Kwon Hyangyup Proposes "Great Whale Prevention Bill" to Strengthen Pre-Verification of Resource Development

Hyangyup Kwon, a member of the National Assembly from the Democratic Party of Korea (representing Suncheon, Gwangyang, Gokseong, and Gurye in Jeollanam-do), announced on the 29th that she has sponsored the so-called "Great Whale Prevention Bill" (Partial Amendment to the Korea National Oil Corporation Act) to strengthen the pre-verification procedures for domestic resource development projects by Korea National Oil Corporation (hereafter referred to as KNOC) and to enhance the objectivity of the evaluation committee’s operation.

Under the current law, an evaluation committee is established to impartially and objectively review KNOC’s business execution, modifications, and asset changes. The law stipulates that the evaluation committee must review overseas resource exploration and development projects before they are approved by the board of directors.

Hyangyeop Kwon, Member of the Democratic Party of Korea.

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However, with recent projects such as the Great Whale project and other domestic resource exploration and development initiatives being pursued without review by the evaluation committee, issues have been raised over the lack of pre-verification procedures, as well as concerns about the fairness and expertise in the formation of evaluation institutions and advisory panels.

The promising structure of the Great Whale, which the first drilling revealed to be composed of 94% water, was evaluated by Actgeo, a one-person company with annual sales of only KRW 30 million. KNOC paid Actgeo approximately KRW 4.3 billion for two rounds of evaluation services. The overseas advisory panel that verified the Great Whale project included Actgeo’s advisor Abreu, who was a former colleague, and had academic ties with the KNOC Donghae Exploration Team Leader.

Additionally, it was pointed out that the domestic advisory panel was also connected to the KNOC Donghae Exploration Manager as co-authors of academic papers, revealing an aspect of the so-called "oil cartel."

In response, the amendment includes domestic resource exploration and development projects as subjects for evaluation committee review, requiring pre-evaluation and approval procedures by a committee composed of external experts.

Furthermore, by establishing criteria for disqualification, avoidance, and recusal of evaluation committee members, the amendment aims to prevent conflicts of interest and reinforce the objectivity and transparency of the committee’s operation.

Hyangyup Kwon stated, “With the so-called ‘oil cartel’ verifying each other's work, the Yoon Suk Yeol administration’s Great Whale project led to a massive amount of taxpayers’ money sinking into the deep sea off Donghae. We must prevent opaque resource development and establish an objective, transparent pre-verification system.”

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