Public Power Company with Massive Debt, Significantly Increased Number of Employees

Data from Rep. Choo Kyung-ho's Office, People Power Party
KEPCO, 5 Power Generation Companies, and KHNP Increased Staff by 11.5% Under Moon Administration... Mobilized as a Job Expansion Channel

[Sejong=Asia Economy Reporter Kwon Haeyoung] It has been revealed that power public enterprises burdened with debt significantly increased their number of employees during the Moon Jae-in administration. Among the five power generation companies under Korea Electric Power Corporation (KEPCO), three expanded their workforce by more than 20%. This trend, driven by the current government's job creation policy, has raised calls for drastic measures to curb the excessive increase in staff numbers.

According to data submitted on the 12th by the office of Choo Kyung-ho, a member of the People Power Party, from KEPCO, the five power generation companies under KEPCO, and Korea Hydro & Nuclear Power (KHNP), the total workforce of these companies increased by 11.5%, from 44,841 employees before the current government took office in 2016 to 50,053 as of the second quarter of 2021.

Namdong Power Generation increased its workforce by 26.4%, from 2,289 employees in 2016 to 2,894 in the second quarter of this year. It was followed by South Power Generation with a 24.6% increase (2,164 → 2,697), West Power Generation with 20.8% (2,296 → 2,774), Jungbu Power Generation with 12.8% (2,514 → 2,837), and Dongseo Power Generation with 12.1% (2,360 → 2,647). KEPCO itself increased its workforce by 9.7%, from 21,449 to 23,540, and KHNP by 7.1%, from 11,769 to 12,614 during the same period.

The increase in employees at power public enterprises is closely related to the Moon Jae-in administration's use of public institutions as a channel for job creation. The current government awards high scores for job creation in management evaluations, which serve as the basis for performance bonuses in public enterprises. According to the Ministry of Economy and Finance's '2021 Public Institution Management Evaluation Manual,' job creation accounts for 7 points out of a total of 100 points, which is higher than the 3 points allocated for total labor cost management. This contrasts with the Lee Myung-bak and Park Geun-hye administrations, which pursued efficiency in public institutions through workforce reductions.

This reckless management and excessive labor costs in power public enterprises ultimately lead to deficits and increased accumulated debt, which become a burden on the public. According to KEPCO's internal document, '2021?2025 Mid- to Long-Term Financial Outlook,' KEPCO's consolidated debt is expected to surge from 132.4753 trillion won in 2020 to 165.9303 trillion won in 2025. The debt ratio is projected to soar from 187.5% to 237.4% during the same period.

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