Revisiting privatisation


South Korea has been involved in privatisation plans for several years, starting with splitting the power generation division of power monopoly KEPCO (Korea Electric Power Corp.) into six units, five of which were to be sold to private investors. The next step was to unbundle and sell the distribution business, but difficult economic conditions and resistance from labour unions has resulted in a suspension of the proposed plan.

The sale of KEPCO was intended to introduce competition in the South Korean power generation and distribution market by 2009. While the suspension hasn’t necessarily brought this plan to a halt, it is possible that that date will not be met.