Energy Public Enterprises Emphasize 'Eco-Friendly and Safety Management'

This Year's Management Keywords
Responding to 2050 Carbon Neutrality Policy
Strong Commitment to Preventing Safety Accidents
KEPCO Focuses on 'New and Renewable Power Generation'

Jong-gap Kim, President of Korea Electric Power Corporation. (Photo by Korea Electric Power Corporation)

[Asia Economy Reporter Moon Chaeseok] Heads of energy public enterprises have unanimously highlighted 'eco-friendliness' and 'safety management' as the key management themes for this year. The emphasis is on thoroughly managing safety to prevent accidents while responding to the government's energy transition policy, represented by the 2050 carbon neutrality (net zero carbon emissions) goal.

◆Focusing on eco-friendly energy transition= According to the energy industry on the 5th, Korea Electric Power Corporation (KEPCO), the senior figure among energy public enterprises, plans to emphasize authority over new and renewable energy power generation projects.

KEPCO President Kim Jong-gap stressed in his New Year's address, "To achieve global carbon neutrality by 2050, we must directly participate in renewable energy power generation projects."

They judged that entering new and renewable energy power generation projects such as offshore wind power would allow faster achievement of the carbon neutrality goal. Until now, KEPCO has purchased electricity at wholesale prices from power producers and resold it to consumers, without directly generating electricity.

Jaehoon Jeong, President of Korea Hydro & Nuclear Power. (Photo by Korea Hydro & Nuclear Power)

Korea Hydro & Nuclear Power (KHNP) has defined this year as the 'Era of Energy Coexistence.'

KHNP President Jung Jae-hoon encouraged employees, saying, "The upcoming era will be one of energy coexistence based on eco-friendly, low-carbon, and distributed power sources. Let us respond to the rapidly changing energy situation and unite labor and management to confidently ride the wave of change and become leaders in the global energy market."

Chae Hee-bong, President of Korea Gas Corporation. (Photo by Korea Gas Corporation)

Korea Gas Corporation (KOGAS), selected last July by the Hydrogen Economy Committee as the dedicated hydrogen distribution agency, plans to actively promote the establishment of a hydrogen business vision and strategy, the installation of a hydrogen business headquarters, and the expansion of new liquefied natural gas (LNG) bunkering businesses.

KOGAS President Chae Hee-bong emphasized, "This year, we must lay the foundation to grow into a core future company by nimbly responding to the rapidly changing internal and external management environment, including the reorganization of global market trends centered on eco-friendly energy, prolonged low oil prices and changes in financial market liquidity, and carbon neutrality declarations by countries worldwide."

Hyung-gu Park, President of Korea Midland Power Co., Ltd. (Photo by Korea Midland Power Co., Ltd.)

◆Safety management and eradication of moral hazard= Power generation companies also plan to focus on worker safety management. With increasing demands from the ruling party and political circles for the enactment of the Serious Accident Corporate Special Act, these companies cannot ignore the issue. Public enterprises have set social values such as safety management as key management policies for this year.

Park Hyung-gu, President of Korea Midland Power, stated, "To ensure that not a single safety accident occurs at Midland Power and its partner companies, a people-centered integrated disaster safety management culture must spread and take root. Producing electricity stably based on safety is our company's most fundamental mission."

Yuh Hyang-yeol, President of Korea Midland Power Co., Ltd. (Photo by Korea South-East Power Co., Ltd.)

Yoo Hyang-yeol, President of Korea South-East Power, said, "The highest value of public enterprises is to protect the safety and lives of the people, and the mere fact that a safety accident occurred at our workplace, regardless of the reason, can cause us to lose public trust." Yoo stressed, "We must keep in mind that safety accidents can have a fatal impact on the company's existence and do our utmost to build a perfect safety system and facilities to fundamentally prevent disasters."

In addition, President Kim pledged not to be stigmatized by reckless management.

He said, "This year should be the first year to start sustainable management through financial stability," adding, "Based on the newly introduced 'cost-linked electricity rate system,' we must strictly apply evaluation indicators and thoroughly manage costs."

KEPCO plans to set the upper limit of the electricity supply cost increase rate at 3% over the next five years, aiming to save about 7 to 8 trillion won.

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