Korea Gas Rises Most in Three Weeks on Tariff Gain

Korea Gas Corp. (036460) shares advanced the most in three weeks in Seoul trading after the government said it will increase power and gas prices tomorrow for the first time since November.

Korea Gas, the world’s largest buyer of liquefied natural gas, gained 4.3 percent to 46,600 won at the close on the Korea Exchange, the biggest increase since June 5. Korea Electric Power Corp. (015760), which supplies almost all the power in the country, added 0.3 percent to 29,500 won, while the Kospi index rose 0.1 percent.

Prices of electricity will rise by an average 3.9 percent, the Ministry of Knowledge Economy said in an e-mailed statement today. Gas prices will be raised by an average 7.9 percent. The increases were made to reflect fuel costs and to stem earnings losses at state-run utilities.

To contact the reporter on this story: Saeromi Shin in Seoul at sshin15@bloomberg.net

To contact the editor responsible for this story: Linus Chua in at lchua@bloomberg.net

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