Government Initiates Recovery of 68.1 Billion Won in 'Solar Power Corruption'... 150 People Referred for Investigation

by Ku Chaeeun

Published 18 Jul.2023 15:31(KST)

Updated 18 Jul.2023 16:22(KST)

On the 18th, the Anti-Corruption Promotion Team to Recover 68.1 Billion Won, Requests Investigation of 150 Illegal Cases

The government has referred 626 cases involving a total of 150 people to the Supreme Prosecutors' Office for investigation out of more than 5,000 illegal cases detected through an audit of the use of the Electricity Industry Infrastructure Fund projects (Electricity Fund), including solar power, during the Moon Jae-in administration.

On the 18th, the Anti-Corruption Promotion Team of the Office for Government Policy Coordination announced that following the results of the "Second Audit of Electricity Industry Infrastructure Fund Projects," including solar power subsidies, it has begun recovery efforts for a specified amount of 68.1 billion KRW (22.7 billion KRW in the first audit, 40.4 billion KRW in the second audit).

Park Gu-yeon, the First Vice Minister of State Affairs and Head of the Government Joint Anti-Corruption Promotion Team at the Office for Government Policy Coordination, is announcing the results of the second inspection of the power industry infrastructure projects, including solar power generation, on the morning of the 3rd at the Government Seoul Office in Jongno-gu, Seoul. The Anti-Corruption Promotion Team formed a joint inspection task force with related ministries such as the Ministry of Trade, Industry and Energy and the Ministry of Agriculture, Food and Rural Affairs, conducting the second inspection and identifying a total of 5,359 cases of illegal or improper matters amounting to 582.4 billion KRW.

In particular, regarding improper loans, the government plans to monitor the progress of investigations and related judicial procedures on a case-by-case basis and proceed with additional recovery procedures by relevant agencies according to the outcomes.

On the same day, the government formed a Recovery Task Force (TF) with related agencies and held its first meeting. The Recovery TF is led by Lee Deok-jin, Deputy Director of the Government Joint Anti-Corruption Promotion Team at the Office for Government Policy Coordination (at the director level), and includes the Ministry of Trade, Industry and Energy, Ministry of Agriculture, Food and Rural Affairs, Financial Supervisory Service, Electricity Fund Project Group, Korea Energy Agency, and Korea Institute of Energy Technology Evaluation and Planning.

Earlier, on the 3rd, the government confirmed 5,359 cases involving 582.4 billion KRW of illegal and improper expenditures in the second audit of the Electricity Fund. The audit targeted the Korea Electric Power Corporation Electricity Fund Project Group, Korea Energy Agency, Korea Electrical Safety Corporation, local governments, and Korea Institute of Energy Technology Evaluation and Planning.

The audit revealed methods such as inflating solar power facility installation project costs through fake tax invoices to secure excessive loans, or disguising loans as agricultural and livestock production facilities like mushroom farms and insect breeding farms without actual cultivation.

By sector, the largest scale of misconduct was found in the renewable energy financial support projects, including solar power, with a total of 3,010 cases involving 489.8 billion KRW of improper activities detected over three years from 2019 to 2021.

During the first audit in September last year, the Office for Government Policy Coordination also investigated the Electricity Fund Project Group, Korea Energy Agency, and 12 local governments, uncovering 2,267 cases involving 261.6 billion KRW of illegal and improper expenditures, and referred 376 people in 1,265 cases for investigation.