KOREA POWER EXCHANGE

• Established onApril 2, 2001
• PurposesOperation of the electricity market and the power system
• Entity StatusMembership-based organization with
  electricity market participants
  (generators and retailers)
  as the members; non-profit, specialized entity

Korea Power Exchange(KPX) in Control of the operation of Korea`s electricity market and the power system, as well as the execution of the real time dispatch and the establishment of the basic plan for supply-demand.

KPX is reponsible for the operation the power market, including bidding, pricing, metering, settlement, and payment, so that fair and transparent power transactions can be made between power generation operators and sales operators.

KPX establishes operation plans for the generators and the power grid all over the country, and monitors them in real time in order to quickly respond to any anomalies. This ensures that the customers are mitigated from blackouts or brownouts 24 hours a day, 365 days a year.

KPX provides support for the Korean Government`s green energy policies and plans, such as establishing the basic plan for long term electricity supply and demand.

In order to carry out these important functions, KPX has been established on appril 2001 in accordance with the electric utility act. It is independent from all electric utilities ncluding KEPCO, and Operates the electricity market, the power system, and the real time dispatch in a fair and transparent manner.

KPX is now putting its efforts into demand resource trading, Renewable Energy Certificates(REC), Energy Storage System(ESS), and smart grid to strengthen the electricity business platform initiatives and inivigorate the national economy.