[2025 Audit] KEPCO President Kim Dongcheol: "Direct Power Purchase System Should Be Abolished If Market Principles Fail"

"A Burden for Both KEPCO and the Public"

Yonhap News Agency

On October 23, Kim Dongcheol, President of Korea Electric Power Corporation (KEPCO), stated, "If market principles do not function properly, it is right to abolish the direct power purchase system."

During the National Assembly's Climate, Energy, Environment, and Labor Committee audit on the same day, President Kim made this remark in response to a question from Assemblywoman Jeong Hyekyung of the Progressive Party, who asked, "The direct power purchase system is increasing the burden on KEPCO and the public. Do you believe the system should be abolished, or that power grid usage fees for companies using it should be adjusted to reflect actual costs?"

President Kim explained, "The direct power purchase system was originally introduced to promote competition in the electricity market and prevent unfair increases in electricity rates. From 2021 to 2023, as energy prices rose, KEPCO absorbed losses to ease the burden on businesses. However, now that wholesale prices are on a downward trend, companies are adopting the direct power purchase system, which is clearly an exploitation of the system's loophole."

President Kim also agreed with Assemblywoman Jeong's repeated points, noting, "Currently, only one domestic company is utilizing the system at 0.2 GW, but there are 20 companies, including LG Chem, Hanwha Solutions, Samsung, Korea Railroad Corporation, and SK Advanced, applying for a total of about 2.4 GW. This not only increases KEPCO's burden, but ultimately, the public will have to bear it."

Meanwhile, President Kim also announced his commitment to timely construction of the national power grid and direct supply of renewable energy. He said, "We will expand the power grid in a timely manner to meet the electricity demand of advanced industries, which is directly linked to national competitiveness, and ensure smooth grid connection for renewable energy. Through management innovation utilizing artificial intelligence (AI) and strong self-rescue efforts, we will establish a sustainable management foundation and pursue new businesses within the scope that does not compete with the private sector."