Seoul: The government announced a sweeping restructuring plan for state-run firms, which includes significant mergers among energy suppliers. The plan aims to reduce the number of state-run institutions by 109 while ensuring job security for current employees.

According to Yonhap News Agency, the government introduced the DIET initiative for state-run firms to adapt to industrial changes propelled by artificial intelligence and demographic shifts. DIET symbolizes dynamic game changers, integrated entities, efficient players, and a transparent system. As part of this initiative, five state-run power generators-Korea South-East Power Co., Korea Midland Power Co., Korea Western Power Co., Korea Southern Power Co., and Korea East-West Power Co.-will be merged into a single entity.

Furthermore, the government plans to consolidate the Busan Port Authority, Incheon Port Authority, Ulsan Port Authority, and Yeosu Gwangyang Port Authority into one entity with four regional branches, maintaining their existing functions. Additionally, the Korea National Oil Corp. and Korea Gas Corp. will be merged into a single company.

In contrast, the Korea Land and Housing Corp. will be divided into two separate organizations. One will focus on land development and housing construction, while the other will handle housing welfare. This separation aims to resolve the inefficiencies arising from a single entity managing both development and welfare functions, which have differing priorities.

The comprehensive restructuring plan seeks to streamline the number of state-run bodies by consolidating those with overlapping roles. The government reassured employees that job security would be guaranteed, with no deterioration in wages or benefits following the mergers. Additionally, the government plans to implement support measures such as improved welfare programs and performance-based incentives.