▣ On October 26, KEPCO Nuclear Fuel (KNF, CEO Choi Ik-soo) held a meeting with executives from nine suppliers including Jinyoung Precision Machine Co., Ltd. in the conference room at the KNF headquarters. During the meeting, which was held to discuss about the mutual interest with suppliers of nuclear fuel components to seek for the shared growth, KNF signed an MOU with the suppliers to collaborate on ESG management practices, introduced the KNF mutual growth program, and discussed about the measures to improve the quality competitiveness and productivity of nuclear fuel components.

▣ To step up the effort to support the stable management of suppliers that provide major components of nuclear fuel, KNF has strengthened and implemented a series of support programs including directed sourcing of high-priced raw materials, sharing of production plan in advance, and early ordering. In addition, KNF has installed a task force to support the shared growth to provide constant support for business and technologies in seven areas — finance, purchase/material, quality assurance, quality control, engineering design, part development, and overseas business.

▣ To help them secure the fund they need as planned, KNF has expanded and operated a system that allows to provide the total amount in cash within five days after the suppliers delivered the parts and increased the limit of upfront payment by up to 70% of the contract amount. Moreover, the company provides technologies and financial support for the development of core components of nuclear fuel, supports a 50% of the budget required to develop items designed to share the outcome, implements the benefit sharing program by giving a preferential treatment to purchase parts that were developed within three years, and assists them to advance into overseas markets.

▣ During the meeting, KNF CEO Choi Ik-soo emphasized the importance of nuclear power that would serve as a practical option in the midst of global energy crisis and commended the suppliers for their effort to continue to provide quality parts stably. He commented, “KNF will work hard to grow together through alliance and cooperation with SMEs by supporting parts suppliers in terms of product quality improvement and technologies as well as support them advance into the global markets.”

[Photo Description] KNF CEO Choi Ik-soo (5th from the left) took the photo with executives of suppliers after signing an MOU to cooperate on ESG management practices.