Prosecutors Raid Hyundai Global Over Alleged Unfair Contract in Saemangeum Solar Power Case

Prosecutors have launched a forced investigation into allegations of unfair contracts surrounding the Saemangeum floating solar power project.

The National Financial Crime Joint Investigation Team (Head: Chief Prosecutor Min Kyung-ho) of the Seoul Northern District Prosecutors' Office is conducting a search and seizure at the Hyundai Global office located in Yeonji-dong, Jongno-gu, Seoul on the 11th.

Seoul Northern District Prosecutors' Office, commencing operations on the 19th.

Hyundai Global is suspected of jointly establishing a special purpose company (SPC) with Korea Hydro & Nuclear Power in December 2018 without a design business license, and unlawfully securing the design and permit service contract for the Saemangeum floating solar power project worth a total contract amount of 22.8 billion KRW while unqualified.

During this process, Hyundai Global is also under investigation for making a profit exceeding 3.3 billion KRW by subcontracting to other design firms.

Earlier, in December 2021, the Board of Audit and Inspection revealed audit results stating that Korea Hydro & Nuclear Power handled the design service orders unlawfully and unfairly during the promotion of the Saemangeum floating solar power project.

The Saemangeum floating solar power project, with a total project cost of 4.62 trillion KRW, aims to create a 2.1GW scale power generation complex over an area approximately ten times the size of Yeouido, making it the largest floating solar project in history.