SEOUL - Korea Electric Power Corp. (KEPCO), South Korea's state-run electricity supplier, announced on Wednesday that it will raise power prices for large companies and sell some assets due to its escalating losses.
According to Yonhap News Agency, the company stated that it would freeze electricity prices for households and small and medium-sized firms, amid concerns about high inflation. Starting Thursday, the new rates for large-capacity industrial users will increase the average cost by 10.6 won (approximately US$0.01) per kilowatt-hour (kWh).
KEPCO, facing pressure to adjust electricity prices due to accumulated deficits of 47 trillion won, emphasized its consideration for households and self-employed individuals burdened by prolonged inflation and high borrowing costs. The company plans to review further rate adjustments, monitoring global energy prices and foreign exchange rates.
Earlier, KEPCO had raised electricity rates for households by 5.3 percent year-on-year in the second quarter, following a 13.1 won increase per kWh in the first quarter.
In addition to rate changes, KEPCO revealed plans to offload assets, including properties and stakes, as part of its cost-cutting measures. The company will sell a 20 percent stake in its subsidiary KEPCO KDN Co., an ICT service provider, and its entire 38 percent share in the Philippines' Calatagan solar energy project. It will also sell a 640,000-square-meter plot in northern Seoul, including an education and training facility.
Furthermore, KEPCO plans to optimize its organizational structure by merging divisions and reducing its workforce by 700 employees by 2026. These measures are in addition to the previously announced plan to save 25 trillion won over the next five years.