South Korean Small Businesses Demand Relief from Soaring Electricity Bills Amid Heatwave

South Korean small business owners are demanding government action to alleviate the financial strain of electricity costs, exacerbated by a prolonged heatwave. The Small Merchants Federation issued a statement on August 14, emphasizing that the combination of high interest rates, inflation, and a surge in summer electricity bills is creating an unsustainable burden.

Despite declining foot traffic in traditional markets and commercial districts due to the extreme weather, business owners are forced to keep air conditioning running to maintain operations. This necessity, however, directly contributes to their escalating electricity expenses.

The federation is advocating for an expansion of eligible businesses for credit card payments of electricity bills and a strengthening of installment payment options. Current regulations by Korea Electric Power Corporation restrict credit card payments for contracts exceeding 20kW, forcing many small businesses, including restaurants, cafes, and convenience stores, to pay large, sudden bills.

They also called for increased budgets for programs supporting high-efficiency appliances and for the "Small Business Management Stabilization Voucher Project," which provides financial aid for electricity costs. The association proposed discussing a dedicated electricity rate plan for small businesses in the long term. The government and National Assembly were urged to recognize the severity of the management crisis faced by small businesses due to the prolonged heatwave and to implement effective measures to reduce their electricity costs.