KEPCO's Relocation to Gwangju

  Lately, it has been settled that the largest state-owned corporation, KEPCO, which stands for Korea Electric Power Corporation, will be relocated to Gwangju after highly heated debates all across the nation for several years. In fact, it is the final draft of the national project for the relocation plan of public corporations to local provinces that 3 government-run corporations, including KEPCO, are to be relocated to Gwangju. In total, 14 public corporations are to be relocated to South Jeolla Province. So, residents in Gwangju and South Jeolla Province are ready to give a cordial welcome with open arms, expecting KEPCO's contribution to the development of this region.

Why Should It Be KEPCO?

  In light of the corporation’s accomplishments of 2004, KEPCO is ranked highest out of 13 government-invested organizations in a performance evaluation conducted by the Ministry of Planning and Budget. The team of management evaluation with experts in various fields assessed KEPCO as outstanding in management efficiency and innovation and financial improvement. KEPCO has been ranked top in the evaluation four times since 1993. Also, KEPCO has been rated top through six years on the Korea Customer Satisfaction Index (KCSI) amongst public corporations. The most advanced responsive and new-concept customer services and high-quality electricity with low prices were key contributors to retaining high public appreciation.

  Indeed, KEPCO has made a significant contribution to Korea's striking industrial achievement for the past half a century. It published the slogan "Global Energy-integrated Corporation.” Under the slogan, it started to explore business projects worldwide in order to be a global organization. Recently, in particular, it has been pouring energy into innovating technologies so that it can usher in the era of ubiquitousness beyond the information age.

Hence, KEPCO is starting to open its wings to take a farther and higher flight in company with Gwangju and South Jeolla Province. In this context, it is necessary to discuss the effects of KEPCO on Gwangju and South Jeolla Province from various angles.

Professional Views on Relocation of KEPCO to Gwangju

Expectations and Concerns

  First, Kim expressed anxiety about the fact that KEPCO's location in Gwangju is unfavorable in many ways. It might delay administrative time because most of all cooperative industries, infrastructures, government and other public offices are located in Seoul at present. Therefore, unless the problem is settled, the productivity of KEPCO might decrease or lag behind other corporations. However, he mentioned that Gwangju City and Central Government had already guaranteed to equip the required infrastructures and provide administrative support, such as the reduction of rates and corporation tax as soon as possible. I, as a Tribune reporter, can believe in the promise, looking into his Beaming smile.

  Second, he is very concerned about the lack of infrastructures regarding education, culture, entertainment and medical services because the workers placed in Gwangju will compare themselves with the workers at the head office in Seoul, in terms of working circumstances. According to him, it is necessary that local and central governments should try to put great effort into preparing abundant infrastructures for a successful move by the time KEPCO moves to Gwangju. 

  In conclusion, KEPCO has been operating by far the most flexible job rotation system between local and central, domestic and international amongst state-owned corporations. Even if there are some workers working in one area for a long time, general continuous working period in one workplace is just 2 or 3 years. The workers are expected to work in Gwangju at least once while they are working for KEPCO. It means that workers in the head office would not oppose its move to Gwangju only because Gwangju is a local province.

Social Effects

  First, as the scheme is announced that KEPCO plans to move to Gwangju, it is expected that the number of streamed people into Gwangju will soar up to 10,000, on calculating the population in the ratio of 4 or 5 family members per each worker. As a result, the name value of Gwangju will improve remarkably since the stream in Gwangju will make "Gwangju" known to other local people for sure.

  Second, the mutual attempts of Gwangju and South Jeolla Province to promote the project successfully under the slogan of "Construction of Innovative City" can go a long way toward breaking down the social and economic barriers among cities which have existed for quite a long time. From then on, the "Synergy Effect" will be activated.

Most importantly, KEPCO's vision toward "Investment on Information Technologies" and "Being a Global Energy Corporation" will contribute to laying the foundation of Gwangju as the "Mecca of IT industry" and "Future- and Global-oriented City" in the future. What is more, the "Heading for Gwangju" of a great number of cooperative corporations and subsidiaries in allied industries is to exert a huge influence on the image-promotion of Gwangju.

To sum up, Gwangju should profit a lot from this once-in-a-life-time project--through image promotion, the synergy effect through the cooperation with South Jeolla Province and so forth.

Economic Effects

First, from a broad point of view, the movement of state-owned corporations into the local can be very helpful to work out the chronic social trouble of the country and abnormal overpopulation of the national capital region. The settlement of the issue will lead Korea to obtain long-run competitiveness.

Second, it is obvious that the inflow of populace from other areas can create effective demands to a great extent in terms of the local economic profits. It is the mechanism of economics proceeding from the effective demand in the order of the enhancement of consumption, activation of local production, and economic development. 

Third, local tax is not a matter to be slighted. In fact, the amount of tax KEPCO paid Seoul City in 2004 reached up to 190,000,000,000 (a hundred and ninety billion won). It accounts for 23% of the total amount of local tax Gwangju City collects from local-based corporations. The amount is also 30 times that of KIA MOTORS, which is paid to Gwangju City as local tax. In conclusion, KEPCO's payment leads directly to the probability of investment on the infrastructures of Gwangju.

  Fourth, the long-term productivity of Gwangju can skyrocket by the cluster effect through condensation of strategic industries in Gwangju. That is to say, this chance can serve as a stepping-stone for future success and self-supporting economy in Gwangju on the condition that Gwangju fosters IT, Electric and Electromagnetic as t core industries.

Epilogue

  As mentioned above, the economic profits caused by KEPCO’s move to Gwangju must be beyond description from both short and long-term viewpoints.  Actually, not many people are expressing worry against the move, saying that the effects are not only unpredictable but also daring and risky. Notwithstanding, it is undeniable that this can be a once-in-a-life-time chance for Gwangju to leapfrog much higher than before in a highly competitive and globalizing international society..

 Whether the project is risky or not shouldn’t make any difference to us. What really matters is not "to do or not" but "to find out what to do." It is time for all members of "the City of Light" to concentrate strength on this chance. Thus, we should not merely rearrange overall infrastructures so that KEPCO's apprehensions over inconvenience should be wiped out, but also have unswerving faith to make the project successful by all means. 

Tribune reported every facet of KEPCO's Move to Gwangju through interviews with experts from various circles about the relocation and its impact on Gwangju. The interviews defined the concerns of the workers who are supposed to be relocated to Gwangju.

 Chonnam Tribune must thank Kim Hak-jae, head of Service Planning Team in South Jeolla Province branch of KEPCO, Chung Min-kon, Policy Development Team Leader of Gwangju City Office, and Na Ju-mong, a professor of the department of Regional Development at CNU, who all gave an interview to Tribune and have helped with professional views.