The South Korea's Ministry of Climate, Energy and Environment is a core institution for future generations
- Strengthening climate and energy policy research
- Enhancing energy industry promotion functions
- Supporting research governance is essential
With the launch of the new government, the Ministry of Climate, Energy, and Environment, which oversees climate, energy, and the environment, has officially been launched. The new ministry was launched with a complex task of responding to climate change, reducing carbon, and preserving the environment, as well as fostering the energy industry and supporting corporate growth. With internal and external issues such as a surge in power demand and global energy supply chain instability coupled with the recent spread of AI data centers, the Ministry of Climate, Energy and Environment must establish a policy stance for current and future generations while responding to global change.
However, if it is just a simple reorganization, it is difficult to guarantee results. Above all, policy stability and structural innovation must be supported together. Looking at the energy work transferred from the Ministry of Industry, Korea's main ministries have been changed several times to the Ministry of Commerce, Industry and Energy, the Ministry of Trade, Industry and Energy, the Ministry of Knowledge Economy, and the Ministry of Trade and Industry. On the other hand, the United States has maintained policy consistency without significant changes since the launch of the Department of Energy (DOE) in 1977. Korea also urgently needs to supplement its functions to support unwavering mid- to long-term policies and industrial growth.
In particular, it is necessary to strengthen the research function of climate and energy policies. Currently, the Korea Energy Agency is in charge of renewable energy and energy efficiency systems, and the Korea Energy Economic Research Institute is in charge of macro-energy policies and statistics. However, the dedicated research function that deals with the climate and energy industry and energy mix as a whole and presents mid- to long-term implementation strategies is insufficient. The fact that national research institutes (LBNL, SANDIA, ARGONNE, etc.) under DOE conduct technology development and policy research at the same time and come up with a clear action plan has great implications for Korea.
Another key is the function of promoting the energy industry. Korea has secured competitiveness to export in the fields of renewable energy, electricity, and nuclear power, but small and medium-sized companies are being alienated from global expansion due to the structure centered on large corporations. In order to become a global company, policy centers such as government-level overseas certification support, international joint R&D, and talent training are urgently needed. As in the case of the United States and Germany, the role of exclusively supporting energy promotion should be strengthened.
Finally, strengthening research governance should be supported. In the energy industry, mid- to long-term infrastructure innovation is the key, and a structure in which research results are linked to policies is needed. Just as DOE links strategic R&D with empirical projects with 17 research institutes under its wing, Korea should strengthen the systematic governance of research institutes under the Ministry of Climate, Energy and Environment. Currently, major energy public enterprises have been incorporated into the management system, but the research institute-level strategic management system for rapid innovation is still insufficient.
The launch of the Ministry of Climate, Energy and Environment could be a turning point in Korea's energy policy. However, beyond the simple reorganization of ministries, the two pillars of policy stability and strengthening research and promotion functions must be set at the same time. Otherwise, South Korea could fall behind in the global energy transition race.
By Alex Paek (Paek, Jong Geun), CEO of the Korea-U.S. Industrial Cooperation Association (KUICA), Washington D.C.
Published in Maeil Business Newspaper, October 1, 2025