Korea Electric Power (KEP) is down about 4% as investors react to South Korea’s decision to keep electricity rates unchanged for the second quarter of 2026. The rate-setting framework keeps the adjusted unit fuel cost at the maximum 5 won per kWh for April–June, extending a policy that has constrained how quickly the utility can rebuild profitability after a period of elevated fuel costs.

For KEPCO, regulated pricing is the main swing factor for earnings. A continued freeze signals that any further improvement in cash generation may depend more on fuel costs and operational execution than on near-term tariff relief, keeping attention on how much of past under-recovered fuel costs remain and whether additional price normalization is delayed.

The move follows KEPCO’s annual general meeting on March 25, 2026, where shareholders approved the FY2025 financial statements, the 2026 director remuneration ceiling, and amendments to the articles of incorporation. With the governance agenda largely settled, today’s trading focus has shifted back to policy-driven revenue dynamics and the forward trajectory of regulated rates.

Investors will track any further government guidance on tariff normalization beyond Q2, plus fuel price trends that influence cost pressure and the fuel-cost adjustment mechanism. Separately, the market will watch the timing of dividend distribution mechanics following the March 25, 2026 AGM process and related filings.