1. the evolution of anthracite and briquettes as symbols of South Korea's energy history
in the history of South Korea's economic development, briquettes were more than just fuel. in the 1960s and '70s, a strong push for reforestation policies put an end to the practice of cutting down mountains for firewood, prompting the government to switch household fuels from wood to coal in order to stop indiscriminate deforestation - a crucial step in South Korea's transformation into a green nation.
by the mid-1980s, briquettes were the most common form of heating in both urban and rural areas. 88 Around the time of the Seoul Olympics, South Korea began preparing to make the leap from a middle-income to a developed country, and in the process, stricter environmental regulations and rising national income brought about a major shift in the structure of energy consumption. The coal industry rationalization policy emerged around this time: the government began to clean up unprofitable coal mines and expand the distribution of oil and city gas.
today, briquettes are a shadow of their former glory and are the so-called fuel of poverty, guarding the lowest rungs of our society. stigmatized as a major contributor to carbon emissions in an era of climate crisis and on the verge of being phased out, it is still an irreplaceable tool of survival for tens of thousands of households. rising briquette prices are more than just a cost of living issue, they are a poignant indicator of how our society is passing on the costs of the energy transition.
2. analyzing the structural drivers of rising briquette prices The double whammy of factory price and delivery costs
to understand the rise in briquette prices, it's important to look at the complex price formation structure of briquettes, which is split into two main components: the government-controlled factory price and the distribution costs determined by market logic.
2.1 Current status of factory price and sales commission
the Ministry of Trade, Industry and Energy sets the factory price of briquettes to reduce the burden of heating costs for the masses. as of 2024, the factory price of briquettes is frozen at 639 won per piece. this, plus the sales commission of the distributor, forms the basic wholesale price. however, this price is only the price at the factory gate and is far from what consumers actually pay.
2.2 Labor and logistics costs drive up delivery costs
the real culprit behind the high consumer price of briquettes is delivery. a single briquette weighs about 3.6 kilograms and its fragile nature makes it very difficult to mechanize delivery. as the minimum wage has risen steeply in recent years, it has become difficult to find laborers to deliver briquettes, which has led to skyrocketing delivery costs. Especially in high-altitude areas that are difficult for trucks to reach, such as side villages and dal-dong neighborhoods, briquettes have to be delivered by hand, which can cost well over KRW 1,000 per piece, reaching KRW 1,500 or even KRW 1,700 per piece.
the following data shows the components of briquette prices and the price disparity by region.
item price composition and determinants remarks factory price kRW 639 per piece (based on a 2024 freeze) government-notified price average consumer price 900 ~ 1,100 won per sheet based on metropolitan areas and flatlands highland consumer price 1,200 ~ 1,700 won per piece surcharges based on delivery difficulty price increase factors rising labor costs, rising oil prices, shortage of delivery personnel weak distribution structure3. government's energy transition policy and roadmap to reduce briquette subsidies
in line with the global trend to respond to the climate crisis, South Korea is pursuing a coal phase-out policy. in this process, subsidies for briquette production will be phased out.
3.1 The 2025 National Finance Saving Summit and the decision to abolish subsidies
at the National Finance Saving Summit held in August 2025, it was confirmed that subsidies for briquette production will be completely abolished in order to respond to climate change and accelerate the energy transition. while this reflects the government's strong commitment to achieving carbon neutrality, it came as a slap in the face to vulnerable groups who rely on briquettes.
3.2 Phase-out plan and price forecast to 2027
the government has decided to phase down the subsidy over two years, from 2026 to 2027, to cushion the shock of a sharp price increase. specifically, it will reduce the subsidy by 100 won per briquette each year, totaling 200 won. if this plan is implemented, the wholesale price of briquettes is expected to increase by around 15 percent or more next year alone, with the average price for consumers sure to exceed 1,200 won by 2027.
year subsidy Reduction estimated Average Consumer Price key Policy Event 2024 0 won (frozen) 900 won to 1,000 won price remains frozen 2025 transition period preparation entering the 1,000 won range finalize subsidy removal 2026 100 won reduction 1,100 won to 1,150 won expected 15% increase in wholesale price 2027 100 won reduction more than 1,200 won steps to complete subsidy abolition4. the End of Domestic Coal Mines Samcheok colliery closes and raw material supply crisis
the domestic production base of anthracite coal, the raw material for briquettes, is also crumbling. this threatens the sustainability of the supply itself, beyond the rising price of briquettes.
4.1 Total closure of state-owned coal mines from Hwasun to Do-gye
from more than 300 domestic coal mines in the 1980s, there are now only a handful left. In 2023, the Hwasun mine in Jeollanam-do closed, followed by the Jangseong mine, the country's largest coal mine, in June 2024.And on July 1, 2024, the last state-owned coal mine, the Samcheok Dogye mine, closed, bringing the era of state-owned coal production in South Korea to a complete end.
4.2 Gyeongdong Sangdeok Mine, the only private coal mine, and the limits of reserves
currently, there is only one privately owned coal mine operating in South Korea, the Gyeongdong Sangdeok Mine in Samcheok. the government is planning to close even this last mine by 2030. Currently, the government's stockpile of anthracite coal is about 2.2 million tons, which is enough to last about seven years given the country's annual consumption of 300,000 tons. however, depleting the stockpile in the absence of production facilities leaves the country without the ability to respond in the event of an emergency.
