[2020 National Audit] Opposition: "Ministry of Industry Unilaterally Halts Shin Hanul Units 3 and 4" VS Ministry of Industry: "Received Intent Survey"

Assemblyman Yoon Young-seok "Unilateral Decision Without Consultation with Korea Hydro & Nuclear Power"
Minister Sung Yoon-mo "Responded 'Difficult to Proceed with Normal Project'"
Heated Exchange Over Disclosure

A panoramic view of the Shin Hanul Units 3 and 4 site in Uljin, Gyeongsangbuk-do. (Photo by Korea Hydro & Nuclear Power)

[Asia Economy Reporter Moon Chaeseok] The government faced criticism for unilaterally deciding to halt the construction of Shin Hanul Units 3 and 4 in 2017 without consulting Korea Hydro & Nuclear Power (KHNP), the project operator. In response, Sung Yun-mo, Minister of Trade, Industry and Energy, denied the claim, stating that the ministry had received a letter of intent from KHNP following proper procedures.

On the 7th, Yoon Young-seok, a member of the People Power Party, pointed out during the Ministry of Trade, Industry and Energy’s audit at the National Assembly’s Industry, Trade, Small and Medium Enterprises Committee, "The ministry claimed that it consulted KHNP before deciding to halt construction of Shin Hanul Units 3 and 4, but KHNP responded that there was no such consultation."

Previously, the Shin Hanul Units 3 and 4 construction project was included in the 4th Basic Plan for Electricity Supply and Demand and received a power generation business permit from the government in February 2017. However, after the inauguration of the Moon Jae-in administration later that year, the government removed the project from the plan, leading to its suspension.

Rep. Yoon criticized, "The halt of Shin Hanul Units 3 and 4 is symbolic of the nuclear phase-out policy. Despite sunk costs reaching 780 billion won, KHNP had no choice but to stop the project. The government claims it completed consultations with KHNP, but their responses are contradictory."

Minister Sung countered, "According to the procedure for establishing the Basic Plan for Electricity Supply and Demand, power generators are asked to provide the status of their power facilities, which includes a letter of intent. At that time, the letter of intent stated that 'it is expected that normal project progress will be difficult'."

A heated exchange also occurred over whether to disclose the letter of intent.

Minister Sung added, "However, the letter of intent is confidential by principle, so it cannot be disclosed."

Rep. Yoon retorted, "Why is it confidential? Is it because it is not honorable enough to be disclosed?"

Minister Sung replied, "Confidentiality is the principle, which is why I mentioned it. Since there is a request, I will review how we can verify it and get back to you."

This content was produced with the assistance of AI translation services.