1. Investor Presentation
Strictly Confidential
Korea Western Power
Investor Presentation
July 2016

2. Disclaimer
This presentation material is being presented to you solely for your information only and may not be taken away by you and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
This presentation material does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities of Korea Western Power Co., Ltd. (“KOWEPO” or the “Company”) in the United States or any jurisdiction in which such offer or solicitation or sale would be unlawful. Securities may not be offered or sold within the United States or to U.S. persons absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder. Any public offering of securities to be made in the United States will be made by means of a prospectus, which will contain detailed information about the company making the offer and its management and financial statements. The Company does not intend to register any securities in the United States, and no public offering of securities will be made in the United States or in any other jurisdiction where such an offering is restricted or prohibited. Neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase securities in the context of the offering of securities, if any, should be made solely on the basis of information contained in a published prospectus or other offering circular issued by the Company in connection with such an offering.
This presentation material has been prepared by the Company, solely for the use at this presentation and has not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation material. Unless otherwise stated, the information presented or contained in this presentation material is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation material should not be construed as legal, tax, investment or other advice.
Certain information and statements made in this presentation contain “forward-looking statements”. Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “considering,” “depends,” “estimate,” “expect,” “intend,” “plan,” “planning,” “planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Company’s current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements.
Certain industry and market data in this presentation was obtained from various trade associations, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.
This communication is being distributed outside the United States solely to non-US persons as defined under Regulation S.

3. Table of Contents Section 1 Company Overview
Section 2 Regulatory Environment & Industry 2
Section 3 Operation Overview 3
Section 4 Financial Management 4
Appendix Financial Statements 5

4. Section 1
Company Overview

5. KOWEPO at a Glance Company Overview(1) KOWEPO’s Market Position(2)
Company Name
Korea Western Power Co. Ltd.
Establishment Date
April 2, 2001 (spun off from KEPCO)
Ownership
100% owned by KEPCO (51% owned by the Korean government)
Assets
KRW 9,249 bn
Sales
KRW 1,250 bn
Capacity of Equipment
9,322 MW, 15 Power plants with 61 units
Electricity Sales
12,409 GWh
Credit Rating
Aa2 Stable (Moody’s) / AA- Stable (Fitch)
Market Share by Generation Capacity
(Unit : MW)
Generation Capacity by Fuel Type(3)
Total Generation Capacity: 98,795 MW
Market Share by Sales Volume
(Unit : GWh) *
* Others: Taean, Gunsan, Samryangjin, Sejong Solar, Taean Hydro, Youngam Solar, etc
As of 1Q 2016, Coal, B.C. Oil and LNG accounts for 43%, 15% and 42%, respectively in terms of operating generation capacity
Total Electricity Sales: 132,041 GWh
(1) Source: Company data (as of 1Q 2016)
(2) Source: FSS, DART filing (as of 1Q 2016)
(3) Source: Company data (as of 1Q 2016) Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle”

6. KOWEPO’s credit ratings is on par with the Republic of Korea
Rating Upgrade to Aa2 (Moody’s) and AA- (Fitch)
Improved operating performance and closer government oversight drive upgrade. The upgrade reflects...improving operating performance and the Korean government’s (Aa3 stable) increased oversight of the integrated electric utility’s financial health under its public institution financial management plans...
Profits, cash flow and debt metrics will strengthen. We expect KEPCO’s funds from operations (FFO)/debt on a consolidated basis will rise to 13%-16% over the next one to two years from 9.7% at year-end 2013, while its EBITDA margin will rise above 23% from 18%. The improvement will come from the commissioning of new coal and nuclear power plants and lower costs for imported fuel. KEPCO’s financial profile should also benefit from its rationalization of capital expenditures, sales of non-core assets and cost reductions.
Upgrade reflects the government’s strengthening commitment through increased oversight. We believe the Korean government would provide timely support to KEPCO if the utility’s viability were at risk, given the latter’s strategically important position as the country’s sole integrated utility and dominant power generator. The government’s strengthened commitment to KEPCO, together with the positive momentum on the utility’s baseline credit assessment (BCA), results in an Aa3 rating, which is five notches above the BCA.
We see little risk of major reforms that would change the structure of the country’s power sector during the next two to three years. We expect KEPCO to retain its 100% ownership of the gencos, because the government will likely strengthen the competitiveness of Korea’s power sector by encouraging KEPCO and its gencos to boost their operating efficiency, rather than by privatizing the gencos. In addition, the gencos’ operational integration with KEPCO will remain intact, because KEPCO will remain the sole buyer for the electricity the gencos generate owing to its near monopoly in Korea’s transmission and distribution market.
KOWEPO's Aa2 issuer rating reflects its full ownership by and close operational integration with KEPCO…
KOWEPO's close operational relationship with and full ownership by its parent, KEPCO, are key factors that affect its credit quality.
We see little risk of major reforms that could change the structure of the country's power sector at least over the next two to three years, because the government intends to maintain tight ownership and control over the important industry…
The gencos will likely continue to operate under a cost pool pricing system, where power generating companies can secure funds to cover fuel and operating costs and a part of maintenance capex over at least the next 1-2 years.
Aa2
Aa3
(as of Dec 21, 2015)
Fitch Ratings has affirmed the ratings on KEPCO and its six fully-owned generation companies (gencos)…
KEPCO has strong operational and strategic ties to the state and its ratings are equalized with those of South Korea (AA-/Stable) as per Fitch’s parent-subsidiary linkage methodology. Similarly, the ratings of the six gencos are equalized with those of KEPCO due to the strong linkages between them.
AA- A+
(as of Jul 3, 2013)
KOWEPO’s credit ratings is on par with the Republic of Korea

