Korea Electric Power Corp. (KEPCO) has come out with its 2015 budget plan, calling for 5.5 trillion won in spending this year, a 54 percent surge over 2014, It’s equal to a jump of 2 trillion won. The goal is to enhance the safety of electricity facilities, brace for safety and disasters, and secure new growth engines in the new energy field.
Looking specifically at the budget, KEPCO has allocated some 2.1 trillion won to bracing for safety and disasters and preventing breakdowns. The move is designed to reinforce the power grid and strengthening checking and repairing of any facilities that are prone to breakdowns.
In an effort to enhance public acceptance of electricity facilities, the power company set aside 1.8 trillion won, up some 260 billion won from last year. The money will be made available to expand such eco-friendly facilities as underground transmission lines as well as providing financial support and compensating residents living in neighborhoods with transmission towers and other facilities.
In particular, KEPCO has allocated some 1 trillion won tin securing future growth engines in the new energy industry. The power company plans to lead investment into such new energy industry segments as smart grids, electricity storage systems, micro grids, wind power/photovoltaic power and other new and renewable energy sources in accordance with the government’s scheme to nurture new growth engines. It plans to spend some 300 billion won, up some 100 billion won over 2014, into such R&D activities as promising future technologies, site technologies and support for SMEs.
With the relocation of its headquarters to Naju, KEPCO plans to make huge investments into projects to promote the development of the region, including financial support to nearby SMEs and collaboration among industry, research and academic circles.
KEPCO plans to front-load 60 percent of this year’s budget in the first half of the year with a focus on ensuring the safety of electricity facilities and prevent breakdowns. The upcoming investments are expected to create a total of 6,672 jobs.
KEPCO President Cho Hwan-eik said expanding the budget while implementing a debt reduction plan according to its promise to the government will be conducive to revitalizing the national economy, enhancing the safety of electricity facilities and securing future growth engines.
In his New Year’s message, KEPCO President Cho said he set the 2015 management buzzword as “ilshinweoli,” meaning a determination to be reborn with a new mindset in a new place with the relocation of its headquarters to Naju.
“Some 20,000 executives and staff members, determined to change themselves anew every day, will devote themselves along with regional society to making the innovative city of Bitgaram (Naju) a world-class energy valley and elevating KEPCO into the most smart, clean, world-class company,” he said.
In a related development, KEPCO teamed up with power companies and local government bodies to develop Gwangju and the innovative city into the “Bitgarm Energy Valley,” which will specialize in power and energy industries.
KEPCO President Cho joined KPX President Yoo Sang-hee, KEPCO KPS President Choi Yeu-geun, KEPCO KDN President Im Soo-kyung, Gwangju Mayor Yoon Jang-hyun, Jeollanam-do Gov. Lee Nak-yeon and Naju Mayor Kang In-gyu in signing an MOU to build the energy valley on Jan. 21.
Earlier, KEPCO announced a plan on the development of the energy valley, calling for attracting 400 to 500 energy technology companies, research institutes, industry associations and other bodies over the next decade. The plan also calls for nurturing SMEs with its financial support and investing into R&D collaboration projects among regional industry, academic and research circles to explore promising future technologies and brand-new industries.
