Input 2021.02.16 12:01
Procurement of investment expenses from domestic financial institutions and power generation companies
It was found that the Economic Humanities and Social Research Society (Kyong Sa-yeon), a government-funded research institute under the Prime Minister’s Office, published a private research service report containing plans to invest 7.700 trillion won from domestic financial institutions and power generation companies to invest in North Korean energy projects.
The report contained the contents of expanding the’North Korean Energy Industry Modernization Demonstration Project’ throughout North Korea. The project is estimated to cost 7.718.8 billion won. By business area, ▲ modernization of thermal power generation 2,923.5 billion won ▲ modernization of hydropower generation 2,2052 billion KRW ▲ construction of a briquette plant 73.4 billion won ▲ modernization of coal mines 2,5167 billion won. Through this, the researchers predicted that as of 2017, it would be able to produce 18% of the total power generation in North Korea.
The report suggested a way to return the investment for the project in coal. It is a method of selling coal received from the North by procuring investment expenses and managing energy projects through a special purpose corporation (SPC) invested by domestic financial institutions and power generation companies. Considering that coal is subject to sanctions against North Korea by the United Nations (UN and UN) in 2017, this is the proposed method on the premise that sanctions against North Korea will be eased.
The report said, “Since sanctions against North Korea are beyond the scope of this study, it will not be discussed here, but in preparation for easing sanctions against North Korea, the establishment of a related institutional foundation for immediate energy cooperation projects and the derivation of cooperation projects that enable the exchange of emission permits between the two Koreas. “It is necessary” and said, “Repaying in-kind is advantageous because it can avoid foreign exchange loss and remittance related regulations.”
“Coal reserves are abundant in North Korea and production is relatively stable,” he said. “The South Korean power generation company not only consumes coal, but also imports almost all of it from abroad, so its consumption stability and import substitution effect are excellent.”
In the policy proposal, the report said, “The Moon Jae-in administration strongly expressed its policy will on the joint economic development and cooperation between the two Koreas through the’Korean Peninsula New Economic Guidance Initiative’ as part of the’Five Years Plan for State Administration’ in 2017.” The main content is the construction of the three major economic belts, such as the Industry·Logistics·Transportation Belt’, the’Earth East Sea Energy Resource Belt’, and the’DMZ Environment·Tourism Belt’, but the detailed policy implementation plan has not yet been materialized.” did. He said, “The North Korean energy industry modernization project needs to be promoted by being included as a detailed policy task for realizing the’Korean Peninsula New Economic Guidance Plan’.”
President Moon Jae-in told North Korea’s Chairman Kim Jong-un of the North Korean State Council at a summit meeting on April 27, the following year when the’Korean Peninsula New Economic Guidance Initiative’ was set as a national task, and a mobile storage device containing the contents of new and renewable energy cooperation and renovation projects for thermal and hydroelectric power plants. USB).
Rep. Koo Ja-geun said of the report, “We must clarify how the agency under the Prime Minister created a research document that invested enormous amounts of money in the North Korean energy industry and how far the document was reported.”