When the government on the 7th announced a revision to the Government Organization Act creating a new Ministry of Climate, Energy and Environment (climate ministry) by integrating the energy sector of the Ministry of Trade, Industry and Energy into the Ministry of Environment, the supervisory ministries of energy public enterprises under the Ministry of Trade, Industry and Energy are expected to change en masse to the climate ministry. However, some of the public enterprises being moved, such as Korea Electric Power Corporation and Korea Hydro & Nuclear Power, are also carrying out overseas nuclear power projects that will remain with the Ministry of Trade, Industry and Energy, making it difficult to completely sever ties with that ministry. Some quarters have mentioned the possibility of reorganizing public enterprises, but many say it would not be easy.
According to the Ministry of the Interior and Safety and the Ministry of Trade, Industry and Energy on the 9th, if the revision to the Government Organization Act passes the National Assembly, the energy institutional sector of the Ministry of Trade, Industry and Energy will be transferred immediately to the climate ministry. However, resource industries such as coal, oil and gas and the function of exporting nuclear plants will remain with the Ministry of Trade, Industry and Energy.
The 41 public institutions under the Ministry of Trade, Industry and Energy will also have their supervisory ministries change depending on whether their responsible departments within the ministry transfer or remain. According to laws and regulations, KEPCO, KHNP, five power generation companies, KEPCO KPS and energy-related research institutes are expected to be transferred to the climate ministry. For example, the Korea Electric Power Corporation (KEPCO) Act lists power industry policy as the responsible division, so if that division is transferred to the climate ministry, Korea Electric Power Corporation will be transferred as well.
On the other hand, resource public enterprises such as Korea National Oil Corporation (KNOC), Korea Gas Corporation, Korea Coal Corporation and Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) are expected to remain with the Ministry of Trade, Industry and Energy. The Korea Mine Rehabilitation and Mineral Resources Corporation Act has coal industry as its area of responsibility, so it will remain with the Ministry of Trade, Industry and Energy as is.
A ministry official said, "It will be the principle to transfer according to the divisions specified in law," while adding, "it will be sorted out through additional discussions with the Ministry of the Interior and Safety, the Ministry of Economy and Finance, and the Ministry of Environment."
However, some public enterprises are likely to face unavoidable confusion. In particular, KEPCO and KHNP operate not only domestic nuclear plants but also overseas nuclear projects, so even if they are transferred to the climate ministry, it is highly likely that the Ministry of Trade, Industry and Energy will continue to jointly manage them.
A KHNP official said, "Even now both the Ministry of Trade, Industry and Energy and the Ministry of Science and ICT act as the main ministries, and if the climate ministry is added, we will have to undergo oversight by all three ministries," expressing concern that "during the audit period operations could be paralyzed."
Hydrogen-related public institutions are likely to be placed under the command of different ministries. According to law, the Korea Energy Technology Evaluation Institute, which is responsible for hydrogen policy, will be transferred to the climate ministry, but the gas corporation and the Korea Oil Management Service, which are in charge of hydrogen infrastructure, are expected to remain with the Ministry of Trade, Industry and Energy.
Some public enterprises have raised the need for integration. KHNP, which is responsible for hydropower generation, and the Korea Water Resources Corporation are representative examples. However, there is also a view that public institution mergers and abolitions are unlikely because they are not easy to accomplish.
A director at a related ministry said, "Splitting or consolidating government ministries is not difficult, but merging or abolishing public institutions is difficult because it involves the interests of labor unions, local residents, regional universities and local lawmakers," adding, "first we will divide the affiliations of each public institution according to laws, and then consider mergers and abolitions step by step."
Yoo Seung-hoon, a professor in the Department of Future Energy Convergence at Seoul National University of Science and Technology, said, "If energy administration is split between the Ministry of Trade, Industry and Energy and the climate ministry, it could have negative effects not only on the public but also on industry, so further review is necessary."