Korea Electric Power to Eventually Be Privatized

The ruling party and the government plan to spin off the Korea Electric Power (KEP), a state-run monopoly company in Korea.
The basic plan proposed by the ruling party and the government is to divide the KEP's organization into three parts of generating electricity, bulk sending and local distributing.
They will introduce the principle of competition and try to privatize step by step in the long run.
To do so, they held a meeting on November 13 and agreed to initiate the restructuring and privatization of the KEP in this direction.
The government intends initially to divide the generating department of the KEP into two subsidiaries.
After that, the government will gradually open the sending or bulk transference network of the KEP to private companies and also divide the local distribution networks of the KEP into several companies.
The government will introduce an open competition system to set a price for electricity by way of bidding.
Meanwhile, the government announced on November 13 that it could mobilize more than 900 million dollars by selling the shares of the KEP which it currently retains.
According to the KEP, share price of the company rose recently to the 25,000 won level on November 7 from the 13,000 won level earlier this year.