The Board of Audit and Inspection pointed out inadequate management of fire extinguishing facilities at natural gas production bases managed by Korea Gas Corporation.
It was revealed through an audit that the fire extinguishing systems were not operating properly and that the quality of the powder extinguishing agent did not meet standards. Given the potential for large fires, Korea Gas Corporation was notified to thoroughly inspect fire equipment performance and related tasks.
According to the Board of Audit and Inspection, under the ‘Fire Facilities Act,’ Korea Gas Corporation must install fire extinguishing systems in the LNG storage tanks at natural gas production facilities. Though the installed systems should undergo operational testing annually according to the internal regulations, it was found that from 2019 to last year, 7 out of 15 locations did not conduct these tests. Upon inspection of five sample locations, it was found that none were functioning properly, as the extinguishing agents did not discharge. Observations suggest that, had a fire occurred, controlling it initially would have been challenging.
There was no inspection of the agents stored at the production bases, and even a sample survey showed that about half of the surveyed agents did not meet performance standards.
In response, the Board of Audit and Inspection issued a warning to the president of Korea Gas Corporation, asking for thorough inspection of fire equipment and reserve extinguishing agent inventory management at the production bases.
There was also a criticism regarding inadequate access control at the national security facilities. The audit revealed that, unlike its counterpart the Korea National Oil Corporation, Korea Gas Corporation did not establish uniform entry permit standards applicable across production bases. The audit, which reviewed criminal records of 2,593 individuals issued regular access badges between 2021 and Jun. 2024 at Korea Gas Corporation's headquarters and 14 branches, found that 346 had criminal records. Notably, 22 of these 346 individuals had arson-related criminal backgrounds, rendering them unqualified for access under the established guidelines.
An identity verification of 21 individuals who had cumulative entry days exceeding 90 days with temporary access badges revealed that three tanker truck drivers had a history of drunk driving.
Non-compliance with bonus distribution guidelines also came to light. According to guidelines from the Ministry of Economy and Finance, public corporations must distribute bonuses differentially across six grades, with the highest and lowest grades differing by more than double. However, Korea Gas Corporation maintained the gap between the highest and lowest bonus grades at 1.2 to 1.4 times. In 2020, bonuses were distributed equally.
In particular, since 2012, the union agreed to redistribute bonuses from employees with S and A grades to those with C and D grades among those who consented to equal distribution.
A representative from the Board of Audit and Inspection noted, “They informed Korea Gas Corporation to devise measures for improving the access control system,” further adding, “They also informed them to ensure bonuses are distributed differentially, and to revise the operating guidelines to specify that bonus redistribution, leading to improper receipt, includes actions subject to clawback.”