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The Story Behind Korea Energy Foundation’s Lawsuit Against Former Chairman Kim Kwang-sik

[비즈한국] It has been confirmed that the Korea Energy Foundation recently filed a lawsuit against its former chairman, Kim Kwang-sik. The foundation is demanding the return of allowances and business expenses that Kim received during his tenure. Kim took office as chairman of the Korea Energy Foundation in June 2018 and resigned in September 2023.

In 2022, the Korea Energy Foundation revised its enforcement rules for compensation regulations, establishing a monthly allowance of 2.3 million KRW for the chairman. Prior to this, the foundation’s chairman received a meeting allowance of 500,000 KRW only when attending meetings and did not receive a monthly salary. The creation of the chairman's allowance sparked controversy as it was personally approved by then-Chairman Kim Kwang-sik.

Public sentiment surrounding former Chairman Kim Kwang-sik was unfavorable. The People Power Party, in particular, leveled strong criticism. In April 2023, Bae Yoon-ju, then-deputy spokesperson for the People Power Party, stated, "As the Korea Energy Foundation is designated as an 'other public institution' under the law, it has a duty to perform its functions fairly and with integrity, yet [the chairman] pursued personal gain through 'self-approval'."

The criticism did not stop there. In July 2023, the Ministry of Trade, Industry and Energy (MOTIE) launched an audit regarding the Korea Energy Foundation’s chairman allowance. The ministry concluded that the establishment of the allowance and the execution of business expenses by the Korea Energy Foundation were inappropriate.

The ministry instructed the Korea Energy Foundation to review the allowances already paid and devise a plan for their recovery. Consequently, the foundation demanded that former Chairman Kim Kwang-sik return 41,677,025 KRW in allowances and business expenses.

However, Kim refused. Ultimately, the Korea Energy Foundation recently initiated legal action against the former chairman. An official from the Korea Energy Foundation explained, "Since the repayment amount was determined and requested, I understand that the lawsuit was filed because he expressed no intention to return the funds," adding, "As we are currently in the stage of submitting evidence, there are no specific details to share yet."

The position of chairman at the Korea Energy Foundation has remained vacant since Kim Kwang-sik's resignation. It is reported that discussions are underway within the Ministry of Trade, Industry and Energy regarding the integration of the Korea Energy Foundation and the Korea Energy Agency. For this reason, the appointment of a successor for the foundation's chairman is also reportedly being delayed.