The government is facing difficulties ahead of the closure of the Korea Coal Corporation's last coal mine. It must promote energy conversion to reduce coal briquette consumption for greenhouse gas reduction, but many households that use coal briquettes are hesitant to make the switch due to concerns about losing government support.
According to the government on the 26th, coal production in the institutional sector will completely end by the end of this month when the Korea Coal Corporation's Samcheok Dogye Mining Site closes.
The government's coal stockpile currently stands at 970,000 tons, while the Korea Coal Corporation's stockpile is 1.33 million tons. Considering last year's coal briquette consumption of 340,000 tons, this is expected to be depleted within about 7 to 8 years. There is one remaining privately-owned coal mine operated by Kyungdong Group, but predictions suggest it will close soon due to declining revenue, an aging workforce, and environmental issues.
The Ministry of Trade, Industry and Energy plans to reduce the number of coal briquette users and encourage energy conversion to gas or electricity. Coal briquettes are unsuitable as a sustainable energy source due to their high greenhouse gas emissions and the inconveniences of usage, storage, and disposal.
The government also sees energy conversion as urgent for climate response and welfare, noting that most coal briquette users belong to vulnerable groups particularly susceptible to extreme heat and cold. However, there are concerns that switching to electricity or gas could lead to exclusion from government support or increased personal costs, resulting in many households sticking with coal briquettes.
Currently, energy bill support is divided into 'coal briquette coupons' and 'energy vouchers.' The coal briquette coupon system has been in place since 2008, providing an annual payment of 546,000 won per household to beneficiaries such as basic livelihood recipients, the near poor, seniors over 65 years old, disabled individuals, and single-parent families. In the previous year, 41,562 households received support through this program.
The energy voucher system supports the purchase of various fuels including electricity, city gas, kerosene, liquefied petroleum gas (LPG), and coal briquettes. It is limited to households of basic livelihood recipients that include elderly people, infants, disabled individuals, pregnant women, and those with serious illnesses, making the recipient base smaller compared to the coal briquette coupon.
Especially, while the coal briquette coupon provides a fixed amount per household, the energy voucher amount varies based on the number of household members. For households with three members or fewer, the energy voucher support amount (290,000 to 530,000 won) is often less than that of the coal briquette coupon.
The Ministry of Trade, Industry and Energy has reported that integrating the coal briquette coupon with the energy voucher is currently difficult and is under review as a mid- to long-term task. A ministry official noted, "There are households that are eligible for the coal briquette coupon but not for the energy voucher, and in transitioning, support might decrease, leading to increased personal costs. It is challenging to integrate this uniformly in a short period."
The government plans to identify gaps in the energy voucher system and will swiftly improve any parts that can be enhanced. Starting this year, the government has eliminated the distinction between winter and other use periods for vouchers, allowing them to be used anytime desired. The ministry is also reviewing plans to expand energy voucher support to include the near poor.
A ministry official stated, "Many other welfare systems often include the near poor, but this is not the case for the energy voucher. We intend to review expanding support to include the near poor."