KEPCO President on Labor Director System: Personal Reflections... No Communication with Government

Jong-gap Kim, President of Korea Electric Power Corporation. (Photo by Korea Electric Power Corporation)

[Asia Economy Reporter Moon Chaeseok] Kim Jong-gap, CEO of Korea Electric Power Corporation (KEPCO), said on the 12th, "The introduction of the labor director system was just a personal reflection I expressed," meaning that he did not make the statement after prior consultation with the government.

Recently, Kim wrote on his SNS, "If the introduction of the labor director system is being considered in public enterprises, I would like to raise my hand and try it once. Whether it becomes a success or a failure, I want to try that path."

He introduced, "The characteristic of corporate governance in German companies is that shareholders and employees lead the organization together," adding, "The supervisory board, composed of members recommended equally by shareholders and labor unions, appoints and dismisses executives, decides compensation, and suggests major management policies."

The labor director system is a system where worker representatives participate in the board of directors with speaking and voting rights, engaging in decision-making. It is one of the 100 national tasks proposed by President Moon Jae-in.

He reportedly said, "When I was CEO of Hynix in the past, I experienced multiple labor unions, at Siemens I experienced the Korean Confederation of Trade Unions (KCTU), and now I am experiencing the Federation of Korean Trade Unions (FKTU)," adding, "These are reflections from experiencing various labor unions as a CEO for 14 years."

He emphasized that there was no prior consultation with the government, stating, "(The introduction of the labor director system) is not something KEPCO can do alone, and once the government policy is decided, we will follow that policy."

Previously, in August 2018, he agreed to introduce the labor director system while signing a collective agreement with the power labor union.

For KEPCO to introduce the labor director system, the "Act on the Management of Public Institutions" (Public Institutions Management Act) must be amended.

Although a revision bill was proposed during the 20th National Assembly, it failed to pass due to opposition from opposition parties, and KEPCO's system introduction was also aborted.

Currently, the Economic, Social and Labor Council, a social dialogue body under the president, is discussing matters related to the labor director system.

Kim served as Vice Minister of the Ministry of Commerce, Industry and Energy until 2006, then from 2007 to 2011 he was CEO and chairman of the board at Hynix Semiconductor. He then served as CEO and chairman of Korea Siemens from 2011 to 2018 before being appointed KEPCO CEO in 2018.