expand grid connection infrastructure and broaden planned, “local production–local consumption (지산지소, 地産地消)”-based sites that align power production and consumption.

② Innovation of AI-based management systems=KEPCO will accelerate an “AI grand transformation” to maximize operational efficiency by introducing AI technologies across all sectors, including generation, transmission and distribution, and sales. By using AI to optimize power grid locations, the company plans to build a foundation for accommodating more renewable energy, and to generate new added value by combining power data with public data to provide customized e-consulting for customers. Through this, KEPCO aims to achieve management innovation across the power industry via AI and enhance public convenience.

③ Advancement of the safety management system=KEPCO will expand its “safety-first management system” across the entire power industry and emerge as Korea’s leading company in safety management. It will establish field-centered preventive measures, significantly strengthen manpower and budget investment to expand safety management infrastructure, and provide tailored support to encourage autonomous safety management by partner companies.

④ Creation of new growth engines based on technology=With government support, KEPCO will successfully launch “KEPCO Technology Holdings” and play a priming role in nurturing energy unicorn companies. By transferring core technologies and investing seed capital, it will invigorate the industrial ecosystem, establishing an innovation-driven growth system that extends from expansion of the domestic market to overseas advancement. KEPCO plans to restructure its overseas business portfolio around eco-friendly, high value-added projects, and to expand new project orders in nuclear power, renewables, power grids, and ESS. In particular, the company intends to focus its capabilities on emerging as a “global energy tech company,” centering on the energy solution technologies showcased at CES 2026 and the five core technologies that received innovation awards.

⑤ Early restoration of financial soundness=KEPCO will faithfully implement strong self-help measures to eliminate its accumulated deficit of KRW 39 trillion (separate basis) and comply with the legal bond issuance limit of twice its equity by the end of 2027. The company plans to maximize efficiency across its entire business, including power market system improvements and operations in sales, transmission and distribution, and ICT, thereby achieving additional cost reductions and revenue generation. In parallel, it will closely cooperate with the government to pursue the reform of the tariff system to align with the renewable energy era, including improvements to time-of-use pricing schemes.

Trust built through communication to drive KEPCO’s great leap forward

President Kim stated, “The reason our country maintains the world’s highest power quality is the result of the dedicated efforts of some 200,000 KEPCO employees, who have devoted themselves day and night, on holidays, and even during traditional holidays and vacations.” He added that KEPCO will “continue to lead Korea’s energy transition through stable power supply, expansion of the national power grid, revitalization of new energy industries, and the expansion of renewable energy and distributed power sources.”

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