Lee Chang-yang "High Salaries at KEPCO and Gas Corporation Are Not Desirable... Energy Price Increases Are Inevitable"

[Asia Economy Sejong=Reporter Dongwoo Lee] Lee Chang-yang, Minister of Trade, Industry and Energy, stated regarding the energy price hike, "Deficits will inevitably continue to accumulate under prices below cost," adding, "Considering the difficulties caused in the past, this is not desirable."

On the morning of the 20th, during a meeting with the press corps at the Government Complex Sejong, Minister Lee said, "There is a concern that Korea Gas Corporation's unpaid receivables could increase from 10 trillion won in January this year to 12 trillion won." This reaffirmed the need for the normalization of management for Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation through gradual price increases.

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is delivering opening remarks at the 'Korea-Middle East Economic Cooperation Public-Private Promotion Committee' held on the 16th at Lotte Hotel in Jung-gu, Seoul. Photo by Yoon Dong-joo doso7@

Minister Lee explained, "The electricity cost recovery rate is around the low 70% range, and gas is about 60%, so the structure inevitably leads to increasing unpaid receivables and deficits over time," adding, "We will make decisions by comprehensively examining several indicators such as international energy price trends, the deficits and unpaid receivables of energy public enterprises like KEPCO and Korea Gas Corporation, and the inflation level."

However, he emphasized that the pace of price increases will be adjusted considering the overall situation. Minister Lee said, "I fully agree with the President's remarks to slow down the increase in public utility rates for those struggling with inflation burdens," adding, "We will provide as much support as possible to vulnerable groups that may arise during this process."

Regarding support for heating costs for the middle class, he stated, "Considering various aspects such as the reduction in demand decrease effects due to price hikes when expanding funding or support scope, we are not considering expanding support for the middle class," and added, "In the mid to long term, if the government supports heating costs for many recipients, even if incentives are provided for energy efficiency, the willingness to conserve energy may weaken. The government is reviewing this comprehensively."

In response to reports that the number of employees with annual salaries exceeding 100 million won has increased at KEPCO and Korea Gas Corporation, Minister Lee said, "At KEPCO, the growth rate of employees with annual salaries over 100 million won decreased compared to 2021, while Korea Gas Corporation saw a slight increase," explaining, "Regardless, it is not desirable for high salaries to be paid by the corporations when the energy environment is unfavorable and the public is suffering." He also mentioned that he would review related matters together with the Ministry of Economy and Finance.

He also clearly expressed opposition to the so-called 'Yellow Envelope Act' (Partial Amendment to the Labor Union and Labor Relations Adjustment Act), which is likely to pass the National Assembly's standing committee on the 21st. Minister Lee emphasized, "The Yellow Envelope Act includes provisions that broaden immunity for illegal strikes and expand the scope of negotiation targets, which could destabilize labor-management relations and encourage strikes," adding, "We are concerned that the Yellow Envelope Act could worsen labor-management relations or hinder domestic and foreign investment."

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