Price discrimination on essential goods is an inequality seen only in colonies - ②
log date: 2026-5-24
The shares of public sector enterprises cannot be traded on the stock exchange because the shares of listed companies affect the ownership structure. Public sector companies are established with public funds and are operated by the government for the purpose of profit seeking for the public interest.
Since a state-owned organization where the government determines product prices through supply terms and conditions, must engage in management activities that align with the public interest, it is reasonable to legally prohibit them from listing on the stock exchange.
Korea Electric Power Corporation (hereinafter KEPCO) is perceived as a public sector enterprise to such an extent that if you ask South Koreans what kind of company KEPCO is, nine out of ten Koreans will answer that it's a state-owned enterprise. It is true that the government determines KEPCO's electricity rates through the Electricity Supply Terms and Conditions; therefore, viewing KEPCO as a public sector enterprise is not solely the fault of the public's misunderstanding.
Residents living in row houses or multi-family homes are in an unfair situation where they are forced to pay rates more than 30 times higher than their actual usage, despite using significantly less electricity than apartment residents.
The shares of public sector enterprises cannot be traded on the stock exchange because the shares of listed companies affect the ownership structure. Public sector companies are established with public funds and are operated by the government for the purpose of profit seeking for the public interest.
Since a state-owned organization where the government determines product prices through supply terms and conditions, must engage in management activities that align with the public interest, it is reasonable to legally prohibit them from listing on the stock exchange.
Korea Electric Power Corporation (hereinafter KEPCO) is perceived as a public sector enterprise to such an extent that if you ask South Koreans what kind of company KEPCO is, nine out of ten Koreans will answer that it's a state-owned enterprise. It is true that the government determines KEPCO's electricity rates through the Electricity Supply Terms and Conditions; therefore, viewing KEPCO as a public sector enterprise is not solely the fault of the public's misunderstanding.
In addition, the Korean name of KEPCO contain the word "Gong-sa (공사)" giving the impression that it is an organization established to carry out projects undertaken by the state. However, KEPCO's ownership structure exhibits characteristics different from those of public sector enterprises.
In fact, KEPCO was listed on the domestic stock exchange in 1989 and on the New York Stock Exchange in 1994. Furthermore, the Kim Dae-joong administration accelerated privatization by selling off KEPCO's power generation sector to private companies, it is now difficult to view it as a state-owned organization.
Currently, the South Korean government owns only 18.2% of KEPCO's shares, while the Korea Development Bank holds 32.9% and foreigners own 22.26% as of April 10, 2026, meaning that the government is sharing the sovereignty over electricity energy, which should have been 100% owned, with foreigners.
The risks associated with the collapse of KEPCO's governance structure, as seen through its stock ownership, finally began to be known to the world thanks to a lawsuit filed in 2014 regarding progressive electricity rates.
Attorney Sahng-eon Gwak who filed the lawsuit, reportedly initiated an investigation and ended up proceeding with the lawsuit after his own electricity bill was significantly increased in the summer of 2012.
The findings that Gwak discovered after starting the analysis were surprising. The fact that information regarding KEPCO is rarely disclosed and that it is difficult to obtain internal data demonstrates that KEPCO is not a public sector enterprise required to transparently disclose corporate information and voluntarily provide it upon request.
Attorney Gwak reportedly began to make the world aware of the reality that South Koreans were losing their sovereignty over electrical energy. His efforts sparked social interest, which led to a lawsuit regarding KEPCO's progressive electricity pricing system in which more than 20,000 citizens participated.
The lawsuit began in 2014, but due to the thorough disregard of the judiciary and social indifference, the courts neglected the case and dragged out the proceedings during the first and second trials, and it was not until 2023, more than 10 years later, that the Supreme Court dismissed and closed the case.
This KEPCO progressive electricity rate system case, which contained the legitimate demands of over 20,000 participants and seemed to have no reason to lose even to those unfamiliar with the legal knowledge, ultimately ended in defeat, becoming one of the many examples showing how corrupt the South Korean judiciary is.
