KOSEP Strives to Raise
Management to Global Standards

Puts heart and soul to disseminate the 'KOSEP Way'

Park Hee-gab, president-CEO of Korea South-East Power Co. (KOSEP), has urged his executives and staff members to show concerted determination to cope with rapidly changing internal and external business circumstances that are expected to be more unfavorable ahead.
In his New Year's message, KOSEP President Park said, "Amid unfavorable external and internal business prospects ahead, rapidly changing management circumstances require our drive for a challenging spirit. In particular, it is more essential for staff members to show a concerted determination to tide over hardships in a bid to achieve an ambitious goal of becoming a global power leader."KOSEP President Park called for his staff members to aggressively participate in major projects the power company will implement this year.
Forecasting that Korea will see electricity demand rising at 3.5 percent due to the sagging global economy, he said KOSEP will likely accelerate efforts to raise environment, ethical management and corporate social responsibility to global standards.
First, he called for securing engines for a sustainable growth by developing and strengthening core capabilities. KOSEP needs to make preparations for building up infrastructure for construction of additional units of Yonghung Thermal Power Complex, while focusing on the construction of Yonghung Thermal Power Units 3 & 4, which are in the final stage, and Yecheon Pumping-up Power Plant whose construction is under way, President Park said, He also touched on continuously upgrading six core technologies, including combustion technology, as well as the development of new and renewable energy sources and exploration of overseas projects designed to secure futuristic growth engines.
Second, he appealed for securing trustworthiness of power facilities and improving operation efficiency. "Safe and efficient operation of power generation facilities is not only closely linked to profits, but also lays a foundation for its survival,"he said.
Park solicited staff members'efforts for lower breakdown stoppage frequency of power plants close to a zero level, carrying out projects for upgrading long-standing power plants without a hitch and refurbishing power plants with high-tech technologies like advanced prediction and analysis apparatuses.
In an effort to gain an upper hand in unit cost competition, he said, KOSEP will have to focus not only on purchasing fuel economically, but also on improving fuel efficiency. KOSEP plans to build up a low-cost, high-efficiency power plant operation infrastructure by utilizing fuel combustion technologies now under development and creating optimal fuel combustion methods, he said.
Third, KOSEP President Park called for securing financial soundness and beefing up investment management to brace for a drop in profits. He urged his staff to take steps to prevent a worsening profitability condition. KOSEP should brace for a shortage of funds arising from channeling large amounts of money into the full-fledged construction work and a weakening profitability, caused by the change of the power transaction system, he said. An optimum debt structure should be maintained by obtaining easy loans timely in consideration of the fluctuations of foreign exchange rates, while efficiency of investments need to be maximized through economic assessment of investment projects, timing and size to preempt budgetary waste, said President Park, adding that each business department should put more energy into saving costs and ameliorating operations.
Fourth, he said KOSEP should establish a corporate culture corresponding to the standing of a global company. Park expressed the hope KOSEP will put heart and soul into disseminating the "KOSEP Way,"a companywide corporate culture suitable for making KOSEP a global company throughout this year. He stressed that KOSEP will also have to build up an ethical management regime and conduct active social activities contributing to society and environmentally-friendly policies to gain trust and praise from the public and community.
The world is now entering a period in which technological innovations are accelerated, competition is getting fierce and globalization is widespread. Sustainable management based on the environment, ethics and transparent management have been recognized as a new paradigm."He expressed the hope that "the year 2006 will be a year for launching a full-fledged push for realizing a vision of becoming a "global power leader"following a preparatory period."First, CEO Park said, KOSEP will put more energy into developing a futuristic growth foundation to brace for a borderless, unlimited competition. "The most important thing KOSEP has to do is to establish a future growth foundation to realize the goal of evolving into a global company,"he noted. "During this year, KOSEP will have to push a project for constructing additional units of the Yonghung Thermal Power Plant, continue to develop six core technologies, including the ones on combustion in a bid to preempt core technologies and differentiate other power companies and establish a regime for cultivating expertise manpower."Second, he said, KOSEP will focus on enhancing reliability and efficiency of power facilities. "Boosting reliability and efficiency of power facilities for a stable and economical supply of power is not only a matter of our profits, but also our mission. KOSEP needs to accumulate technological power and experiences to stabilize new facilities and coping with aging ones."Third, Park said, KOSEP will meet power plant construction schedules and maximize its capability on power plant construction. KOSEP accumulated technology and experiences on Korea's first 800,000kW-class power plant. Efforts will be made to construct advanced new high-performance, high-quality versions by capitalizing the expertise and experiences on power plant construction. He urged his staff to make it sure to complete the ongoing Yonghung Thermal Power Units 3 and 4 and Yecheon Pumped Power Storage Power Plant and ensure the quality of the new versions by making a scrutiny into the weak points of the old unit versions.
Fourth, he called for establishment of a desirable corporate culture. A corporation with a desirable corporate culture utilizes each individual's s "mind energy"capability and obtains organizational synergetic effects by harmonizing and combining each staff member's competence. nw

KOSEP CEO Park Hee-gab delivers a message during a ceremony on the start of the 2007 business year. (right photo) KOSEP President Park.