1. May 2003 Korea Western Power Co., Ltd. Presentation to S&P

2. 2 Agenda I.Power Industry Restructuring Plan II.Overview of Western Power III.Financial Overview

3. I. Power Industry Restructuring Update

4. 4 355,324 347,675 339,452 330,593 321,184 311,056 278,451 257,731 200,000 220,000 240,000 260,000 280,000 300,000 320,000 340,000 360,000 380,000 2001A 2002A 2003F 2004F 2005F 2006F 2007F 2008F 2009F 2010F (GWh) 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% (Growth rate) 299,983 288,591 Domestic consumption is expected to increase at a CAGR of 3.6 % Domestic consumption is expected to increase at a CAGR of 3.6 % Domestic Consumption Outlook CAGR: 3.6% Source: The 1 st Basic Plan of Long-Term Electricity Supply & Demand Sales Growth rate

5. 5 Projected Domestic Power Demand and Supply (2001A–2010F) Reserve Margin  Reserve margin is expected to increase steadily to 25% levels, peak demand and ending capacity with projected CAGR of 3.9 % and 4.8% respectively Source: The 1 st Basic Plan of Long-Term Electricity Supply & Demand 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2001A2002A2003F2004F2005F2006F2007F2008F2009F2010F 0% 5% 10% 15% 20% 25% 30% 35% 40% Peak DemandEnding CapacityReserve Margin (MW)

6. 6 Industry Restructuring Schedule Industry Restructuring Generation Transmission Distribution Phase I Preparation Phase II GenerationCompetition 4/2001 Phase III Wholesale Competition Phase IV RetailCompetition Announcement of Industry Restructuring Plan Announcement of Industry Restructuring Plan Passage of Restructuring Bills Passage of Restructuring Bills 1/1999 12/2000 Introduce competition to Discos Introduce competition to Discos Commence privatization of Gencos Commence privatization of Gencos Gencos, KPX and KEC Setup Gencos, KPX and KEC Setup Introduced Cost- Based Electricity Pool System Introduced Cost- Based Electricity Pool System 2002 Full competition Full competition KPX Transmission Distribution N GGGG N GGGG Transmission DDD D D D KPX Under review

7. II.Overview of Western Power

8. 8 April 2, 2001 1,581 7,946 MW (1) W 3,182 billion (US$2.65 billion) (2) W 2,013 billion (US$1.68 billion) (2) 36,216 GWh Established Number of Employees Generation Capacity Total Assets Power Sold Snapshot of Western Power (as of End of Dec. 02) Revenues (1)Includes Cheongsong #1, 2 (600MW) under construction (2)Adjusted FX rate of W1,200.4/US$ Power Plant Complex Taean, Pyeongtaek, Kunsan, Seoincheon, Samrangjin, Cheongsong (1)

9. 9 Western Power’s Management Strong management with a wealth of industry expertise Strong management with a wealth of industry expertiseIndividual Young-Cheol Lee Yoon-Tae Kim Young-Ki Park Jeong-Gook Han Position President & CEO Executive Auditor Senior Vice President Power Generation & Construction Division Senior Vice President General & Finance Division Experience  Head of International Intellectual Property Training Institute, National Institute of Professional Administration (2000~2001)  Various positions, Ministry of Trade, Industry and Energy (1989~1997)  Managing Director, Management Information System and Public Relation Division, KEPCO  Head of Uijeongbu and Incheon Branches, KEPCO  36 Years of Industry Experience  Managing Director, Power Generation Dept., Western Power and Samcheonpo T/P Plant Division, KEPCO  38 Years of Industry Experience  Senior Vice President, Western Power  Vice President, KEPCO  Managing Director of Samcheonpo, Boryeong T/P Plant Division, KEPCO T/P Plant Division, KEPCO  33 Years of Industry Experience Academic Qualification  BA, Seoul National University  MBA, Yonsei University  BA, Youngnam University  MBA, Hanyang University  BS, Yonsei University  BS, Hanyang University  PM (Project Management) Program, Soong Shil University

10. 10 Western Power’s Plant Complex Capacity 90% of capacity is located near the Seoul and Gyeonggi metropolitan areas 90% of capacity is located near the Seoul and Gyeonggi metropolitan areas Generation Capacity by Type of Plant Plant Complex Location Taean Pyeongtaek Kunsan Cheongsong (Under Construction) Coal LNG BC Oil Pumped Storage Seoincheon Samrangjin Seoul Metropolitan Area 0 1,000 2,000 2,500 3,000 3,500 MW Peak Load Under Construction In Operation Middle Load 1,500 Base Load Pyeongtaek C/C (480 MW) Seoincheon (1,800 MW) SamrangjinP/S (600 MW) CheongsongP/S 3,480MW Pyeongtaek (1,400 MW) 1,466MW Kunsan (66 MW) Taean#1~6 (3,000 MW) 3,000MW

