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    SEC Form 6-K filed by Korea Electric Power Corporation

    3/10/26 10:46:15 AM ET
    $KEP
    Electric Utilities: Central
    Utilities
    Get the next $KEP alert in real time by email
    6-K 1 d59934d6k.htm FORM 6-K Form 6-K
     
     

    UNITED STATES

    SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C. 20549

     

     

    FORM 6-K

     

     

    REPORT OF FOREIGN PRIVATE ISSUER

    Pursuant to Rule 13a-16 or 15d-16

    under the Securities Exchange Act of 1934

    For the Month of March 2026

    Commission File Number 001-13372

     

     

    KOREA ELECTRIC POWER CORPORATION

    (Translation of registrant’s name into English)

     

     

    55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

    (Address of principal executive offices)

     

     

    Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

    Form 20-F ☒   Form 40-F ☐

     

     
     


    Korea Electric Power Corporation (“KEPCO”) hereby calls the annual ordinary general meeting of shareholders (“AGM”) and seeks the attendance of its shareholders.

    The following is an English translation of the notice given to the shareholders in connection with the AGM:

    To: Shareholders

    From: Kim, Dong-Cheol, President & CEO of KEPCO

    We hereby call the fiscal year 2025 AGM pursuant to Article 18 of the Articles of Incorporation of KEPCO as follows and seek your attendance. Pursuant to Article 542-4 of the Commercial Act, this notice shall be in lieu of notices to be given to the shareholders.

    1. Date / Time: March 25, 2026 / 11:00 a.m. (Seoul Time)

    2. Location: 55 Jeollyeok-ro, Naju-si, Jeollanam-do, 58322, Korea

    KEPCO Headquarters

    3. Items to be Reported:

    1) Audit Report

    2) Management report on KEPCO’s operation

    3) Operation report on internal accounting control system

    4. Agendas for Shareholder Approval:

    1) Approval of financial statements for the fiscal year 2025

    2) Approval of the ceiling amount of remuneration for directors in 2026

    3) Approval of amendments to the Articles of Incorporation of KEPCO

     Details on the proposed agenda for the AGM are attached.

    * KEPCO will disclose its audit report on or around March 10, 2026 on the SEC and its webpage (https://www.kepco.co.kr). Business report in Korean will be disclosed on March 17, 2026, through Data Analysis, Retrieval and Transfer System (“DART”) of the Financial Supervisory Service. Business report in Korean shall be changed after the AGM or revised to correct any miswriting. KEPCO will disclose the revised report on DART if there is any amendment.


    SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

     

    By:   /s/ Joo, Hwa-Sik
    Name:   Joo, Hwa-Sik
    Title:   Vice President

    Date: March 10, 2026


    Agenda 1. Approval of Financial Statements for the Fiscal Year 2025

    KEPCO seeks to obtain approval for its consolidated financial statements, separate financial statements and accompanying documents for the fiscal year 2025, pursuant to Article 449 of the Commercial Act, Article 43 of the Act on the Management of Public Institutions and Article 50 of the Articles of Incorporation of KEPCO. Tables below are part of such financial statements and please refer to a separate Form 6-K filed on or around March 10, 2026 that contains the audit report for the fiscal year 2025 for more details.

    Disclaimer: The financial statements for the fiscal year 2025 is in accordance with the International Financial Reporting Standard adopted in Korea (K-IFRS) and are subject to shareholder’s approval.


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of financial position

    As of December 31, 2025 and 2024

     

    In millions of won           2025      2024  

    Assets

            

    Current assets

            

    Cash and cash equivalents

       W        2,240,811        2,382,979  

    Current financial assets, net

            4,250,164        3,494,717  

    Trade and other receivables, net

            12,618,480        12,216,216  

    Inventories, net

            10,152,724        9,769,236  

    Current income tax assets

            91,579        78,495  

    Current non-financial assets

            1,361,630        1,267,914  

    Assets held-for-sale

            —         45,648  
         

     

     

        

     

     

     

    Total current assets

            30,715,388        29,255,205  
         

     

     

        

     

     

     

    Non-current assets

            

