Summary of "[MBC 탐사기획 스트레이트 315회] '깜짝 발표'의 내막 | 스트레이트 315회 (25.10.19)"

Investigative Report on Daewanggol Gas Drilling Project and Related Resource Development

The investigative report from MBC’s Straight episode 315 explores the political and economic controversies surrounding South Korea’s Daewanggol gas drilling project and other national resource development efforts under President Yoon Seong-yeol’s administration.

Key Points

1. Daewanggol Gas Drilling Project Impact on Fisheries

The project near Pohang Guryongpo Port involved large-scale gas drilling.
It caused the disappearance of red clams and severely affected local fishing industries.
Economic damage led to bankruptcies among fishermen.
The government is currently investigating compensation for those affected.

2. Political Use of Resource Development

Despite the drilling operation’s failure, the Yoon administration held a surprise state briefing in June 2023.
The briefing presented an overly optimistic economic outlook, claiming up to 200 trillion won in economic impact and long-term energy supply benefits.
The announcement was made with only 8 minutes’ notice, raising suspicions about political motives.
Officials revealed the rushed announcement was due to fears of information leaks.
President Yoon insisted on personally delivering the briefing.

3. Doubts About Project Feasibility

The Korea National Oil Corporation and U.S. company ActGeo estimated a 19% to 29% success rate but were cautious about publicizing the project.
ActGeo was revealed to be a very small company, raising credibility concerns.
Prior analyses by Australian firm Woodside deemed the project economically unfeasible.
The project ultimately failed, with gas saturation far below expectations and geological data misinterpreted.

4. Economic and Political Fallout

The project cost 130 billion won and failed within 15 months.
Korea National Oil Corporation is heavily indebted (20.5 trillion won) and suffering capital erosion.
Ministry officials claimed political interference compromised project management and the briefing process.
The project appeared to be used as a political tool to boost government approval ratings after electoral defeats.

5. Parallel Nuclear Power Plant Project in Czech Republic

Shortly after the Daewanggol briefing, the government announced a contract to build a nuclear power plant in the Czech Republic, with President Yoon personally involved.
The contract faced criticism for allegedly low pricing (“dumping”) and unfavorable terms, including paying over 1 trillion won in royalties to Westinghouse for 50 years.
An international dispute with Westinghouse occurred, later settled but sparking controversy over “slave contract” conditions.
Critics argue political ambitions compromised sound economic judgment, mirroring past issues.

6. Historical Context and Similar Cases

The report compares these issues to the 2009 UAE nuclear power plant project under President Lee Myung-bak, which faced financial losses, delayed construction, and high costs despite initial national pride.
Lee’s administration’s resource diplomacy, including the acquisition of Canadian oil company Harvest and the Iraqi Kurd oil field project, resulted in massive financial losses due to poor productivity and failed exploration.
These examples illustrate a pattern where resource and energy projects are driven by political motives without sufficient economic feasibility, ultimately burdening taxpayers.

Overall Analysis

The episode highlights how South Korea’s ambitious resource development and energy projects have been repeatedly politicized. This has led to:

Inflated expectations
Rushed announcements
Financial mismanagement
Eventual failures

It underscores the risks of prioritizing political gains over careful, economically sound planning in national projects, with detrimental effects on public finances and industries such as fisheries.

Presenters and Contributors

Interview with Ahn Deok-geun (former Minister of Trade, Industry and Energy; now professor at Seoul National University)
Comments from Ministry of Trade, Industry and Energy officials
Statements from ActGeo CEO (no response to inquiries)
Coverage includes archival footage and analysis by MBC Straight investigative team