KEPCO Appoints Kim Dong-cheol as President at General Meeting... First Politician-Origin CEO in 62 Years

[Image source=Yonhap News]

Korea Electric Power Corporation (KEPCO) held an extraordinary general meeting of shareholders on the 18th and appointed former lawmaker Kim Dong-cheol, who was the sole candidate recommended for the president position.

Previously, the Ministry of Trade, Industry and Energy, the supervising ministry, recommended former lawmaker Kim as the sole candidate for the president. After the minister of trade, industry and energy proposes him, the president will give final approval for his appointment as KEPCO president. The term of office is three years, with the possibility of renewal on a yearly basis depending on job performance.

Newly appointed President Kim graduated from Seoul National University Law School and worked at the Korea Development Bank before entering politics, serving four terms (17th to 20th National Assembly) as a lawmaker representing Gwangju. He is the first president from a political background since KEPCO was established as a corporation in 1961, 62 years ago.

The top priority for the next KEPCO president is business normalization. KEPCO recorded operating losses again in the second quarter of this year, marking nine consecutive quarters of deficits. The accumulated operating deficit since 2021 exceeds 47 trillion won.

KEPCO considers that it can no longer delay electricity rate hikes and plans to submit the details of the fourth-quarter fuel cost adjustment unit price, which includes the necessity of electricity rate increases, to the Ministry of Trade, Industry and Energy. Earlier, the ministry reported in the 'KEPCO Business Normalization Plan' that a 51.6 won per kWh electricity rate increase is necessary this year to eliminate KEPCO's deficit by 2026. The increase for the first and second quarters of this year was 21.1 won. To resolve the deficit, an additional increase of 'more than 30 won' is needed this year.