South Korea to Overhaul Industrial Electricity Pricing to Aid Regional Businesses

SEOUL, Aug. 4 (Yonhap) -- The Ministry of Climate, Energy and Environment said Tuesday it will overhaul the pricing structure for industrial electricity as part of the government's efforts to ease cost burdens on businesses.

During a policy briefing to President Lee Jae Myung, the ministry said it plans to revise the industrial electricity pricing system to reflect regional differences in electricity demand.

According to the ministry, the overhaul aims to ease the country's concentration in the Seoul metropolitan area and promote balanced regional development by lowering electricity costs for businesses operating outside the capital region.

Under the plan, the country will be divided into four major regions, each further subdivided based on government-designated population decline zones.

Minister Kim Sung-whan said the revision is intended to lower electricity costs for energy-intensive industries, including steel and petrochemicals.

"Many factories in these industries are located outside the Seoul metropolitan area," he said at a press conference Monday. "The government will lower industrial electricity rates to help them improve corporate cost competitiveness."

Industrial electricity rates currently average around 180 won per kilowatt-hour (kWh), depending on the time of use.

The ministry said it will hold a public hearing on the new pricing system later this week before finalizing the plan.