The presidential office on Tuesday downplayed the rumor that Korea Electric Power Corp. CEO Kim Joong-kyum will soon be dismissed.

Speculation has risen that President Lee Myung-bak is considering replacing the top post at the state-run KEPCO as Kim’s management was going against government policies.

While Cheong Wa Dae said it is “not considering” whether to discharge Kim “at the current stage,” public officials still did not rule out the possibility of dismissal before Kim’s term expires.



Kim had sought a steep hike in electricity prices while the administration was striving to curb down consumer prices by only moderately raising public utility charges.

Amid the situation, there has been a rumor that the Ministry of Knowledge Economy, which underwent policy discord with KEPCO, has recommended the presidential office to relieve Kim of his post.

Market observers say a recent move by KEPCO has fanned the possibility.

In late August, the power firm said in a statement that it would sue the two state organizations over an unreasonable power charge system.

KEPCO argued that it was forced to suffer a deficit of 4.4 trillion won ($3.9 billion) in total as the government has fixed the power fees lower than the actual cost of electricity.

The three-year term for Kim ― who was appointed to the post by President Lee ― expires in September 2014, while Lee’s five-year tenure ends in February 2013.

By Kim Yon-se (kys@heraldcorp.com)