7. Investment Highlights
Cost-efficient operations
Significant market share in the domestic power supply market in terms of capacity and sales volume
Long-term contracts with raw material suppliers to minimize cost volatility
Designated as “Market-oriented Public Enterprise” – direct government oversight with practically no privatization concerns
Power consumption under constant growth with electricity tariffs still low
Application of the 100% fuel cost pass-through pricing mechanism
Continuous cash flows from operations - EBITDA(1) : KRW468bn - EBITDA Margin: 37.4%
Highest rating with competitive financials compared to other quasi-sovereign peers
Balanced and flexible debt portfolio
Effective Operations
Solid Credit and Financial Profile
Moody’s upgraded KOWEPO’s ratings to Aa2 in December 2015 – in line with the Republic of Korea and a few other government-related entities
Fitch’s ratings of AA- also reflects strong credit profile of KOWEPO
Aa2 rated Issuer on Par with Korea
Supportive Regulatory / Industry Dynamics
EBITDA = Earnings before interest expense, income taxes, depreciation and amortization, as of 1Q 2016
Source: DART filing (as of 1Q 2016)

8. Regulatory Environment & Industry
Section 2
Regulatory Environment & Industry

9. Government Vehicle as Korea’s Power Generator
Restructuring & Privatization Overview
Domestic Power Industry Structure
Industry Restructuring
(Unit: KRW trillion)
KEPCO’s generating assets were divided into six Gencos on April 2, 2001
KEPCO remains the sole transmission and distribution company
Public
Corporation Act
Electricity Business Law
Basic Plan for Energy Development
Environmental Policy Law
Privatization of Gencos Suspended
Transmission & Distribution
Holding 100% Ownership of Gencos
KEPCO
Korean Government
Assets: 175.3
Revenues: 58.9
Privatization plan for KEPCO and its Gencos was effectively suspended in July 2008
51% Ownership
Market Oriented Public Enterprise
In 2011, the Gencos have been designated as market oriented public enterprises by the government to create a more efficient management structure and enhance their competitiveness
100% Ownership
Gencos
83.3% market share of sales volume
Assets: 9.2
Revenues: 4.2
Assets:
Revenues:
Assets: 9.4
Revenues: 5.0
Assets: 8.1
Revenues: 4.0
Assets: 9.3
Revenues: 4.3
Assets: 8.9
Revenues: 4.1
Government’s Plan to IPO
KOWEPO
KHNP
KOSEP
KOMIPO
KOSPO
EWP
Ministry of Strategy and Finance announced on June 14th 2016, that a total of 20~30% of shares in eight energy public enterprises to be listed starting in the first half of 2017, which will put those companies under market watch and eventually improve their financial soundness
The government plans on retaining majority ownership and control for the gencos to serve the public good services
Details of IPO have not been announced yet
Thermal &
Renewable
Nuclear & Hydro
Thermal &
Renewable
Thermal &
Renewable
Thermal &
Renewable
Thermal &
Renewable
9.3% Sales Volume Share
Source: DART filing (as of 2015)

