Korea Power Exchange splits wholesale rates to curb Seoul factory load
The market-rule revision decouples wholesale rates between Seoul and provincial hubs, penalizing factories in regions generating under 15% of their power.
SJBy So-yeon Jung, Korea correspondent, energy and grid··Updated November 12, 2026·4 min read
ShareLinkedInXWhatsAppEmailA technician inspects high-voltage transmission lines from a utility tower overlooking a power plant. (AI-generated image)
The Korea Power Exchange submitted emergency market-rule revisions on Nov. 12, 2026, to establish locational marginal pricing, decoupling wholesale electricity rates between Seoul and provincial power hubs.
Locational marginal pricing — a wholesale pricing mechanism that sets electricity rates based on local transmission congestion — penalizes power generation situated far from primary consumption centers, the exchange said.
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Korea correspondent, energy and grid — So-yeon Jung covers industrial power supply, transmission investment and the fuel procurement decisions that set Korean manufacturing costs.
