Korea concludes privatization plans
The Korea Electric Power Company (Kepco) has concluded a plan to spin off its power generation unit into six affiliates in November. The affiliates will be sold off by the end of the year.
The decision was based on a study by Andersen Consulting, and through consultations with the Commerce, Industry and Energy Ministry.
Kepco`s move will free-up the power generation industry to any firm looking to set up a generating plant in Korea from next year.
Under the plan to split the power generation unit, 42 thermal and hydropower plants under construction or in operation will be merged into five separate affiliates, with the nuclear ones merged into a separate firm. Nuclear power plants will be managed under four different operating units to upgrade competitiveness, although they will stay under the same affiliate company.