Motions begin for Kepco’s CEO to stay on another year

The Korea Electric Power Corporation (Kepco) has started working on extending CEO Cho Hwan-eik’s term by another year to end on Dec. 16, 2016. Cho’s term as CEO officially came to an end as of Dec. 16, 2015, but the government has decided to allow an extension in recognition of his strong performance, according to a government official on Tuesday.

It is unusual for the CEO of a state-run company to serve two terms. The term extension will be confirmed after a shareholders’ meeting by the end of February and after the Blue House grants permission.

The key achievements cited in the call for Cho’s extension was the reduction of Kepco’s corporate debt and successful selloff of its former headquarters in Samseong-dong, southern Seoul.

Kepco suffered a debt-to-asset ratio as high as 136 percent in 2013, but that rate has come down to 101.5 percent as of the third quarter last year.

Cho has also been praised for fostering clean energy businesses, which fit global demand for follow-through on the carbon emission reduction goals pledged at the Paris accord.

With the achievements, Kepco’s stock price reached a record-high 53,300 won in Oct. 27 last year, up from 28,650 won on the day of Cho’s inauguration in December 2012.