South Korea to cut industrial daytime rates, raise nighttime rates under new pricing plan

The Korean government, along with Korea Electric Power Corporation (KEPCO), unveiled a reform to industrial electricity pricing that shifts charges by time of day. The plan lowers daytime rates and raises nighttime rates, and it will take effect from the 16th of the upcoming month.

Under the reform, industrial consumers will see a reduction of 16.9 won per kilowatt-hour (kWh) for daytime use. Conversely, nighttime usage will be priced higher, by 5.1 won per kWh. The government says the adjustments are designed to steer demand toward daytime hours.

Officials say the daytime price cut reflects increased power supply capacity during the day, while the higher evening and late-night prices aim to curb demand when it is relatively stronger. The approach is intended to encourage manufacturers to shift more of their power-intensive activity to the daytime window.

The government noted it has incorporated industry feedback and can grant an additional preparation period if needed, extending up to September 30. The reform is part of a broader effort to align industrial electricity pricing with supply conditions and consumer behavior.

For international observers, the change matters because Korea hosts a wide range of energy-intensive industries, including major electronics and semiconductor manufacturing. U.S. firms with supply chains or operations in Korea—such as component makers and contract manufacturers—could see changes in production costs and scheduling decisions that ripple through global markets.

KEPCO and the Ministry of Climate, Energy and Environment described the plan as a targeted time-of-use pricing shift for industrial customers. The move signals Korea’s continuing use of price signals to manage electricity demand and grid reliability, with potential implications for regional energy markets and global supply chains tied to Korean industry.