Urgent Need for Clear Compensation Standards Amid Arbitrary Offshore Wind Power Damage Settlements

Yeonggwang County Pushes Forward with 18 Offshore Wind Projects
Clashes Intensify with Fishermen over Compensation
Lack of Legal Standards Sends Compensation Soaring
Amounts Jump from 5 Million to 30 Million Won per Boat
Some Call for a "Compensation Manual" to Be Established

Yeonggwang County is actively promoting plans to link local tourism resources with renewable energy such as wind power. Photo is for illustrative purposes to enhance understanding of the article. Provided by Yeonggwang County.

Yeonggwang County in South Jeolla Province, where an offshore wind power project worth approximately 11 trillion won is underway, has been embroiled in ongoing controversy over compensation for fishermen. Although offshore wind power projects are often led by the government as part of the national strategic industry, the core issue of securing local community acceptance hinges on compensation for damages. However, since compensation agreements must be reached one-on-one between private companies and residents, it has proven difficult to find common ground.

Furthermore, the compensation process has seen the rise of brokers, leading to various side effects such as fluctuating compensation amounts, similar to an auction. There are growing calls for the urgent establishment of detailed manuals to handle compensation issues more efficiently.

According to local fishermen’s organizations and offshore wind power industry officials in Yeonggwang County as of September 18, a total of 18 offshore wind power projects (with a combined capacity of 11,123.9MW) are currently being promoted in the area. Most of these project sites are located around the Chil-san Sea near Yeonggwang, focusing on islands and tidal flats, which has resulted in increasing damage to fishermen.

Fishermen who rely on fishing for their livelihood are seriously concerned about declining profitability due to reduced catches and other factors. The main point of contention in the compensation negotiations for the ongoing offshore wind power projects in Yeonggwang is how to assess the extent of damage to fishermen.

As of September 18, there are 18 fishermen’s organizations in the Yeonggwang area. These organizations are broadly divided into two groups: traditional fishermen who primarily engage in fishing with boats, and hand-gathering fishermen who collect shellfish and other marine products from tidal flats.

Currently, there are about 670 registered fishing boats, and approximately 4,000 hand-gathering fishermen, according to estimates by the companies promoting the offshore wind power projects. These groups are demanding that appropriate measures be put in place to prevent damages, as the risk of disruption to fishing operations is increasing due to the offshore wind power development.

The problem is that the compensation standards related to offshore wind power are extremely unclear. While it is important to estimate the “actual amount of damage,” there is no clear framework for defining factors such as “decreased catch,” “areas where fishing is not possible,” and “long-term damages.”

In Yeonggwang, compensation per boat has already risen to around 30 million won. This is nearly a sixfold increase compared to the initial discussions, which started at around 5 million won. The compensation amounts have been determined arbitrarily, depending on how the criteria are interpreted.

Since securing local community acceptance is essential for the smooth progress of the project, project developers are left with only two options: accept the fishermen’s demands or abandon the project altogether. Some brokers have exploited this situation, reportedly inciting fishermen and driving up compensation amounts as if negotiating prices at an auction.

There is a growing demand for a more systematic compensation assessment system.

An official from a local offshore wind power company stated, “Offshore wind power is a future core strategic industry that can supply electricity not only to households but also to the industrial sector. Securing community consent is essential for the project, but it is difficult to reach a consensus when it comes to compensation for damages, primarily because there is no manual. The resulting conflicts are significant, so it is urgent to establish more detailed and comprehensive standards.”

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