About Korea Electric Power

Korea Electric Power Corporation, an integrated electric utility company, engages in the transmission and distribution of electricity in the Republic of Korea (Korea). The company, through its six wholly-owned generation subsidiaries, generates the substantial majority of electricity produced in Korea. As of December 31, 2022, the company and its generation subsidiaries owned approximately 59.9% of the total electricity generation capacity in Korea (excluding plants generating electricity primarily for private or emergency use). In 2022, the company sold to its customers 547,933 gigawatt-hours of electricity. The company purchases electricity principally from its generation subsidiaries and, to a lesser extent, from independent power producers. Of the 550,832 gigawatt-hours of electricity the company purchased in 2022, 31.3% was generated by KHNP, the company’s wholly-owned nuclear and hydroelectric power generation subsidiary, 39.1% was generated by its wholly-owned five non-nuclear generation subsidiaries and 29.6% was generated by independent power producers that trade electricity to it through the cost-based pool system of power trading (excluding independent power producers that supply electricity under power purchase agreements with it). The company’s five non-nuclear generation subsidiaries are Korea South-East Power Co., Ltd. (KOSEP), Korea Midland Power Co., Ltd. (KOMIPO), Korea Western Power Co., Ltd. (KOWEPO), Korea Southern Power Co., Ltd. (KOSPO) and Korea East-West Power Co., Ltd. (EWP), each of which is wholly owned by it and is incorporated in Korea. The company derives substantially all of its revenues and profit from Korea, and substantially all of its assets are located in Korea. Strategy The company established its 2035 medium- to long-term strategy to leap forward as a global integrated energy platform company that leads changes in the industrial ecosystem. The company plans to achieve it by pursuing the following eight strategic initiatives. Through this, the company aims to provide better value to various stakeholders, including but not limited to its country, customers and society. The key elements of the company’s strategy are to establish power grid system which could further contribute to achieving carbon neutrality; expand clean energy and promote strategic demand response; lead future energy market and improve sales competitiveness; lead platform-based new businesses; transform overseas business portfolio to focus on eco-friendly projects and core competencies; secure future technologies and build a research and development (R&D) ecosystem; promote digitalization in overall supply chain; and establish a highly reliable and highly efficient management system with respect to human beings and environment. Power Purchased from Independent Power Producers under Power Purchase Agreements In 2022, the company purchased an aggregate of 20,586 gigawatt hours of electricity generated by independent power producers under existing power purchase agreements. These independent power producers had an aggregate generation capacity of 15,181 megawatts as of December 31, 2022. Power Generation As of December 31, 2022, the company and its generation subsidiaries had a total of 770 generation units, including nuclear, thermal, hydroelectric and internal combustion units, representing total installed generation capacity of 82,723 megawatts. The company’s thermal units produce electricity using steam turbine generators fired by coal, oil and liquefied natural gas (LNG). The company’s internal combustion units use oil or diesel-fired gas turbines and its combined-cycle units are primarily LNG-fired. The company also purchases power from several generation plants not owned by its generation subsidiaries. The company’s generation subsidiaries have constructed and operated thermal and internal combustion units in order to help meet power demand. Subject to market conditions, the company’s generation subsidiaries plan to continue to add additional thermal (other than coal-fired) and internal combustion units. Korea Hydro & Nuclear Power Co., Ltd. (KHNP) At KHNP’s five power plant complexes, Kori, Saeul, Wolsong, Hanbit and Hanul (each complex located in Busan, Ulsan, Gyeongju, Yonggwang and Ulchin, respectively), it operates 25 nuclear generation units, among which Kori #2 has been shut down since April 8, 2023. KHNP submitted a safety evaluation report to the NSSC in April 2022 to seek approval for an extension of the life of Kori #2. KHNP also operates 53 hydroelectric generation units, including 16 pumped storage hydro generation units as well as 55 solar generation units and one wind generation unit as of December 31, 2022. KHNP commenced commercial operation of Saeul #1, with a 1,400 megawatt capacity, in December 2016, and Saeul #2 began commercial operations on August 2019. In December 2022, the commercial operation of Shin-Hanul #1 has begun. KHNP is building three additional nuclear generation units, two at Saeul and one at Shin-Hanul complexes, each with a 1,400 megawatts capacity. KHNP expects to complete these units between 2023 and 2025. In April 2022, KHNP submitted a safety evaluation report to the NSSC to seek approval for an extension of the life of Kori #2, which has been shut down since April 8, 2023. Power Plant Remodeling and Recommissioning The company’s generation subsidiaries supplement power generation capacity through remodeling or recommissioning of thermal units. Recommissioning includes installation of anti-pollution devices, modification of control systems and overall rehabilitation of existing equipment. Transmission and Distribution The company transmits and distributes substantially all of the electricity in Korea. As of December 31, 2022, the company’s transmission system consisted of 35,451 circuit kilometers of lines of 765 kilovolts and others including high-voltage direct lines, and it had 895 substations with aggregate installed transformer capacity of 347,426 megavolt-amperes. As of December 31, 2022, the company’s distribution system consisted of 139,265 megavolt-amperes of transformer capacity and 10,084,051 units of support with a total line length of 535,241 circuit kilometers. The company makes substantial investments in its transmission and distribution systems to minimize power interruptions and improve efficiency. The company’s projects principally focus on increasing capabilities of the existing power networks and reducing its transmission and distribution loss, which was 3.53% of its gross generation in 2022. Some of the facilities the company owns and uses in its distribution system use rights of way and other concessions granted by municipal and local authorities in areas where its facilities are located. Suppliers In 2022, for use in electricity generation the company purchased approximately 7.3 million tons of LNG from Korea Gas Corporation, a Government-controlled entity in which it owns a 20.47% equity interest (excluding treasury shares). Research and Development As a result of its research, the company and six generation subsidiaries had 7,334 registered patents and 8,651 patent applications outstanding in Korea and abroad as of December 31, 2022. Regulation The company is under the supervision of the Ministry of Trade, Industry and Energy, which has principal supervisory responsibility (in consultation with other Government agencies, such as the Ministry of Strategy and Finance, as applicable) over the company with respect to the appointments of its directors and its other senior management, as well as approval of electricity tariff rate adjustments, among others. Environmental Programs The Environmental Policy Basic Act, the Air Quality Preservation Act, the Water Quality Preservation Act, the Marine Pollution Prevention Act and the Waste Management Act are the major laws of Korea that regulate atmospheric emissions, waste water, noise and other emissions from the company’s facilities, including power generators and transmission and distribution units. The company’s existing facilities are in material compliance with the requirements of these environmental laws and international agreements, such as the United Nations Framework Convention on Climate Change, the Montreal Protocol on Substances that Deplete the Ozone Layer, the Stockholm Convention on Persistent Organic Pollutants and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal. History Korea Electric Power Corporation was founded in 1898. The company was incorporated in 1981 in accordance with the Korea Electric Power Corporation Act.