Amidst the growing demand for renewable energy and the expansion of AI applications in industries, there is an urgent call to restructure South Korea's electricity market. The current monopoly of the Korea Electric Power Corporation (KEPCO) in power sales is seen as a potential barrier to the country's energy transition and the industrial competitiveness necessary for the AI era. Experts at a recent parliamentary discussion highlighted the need to establish an independent regulatory agency to evaluate market operations and bring about necessary reforms.

Researcher Jung Hoon from the National Assembly's Future Research Institute pointed out that energy security has become critical for industrial competitiveness due to the surge in electricity demand driven by the proliferation of AI data centers and electrification across sectors. He criticized the existing monopoly format of KEPCO, arguing that it limits customized power supply and restricts flexible contracts essential for the adaptation to renewable energy initiatives. Jung emphasized the need for a diversified retail market structure that can respond to the changing industrial environment and reflect the specific demands of different sectors.

The current retail electricity market in South Korea operates under a monopoly where KEPCO is the sole seller, which has raised concerns about its sustainability. Issues highlighted by the expert focus group indicate that political interference in KEPCO's sales model distorts electricity pricing and undermines the reflection of actual costs and supply conditions. Consequently, this has led to worsening financial conditions for KEPCO, threatened supply security, and weakened industrial competitiveness, creating a negative feedback loop that must be addressed for future stability and growth in the energy sector.