The government of South Korea plans to partially open the electricity supply market, currently limited to state-controlled KEPCO, to the private sector, as part of a broader efficiency, debt-cutting and management transparency improvement plan.
In a first phase, the government will relax regulations on electricity sales by KEPCO and will gradually open the market to private companies; renewable power producers will be allowed to sell electricity directly to consumers.
Eight energy companies, including Korea Hydro & Nuclear Power (KHNP) and five power companies, will gradually be listed from the first half of 2017. The government will retain 51% in the companies and will sell 20 to 30% of their share capital to the market.
State-owned companies will be "streamlined": Korea Coal Corporation will progressively reduce its staff until being stopped, while Korea National Oil Corporation will cut its employee basis by 30% by 2020; Korea Resources Corporation will progressively reduce its overseas resource development.
In the gas sector, the imported LNG market, currently dominated by Kogas, will be more opened to the private sector. Private companies will be allowed to supply gas on the wholesale market as of 2025.
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