Fitch: Tax hike good for Kepco

Fitch Ratings commented that the South Korean government's plans to raise the electricity tariff should ease financial pressure for Korea Electric Power Corp. (Kepco), which is rated A+ with a stable view.

The tariff hike should help Kepco improve its profitability and stand-alone credit metrics in the short- to medium-term, Fitch said.

However, the pace of recovery could be slower than previously anticipated due to higher electricity demand and a greater proportion of power generation coming from gas-fired power plants, the agency said.

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