Korea Electric Power Names LG's Kim Ssang Su as CEO

By Shinhye Kang

Aug. 20 (Bloomberg) -- Korea Electric Power Corp., the country's dominant electricity supplier, named Kim Ssang Su, the former head of LG Electronics Inc., as chief executive.

Shareholders approved Kim's appointment today, the state- run utility said in an e-mailed statement. Kim will replace Lee Won Gul, who stepped down in May after South Korea's President Lee Myung Bak took office in February. The new government has the right to replace managers at state companies.

Kim, 63, was chief executive at LG Electronics, the world's third-largest television maker, from 2003 to 2007. Under his charge, LG's mobile-phone sales surged, challenging Motorola Inc.'s as the world's No. 3 handset maker. Kim is currently adviser at the electronics maker.

``Kim was famous for focusing on innovation and reform when he led LG Electronics,'' said Yun Hee Do, an analyst at Korea Investment & Securities Co. ``The market will anticipate the same style of management at Korea Electric.''

Korea Electric posted its biggest quarterly loss since 2003 in the three months ended June 30 as fuel costs mounted while the government capped electricity tariffs to fight inflation. The utility had a loss of 763.6 billion won ($727 million), compared with a profit of 266 billion won in the same period a year earlier.

The South Korean government has said it plans to raise electricity charges to narrow Korea Electric's losses, while the country's ruling Grand National Party opposes a big increase of tariffs.

Korea Electric shares rose 2.3 percent, or 700 won, to 32,050 won at 1:27 p.m. local time in Seoul trading. The stock has dropped 19 percent this year, in line with the benchmark Kospi index.

Kim will run Korea Electric for three years starting 2008. The government has a 51 percent stake in the utility.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net;