[Alpha Biz=(Chicago) Reporter Kim Jisun] Chung Mong-kyu, chairman of HDC Group, said, "I didn't know about the contract Hyundai Industrial Development signed with an individual in 2013 on the construction of a liquefied natural gas (LNG) power plant, but recently knew it."

According to Korean media including Yonhap News Agency on the 16th, suspicions were raised that Hyundai Industrial Development signed a dubious contract to give a 20% stake while jointly pursuing a project to build a LNG power plant with an individual in 2013.

In response, Chairman Chung said, "I didn't know it, but I knew it recently," adding, "We are investigating it in detail because the role of the contracting partner is unclear."

According to Rep. Kim Han-kyu of the Democratic Party of Korea, Hyundai Industrial Development signed an "agreement to jointly push for the construction of a LNG power plant in Tongyeong" with an individual in July 2013.

Regarding the contract, Rep. Kim said, "It is a contract that A and Hyundai Industrial Development will jointly push for 2-8 if we win a contract for a LNG power generation project ordered by Tongyeong Eco Power, a subsidiary of HDC Group."

Lawmaker Kim pointed out, "Hyundai Industrial Development is responsible for all the obligations and costs of winning the construction contract, and we decided to have 20% even though A does not have to invest at all."

"The problem is that the total size of this contract is 1.9 trillion won," he said. "20% is 380 billion won. We decided to give it to individuals."

Chung was the chairman of Hyundai Industrial Development at the time of the contract. Hyundai Industrial Development was divided into HDC Group and HDC Hyundai Industrial Development in 2018.

In this regard, when Kim asked, "What is A claiming now?" Chairman Chung said, "He seems to be asking for 20% because it will help a lot in the process of licensing Tongyeong eco-power."

"Of course, I think it should have been reported to the CEO and me," Chairman Chung said. "He never reported it to me, nor did the CEO approve it. We need to investigate."

 

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