April 19, 2024

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[THE INVESTOR] Korea Electric Power Corp. would gain as electricity charges might rise, said KB Investment and Securities on May 31, upgrading the recommendation to a “buy” from a “hold” and raising the target price to 45,000 won (US$41.76) from 37,000 won.

Power rates will rise 5 percent in August this year and 9.5 percent by 2020. There tends to be an increase when inflation is low, and from past experience, the ruling party avoids intervening, said analyst Kang Seong-jin.

Although KEPCO’s operating profit declined last year, it was mainly because of global energy prices, not domestic policies. It will be understandable if the government reflects the increased international rates here, said the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)