Energy to Environment Ministry, Nuclear Exports to Trade Ministry ... Hopes and Concerns Over Ministry of Climate, Energy and Environment

Concerns Raised Over Weakened Energy and Industrial Promotion, Even Within Ruling Party
Inefficiency Feared From Splitting Resource Industries Like Oil and Gas
Nuclear Industry and Export Functions Also Divided
Worries That "Energy Security

Yoon Hojung, Minister of the Ministry of the Interior and Safety, and Han Jungae, Policy Committee Chair of the Democratic Party of Korea, are announcing the results of the 3rd High-level Party-Government Council and the government organization reform plan at the Government Seoul Office in Jongno-gu, Seoul on September 7, 2025. Photo by Yonhap News

The Ministry of Environment will be expanded and reorganized into the Ministry of Climate, Energy and Environment by absorbing the energy functions of the Ministry of Trade, Industry and Energy. Initially, the Lee Jaemyung administration had pledged to establish a new Ministry of Climate and Energy by merging the climate functions of the Ministry of Environment and the energy functions of the Ministry of Trade, Industry and Energy. However, areas such as resource industries involving oil and gas, as well as nuclear power plant exports, will remain within the downsized Ministry of Trade and Industry. Concerns are already being raised regarding this government reorganization plan.

On September 7, the Democratic Party of Korea and the government held a high-level party-government council at the Prime Minister’s Seoul residence and finalized the direction of the government reorganization, which will transfer most of the energy policy departments from the Ministry of Trade, Industry and Energy to the Ministry of Environment. The Ministry of Environment will be expanded into the Ministry of Climate, Energy and Environment, while the Ministry of Trade, Industry and Energy will be reduced to the Ministry of Trade and Industry. This marks the first time in 32 years that energy policy will be separated from industrial policy, since the Ministry of Commerce and the Ministry of Energy and Resources were merged to create the Ministry of Commerce and Resources in 1993.

On this day, Yoon Hojung, Minister of the Interior and Safety, stated during a briefing on the government reorganization plan, "Carbon neutrality has long been emphasized as a national-level challenge requiring a strong control tower, but the current fragmented government structure has been evaluated as inadequate for effectively overseeing climate change response. To pursue a consistent and robust carbon neutrality policy, we will integrate the energy functions of the Ministry of Environment and the Ministry of Trade, Industry and Energy and reorganize them into the Ministry of Climate, Energy and Environment."

Minister Yoon added, "However, the functions closely related to industry and trade, such as resource industries and nuclear power plant exports, will remain within the Ministry of Trade and Industry."

Additionally, the Climate Response Fund and Green Climate Fund, currently managed by the Ministry of Economy and Finance, will be transferred to the Ministry of Climate, Energy and Environment to unify fiscal management. The 2050 Carbon Neutral Green Growth Committee will be reorganized into the Climate Crisis Response Committee, with its functions strengthened.

The establishment of the Ministry of Climate, Energy and Environment is based on the rationale that a control tower is needed to address the climate crisis, achieve carbon neutrality, and expand renewable energy. Although the Ministry of Environment is responsible for carbon neutrality policy, the energy functions necessary for implementation have been under the Ministry of Trade, Industry and Energy, leading to criticism of a lack of consistency and slow policy execution.

Accordingly, President Lee Jaemyung initially pledged to establish the Ministry of Climate and Energy, but through discussions with the National Policy Planning Committee, the direction shifted toward expanding and reorganizing it into the Ministry of Climate, Energy and Environment. There were concerns that removing only the climate function from the Ministry of Environment would significantly reduce its role as a government ministry, and arguments were made that the Ministry of Environment’s cooperation is necessary for various energy policies, such as environmental impact assessments.

However, the industrial sector is expressing concern that the absorption of energy policy by the regulation-focused Ministry of Environment could weaken the role of energy policy in promoting industry. These concerns have also been strongly voiced within the ruling party. Lee Eonju, Supreme Council member of the Democratic Party of Korea, argued, "The main functions of the Ministry of Environment are to regulate and control companies and other ministries’ policies in response to climate change and for environmental preservation. Adding the function of fostering the energy industry to such a ministry is like mixing oil and water."

In response, Lee Changgyu, Director of Organization at the Ministry of the Interior and Safety, stated at the briefing, "We believe that any conflicts or clashes resulting from the transfer of functions will actually be resolved by uniting the two functions under a single minister."

There are also concerns that this reorganization could lead to the bifurcation of energy policy. According to the government’s announced plan, most of the energy policy offices under the second vice minister of the current Ministry of Trade, Industry and Energy-including the Energy Policy Office, Electricity Policy Office, Renewable Energy Policy Office, and Hydrogen Policy Office-will be transferred to the Ministry of Climate, Energy and Environment.

However, the Resource Industry Policy Bureau, which oversees oil, gas, coal, and minerals, is expected to remain with the Ministry of Trade and Industry. As traditional energy functions are separated, there are concerns that the efficiency of energy policy may decline.

Energy-related public corporations are also expected to fall under different ministries. Among the major energy public corporations currently under the Ministry of Trade, Industry and Energy, Korea Electric Power Corporation, power generation companies, and Korea Hydro & Nuclear Power will fall under the jurisdiction of the Ministry of Climate, Energy and Environment. In contrast, Korea National Oil Corporation and Korea Gas Corporation are expected to remain under the Ministry of Trade and Industry.

In particular, as nuclear power policy becomes divided, opposition within the nuclear industry is intensifying. While nuclear industry policy will move to the Ministry of Climate, Energy and Environment, the office responsible for nuclear power plant export operations will remain with the Ministry of Trade and Industry. As a result, the Ministry of Climate, Energy and Environment will lead policies on energy supply planning and nuclear power plant construction and operation, while the Ministry of Trade and Industry will handle only nuclear power plant exports.

Within the nuclear industry, there are concerns that the transfer of the nuclear industry to the Ministry of Climate, Energy and Environment could weaken the momentum for socially sensitive policies such as new nuclear power plant construction, continued operation of existing plants, and permanent disposal of high-level radioactive waste. All of these are policies opposed by environmental groups. Disputes over nuclear policy are expected to arise immediately in the newly formulated 12th Basic Plan for Electricity Supply and Demand following the government reorganization.

Within the Ministry of Trade and Industry, there are also concerns about the separation of energy and trade functions at a time when energy is emerging as a core national security agenda. An official from the ministry stated, "If energy is viewed solely from the perspective of climate crisis response, considerations for energy supply, domestic and international resource development, and energy security may be weakened."