Seobu Power to Cut 104 Headquarters Staff... Consolidates Similar Functions to Abolish 10 Departments

Board Approves Organizational Restructuring Plan Including Company-wide Innovation Measures

Korea Western Power has decided to reduce its workforce by 104 employees, including abolishing 10 departments by consolidating and integrating similar functions.

On the 23rd, Western Power held a board meeting and announced that it had approved an organizational restructuring plan containing these details.

Western Power will integrate departments with similar functions and transfer responsibilities, reducing the head office organization from '3 headquarters, 8 divisions, 3 offices, and 42 departments' to '3 headquarters, 7 divisions, 4 offices, and 32 departments.' Through this, the head office workforce will be reduced by 104 employees (27%).

While reducing 36 personnel at power plants through equipment operation efficiency improvements, these employees will be reassigned to the Gumi and Gongju construction offices, which will replace aging coal-fired power plants.

Since the inauguration of President Park Hyung-deok, Western Power has continuously pursued organizational efficiency through business innovation. In his first year in 2021, the company reduced 10% of the head office workforce, and last year, it improved efficiency by 4% of the entire workforce, reallocating personnel to essential projects such as construction sites.

Measures to strengthen financial control to improve profitability will also be promoted. Last year, Western Power operated a company-wide financial improvement task force (TF) and recorded the highest net profit (210.3 billion KRW) among power generation companies. The company plans to continue this financial improvement trend by establishing an Investment General Office responsible for strengthening risk management of equity investments and enhancing profitability.

Additionally, a Hydrogen Energy Division will be created to expand new businesses centered on hydrogen power generation. In April this year, Western Power completed the world's first demonstration project of a medium-to-large gas turbine with a 60% hydrogen co-firing rate. Furthermore, an Energy Efficiency Business Department will be established to actively respond to the government's energy demand management policies.

Alongside this, Western Power is implementing drastic self-help measures such as financial soundness restoration and wage returns to participate in overcoming the management crisis of its parent company, Korea Electric Power Corporation (KEPCO), and is operating an emergency management system through the Emergency Management Promotion Committee.

To share the public's burden caused by electricity rate increases, Western Power has expanded its existing financial soundness restoration plan from 2.0032 trillion KRW to 2.2104 trillion KRW this year.

Performance bonus returns will also continue. This year, the scope of returns has been expanded from executives at level 1 or higher to those at level 2 or higher, increasing the reduction in performance bonuses. Additionally, to prepare consolation payments for voluntary retirees, all wage increases for executives at level 2 or higher will be returned this year, with the possibility of expanding the target to level 3 if necessary.

Park Hyung-deok, President of Western Power, said, "We will launch a strong drive to overcome the management crisis starting with the organizational restructuring," and added, "We will continue to promote management efficiency and become a power generation public enterprise that leads in alleviating the public burden."

Exterior view of Korea Western Power headquarters.

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