[비즈한국] It has been confirmed that Korea Electric Power Corporation (KEPCO) has suspended its plan to sell its stake in KEPCO KDN. KEPCO KDN is a public enterprise specializing in energy ICT, with KEPCO holding a 100% stake. During the Yoon Suk-yeol administration, KEPCO pushed for the sale of its KEPCO KDN stake, but it was not realized. The Lee Jae-myung administration ordered a halt to the sale of state-owned assets, leading KEPCO to suspend its efforts to sell the KEPCO KDN stake.
KEPCO held a board meeting in April 2024 to discuss the 'plan to sell shares through KEPCO KDN's stock market listing.' According to KEPCO's self-rescue measures, it intended to sell 20% of its KEPCO KDN stake after listing the company. However, opinions within the KEPCO board suggested further review was necessary, and the plan was ultimately put on hold.
At the time, the opposition Democratic Party and the Federation of Electric Power Industry Trade Unions opposed the sale of the KEPCO KDN stake. The Federation pointed out, "The market value of a 20% stake in KEPCO KDN is about 80 billion won, which is only 0.05% of KEPCO's total debt and does not help with securing liquidity at all," adding that "the beneficiaries of any profit from selling the KEPCO KDN stake at an undervalued price would be private conglomerates, while KEPCO would suffer financial losses to that extent." Considering this public sentiment, the sale of the KEPCO KDN stake was a burdensome issue for KEPCO as well.
Since the inauguration of the Lee Jae-myung administration, asset sales by public enterprises have appeared to decrease significantly compared to the past. However, KEPCO left room for the possibility of selling its KEPCO KDN stake until last year. KEPCO CEO Kim Dong-cheol said during a parliamentary audit by the Environment and Labor Committee last October, "The KEPCO KDN sale plan was brought to the board once last year, but it was because KEPCO KDN was flagged by the Fair Trade Commission (KFTC) for unfair practices. Because the sale value would be lower due to that, board members opposed it, and it is currently on hold with the intention to sell after increasing the sale value." According to CEO Kim's remarks, the plan was not fully withdrawn, and it was in a stage of monitoring market conditions.
However, one month later, in November last year, Prime Minister Kim Min-seok instructed, "Each ministry and related agency should, in principle, completely halt the sale of government assets," and "Thoroughly recognize and comply with the President's order to receive prior approval from the Prime Minister in unavoidable cases." The Lee Jae-myung administration had ordered a stop to the sale of state-owned assets.
As a result, it has been confirmed that KEPCO has stopped discussions and work related to the sale of its KEPCO KDN stake. KEPCO recently announced the results of measures taken regarding correction and processing requirements from the parliamentary audit, officially stating that the progress of the KEPCO KDN stake sale has been suspended. A KEPCO official said, "(As this is a presidential directive) it is a situation where the sale of the KEPCO KDN stake can no longer be discussed."
KEPCO's financial structure has also recently improved, leading to assessments that the necessity of selling the KEPCO KDN stake is low. KEPCO recorded operating profits of 8.3467 trillion won in 2024 and 13.4906 trillion won in 2025, respectively. Its debt-to-equity ratio decreased from 543.28% in 2023 to 496.69% in 2024 and 416.85% in 2025. KEPCO KDN has also been profitable for several years, and its debt-to-equity ratio was only 32.95% as of the end of last year.