H. Yoo
Research expert covering South Korea
Public enterprises in South Korea are considered to be attractive workplaces for some students and job seekers due to the inherent stability that a government-backed company would entail. Among such companies, Korea Electric Power Corporation (KEPCO) is a noteworthy entity, with the company being successful enough to be featured on the Fortune Global 500 ranking. Affiliated with the South Korean Ministry of Trade, Industry, and Energy, KEPCO is the main distributor of electricity throughout South Korea. The company employs more than 23 thousand workers and has six subsidiaries focusing on energy generation.
Subsidiaries of KEPCO
The combined output of KEPCO’s subsidiaries accounts for the majority of power generation in South Korea. In particular, Korea Hydro & Nuclear Power (KHNP) boasts a significant market share, as the company is solely responsible for almost a third of the total electricity generated in the nation. Aside from KHNP, the other subsidiary companies of KEPCO are all named after regional divisions of the country. This is the legacy of past efforts to privatize the power generation and sales sectors. KEPCO’s power generation divisions were split into the six separate companies that exist to this day. The electricity generated from these companies is listed for trade on the Korea Power Exchange and subsequently distributed and sold to consumers and businesses by KEPCO.What is the main method of power generation?
KHNP, in line with its namesake, utilizes nuclear and renewable sources of energy. As for the other five subsidiaries, the main source of energy used for electricity production was thermal power. Although quite small in comparison, renewable energy also had a presence in those companies. Thermal power provides an inexpensive method of generating energy and is also derived from the lack of natural resources in South Korea. However, much of South Korea’s electricity continues to come from coal. With the challenge presented by climate change, the South Korean government is actively pushing for a shift towards renewable energy sources. It remains to be seen how a large public enterprise like KEPCO will operate in the future within this context.
