[Exclusive] Korea Environment Corporation: Where Did the KRW 2.9 Billion in "International Greenhouse Gas Reduction" Subsidies Go?

Materials from the office of Democratic Party of Korea Rep. Lee Yongwoo
As of April 2025, 97% of the funds had been disbursed
All eight work processes, including drilling gas collection wells, were "inadequate"
Discrepancies between reported progress and actual site conditions

The Korea Environment Corporation provided about KRW 2.9 billion in government subsidies for an international greenhouse gas reduction pilot project it pursued in Uzbekistan, but an on-site inspection found that all eight planned work processes were "inadequate."

According to materials obtained from the Korea Environment Corporation by Rep. Lee Yongwoo of the Democratic Party of Korea, a member of the National Assembly's Climate, Energy, Environment and Labor Committee, the corporation pursued a greenhouse gas reduction project at the Maydontol landfill in Uzbekistan with the private company Sejin GNE.

The project involves capturing landfill gas, operating a 1.2 MW power generation facility and securing greenhouse gas reduction credits. The total project cost is KRW 13.659 billion. Government subsidies amount to KRW 2.989 billion, of which the corporation had disbursed KRW 2.908 billion, or about 97%, as of April 2025.

However, an on-site inspection in the same month classified all eight work processes as "inadequate." They had originally been scheduled for completion by December 2024 and included setting up a site office, basic civil engineering work, drilling gas collection wells, procuring equipment and materials, construction and mechanical work, covering the landfill, electrical work, and test operation and operating training.

The inspection also found cases in which reported progress differed from the actual site conditions. The project operator reported in December 2024 that it had brought drilling equipment for the gas collection wells to the site and was assembling and testing it. However, during the on-site inspection in April 2025, the equipment was not there, and drilling work on the collection wells had not begun.

There was also a large discrepancy between the subsidies disbursed and the reported expenditures. While the corporation had provided about KRW 2.9 billion in subsidies, the project operator reported expenditures of only KRW 1.301 billion.

Rep. Lee said, "The corporation should disclose the review and supporting documents for each stage of subsidy disbursement, as well as construction progress and subsidy expenditure details following inspections." He added, "If improper spending is confirmed, it should take necessary measures, including recovering the funds, and clarify its responsibility for management and oversight."

Lee Yongwoo, a lawmaker from the Democratic Party of Korea.

This content was produced with the assistance of AI translation services.