Korea Gas Corp targets over 5 trillion won in overseas investment returns by 2030

Korea Gas Corporation is projected to recover more than 5 trillion won (about $3.31 billion) in overseas project investment by 2030.

The company has also been working to boost shareholder value as a listed firm, cutting its debt ratio from roughly 500% in 2022 to 397% last year through aggressive self-rescue efforts — a reduction of about 100 percentage points.

According to the gas industry, Korea Gas Corporation recovered about 3 trillion won in investment from overseas resource projects over the past three years.

The company recovered 1.3 trillion won from two liquefied natural gas (LNG) projects in Australia and plans to recover an additional 5 trillion won or more from overseas projects by 2030.

The debt ratio, which reached 500% at the end of 2022, was reduced to 397% last year through intensive self-rescue efforts including management efficiency improvements and profit maximization.

Uncollected receivables surged to as much as 14 trillion won in 2024 due to a rate policy aimed at stabilizing household finances. Korea Gas Corporation moved proactively to lower LNG procurement costs through price renegotiations on existing contracts and cheaper new contracts, while also pursuing cost cuts and management efficiency gains.

To strengthen medium- and long-term growth momentum, the company said it divested low-profitability non-core assets and restructured its business portfolio around profitability and strategic value.

In response to tightening environmental regulations from the International Maritime Organization, Korea Gas Corporation built and began operating South Korea's first dedicated LNG bunkering vessel — the Blue Whale — in 2023, leading the way in securing LNG bunkering technology and its commercialization.

The company also proactively diversified its import sources, cutting its dependence on Middle Eastern imports from about 45% of total supply in 2022 to 24% last year. It aims to bring that share below 18% from this year onward, ensuring uninterrupted natural gas supply even amid supply chain disruptions from the Middle East.

A new contract signed last August to import 3.3 million tons of US LNG annually has been credited with securing price competitiveness while also contributing to South Korea-US trade diplomacy.

Korea Gas Corporation has secured annual demand of 3.72 million tons under individual tariff agreements with 11 power generation companies to expand its market share, and is broadening access to its manufacturing and pipeline facilities for private-sector users to improve utilization rates and lower gas prices.

Despite a challenging financial environment marked by rising uncollected receivables, the company has paid shareholder dividends for two consecutive years, underscoring its commitment to enhancing shareholder value.

For fiscal year 2024, Korea Gas Corporation paid a dividend of 1,455 won per share, representing a market dividend yield of 4.10%. For the following fiscal year, it paid 1,154 won per share, a yield of 2.82% — both above the Korea Exchange average market dividend yield of 2.63% for common shares last year.

In its corporate value enhancement plan disclosed in April, Korea Gas Corporation outlined three core directions: sustainable growth, stronger financial soundness and improved profitability.

"The corporation has been running tirelessly with a heavy sense of responsibility for the stable supply of natural gas and the enhancement of shareholder value," said Choi Yeon-hye, president of Korea Gas Corporation. "Despite countless difficulties, we have achieved supply stability without wavering and laid the groundwork for sustainable growth by identifying new growth engines." She added, "Building on this foundation, we will continue to develop into a company trusted by the public, consumers and shareholders alike."