[Column] Why Should the Integrated Headquarters of the Five Power Generation Companies Be Located in Naju?

The ongoing discussions by the Ministry of Climate, Energy, and Environment regarding the integration of state-owned power generation companies signal a historic turning point in South Korea's energy transition. With a proposal to merge the five power generation companies, which have operated separately for 25 years since the 2001 restructuring of the electric power industry, into a single entity, the nation is embarking on a full-scale innovation aimed at achieving carbon neutrality, strengthening energy security, and building a power system centered on renewable energy.

Establishing World-Class Energy Governance

The significance of this integration lies not in a mere organizational reshuffle or scaling up. It is a fundamental restructuring of national energy governance to move beyond dependence on overseas fossil fuels and toward becoming an energy self-reliant country based on renewable energy. This is a decisive step to swiftly and cohesively drive major changes—such as phasing out coal by 2040 and expanding renewable energy—under a unified chain of responsibility.

Byungtae Yoon, Mayor of Naju

Above all, South Korea is a representative energy-importing nation, with an energy import rate exceeding 90%. In a situation where the country relies on energy imports worth approximately 240 trillion won annually, disputes in the Middle East or fluctuations in international energy prices translate directly into burdens on the national economy. Energy security is a matter of national survival, no less critical than national defense.

The integration of the five power generation companies must serve as a solid stepping stone for South Korea's energy transition, going beyond a mere organizational merger to overcome structural vulnerabilities and move toward energy self-sufficiency.

Where, then, should the headquarters of the integrated power generation company that will lead this massive transition be located? The answer is clear. The energy capital of South Korea—Naju—which is the hub of the nation's electric power industry and the future energy ecosystem. Here are several reasons supporting this justification.

First, Naju is home to the Korea Electric Power Corporation (KEPCO), Korea Power Exchange, KEPCO KPS, and KEPCO KDN—core institutions of South Korea's electric power industry. If the integrated headquarters is established in Naju, it would enable the creation of world-class energy governance, where power generation, transmission and distribution, electricity trading, maintenance, and digital operations are organically connected within a single space. This will mark the starting point for a groundbreaking innovation in the national electric power system, dramatically enhancing efficiency.

Moreover, as the world now races to secure renewable energy in response to carbon neutrality, RE100, and the expansion of the artificial intelligence (AI) industry, the competitiveness of the electric power industry will depend not on the number of power plants, but on how efficiently abundant renewable energy can be produced, stored, traded, and managed.

Second, Jeonnam is the largest renewable energy production base in South Korea, with the nation's best conditions for solar power generation and world-class offshore wind potential. At its center, Naju has built a competitive edge in research and development, demonstration, and commercialization of future energy industries, thanks to the Korea Institute of Energy Technology (KENTECH), energy valley enterprises, KEPCO, and the Korea Power Exchange.

Third, when the administrative integration of Jeonnam and Gwangju is fully realized, Naju will become the central axis of South Korea's largest energy and science-technology innovation belt, encompassing KENTECH, Chonnam National University, and Gwangju Institute of Science and Technology (GIST). If a wide-area industry-academia-research cooperation system can be established in key future energy sectors—such as basic science, artificial intelligence, next-generation power grids, and the hydrogen economy—the future competitiveness of the integrated power generation company will be further strengthened.

Furthermore, Naju is a city optimally equipped to respond to inevitable industrial structural changes during the energy transition and to achieve a people-centered, just transition.

In the era of coal phase-out, the priority is not to cling to disappearing industries, but to support the transition to new industries. With research capabilities centered on KENTECH, as well as a professional education and training system that includes KEPCO KPS's Human Resources Development Institute, the Energy Advanced Technology Research Institute, Energy Valley Enterprise Development Institute, and Korea Polytechnics Power Technology Education Center, Naju offers the nation’s top infrastructure for retraining workers and supporting job transitions.

Another crucial aspect of industrial transition is the settlement of people. Only when employees and their families can stably settle in a new location and plan for their future, can true synergy from integration be achieved.

Fourth, Naju has consistently developed a pleasant residential environment and outstanding educational, cultural, and medical infrastructure centered on the innovation city. Through IB education, a future education support center, and a gifted education center for energy, the city is building a solid foundation for nurturing future talent. Furthermore, tailored welfare systems are being strengthened throughout the life cycle, such as free rental housing for young people, support for startups, and expanded support for childbirth and childrearing.

As the central city of the Jeonnam-Gwangju megacity, Naju offers a wealth of lifestyle and cultural infrastructure, enhancing the quality of life for relocated employees and their families—an advantage unique to Naju.

Fifth, Naju Innovation City is the only jointly developed innovation city in the country, created by Gwangju and Jeonnam. It stands as a symbol of Gwangju-Jeonnam cooperation and a leading success model for national balanced development policy. Considering the recent active discussions around the Jeonnam-Gwangju administrative integration and the government's second-phase policy for public institution relocation, locating the integrated headquarters of the five power generation companies in Naju would set a new milestone for regional coexistence and balanced development.

Core of the Energy and Science-Technology Innovation Belt

The headquarters of the integrated power generation companies is not just about the birth of a massive state-owned enterprise worth 30 trillion won. It is a national project that must simultaneously achieve energy security, carbon neutrality, industrial competitiveness in the RE100 era, responsiveness to surging electricity demand in the AI era, and balanced regional development—laying the foundation for South Korea’s energy strategy for the next century.

And the foundation for this already exists in South Korea.

Naju, with its concentration of functions such as power generation, transmission and distribution, electricity market operations, research and development, and talent cultivation, boasts South Korea’s only full-cycle energy ecosystem. The energy transition is achieved not through dispersion, but through concentration. Growth comes from gathering together, and strength from being connected.

The starting point for the nation’s centennial energy strategy must begin where preparations are complete.

The optimal location for the integrated headquarters of the five power generation companies, which will lead South Korea’s energy transition and the era of future energy leadership, is already ready—the energy capital of South Korea, Naju. It is now time for the government to make a resolute decision to turn the nation’s vision into reality.

Byungtae Yoon, Mayor of Naju

This content was produced with the assistance of AI translation services.