Choo Kyung-ho "Politics Should Not Overwhelm the Economy"... Likely to Cut Government-Led Growth and Wasteful Public Enterprises

Attention Focused on Past National Assembly Remarks... Suggests Shift to Private Sector-Led Growth
Public Enterprise Reform Announced... Real Estate Normalization Through Tax System Overhaul
Expect Strengthened Cooperation Between Cheong Wa Dae and National Assembly... Ministry of Economy and Finance Likely to Gain Status as Economic Policy Control Tower

[Asia Economy Sejong=Reporter Kwon Haeyoung] "The minimum wage is a truly bad precedent where politics overwhelms the economy."

"During the four years of the Moon Jae-in administration, the reckless management of public institutions has severely damaged the basic economic foundation."

Attention is focused on the past National Assembly remarks of Choo Kyung-ho, the first 'economic commander' appointed by the Yoon Seok-yeol government as Deputy Prime Minister for Economy and Minister of Strategy and Finance. As an incumbent lawmaker and a career bureaucrat with 35 years of experience in economic ministries, his long-held philosophy and convictions are fully reflected, providing insight into the future direction of the Yoon administration's economic policies.

According to the National Assembly on the 11th, Choo criticized sharply at the Ministry of Strategy and Finance's audit last October, saying, "The excessive increase in the minimum wage, the flagship policy of the Moon Jae-in government's income-led growth, has made vulnerable workers, small and medium enterprises, and self-employed individuals suffer more," and added, "The fiscal spending used for that is also ineffective." He pointed out that growth against market principles and growth driven by government fiscal expenditure are illusions, implying the need to shift to private sector-led growth.

He has repeatedly emphasized the need to reform bloated public institutions under the Moon administration, which claimed to be a 'job government' and advocated growth led by the public sector. At last October's audit, Choo strongly criticized, "Public enterprises are running deficits but are increasing personnel, while executives receive billion-won salaries and hold performance bonus feasts worth tens of millions of won." At a press briefing held the day before as the nominee for Deputy Prime Minister for Economy, he mentioned stabilizing public utility charges as a measure against high inflation, stating, "Have public institutions made proper efforts to stabilize public utility charges? They should not operate recklessly, accumulate other price increase factors, and irresponsibly approach it as if they must raise prices when the time comes."

This suggests that upon assuming office, Choo will take strong measures against reckless management in public enterprises. According to Choo, under the Moon administration, public enterprises have become bloated and inefficient by bearing various policy costs such as excessive regular employment conversions to align with the current government, rather than focusing on management efficiency and performance improvement. A major overhaul of public enterprise management evaluation indicators is expected.

Chu Kyung-ho, a member of the People Power Party and the first Deputy Prime Minister and Minister of Economy and Finance nominee under the Yoon Suk-yeol administration, is arriving at the confirmation hearing preparation office set up at the Korea Deposit Insurance Corporation in Jung-gu, Seoul, on the 11th. Photo by Moon Ho-nam munonam@

Choo has also repeatedly emphasized in the National Assembly the need to legislate fiscal rules to restore fiscal soundness, and to ease tax burdens such as capital gains tax on multiple homeowners that cause market stagnation, as well as to improve reconstruction regulations. As he stated at the briefing the day before, real estate policy normalization is expected through expanding supply based on market logic rather than artificial demand suppression and tax reform.

As a senior official from the Ministry of Strategy and Finance, Choo has expressed regret several times in the National Assembly about policies being driven by the ruling party and the Blue House rather than by bureaucrats with expertise in economic policy. At last year's audit, he criticized the rapid increase in the minimum wage as a "truly bad precedent where politics overwhelms the economy." This aligns with his remarks the day before about fiscal soundness deterioration being a "case where politics overwhelms the economy." He also showed affection for his juniors at the Ministry of Strategy and Finance, saying, "The senior officials at the Ministry in Sejong, these highly skilled personnel, sit all day at the audit for two days without making a single statement. I suggest we return the policy discussions to them."

Within the government, there is considerable expectation for the Deputy Prime Minister nominee, who is from the Ministry of Strategy and Finance, has a deep understanding of the bureaucratic society, is an incumbent lawmaker, and a key figure among Yoon's close aides. It is anticipated that he will strengthen cooperation with the Blue House and the National Assembly in the future economic policy-making process and enhance the Ministry of Strategy and Finance's status as the control tower of economic policy.

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