1. February 2004 Korea Western Power Co., Ltd. Presentation to Standard & Poor’s

2. 2 Agenda I.Power Industry Overview II.Power Industry Restructuring in Korea III.Overview of Western Power IV.Financial Overview

3. I. Power Industry Overview

4. 4 Nationwide Power Consumption Historically, power consumption has grown faster than Korean GDP Historically, power consumption has grown faster than Korean GDP Steady increase in electricity consumption in recent years driven largely by strong industrial demand Steady increase in electricity consumption in recent years driven largely by strong industrial demand Source: Statistics of Electric Power in Korea, KEPCO, Bank of Korea Korean GDP and Domestic Power Consumption (1993–2003)

5. 5 Domestic Consumption Outlook Electricity consumption is expected to increase at a CAGR of 2.8% between 2003 and 2012 Electricity consumption is expected to increase at a CAGR of 2.8% between 2003 and 2012 Source: Electricity Supply & Demand Long-Term Basic Plan (2002), MOCIE CAGR: 2.8% Projected Domestic Power Demand (2003–2012F)

6. 6 Projected Domestic Power Demand and Supply (2001A–2010F) Reserve Margin  Reserve margin is expected to increase steadily to 25% levels, peak demand and generation capacity with projected CAGR of 3.9 % and 4.8% respectively Source: The 1 st Basic Plan of Long-Term Electricity Supply & Demand

7. II. Power Industry Restructuring in Korea

8. 8 Industry Restructuring Schedule Generation Transmission Distribution Phase I Preparation Phase II Generation Competition 200120042009 Phase III Wholesale Competition Phase IV Retail Competition Announcement of Industry Restructuring Plan Announcement of Industry Restructuring Plan Passage of Restructuring Bills Passage of Restructuring Bills 1999 2000 Introduction of Vesting Contracts Introduction of Vesting Contracts Introduce Price- Based Two-Way Bidding System Introduce Price- Based Two-Way Bidding System Commence Privatization of Gencos Commence Privatization of Gencos Gencos, KPX and KEC Setup Gencos, KPX and KEC Setup Cost-Based Electricity Pool System Introduced Cost-Based Electricity Pool System Introduced 2003 Full Competition Full Competition KPX Transmission Distribution N GGGG N GGGG Transmission DDD D D D KPX Establish Distribution Companies (Discos) Establish Distribution Companies (Discos) Under Review

9. 9 Preparation for KOSEPCO’s IPO, instead of a sale of controlling stake to a strategic investor, has been started Preparation for KOSEPCO’s IPO, instead of a sale of controlling stake to a strategic investor, has been started The privatization of the remaining Gencos will be determined after an evaluation of the KOSEPCO privatization The privatization of the remaining Gencos will be determined after an evaluation of the KOSEPCO privatization Electricity price is determined on a cost plus basis Electricity price is determined on a cost plus basis Intermediate step to prepare Gencos for wholesale competition Intermediate step to prepare Gencos for wholesale competition The proposed use of vesting contracts will minimize price volatility in the early stages of reform The proposed use of vesting contracts will minimize price volatility in the early stages of reform Vesting contracts would result in stable operating cash flows during the wholesale competition period Vesting contracts would result in stable operating cash flows during the wholesale competition period Privatization process has been reviewed... Cost Based Pool has been established... Introduction of Vesting Contracts is the next step... Industry Restructuring Initiatives & Progress Separating distribution assets is being reviewed... The plan of separating distribution assets is under discussion The plan of separating distribution assets is under discussion Mock operation will be conducted for a certain period before actual separation in order to avoid or reduce trial and errors Mock operation will be conducted for a certain period before actual separation in order to avoid or reduce trial and errors

10. III. Overview of Western Power

11. 11 1. Includes Taean #7, 8 (1,000MW) and Cheongsong #1, 2 (600MW) under construction 2. FX rate of W1,193/US$ as of Dec. 31, 2003 April 2, 2001 1,584 8,946 MW (1) W 3,038 billion (US$2.5 billion) (2) W 2,134 billion (US$1.8 billion) (2) 37,096 GWh Established Number of Employees Generation Capacity Total Assets (2003) Power Sold (2003) Snapshot of Western Power Revenues (2003) Power Plant Complex Taean, Pyeongtaek, Kunsan, Seoincheon, Samrangjin, Cheongsong (1) BBB+ by S&P, Outlook: Positive Credit Rating

12. 12 Western Power’s Management Strong management with a wealth of industry expertise Strong management with a wealth of industry expertise Individual Young-Cheol Lee Yoon-Tae Kim Gap-Jin Choi Jeong-Kooc Han Position President & CEO Executive Auditor Senior Vice President Power Generation & Construction Division Senior Vice President General & Finance Division Experience  Secret Service for the President of Korea for 26 years  Managing Director, Management Information System and Public Relation Division, KEPCO  Head of Uijeongbu and Incheon Branches, KEPCO  39 Years of Industry Experience  Managing Director, Power Generation Dept., Western Power and Samcheonpo T/P Plant Division, KEPCO  40 Years of Industry Experience  Senior Vice President, Western Power  Vice President, KEPCO  Managing Director of Samcheonpo, Boryeong T/P Plant Division, KEPCO T/P Plant Division, KEPCO  35 Years of Industry Experience Academic Qualification  Kwang-Joo Cheil High School  BA, Youngnam University  MBA, Hanyang University  BS, Yonsei University  AMP, Cornell University  BS, Hanyang University  PM (Project Management) Program, Soong Shil University

