'Freezing Water Rates for 2 Years' Declaration: A Joint Responsibility of the Government and Public Corporations with the People

Korea Water Resources Corporation (K-water) has decided to freeze 'water rates' for the next 2 years. This decision was made to minimize the burden on citizens and support the government's efforts for price stability through cost-saving measures and innovations instead of raising fees. It is expected to restrain local government water rate increases and have a positive impact.

 

Korea Water Resources Corporation's decision is receiving significant public support and is expected to contribute to the stability of people's livelihoods and the enhancement of the national economy.

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Korea Water Resources Corporation announced that they held a declaration ceremony for freezing water rates for the stability of the people's livelihood and the economy at their headquarters in Daejeon on the 6th. This decision is part of the Chuseok price stability plan announced last month, and notably, it is the first time in about seven years since September 2016 that the corporation has frozen water rates.

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For the next 2 years, K-water plans to innovate in water supply operations and increase productivity to freeze the rates. To achieve this, they aim to expand the annual water supply revenue by approximately KRW 262 billion through timely responses to water demand in newly developed areas.

 

Moreover, they plan to build a smart infrastructure by implementing digital innovation technologies such as artificial intelligence (AI) and save approximately KRW 165 billion annually in production costs, including facility operating power fees and pharmaceutical expenses.

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Currently, the wide-area urban water supply rate provided by the corporation is set at KRW 432.8 per cubic meter. This urban water supply is distributed to local governments and businesses, which then supply tap water to citizens.

 

As of 2021, the wide-area urban water supply rate accounts for approximately 22% of the cost of supplying tap water (local urban water) to citizens, according to the corporation.

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A corporation official stated, "According to the national urban water supply system, we expect that this rate freeze declaration will positively contribute to alleviating the factors for local government water rate increases."

 

A corporate executive who participated in the declaration ceremony on this day said, "Even in difficult economic circumstances, the freezing of water rates will help improve business conditions," and added, "I hope that public institutions will provide more support to help domestic companies maintain and secure competitiveness."

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Regarding the rate freeze, K-water has established a Task Force (TF) composed of employees, led by President Yoon Seok-dae. The TF has examined domestic economic conditions, internal investment plans, and ways to reduce production costs based on innovation.

 

Yoon Seok-dae, the President of K-water, emphasized, "As a public corporation for the people, we actively participate in the government's price stability policy and unite all employees to contribute to revitalizing the national economy," and said, "Recently, with the expected annual increase of about KRW 37 billion in tap water production costs due to rising production costs, we have secured the capacity for rate freeze through efforts for innovation, including digital transformation."

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Noh Cheol-min, the Chairman of the K-water labor union, said, "The social role of public institutions is crucial for the swift recovery of the people's livelihood economy," and added, "All employees will make active efforts with one mind and one heart."

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Korea Water Resources Corporation's decision is receiving significant public support and is expected to contribute to the stability of people's livelihoods and the enhancement of the national economy.