Tops among State-run Firms
KDHC works hard to upgrade customer satisfaction and ethical management

The Korea District Heating Corp. (KHDC) won the top prize in the evaluation of state-run firms conducted by the Ministry of Planning and Budget this year, which announced the results on June 29.
The MPB began the evaluation of government-run firms April of last year in line with the government policy to have these firms build a systematic management system, expand innovative management and instill responsible management.
The MPB divided the 87 firms into 8 groups based on their business categories and put 91 examiners in charge of evaluating the operations of these firms for three months focused on a number of key issues including the achievement of managerial targets, management efficiency and public interest.
KDHC has been working hard to upgrade its management results in a number of areas including customer satisfaction and ethical management, among others, following the launch of a new innovative management system, enabling it to win first-places in two of the eight categories including finance and profitability.
KDHC also won the top award in the public sector of the 2005 Environment-Friendly Management Grand Prize co-hosted by the Korea Economic Daily and the Open Management Institution July 8.
The company won the prize due to its contribution to making air clean by expanding the scale of its market and creating pleasant living conditions.
In particular, the company built environmental management system for the first time as a public firm in December 1996, and drafted its management target and environmental management promotion plan, which has been being pushed all along.
From now on, the company will focus on CHP (combined heat production), while putting its efforts on developing new energy sources by using wind and underground heat.
Nine public energy companies including KDHC signed a renewable portfolio agreement (RPA) on July 25, paving the way for developing new energy sources in the face of rapidly changing environment triggered by high oil prices and the enforcement of the Kyoto Protocol. Nine companies will invest 1.1 trillion won into developing environment-friendly new energy sources by 2008.
When the agreement is met successfully, some 1.59 million barrels of oil would be replaced to reduce 170,000 tons of hothouse gas discharge a year.
KDHC has been serving customers for 20 years since it was established in November, 1985, by the government, for the purpose of dealing effectively with the United Nations Framework Convention on Climate Change, promoting energy conservation and improving living standards, through the efficient use of district heating.
As of December 2003, District Heating is being supplied to 1,117,000 households out of total 12,670,000 households nationwide. Among those 1,177,000 households, KDHC provides the service to 685,000 households, which comes to 58 percent total households with District Heating System.
Since the establishment, the company has been focusing on expanding its district heating service in the country by applying multiple systems such as Community Energy Supply System or the utilization of unused energy, etc. The company also plans to take a big step forward as an integrated energy supplier by positively advancing to other energy-related fields including electric power business and gas business supply service.
Today, the environment and resources are the most important factors in society. A nation that uses energy wastefully can no longer be considered advanced. Advanced nations are those who use energy most efficiently.
Korea District Heating Corp. is leading the way to help achieve a pattern of energy consumption worthy of an advanced nation. nw