State-owned Energy Companies to Sell Overseas Assets Worth 6.3 Trillion Won

Democratic United Party lawmaker Baek Jae-hyun, who is a member of the Trade, Industry and Energy Committee of the National Assembly, said on Oct. 26 that six state-run energy companies are planning to dispose of overseas assets worth 6.2723 trillion won (US$5.9591 billion) combined by 2017.

The Korea National Oil Corporation (KNOC) is going to sell assets worth 2.7003 trillion won (US$2.5650 billion), and the amount is 1.4294 trillion won (US$1.3580 billion) for the Korea Electric Power Corporation (KEPCO), 1.4 trillion won (US$1.3 billion) for the Korea Resources Corporation, 588 billion won (US$559 million) for the Korea Gas Corporation (KOGAS), 143.5 billion won (US$136.4 million) for the Korea Hydro and Nuclear Power Corporation (KHNP) and 11.1 billion won (US$10.5 million) for the Korea Coal Corporation.

KNOC and KOGAS have not disclosed their specific disposal plans. KEPCO is going to sell its shares in bituminous coal and uranium development projects, and the KHNP will withdraw from the uranium development project it has been engaged in. 

“Recently, the KNOC has sold Harvest's North Atlantic Refining Limited subsidiary in Canada for just 90 billion won [US$85.5 million], which was less than one-tenth of the purchase price,” the lawmaker pointed out, adding, “The companies will have to be prudent enough to not repeat the mistake.”