[Exclusive] 'Heating Cost Bomb' Gas Gong, One in Three Earns Over 100 Million Won Annual Salary

50.2% Increase in Earners with Annual Salary Over 100 Million KRW
Average Wage Per Person Surpasses 90 Million KRW
9 Trillion KRW in Receivables Accounted as 'Assets'
Actual Gas Sales Losses Increase by 400%
Heating Cost Shock...Criticism Over Favoritism

[Asia Economy Sejong=Reporter Dongwoo Lee] Last year, one out of three employees at Korea Gas Corporation earned an annual salary exceeding 100 million won, making them high-income earners. The gas corporation, which raised wholesale gas prices significantly citing financial difficulties and became the center of this winter's 'heating bill bomb' crisis, is being criticized for prioritizing 'taking care of their own staff' over public livelihood stability.

According to data obtained by Asia Economy on the 15th through the office of Lee Ju-hwan, a member of the People Power Party, the number of employees at the Gas Corporation earning over 100 million won last year totaled 1,415, accounting for 34.3% of the total workforce (4,126 employees). This means one out of every three employees received a high-income salary.

The number of high-income earners at the Gas Corporation increased by 50.2% last year. In just one year, 11.4% (473 employees) of the total workforce joined the ranks of high-income earners. The number of employees earning over 100 million won rose from 964 in 2019 to 1,134 in 2020, then slightly decreased to 942 in 2021, before sharply increasing again last year. The average salary per employee was 93.57 million won, surpassing 90 million won for the first time with a 7.2% increase compared to the previous year (87.22 million won).

During the same period, the salary of the head of the institution rose 43.3% to 208.06 million won from 145.10 million won in 2021. A Gas Corporation official stated, "Employee salaries are set according to the average wage increase rate of public institutions, and the head of the institution's salary includes incentives and performance bonuses."

The sharp increase in the number of high-income earners at the Gas Corporation is closely related to the record-high sales and operating profits last year. According to financial information company FnGuide, the Gas Corporation's sales last year were estimated at 50.0617 trillion won, and operating profit at 1.8637 trillion won, representing increases of 81.9% and 50.3% respectively compared to the previous year. These figures are the highest since the Gas Corporation was established in 1983.

The problem lies in the fact that accounts receivable, which are effectively losses, have reached trillions of won. As of the end of last year, the Gas Corporation's accounts receivable stood at 9 trillion won, a 410% surge compared to 1.7656 trillion won the previous year. The accounts receivable, a unique accounting method of the Gas Corporation, treats unpaid amounts from natural gas import payments after sales as 'assets' in accounting, creating an illusion of better business performance. In reality, the Gas Corporation sold gas at a loss amounting to trillions of won last year, recording the largest deficit in its history. The Gas Corporation's debt ratio (consolidated basis) soared from 359.9% as of the end of September 2021 to 478.5% during the same period last year.