South Korea hikes postal rates amid mounting deficit

by Lee Hugh Posted : July 1, 2026, 15:19Updated : July 1, 2026, 15:21
A woman sends a letter at a post office in central Seoul on July 1 2026 Yonhap
A woman sends a letter at a post office in central Seoul on July 1, 2026. Yonhap
SEOUL, July 1 (AJP) - Postal prices have been hiked for the first time in nearly five years, with basic rates rising from 430 won (about US$0.29) to 500 won, Korea Post said on Wednesday.

Under the hikes taking immediate effect from the first day of July, standard mail now costs 500 won for letters between 5 grams and 25 grams and 520 won for those over 25 grams and up to 50 grams.

The adjustment comes amid declining mail volumes in an increasingly digital era.

The state-run postal agency said its deficit increased from 165.9 billion won in 2024 to 311.6 billion won in 2025, as traditional mail usage continues to fall, while fixed costs for post offices and delivery infrastructure remain high.

Asking for public understanding over the hike, the first since September 2021, the agency said it adjusted the rates to a minimum level, taking into account the burden on households, and added that even after the increase, South Korea's postal rates remain lower than those of many major economies.