For decades, the electric power industry of Korea had been monopolized by the state-run Korea Electric Power Corporation (KEPCO). However, restructuring of the industry became necessary in order to establish an electricity market in which electricity can be traded as a commodity.

Since the restructuring began, a market in which electricity
can be bought and sold has formed and competition among generation companies has commenced. In a few years, a fully competitive market will be in operation and consumers will be able to choose their own electricity suppliers.

The Korea Electricity Commission was established on April 27, 2001 to ensure a smooth transition to a competitive electricity market and a continuously well functioning market.
It consists of experts and representatives from various fields and provides the necessary administrative services.