[Column] Political Sphere's Plate-Smashing, Dusty Financial Vessel

Photo by Seungseop Song

The Presidential Transition Committee announced on the 26th that it would encourage ‘dish breaking.’ This is an intention to change the ‘passive administration’ atmosphere in the public service, where officials avoid touching things for fear of breaking dishes and let dust accumulate. Although this discussion has existed for decades, it added that change is necessary as the welfare-inactive behavior of public officials remains unchanged.

However, Korea’s ‘active administration’ system is relatively advanced compared to foreign countries. Each agency annually discovers best practices and provides incentives such as awards, special promotions, and reflection in personnel evaluations. There is also a system stipulated in the Board of Audit and Inspection Act that exempts officials from liability if mistakes occur while promoting active administration.

This means that the passive administrative practices in Korean public service are not due to the system. Despite agency-level awards and encouragement, officials are reluctant to actively express opinions and implement policies. Without identifying and addressing the fundamental causes, it is difficult to change the culture of passive administration.

Behind the inactivity of public officials lies the political practice that demands submission rather than conviction. Members of the public service have vividly witnessed how bureaucrats who voiced their convictions to the administration and ruling party were severely punished. Examples include Deputy Prime Minister for Economy Hong Nam-ki, Prosecutor General Kim Oh-soo, and former Board of Audit and Inspection Chairman Choi Jae-hyung.

It is ironic. The political sphere has suppressed bureaucrats’ convictions with criticism and blame rather than listening to them. Yet, it has loudly advocated for active administration that requires conviction. Who would pursue active administration with a clear conviction when they could become a target of those who have acquired political power? This is why public officials focus more on ‘not making mistakes’ than on ‘doing well.’

If this practice continues, the pace of industrial innovation will slow, and populism will prevail. This is because bureaucrats who try to put a brake on the political sphere heading in the wrong direction disappear. Finance is a representative case. In financial authorities, some departments are evaluated as ‘places where not causing accidents while working is the most important.’ It acknowledges the need for regulatory reform but says that if an accident occurs, the person in charge could be held responsible, so they must be cautious.

The same applies to populism. The Moon Jae-in administration lowered the legal maximum interest rate, continuously extended financial support measures, and deleted delinquency records of borrowers who could not repay their loans. There were many voices concerned about significant side effects and moral hazard. The financial authorities did prepare alternatives. However, there was no confident statement from officials at the level of those responsible. They merely faithfully implemented the policies of the Blue House and the ruling party.

The damage falls entirely on the private industry and financial consumers. Due to outdated regulations whose clear purpose is hard to discern, some financial companies find it difficult to pursue new businesses or receive investments because of ambiguous legal provisions. Consumers have no choice but to use financial services under more disadvantageous conditions in a distorted market.

To encourage active administration, the political sphere must first listen attentively rather than suppress public officials’ convictions. President-elect Yoon Suk-yeol promised numerous financial policies during the election period. Some policies have raised concerns in the financial sector. If these concerns are ignored and policies are pushed through forcefully, there will be no dish breaking in the financial sector. Only dust will accumulate.

Reporter Song Seung-seop

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