Ministry of Industry: "Opposition Party Cuts Entire 'Daewang Whale' Budget... Means Giving Up Energy Security"

The Ministry of Trade, Industry and Energy expressed 'serious concerns' over the 2025 Ministry of Industry budget plan, which was unilaterally approved by the opposition party, including the full cut of 49.7 billion KRW for deep-sea gas field exploration drilling in the East Sea.

On the 3rd, Park Seong-taek, the 1st Vice Minister of the Ministry of Industry, held a briefing at the Government Complex Sejong regarding the '2025 Ministry of Industry budget plan' and stated, "We would like to inform you of the serious concerns about the opposition party's unilateral reduction in the National Assembly Budget and Accounts Committee on the 2025 budget plan and its impact on Korea's industrial, energy, and trade policies." He added, "As a result of the opposition party's unilateral approval, the 2025 Ministry of Industry budget plan stands at 11.4336 trillion KRW, which is 67.5 billion KRW less than the government proposal submitted to the National Assembly on September 2."

Park Sung-taek, First Vice Minister of the Ministry of Trade, Industry and Energy. (File photo)

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In particular, Vice Minister Park expressed concerns about the full cut of 49.7 billion KRW allocated for deep-sea gas field exploration drilling in the East Sea. He said, "With neighboring countries such as China drilling aggressively with 48,779 wells and Japan with 813 wells, Korea, which is significantly lagging behind, blocking attempts to confirm domestic resources in our territory is tantamount to giving up energy security." He emphasized, "It is only natural for the government to support the first well exploration drilling by the state-owned Korea National Oil Corporation, and this is the government's responsibility."

The financial condition of the Korea National Oil Corporation as of the end of last year shows total liabilities of 19.6 trillion KRW and a capital deficit of 1.3 trillion KRW, remaining in a state of capital erosion since 2020. Despite these poor financial conditions, the corporation continues high-risk exploration projects under the Korea National Oil Corporation Act on behalf of the nation for the development of petroleum resources and the advancement of the national economy.

Vice Minister Park pointed out, "Resource development carries a high risk of failure, so even when private companies undertake development projects, the government shares the risk through success-contingent loans." He criticized, "Although all governments since 2000 have supported investment in oil field development, suddenly halting support by fully cutting the budget cannot be seen as a rational decision."

Additionally, Vice Minister Park expressed concerns that the opposition party's unilateral handling of the semiconductor budget cuts has made further support for Korean industry difficult. He said, "Protecting and nurturing the semiconductor industry is directly linked to national security, and without strategic national industries like semiconductors, there is neither public welfare nor a robust national budget." He added, "Considering the severe reality faced by Korea and its industries, I hope the reduction plan will be withdrawn and a budget reflecting the voices of the people and businesses will be created."

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