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Electric, nuclear power firms get A rating in latest gov't evaluation of public institutions

Published: 20 Jun. 2025, 19:14

Korea Electric Power Corporation headquarters in Jung District, central Seoul [NEWS1]

A total of 15 public institutions, including the Korea Electric Power Corporation (Kepco) and Korea Hydro & Nuclear Power (KHNP), received an A rating in the government’s latest management performance evaluation.

The head of the Korea Housing and Urban Guarantee Corporation, however, which was rated D for a second consecutive year, has been recommended for dismissal.

The Ministry of Economy and Finance announced the results on Friday during the sixth meeting of the Ownership Steering Committee, presided over by Second Finance Vice Minister Lim Ki-keun.

A total of 87 institutions were evaluated, including 32 state-owned enterprises and 55 quasi-governmental organizations. The evaluation focused on financial performance, productivity and fulfillment of public responsibilities, including the implementation of government policies such as price stabilization, housing supply and investment expansion.

No institution received the highest possible rating. Lim said the top grade requires excellence across all evaluation areas, and none met that standard this year, following last year as well.

Among those that received an A rating were Korea South-East Power, Korea Southern Power, the National Pension Service and the Korea Trade Insurance Corporation.

This photo, provided by the Korea Electric Power Corp., shows the Barakah nuclear power plant in the United Arab Emirates. [YONHAP]

Kepco, which was rated B last year, was recognized for efforts to stabilize electricity pricing and reduce its deficit that led to a profit turnaround, resulting in an A rating. The utility posted 8.36 trillion won ($6.11 billion) in operating profit and 3.62 trillion won in net profit last year, its first surplus in four years and best performance in eight.

KHNP also received an A rating after successfully securing a nuclear power plant deal in the Czech Republic and reporting its highest revenue and profit in eight years. According to Kwack Chae-gi, head of the state-run enterprise evaluation division, its strong overseas performance was a key factor for energy sector firms.

The Korea Gas Corp. improved from a D to a B rating, and Korea Gas Safety Corporation from B to A.

Cooling towers operate at the Dukovany nuclear power plant operated by CEZ AS, near the village of Dukovany, the Czech Republic, on May 12. [EPA/YONHAP]

By contrast, institutions in the land and transport sectors received weaker evaluations due to a downturn in the construction industry. The Korea Housing Finance Corporation, Korea Real Estate Board, Korea Infrastructure Safety and Technology Corporation, Korea Railroad Corporation and Korea Land and Geospatial Informatix Corporation all received C ratings.

The Korea Land and Housing Corporation was rated B, one notch higher than last year. The company said the improvement reflected its active implementation of housing policy despite a sharp decline in supply.

The Korea Housing and Urban Guarantee Corporation, which has faced criticism over a string of rental fraud cases, received a D for a second year, making President Yoo Byung-tae eligible for dismissal. Heads of institutions that receive an E rating or two consecutive D ratings are subject to removal if they meet the tenure requirements.

This file photo taken June 3 shows the building of Korea Electric Power Corp. inside the Taean Power Station, where a subcontracted worker died from being trapped in a machine. [YONHAP]

Other agencies, including the Korea Airports Corporation and the Korea Tourism Organization, failed to receive strong evaluations amid ongoing leadership vacancies linked to allegations of political appointments.

Thirteen institutions received D or E ratings, nearly the same as last year. Nine institutions, including the Korea Coal Corporation, were rated D. Four others, including the Korea Mine Rehabilitation and Mineral Resources Corporation, were rated E.

Institutions that received a C or higher will be eligible for performance-based bonuses, with the amount adjusted by rating. Those rated D or E will face operating budget reductions and must submit management improvement plans and undergo consulting.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]