“Integration of Korea Gas Corporation and Korea National Oil Corporation, government notified unilaterally,” the National Assembly inspection pointed out.

People Power Party Rep. Park Seong-min "There was no prior discussion of integration or verification of effectiveness."

Heads of organizations subject to integration: “I never heard about it in advance” and “I spoke to a high-ranking official on the day of the announcement”

(Daegu = Yonhap News) Reporter Park Se-jin = An argument was raised in the government audit that the government-announced merger of Korea Gas Corporation and Korea National Oil Corporation was unilaterally notified and promoted without sufficient discussion or verification of effectiveness.

People Power Party lawmaker Park Seong-min (Ulsan Jung-gu) criticized the National Assembly's Trade, Energy, Small and Medium Venture Business Committee's audit of the Korea Gas Corporation and Korea National Oil Corporation on the 19th regarding the plan to integrate the two organizations, saying, "The government unilaterally notified them without prior discussion, consultation, or coordination."

He continued, “There was discussion about integration during the Moon Jae-in administration in 2021, but it was decided to first improve finances and normalize functions and review them in the mid- to long-term,” he said. “Since then, the problem of financial insolvency has actually grown bigger.”

At the same time, he said, “The Korea National Oil Corporation is in a state of capital erosion, and the Korea Gas Corporation also has a debt ratio of close to four times its equity capital.” He asked, “Have you ever been contacted to consider prior consultation or adjustment before the merger announcement?”

Regarding this, Hong Eui-rak, CEO of Korea Gas Corporation, responded, “I have not heard (the integration plan in advance),” and “I have not heard how it was announced or what the thoughts were.”

Son Joo-seok, president of Korea National Oil Corporation, said, "I spoke on the phone with a high-ranking official on the morning of September 3 (the date of the announcement of the integration)," and "I spoke with Yang Ki-wook (Ministry of Trade, Industry and Energy Security) Director."

Rep. Park continued by saying, “The Korea National Oil Corporation is an unlisted company and the Korea Gas Corporation is a listed company, so there are 100,000 minority shareholders.” He added, “They are talking about repaying the debts of the Korea Oil Corporation and Korea Gas Corporation with the people’s taxes, but what about the property rights of shareholders?”

He also said, “There is no specific service or data that suggests the integration will have any effect,” and “It would be irresponsible of the two bosses if the government unilaterally notified them and followed it.”

Regarding this, CEO Hong said, “Our position is that the value of existing shareholders should not be damaged,” and “Since the government announced it, we believe there will be such a review by the government, so we are waiting for a consultation table.”

President Son continued, “It seems that the government is trying to integrate to improve global competitiveness and national energy security,” and added, “We will thoroughly review what role it will play in the future roadmap.”

After the inquiry, Kim Seong-won, chairman of the Ministry of Trade, Industry and Energy's Small and Medium Venture Business Committee, asked, "Aren't we at the stage where we can clearly state whether we are in favor or against it?" and the two presidents answered "yes" and "yes" respectively.

Meanwhile, union members of the Korean Gas Corporation branch of the Korean Confederation of Trade Unions and the Public Transport Workers' Union voiced their voices in front of the Korea Gas headquarters in Daegu, where the government inspection was held that day, saying, "We oppose unilateral and hasty integration."