As Soon as the Policy Chief Was Dismissed, Moon Attended the 'Sanggong Day' Event... A Signal of Policy Shift

First Attendance Since Inauguration Signals 'Economic Recovery'
Encouragement to Chairman Choi 10 Minutes Before Event
Message Requesting Corporate Cooperation and Collaboration
Business Community: "Late but Hopeful for Communication"

[Image source=Yonhap News]

[Asia Economy Reporters Kim Hyun-jung (Sejong), Choi Dae-yeol] On the 31st, President Moon Jae-in's first direct attendance at the ‘Commerce Day’ event since his inauguration is interpreted as a political move to drive ‘economic recovery.’ The dominant view is that it signals a shift in the policy direction, which had been heavily regulation-focused, aiming for a strong economic rebound after the COVID-19 pandemic.

The business community is also growing hopeful. President Moon’s recent actions are seen as support for Choi Tae-won, newly inaugurated chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group chairman on the 29th, as well as a message requesting cooperation and collaboration from companies. Notably, President Moon visited the KCCI venue 10 minutes before the event to personally encourage and give a message of support to Chairman Choi.

◆Business Community’s Growing Expectations for Deregulation

The business sector responded that although somewhat late, it is a relief. There has been a strong sentiment that the voices of businesspeople and the corporate sector were not properly reflected in the government and ruling party’s decision-making or policy implementation processes, which significantly affect corporate management and the overall industry. They hope this will change going forward.

Previously, former Presidents Lee Myung-bak and Park Geun-hye, as well as the late President Roh Moo-hyun, attended the Commerce Day event in their first year in office to encourage businesspeople. President Roh even gave a special lecture at the Chamber of Commerce in his fourth year in 2006, starting his speech with the words, "I came to communicate."

An official from an economic organization said, "Unlike his predecessors, President Moon rarely attended major events such as Commerce Day or the economic community’s New Year meetings, giving the impression of distancing himself from businesspeople. While it may not be easy to immediately change existing policy directions, I hope this becomes an opportunity to listen more broadly to the economic community’s concerns." A representative from a large corporation also said, "It is true that there was a strong ‘corporate bypass’ trend after the Moon administration began. Now that the president has stepped forward, there is hope that not only the executive branch but also the ruling party will activate communication channels with the business community."

The economic sector expects that President Moon, who visited the economic organizations on this day, will respond positively to Chairman Choi Tae-won’s inaugural emphasis on ‘deregulation.’ Chairman Choi recently stated at a meeting that rather than unilaterally demanding the abolition of regulations, he intends to communicate steadily and carefully examine the background and effects of regulations.

Despite concerns that corporate management activities might be hindered, the business community is expected to actively voice opinions on various systems and policies, including the so-called three fair economy laws?the amended Commercial Act, Fair Trade Act, and Financial Group Supervision Act?that have passed, as well as the Serious Accident Punishment Act, which is preparing enforcement decrees ahead of its implementation in January next year. Former Chairman Park was reluctant to actively express opinions on energy policies such as nuclear power due to direct conflicts of interest with his company, but Chairman Choi is in a much easier position to convey such views. A business community official said, "The concepts Chairman Choi has emphasized, such as corporate social responsibility, social value, and ESG (environment, social, governance), are global trends that fit well with the current administration and will continue to do so."

On the other hand, there were cold responses suggesting that it would be difficult for policy directions to change due to what is seen as a presidential event. An anonymous businessperson pointed out, "Isn’t this visit just a move to gain votes ahead of the election?"

[Image source=Yonhap News]

◆End-of-Term Bureaucrat Favoritism? ... ‘Presence’ in Moon’s Economic Team

The event drew attention with the attendance of Lee Ho-seung, the new Blue House Chief of Policy. The recent personnel changes at the Blue House reflect a shift in the Moon administration’s policy direction. President Moon has recently appointed bureaucrats one after another to the economic team, which had been mainly composed of academics and civic group members.

Following the appointment of Lee Ho-seung as Chief of Policy, President Moon also appointed Ahn Il-hwan, the 2nd Vice Minister of Strategy and Finance, as the new Blue House Economic Secretary. This is the first time since the current administration began that bureaucrats have been appointed to both the Chief of Policy and Economic Secretary positions.

As a result, the key Blue House economic control tower positions?Chief of Policy, Economic Secretary, Job Secretary (former Vice Minister of Employment and Labor Im Seo-jeong), and Social Secretary (former Director of the Office for Government Policy Coordination Yoon Chang-ryeol)?are all held by bureaucrats. Especially, both the Chief of Policy and Economic Secretary, who lead economic policy, come from the Ministry of Strategy and Finance. This contrasts sharply with the atmosphere during the COVID-19 response budget supplementary bill and disaster relief fund distribution, when the ruling party led the process and ‘Ministry of Strategy and Finance bypass’ controversies arose. Some in the government view this as an attempt to manage policies and appease bureaucrats in the final phase of the term to prevent a lame-duck period.

There is also an opinion that the successive disgraceful resignations of aides from civic groups influenced this. It is said that bureaucrats, who undergo regular verification through asset declarations, may be better at preventing additional controversies.

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