Environment ministry unveils regional industrial electricity tariff plan

The environment ministry on Wednesday unveiled a design for a regional industrial electricity tariff system intended to lower power costs for manufacturers in non-metropolitan areas by up to 10 percent. Minister Kim Seong-hwan said the measure is a core component of broader reforms designed to foster coexistence between Korea Electric Power Corp. and the industrial sector while enhancing long-term competitiveness.

The plan divides the country into 11 distinct zones by combining four broad grids based on power system structures with four additional regions focused on balanced growth. Industrial users in the southern region could see rates drop by a maximum of 18 won from the 2025 average of 181.9 won.

Facilities in the central region would benefit from reductions of up to 15 won, while those in the northern metropolitan area covering Incheon could save up to 10 won. Rates in the southern metropolitan area will remain largely unchanged or be adjusted by only about 1 won.

Jeju Island was excluded from the scheme. The ministry estimates that the new structure will reduce the total industrial electricity burden by approximately 2.8 trillion won.

Officials aim to complete the implementation of the system within this year following the public hearing. The ministry and the power utility plan to proceed rapidly with subsequent procedures, including finalizing the design based on stakeholder feedback and revising relevant regulations and tariff terms.

Kim stated that attracting investment from power-intensive industries to non-capital regions would fundamentally reduce the national burden of building transmission networks, serving as a catalyst for achieving balanced national development and strengthening the competitive edge of domestic industries.