Namdong Power Generation Induces 1.1 Trillion KRW Economic Effect... Executes 870 Billion KRW Budget in First Half

Inducing Indirect Employment Effects Through Prepayment and Other Measures to Revitalize the Local Economy

Photo by Korea South-East Power Co., Ltd.

[Asia Economy Reporter Moon Chaeseok] Korea South-East Power Co., Ltd. (KOSPO) executed a budget of 870 billion KRW in the first half of the year to respond to the novel coronavirus disease (COVID-19), inducing an economic revitalization effect worth 1.1 trillion KRW.

On the 23rd, KOSPO announced that it actively implemented government policies to boost domestic demand through early execution of public sector investment expenses and advance payments and purchases.

Since launching the 'Economic Revitalization Task Force' in April, it has worked diligently to support small and medium-sized enterprises (SMEs) facing difficulties and to revitalize the local economy.

KOSPO executed about 870 billion KRW in early payments in the first half, which is approximately 69% of the total annual investment budget, and paid advance funds to major contractors.

Early budget execution in the first half was based on indicators showing the economic effects of public funds flowing into the market, such as fiscal multipliers and employment inducement coefficients.

Through this, it generated an economic effect of about 1.1 trillion KRW and created approximately 8,000 jobs.

Additionally, to support SMEs, it temporarily improved the contract system, significantly shortening the administrative days required for contracts.

It implemented an SME support program that directly provides labor costs to small and medium-sized enterprises.

To revitalize the local economy, advance payments were made to restaurants near the headquarters and each business site to improve cash flow and support employment maintenance.

About 2 billion KRW of social contribution budgets, including the Sharing Fund, were executed early to support socially vulnerable groups experiencing difficulties.

KOSPO accounted for about 11% of the national power supply as of last year. It received an A grade in the government management evaluation of public institutions last year.

This content was produced with the assistance of AI translation services.