Politician-Turned 'KEPCO President' Imminent... Former Lawmaker Kim Dong-cheol to Be Appointed at Mid-Month General Meeting

KEPCO Approves 'President Appointment' Agenda at Board Meeting on the 1st
Appointment at Shareholders' Meeting Two Weeks Later → Final Appointment by the President

[Image source=Yonhap News]

Korea Electric Power Corporation (KEPCO) will welcome its first president from a political background in 62 years.

On the 1st, KEPCO held an extraordinary board meeting at the KEPCO Art Center and resolved to hold an extraordinary general meeting of shareholders to appoint former lawmaker Kim Dong-chul as president. The shareholders' meeting will be held in mid to late this month, about two weeks later. If the agenda passes at the shareholders' meeting, the Minister of Trade, Industry and Energy will recommend the appointment, and the president will make the final appointment.

If former lawmaker Kim is appointed as KEPCO's next president, the leadership vacancy that has lasted about four months since former president Jeong Seung-il's early retirement will be resolved.

Former lawmaker Kim graduated from Seoul National University Law School and worked at the Korea Development Bank before entering politics, serving four terms (17th to 20th National Assembly) as a lawmaker representing Gwangju. If Kim is finally appointed, he will become the first president from a political background since KEPCO was established as a corporation in 1961, marking 62 years.

The top priority for the next KEPCO president is business normalization. Although KEPCO raised electricity rates by nearly 40% in five increments since the second quarter of last year, its financial structure deteriorated due to the cost structure where the rise in international energy prices outpaced the rate hikes, causing losses the more electricity it sold.

According to KEPCO's semi-annual report, as of the end of June this year, the total consolidated debt stood at 201.4 trillion won, surpassing 200 trillion won for the first time in history. KEPCO's debt was around 132.5 trillion won at the end of 2020, surged to 145.8 trillion won at the end of 2021, and 192.8 trillion won at the end of 2022. It increased by about 8 trillion won this year, exceeding 200 trillion won. KEPCO recorded operating losses in the second quarter of this year as well, marking nine consecutive quarters of deficits. Operating losses accumulated since 2021 exceed 47 trillion won.

Meanwhile, KEPCO must submit fuel cost adjustment rates by the 15th, and based on this, the Ministry of Trade, Industry and Energy must decide by the 20th whether to raise electricity rates in the fourth quarter.

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