Kim Dong-cheol, KEPCO President: "Electricity Rate Increase of 25.9 Won Needed... Government Must Make a Decision"

First Press Conference

"Electricity rates need to be increased by at least 25.9 won per kilowatt-hour (kWh). I believe a decisive decision from the government is necessary."

At the first press briefing held on the 4th, Kim Dong-cheol, President of Korea Electric Power Corporation (KEPCO), emphasized that normalizing electricity rates is essential to improve the financial structure.

He stated, "Due to the surge in international energy prices and the nuclear phase-out policy, power generation costs have skyrocketed, but electricity rates have been frozen for eight consecutive quarters since 2020, putting KEPCO in an absolute crisis threatening its existence. While there are various considerations for the government's national administration, I think a decisive decision regarding the electricity rate increase is necessary," he said.

Kim added, "The government implemented the fuel cost linkage system in 2021 and decided to raise the fuel cost by 45.3 won per kWh this year, but the current level falls short of this. It is appropriate to raise electricity rates by up to 25.9 won, excluding the 19.4 won increase in the standard fuel cost this year."

He expressed concern that delaying the electricity rate increase would further burden the national economy. Kim explained, "Not raising electricity rates does not reduce the burden on inflation; if electricity rates are not appropriate, energy overconsumption occurs, and importing more energy puts pressure on the international balance of payments and inflation. Also, if KEPCO continues to increase bond issuance, it disrupts the bond market, causing bond interest rates to rise, which inevitably leads to higher interest rates, thereby increasing the burden on the national economy."

He viewed the reduction of support for Korea Energy Engineering University (KEN TECH) as inevitable. Kim said, "With accumulating debt and ongoing deficits forcing KEPCO employees to even return their wages, it is impossible to provide support to KEN TECH as originally promised. Reducing the scale of support within a range that does not interfere with academic schedules or research activities is unavoidable."

Kim Dong-chul, President of KEPCO, is speaking at a press conference held on the 4th.

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