KEPCO Provides Emergency Support to Cable Industry... 14 Billion Won Raw Material Cost Increase Reflected Immediately

Responding to Supply Chain Instability from the Middle East

30-Day Extension for Cable Delivery

Increased Inventory of High-Voltage Distribution Cables

Korea Electric Power Corporation (KEPCO) has stepped in to support the cable industry in response to a sharp surge in raw material prices originating from the Middle East. KEPCO has immediately reflected an increase of 14 billion won in contract amounts to account for the rise in raw material costs and has implemented stabilization measures for the supply chain, such as extending the delivery period for all cable items by 30 days.

On May 8, at the Korea Electric Power Corporation Art Center in Seoul, KEPCO hosted a "Meeting on Stabilizing Supply of Electric Power Equipment and Raw Material Supply Status," attended by the Ministry of Climate, Energy and Environment and representatives from the cable industry, where it announced these mutual support measures.

After the Middle East crisis led to a surge in crude oil and naphtha prices, resulting in raw material prices for cables rising by more than 30% to 40% compared to normal times, KEPCO completed a review of 26 requests from the industry to reflect price fluctuations and adjusted the total contract amount by 14 billion won.

KEPCO stated, "To minimize the operational burden on the industry, we will also promptly reflect any future price increases in accordance with relevant laws and regulations."

KEPCO explained that it has extended the delivery period of cable items at risk of supply disruption uniformly by 30 days and is managing the inventory of high-voltage distribution cables to secure a supply duration 1.6 times longer than normal. Additionally, for 22.9kV cables such as 58SQ and 160SQ specifications, emergency quantities for fault recovery and new relocation works are being prioritized in allocation.

The government also expressed its commitment to support the cable industry. Seo Seongtae, Director of Power Grid Policy at the Ministry of Climate, Energy and Environment, said, "The difficulties faced by the cable manufacturing industry are directly linked to national power grid stability," adding, "We will flexibly reflect raw material price changes and coordinate with relevant ministries and agencies to ensure priority supply of raw materials such as naphtha."

Representatives from the petrochemical industry, including Hanwha Solutions and LG Chem, also stated, "KEPCO's flexible delivery extension and timely price adjustments have been a great help in securing raw materials and managing liquidity," and added, "We will do our utmost at manufacturing sites to normalize the supply chain."