SEOUL, KOREA - Samsung Securities said on September 19 that Korea Electric Power Corp. could earn higher profit than expected through the sale of its former main office site in Seoul's Gangnam and adjusted the target price upward to 53,000 won from 49,000 won.

 

On the previous day, the state-run electric utility announced that the Hyundai Motor consortium was selected as the final successful bidder by offering 10.55 trillion won. Given the appraisal value last year was 3.33 trillion won, this is more than three times higher.

 

Beom Su-jin, Samsung Securities analyst, said, "With the latest transaction, KEPCO could have one-time gain on disposition of tangible assets worth 8.5 trillion won. By the end of 2015 when the company takes all the payment of the transaction, the company's net profit will likely reach 8.8 trillion won." He added, "The recent windfall may be used to pay back KEPCO's debts and absorb future rate hike possibilities. But it is unlikely to lead to a rate cut."