Korea Gas union rejects market opening.

(From The Korea Herald)

By Kim Ji-hyun The labor union at state-owned Korea Gas Corp. yesterday issued a statement rejecting sweeping government reforms that would allow the entrance of private players into the local gas industry.

Coming on the heels of a recent failed attempt to privatize the six generating companies of the government-run Korea Electric Power Corp., if the union is successful, it will mark yet another state-led overhaul gone awry.

"Our findings show that Korea is in no situation to allow more rivals into the gas import and distribution industry," the Korea Gas union said in a statement. "Rather, we advise the government to empower Korea Gas Corp. to shape itself into a larger scale business," it said.

Korea currently imports its entire supply of gas, and Korea Gas has been the sole importer and distributor. "What we need is a single, powerful gas company," said Bae Kyung-suk, a union representative. "The entrance of more players would destroy this vision and lead to fragmentation of the market." Bae also expressed concern over a string of changes that the domestic gas market has witnessed lately as heavyweight corporations such as POSCO and energy units from the LG and SK groups have sealed deals with natural gas exporters to import ...