Additional 582.4 Billion KRW Misuse Detected in Power Fund Including Solar Energy... Ministry of Industry Announces "Comprehensive Innovation in Renewable Energy Policy"

Following the first inspection, a total of 844 billion KRW in misconduct detected
‘Renewable Energy Policy Innovation TF’ held on the 4th

On the 3rd, following the Prime Minister's Office's additional detection of misconduct cases amounting to a total of 582.4 billion KRW (5,359 cases) in the solar power and other electric power industry fund projects, the Ministry of Trade, Industry and Energy announced the formation of a 'Renewable Energy Policy Innovation Task Force (TF)' chaired by Second Vice Minister Kang Kyung-sung to present innovation measures for the entire renewable energy business.

The Ministry of Trade, Industry and Energy stated on the same day, "As the competent ministry, we take the inspection results of individual electric power fund projects such as renewable energy financial support projects seriously," adding, "We will strengthen management and supervision of the projects and promptly implement follow-up measures such as recovery." The TF is scheduled to begin operations on the 4th.

According to the Government Joint Corruption Prevention Promotion Team of the Prime Minister's Office, the second inspection of the electric power fund confirmed illegal and improper execution cases amounting to 582.4 billion KRW across 5,359 cases. This inspection was conducted as a follow-up to the first announcement in September last year, targeting the Korea Electric Power Corporation Electric Power Fund Project Group, Korea Energy Agency, Korea Electrical Safety Corporation, local governments, Korea Institute of Energy Technology Evaluation and Planning, among others. Including the first inspection results, a total of 844 billion KRW (7,626 cases) worth of illegal matters have been detected.

The electric power fund projects support the dissemination of renewable energy, support for areas surrounding power plants, and electric power research and development (R&D) projects, representing a large-scale project with approximately 12 trillion KRW invested over five years. Despite annual control through National Assembly settlement reviews and audits by external organizations such as the Board of Audit and Inspection, numerous cases of illegal and improper use have been pointed out through inspections that began in September 2021.

The second inspection results revealed illegal matters amounting to 489.8 billion KRW (3,010 cases) solely in the renewable energy financial support sector. The types of violations included ▲false or paper tax invoices ▲underreporting of tax invoices ▲excessive loans compared to supporting amounts ▲violations of the Farmland Act ▲recommendations for non-eligible recipients, and failure to return funds.

In response, the Ministry of Trade, Industry and Energy plans to mandate the submission of tax information provision consent forms from applicants and construction companies by July and to establish a system to verify changes in tax invoices. Regarding violations of the Farmland Act, support will be provided only after confirming actual cultivation (sales evidence), excluding mushroom farms and insect breeding farms where cultivation confirmation is difficult.

Additionally, the second inspection newly detected illegal matters amounting to 26.6 billion KRW (172 cases) in electric power R&D and 6.4 billion KRW (40 cases) in rural electric supply projects. The ministry plans to prepare R&D settlement operation guidelines and introduce pilot competitive bidding for electric supply projects.

The ministry is also recovering 11.6 billion KRW in support funds for areas surrounding power plants that have been carried over for more than two years after subsidy disbursement. Of this, 7.8 billion KRW has already been recovered.

An official from the Ministry of Trade, Industry and Energy explained, "We will promptly revise six ministry regulations and one dedicated agency regulation, and form a separate joint TF involving the Prime Minister's Office, the Ministry of Trade, Industry and Energy, the Electric Power Fund Project Group, and the Korea Energy Agency. For cases identified for recovery through this inspection, we will carry out recovery measures to the end through all necessary procedures."

The ministry also plans to review the overall structure of the electric power fund. A ministry official said, "We will ensure that the electric power fund is not concentrated in specific sectors and that it is organized and operated in line with national policy tasks. We will propose improvement measures and actively explain them during future consultations with budget authorities and the National Assembly's review and approval process."

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