The merger of Korea Gas Corporation (036460) and Korea National Oil Corporation has been on the table since the Park Geun-hye administration. Because oil and gas are often found together during drilling, officials have viewed a merger as a way to improve efficiency in resource development. Concerns remain, however, that the combined entity’s financial health could deteriorate as Korea Gas Corporation absorbs the oil company’s accumulated bad assets.
Under the government’s plan to overhaul the functions of state-run institutions, announced on the 3rd, Korea Gas Corporation and Korea National Oil Corporation…