'Albakgi Controversy' Han Su-won President... Why Did the Ministry of Industry Ultimately Remain Silent?

Jung Jae-hoon, President of Korea Hydro & Nuclear Power, Effectively Fails to Secure Reappointment... Term Expires on the 4th
Ministry of Trade, Industry and Energy Notified KHNP of Reappointment in January but Did Not Submit to Blue House
Burdened by 'Nuclear Phase-Out Entrenchment Controversy'... Prosecutors' 'Blacklist Investigation' Also Influential
Expected to Retain Presidency Until Yoon's Inauguration... Voluntary Resignation Prohibited During Indictment

Jung Jae-hoon, President of Korea Hydro & Nuclear Power, attended the National Assembly's inspection on Korea Electric Power Corporation held by the Industry, Trade, Energy, Small and Medium Enterprises Committee on October 12 last year, and received a report before the inspection began. Photo by Yoon Dong-joo doso7@

[Asia Economy Sejong=Reporter Lee Jun-hyung] Jeong Jae-hoon, President of Korea Hydro & Nuclear Power (KHNP), has effectively failed in his attempt for reappointment. Although Jeong's term is about to expire, the Ministry of Trade, Industry and Energy (MOTIE) has not submitted the reappointment proposal to the Blue House. Attention is focused on the MOTIE, which had informed KHNP of Jeong's reappointment plan but has not expressed any special position since then.

According to related government departments on the 2nd, MOTIE had not submitted Jeong's reappointment proposal to the Blue House as of the previous day. Since Jeong's term ends on the 4th and considering the time required for MOTIE's proposal and the Blue House's approval, the reappointment is practically considered to have failed. For the extension of the term of a public institution president under MOTIE, the process requires a resolution at the shareholders' meeting, a proposal by the MOTIE minister, and approval by the appointing authority, the President. However, Jeong can maintain his position until a successor is appointed even after his term expires.

MOTIE has not issued any special statement regarding Jeong's status. Originally, MOTIE should have proposed the reappointment to the Blue House for approval or opened a recruitment for a successor before Jeong's term expired. Earlier, KHNP held a board of directors and shareholders' meeting in February this year and passed the resolution for Jeong's term extension. However, MOTIE has not responded to Jeong's reappointment proposal for over a month and has neither submitted the proposal nor proceeded with the recruitment process for a successor.

Initially, it was MOTIE that attempted Jeong's reappointment. In January this year, MOTIE notified KHNP of Jeong's one-year term extension. KHNP passed the reappointment proposal at the board meeting about a month later for this reason. Jeong, who took office in April 2018, had already completed a three-year term last year and was serving a one-year extension.

President-elect Yoon Suk-yeol is attending the first plenary meeting of the National Unity Committee held at the Presidential Transition Committee in Samcheong-dong, Seoul, on the 1st. / Photo by Transition Committee Press Corps

MOTIE's Complications Following Yoon's Election

The complications at MOTIE began when President-elect Yoon Seok-yeol, who pledged to scrap the 'nuclear phase-out policy,' was elected. From MOTIE's perspective, proposing the reappointment of Jeong, a key figure in the nuclear phase-out policy, to the Blue House during the transition period before the new government takes office is inevitably burdensome. Indeed, Jeong is considered one of the leading figures who spearheaded the nuclear phase-out policy under the current administration. During his term, Jeong significantly reduced KHNP's nuclear power organization and even advocated removing 'Nuclear Power' from the name 'Korea Hydro & Nuclear Power.' Additionally, Jeong is currently undergoing a first trial related to the economic manipulation case of the Wolseong Unit 1 nuclear reactor.

However, it is not easy for MOTIE to take the initiative in replacing the KHNP president. Since President-elect Yoon has not yet taken office, MOTIE cannot ignore the Blue House's stance. In effect, MOTIE has been caught in a dilemma for the past month.

Moreover, the 'preemptive appointment controversy' dealt a decisive blow. In mid-last month, when Jeong's reappointment attempt became known, criticism arose that it was a 'preemptive appointment of nuclear phase-out personnel' during the final days of President Moon Jae-in's term. Subsequently, similar controversies over preemptive appointments emerged in other public institutions, leading to a tense standoff between the Blue House and the Presidential Transition Committee.

Prosecutors Conduct Search and Seizure at Ministry of Trade, Industry and Energy over 'Blacklist Suspicion'
(Sejong=Yonhap News) Reporter Kim Juhyung = Prosecutors investigating the so-called 'Ministry of Trade, Industry and Energy blacklist suspicion' case conducted a search and seizure at the Ministry of Trade, Industry and Energy.
On the 25th, officials were busy moving around the nuclear power-related department at the Ministry of Trade, Industry and Energy in the Government Sejong Complex. 2022.3.25
kjhpress@yna.co.kr
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Burden of 'Blacklist Allegations'

Ultimately, MOTIE chose 'silence.' This decision was based on the judgment that whether proposing Jeong's reappointment to the Blue House or proceeding with replacement procedures, it would inevitably become entangled in conflicts between the old and new powers. Given the overt confrontation between the Blue House and the Transition Committee over the 'preemptive appointment controversy,' any action by MOTIE related to Jeong's reappointment would inevitably place it at the center of controversy. This is why MOTIE has recently dismissed the reappointment proposal as "not a confirmed matter."

It is also analyzed that the prosecution's recent sharp focus on the 'nuclear phase-out blacklist allegations' is not unrelated to MOTIE's response. The blacklist allegations claim that MOTIE pressured presidents of power generation public enterprises who did not align with the current administration's 'code' to resign in order to push forward the nuclear phase-out policy. The prosecution has recently intensified investigations into public officials who led the current administration's policies, including conducting surprise raids on MOTIE and power generation public enterprises in connection with the blacklist allegations.

However, there is a high possibility that Jeong will retain his position as head of KHNP until President-elect Yoon's inauguration. According to the 'Act on the Management of Public Institutions,' public institution executives under indictment are prohibited from resigning voluntarily. This means that unless MOTIE takes a position first, Jeong will maintain his presidency until a successor is appointed.

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