The Ministry of Climate, Energy and Environment (MCEE) passed the plenary session of the National Assembly on 26 September 2025 and it is expected to be established in October. In addition to being responsible for environment, the new Ministry will be responsible for both climate policy and energy policy, representing the new government’s intention to implement both policies in a consistent and expanded ways.
1. Key organizational changes
- All energy related functions will be transferred from the Ministry of Trade, Industry and Energy (MOTIE) to the new MCEE, other than natural resources and overseas nuclear power projects.
- The development of the domestic nuclear power industry will be the responsibility of the new MCEE.
- The First Vice-Minister will oversee environmental matters and the Planning and Coordination Office and Water Management Policy Office will report to the Vice-Minister.
- The Second Vice-Minister will oversee climate and energy matters and the Climate and Energy Policy Office and Energy Transition Policy Office will report to the Vice-Minister.
- To assist in the improvement of the national grid, there will be a new Director General for Power Grid Policy in the Energy Transition Policy Office.
- Authority over 21 energy-related public enterprises, including Korea Electric Power Corporation (KEPCO), Korea Hydro & Nuclear Power (KHNP), Korea Power Exchange (KPX), Korea Energy Agency, Korea District Heating Corporation (KDHC), and the five power generation companies, are expected to transfer to the new MCEE.
- Seven resource sector public institutions, including Korea Gas Corporation (KOGAS) and Korea National Oil Corporation (KNOC) will remain under the Ministry of Trade and Industry.
2. Key approvals for power generation projects transferred to the MCEE
| Legislation | Licences / Approvals | Relevant provisions |
|---|---|---|
| Electric Utility Act | Electric utility licenses | Article 7 |
| Business transfer/corporate merger or division/share acquisition approval | Article 10 | |
| Approval/notification of construction plans for electric installations for electric utility business | Article 61 | |
| Electrical Construction Business Act | Registration of electrical construction business | Article 4 |
| Electric Power Source Development Promotion Act | Approval of execution plan for electric power source development projects | Article 5 |
| Integrated Energy Supply Act | Permit for new establishment of heat production facilities | Article 6 |
| Collective energy business license | Article 9 | |
| Approval of the construction plan for the installation of supply facilities | Article 22 | |
| Special Act on the Promotion of Offshore Wind Power and Industry Development (to be enacted) | Selection of offshore wind power operators | Article 24 |
| Approval of implementation plan | Article 25 | |
| Special Act on Expansion of the National Power Grid | Establishment and approval of implementation plan | Article 11 |
| Special Act on Activation of Distributed Energy | Registration of distributed energy business | Article 8 |
| Examination of statement of power system impact assessments | Article 24 | |
| Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy | New and renewable energy certificate | Article 12-7 |
| Hydrogen Economy Promotion and Hydrogen Safety Management Act | Certification of Clean Hydrogen | Article 25-2 |
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[Korean version] 기후에너지환경부 출범
