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| Choi Yeon-hye |
Criticism has intensified over President Yoon Suk-yeol's appointments of a slew of unqualified political figures as the heads of state-run energy firms, as a reward for campaigning for him in the last presidential election, according to market watchers, Sunday.
Choi Yeon-hye, a former lawmaker of the conservative Liberty Korea Party, a predecessor of the ruling People Power Party (PPP), was named head of Korea Gas Corp. (KOGAS), a state-run energy firm, Nov. 10.
The close aide to Yoon has little experience in energy policy, a reason why she was initially ruled out as the final candidate in an earlier interview. Yet she applied again and secured the position.
She served as vice president and CEO of Korea Railroad Corp. (KORAIL), the state-run rail operator, but the experience has no relevance to her capabilities to lead an energy firm, according to an industry official.
"What does her experience in the transport sector offer to navigate a bout of risks and uncertainties in the energy sector? Nothing really," an industry official said on condition of anonymity.
"Everybody knows she was able to secure that position only because of her campaigning efforts in the lead-up to the presidential election. It is nothing new but it doesn't mean it is right," the official continued.
Korea's energy sector is expected to go through harsh times, as indicated by data from Rep. Kim Jung-ho of the main opposition Democratic Party of Korea (DPK), a member of the National Assembly Trade, Industry, and Energy, SMEs and Startups Committee.
KOGAS, according to the data, reported a loss of 5.4 trillion won ($4 billion) as of June, up 3.2 trillion won from six months earlier. The figure is a nine-fold increase from 600 billion won in 2018. The loss was measured as the difference in prices of energy sold to consumers and bought from local power generators.
Market watchers say the figure could exceed 10 trillion won by the end of this year, due to elevated key global commodity prices brought on by Russia's invasion of Ukraine.
The data provided by Kim showed that the unit import price of liquefied natural gas (LNG) surged to $1,014 per ton in September this year, double the $550 of last year.
Whether Choi will stay on as CEO remains to be seen.
Another former senior official of the Liberty Korea Party, who campaigned for Yoon, was appointed an outside director of Korea Hydro & Nuclear Power (KHNP), but resigned nine days after being named amid controversy over his qualifications.
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