Backlash Against 'Dismissal Recommendation' Hits Ruling Party... Economic Team Gains Strength

Hong Nam-ki emphasizes "Ministry of Economy and Finance as the economic control tower"
President Moon Jae-in reaffirms trust amid dismissal rumors, saying "You have done well so far, please continue to do well"
Ministry of Economy and Finance union points out "Budget office staff worked overnight for a month on supplementary budget... How much did the Democratic Party review?"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Amid controversy over remarks from some ruling party members suggesting the dismissal of Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, regarding the increase in the supplementary budget for the novel coronavirus disease (COVID-19), Hong Nam-ki has once again emphasized the Ministry of Economy and Finance’s role as the economic control tower, drawing attention. President Moon Jae-in also appears to be empowering the economic team with his request to "keep up the good work and continue to do well."

On the 14th, Deputy Prime Minister Hong Nam-ki chaired an emergency issue inspection meeting, stating, "As the COVID-19 situation has entered the global pandemic stage, it is unfolding in a completely different manner from the past," and emphasized, "The Ministry of Economy and Finance must proactively manage risks as the economic control tower." The meeting was held to discuss the current economic situation, strengthening the emergency response system, and the ministry’s quarantine response due to the increase in confirmed cases at the Sejong Government Complex. A total of 14 people, including first-level officials and related bureau chiefs of the Ministry of Economy and Finance, attended.

In particular, he stressed the smooth execution of the supplementary budget after the passage of the comprehensive COVID-19 support package previously announced. He said, "We must ensure that small business owners, small and medium enterprises, and affected industries and companies can endure these difficult times," adding, "We need to concretize preemptive response measures without any gaps on a larger scale, including checking corporate liquidity, strengthening external response capabilities, and international cooperation."

Earlier, within the ruling party in the National Assembly, there were remarks about the necessity of increasing the supplementary budget for active COVID-19 response, and controversy arose when Hong Nam-ki, who expressed reluctance citing fiscal soundness, was told "he could be asked to step down." It is reported that Democratic Party leader Lee Hae-chan made such remarks during a closed supreme council meeting on the 11th. In fact, the Democratic Party is pressuring the government to increase the supplementary budget from the submitted 11.7 trillion won by 6.3 to 6.7 trillion won, processing a supplementary budget in the 18 trillion won range.

Deputy Prime Minister Hong Nam-ki immediately responded by posting a message on his personal social media that seemed to reflect his feelings on the matter. Around 10:14 p.m. on the 12th, when rumors of his dismissal were spreading, he wrote on his Facebook, "Both a passionate heart and a cool head are needed now." He particularly stated, "I have been doing my utmost to alleviate the difficulties of COVID-19 quarantine and people's livelihoods, to strengthen our economic momentum and power, and to fight to endure and recover from this crisis, but suddenly there is controversy over my position... I worry that I might be seen as someone clinging to the position." In the current situation, he emphasized the need for a "cool head," meaning a rational response, rather than an unconditional increase in the supplementary budget, expressing his conviction.

He explained, "The supplementary budget size was decided and submitted to the National Assembly after comprehensive consideration of this year’s existing budget increased by 9.1%, 2 trillion won in earmarked contingency funds (3.4 trillion won including general contingency funds), previously announced measures by the government, public institutions, and financial institutions totaling 20 trillion won, the review results of supplementary budget target projects, and fiscal support capacity," adding, "The Ministry of Economy and Finance will carefully examine and implement support for vulnerable groups, economic revitalization, rationality and fairness of fiscal support, fiscal soundness, and capacity at a manageable level."

Public opinion also sided with Deputy Prime Minister Hong Nam-ki’s position. Unconditional increases in the supplementary budget would not only burden the finances but also fail to resolve the situation efficiently. Especially with the general election next month, there were voices warning against the supplementary budget taking on political colors and suggesting that the relevant ministries and officials should be entrusted with some degree of countermeasures. Some pointed out that in this emergency situation where cooperation between the ruling party, government, and Blue House is crucial, remarks like dismissal recommendations that shake the economic team are inappropriate.

The next day, President Moon Jae-in also supported the economic team. On the 13th, President Moon convened a "Special Meeting on Economic and Financial Situation" at the Blue House, saying, "Those in charge of economic policy sometimes think of measures based on past emergency situations, but this is an unprecedented emergency economic situation incomparable to MERS or SARS," and urged, "The government must do its best to create unprecedented measures that were not taken before." He then emphasized to Deputy Prime Minister Hong, "You have done well so far, so please continue to do well." Deputy Prime Minister Hong responded, "I will do my best."

Within the Ministry of Economy and Finance, the inappropriateness of the dismissal rumors was also pointed out. The ministry’s labor union stated in a press release on the 13th, "Deputy Prime Minister Hong Nam-ki is an economic expert with 33 years of experience, having joined the Economic Planning Board in 1987 and worked at the Planning and Budget Office," and argued, "The Ministry of Economy and Finance considers not only the immediate economic crisis but also the aftershocks that follow, which is the true nature of the ministry and its bureaucrats." They also said, "The Ministry of Economy and Finance’s Budget Office staff worked overnight for about a month from mid-February to prepare the supplementary budget, but it is unclear how much the Democratic Party has reviewed the supplementary budget proposal." They added, "You cannot change a general in the middle of a war," and criticized, "This unprecedented economic crisis must be overcome by joining forces, not by criticism first."

This content was produced with the assistance of AI translation services.