By Ryu Jin
Staff Reporter
The Korea Electric Power Corp. (KEPCO) is seeking to acquire an unspecified U.S. power plant in association with U.S. enterprises, a move to expand into overseas markets, KEPCO officials said.
KEPCO President & CEO Lee Won-gul said ahead of his weeklong trip to the United States that his company would take aggressive steps to advance into the U.S. market based on its experience in China, Southeast Asia and Africa.
Lee said that the state-owned company has left open every possibility from projects repairing and improving existing power stations to the acquisition of local power plants in association with the U.S. firms.
``Our visits to major electric power companies in the U.S. is aimed at strengthening mutual cooperation for overseas projects,’’ a company spokesman said. ``We will also get some legal advice on advancing into the United States.’’
Mergers and acquisitions (M&As) have been taking place frequently among power generating companies in the U.S., as most of them have been privatized since the Energy Policy Act (EPA) came into effect in 1992.
One in every 10 U.S. power stations saw new owners in the 2003-2005 period, according to statistics. But KEPCO seeks cooperation with U.S. firms since the U.S. government restricts a foreign firm’s single-handed acquisition of power plants.
The KEPCO president plans to discuss joint participation in overseas projects with his counterparts when he visits General Electric (GE) and Westinghouse, frontrunners of the U.S. electric power industry, during his U.S. trip from Aug. 2 to 8.
Lee will sign a memorandum of understanding (MOU) between KEPCO and GM, which he discussed with GE Vice Chairman John Rice in Seoul in June, for overseas cooperation especially in the fields of power transmission and distribution.
He will also discuss measures to jointly cope with the expanding nuclear energy market with leaders from Westinghouse, with which KEPCO has developed a partnership since the early 1970s.
``I will make my best efforts to create a new growth engine for the future, when domestic demand for power is expected to decrease, by actively exploring overseas markets,’’ he said.
KEPCO is operating seven hydroelectric and thermal power plants including ones in China and Southeast Asia and has so far participated in six projects for power transmission and distribution, posting 230 billion won ($248 million) of sales overseas every year.