NAJU: The chief executive of Korea Electric Power Corp. (KEPCO) on Monday argued for the necessity of increasing electricity bills to fund crucial infrastructure investments and preserve the energy sector’s sustainability, in light of the company’s significant financial losses.
According to Yonhap News Agency, KEPCO, President Kim Dong-cheol highlighted the urgent need for investment during a parliamentary audit in Naju, emphasizing that a robust power grid is fundamental to supporting the growth of vital industries such as artificial intelligence and semiconductors. “We need to bolster the power grid on time to support the innovative growth of the country’s key industries,” Kim stated. He also expressed intentions to normalize electricity rates to secure the necessary funds for maintaining essential power grids and the overall sustainability of the electricity ecosystem.
Kim’s comments come in response to KEPCO’s financial report showing a staggering combined loss of 43 trillion won (approximately US$31.7
billion) from 2021 to 2023, primarily due to the inability to adjust electricity rates sufficiently to cover rising fuel costs during the COVID-19 pandemic and subsequent inflationary pressures. Additionally, the company’s debt reached 202.9 trillion won as of June, marking an increase of 440 billion won since the end of 2023.
The KEPCO president also mentioned ongoing self-rescue measures aimed at saving 20.9 trillion won from 2022 to 2026 and stressed the importance of reflecting production costs in the bills to foster the growth of innovative companies within the energy sector. In a related comment in August, Industry Minister Ahn Duk-geun indicated that the government plans to raise electricity prices after the summer season concludes.