KNOC, Kogas shun mergers to boost exploration

摘要

Seoul—South Korea’s energy ministry on Thursday unveiled a new energy development scheme focused on improving the financial status of state-owned companies—and boosting their exploration capacity—by refraining from costly mergers and acquisitions. Under the plan mapped out by the ministry, the debt-to-equity ratio of state-owned Korea Gas Corp. will be lowered to 274% by 2017 from the current 438% at the end of 2012. The ratio will be eventually decreased to 130%, it said. The ratio has increased drastically from its 228% level in 2007 as a result of overseas development projects.