By Kim Tae-gyu
Former Hyundai Engineering & Construction (HE&C) head Kim Joong-kyum has emerged as a strong candidate to take charge of the Korea Electric Power Corp. (KEPCO), the de facto monopoly in the country’s power supply.
A source familiar with the issue said Friday that there have been just three applications for the CEO position at the utility company and Kim is considered the frontrunner as the other two are not “big names.”
``Kim appears to be the strongest applicant for the job. In consideration of his track record, he is expected to manage the mammoth company well,’’ said the source who asked not to be named.
When contacted, KEPCO refused to confirm anything regarding the appointment of a new CEO, who will replace outgoing President Kim Ssang-su on Aug. 27 this year.
The Ministry of Knowledge Economy, which oversees the country’s power industry, also did not make comment on the issue.
The company’s in-house panel will send recommendations to the ministry, which will finalize the winner in late July or early August.
Kim Joined HE&C in 1976 and worked for the company for more than 30 years before moving to its subsidiary ― Hyundai Engineering ― in 2007, where sales tripled under his stewardship.
Hyundai Engineering’s yearly turnover was just 240 billion won in 2006 but skyrocketed to 740 billion won in 2008. Operating profits also soared from a mere 18 billion won to 90 billion won over the same period.
On the strength of the strong performance at the subsidiary, Kim took the reins of HE&C in 2009 and was supposed to head the country’s largest contractor until next year.
However, the 61-year-old executive resigned this May, just after Hyundai Motor Group, the foremost automaker here, bought the Seoul-based builder.
``When he quit, many suspicions sprouted out about the decision. Now, we can understand why he resigned. He apparently thought applying for the top job at KEPCO was a better option,’’ the source said.
``He will have to deal with such tall tasks as raising electricity rates and winning nuclear contracts overseas,’’ he added.
KEPCO has shouldered heavy deficits as electricity rates cover just 90 percent of power generation and other costs. Hence, the firm has tried to raise prices to improve its bottom line.
Related ministries accepted the request and are trying to push up energy charges but it remains to be seen whether or not they will increase the rates enough to satisfy KEPCO’s expectations.
Also of note is that the HE&C lifer has a similar record as President Lee Myung-bak: Both graduated from Korea University and worked for HE&C to eventually taking the helm at the constructor.