Concerns Over Loss of Business Rights Worth 1.2 Trillion KRW
Allegations of National University Professor Profiting from Internal Information
[Asia Economy Reporter Kwon Hyun-ji] It has been revealed that the Saemangeum renewable energy project rights, which President Moon Jae-in pledged to personally oversee during his tenure, are being sold to a Chinese-affiliated company. There are concerns that the power generation rights, with expected profits reaching 1.2 trillion KRW, could be entirely transferred to China.
According to Park Soo-young, a member of the People Power Party, on the 4th, The Geodi Co., Ltd., which is promoting an offshore wind power project on approximately 80,000 pyeong inside the Saemangeum No. 4 seawall, recently signed a stock purchase agreement to sell these project rights to a Chinese-affiliated company, Jodo Wind Power Co., Ltd. The Geodi Co., Ltd. is estimated to gain about 72 billion KRW in profits from this contract.
The project is capable of generating an average of 192 GWh annually over 25 years, with expected revenue estimated by an accounting firm at approximately 1.2 trillion KRW. According to the Electricity Business Act, Korea Electric Power Corporation (KEPCO) must prioritize purchasing electricity produced by renewable energy power producers. If the project rights are fully transferred, at least 50 billion KRW in annual profits would be flowing out to China.
Park Soo-young stated, “There is a risk that a national key industry and power generation rights operated with taxpayers' money could be illicitly transferred to China,” adding, “The Moon Jae-in administration hastily pushed renewable energy projects, creating vulnerabilities in energy security.”
During this process, allegations arose that a national university professor profited by using insider information. Professor A of Jeonbuk National University, who holds a significant share in The Geodi Co., Ltd., actively promoted the Saemangeum offshore wind power project by undertaking technical services while serving as the director of Jeonbuk Institute of Science and Technology and participating in the Ministry of Knowledge Economy’s offshore wind power promotion team. He also emphasized the importance of offshore wind power as a member of the Presidential Committee on Balanced National Development and the Democratic Party’s Renewable Energy Special Committee. These facts have led to suspicions that Professor A may have used insider information to acquire the project rights and easily obtain permits.
Marine Energy Technology Institute Co., Ltd., which holds 40% of The Geodi Co., Ltd., is owned by Professor A and his family, while Saemangeum Offshore Wind Power Co., Ltd., holding 44%, is a company jointly owned by Marine Energy Technology Institute Co., Ltd. and Professor A’s brother.
Park emphasized, “The entire process, from a national university professor who provided technical services acquiring project rights to signing a stock purchase agreement, is something a public official should never do,” and added, “The Ministry of Trade, Industry and Energy and the Electricity Commission must thoroughly manage and supervise this and check for similar cases nationwide.”
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