S. Korea weighs trimming workers, budgets for electric supplier

SEOUL, Sept. 15 (Yonhap) -- South Korea is weighing trimming payrolls and budgets for the state-run electric power monopoly by 10 percent in a bid to enhance its business efficiency, officials said Monday.

Korea Electric Power Corp. (KEPCO) will be excluded from the privatization list in the upcoming public sector restructuring plan, but government and company officials are reportedly under consultations for large-scale business reforms.

The Lee Myung-bak government is in the process of enacting a multiphase public
sector reform plan aimed at enhancing efficiency and reducing costs.

In August, the government announced sweeping reform plans, under which it will
privatize, merge or restructure state-run companies. The third-phase plan is
expected to be announced this month.

Seoul said there are 319 state-operated and invested corporations that will be
examined, with about 100 to undergo comprehensive restructuring.

KEPCO is South Korea's second-largest conglomerate in terms of assets, standing
at 106.4 trillion won (US$96.7 billion) as of April 2007. It has 11 affiliates
and employs roughly 50,000 workers.

The company posted a loss of 764 billion won in the April-June period of this
year, compared with a profit of 266 billion won a year earlier.

kokobj@yna.co.kr