KEPCO in High Gear in Search of Overseas Business
Aims at earning $26 billion from abroad by 2020
KEPCO Chairman & CEO Kim Ssang-su delivers his New YearOs message at the? company building in Seoul.
Korea Electric Power Corp. (KEPCO) is stepping on the gas to expand its business horizons abroad with the goal of posting $26 billion in sales from overseas markets by 2020.
Chairman & CEO Kim Ssang-su said in his New Year's message, "KEPCO aims at raking in $26 billion in overseas sales in 2020, moving it a step forward by ramping up the profitability and efficiency of the ongoing businesses." To this end, the nuclear power construction project in the United Arab Emirates, KoreaOs first overseas nuclear power deal, will be implemented without a hitch, and KEPCO will have to land a second nuclear power construction project from abroad, he added.
Looking back at KEPCO's 2010 business performances, Kim said that reflecting the unit power cost in determining electricity charges is insufficient, but thanks to companywide innovative activities and self-help efforts, business performances are expected to get better. KEPCO has seen the electric power interruption time per unit reduce to 14 minutes through the scientific operation of power facilities and the substation utilization rate soar to 56 percent to produce world-class quality electricity, he said.
KEPCO has yielded tangible results in the overseas business sector, raising its bituminous coal and uranium development rates to 34 percent and 22 percent. KEPCO has won large-scale power projects from Mexico, the Philippines and the United Arab Emirates.
KEPCO has been recognized for its willingness to innovate itself, as the power company was classified as an S-category in the government's management assessment of public enterprises and ranked first in an integrity survey of public organizations as well as topping the customer satisfaction survey of public entities.
Kim said, "KEPCO's innovative activities have been upgraded to a higher level, and weOve built up confidence that we can overcome such external business conditions as fuel costs and foreign exchange fluctuations." He added, "Now is a time when based on our confidence, we have to take on global corporate players on the global stage, and build a solid foundation for realizing our vision by breaking the mold as a public entity by accelerating innovative activities."
To this end, Kim set five management guidelines. First, he called for securing an appropriate rate of yield by ramping up profit-oriented business operations. He also stressed the need for introducing a system in which electricity charges can be changed automatically according to fuel costs and urged his staff to thoroughly prepare for the introduction of the system in July.
Second, he said, KEPCO will continue to produce world-class quality electricity and translate into action the company's co-prosperity management tenets. KEPCO will endeavor to make new co-prosperity management models with SMEs by expanding cooperative R&D activities and support for partner SMEOs overseas exports.
Third, he said, KEPCO will make strenuous efforts to achieve goals in each segment of its overseas business. The company will do its utmost to make the nation's first overseas nuclear power project with the United Arab Emirates a world-class one without a hitch while striving to land a second nuclear power deal and more than three hydro or thermal power projects from foreign markets. He expressed the hope that its own power fuel development rate will be raised by more than 10 percentage points compared to last year and that its efforts to export KEPCO-style smart grid business models abroad will yield tangible results.
Fourth, he said, KEPCO will accelerate its efforts to develop the top eight green technologies and corresponding technological capability.
Fifth, he said, KEPCO will accelerate its innovative activities and build a merit-oriented management system.
Last, he called for the establishment of constructive labor-management ties. nw