SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a Transmission Line and Associated Facilities See 3.3 Approvals to Construct and Operate Gen- eration Facilities . As the Electric Utility Act’s definition of electric facilities includes facilities for generation, transmission, distribution, supply and use, the terms and conditions imposed in an EBL also apply, where relevant, to the transmission business and the con- struction of transmission facilities. 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities As with the installation of generation facilities, the installation of transmission lines requires ownership, surface rights or lease rights for the installation site. As mentioned in 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities , under the Electric Utility Act and Land Compensation Act, land may be acquired or expropriated for the installation of electric business facilities, including transmission facilities. Accordingly, the procedures for compensation mentioned in 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facili- ties apply. 4.5 Monopoly Rights to Provide Transmission Services KEPCO has a monopoly over the entire South Korean transmission market, unlike other countries’ entities that have exclusive rights within a defined territory. The Electric Utility Act does not restrict the issuance of a transmission business permit to KEPCO, and KEPCO’s monopoly over the transmission market is not explicitly provided for in the relevant laws or regulations or governmental authority’s administra- tive measures. Historically, KEPCO had a monopoly over the entire electricity market. In the early 2000s, a phased plan for market competition was introduced, but after competition in generation was implemented, further phases of the plan were suspended, resulting in the current structure of the South Korean electricity market.
The registration of an electrical construction business must be obtained in accordance with the Electrical Construction Business Act (see 3.1 Constructing and Operating Generation Facilities for registration stand- ards). As discussed, KEPCO has a monopoly over the South Korean transmission market. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities The factors considered for the issuance of the EBL to electricity businesses, as noted in 3.2 Obtaining Approvals to Construct and Operate Generation Facilities , also apply to transmission businesses. Although KEPCO has a monopoly over the transmis- sion business, a power generator is generally obligat- ed to construct transmission lines for grid connection at its own cost and responsibility. The electricity plan, one of the documents submitted when applying for the EBL, should include: • an opinion issued by KEPCO concerning the effect of grid connection; and • an electricity transmission map. Accordingly, it would be necessary to consult in advance with KEPCO about, among other things, where the transmission lines would be located, as KEPCO may require that transmission lines be placed in different locations than originally planned. Under the Electrical Construction Business Act, elec- trical construction includes the installation of electric facilities. The Electric Utility Act’s definition of electric facilities includes facilities for generation, transmis- sion, distribution, supply and use. Accordingly, the standards for the electrical construction business as mentioned in 3.2 Obtaining Approvals to Construct and Operate Generation Facilities also apply to the construction of transmission facilities. Other proce- dures, such as the development activity permit and environmental impact assessment, also apply to the construction of transmission facilities. See 3.2 Obtain- ing Approvals to Construct and Operate Generation Facilities regarding the typical processing time.
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