Capital expenditure requirements frequently outpace operating cash flow, with the CapEx-to-OCF ratio reaching as high as 169.2% in 2023Q4, necessitating continuous access to external capital markets.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 21.47T | 21.16T | 15.88T | 1.52T | -23.48T | 4.47T | 13.21T | 8.21T | 6.68T | 11.25T | 16.52T | 16.94T | 12.05T | 6.88T | 3.92T | 4.14T | 6.74T | 5.74T | 1.96T | 6.99T | 7.44T | 7.55T | 7.87T | 8.69T | 8.76T |
| Operating CF Growth % | 201.35% | 33.3% | 943% | 106.48% | -624.85% | -66.13% | 60.82% | 22.95% | -40.62% | -31.9% | -2.49% | 40.66% | 74.98% | 75.75% | -5.5% | -38.51% | 17.45% | 192.59% | -71.93% | -6.11% | -1.45% | -4.09% | -9.44% | -0.71% | - |
| Operating CF / Revenue % | 29.67% | 21.92% | 17% | 1.74% | -33.28% | 7.45% | 22.8% | 13.88% | 11.02% | 18.81% | 27.45% | 28.74% | 20.96% | 12.74% | 7.93% | 9.52% | 17.1% | 17.04% | 6.21% | 23.97% | 28.47% | 29.91% | 34.02% | 36.41% | 40.99% |
| Net Income | 6.22T | 8.66T | 3.49T | -4.82T | -24.43T | -5.22T | 2.09T | -2.26T | -742.73B | 1.44T | 7.15T | 13.42T | 2.8T | 174.31B | -1.76T | -3.29T | -69.17B | -47.73B | -2.91T | 1.47T | 2.12T | 2.39T | 2.78T | 2.44T | 3.05T |
| Depreciation & Amortization | 13.71T | 13.97T | 14T | 13.03T | 12.46T | 11.94T | 11.55T | 11.13T | 10.02T | 9.77T | 8.96T | 8.34T | 7.87T | 7.39T | 7T | 6.88T | 6.7T | 6.32T | 6.23T | 5.83T | 5.48T | 5.8T | 5.26T | 5.34T | 5.16T |
| Deferred Taxes | 2.05T | 0 | 0 | -2.84T | -9.41T | -1.86T | 899.06B | -1T | -826.32B | 2.17T | 3.37T | 5.24T | 1.43T | -570.79B | -985.38B | 0 | 438.78B | 282.93B | -1.54T | -87.86B | -175.37B | 101.93B | -25.76B | 8.63B | 220.93B |
| Other Non-Cash Items | 1.05T | 3.98T | 571.02B | -7.69B | -474.28B | -418.48B | -111.69B | 1.39T | 1.84T | 887.75B | -774.24B | -7.77T | 1.07T | 589.37B | 1.11T | 1.54T | 54.37B | 1.21T | 1.39T | 1.07T | 631.29B | 337.76B | 55.57B | 1.57T | -383.6B |
| Working Capital Changes | -4.19T | -5.46T | -2.18T | -3.84T | -1.62T | 24.96B | -1.22T | -1.04T | -3.61T | -3.03T | -2.18T | -2.28T | -1.12T | -701.35B | -1.45T | -984.49B | -380.56B | -2.03T | -1.2T | -1.29T | -616.03B | -1.08T | -204.81B | -652.42B | 709.51B |
| Capital Expenditures | -16.3T | -16.02T | -14.22T | -13.93T | -12.43T | -12.78T | -13.4T | -14.23T | -12.38T | -12.68T | -12.15T | -14.14T | -14.62T | -14.33T | -11.51T | -10.65T | -10.87T | -11.49T | -9.29T | -8.55T | -7.19T | -6.72T | -6.07T | -7.11T | -6.65T |
| CapEx / Revenue % | 22.58% | 16.7% | 15.22% | 15.9% | 17.62% | 21.3% | 23.14% | 24.05% | 20.42% | 21.2% | 20.19% | 23.98% | 25.43% | 26.51% | 23.3% | 24.47% | 27.58% | 34.12% | 29.42% | 29.33% | 27.48% | 26.62% | 26.24% | 29.78% | 31.14% |
| CapEx / D&A | 1.19x | 1.15x | 1.02x | 1.07x | 1.00x | 1.07x | 1.16x | 1.28x | 1.23x | 1.30x | 1.36x | 1.69x | 1.86x | 1.94x | 1.65x | 1.55x | 1.62x | 1.82x | 1.49x | 1.47x | 1.31x | 1.16x | 1.15x | 1.33x | 1.29x |
| CapEx Coverage (OCF/CapEx) | 1.31x | 1.31x | 1.12x | 0.11x | -1.89x | 0.35x | 0.99x | 0.58x | 0.54x | 0.89x | 1.36x | 1.20x | 0.82x | 0.48x | 0.34x | 0.39x | 0.62x | 0.50x | 0.21x | 0.82x | 1.04x | 1.12x | 1.30x | 1.22x | 1.32x |
| Cash from Investing | -16.22T | -18.7T | -14.09T | -13.07T | -14.95T | -12.35T | -14.83T | -13.5T | -13.01T | -12.61T | -9.65T | -9.77T | -14.46T | -14.5T | -11.72T | -11.2T | -11.99T | -11.01T | -7.14T | -8.56T | -7.03T | -6.61T | -5.38T | -6.68T | -5.39T |
| Acquisitions | 385.45B | 514.55B | -2.74B | -517.68B | -336.14B | -732.04B | -336.67B | -262.13B | -315.67B | -196.21B | -62.82B | -95.02B | 28.32B | -363.24B | -385.75B | -65.15B | 41.33B | -17.4B | -312.94B | -170.92B | 36.55B | 143.9B | 20.75B | 44.58B | 106.82B |
