Democratic Party Gyeongnam Provincial Office: "Sale of SK Ocean Plant Is a Betrayal of Local Residents ... Must Be Withdrawn"

The Gyeongnam Provincial Party of the Democratic Party of Korea has once again voiced its opposition to the sale of SK Ocean Plant.

On December 10, the SK Ocean Plant Sale Opposition Special Committee of the Democratic Party’s Gyeongnam Provincial Party held a press conference in front of the main gate of the Gyeongnam Provincial Government Office, stating, "SK's sale of its subsidiary, SK Ocean Plant, to a private equity fund must be prevented at all costs."

Lee Okcheol, Chairman of the Special Committee Against the Sale of SK Ocean Plant at the Democratic Party Gyeongnam Provincial Party, is urging the withdrawal of the sale of SK Ocean Plant. Photo by Lee Seryung

SK Ocean Plant, a specialist company in offshore wind power, shipbuilding, and marine industries in Gyeongnam Province, is investing 1 trillion won in the Yangchon and Yongjeong General Industrial Complexes in Donghae-myeon, Goseong-gun, to build the world’s largest offshore wind substructure production base.

The site for this specialized offshore wind production base was designated as Gyeongnam’s first Opportunity Development Zone in June. Gyeongnam Province and Goseong-gun have actively supported the project by relaxing regulations such as lifting the fisheries resource protection zone and granting mountain area conversion permits, expanding and improving National Road No. 77, constructing access roads to the special zone complex, providing job-linked housing projects, and facilitating various permits and approvals.

However, the parent company, SK Ecoplant, moved to sell its stake just three years after acquiring Samkang M&T and renaming it SK Ocean Plant. In September, it announced that it had selected the newly established private equity fund (PEF) manager, The Ocean Consortium, founded last year, as the preferred bidder for the stake sale.

In response, Gyeongnam Province and Goseong-gun have repeatedly expressed their opposition to the sale, citing concerns about potential setbacks to the Opportunity Development Zone, the risk of the offshore wind business being transferred to foreign companies and the resulting threat to energy security, uncertainty over the succession of employee jobs and the maintenance of contracts with partner companies after the sale, and the possibility of neglecting work due to the profitability of the offshore wind business.

Offshore wind substructure manufactured at the SK Ocean Plant yard located in Goseong-gun, Gyeongnam. Provided by SK Ocean Plant

The Opposition Special Committee stated, "Residents of Goseong-gun, including those in Donghae-myeon, trusted SK as a company three years ago and have endured sacrifices, providing land and cooperating in every way. For years, they have put up with dust blowing into their homes, vibrations from blasting, and noise from heavy machinery," adding, "This was because they hoped and expected that the arrival of a leading domestic conglomerate would bring vitality to the village and foster regional development."

The committee further added, "The Yangchon and Yongjeong districts, designated as Opportunity Development Zones, are places that have left trauma for Goseong-gun residents. In 2007, the area was designated as a Special Zone for Shipbuilding and Marine Industries, but after Samho Shipbuilding went bankrupt just two years later, the land intended for factories was left as an eyesore for over a decade."

They continued, "SK, a company representing Korea, is attempting to sell to a private equity fund, which are corporate raiders, just three years after receiving administrative and financial support from the government and Gyeongnam Province and breaking promises to local residents. Who would now be willing to pursue mutual growth with local residents, workers, and Gyeongnam Province? Who can guarantee that a second Samho Shipbuilding incident will not occur?"

The committee emphasized, "The sale of SK Ocean Plant will devastate the local economy, threaten workers’ livelihoods, and shake the very future of the province. This is not simply a corporate sale issue but a critical matter directly tied to the future of Gyeongnam’s economy."

They also declared, "Our committee will define this sale as a betrayal of local residents, provincial citizens, and workers," and pledged to make the withdrawal of the sale, fulfillment of promises, and definite compensation for affected local residents the highest priorities, responding comprehensively to the situation.

Currently, the committee is continuing its opposition to the sale of SK Ocean Plant through solo protests and leaflet distribution, mainly in the Goseong area.

Going forward, they plan to gather the opinions of Goseong-gun residents and provincial citizens who oppose the sale and deliver them to the government and the National Assembly.