Korea Southern Power Declares Emergency Management: "Resolving Subsidiary Allegations and Ensuring Stable Power Supply"

Immediate Audit of Executives at Invested Companies and Organizational and Personnel Reforms Planned
Major Restructuring Announced

Review of Fuel Supply Status and Reinforcement of Inventory Management System
Securing of Alternative Fuels Also to Be Pursued

Korea Southern Power Co., Ltd. (President Kim Jundong) announced on March 26, 2026, that an emergency meeting was held at its Busan headquarters the previous day, attended by the management and key executives across the company, during which the company declared a "state of emergency management."

This measure was taken to alleviate public concerns following recent allegations of misappropriation and reduction of welfare funds at its subsidiary KOSPO Yeongnam Power, as well as to address worries over energy supply and price volatility caused by the recent instability in global affairs.

At the meeting, Kim Jundong, President of Korea Southern Power Co., Ltd., ordered an immediate audit of the duties of executives at its invested companies and announced that the company would conduct a thorough inspection of any improper conduct, including the pursuit of private interests. Kim stated, "As soon as the results of the investigation and the audit are available, we will comprehensively reorganize the relevant departments and implement personnel reforms."

In addition, to enhance transparency, the company will operate a disciplinary committee composed of external personnel to hold those involved strictly accountable. On March 18, 2026, the company had already strengthened the objectivity and transparency of its decision-making process by appointing external lawyers and accountants as part of the non-executive director candidate recommendation committee.

Furthermore, in preparation for uncertainty in the international energy market due to rising geopolitical risks in the Middle East, the company will review the supply status of major power generation fuels such as bituminous coal and LNG and reinforce its inventory management system. Korea Southern Power Co., Ltd. also plans to actively pursue the securing of alternative fuels and diversification of supply sources to ensure energy security.

The heads of each power plant who attended the meeting pledged to focus more than ever on on-site safety management to prevent industrial accidents. In particular, the management will take the lead in on-site management to ensure that there is not a single accident in the renewable energy sector, including wind and solar power.

President Kim Jundong of Korea Southern Power Co., Ltd. emphasized, "The more difficult the company’s situation becomes, the more important organizational unity and communication are," and added, "Given that energy security is a matter of national emergency, I ask that you take every possible measure to ensure stable fuel supply management."

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