Even Korea Electric Power Corporation Asks Korea Gas Corporation... "Please Increase the Limit on Private Bond Issuance"

[Asia Economy Sejong=Reporter Dongwoo Lee] Following Korea Electric Power Corporation, Korea Gas Corporation also stated on the 14th that the revision of the 'Korea Gas Corporation Act' to expand the bond issuance limit is urgent.

The Gas Corporation said, "Due to the rise in spot prices of liquefied natural gas (LNG), exchange rates, and increase in accounts receivable, it is expected that the current bond issuance limit of 29.7 trillion won will be fully exhausted within this year."

According to the current Korea Gas Corporation Act, the bond issuance limit is set at four times the sum of capital and reserves. The corporation argued that a legal revision is necessary to expand the corporate bond issuance limit to five times.

As of October, the scale of the Gas Corporation's corporate bond issuance is about 27 trillion won, already exceeding last year's year-end issuance amount (about 21 trillion won) by approximately 6 trillion won.

If the bond issuance limit expansion is not possible, the Gas Corporation may fail to pay for LNG purchases. In this case, the Gas Corporation explained that it could lead to a power 'blackout' crisis caused by the suspension of LNG power plant operations.

The Gas Corporation said, "If such a situation occurs, it could cause great confusion in the national economy and intensify the suffering of the people," and "We earnestly request the National Assembly to promptly approve the revision of the Gas Corporation Act."

Korea Gas Corporation Headquarters

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