South Korea to merge 5 power firms into 53-GW giant

The new entity will rank 8th worldwide by installed generation capacity, excluding China.

South Korea plans to merge five state-owned power generation companies into Korea Power Generation, creating a company with about 53 gigawatts of installed capacity and a global top 10 ranking.

The integrated company, which will operate as a wholly owned subsidiary of Korea Electric Power Corporation, is scheduled to launch on 1 October 2027, following the enactment of a special act and a year of integration preparations.

The five companies—Korea South-East Power, Korea Midland Power, Korea Western Power, Korea Southern Power, and Korea East-West Power—will be consolidated to support the energy transition, improve management efficiency, and expand renewable energy.

The Ministry of Climate, Energy and Environment said the integration follows a government research project launched in February and consultations with experts, labour unions, and the five companies.

The research found that a single entity would be the most appropriate structure for the five generators.

The new company will rank eighth globally by installed generation capacity, or 14th when China is included.

Korea Power Generation will consolidate fuel procurement and power generation investment functions across the five companies.

The government expects the integration to reduce costs, whilst larger renewable energy and energy storage system projects will benefit from economies of scale.

The company will have one president, one auditor, and four executive directors, replacing the current structure of five presidents, five auditors, and 10 executive directors. Headquarters staff will fall to 1,800 employees from about 2,400.

Korea Power Generation will establish three to four regional renewable energy headquarters, with about 600 employees assigned to projects including solar and onshore wind.

Its integrated headquarters will have divisions covering renewable energy, just transition, safety and technology, and planning and management.

The government plans to introduce a special act during this year's regular session of the National Assembly.

The legislation will provide the legal basis for the merger and address permits, employment contracts, merger procedures, and tax treatment.

An Integration Preparatory Committee will be established in September to oversee organisational, personnel, operational, and integration planning.

The five companies will also conduct a post-merger integration project covering accounting, legal affairs, taxation, and IT.

The government aims to register the integrated corporation and appoint executives in September 2027 before launching Korea Power Generation the following month.