Lee Chang-yang "Electricity Rate Adjustment to Be Finalized Soon... Rates Must Reflect Reality"

Lee Chang-yang, Minister of Trade, Industry and Energy, said on the 1st regarding the decision on electricity and gas rates for the second quarter of this year (April to June), which was delayed for a month, "Based on a self-reliant energy supply plan, the government intends to finalize the electricity rate adjustment soon."

Minister Lee appeared on 'MBN Pressroom Live' in the afternoon and responded to a question implying that "some view the ruling party's postponement of the rate decision ahead of next year's general election as populism." He added, "As seen in the past with the nuclear phase-out policy, the more politicized electricity rates become, the greater the burden on the public. We must be cautious about the politicization of electricity rates."

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is attending the Central-Local Energy Efficiency Council held at the Government Seoul Office in Jongno-gu, Seoul on the 19th. Photo by Yoon Dong-joo doso7@

Minister Lee elaborated, "If electricity rates are not made realistic, it will cause significant damage to the overall economy and threaten the country's energy supply system itself. The approximately one-month delay in the rate decision this time was due to an adjustment period to listen to various opinions."

Minister Lee, who accompanied President Yoon Suk-yeol on his state visit to the United States, also participated in bilateral discussions on the U.S. Inflation Reduction Act (IRA) and the CHIPS Act.

Regarding the IRA, Minister Lee explained, "Domestic companies can benefit significantly through commercial lease vehicles, and we have consulted with the U.S. to ensure that most domestic battery companies meet the battery mineral requirements. The main framework regarding the IRA has been established."

Regarding the one-year grace period for export controls on semiconductor equipment to China ending in October, he said, "We have consulted with the U.S. to operate the system flexibly at a considerable level to avoid supply chain disruptions after October this year. I think there is no need to be overly concerned about this going forward."

Minister Lee said, "We have reached considerable consensus with the U.S. regarding regulations on our semiconductor companies in China related to the guardrail provisions of the Semiconductor Act. Going forward, our companies will be able to improve their technological levels in China and slightly increase their partial capacity."

Minister Lee identified nuclear power and defense industries as key export strategy sectors. He said, "The nuclear power markets approaching, such as in Poland and the Czech Republic, need to materialize quickly, and since there is significant demand for SMRs (Small Modular Reactors), we must secure technology to take the lead. Through various efforts, we expect to exceed $20 billion in defense exports this year, up from about $17 billion last year."

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