South Korea lifts coal cap and raises nuclear output
South Korea will lift coal caps and raise nuclear output to 80 percent. The move aims to stabilize supply as the Middle East crisis disrupts fuel shipments.
The ruling Democratic Party of South Korea announced on Monday that the government will lift existing limits on coal-fired power generation capacity and increase nuclear power plant utilization to as high as 80%. This policy shift is part of a strategic energy response to the escalating crisis in the Middle East involving Iran.
Lawmakers within the party's economic response task force stated during a briefing that these measures are aimed at stabilizing the national energy supply and managing price volatility. The decision follows significant disruptions to oil and gas shipments as tensions in the Strait of Hormuz continue to impact trade routes to South Korea. In coordination with the government, the task force has agreed to draft a supplementary budget by the end of this month for submission to parliament.
The proposed extra budget will address several key economic areas:
- Compensation for domestic refiners for losses associated with fuel price caps.
- Funding for energy voucher payments to assist households with rising costs.
- Logistics cost support for exporters facing shipping challenges.
- Expanded investment in renewable energy to bolster long-term energy independence.
