Despite Mounting Liabilities
The six state-run power companies of South Korea are planning to invest almost 40 trillion won in renewable energy facilities until 2034 with their liabilities amounting to more than 70 trillion won.
Specifically, Korea Hydro & Nuclear Power, Korea South-East Power, Korea Southern Power, Korea East-West Power, Korea Western Power, and Korea Midland Power are going to invest 39.3054 trillion won and their liabilities added up to 72.3124 trillion won at the end of June this year. In short, they are planning to increase their unprofitable investment while their liabilities are soaring.
Korea Hydro & Nuclear Power’s liabilities amounted to 36.7 trillion won at the end of June with the use of nuclear power plants dropping from 80 percent to 73.4 percent for about three years. The company is going to invest 4.6711 trillion won in solar power generation and 7.1734 trillion won in wind power generation until 2034 in line with the South Korean government’s policy.
The other five companies’ investments in renewable energy facilities amount to two trillion won to seven trillion won each. These companies are facing difficulties with the international prices of bituminous coal and LNG rising.
“The six companies are supposed to supply electricity at a low price by reducing their production costs, and yet they are just following the Moon Jae-in administration’s impractical green energy policies regardless of the rapid pace of their financial deterioration,” People Power Party lawmaker Kwon Myung-ho pointed out, adding, “The administration’s policies will make electricity more expensive and the burden will be shifted to the general public.”