1. Korea Western Power Co., Ltd. Rating Review Presentation to Standard & Poor’s 26 July 2007

2. 1 Rating Review Presentation to Standard & Poor’s Company Overview Operations Financial Management Concluding Remarks Table of Contents

3. 2 Rating Review Presentation to Standard & Poor’s Introduction to KOWEPO 1. Applied FX rate : KRW 920/USD 2. 1H 2007 financial figures are provisional figures InceptionInception  Spun off from KEPCO in April 2, 2001 OwnershipOwnership  100% owned by KEPCO (54% owned by Korean Government) Generation Capacity  9,585.3 MW (Operation: 8,380.1 MW, Under Construction: 1,205.2 MW) Total Assets  1H 2007: KRW 3,720 bn (USD 4.1 bn)  FY2006: KRW 3,708 bn (USD 4.0 bn)  1H 2007: KRW 3,720 bn (USD 4.1 bn)  FY2006: KRW 3,708 bn (USD 4.0 bn) Total Revenue  1H 2007: KRW 1,535 bn (USD 1.7 bn)  FY2006: KRW 2,424 bn (USD 2.6 bn)  1H 2007: KRW 1,535 bn (USD 1.7 bn)  FY2006: KRW 2,424 bn (USD 2.6 bn) Net Income  1H 2007: KRW 118 bn (USD 128.8 mn)  FY2006: KRW 160 bn (USD 173.9 mn)  1H 2007: KRW 118 bn (USD 128.8 mn)  FY2006: KRW 160 bn (USD 173.9 mn) Credit Ratings  S&P : A- (stable) / Moody’s : A1 (stable)

4. 3 Rating Review Presentation to Standard & Poor’s Operation Overview Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle”, P/S denotes “Pumped Storage”  Base load, intermediate load, and peak load account for 42%, 17% and 41% respectively in terms of generation capacity in operation  Over 85% of capacity is located in or near the Seoul and Gyeonggi metropolitan areas – Seoul and Gyeonggi metropolitan areas comprise approximately 40% of total national demand Generation Capacity by Type of Plant (1H 2007) 1,400MW Taean T/P (3,500 MW) Pyeongtaek T/P (1,400 MW) 4,180MW 4,000MW Taean T/P (500 MW) Seoincheon C/C (1,800 MW) Samrangjin P/S (600 MW) Cheongsong P/S (600 MW) Pyeongtaek C/C (480 MW) Location of Plant Complex Taean Pyeongtaek Gunsan (under construction) Cheongsong Coal LNG BC Oil Pumped Storage Seoincheon Samrangjin Seoul Metropolitan Area Gunsan C/C (700 MW)

5. 4 Rating Review Presentation to Standard & Poor’s Power Plant Facilities in Operation PlantType Fuel Type Number of Units Unit Capacity (MW) Total Capacity (MW) Year of Establishment Taean (Chungnam) ThermalBituminous75003,500 #1:’95.6, #2:’95.12, #3:’97.3, #4:’97.8 #5:’01.10, #6:’02.5, #7:’07.2 Solar-10.1 ’05.8 Pyeongtaek (Gyeonggi) ThermalBC Oil43501,400#1:’80.4, #2:’80.6, #3:’83.5, #4:’83.8 Combined Cycle LNG 4141 80 160 320 160 GT:’92.6 ST:’94.6 Seoincheon (Incheon) Combined Cycle LNG 8888 150 75 1,200 600 GT:’92.6 ST:’92.11 Samrangjin (Gyeongnam) Pumped Storage -2300600#1:’85.11, #2:’85.12 Cheongsong (Gyeongbuk) Pumped Storage -2300600#1:’06.9, #2:’06.12 Total378,380.1  KOWEPO operates 37 generation units with total generation capacity of 8,380.1MW in 5 different sites