    Non-current financial assets, net

            4,565,561        4,945,990  

    Non-current trade and other receivables, net

            3,124,185        3,157,409  

    Property, plant and equipment, net

            187,751,538        182,982,763  

    Investment properties, net

            238,772        228,984  

    Goodwill, net

            99,303        99,179  

    Intangible assets other than goodwill, net

            1,001,295        1,046,918  

    Investments in associates

            6,851,456        6,704,754  

    Investments in joint ventures

            6,512,332        4,581,340  

    Defined benefit assets, net

            104,344        40,425  

    Deferred tax assets

            12,950,032        13,436,624  

    Non-current non-financial assets

            1,013,251        328,204  
         

     

     

        

     

     

     

    Total non-current assets

            224,212,069        217,552,590  
         

     

     

        

     

     

     

    Total assets

       W        254,927,457        246,807,795  
         

     

     

        

     

     

     

    (Continued)


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of financial position, Continued

    As of December 31, 2025 and 2024

     

    In millions of won           2025      2024  

    Liabilities

            

    Current liabilities

            

    Trade and other payables

       W        8,621,671        9,411,315  

    Current financial liabilities

            45,939,089        44,465,866  

    Current income tax liabilities

            1,571,143        970,496  

    Current non-financial liabilities

            6,805,171        6,327,141  

    Current provisions

            4,170,243        2,793,971  
         

     

     

        

     

     

     

    Total current liabilities

            67,107,317        63,968,789  
         

     

     

        

     

     

     

    Non-current liabilities

            

    Non-current trade and other payables

            4,028,808        4,609,241  

    Non-current financial liabilities

            83,995,702        88,352,359  

    Non-current non-financial liabilities

            13,726,159        13,281,520  

    Employee benefits liabilities, net

            1,381,852        1,451,547  

    Deferred tax liabilities

            6,500,975        5,944,472  

    Non-current provisions

            28,863,700        27,837,034  
         

     

     

        

     

     

     

    Total non-current liabilities

            138,497,196        141,476,173  
         

     

     

        

     

     

     

    Total liabilities

       W        205,604,513        205,444,962  
         

     

     

        

     

     

     

    Equity

            

    Contributed capital

            

    Share capital

       W        3,209,820        3,209,820  

    Share premium

            843,758        843,758  
         

     

     

        

     

     

     
                4,053,578      4,053,578  
         

     

     

        

     

     

     

    Retained earnings

            

    Legal reserves

            1,604,910        1,604,910  

    Voluntary reserves

            567,469        —   

    Unappropriated retained earnings

            26,328,205        18,523,337  
         

     

     

        

     

     

     
                28,500,584      20,128,247  
         

     

     

        

     

     

     

    Other components of equity

            

    Other capital surplus

            1,566,635        1,600,812  

    Accumulated other comprehensive income

            1,340,560        1,424,014  

    Other equity

            12,708,585        12,708,585  
         

     

     

        

     

     

     
                15,615,780      15,733,411  
         

     

     

        

     

     

     

    Equity attributable to owners of the controlling company

            48,169,942        39,915,236  

    Non-controlling interests

            1,153,002        1,447,597  
         

     

     

        

     

     

     

    Total equity

       W        49,322,944        41,362,833  
         

     

     

        

     

     

     

    Total liabilities and equity

       W        254,927,457        246,807,795  
         

     

     

        

     

     

     


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of comprehensive income

    For each of the years in the two-year period ended December 31, 2025

     

    In millions of won, except per share information           2025     2024  

    Sales

           

    Sale of goods

       W        95,167,797       91,018,712  

    Sales of services

            726,096       710,445  

    Sales of construction services

            673,693       849,108  

    Revenue related to transfer of assets from customers

            861,760       820,631  
         

     

     

       

     

     

     
            97,429,346       93,398,896  
         

     

     

       

     

     

     

    Cost of sales

           

    Cost of sales of goods

            (77,593,597 )      (80,221,013 ) 

    Cost of sales of services

            (671,334 )      (557,261 ) 

    Cost of sales of construction services

            (2,439,881 )      (1,185,886 ) 
         

     

     

       

     

     

     
            (80,704,812 )      (81,964,160 ) 
         

     

     

       

     

     

     

    Gross profit

            16,724,534       11,434,736  

    Selling and administrative expenses

            (3,233,977 )      (3,070,026 ) 
         

     

     

       

     

     

     

    Operating profit

            13,490,557       8,364,710  

    Other income

            425,303       477,354  

    Other expenses

            (243,387 )      (465,688 ) 

