KEPCO Reports 2.8% Drop in Industrial Power Sales for September

The Korea Electric Power Corp. (KEPCO) announced on November 25 that industrial power sales in September fell by 2.8% year-on-year to 23,728GWh. Cumulative sales from January to September also saw a decline of 1.6% compared to the same period last year. If this trend continues, KEPCO's annual industrial power sales are expected to decline for two consecutive years, following a 1.9% decrease in 2022.

The decline in industrial power sales is largely attributed to the sluggish performance of some manufacturing sectors, particularly those related to construction. In September, the power sold to manufacturing companies by KEPCO decreased by 3.1% year-on-year to 21,248GWh. A KEPCO official explained, "The decline in sales was significantly influenced by the sluggish construction sector, which reduced sales in the steel and cement industries." This statement is supported by data from the Bank of Korea, which shows that construction investment in the third quarter decreased by 2.8% compared to the previous quarter.

The impact of the sluggish construction industry is also evident in steel production. According to the Korea Iron & Steel Association, rebar production from January to September this year was 5.912 million tons, a 19% decrease compared to the same period last year. September's production alone decreased by 17.7% year-on-year, continuing a downward trend for eight consecutive months since February.

Other indicators that gauge private consumption are also not favorable. According to Statistics Korea and Shinhan Financial Group, credit card usage from November 2 to 8 decreased by 9% year-on-year. The amount charged through electronic payment services like Naver and Kakao Pay also decreased by 7.7% during the same period.

In the face of uncertain economic conditions, economic sentiment is showing mixed signals. Last month, the Bank of Korea's Economic Sentiment Index (ESI) fell by 1.2 points from the previous month to 92.5. On the other hand, last month's News Sentiment Index rose by 1.77 points from the previous month to 100.61, rebounding for the first time in three months.