The top priority of the new year’s public sector industry is expected to be the full-scale promotion of the’Korean version of the New Deal’ for energy conversion and overcoming Corona 19.
The government plans to prepare a’carbon neutral scenario’ to achieve’carbon neutrality in 2050′ in June, and establish a’core policy promotion strategy for each sector’ accordingly, such as power generation and transportation.
The Ministry of Trade, Industry and Energy will establish a’energy carbon neutral innovation strategy’, the Ministry of Land, Infrastructure and Transport will establish a ‘2050 carbon neutral roadmap for the building sector’, and the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries, and the Forest Service will also establish a carbon neutral strategy for each field.
Accordingly, not only energy public companies such as KEPCO, Korea Hydro & Nuclear Power (KHNP), and 5 power generation companies, but also public companies promoting new energy businesses such as Korea National Oil Corporation, Korea Water Resources Corporation, and Korea Rural Community Corporation, and Korea Land Information Corporation (LX), etc. Public companies implementing the New Deal policy are expected to take a faster step.
Korea Gas Corporation, Korea Gas Safety Corporation, and Korea Gas Technology Corporation are expected to launch a project to build a hydrogen economy this year.
The’Hydrogen Economy Promotion and Hydrogen Safety Management Act (Hydrogen Act)’ enacted in January 2019 will be enforced in February of the new year, and the government will come into force with the’Basic Plan for the Implementation of the Hydrogen Economy’, which can be called version 2.0 of the roadmap for hydrogen economy activation It is planned to be established by June.
Accordingly, KOGAS has already completed the revision of the articles of incorporation to include the hydrogen business in the scope of the project, and plans to announce its own Green New Deal vision sooner or later.
The Gas Safety Corporation launched the’Hydrogen Safety Technology Institute’ on January 1 of the new year, and plans to start building the’Hydrogen Supplies Testing Center’ with the goal of completion in December 2022.
Since the reorganization of the electricity rate system announced last month will be applied from January of the new year, whether or not the electricity rate will increase or decrease according to the new rate system is also of interest this year.
The new electricity tariff system introduces a’fuel cost index’ and charges a’climate environment charge’ separately, but since international oil price fluctuations affect fuel costs with a lag of about 6 months, electricity rates are unlikely to rise for the time being.
Another big issue in the public sector industry in the new year is that most of the public corporations will change their heads this year.
There are a total of 27 heads of public corporations who have completed their three-year term by the end of this year, including Kangwon Land’s president Tae-gon Moon, who ended his term of office on the 20th of last month.
In addition, if you add Incheon International Airport Corporation, which is currently vacant, and the Korea Land and Housing Corporation (LH), which has to search for a successor to the Minister of Land, Infrastructure and Transport by Korea Mineral Resources Corporation and Byun Chang-heum, 30 public companies out of 36 public companies will be newly headed this year. You are right or you are shopping.
Among them, IIAC has completed the competition for the president and judged by the Public Organization Steering Committee (Kongwoon Committee), and a person from the Vice Minister of Land, Infrastructure and Transport has been mentioned as the new head, and LH is known to have entered the procedure for the new president competition on the 28th of last month.
Considering that President Moon’s term of office is until May next year, some analysts say that it is unclear whether a large number of public institutions with a term of one year will be elected this year.
In addition, as the Ministry of Strategy and Finance has revised the’Public Institution Management Evaluation Manual’ and plans to give additional points to public companies that introduce a’job-oriented compensation system’ from the new year, public companies are urging to introduce the’job-based pay system’ in the new year. It’s a guiding concern.
In addition, depending on the passing of laws pending at the National Assembly, whether KEPCO will be able to directly participate in new and renewable energy projects such as offshore wind power, whether the Korean Horse Racing Association will be able to introduce an online bookmaker (betting) system, housing city guarantee. It is one of the main concerns this year that the monopoly of HUG’s housing pre-sale guarantee market will be broken.
Kim Cheol-hoon, Global Economic Reporter [email protected]