With Lee Jae-myung, the Democratic Party of Korea's presidential candidate, elected as the 21st president, the Ministry of Trade, Industry and Energy and the Ministry of Environment are abuzz. During the presidential campaign, he proposed the establishment of a Ministry of Climate and Energy as a 'control tower for climate and energy policy.' This plan aims to integrate the climate aspects of the Ministry of Environment and the energy aspects of the Ministry of Trade, Industry and Energy. Given this movement, there is a cautious atmosphere within the two ministries, weighing the pros and cons of establishing a Ministry of Climate and Energy.
First, within the Ministry of Trade, Industry and Energy, there are concerns that the increasing interconnection between industry, trade, and energy might make the establishment of a Ministry of Climate and Energy a 'poison.' A Deputy Director noted, 'Since Donald Trump became president of the United States, trade issues have become more closely linked with industry and energy, and if the energy office is separated from the ministry, quick responses in terms of trade might be challenging.'
The close connection between the energy sector and industrial and civil policies is also cited as a concern. A Director commented, 'The energy sector is not just about adjusting the proportion of nuclear or renewable energy, but it is also closely linked with artificial intelligence (AI), electric vehicles, and industrial electricity rates,' adding, 'Climate policy has the clear purpose of carbon reduction, so its policy orientation might differ from the energy sector.'
The Ministry of Trade, Industry and Energy and the Ministry of Environment are also paying attention to overseas cases where climate and energy sectors were merged and then separated. An official from the Ministry of Environment said, 'Countries like Germany and France created ministries combining climate and energy but have recently separated them again,' and added, 'I don't understand why a ministry that combines climate and energy is necessary if there is enough resolve for climate policy.'
In fact, Germany emphasized the importance of climate policy in 2021 by reorganizing the Federal Ministry for Economic Affairs and Energy (BMWi) into the 'Federal Ministry for Economic Affairs and Climate Protection (BMWK),' but this year, they transferred the climate institutional sector back to the Ministry of Environment. The reason cited was the need for a balance between economic and climate policies and that climate is more closely linked to environmental protection. In France, there was also a ministry handling environment and energy, but recently, energy policy has been transferred to the Ministry of Economy.
Among non-executive staff, there is also a sentiment of regret that opportunities to work in the energy sector might decrease. A Deputy Director expressed this frustration, stating, 'Even with long-term service in the Ministry of Trade, Industry and Energy, it's challenging to be recognized as an 'expert in the field,' while energy-related departments are places where expertise and rarity are acknowledged.'
On the other hand, there are also positive evaluations. As the Lee Jae-myung administration emphasizes the expansion of renewable energy, the establishment of a Ministry of Climate and Energy could assist in the swift implementation of policies. An official from the Ministry of Environment said, 'If the ministry is reorganized in line with the president's national philosophy, the creation of an institutional basis for expanding renewable energy might accelerate.'
In the Ministry of Trade, Industry and Energy, there's also hope that organizational separation could expand opportunities for promotion and appointment. The ministry suffers from severe personnel bottlenecks, taking over 25 years to become a Deputy Minister after starting as a Grade 5 official. A Deputy Director mentioned, 'If a new ministry is created, new roles like the personnel team and Spokesperson office could emerge,' adding, 'While senior officials like ministers and vice ministers have a cautious stance, field staff often see it as an opportunity.'
Some suggest that just as there was controversy when the Small and Medium Business Administration transitioned to the Ministry of SMEs and Startups, this reorganization might proceed without major issues. A Director at the Ministry of Trade, Industry and Energy remarked, 'Regardless of how the organization changes, what ultimately matters is performance,' and, 'Even if the organization is reorganized, it won't likely lead to significant problems.'
Meanwhile, the Ministry of Trade, Industry and Energy is busier than ever dealing with tariff policies and demands to resolve non-tariff barriers from U.S. President Donald Trump. President Lee Jae-myung, too, faces the complex task of 'Korea-U.S. trade negotiations' early in the administration. Given the pressing external trade environment, it's uncertain if separating the ministry's organization would be beneficial. Perhaps now is the time for the government and industry to unite voices in responding to domestic and international crises, rather than focusing on organizational restructuring.