Heating Cost Surge Becomes Political Focus
Ruling Party: "Electricity Rate Hike Caused by Nuclear Phase-Out"
Opposition: "Blaming Previous Government Again"
[Asia Economy Reporter Kang Juhee] As the issue of soaring heating costs during the Lunar New Year holiday period has become the biggest topic, the political arena has also been drawn into the debate. The ruling and opposition parties are exchanging blame over the reasons for the sharp rise in heating costs this winter.
While the Democratic Party of Korea launched an offensive, criticizing the government's inadequate measures, the People Power Party countered by saying it is the aftermath of the Moon Jae-in administration's blocking of gas price hikes and its nuclear phase-out policy.
On the 26th, Joo Ho-young, floor leader of the People Power Party, said in an interview with CBS Radio's 'Kim Hyun-jung's News Show', "From the end of 2020 to within a year, the price of LNG (liquefied natural gas) surged about threefold," adding, "However, the previous administration actually reduced gas prices by 11.2% in July 2020." He continued, "As a result, we are now facing a gas price bomb. In fact, the Korea Gas Corporation suffered a loss of 8.8 trillion won last year."
As a cold wave sweeps across the country, increasing the burden of heating costs, on the afternoon of the 25th, a maintenance fee notice is inserted into the mailbox of a 30-pyeong apartment in downtown Seoul. [Image source=Yonhap News]
Floor leader Joo criticized, "When gas prices rise, there should be a counteracting effect where usage decreases, but although it is a bit awkward to talk about the previous administration, I think this result came about because they neglected the issue due to populist policies."
Also, Kim Ki-hyun, a member of the same party, mentioned on Facebook on the 25th that the Moon Jae-in administration's nuclear phase-out policy has increased the burden on the current government. Kim explained that the reason for the rise in heating costs is "because the LNG import price linked to city gas rates has risen sharply due to the impact of the Ukraine war, and because winter heating and hot water demand has increased," adding, "Moreover, the increase in electricity rates is mainly due to the nuclear phase-out policy. They shut down perfectly functioning nuclear plants, creating a factor for electricity price hikes, thereby passing the burden onto the Yoon Seok-youl administration."
On the other hand, the Democratic Party highlighted the government's failure, saying that despite the heating cost bomb crisis being predictable, no measures were prepared. Park Hong-geun, floor leader of the Democratic Party, said at the Supreme Council meeting, "The Yoon Seok-youl administration is trying to evade responsibility by saying this is not just our problem despite the heating cost bomb, and is quick to blame the previous government," urging, "Face the public sentiment during the Lunar New Year, prioritize livelihood issues, and stop unjust exercise of power."
Meanwhile, on the 26th, the government announced plans to expand heating cost support for vulnerable groups. Regarding energy voucher support, the government decided to temporarily double the support amount this winter from 152,000 won to 304,000 won for 1,176,000 vulnerable households including basic livelihood security recipients for livelihood, medical care, housing, education benefits, and elderly patients.
For 1.6 million households designated as socially considerate by the Korea Gas Corporation, the gas fee discount will also be doubled from the current 9,000 won to 36,000 won range to 18,000 won to 72,000 won.
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