Power Grid Stakes and Chinese Technology Hidden Behind the Facade of AI Investment. The Reality of the BlackRock MOU. Hanmi Ilbo Graphics

AI Hub is a Front, the Real Aim is Power Grid Stakes

BlackRock is the world's largest asset manager, with $12.5 trillion in assets under management. The stated purpose of the MOU signed with the South Korean government was the "AI Data Center." 

However, data centers are merely a facade. Large-scale AI infrastructure cannot exist without power. In exchange for investing in the development of wind farms and the construction of power grid highways, BlackRock is entering the South Korean power grid business.

Through its subsidiary Global Infrastructure Partners (GIP), BlackRock has already undertaken numerous wind and transmission projects in Europe and North America. The model being pursued in South Korea is identical. 

While the government promoted rosy rhetoric of "AI investment," BlackRock has been securing stakes and operational control in energy infrastructure.

According to sources, there is a high probability that President Lee Jae-myung will directly meet with BlackRock Chairman Larry Fink during his visit to the UN to sign the MOU. 

However, the specific details of the MOU have not been disclosed. It remains unclear whether BlackRock will simply invest in data centers and renewable energy facilities, or if it aims to acquire stakes in power supply companies.

However, looking back at the Shinan offshore wind farm case in 2024, BlackRock was not satisfied with mere facility investment. 

At the time, its subsidiary GIP attempted to secure equity investment and long-term operational rights for the 8.2GW project, valued at tens of trillions of won. However, the government approval was rejected due to financial capacity and grid connection issues. It is highly likely that this MOU will follow the same pattern.

The Trap of Dependence on Chinese Technology

A more serious issue is the structure of technological dependence. The global wind power market is already dominated by Chinese companies. 

According to BloombergNEF, over 60% of newly installed wind turbines in 2023 were made in China. Four of the top five largest turbine manufacturers globally are Chinese companies. Their prices are also 20-30% lower than those from Europe and South Korea. 

Investors naturally use cheaper equipment. For global capital like BlackRock, what matters is not nationality but return on investment. Therefore, it is highly probable that Chinese technology will be extensively deployed in the wind farms and power grids being pursued in South Korea.

Hacking and Backdoors: Warnings from the International Community

Security risks have already materialized. In the United States, undocumented communication modules were discovered in Chinese-made inverters, raising concerns about the possibility of remote control of the power grid. In Denmark, unregistered electronic components were found on circuit boards for energy equipment, prompting an investigation. 

While these have not yet been definitively classified as intentional hacking devices, if cheap Chinese equipment is introduced on a large scale, South Korea's power grid will inevitably be exposed to the same risks.

National Taxpayer Funds and the Fuse of Regional Conflict

There is also a high possibility of national tax funds being involved in this process. Wind farms and ultra-high voltage transmission lines are long-term projects worth tens of trillions of won. It is unlikely that foreign capital will bear all the risks. Tax benefits, subsidies, and land support, along with various other incentives, will inevitably fall upon the shoulders of the taxpayers.

Regional conflicts are also unavoidable. The construction of wind farms has already sparked environmental destruction controversies and resident opposition in various parts of the country. Ultra-high voltage transmission lines are an even more sensitive issue. BlackRock's involvement carries a significant risk of exacerbating regional conflicts, delaying projects, and increasing social costs.

An Issue the President Cannot Decide Alone

A more critical issue is the decision-making process. Power grids and power plants are not merely investment targets; they are national infrastructure and core assets that support the lives and security of the people. 

The principles of economic democratization stipulated in Article 119 of the Constitution, and the binding force of the Electric Utility Act and the National Energy Basic Plan clearly indicate areas that the president cannot arbitrarily handle. If a structure involves large foreign capital acquiring stakes and is accompanied by tax subsidies, it must be subject to the consent of the people and deliberation by the National Assembly. 

Ultimately, this MOU is an issue that should be handled by the National Assembly's Trade, Industry, Energy and SME Committee or the Special Committee on Energy, not a matter to be processed through the president's sole approval.

Without Media Silence, the Public Remains Uninformed

In conclusion, this MOU reveals the reality of securing power grid stakes and dependence on Chinese technology, hidden behind the rosy facade of AI data centers. This is not simply attracting investment; it is an issue that threatens national sovereignty and energy security. 

If the media does not address this issue, the public will remain unaware of the truth. It is the media's responsibility to expose the substantive risks hidden within, rather than merely relaying the government's packaging and public relations.

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