[Heavy Industry ON] Wind Power Industry Ahead of Chairman Election... Supply Chain Issues Resurface

Views inside and outside the industry are divided over who should become the next chairman of the Korea Wind Energy Industry Association. As Myoungwoon Industrial Development has entered the race for the chairmanship, some parties are voicing concerns.

According to industry sources on the 26th, the association plans to hold a board meeting on the 27th to conduct a vote to elect the next chairman company. Myoungwoon Industrial Development is reported to be expressing a strong intention to assume the chairmanship. If the agenda is approved at this board meeting, CEO Kim Ganghak of Myoungwoon Industrial Development will become the eighth chairman of the association after the regular general meeting in March.

However, some in the industry are calling for caution. Since the energy industry is directly linked to national energy security and supply chains, they argue that controversies raised during past business processes must be thoroughly reviewed.

An offshore wind substructure manufactured by SK Ocean Plant is installed at the Changhua County offshore wind farm in western Taiwan. The Asia Business Daily DB

Myoungwoon Industrial Development previously faced controversy for using some Chinese-made equipment when it was promoting the Nakwol Offshore Wind Power Project in Yeonggwang, Jeollanam-do. For the turbines, it adopted a model from a company acquired by the Chinese state-owned turbine manufacturer Goldwind, and for the external subsea cable connecting the offshore site to the onshore grid, it used products from the Chinese company Hengtong Optic-Electric.

There was also a case at the time in which a Chinese-flagged installation vessel proceeded with work without prior government approval, was caught by the Korea Coast Guard, and construction was temporarily halted. During this process, suspicions were raised over whether Chinese capital was participating in the project.

Myoungwoon Industrial Development applied once for the chairmanship in January, but the recommendation committee decided not to approve the bid. It is known to have reapplied in the reopened recruitment process.

A wind power industry official said, "Because the chairman company represents the industry, symbolism and messaging are important," adding, "At a time when strengthening the domestic supply chain has emerged as a key task, there needs to be sufficient consensus among industry members."

Regarding this, Myoungwoon Industrial Development’s position is that, in a situation where the chairmanship has remained vacant for a long time because no companies applied despite several public calls, some of the controversies are either inconsistent with the facts or have already been resolved, and that it made a decision for the development of the industry at a difficult time when there was no suitable candidate.

On the supply chain controversy, Myoungwoon’s side countered, "In the Nakwol Offshore Wind Power Project, about 70% of the total investment flows to domestic companies," adding, "For the turbines as well, we adopted a Vensys model based on German technology, and for the internal network cables we use products from Taihan Cable, focusing our efforts on revitalizing the domestic supply chain."

On the controversy over the Chinese installation vessel and Chinese capital, it said, "Due to a shortage of domestic installation vessels, there was a cabotage dispute in the process of chartering a ship, but we later resolved the issue by changing the vessel’s flag in consultation with the government," and added, "Allegations of participation by Chinese capital were also found to be groundless as a result of a factual investigation."

On the chairman selection process, the company maintains that it reapplied through a reopened call following procedures in accordance with the articles of association, and that it has fully explained its qualifications and capabilities to the recommendation committee and the board.

A Myoungwoon Industrial Development official said, "As a specialized development company directly carrying out the country’s largest offshore wind power project, we aim to reinvigorate the depressed wind power market based on our on-site experience," adding, "If we are chosen as the chairman company, we will devote ourselves to helping the domestic wind power industry take off again and to strengthening the overall ecosystem."

This election process is expected to develop into a broader discussion that goes beyond the issues of a single company, addressing what direction the domestic wind power industry will choose in terms of supply chains and the industrial ecosystem.

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