South Korea is likely to raise utility fees after the Chuseok holiday later this month.

The Ministry of Trade, Industry and Energy and the country's state-run power company Korea Electric Power Corporation (KEPCO) plan to decide on whether to raise electricity fees around September 23, which falls after the holiday.

Early this year, the government began to enforce a power rate system linked to the fluctuations of fuel prices, but froze the electricity rate in the second and third quarter despite hikes in international oil prices.

However, the government is reportedly leaning toward raising the rate in the fourth quarter in light of rising fuel prices and KEPCO's growing deficit.

The government is also likely to increase retail natural gas prices in the fourth quarter to reflect higher costs of natural gas.