Whatever the audit results of Wolsong Unit 1 next week, the aftermath seems likely to be severe

Early Closure 'Problematic' Announcement
Legal Action Against KHNP and Ministry of Industry
Even If 'No Problem' Conclusion Reached
Aftermath of Data Manipulation Controversy

Chairman Choi Jae-hyung of the Board of Audit and Inspection tightly closes his eyes while responding to lawmakers' questions during the National Assembly's Legislation and Judiciary Committee's audit of the Board of Audit and Inspection held on the 15th. (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] As the Board of Audit and Inspection (BAI) is set to announce next week the results of its audit on the early shutdown of Korea Hydro & Nuclear Power's Wolseong Nuclear Power Plant Unit 1, significant repercussions are expected regardless of the conclusion.

If the audit finds 'problems' with the early shutdown, legal actions may be taken against KHNP and the Ministry of Trade, Industry and Energy (MOTIE), potentially affecting the lifespan extensions and early shutdowns of Kori Units 2-4 and Hanbit Unit 1 in the future.

This would also weaken the justification for the Moon Jae-in administration's nuclear phase-out policy. Even if the conclusion is that there are 'no problems,' opposition parties are likely to launch intense attacks starting with the MOTIE comprehensive parliamentary audit scheduled for the 22nd, focusing on controversies such as data manipulation by MOTIE during the audit process.

According to the energy industry on the 16th, the core issue in the BAI audit results, expected as early as the 19th, is whether there were problems with the economic feasibility evaluation that justified the early shutdown of Wolseong Unit 1.

If the audit finds issues with the economic feasibility evaluation, the legitimacy of the Moon administration's nuclear phase-out policy could be fundamentally shaken.

If it is revealed that both the process and the basis for shutting down a nuclear plant, which underwent facility improvements costing over 700 billion won, were flawed, political and social distrust and backlash against the nuclear phase-out policy are likely to intensify.

In the political sphere, not only the technical issues of the economic feasibility evaluation of Wolseong Unit 1 but also the validity of the Moon administration's nuclear phase-out policy are expected to be challenged.

Attention will also focus on the lifespan extensions of Kori Unit 2 (license expiration in 2023), Kori Unit 3 (2024), Kori Unit 4 (2025), and Hanbit Unit 1 (2025).

Under current law, applications for lifespan extension can be submitted up to five years before license expiration, but KHNP has not applied for lifespan extensions for any of these reactors.

There will also be keen interest in whether legal penalties will be imposed on the KHNP president and management, as well as MOTIE officials involved in the early shutdown of Wolseong Unit 1. Those responsible for policy decisions may face charges such as abuse of authority and breach of trust.

For abuse of authority to lead to criminal punishment, Article 123 of the Criminal Act must apply. It is established when a public official abuses their authority to compel others to perform duties they are not obligated to or obstructs the exercise of rights. Penalties include imprisonment for up to five years, suspension of qualifications for up to ten years, or fines up to 10 million won.

Depending on the audit results, MOTIE employees could face charges such as perjury and violations of the Board of Audit and Inspection Act (punishable by imprisonment of up to one year or fines up to 10 million won). KHNP President Jung Jae-hoon stated at the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee audit the previous day, "If I must take legal responsibility, I will certainly do so."

If the audit concludes that there were no problems with the early shutdown of Wolseong Unit 1, the government's 'nuclear phase-out drive' is expected to accelerate.

In the 9th Basic Plan for Electricity Supply and Demand, scheduled to be announced within this year, adjustments to the nuclear power supply ratio and various incentives in major new and renewable energy policies, including the 5th Basic Plan for New and Renewable Energy, are expected to face less resistance.

However, even in this case, criticism from opposition parties is expected to be fierce. They are anticipated to focus heavily on related issues starting with the MOTIE comprehensive audit on the 22nd.

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