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Transition Committee “Never discussed whether to privatize KEPCO”

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On the 29th, the Presidential Takeover Committee said, “We have never discussed whether to privatize KEPCO.”

The transition committee said on the same day, “The need for change in KEPCO’s monopoly power sales market does not mean privatization.”

The transition committee explained, “‘The need for change’ means that it is desirable for the electric power market to change to a competitive market structure because it is necessary for new and diverse electric power service providers to appear.”

The day before, the transition committee announced “the basic direction and five key tasks for the normalization of energy policy,” and said, “We will gradually open up KEPCO’s monopoly sales structure.”

Some media interpreted this as suggesting the possibility of privatization of KEPCO.

The current electricity trading market is structured in such a way that KEPCO purchases electricity from power generation companies through the Korea Power Exchange and sells them exclusively. If the system is changed, a structure in which private power generation companies directly contract with consumers such as companies and supply them directly will be possible.

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