SEOUL, KOREA - Korea Electric Power Corp. expects the sales of its land in Samseong-dong in Seoul to contribute to reducing its debt ratio by 20 percentage points next year.
After Hyundai Motor Group won the bid to acquire the land at the price of 10.55 trillion won, a KEPCO official said in a press conference that this bidding was aimed at reducing the state-run electric utility’s debt ratio.
KEPCO’s debt-to-equity ratio surged to 145 percent this year from 136 percent last year.Against this backdrop, if Hyundai Motor Group completes the payment of 10.55 trillion won by September 2016 and the proceeds are entirely used to repay KEPCO’s debts, KEPCO could reduce its debt ratio to about 125 percent.
With the result of the bidding, KEPCO also said that the sales of the land are now free from any dispute which could arise by selling it at a giveaway price.
