The debt-ridden Korea Electric Power Corporation(KEPCO) announced a plan to improve its finances and save over 25 trillion won over the next three years by liquidating real estate and freezing employee wages.  

Under the solvency plan presented on Friday, the state-run utility company said it will sell a building in Seoul's financial district of Yeouido, estimated to be worth trillions of won. It also plans to rent out part of its art center in southern Seoul and several other properties.

Wages for senior officials at KEPCO and ten of its affiliates will be frozen, and talks will also begin with unions to have all workers join the move.

There will also be efforts to slim down the organization to save operational costs.
KEPCO's blueprint to save 25-point-seven trillion won is greater than an earlier plan to save 20-point-one-trillion won through restructuring overseas businesses and property sales.

Following an electricity rate hike of 13-point-one won per kilowatt hour in the first quarter, the government and the ruling People Power Party(PPP) demanded KEPCO put forth a stronger rescue plan before another rate hike, which the Yoon administration delayed until the second half of the year. 

Between 2021 and 2022, KEPCO posted cumulative losses of over 38 trillion won.
Meanwhile, following the release of its financial restructuring plan, KEPCO CEO Cheong Seung-il announced he will step down amid calls by some ruling PPP lawmakers that he resign.