Daewang Whale Project Executives Received 75 Million Won in Bonuses Over Two Years Despite Tax Losses

Kwon Hyangyeop: "Bonuses Awarded Despite Tax Losses"
"No Citizen Will Accept Calling the Daewang Whale Project an Achievement"

It has been revealed that those responsible for the East Sea deep-sea gas field development project, known as the "Daewang Whale Project," received large performance bonuses.

According to data submitted by Assemblywoman Kwon Hyangyeop of the Democratic Party of Korea, a member of the Trade, Industry, Energy, SMEs, and Startups Committee, to whom Korea National Oil Corporation (KNOC) provided the information on October 20, Vice President Kwak Wonjun, who oversaw the Daewang Whale Project, received a performance bonus of 42.14 million won last year. This amount is equivalent to 427% of Kwak's basic monthly salary.

In December last year, the drilling ship West Capella arrived at Namoe Port in Busan to verify whether oil and gas are buried in the promising structure of the East Sea deep-sea gas field. Photo by Yonhap News Agency

This year, Vice President Kwak also received a performance bonus of approximately 32.85 million won. The total accumulated amount he received over the past two years amounts to about 75 million won. Not only Vice President Kwak, but also employees from the East Sea Exploration Team and the Drilling Team involved in the Daewang Whale Project, received substantial performance bonuses. The East Sea Exploration Team was also responsible for selecting Act-Geo, a U.S. geological exploration company, as the project service provider. It is reported that KNOC previously paid Act-Geo approximately 4 billion won in service fees.

According to the data, the East Sea Exploration Team and the Drilling Team received performance bonuses ranging from a minimum of 300% to a maximum of 427% of their basic monthly salary. The committee member who received the largest performance bonus was awarded about 36 million won, followed by Team Leader A with more than 30 million won, and Team Leader B with about 26 million won.

Assemblywoman Kwon stated, "If Korea National Oil Corporation disguises the 'Daewang Whale' project, which resulted in astronomical tax losses, as a success and pays out large performance bonuses, not a single citizen will find this acceptable," adding, "They must reflect on whether this meets the public's expectations."

Meanwhile, the Daewang Whale Project was launched after former President Yoon Suk-yeol announced in June last year the possibility of a large-scale oil and gas deposit off the coast of Yeongil Bay in Pohang. However, on September 21, KNOC officially confirmed that the project was "not economically viable" and stated that there are no plans to conduct additional exploration.