Seoul, Jan 14, 2026, 02:00 KST — Market closed.
- Korea Electric Power closed Tuesday 9.2% higher at 55,700 won, having hit a 52-week peak earlier in the session.
- NH Investment lifted its target price to 70,000 won, pointing to profit rebound and optionality in the U.S. nuclear market.
- Attention turns to tariff rulings, export-control discussions, and the upcoming KEPCO earnings report.
Korea Electric Power Corp (015760.KS) shares surged 9.2% on Tuesday, closing at 55,700 won—their best finish in a year—after reaching an intraday peak of 55,800 won. The state-run utility’s stock was at 51,000 won just the day before. 1
The move came after renewed bullish forecasts from brokers. NH Investment & Securities bumped its target price up to 70,000 won from 60,000, maintaining a “buy” rating. Analyst Lee Min-jae noted that KEPCO is now in a stage where both earnings and its financial strength could improve simultaneously, boosting its valuation support. 2
South Korean stocks pushed higher again, with major domestic policy-driven shares drawing renewed attention from investors. The KOSPI climbed 1.5%, closing at a new peak of 4,692.6, Aju Press reported. 3
NH’s argument hinges on sustained investment and cash flow, plus the government’s approach to power pricing. In a separate report covered by local outlets, NH highlighted increasing capital spending, including on high-voltage direct current (HVDC) transmission projects. The firm forecasts free cash flow—cash remaining after investment—of 4.9 trillion won in 2026 and 4.4 trillion won in 2027, with a large portion earmarked for debt repayment. 4
Lee linked the re-rating story to electricity tariffs and potential changes in nuclear cooperation with the U.S. He noted electricity rates would probably be decided in September, following local elections in June, and highlighted ongoing discussions about updating the Korea-U.S. nuclear cooperation agreement. An overhaul of the nuclear-export system is expected to be finalized in the first half of the year. 5
Other broker notes echoed similar views, though price targets vary. Hana Securities maintained a “buy” rating with a 65,000-won target, citing lower commodity prices and new nuclear units set to come online as potential drivers for cost improvements through 2026. The firm also forecasted fourth-quarter operating profit at 3.3 trillion won. 6
Investors are zeroing in on South Korea’s nuclear-export governance, a hot topic for KEPCO and its nuclear operator, Korea Hydro & Nuclear Power (KHNP). According to Maeil Business Newspaper, KEPCO submitted a report to the industry ministry advocating to maintain the existing “dual” structure. They want KEPCO to handle marketing and financing, while KHNP sticks to construction, even as officials mull over possible adjustments. 7
The stock struggles with a straightforward issue: regulated pricing paired with heavy leverage. In November, KEPCO reported third-quarter consolidated revenue of 73.75 trillion won and operating profit of 11.54 trillion won, attributing gains to stable fuel prices and tariff changes. Yet, the company also flagged a hefty debt burden and steep daily interest expenses. 8
Tariffs continue to be the key variable. KEPCO has held electricity rates steady for Q1 2026, setting the “adjusted unit fuel cost” — a quarterly fuel charge included in bills — at 5 won per kilowatt-hour, according to Korea JoongAng Daily, which cited both the company and Yonhap. 9
There is a definite downside risk. If coal or LNG prices jump back up, margins could tighten fast. Political hurdles might stall tariff cuts even if fuel costs drop. Large grid investments could also drain funds investors expect to go toward cutting debt. Plus, governance issues in nuclear exports and international disputes might last longer than the market anticipates.
At Wednesday’s open, traders will be eyeing if Tuesday’s rally sparks more buying or leads to some profit-taking. Policy news on tariffs and nuclear exports could also shake things up. On the calendar, KEPCO’s upcoming earnings report is set for Feb. 19, 2026, per Investing.com. 10