10. Consistent Growth in Power Consumption
Electricity Demand Projections (2015 – 2029)
Avg Expected Consumption Growth Rate: 2.1%
Avg Consumption Growth Rate: 4.1%
The government plans on preparing for the nation’s continuous increase in power consumption
Source: The Seventh Basic Plan of Long Term Electricity Supply and Demand, July 2015 by Ministry of Trade, Industry and Energy

11. Electricity Pricing Mechanism
Power Pricing Mechanism (Power Price = CP + EP)
Capacity Payment (CP): Fixed fee received to compensate for cost not covered by variable cost; CP is determined annually and is paid to each generation company for the amount of available generation capacity
Energy Price (EP): Variable cost + [System marginal price – Variable cost] x Adjusted coefficient
System Marginal Price (SMP): represents the power market price (KRW/kwh) payment made on a trading hourly basis to the company’s supplied electricity (most expensive plant price where power demand and supply meet)
Application of The Adjusted Coefficient of System Marginal Price (“SMP”)
KOWEPO can pass through 100% of its fuel cost through the energy price
Electricity Generation Cost Evaluation Committee annually determines The Adjusted Coefficient
Adjusted Coefficient was readjusted with slight increase, which became effective in January 2016
Power Price Comparison
Price type
Price
Remarks
Capacity Payment
(CP)
KRW 7.60/kwh
CP can be adjusted in accordance with region, season and time ’12: KRW 7.73/kwh  ’13: KRW 7.80/kwh  ’14: KRW 7.69/kwh  ’15: KRW 7.46/kwh  ’16: KRW 7.60/kwh (as of January 2016)
Energy Price
(EP)
[Max {(SMP-Fuel Cost), 0} x
The Adjusted Coefficient
+ Fuel Cost]
Adjusted Coefficient (effective to Jan 2016 from July 2015)
Nuclear : (←0.6368)
Coal : (←0.5416)
Domestic Coal : (←0.4860)
Oil, LNG, etc.: (←1.0000)
Electricity Pricing Mechanism allows us to pass 100% of the fuel cost to the electricity price The Adjusted Coefficient of SMP achieves financial balance among KEPCO and Gencos
Source: Company data
Source: Korea Power Exchange Website

12. Section 3
Operation Overview

13. Location of Plant Complex
Power Plant Facilities Overview
Power Plants Portfolio(1)
Power Plant Facilities in Operation
As of 1Q 2016, Coal, B.C. Oil and LNG accounts for 43%, 15%, and 42%, respectively, in terms of operating generation capacity
KOWEPO operates 61 generation units with total generation capacity of 9,322MW
Location of Plant Complex
Power Plant
Type
Fuel Type
Units
Capacity
Capacity Factor (%)
Avg age of Units (yr)
(MW)
Taean
Thermal
Bituminous 8
4,000.0
96.7
15.6
Solar - 2
0.7
12.7
5.3
Small Hydro 1
2.2
22.4
8.6
Pyeongtaek
BC Oil 4
1,400.0
69.6
34.4
0.5
10.7
1.3
Combined Cycle
LNG
1,348.5
38.0
9.4
Seoincheon 16
1,800.0
14.5
23.8
Fuel Cell
11.2
83.8
1.5
Gunsan 3
718.4
39.0
5.9
0.3
10.8
5.8
Samryangjin
3.0
14.3
8.3
Sejong 5
5.0
3.8
Gyeonggi 7
2.5
14.1
3.2
Yeongam
13.3
14.2
Hwasun
Wind
16.0
22.1
0.2
TOTAL 61
9,322
63.4 
18.3
Coal
LNG
BC Oil
Hydro
Seoincheon
Solar
Seoul & Gyeonggi-do
Fuel Cell
Pyeongtaek
Taean
Sejong
Gunsan
Samryangjin
Youngam
Source: Company data (as of 1Q 2016)
Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle”

14. Strong Operating Capacity
Installed Capacity of Gencos (1Q 2016)(1)
Expected Generation Capacity(2)
Base Load
Non-base Load
Base Load
Non-base Load
KOWEPO plans on expanding generation capacity while maintaining a well-balanced power production portfolio
Note: Base Load = Anthracite and Bituminous Coal. Non Base Load = Oil, LNG, Gas, Mini-hydro plants and Others
(1) Source: Company data (as of 1Q 2016)
(2) Source: The Seventh Basic Plan of Long Term Electricity Supply and Demand (July 2015) and on-going plans as of 2015YE; excluding units scheduled to be shut down