As mentioned earlier, KEPCO's electricity rates are determined according to the government's electricity supply terms and conditions. The progressive electricity rate system is also effectively a government policy.
The government and KEPCO are imposing this unfair progressive rate system solely on residential electricity users.
"However, the progressive rate of electricity bills actually borne by South Korean households far exceeds the figures announced by KEPCO. This is because the actual progressive rate, which varies according to electricity usage, differs from the nominal progressive rate, which is simply the 'ratio of the highest to the lowest electricity rates.' As electricity usage increase, the rate of increase in electricity rates becomes truly explosive." (source: 곽상언의 시선 p137)
Gwak in his book went on to explain by using an example to help understand the magnitude of the increase in electricity rates subject to KEPCO's progressive residential rate system and the difference between them.
For instance, the usage fee for 55 kWh is approximately 3,600 won. As is the case with electricity pricing systems in all countries around the world, a household using 550 kWh under a non-progressive rate system would pay about 36,000 won, which is ten times the amount. However, since all Korean households are billed under KEPCO's residential progressive rate system, they must pay a bill of 148,615 won, which is 41.6 times the cost of 55 kWh. (source: 곽상언의 시선 p138)
The progressive rate system which caused people to pay electricity bills a staggering 31.6 times higher than other countries where electrical energy is managed by the state, began in 1973. (source: 곽상언의 시선 p135)
Applying a progressive rate system to electricity rates, which are essential goods, is a serious infringement on the sovereignty of the people, but the military dictatorship that initiated the progressive rate system used the excuse of "protection of low-income groups and energy conservation."
The vested interests of South Korea, that have emptied the pockets of the people by deceiving them with pathetic wordplay and trickery, are still extorting unfair profits from the public by putting forward false pretexts such as "energy conservation" and "protection of low-income groups" even now, more than 50 years later.
Since the progressive rate system applies only to residential electricity rates, it causes damages to all households including single-person households, regardless of household type. However, the scale of damage varies depending on the type of housing.
Apartments use high-voltage electricity while ordinary houses use low-voltage, yet the rate system is reportedly designed to impose higher charges on low-voltage users. This effectively embodies the cunning and cruel ulterior motives of the vested interests who have occupied high-ranking public offices and adhere to colonial policies from the Japanese occupation era.
South Korea is known as the only country in the world that implements such an absurd rate system.
The reason why the less fortunate population uses less electricity is that even with minimal usage, the electricity bill is too high relative to their income, forcing them to endure the harsh winter without being able to fully operate their heating facilities.
South Korea's electricity rate policy, which operates on a progressive system that not only charges based on usage but also imposes exorbitant fees on users exceeding a certain amount of usage, is an illegal act that seriously infringe upon the people's right to use electric energy and must be corrected immediately.
Electricity consumption in housing where multiple households live together, such as multi-family home, is inevitably significantly higher than that of ordinary households. However, due to KEPCO's unfair application of a progressive rate system, electricity bills are being charged at excessively high amounts relative to usage and income, and the suffering of the public is increasing due to annual electricity rate hikes.
According to an analysis by lawyer Gwak, low-income households living in row houses pay more than 10 times the electricity bill compared to high-income households living in apartments.
Apartment residents, who pay relatively low electricity rates, can use heating appliances sufficiently to wear summer clothes even in winter; however, those living in row houses or multi-family homes built with Japanese-style single-layer walls popular during the Japanese colonial era shiver in the cold. Despite being equipped with heating facilities, they are unable to turn on their appliances for fear that even slight overuse will result in a massive electricity bill.
KEPCO is emptying the pockets of ordinary citizens every year by applying preposterous rates to residential electricity bills.
However, it is reported that KEPCO's business losses are increasing exponentially year after year because it applies excessively low rates to large corporations, thereby helping them generate massive profits.
When compared in terms of electricity rates, ordinary households pay more than 50% higher electricity bills than large corporations. (source: 곽상언의 시선 p138~9)
In recent years, the amount of electricity used by large companies is increasing significantly due to changes in key industries, and the scope of losses is also increasing accordingly, but the increased losses are effectively being recovered through increases in household electricity rates.
