Economic Bureaucrats' Reemployment in Financial Sector Increased by 26% Under Moon Administration... Yong Hye-in Says "Failure to Dismantle Mofia"

(Source: Office of Yong Hye-in, Basic Income Party)

[Sejong=Asia Economy Reporter Son Sun-hee] An analysis has emerged that cases of former economic ministry officials reemployed in the private financial sector, so-called 'MOFIA (MOF + Mafia)', have significantly increased under the Moon Jae-in administration.

On the 5th, Yong Hye-in, a member of the National Assembly's Planning and Finance Committee from the Basic Income Party, surveyed 164 private financial companies including domestic commercial banks, insurance companies, savings banks, securities firms, and card companies, regarding the number of employees from economic ministries and agencies between 2017 and 2020. The total was 250 people. Among them, 124 were from the five major economic ministries and agencies (Ministry of Economy and Finance, Bank of Korea, Financial Services Commission, Fair Trade Commission, National Tax Service), including 43 officials from the Ministry of Economy and Finance.

This figure represents about a 26% increase compared to the number of reemployed officials (199 people) during the Park Geun-hye administration (2013?2016).

In particular, the office of the assembly member stated that a considerable number of these reemployed officials were high-ranking public servants between grades 1 and 4. Approximately 89% of the cases where the rank of experienced personnel was confirmed were retirees between grades 1 and 4. The office interpreted this as indicating that the financial sector mainly seeks individuals who hold significant practical experience, authority, and can utilize their network connections. However, due to non-cooperation from some financial companies, more than half of the reemployed officials’ ranks at the time of retirement were not identified, limiting the accuracy of the analysis.

Retired public officials are required to undergo employment review according to the Public Officials Ethics Act before joining private companies. However, the employment approval system has been criticized for its ineffectiveness, with an approval rate reaching 90%.

Assembly member Yong criticized, "The Moon Jae-in administration, which should have learned lessons from the Sewol ferry disaster, failed to eliminate the 'Gwanpia' and 'Mofia' due to lax institutional improvements. As long as the cartel between bureaucrats and finance remains strong, economic and financial reform and corruption eradication will not be easy." He added, "The 21st National Assembly and the next government must explore various measures such as 'preventing parachute appointments, tracking and disclosing stakeholders’ career histories, and strengthening the Public Officials Ethics Act.'"

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