The Return of the Ministry of Economy and Finance's Heyday... Government Circles Stirred by Concerns Over 'Super Ministry of Economy and Finance' Season 2

Yoon Government Likely to Appoint Choi Sangmok as Financial Services Commission Chairman Following Han Deoksoo, Chu Kyung-ho, and Kim Dae-gi
Reflects President-Elect Yoon's Commitment to 'Economy First' in National Governance
Concerns Raised Over Revival of Ministry of Finance and Economy, Which Lacked Checks and Balances During YS Era
Will Strengthened Influence of Ministry of Economy and Finance Extend Beyond Policy to Personnel?

[Asia Economy Sejong=Reporter Kwon Haeyoung] With a large number of bureaucrats from the Ministry of Economy and Finance (MOEF) being appointed to key positions in the Blue House and core cabinet of the Yoon Seok-yeol administration, a 'MOEF golden age' has begun. Expectations are rising that an economic dream team has emerged as not only the first Prime Minister and Deputy Prime Minister for Economy but also the Presidential Chief of Staff are all selected from MOEF, and the already powerful influence of MOEF is expected to become even stronger in the next government, causing a stir in government circles. Some even evaluate this as a reenactment of the 'Super MOEF' Season 2 from the YS (Kim Young-sam administration) era, when the Economic Planning Board and the Ministry of Finance were merged into a giant ministry.

According to government circles on the 15th, President-elect Yoon Seok-yeol is highly likely to appoint Han Duck-soo as Prime Minister, Choo Kyung-ho as Deputy Prime Minister for Economy and Minister of Economy and Finance, and Kim Dae-gi as Presidential Chief of Staff, followed by the appointment of Choi Sang-mok, former 1st Vice Minister of MOEF and currently the secretary of the Economic 1st Division of the Transition Committee, as Chairman of the Financial Services Commission.

The commonality among them is that they are all orthodox economic bureaucrats from MOEF. Prime Minister nominee Han Duck-soo and Chief of Staff nominee Kim Dae-gi come from the Economic Planning Board and the Budget Office, predecessors of MOEF, while Deputy Prime Minister nominee Choo Kyung-ho also started his public service career at the Ministry of Government Administration and Home Affairs and served as the 1st Vice Minister of MOEF. If former Vice Minister Choi is appointed as Chairman of the Financial Services Commission, all key positions from the Chief of Staff, who closely assists the President, to the Prime Minister, Deputy Prime Minister, and Chairman of the Financial Services Commission will be held by MOEF bureaucrats.

Looking at the inaugural cabinets of past administrations, even conservative governments have never had MOEF officials occupy key positions across the Blue House and cabinet as extensively as now. The current Moon Jae-in administration appointed former Prime Minister Lee Nak-yeon, a politician, Deputy Prime Minister Kim Dong-yeon, a MOEF bureaucrat, Financial Services Commission Chairman Choi Jong-ku, and Chief of Staff Im Jong-seok, a politician. The Park Geun-hye administration, where MOEF's status was sky-high, appointed MOEF officials Hyun Oh-seok as Deputy Prime Minister and Shin Je-yoon as Chairman of the Financial Services Commission, but the Prime Minister was Jeong Hong-won, a former prosecutor, and the Chief of Staff was Heo Tae-yeol, a former Ministry of Interior bureaucrat, predecessor of the Ministry of the Interior and Safety. The Lee Myung-bak administration is also considered a golden age for 'Mofiya' (economic and financial bureaucrats), but among the first Prime Minister, MOEF Minister, Financial Services Commission Chairman, and Chief of Staff at the start of the government, the only orthodox MOEF bureaucrat who entered public service through the administrative examination was former MOEF Minister Kang Man-soo. Even the first Chairman of the Financial Services Commission, Jeon Kwang-woo, was from the private sector.

Regarding President-elect Yoon's preference for orthodox economic bureaucrats, analyses inside and outside government circles suggest it reflects his intention to prioritize the economy in state affairs. It is interpreted as meaning that the economic team, composed of economic bureaucrats, will draw up macro and mid-to-long-term economic policy blueprints and strongly push them forward.

There is also an intention to strengthen economic policy to counter the giant opposition party. MOEF is considered the only ministry capable of resisting excessive populism from the political sphere. Even Deputy Prime Minister and MOEF Minister Hong Nam-ki resisted demands for budget increases from both ruling and opposition parties over the supplementary budget earlier this year, which is rare in other ministries.

However, concerns have been raised that the already senior MOEF may further strengthen its influence in future policy formulation and personnel appointments, and that checks and balances on MOEF may not be properly enforced.

Some recall the Ministry of Finance and Economy during the YS era. In 1994, former President Kim Young-sam merged the Economic Planning Board and the Ministry of Finance to launch the Ministry of Finance and Economy, turning MOEF into a giant ministry responsible for budget, taxation, and financial affairs. However, as the ministry became bloated, policy execution efficiency declined, it failed to properly respond to rapidly changing international financial trends, and ultimately could not prevent the 1997 International Monetary Fund (IMF) foreign exchange crisis. The current MOEF handles only budget and taxation after financial affairs were separated, but with key positions occupied across the next government, it is reminiscent of the YS era.

An official from an economic ministry said, "Since President-elect Yoon lacks expertise in the economic field, he probably intends to entrust the economy to MOEF bureaucrats to compensate for this. However, filling key positions only with elite bureaucrats from a specific ministry like MOEF will trap the government in a 'curtain of personnel,' blocking channels to hear diverse voices," expressing concern.

Another official said, "MOEF's grip on other ministries is getting stronger as it coordinates policies across ministries, and its control will grow further. This could influence not only future policies but also personnel appointments, which is worrisome." There is particular concern about a possible reenactment of cases during the Park Geun-hye administration when former Deputy Prime Minister Choi Kyung-hwan led MOEF officials to move to ministerial positions in other ministries. Former MOEF officials Joo Hyung-hwan, former Minister of Trade, Industry and Energy, and Kang Ho-in, former Minister of Land, Infrastructure and Transport, are representative examples.

However, inside MOEF, there is a positive atmosphere welcoming the start of the MOEF golden age. A MOEF official said, "Since the Prime Minister, Deputy Prime Minister, and Chief of Staff are all orthodox bureaucrats, none of them will try to impose their own strong political colors like politicians. Contrary to some concerns, teamwork is expected to be smoothly demonstrated in the economic policy-making process. It is also expected that the MOEF organization as a whole will gain more strength than before," he said.

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