Gwangju City Council Members "Will Actively Respond to Macquarie's Acquisition of Marine Energy"

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Members of the Gwangju Metropolitan Council have announced that they will actively respond in cooperation with Gwangju Metropolitan City and civic groups regarding Macquarie's acquisition of Haeyang Energy.

On the 16th, the Gwangju City Council expressed serious concerns in a statement about Macquarie Asset Management's 100% acquisition of Haeyang Energy, which exclusively supplies city gas to Gwangju, from the private equity fund Glenwood PE.

All council members pointed out, "If Macquarie, which wasted a huge amount of Gwangju citizens' tax money through the Gwangju 2nd Circular Private Road, is granted another monopoly business right over the essential public utility city gas business, it could lead not only to a decline in citizen benefits but also to a considerable burden on local finances."

They continued, "As revealed during the operation of the Gwangju 2nd Circular Road, it is clear that Macquarie will continuously attempt to raise city gas fees under the pretext of repaying funds borrowed at exorbitant interest rates for large-scale facility investments. Given Macquarie's past behavior, as speculative capital prioritizing profit maximization, outsourcing will worsen workers' employment conditions, pushing the lives of workers who are already struggling day by day due to COVID-19 to the brink."

They also stated, "City gas is a social infrastructure project with strong public nature and should be operated in a virtuous cycle system where an energy-specialized institution manages it, and technology development as well as investment in facilities and equipment for city gas safety and supply service improvement are carried out. It is never desirable for city gas, which greatly affects citizens' daily lives, to be sold to asset management companies prioritizing short-term investment profits without any regulatory measures. Even if such transactions occur freely, public control afterward must ensure that it fulfills its role as a public good."

Furthermore, they added, "Regarding city gas, we will thoroughly review the methods for calculating supply costs and make every effort at the council level, including revising ordinances, to establish a reasonable fee system and ensure smooth supply so that citizens do not suffer damages."

This content was produced with the assistance of AI translation services.