Changwon City Council Requests Investigation of Former Mayor Seongmu Heo over Alleged Breach of Duty in Liquefied Hydrogen Plant Project

On May 30, the Changwon Special City Council in Gyeongnam requested the police to investigate former Mayor Seongmu Heo, who is currently a member of the National Assembly for the district, on charges of breach of duty related to the liquefied hydrogen plant project.

The liquefied hydrogen plant project was the first facility in Korea for liquefied hydrogen production, promoted during the 7th local government term under former Mayor Heo at a cost of 105 billion KRW. Although it was completed on January 31, 2024, it has remained idle due to the failure to secure demand and insufficient verification of the facility.

The special purpose company 'Hi Changwon', established in April 2020 through joint investment by Changwon Industry Promotion Agency, Doosan Enerbility, and Korea Industrial Complex Corporation, was responsible for operating the project. However, after falling into default, normalization of the project has become unlikely.

Changwon City Council members Mina Kim and Seungyeop Park are explaining the purpose of requesting an investigation into former Mayor Seongmu Heo's alleged breach of duty related to the liquefied hydrogen plant project during the 7th local government term. Photo by Seeryung Lee

Previously, at the 4th plenary session of the 141st temporary meeting in March, the city council consecutively passed both the adoption of the administrative audit report on this project and the resolution to request an investigation.

The special administrative investigation committee, composed solely of six People Power Party members after the Democratic Party council members declared their non-participation, pointed out several problems with the project: the transformation of the project structure for profit-making purposes; illegal investment in the special purpose company and violations of the Local Finance Act; and insufficient review of the feasibility study.

In particular, they stated that by providing a purchase commitment letter without legal review, Hi Changwon was able to secure the initial project financing (PF) loan of 61 billion KRW, which led to financial burdens and potential risks for Changwon City.

Therefore, they emphasized the need to identify the responsibility of former Mayor Heo, who was the final decision-maker for the project, through an investigation.

The city council stated, "This project has left Changwon City with a potential financial burden of about 60 billion KRW," and explained, "This is because Changwon City and the Industry Promotion Agency provided illegal PF benefits to Hi Changwon," as they submitted the investigation request to the Gyeongnam Provincial Police Agency.

Chairman Son Taehwa said, "The liquefied hydrogen plant project was a major issue involving a large-scale budget, yet problems were revealed throughout the entire administrative process," and added, "The waste of precious tax money and the resulting financial burden are being entirely shifted onto the citizens."

He continued, "Requesting an investigation is a natural step to clarify responsibility for the poor management of the project and to uncover the truth."

He explained that the decision was made based on the public interest, to strictly address the various administrative issues, legal violations, and unfair financial burdens identified during the special committee's investigation.

Mina Kim, a member of Changwon City Council, is submitting a request for investigation to the Civil Complaints Office of the Gyeongnam Provincial Police Agency regarding former Mayor Seongmu Heo of the 7th local government term. Photo by Se Ryeong Lee

The Democratic Party members of the city council, who have consistently opposed the move, countered by saying, "It is illegal to call something illegal when it is not."

Floor leader Park Haejeong argued, "The project clearly underwent central investment review and was approved by the Cabinet, so it was within the mayor's authority for affiliated organizations to invest. The project was decided through a public offering by the Ministry of Trade, Industry and Energy and in consultation with national agencies. The city council's resolution to request an investigation was also pushed through by the People Power Party, which holds the majority."

Park further criticized, "Submitting the investigation request in March, just before the presidential election, seems like a very bad political move intended to cover up the loss of the mayoral position by former Mayor Nam Pyo Hong and the failures caused by former President Seok Yeol Yoon's acts of rebellion."

She added, "We have not been notified of the details or even the fact of the investigation request, so we will announce our position once we have reviewed the information," and stated, "Such bad political tactics, like framing the issue in this way, should be condemned."