Sunday, 08 Aug 2010
Yonhap reported that the South Korean government will maintain an independent nuclear power company and take no steps to push for a merger with Korea Electric Power Corporation.

Mr Choi Kyung hwan minister of knowledge economy said that Seoul has decided to keep Korea Hydro & Nuclear Power Co separate from KEPCO and for the two state run corporations to work together to win overseas atomic power plant construction contracts.

Local think tanks such as the Korea Development Institute said last month that a merger can be considered to streamline overall business operations and enhance efficiency. KEPCO has led negotiations to win exports deals for locally made reactors, but actual production and experts come from KHNP.

KHNP and 5regional power generation companies were spun off from the power corporation in 2001, with the government planning to sell some of these companies to the private sector and foreign investors. In 2004, Seoul suspended all moves to sell the power companies that caused speculation that they could be re united with KEPCO.

Mr Choi stressed that since KHNP will be kept a separate company, its headquarters will be moved to Gyeongju, 371 kilometers southeast of Seoul, by 2014. The move was arranged after the city agreed to host the country's only repository for intermediate-level nuclear waste.

Meanwhile, he told reporters after a memorandum of understanding was signed with Gyeongju city to build KHNP's new headquarters, that public sentiment has become favorable for the building of additional nuclear power plants. He added that "Several regional governments have said they want to attract new power plants, although any decision will require thorough inspections of the sites."

South Korea currently runs four nuclear power plants and 20 reactors with eight more to go on line by 2017. The government said that in order to meet future power needs a decision must be made on the building of more reactors around 2012.