KEPCO to be separated into five units by April

The electric power generation division of the Korea Electric Power Corp. (KEPCO) will be divided into five subsidiaries by the end of April ahead of privatization in the first half of next year. The separation of its electric power supply division will be completed in the first half of 2002.

Based on an examination of a draft plan recently unveiled by the Korea Energy Economic Institute, the Ministry of Commerce, Industry and Energy said Thursday that it had prepared a government blueprint for the division of KEPCO. The plan calls for dividing the electric power generation firm into five subsidiaries for eventual disposal. However, the atomic power division will be excluded from the privatization plan, taking into account safety concerns.

After finalizing the plan by the end of February through the tripartite meetings among KEPCO, the labor union and the ministry, the government will complete the work of spinning off the five pivotal power plants, located in Samchonpo, Boryong, Tae-an, Hadong, and Tangjin, by the end of April.

The ministry said the privatization of the electric power generation division would be possible in February next year, after a preparation period of one year.