The Korea Electric Power Research Institute (KEPRI) has been developing planar solid oxide fuel cells (SOFCs) and power systems for combined heat and power (CHP) units. The R&D work includes solid oxide fuel cell (SOFC) materials investigation, design and fabrication of single cells and stacks, and kW class SOFC CHP system development. Anode supported cells composed of Ni-YSZ/FL/YSZ/LSCF were enlarged up to $15{ imes}15;cm^2$ and stacks were manufactured using $10{ imes}10;cm^2$ cells and metallic interconnects such as ferritic stainless steel. The first-generation system had a 37-cell stack and an autothermal reformer for use with city gas. The system showed maximum stack power of about $1.3;kW_{e,DC}$ and was able to recover heat of $0.57{sim}1.2;kW_{th}$ depending on loaded current by making hot water. The second-generation system was composed of an improved 48-cell stack and a prereformer (or steam reformer). The thermal management subsystem design including heat exchangers and insulators was also improved. The second-generation system was successfully operated without any external heat source. Under self-sustainable operation conditions, the stack power was about $1.3;kW_{e,DC}$ with hydrogen and $1.2;kW_{e,DC}$ with city. The system also recuperated heat of about $1.1;kW_{th}$ by making hot water. Recently KEPRI manufactured a 2kW class SOFC stack and a system by scaling up the second-generation 1kW system and will develop a 5kW class CHP system by 2010.