Lee Chang-yang "Electricity Rates Should Reflect Costs According to Market Principles"

Industry Minister Nominee Confirmation Hearing
Reducing Burden Through Expansion of Nuclear Power Plant Operations

Lee Chang-yang, nominee for Minister of Trade, Industry and Energy, attended the confirmation hearing held at the National Assembly on the 9th and received a report from an official of the Ministry of Trade, Industry and Energy during the hearing. Photo by Yoon Dong-joo doso7@

[Asia Economy Sejong=Reporter Dongwoo Lee] Lee Chang-yang, the nominee for Minister of Trade, Industry and Energy, stated on the 9th regarding electricity rates that "it is right to set prices reflecting costs according to market principles."

At the National Assembly confirmation hearing that day, Lee said, "If costs are not continuously reflected in electricity rates, it will ultimately become a burden on the public."

He added, "Due to recent events such as Russia's invasion of Ukraine, the fuel cost ratio of international energy prices has risen too much, so I think that part will significantly affect the cost increase factors of Korea Electric Power Corporation (KEPCO)."

Lee also suggested, "If the share of nuclear power is increased through the resumption of construction of Shin Hanul Units 3 and 4 and continued operation of nuclear power plants, KEPCO's burden of electricity rate increases will be reduced," and added, "We will rationally utilize nuclear power, which is a key means of energy security and carbon neutrality."

He also mentioned strengthening nuclear power export projects. He responded, "By resuming construction of Shin Hanul Units 3 and 4, we will secure work early, and the government will actively support the development of Small Modular Reactor (SMR) technology." Regarding the issue of high-level radioactive waste disposal, he argued, "A special law should be enacted to provide legal support, and an organization capable of comprehensive coordination within the government should be formed to simultaneously expand nuclear power and implement measures."

He emphasized the importance of technological innovation and regulatory reform. Lee said, "Based on public-private cooperation, we will promote a growth-oriented industrial strategy centered on bold regulatory reforms and technological innovation," and "Together with the industry, we will prepare fundamental and comprehensive measures for Korea's economy to achieve leapfrog growth."

Regarding the transfer of trade functions, which caused conflict between the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs, he said, "Trade functions are two sides of the same coin closely linked to industry," and "If industry and trade are separated, both areas will face policy burdens."

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