1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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
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

8. 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

9. 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

10. 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

11. 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, at December 31, 1999 11

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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
(F)
Average tariff (KRW/kWh)
10.4% -0.7% 4.5%
Kwh Sold (billions) 200, , , ,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

21. 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

22. 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