[Exclusive] Transition Committee Reviews Term Guarantee for Financial Services Commission and Fair Trade Commission Chairpersons

Seeking Cooperation with Democratic Party Ahead of Confirmation Hearing
Appointment of Fixed-Term Ministerial Officials Expected to Be Delayed

President-elect Yoon Suk-yeol announced the inaugural cabinet lineup on the afternoon of the 10th at the 20th Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul. On this day, President-elect Yoon announced the appointments for the Minister of Economy and Finance, Ministry of Trade, Industry and Energy, Ministry of Land, Infrastructure and Transport, Ministry of National Defense, Ministry of Science and Technology, Ministry of Health and Welfare, Ministry of Culture, Sports and Tourism, and Ministry of Gender Equality and Family. Photo by Transition Committee Press Corps

[Asia Economy Reporters Kim Hyemin and Moon Jewon] The Presidential Transition Committee (PTC) is reportedly considering measures to guarantee the terms of minister-level heads of central administrative agencies, such as the Financial Services Commission Chairman, the Fair Trade Commission Chairman, and the Prosecutor General, to the greatest extent possible.

This is because, with the National Assembly expected to be controlled by the opposition, the committee can use this as a negotiation card with the Democratic Party of Korea, as confirmation hearings and the passage of the Government Organization Act must be secured. Accordingly, there is a possibility that appointments for term-based minister-level positions, such as the Financial Services Commission Chairman, may be delayed even after the next government takes office. The PTC is expected to announce the second round of cabinet appointments for 10 ministries as early as the 13th.

A senior official from the PTC said on the 11th, "We are reviewing ways to align the terms of minister-level appointees whose terms are guaranteed by law as much as possible," adding, "This also aligns with the fairness and common sense emphasized by President-elect Yoon Seok-yeol, according to internal assessments." He continued, "It is also a consideration in terms of cooperation with the Democratic Party."

The Financial Services Commission Chairman and the Fair Trade Commission Chairman can be appointed by the president without the Prime Minister’s recommendation. Their terms are three years, while the Prosecutor General’s term is two years. Inside and outside the PTC, it is seen as likely that the term of Cho Sung-wook, the Fair Trade Commission Chairman, will be guaranteed. Chairman Cho, who took office in September 2019, has a term lasting until this September. The terms of Ko Seung-beom, Financial Services Commission Chairman, with over two years remaining, and Kim Oh-soo, Prosecutor General, with about one year left, are also planned to be guaranteed as much as possible, but this remains flexible.

This plan is interpreted as a kind of cooperation card to smoothly pass the confirmation hearings for cabinet members and the Government Organization Act in a National Assembly dominated by the Democratic Party. Although term-based minister-level officials have guaranteed terms, they have often resigned voluntarily during government transitions and have not completed their full terms.

For this reason, it is expected that the announcement of appointments for term-based minister-level positions may be delayed as much as possible after the new government’s inauguration. In this case, it may take some time to fully form the economic team of the Yoon Seok-yeol administration. A People Power Party official said, "There is a possibility that people appointed by the previous administration and new government appointees will coexist for at least two years."

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