As the government's organizational reshuffle looms, a subdued mood is spreading through the Ministry of Trade, Industry and Energy. For the first time in 32 years since the Ministry of Commerce and the Ministry of Energy and Resources merged to launch the Ministry of Commerce and Resources in 1993, energy policy is being split off and leaving the ministry. Energy policy duties will move to the newly created Ministry of Climate, Energy and Environment.
In one sense, it is a simple adjustment of work domains, but insiders say the sense of loss within the ministry is very deep. That is because losing the energy policy function was the outcome they most wanted to avoid.
As its name suggests, the Ministry of Trade, Industry and Energy has industrial policy functions, trade policy functions, and resource and energy policy functions. Among these, the resource and energy field has been the core of the ministry since the launch of the Ministry of Commerce and Resources in 1993. With this reshuffle, some functions such as resources and nuclear power plant exports will remain with the ministry, but key areas including electricity, renewable energy, hydrogen, and domestic nuclear power will all be transferred to the climate ministry.
Of course, the remaining industrial and trade policies are also important pillars. However, many employees view energy policy as the core. That is because energy work is the most powerful portfolio. This is why some are offering the self-deprecating line that the ministry has become "a steamed bun without red bean paste."
Looking at industrial policy, while the ministry draws the big picture, it lacks tools such as budget, tax, and finance, making direct policy execution quite challenging. Moreover, it is true that the government's role has shrunk compared with the era of government-led development. Many sectors have already reached world-class levels on their own in the private sector.
In trade, there is a characteristic of being a somewhat independent organization. There is a separate trade minister in charge of negotiations, and there is precedent for it being shifted to the Ministry of Foreign Affairs and then brought back. Therefore, it is true that it could be transferred again at any time. In fact, after the launch of the Lee Jae-myung administration in Jun., internal discussions mentioned the possibility of transferring the trade function to the Ministry of Foreign Affairs or making it independent.
Given these circumstances, some employees are even saying personnel moves should be made once before the reorganization. The ministry has set as one criterion that current staff will be transferred as is, but some are asking for a chance to move from non-energy fields to the energy field.
Some argue that the ministry should go back to fundamentals to find and fix the problem. They say "the biggest problem is that the ministry failed to show employees a vision." Accordingly, some inside the ministry say this change should be used as an opportunity to newly establish its identity.
A Director at the ministry said, "More than the authorized number of staff have been投入 into the energy field, and more clout has flowed there than to other bureaus," adding, "From now on, we should put weight on industrial policy and prepare for the future." It seems the most realistic and proactive solution.
If the ministry can turn this change into a turning point rather than a mere downsizing, it can continue to play a leading role in designing the future of Korea's industrial policy. With the advent of the age of artificial intelligence (AI) and other shifts, the industrial landscape has changed greatly, and there is still plenty for the ministry to do if it only looks.