'Motel CEO' Hansuwon Outside Director... In Resume, "Air Conditioner Cleaning for Carbon Neutrality"

Korea Hydro & Nuclear Power's New Outside Director Emphasizes 'Motel Management Experience' in Resume
"Practiced Carbon Neutrality through Air Conditioner Cleaning... Selected as an Excellent Suicide Prevention Business"
No Experience or Expertise in the Power Industry... Criticized as a "Parachute Appointment"

A panoramic view of the Gori Nuclear Power Plant located in Gijang-gun, Busan.
[Photo by Asia Economy DB]

[Asia Economy Sejong=Reporter Lee Jun-hyung] It has been revealed that the newly appointed outside director of Korea Hydro & Nuclear Power (KHNP) has no experience related to the power industry, including nuclear power generation, in their self-introduction. The outside director in question is a former executive of the Liberty Korea Party’s Pohang North District Member Council who has operated pubs and motels, drawing criticism as a "parachute appointment."

According to materials submitted by KHNP to the office of Democratic Party lawmaker Jeong Il-young on the 9th, outside director A of KHNP wrote in their self-introduction, "I am currently implementing various methods for carbon neutrality, such as cleaning air conditioner filters and unplugging unused plugs at the lodging business I operate." This is interpreted as an attempt to meet one of KHNP’s outside director selection criteria, which includes "understanding of government policies related to the power industry."

A was appointed as a new outside director of KHNP on the 1st of this month. When KHNP appointed A, who has operated pubs and motels in Pohang, Gyeongbuk Province, as a new outside director, questions arose both inside and outside the industry. This is because A has no experience related to KHNP’s main businesses, such as nuclear power plants. There were also criticisms that A’s background as an executive of the Liberty Korea Party’s Pohang North District Member Council in 2017 suggested a parachute appointment.

Self-introduction letter of Mr. A, newly appointed outside director of Korea Hydro & Nuclear Power on the 1st of this month.
[Photo by Jeong Il-young, Office of the Democratic Party of Korea]

A also emphasized their experience operating lodging businesses in their work performance plan. In the plan, A stated, "The lodging business I currently operate was selected as an excellent business in the '2019 Carbon Monoxide Poisoning Suicide Prevention Support Project' and received a commendation from the Minister of Health and Welfare," adding, "Based on this, I will strengthen my capabilities to help KHNP operate nuclear power plants more safely." A also outlined KHNP’s management innovation plan, saying, "We will discover various projects through promotions such as newspapers and light-emitting diode (LED) advertisements."

The work performance plan is a document that candidates for outside directors of public institutions submit along with their application and self-introduction during the appointment process. Candidates diagnose key issues of the public institution themselves and describe specific work plans and operational directions, making it a core document in the hiring process for outside directors of public institutions. Initially, KHNP specified in the outside director recruitment announcement that applicants must have "experience working in the power industry" and "understanding of the special characteristics and importance of the power industry and government policies."

The work plan of Mr. A, newly appointed outside director of Korea Hydro & Nuclear Power on the 1st of this month.
[Photo by Jeong Ilyeong, Office of the Democratic Party of Korea]

Given these circumstances, controversy over A’s expertise is growing. It is pointed out that experience operating motels and other lodging businesses is unrelated to the expertise required of KHNP outside directors.

There are also views that there may have been procedural flaws in KHNP’s outside director appointment process. KHNP’s non-executive directors are finalized after a public recruitment, followed by deliberations by KHNP’s executive recommendation committee and the Ministry of Strategy and Finance’s Public Institution Management Committee. Lawmaker Jeong said, "There is no sign of expertise related to KHNP’s work in A’s self-introduction or work performance plan," adding, "The institutional loophole where KHNP recommended a person with no experience or expertise in the power industry as an outside director and the Public Institution Management Committee failed to filter this out must be corrected."

Meanwhile, the term for KHNP outside directors is two years, with an annual salary of about 30 million KRW.

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