KEPCO E&C Files Corporate Governance Report: Highlights High Dividend Policy and Governance Improvements

KEPCO E&C is a state-owned enterprise specializing in nuclear/thermal power plant design, with KEPCO holding 51% stake. 2025 consolidated revenue: KRW 518.8bn, operating profit: KRW 35.5bn, net income: KRW 85.3bn.
Shareholder return: Maintained dividend payout ratio above 60% for the past 3 years (60% in 2025, 65% in 2024), declared dividend of KRW 1,347 per share (yield 1.48%). Announced mid-term minimum shareholder return target and dividend roadmap.
Governance: Board composed of majority non-executive directors (6 out of 10), adopted cumulative voting and electronic voting, avoids peak shareholder meeting dates. Operates ESG Committee (5 members) and Management Strategy Innovation Committee (3 members).
Non-compliance: Did not provide 4-week advance notice of shareholder meetings, limited dividend predictability, all-male board (lack of gender diversity), absence of audit committee. Attributed to institutional constraints under the Public Institution Act.
Internal controls: Enterprise risk management, compliance system (ISO 37301 certified), internal accounting controls, and disclosure management. Full-time auditor (Yoon Sang-il) and independent audit department.
External audit: Shinhan Accounting Corp. (2024-2026) selected via audit committee, independence ensured, quarterly meetings without management.

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