With the Korea Wind Energy Industry Association set to hold a regular board meeting on the 27th to conduct a vote to elect the next association chair company, noise is rising over claims that the election procedures were not properly followed. The association's policy is to proceed with the vote as scheduled for now.
According to the wind power industry on the 23rd, Myoungun Industrial Development, which is running unopposed for chair company of the Korea Wind Energy Industry Association, will be elected chair company at this regular board meeting if it wins the support of at least two-thirds of the roughly 240 member companies. The term is three years, and if the chair company expresses an intention to serve another term, it can automatically extend its term for an additional three years.
The previous chair company of the wind energy industry association was SK ecoplant. Citing a change of CEO, SK ecoplant stepped down from the chair with a little time left in its three-year term. After that, a large company referred to as Company D considered running for chair company, but dropped out, noting that the firm does not work exclusively in wind power. Myoungun Industrial Development then emerged as a candidate for chair company and became the sole final candidate.
Some member companies are objecting, saying the process of selecting a sole candidate did not proceed in accordance with the association's bylaws. The bylaws of the Korea Wind Energy Association state that "a chair company candidate becomes subject to a board resolution only after passing the chair recommendation committee." To elect a chair company, the process must go "pass the chair recommendation committee → board resolution → regular board meeting vote."
Initially, the chair recommendation committee, which the association secretariat formed with member companies, public institutions, civic groups and professors, expressed opposition to Myoungun Industrial Development becoming the chair company. Myoungun Industrial Development then argued that directors should be included on the chair recommendation committee, and the board agreed. In the end, the chair recommendation committee with directors included agreed to Myoungun Industrial Development becoming a chair company candidate, and the board vote began.
In the first vote, Myoungun Industrial Development failed to win a majority and did not secure eligibility to run as chair company. After a revote, it became a chair company candidate with the consent of two-thirds of the 10 board directors.
A person in the wind power industry said, "The principle was broken from the start that if you fail to pass the chair recommendation committee, you should not be subject to a board resolution," adding, "People in the industry are saying the board of the Korea Wind Energy Industry Association lacked a sense of responsibility."
Myoungun Industrial Development says it did not run for chair company to benefit the firm. Jung Jong-young, CEO of Samhae E&C, Myoungun Industrial Development's offshore wind development arm, said, "The wind power industry proceeds through bidding, so even if you become chair, there are no profits to be made," adding, "Myoungun Industrial Development is not a conglomerate, but the business is sizable, so we were asked, why not step up as chair company, and we followed that suggestion."
Some are taking issue with the fact that Myoungun Industrial Development used many Chinese-made components for the Nakwol Offshore Wind project being built in Nakwol-myeon waters, Yeonggwang County, South Jeolla Province. They say that, contrary to the policy intent of nurturing the domestic offshore wind supply chain, the association could end up not raising serious objections to the use of Chinese-made components.
In fact, Myoungun Industrial Development used Chinese-made turbines, blades and cables as key components for Nakwol Offshore Wind. On this, CEO Jung said, "It would have been good to use domestically made products, but in the case of turbines, there was no reference for domestic use, and if we adopted them, overseas financial institutions would not approve project financing (PF)," adding, "Except for the turbines, blades and external network, we used only domestically made components."