As the organizational reshuffle has wrapped up following the launch of the Lee Jae-myung administration, appointments of presidents at major state-run energy companies—Korea Electric Power Corporation (KEPCO), Korea Hydro & Nuclear Power Co. (KHNP), Korea National Oil Corporation (KNOC), Korea Gas Corporation (KOGAS), and Korea District Heating Corporation (KDHC)—are gaining speed. Except for KEPCO, where the president's term runs through the end of September next year, the other companies are expected to be led by new chiefs starting early next year.
Typically, it takes two to three months from a public call for applicants to the inauguration of a new president at a state-run company. Two months before the incumbent's term expires, an executive recommendation committee is formed, and after issuing a public invitation for the new president, candidates are narrowed down through document screening and interviews. The Public Institutions Management Committee shortlists two candidates, the Minister of Trade, Industry and Energy selects the final nominee and recommends to the president, and the final appointment is made.
Korea Gas Corporation (KOGAS), which issued a public invitation for a new president on the 13th on the last month, conducted interviews for seven candidates on the 3rd. Former Saenuri Party lawmaker Lee In-gi and candidates from KOGAS are vying for the top post. Lee, a candidate, previously served as co-chair of the Democratic Party's election committee and co-chair of the Presidential Committee of National Cohesion. It is known that Lee Jae-myung personally recruited him at the time.
The new president faces the task of reducing overdue receivables in the retail sector (households and general industrial users). As KOGAS supplied gas below cost, retail receivables ballooned to 14.1827 trillion won as of the end of September. While a gas rate hike is deemed necessary, the political sphere has been delaying it because it could push up living costs.
KHNP issued a public invitation for a new president on the 28th on the last month and will accept applications through the 8th. The plan is to finalize the shortlist soon. KHNP has been operating under acting President Jeon Dae-uk, a vice president, since the resignation of former President Hwang Ju-ho was accepted in September.
The next KHNP president faces many tasks, including new nuclear plant construction and nuclear exports. The biggest issue is whether to build two new reactors included in the 11th Basic Plan for Long-term Electricity Supply and Demand as scheduled. The two new reactors planned for introduction in 2037–2038 have not even begun site selection. Uncertainty has grown as the Lee Jae-myung administration has effectively put new nuclear projects on hold. Another challenge is to devise a new export strategy following a settlement of the intellectual property dispute with Westinghouse.
KNOC is expected to issue a public invitation for a new president within this month. Since the resignation of former President Kim Dong-seop was accepted on the 24th on the last month, the company has been operating under acting President Choi Moon-gyu, head of the planning and finance division.
KNOC still has the deepwater Donghae gas field project as unfinished business. KNOC had been in the process of selecting an overseas partner to participate at the second-stage exploratory drilling and was about to finalize a preferred bidder, but the procedure has been temporarily halted due to an inspection by the Board of Audit and Inspection. Depending on the government's intent, the project could be halted.
KDHC also plans to announce a public invitation for a new president soon. President Jeong Yong-gi faces the end of his term in November. Jeong joined former President Yoon Suk-yeol's presidential campaign during the 2022 presidential election. Because his background was unrelated to the energy sector, he was embroiled in controversy from the time he took office.
KDHC faces the task of recovering overdue fuel cost receivables. Although it purchased feedstock at high prices, it supplied heat at lower prices under price-control policies, piling up massive receivables. As of the third quarter this year, overdue receivables reached 630.7 billion won. While a normalization of heating rates is needed, it is difficult because it is directly tied to inflation.
An official at a state-run company said, "Even if the incumbent president's term expires, the procedures to appoint a new president begin only when a signal comes from above," adding, "With the government reorganization wrapping up, appointments of presidents at energy state-run companies are likely to speed up."