This report does not constitute a rating action. Overview Key strengths Key risks Core subsidiary of Korea Electric Power Corp. (Kepco) and one of Korea's major coal-based power generation companies (gencos) Lack of transparency in government mechanism to adjust wholesale electricity prices Good market position in electricity supply, accounting for about 7% of national power generation Rising investments in environmentally-friendly power generation Low cyclicality of demand Elevated debt due to ongoing capital expenditure (capex) to replace coal-based plants. We continue to equalize our rating on Korea Midland Power Co. Ltd. (Komipo) with that on its parent. We expect the company to remain a core subsidiary of Kepco (AA/Stable/A-1+), given Kepco's role of providing a stable supply of electricity in Korea.
