1. Investor Presentation April 2006 Korea Western Power Co., Ltd.

2. 2 Disclaimer This presentation material has been prepared by Korea Western Power Co., Ltd. (“KOWEPO” or the “Company”) solely for information use during its presentation. The information contained in these materials has not been independently verified. No representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information and opinions in these materials are provided as at the date of this presentation and are subject to change without notice. None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of these materials. Financial data in this presentation is given on a non-consolidated basis and financial statement data (where applicable) is prepared under Korean generally accepted accounting principles. This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the management of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which the Company will operate in the future. We caution you not to place undue reliance on the forward-looking statements, which speak as of the date of this presentation. We are not under any obligation to update these forward-looking statements

3. 3 Investment Highlights High correlation between electricity demand growth and Korean GDP growth Cost Based Pool System expected to continue Pricing structure allows Gencos to fully pass fuel cost to KEPCO Six Gencos account for over 90% of Korean power consumption Stable revenue and cash flows Strong debt servicing ability Solid capital structure to support capital expenditure Maintaining sound credit worthiness Additional capacity as required by the Basic Plan supports credit profile Diversified and secured sources of key raw materials Highly sophisticated and experienced management Prospering Economy & Solid Sovereign Credit Favorable Industry Conditions & Regulatory Environment Strong Operations & Experienced Management Solid Financials & Robust Capital Structure Strong and sustainable economic growth Strong external liquidity position, dynamic & diverse export sector Sound financial markets & improving financial sector Eased political tension with North Korea through diplomatic means Positive credit rating momentum KEPCO : Korea Electric Power Corp. GENCO : Generation Company

4. 4 Strong Mitigating Factors to Credit Concerns Capex requirement to fund capacity expansion Strong debt servicing ability due to stable, recurring revenue and cash flows Strong balance sheet to support business expansion Increasing revenue led by stable growth of electricity demand Favorable terms of financing from the Government-funded loans Business risk under the deregulation plan Delay of the privatization plan of Gencos KOWEPO is one of the best performers among Korean thermal Gencos Performance expected to be further enhanced once the new generating units at Taean and Cheongsong become operational Ability to fully pass fuel cost to KEPCO under the current cost based pool system Exposure to high raw material costs Good operating track record of power plants with low historical incidents and diligent plant maintenance Continuing investment on maintenance to improve reliability of generation facilities Exposure to potential generation unit breakdown

5. 5 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Concluding Remarks

6. 6 Introduction to KOWEPO Inception April 2, 2001 ( Spun off from KEPCO) Credit Ratings A2 (stable) / A- (stable) vs. Korea sovereign A3 / A Generation Capacity 8,880 MW (Operation: 7,280 MW, Construction: 1,600 MW) Total Assets 2005: KRW 3,262 bn (USD 3.22 bn) 2004: KRW 2,976 bn (USD 2.85 bn) Ownership 100% owned by KEPCO (54% owned by Korean Gov’t) Total Revenue 2005: KRW 2,227 bn (USD 2.20 bn) 2004: KRW 2,058 bn (USD 1.97 bn) Net Income 2005: KRW 180.6 bn (USD 178.3 mln) 2004: KRW 161.0 bn (USD 154.2 mln) (KRW/USD FX rate : 1013.00 as of 30 th Dec. 2005, 1043.80 as of 31 st Dec. 2004)

7. 7 Power Generation Portfolio ClassificationTaeanPyeongtaek T/PPyeongtaek C/CSeoincheonSamrangjin(Cheongsong) Generation Units6 (2)45162(2) Fuel typeBituminousBC OilLNG Pumped Storage(Pumped Storage) Capacity (MW)3,000 (1,000)1,4004801,800600(600) Total Capacity (MW)7,280 (1,600) Location of Power Plants With our nationwide footprint, KOWEPO has unique strategic importance to Korea Generation Portfolio Seoincheon LNG Pyeongtaek BC Oil / LNG Taean Coal Samrangjin Pumped Storage Metropolitan areaMajor industrial / chemical complex Cheongsong (Under construction) Seoincheon Samrangjin Taean Plant Pyeongtaek Plant Cheongsong Plant ( ) under construction

8. 8 Management Philosophy Vision 2007 Goals Management Policy (3C) 7 Key Strategies Great Work Place Employees The Leader of Generation Companies in 21st century Brand No. 1 Clean Genco Business Revenue: 2.5 trillion Growth Top 5 Most Preferred Company Corp. Image Realization of ethical management Reinforcement of core competencies Implementation of harmonious management Aim for Value-oriented management Maximize core competencies Create future growth engine Enhance organization dynamics Satisfy employees’ needs Establish clean brand image Enhance social contribution CLEAN COMPETITIVE COMPANION Well respected company preferred by the young generation

