Lee Chang-yang "Delay in Electricity and Gas Price Hikes Is Not Desirable"

1st Anniversary Press Conference for Inauguration

Lee Chang-yang, Minister of Trade, Industry and Energy, said on the 9th, "It is not desirable to announce the second quarter electricity rate hike after May." He emphasized that a decision on whether to raise electricity rates will be made as soon as possible within this month.

On the same day, Minister Lee held a press conference at the Government Complex Sejong to mark his first anniversary in office, stating, "We will finalize the electricity rate adjustment soon, but the method of determining the range is still under the opinion-gathering process," and added, "Since many opinions have been expressed, a decision will be made shortly."

He further explained, "Voices concerned about the burden on the public and inflation coexist with opinions that an increase threatens the energy system, making it a public forum for national consensus," and said, "The delay in the electricity rate hike is not due to procrastination but rather because time was given to build consensus."

Regarding recent concerns about the 'politicization of energy' related to the electricity rate hike, Minister Lee said, "Energy prices are economic variables, so I think politicization is undesirable. It should be minimized."

Minister Lee also revealed that a study on the electricity and gas rate determination system is underway to prevent future politicization of electricity rates. He said, "As a result of the study conducted since last year, the electricity rate results are expected in June, and the gas rate results will come out around September to October," adding, "Based on this, we will gather opinions from gas and electricity experts and the industry to improve practices and systems."

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@

When asked whether the ruling party's strong demand for self-help measures from Korea Electric Power Corporation (KEPCO) included a call for the resignation of KEPCO President Jeong Seung-il ahead of the rate hike, he avoided a direct answer, saying, "Self-help efforts and personnel matters are separate. KEPCO's disposal of real estate, senior executives returning performance bonuses, and improvement of the company's financial structure are self-help efforts. Regarding the president's personnel, this is not something I can comment on."

Minister Lee expressed a positive outlook on the Yoon Suk-yeol administration's goal of exporting 10 nuclear reactors overseas. He said, "During my visit to the U.S., I met with the U.S. Secretary of Energy and discussed government-level friendly cooperation between Team Korea and Westinghouse," adding, "The nuclear export process to Poland is proceeding normally, and achieving the goal of exporting 10 reactors during President Yoon's term is also possible."

Regarding the trade deficit that has persisted for over a year, he expressed hope for a turnaround to surplus in the second half of this year. Minister Lee said, "The trade deficit has been steadily decreasing since January, and I expect a trade surplus to appear sometime in the second half of this year," and added, "Although the export growth rate is low due to the base effect from last year's strong exports, I think it will turn positive again on a monthly basis."

On the possibility of a trade dispute with China, he explained, "It is reasonable for both governments to allow companies to naturally maintain economic activities," and said, "We are in close communication with our Chinese counterparts."

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