Ministry of Economy and Finance Advances in Local Elections... Concerns Over Local Governments' Subordination to Central Government

Gyeonggi Governor-Elect Kim Dong-yeon and Mayors of Jeonju and Naju Also Former Ministry of Economy and Finance Officials
Standing Out in Local Power Following Central Government... Economic Experts' Strong Performance in Local Elections
"Concerns Over Local Governments' Decline Amid Perception That Securing Central Government Budgets Equals Success"

[Asia Economy Reporter Naju-seok] In the June 1 local elections, in addition to Kim Dong-yeon, the governor-elect of Gyeonggi Province, former officials from the Ministry of Economy and Finance also drew attention by winning. Kim, who served as Deputy Prime Minister for Economy under the Moon Jae-in administration as a Ministry of Economy and Finance bureaucrat, saw some candidates winning in basic local government positions.

[Image source=Yonhap News]

According to the Central Election Commission on the 2nd, Woo Beom-gi, the Democratic Party candidate for mayor of Jeonju and former Director-General of the Ministry of Economy and Finance’s Long-term Strategy Bureau, and Yoon Byung-tae, the Democratic Party candidate for mayor of Naju and former Director of the Budget Office at the Ministry of Economy and Finance, were elected.

After a close contest that lasted until dawn, Kim, who secured a narrow victory, put forward a personality-centered campaign in this election. Kim, who graduated from a commercial high school, passed the state administrative examination and built a remarkable career as a bureaucrat at the Ministry of Economy and Finance, serving as Director of the Budget Office, Second Vice Minister of Economy and Finance, and Director of the Office for Government Policy Coordination. His expertise as an economic specialist was considered one of his strengths. This personality-centered approach is seen as the reason he ultimately defeated Kim Eun-hye, the People Power Party candidate who was promoted as a “powerful ruling party candidate.”

Both Mayor-elect Woo and Mayor-elect Yoon share the commonality of having served as senior officials at the Ministry of Economy and Finance as well as holding positions such as Deputy Governors for Political Affairs in Jeonbuk and Jeonnam provinces. From the perspective of local governments, appointing economic experts like former economic bureaucrats as deputy governors for political affairs can be highlighted as a strength, and it is considered a major reason for their appointments that they can secure advantageous positions in obtaining central government budgets. Both Woo and Yoon entered politics by taking on the role of regional economic commanders and then walked the path of elected office side by side.

Within the Ministry of Economy and Finance, there has been great interest in the paths taken by those who chose new routes instead of joining affiliated organizations. A Ministry of Economy and Finance official evaluated, “Challenging elected positions in basic local governments itself is a courageous act.” However, in political circles, it is said, “Since they have received the people's choice, whether or not they are former Ministry of Economy and Finance bureaucrats does not hold much significance.”

Former Ministry of Economy and Finance bureaucrats who become local government heads are considered to have an advantage in securing budgets, which is cited as a reason for their election. However, experts express concerns about the possibility of them becoming subordinate to central power. Lee Sang-min, senior research fellow at the Nara Salim Research Institute, diagnosed, “One of the biggest problems of local governments is the perception that the core of finance is how much budget they can secure from the central government,” adding, “The perception that securing a lot of central government budget means doing well ultimately causes the regression of local autonomy and worsens local finances.” He pointed out, “Local government finance is more important in how efficiently it is managed rather than relying on the central government.”

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