'A Leading Clean Company
in Global Energy Market'

KOSPO President Kim expounds three management goals KOSPO for 2007

Kim Sang-kab, president-CEO of Korea Southern Power Co. (KOSPO), said the domestic power generation industry needs to raise a competitive edge in the wake of an acceleration of a move to open the industry to competition.
"As the power generation market sees a rapid shift to market-oriented competition, based on efficiency and rational, raising the competitive edge is required more now than ever before. A call for creating a system to secure survival on its own on the global stage has been mounting amid the globalization of the market economy like expected FTA deals with advanced countries,"KOSPO President Kim said.
President Kim has expounded the following management goals KOSPO will implement during 2007 to tide over these management circumstances and realize a vision of becoming "a eading clean company"in the global energy market."First, he called for regularizing management innovation. KOSPO President Kim urged his executives and staff members to carry on the management innovation project,
dubbed "V-KOSPO"on a continuous basis and raising its roles and standing as an innovation leader by fortifying its constitution as an innovative company through empowerment.
KOSPO will strive to establish a performance-oriented system by putting into action tasks under a mid- and long-term strategic management plan called "Roll-Out."The company will build up a budget management system based on profitability in order to raise profitability to global levels and secure financial soundness, while aggressively tackling environment changes of the power market. In particular, he said, starting this year, power companies are expected to face an uphill battle to secure profitability due to a change of the power transaction system, he said.
President Kim said KOSPO will put heart and soul into the construction of optimum power plants to raise safety and efficiency of power generation equipment by establishing advanced power equipment operation systems. KOSPO will explore ways of stabilizing a supply of fuels for generating power and ensuring economic purchases of fuels, while making diversified efforts to cut down on costs through proposed direct import of liquefied natural gas pursuant to government policies and business purposes.
The company will expand investments into gifted manpower development to operate looking-forward educational programs designed to nurture world-class manpower and develop a transparent personnel management system based on capabilities and performances, he said.
Second, he called for creating futuristic growth engines by diversifying a business portfolio. KOSPO will put more energy into strengthening its global presence by aggressively participating overseas power plant O&M projects and international collaboration projects in line with the government's drive for exploring foreign markets. In particular, KOSPO will advance the timing of capitalizing on inner capabilities in terms of personnel and materials the company has so far accumulated to push ahead with overseas projects it intends to implement. KOSPO will also make all-out efforts to develop new and renewable energy sources like wind power as well as new energy plants in such areas as Andong and Samcheok. Third, he appealed for ensuring socially responsible management, saying that "respecting clients is an integral part for corporate survival. Transparent management and customer satisfaction management can guarantee a sustainable growth and achieve social responsibility."KOSPO will strive to translate into action more stringent ethical management, conduct on-site social contribution activities and brace for making social responsibility global standards with the goal of becoming a "clean company "beloved by people.
The company will make strenuous efforts to spread its own co-prosperity model with SMEs through expanded joint purchase of products produced by SMEs and support for overseas market exploration under the streamline system for providing support to SMEs.
KOSPO will proactively cope with steps to strengthen environmental restrictions under international pacts on climate change.
Reflecting on last year, KOSPO President Kim said, during the year 2006, the sagging domestic economic and international crude price hikes had an adverse impact on the company's performances. Despite these unfavorable factors, KOSPO made remarkable accomplishments -topping the 2005 Power Generation Company Management Evaluation and grabbing the coveted "2006 Korea Management Grand Prize."The company maintained the No.1 position in thermal efficiency, facility usage and power generation categories for the sixth year in a row. nw

KOSPO CEO Kim Sang-kab exchanges greetings during a New Year's ceremony. (right photo) KOSPO President Kim.