SELF-EMPLOYED BURDENED BY ENERGY COSTS

[Anchor Lead]

It's none other than the self-employed that's burdened the most by surging prices. Not only are they suffering from high energy bills, but prices of raw materials have also surged, prompting them to urge the government to expand support and include them in the socially vulnerable category.

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A singing room in the heart of Seoul. Regardless of whether there are customers or not, the machines must be kept on as well as heating, and so saving electricity costs is not feasible. The owner thought things would turn around after the pandemic, but soaring energy bills is a new concern these days.

[Soundbite] Kim Ik-hwan(Singing room owner) : "I endured through the COVID-19 pandemic and hoped for brighter days. I worry we may lose customers if the price is raised to 1,000 won per song."

This hotel owner is also distressed after receiving the latest heating bill. Power usage went down from a year ago but the monthly charge increased by some 900-thousand won. She can't afford to raise the accommodation rate right away.

[Soundbite] Gwon Hyeon-suk(Hotel owner) : "I can’t unilaterally raise the hotel fee because gas rates have gone up. We need to compete with rival businesses so I just endure the cost."

Small-scale business owners have had enough and are now demanding government support.

[Soundbite] "Energy bills are terrifying!"

According to expenditure lists disclosed by small businesses, establishments that particularly use a large amount of electricity such as Internet cafes, singing rooms and beauty salons saw their monthly energy bills rise by an average 30%.

[Soundbite] Yoo Deok-hyeon(Restaurant owner) : "If we inevitably raise our prices, can the business stay afloat? We are in a desperate situation."

Small business owners are asking the government to recognize them as the energy vulnerable class, noting that the installment payment scheme alone is not enough to ease their burden.

[Soundbite] Oh Se-hee(Chair, Korea Federation of Micro Enterprise) : "Heating bills are on a disastrous level. We need a social insurance policy to shoulder the cost."

In a recent survey on small business owners, 80% of respondents said they were extremely burdened by heating costs, while 35% said there is no workable solution to deal with the issue.