[The Editors' Verdict] Qualifications for the KEPCO President

A Vision for Energy Policy First,
Not Just Alignment with the Government

One of the first actions taken after former President Park Chung-hee seized power through the May 16, 1961 military coup was the establishment of Korea Electric Power Corporation (KEPCO). The Supreme Council for National Reconstruction integrated three companies?Joseon Electric Power (generation), Gyeongseong Electric (distribution), and Namsun Electric (distribution)?in July of that same year to form KEPCO. After its dissolution in February 1981, KEPCO was reestablished as Korea Electric Power Corporation and continues to operate to this day.

The inaugural president of KEPCO was Park Young-jun, who served as the commander of the 9th Infantry Division during the May 16 coup. He led KEPCO for eight years until 1968. The second president, Jeong Rae-hyeok, was a former commander of the 2nd Army and later served as Minister of National Defense and Speaker of the National Assembly. The third and fourth presidents, Kim Il-hwan and Kim Sang-bok, respectively, were also military veterans. President Park appointed his close aides as KEPCO presidents, focusing on expanding power generation facilities and ensuring stable electricity supply?one of the greatest challenges in South Korean society during and after the Korean War.

During the Japanese colonial period, power generation on the Korean Peninsula was concentrated in the northern region. In May 1948, North Korea cut off power transmission south of the 38th parallel, plunging South Korean society into chaos. Until the 1960s, South Korea suffered from chronic electricity shortages, with factories frequently halting production due to power outages. This was a major obstacle to industrialization. It was not until 1964 that restricted power transmission was eliminated.

The importance of KEPCO, which monopolizes the national power supply, remains unchanged from the 1960s to the present. The recent Russia-Ukraine war has further underscored the significance of energy security. Unlike the early days when power generation relied on thermal and hydroelectric sources, energy sources have diversified to include nuclear, solar, and wind power. Energy policy is also closely linked to environmental issues.

On the other hand, KEPCO is currently facing its greatest crisis since its inception. Its accumulated deficit, reaching 44 trillion won, threatens the national economy. To resolve this, electricity rates must be normalized, but the impact on businesses and household finances is significant, leaving the situation at an impasse.

Jeong Seung-il, the former KEPCO president who clashed with the government over electricity rate hikes and KEPCO’s self-rescue measures, tendered his resignation in May. After a month-long vacancy in the presidency, speculation about the next KEPCO president began to surface, with politicians and bureaucrats being mentioned as candidates.

KEPCO has had 22 presidents to date. Among them, five were military officers, nine were bureaucrats?the largest group?four came from the private sector, and one from academia. Three were promoted internally. Evaluations over time suggest that background is not the most critical factor. Notably, former President Lee Myung-bak uniquely appointed private-sector professionals as KEPCO presidents: Kim Ssang-soo and Kim Joong-gyeom, both recognized for their management skills at LG Electronics and Hyundai Construction, respectively. However, their performance as KEPCO presidents has been met with mixed reviews.

The government will likely want to appoint a president who can work harmoniously with the administration. Discord between the head of a public enterprise and the government is undesirable for the national economy and its members. However, appointing someone who blindly aligns with the government without a clear philosophy or vision for energy policy would be even more unsuitable as KEPCO president. We look forward to a leader who can propose solutions to save KEPCO in its time of crisis.