15. Cost Efficiency Fuel Cost by Type Fuel Contract Fuel Cost Composition
Coal
LNG
Fuel Cost Composition
Major Suppliers of Coal
Total: 3,315 kilotons
Source: Company data (as of 1Q 2016)

16. New Business 15 Domestic Power Plant Type Generation Capacity
Construction Period
Remarks
New Plant
Taean #9, #10
Thermal
2,100MW (1,050MW x2)
October 2012
~Apr 2017
Profit generation via utilizing state-of-the-art high-capacity generator
Facility using most economical coal
Taean IGCC
Coal Gasification
380MW
November 2011
~July 2016
Integrated gasification combined cycle
Clean energy generated from coal; meets the Renewable Portfolio Standard (“RPS”)
Obtained the know-how in planning and building 380MW-level IGCC
Taean #9, #10 Solar
Solar
1.8MW
December ~May 2016
On-water Solar equipment
In line with the New Renewable Energy policy
Taean #2 Hydro
Hydro
5MW
September 2016
~October 2018
Maximum utilization of effluence
Construction has not been initiated (as of 1Q 2016)
Seoincheon Fuel Cell 2nd
Fuel Cell
5MW (455KW x11)
October 2015
~April 2016
Fuel Cell plant
Follows New Renewable Energy plan and accomplishes RPS goal
Jangheung
Wind
20MW
~September 2017
In line with Low Carbon, Green Growth policy driven by the Korean government
In line with KOWEPO’s plan in securing energy sources that meet RPS
Plans to install ESS in relations to the wind plant to further gain RPS-compliant energy sources
Equity Investment
Shin-Pyeongtaek
Combined Cycle
950MW
~November 2019
Stable power source for the Seoul Metropolitan Area
State-of-the-art combined cycle LNG power plant with large capacity
Source: Company data (as of 1Q 2016) 15 15

17. New Business 16 Overseas Power Plant Type Generation Capacity
Construction Period
Remarks
Equity Investment
Maharashtra (india)
C/C
388MW
February 2012
~June 2016
Consortium Members: 40% from KOWEPO (Korea), 51% from PPIL (India), and 9% from minority shareholders
Build, Own, and Operate
Period for the business: 25 years after the completion
Xe-Namnoi
(Laos)
Hydro
410MW
November 2013
~February 2019
Consortium Members: 25% from KOWEPO (Korea), 26% from SK E&C (Korea), 25% from Ratchaburi (Thailand), 24% from LHSE (Laos)
Build, Own, Transfer(KOWEPO to be in charge of operation and maintenance)
Project Financing; Completed in November 2013
PPA contract with Thailand and Laos (Thailand/Laos power supply construction)
Undergoing construction (Rate of process: 45%)
Source: Company data 16 16

18. Capital Expenditure Plan
Capital Expenditure Schedule
As large-scale construction investments are scheduled to be completed in 2016, CAPEX is expected to fall from As KOWEPO seeks to find future growth engine and expand renewable power generation facilities, CAPEX is scheduled to pick up from 2018
Source: Company data (as of 3Q 2015 from mid & long-term financial forecast)
*CAPEX related to non-renewable conventional energy sources

19. Section 4
Financial Management

20. Capital Structure 19 Key Financials Overview (1Q 2016)
Historical Capital Structure Trend
Assets
Total Assets: KRW 9,249 bn
Non-Current Assets/Total Assets: 88.8%
Liabilities
Total Liabilities: KRW 5,544 bn
Total Debt: KRW 4,694 bn
Total Liabilities/Total Equity: 149.6%
Shareholders
Equity
Total Equity: KRW 3,705 bn (wholly owned by KEPCO)
Sales
(Quarterly Figures)
Revenue: KRW 1,250 bn
Net Income: KRW 267 bn
Net Income / Revenue: 21.4%
EBITDA
(Quarterly Figures)
EBITDA: KRW 468 bn
EBITDA / Revenue: 37.4%
Source: DART filing (as of Q 2016) 19 19

21. Financial Profitability
Operating Income
Profit for the Period
EBITDA
EBITDA Margin
Source: DART filings (as of Q 2016)

22. Financial Stability EBITDA to Interest Expense(1) Debt(2) to EBITDA
Debt to Capitalization(3)
FFO(4) to Debt
(1) Interest Expense includes capitalized interest expense
(2) Debt = Borrowings + Debentures (Short Term & Long Term)
(3) Capitalization = Debt + Total Equity
FFO = Funds From Operations
Source: DART filings (as of Q 2016)

