According to Zhidao Finance APP, stocks of korea electric power (KEP.US) listed in Seoul, South Korea, recorded the largest drop since the beginning of last year. The company had not increased electricity prices before, which may put it under greater financial pressure. Data shows that on Monday, korea electric power's stocks listed in Seoul fell by 8.9% at one point. If it closes at this decline, it will mark the largest single-day drop since January 2023.

Korea electric power stated that it would freeze fuel adjustment prices during the quarter ending in December. These prices are part of consumer expenses and depend on the import costs of henry hub natural gas and coal. Despite the surge in imported coal and natural gas costs, korea electric power did not significantly raise electricity prices due to the South Korean government's choice to protect consumers from rising living costs. This led to the company recording a record operating loss in 2022.

Korea electric power's decision not to raise electricity prices goes against what the company's CEO Kim Dong-cheol emphasized in a previous interview about the necessity of normalizing electricity prices in South Korea. So far this year, korea electric power has not increased electricity prices.

Although the costs of imported coal and natural gas have been declining since 2022, the South Korean government has not changed fuel adjustment prices. While this has indeed provided some assistance to korea electric power, the company needs to further raise electricity prices to offset losses from the past few years. Otherwise, the company may be forced to implement restructuring measures including asset sales, potentially jeopardizing South Korea's efforts to decarbonize its electric grid.