Electricity and gas rates are set to rise by five-point-three percent from Tuesday.

The announcement from energy minister Lee Chang-yang came on Monday following an agreement between the government and the ruling People Power Party.

With the electricity rate climbing by eight won per kilowatt-hour and gas fares by one-point-04 won per megajoule, a four-person household is forecast to pay a combined seven-thousand-400 won, or around five dollars and 50 cents, more per month for both utilities.

The government has already raised the electricity rate by 13-point-one won per kilowatt-hour in the first quarter with the cumulative deficit of the state-run Korea Electricity Power Corporation(KEPCO) since 2021 reaching 45 trillion won.

Gas fares, which were frozen following the heating price crisis this past winter, will be raised after the state-run Korea Gas Corporation's(KOGAS) outstanding fees totaled eleven-point-six trillion won as of the end of the first quarter.

The government also announced measures aimed at easing the burden imposed by the hikes on vulnerable groups ahead of the summer season, such as a one-year deferment of the rate hike and an expansion on energy voucher eligibility.