Automatic generation control (AGC) is an important function for load frequency control, which is being implemented in Energy Management System (EMS). A key feature of AGC is to back up governors to enhance the performance of frequency control. The governor regulates system frequency in several to ten seconds, while the droop control concept results in steady-state control error. AGC is a supplementary tool for compensation of the steady-state error caused by the droop setting of the governors. As the AGC target is delivered to each generator as an open loop control target, the generator output is not guaranteed to follow the AGC target. In this paper, we introduce generating unit controller (GUC) control block, which has the purpose of enabling the generator output to track the AGC target while maintaining the governor performance. We also address the tuning methods of GUC for better performance of AGC in the Korea Energy Management System (K-EMS).