Development of East Sea Deep-Sea Gas Field, External Investment Attraction from 2nd Drilling Phase
Ministry of Industry Allocates 11.501 Trillion KRW Budget for 2025... Semiconductor Up 17.3%
Anduk Geun, Minister of Trade, Industry and Energy, stated, "Electricity rates will be raised soon."
At a press briefing on the 26th, Minister Ahn said, "(The increase in electricity rates) is a matter of timing." He added, "First, the heatwave must pass, so it is difficult to raise electricity rates immediately, but once this situation passes, we will try to adjust the timing as much as possible to normalize electricity rates. The ruling party has also expanded support for vulnerable groups in need, such as energy vouchers, and I understand they are reviewing the electricity rate increase accordingly."
On the 26th, Andeokgeun, Minister of Trade, Industry and Energy, is explaining key issues at a press briefing.
Korea Electric Power Corporation (KEPCO), which supplies electricity, has accumulated massive debt as it has been unable to raise sales prices in line with the rising fuel costs required for electricity production. KEPCO's debt increased by 93.3736 trillion won, from 108.8833 trillion won in 2014 to 202.4502 trillion won last year.
However, Minister Ahn was reserved about the timing and extent of the electricity rate increase. He said, "We are planning to raise (electricity rates) soon," but added, "With the fourth quarter approaching, there are many concerns, so I cannot specify the timing, but we are trying to normalize electricity rates as soon as possible."
Regarding the development of the deep-sea gas field in Yeongil Bay, East Sea, Minister Ahn explained, "Korea National Oil Corporation is currently conducting a lead operator bid for the first drilling well until September, and a decision will be made soon. The government is preparing domestic regulations and resetting the production rights so that from the second drilling onward, foreign investment can be attracted."
He expressed concern over Hanam City's recent decision to deny permits for KEPCO's indoor construction and expansion project of the Dongseoul Substation. KEPCO has been working to relocate existing power facilities of the Dongseoul Substation, which were exposed outdoors, into a new building, improve noise and surrounding environment, and expand facilities by introducing direct current transmission on idle land. However, Hanam City's refusal has put this national project, aimed at transporting large-scale electricity generated from power plants along the East Coast to the metropolitan area, at risk of being blocked at Seoul's doorstep. Minister Ahn said, "We consulted with local governments, and I feel regretful. Since there is opposition from residents, this seems to be the reality in our country. We will make sure the Electricity Grid Special Act, which is fundamentally necessary for power grid expansion, passes this year."
The Ministry of Trade, Industry and Energy has allocated a budget of 11.501 trillion won for next year, an increase of 21.8 billion won compared to this year. Minister Ahn said, "The main focus is on fostering advanced industries, revitalizing exports and foreign investment, strengthening economic security, global pivotal economic and trade official development assistance (ODA), and core policies for carbon-free energy and regional economic revitalization. For semiconductors, the budget increases by 17.3%, and export promotion by 4.5%, as we aim to drive Korea's economic growth with exports, the last remaining engine."
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