Exclusive: KHNP Executive's US Trip Funded by Company Donation

KHNP Executive’s U.S. Trip Under Scrutiny in Major Audit

A high-ranking executive at Korea Hydro & Nuclear Power (KHNP) has been found to have received 8 million Korean won in support for a business trip to the U.S., following a donation of 48 million Korean won to a private association that KHNP pays an annual membership fee of 1.4 billion Korean won to. This discovery has triggered an audit by the Ministry of Climate, Energy and Environment, which is investigating similar irregularities across public institutions.

According to sources on July 21, the audit office of the ministry recently confirmed these irregularities and is conducting an audit on KHNP. The executive involved, identified as Mr. A, holds a “Level 1” position, equivalent to a bureau chief in central government agencies.

The disputed business trip took place from March 10 to 12, lasting four nights and six days, at the Regulatory Information Conference (RIC) held in North Bethesda, Maryland, U.S. Organized by the U.S. Nuclear Regulatory Commission (NRC), this event brings together representatives from over 50 countries, making it the world’s largest gathering of nuclear regulators.

KHNP had initially planned to send 11 people, including Mr. A, to the event in early February. However, due to budget constraints, the delegation was reduced, and Mr. A was excluded from the list. Audit authorities suspect that after this, his U.S. trip was funded through related institutions.

The organizations covering Mr. A’s expenses were the Korea Atomic Industrial Forum (KAIF) and the Nuclear Industrial Policy Institute (NIPI). KAIF, a private association chaired by the KHNP president, has many former KHNP executives in leadership positions. It receives 1.4 billion Korean won annually in membership fees from KHNP, making it highly dependent on the company. NIPI, a research institute spun off from KAIF, was directly responsible for the research and budget execution related to this U.S. trip.

The support for Mr. A’s expenses was facilitated through a “donation” of 48 million Korean won from KHNP to KAIF, which then invited Mr. A as a “nuclear expert” to the U.S. trip. On February 27, KAIF sent an official letter to Mr. A’s department at KHNP requesting support for a 48 million Korean won project to attend the RIC for research and networking activities. A week later, on March 4, KAIF sent another letter inviting one KHNP expert to the event.

Mr. A approved the proposal to disburse the 48 million Korean won donation to KAIF the day after receiving the invitation, on March 5. Despite KHNP reducing its delegation due to budget shortages, it provided a donation equivalent to the travel expenses of 10 employees to a private association. It was also revealed that Mr. A had already initiated KHNP’s internal review process for overseas trips before receiving the invitation.

The originally planned delegation consisted of two people, but Mr. A’s late addition increased the total travel expenses from 15 million Korean won to 23 million Korean won. Audit authorities suspect that Mr. A’s subordinates discussed funding options with related institutions even before the donation request and are investigating whether he gave direct orders. A government official stated, “Executing a multi-million won budget without proper review within a week is unthinkable for a public institution. It’s as if public funds were treated like personal money.”

The day after approving the donation, on March 6, Mr. A’s U.S.-bound flight ticket was issued. On March 9, he departed for the U.S. on the same flight as six KHNP employees, including the vice president of safety technology. He stayed at the same hotel and attended the same event as the KHNP delegation. The total expenses supported for Mr. A amounted to 8.66 million Korean won, including a round-trip airfare of 5.38 million Korean won and hotel accommodation for four nights costing 1.63 million Korean won.

After the trip, two separate reports were prepared. KHNP publicly discloses overseas trip reports on its website, but these reports were not released for three months after his return and were only posted after this newspaper began its investigation.

Some argue that this case is not merely an individual deviation but a structural irregularity involving public institutions and related entities with vested interests. During the process of arranging the trip, there were no internal mechanisms within KHNP to detect such issues. A nuclear industry insider remarked, “Similar practices might be occurring as a matter of course in other specialized fields with narrow talent pools.”

Membership Offers for Readers

• Monthly membership: 5900 won, readers get 2900 won, Chosun membership
• 55000 won worth of 8 newspapers and magazines, Chosun membership
• Receive 7000 points to use like cash for smart shopping, Chosun membership

Share :