
Plan includes merging energy and port suppliers and splitting Korea Land & Housing Corp.
South Korea announced a major restructuring of state-run firms, merging five power generators, four port authorities, and oil and gas corporations, while splitting Korea Land & Housing Corp. to reduce institutions by 109.
AI-generated summary
South Korean government unveiled the DIET initiative to restructure state-run firms responding to industrial and demographic shifts.
By Kang Yoon-seung
SEOUL, Sept. 3 (Yonhap) -- The government said Thursday it will carry out a major restructuring of state-run firms, including mergers among energy suppliers, with the plan eventually reducing the number of state-run institutions by 109 while guaranteeing job security for existing workers.
The government unveiled the DIET initiative for state-run firms, aimed at responding to industrial transformation driven by artificial intelligence (AI) and demographic changes. DIET stands for dynamic game changers, integrated entities, efficient players and a transparent system.
Under the plan, the country will merge and restructure 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. -- into a single entity.
The government also plans to merge the Busan Port Authority, Incheon Port Authority, Ulsan Port Authority and Yeosu Gwangyang Port Authority into a single entity with four regional branches that will continue carrying out their existing roles.
The government will additionally consolidate the Korea National Oil Corp. and Korea Gas Corp. into a single company.
In contrast, the Korea Land & Housing Corp. will be split into two organizations, one responsible for land development and housing construction and the other for housing welfare.
"The separation is aimed at addressing inefficiencies caused by having a single organization simultaneously perform development functions, which prioritize speedy project implementation, and housing welfare functions, which emphasize the public interest," the government said.
The overall blueprint will eventually reduce the number of state-run institutions by 109 by consolidating organizations that perform similar roles.
"We plan to guarantee workers' job security and ensure their wages and benefits do not deteriorate following the mergers," the government said. "We will also proactively prepare various support measures, including enhanced welfare programs and performance-based incentives."

정부는 법원의 홈플러스 회생계획 인가 결정에 따라 관계기관 TF 회의를 열고 근로자와 협력업체에 대한 지속적인 지원과 회생 계획 이행 상황 모니터링 방침을 밝혔다.

Seoul shares closed higher Thursday, driven by easing oil prices after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran. The KOSPI rose 0.26 percent to end at 6,579.48, while the Korean won rose against the U.S. dollar.

The South Korean won rose to a near 14-month high of 1,359.3 per dollar on Thursday, driven by a strengthening Japanese yen and local exporter dollar sales ahead of a U.S. employment report.

President Lee Jae Myung held a closed-door meeting with Hyundai Motor Group Executive Chair Euisun Chung, likely discussing a 9 trillion-won investment and government megaprojects.

Seoul shares closed higher Thursday, driven by easing oil prices after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran. The benchmark KOSPI rose 0.26 percent to 6,579.48, while the Korean won strengthened against the dollar.

Seoul shares closed higher Thursday, driven by easing oil prices after U.S. President Donald Trump downplayed a prolonged conflict with Iran, helping the KOSPI rebound 0.26 percent.