Aiming high to be the leader of the global energy market, the Korea Southern Power Co. Ltd.
(KOSPO/www.kospo.co.kr) is making every effort to drive innovation on an ongoing basis, thus making remarkable progress in the power generation industry.
KOSPO has been separated from the Korea Electric Power Corporation (KEPCO) in April 2001 according to the government policy to strengthen the competitiveness of the domestic power generation industry.
It has six thermal power plants, one wind power plant in Hangyeong, and one pumped storage power plant in Cheongpyong, which amounts to a market share of 12.8% of total domestic power plants. Recently the Korea IT Times had an interview with Kim Sangkab, President and CEO of KOSPO, and heard his explanation on its overseas business activities, management strategy, and future business plan.
First of all, KOSPO is putting emphasis on overseas business activities. Based on its accumulated technologies and know-how, it is stepping up overseas marketing activities, believing that it should be the company's growth engine for future business. In July 1995, it sent two specialists to India in order to support the trial operation of a thermal power plant. In November 2005, in cooperation with KEPCO, it participated in Cambodia's power supply plan, while providing consulting services. Also, in 2006 it joined the Sebikit thermal power project of Indonesia jointly with KEPCO. In the near future, it will dispatch the company's experts to the project to provide professional services for plant construction management, power plant operation, and maintenance.
Furthermore, this company has recently succeeded in signing a consultancy agreement on planning electrical power system studies for Libya jointly with KEPCO, which is scheduled to provide consulting services from October 1, 2007. As mentioned above, consulting services for power generation and generation facilities is its core competence in overseas business activities. Therefore, it aims to promote these consulting services as a growth engine for future business. To this end, it will continue to foster global manpower resources, inviting experts specializing in the overseas plant marketing, and if necessary, jointly conducting a market survey and market exploration.
Meanwhile, from August 28 to September 5, KOSPO has conducted a road show for environment and generation facilities and materials export in joint cooperation with KOTRA in China, providing many small and medium Chinese businesses with the opportunity to explore the overseas market, and also suggesting a symbiotic cooperation model. Joining this event are 8 Chinese companies making 153 agreements worth a total of about US$91 million in exports. In March 2007 it participated in WETEX 2007 in Dubai, while holding an export consultation meeting for power generation industry in Oman.
Four management strategies toward a world-class company
KOSPO is practicing four management strategies: management reform, corporate value enhancement, optimal resources management, and customercentered management philosophy.
Also, it is trying to raise its proceeds to the level of 5 trillion Korean won (about US$5.43 billion) by the end of 2011. To reach its management goal, it is focusing not only on the efficiency of domestic power generation, but also overseas business activities. It is also pushing ahead with the development of new technologies for recycling energy including wind power generation, in which KOSPO is in a leading position.
Regarding credit rating, its domestic rating is an AAA, and in the international credit rating, it has Moody's A1 and S&P A-, both of which mean stablility.
In 2007, in an effort to raise overseas credit rating, it invited Citigroup as a consultant, a well-known international financial group, and held an annual evaluation meeting in July of this year in which there was a management performance review for 2006 and questions and answers on its future investment and management plan. Meanwhile, it is impressive that KOSPO is practicing transparent management by sharing accounting information with customers and business partners. CEO Kim stressed the importance of transparent and clean management, saying that it would consequently lead not only to obtaining investor trust, but also to raising credit rating at home and abroad.
Concerning its future management plan, KOSPO is putting priority on practicing the detailed plans of those 4 great strategies, that is, management reform, corporate value enhancement, optimal resources management, and customer-centered management philosophy.
First, regarding the management reform, the company will continue to drive innovation, creating dynamic corporate culture, and activating knowledge management. Secondly, to raise corporate value it will seek financial security, cost saving, and profitability, enhancing brand value, and stepping up overseas market exploration. Thirdly, for the sake of optimal management of resources it will pursue the efficiency in power generation and plant construction, laying a foundation for digital management, establishing a safety system, strengthening R&D and manpower education, and setting up an efficient fuel purchasing system. Finally, to put a customer-centered management philosophy into practice it will keep practicing ethical management, expanding social contribution activities, building a symbiotic cooperation model with small and medium-sized enterprises, maintaining sound labor management relations, and conducting environmentally- friendly management.