SME Industry Expresses 'Concerns' Over Electricity Rate Hike... "Dedicated Tariffs and Support Measures Needed"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The small and medium-sized enterprises (SME) sector expressed concerns over the government's announcement of electricity rate hikes and urged a restructuring of the system, including a dedicated electricity tariff for SMEs.

The Korea Federation of SMEs issued a statement on the 27th, saying, "We express our concern over today's announcement of the fuel cost adjustment rate increase for electricity tariffs in the third quarter."

They added, "Since last year, international raw material prices such as minerals and grains have surged, and financial market volatility has increased with the exchange rate approaching 1,300 won. Public utility rates, including electricity and gas, have also risen consecutively, increasing the burden on 6.68 million SMEs that have lost vitality due to the prolonged COVID-19 pandemic."

The Federation stated, "We deeply sympathize with concerns that Korea Electric Power Corporation's (KEPCO) deficit, amounting to trillions of won, could become a burden on the public. However, we urge the prompt establishment of support measures for energy savings, such as expanding support for replacing high-efficiency equipment, along with a reasonable tariff system reform including a dedicated tariff for SMEs."

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