South Korea's postal rates will increase by 70 won for the first time in five years. This adjustment is aimed at addressing the growing business deficit due to declining mail volume and rising costs.
The Ministry of Science and ICT's Korea Post announced that starting July 1, the standard domestic postage rate for a 25-gram letter will rise from 430 won to 500 won. This is the first rate change since 2021.
To minimize the burden on the public, Korea Post has implemented significant management innovations, including streamlining its service and transportation networks and improving the utilization of aging facilities and equipment. The organization has also sought new revenue sources through initiatives like the introduction of semi-registered mail and partnerships with convenience stores, while expanding public services such as welfare mail and the collection of expired medications to limit the need for rate adjustments.
Despite these efforts, the acceleration of digital transformation has led to a continued decline in mail volume and increased maintenance costs for the postal network. As a result, the postal business deficit rose to 165.9 billion won in 2024 and further increased to 311.6 billion won in 2025.
Korea Post CEO Park In-hwan stated, "We sincerely ask for the public's understanding regarding the necessary adjustment in rates due to the expanded deficit in postal services. We will strive to create a safe working environment, minimize factors leading to rate adjustments through AI transformation and operational innovation, and expand public services such as welfare mail and care packages to address administrative and welfare gaps."
Additionally, Korea Post highlighted the need for rate adjustments in a presidential briefing at the end of last year, noting that while postal rates were previously adjusted every two years, prolonged freezes have negatively impacted profitability.
* This article has been translated by AI.
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