Minister indicates electricity rates will increase

By Chung Joo-won
  • Published : May 17, 2012 - 20:33
  • Updated : May 17, 2012 - 20:33
Commerce Minister Hong Suk-woo indicated Thursday that the government will approve a plan to raise electricity fees.

“(Korea’s) cost of electricity for firms marks the cheapest among members of the OECD,” he told reporters.

The state-run Korea Electric Power Corp. has called for a hike in electricity prices for industry and homes, citing the long freeze in the prices as the main source of its widening deficit.

But the government had opposed the plan, fearing that the hike would inflate consumer prices.

The minister did not respond to news reports that prices would increase by 5-7 percent, saying the size of the price hike and when it would be implemented needed to be discussed further.