This file photo provided by the Ministry of Trade, Industry and Energy shows Industry Minister Ahn Duk-geun. (Image courtesy of Yonhap)
SEJONG, May 8 (Korea Bizwire) – Industry Minister Ahn Duk-geun has said the government is weighing the “appropriate timing” to raise utility prices, including gas and electricity, amid the volatility in the global market.
“As the situations in the Middle East remain unstable, we are monitoring the situation while finding the appropriate timing to raise electricity and gas prices,” Ahn said during a meeting with reporters on Tuesday.
“We must normalize electricity and gas prices, and the issue is urgent,” Ahn added, noting that the government is also mindful of the burden on the people.
“As the hike would give a direct hit on consumers’ livelihood, with industries also expressing concerns, we need to seek an overall balance,” the minister said.
State-run utility companies, including Korea Electric Power Corp. (KEPCO) and Korea Gas Corp., have faced financial challenges due to the prolonged war between Russia and Ukraine and other geopolitical tensions, as they have been unable to sufficiently raise prices to cover the increased cost of energy sources.
Ahn also stressed the need to promote the use of carbon-free renewable sources and nuclear energy amid the growing electricity demand.
“As we cannot fully power cutting-edge industries with renewable sources alone, the country must supplement the supply with nuclear energy,” Ahn said. “The government aims to promote a balanced use of both renewable sources and nuclear energy.”
The minister said that the government will unveil its long-term vision for the energy portfolio, including plans to construct new nuclear plants, later this month.
Touching on Korea Hydro & Nuclear Power’s (KHNP) bid for a project to construct four nuclear reactors in the Czech Republic, Ahn said South Korea has an advantage in its capability to complete construction projects on time.
The Czech government earlier invited bids for its nuclear plant projects from the KHNP and France’s EDF, with a final decision expected to be made around June and July.
“While South Korea may have a disadvantage in terms of politics and diplomacy as France is a European nation, we intend to spare no efforts until the end,” Ahn said.
In supporting cutting-edge industries such as the semiconductor sector, Ahn said that it would be more beneficial for the government to establish a comprehensive fund to support the sector, rather than providing direct subsidies.
“We plan to create a comprehensive fund to foster strategic industries, encompassing not only semiconductors but also batteries, biotechnology, and display technologies,” the minister added.
(Yonhap)
