'Motel Daepyo' Hansuwon Outside Director... Resigns 9 Days After Appointment

New Outside Director of Korea Hydro & Nuclear Power... Resigned on the 9th
Experience Running Bars and Motels... No Background in the Power Industry
Controversy Over Expertise... Emphasized 'Motel Management Experience' in Resume

Panoramic view of Gori Nuclear Power Plant located in Gijang-gun, Busan.
Photo by Asia Economy DB

[Asia Economy Sejong=Reporter Lee Junhyung] A newly appointed outside director of Korea Hydro & Nuclear Power (KHNP), who operates lodging businesses, has tendered his resignation just nine days after his appointment. It is interpreted that he felt burdened by the controversy over his lack of expertise, as he has no background in the power industry, including nuclear power generation.

According to related government departments on the 10th, KHNP outside director Mr. A expressed his intention to resign to KHNP on the 9th. Mr. A was appointed as a new outside director of KHNP on the 1st of this month. This means he expressed his resignation only nine days after being appointed as an outside director.

Initially, when KHNP appointed Mr. A, who has been operating a pub and motel in Pohang, Gyeongbuk Province, as a new outside director, questions arose both inside and outside the industry. This was because he had no experience related to KHNP’s major projects such as nuclear power plants. There were also criticisms that Mr. A might be a parachute appointment, citing his activity as an executive of the Liberty Korea Party Pohang Buk-gu Party Member Council in 2017.

Part of the self-introduction letter of Mr. A, the newly appointed outside director of Korea Hydro & Nuclear Power.
[Photo by Jeong Ilyoung, Office of the Democratic Party of Korea]

The controversy over expertise also surfaced. According to materials submitted by KHNP to the office of Democratic Party lawmaker Jeong Il-young, Mr. A wrote in his self-introduction that "I am implementing various methods for carbon neutrality, such as cleaning air conditioner filters and unplugging unused plugs, at the lodging business I currently operate." However, there were repeated criticisms that experience in operating motels or other lodging businesses is unrelated to the expertise required of a KHNP outside director.

Mr. A also emphasized his lodging business operation experience in his job performance plan. The job performance plan is one of the key documents that candidates for outside directors of public institutions submit along with their application and self-introduction during the recruitment process. In the job performance plan, Mr. A stated, "The lodging business I currently operate was selected as an excellent business in the '2019 Carbon Monoxide Poisoning Suicide Prevention Support Project' and received a commendation from the Minister of Health and Welfare," adding, "Based on this, I will strengthen my capabilities to help KHNP operate nuclear power plants more safely."

Meanwhile, the term of office for a KHNP outside director is two years, with an annual salary of about 30 million KRW. KHNP outside directors attend about 10 board meetings annually.