“At a press conference held today, Choi Yeon-hye, the CEO of Korea Gas Corporation, expressed the need for a prompt increase in fees for stable gas supply, likening the current situation to standing on the edge of a cliff. She mentioned that the outstanding debt is so massive that even if all employees work without pay for 30 years, it would still not be recoverable.
Furthermore, Choi stated that the daily interest cost for current borrowing amounts to 4.7 billion won, emphasizing that an increase in interest costs would lead to a rise in fees and ultimately be borne by the public. She also suggested that if fees were to be raised, it should be done gradually with a focus on raising prices during the low-demand summer season.
The unpaid gas bills for residential city gas from the gas company amount to 13.5 trillion won, and the company is facing a financial crisis due to supplying gas cheaper than the cost during the energy price surge caused by the Russia-Ukraine conflict.
Currently, the wholesale fee for residential city gas is 19.4 won per megajoule (MJ), but to recover all outstanding debts within a year, the fee would need to be increased to 27 won per megajoule.
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