Korea Midland Power Co., Ltd.

According to laws related to restructuring the Korean electric power industry, the power generation unit of the Korea Electric Power Corporation (KEPCO) was divided to form six power generation companies on April 2, 2001. As a result, KOMIPO was established as a power generation company with assets of 2.6 trillion won taken over from KEPCO : 1.3 trillion won in debts and 1.3 trillion won on in capital including a paid-in capital of 153 billion won. The structural reform of the Korean electric power industry was pushed through in order to lower power production costs and enhance electricity quality by bringing competition to the power marketplace and accelerating managerial innovations. As a core management strategy to differentiate us from other generating companies, we have been pursuing a so-called e-Generation which will touch off digital revolution in all fields of our business. The new management strategy will integrate and optimize all management systems in operation and maintenance of power plants, mobilization of materials and fuel, power transaction, and financial affairs and accounting. I believe that it will lay a ground to gain a competitive edge in the power market of free competition. In addition, we have exerted diversified efforts to reduce costs and enhance confidence in our facilities as a means of maximizing profitability. we also have made good efforts to improve managerial efficiency by revitalizing employees voluntary participation in management through our new proposal and suggestion systems.