Korea Electric Power Corp. (KEPCO) has agreed to expand cooperation in the electricity and nuclear power sectors with Saudi Arabia following President Park Geun-hye’s recent trip to the Middle Eastern country.

KEPCO President Cho Hwan-eik signed an MOU to promote cooperation in the power industry with Saudi Electricity Company (SEC) at the Four Season Hotel in Riyadh on March 3. Under the deal, the two companies have agreed to collaborate in such areas as power generation, new/renewable energy, power transmission/distribution, new energy industries and making joint inroads into third countries, including nuclear power. KEPCO signed the agreement to shore up its position for winning Saudi Arabia’s electricity and nuclear power projects. 

SEC is a state-run power entity responsible for 85 percent of Saudi Arabia’s total power demand.  

KEPCO also signed an MOU on cooperation among Korean and Saudi Arabian nuclear power equipment suppliers. Attending the signing ceremony were four Korean equipment suppliers — Hyosung Corp., Hyosung Goodsprings, LG Electronics and Dong Yang Corrosion Engineering (DYCE) — five contractors, including Hyundai E&C, Daelim Industrial, Samsung C&T, and Doosan Heavy Industries & Construction. The participants from Saudi Arabia included equipment suppliers like SSEM, Zamil Group, X-Smart, HGIS, as well as seven contractors, including Nesma & Partners, RTCC, El Seif, Kettaneh, Al Rushaid, Nasser Al-Harjri and National Contracting. The two sides agreed to share information on the construction of nuclear power units, exchange technologies related the construction sector and to establish diverse partnerships through localization in preparation for Saudi Arabia’s future nuclear power unit projects.

“The signing of partnerships among intermediate raw material/ equipment makers as well as contractors from both countries is the significant beginning of actual cooperation between the industries of both countries for Saudi Arabia’s push for future nuclear power projects,” said KEPCO President Cho at the ceremony. Cho presented a vision for shared growth for the industries of both countries through the winning of nuclear power projects. 

Meanwhile, KEPCO sponsored an exhibition on the Korean nuclear power industry in cooperation with the Korea Nuclear Association for International Cooperation to demonstrate the Korean nuclear power industry’s capabilities and technology for some 200 Saudi government and industry officials.

KEPCO’s Debt Falls More than Expected

KEPCO President Cho said his company plans to lower its debt ratio to two-digit levels and accelerate efforts to explore new growth engines this year.

Cho made the remarks at a meeting with reporters at Sejong City on Feb. 26. 

“We posted 1,039.9 billion won in net profit in 2014, achieving a profit for the second straight year,” he said, adding that he was confident in management this year and room for the company to make investments for the future. Cho also said his company will invest more in exploring new growth engines and overseas projects. 

KEPCO saw its debt fall to 5.1 trillion won, equivalent to twice its debt reduction goal of 2.7 trillion won.