Minister of Knowledge Economy Choi Joong-kyung says suspicions that the United Arab Emirates (UAE) granted South Korea the contract for a power plant in return for a massive loan from South Korea are unwarranted.

The minister said at a meeting Monday that the so-called “double contract” does not go against international practices and that the agreement is also in line with previous practices in South Korea involving sizable overseas orders.

The double contract refers to an agreement for the Korea EXIM Bank to grant a ten-billion-dollar loan to the UAE in return for allowing the Korea Electric Power Corporation (KEPCO) the rights to build a nuclear power plant in the UAE. Critics say the money could be used to partially fund the order for the plant.

The United Arab Emirates (UAE) received the loan as it has asked state-run KEPCO to become a partner in its planned atomic energy company.

KEPCO, a leading a consortium, secured a 20-billion-dollar deal last December to build reactors for the Middle Eastern country.

On measures to address gasoline prices, Choi said a ministerial-level task force that investigates oil prices is determining whether gasoline prices charged by South Korean oil refineries are suitable.