Korea Electric Power Corporation Investor Presentation Good morning ladies and gentlemen, on behalf of Korea Electric Power Corporation, I would like to thank you for attending our presentation. My name is Myung Whan Kim, General Manager of the International Finance Department of KEPCO Korea Electric Power Corporation Investor Presentation October 2000

Contents 1. Overview of KEPCO 2. Industry restructuring In our presentation today I would like to begin with an overview of KEPCO followed by an update on the restructuring for the electricity industry in Korea. We will also provide you with the recent economic trend in Korea and management achievements as well as financial and investment highlights. 1. Overview of KEPCO 2. Industry restructuring 3. Recent trends and Management Achievements 4. Financial and investment highlights 2

KEPCO a key player in the Korean Economy KEPCO is the vertically integrated electricity company in Korea and a key player in the Korean economy. It is the only company engaged in the transmission and distribution of electricity in Korea and owns about 94% of the total electricity generating capacity. KEPCO’s installed capacity is approximately 44,000MW. At the end of 1999, KEPCO had total assets of 57 billion US dollars and total revenue of 14 billion US dollars. Installed Capacity 44,316 MW 100% 94% Transmission Distribution Generation Total Assets US$57 billion Total Revenues US$14 billion 3

One of the largest listed companies on KOSPI KEPCO is one of the largest non-financial companies in Korea and the fourth largest listed company on the Korea Stock Exchange. KEPCO accounts for 8.3% of the Korea Composite Stock Price Index and almost 14% of the Morgan Stanley Composite Korea Free Index. Currently KEPCO has a market capitalization of approximately 16.7 billion US dollars. Market Capitalization US$16.7 billion Source: KSE, as of 29 September 2000 8.3% of KOSPI 14.1% of MSCI Korea Free Source: KSE, as of 29 September 2000 Source: MSCI, as of 29 September 2000 4

Leading utility in Asia KEPCO compares favorably with peer utility companies in Asia. It is one of the leading utilities in Asia by revenue, sales volume, and productivity. . . . by Revenue . . . by Electricity sales . . . by Productivity n/a ** * CLP: 12-month ended Sept 1999, Tenaga: 12-month ended Aug 1999 ** Not applicable to Meralco, which is a power distribution company 5

Contents 1. Overview 2. Industry restructuring 3. Recent trends Now let me discuss the electricity industry restructuring in Korea and its impact on KEPCO. 1. Overview 2. Industry restructuring 3. Recent trends 4. Financial and investment highlights 6

Industry restructuring objectives and timetable In January 1999 the Ministry of Commerce, Industry and Energy announced the Restructuring Plan for the electricity industry in Korea. The government has three clear objectives for the restructuring process. They are: Introducing competition and increase efficiency. Ensuring a long term stable electricity supply. Promoting consumer choice and convenience. The Electricity Industry Restructuring plan outlines a long-term goal of privatizing the industry in four phases. The restructuring envisions an unbundling of KEPCO and introduction of competition into the industry. Objectives Introduce competition and increase efficiency Ensure long term stable electricity supply Promoting of consumer choice and convenience Timetable Phase I Preparation Phase II Generation Competition Phase III Wholesale Competition Phase IV Retail Competition 1999.1 2000.11 2001 2003 2009 Release of Restructuring Plan Passage of Restructuring Bills GENCOs Setup & Cost-Based Pool System Begins DISCOs Setup & Two-Way Bidding System Begins 7

Industry Restructuring Plan The first stage of industry restructuring will be to unbundle KEPCO’s generation operations into five non-nuclear generation subsidiaries and one nuclear subsidiary. In Phase 2, competition will be introduced in the generation sector and the five non-nuclear subsidiaries will be gradually sold to the private sector through a combination of IPOs and trade sales. The nuclear generation company will remain wholly-owned by KEPCO. KEPCO will continue to maintain a monopoly over all transmission and distribution. In Phases 3 and 4, the distribution sector will also be gradually unbundled in a similar fashion to that of generation. Finally in Phase 4 KEPCO will remain the monopoly transmission company with one nuclear subsidiary. 2001 GENCOs N G Electricity Pool D Transmission 2003 GENCOs Generation Transmission Distribution N G Electricity Pool 8

New Tariff Setting Mechanism As we mentioned before, during phase two, generation competition known as the cost-based generation pool will be introduced. Under the pool system, generating companies will be bidding based on variable cost, which is primarily fuel cost. In addition, generating companies will be paid a fixed capacity payment. From year 2003 onwards, the cost based pool will be transitioned to a price based two-way bidding pool. Under this pool system, each generation company would enter bids to supply power, with the price of each segment determined by the highest clearing bid that satisfies demand. On the other hand, T&D tariffs will continued to be regulated. The new tariff structure will be further refined during phase two and thereafter. Pool Pricing System 1999 2001 2003 Bundled tariffs based on return-on-rate-formula Generation Price The cost based Generation pool Generation Price Two-way bidding Generation Pool T&D Price Bundled tariffs based on return-on-rate-formula + Regulated unbundled tariff Price cap RPI - X Regulation for efficiency 9

