"KR Electric Power Corp. and Gas Public Corp. to Cut Labor Costs and Sell Assets for '28 Trillion Won Cost Reduction'"

Emergency Management System for All Former Employees... Specific Organizational Operation Innovation Plans to Be Prepared
Park Il-jun, 2nd Vice Minister, "We Must Discover the Best Self-Help Measures That Meet the Public's Expectations"

Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation (KOGAS) have decided to soon announce management innovation measures aimed at cost savings totaling 28 trillion won by 2026.

At the "Energy Public Enterprises Management Innovation Status Review Meeting" held on the 11th, KEPCO and KOGAS stated, "Before appealing to the public for the necessity of energy rate adjustments, we are preparing more drastic self-help measures," adding, "We will promptly prepare and announce management innovation measures that include additional self-help plans such as labor cost reductions and additional asset sales." The two organizations had previously announced at the 'Electricity and Gas Rate-related Ruling Party and Opposition Party Meeting' on the 6th that they would achieve cost savings amounting to 28 trillion won by 2026.

On the same day, Park Il-jun, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, presided over the Energy Public Enterprises Management Innovation Status Review Meeting at the KEPCO Art Center in Seocho-gu, Seoul, checking the progress of KEPCO and KOGAS's self-help efforts and requesting the discovery of additional self-help plans and organizational innovation measures. The management innovation measures will also include organizational operation innovation plans to achieve key future energy policy tasks such as support for vulnerable groups and energy use efficiency.

During the meeting, the effectiveness of the approximately 28 trillion won self-help plans of KEPCO and KOGAS reported at the ruling and opposition party meeting on the 6th was reviewed. KEPCO and KOGAS agreed that all employees will maintain an emergency management system until deficits and unpaid receivables are resolved, and will prepare management innovation measures including additional self-help plans such as cost reductions including labor costs, unnecessary asset sales, and investment adjustments.

In his opening remarks, Vice Minister Park urged, "KEPCO and KOGAS should thoroughly review their management situations and make every effort to ensure that the currently prepared management innovation measures include the best self-help measures that meet public expectations and reasonable organizational innovation plans."

[Image source=Yonhap News]

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