Commentary on the Announcement of Differential Increase in Industrial Electricity Rates on the 30th
[Asia Economy Reporter Moon Chaeseok] On the 30th, Yoo Hwan-ik, head of the Industrial Headquarters at the Federation of Korean Industries, expressed concern that "the business activities of our companies, already at their limits due to high inflation, high exchange rates, and high interest rates, may further contract" following the government's and Korea Electric Power Corporation's decision to raise electricity rates.
On the same day, after KEPCO announced plans to differentially increase electricity rates for general industrial use starting next month, Yoo released a statement reflecting these concerns.
He acknowledged, "I recognize that the government's electricity rate hike is inevitable to address unprecedented international energy price increases and KEPCO's astronomical deficits," but added, "I worry that the differential increase for energy-intensive companies will accelerate the contraction of business activities of our companies, which are already at their limits due to high inflation, high exchange rates, and high interest rates."
He continued, "While major advanced countries are raising electricity rates amid the current energy crisis, they are also considering subsidies to the industrial sector to protect their domestic industries' competitiveness," and stated, "The fundamental solution is to establish a price system based on market principles and costs to improve energy efficiency across our society, including both the industrial sector and general households."
He also urged, "The government should promote a nationwide energy-saving campaign and foster a social atmosphere to overcome this winter's energy crisis," and promised, "Companies will actively cooperate in energy saving and overcoming the energy crisis."
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