KEPCO Cuts 30% of This Year's KEPCO Engineering & Construction University Contribution... 110.6 Billion Won Contribution
Decision to Reduce Contributions Due to Worsening Financial Structure of KEPCO
Korea Electric Power Corporation (KEPCO) has decided to contribute a total of 110.6 billion KRW to Korea Energy University this year. This is about a 30% reduction from the initially planned 158.8 billion KRW. KEPCO University was established with funds contributed by KEPCO as a national project under the Moon Jae-in administration.
On the 28th, KEPCO announced that it decided to contribute funds amounting to 70.8 billion KRW for the construction of major campus facilities and school operations this year. The group companies also decided to contribute 37.8 billion KRW, down 17.4 billion KRW from the original budget of 55.2 billion KRW, making the total contribution to KEPCO University 110.6 billion KRW this year. These contributions are intended for campus construction costs and school operating funds.
Previously, KEPCO and its power generation subsidiaries had planned to contribute approximately 158.8 billion KRW to KEPCO University this year. Of this, KEPCO itself intended to contribute 101.6 billion KRW. However, to improve KEPCO’s deteriorating financial structure due to large-scale deficits, a review was initiated to reduce the scale of contributions to KEPCO University.
KEPCO University is currently under audit due to allegations of excessive spending on the entrance ceremony and misuse of corporate credit cards. The Ministry of Trade, Industry and Energy stated, "We have commissioned a legal review" and "a thorough examination is underway."
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KEPCO University has already been embroiled in allegations of preferential treatment in site selection. The Board of Audit and Inspection is investigating whether the Moon Jae-in administration pushed forward the establishment of KEPCO University despite feasibility controversies, and whether Booyoung Housing received prior promises to change land use to allow apartment construction on remaining land in exchange for donating golf course land to KEPCO University.
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