Choo Kyung-ho: "Freezing Electricity Rates Poses Risk to KEPCO's Management Stability"

"Still Far from Resolving KEPCO's Deficit"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the "Policy Meeting Invited by the Deputy Prime Minister" held on the 28th at the Korea Employers Federation in Mapo-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 28th regarding the background of the electricity rate increase in the third quarter, "(The rates) freezing could pose a risk to the management survival of the company (Korea Electric Power Corporation, KEPCO)."

After a meeting with the Korea Employers Federation (KEF) held at the KEF conference room in Mapo-gu, Seoul, Deputy Prime Minister Choo told reporters, "It is still far from resolving KEPCO's deficit problem, but this decision was made after careful consideration at a minimum level."

He explained, "In fact, from the perspective of the people's livelihood and inflation, it would be right not to raise electricity and gas rates," adding, "This decision was made after careful deliberation and consultation with related ministries."

The day before, KEPCO raised the fuel cost adjustment unit price for electricity rates in the third quarter by 5 won per kWh.

Regarding the possibility of further electricity rate increases, Deputy Prime Minister Choo said, "We brought forward the originally planned (fuel cost) linkage part earlier," and added, "As for the next scheduled part, we will make a final judgment again when the time comes."