[Exclusive] KEPCO Restructures '2035 Mid-to-Long-Term Strategy'... Transition from 'Electric Utility' to 'Energy Platform'

Strategy Revised Amid Rapidly Changing Internal and External Conditions
Mid-to-Long Term Plans to Reflect Results of Nationwide Public Survey

Korea Electric Power Corporation (KEPCO) is revising its mid- to long-term strategy for 2035. This comes one year and six months after the announcement of its new vision in February last year. The move is prompted by a rapid shift in both domestic and international environments, including the Lee Jaemyung administration's energy policy, instability in energy supply and prices due to the war in the Middle East, and the Honam semiconductor cluster, making it inevitable to modify and supplement the existing strategy.

According to the power industry on July 21, KEPCO is conducting a "2035 Rolling Survey for Mid-to-Long Term Strategy" from July 15 to 24. The purpose of this survey is to gather opinions from a wide range of stakeholders, including the general public, and to supplement the existing mid- to long-term strategy to reflect changes in internal and external environments. (Related article: KEPCO Acknowledges the Limits of 'Electricity Sales'... Focuses on Securing New Growth Engines)

The Asia Business Daily DB

KEPCO views the new administration's shift in energy policy as both a risk and an opportunity. The company cited the burden of large-scale power grid investment and increased operational complexity resulting from the creation of an energy superhighway, a transition to renewables, and stronger implementation of carbon neutrality as threats. In contrast, KEPCO sees the expansion of its role as a core institution for implementing national energy policy and strengthened justification for grid investments as opportunities. Similarly, the explosive growth of the artificial intelligence (AI) market is expected to drive a surge in electricity demand from advanced industries such as semiconductors and data centers. While grid strain and electricity supply risks arising from demand concentration in the Seoul metropolitan area pose threats, securing large-scale, high-quality customers and operating intelligent, AI-based power grids present opportunities for innovation. Back in February last year, KEPCO declared its new vision to become a "Global Energy & Solution Leader" by 2035—targeting sales of 127 trillion won, total assets of 199 trillion won, sales of 20 trillion won from overseas and growth businesses, and a total workforce reaching 26,000—to grow into a global energy enterprise.

Through this round of strategic review, KEPCO is also likely to seek a transformation from a "power company selling electricity" to an "energy platform business" that provides power grid and energy services. Major initiatives being discussed include new businesses such as virtual power plants (VPP), energy storage systems (ESS), vehicle-to-grid (V2G) technologies, intelligent AI-based power grids, commercialization and mergers and acquisitions (M&A), and expansion of overseas businesses. Restoring financial soundness is also a core priority. On a separate basis, KEPCO recorded an operating profit of 8.5 trillion won last year, but its liabilities stood at 118 trillion won and cumulative deficits reached 36.1 trillion won.

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