Finance minister Choo Kyung-ho says that sharp hikes in electricity and gas rates next year are inevitable.

Appearing on SBS News on Wednesday, the minister said energy prices have surged drastically and there is a need to improve the financial structure of the Korea Electric Power Corporation and the Korea Gas Corporation as they are both suffering from significant deficits.

Choo said he will unveil the details of the price hikes around next week following consultations with relevant agencies.

Also on Wednesday, the minister said the government will ease punitive regulations on multiple-home owners to levels seen at least five years ago.

He said property prices in Seoul are declining at a substantial pace, adding that such a factor could weigh heavily on the economy, the finance sector and households.

Choo said the government cannot help but be concerned about the negative impact a hard landing in the real estate market could have on the economy, and the government will address such concerns by actively easing past regulations that sought to suppress speculation.