South Korea has announced a major restructure of state-run energy and transport companies, part of a broader overhaul of public institutions that’s aimed at cutting costs and improving competitiveness.

Korea National Oil Corp and Korea Gas Corp will be merged, according to a government statement released Thursday. In addition, five Korea Electric Power Corp units will be combined, Korea Coal Corp will be liquidated, and four regional port authorities will be amalgamated.

The reorganization will consolidate institutions with overlapping functions and integrate subsidiaries and smaller public entities, the government said. The aim is to improve the management of infrastructure and reallocate technology and personnel, it said.

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The moves are part of an effort to reposition public institutions as South Korea responds to technological shifts, demographic changes and what it describes as increasingly persistent and complex economic risks. The country is facing growing pressure to expand and modernize its power infrastructure to meet rising electricity demand, including from artificial intelligence and semiconductor factories.