Monday, September 23rd, 2013
According to the Board of Audit and Inspection on the 16th, Korea Gas Corp. took a loss of at least 10.5 trillion won by signing long-term supply contracts (about 1.5 to 2.0 million tons a year) with Qatar without taking into account the cheaper shale gas alternative based on a faulty gas demand forecast. When it made the forecast in February last year, the Audit Board said, the Ministry of Knowledge Economy at the time approved the proposal without probe.
In addition, the company was warned by the Korea Exchange for delaying a disclosure on the collateral provision in relation with a bank loan. The Korea Exchange said it would designate Korea Gas Corp. as a company not fully complying with regulatory filing requirements. Taken together, the gas company's share price took a hit for two consecutive trading days.
