[2020 National Audit] Opposition: "Don't You Know the Core of Optimus?"... Namdong Power Generation: "Nothing to Hide"

October 15 Mountainous Area Audit... People Power Party's Repeated Probing and Namdong Power Denials

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] "In the business selection meeting review materials, Company A is listed as the main party. It is recorded. Why try to hide Company A?" (Lee Joo-hwan, People Power Party lawmaker)

"We have never tried to hide anything about Optimus (the asset management-related case). I do not understand what exactly we are supposed to have hidden about Company A, as the lawmaker questioned." (Yoo Hyang-yeol, President of Korea South-East Power)

On the 15th, during the National Assembly Industry, Trade, Energy, Small and Medium Enterprises Committee (Sanjoongwi) audit, the People Power Party lawmakers repeatedly questioned President Yoo about Korea South-East Power’s involvement in the Optimus suspicions throughout the day.

The Optimus Management redemption suspension incident involved raising 1.2 trillion won from 2017 until June this year by investing in public institution accounts receivable, then using the funds for acquiring insolvent companies and fund recycling, causing damage to about 2,900 investors.

According to documents confirmed by the Seoul Central District Prosecutors’ Office, internal Optimus documents reportedly include a passage stating, "Advisor Lee Heon-jae (former Deputy Prime Minister for Economic Affairs) recommended and is progressing with the biomass power plant project investment with Korea South-East Power."

People Power Party lawmakers raised suspicions that former Deputy Prime Minister Lee and Company A’s CEO B had a close relationship, dining together over a period of 10 years. According to the lawmakers, Company B is included as a Korean shareholder in Company C, which had signed a Memorandum of Understanding (MOU) with Korea South-East Power. Korea South-East Power explained that Company C and Company D, another collaborating firm, were perceived to have a cooperative relationship locally.

Lee Cheol-gyu, a People Power Party lawmaker, questioned, "Company C was established in January last year, has no business performance or sales, and was invested with only about 500 baht (approximately 18 million won). It has four Thai and three Korean shareholders registered. Can you claim not to know who these Korean shareholders are?" President Yoo replied, "We did not ascertain that."

Lee said, "Among the Korean shareholders of Company C is a shareholder from Company A, which you are trying to hide. CEO B of Company A has a close relationship with former Deputy Prime Minister Lee, and President Yoo knows this but deliberately excluded Company A and brought in Company D to hide this fact." President Yoo responded, "We have nothing to hide about this project."

Fellow party member Lee Joo-hwan said, "Company A is a supplier to Korea South-East Power, and the business proposal includes the word 'consortium,' and in the business selection review materials, Company A is listed as the 'main party.' However, Company A disappears, and Company D is said to have done all the business. Have you heard that former Deputy Prime Minister Lee recommended this company to participate in Korea South-East Power’s project?" President Yoo answered, "I also find that very regrettable."

Lee pressed, "CEO B of Company A has ties with Deputy Prime Minister Lee, and because such a person was the main party pushing the project, Korea South-East Power has become discouraged and keeps trying to conceal it. Even if Optimus, which is just a financial company, is gone, wouldn’t the project proceed if another financial company invested? Why keep trying to hide it?" President Yoo replied, "We have not hidden anything about Optimus."

Lee further asked, "In the business selection review materials submitted by Korea South-East Power, Company A is named, but an employee said that was a mistake and that Company D did all the work, as recorded in the morning audit. Haven’t you heard that recording? Doesn’t it look like you are trying to cover up Company A, which is involved with Optimus?" President Yoo answered, "Company A is listed in the business proposal, and we have no reason to hide that."

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