Korea Electric Power Corp. (KEPCO) has decided to block Chinese companies from participating in its high-voltage DC power line construction project between Wando Island and Jeju Island.
According to the state-run power company, only companies in countries that are members of the Government Procurement Agreement (GPA) of the World Trade Organization (WTO) can bid for the project. China is not a member of the GPA.
Previously, KEPCO considered including Chinese companies in the project for the purpose of cost reduction. Although Chinese companies, in principle, can take no part in public procurement in South Korea since China is not a GPA member, KEPCO requested the Ministry of Economy and Finance’s authoritative interpretation about making an exception.
However, South Korean companies such as wire manufacturers raised an objection, saying that Chinese companies’ price dumping would adversely affect the electric power industry of South Korea.