Industry minister confirms to raise electricity prices after summer ends

Industry Minister Ahn Duk-geun has confirmed that the government will increase electricity prices after summer comes to a close, in an effort to ease financial burdens on Korea Electric Power Corp (KEPCO). "We plan to raise electricity bills," Ahn said during a meeting with reporters in the central city of Sejong on Monday. "The preparations are under way, although the timing remains the key issue." KEPCO reported a cumulative loss of 43 trillion won (US$32.4 billion) from 2021 to 2023, as the company could not raise electricity prices enough to cover soaring fuel costs during the COVID-19 pandemic and high inflation. The company also has been implementing various self-rescue measures, including restructuring overseas operations, selling properties and offering voluntary retirement programs. As of the end of June, KEPCO's combined debt had stood at 202.9 trillion won, up around 440 billion won from a year earlier. During the meeting, Ahn added that the industry ministry has set next year's budget at 11. 5 trillion won, with the goal of fostering cutting-edge industries, boosting exports and attracting foreign investment. He noted that while the nominal increase from the current year is 21.8 billion won, after accounting for budget transfers to the Financial Services Commission, the actual increase amounts to 341.9 billion won, or 3 percent. Ahn also mentioned that the ministry's research and development budget was set at 5.2 trillion won, up 10 percent from this year. The industry minister added that South Korea is anticipated to post a record export figure for any August on record this month. "Not only semiconductors but several other cutting-edge industries are also demonstrating strong performances," Ahn said. In July, exports extended their on-year gains for the 10th straight month, driven by the robust performance of semiconductors and maintaining a trade surplus for 14 consecutive months. Source: Yonhap News Agency