11. 11 Western Power’s Plant Complexes Taean T/P (1) Pyeongtaek T/P Seoincheon C/C Kunsan T/P Pyeongtaek C/C Samrangjin P/S Capacity (MW) Capacity (MW) Load Type Load Type Main Fuel Main Fuel Efficiency (%) Utilization (%) 3,000 661,4001,800480600 6141652 BaseIntermediateIntermediatePeakPeakPeak BituminousAnthraciteB.C. OilLNGLNGP/S 39.5729.6537.9245.3041.53NA 87.863.349.647.719.411.5 4.634.320.610.49.617.1 # of Units # of Units Weighted Avg. Age * Additional capacity of 1,000MW will be added to Taean in the next several years

12. 12 Western Power’s Leadership in Power Generation Western Power has the leading market share in power sales among the five thermal generation companies Western Power has the leading market share in power sales among the five thermal generation companies Generating Capacity by Gencos As of End of 2002 Market Share of Power Sold, 2002 KHNP 30.2% 30.2% KEWESPO 13.9% Western Power 13.7% KOMIPO 13.0% KOSPO 10.7% KOSEPCO 10.3% Others 8.2% 69.8% KHNP 41.1% 41.1% KEWESPO 11.7% Western Power 12.9% KOMIPO 11.0% KOSPO 12.5% KOSEPCO 10.5% 58.9% Others 0.3%

13. 13 52.5% 72.7% 54.7% 63.4% 59.0% 0% 20% 40% 60% 80% Western Power KOSEPCOKOMIPOKOSPOKEWESPO Performance Comparison Amongst Gencos(2002) Utilization Levels Thermal Efficiency Ratios EBITDAEBIT 39.2% 41.9% 39.0%38.9% 40.2% 36% 38% 40% 42% 44% Western Power KOSEPCOKOMIPOKOSPOKEWESPO 673 637 674 621 706 0 600 650 700 750 Western Power KOSEPCOKOMIPOKOSPOKEWESPO (Won billions) 195 254 470 440 399 0 200 250 300 350 400 450 Western Power KOSEPCOKOMIPOKOSPOKEWESPO (Won billions)

14. III. Financial Overview

15. 15 Western Power’s Financial Overview Assets Assets  W 3,182 billion (US$ 2.65 billion) –Fixed Assets/Total Assets Ratio : 82.0%  W 1,452 billion (US$ 1.21 billion) –Debt-to-Capitalization Ratio : 39.5%  W 1,730 billion (US$ 1.44 billion) –Stake is Wholly Owned by KEPCO  Net Income : W 231 billion (US$ 192 million) –Net Margin : 11.5 % Liabilities Liabilities Sharehold ers’ Equity Sharehold ers’ Equity Profitability Profitability  W 2,013 billion (US$ 1.68 billion) –EBIT / EBITDA : W 399 / 706 billion Revenue Notes:Adjusted FX rate of W1,200.4/US$

16. 16 Western Power’s Key Financial Ratios Western Power has healthy debt service and interest coverage ratios Western Power has healthy debt service and interest coverage ratios 5.0x 7.5x 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x FY 01FY 02 EBITDA / Interest Coverage* Net Debt / Net Capitalization FFO / Interest Coverage* Net Debt / EBITDA * Interest including Capitalized Interest 3.9x 5.8x 3.5x 4.0x 4.5x 5.0x 5.5x FY 01FY 02 1.2x 2.9x 0.0x 1.0x 2.0x 3.0x 4.0x FY 01FY 02 44.6% 32.2% FY 01FY 02 0% 10% 20% 30% 40% 50%

17. 17 Western Power’s Key Financial Ratios Western Power has achieved improving profitability Western Power has achieved improving profitability 29.1% 15.7% 8.9% 35.1% 19.8% 11.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% EBITDA MarginEBIT MarginNet Margin FY 01FY 02 Profitability Ratios

18. 18 Western Power’s Capex Requirements 0 100 200 300 400 500 600 700 800 2003F2004F2005F2006F2007F2008F (Won billions) Capacity AdditionFacility Improvement 166.6 347.3 446.7 719.7 453.0 231.3 Source: Long-term financial projection(March 2003)

19. 19 Debt Maturity & Interest Rate Mix LT Debt Mix As of Dec. 2002 Interest Rate Mix As of Dec. 2002 Local Borrowings 6.6% Local Bonds 77.5% Floating36.1% Fixed63.9% 1,133 Won billion Overseas Bond 15.9% Maturities of Debt As of Dec. 2002 164 180 39 278 0 100 150 200 250 300 20032004200520062007 (Won billions) 2008 Bond LT Borrowing 180 294

20. Korea Western Power Co., Ltd.