Officials of Korea Southern Power Co. (KOSPO) and other related companies, including KOSPO President Shin Jeong-shik, participate in a ceremony to establish Korea Power Generation Equipment Inc. (KPGE) on Nov. 27. (Photo: KOSPO)

Korea Southern Power Co. (KOSPO), which has established Korea Power Generation Equipment Inc. (KPGE), is accelerating efforts to help SMEs explore overseas markets.

The move comes after trade insurance industry firms offered preferential guarantees worth 20 billion won. It is expected to help Korean raw materials, parts and equipment makers secure export markets and continued growth. Korea Power Generation Equipment Inc. (KPGE) is a corporate entity specializing in overseas market entry.

KOSPO set up KPGE in cooperation with five companies. They are POSCO E&C, KC Kottrell, Enertork, Ergoteck and K-Tech.

KPGE is expected to spur overseas market exploration by exporting Korean power generation equipment by proxy, and providing a helping hand to Korean power generation equipment makers suffering from difficulties such as lack of specialized manpower and exporting experiences.

KOSPO now constructs and operates power plants in countries such as the United States, Chile and Jordan, while POSCO E&C specializes in power generation facilities as an EPC (engineering, procurement and construction) company.

KC Kottrell exports eco-friendly equipment abroad while Enertork produces power distribution transformers, energy storage system (ESS), and power-saver. Ergotech is a company specializing in domestic frontiers ergonomics and assistive technology. KPGE has synergetic effects by utilizing each business partner’s strengths.

KOSPO is now working as a majority shareholder with a 50 percent stake on a project to construct and operate a 1,085MW gas-fired combined-cycle power plant (CCPP) in Niles Cass County, Michigan.

The power company recommended Koran power facility makers to Kiewit, responsible for engineering, equipment and construction of the project to provide them with an opportunity to participate in a bidding and offering consulting for their participation in the bidding through a contract with a specialized consulting company.

The project will cost $1.05 billion and the plant is scheduled to be completed in March 2022 and run for 35 years. KOSPO is predicted to earn $500 million in annual average revenues. Korean boiler, transformer and other Korean components and equipment makers are expected to secure overseas markets and create jobs.

In September, an MOU was struck with K-sure to help Korean SMEs explore overseas markets and spur Korean-made equipment exports. Of late, an MOU was signed with Kibo to offer preferred guarantees worth 20 billion won to SMEs in the power and energy sectors. Such collaboration with public entities heightens execution, KOSPO said.

KOSPO President Shin Jeong-shik said, “KPGE will be pump priming for Korean SMEs to enter advanced countries and secure markets.” KOSPO will explore diverse ways to enhance export competitiveness of Korean SMEs, he added.