Korea Electronic Power Corporation (KEPCO) is facing a bleak future in its desperate efforts to recover from its financial crisis as a plan to raise electricity fees in the second quarter was held off. With mounting losses again projected for this year, the company may have to issue more corporate bonds, possibly negatively affecting the debt market.
The stock price of Korea Electric Power Corporation (KEPCO) soared during Friday s trading session, as investors expected an increase in domestic electricity fees after the National Assembly voted down a bill a day earlier aimed at expanding KEPCO s upper limit in corporate bond issuance. KEPCO shares ended at 21,000 won ($16.13) on Friday, up 8.53 percent from the previous trading session. It marked the highest daily increase since early November this year, and was also the highest closing price since mid-August. On Thursday afternoon, lawmakers voted down a revision bill of the Korea Electric Power Corporation Act during a plenary session at the National Assembly. Most lawmakers from the main opposition Democratic Party of Korea (DPK) opposed or abstained from voting on the bill designed to allow the public utility to issue corporate bonds worth up to five times its own capital. The current act permits KEPCO to issue corporate bonds worth up to two times its own capital.