Former lawmaker Hong Eui-rak to take helm at Korea Gas Corporation next week

Former Democratic Party of Korea lawmaker Hong Eui-rak, 71, will take office as president of Korea Gas Corporation next week.

Korea Gas Corporation held an extraordinary shareholders' meeting Thursday morning and approved a resolution to appoint Hong as its new president.

Once the shareholders' resolution passes, the minister of trade, industry and energy recommends the appointment and the president of the republic formally appoints the new head. The term runs three years.

"The process of appointing the Korea Gas Corporation president will wrap up next week," a Ministry of Trade, Industry and Energy official said. "We expect the new president to hold an inauguration ceremony and begin official duties next week."

Hong, a native of Bonghwa in North Gyeongsang Province, graduated from Gyeseong High School in Daegu and studied agricultural economics at Korea University. He served as floor leader of the National Assembly's trade, industry, energy, SME and venture committee during the latter half of the 20th National Assembly, and chaired the southern regional economic committee of Lee Jae-myung's presidential campaign for the Democratic Party of Korea in the 20th presidential election.

Industry voices have raised concerns, however, about a politician taking the helm of Korea Gas Corporation at a time when LNG supply anxieties are growing amid heightened risk in the Strait of Hormuz stemming from the Middle East conflict.

Korea Gas Corporation is currently carrying roughly 14 trillion won ($9.49 billion) in uncollected receivables. Should the government maintain its freeze on gas tariffs, the financial burden is only expected to deepen. Industry observers say expertise is critical given the need to simultaneously manage a complex set of challenges — LNG procurement, stable supply, tariff adjustments and overseas resource development.

LNG-fired power generation is also drawing attention as a key electricity source for the Honam semiconductor cluster, which will draw 800 trillion won in investment. Against that backdrop, the 16th Long-Term Natural Gas Supply and Demand Plan, due to be released next week, is drawing intense interest.

Korea Gas Corporation launched a search for a new president late last year, but the Ministry of Trade, Industry and Energy deemed all five final candidates unqualified and opened a second recruitment round.

Choi Yeon-hye, whose term officially expired last December, stepped down Thursday. The first woman to lead Korea Gas Corporation, Choi cut the company's debt ratio from roughly 500 percent in 2022 to 397 percent last year — a reduction of about 100 percentage points — through aggressive self-rescue efforts, and worked to enhance shareholder value as a listed company.

The debt ratio, which had reached 500 percent at end-2022, was brought down to 397 percent last year through intensive self-help measures including management efficiency drives and profit maximization.

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.