Korea Electric Power Corp.’s Chief Executive Officer Cheong Seung-il offered to resign as the state-run utility announced a drastic financial overhaul to recover from its record operating losses.

Cheong’s announcement, confirmed by a spokesperson, comes as Kepco announced a restructuring plan aimed at improving its finances by 25 trillion won ($18.7 billion) by 2026, a more ambitious target than its earlier goal. The measures include asset sales, business restructuring and cost reductions at the company and units, Kepco said in a statement Friday.

Kepco also reported its eighth consecutive quarterly operating loss on Friday. Shares rose after the cost-cutting plan and resignation were announced, closing up 1.9% to the highest level since Jan. 31.

Typically when CEOs of state-run companies offer to resign, they need an approval from the South Korean president. Yoon Suk Yeol’s office hasn’t yet signed off on Cheong’s resignation. Cheong was appointed under previous President Moon Jae-in’s administration in 2021 and his term wasn’t scheduled to end until May next year.

Park Dae-chul, the ruling party’s chief policymaker, said on May 2 that Kepco’s CEO should step down if the state-run utility can’t make self-rescue efforts, criticizing that it hasn’t done enough to improve finances.

The utility has been grappling with the worst losses in its history, worsened by government delays in raising electricity rates to shield consumers from soaring living costs. The limited increases in power bills in recent years have driven Kepco to issue record bonds in 2022 to shore up finances. That contributed to a rout in the bond market and investor concern about the company’s financial stability.

See also: Indebted Kepco Faces Lower Price Hike As Korea Shields Consumers

Despite Kepco’s struggles, the government has dragged its feet over expected utility rate increases in the second quarter, citing inflation concerns. Officials had previously signaled rates would rise by about 13 won per kilowatt-hour each quarter to alleviate financial strain, but they’re now discussing a smaller single-digit hike for the April-June period, according to people familiar with the matter.

The ruling party and government officials will meet Monday to decide on a power price hike, Yonhap News reported, citing sources.

Kepco reported an operating loss of 6.2 trillion won for the first quarter, worse than the average analyst estimate of a loss of 5.4 trillion won.

(Updated with Kepco earnings and shares in third paragraph.)