KEPCO Executives to Return Full Amount of Performance Bonuses

CEO Jeong Seung-il and Executives Decide to Return Full Performance Bonuses
Senior Managers Level 1 and Above to Return 50% of Performance Bonuses

KEPCO Reports Q1 Operating Loss of 7.8 Trillion Won, Record High... "Impact of High Oil Prices and Frozen Rates"
(Seoul=Yonhap News) Reporter Ryu Hyorim = Korea Electric Power Corporation (KEPCO) announced on the 13th of last month that its consolidated operating loss for the first quarter of this year was tentatively estimated at 7.7869 trillion won, marking a turnaround to a deficit compared to the same period last year (operating profit of 565.6 billion won). Sales increased by 9.1% year-on-year to 16.4641 trillion won. Net loss also turned to a deficit at 5.9259 trillion won. The photo shows the KEPCO Seoul Headquarters in Jung-gu, Seoul. 2022.5.13
ryousanta@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Junhyung] The management of Korea Electric Power Corporation (KEPCO) has decided to return all performance bonuses from last year's management evaluation. Key executives other than the management will also return 50% of their performance bonuses.

KEPCO announced on the 20th that the management, including President Jeong Seung-il, will return all performance bonuses from last year's management evaluation. Key executives at grade 1 or higher have agreed to return 50% of their performance bonuses. A KEPCO official stated, "This is a measure to overcome the current financial crisis and minimize electricity rate increases," adding, "The management voluntarily decided to return the performance bonuses to overcome the management difficulties."

To overcome management difficulties, KEPCO will also expand and reorganize the Emergency Countermeasures Committee for the power group companies. Earlier, KEPCO held an emergency committee meeting last month with the presidents of power group companies, including power generation subsidiaries, and began accelerating efforts to improve the financial structure. Through the emergency committee, KEPCO is promoting high-intensity self-help measures such as management efficiency, fuel cost reduction, and the sale of equity stakes and real estate.

Based on these self-help efforts, KEPCO aims to reduce costs by more than 6 trillion won. KEPCO has already sold real estate and equity stakes worth approximately 130 billion won. Additionally, through the self-help efforts that began in earnest last month, KEPCO has deferred and reduced budgets totaling about 1.3 trillion won up to recently.

KEPCO also plans to promote workforce and organizational efficiency. A KEPCO representative said, "We will reduce the burden on the public by minimizing electricity rate increases," and added, "We plan to simultaneously promote workforce and organizational efficiency to lead carbon neutrality implementation and bold institutional innovation."