    Other gains, net

            338,973       84,884  

    Finance income

            2,038,143       3,448,177  

    Finance expenses

            (5,038,751 )      (7,535,228 ) 

    Profit (loss) related to associates, joint ventures and subsidiaries

           

    Share of profit of associates and joint ventures

            807,419       937,959  

    Gain on disposal of investments in associates and joint ventures

            3,880       186,066  

    Reversal of impairment loss on investments in associates and joint ventures

            —        10,527  

    Gain on disposal of investments in subsidiaries

            27       98  

    Share of loss of associates and joint ventures

            (206,743 )      (182,507 ) 

    Loss on disposal of investments in associates and joint ventures

            —        (650 ) 

    Loss on impairment of investments in associates and joint ventures

            —        (69,173 ) 

    Loss on disposal of investments in subsidiaries

            (28,491 )      —   
         

     

     

       

     

     

     
            576,092       882,320  
         

     

     

       

     

     

     

    Profit before income tax

            11,586,930       5,256,529  

    Income tax expense

            (2,920,274 )      (1,634,561 ) 
         

     

     

       

     

     

     

    Profit for the year

       W        8,666,656       3,621,968  

    (Continued)


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of comprehensive income, Continued

    For each of the years in the two-year period ended December 31, 2025

     

    In millions of won, except per share information           2025     2024  
         

     

     

       

     

     

     

    Other comprehensive income (loss), net of tax

           

    Items that will not be reclassified subsequently to profit or loss:

           

    Remeasurement of defined benefit plans

       W        (27,437 )      (296,135 ) 

    Share of other comprehensive loss of associates and joint ventures

            (5,944 )      (6,346 ) 

    Net change in fair value of financial assets at fair value through other comprehensive income

            143,886       100,759  

    Items that are or may be reclassified subsequently to profit or loss:

           

    Net change in the unrealized fair value of derivatives using cash flow hedge accounting

            34,663       11,870  

    Foreign currency translation of foreign operations

            (32,608 )      164,628  

    Share of other comprehensive income (loss) of associates and joint ventures

            (257,793 )      654,225  
         

     

     

       

     

     

     

    Other comprehensive income (loss) for the year

            (145,233 )      629,001  
         

     

     

       

     

     

     

    Total comprehensive income for the year

       W        8,521,423       4,250,969  
         

     

     

       

     

     

     

    Profit attributable to:

           

    Owners of the controlling company

       W        8,544,918       3,491,698  

    Non-controlling interests

            121,738       130,270  
         

     

     

       

     

     

     
       W        8,666,656       3,621,968  
         

     

     

       

     

     

     

    Total comprehensive income attributable to:

           

    Owners of the controlling company

       W        8,425,621       4,070,175  

    Non-controlling interests

            95,802       180,794  
         

     

     

       

     

     

     
       W        8,521,423       4,250,969  
         

     

     

       

     

     

     

    Earnings per share (in won)

           

    Basic and diluted earnings per share

       W        13,311       5,439  


    KKOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of changes in equity

    For each of the years in the two-year period ended December 31, 2025

     

    In millions of won           Equity attributable to owners of the controlling company              
                Contributed
    capital
         Retained
    earnings
        Other
    components
    of equity
        Subtotal     Non-
    controlling
    interests
        Total
    equity
     

    Balance as of January 1, 2024

       W        4,053,578        16,338,262       15,453,203       35,845,043       1,419,707       37,264,750  

    Total comprehensive income for the period

                    

    Profit for the period

            —         3,491,698       —        3,491,698       130,270       3,621,968  

    Items that will not be reclassified subsequently to profit or loss:

                    

    Remeasurement of defined benefit plans, net of tax

            —         (281,761 )      —        (281,761 )      (14,374 )      (296,135 ) 

    Share of other comprehensive loss of associates and joint ventures, net of tax

            —         (6,346 )      —        (6,346 )      —        (6,346 ) 

    Net change in fair value of financial assets at fair value through other comprehensive income, net of tax

            —         —        100,759       100,759       —        100,759  

    Items that may be reclassified subsequently to profit or loss:

                    

    Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

            —         —        11,976       11,976       (106 )      11,870  

    Foreign currency translation of foreign operations, net of tax

            —         —        99,624       99,624       65,004       164,628  

    Share of other comprehensive income of associates and joint ventures, net of tax

            —         —        654,225       654,225       —        654,225  

    Transactions with owners of the Group, recognized directly in equity

                    

