Audit Reveals Presidential Office's Improper Intervention in the 'Great Whale' Project
An audit by the Board of Audit and Inspection (BAI) has revealed that there was improper intervention by the presidential office in former President Yoon Suk Yeol's June 3, 2024 public announcement of the deep-sea gas field 'Great Whale Project' off the coast of Yeongil Bay in Pohang, North Gyeongsang Province. According to the audit findings, former President Yoon pushed ahead with the announcement despite the Ministry of Trade, Industry and Energy's concerns that the probability of success for exploratory drilling into the seabed to obtain data showing the potential for oil and gas deposits was low, and reprimanded the industry minister in an attempt to move up the survey schedule.
The core of the BAI audit is that the presidential office was involved in the background of the announcement. On May 24, 2024, the Ministry of Industry reported the project to the presidential office, stating that the exploration success rate was uncertain at 20 percent or less and that external publicity should be withheld. However, a week later, the presidential office decided on the public announcement and notified the ministry. The ministry's suggestion to disclose only the survey area rather than the uncertain resource volume was rejected.
The BAI audit records show that on June 2, 2024, while receiving a briefing from then-Industry Minister Andeok-geun, former President Yoon responded to a suggestion for a public announcement from then-Policy Chief Sung Tae-yoon, who was concerned about the impact on the stock market, by saying, "We will announce it today." At the briefing, postponed by one day due to pleas from aides, Yoon directly mentioned a resource volume of '14 billion barrels,' saying it should be easy for the public to understand. The BAI judged that this figure was a simple sum of the most optimistic estimates assuming all drilling succeeded. Kim Jong-dong, a section chief at the BAI's Public Institution Audit Bureau, explained that "the feasibility is very low."
There were also demands to accelerate the drilling schedule. Former President Yoon demanded that the government's drilling plan, originally scheduled for 2029, be moved up to within his term, and the drilling plan was pushed forward to 2026. When former Minister Ahn said that "political judgment was needed," Yoon reprimanded him, saying, "Political judgment is mine to make." Former Minister Ahn testified in the BAI investigation that, despite believing it was unreasonable, he reported a plan to conduct four more drillings by 2026.
About one year and three months after the announcement, the government concluded last year that the drilling had failed, citing a "lack of economic viability." The BAI identified seven illegal or improper practices, including the Korea National Oil Corporation's arbitrary selection of contractors and the pursuit of drilling without verification, and requested disciplinary action against three officials involved. However, it did not request separate action against the Ministry of Industry or the presidential office, citing, among other things, the absence of relevant regulations.
