  We study the correlation between $\epe$ and $\Delta I=1/2$ rule in the
framework of non-linear $\sigma$ model including scalar mesons. The matrix
elements of QCD and Electroweak (EW) penguin operators are computed within
factorization approximation. Using the matrix elements and changing the scalar
meson mass, we find that there is correlation between $\epe$ and $\Delta I=1/2$
amplitude. However, it is difficult to explain both $\epe$ and $\Delta I=1/2$
amplitude simultaneously. In order to be compatible with $\epe$, typically,
about half of $\Delta I=1/2$ amplitude can be explained at most. Our result
suggests there may be substantial non-factorizable contribution to CP
conserving $K \to \pi \pi$ amplitudes.