9. 9 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Investment Summary

10. 10 Strong External Liquidity Position Continuing Current Account Surplus Falling External Debt (as a % of GDP) Increasing Foreign Reserves FX Reserves / Short-Term Debt Source : GEIC USD billion Times (%) Source : MOFE

11. 11 Dynamic & Diverse Export Sector Export Breakdown by Country 2005 Increasing Exports & Imports Export Breakdown by Commodity 2005 Source: CEIC Source: MOFE USD billion

12. 12 Solid Economy with Positive Rating Momentum Potential for Further UpgradesRecent Rating Agency Actions Moody’sS&PFitch EffectiveMar ’02Jul ’05Oct ’05 RatingA3AA+ OutlookStable Strong external liquidity position Dynamic export sector, resilient growth, strong medium-term growth prospects Korea Ratings History by Major Rating Agencies AA+ AA- A BBB+ BBB- BB B+ B- Aa1 Aa3 A2 Baa1 Baa3 Ba2 B1 B3

13. 13 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Concluding Remarks

14. 14 Constant Growth in Power Consumption Source: “Statistics of Electric Power in Korea”, KEPCO / Bank of Korea CAGR of 8.3% (1993-2005) Historical Domestic Power Consumption vs. GDP/Power Consumption Growth Rate Power consumption has continued to rise on the back of strong economic growth

15. 15 Reserve Margin Analysis Source: Statistics of Electric Power in Korea, KEPCO, 2005 Adequate Reserve Margins are Required to Sustain Economic Growth in the Future MW

16. 16 Power Industry Restructuring Process 19992000200220012003200420052007200820062009 MOCIE is reconsidering its planned industry restructuring and has decided to halt the distribution sector’s separation plan MOCIE announces restructuring plan for power industry Incorporation of generation companies Cost based pool bidding mechanism Expiration of vesting contracts Retail competition Introduction of vesting contracts for gencos Spin off distribution sector from KEPCO Wholesale competition Initiation of KOSEP privatization Plan to separate KEPCO’s distribution sector is halted Determined that discos will operate as independent divisions within KEPCO IPO of KOSEP is delayed Implementation of TWBP(Two Way Bidding Pool) is suspended HOLD The power industry restructuring plan has faced some obstacles, and the implementation of future plans has been suspended MOCIE : Ministry of Commerce, Industry and Energy KOSEP : Korea South East Power Company

17. 17 Power Price Determination System Price determination process for each market is different : Base load market : CP(Capacity Payment) + BLMP(Base Load Marginal Price) Non-base load market : CP + SMP(System Marginal Price) Korea generation market is adopting CBP(Cost Based Pool) system Electric power market is divided into two different segments : Base load market and Non-base load market Base Load Market Non-Base Load Market Nuclear and Coal Power Plant CBP system secures KOWEPO’s profits from rises in raw material and generation costs LNG, Oil and Hydro Power Plant

18. 18 Cost Based Pool System Base Load Price : CP + BLMP Capacity PaymentBLMP CP includes construction cost and operation cost of standard coal-fired power plants CP is reimbursed to Gencos by KEPCO regardless of the operation Nuclear Coal Oil / LNG Base Load Power Demand Price Capacity Non-Base Load In case fuel price/kWh is at or above KRW 18.95 - Fuel costs incurred by each generators are fully compensated In case fuel price/kWh is below KRW 18.95 - Fuel cost is set at the highest fuel cost among generators which is to be dispatched Capacity PaymentSMP CP includes construction cost and operation cost of peak-load power plants CP is reimbursed to Gencos by KEPCO regardless of the operation Fuel cost is set at the highest fuel cost among generators which is to be dispatched Non-Base Load Price : CP + SMP

19. 19 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Concluding Remarks

20. 20 Operation Overview Base load, intermediate load and peak load account for 41%, 19% and 40% respectively in terms of generation capacity 90% of capacity is located in or near the Seoul and Gyeonggi metropolitan areas  Seoul and Gyunggi metropolitan areas comprises approx. 40% of total national demand Taean Pyeongtaek Gunsan Cheongsong (Under Construction) Coal LNG BC Oil Pumped Storage Seoincheon Samrangjin Seoul & Gyunggi Metropolitan Areas Generation Capacity by Type of Plant (2005) Location of Plant Complex Pyeongtaek C/C (480 MW) Seoincheon C/C (1,800 MW) Samrangjin P/S (600 MW) Cheongsong P/S (600 MW) 3,480MW Pyeongtaek T/P (1,400 MW) 1,400MW Taean T/P (3,000 MW) 4,000MW Taean T/P (1,000 MW) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Base LoadIntermediate LoadPeak Load In OperationUnder Construction Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle”, P/S denotes “Pumped Storage”

