Presidential National Energy Committee to be Established

A national energy committee in which the president takes direct charge of oil and other energy related policies is to be established. An undersecretary-level position, which manages only the energy field will also be created, and plans to expand support for overseas oil-field development are being pushed. The Ministry of Commerce, Industry and Energy (MOCIE) announced yesterday that a “basic energy act” (tentative name) which provides a principle and the management system for energy polices has been proposed for legislation and will be presented at the National Assembly’s regular session in September.

According to the bill, the government will raise energy-related policies up on the nation’s agenda, and a national energy committee to unify and adjust the concerned departments, with the president heading the group as chairman, will be established.

About 25 people including each Minister from the Ministry of Finance and Economy, Ministry of National Defense, Ministry of Government Administration and Home Affairs, and Ministry of Commerce, Ministry of Industry and Energy and heads of central administrative organizations appointed by the president and civil energy specialists will work as the members of the committee

The committee sets securing the stabilization of energy demand and supply as the top priority policy, and will discuss major policies related to energy, business, and budget management.

Currently, a discussion whether to have the committee as a voting organization, which takes the form of a parliamentary administrative organization or as a deliberative organization, is being held.

An MOCIE authority said, “Up to the present, MOCIE’s Energy and Resources Policy Office has taken charge of energy related policies. However, with skyrocketing oil prices and a rapidly changing energy market, it has been decided to establish an energy committee in which the president takes direct control, such as those in other foreign countries, as the nation’s approach to the matter.”

With the “energy basic act” and the starting of the energy committee, MOCIE has decided to largely expand overseas resources development projects and increase the “special account for energy and resources development” budget.

A measure to secure the budget by levying a burden charge for petroleum importation to electricity generating resources and increasing the burden charge for liquefied natural gas (LNG) to supply an annual fund of 500-600 billion won is under consideration.

Meanwhile, aside from this matter, MOCIE has decided to newly create an undersecretary position, which takes charge of only the energy field, and will propose this to the Ministry of Government Administration and Home Affairs after discussions within the government.

This has been followed by the judgment that with the closing of the former Energy and Resources Ministry, there were difficulties in carrying out policies and diplomatic energy matters without a high-ranking government official with exclusive charge over energy policies.

Ki-Jeong Ko Byong-Ki Lee koh@donga.com eye@donga.com