Public firms seek to raise public service charges to reduce debts

State-run enterprises plan to raise public service charges, such as highway fares, power rates and tap water rates, over the next five years in a bid to reduce their debts, the government said.

Those companies are among 41 public firms which have mapped out measures on their own to lower debts, according to the 2013-2017 Financial Management Plan for Public Firms submitted to the National Assembly by the Ministry of Strategy and Finance.

Korea Expressway Corp. seeks to scale down its expressway fares exemption program for compact cars and commuters, the plan said.

Korea Electric Power Corp. (KEPCO) plans to reflect production costs in electricity rates as much as possible on a gradual basis, it said. Work to revamp the electricity rate system is underway by the authorities, sources said.

Korea Water Resources Corp. wants to raise service fees to see to it that the amount of tap water rates accounts for 2.5 percent of the country's gross domestic product (GDP), the plan said.

AJP