S.Korea indefinitely delays power cost hikes

SEOUL, Oct 9 (Reuters) - South Korea has put an indefinite hold on its plan to lift power costs in the latter half of the year, Seoul's energy ministry said on Thursday, a decision prompted by inflation pressure and falling oil prices.

South Korea, heavily dependent on foreign energy reserves, was planning to raise electricity and gas prices by 5-8 percent as fuel costs increasingly became a burden for state-run energy companies -- Korea Electric Power Corp (KEPCO) (015760.KS) and Korea Gas Corp (KOGAS) (036460.KS).

South Korea has kept the rates unchanged since January 2007 to curb inflation.

"We will adjust costs after assessing the current economic situation and oil prices," the ministry said in a statement.

Oil prices hit a 10-month low of $86.05 a barrel in October, falling from close to $150 a barrel in July.

Shares in KEPCO ended 2.44 percent lower at 27,950 won, while KOGAS was down 10.27 percent at 55,900 won, both underperforming the wider market's 0.64 percent gain. (Reporting by Angela Moon; Editing by Keiron Henderson)