The Financial Supervisory Service has launched an inspection to determine whether improper loans were issued for solar power projects under the previous Moon Jae-in administration.

According to financial sources on Wednesday, the agency began its probe after an audit by the policy coordination office discovered irregularities within a national energy initiative that received 12 trillion won in funding since 2018.

Noting that current statistics on loans related to solar power are not concrete, an FSS official said they are first securing data in order to accurately analyze the types and amounts of loans offered through the initiative.

The earlier audit by the government policy coordination office revealed illegal loans and payouts of over 260 billion won related to infrastructure projects under the Moon administration aimed at facilitating solar power generation.

Since the report, the industry ministry and the Financial Services Commission have also taken an interest in the issue, hinting at similar inspections.