| Purchase of Investments | -2.96T | -6.53T | 0 | -3.64T | -16.5T | -5.89T | -9.2T | -2.17T | -2.84T | -4.79T | -8.13T | -5.33T | -975.1B | -545.99B | -637.62B | 0 | -1.36T | -752.16B | -164.01B | -970.52B | -62.73B | -766.46B | -200.85B | -140.74B | -20B |
| Sale of Investments | 2.9T | 3.74T | 0 | 4.39T | 14.18T | 7.02T | 8.02T | 2.78T | 2.42T | 5.3T | 10.88T | 242.86B | 1.06T | 610.85B | 650.76B | 0 | 1.21B | 97.91B | 1.43T | 48.4B | 52.66B | 136.9B | 181.84B | 57.76B | 650.71B |
| Other Investing | -208.42B | -298.37B | 125.67B | 602.61B | 123.68B | 29.07B | 89.57B | 374.43B | 101.22B | -240.61B | -175.23B | 9.54T | 42.45B | 123.17B | 167.97B | -477.55B | 1.3T | 1.15T | 1.19T | 1.09T | 128.65B | 598.58B | 688.11B | 467.27B | 523.27B |
| Cash from Financing | -5.76T | -2.67T | -3.85T | 12.66T | 39T | 8.44T | 1.88T | 5.78T | 5.3T | 745.59B | -7.64T | -5.21T | 1.99T | 7.93T | 8.38T | 6.34T | 5.85T | 5.29T | 5.03T | 1.27T | 16.41B | -1.23T | -2.83T | -1.96T | -3.67T |
| Dividends Paid | -211.95B | -219.72B | -126.9B | -45.32B | -42.35B | -812.16B | -81.3B | -99.36B | -599.39B | -1.34T | -2.09T | -409.88B | -186.99B | -41.81B | -55.25B | -44.66B | -32.5B | -45.92B | -492.29B | -641.64B | -703.89B | -722.96B | -651B | -536.25B | -329.64B |
| Dividend Payout Ratio % | - | 2.57% | 3.63% | - | - | - | 4.08% | - | - | 103.21% | 29.63% | 3.08% | 6.96% | 69.67% | - | - | - | - | - | 44.96% | 34.76% | 30.49% | 24.19% | - | - |
| Debt Issuance (Net) | -2M | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 852.96B | 0 | 0 | 0 | 0 | 0 | 0 | 58.99B | 2.45B | 0 | 0 | 0 | 0 |
| Share Repurchases | -232.79B | -233.12B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -706.75B | 0 | 0 | -188.75B | 0 |
| Other Financing | 346.33B | -250.17B | -1.04T | 588.52B | 409.08B | 165.88B | 37.31B | 106.13B | 63.19B | 39.14B | 66.76B | 160.91B | -71.99B | 249.13B | 223.88B | 144.38B | 474.02B | 72.83B | -200.66B | 582.16B | -67.63B | -208.76B | -193B | -190B | -32.12B |
| Net Change in Cash | -625.9B | -91.01B | -1.96T | 1.11T | 599.54B | 605.65B | 219.46B | 451.78B | -1.01T | -681.61B | -731.71B | 1.99T | -436.01B | 277.36B | 567.03B | -702.13B | 614.37B | 37.1B | -122.04B | -271.72B | 426.24B | -268.81B | -368.21B | 55.74B | -306.46B |
| Exchange Rate Effect | -113.09B | 111.6B | 106.38B | -2.18B | 32.9B | 51.72B | -38.03B | -37.69B | 21.1B | -70.4B | 31.08B | 24.25B | -6.55B | -36.4B | -6.1B | 7.42B | -4.51B | 16.36B | 39.09B | 28.28B | -2B | 22.98B | -29.76B | 0 | 0 |
| Cash at Beginning | 2.35T | 2.33T | 4.34T | 3.23T | 2.64T | 2.03T | 1.81T | 1.36T | 2.37T | 3.05T | 3.78T | 1.8T | 2.23T | 1.95T | 1.39T | 2.09T | 1.49T | 1.45T | 1.57T | 1.85T | 1.33T | 1.66T | 1.98T | 2.09T | 2.3T |
| Cash at End | 1.98T | 2.24T | 2.38T | 4.34T | 3.23T | 2.64T | 2.03T | 1.81T | 1.36T | 2.37T | 3.05T | 3.78T | 1.8T | 2.23T | 1.95T | 1.39T | 2.1T | 1.49T | 1.45T | 1.58T | 1.76T | 1.39T | 1.61T | 2.15T | 2T |
| Free Cash Flow | 5.17T | 5.14T | 1.66T | -12.4T | -35.9T | -8.31T | -193.19B | -6.02T | -5.7T | -1.43T | 4.37T | 2.81T | -2.57T | -7.44T | -7.6T | -6.51T | -5.24T | -5.76T | -7.32T | -1.56T | 256.7B | 830.42B | 1.8T | 1.58T | 2.1T |
| FCF Growth % | 255.66% | 209.61% | 113.38% | 65.45% | -332.15% | -4200.62% | 96.79% | -5.6% | -298.43% | -132.74% | 55.68% | 209.14% | 65.47% | 2.02% | -16.74% | -24.32% | 9.04% | 21.42% | -368.88% | -708.49% | -69.09% | -53.87% | 13.75% | -24.77% | - |
| FCF Margin % | 7.14% | 5.32% | 1.78% | -14.18% | -50.9% | -13.84% | -0.33% | -10.17% | -9.4% | -2.39% | 7.26% | 4.76% | -4.47% | -13.78% | -15.37% | -14.95% | -13.28% | -17.08% | -23.21% | -5.36% | 0.98% | 3.29% | 7.78% | 6.63% | 9.85% |
