President of Korea Electric Power Corp. (KEPCO) Kim Dong-cheol speaks during a press conference at Government Complex Sejong, Aug. 28. Yonhap

The chief of the state-run Korea Electric Power Corp. (KEPCO) on Monday emphasized the importance of raising electricity bills to maintain investment in essential infrastructure and ensure the sustainability of the sector's ecosystem.

"We need to bolster the power grid on time to support the innovative growth of the country's key industries, including artificial intelligence and semiconductors," said Kim Dong-cheol, president of KEPCO, during a parliamentary audit in Naju, some 280 kilometers south of Seoul.

"We will seek to normalize the electricity rates to secure the funds needed to invest in essential power grids and maintain the sustainability of the electricity ecosystem," Kim added.

His remarks came as KEPCO posted a combined loss of 43 trillion won ($31.7 billion) from 2021 to 2023, as the company had not been able to raise electricity bills enough to cover high fuel costs amid the COVID-19 pandemic and rising inflation.

The company's debt also totaled 202.9 trillion won as of June, up 440 billion won from the end of 2023.

"We need to reasonably reflect production costs in the bills to promote the growth of innovative companies in the energy industry," Kim said.

The KEPCO president also mentioned that the company will continue to carry out self-rescue measures, which aim to save 20.9 trillion won from 2022 to 2026.

In August, Industry Minister Ahn Duk-geun noted the government would increase electricity prices after the summer ends. (Yonhap)