Seoul: The state-run Korea Electric Power Corp. (KEPCO) announced on Monday that it will maintain its electricity rates for the second quarter of the year. The decision to freeze the rates will keep the adjusted unit fuel cost, a crucial component of the nation's electricity pricing, at 5 won per kilowatt-hour (kWh) for the April to June period.

According to Yonhap News Agency, KEPCO has upheld the adjusted unit fuel cost at 5 won since the third quarter of 2022. The fuel cost adjustment unit price is set quarterly and can vary by plus or minus 5 won per kWh, depending on the fluctuations in energy prices, such as coal and liquefied natural gas (LNG), observed over the preceding three months.

The company disclosed that the government instructed them to maintain the current rate of 5 won per kWh for the second quarter. This decision was influenced by KEPCO's financial situation and the substantial amount of unadjusted fuel cost charges accumulated previously. KEPCO was also advised to persist in its efforts to stabilize its management.

In 2025, KEPCO's net income experienced a significant increase, rising more than 141 percent from the previous year to reach 8.73 trillion won (approximately US$5.79 billion), as the company continued its initiatives to bolster financial stability. KEPCO's financial challenges began when it provided electricity at prices below production costs, despite the global energy price hikes that occurred between 2021 and 2023, largely driven by the Russia-Ukraine conflict.