Even for public companies, overseas business is no longer a matter of choice, but survival.
At the vanguard of moves abroad is Korea Midland Power Corp., one of the six power generation subsidiaries of the state-run Korea Electric Power Corp. and the first one to make it in the overseas energy market.
KOMIPO’s overseas adventure kicked off five years ago with a coal-powered thermal power generation business in Indonesia and continues today to expand further, not only in Asia but the American and African continents as well.
|Tanjung Jati thermal power plant in Indonesia, operated by KOMIPO. (KOMIPO)|
In April, the public power supplier signed a memorandum of understanding with the Indonesian government to build and operate a large-scale hydroelectric power plant with a capacity of 284 megawatts.
It will also hold the rights to operate the facilities for 30 years once the construction of the plant is completed, based on the build-operate-own contract.
The so-called Muara Juloi project is part of the eight overseas constructions currently implemented or closely studied by KOMIPO.
“Though we have long-term plans to advance into other continents, our prime target at this point in time is Southeast Asia, where plant construction and power generation are expected to flourish over the upcoming years,” said an official.
KOMIPO’s active drive in the overseas market not only boosted its yearly sales records but also marked a precedent of a public company challenging a sector which was conventionally thought to be dominated by private companies, he added.
Forming a business consortium with local or overseas business units was also a rather new attempt for Korean public corporations, according to the official.
Backed by the growth of its overseas sales, the company is now planning to achieve a total capacity of 30,000 megawatts by 2020, among which 1,600 megawatts will be in eco-friendly renewable energy, the official added.
KOMIPO is also one of the leading public power suppliers here in Korea, providing for some 13 percent of all domestic power by running power plants in six different regions.
Among these facilities is the Boryeong Thermal Power Complex, which is the nation’s largest thermal power station, as well as the Seoul Thermal Power Plant, the nation’s first-ever power plant built back in 1930.
Recently, it committed to building the world’s first underground thermal power plant in Mapo, western Seoul, in cooperation with Doosan Heavy Industries.
By Bae Hyun-jung (email@example.com)