The chief of the state-run Korea Electric Power Corporation(KEPCO) on Wednesday called for a revamp of energy innovation companies and increasing investment in the power grid, which would inevitably necessitate a hike in electricity bills.

Kim Dong-cheol made the remarks at a forum held at KEPCO's regional headquarters in Seoul, saying more investments are needed to strengthen South Korea's competitiveness and stabilize the national economy.

Kim stressed the need to swiftly expand the national grid to promote carbon neutrality, ensure stable power supply and contribute to the nation's future growth.

He pointed out that advanced industries such as semiconductors, biotechnology and artificial intelligence(AI) all exist on the foundation of the power industry.

Kim further explained that due to the expansion of the AI industry and rapid electrification, necessary investment in the power grid is expected to exceed 56-point-five trillion won, or 40-point-eight billion U.S. dollars, stressing the need to raise electricity rates to help cover the costs.