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KEPCO’s ‘worst deficit in history’, corporate card use booms

It was revealed that the employees of KEPCO, which is experiencing the worst business difficulties in history, used corporate cards with great excitement. Neglectful management of public corporations has come to the fore once again.

On the 6th, the office of Kim Seong-won, a member of the National Assembly Committee on Small and Medium Enterprises, announced, as a result of checking food expenses of 500,000 won or more paid through corporate cards in Seoul, Busan, KEPCO, and Ulsan headquarters in 2020-2021, a large number of improper executions were found.

First of all, KEPCO Seoul Headquarters Planning and Management Office Management Support Department had lunch at a famous Korean beef restaurant after an employee retirement event at the end of March last year and paid 4,09,910 won with a corporate card.

It was a large amount for dinner, and at that time, social distancing was in phase 2 and private gatherings of more than five people were prohibited. It is noted that public corporations have breached government quarantine guidelines beyond the lax use of corporate cards.

At the end of November 2020, the distribution operation department of the Seoul Headquarters Electricity Business Division paid 705,455 worth earned with a corporate card at a Japanese restaurant in Da-dong, Jung-gu, Seoul for sports and cultural events.

Earlier in November of that year, the customer support department of Mapo Yongsan branch of the Seoul headquarters used 1,124,536 he earned as a corporate card at the Lotte Hotel for an athletic and cultural event at the customer support office. The next day, the Ministry of Finance and Materials of the Planning and Management Office also paid 1.77 million won at the Shinsegae Chosun Hotel.

KEPCO Seoul, Busan, and Ulsan headquarters have paid for meals several times with corporate cards at 5-star hotels in the name of sports and cultural events over the past two years. KEPCO currently uses a total of 2636 corporate cards, excluding business travel cards and high pass cards.

As profitability declines this year, KEPCO is conducting intensive self-rescue efforts. Although international energy prices have risen sharply, this is due to the failure to reflect this in the electricity rates in a timely manner. As a result, it has already posted an operating loss of 5,860.1 billion won last year, the biggest loss in history. This year, a much larger operating loss of 40 trillion won is expected.

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