The Persistent Bond Between Yeohan-gu and Yoon Sung-deok Surrounding Customs... Power Game Distorted as Key Figures of Yoon Administration Rise

Conflict over 2008 'Han-EU FTA' Negotiations
Ministry of Foreign Affairs, Yoon Government Key Figures Engage in Power Game for Trade Control
'Germany, China, Japan' OECD Manufacturing Powers All Led by Industry Ministries in Trade Policy

[Asia Economy Sejong=Reporter Kwon Haeyoung] The 15-year enduring relationship between Yeo Han-gu, Director-General of Trade Negotiations at the Ministry of Trade, Industry and Energy, and Yoon Seong-deok, Economic Diplomacy Coordinator at the Ministry of Foreign Affairs, has become a hot topic in government circles. As the next administration prepares to reorganize the 'trade policy main department,' the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs are engaged in a power struggle. Director-General Yeo is currently the head of trade authorities within the Ministry of Trade, Industry and Energy, while Coordinator Yoon is publicly advocating for the transfer of trade functions to the Ministry of Foreign Affairs and is actively leading the charge on the front lines.

According to government sources on the 18th, as the 20th Presidential Transition Committee begins reviewing government reorganization plans, attention is focused on the fate of the 'trade' function, which has symbolized power games during every reorganization, along with Director-General Yeo and Coordinator Yoon.

Their relationship dates back to the 2008 Korea-European Union (EU) Free Trade Agreement (FTA) negotiations. At that time, Coordinator Yoon served as the head of the FTA negotiation division at the Ministry of Foreign Affairs and Trade (now Ministry of Foreign Affairs) from May 2007 to December 2008, leading the Korea-EU FTA negotiations. Director-General Yeo participated in the negotiations as the FTA team leader at the Ministry of Knowledge Economy (now Ministry of Trade, Industry and Energy). It is reported that their relationship became strained after several clashes during the negotiations. Although Coordinator Yoon is three years senior in the civil service ranking, Director-General Yeo was promoted faster.

There is speculation that Coordinator Yoon may have the upper hand in this contest. This is because Ahn Cheol-soo, the head of the transition committee, pledged during his presidential campaign to transfer trade functions to the Ministry of Foreign Affairs, and the Ministry of Foreign Affairs is said to have strong direct and indirect connections with the team of President-elect Yoon Seok-yeol. Kim Seong-han, former 2nd Vice Minister of Foreign Affairs and Trade and elementary school classmate of President-elect Yoon, was appointed as the secretary of the foreign and security subcommittee of the transition committee and is reportedly advocating for the transfer of trade functions to the Ministry of Foreign Affairs. Additionally, Yoon Hee-sook, former member of the People Power Party and the first politician President-elect Yoon met after entering politics last year, has an older brother who is Coordinator Yoon.

However, on the other hand, there is considerable expectation that the Ministry of Trade, Industry and Energy will continue to handle trade functions due to concerns that frequent transfers of trade functions could weaken the organization and cause confusion. This prediction is also based on the fact that in most countries with high dependence on manufacturing, such as Germany, Japan, and China, the main ministry responsible for industrial policy also handles trade functions.

Among OECD member countries, nine out of the top ten countries with the highest manufacturing share relative to GDP have their trade functions managed by the industrial ministry. This includes global manufacturing powerhouses such as South Korea (24.8%), China (26.1%), Japan (20.3%), and Germany (18.1%). Indonesia is the only country where trade policy is managed by an independent ministry, not the industrial or foreign ministry. This is similar to the U.S. Trade Representative (USTR) in the United States and the Department for International Trade in the United Kingdom, which are independent trade agencies. Conversely, countries with low manufacturing shares such as Australia (5.6%), Canada (9.6%), Iceland (8.6%), and Chile (9.9%) are understood to have their trade policies led by foreign ministries.

Within the industry, there are concerns about the recurring trade function disputes between the two ministries every five years. In particular, there is criticism that a country reliant on trade for its livelihood should not be switching trade policy functions on and off based on 'personal connections.' Trade affairs have traditionally been led by the Ministry of Trade, Industry and Energy since 1948, but were transferred to the Ministry of Foreign Affairs during the DJ (Kim Dae-jung) administration in 1998, and then moved back to the Ministry of Trade, Industry and Energy in 2013.

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