Environment ministry to take over energy policy in gov't reorganization

Interior Minister Yun Ho-jung, right, announces government restructuring plans at Government Complex Seoul, Sunday. Yonhap

The Lee Jae Myung administration on Sunday announced a plan to consolidate energy and environment policy under one command, as it aims to strengthen Korea’s climate crisis response.

The government reorganization plan, finalized following its meeting with the ruling Democratic Party of Korea (DPK), reflects the administration’s commitment to climate action and green energy transition despite concerns about conflicting goals in one organization.

Under the overhaul, the Ministry of Environment will be expanded with the tentative name of Ministry of Climate, Energy and Environment. The new ministry will take over most energy policy responsibilities from the current Ministry of Trade, Industry and Energy except for resource and nuclear industry policy. The new body will merge climate policy from the environment ministry and energy departments from the trade ministry, marking the first time the energy portfolio is transferred out of industry supervision.

The reform is designed to strengthen the nation’s climate crisis response and accelerate the shift to renewable energy, as promised by Lee during his election campaign.

"This restructuring is the first step to implementing the core state tasks desired by the people and supporting the new government's policy goals, aiming to streamline the functions of government ministries and establish a foundation to address complex issues such as the climate crisis and the artificial intelligence transformation," Interior Minister Yun Ho-jung said.

Yet the dramatic shakeup may fuel concerns among business groups and experts, who warn that shifting energy policy control from an industry-centered ministry to a climate-focused one could lead to more regulations than support measures for industrial competitiveness.

Before the meeting, several lawmakers within the party, including Rep. Lee Un-ju, expressed opposition to the idea, saying that the shift would inevitably lead to higher energy expenses.

The administration and the party revealed their plan for prosecutorial overhaul, another pillar of government reform. Under the change, the prosecutors' offices will be dissolved and new agencies ― an indictment agency and a serious crime investigation agency ― will be established to split apart investigative and indictment powers.

Under this plan, prosecutors would only be permitted to play a much more limited role in investigations, such as indicting a suspect and asking judges to issue warrants ― rights reserved only for prosecutors under the Constitution.

Whether prosecutors should still be allowed to play certain, limited roles in investigation ― for example, asking police officers to look more into cases to collect more evidence ― is expected to be discussed further among ruling party lawmakers before finalizing their legislative bill.

The serious crimes investigation agency would be installed under the Ministry of the Interior and Safety and begin to play a central role in criminal investigations.

The reform also aims to split the roles of the Ministry of Economy and Finance. Its budgeting power is expected to be transferred to a new ministry of planning and budget under the Prime Minister’s Office.

Meanwhile, the Financial Services Commission’s (FSC) financial policy responsibilities would be absorbed by the Ministry of Economy and Finance. The FSC’s other functions are expected to be taken over by the Financial Supervisory Service.

To strengthen science, technology and AI governance, the status of the minister of science and ICT will be elevated to a deputy prime minister level, and a dedicated AI department will be created within the ministry. Moreover, a new committee dedicated to formulating national AI strategies will be set up under the presidential office.

The post of a deputy prime minister for social affairs, which was assumed by the education minister, will be abolished.

In addition, Statistics Korea will be elevated to the National Data Agency in order to strengthen its role in overseeing, coordinating and managing national statistics as well as improving the management of statistical data.

The Korean Intellectual Property Office will also be elevated to the Intellectual Property Agency to take charge of coordinating and managing intellectual property, establishing related policies and enhancing its promotion, use and protection.

The draft bill enacting the changes is expected to pass Sept. 25 at the National Assembly, where the DPK holds a majority of seats. If approved, the reform will mark Korea’s most significant bureaucratic restructuring in years. While most of the reorganization process will start after the bill is passed, the split of the finance ministry will begin next January and the prosecutorial overhaul will be made after one year from now to allow for more discussions on details and smooth transition.

"The party and the government have agreed to quickly submit a revision to the Government Organization Act based on today’s consultation results, and to make efforts to pass the bill by the end of this month so that the reorganization plan can be implemented before the Chuseok holiday," Rep. Han Jeoung-ae, chairwoman of the party's policy committee, said.