Electricity is a commodity that is produced and consumed at the same time, and cannot be stored economically. An appropriate level of reserve facilities must be secured for stable power supply. As Korea is heavily dependent on imports of energy (about 97%), we must be able to secure energy stably, and as the electric power system is geopolitically isolated, it is impossible to export and import energy to and from neighboring countries. As production of electric power is concentrated in southern provinces, and consumption is concentrated in the metropolitan area, long-distance transport of electric power is essential, and it is difficult to use the market mechanism to control demands, and large investments are required to construct electric power facilities in order to secure supply capabilities.

At present, in the domestic electric power industry, 6 power generation companies, independent power producers, and community energy systems are producing electric power, and KEPCO transports the electric power it purchased from the Korea Power Exchange through the transmission and distribution network, and sells it to general customers.