South Korean politics tie KEPCO's hands on electricity rate hikes

State-owned utility reported biggest loss in nation's business history last year

20230420N yoon nuclear plant YONHAP

After South Korean President Yoon Suk Yeol spoke of keeping electricity rate increases under control, KEPCO shelved a hike planned for April. © Yonhap

KOTARO HOSOKAWA, Nikkei staff writer

SEOUL -- Even after posting the biggest operating loss on record for a South Korean company, the state-owned Korea Electric Power Corp. cannot raise rates amid political pressure from the highest office.

"We should control the scope and speed of increases in fees to minimize people's burdens," South Korean President Yoon Suk Yeol said during an economic meeting in February. Those abrupt words came as a blow to KEPCO's leadership.

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