South Korea to Cut Energy Imports to Ease Record Trade Deficit
- Government looks to hike power rates in bid to curb demand
- Nation must still import more gas to refill storage for winter
The Myeongdong shopping district of Seoul.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
South Korea is rushing to find ways to reduce expensive energy imports after surging fuel costs and a weakening won pushed the country’s trade deficit to a record.
The government is considering raising power bills to drive down energy consumption, according to the energy ministry. That will reverse its previous policy of limiting increases to protect consumers. Reducing imports is one way to help sustain a stable current account balance, Finance Minister Choo Kyung-ho said in a meeting earlier this week.