Corporate Logo(source: kogas.or.kr)
Shares of Korea Electric Power Corp. (015760) and Korea Gas Corp. (036460) surged on July 4, a day after the National Assembly passed an amendment to the Commercial Act that strengthens directors’ fiduciary duties.
As of 10:17 a.m., Korea Electric Power Corp. was trading at 37,600 won, up 4.74% from the previous session. The stock opened 5.15% higher and extended its gains to as much as 7.94% during early trading.
Korea Gas Corp. also rose sharply, climbing 7.76% to 47,200 won after briefly reaching an intraday high of 8.68%.
The rally in these state-run energy companies is being attributed to expectations that, following the legal revision, the government will no longer be able to artificially suppress electricity and gas rates.
Previously, the government had regulated public utility prices as part of broader efforts to manage inflation. However, under the amended law, such price controls may now be interpreted as infringing upon shareholder rights.
Accordingly, investors expect that utility rates could be adjusted upward, leading to improved earnings prospects for these companies.
*[KOSPI]Korea Gas Corporation(KOGAS)(036460) is a company that imports LNG from overseas to supply domestic power plants and city gas operators. The government is the major shareholder of KOGAS. Market capitalization stands at 4.039 trillion won(as of September 6, 2024, closing price).
*[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 22.956 trillion won (as of July 02, 2025, closing price).
Corporate Logo(source: kogas.or.kr)
Shares of Korea Electric Power Corp. (015760) and Korea Gas Corp. (036460) surged on July 4, a day after the National Assembly passed an amendment to the Commercial Act that strengthens directors’ fiduciary duties.
As of 10:17 a.m., Korea Electric Power Corp. was trading at 37,600 won, up 4.74% from the previous session. The stock opened 5.15% higher and extended its gains to as much as 7.94% during early trading.
Korea Gas Corp. also rose sharply, climbing 7.76% to 47,200 won after briefly reaching an intraday high of 8.68%.
The rally in these state-run energy companies is being attributed to expectations that, following the legal revision, the government will no longer be able to artificially suppress electricity and gas rates.
Previously, the government had regulated public utility prices as part of broader efforts to manage inflation. However, under the amended law, such price controls may now be interpreted as infringing upon shareholder rights.
Accordingly, investors expect that utility rates could be adjusted upward, leading to improved earnings prospects for these companies.
*[KOSPI]Korea Gas Corporation(KOGAS)(036460) is a company that imports LNG from overseas to supply domestic power plants and city gas operators. The government is the major shareholder of KOGAS. Market capitalization stands at 4.039 trillion won(as of September 6, 2024, closing price).
*[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 22.956 trillion won (as of July 02, 2025, closing price).