[Reporter’s Notebook] New Minister of Trade, Industry and Energy Promises to Restore Ministry’s Presence

[Sejong=Asia Economy Reporter Kwon Haeyoung] "When establishing policies and projects, we must strengthen collaboration with other ministries and become the center of a policy platform involving multiple ministries."

This is part of the inaugural speech by Moon Seung-wook, the newly appointed Minister of Trade, Industry and Energy. He hinted at placing emphasis on industrial support policies while highlighting the central role of the policy platform. Interpreted inversely, it means that currently, the Ministry of Trade, Industry and Energy's presence as a policy platform is minimal. Among internal staff, there was a reaction calling it a "pointed inaugural speech."

The Ministry of Trade, Industry and Energy is a definite promotion ministry when it comes to industrial policy. Cooperation with other ministries holding various authorities to support companies is essential. Taxation and budgeting are handled by the Ministry of Economy and Finance, workforce by the Ministry of Education and the Ministry of Employment and Labor, research and development (R&D) projects by the Ministry of Science and ICT, and environmental regulation flexibility by the Ministry of Environment. There is almost nothing the Ministry of Trade, Industry and Energy can do independently. As a result, the ministry's role is to draw the big picture of industrial policy, persuade each ministry, and secure cooperation to create the maximum support measures.

The problem is that recently, the Ministry of Trade, Industry and Energy's presence in various policy-making processes has diminished. This is especially pronounced when the Ministry of Economy and Finance takes the forefront. Even in the 'K-Semiconductor Belt Strategy' to be announced this week, core functions such as taxation and budgeting are all controlled by the Ministry of Economy and Finance. Given this situation, the Ministry of Trade, Industry and Energy has almost no autonomy in the policy-making process. It is reported that the Ministry of Economy and Finance notified the Ministry of Trade, Industry and Energy only one day in advance when scheduling the 'K-Semiconductor Valley Development Comprehensive Strategy' held on the 7th. This is also evident in media responses. It is said that a de facto gag order was imposed on the Ministry of Trade, Industry and Energy regarding semiconductor policies.

The inter-ministerial power struggle is not the main issue. The problem is that if the Ministry of Trade, Industry and Energy, which collects industry opinions, cannot lead related policies and discussions, government measures announced to support companies inevitably lose momentum. That is why Minister Moon's inaugural speech draws even more attention. We look forward to seeing whether the Ministry of Trade, Industry and Energy, the ministry in charge of the real economy, can leap forward as the center of the policy platform after Minister Moon's inauguration.