South Korea will reduce the number of public institutions by 109 under a functional reform plan announced by the government on the 3rd. The program includes merging five power-generation companies into the tentatively named Korea Power Generation, combining four port authorities into the Korea Port Authority, and merging Korea Petroleum Industries Corporation with Korea Gas Corporation into the Energy Resources Corporation. The five power companies were separated in 2001 to introduce competition, and their reunification comes after 25 years. The government said public institutions had expanded excessively, with employment rising from 247,000 in 2010 to 432,000 last year and debt increasing from 542 trillion Korean won in 2020 to 769 trillion Korean won last year, producing a debt ratio of 174.1%. The plan covers 15 strategic structural reforms, 11 consolidations of overlapping functions, and 83 integrations involving subsidiaries and small institutions. Korea Power Generation is expected to coordinate renewable-energy investment, coal-power phase-out and regional projects, while seeking savings through joint procurement, more efficient personnel use and stronger overseas negotiating power. The Coal Corporation will be liquidated after receiving 2.59 trillion Korean won for debt settlement. The government says employees other than executives at merged institutions will retain their jobs and will not see compensation or welfare levels reduced.