This article was published on Aug. 28, 2025, at 3:34 p.m. on the ChosunBiz MoneyMove site.
Korea Electric Power Corporation will sell its stake in a coal power plant located in Cebu, Philippines. This asset is considered a solid infrastructure asset with stable cash flow in the Philippines. KEPCO is facing a significant liability of 206 trillion won, making it unavoidable to sell overseas assets to improve its financial structure.
According to investment banking (IB) industry sources on the 28th, KEPCO has begun the sale process for its equity stake in the coal power plant 'KEPCO SPC Power Corporation (KSPC)' in Cebu, Philippines. To increase the likelihood of a successful transaction, KEPCO has appointed Samil PwC domestically and PwC Philippines as the financial advisors for the sale. The sale price is projected to be around 150 billion won.
The target for sale is the 60% equity stake in KSPC held by KEPCO Philippines Holdings Inc. (KPHI). KPHI was established by KEPCO for its investment projects in the Philippines. The remaining 40% equity stake in KSPC is held by SPC Power Corporation (SPC), a publicly listed power company in the Philippines. The company's shareholders include local firms such as Intrepid Holdings, which specializes in e-commerce and digital solutions.
KEPCO entered the Philippine power generation market by jointly establishing KSPC with the local power company SPC in 2005. The Cebu coal power plant started commercial operations in 2011. The 200 megawatt coal plant primarily supplies electricity to Negros Island and Cebu Island in the Visayas region of the Philippines. It is KEPCO's first commercial plant among its overseas power generation projects. KEPCO's Cebu subsidiary is responsible for the entire process, including coal procurement, production, and sales.
As of June this year, KSPC's assets and liabilities stand at 280 billion won and 26.2 billion won, respectively. At the end of last year, the company recorded sales and operating profit of 190 billion won and 28.1 billion won, respectively. The plant is regarded as an asset capable of securing predictable cash flow and stable revenue by selling the electricity generated through long-term power supply agreements (PSA). It is known that KEPCO received more than 28 billion won in dividends last year.
KEPCO's reason for selling solid assets is part of its roadmap for improving its financial structure and transitioning away from coal as part of carbon neutrality policies. Additionally, risks in the local market are increasing as the Philippines has implemented a moratorium on the construction of new coal power plants since 2020. The Philippines aims to achieve 35% renewable energy by 2030. Recently, there are clear signs of a transition from coal power to liquefied natural gas (LNG) generation after 17 years.
An industry insider noted, 'Even if the Cebu coal plant has long-term power sales contracts, renewal and regulatory risks exist,' adding that 'considering policy risks and environmental regulations, there will be a significant incentive to sell from a portfolio optimization perspective.'