| FCF / Net Income % | 83.1% | 60.15% | 47.54% | 257.2% | 146.75% | 156.63% | -9.7% | 256.5% | 433.4% | -110.1% | 61.96% | 21.11% | -95.67% | -12404.64% | 239.93% | 193.1% | 4365.02% | 5950.57% | 247.82% | -109.44% | 12.09% | 34.76% | 64.65% | 64.96% | 69.03% |
Regulatory tariff recovery lag
As reported in the quarterly financial data, KEP’s capital expenditure frequently exceeds operating cash flow, with the CapEx-to-OCF ratio reaching as high as 169.2% in 2023Q4, illustrating the heavy reliance on external financing to sustain the massive infrastructure requirements of the national grid and nuclear generation assets.
The persistent trend of CapEx exceeding operating cash flow suggests that the company is in a perpetual state of capital reinvestment that the current tariff structure struggles to self-fund. This structural deficit implies that KEP remains highly sensitive to the cost of capital, as it must continuously tap debt markets to bridge the gap between infrastructure deployment and regulatory cost recovery.
Based on the provided cash flow statements, KEP consistently records a free cash flow deficit, with quarterly outflows reaching as high as 1.8T KRW in 2024Q2, which necessitates ongoing access to debt markets to maintain liquidity and fund the essential maintenance of the national energy infrastructure.
The recurring negative free cash flow indicates that the company's operational cash generation is insufficient to cover both its aggressive capital program and its debt service obligations. Investors should monitor whether the company's ability to issue debt remains unencumbered by its state-linked status, as any tightening in credit access could force a slowdown in critical grid investments.
According to the historical quarterly data, operating cash flow has fluctuated significantly from a low of 1.8T KRW to a high of 7.5T KRW, reflecting the inherent instability in cash generation caused by the regulatory lag in passing through volatile global fuel costs to the domestic consumer.
The wide variance in operating cash flow suggests that KEP’s cash quality is heavily tethered to political decisions regarding electricity pricing rather than pure operational efficiency. This lack of predictability complicates long-term financial planning and may indicate that the company is forced to absorb commodity price shocks on its own balance sheet during periods of high energy inflation.
Analysis of the cash flow statement suggests that the company's reported figures may mask significant unfunded liabilities, as the persistent gap between net income and operating cash flow indicates that a substantial portion of earnings remains tied up in unrecovered fuel costs and regulatory receivables.
The disconnect between accounting profits and actual cash inflows warrants further investigation into the true state of the company's working capital. It appears that the regulatory framework may be deferring the recognition of cash-based recovery, which could lead to future liquidity constraints if the government continues to prioritize inflation control over the financial health of the utility.
Quick answers to the most common questions about buying KEP stock.
Korea Electric Power Corporation (KEP) generated $21.16T in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Korea Electric Power Corporation (KEP) generated $5.14T in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Korea Electric Power Corporation (KEP) spent $16.13T on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Korea Electric Power Corporation (KEP) returned $219.72B to shareholders via cash dividends and spent $233.12B on share repurchases. This shows the company's commitment to returning capital to its equity investors.