South Korea to consolidate 8 health and welfare public agencies

The South Korean Ministry of Health and Welfare has announced a major restructuring plan to consolidate public agencies, reducing the total number of agencies under its jurisdiction from 47 to 39. The reform aims to eliminate overlapping functions and enhance professional expertise across several key sectors.

In the bio-health sector, the Korea Health Industry Development Institute will absorb the Korea Cosmetic Industry Institute and the Korea Regenerative Medicine Promotion Foundation to create a unified support system for R&D, clinical trials, and global market entry. Additionally, the Osong and Daegu-Gyeongbuk Advanced Medical Industry Foundations will merge into a single entity, tentatively named the Korea Advanced Medical Industry Promotion Foundation, to foster national bio-health clusters.

To address the aging population, the Korea Labor for Senior Citizens will merge with the Korea Funeral Culture Promotion Institute to form the Korea Senior Welfare Development Institute. Furthermore, three agencies related to bioethics and organ donation—the National Institute of Bioethics Policy, the Korea Organ Donation Agency, and the Korea Public Tissue Bank—will be integrated into the National Life Sharing Institute.

During a recent parliamentary audit, lawmakers raised concerns regarding the lack of detailed cost-benefit analyses and the potential impact on employees, specifically regarding future work locations and job security following the mergers.