Company to lead state-of-the-art energy technology commercialization

Joong-jae Lee, Company president & CEO

Under the company's mission statement, Vision 2020, 'Global Energy Leader' Korea Hydro & Nuclear Power Co., Ltd. (KHNP) is firing new growth engines such as its new regeneration energy business and its overseas atomic energy projects. As part of such long-term strategies, the company is striving to become a 'techno-company', which concentrates its efforts on nuclear fuel technology development, new regeneration energy as well as atomic energy new technology development. Company president & CEO, Joong-jae Lee says in an interview with The Korea IT Times, "In addition to commercializing new, up-to-the-minute energy technology, KHNP aims at becoming the no. 1 atomic energy company in the world." The CEO emphasizes that KHNP is pursuing a concrete long-term goal of corporate excellence, not only in the domestic electricity generation business, but also in the world energy industry. The Korea IT Times is pleased to publish the following interview with Mr. Lee regarding KHNP's new research and development interests, his management policy, the company's plan to relaunch itself as part of our special edition for our March issue that will feature electricity IT. Q: Could you explain your current research and development efforts A: KHNP's atomic energy research development project is designed to help Korea become an advanced country in the area of atomic energy technology. Also, we are striving to boost national atomic energy competitiveness and to expand our overseas opportunities to introduce atomic energy technology. In the meantime, we have succeeded in developing the Korea Standard-model Atomic Reactor (KSNP) and at the same time, are seeking to advance into the world atomic electricity market through the development of the APR1400, a next-generation atomic energy reactor. KHNP has succeeded in localizing nuclear fuel for a heavy water reactor in 1987 as well as for a light water reactor nuclear in 1990. Q: What is KHNP's corporate vision as well as your own management philosophy A: We have made it our goal to become the most excellent electricity generating company in the world, in which the country can have confidence. KHNP is striving for stability, public trust, and the most advanced technology in the field. In addition, a culture of innovation and maintaining a corporate image are also important axes of our management policy. Q: Could you give our readers an overview of KHNP and explain how it came into being A: It was spun off from the Korea Electric Power Corporation (KEPCO) in April 2001. As such, our company became responsible for generating 40 percent of the total volume of domestic electric power. In terms of profit on sales of electricity, KHNP earned 5.7 trillion won in 2003. Moreover, KHNP, which has the world's 6th largest atomic-powered electricity generating facility, also has the world's highest level of capacity utilization for such a facility at 94.17%, compared to a global average of 78.9% in 2002. KHNP is considered a good bet by lenders; we received an A3 credit assessment from Moody's, an A minus from S&P, and an A minus from Japan R&I. With the development of the Korea Standardization-model for Nuclear-powered Electricity (KSNP), KHNP can now stand on its own feet in terms of nuclear power technology and has reached the stage where it can actually export this technology. Q: What does KHNP's mission statement, Vision 2020 'Global Energy Leader,' refer to A: This refers to our ability to spring into the No. 2 position in the world as a nuclear energy company and for Korea to leap into No. 4 spot in the world as a nuclear power generating nation. More information on KHNP is available at www.khnp.co.kr