City Gas Prices Surge 42%... Gyeongbuk Province Grants 3-Month Payment Deferral for Small Businesses

[Asia Economy Yeongnam Reporting Headquarters Reporter Koo Dae-seon] Gyeongbuk Province announced on the 20th that, as commercial city gas rates increased by 42.3% compared to the same period last year, it will implement a city gas bill payment deferral starting in March to alleviate the economic burden on small business owners. This measure was agreed upon in consultation with five city gas suppliers in the Gyeongbuk region, including Daesung Energy.

The deferral applies to small business owners with business locations in Gyeongbuk Province whose gas bill payment amount for February is less than 300,000 KRW. Only applicants for the payment deferral can extend the payment deadline for three months’ worth of city gas bills (up to the May billing) starting from the March billing by three months, and no late fees will be charged during the extension period.

A Gyeongbuk Province official stated, “The sudden sharp increase in city gas rates has significantly burdened small business owners. Therefore, we have opened the way for the March payment to be made in June, the April bill in July, and the May bill in August. This allows the relatively smaller amounts of gas bills, which are higher in winter, to be paid in the summer months without late fees.”

Applications for the payment deferral will be accepted from March through May 19 via the call centers or websites of the respective city gas companies. To apply for deferral for the current month’s bill, the application must be submitted by the payment due date on the current month’s bill.

To verify eligibility for the payment deferral, small business owners must prepare the customer number listed on the city gas bill and their business registration number. Only applicants whose status as small business owners is unclear will be required to submit a small business owner verification certificate.

Gyeongbuk Provincial Government Office.

The five companies participating in the city gas payment deferral are Yeongnam Energy Service Pohang, Yeongnam Energy Service Gumi, Seorabeol City Gas, Daesung Clean Energy, and Daesung Energy.

Gyeongbuk Province is also promoting the ‘Neighborhood Food Price Freeze Campaign’ to support small business owners feeling the burden of high prices, using a 250 million KRW financial incentive awarded for receiving an ‘Excellent Grade’ in the 2022 Local Price Stabilization Management Comprehensive Evaluation conducted by the Ministry of the Interior and Safety.

Lee Young-seok, Director of the Economic and Industrial Bureau of Gyeongbuk Province, said, “As the high prices have increased the burden on small business owners, we will make every effort to stabilize the local economy by actively promoting the stabilization of local public utility rates, expanding sales channels for small business owners, and implementing support policies.”