    Dividends paid

            —         —        —        —        (126,900 )      (126,900 ) 

    Additional paid-in capital and others

            —         —        —        —        (1,819 )      (1,819 ) 

    Equity transaction within the consolidated entity

            —         —        18       18       (13,878 )      (13,860 ) 

    Changes in consolidation scope

            —         —        —        —        9       9  

    Dividends paid for hybrid bonds

            —         —        —        —        (10,316 )      (10,316 ) 

    Others

                    

    Transfer of revaluation reserve

            —         586,394       (586,394 )      —        —        —   
         

     

     

        

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Balance as of December 31, 2024

       W        4,053,578        20,128,247       15,733,411       39,915,236       1,447,597       41,362,833  
         

     

     

        

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    (Continued)


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of changes in equity, Continued

    For each of the years in the two-year period ended December 31, 2025

     

    In millions of won           Equity attributable to owners of the controlling company              
                Contributed
    capital
         Retained
    earnings
        Other
    components
    of equity
        Subtotal     Non-
    controlling
    interests
        Total
    equity
     

    Balance as of January 1, 2025

       W        4,053,578        20,128,247       15,733,411       39,915,236       1,447,597       41,362,833  

    Total comprehensive income (loss) for the period

                    

    Profit for the period

            —         8,544,918       —        8,544,918       121,738       8,666,656  

    Items that will not be reclassified subsequently to profit or loss:

                    

    Remeasurement of defined benefit plans, net of tax

            —         (29,899 )      —        (29,899 )      2,462       (27,437 ) 

    Share of other comprehensive income of associates and joint ventures, net of tax

            —         (5,944 )      —        (5,944 )      —        (5,944 ) 

    Net change in fair value of financial assets at fair value through other comprehensive income (loss), net of tax

            —         —        143,888       143,888       (2 )      143,886  

    Items that may be reclassified subsequently to profit or loss:

                    

    Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax

            —         —        35,483       35,483       (820 )      34,663  

    Foreign currency translation of foreign operations, net of tax

            —         —        (5,032 )      (5,032 )      (27,576 )      (32,608 ) 

    Share of other comprehensive loss of associates and joint ventures, net of tax

            —         —        (257,793 )      (257,793 )      —        (257,793 ) 

    Transactions with owners of the Group, recognized directly in equity

                    

    Dividends paid

            —         (136,738 )      —        (136,738 )      (76,443 )      (213,181 ) 

    Additional paid-in capital and others

            —         —        (855 )      (855 )      882       27  

    Equity transaction within the consolidated entity

            —         —        (33,322 )      (33,322 )      (82,564 )      (115,886 ) 

    Changes in consolidation scope

            —         —        —        —        (144 )      (144 ) 

    Dividends paid for hybrid bonds

            —         —        —        —        (2,128 )      (2,128 ) 

    Repayment of hybrid bond

            —         —        —        —        (230,000 )      (230,000 ) 
         

     

     

        

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     

    Balance as of December 31, 2025

       W        4,053,578        28,500,584       15,615,780       48,169,942       1,153,002       49,322,944  
         

     

     

        

     

     

       

     

     

       

     

     

       

     

     

       

     

     

     


    KOREA ELECTRIC POWER CORPORATION AND ITS SUBSIDIARIES

    Consolidated statements of cash flows

    For each of the years in the two-year period ended December 31, 2025

     

    In millions of won    2025     2024  

    Cash flows from operating activities

        

    Profit for the year

       W 8,666,656       3,621,968  
      

     

     

       

     

     

     

    Adjustments to reconcile profit for the period to net cash provided by operating activities:

        

    Income tax expenses

         2,920,274       1,634,561  

    Depreciation

         13,630,181       13,833,788  

    Amortization

         158,610       163,567  

    Retirement benefit expenses

         484,224       427,980  

    Bad debt expense

         83,001       60,309  

    Interest expense

         4,339,560       4,665,095  

    Loss on disposal of financial assets

         3,525       434  

    Loss on disposal of property, plant and equipment

         112,692       112,018  

    Loss on abandonment of property, plant and equipment

         122,368       195,697  

    Loss on impairment of property, plant and equipment

         14,262       11,240  

    Loss on impairment of intangible assets

         8,439       902  

    Loss on disposal of intangible assets

         13       111  

    Increase in provisions, net

         3,492,316       1,762,526  

    Loss (Gain) on foreign currency translation, net

         (407,106 )      2,366,830  

    Gain on valuation of financial assets at fair value through profit or loss

         (133,082 )      (83,408 ) 

