Seoul Leader Calls for Cooperation on Energy Efficiency

South Korean President Urges Energy Savings Amid Middle East Crisis​

Fuel Price Cap and Electricity Rate Freeze​

Seoul, March 26 – South Korean President Lee Jae Myung on Thursday called for national cooperation in energy-saving efforts, citing the disruption of global energy markets caused by the ongoing war in the Middle East. The government is preparing to implement another fuel price cap to mitigate the economic impact of the US-Israel conflict with Iran, according to reports from Yonhap news agency.

Lee urged gas stations to actively cooperate in setting prices consistent with the intended purpose of the oil price cap system. He stated that exploiting a national crisis for unfair profits through practices like collusion and hoarding would not be tolerated and that the government would maintain a zero-tolerance approach.

The government has pledged to maintain current electricity prices. However, President Lee emphasized the necessity of conserving electricity, supplied by the state-run Korea Electric Power Corp. (KEPCO). He cautioned that keeping electricity rates at the current level could significantly increase KEPCO’s financial losses.

KEPCO currently holds approximately 206 trillion won (US$136.9 billion) in debt, accumulated due to supplying electricity below production costs during a period of rising global energy prices between 2021 and 2023, following the Russia-Ukraine War.

As part of an energy-saving campaign, President Lee instructed the public sector to adopt a five-day vehicle license plate rotation system and encouraged the use of public transportation. The government plans to submit a detailed supplementary budget to the National Assembly next Tuesday to address the broader economic consequences of a prolonged conflict.