5. briquette plant closures and regional supply imbalances
the number of plants producing briquettes is also shrinking rapidly. factory closures increase transportation distances, driving up prices.
5.1 Production base plummets from 400 to 26
from nearly 400 briquette factories nationwide in the 1960s, only 26 remain today: six in Gyeongbuk, three each in Chungcheongbuk-do and Gangwon, and one each in Daejeon, Jeonju, Budae, and Dongducheon. some regions in Jeollanam-do and Gyeongsangnam-do have no factories nearby, leaving them in a supply imbalance where they have to import briquettes from other provinces.
5.2 Why briquette factories are closing
the causes of briquette factory closures are complex. deteriorating profitability due to declining demand is the biggest, but labor costs due to rising minimum wages and the cost of replacing aging facilities are also a factor. Most importantly, plants located near urban centers are no longer viable due to environmental regulations and dust complaints. every time a plant closes, the price of briquettes in the region increases by the cost of transportation
6. fewer households using briquettes and the demographics of the energy poor
rising briquette prices are a social tragedy because the people who use them are some of the most vulnerable in our society.
6.1 The number of briquette households and drivers of the decline
in 2024, there were 59,695 households using briquettes across the country, a decrease of about 19 percent from 74,167 in 2023. the decline in the number of households is due to involuntary factors, such as deaths and entering care facilities as users age, and demolitions due to urban renewal, rather than improvements in heating conditions.
6.2 Lives of the energy poor An elderly man in his 80s living alone and earning 300,000 won per month
about 86 percent of briquette-using households are from marginalized groups, such as basic welfare recipients and second-class citizens. Their average age is in their 80s and their average monthly income is around 300,000 won. even if the government were to replace them with oil boilers, they would still be unable to afford the hundreds of thousands of won a month in oil bills, so they're back to using briquettes. briquettes are their cheapest last resort.
here is the regional distribution of briquette-using households.
region number of households characteristics gyeongsangbuk-do 19,975 households most in the country, concentrated in rural and mountainous areas gangwon-do 15,841 households area behind coal mining villages, high aging rate chungcheongbuk-do 5,934 households major usage in the Central Region seoul 1,129 households centers in side villages such as Sanggye-dong, Nowon-gu, Gapo-dong, Gangnam-gu, etc nationwide total 59,695 households approximately 19.5% decrease from 20237. policy Recommendations and Future Prospects to Protect Energy Blind Spots
the government has announced that it will raise the unit price of briquette coupon support as an alternative to the subsidy abolition. plans have been made to raise it from 47.2 thousand won per household in 2025 to 55.1 thousand won in 2026 , but this is not enough.
7.1 Parallel home energy efficiency projects
beyond simply supporting fuel costs, we need to fundamentally create a warmer environment that uses less energy. Increasing energy efficiency by fully supporting insulation and window replacement projects in shanty towns and unauthorized housing is the way to reduce the impact of the subsidy abolition.
7.2 Practical support for alternative energy switching
encouraging people to switch to oil or gas boilers should be supported by long-term voucher schemes for fuel costs, not just equipment replacement costs. There should also be practical alternatives for vulnerable households, such as extending feed-in tariffs for electric heating.
8. frequently asked questions
question 1 Will the price of briquettes really go up next year?
answer 1 Yes, they will. with the government's decision to phase out briquette production subsidies by 100 won per piece starting in 2026, wholesale prices will increase by about 15 percent. by 2027, the consumer price is expected to exceed 1,200 won.
question 2 How much will the briquette coupon support increase?
answer 2 The government plans to increase the unit price of briquette coupons to ease the burden of the subsidy reduction. from the current level of 47.2 thousand won, it will be raised to 55.1 thousand won per household by 2026.
question 3 Are there any coal mines left in Korea?
answer 3 With the closure of the state-owned Dogye Coal Mine on July 1, 2024, all state-owned coal mines have disappeared. Currently, only one private coal mine, Gyeongdong Sangdeok Mine, remains in operation.
question 4 What happens when a briquette plant closes?
answer 4 When there are no production facilities nearby, logistics costs rise as briquettes have to be transported from other areas. this in turn leads to higher prices for consumers and longer delivery times, which can lead to supply and demand instability.
question 5 Can I receive an energy voucher and a briquette coupon at the same time?
answer 5 In principle, it is not possible to combine the Energy Voucher with other energy vouchers. however, this may be possible in exceptional circumstances, for example if you have only applied for a summer voucher, so you should check with your local council center.
9. conclusion and call to action
rising briquette prices and supply chain crises may be an unavoidable pain in the ass as South Korea becomes a more developed country. but it's the elderly and low-income people who have to bear the brunt of the pain, who face some of the toughest winters in our society. we shouldn't turn a blind eye to their chilled fingers behind the lofty goal of carbon neutrality.
governments shouldn't just focus on the bureaucratic process of removing subsidies, they should be visiting households in the energy blind spot and providing practical heating solutions. it's also time for us as a society to renew our interest in briquette donations and volunteering. we need to create a warmer, tighter safety net for these people before the 1,200 won briquette era of 2027 arrives.
start caring about the marginalized around you today. your small act of concern and donation could be the only warmth someone has. we hope you'll join us as we lighten the shadows of the energy transition.
key takeaways Briquette subsidy cuts will lead to prices exceeding 1,200 won in 2027, and there is an urgent need to expand energy welfare to protect the vulnerable.
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