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Korea’s Kepco Moves Ahead With Controversial Coal Investment

  • Joins development of Jawa 9 & 10 coal plants in Indonesia
  • Board approves $51 million purchase of 15% stake in project
A climate protester outside the South Korean Embassy in Jakarta, on June 25
A climate protester outside the South Korean Embassy in Jakarta, on June 25Photographer: NurPhoto/Getty Images
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Korea Electric Power Corp. approved a plan to participate in an Indonesian coal power project despite mounting global pressure to move away from the most-polluting fossil fuel.

The board of directors on Tuesday cleared the $51 million purchase of a 15% stake in the joint-venture developing the Jawa 9 & 10 project, according to a company spokesman. The company, known as Kepco, added that its involvement in the $3.86 billion project passed a pre-feasibility study last month by the Korea Development Institute, which must approve all investments by state-run firms above a certain threshold.