The state-run Korea Electric Power Corp. (KEPCO) announced Wednesday that it will raise electricity prices for big businesses and divest certain assets as it is facing mounting losses.
However, in order to alleviate the financial burden for households and small and medium-sized enterprises, the power supplier declared that it will keep rates for these groups frozen.
The average cost for large-capacity industrial consumers will go up by 10.6 won per kilowatt-hour (kWh), effective Thursday, according to a KEPCO statement.
KEPCO Chief Executive Officer Kim Dong-cheol expressed regret over the rate hike and noted that the company’s debt of over 200 trillion won is a threat to the entire electricity industry.
The firm had previously increased electricity prices by 5.3 percent year-on-year for households in the second quarter, or 8 won per kWh, following a 13.1 won increase per kWh in the first quarter.
In addition to increasing rates, KEPCO will sell 20 percent of the stake in its wholly owned subsidiary KEPCO KDN Co., its entire share of 38 percent in the Philippines’ Calatagan solar energy project, and a 640,000-square-meter plot in northern Seoul, which includes its education and training facility.
The company has also planned to cut its workforce by 700 employees by 2026 and merge similar divisions in order to optimize its organizational structure.
These measures are on top of the 25 trillion won cost-cutting plan announced in May.