Gov't weighs tiered electricity pricing to reverse business clustering around capital
The Ministry of Climate, Energy and Environment plans to roll out electricity pricing that varies by region in an effort to encourage companies to relocate outside the Seoul metropolitan area, in line with the Lee Jae Myung administration’s broader push for balanced national development. Climate minister Kim Sung-whan said Monday that the government is reviewing a regional electricity rate system that would make operating costs more attractive in areas closer to power supply clusters, creating financial incentives for businesses to expand into provincial regions. “The move is aimed at addressing the long-standing concentration of companies in the capital area, where firms tend to cluster to access talent and infrastructure,” Kim said. Although electricity pricing reform must proceed cautiously due to Korea’s historically integrated national grid, which complicates region-specific cost calculations, Kim emphasized that the initiative is ultimately intended to reshape the country’s industrial landscape rather than merely adjust rates. The president previously floated the idea dur
