Corporate Logo(source: home.kepco.co.kr)
On July 3, Meritz Securities raised its target price for Korea Electric Power Corp. (015760) from 41,000 won to 47,000 won, citing the utility as a clear beneficiary of South Korea’s growing overseas nuclear power plant exports. The brokerage maintained its “Buy” rating on the stock.
Moon Kyung-won, an analyst at Meritz, noted, “Korea Hydro & Nuclear Power, a subsidiary of Korea Electric Power Corp., is clearly leading the country’s nuclear power exports, yet its contribution has been largely overlooked in the company’s valuation.” He attributed this to lingering doubts about Team Korea’s export competitiveness.
“As discussions advance regarding entry into the U.S. market, along with follow-up projects across Asia and progress in small modular reactor (SMR) development, the nuclear business is expected to undergo a meaningful revaluation,” he added. “In particular, for the Biden administration to meet its goal of initiating construction on 10 large nuclear reactors by 2030, talks would need to begin as early as next year.”
Meritz also projected dividend yields for Korea Electric Power Corp. to reach 5% in 2025 and 6% in 2026. “Given the urgent need for investment in the power grid, an increase in electricity rates this winter appears likely,” Moon said, adding, “There is meaningful upside potential, especially considering the possibility of the government raising its dividend payout ratio.”
*[KOSPI] Korea Electric Power Corporation(KEPCO)(015760) engages in the development, generation, transmission, substation, distribution, and related sales, research, and technology development of electric power resources, and its largest shareholder is the Korea Development Bank. Market capitalization is 23.08 trillion won (as of July 02, 2025, closing price).
Corporate Logo(source: home.kepco.co.kr)
On July 3, Meritz Securities raised its target price for Korea Electric Power Corp. (015760) from 41,000 won to 47,000 won, citing the utility as a clear beneficiary of South Korea’s growing overseas nuclear power plant exports. The brokerage maintained its “Buy” rating on the stock.
Moon Kyung-won, an analyst at Meritz, noted, “Korea Hydro & Nuclear Power, a subsidiary of Korea Electric Power Corp., is clearly leading the country’s nuclear power exports, yet its contribution has been largely overlooked in the company’s valuation.” He attributed this to lingering doubts about Team Korea’s export competitiveness.
“As discussions advance regarding entry into the U.S. market, along with follow-up projects across Asia and progress in small modular reactor (SMR) development, the nuclear business is expected to undergo a meaningful revaluation,” he added. “In particular, for the Biden administration to meet its goal of initiating construction on 10 large nuclear reactors by 2030, talks would need to begin as early as next year.”
Meritz also projected dividend yields for Korea Electric Power Corp. to reach 5% in 2025 and 6% in 2026. “Given the urgent need for investment in the power grid, an increase in electricity rates this winter appears likely,” Moon said, adding, “There is meaningful upside potential, especially considering the possibility of the government raising its dividend payout ratio.”
*[KOSPI] Korea Electric Power Corporation(KEPCO)(015760) engages in the development, generation, transmission, substation, distribution, and related sales, research, and technology development of electric power resources, and its largest shareholder is the Korea Development Bank. Market capitalization is 23.08 trillion won (as of July 02, 2025, closing price).