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Photo = Korea Gas Corporation (KOGAS) |
[Alpha Biz= Kim Jisun] Seoul, September 22, 2025 – Korea Gas Corporation (KOGAS) failed to reclaim KRW 5.3 billion (USD 38 million) in tariff refunds after neglecting to file Free Trade Agreement (FTA) preferential tariff refund applications within the required deadline. The case is drawing criticism as a serious lapse in public enterprise management, stemming not from a simple clerical error but from systemic failures in handover, verification, and reporting processes.
According to disciplinary records disclosed by Rep. Heo Jong-sik of the Democratic Party, KOGAS imported four shipments of liquefied natural gas (LNG) from FTA partner countries between November and December 2023. Because the certificates of origin did not arrive on time, the company initially paid a provisional 2% quota tariff. However, after the certificates were later received, KOGAS failed to submit refund applications within the one-year statutory period, thereby forfeiting the refunds.
Under Korea’s FTA tariff regime, imports from partner countries are eligible for reduced or zero tariffs. LNG imports, in particular, can be cleared at a 0% duty rate with valid certificates of origin. When such certificates are delayed in transit, importers may pay the provisional 2% quota tariff to avoid clearance delays, then file for refunds once the certificates arrive—provided applications are made within one year of the import declaration.
Refunds were missed on all four shipments: KRW 790 million (Nov 13, 2023), KRW 1.63 billion (Nov 22), KRW 1.36 billion (Dec 1), and KRW 1.53 billion (Dec 7). The Korea Customs Service confirmed that, under Article 9 of the FTA Special Act, refunds were ineligible because applications were not filed within the one-year deadline.
An internal audit revealed multiple layers of negligence: the working-level staffer failed to initiate the refund process despite receiving the certificates, their predecessor had only provided verbal handover, the department head neglected follow-up actions even after reviewing related documents, and the senior executive at the LNG terminal did not order internal checks despite recognizing the risk.
The findings highlight systemic management failures within KOGAS and are expected to intensify calls for strengthened compliance and oversight measures across public enterprises.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
