President Lee Directs Ministry of Trade, Industry and Energy
"Presidential Secretariat Should Also Review Gambling Addiction Status"
Questions Korea National Oil Corporation on "Daewang Whalebone" Project:
"Are You Saying You Have Not Calculated
On December 17, President Lee Jaemyung attended a government work briefing session held at the Sejong Convention Center, where he questioned the Ministry of Trade, Industry and Energy and other ministries about the management of gambling addiction harms and the statistical basis for related data. He instructed, "Have the presidential office look into this and report back to me." Regarding the 'Daewang Whale' deep-sea exploration project in the East Sea, he repeatedly asked Korea National Oil Corporation whether they had estimated the business feasibility, such as the production cost per barrel, and pointed out, "It is hard to accept the claim that there are too many variables to calculate this."
President Lee asked the acting CEO of Kangwon Land, "According to news reports, there are quite a few people who come to the area, squander their money, and wander around. Is this true?" When the acting CEO responded, "The pattern of gambling addiction has improved significantly compared to the past," President Lee pressed further, asking, "Is that just your assertion? Do you have statistical evidence? Not just a feeling."
The acting CEO explained that they were operating a Mind Care Center for addiction prevention, but President Lee reiterated, "What I am asking is whether there is statistical evidence," and demanded a more concrete answer. When the acting CEO replied, "I do not know the data exactly," President Lee instructed, "Have the presidential office look into this separately and report back," adding, "We need to see whether the harms are increasing or decreasing, and what policy efforts are needed."
He continued, "I believe there are several terminal symptoms that signal a nation's decline. Ultimately, these would be things like civil unrest or external invasion, but internally, it is predatory lending that exploits poverty and gambling driven by the hope that 'things will somehow work out' that are concerning."
President Lee also questioned Kangwon Land's plans for new businesses. After the acting CEO explained that the company was pursuing "additional facilities and projects within the resort" as part of a 'global integrated resort and K-Hit project,' President Lee asked, "If you start these new initiatives, how many new jobs will be created?" The acting CEO replied that the current workforce of 5,500 could triple to 15,000.
The acting CEO then noted, "We are subject to regulations from the Ministry of Culture, Sports and Tourism. The regulations on casino floor space, number of days open, and other aspects are complex and need to be relaxed." President Lee responded, "If you do not relax the regulations, is the business not viable?" and added, "This is a risky business. We cannot afford for it to fail after starting." He advised, "Study this carefully," and continued, "If, after review, you believe the conclusion is unfair, bring the matter to the presidential office."
Regarding 'Daewang Whale,' President Lee to Korea National Oil Corporation: "Are you saying you have not calculated the development value?"
In his questions to Korea National Oil Corporation, President Lee referred to the deep-sea exploration project in the East Sea and asked, "Assuming oil and gas are discovered in the Daewang Whale area of the East Sea oil field, what is your estimate of the production cost per barrel?" When the corporation's representative replied, "We do not have an exact figure," and tried to explain based on past experience with the East Sea gas field, President Lee pressed, "Just give me the conclusion."
President Lee continued, "I am asking because it seems obvious that you would have calculated things like the estimated production cost based on reserves and the international oil price to determine whether development is worthwhile." When the corporation's representative replied, "There are so many variables that we do not really have a calculation," President Lee asked again, "Are you saying you have not done the calculation?"
President Lee further questioned, "Were you planning to invest hundreds of billions of won without knowing whether it would work or whether the project is feasible, just because there are many variables?" When the corporation's representative answered, "If oil field development succeeds, the return can be 20 or 30 times the investment," President Lee responded, "That is why you need to carefully assess the potential. You also need to thoroughly examine the costs," and once again emphasized, "I am asking for an accurate calculation."
After hearing a report that Korea National Oil Corporation is in a state of capital impairment, with assets of 20 trillion won and liabilities of 21 trillion won, President Lee also asked, "What feasible measures are there to escape capital impairment?" When the answer was, "We will implement strong restructuring," President Lee pointed out, "Selling off bad assets will not necessarily improve the asset status. That should already be reflected in the current asset valuation anyway."
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