Ministry of Trade, Industry and Energy Requests Reconsideration of Audit on Early Shutdown of Wolsong Unit 1... Excluding Data Deletion

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chae-seok] The Ministry of Trade, Industry and Energy announced on the 18th that it has requested a reconsideration in accordance with Article 36, Paragraph 2 of the Board of Audit and Inspection Act regarding the audit of the early shutdown of Wolseong Unit 1. The ministry did not mention the part where an employee deleted data, obstructing the audit.

Earlier, on the 20th of last month, the Board of Audit and Inspection announced the results of the audit on the "validity of the decision to shut down Wolseong Unit 1 early," conducted last October at the request of the National Assembly.

The Board of Audit and Inspection pointed out that "the economic feasibility was unreasonably underestimated, the process of deciding the early shutdown timing was unfair, and the Ministry of Trade, Industry and Energy's involvement in the economic feasibility evaluation undermined its reliability."

The ministry stated, "We have decided to request a reconsideration because we believe there are aspects where the audit report's findings differ in judgment or the opinions of the investigated parties were not reflected."

First, regarding the economic feasibility evaluation, the ministry said, "A review is necessary concerning the judgment that the economic feasibility of Wolseong Unit 1 was 'unreasonably underestimated.'"

According to the ministry, the Board of Audit and Inspection criticized in the audit report that the sales price was unreasonably evaluated because the utilization rate forecast used to calculate the projected price was modified without adjusting the projected price accordingly.

The ministry argues that to do so would require arbitrary assumptions about the utilization rate forecast, which could raise another issue of "subjective adjustment."

They also emphasized that special circumstances existed that inevitably led to a low forecast of future utilization rates for Wolseong Unit 1.

The ministry stated, "We have a different judgment regarding the audit result pointing out the need to adjust the projected price."

Furthermore, they added, "Although price adjustments were not made during the economic feasibility evaluation process, objectivity and reliability were supplemented through sensitivity analysis. Even if there are some shortcomings, it cannot be said that the economic feasibility was unreasonably evaluated."

Regarding the sensitivity analysis, it was explained that Korea Hydro & Nuclear Power changed the projected price by -20% to +20% while conducting the economic feasibility analysis.

The ministry said, "If policy cost increase factors such as post-processing costs of nuclear power plants, in addition to labor and maintenance costs, had been sufficiently reviewed during the audit, the conclusion of the audit report that costs were underestimated could have been different."

Regarding the early shutdown, the ministry emphasized, "A review is necessary concerning the judgment that the early shutdown process, including the timing decision and economic feasibility evaluation, was unfair."

On the decision of shutdown timing and administrative guidance, the ministry said, "Considering the intent of the national agenda, the shutdown timing was judged from a policy perspective, and we believe that the principles of administrative guidance were observed when conveying policy decisions to KHNP."

Regarding involvement in the economic feasibility evaluation, the ministry stated, "Communication and consultation between the government and related agencies are essential in the process of implementing new policies, and this cannot be seen as undermining the reliability of the economic feasibility evaluation."

The ministry said, "We plan to actively explain these grounds for judgment to the Board of Audit and Inspection during the reconsideration process."

The part concerning the deletion of data by a ministry employee was excluded from the request. This was the only matter for which the Board of Audit and Inspection requested disciplinary action.

When a reconsideration is requested, the Board of Audit and Inspection reviews the audit content again in a department different from the one that originally conducted the audit.

The results of the reconsideration will be notified to the ministry within two months from the time of the request. Generally, unless new facts emerge, it is rare for the results to change through reconsideration.

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