Ruling Party Establishes Ministry of Climate and Energy, Opposition Criticizes Nuclear Phase-Out... Ministry of Industry 'Anxious' Ahead of Presidential Election

Ruling and Opposition Presidential Contenders Criticize Ministry of Industry Split Pledge and Anti-Nuclear Policy
Expansion of SoBuJang and Energy Organizations under Moon Government Also Checks Ministry of Industry by Other Departments

Democratic Party presidential primary candidates Rep. Lee Nak-yeon and Gyeonggi Province Governor Lee Jae-myung attended the 20th presidential election candidate 'One Team' agreement ceremony held at the central party office in Yeouido, Seoul, on the 28th. After the event, they exchanged greetings. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Kwon Haeyoung] Ahead of the presidential election scheduled for March next year, the Ministry of Trade, Industry and Energy (MOTIE) is on edge as all the 'top 4' presidential candidates have either announced plans to split the ministry or criticized the nuclear phase-out policy. Regardless of which candidate wins, the ministry faces internal tension due to the potential fallout from the division of the ministry or the nuclear phase-out policy pursued during the Moon Jae-in administration. While MOTIE has recently succeeded in expanding its organization in areas such as materials, parts, equipment, and energy, it has not been viewed favorably by other ministries.

According to government sources on the 28th, at the 'Presidential Primary Candidates' Carbon Neutrality Pledge Presentation' held by the Democratic Party of Korea the previous day, Gyeonggi Province Governor Lee Jae-myung and former Democratic Party leader Lee Nak-yeon reiterated their calls for the establishment of a new 'Ministry of Climate and Energy.'

They believe a dedicated ministry is necessary to address climate change and carbon neutrality. Currently, climate change-related responsibilities are divided mainly between MOTIE and the Ministry of Environment, and the general proposal for the new Ministry of Climate and Energy involves separating the energy sector from MOTIE and merging it with the Ministry of Environment.

MOTIE is broadly divided into three sectors: industry, energy, and trade. The influence of government-led industrial policies has waned compared to the past due to the strengthening of private large corporations' competitiveness, and trade policies are limited by the existence of counterpart countries, restricting government maneuverability. However, the energy sector still holds strong regulatory authority, including permits and approvals. From MOTIE's perspective, downsizing through the separation of the energy sector is neither desired nor acceptable.

An official from MOTIE said, "In the past, the main topic during presidential elections was whether trade affairs would fall under MOTIE or the Ministry of Foreign Affairs, but now the Foreign Ministry shows little interest in trade," adding, "Since leading presidential candidates have proposed establishing a Ministry of Climate and Energy, the possibility of separating the energy sector is our greatest concern."

In the opposition camp, both leading candidates, former Prosecutor General Yoon Seok-youl and former Board of Audit and Inspection Chairman Choi Jae-hyung, have clashed with the Blue House over the nuclear phase-out policy, putting considerable pressure on MOTIE, which is the main ministry responsible for nuclear policy.

Former Prosecutor General Yoon confronted the current administration by investigating allegations of manipulated economic evaluations related to the early shutdown of the Wolseong Unit 1 nuclear reactor, alongside the investigation of former Justice Minister Cho Kuk's family. Earlier this month, he met with Professor Joo Han-kyu of Seoul National University's Department of Nuclear Engineering, who criticized the government's energy policy, advocating for a "hasty revision of the nuclear phase-out." Yoon mentioned that the nuclear investigation was a catalyst for his resignation as Prosecutor General and his entry into politics. Former Chairman Choi also clashed with the Blue House and the ruling party during the audit of the early shutdown of Wolseong Unit 1, resigned from his position, and launched a presidential bid. MOTIE, responsible for the nuclear phase-out policy, cannot avoid feeling the burden of the aftermath.

To make matters worse, other ministries do not view MOTIE favorably. Following President Moon's directive, a dedicated vice minister position for energy will be established on the 9th of next month. With three vice ministers and ten senior officials at the 1st grade level (senior executive service or bureau chief level), MOTIE will become a giant ministry with the largest number of senior officials among central government ministries. The Energy Office will add two bureaus and four divisions, recruiting 26 new staff members. While virtually all ministries seek organizational expansion and increased personnel, MOTIE's growth in materials, parts, equipment, and energy amid Japan's export restrictions and carbon neutrality implementation is not welcomed by others. The Ministry of Economy and Finance's decision to reduce the personnel increase by seven compared to the original plan by the Ministry of the Interior and Safety (which proposed two bureaus, four divisions, and 33 new staff) is interpreted as a check on MOTIE.

Another MOTIE official said, "There is a particular shortage of energy personnel, and personnel stagnation is also severe, so while the organizational expansion is welcome, external scrutiny is very harsh," adding, "Every presidential election, there is discussion about separating duties, and inter-ministerial checks seem to intensify, so we are genuinely concerned about the start of the next government."