The South Korean government is officially beginning the integration process of five power public enterprises into a single entity called 'Korea Power.' The goal is to establish this new organization by October 2027, with plans to develop detailed integration strategies regarding organizational structure, personnel allocation, and operational systems, while also establishing regular communication with labor representatives.
On September 30, the Ministry of Climate, Energy and Environment announced the launch of the 'Integration Preparation Committee' at the headquarters of the five power companies in Gangnam, Seoul, chaired by Deputy Minister Lee Ho-hyun.
The committee includes officials from the Ministry of Climate, the Ministry of Economy and Finance, and the Office for Government Policy Coordination, as well as vice presidents from Korea Southern Power, Korea Eastern Power, Korea Western Power, Korea Central Power, and Korea Midland Power. Private sector experts in energy, finance, labor, law, and information technology will also participate as committee members.
Previously, on September 4, the government announced plans to merge the five power companies into a wholly-owned subsidiary of Korea Electric Power Corporation (KEPCO) called 'Korea Power.' This initiative aims to consolidate dispersed capital and human resources to promote a transition to renewable energy and address workforce transitions resulting from the phase-out of coal power.
Before the enactment of related special legislation, the Integration Preparation Committee will review key issues such as the organizational structure, personnel allocation, operational systems, integration procedures, and overseas business strategies for the new company.
During its first meeting, the committee will discuss a 'roadmap' detailing the timeline leading up to the launch of Korea Power on October 1, 2027. It will also address operational regulations, including procedures for committee operations and methods for gathering worker feedback.
Additionally, a 'Post-Merger Integration (PMI)' service will be initiated to support the institutional and organizational integration of the five power companies. This service will assist in the actual integration of different organizational and operational systems.
The government will also engage in consultations with labor representatives throughout the integration process. On the same day, the Ministry of Climate will meet with labor organizations related to power public enterprises, including the National Power Industry Workers' Union and the Korean Power Industry Workers' Union, to share the outcomes of the first meeting. Plans to establish and operate a regular communication system between labor and management will also be discussed.
Deputy Minister Lee stated, "The integration of power public enterprises is about restructuring the capabilities and business systems of the five companies to align with future energy environments. Our aim is not to create a larger power company, but to develop a stronger energy enterprise that leads in carbon neutrality and energy security while providing stable and efficient power supply." He added, "The Integration Preparation Committee will thoroughly examine various issues during the integration process and prepare meticulously."
* This article has been translated by AI.
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