Environment ministry’s proposed oversight of energy policy draws backlash

President Lee Jae Myung shakes hands with Environment Minister Kim Sung-whan during an appointment ceremony at the presidential office in Seoul, July 23. Yonhap

The Korean nuclear power industry has expressed concern about losing global competitiveness, following Sunday’s announcement of the government’s plan to transfer control of energy policies to the Ministry of Environment from the Ministry of Trade, Industry and Energy.

Workers in the affected industry have begun protesting the reorganization plan, while experts fear a potential shift in the focus of energy policies from promoting industry growth to tightening environmental regulations.

“We are preparing to hold rallies in front of the presidential office and the National Assembly on Sept. 9, 17 and 19,” a spokesperson of Korea Hydro & Nuclear Power’s (KHNP) union said, Monday.

Under the overhaul, the Ministry of Environment will be expanded with a tentative new name — the Ministry of Climate, Energy and Environment — and will take over most energy policy responsibilities, except for resources and overseas construction of nuclear reactors.

Once the plan is passed later this month at the National Assembly led by the ruling Democratic Party of Korea (DPK), KHNP and other state-run energy utility firms will come under the oversight of the extended environment ministry.

A nuclear power plant in Gyeongju, North Gyeongsang Province / Courtesy of Korea Hydro & Nuclear Power

Still, some ruling party lawmakers are opposing the plan, citing possible intragovernmental disputes over authority of ongoing negotiations with the United States regarding the civil use of atomic energy and import of liquefied natural gas.

“The reorganization is based on ignorance of industry realities,” DPK Rep. Lee Un-ju said.

The main opposition People Power Party (PPP) denounced the reorganization as another attempt to phase out nuclear power, a policy pursued under the liberal Moon Jae-in administration between 2017 and 2022.

“The government is trying to abolish the domestic nuclear industry,” said Rep. Song Eon-seog, floor leader of the PPP.

Before the government announced the reorganization plan, the KHNP union claimed that the first separation of industry and energy policies in 32 years would weaken Korea’s global competitiveness and threaten workers’ livelihoods.

“Anti-nuclear DPK lawmakers have distorted the president’s campaign pledge by trying to have Environment Minister Kim Sung-whan handle energy policies,” the union said in a statement Saturday. “We will protest to the end to protect national energy security.”

A group of professors seeking “reasonable” energy policies has also urged the government to reconsider its plan, saying the reorganization would hike electricity rates.

“The reorganization will cause inconsistency in energy policies and discourage the industry’s growth,” the professors said in a statement Saturday. “If regulation-oriented climate policy controls the energy industry, a country’s competitiveness will suffer severe damage.”

There are also concerns that construction of new nuclear plants in Korea will be restricted, despite the previous administration’s plan to build two additional full-size reactors and another small modular reactor by 2038.

However, the government has emphasized the need to consolidate energy and environment policy under one authority to ensure consistent and strong decarbonization initiatives.