South Korea initiates merger of five state power companies

South Korea has officially launched a preparatory committee to merge five state-run power generation companies into a single entity named ‘Korea Power Co., Ltd.’ The merger aims to consolidate capital and personnel to lead the transition toward renewable energy and carbon neutrality.

The five companies involved are Korea South-East Power, Korea Southern Power, Korea East-West Power, Korea Western Power, and Korea Central Power. The government targets an official launch of the unified corporation by October 1, 2027.

The new organization plans to establish a Renewable Energy Division for large-scale projects like offshore wind, and a Just Transition Division to manage the phase-out of coal-fired power plants. To support regional energy sectors, the company intends to deploy approximately 25% of its total workforce to regional renewable energy divisions.

The preparatory committee, chaired by Vice Minister of Climate, Energy and Environment Lee Ho-hyun, will focus on organizational structure, personnel relocation, and the establishment of operating systems prior to the enactment of a special law. The committee also aims to maintain regular communication with labor organizations to ensure job stability during the energy transition.