Korea Electric Power Corp. (KEPCO) has adopted a system to provide a package of support ranging from startup to export for SMEs that start business in the so-called Bitgaram Energy Valley or relocate there. The move is designed to nurture the energy valley into an innovative zone of the creative economy where companies are ¡°glocalized.¡±
KEPCO, which relocated to Bitgarm Innovative City of Naju, Jeollamnam-do, last year, is accelerating efforts to translate into action its goals of creating new growth engines in the Bitgaram Energy Valley and reinvigorating the regional economy.
As part of efforts to nurture start-ups and research companies at the energy valley, KEPCO has introduced a collaboration research program designed to nourish new SMEs in such energy segments as smart grids, energy storage systems and direct currency distribution. KEPCO has offered up to 85 percent of R&D outlays in financial support to SMEs. The company financed 110 billion won to carryi out a total of 597 collaboration research tasks during the period between 1993 and 2014.
Each beneficiary of the collaboration research program, which research convergence technologies, will receive up to 2 billion won, up from the current 1 billion won. KEPCO will provide up to 200 million won for each commissioned research task with university and research institutions to promote collaboration between the industry, campus and research circles.
In a related development, KEPCO, KEPCO KDN, KEPCO KPS, and Korea Electrical Engineering & Science Research Institute will jointly contribute 20 billion won to establish the so-called Energy Valley Center, charged with overall R&D support to industry, campus and research circles as well as provision of legal and administrative assistance on the establishment and operation of startup businesses. A groundbreaking ceremony for the project will take place in the second half of this year.
Energy funds will be raised to give a helping hand to companies that have technology prowess but lack money. The move is designed to help mid-size superstars rise to become global companies.
Companies at the energy valley will be given additional points in evaluation of R&D tasks, thus invigorating the establishment of start-up businesses and relocation there, while they are entitled to a preferential purchasing system in which they have their products purchased preferentially when their R&D research outcomes are evaluated highly. The preferential purchasing ratio will rise from the current 20 percent-50 percent to a range of 40 percent-70 percent.
Earlier, KEPCO unveiled a new vision containing five core values that will be needed for it to become a world-class energy company committed to creating innovative values that will help it succeed over the next 100 years. The vision signifies KEPCO¡¯s determination to become a first mover to innovate itself and take the initiative in the future energy industry.
KEPCO is striving to establish electricity system infrastructure through the convergence of the electricity industry and ICT, as well as smart grids. The company is also implementing a micro grid project to spread the use of energy storage systems (ESS) and change diesel-powered plants into clean energy plants.
With the relocation of its headquarters to Naju, KEPCO is now one of the largest companies in the Jeolla provincial area.
¡°KEPCO will take root and lead a balanced national development as one of the nation¡¯s largest public entities through coexistence with the local community,¡± KEPCO President Cho Hwan-eik said.
During her tour to the Bitgaram Innovative City of Naju on April 1,President Park Geun-hye said: ¡°Naju has been evolving with a new look as the innovative city, and KEPCO, the nation¡¯s representative energy supplier, is striving to attract some 500 energy firms to create the so-called Energy Valley.¡±
There are many new value-added energy industries, such as renewable energy and storage. The energy industry is one of 24 state priorities the government plans to nurture, said Park, adding that it is a good idea for foreigners to come to Naju to take a look at all things about energy.
Currently, 13 public entities, including KEPCO, have been relocated to Naju, the joint innovative city between Gwanju and Jeollanam-do. Three more are to follow suit by next year.