    Loss on valuation of financial assets at fair value through profit or loss

         24,983       14,247  

    Gain on derivatives

         (52,685 )      (2,406,368 ) 

    Gain on valuation of investments in associates and joint ventures, net

         (600,675 )      (755,452 ) 

    Gain on disposal of financial assets

         (58,115 )      (45,493 ) 

    Reversal of impairment loss on intangible assets

         (42 )      —   

    Gain on disposal of property, plant and equipment

         (285,525 )      (85,990 ) 

    Gain on disposal of intangible assets

         (18 )      (41 ) 

    Gain on disposal of associates and joint ventures

         (3,880 )      (186,066 ) 

    Loss on disposal of associates and joint ventures

         —        650  

    Loss on impairment investments in associates and joint ventures

         —        69,173  

    Reversal of impairment loss on investments in associates and joint ventures

         —        (10,527 ) 

    Gain on disposal of subsidiaries

         (27 )      (98 ) 

    Loss on disposal of subsidiaries

         28,491       —   

    Interest income

         (440,386 )      (467,525 ) 

    Dividends income

         (26,137 )      (70,601 ) 

    Others, net

         (422,833 )      (76,125 ) 
      

     

     

       

     

     

     
         22,992,428       21,131,434  
      

     

     

       

     

     

     

    Changes in working capital:

        

    Trade receivables

         (436,841 )      2,702  

    Non-trade receivables

         76,882       (191,526 ) 

    Accrued income

         325,716       (189,995 ) 

    Other receivables

         97,299       101,042  

    Other current assets

         (713,475 )      (656,588 ) 

    Inventories

         (1,566,800 )      (1,412,713 ) 

    Other non-current assets

         (165,996 )      108,625  

    Trade payables

         (957,469 )      109,214  

    Non-trade payables

         (498,552 )      (97,540 ) 

    Accrued expenses

         (343,879 )      (508,199 ) 

    Other current liabilities

         642,339       (2,261,294 ) 

    Other non-current liabilities

         365,255       2,892,947  

    Investments in associates and joint ventures (dividends received)

         346,203       364,287  

    Provisions

         (1,840,454 )      (1,588,396 ) 

    Payments of employee benefit obligations

         (362,044 )      (208,248 ) 

    Plan assets

         (350,970 )      (254,763 ) 
      

     

     

       

     

     

     
       W (5,382,786 )      (3,790,445 ) 
      

     

     

       

     

     

     

    (Continued)


    In millions of won    2025     2024  

    Cash generated from operating activities

       W 26,276,298       20,962,957  

    Dividends received

         26,137       12,243  

    Interest paid

         (4,393,329 )      (4,697,442 ) 

    Interest received

         304,166       390,671  

    Income taxes paid

         (1,333,118 )      (792,313 ) 
      

     

     

       

     

     

     

    Net cash flows provided by operating activities

         20,880,154       15,876,116  
      

     

     

       

     

     

     

    Cash flows from investing activities

        

    Proceeds from disposals of investments in associates and joint ventures

         14,436       236,624  

    Acquisition of investments in associates and joint ventures

         (2,096,355 )      (451,813 ) 

    Proceeds from disposals of property, plant and equipment

         467,623       402,603  

    Acquisition of property, plant and equipment

         (15,834,139 )      (14,216,037 ) 

    Proceeds from disposals of intangible assets

         4,606       428  

    Acquisition of intangible assets

         (103,490 )      (91,851 ) 

    Proceeds from disposals of financial assets

         3,677,329       2,615,341  

    Acquisition of financial assets

         (4,341,542 )      (2,536,994 ) 

    Increase in loans

         (376,811 )      (172,849 ) 

    Collection of loans

         413,027       226,935  

    Increase in deposits

         (161,923 )      (154,503 ) 

    Decrease in deposits

         143,226       152,803  

    Proceeds from disposals of assets held-for-sale

         40,047       28,727  

    Receipt of government grants

         25,019       59,503  

    Net cash outflows from changes in consolidation scope

         (3,062 )      (2,740 ) 

