A solar-power generation complex operated by a Chinese-owned corporation on Bungeo Island is approaching the end of its 15-year contract [1].
The transition of the facility marks a shift in control over a significant renewable energy asset located within the Iam-ho reservoir in Chuncheon, Gangwon-do.
Bungeo Island, which covers 310,000 square meters [2], is owned by the Gangwon-do Development Corporation [1]. In the early 2000s, the provincial government abandoned previous plans to develop the island for tourism and instead installed the solar complex following a national push for renewable energy [2].
The current arrangement allows a corporation wholly owned by a Chinese conglomerate to operate the farm [1]. Under the terms of the agreement, the corporation was granted the right to take the primary revenue for 15 years without paying a separate land-use fee [3]. Following this period, the province of Gangwon-do is scheduled to operate the facility for the remaining 10 years of the equipment's 25-year projected lifespan [3].
Currently, the province receives a revenue share of 4.3% of electricity sales [4]. This amount totals just over 100 million KRW per year [4].
The 15-year revenue-share period began around 2009-2010 [5]. According to reports, this contract is set to expire in August 2025 [5].
As the expiration date approaches, the facility's transition to provincial operation will move the bulk of the energy revenue from the private Chinese-owned entity to the local government [3].
“The corporation was granted the right to take the primary revenue for 15 years without paying a separate land-use fee.”
The expiration of this contract represents a planned handover of infrastructure from foreign private investment to public provincial management. By utilizing a 'build-operate-transfer' style model, Gangwon-do avoided initial installation costs and land-use fees in exchange for deferred profits, now positioning the province to capture the full operational value of the site for the next decade.
