Rumors of Establishing a New 'Climate Energy Department'... Ministry of Industry Begins Internal Organizational Assessment

Ministry of Industry, Research Project on 'Organizational Restructuring Plan through Organizational Diagnosis'
Energy and Trade Task Transfers Discussed Every Presidential Election... Preparing Response Logic Ahead of Next Election

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy has launched an internal organizational diagnosis ahead of next year's presidential election. Although it is already a 'giant ministry' combining the three sectors of industry, energy, and trade, it appears to be considering the possibility that discussions on transferring the energy or trade sectors to other ministries may be reignited if the organization becomes even larger with the establishment of a dedicated energy vice minister in August. In particular, as responding to carbon neutrality becomes more important, this move is also interpreted as a preemptive measure to counter the ruling party's discussions on creating a 'Climate Energy Ministry' and to prevent the dismantling of the ministry.

According to the Ministry of Trade, Industry and Energy on the 28th, it recently commissioned a research project titled 'Organizational Reform Plan through Organizational Diagnosis of the Ministry of Industry.'

The main contents of the research project include ▲analysis of rapidly changing domestic and international policy environments and exploration of the desirable roles of the industry, trade, and energy organizations ▲conducting an organizational diagnosis based on analysis of internal and external demands for organizational reform and review of policy implementation systems by sector ▲and proposing effective policy implementation systems and directions for organizational reform in preparation for expanded policy functions. The ministry plans to conduct the first organizational diagnosis around next month by operating a task force (TF) centered on directors and policy division chiefs.

An official from the ministry explained, "This is to consider the future policy direction of the ministry, such as responding to climate change and revitalizing jobs and local economies, and to determine the optimal government organizational structure accordingly."

A notable point is the proposal of an 'integrated organizational system' for the three sectors of industry, energy, and trade. The ministry stated, "In response to changes in the administrative environment, it is necessary to seek ways to improve work efficiency through strengthened communication among the industry, trade, and energy organizations and to explore organizational reform plans in preparation for expanded policy functions." Although the ministry emphasized that this is part of an annually conducted task, the timing of the organizational diagnosis ahead of next year's presidential election draws attention. As a giant ministry that has been repeatedly mentioned as a target for government organizational reform during every presidential election, this move is interpreted as an effort to create a rationale emphasizing the need for organic cooperation among the three sectors in preparation for future organizational reform discussions.

The biggest threat currently felt within the ministry is the discussion on establishing a Climate Energy Ministry. There are claims that energy should be separated from the Ministry of Trade, Industry and Energy and climate change tasks from the Ministry of Environment to create a Climate Energy Ministry. This is because carbon neutrality has become important in response to climate change, and former Democratic Party leader and presidential candidate Lee Nak-yeon also advocated for government organizational reform to establish a Climate Energy Ministry last month.

The trade sector has also been caught in a ping-pong situation between the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs during every presidential election. The trade sector was transferred from the Ministry of Foreign Affairs to the Ministry of Trade, Industry and Energy in 2013, and although President Moon Jae-in pledged to revive the Ministry of Foreign Affairs and Trade as a campaign promise, it was scrapped. There is a possibility that controversy will reignite in the next presidential election over which ministry will oversee trade and negotiation functions. Rumors have circulated inside and outside the government that the Ministry of Economy and Finance has recently shown interest in trade affairs. Since South Korea has signed numerous Free Trade Agreements (FTAs) with major countries, the proportion of domestic stakeholder coordination work has increased relatively, leading the Ministry of Economy and Finance to try to expand its influence in the trade sector as well.

The external perception of the giant Ministry of Trade, Industry and Energy is also a burden. Currently, the ministry has 10 first-grade officials (senior executive service level, director-level), the highest number among central government ministries. If the number of energy sector directors increases from one to two with the establishment of the energy vice minister in August, demands for splitting the ministry's functions may arise inside and outside the government.

Some argue that the current organizational structure of the ministry is desirable. Carbon neutrality is ultimately a problem faced by the industrial sector, which accounts for 36% of the country's total greenhouse gas emissions, and in the trade sector, to actively reflect corporate demands during external negotiations, the industry and trade sectors need to cooperate organically within one ministry as they do now.

A government official said, "Carbon neutrality is ultimately an industrial issue," adding, "To establish a realistic carbon neutrality implementation plan without damaging the competitiveness of our industry, the current structure of the Ministry of Trade, Industry and Energy, where industry and energy are in one ministry, is desirable."

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