Korea Electric Power Co. (KEPCO) saw its share price hit the highest level in 16 years, rising to 50,900 won per share on the Korea Stock Exchange at the end of trading on July 31.

Previously, the power company’s highest share price was 50,500 won on June 26, 1999. 

The state-run power company’s improved performance is reflected in the price of its shares. Net profit in the second quarter of this year hit 1.341 trillion won, up a whopping 600.7 percent year-on-year. Sales rose to 13.671 trillion won, up 6.1 percent year-on-year. The huge increase in net profit has been attributed to cuts in operating costs due to low crude oil prices. The company’s net profit amounted to 1.399 trillion won in 2014. It expects to post about the same net profit this year.

Since President Cho Hwan-eik took over the helm of the power company on Dec. 17, 2012, its share price stood at 28,650 won per share and rose 77.7 percent in two years and seven months, boosting the company’s market capitalization to 32.7 trillion won, which is an increase of 14.3 trillion won during the period. Foreign investors own 31.6 percent of total outstanding shares of the power company.

The new CEO continued to improve the operation of the giant power company since his arrival as the CEO, and turned the company around in 2013, ending the company’s deficits for the first time in five years. The company’s net profit rose to 1.399 trillion won in 2014 and is likely to end this year in the black, too, with similar net profit figures as those in the preceding year.

KEPCO has been working hard to find new growth engines in new energy industries and realize the Creative Economy, which is being pushed by the government, by building the base for such new industrial sectors as smart grids, micro-grids, energy storage equipment and battery-charging for new electric cars.

Since the company’s relocation to Gwangju, South Jeolla Province, at the end of last year, it has been working on building a “Korean Silicon Valley” around the city centered around energy companies under the name of “Bitkaram Energy Valley.”

KEPCO has also been working on building a global energy network linking 36 overseas operational units in 22 countries like the Philippines and the UAE. The aim is to secure 15 percent of its annual sales from its overseas operations by 2020 through diversification of its businesses and business locations.

Foreign investors reacted favorably to the power company’s new energy businesses and successful overseas operation under the new vision. As evidence,  foreign investors increased their share of KEPCO stocks as of July 31 to 31.6 percent of all outstanding shares this year from 23.6 percent in 2013. 

What has attracted foreign investors to increase their holdings been the low PER (Price Earning Ratio) compared to those of the top 20 listed firms. Kepco’s is 11 compared to those of the top 20 firms. That means KEPCO could be under valued by roughly 40 percent. 

A Korea Investment and Securities Co. securities analyst commented that KEPCO has been one of the few large listed firms that has done well this year, which securities investors including foreign investors, taking notice and buying more KEPCO shares.

KEPCO’s overseas activities, such as the construction of a nuke power plant in the UAE and the export of a micro-grid to Canada, among others, have been seen as the projects that will bring a large profit to the power company.

President Cho said he will continue to keep shareholder-friendly management and work to find new growth engines to make KEPCO a top global energy company in the near future.