(Interview) Choi Seong-kyu, Chairman of the Transformer Association - “Four consecutive years of fee reduction is an innovation for the members” > Press Release

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Choi Seong-kyu, chairman of the Korea Transformer Business Association, was confirmed for reappointment at the regular general meeting held in February. He has been serving as chairman since the association changed its name in 2013 and will lead the association until 2019. Chairman Choi’s rise as an industry leader dates back eight years. At the end of 2008, Chairman Choi decided that “the Transformer Central Association could no longer afford to have its pride damaged. If someone has to do it, I will do it,” and became the fourth chairman of the Central Transformer Business Association. At that time, there were three business associations in the transformer industry: Central, Western, and Southern. The three associations were created in January 2007 when transformers were converted from a group-based product to a competitive product among small and medium-sized enterprises. In the first year of its establishment, the business association monopolized KEPCO’s unit price volume and was evaluated as a powerful organization that would lead the ‘post-group-based contract system’ era, making a good start. However, the three business associations’ brilliant report cards began to take a nosedive the following year. In 2008, when some companies outside the scope of the business associations won bids for KEPCO supplies in large numbers, the associations faced their first crisis since their establishment. In the same year, the Central Association’s chairman position remained vacant for several months, and the business associations, which had no work to do, were floundering. The 2009 report card was even more dismal than the previous year. Far from meeting the minimum order target of 20 billion won for each business association, the three associations combined only managed to win about 3 billion won. The argument that the business associations were “useless” grew louder, and discussions on their integration also intensified. In 2010, the Central Association was incorporated into the Electric Association, following the Southern Association, leaving only the Western Transformer Association. The only person who kept his position throughout this entire process was Chairman Choi. Starting as the chairman of the Central Association in 2008, he took on the chairman of the Western Association in April 2011, and has quietly maintained his position as the industry leader since the Western Association changed its name to the Transformer Business Association in 2013. Since then, the association’s business performance has been outstanding enough to be the envy of other electrical organizations. It can be called a comeback after recovering from a hardship or a return to work after sleeping on firewood and tasting gall. As symbolized by the four consecutive years of fee reductions, the Transformer Association has grown into a small but most solid organization in the electrical industry. Chairman Choi said, “Taking charge of the Transformer Association and lowering fees every year is truly innovative. You shouldn’t just talk about helping members; you should have the ability to provide real help and put it into practice.” Brimming with his characteristic confidence, he emphasized, “This year, for the first time, we will jointly purchase transformer parts to reduce costs by about 10%.” He also said, “There were some regrets about the diversification of industries and the development of overseas markets during the last term,” and “Based on the accumulated achievements so far, we will create a driving force so that cooperative member companies can continue to operate the transformer business.” The KEPCO transformer unit price bidding scheduled for August is of keen interest. Chairman Choi said, “The possibility is 50/50, but I will personally keep in mind the scenario of moving toward a perfect competition structure and work to secure orders for the transformer cooperative.” He repeatedly emphasized that the fundamental purpose of establishing the cooperative is ‘joint orders, joint production, and joint sales.’ Nevertheless, Chairman Choi has established a system that can sustain the cooperative for 4~5 years without wavering even in the worst-case scenario of not being able to secure orders for KEPCO unit price at all. The four consecutive years of fee reductions are an expression of this confidence. Chairman Choi said, “There are more than 2 million distribution transformers installed nationwide, and if we increase the proportion of high-efficiency transformers in the future, it will help save energy at the national level,” and added, “In this context, I believe that the introduction of KEPCO’s long-cylinder pole-mounted transformers is a desirable direction.” He added, “Whether it is a company or a cooperative, only when we flexibly break the frame and expand our thinking while keeping up with the times can we survive,” and pledged, “I will always study and innovate to become a cooperative chairman who can lead all work processes, whether technical or administrative.” Reporter Song Se-jun 21ssj@electimes.com Written: April 6, 2016 (Wed) 17:31 Posted: April 8, 2016 (Fri) 09:47