The purpose of this research is to suggest efficiency measures for privatization policies for state-owned companies and find ways to develop integrated energy supplies, which represent the problems of privatization policies. After the financial crisis of 1997, South Korea has been experiencing a fundamental paradigm shift. The government must eliminate the “managerialism” of the government-driven development model, and change its industrial, regulatory, and competition policies in order to convert state-owned companies from government organizations to private corporations.
The Korean government has been pushing back the timeline for privatization, not because they encountered resistance from public workers or lacked the will to restructure, but because they did not focus on re-establishing policies pertaining to state-owned companies. Instead, they put more emphasis on layoffs and partial disposal of government shares. Privatization plans for energy industries (including electricity and gas companies) should be initiated after the policy switch, according to the condition of changes in the energy industries and the re-establishment of government functions in the privatization process. Energy and environmental policies should concentrate on demand management. The overall efficiency of energy and environmental industries needs to be enhanced through normalization of price, privatization, and the integration of energy and environment policies.
To privatize the Korea District Heating Corporation, the future direction of Korea’s energy and environmental policy should be established and variables such as price control means—which affect the salable value of the company—must be determined. Furthermore, in order to utilize energy savings and environment improvement effects, it is necessary to reinforce small-scale integrated energy supplies and promote competition by lowering the barriers to entry through the privatization of Korea District Heating Corporation. It is also advisable to expand fuel options by converting regulations from regulations on the fuel itself to regulations on total emissions. In order to prevent the restructuring of electricity companies from having a negative influence on integrated energy supplies, it is necessary to integrate the cogeneration plant owned by KEPCO vertically with district heating.
The key privatization plan of the Korean government to the partial disposal of the Korea District Heating Corporation branches in the capital region should be directed to improve efficiency through the introduction of practical competition and effective regulation. The government must implement regulations to help new businesses of integrated energy supplies enter the market and reduce the negative effects of monopoly. In order to privatize the Korea District Heating Corporation, institutional frameworks such as re-establishing regulations that can protect the rights of consumers apart from government departments, reasonable pricing that can guarantee rates of return, and resolution of construction costs should be prepared.
민영화와 집단에너지사업(Privatization and integrated energy supply)
|Series Title; No||연구보고서 / 99-07|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Energy|
|Holding||KDI; KDI School|