South Korea’s Ministry of Trade, Industry and Energy said Tuesday that it is not considering changes to its electricity charging scheme for households, despite litigations against the state’s “unfair and excessive” billing amid the scorching summer heat.

The government said that it would need social consensus before it can actually change the scheme, which it added was developed in favor of the low-income group.

“This would need social consensus given that there are a variety of opinions on this scheme,” said Kim Yong-rae, the director general for energy industry policy at the Trade Ministry, during a local radio station interview.

As the heatwave continues, public complaints have sharply increased over the country’s power pricing scheme which charges residential customers cumulatively in accordance with the amount consumed. In contrast, a flat-rate system is applied to industrial and commercial users.

Meanwhile, Finance Minister Yoo Il-ho also urged lawmakers to set aside their differences and approve the government’s extra spending plan for the second half of this year.

If they do not do so, more individuals will face difficulties in finding jobs amid increasing youth unemployment and layoffs following corporate restructuring, he said.

“The time is ripe for the extra spending proposal to pass, otherwise the young will lose the opportunity to land a job, and those who lose jobs (due to the restructuring) will not be able to receive emergency relief such as welfare and medical funds in time,” Yoo said at a press conference in Seoul.

“The government will devise an expansionary fiscal budget for next year.”

The political circle has been arguing over the government’s 11 trillion won ($10 billion) supplementary budget, with the main opposition Minjoo Party demanding the government reflect the growing need for education and welfare finances for children in provincial areas.

Last month, the Finance Ministry announced plans to spend an additional 9.8 trillion won. The extra budget includes financing the restructuring of shipping and shipbuilding companies by recapitalizing state-run policy banks. It will also provide capital for start-up entrepreneurs and help regional small businesses. Of the 9.8 trillion won, 3.7 trillion won will be provided to regional administrations for public education and facilities development.

From the 11 trillion won budget, 1.2 trillion won will be used to pay back government debts.

“After excluding spending for corporate restructuring and debt payback, about 70 percent of the extra budget will be carried out to directly and indirectly support regional businesses,” Yoo told reporters, addressing the opposition parties’ claim that the budget did not reflect regional needs to improve education and welfare systems.

The government had initially sought to have the budget pass by this week. However, it has barely moved forward through the various National Assembly committees since it was submitted late last month.

By Park Hyong-ki
(hkp@heraldcorp.com)