The Democratic Party council members of Changwon City, Gyeongnam, have proposed the formation of a "special committee of Changwon City Council for the normalization of the liquefied hydrogen plant project."
On May 8, the Democratic Party council members held a press conference at the Changwon Special City Hall press center and made this announcement.
They stated, "Due to the declaration of Event of Default (EDO) by the main lenders of the liquefied hydrogen plant project, the special purpose company Hi-Changwon, which was established for this project, has fallen into a state of default. As a result, this project, which Changwon City has been prioritizing, is now facing a crisis, and even the sustainability of the hydrogen industry is under threat."
They continued, "If the liquefied hydrogen plant project fails to normalize and either collapses or remains stalled for a long period, Hi-Changwon will have to repay the funds according to the loan agreement. This will directly lead to a massive financial burden for the Changwon Industry Promotion Agency and Changwon City," they emphasized.
The Democratic Party council members of Changwon City, Gyeongnam, are proposing the formation of a special committee within the city council to normalize the liquefied hydrogen plant project. Photo by Lee Seryung
The council members stated, "It is known that Hi-Changwon is currently bearing a daily delay interest of 20 million KRW, and annual losses could exceed 6 billion KRW. Depending on the outcome of future legal disputes, it cannot be ruled out that Changwon City may have to bear financial losses of up to 110 billion KRW."
They further stressed, "The city council can no longer ignore or neglect the disruption of the liquefied hydrogen plant project, which has involved the injection of approximately 100 billion KRW in public funds. We propose the formation of a special committee within the city council to seek solutions for managing the default situation and normalizing the project, as well as to promote necessary policy and administrative support."
Additionally, they added, "The special committee should actively pursue listening to the opinions of stakeholders such as the main lenders, Doosan Enerbility, and Hi-Changwon, mediating conflicts, cooperating with related institutions such as Gyeongnam Province, Changwon City, and the Changwon Industry Promotion Agency, gathering expert opinions and forming a space for citizen participation, and holding business meetings to secure demand sources for liquefied hydrogen."
The council members plan to negotiate with the People Power Party to ensure that the proposal for forming the special committee passes during the 143rd temporary session of the Changwon City Council, which will be held starting May 12.
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