    Other cash outflows from investing activities, net

         (313,444 )      (189,284 ) 
      

     

     

       

     

     

     

    Net cash flows used in investing activities

         (18,445,453 )      (14,093,107 ) 
      

     

     

       

     

     

     

    Cash flows from financing activities

        

    Proceeds (Repayment) of short-term borrowings, net

         948,196       (1,536,401 ) 

    Proceeds from long-term borrowings

         1,769,770       2,795,823  

    Proceeds from debt securities

         23,093,711       20,476,245  

    Repayment of long-term borrowings

         (1,211,324 )      (654,581 ) 

    Repayment of debt securities

         (26,541,349 )      (24,687,409 ) 

    Payment of lease liabilities

         (549,651 )      (612,828 ) 

    Settlement of derivative instruments, net

         621,571       545,483  

    Change in non-controlling interests

         (57,759 )      (35,986 ) 

    Repayment of hybrid bond

         (230,000 )      —   

    Dividends paid for hybrid bond

         (2,128 )      (10,316 ) 

    Dividends paid

         (216,780 )      (126,903 ) 

    Other cash outflows from financing activities, net

         (258,858 )      (2,428 ) 
      

     

     

       

     

     

     

    Net cash flows used in financing activities

         (2,634,601 )      (3,849,301 ) 
      

     

     

       

     

     

     

    Net decrease in cash and cash equivalents before effect of exchange rate fluctuations

         (199,900 )      (2,066,292 ) 

    Effect of exchange rate fluctuations on cash held

         57,732       106,384  
      

     

     

       

     

     

     

    Net decrease in cash and cash equivalents

         (142,168 )      (1,959,908 ) 

    Cash and cash equivalents as of January 1, 2025 and 2024

         2,382,979       4,342,887  
      

     

     

       

     

     

     

    Cash and cash equivalents as of December 31, 2025 and 2024

       W 2,240,811       2,382,979  
      

     

     

       

     

     

     


    Agenda 2. Approval of the ceiling amount of remuneration for directors in 2026

    KEPCO seeks to obtain approval regarding the ceiling amount of remuneration for directors for the fiscal year 2026, pursuant to Article 388 of the Commercial Act and Article 35 of the Articles of Incorporation of KEPCO.

     

      •  

    Proposed aggregate ceiling on remuneration for directors:

     

      •  

    2,207,869 thousand won in fiscal year 2026 (total number of directors: 15; number of non-standing directors: 8)

     

      •  

    2,172,984 thousand won in fiscal year 2025 (total number of directors: 15; number of non-standing directors: 8)

     

      •  

    The actual remuneration for directors in the fiscal year 2025 was 1,664,368 thousand won.

     

      •  

    We proposed to increase the maximum aggregate ceiling on remuneration for directors in 2026 by 34,885 thousand won compared to 2025 as a result of (i) the notification by the Government to increase the remuneration for directors of government controlled entities by 3.4% (34,135 thousand won), (ii) the decreased payment ceiling for performance-based compensation (10,214 thousand won), (iii) the increased severance payments by 34,964 thousand won due to the increase in the average incumbency of our directors ( 25 g 29 months) and (iv) the decreased remuneration ceiling for the Labor Director (24,000 thousand won).


    Agenda 3. Approval of amendments to the Articles of Incorporation of KEPCO

     

      •  

    The table below compares the current provisions in the Articles of Incorporation with the proposed amendments and rationales for such proposed amendments.

     

    Current provision

      

    Proposed amendment

      

    Rationale

    Article 4 (Change of Articles of Incorporation)

     

    In case the Corporation intends to change the Articles of Incorporation, the Corporation shall obtain approval of the Minister of the Ministry of Trade, Industry and Energy, following the resolutions of the Board of Directors and the General Meeting of Shareholders.

      

    Article 4 (Change of Articles of Incorporation)

     

    In case the Corporation intends to change the Articles of Incorporation, the Corporation shall obtain approval of the Minister of the Ministry of Climate, Energy and Environment, following the resolutions of the Board of Directors and the General Meeting of Shareholders.

       To reivse the Articles of Incorporation in accordance with amendments to the Government Organization Act.

