[Changes in the Second Half of the Year] Reducing Electricity Bill Burden... Lowering the Rate of the Electric Power Industry Infrastructure Fund Contribution

Changes Coming in the Second Half of 2024

As Korea Electric Power Corporation prepares to actively discuss electricity rate hikes to resolve its deficit, an electric meter is installed in a commercial building in Seoul on the 7th. Photo by Jinhyung Kang aymsdream@

To alleviate the burden on electricity users, the rate of the Electricity Industry Infrastructure Fund charge, which has been imposed at 3.7% of the electricity bill, will be reduced starting in July.

The government published a booklet titled "Changes in the Second Half of 2024" on the 30th, which includes this information.

From July this year until June 2025, the charge will be imposed at a rate of 3.2% of the electricity bill. Then, from July 2025, it will be imposed at a rate of 2.7% of the electricity bill. Through two rounds of a total 1.0 percentage point reduction in the charge rate, the government expects to reduce the burden by approximately 8,000 KRW annually for a household of four.

◆ Expansion and Establishment of Quick and Diverse Business Restructuring Support

The "New Corporate Vitality Act," which helps companies pursue business restructuring "anytime, more quickly, and as needed," will be enforced starting next month on the 17th.

Accordingly, new support for business restructuring aimed at domestic production and stockpiling expansion of key supply chain items will be established. Supply chain stability will be added to the existing five types of support: oversupply resolution, industrial crisis area response, new industry entry, digital transformation, and carbon neutrality.

Additionally, regional business restructuring support centers will be sequentially expanded, and a win-win business restructuring support system will be newly established to provide incentives to large and medium-sized enterprises supporting small and medium enterprises' business restructuring.

◆ Relaxation of Restrictions on Sale and Lease in Industrial Complexes

To promote investment activities of companies within industrial complexes and resolve management difficulties, restrictions on sale and lease will be eased.

Companies located in industrial complexes will be able to lease part of industrial land to adjacent companies if needed for the purpose of installing additional manufacturing or auxiliary facilities.

Also, when companies within industrial complexes contribute industrial land and factories in kind to joint investment corporations under the Fair Trade Act in which they hold shares, these assets will be excluded from the industrial land disposal restriction.

Furthermore, companies in non-metropolitan industrial complexes will be able to raise investment funds by disposing of their industrial land and factory assets to financial and real estate investors and then leasing them back. In this case, the securitized assets must have completed the notification of factory establishment or business commencement.