[Special Stock] GS Global Suggests Power Market Privatization by Transition Committee... Increased Competitiveness of Cheap Coal Power

[Asia Economy Reporter Hyungsoo Park] GS Global is showing strong performance. The Presidential Transition Committee's announcement to shift the electricity pricing system towards market principles and to reform the power sales structure monopolized by Korea Electric Power Corporation (KEPCO) appears to have influenced the stock price. The electricity rates will reflect costs more strongly, and the nuclear power plant industry will also be expanded.

At 9:32 AM on the 29th, GS Global was trading at 4,630 KRW, up 13.64% from the previous day.

The Transition Committee stated that it will establish the energy market structure based on competition principles. They decided to apply the 'cost-based' principle to determine electricity rates.

Although the state still holds shares in KEPCO, so it is not a full privatization of KEPCO, the power sales market could shift towards private management, which is expected to spark future debates. The Committee announced that it will "gradually open KEPCO's monopoly sales structure," suggesting the possibility of privatization in the power market.

In other countries, the privatization of the power industry has progressed significantly. Currently, the power trading market is structured so that KEPCO purchases electricity from power generators through the power exchange and then sells it exclusively. If the system changes, private power producers could directly contract with companies and other consumers and supply electricity directly.

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