The business sector has expressed support for the proposed introduction of a regional pricing system for industrial electricity, which includes a reduction of up to 10% in rates for the southern region.
On August 26, the Korea Chamber of Commerce and Industry, along with 21 economic and industrial organizations, released a joint statement welcoming the government's plan to implement a regional pricing system for industrial electricity, aimed at the efficient operation of the national power system and balanced regional development.
These organizations pointed out that the rapid growth in electricity demand due to artificial intelligence and advanced industries has exacerbated challenges in the national power supply, particularly with the concentration of demand in the metropolitan area and delays in power grid construction. They noted that the sharp increase in industrial electricity rates has weakened corporate competitiveness.
They expressed hope that the introduction of the regional pricing system and the overall trend of rate reductions would alleviate the burden on companies, promote industrial growth, encourage corporate investment, and contribute to balanced regional development.
The business sector's support for this rate reduction stems from the significant burden of rising industrial electricity costs. Major manufacturing sectors, particularly steel, petrochemicals, and semiconductors, have faced ongoing cost pressures due to increased electricity rates.
They emphasized that since electricity rates are directly linked to production and investment activities, they hope the system will be implemented swiftly to ensure its effects are felt in the industrial sector. They also urged that for the success of mega projects and the nurturing of national strategic industries, policies for regulatory innovation, support for living conditions, and infrastructure expansion for balanced regional development must be established.
Furthermore, they stressed their expectation that the regional pricing system for industrial electricity will lay the groundwork for the activation of distributed energy, enhancing industrial competitiveness and driving balanced regional growth.
Participating organizations in this statement include the Korea Chamber of Commerce and Industry, the Korea Economic Association, the Korea International Trade Association, the Korea Employers Federation, the Korea Federation of Small and Medium Enterprises, the Korea Federation of Medium Enterprises, the Korea Iron and Steel Association, the Korea Chemical Industry Association, the Korea Petroleum Association, the Korea Machinery Industry Promotion Association, the Korea Display Industry Association, the Korea Semiconductor Industry Association, the Korea Battery Industry Association, the Korea Nonferrous Metals Association, the Korea Textile Industry Association, the Korea Cement Association, the Korea Automobile Mobility Industry Association, the Korea Electric Industry Promotion Association, the Korea Electronics and Telecommunications Industry Promotion Association, the Korea Shipbuilding and Marine Engineering Association, and the Korea Textile Association.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.