Daegu City proposes KOGAS-led merger for new energy corporation

Daegu Metropolitan City has officially proposed that the upcoming merger of Korea Gas Corporation (KOGAS) and Korea National Oil Corporation (KNOC) be structured around KOGAS, with the new energy resource entity's headquarters remaining in Daegu.

City officials argue that KOGAS is the more suitable central entity due to its significantly larger scale. According to 2025 management disclosures, KOGAS employs approximately 4,305 people—nearly triple the 1,456 employees at KNOC—and holds assets of 53.6 trillion won, compared to KNOC's 19.4 trillion won. Furthermore, KOGAS reported a net profit of 132.3 billion won, while KNOC faced a deficit of 1.25 trillion won.

Daegu emphasizes that its existing infrastructure, including a central control center managing 5,346 km of natural gas pipelines, provides an ideal foundation for integrating oil functions to ensure national energy security. Local political figures and youth representatives have also called for fair and consistent standards in the merger process, expressing concerns that moving the headquarters to other regions, such as Ulsan, could undermine regional development and local job stability.