Despite over 50 years since the start of urban gas supply in South Korea, many rural areas still have a supply rate of less than 50%. Residents in these areas are forced to rely on relatively expensive fuels, and the effectiveness of the reduced rate program for vulnerable groups remains low, highlighting the need to address energy welfare gaps.
On October 19, Park Hee-seung, a member of the National Assembly's Industry, Trade, and Energy Committee from the Democratic Party, revealed data from Korea Gas Corporation indicating that the national urban gas supply rate stands at 83.3% for households and 94.3% for local governments.
However, among basic local governments, there are 60 areas nationwide where the urban gas supply rate is below 50%. Of these, 49 areas (81.7%) are rural counties. In Jeonbuk, Park's constituency, seven cities and counties, including Namwon, Imsil, Wanju, Muju, Jinan, Gochang, and Buan, are included.
The urban gas supply in South Korea began in 1972 at an apartment complex in the eastern part of Seoul. The establishment of Korea Gas Corporation in 1983 and the introduction of liquefied natural gas (LNG) in 1986 marked the beginning of a significant expansion of LNG-based urban gas supply, primarily in the metropolitan area. By the mid-1990s, the supply network expanded to central and southern regions, as well as smaller cities in the 2000s. However, even after half a century, some rural areas still lack access due to insufficient pipeline infrastructure.
Residents in areas without urban gas must use relatively expensive fuels like liquefied petroleum gas (LPG). Even within regions where urban gas is supplied, there are discrepancies in pricing. The average retail price for residential urban gas in low-supply areas is 24.17 won per megajoule (MJ), which is 7.2% higher than the 22.55 won per MJ in the metropolitan area.
Investment in expanding the supply network has decreased. The pipeline investment by urban gas companies is projected to drop from 585.7 billion won in 2023 to 524.3 billion won in 2025, a 10.5% decline over two years. The low population density and high installation costs in rural areas make expansion challenging.
The government is also promoting projects to install LPG storage tanks and shared pipeline networks in rural and fishing communities where urban gas supply is difficult. However, there are calls for ongoing support to reduce energy cost disparities between regions.
Concerns have been raised about the low effectiveness of support programs aimed at alleviating the financial burden on vulnerable groups.
Korea Gas Corporation has been operating a 'Rate Reduction Application Assistance Program' since July of last year, which seeks out eligible individuals and assists them in applying for benefits. This program aims to support the elderly and disabled who may struggle with complex procedures or lack information.
However, among the 318,825 households identified in the second half of last year as being in need of rate reductions, only 17,729 households, or 5.6%, actually received benefits. Notably, around 190,000 households could not even be contacted. This indicates limitations in connecting identified beneficiaries to actual support.
In response, Park urged Korea Gas Corporation during the National Assembly audit to expand urban gas supply in rural areas and improve the rate reduction program for vulnerable groups.
Park stated, "While Korea Gas Corporation supplies gas to 83% of households nationwide, it must also consider where the remaining 17% live. The company should take the lead in changing the structure that forces rural residents to use expensive fuels and leaves the elderly without support."
* This article has been translated by AI.
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