South Korea will merge a series of state-owned energy and transportation companies as part of broader public institutional reforms. The reform aims to address growing demand for electricity, reduce operating costs, and enhance the country's competitiveness. Korea's Vice Minister of Finance and Economy Heo Jang said at a press conference that Korea National Petroleum Corporation and Korea Gas Corporation will be merged, and five utility divisions under the Korea Electric Power Corporation will also be integrated. The Korea Coal Corporation, which has closed all of its mines, will be liquidated, and the four local port authorities will also be merged. The government said the restructuring is aimed at integrating institutions with similar functions, merging subsidiaries and small entities to help the country better respond to the strong demand brought about by the artificial intelligence and semiconductor industries. According to the South Korean side, the plan will affect 109 public institutions, accounting for about 20% of the total. “The government has developed plans to redesign the functions and roles of public institutions to focus on core responsibilities by streamlining overlapping and duplicated functions, reducing non-core activities, and better integrating scattered work.” Heo display.

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