KEP - Kepco CEO offers to resign unveils measures to streamline operations

2023-05-12 08:35:13 ET

Korea Electric Power ( NYSE: KEP ) CEO Cheong Seung-il offered to resign Friday, as the utility announced a major financial overhaul to stem mounting operating losses.

The CEO has been under political pressure to step down and take responsibility for Kepco's ( KEP ) accumulated operating losses, totaling nearly 40T won.

The utility also unveiled measures to streamline its operations before the South Korean government raises electricity prices next week, saying it will sell non-essential assets and freeze wages for employees to save more than 25T won ($19.3B) by 2026.

Kepco ( KEP ) also reported a 6.1T won Q1 operating loss, its eighth consecutive quarterly operating loss, with revenues rising 31% Y/Y to 21.6T won while operating expenses increased 14.5% due to higher fuel and electricity purchase costs.

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