The country’s main electricity supplier Korea Electric Power Corp., which marked its 50th anniversary this year, is renewing its efforts to become a socially responsible company.

In addition to drawing up plans for becoming one of the world’s top five energy and engineering firms by 2020, the company jumpstarted its shared-growth plans this year to fulfill its social responsibilities. 

Earlier this year, the company announced a set of long-term plans under which it aims to raise its annual sales to 85 trillion won ($78.6 billion) by 2020 to become one of the industry’s five largest players.

As part of its effort for becoming a socially responsible company, KEPCO has been operating various programs for some time.

While the term shared-growth has only recently become commonplace among local corporations, KEPCO has been involved in related issues for a while.

In 1993, KEPCO became the first state-run company to establish an organization dedicated to supporting small- and medium-sized enterprises. Since then the company has made significant efforts to fulfill its responsibilities.

According to KEPCO it has a three-pronged strategy for supporting SMEs designed to establish foundations for shared-growth, and to help the smaller firms increase technological competitiveness and to expand overseas.

The programs the company operates with the aim of establishing foundations for promoting shared-growth range from low-interest loans and giving SMEs’ products priority in purchasing contracts to helping SMEs improve the quality of their products.

The company offers four types of loans to SMEs at rates about 2 percentage points lower than those offered by local banks, with more than 380 billion having been loaned to SMEs by the end of March.

In addition to such projects conducted independently, the company signed a memorandum of understanding with the Federation of Korean Industries to operate “package-type” management consultation services to SMEs.

The second part of KEPCO’s SME support strategy, which aims to help smaller companies improve their technological capabilities, also began in 1993.

Between then and 2010 the company operated 30 research and development projects with SMEs. The company also operates a team comprised of 20 engineers to provide technological assistance to SMEs.

The last part of KEPCO’s support measures for SMEs is divided into those aimed at helping to increase SMEs’ exports and those for improving smaller firms’ ability to operate in overseas markets.

KEPCO’s project for helping SMEs to increase exports has already seen results.

Last year, the company held exhibitions in 12 countries with 112 SMEs taking part, as a result of which contracts for more than $19 million were signed. This year, the company has expanded the project and plans to hold exhibitions in 16 countries.

By Choi He-suk (cheesuk@heraldcorp.com)