[2022 National Audit] "Former Expert of Moon Government's Electricity Committee Earned 4500 Times Profit from Offshore Wind Investment"

Rep. Park Su-young of the ruling party points out... "Small cartels easily obtain permits and make profits"

On the 21st, Lee Chang-yang, Minister of Trade, Industry and Energy (second from the left), attending the comprehensive audit of the Industry, Trade, Small and Medium Enterprises Committee held at the National Assembly in Yeouido, Seoul, is seen responding to a lawmaker's question. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] It has been pointed out that a former expert member of the Moon Jae-in administration's Electricity Commission made a profit of 4,500 times by investing in an offshore wind power project.

According to National Assembly inspection data disclosed on the 21st by Park Sooyoung, a member of the People Power Party on the Industry, Trade, Energy, and Small and Medium Enterprises Committee, Gungang Offshore Wind Power, which holds wind power development rights in Haenam-gun, Jeollanam-do, sold 95% of its shares in Goni Gungang last June and received approval from the Ministry of Trade, Industry and Energy's Electricity Commission.

Gungang Offshore Wind Power is a special purpose company (SPC) established by Haesung Energy and Dream Engineering. Gungang Offshore Wind Power, which had a capital of 1 million KRW, was sold for 4.5 billion KRW (31.8 million USD), 4,500 times the original amount.

The project involves building an offshore wind power plant with a capacity of about 240 MW (megawatts) near Mugo-ri, Munnae-myeon, Haenam-gun, Jeollanam-do, on public waters. Considering that the Saemangeum offshore wind power project is expected to generate revenue of 1.2 trillion KRW with a capacity of 99 MW, the office of the lawmaker explained that Gungang Offshore Wind Power's revenue is expected to exceed 2 trillion KRW at minimum.

The owner of Dream Engineering is Mr. A, who was appointed as an expert member of the Electricity Commission during the Moon Jae-in administration and has been confirmed as an inside director of Gungang Offshore Wind Power. The Electricity Commission is an organization under the Ministry of Trade, Industry and Energy responsible for licensing electricity businesses such as solar power and offshore wind power under the Electricity Business Act. Expert members research and review the agenda of the Electricity Commission. They also play an advisory role in decision-making and have close access to internal information.

Lawmaker Park pointed out, "If Mr. A reviewed or advised on matters related to his own business, it would constitute a serious conflict of interest as well as charges of breach of trust."

Additionally, Park's office reported that the Ministry of Trade, Industry and Energy is considering restoring the Saemangeum offshore wind power project rights, which recently became controversial due to a family of Professor B at a national university in Jeonbuk making profits exceeding 7,000 times, to their initial 2015 status according to administrative procedures.

The Saemangeum offshore wind power project is a project by the Saemangeum Development Agency to build an offshore wind power plant with a capacity of about 100 MW inside the Saemangeum 3rd and 4th sea dikes in Gunsan-si, Jeonbuk, with a project cost of 440 billion KRW.

Some of the project rights are held by the SPC 'The Geodi,' a company actually owned by Professor B and his family. Professor B, who has served as the director of the Jeonbuk Institute of Science and Technology, was in charge of technical services for the Saemangeum offshore wind power project.

Furthermore, the office of the lawmaker reported that Professor B actively participated in meetings of the Presidential Committee on Balanced National Development and the Democratic Party's Special Committee on Renewable Energy, emphasizing the added value of offshore wind power and the need to simplify licensing procedures.

Lawmaker Park criticized, "Cases are occurring where a small cartel easily obtains business licenses and gains enormous profits."

In response, Minister of Trade, Industry and Energy Lee Chang-yang said, "I have conducted an on-site inspection and initially judged that there are problems with the transfer and acquisition of power generation rights," adding, "We will completely reform the system, and if the explanations regarding these matters are uncertain, we will conduct an audit and report the results."