KEPCO Aims to Become a Global Top 5 Energy & Engineering Company
KEPCO aims to become one of the world's top five energy and engineering companies by 2020 through low carbon and green growth projects.
To achieve the ambitious target, KEPCO has set the 2020 new vision comprising of three goals, four directions and 10 tasks, a company spokesman said.
"Under this vision, KEPCO will leap toward one of the top five global energy and engineering company from the present 10th position by leading low carbon and green growth industry and employing excellent managerial skills," the spokesman said.
The three strategic goals are: total sales of 85 trillion won, up 2.7-fold over 2008; over 5% in the return on invested capital (ROIC) ratio, up from -3.3% in 2008; and overseas sales of 26 trillion won to make up 3% of total sales.
The four strategic directions set by KEPCO are development of green technoloy, expansion of business arena, promotion of overseas projects, and improvement of managerial efficiency.
"To attain the target, we have also set the 10 strategic tasks - development of low carbon generation technology, high-efficiency transmission and distribution technology, demand-creating green technology, commercialization of green technology, horizontal diversification of green power, advancement into overseas markets in all areas, self-reliance of generation fuels, infrastructure expansion of overseas projects, strategic cooperation between groups, and innovation of managerial infrastructure," he said.
Vision of Overseas Projects
"To jump toward a global top five by 2020, we will make an all-out effort to offer the best services in all energy fields, including power generation and resources development," the spokesman said.
"At the same time, we will actively push for new independent power provider (IPP) projects and resources development projects," he said.
Noting that KEPCO plans to expand its overseas projects through business and regional diversification, the spokesman said, "We will diversify the thermal power generation-centered projects into thermal power, hydroelectric power, atomic power, resources development and transmission and distribution projects, while expanding strategic bases from the present China and the Philippines to the Middle East, Central Asia and Africa."
"Along with this," he continued, "KEPCO will strengthen risk management through verification of validity through inside control system and project financing-style fund-raising principle."
As a means of enhancing price competitiveness of its overseas projects, KEPCO projects to push for reducing financial, operation and maintenance (O&M) costs and benchmarking advanced companies.
At present, KEPCO engages in 13 power generation projects in eight countries _ the Philippines, China, Saudi Arabia, Jordan, Mexico, UAE, Lebanon and Nigeria.
Resources Development Projects
KEPCO is now propelling a total of eight overseas resources development projects comprising of six in Australia and two in Canada.
"In Australia, KEPCO is securing 24 million tons of bituminous coals a year from the six resource development projects. In Canada, it is also securing 1,040 tons of uranium annually from the two projects," said the spokesman.
"Through the overseas projects, we can secure power generation fuel on a stable basis, hedge volatility of fuel costs following sharp ups and downs of resource prices, and create independent profits through takeovers of overseas mines, including Moolarben Mine in Australia," he explained.
Commenting that KEPCO is now participating in the $18.6 billion nuclear power plant project in UAE, the spokesman said, "Our company plans to export its nuclear power plant facility and technology to Egypt, South Africa, Vietnam, India, Turkey, Malaysia, Kuwait, Saudi Arabia and Thailand."
8 Green Technologies and Low Carbon, Green Growth
In 2011, KEPCO plans to accelerate development of eight green technologies
- - integrated gasfication combined cycle (IGCC), carbon capture & storage (CCS), smart grid, electric car charging infrastructure, export-type nuclear plant, electric energy house, high voltage direct current (HVDC) and superconductivity technology.
"To build a low carbon managerial system, we will set the CO2 reduction target and make our best effort to secure carbon emission credit through a clean development mechanism (CDM) project," he said.
Commenting that KEPCO will invest 3.1 trillion won for development of eight green technologies, the spokesman said, "KEPCO aims to record 14 trillion won in green sales in 2020, a 700% increase over the present green sales of 20 billion won, and secure 6.9 million tons of carbon emission rights."
"In line with this, KEPCO will make a strong push for commercialization of green power technology, expansion of global green business, construction of low carbon energy systems and expansion of low carbon green growth infrastructure," he noted.
Related to the strategy, KEPCO CEO Kim Ssang-soo said, "If KEPCO succeeds in the global green race with its challenging spirit and passion for green growth, it will emerge as a main force leading the Korean economy with a per capita GDP of $30,000 in 2020."
KEPCO's Major Managerial Achievements
Under the powerful innovation will of CEO Kim, KEPCO has been pushing ahead with profit-centered management, escaping from the past passive attitude toward exploration of blue ocean and globalization.
"First of all, KEPCO has pushed for innovation of organization and personnel management through mergers or abolition of business parts, simplification of occupation systems, operation of innovation schools, and CEO direct communication," he said.
"In addition, it introduced a new managerial technique, called tear-down & redesign (TDR), to reconsider existing businesses from a new viewpoint and method. In 2010, KEPCO earned 590 billion won worth of economic effects through TDR activities," said the spokesman.
Thanks to such excellent maangerial results and strong innovational will, KEPCO won the "S" degree in the government's managerial appraisal last year, securing the top position in the degree of integrity and customer satisfaction among public institutions.KEPCO, which celebrates the 50th anniversary of its foundation this year, also proclaimed the "KEPCO Way" pursuing the five core values -- global excellence, customer respect, performance driven, challenge & innovation, and social responsibility.