Energy-Related Complex Crisis... Government to Reduce Energy Usage by 10% in All Public Institutions

Deputy Prime Minister Choo Kyung-ho Holds Emergency Economic Ministers Meeting
"Energy-Induced Complex Economic Crisis to Last for a Considerable Period... Nationwide Energy Saving Campaign"

[Asia Economy Sejong=Reporter Kwon Haeyoung] As concerns over a complex economic crisis triggered by the rise in global energy prices grow, the government has decided to reduce energy consumption in the public sector by 10% starting next month. An energy-saving campaign targeting the public will also be conducted.

On the 30th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held an emergency economic ministers' meeting at the Government Seoul Office and announced, "From October, all central and local public institutions will rigorously implement a plan to reduce energy consumption by 10%."

He stated, "Recently, the world is facing a complex economic crisis as the global energy crisis caused by the prolonged Ukraine situation spreads its impact to inflation and trade balance. Our economy is also experiencing increased difficulties due to the energy-intensive industrial structure and low energy efficiency, which amplify the effects of soaring energy prices, resulting in persistent high inflation and trade deficits."

Up to August this year, South Korea's cumulative trade deficit reached $24.73 billion. The surge in energy import costs, including crude oil, gas, and coal imports amounting to $125.16 billion, has deepened the trade deficit.

Accordingly, the government will first implement energy savings in the public sector. It will enforce the 'Five Winter Energy Saving Practices,' such as limiting heating temperatures and turning off decorative lighting, and strengthen this year's public institution management evaluations based on implementation performance.

Voluntary efficiency innovation agreements will also be signed with the top 30 companies that consume 63% of industrial sector energy.

Based on this, a nationwide campaign will be promoted to explain the necessity of energy saving in more detail.

Furthermore, to transition the industrial and economic structure to a low-energy consumption and high-efficiency system, tax incentives for energy efficiency technologies will be strengthened. Measures under consideration include accelerated depreciation for energy-saving facility investments and additional support for core technologies that improve energy efficiency, new growth and source technologies, and new growth commercialization facilities.

Deputy Prime Minister Choo emphasized, "Considering the increased energy demand in winter and the possibility of further supply reductions from Russia, the current energy-driven complex economic crisis may persist for a considerable period. Now, we must combine nationwide energy-saving efforts with structural reforms to shift from an energy-intensive structure to an energy-efficient economic structure."

This content was produced with the assistance of AI translation services.