Heads of agencies targeted for merger say they were not consulted in advance; one learned of the plan through a phone call on the day of the announcement
![Korea Gas Corporation President Hong Eui-rak delivers a work report Monday at the company's headquarters in Dong-gu, Daegu, during a national audit by the National Assembly's Trade, Industry, Small and Medium Enterprises, and Venture Committee covering Korea Gas Corporation, Korea National Oil Corporation, Kangwon Land and other state-affiliated energy bodies. [Yonhap]](https://wimg.heraldcorp.com/news/cms/2026/10/19/rcv.YNA.20261019.PYH2026101908050005300_P1.jpg)
Lawmakers raised concerns Monday that the government announced its plan to merge Korea Gas Corporation and Korea National Oil Corporation without prior discussion or any verification of the merger's expected effects.
People Power Party lawmaker Park Sung-min of Ulsan's Jung-gu said at the National Assembly's Trade, Industry, Small and Medium Enterprises, and Venture Committee national audit of Korea Gas Corporation, Korea National Oil Corporation and other agencies that the merger plan amounted to a unilateral notification. "The government announced this without any prior discussion, consultation or coordination," Park said.
He added that merger talks had also come up under the Moon Jae-in administration in 2021, but were shelved in favor of first addressing financial improvements and functional normalization before considering a longer-term review. "Since then, the financial problems have only gotten worse," he said.
Park went on to say that Korea National Oil Corporation was in a state of capital impairment while Korea Gas Corporation carried a debt ratio nearly four times its equity. He then asked the two agency heads whether they had ever been contacted to review prior consultation or coordination before the merger announcement.
Korea Gas Corporation President Hong Eui-rak said he had not heard of the integration plan in advance. "I was not told how or with what thinking the announcement was made," he said.
Korea National Oil Corporation President Son Ju-seok said he had spoken by phone with a senior official on the morning of Sept. 3, the day the merger was announced. "I spoke with Yang Ki-wook, director general for industrial resources security at the Ministry of Trade, Industry and Energy," he said.
Park then noted that Korea National Oil Corporation was an unlisted company while Korea Gas Corporation was listed, with more than 100,000 minority shareholders. "This is essentially asking the public to pay off the debts of the oil or gas corporation with taxpayer money — what happens to the shareholders' property rights?" he said.
He also said there was no concrete study or data showing what benefits the merger would produce. "If the government issues a unilateral order and the two of you simply comply, that makes both of you irresponsible," he told the two presidents.
Hong said his position was that the value of existing shareholders must not be harmed. "Because the government made the announcement, I believe the government will have conducted such a review on its end, and I am waiting for a consultation table to be set up," he said.
Son said the government appeared to be pursuing the merger to enhance global competitiveness and strengthen energy security. "We will thoroughly review what role we are to play in the road map going forward," he said.
After the exchange, committee Chairman Kim Sung-won asked whether it was fair to say neither president was yet at the stage of declaring support or opposition. Both answered in the affirmative.
Meanwhile, members of the Korea Gas Corporation branch of the Korean Confederation of Trade Unions' public transport workers' union rallied outside the company's Daegu headquarters, where the national audit was being held, to protest what they called a "unilateral, hasty merger."
oskymoon@heraldcorp.com
