Experts have expressed concern that Korea Electric Power Corporation (KEPCO)’s financial costs will rise sharply as the war in the Middle East pushes natural gas prices ever higher.

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Asia Pacific Nuclear Energy (APNE) 2026

KEPCO’s debt had reached 210.7 trillion Korean won (€140 billion) in the first half of 2026. With large-scale semiconductor clusters and AI data centres under construction domestically, experts warn that escalating financial pressure on KEPCO could disrupt power infrastructure development.

KEPCO purchases electricity from power plants and resells it, but with electricity rates effectively frozen, soaring fuel costs increases its expenses.

KEPCO’s power procurement costs rose 17.6 per cent year-on-year, while its average electricity sales price fell 1.2 per cent. KEPCO’s financial strain is intensifying, putting under threat plans to invest 55.3 trillion won (€37 billion) from 2026-2030 intended to meet rising electricity demand.