6. 5 Rating Review Presentation to Standard & Poor’s Strategy – Develop Growth Engine PlantType Generation capacity (MW) Expected completion of Construction Remarks Under Construction Taean #8Thermal500Aug 2007- GunsanCombined Cycle700Nov 2009- New Plants Taean IGCC (Integrated Gasification Combined Cycle) 300Sep 2015- Equity Investments GarorimTidal Power480Dec 2012  Consortium with Posco E&C, Daewoo E&C, Lotte E&C  Project financing  KOWEPO to be in charge of operation and maintenance GodeokCombined Cycle700June 2011  Consortium with SK E&C, SK E&S  Project financing  KOWEPO to be in charge of operation and maintenance YangjuCombined Cycle1,400Dec 2013  Consortium with Daelim Industry  Project financing  KOWEPO to be in charge of operation and maintenance  KOWEPO plans to maintain its leading market position and superior operating performance promoting growth with new plant constructions

7. 6 Rating Review Presentation to Standard & Poor’s Strategy – Diversify Revenue Sources PlantType Generation capacity (MW) Remarks New Business Community Energy System -923Gcal/h  Plan to use Seoincheon C/C’s stream and waste heat  Consortium with Lotte E&C, Incheon City Gas and Kenertec  Expected to begin providing heat from Jan 2008 Overseas Project LaosHydro Power372  Consortium with SK E&C / Project financing  BOOT (Build, Own, Operate, Transfer)  MOU agreement between the government of Laos and domestic consortium  KOWEPO to be in charge of operation and maintenance Indonesia Thermal Power 400  Consortium with Hanwha and Koresia / Project financing  BOOT (Build, Own, Operate, Transfer)  MOU agreement between the government of Sumatra and Koresia  KOWEPO to be in charge of operation and maintenance New/Renewable Energy SamrangjinSolar Power3,000kW  Expected to complete construction in Dec. 2008 Taean Small Hydro Power 2,200kW  Expected to complete construction in Sep. 2007  KOWEPO will diversify its revenue sources by investing in new business, overseas project, and new/renewable energy

8. 7 Rating Review Presentation to Standard & Poor’s Company Overview Operations Financial Management Concluding Remarks Table of Contents

9. 8 Rating Review Presentation to Standard & Poor’s KOWEPO’s Market Position Sales Volume Market Share (1H 2007)Generation Capacity Market Share (1H 2007) Total Generation Capacity 66,673 MW Total Electricity Sales 183,259 GWh (MW) (GWh)

10. 9 Rating Review Presentation to Standard & Poor’s Operational Efficiency  Thermal efficiency and utilization rate have been relatively stable over the years.  In the 1H 2007, the utilization rate has substantially increased due to the completion of Taean #7 and the increased utilization rate of Pyeongtaek power plant Utilization RateThermal Efficiency

11. 10 Rating Review Presentation to Standard & Poor’s Long-Term Supply Contracts Bituminous SupplierCountry Contract Amount (1,000 ton/year) Terms XstrataAustralia1,100‘01.04 ~ ‘09.12 EnshamAustralia500‘04.01 ~ ‘08.12 PeabodyAustralia240‘05.01 ~ ‘07.12 CentennialAustralia500‘04.07 ~ ‘10.06 BHP-BillitonAustralia500‘95.01 ~ ‘07.12 Resouce PacificAustralia250‘07.01 ~ ‘09.12 FlameAustralia500‘07.01 ~ ‘09.12 ECMAustralia375‘07.01 ~ ‘09.12 Australia - Sub-total 3,965 (47%) SCIEGCChina1,000‘99.04 ~ ‘07.07 CCIECChina500‘96.01 ~ ‘07.07 SHENHUAChina960‘01.07 ~ ‘09.06 MinmetalsChina180‘06.04 ~ ‘09.03 China - Sub-total 2,640 (31%) Indominco Indonesia500‘03.10 ~ ‘09.12 ABK Indonesia500‘04.10 ~ ‘07.12 Tanito Harum Indonesia200‘05.01 ~ ‘07.12 Peabody Indonesia325‘06.04 ~ ‘09.03 ECM Indonesia300‘06.04 ~ ‘09.03 Indonesia - Sub-total 1,825 (22%) 8,430 (100%) Fuel Oil TypeSupplierContract amountTerms B.C oil (Sulfa 2.5%)SK Corp. 279,000 ㎘ ‘07.07 ~ 12 Kerosene for boilerSK Incheon Oil 3,511 ㎘ ‘07.07 ~ 12 LNGSupplier Contract amount (1,000 ton/year) Terms LNGKOGAS1,490‘07 – ‘26 (20year)  KOWEPO enters into long-term supply contracts to: – Control the costs of bituminous coal, oil and LNG amid the rising prices – Assure an adequate supply of the raw materials for a smooth operation Bituminous Coal Contracts

