LNG Prices Surge Nearly 70%... Heating Season Set to Weigh Heavily on Small Business Owners

Rising natural gas prices and the burden on small business owners

Natural gas (LNG) prices have jumped nearly 70% since the beginning of the year due to the fallout from the Middle East war, increasing the cost burden on small business owners ahead of the heating season. South Korea relies entirely on imports for its natural gas, and prices have surged as LNG supply facilities suffered damage in the Middle East conflict. Supplies have also dwindled as European countries moved to secure inventories ahead of winter. Import prices, which stood at around $500 per ton in February, surpassed $850 in just seven months.

Even with rates frozen, the burden on small business owners' shops continues to grow. A sundae gukbap restaurant, which keeps its lights on for long business hours, has always faced heavy gas bills—and with the weather turning colder, it must now run heaters as well. Lee Seo-young, who runs the sundae gukbap restaurant, said, "If prices go up, it becomes a burden, so I'm worried."

Ahead of the full-fledged heating season, the government has unveiled energy support measures for vulnerable households. It froze city gas rates and will provide energy vouchers averaging 367,000 won per year to 1.44 million vulnerable households—40,000 more than last year—while offering an additional 147,000 won to 220,000 households that mainly use kerosene and LPG. Lee Seung-jun, head of the Climate Adaptation Division at the Ministry of Climate, Energy and Environment, said, "We will focus on closing gaps in energy welfare so that no household misses out on support benefits."