Energy Expansion to Reshape Ministry of Industry Organization This Month... Will It Revitalize the Atmosphere?

Discussion on Establishing Hydrogen Bureau and Power Bureau
Attention on Whether the Energy Vice Minister Position to Be Created Next Month Will Revitalize the Stagnant Atmosphere

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy's organizational restructuring, centered on expanding the energy division, will take shape this month. Discussions are underway to establish a Hydrogen Bureau, Power Bureau, and Renewable Energy Policy Bureau, with the restructuring expected to coincide with the creation of a dedicated Vice Minister position for energy in March. Attention is focused on whether the Ministry, which has been stagnant due to controversies over nuclear phase-out, can revitalize its atmosphere through a major organizational overhaul.

According to related ministries on the 10th, the Ministry of Trade, Industry and Energy is discussing with the Ministry of the Interior and Safety and the Ministry of Economy and Finance a restructuring plan to split the current temporary Renewable Energy Policy Group into two regular bureaus: the Hydrogen Bureau and the Renewable Energy Policy Bureau, and to establish a Power Bureau. The restructuring plan is expected to be finalized within this month.

Currently, the Ministry's energy organization consists of one office and four bureaus under the Energy Resources Office: the Energy Innovation Policy Bureau, Resource Industry Policy Bureau, Nuclear Industry Policy Bureau, and the temporary Renewable Energy Policy Group. President Moon Jae-in announced last year that a Vice Minister for energy would be created as part of the carbon neutrality policy, and in this process, increasing the number of bureaus is being discussed. Since the position will be elevated to a Vice Minister level, it is also known that the structure may expand from one office to two offices.

At the bureau level, there is a proposal to split the Renewable Energy Policy Group into the Hydrogen Bureau and the Renewable Energy Policy Bureau. Although the Hydrogen Act will be enforced this month and the Hydrogen Economy Committee is operating under the Prime Minister's chairmanship to promote the hydrogen economy, the Ministry of Trade, Industry and Energy, the main ministry in charge, currently does not even have a dedicated bureau for hydrogen. Only one division under the Renewable Energy Policy Group, the New Energy Industry Division, handles hydrogen-related tasks.

Accordingly, there is a discussion to separate the hydrogen organization from the Renewable Energy Policy Group to create a separate bureau and to upgrade the Renewable Energy Policy Group to the Renewable Energy Policy Bureau. It is reported that the Ministry currently has only about two dedicated personnel each for solar power, wind power, and other renewable energies. The Ministry's rationale is that, in line with the government's comprehensive energy transition policy, the temporary organization responsible for renewable energy should be regularized and personnel increased.

The establishment of a Power Bureau is also under consideration. The Ministry has proposed integrating the Power Industry Division and Power Market Division, both under the Energy Innovation Policy Bureau, into a bureau-level organization to prepare for increased electricity usage due to carbon neutrality.

A government official said, "The Ministry of Trade, Industry and Energy and the Ministry of the Interior and Safety are discussing various scenarios regarding the organizational restructuring," adding, "It has not yet been decided to what extent the number of bureaus will be increased or personnel expanded."

The Ministry's restructuring is set to take place amid a turbulent atmosphere caused by controversies over nuclear phase-out and the deletion of nuclear documents, which led to the detention of two employees. If the amendment to the Government Organization Act to create the Vice Minister for energy passes the National Assembly this month, it will take effect next month, one month later. The restructuring plan will also be finalized by the end of this month and implemented alongside personnel appointments for the Vice Minister for energy. There is also a possibility of a cabinet reshuffle including the Minister of Trade, Industry and Energy, so a major revitalization of the atmosphere is expected.

Some argue that, regardless of the nuclear phase-out controversy, the government should empower the Ministry's energy division expansion to actively promote energy transition policies. As major countries such as the United States and Europe are rushing to introduce carbon border taxes and strengthen environmental regulations, there is a call for a policy-driven push for energy transition.

This content was produced with the assistance of AI translation services.