Kepco has been sinking in losses. Last year, it incurred an operating loss of 2.2 trillion won ($1.9 billion) — an epic reversal from the 4.9 trillion won in profit in 2016. Its loss already reached 2.15 trillion won in the first half alone. Global rating agency Standard & Poor's has cut its debt rating to BBB- from BBB. Kim blamed oil prices for the swelling losses. But that cannot be entirely true. International oil prices have sharply dropped this year. In fact, the government slashed the tax for LNG-fueled power stations to 23 won per kilogram from 91.4 won per kilogram. The real reason for the utility firm's deteriorating income is the government's phase-out from nuclear energy. Kepco has to pay 8 trillion won due to its obligation to use renewable energy and other costs related to emissions this year, according to Kim. He was suggesting that if not for the government's rash phase-out and migration to renewables, Kepco would be in a better state.