South Korea Adjusts Industrial Electricity Prices to Ease Corporate Burden

The South Korean government revised the industrial electricity pricing system on Friday to reduce the electricity cost burden for businesses.

According to the Ministry of Climate, Energy and Environment, under the plan approved by the Korea Electric Power Commission, daytime peak electricity prices will be reduced by up to 16.9 won per kilowatt-hour, while nighttime peak prices will be increased by 5.1 won per kilowatt-hour.

Specifically, electricity prices during summer and winter daytime peak hours will be lowered by 16.9 won, and during spring and autumn, they will be reduced by 13.2 won. The new rates will take effect on April 16.

The plan aims to lower daytime electricity prices and increase nighttime prices to ease the financial burden on businesses. Previously, Korea Electric Power Corporation raised industrial electricity prices by 9.7% in October 2024 to address financial difficulties.

Additionally, on weekends and public holidays during spring and autumn, electricity usage from 11 a.m. to 2 p.m. will enjoy an extra 50% discount, as demand during this period is usually lower.

The Ministry of Climate, Energy and Environment stated that the new pricing system is expected to help approximately 97% of businesses save on electricity costs, with small and medium-sized enterprises operating mainly during the day likely to see more significant savings.