12. 11 Rating Review Presentation to Standard & Poor’s Company Overview Operations Financial Management Concluding Remarks Table of Contents

13. 12 Rating Review Presentation to Standard & Poor’s Capital Structure (1H 2007) Capital StructureAssetsAssets  KRW 3,720 billion – Fixed Assets/Total Assets Ratio : 89.4%  KRW 3,720 billion – Fixed Assets/Total Assets Ratio : 89.4% LiabilityLiability  KRW 1,351 billion – Liability-to-Equity Ratio : 57.0%  KRW 1,351 billion – Liability-to-Equity Ratio : 57.0% Shareholde rs’ Equity  KRW 2,369 billion – Stake is wholly owned by KEPCO  KRW 2,369 billion – Stake is wholly owned by KEPCO RevenueRevenue  KRW 1,535 billion EBITEBIT  KRW 177 billion – Net Income : KRW 118 billion  KRW 177 billion – Net Income : KRW 118 billion

14. 13 Rating Review Presentation to Standard & Poor’s Financial Performance  Sales revenue shows a stable growth rate since 2004  EBIT continues to remain stable since 2004 but in the second half of 2006, EBIT declined due to temporary price cut in CP of base load facilities  EBIT is expected to improve going forward due to the CBP market improvement and operation of Taean #7 and 8 EBITRevenue

15. 14 Rating Review Presentation to Standard & Poor’s Healthy Coverage and Leverage Ratio  Coverage ratios have been stable and relatively strong due to KOWEPO’s proactive debt restructuring efforts  KOWEPO has acquired the right to use connecting line to transmission facilities of KEPCO in 2007, in which KOWEPO is making installment payments to KEPCO for the usage of the facilities. However, it is fully compensated by capacity payment. Therefore, any increase in leverage ratio from this does not mean KOWEPO’s financial status deteriorates LeverageCoverage

16. 15 Rating Review Presentation to Standard & Poor’s Peer Comparison (FY2006) RevenueEBITNet Income EBIT MarginROELeverage

17. 16 Rating Review Presentation to Standard & Poor’s Debt Profile and Strategy  KOWEPO prefers long-term funding of at least 5 years as the plant construction usually takes around 5 years to complete  The company prefers to borrow 60% to 70% of its total debt in KRW and the remaining in foreign currencies  87% of KOWEPO’s debt carries fixed interest rate, while 13% is in floating rate  All of total debt is unsecured Type of Instrument (1H ‘07)Currency Distribution (1H ‘07)Debt Repayment Total Debt Profile : KRW 832.6 billion Repaid KRW182.5bn in the 1H 07 185.0

18. 17 Rating Review Presentation to Standard & Poor’s Company Overview Operations Financial Management Concluding Remarks Table of Contents

19. 18 Rating Review Presentation to Standard & Poor’s Concluding Remarks  Improving economic fundamentals with structural improvements in South Korea and eased political tensions from North Korea  Healthy operating environment provided by favourable industry conditions  Continued supportive regulatory frame work and the expected well-paced, gradual approach in industry restructuring  Maintains one of the leading positions in terms of Management Appraisal of Gencos by KEPCO.  Strong financial performance and debt servicing ability supported by stable, recurring revenue and cash flow  Robust capital structure and strong financial flexibility to support the capex plan