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South Korea's Lee Urges Energy Saving Amid Middle East War, Freezes Power Prices

South Korean President Lee Jae Myung has called for national cooperation on energy-saving efforts, citing disruptions from the prolonged Middle East conflict. He pledged the government would not raise electricity prices for now, despite warning of mounting losses at the state-run Korea Electric Power Corp. (KEPCO). Lee sternly warned against collusion and hoarding by fuel stations, stating such profiteering during a crisis would not be tolerated. The government is also preparing a supplementary budget to mitigate the broader economic impact of the prolonged war.

Key Points: S.Korea President Lee Urges Energy Saving, Freezes Electricity Prices

  • Urges public cooperation on energy saving
  • Pledges no electricity price hike for now
  • Warns against profiteering during crisis
  • Highlights KEPCO's massive debt burden
  • Plans supplementary budget for economic impact
2 min read

South Korea: Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices

President Lee Jae Myung urges national energy conservation due to Middle East war disruption but pledges no electricity price hike for now.

"Taking advantage of a national crisis to seek unfair profits... will not be tolerated - Lee Jae Myung"

Seoul, March 26

South Korean President Lee Jae Myung on Thursday urged the nation to cooperate on energy-saving efforts as the prolonged war in the Middle East has disrupted global energy markets, but pledged no change in electricity prices.

Lee made the remarks during an emergency economic response meeting, as the government is set to impose another round of a fuel price cap to help protect the nation's economy from impacts from the US-Israel war with Iran.

"(I) urge gas stations to actively cooperate in setting prices in line with the intended purpose of the oil price cap system," Lee said.

"Taking advantage of a national crisis to seek unfair profits through practices such as collusion and hoarding will not be tolerated and the government will continue to respond strictly under a zero-tolerance principle," Lee said.

Lee said the government will not raise electricity bills for now, but emphasized the need to conserve electricity, which is supplied by the state-run Korea Electric Power Corp. (KEPCO).

"The government does not plan to adjust electricity rates for now, but keeping them at the current level could significantly widen KEPCO's losses," Lee said.

He warned that greater reliance on electricity over petroleum-based products could further deepen KEPCO's financial burden and ultimately add pressure on government finances.

KEPCO has accumulated about 206 trillion won ($136.9 billion) in debt after supplying electricity below production costs, even as global energy prices surged between 2021 and 2023 following the Russia-Ukraine War.

As part of an energy-saving campaign, Lee urged the public sector to actively adopt a five-day vehicle license plate rotation system and encouraged citizens to use public transportation, Yonhap news agency reported.

He also instructed officials to draw up a detailed supplementary budget to prepare for the broader economic impact of a prolonged conflict, as the ruling Democratic Party plans to submit the extra budget bill to the National Assembly next Tuesday.

- IANS

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Reader Comments

A
Arjun K
The five-day vehicle rotation system is a good idea for reducing fuel use. We had the odd-even scheme in Delhi. It works if public transport is robust. Hope they have good metro and bus networks like some of our cities. 🚇
R
Rohit P
"Taking advantage of a national crisis... will not be tolerated." Strong words from President Lee. We need this kind of strict action against hoarding and profiteering here too, especially during festivals or crises. Price caps are useless if not enforced properly.
S
Sarah B
The global ripple effect is real. A war in the Middle East impacts energy prices in Asia, which then affects everything. It shows how interconnected economies are now. Conserving energy isn't just a local issue anymore.
V
Vikram M
Pledging no change in electricity prices is a short-term relief but a long-term problem. KEPCO is already drowning in debt. Eventually, taxpayers bear the burden. We've learned this the hard way with some state electricity boards. Hope they have a solid plan.
K
Karthik V
The call for public cooperation is key. In the end, government policies only work if citizens participate. Switching off unnecessary lights, using ACs wisely, carpooling—small steps from everyone add up. South Korea's public discipline might give them an edge.

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