President Lee Jae-myung is expected to face an 'uncomfortable coexistence' with energy public institution heads appointed during the Yoon Suk-yeol administration. President Lee plans to establish different energy policies from the Yoon administration, such as creating a Ministry of Climate and Energy and expanding renewable energy, raising concerns about potential policy discrepancies between the two sides.
This situation arises because some 'last-minute appointees' from the end of the Moon Jae-in administration only completed their terms during the second or third year of the Yoon administration. Many energy public institution heads only started their terms last year, and the vacancy in the presidency this year caused further delays in new appointments. This year, President Lee and the new Minister of Trade, Industry and Energy can appoint leaders for only about one-third of the energy public institutions under the Ministry of Trade, Industry and Energy.
According to the public institution management information disclosure system (Alio) on the 11th, only eight institutions out of 24 energy state enterprises, quasi-government agencies, and other public institutions under the Ministry of Trade, Industry and Energy (excluding the Korea Electric Power Corporation Graduate School of Nuclear Engineering) will see a leadership change this year.
Specifically, the Korea Power Exchange and the Korea Gas Technology Corporation currently have vacant leadership positions. The chairman of the Korea Power Exchange, Jeong Dong-hee, who was appointed in April 2021, recently resigned, stating, “It is appropriate to step down before the inauguration of the new administration,” and left in late May. The president of the Korea Gas Technology Corporation has been vacant since May 2024, following the dismissal of President Jo Yong-don.
Some organizations continue to have their former leaders in charge, as appointments for successors are delayed despite the end of their terms. Notable examples include the Korea Energy Agency and KEPCO KPS. All of these leaders were appointees from the Moon Jae-in administration in early 2021 or 2022, and they have served under the Moon, Yoon Suk-yeol, and Lee Jae-myung administrations. This is due to the overlapping terms of the Moon administration’s last-minute appointments and the shorter term (two years and 11 months) for heads appointed by former President Yoon.
In the latter half of this year, the leadership terms for major energy public enterprises like the Korea Gas Corporation, Korea National Oil Corporation (KNOC), Korea Hydro & Nuclear Power, and Korea District Heating Corporation are set to expire. Considering that the selection process from recruitment to appointment generally takes three to four months, appointing new leaders is expected to be possible only by early next year.
President Lee must work with 12 heads appointed by the previous administration for at least six more months. According to Alio, four institutions are scheduled for term expirations next year, and a total of nine, including five power generation public companies, the following year. Institutions like the Korea Mine Rehabilitation and Mineral Resources Corporation, Korea Petroleum Quality & Distribution Authority, and Korea Electric Power Corporation Technology Co., Ltd., have leadership terms extending until 2028. Similar to the 'one roof, two families' dynamics seen under the Moon administration with Yoon's appointments, a similar situation continues under the Lee administration.
The problem is that energy policy directions change significantly with each administration. The Yoon administration pursued a pro-nuclear policy, whereas the Lee administration highlights the expansion of renewable energy, introducing initiatives like solar pensions, wind pensions, and realizing RE100 (100% renewable energy use). There are concerns that differing policy orientations between the administration and institution leaders could hinder the implementation of national projects.
The issue of whether the head of the Korea Electric Power Corporation will be replaced is of particular interest among energy public institutions. KEPCO is a key public enterprise leading projects closely linked to government budgets and permits, such as grid expansion and transmission line construction, and is directly affected by changes in government policy. There is even a saying that 'the KEPCO president does not have a fixed term,' indicating frequent leadership changes with each administration. This raises uncertainty about whether the current KEPCO president, Kim Dong-cheol, will complete his term ending in September next year.
There is also the possibility of some public institution heads voluntarily resigning. Due to a past blacklist scandal, direct resignation pressure from ministry ministers or Blue House aides is no longer possible, but indirect pressure through management evaluations or state audits still exists. Democratic Party of Korea lawmaker Jeong Seong-ho publicly stated, “Public institution heads with conflicting national philosophies should voluntarily resign.”
Meanwhile, legislative proposals have been introduced in the political sphere to address the recurring controversy over the replacement of public institution heads during each administrative transition. Representative Park Hae-cheol proposed a bill to shorten the terms of public institution heads to two years, ending automatically three months after the presidential term. Representative Yang Bu-nam also proposed a revision requiring the Public Institution Management Committee to immediately notify the relevant National Assembly Standing Committee of candidates for deliberation and decision, allowing for a re-decision if deemed unsuitable.
The institutional reform to align the President's term with the institution leaders' terms is a point of consensus between the ruling and opposition parties to some extent. However, there are criticisms that retroactive application to leaders already in office has its limitations even if the law is amended. In response, Professor Park Sang-in of the Graduate School of Public Administration at Seoul National University suggests that “public institution heads should undergo a reappointment structure when the administration changes to reduce unnecessary and exhausting controversies.”