Korea Midland Power Co. Ltd.

Overview Key strengths Key risks Core subsidiary of KEPCO and one of Korea's major coal-based power generation companies. Lack of transparency in mechanism to adjust wholesale electricity prices. Good market position in electricity supply in the country, accounting for about 9% of national power generation. Subdued profitability in 2022 due to a decrease in wholesale prices as well as rising fuel costs. Low cyclicality in demand. Growing debt given rising investments for environmental-friendly power generation capacity. We expect KOMIPO to remain a core subsidiary of Korea Electric Power Corp. (KEPCO; AA/Stable/A-1+). This is given the integral nature of power generation in KEPCO's role of providing a stable supply of electricity to Korea. KOMIPO accounts for about 9% of the nation's

...The rating on Korea Midland Power Co. Ltd. (KOMIPO) is equalized with that on its parent. We expect KOMIPO to remain a core subsidiary of Korea Electric Power Corp. (KEPCO; ##/Stable/A-1+). This is given the integral nature of power generation in KEPCO's role of providing a stable supply of electricity to Korea. KOMIPO accounts for about 9% of the nation's total power generation volume. We equalize the rating on KEPCO with that on the government of South Korea (##/Stable/A-1+) due to the company's special public status of implementing the government's electricity policy....

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