Penalties Down, Insurance Up

The government said Thursday that it would reduce overdue charges on water bills from 5 percent of the unpaid amount to 3 percent by the end of this year.

"We have heard complaints that the default interest rate on water bills is too high, compared with the 2 percent for telephone bills and 1.5 percent for power bills," an official at the Ministry of Finance and Economy said. "We plan to lower the rate after consulting with local governments." Pusan, Taejon, Kwangju and South Chungchong province have already agreed to cut the rate.

The government also said that it plans to increase the compensation paid to postal customers for lost items, as a move to lift consumer protection at public companies to the level of the private sector. The compensation ceiling for an uninsured parcel will increase to 400,000 won ($304) from 300,000 won.