South Korea will merge power utilities, oil companies, ports and other public institutions as part of a broader overhaul, relevant ministries said in a joint announcement on the Republic of Korea Policy Briefing website.
The government plans to restructure 109 public institutions, aiming to reduce costs and improve competitiveness as rising electricity demand increases the need for more efficient public-sector operations.
Five power generation utilities will combine under Korea Power, allowing the government to pool their capabilities and support an energy transition centered on renewable sources.
The Korea National Oil Corporation and Korea Gas Corporation will merge to strengthen the country's energy security framework and improve the management of national energy supply and demand.
Korea Coal Corporation will close all its mines and cease operations before the government liquidates the company, aligning its operations with South Korea's broader shift toward a renewable-energy-centered system.
Four port authorities will also be combined into a single organization, bringing together agencies with similar functions that currently operate across different regions, the government said.
The port consolidation aims to improve international competitiveness by creating a more coordinated structure for South Korea's ports and eliminating overlapping responsibilities among regional authorities.
The wider overhaul seeks to support national growth, improve global competitiveness and raise public satisfaction by delivering services around users' needs, while also strengthening fiscal sustainability through lower costs.
The government plans to redistribute core capabilities and combine institutions with similar or overlapping functions, creating more streamlined organizations and improving the delivery of public services.