Government Withdraws Saemangeum Wind Power Dual Approval... 6 Illegal Acts
Attempted Sale of Business Rights to China... Controversy Over '7000-Fold Price Difference'
Former President Moon Jae-in Tours Saemangeum Floating Solar Power Plant(Gunsan=Yonhap News) Reporter Hwang Kwang-mo = Former President Moon Jae-in is touring the Saemangeum floating solar power plant located in the reservoir in Gunsan, Jeonbuk, on the morning of October 30, 2018. 2018.10.30
hkmpooh@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Junhyung] The government has withdrawn the approval for the transfer of the Saemangeum wind power project. The plan of Professor S from Jeonbuk National University, who aimed to sell the Saemangeum wind power project rights to a Chinese company and gain profits up to 7,000 times, has also fallen through.
The Ministry of Trade, Industry and Energy announced on the 11th that the 274th Electricity Committee held on the 9th reviewed and resolved the "Withdrawal of Approval for Transfer of Saemangeum Wind Power Project (proposal)." According to the Electricity Committee's decision, the approval for the transfer of the Saemangeum wind power project will be withdrawn starting from the 12th.
This withdrawal of approval for transfer is a follow-up measure based on a recent government investigation. Earlier, from October 17 of this year to the 9th of last month, the Ministry conducted a fact-finding investigation on seven companies including S, T, and J that participated in the Saemangeum offshore wind power project. The Ministry's investigation revealed six legal violations, including three cases of submitting false documents and two cases of unauthorized stock acquisition.
Among the investigation targets, company T, which holds the Saemangeum wind power project rights, became a "hot potato" during this year's National Assembly audit. This was due to allegations that Professor S from Jeonbuk National University, the actual owner of company T, tried to transfer the Saemangeum wind power project rights to foreign capital and gain a market price difference of up to 7,000 times. The company to which T intended to transfer the project rights was a Thailand-based company wholly owned by Chinese capital, with only the Ministry's final approval remaining.
However, through the fact-finding investigation, the Ministry confirmed circumstances that company T did not implement the approved financing plan and also submitted false preliminary development costs. This is why the Ministry initiated the withdrawal procedure for the approval of the Saemangeum wind power project transfer before the Board of Audit and Inspection's renewable energy project audit was completed.
Since the Electricity Committee decided to withdraw the approval for transfer, the contract between company T and the Chinese capital is also expected to be canceled. A Ministry official stated, "Given the current situation, it is difficult to see that company T has sufficient financial capability to proceed with the project," adding, "The withdrawal of approval also considered that the originally reviewed financing plan was changed, resulting in failure to meet the approval requirements."
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