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 8% of national power generation. Rising investments for environmentally friendly power generation. Low cyclicality in demand. Elevated debt as operating cash flow will not be sufficient to fully cover its capital expenditure. 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 8% of the nation's total power generation volume.
