"Electricity Bills Could Reach 200,000 Won Monthly"... Growing Sighs Among Self-Employed

Electricity Rates Raised by 8 KRW per kWh in Q2
Increases Also in October, January, and May Since Last July
Self-Employed Sector Calls for "Support Measures for Small Business Owners"

With the peak summer season approaching, the increase in electricity and gas prices is causing growing concerns among small business owners. As fixed costs such as labor and raw material prices rise sharply, the added burden of public utility charges is expected to worsen profitability.

According to the electricity rate hike implemented from the 16th, the electricity charge per kWh (kilowatt-hour) has increased by 8 won. This comes just four and a half months after the 13.1 won increase per kWh in January this year.

Following the electricity rate increase applied since the 16th, the electricity charge per kWh (kilowatt-hour) has risen by 8 won. This comes just four and a half months after the 13.1 won increase per kWh in January of this year.
[Photo by Kang Jin-hyung, Asia Economy aymsdream@]

This electricity rate hike is especially burdensome for self-employed businesses that operate 24 hours, such as gyms, coin karaoke rooms, and study cafes. They are now considering shortening their operating hours. Although there are not many users during the early morning or late night, these businesses have maintained 24-hour operations to give the impression that customers can come anytime, so the sharply increased electricity rates are a heavy burden.

There are complaints that the electricity rate increase felt by self-employed business owners is close to 60%. Kim Taeyun (54), president of the National Study Cafe and Reading Room Operators Association, lamented, "If this continues, the electricity bill this summer will be close to 2 million won."

President Kim said, "Many members are dissatisfied with the timing of the electricity rate increase, which coincides with the period when air conditioners need to be used," adding, "If the government wants to support self-employed business owners, wouldn't it be better to raise rates in the fall or when it is a bit cooler to reduce the burden?" He continued, "I understand that large corporations pay cheaper electricity rates, and I hope there would be such a system for small business owners as well."

Electricity rates have increased four times in the past two years, including last July, October, January of this year, and this month.
[Photo by Kang Jin-hyung and Kim Hyun-min, Asia Economy]

Concerns have also been raised about the increase in electric vehicle charging costs, not just among self-employed business owners. The Ministry of Environment recently began discussions with related agencies to form a task force on electric vehicle charging fees in response to the electricity rate hike. Industry insiders predict that the current rapid charger cost of about 347.2 won per kWh could soon enter the 400 won range.

Electricity rates have been raised four times in the past two years: in July and October last year, January this year, and this month. However, there are concerns that the current increase is far less than what the Ministry of Industry initially requested, and Korea Electric Power Corporation's cumulative deficit is expected to approach 50 trillion won by the end of the year.