The government will partially privatize the power and gas grid now monopolized by state-run KEPCO and Korea Gas Corporation.

The aim is to end the decades-long monopoly of the state-run companies over the utilities and make the bloated businesses more efficient. The measure was announced in a workshop chaired by President Park Geun-hye for CEOs of state-run companies.

Korea, Mexico and Israel are the only countries in the OECD that have not at least partially privatized their utilities.

Private businesses must sell any electricity they produce from solar panels and windmills to KEPCO, which sells them to consumers. But the government wants to end KEPCO's monopoly as early as the second half of this year so private firms can sell power directly to consumers.

Critics fear that electricity prices may rise as they have in many Western countries that privatized their utilities, while there are moves afoot in some countries to take the grid back into public hands.

But Chae Hee-bong at the Ministry of Trade, Industry and Energy said, "Electricity fees for household use still stand at only 60 percent of charges in other OECD member nations. The latest reforms are at reducing costs and allowing new energy businesses to enter the market quickly."

Korea Gas Corporation controls 94 percent of the natural gas import business in the nation. POSCO, GS Energy, SK E&S and Korea Midland Power are allowed to import natural gas for their own use but are barred from reselling it.

The gas market is to be opened to private businesses by 2025.