Because the electricity supply terms and conditions, which serve as the basis for the electricity rates imposed by KEPCO, were established by the government, it amounts to the South Korean government effectively emptying the people's pockets to maximize the profits of large corporations.
The victims of KEPCO's progressive electricity pricing system are not limited to the marginalized. Regardless of whether they are single-person households or large families, all citizens have been living while paying excessively high electricity bills.
South Korean government is effectively infringing upon Korea's electricity sovereignty through colonialist policies that fleece the pockets of the people, and KEPCO's duplicitous corporate behaviour is contributing to the accumulation of wealth by the chairmen of large conglomerates.
In November 2025, twelve lawmakers initiated the bill proposing a partial amendment to the Electric Power Business Act (Bill No. 14543), which has been under review by a subcommittee for over half a year. In addition, another amendment to the same act proposed in December, is also under review.
The second amendment with the intent that the Electric Power Commission which previously held only deliberation authority should be granted the power to make decision.
Attorney Gwak who conducted the lawsuit against KEPCO with over 20,000 participants was combining his legislative activities with his work as a member of the 22nd National Assembly by explaining KEPCO's progressive electricity rate system in a simpler and easier way on his YouTube channel.
As Gwak who had to read all materials related to electricity policies and rates while proceeding with the lawsuit stated, the KEPCO issues revealed by Gwak demonstrate that unfair distribution, national interests, and acts of treason - which are cited as the roots of almost all social problems in South Korea today - are deeply interconnected.
The widening gap between the rich and the poor in our society has been further exacerbated by progressive electricity pricing policy.
Even when you analyze the reasons for the surge in unemployment, one can see that it is ultimately linked to KEPCO's illegal electricity supply methods, the unfairly imposed electricity pricing system, and the scale of national losses from industrial electricity rates that increase significantly every year.
The government's neglect of KEPCO's progressive electricity pricing system is an intentional, not accidental or mistake, which increased the suffering of the people.
As inequality in electricity rates is the root of all social problems in South Korea, we urge the public to pay close attention and the Korean government to resolve the issue quickly.
Electric energy is an essential good that is indispensable to everyone's life, and people cannot choose whether to purchase it based on price or conditions. When only monopolistic vendors exist in the sales market for essential goods, progressive pricing systems should not be applied. Furthermore, the market must be managed fairly to ensure that benefits or services are distributed evenly to all members of society.
By the same logic, I agree with the conclusion reached by Attorney Gwak in his book.
Solutions he found while pursuing litigation against KEPCO regarding the progressive pricing system for over a decade:
The people and the government must firmly resolve to implement the following two procedures, (1) delist KEPCO, and (2) transform KEPCO into a 100% state-owned enterprise, not a public sector company in name only.
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| Source: Live [Live Episode 24] streamed on 2026-4-10 Sahng-eon Gwak stated that he received significant help in his research and analysis from retired KEPCO employees who called his office to assist with the lawsuit, noting that publicly available data regarding KEPCO was woefully insufficient and difficult to access. "I extend my gratitude to the Koreans who bravely testified, just like independence movements." |
Those of you who have read this far have likely realized that the Republic of Korea is a nation that has persisted in a severely broken state.
The electricity pricing system that forces people to pay tens of times more than their income and the amount of electricity used must be abolished, thereby returning electricity sovereignty to the people, and correct the unfair policy of supplying electricity at lower prices to large corporations at a loss, thereby eliminating discrimination.
Otherwise, the reality that the lives of the people in South Korea, as seen through the eyes of foreigners like us, do not appear much different from the lives of people being thoroughly ravaged in a colony will not change.
Reference
- Book, [Sahng-eon Gwak's Perspective - A Cry to the world] (곽상언의 시선 - 세상을 향한 외침) p120-191
- Video materials, YouTube channel - 곽상언TV
- Live [Live Episode 24] streamed on 2026-4-10 - ①
- Live [Live Episode 25] streamed on 2026-4-14 - ②
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