Kepco and public employees accused of illegally exploiting solar energy initiatives

Choi Jae-hyuk, an official at the Board of Audit and Inspection, announces its investigation into renewable energy schemes, in Seoul on Tuesday. [YONHAP]

More than 200 employees of state-owned energy companies and institutions including Korea Electric Power Corp. (Kepco), and government officials at the Ministry of Trade, Industry and Energy are accused of illegally benefiting from the solar energy initiatives driven by the Moon Jae-in government.

Some leveraged undisclosed information in buying lands designated for the construction of solar farms while others were employed by solar energy companies that received unauthorized favors.

Moon’s presidential office was also found to have pressured the government department to collaborate in advancing its renewable energy policies.

According to the Board of Audit and Inspection on Tuesday, it has found 251 employees working at public institutions related to energy, including Kepco, illegally operating solar farms.

These employees had not been authorized by their respective companies to run such solar farms and were required to report if any family members were involved in such activities.

The government audit and inspection agency also found that 64 local government workers were operating solar energy businesses without approval.

Kepco had the highest number of employees engaged in the unauthorized operation of solar energy businesses, totaling 182. Among those, 47 ran the business under their family names.

One employee operated six solar energy farms registered under the names of family members including his wife, mother and even the mother-in-law.

The employee had used undisclosed information in buying the land.

The employee is suspected of making 880 million won ($660,000) from operating the solar farm.

A former high-ranking executive at the Korea Energy Agency ran three solar farms registered under his wife's name and those of his two children.

He reportedly made 300 million won from the solar farms.

The audit and inspection agency has also found government employees violating rules around conflict of interest.

A former mid-ranking employee at the Ministry of Trade, Industry and Energy was hired as the CEO of a company involved in a large-scale government solar energy farm project in Taean, South Chungcheong, after pulling in favors.

The former government official, who was not identified, helped the company get approved by the Taean County office, despite having no authority.

Moon’s presidential officials were also found to exert pressure on the energy ministry regarding its targeted carbon emission cut.

President Moon during a United Nations General Assembly speech in 2021 announced Korea’s ambitious plan to cut carbon emission by 40 percent by 2030 and increase the contribution of renewable energy contribution to 30 percent.

This marked a significant increase from the initial 20 percent target announced in December 2017, the first year of the Moon government.

According to the audit and inspection agency, when the industry and energy ministry informed the president’s office that an increase in renewable energy would result in a 20 percent rise in electricity bills, an official at the Blue House criticized the ministry for lacking political sense.

The ministry in January this year lowered the renewable energy target to 21.6 percent.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]