Korea Western Power Co. (KOWEPO) held an emergency management meeting at its headquarters in Yeoksam-dong, Seoul, on March 17 during which KOWEPO announced detailed action plans in accordance with the government’s call for normalizing public entities and its three-year economic innovation plan. KOWEPO President Cho In-kook, other executives, and all division chiefs and heads of regional operations pledged to translate them into action.
KOWEPO has decided to implement high-powered reform measures to reduce its debt ratio and fix loose management. The company’s zero-based management tenets call for reconsidering all projects from scratch with the goal of reducing debts by 320 billion won during this year and meeting the government’s guidelines for curtailing their debt ratio by 2017.
Among the top five action tasks KOWEPO announced during the emergency management meeting in line with the government’s three-year economic innovation plan are the ameliorating of 18 items in four fields during this year, the strengthening of executing “KOWEPO 3.0” to expand information disclosures to the general public, reducing its debt ratio from the current 170 percent to 155 percent, a reduction of 1.5 trillion won, by 2017, and the exploration of tasks designed to enhance productivity and efficiency.
All the heads of divisions and offices both at KOWEPO headquarters and regional operations resolved to make it happen as KOWEPO announced the reform measures in order to share their awareness of the company being put on an emergency management footing and proactively devote themselves to normalizing its operations at the earliest possible date.
KOWEPO officials said the rank-and file officials have been forming a consensus and are highly motivated to put into practice the steps to normalize its operations as KOWEPO’s reform steps were devised through a public contest of creative ideas among staff members.
KOWEPO President Cho urged his executives and staff members to share and translate into action the plans the company announced on top of the stable supply of electricity in order to restore public confidence.
President Cho, in an interview, said his company’s debt ratio, which stood at 128 percent in 2013, is projected to grow to 174 percent during next year when KOWEPO implements four mega power plant projects, including the Pyeongtaek co-generation power project. His company’s immediate goal is to cut the debt ratio to 115 percent through reducing debts by 1.5 trillion won by 2017.
To this end, Cho said, KOWEPO plans to reduce its stake in the Myanmar gas co-generation power project from the current 37 percent to 5 percent. The company plans to acquire an O&M right related to the project instead of disposing of all its stakes, he said.
Cho added that KOWEPO also plans to dispose of a 150MW-class photovoltaic power plant project it signed with Boulder City in Nevada, the United States, in 2012.
CEO’s New Year’s Message
KOWEPO President Cho said, “Mana-gement conditions for the year 2014 are seen as the worst crisis. Confrontations between the United States and China and between Japan and its neighboring countries as well as political conditions surrounding the Korean Peninsula are making things worse, and the United States’ tapering of quantitative easing, Japan’s low-yen policies, and the global recession have slowed down the growth of the national economy, and prospects of electricity and other energy industries are not bright,” he said.
“The government and the general public are demanding high-powered restructuring measures, including the normalization of public entity management as the nation is put on alert against soaring national debts,” said President Cho. “We at KOWEPO are also faced with a heap of difficult tasks, including the stabilizing of electricity demand and supply, the pushing of mega construction projects, and the planned relocation of KOWEPO headquarters.”
“No matter how hard we’re faced with the situation, we will be able to overcome any crisis with the spirit of a galloping horse. Let’s make a fresh start with a determination to renew ourselves before embarking on this long journey,” he said.
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