Gas prices to increase by 6.8% from next month... 3,770 won/month for a four-person household in Seoul (South Korea)

Korea Gas Corporation announced on the 5th that it will raise the wholesale price of city gas for residential use by 1.41 won (about 0.16 yen) per MJ (megajoule) starting from the 1st of next month. The general wholesale price will be 1.
The city gas rate will be increased by 30 won (about 0.15 yen) per MJ. With this adjustment in city gas rates, the monthly gas bill (for residential use) for a four-person household in Seoul will be about 3,770 won (about 440 yen).
A KNG official said, "The wholesale rate for civilian use (residential and general use) was frozen until now after the hike in May last year (1.04 won/MJ, 5.3%), but the cost price has increased.
"The level was decided to minimize the increase while taking into consideration the burden on the public and to improve the financial condition of the gas corporation, which has deteriorated due to the continuation of the following supply," the company said.
Since the outbreak of Russia's invasion of Ukraine, the gas company's unpaid city gas bill for civilian use will reach 1.2 billion yen by the end of 2021.
It is expected to soar from 1.8 trillion won (US$209.5 billion) to 8.6 trillion won (US$1 trillion) by the end of 2022, 13 trillion won (US$1.5 trillion) in 2023 and 13 trillion won in the first quarter of this year.
The debt has been steadily increasing to the present day, reaching 5 trillion won (US$1.5 trillion). A KOGAS official said, "Our current debt ratio is over 600%, and interest on unpaid debts is 500 billion won per year.
"The price hike, which has exceeded 50 billion won (US$582 billion), was an unavoidable decision to ensure the stable introduction of natural gas," the company said.
Meanwhile, the Gas Corporation is also accumulating recipients of the "Thermal Efficiency Improvement Project" which is being implemented for social welfare facilities and low-income households.
The plan is to rapidly excavate new buildings and expand the number by 10 times to 2,350 between next year and 2027. The project aims to improve energy efficiency by replacing boilers, insulation and windows in aging buildings.
Since 2010, the Gas Corporation has provided support to a total of 2,835 residential areas, including 1,298 low-income households and 1,537 social welfare facilities across the country.