Controversy over accountability as ‘blue whale project’ ends in failure

The ‘Blue Whale Project’ (the East Sea gas field development project) has effectively failed in the first drilling attempt, sparking heated debate over responsibility. The controversy intensified after a high-ranking official from the Ministry of Trade, Industry, and Energy mentioned ‘political influence’ while announcing the drilling results, making it inevitable to investigate the substance and circumstances of these remarks.

As recently as February last year, the ministry and the Korea National Oil Corporation (KNOC) reportedly took a cautious stance, estimating the value of the Blue Whale Project at around 11 trillion won. However, just four months later, when President Yoon Suk Yeol made the announcement himself, the estimates had dramatically increased to ‘up to 14 billion barrels’ and ‘five times the market capitalization of Samsung Electronics’ (approximately 2,200 trillion won). This drastic change is why a senior ministry official said that ‘unexpected political influence was involved’ and that there was ‘considerable pressure due to political factors.’ The key issue now is whether the presidential office ignored expert opinions from the overseeing ministry and forcibly pushed forward with the project. President Yoon claimed that leading research institutions and experts had verified the project, and transparency regarding these evaluations is now essential.

Doubts also surround ACT-Geo, the U.S.-based technology evaluation firm that endorsed the potential of the Blue Whale Project. The company’s registered address turned out to be a residential home, and it was revealed that its corporate status had been suspended due to tax delinquency. Despite these issues, the firm also won a contract to assess another gas field project, dubbed ‘Devil Shark,’ raising suspicions that a failing company may have been granted undue privileges.

Natural resource development projects take years, if not decades, and have extremely low success rates. However, prioritizing political considerations over scientific and economic judgment leads to massive budget waste and deception of the public. A full audit should thoroughly investigate how the Blue Whale Project was pursued, and if any wrongdoing is found, those responsible must be held fully accountable.