    Article 15 (Suspension of Changes in the Register of Shareholders)

     

    (2) The Corporation shall permit the shareholders whose names appear in the register of shareholders on December 31 of each year to exercise voting rights and receive dividends as shareholders in the Ordinary General Meeting of Shareholders held in respect of such fiscal year.

      

    Article 15 (Suspension of Changes in the Register of Shareholders)

     

    (2) The Corporation shall permit the shareholders whose names appear in the register of shareholders on December 31 of each year to exercise voting rights as shareholders in the Ordinary General Meeting of Shareholders held in respect of such fiscal year.

       To set the dividend record date after the dividend amount is determined, by separating the right to vote from the right to receive dividends, in order to enhance dividend predictability for shareholders


    Article 26-2 (Appointment of Officers, etc.)

     

    (1) For the appointment of the position of the President, the Director Nomination Committee pursuant to Article 28-2 makes multiple recommendations followed by Director Nomination Committee deliberations and resolution of the Committee for Management of Public Institutions pursuant to Article 8 of the Act on the Management of Public Institutions and the resolution of the General Meeting of shareholders, and shall be appointed by the President of the Republic of Korea as motioned by the Minister of the Ministry of Trade, Industry and Energy.

      

    Article 26-2 (Appointment of Officers, etc.)

     

    (1) For the appointment of the position of the President, the Director Nomination Committee pursuant to Article 28-2 makes multiple recommendations followed by Director Nomination Committee deliberations and resolution of the Committee for Management of Public Institutions pursuant to Article 8 of the Act on the Management of Public Institutions and the resolution of the General Meeting of Shareholders, and shall be appointed by the President of the Republic of Korea as motioned by the Minister of the Ministry of Climate, Energy and Environment.

       To reivse the Articles of Incorporation in accordance with amendments to the Government Organization Act
    (2) The Standing Directors except for the President shall be appointed by the President following a resolution of the General Meeting of Shareholders. Provided, however, that a Standing Director who becomes a member of the Audit Committee in accordance with the provisions of Article 41-2 shall be appointed by the President of the Republic of Korea, as motioned by the Minister of the Ministry of Economy and Finance, following the deliberation and resolution of the Committee for Management of Public Institutions and the resolution of the General Meeting of Shareholders from the pool of candidates who have been recommended by the Director Nomination Committee.    (2) The Standing Directors except for the President shall be appointed by the President following a resolution of the General Meeting of Shareholders. Provided, however, that a Standing Director who becomes a member of the Audit Committee in accordance with the provisions of Article 41-2 shall be appointed by the President of the Republic of Korea, as motioned by the Minister of the Ministry of Finance and Economy, following the deliberation and resolution of the Committee for Management of Public Institutions and the resolution of the General Meeting of Shareholders from the pool of candidates who have been recommended by the Director Nomination Committee.   


    (3) The non-standing director shall be selected from among the pool of candidates under any of the following subparagraphs who have been recommended by the Director Nomination Committee, and appointed by the Minister of the Ministry of Economy and Finance upon deliberation and resolution by the Committee for Management of Public Institutions. Such appointment shall include one (1) person pursuant to Subparagraph 2. set forth below.    (3) The non-standing director shall be selected from among the pool of candidates under any of the following subparagraphs who have been recommended by the Director Nomination Committee, and appointed by the Minister of the Ministry of Finance and Economy upon deliberation and resolution by the Committee for Management of Public Institutions. Such appointment shall include one (1) person pursuant to Subparagraph 2. set forth below.   

    Article 28-3 (Administration Agreement with President)

     

    (2) The Director Nomination Committee shall negotiate the terms and conditions of the proposed contract as submitted pursuant to Paragraph (1) above with the candidate for the President’s office who is recommended by the Committee, and shall report the results to the Minister of the Ministry of Trade, Industry and Energy. For purposes of such negotiation, the Director Nomination Committee may change certain terms and conditions of the contract, as necessary.

      

    Article 28-3 (Administration Agreement with President)

     

    (2) The Director Nomination Committee shall negotiate the terms and conditions of the proposed contract as submitted pursuant to Paragraph (1) above with the candidate for the President’s office who is recommended by the Committee, and shall report the results to the Minister of the Ministry of Climate, Energy and Environment. For purposes of such negotiation, the Director Nomination Committee may change certain terms and conditions of the contract, as necessary.