Significant proceeds from asset sales The sale of non-core assets is an important element of our restructuring plan. In 1999 we divested our investments in the telecom sector. This year we sold our Anyang and Buchon plants, a 10.6% stake in Powercomm and a 11.5% stake in Hanjung. The sale of Korea District Heating Corporation and Korea Gas together with the remaining stakes in Powercomm and Hanjung will take place over the next two years. From 2001 onwards we will commence the sale of our non-nuclear GENCOs. The sale of these assets will result in significant capital gains for KEPCO. The proceeds of these sales will help to pay down debt and to reduce new financing requirements. (Unit: billions of Korean won) (Unit: billions of Korean won) 10

Sale of Powercomm Powercomm Is Korea’s Second Largest Telecom Network KEPCO’s Powercomm asset represents a large part of the total value of our non-core assets. Powercomm is the second largest telecom network in Korea after Korea Telecom. After the successful sale of a 10.6% stake in July this year, we envision a further 55.4% sale by the end of this year through a combination of a trade sale and an IPO on an overseas stock exchange. The remaining 34% stake is planned to be sold in 2001 through a combination of a 10% KOSDAQ listing and further private and/or public sales. Using the first sale stake as a benchmark we expect to realize 4.8 trillion Won from the complete Powercomm sale. Powercomm Is Korea’s Second Largest Telecom Network Network Properties OPGW 7,973 km Fiber Optic Cable 34,838 km Hybrid Fiber Coaxial Cable 38,0173 km 1999 revenue: US$133.0 million Equity: US$654.8 million Financial Summary Sales Plan 10.5% sold in July 2000 55.5% to be sold by end of 2000 34.0% to be sold in 2001 KRW/US$ Exchange Rate of KRW1,145.40 at December 31, 1999 11

Industry Restructuring – Benefits for KEPCO As a result of the restructuring, KEPCO will receive many positive benefits, including retention of the Transmission and Distribution business which is highly profitable and requires low investment enhanced transparency of the tariff setting process reduction of outstanding debt through asset sales and reduced capex requirements resulting from the sale of capital intensive generating subsidiaries and eventually distribution subsidiaries Retain T&D business with the highest profitability and low investment requirements Enhance transparency of the tariff setting process Reduce its outstanding debt through planned generation asset sales and reduced capex 12

Contents 1. Overview 2. Industry restructuring 3. Recent trends I will now talk about recent economic trends in Korea, and how KEPCO has benefited from these. Also I will highlight recent management achievements. 1. Overview 2. Industry restructuring 3. Recent trends 4. Financial and investment highlights 13

Direct beneficiary of Korean economic rebound The Korean economy has rebounded strongly from the financial crisis. In 1999 GDP grew by 10.7% making Korea the fastest growing economy in Asia and the OECD. This year GDP is expected to grow by 8.5% according to IMF projection, which will again make Korea one of the fastest growing economies in the world. KEPCO is a direct beneficiary of the Korean economic rebound. Electricity consumption growth is highly correlated with GDP growth since the industrial and commercial sectors take up close to 80% of the electricity demand in Korea. KEPCO expects electricity demand growth of 12% this year and 9.8% in 2001. Korea – Real GDP Growth (%) Electricity Consumption by Segment Source: Bank of Korea Korea – GDP Growth vs. Electricity Consumption Growth GDP Growth (1995 Price) Source: EIA, CEIC 14

Favorable macroeconomic environment The dramatic improvement of macroeconomic variables will have a direct favourable impact on KEPCO’s operating result: The steady decline in corporate bond yields will significantly decrease interest expenses on Won debt and new foreign currency debt Low inflation will help KEPCO to keep operating cost under control Also KEPCO has benefited from a strengthening of the Korean Won since 1998 through lower fuel costs, lower foreign currency debt payments and FX gains Domestic Interest Rate KEPCO 2003 Tightening of Spreads Source: Datastream Source: Datastream Low Inflation Rate Source: Bank of Korea Stable Korean Won Source: Datastream 15

