The Lee Jae-myung administration unveiled its first government reorganization plan on September 7. If passed by the National Assembly, the Public Prosecutors’ Office will be abolished for the first time in 77 years, while a Serious Crimes Investigation Agency and a Prosecution Agency will be newly established. The Ministry of Economy and Finance will also see its tax and budget functions separated for the first time in 18 years.

The presidential office, the ruling Democratic Party of Korea (DPK), and the government reached an agreement on the reorganization plan during a high-level party-government consultation held that day at the Prime Minister’s residence in Samcheong-dong, Jongno-gu, Seoul. If approved by the National Assembly, the central government structure, currently consisting of 19 ministries, 3 offices, 20 agencies, and 6 commissions, will be reshaped into 19 ministries, 6 offices, 19 agencies, and 6 commissions.

At a briefing held at the Government Complex in Seoul after the meeting, Interior and Safety Minister Yoon Ho-jung said, “This reorganization is the first step in implementing the administration’s key policy tasks and supporting the new government’s policy goals,” adding, “The aim is to streamline government functions and build a foundation to address complex challenges such as the climate crisis and the major transition to artificial intelligence (AI).”

The long-debated issue of which ministry the Serious Crimes Investigation Agency should belong to was resolved with its placement under the Ministry of the Interior and Safety. Meanwhile, the Prosecution Agency, tasked with initiating and maintaining prosecutions, will be established under the Ministry of Justice. Both agencies will be launched one year after the promulgation of the relevant legislation.

The Ministry of Economy and Finance will be split into a Ministry of Finance and Economy, which will serve as the control tower for economic policy, including taxation, treasury, and finance, and a Ministry of Planning and Budget, which will oversee budget formulation, fiscal policy and management, and the establishment of mid- to long-term national development strategies. The Minister of Finance and Economy will also serve as Deputy Prime Minister for Economic Affairs. The Ministry of Planning and Budget will be placed under the Prime Minister’s Office, with its minister serving as a cabinet member.

The Ministry of Environment will be expanded and renamed a Ministry of Climate, Energy and Environment, as it takes over energy policy functions from the Ministry of Trade, Industry and Energy. While overall energy policy, including nuclear power and renewable energy, will fall under the new ministry, nuclear power exports and resource industry functions will remain with the Ministry of Trade, Industry and Energy.

The roles of the Financial Services Commission and the Financial Supervisory Service will also be reshaped. Domestic financial functions of the Financial Services Commission will be transferred to the Ministry of Finance and Economy, while a new Financial Supervisory Commission will be established by merging the Financial Services Commission and the Financial Supervisory Service. A Deputy Prime Minister for Science and Technology will also be created, with the Minister of Science and ICT doubling in that role. The Korea Communications Commission will be dissolved, and a new Broadcasting, Media and Communications Commission will take its place.

The Ministry of Gender Equality and Family will be renamed a Ministry of Gender Equality and Family Affairs. Statistics Korea will be elevated to a National Data Office, and the Korean Intellectual Property Office will be reorganized as an Intellectual Property Office under the Prime Minister.

The government reorganization bill will undergo further adjustments before being introduced in the National Assembly and is expected to be handled at the plenary session scheduled for September 25.