'On Launch Day,' Minister Kim Sungwhan of Climate Ministry Vows to Curb Industrial Electricity Rate Hikes

"Further Increases in Industrial Electricity Rates Will Be Curbed to the Maximum"
No Decision Yet on Possible Rate Cuts
"Renewable Energy Capacity to Reach 100GW by 2030...
Government to Cover 30% of Hydrogen-Based Steelmaking Investment"

Kim Sungwhan, Minister of Climate, Energy and Environment, is giving a lecture at the CEO Breakfast Meeting held at the Korea Chamber of Commerce and Industry Building in Jung-gu, Seoul on October 1, 2025. Photo by Yonhap News

Kim Sungwhan, Minister of Climate, Energy and Environment, announced that the government will do its utmost to curb increases in industrial electricity rates. He also expressed a strong commitment to supporting 30% of the investment costs for hydrogen-based steelmaking.

On October 1, at the CEO Breakfast Meeting held at the Korea Chamber of Commerce and Industry in Seoul, Minister Kim addressed business leaders' concerns, stating, "Industrial electricity rates have nearly doubled over the past three years, significantly increasing the burden on companies." He added, "While the previous administration left household electricity rates unchanged, only industrial rates rose, pushing the burden on the industrial sector beyond its limits."

Minister Kim emphasized, "President Lee Jaemyung believes that the industrial sector should no longer suffer," and said, "We will make every effort to suppress any further increases in electricity rates." Regarding the possibility of lowering electricity rates, he stated, "It is difficult to make a judgment at this time," expressing a reserved stance.

Addressing concerns that expanding renewable energy could raise electricity rates, Minister Kim explained, "Globally, the cheapest sources of power generation are wind and solar, with the levelized cost of electricity (LCOE) having dropped to the 50-60 won range. Although it is more expensive in Korea, our challenge is to ensure that electricity rates do not rise even as renewable energy increases."

On this day, Minister Kim stressed the government's plan to expand renewable energy capacity to 100 gigawatts (GW) by 2030 in response to the global climate crisis. The target under the 11th Basic Plan for Long-term Electricity Supply and Demand was 78 GW. He noted, "Korea spends 220 trillion won annually on imports of coal, oil, and liquefied natural gas (LNG)," adding, "We need to replace more than half of this with renewable energy so that money circulates within the country."

He also unveiled decarbonization strategies for various sectors, including steel, cement, automotive, construction, and agriculture. Minister Kim explained, "We need to produce affordable green hydrogen or pink hydrogen and transition to hydrogen-based steelmaking, but this is not something companies can do alone. If the government supports about 30% of the total investment, it becomes feasible."

Minister Kim announced plans to provide additional subsidies, starting next year, for converting internal combustion engine vehicles to electric vehicles, in addition to existing subsidies for electric vehicle purchases. He also highlighted the need to electrify forklifts, trailers, and agricultural machinery.

He stated, "Advanced countries such as those in Europe and Japan are switching to heat pumps that produce heat from electricity generated by renewable energy or nuclear power. We must also transition to this method." He mentioned the need to reform building regulations and the progressive electricity rate system to facilitate this change.

This day marked the official launch of the Ministry of Climate, Energy and Environment as a result of government reorganization. As the first head of the new ministry, Minister Kim declared, "We are now at a civilizational turning point where we must shift from coal and oil to a new green civilization. The Ministry of Climate, Energy and Environment will work hard to support business leaders and help them become the pioneers of this new era."

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