Strong case for higher tariffs Although the tariff rate for KEPCO is one of the lowest in the world, it has received tariff increases during difficult economic times, implying strong indirect support from the government. Therefore, we are expecting another tariff hike in the 4th quarter this year based on two key facts: First, last year, the actual rate of return was 5.7%, far below the official government target of 9%. We require a tariff hike of approximately 15%. And second, in order to compensate for the recent increase in the oil price, a tariff hike is required. In addition, the government is conscious of the fact that, prior to restructuring, KEPCO has to be financially strong enough to avoid the need for tariff increases following deregulation. % of Tariff increase Return on rate 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 1995 1996 1997 1998 1999 4.2% 0.0% 5.9% 6.5% 5.3% % of Tariff increase Return on rate 9.8% 5.4% 3.2% 5.0% 5.7% 16

Fuel Mix to Maximize Efficiency In order to minimize the adverse inpact of oil price hike, we have maintained diversified fuel sources and flexibility to change our fuel mix in accordance with market demands and financial conditions. As a result, generation from Oil and LNG declined from 38% in 1997 to 18%, in 1999. Subsequently, our main generation sources, nuclear and coal, have increased from 59% in 1997 to 80% in 1999. Reliance on oil and LNG will be maintained below 20% this year. Fuel mix – 1999 Fuel mix – 1997 17

Recent management achievements KEPCO’s management has taken forward-looking and positive steps to ensure KEPCO’s continued improvement in operations, cost-control measures, and financial position. For example, in addition to the fuel mix, we have decreased labor costs by reducing nearly 5,000 employees in 1998 and 1999, and have also reduced the purchase budget by 50.8 billion Won. Further, KEPCO has drastically improved its financial position by both decreasing capital investments and foreign currency liabilities. Optimised generation mix Reduced labour cost Improved purchase system Strengthened cost control Reduced capex Reduced foreign currency liability Diversified foreign currency liability Reduced financial expenses through refinancing Dec 1998 Dec 1999 Sep 2000 Improved financial position 18

Contents 1. Overview 2. Industry restructuring 3. Recent trends Let me now conculde with our recent financial performance and KEPCO investment highlights. 1. Overview 2. Industry restructuring 3. Recent trends 4. Financial and investment highlights 19

Financials and valuation Our 1999 results show a 10.7% revenue growth, due to a strong rebound in sales volume, which also increased by 10.7%. In 1999, EBITDA was 7 trillion won, a 20% increase over 1998, and net income was 1.5 trillion won, a 33% increase over 1998. In our forecast, we expect our revenues to grow by 14.0%, EBITDA by 21.0%, and net income by 137.5% in the year 2000. We believe that our valuation is highly attractive from an investor’s point of view. KEPCO’s EV to EBITDA multiple is lower than those of its regional peers. KEPCO also trades at attractive multiples on a EV to sales and PE basis. Summary of financial results 1997 1998 1999 2000(F) Average tariff (KRW/kWh) 65.3 72.1 71.6 74.8 10.4% -0.7% 4.5% Kwh Sold (billions) 200,784 193,470 214,215 240,000 -3.6% 10.7% 12.0% Total revenue (billion won) 13,216 14,228 15,751 17,953 7.7% 10.7% 14.0% EBITDA (billion won) 4,830 5,825 7,011 8,484 20.6% 20.4% 21.08% Interest Incurred (billion won) 1,583 2,386 2,240 2,431 50.7% -6.1% 8.5% Total debt (billion won) 22,691 23,812 25,002 25,791 4.9% 5.0% 2.9% Net income (billion won) 561 1,102 1,468 3,487 96.0% 33.0% 137.5% * 2000 Net income projection assumed the sale of 66% of Powercomm at 6.4x book value EV/EBITDA – 1999 EV/Sales – 1999 P/E Ratio – 1999 * 15-month result ending 31 December 1999, due to change in financial year end 20

Investment Highlights Finally, let me conclude the presentation by highlighting KEPCO’s investment case: First, KEPCO is and will remain a dominant player in the Korean economy and electricity industry. Second, KEPCO will benefit from the industry restructuring through a more transparent regulatory framework and tariff regime, reduced debt level and improvement of risk profile. This will lead to better earnings and cashflow. Third, we will realize capital gains from asset sales which will help to improve our financial profile. Fourth, KEPCO’s strategy is to focus on its core business and we are continuously rationalizing our operations Finally, KEPCO is a beneficiary of improvement in the Korean economy. We expect our revenues and net profits to improve substantially. Key element of the Korean economy and stock markets Enhanced prospects from industry restructuring Proceeds from the sale of non-core assets are attractive Continue rationalizing operations and focusing on core business Operating performance is directly benefiting from Korean economic rebound 21

Korea Electric Power Corporation Investor Presentation Thank you again for your attention. Now, we’ll open the Q & A session. Korea Electric Power Corporation Investor Presentation October 2000