Responsibility for renewable energy, nuclear power, and hydrogen policy will be transferred to the Environment Ministry. (Yonhap)
SEOUL, Sept.10 (Korea Bizwire) — South Korea’s sweeping government reorganization to expand the Ministry of Environment into a new Ministry of Climate, Energy and Environment is drawing sharp criticism from energy experts, who warn that dividing authority over fossil fuels and renewables could weaken policy coherence and threaten energy security.
Under the plan, the Environment Ministry will assume responsibility for renewable energy, nuclear power, and hydrogen policy. Yet the Ministry of Trade, Industry and Energy (MOTIE) will retain oversight of oil, gas and coal — which together account for nearly 90 percent of Korea’s energy consumption.
An Unprecedented Split
Analysts note that no other advanced economy has carved up energy policy in this way. “Separating gas from electricity is incomprehensible,” said Yoo Seung-hoon, professor at Seoul National University of Science and Technology. “As one of the world’s largest LNG consumers, Korea risks undermining power supply stability if management is split between ministries.”
According to government data, petroleum, coal and natural gas made up nearly three-quarters of Korea’s primary energy consumption in 2022. When accounting for fossil fuels used in electricity generation, their share rises to about 90 percent. Last year, more than half of the country’s electricity was generated from coal and gas, while nuclear and renewables combined fell short of a majority.
Liquefied natural gas storage at Korea Gas Corp.’s plant in Incheon, west of Seoul, on July 31, 2025. (Image courtesy of Yonhap)
Policy Risks and Market Impact
Critics argue that dual oversight will complicate coordination between power producers, which will fall under the new climate ministry, and gas suppliers, which remain under MOTIE. Some warn this could hinder.’s financial recovery efforts and ultimately feed into higher electricity bills.
The reorganization also risks undermining Korea’s 2030 carbon reduction goals. Gas, often viewed as a “bridge fuel” with roughly half the carbon emissions of coal, plays a critical role in the global transition to clean energy. But under the new structure, hydrogen policy will shift to the climate ministry while natural gas remains in MOTIE’s portfolio, splitting two interdependent sectors.
“Energy should have been moved in its entirety if the government wanted to consolidate climate and energy policy,” Yoo said. “Dividing responsibilities weakens energy security, undermines supply stability and will raise costs for households and businesses.”
92.8% of South Korean small and medium-sized enterprises (SMEs) believe they cannot meet national greenhouse gas reduction targets within the designated timeframe. (Image courtesy of Pixabay)
Carbon Capture and Future Outlook
State-run Korea National Oil Corp., which will remain under MOTIE, is leading major carbon capture and storage (CCS) projects, including converting depleted gas fields off Korea’s east coast into large-scale CO₂ storage facilities. CCS is central to Seoul’s pledge to cut emissions by 4.8 million tons annually by 2030.
Yet some experts say giving regulatory authority to an expanded Environment Ministry while leaving fossil fuel oversight with MOTIE creates more confusion than clarity. “An energy mix requires balance across nuclear, fossil fuels, gas and renewables,” said Sohn Yang-hoon, economics professor at Incheon National University. “If one side surges ahead while another is constrained, the result could be higher prices, blackouts, and instability.”
The government insists the restructuring will accelerate its carbon neutrality agenda. But for now, the debate underscores Korea’s dilemma: how to reconcile an ambitious green transition with an energy system still dominated by fossil fuels.
M. H. Lee (mhlee@koreabizwire.com)
