Korea Electric Power Plunges 10.09% Amid Policy Shifts

On June 10, 2025, Korea Electric Power experienced a significant drop of 10.09% in pre-market trading, reflecting a notable shift in investor sentiment towards the company.

Korea Electric Power's recent market performance can be attributed to several factors, including the evolving energy policies under the new administration. President Lee Jae-myung's administration has emphasized a market-oriented approach to energy, focusing on renewables such as solar and wind power. This shift has raised concerns among investors about the future of nuclear energy in Korea, a sector in which Korea Electric Power has significant investments.

Historically, Korea has been proactive in nuclear development, with liberal-leaning presidents Kim Dae-jung and Roh Moo-hyun approving multiple reactors during their terms. However, the Moon Jae-in administration's phaseout policy led to a halt in the nuclear industry, resulting in substantial financial losses. The current administration's cautious stance on nuclear power, despite growing calls for a balanced energy mix, has further complicated the outlook for Korea Electric Power.

Internationally, the nuclear industry is experiencing a resurgence, with the U.S. government recently passing the ADVANCE Act to accelerate the deployment of advanced nuclear technologies. This global trend contrasts with Korea's domestic policies, creating a challenging environment for Korea Electric Power. The company's future will depend on how it navigates these policy shifts and adapts to the changing energy landscape.