13. 13 Western Power’s Plant Complex Capacity 90% of capacity is located near the Seoul and Gyeonggi metropolitan areas 90% of capacity is located near the Seoul and Gyeonggi metropolitan areas Generation Capacity by Type of Plant Plant Complex Location Taean Pyeongtaek Kunsan Cheongsong (Under Construction) Coal LNG BC Oil Pumped Storage Seoincheon Samrangjin Seoul Metropolitan Area Pyeongtaek C/C (480 MW) Seoincheon (1,800 MW) Samrangjin P/S (600 MW) (600 MW) Cheongsong P/S (600 MW) 3,480MW Pyeongtaek (1,400 MW) 1,466MW Kunsan (1) (66 MW) Taean #1~6 (3,000 MW) 4,000MW Notes: As of Dec. 31, 2003 1. Kunsan (66MW) shut down in Jan. 2004 Taean (1000 MW)

14. 14 Western Power’s Plant Complexes Taean T/P Pyeongtaek T/P Seoincheon C/C Kunsan T/P (1) Pyeongtaek C/C Samrangjin P/S Capacity (MW) Capacity (MW) Load Type Load Type Main Fuel Main Fuel Efficiency (%) Utilization (%) # of Units # of Units Weighted Avg. Age Note:As of Dec. 31. 2003 1. Kunsan T/P shut down in Jan. 2004 3,000 66 661,4001,800480600 6141652 BaseIntermediateIntermediatePeakPeakPeak BituminousAnthracite B.C. Oil LNGLNGP/S 39.6530.3838.1445.3341.37N.A. 88.9074.7048.9045.3021.2011.30 5.635.321.611.410.618.1

15. IV. Financial Overview

16. 16 Western Power’s Financial Overview (2003) Assets  W 3,038 billion (US$2.5 billion) –Fixed Assets/Total Assets Ratio : 83.1%  W 1,050 billion (US$880 million) –Debt-to-Equity Ratio : 39.3%  W 1,988 billion (US$1.7 billion) –Stake is Wholly Owned by KEPCO  Net Income : W 253 billion (US$212 million) –Net Margin: 11.9% Liabilities Shareholders’ Equity Profitability  W 2,134 billion (US$1.8 billion) –EBIT / EBITDA : W 429 / 711 billion Revenue Notes:As of Dec. 31. 2003 FX rate of W1,193/US$ FX rate of W1,193/US$

17. 17 Western Power’s Financial Profile Western Power is one of the most profitable Korean gencos Western Power is one of the most profitable Korean gencos Western Power has reduced leverage in an effort to restructure unfavorable debt with strong cash flow Western Power has reduced leverage in an effort to restructure unfavorable debt with strong cash flow Revenue & EBITDA (2003) Total Liabilities / Equity (2003) Average: 60.9%

18. 18 Western Power’s Key Financial Ratios Western Power has achieved improving profitability Western Power has achieved improving profitability Note:FY 01 represents the period from Apr. 2, 2001 to Dec. 31, 2001 Net Margin EBIT Margin EBITDA Margin

19. 19 Western Power’s Key Credit Statistics Western Power has healthy debt service and interest coverage ratios Western Power has healthy debt service and interest coverage ratios Note:FY 01 represents the period from Apr. 2, 2001 to Dec. 31, 2001 Net Debt / EBITDA EBITDA Interest Coverage

20. 20 Western Power’s Capex Requirements Projected Capital Expenditure (2004–2008) Cheongsong plant is planned for completion in 2006 Cheongsong plant is planned for completion in 2006 Initiated construction of Taean project in Nov 2003, targeted for completion in 2008 Initiated construction of Taean project in Nov 2003, targeted for completion in 2008 459.8 747.6 663.3 425.9 367.1

21. 21 Western Power’s Debt Maturity Profile Western Power is prepaying debt to further reduce leverage and smoothen cash flow Western Power is prepaying debt to further reduce leverage and smoothen cash flow Before Restructuring After Restructuring

22. 22 Western Power’s Debt Profile US$ bond issuance in December 2002 diversified Western Power’s debt profile US$ bond issuance in December 2002 diversified Western Power’s debt profile Western Power’s target financing mix is 50% from internal retained earning and 50% from outside financing Western Power’s target financing mix is 50% from internal retained earning and 50% from outside financing Type of Interest Currency Distribution Type of Instrument Note: As of Dec. 31, 2003 Eurobond KEPCO Domestic Bond KDB Private Placement Bond Corporate Bond Floating

23. February 2004 Korea Western Power Co., Ltd. Presentation to Standard & Poor’s