State power monopoly's deficit likely to grow this year

SEOUL, Jan. 18 (Yonhap) -- State-run Korea Electric Power Corp. (KEPCO) said Sunday its deficit is likely to widen this year.

In its 2009 forecast, the state power monopoly said its net loss could top 2.7
trillion won (US$2 billion), higher than the level of 2.2 trillion to 2.3
trillion won predicted by many analysts.
Compared with the company's projected sales of 33.36 trillion won for this year,
its expenses are expected to amount to 36.13 trillion won, the report said.
The company said its expected loss for two years in a row could be blamed on fuel
costs which have not fallen as much as spot prices of liquefied natural gas (LNG)
or soft coal.
Market watchers expect the company will continue raising electricity charges this
year to cover its anticipated business losses.
The government increased electricity rates by 4.5 percent in November to reflect
hikes in global energy costs.
The company reported a net loss of 325.3 billion won (US$220 million) during the
third quarter of last year due to a weak local currency and higher fuel costs.
The power company said it will also cut its workforce by 18,000, or 11 percent,
and halve the number of its branches to reduce costs.