Electric industry privatization has been spreading all over the world as a global trend. There is no exception to this relentless restructuring, including in the ROK (Republic of Korea). But, the problem is that the mind-numbing electric industry restructuring has been triggered by transnational capital pressure.

Starting in 1994, a research institute performed a two-year management evaluation, which was directed by the ROK government.

This evaluation was designed to find out the current situation and developments of the electric industry, and to discover restructuring methods. The result was thatour (Korea Electric Power Corporation) performance was good enough to rule out our privatization. There was no objection from the ROK government.

But, after the so-called IMF (International Monetary Fund) debt redemption of the second half of 1997, the ROK government discarded its former position toward us and decided to push ahead with the electric industry restructuring plan in 1999.

As of 1998, the ROK's total generation capacity was 43 million KW and its annual growth rate was about 10%. Its reserve capacity was below 10%, which forecasted rapid growth for the electric sector.

The ROK's energy self-sufficiency is so poor that 97.2% of all energy resources are imports. To make matters worse, there is the hostile DPRK (Democratic Peoples' Republic of Korea) in the north. But, the government, ignoring these circumstances, has never given up its restructuring plan for privatization.

The government's restructuring plan was derived from that of the U.K. (United Kingdom). So, its progress has been nearly the same until now.

The government announced that they will set up several generation companies which will be separated from the generation division of our corporation; and these companies will eventually be sold to private investors. Starting in 2000, our distribution and supply division will also be split into several companies and by 2003 we will see new owners.

Though the government estimates that it will take about 9 years to achieve retail competition, which is the final goal, many industry analysts say negative opinions about the restructuring policy of the government.

In Korea, most people see the government's privatization and restructuring scheme in the electric industry as a coercive measure by the IMF. Asserting that what the scheme really means is surrendering sovereignty, which they strongly oppose.

Korean people, who experienced bitter colonial rule for 36 years in the beginning of the 20th century, now strongly intend to protect their sovereignty.

In order to obstruct the government's privatization plan, many democratic activists in Korea formed a nationwide committee opposing the sale of electric industry assets to foreigners. This initiated massive demonstrations and a signature-collection campaign. Also, our Union, together with other electric industry labor unions, staged a hunger strike, massive rally and campaigns.

We warned against a nationwide strike in October, when the national Congress considers the electric industry restructuring bill. Though electric labor union strikes are illegal in Korea, we are resolved to do it.

In order to gain popular support, we make efforts to inform the Korean people of our position for ensuring sovereignty and basic rights. Fortunately, we are receiving strong support.

In the international seminar, which will be held in Mexico, we hope to learn desirable developmental steps for the electric industry and valuable experiences of anti-privatization struggles.

And, we suggest that there be much stronger international solidarity for anti-privatization in the electric industry.