ID :
42068
Thu, 01/22/2009 - 11:22
Auther :
Shortlink :
https://www.oananews.org//node/42068
The shortlink copeid
KEPCO mulls entering real estate development market
SEOUL, Jan. 21 (Yonhap) -- South Korea's electric power monopoly is considering diversification into the real estate development market to generate more profit, the head of the state-controlled company said Wednesday.
Kim Ssang-su said in a meeting with reporters that generating extra earnings
through the extensive property holdings of Korea Electric Power Corp. (KEPCO)
translates into gains for the general public.
KEPCO, ranked second among South Korea's major companies in terms of assets,
controls 16.50 million square meters of land valued at 3.43 trillion won (US$2.50
billion), while the buildings it owns have been estimated to be worth an
additional 1.84 trillion won.
The president had stressed upon taking the helm last year that the company must
actively try to generate profit, and that relying exclusively on power generation
is not a viable option for growth.
He said there is a need to properly assess the value of KEPCO land so it can be
better used for economic activity.
"Under existing law, KEPCO must sell it headquarters office in southern Seoul and
move to Naju by 2012," Kim said. The move to Naju, 355 km southwest of the
capital city, is part of the government push for balanced growth.
He said that instead of simply selling the land, KEPCO plans to join a
development consortium that could raise the value of the real estate. The land,
located next to the huge COEX convention center, is estimated to be worth more
than 1 trillion won.
Profits from such a transaction could be used to help build new power plants,
improve the country's electric power infrastructure, and engage in overseas
operations.
The executive added that generating profits could lessen pressure to raise
electricity prices, which can have an ill effect on the national economy.
Related to Kim's plan, KEPCO said that it is trying to persuade lawmakers to
change existing laws that effectively ban the company from engaging in businesses
outside power generation.
The Ministry of Knowledge Economy, which is in charge of the country's industry
and energy policies, said last year that it opposes any measures by KEPCO to
become a real estate developer.
The president added that while KEPCO will allow voluntary retirement as part of
its efforts to streamline operation, it will only consider laying off workers as
a last resort.
Kim Ssang-su said in a meeting with reporters that generating extra earnings
through the extensive property holdings of Korea Electric Power Corp. (KEPCO)
translates into gains for the general public.
KEPCO, ranked second among South Korea's major companies in terms of assets,
controls 16.50 million square meters of land valued at 3.43 trillion won (US$2.50
billion), while the buildings it owns have been estimated to be worth an
additional 1.84 trillion won.
The president had stressed upon taking the helm last year that the company must
actively try to generate profit, and that relying exclusively on power generation
is not a viable option for growth.
He said there is a need to properly assess the value of KEPCO land so it can be
better used for economic activity.
"Under existing law, KEPCO must sell it headquarters office in southern Seoul and
move to Naju by 2012," Kim said. The move to Naju, 355 km southwest of the
capital city, is part of the government push for balanced growth.
He said that instead of simply selling the land, KEPCO plans to join a
development consortium that could raise the value of the real estate. The land,
located next to the huge COEX convention center, is estimated to be worth more
than 1 trillion won.
Profits from such a transaction could be used to help build new power plants,
improve the country's electric power infrastructure, and engage in overseas
operations.
The executive added that generating profits could lessen pressure to raise
electricity prices, which can have an ill effect on the national economy.
Related to Kim's plan, KEPCO said that it is trying to persuade lawmakers to
change existing laws that effectively ban the company from engaging in businesses
outside power generation.
The Ministry of Knowledge Economy, which is in charge of the country's industry
and energy policies, said last year that it opposes any measures by KEPCO to
become a real estate developer.
The president added that while KEPCO will allow voluntary retirement as part of
its efforts to streamline operation, it will only consider laying off workers as
a last resort.
