Gas Corporation Announces Task Force Activation Following Drop to D Grade in Management Evaluation

Korea Gas Corporation announced on the 20th that it will immediately form and activate a "Management Performance Improvement TF" in response to receiving a 'D grade' in last year's public institution management evaluation.

The day before, on the 19th, Gas Corporation received a 'D grade' in the 2023 public institution management evaluation announced by the government. This is a one-step downgrade from the previous year's 'C grade.' Since the end of 2022, Gas Corporation has been supplying gas at about 80% of cost, resulting in accounts receivable swelling to over 15 trillion won, causing a financial crisis.

Choi Yeon-hye, President of Korea Gas Corporation, is inspecting the safety management status at the LNG production base in Yeonsu-gu, Incheon on the 5th. [Image source=Yonhap News]

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Gas Corporation identified the causes of such poor evaluation as the increase in accounts receivable due to the continued freeze on gas prices, fee reductions for vulnerable groups, deterioration of financial conditions due to past gas price settlements following the Board of Audit and Inspection's audit results, and poor comprehensive integrity evaluation results.

In February last year, Gas Corporation sold non-core assets and improved its capital structure, implementing a high-intensity financial structure improvement plan worth 14 trillion won over five years. However, since gas price hikes have not yet been implemented, attention is focused on whether gas prices will increase next month.

Choi Yeon-hye, President of Gas Corporation, said, "We will carefully review all management activities from the public's perspective, unite our capabilities, and prepare a plan to dramatically improve management performance, which we will pursue with a sense of urgency."

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