The issuance of corporate bonds of KEPCO (015760) in the first quarter of this year reached 9.67 trillion won.
This is close to the size of the entire issuance of last year, which is three times the amount of 3.52 trillion won issued in the year of 2020.
If this trend continues, annual issuance is expected to reach 40 trillion won. It is analyzed that KEPCO, which is expected to lose 20 trillion won in operating loss this year, is supplying electricity below cost due to the government’s decision to freeze electricity rates, and most of the necessary funds are being financed through corporate bonds.
If President-elect Yoon Seok-yeol’s promise of ‘freezing electricity rates’ comes true, there are concerns that KEPCO’s ‘blocking of corporate bonds’ will reach its limit within the year, and it is predicted that it will not be easy for the next government to take out the ‘freeze electricity rates’ card.