Additional 582 billion won illegally used for renewable energy under Moon gov't: probe

Former President Moon Jae-in speaks at a renewable energy event held in Gunsan, North Jeolla, in 2018. [YONHAP]

Government funds amounting to 582.4 billion won ($442.2 million) were additionally found to have been illegally or wrongfully used in renewable energy projects, including the installation of solar panels, during the previous Moon Jae-in administration, officials said Monday.

The Office for Government Policy Coordination under the Prime Minister's Office announced that a nationwide investigation has identified an additional 5,359 cases of irregularities in the spending of government energy funds between 2019 and 2021.

The office has set up a task force to look into corruption allegations surrounding the spending of subsidies as part of the promotion of renewables, which was one of the key agenda items of the Moon administration.

The extensive investigation came after a previous sample investigation, which was limited to a specific region. It found 2,267 illegal fund management cases across 12 local governments, amounting to 261.6 billion won in misused government funds.

The results of both investigations showed that 7,626 irregularities over the entire five-year period of the previous administration had resulted in 844 billion won of government funds being illegally or wrongfully used.

The extensive investigation also examined major energy-related government agencies, with most cases related to illegal loan execution, unlawful subsidy allocation and lax management of R&D projects.

The office reported that 489.8 billion won of government funds were illegally loaned to solar energy projects through fake tax invoices and other methods.

Additionally, some cases involved illegal loans extended to deploy solar energy panels on agricultural land hosting mushroom or insect breeding facilities, which can be built without converting farmland for other uses.

The outcome also revealed that 26.6 billion won was unfairly used in 172 R&D projects in the energy sector between 2018 and 2022, utilizing various methods.

The government said it has sought a redemption of 40.4 billion won and investigations into 626 cases. Government officials allegedly involved in 85 cases will face reprimand.

Yonhap