Song Young-gil and Hong Nam-gi to Find 'Real Estate Common Ground'... Cheong Additional Cabinet Reshuffle as a Variable

After the Launch of the Ruling Party under Leader Song Young-gil, Real Estate Policy Review Gains Momentum
Ruling Party and Ministry of Economy and Finance Disagreements on Real Estate Amplify, Reviving 'Hong Nam-ki Deputy Prime Minister Replacement Theory'

[Asia Economy Reporter Ryu Jeong-min] As President Moon Jae-in nominates former Deputy Minister of Justice Kim Oh-soo as the new Prosecutor General, attention is focused on the ‘next move’ regarding additional cabinet reshuffles. The biggest variable in gauging whether and how extensive the reshuffle will be is the possibility of retaining Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki. Hong’s position is intertwined with the reorganization of the Moon Jae-in administration’s ‘economic team.’

When Prime Minister nominee Kim Boo-kyum was appointed, there was speculation that Hong Nam-ki was a ‘limited-term retention’ candidate. The expectation was that he would serve as acting prime minister until the confirmation hearings for Kim (scheduled for the 6th and 7th) and the parliamentary approval process were completed, after which he would be replaced.

However, with Deputy Prime Minister Hong planning to announce the ‘Second Half Economic Policy Direction’ by mid-next month, earlier than usual, there is analysis suggesting he may continue in his post. The Blue House neither confirms nor denies additional cabinet reshuffles.

[Image source=Yonhap News]

Considering the remaining one year of the presidential term, if the focus is on economic stability, it is possible that no major changes will be made. The fact that Hong Nam-ki’s economic team performed relatively well during the COVID-19 crisis also adds weight to the possibility of his retention.

However, it is difficult to say that the ‘Hong Nam-ki replacement theory’ has been extinguished. If the Blue House opts for an economic team reorganization, the mid-to-late part of this month, when the prime minister appointment process is finalized, could be a turning point.

Meanwhile, the financial sector is closely watching whether Financial Services Commission Chairman Eun Sung-soo and Financial Supervisory Service Governor Yoon Seok-hyun will be replaced. Governor Yoon will complete his three-year term on the 7th. Chairman Eun was considered a strong candidate for the next Deputy Prime Minister of Economy along with Koo Yoon-cheol, Director of the Office for Government Policy Coordination.

Song Young-gil, the newly appointed leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 3rd. Photo by Yoon Dong-joo doso7@

Notably, the ruling party has been reorganized under the leadership of Representative Song Young-gil. Representative Song advocates for changes in real estate policy. In particular, he emphasizes policy changes that consider ‘real estate public sentiment,’ such as easing loan regulations for first-time homebuyers. If the ruling party demands significant changes in real estate policy, it could conflict with Deputy Prime Minister Hong’s real estate blueprint.

This means that the differing perspectives between the ruling party and the Ministry of Economy and Finance could reignite conflict. Um Kyung-young, director of the Era Spirit Research Institute, said, “In a situation where the benefits of a cabinet reshuffle are not significant, there is a high possibility that the scope of personnel changes will be minimized,” but added, “Representative Song has staked his position on real estate, so if Deputy Prime Minister Hong maintains a hardline stance, there is a possibility that replacement talks will arise within the ruling party.”

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