23. Financial Performance Comparison (Public Corp)
EBITDA to Interest Expense
Debt to EBITDA
Negative
Negative
Debt to Capitalization
Total Liabilities to Total Equity
Source: Annual Reports, DART filings (2015YE)

24. Debt Profile Debt Maturity Profile(1) Local vs. Foreign Currency(2)
Fixed vs. Floating Rate Debt(2)(3)
Source: Company data (as of 1Q 2016)
(1) Note: Debt consists of the sum of debentures (excluding amortization of discount) and long-term borrowings (including current position)
(2) Note: Foreign currency debt portion is based on the net amount swapped into KRW

25. Debt Reduction Policy KOWEPO’s Plans to Downscale Debt Guideline
Reduce over KRW 1.5 trillion of debt by (30% of KRW 5 trillion which is the increased debt amount from 2012 to 2017)
Self-effort
Our target self-effort ratio of 148% in 2017 will enable KOWEPO to exceed the guideline by KRW billion by end of 2017
KOWEPO’s Plans to Downscale Debt
(Unit: KRW billion)
Type of Debt Amount
2014
2015
2016
2017
Initial Outlook
5,555.6
6,587.0
7,076.1
7,750.4
Government Guideline
4,674.3
5,396.3
5,738.6
6,210.7
Revised Target set by KOWEPO -
6,011.4
5,948.2
Source: Company data (as of 1Q 2016), Mid to Long-term Financial Forecast as of September, 2015
Note: Total Liabilities / Total Shareholders’ Equity

26. Appendix
Financial Statement

27. Financial Statements Income Statement (Unit: KRW billion) 2013 2014
2015
1Q 2015
1Q 2016
Sales
5,761
4,844
4,224
1,374
1,250
Cost of Sales
5,576
4,558
3,653
1,146
870
Gross Profit
185
286
571
228
380
SG&A 65 77 82 11 22
Operating Net Income
120
209
489
216
357
Other Non-Operating Income
3.1
3.5
3.7
0.9
Other Non-Operating Expenses
1.4
0.4
0.1
Other Income
10.4
1.5
3.2
Financial Income 35 89
125 16 30
Financial Expense 94
151
193 32 47
Income (loss) from associates and joint ventures
8.9
(13)
3.9
1.0
Profit Before Income Tax 75
163
412
206
346
Income Tax Expense
(20)
112 44 79
Profit for the Period 95
133
300
162
267
Decimal Difference adjusted
Note: Financial data based on consolidated K-IFRS accounting standard

28. Financial Statements Balance Sheet (Unit: KRW billion) 2013 2014 2015
1Q 2016
Assets
Current Assets
1,343
994
985
1,032
Non-Current Assets
5,811
7,226
8,223
8,217
Total Assets
7,154
8,220
9,208
9,249
Liabilities
Current Liabilities
684
924
1,370
1,009
Non-Current Liabilities
3,329
4,087
4,352
4,535
Total Liabilities
4,013
5,012
5,722
5,544
Stockholders’ Equity
Capital Stock
1,192
Retained Earnings
1,864
1,974
2,245
2,472
Others 85 42 49 41
Total Stockholders’ Equity
3,141
3,208
3,486
3,705
Total Liabilities and Stockholders’ Equity
Decimal difference adjusted
Note: Financial data based on consolidated K-IFRS accounting standard

29. Financial Statements Cash Flow Statement (Unit: KRW billion) 2013 2014
2015
1Q 2015
1Q 2016
Cash Flows from Operating Activities
Profit for the Period 95
133
300
162
267
Non-cash Income & Expenses
487
569
690
174
234
Changes in Assets and Liabilities
(134)
(43)
(220) 8 35
Other, Net
(73)
(53)
(100)
(28)
Net Cash Provided by Operating Activities
375
606
670
316
493
Cash Flows from Investing Activities
Acquisition of property, plant and equipment
(1,606)
(1,788)
(1,582)
(515)
(132) 17 91 25
(5)
(2)
Net Cash Used in Investing Activities
(1,589)
(1,697)
(1,557)
(520)
Cash Flows from Financing Activities
Net Cash Used in Financing Activities
1,311
655
917
389
(257)
Cash and Cash Equiv. at End of Period
503 75
106
259
207
Decimal difference adjusted
Note: Financial data based on consolidated K-IFRS accounting standard

30. Thank you