Climate Minister's Zigzag Course Hinders Industrial Competitiveness

Criticism emerges that Minister of Climate, Energy and Environment Kim Sung-whan’s ‘zigzag course’ is hindering industrial competitiveness, as he holds the key to national energy and environmental infrastructure. His remarks overturning a semiconductor industrial complex support plan he himself finalized, or delaying a state-led power grid project due to local complaints, are seen as self-inflicted policy chaos.

According to the Ministry of Climate, Environment and Energy on the 19th, Minister Kim directly signed the ‘Partial Revision of the National Water Supply Basic Plan’ on the 5th of last month. The plan allocates a total of 2.2143 trillion Korean won—454.3 billion won more than initially planned—to build a water supply facility with a capacity of 1.072 million cubic meters, an increase of 310,000 cubic meters from the original plan. This was a national commitment to ensure smooth operation of the semiconductor complex.

However, three weeks later on the 26th of last month, Minister Kim stated on a radio broadcast, “Samsung and SK will use electricity equivalent to 15 nuclear power plants in Yongin,” adding, “Electricity should go to regions with abundant supply.” He had just finalized a large-scale national investment plan to secure water supply for Yongin, yet reversed his stance. This sparked the ‘Honam relocation proposal.’

◇Controversies Pile Up Four Months After Inauguration

The Lee Jae-myung government’s ‘energy highway’ (nationwide power grid construction) has also stalled due to Minister Kim’s political calculations. A representative case is the urgent expansion project of the Dongseoul Substation in Hanam. This site is the terminus of the East Coast-Dongseoul HVDC (high-voltage direct current transmission) line, which sends power generated on the East Coast to the capital region. The project has been delayed for years as Hanam City withheld permits due to resident opposition.

In response, the government designated the project as a national priority power grid in October, establishing a fast-track process to shorten permit procedures to 60 days. This decision aimed to expedite the project regardless of Hanam’s opposition. Minister Kim was a government representative on the committee that made this decision.

However, after a recent meeting with Hanam residents, Minister Kim instructed KEPCO to “review alternative sites proposed by residents.” Consequently, KEPCO abandoned its permit application for the optimal site, despite winning an administrative appeal. Expanding substations and converter stations is essential to supply East Coast power to the capital region, including Yongin. While the ministry claims it is “gathering opinions to persuade residents,” an energy expert criticized it as “populist administration ahead of the June local elections.”

◇“A Foreseeable Outcome of Merging Environment and Energy”

Minister Kim holds significant authority over decisions like new nuclear power plant construction and electricity rate adjustments. Yet his statements have been inconsistent. As a former mayor of Nowon District, he advocated for phasing out nuclear power, but during his confirmation hearing, he said, “Nuclear power is unavoidable.” After taking office, he retreated, stating, “New nuclear power plant construction will be decided based on public opinion.” Recently, in a public forum, he shifted back to support, saying, “It’s awkward for an exporting country not to build nuclear power plants domestically.”

Regarding electricity rates, he made factually incorrect claims such as, “Rates won’t rise even if renewable energy increases,” and “The previous administration didn’t raise residential rates by a single won.” A business insider remarked, “If energy policy signals waver, companies cannot establish long-term plans.”

Some interpret his inconsistent actions as a result of merging climate, environment, and energy policies. Climate and environment policies are regulatory, while energy policies are promotional, and trying to satisfy both leads to contradictory statements. Critics argue that his political rhetoric—changing expressions based on context and audience—blurs policy signals. An energy expert warned, “While political rhetoric may placate both sides, energy policy cannot afford that. If the minister, who holds both regulatory and promotional authority, remains only a mediator, policy paralysis will persist.”