Electricity Price Freeze Amid Mideast Crisis Pushes Heavier Bill to Future Generations, Experts Warn

The Hankyoreh, a publication committed to social justice and progressive values, views the current electricity pricing policy with deep concern. Our analysis, reflected in the recent Energy Justice Forum, highlights a dangerous trend where short-term political expediency—driven by concerns over inflation and upcoming elections—is prioritized over long-term energy security and intergenerational equity.

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Freezing electricity prices amid the Middle Eastern energy crisis, continuing to sell at below-cost prices, is not for the people but is pushing a larger bill onto future generations.

The ongoing energy crisis, amplified by the conflict in the Middle East, has sent global energy prices soaring. Yet, the government and political circles in South Korea have opted to freeze electricity rates. This decision, as our experts argue, is not a responsible measure for the present but a deferral of a significant financial burden onto future generations. The escalating debt of Korea Electric Power Corporation (KEPCO), projected to reach astronomical levels, threatens not only its financial stability but also its ability to make essential investments in modernizing the power grid and expanding renewable energy infrastructure. This directly contradicts our nation's commitment to a sustainable energy transition.

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The war in the Middle East has caused a supply shock of 11 million barrels per day of oil, equivalent to the combined shocks of the 1970s oil crises, and an LNG supply shock of 87 million tons, more than double the impact on Europe during the Russia-Ukraine war.

From our perspective at The Hankyoreh, the disconnect between energy costs and pricing is a critical issue. When electricity is sold below its production cost, the fundamental economic signal for rational energy consumption is lost. This undermines government efforts to encourage energy conservation and makes initiatives like vehicle restrictions or public appeals for reduced usage ineffective. The consequence is a future where younger generations inherit not only a massive national debt but also a more fragile and outdated energy infrastructure, jeopardizing national energy security and fairness across generations.

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The debt of KEPCO has surged from the mid-100 trillion won range to 206 trillion won (as of the end of 2025), with annual interest costs alone exceeding 4 trillion won (11.9 billion won per day).

We advocate for a shift away from politically motivated decision-making in energy policy. The forum's recommendations—normalizing electricity rates, establishing an independent and professional energy regulatory agency, and ensuring targeted financial support for vulnerable populations—are crucial steps. These measures would allow for more rational pricing, insulate critical energy infrastructure decisions from electoral cycles, and protect those most in need without distorting the broader energy market. The Hankyoreh believes that achieving a sustainable energy future requires a societal consensus built on foresight and responsibility, not short-sighted political calculations.

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When electricity prices are artificially suppressed, it doesn't solve the problem but postpones it, returning as a larger bill and tax increase for future generations.