21. 21 Market Share (FY 2005) Generation Capacity Electricity Sales Total Generation Capacity 62,257 MW Total Electricity Sales 349,276 GWh

22. 22 Strong Operational Efficiency (FY 2005) Thermal Efficiency Utilization Rate Thermal EfficiencyUtilization Rate

23. 23 Long-Term Supply Contracts Bituminous SupplierCountry Contract Amount (1,000 ton/year) Terms BHP-Billiton - Bayswater Australia 500 ‘ 95.1 - ‘ 07.12 CentennialAustralia 500‘ 04.6 - ‘ 07.6 Xstrata-NCAAustralia1,100‘ 01.4 - ‘ 06.3 RIO Tinto – Blair AtholAustralia 500‘ 02.9 - ‘ 06.3 EnshamAustralia 500‘ 04.1 - ‘ 08.12 PeabodyAustralia 240‘ 05.1 - ‘ 07.12 Australia - Sub-total 3,340 (48%) SCIEGCChina1,000‘ 99.4 - ‘ 06.3 CCIECChina500’ 96.1 - ‘ 06.3 SHENHUAChina960‘ 01.7 - ‘ 07.6 China - Sub-total 2,460 (35%) IndomincoIndonesia500‘ 03.10 - ‘ 06.12 KidecoIndonesia300‘ 04.1 - ‘ 05.12 ABKIndonesia200‘ 04.10 - ‘ 07.12 Tanito HarumIndonesia200‘ 05.1 - ‘ 07.12 Indonesia - Sub-total 1,200 (17%) 7,000 (100%) Fuel Oil TypeSupplierContract amountTerms B.C oil (Sulfa 2.5%)GS Caltex 187,000 ㎘ ‘ 06. 1 – 6 Kerosene for boilerGS Caltex 2,837 ㎘ ‘ 06. 1 – 6 LNG Supplier Contract amount (1,000 ton/year) Terms LNGKOGAS1,267 ‘ 86 ～ ‘ 06 (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 Note: Long-Term Supply Contracts as of YE2005 Bituminous Coal Contracts

24. 24 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Concluding Remarks

25. 25 Capital Structure (FY 2005) Assets  KRW 3,262 billion –Fixed Assets/Total Assets Ratio : 88.6%  KRW 1,064 billion –Liability-to-Equity Ratio : 48.4%  KRW 2,198 billion –Stake is Wholly Owned by KEPCO  EBIT : KRW 256 billion -Net Income : KRW 181 billion Liabilities Shareholders’ Equity Profitability  KRW 2,227 billion Revenue Capital Structure KRW billion

26. 26 Financial Performance (FY 2005) Revenue KRW billion Net Income Times Coverage Leverage KRW billion

27. 27 KRW billion Strong Competitive Position (FY 2005) Revenue EBIT Net Income KRW billion EBIT MarginEBITDA Int. Coverage Leverage Times % %

28. 28 CAPEX Requirements Capital Expenditure Schedule KRW billion 574 293 503 222

29. 29 Debt Repayment Schedule Currency Distribution Type of Instrument Total LT Debt : KRW 711.1 billion Debt Profile and Strategy (FY 2005) KRW billion Floating vs Fixed

30. 30 Financial Management AdequateCommitted Credit Lines  Credit lines Overdraft Commitment from NACF total KRW 50 billion KRW credit lines provided : KRW 100 billion from Citibank, KRW 100 billion from KEB, KRW 50 billion from Woori bank USD credit lines provided : US$ 40 million from BNP Paribas, US$ 20 million from SC First Bank  Guarantees for letter of credit payment totaling USD 326 million from various banks  Guarantee for a credit payment related to customs duties totaling KRW 4 billion from KEB  Loans for the construction and capacity expansion of electricity facilities of KRW 13 billion at an interest rate of 4% (as of FY 2005)  Loans to support the purchase of overseas mineral resources of KRW 37 billion at an interest rate of 2.25% (as of FY 2005) Low Interest Loans from the Government  KOWEPO operates two committees dedicated to risk management: Risk Management Committee and FX Risk Management Committee Risk Management Committee oversees four areas : finance, fuel, electricity bidding and generation facilities FX Risk Management Committee manages FX risk exposure and determines internal FX guidelines  The committees meet on a quarterly basis to make key decisions on the issues discussed RiskManagement

31. 31 1.Company Overview 2.Prospering Economy and Solid Sovereign Credit 3.Power Industry and Regulatory Environment 4.Operations 5.Financial Management 6.Concluding Remarks

32. 32 Concluding Remarks Favorable Industry Conditions & Regulatory Environment Strong Operations & Experienced Management Solid Financials & Robust Capital Structure Prospering Economy & Solid Sovereign Credit