       To reivse the Articles of Incorporation in accordance with amendments to the Government Organization Act


    (3) The person who is appointed as the President of the Corporation shall execute the contract with the Minister of the Ministry of Trade, Industry and Energy pursuant to Paragraph (2) above. The Minister of the Ministry of Trade, Industry and Energy may negotiate with the person appointed as the President and may change the terms and conditions of the contract from the contract determined pursuant to Paragraph (1) or (2) above.    (3) The person who is appointed as the President of the Corporation shall execute the contract with the Minister of the Ministry of Climate, Energy and Environment pursuant to Paragraph (2) above. The Minister of the Ministry of Climate, Energy and Environment may negotiate with the person appointed as the President and may change the terms and conditions of the contract from the contract determined pursuant to Paragraph (1) or (2) above.   
    (4) The President and the Minister of the Ministry of Trade, Industry and Energy may change the terms and conditions of the contract after the execution thereof through mutual negotiation in the event of unavoidable circumstances, pursuant to Paragraph (3) above.    (4) The President and the Minister of the Ministry of Climate, Energy and Environment may change the terms and conditions of the contract after the execution thereof through mutual negotiation in the event of unavoidable circumstances, pursuant to Paragraph (3) above.   

    Article 32 (Restriction on Officers’ and Employees’ Holding of Concurrent Positions)

     

    No Standing Director or employee of the Corporation shall engage in any business activities for profit other than the performance of his duties for the Corporation. The President may engage in not-for-profit activities upon obtaining approval of the Minister of the Ministry of Trade, Industry and Energy. Standing Directors and employees of the Corporation may engage in not-for-profit activities upon obtaining approval of the President.

      

    Article 32 (Restriction on Officers’ and Employees’ Holding of Concurrent Positions)

     

    No Standing Director or employee of the Corporation shall engage in any business activities for profit other than the performance of his duties for the Corporation. The President may engage in not-for-profit activities upon obtaining approval of the Minister of the Ministry of Climate, Energy and Environment. Standing Directors and employees of the Corporation may engage in not-for-profit activities upon obtaining approval of the President.

       To reivse the Articles of Incorporation in accordance with amendments to the Government Organization Act


    Article 35 (Remuneration for Officers and Employees)

     

    (3) The standards for remuneration in Paragraph (2) with respect to the President and the Standing Directors shall be determined by the Board of Directors pursuant to the guidelines on remuneration established by the Minister of the Ministry of Economy and Finance upon deliberation and resolution by the Operation Committee, taking into account the following.

      

    Article 35 (Remuneration for Officers and Employees)

     

    (3) The standards for remuneration in Paragraph (2) with respect to the President and the Standing Directors shall be determined by the Board of Directors pursuant to the guidelines on remuneration established by the Minister of the Ministry of Finance and Economy upon deliberation and resolution by the Operation Committee, taking into account the following.

       To reivse the Articles of Incorporation in accordance with amendments to the Government Organization Act

    Article 37–2 (Senior Non-standing Director)

     

    (2) The Senior Non-standing Director shall be appointed by the Minister of the Ministry of Economy and Finance upon deliberation and resolution by the Operation Committee.

      

    Article 37–2 (Senior Non-standing Director)

     

    (2) The Senior Non-standing Director shall be appointed by the Minister of the Ministry of Finance and Economy upon deliberation and resolution by the Operation Committee.

       To reivse the Articles of Incorporaiton in accordance with amendments to the Government Organization Act

    Article 51 (Dividends)

     

    (1) Any rights to dividends shall be extinguished by prescription unless exercised with five (5) years.

      

    Article 51 (Dividends)

     

    <Maintained>

       Establishment of grounds for determining the dividend record date


    (2) Dividends to which rights has extinguished pursuant to Paragraph (1) above shall revert to the Corporation.      
    (3) The Corporation may pay dividends to shareholders other than the Government preferentially.      

    (4) The Corporation shall make efforts to treat the members of ESOA favorably in payment of dividends.

    <Newly established>

         
       (5) The Corporation may, by resolution of the Board of Directors, determine the record date to identify the shareholders entitled to receive dividends. If such record date is set, the Company shall provide public notice thereof at least 2 weeks prior to the record date.   

    All amendments to the Articles of Incorporation shall be effective on and from the date in which the amendments have been promulgated. A resolution from the AGM and the approval of the Minister of Climate, Energy, and Environment are required for the amendments to be promulgated.

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