Assemblyman Heo Seongmu Criticizes SK Oceanplant 'Hit-and-Run Zone' Controversy ... Urges Government to Take Responsible Action

Direct Criticism of the Goseong Opportunity Development Zone Crisis
at the Ministry of Trade, Industry and Energy Audit

"The public sector laid the foundation with 167.2 billion won, and SK promised an additional 1 trillion won on top of that. But now, they are breaking that promise and threatening to walk away," he said.

Assemblyman Heo Seongmu (Industry, Trade, and Energy Committee, Seongsan District, Changwon City, South Gyeongsang Province) strongly criticized SK Oceanplant's sudden move to sell the company during the comprehensive parliamentary audit of the Ministry of Trade, Industry and Energy on October 24, stating, "The Opportunity Development Zone must not become a 'hit-and-run zone.'"

Photo by Heo Seongmu

On June 25, 2024, the Yangchon and Yongjeong districts in Goseong County, South Gyeongsang Province, were designated as the province's first Opportunity Development Zone. SK Oceanplant signed an agreement with South Gyeongsang Province and Goseong County, pledging to invest 950 billion won in the area and to give hiring priority to 3,600 Goseong residents, and submitted this agreement to the Ministry of Trade, Industry and Energy.

However, with the project only 60% complete, SK Oceanplant suddenly began pursuing a stake sale, throwing the entire project and the local community into confusion. Assemblyman Heo raised a strong objection, saying, "If a company receives all the special benefits before even building the factory and then breaks its promises, who would ever trust or participate in the next special zone?"

He further criticized, "A total of 167.2 billion won in public funds is being invested in projects such as the 96.9 billion won national highway expansion, the 14.6 billion won access road, and the 55.7 billion won rental housing. In addition, support was provided for transmission lines, private shipping lanes, and public water permits. Yet the government keeps repeating that it is 'still in discussions with South Gyeongsang Province.'"

SK Oceanplant is a 'grandchild company' within the SK Group, with a corporate structure of SK Inc. → SK Ecoplant (63.2%) → SK Oceanplant (37.6%). The current sale involves SK Ecoplant transferring its stake to a newly established private equity fund.

Assemblyman Heo warned, "If the first special zone in South Gyeongsang Province, which the government touted as a success story, ends in failure, it will undermine not only Goseong but the entire regional strategy. The industrial complex stalled at 60% completion, the factory hasn't even broken ground, and the company is trying to walk away from its promises. This is not a simple sale-it's an attempt to run off with the 'public premium.'"

In response, Vice Minister Moon Sinhak of the Ministry of Trade, Industry and Energy replied, "We will contact SK directly, determine the exact situation and future plans, and report separately to the National Assembly." Minister Kim Jeonggwan added, "We will provide frequent updates on this matter to the relevant parliamentary committee."

Assemblyman Heo concluded his inquiry by stating, "The only thing the residents of Goseong County and South Gyeongsang Province are demanding is for the sale to be halted and trust to be restored. It is time for the government to step up and take direct responsibility as a mediator."