The Evolution of Economic Bureaucrats... Why Budget Office Alumni Are Rising in the Yoon Administration

From the 'Economic Planning Board / Ministry of Finance' structure to the 'Planning and Budget Office / Ministry of Finance and Economy' structure
The budget formulation authority 'Budget Office' inevitably close to National Assembly politicians
Superior political networks and influence compared to officials from other economic ministries

[Asia Economy Jeong Jae-hyung, Economic and Financial Editor] From the Roh Moo-hyun administration, where the colors of progressivism and conservatism became distinct, the Blue House Chief of Policy and Chief Economic Secretary were almost always from the Ministry of Planning and Budget (MPB), the predecessor of the Ministry of Economy and Finance (MOEF), or the Ministry of Finance (MOF), unless they were professors. The important point here is whether they were from the Ministry of Planning and Budget or the Ministry of Finance.

The Ministry of Planning and Budget and the Ministry of Finance were the two leading economic ministries until they merged into the Ministry of Finance and Economy under the Kim Young-sam administration in 1993. The Ministry of Planning and Budget had a minister at the deputy prime minister level and held budget authority, but in terms of bureaucratic 'power,' the Ministry of Finance, which controlled taxation and finance, was ahead.

The Ministry of Planning and Budget established the five-year economic development plans and led various ministries through budget authority. It was an organization accustomed to future vision and planning, with a strong reformist tendency, focusing on "how our country should change."

The Ministry of Finance controlled the nation's financial resources by collecting taxes and overseeing domestic and international finance (foreign exchange), thus exerting significant influence over the private sector. Terms like 'government-controlled finance' and 'Mofia' referred to the Ministry of Finance. It held substantial real-world power and was relatively conservative.

Due to these differences in tendencies, the Roh Moo-hyun administration mainly appointed officials from the Ministry of Planning and Budget, while the Lee Myung-bak administration filled key positions with those from the Ministry of Finance.

In the Roh Moo-hyun administration, Blue House Chiefs of Policy included Park Bong-heum, Kwon Oh-gyu, and Byun Yang-gyun, and Chiefs of Economic Secretariat included Kim Young-joo, Kwon Oh-gyu, Yoon Dae-hee, and Kim Dae-yu, all from the Ministry of Planning and Budget. The Deputy Prime Ministers for Economy were Kim Jin-pyo, a charismatic tax expert, and Lee Hun-jae, a crisis manager during the foreign exchange crisis, both from the Ministry of Finance, but these were exceptions. Subsequently, Han Duck-soo and Kwon Oh-gyu from the Ministry of Planning and Budget succeeded them.

In the Lee Myung-bak administration, except for Kim Dae-gi, who served as Blue House Chief of Policy and Economic Secretary, and Economic Secretary Park Byung-won, Blue House Chief of Policy Yoon Jin-sik, Economic Secretaries Yoon Jin-sik and Choi Joong-kyung, and Deputy Prime Ministers for Economy Kang Man-soo, Yoon Jeung-hyun, and Park Jae-wan were from the Ministry of Finance.

From the Park Geun-hye administration, the link between conservative governments and Ministry of Finance officials weakened. The Park Geun-hye administration abolished the Chief of Policy position, and the Economic Secretary position was held for just over a year by Cho Won-dong from the Ministry of Planning and Budget, while professors like Ahn Jong-beom and Kang Seok-hoon, close aides to President Park, held significant influence. The first Deputy Prime Minister for Economy, Hyun Oh-seok, was from the Ministry of Planning and Budget and had served as Director-General of Economic Policy but ended his public service as Dean of the Tax College, indicating a lack of weight. Choi Kyung-hwan was from the Ministry of Planning and Budget but entered politics early, and Yoo Il-ho was also from the political sphere.

In the Moon Jae-in administration, bureaucrats could not assert themselves, but again, those from the Ministry of Planning and Budget held key positions. The progressive camp recalls that during the Roh Moo-hyun administration, neoliberal policies such as the Korea-US Free Trade Agreement (FTA) were promoted, and polarization worsened. Not knowing much about the economy, they left it to bureaucrats but "were eventually captured by them." Therefore, in the Moon Jae-in administration, progressive economists like Jang Ha-sung, Kim Soo-hyun, and Kim Sang-jo led policy as Chiefs of Policy, and bureaucrats' influence was weak. The last Chief of Policy was Lee Ho-seung from the Ministry of Planning and Budget, but his role was minimal during his short tenure of about a year at the end of the term.

The first Blue House Chief Economic Secretary was progressive economist Hong Jang-pyo, followed by bureaucrats from the Ministry of Planning and Budget such as Yoon Jong-won, Lee Ho-seung, Ahn Il-hwan, and Park Won-joo from the Ministry of Commerce, Industry and Energy (now Ministry of Trade, Industry and Energy). Deputy Prime Ministers for Economy Kim Dong-yeon and Hong Nam-ki were also from the Ministry of Planning and Budget but only opposed some policies while the Blue House led economic policy.

In the Yoon Suk-yeol administration, many evaluations suggest that the structure has shifted from the Ministry of Planning and Budget and Ministry of Finance to the Ministry of Planning and Budget (MPB) and Ministry of Finance and Economy (MOFE) structure. The Ministry of Finance and Economy was a deputy prime minister-level ministry that combined the economic policy oversight function of the Ministry of Planning and Budget and all functions of the Ministry of Finance. The Ministry of Planning and Budget had budget and public sector reform functions. The Ministry of Planning and Budget existed during the Kim Dae-jung and Roh Moo-hyun administrations for ten years, but even after the establishment of the Ministry of Economy and Finance, most officials in the Budget Office were from the Ministry of Planning and Budget.

Officials in the Budget Office, who have budget formulation authority, inevitably have close relationships with members of the National Assembly. Lawmakers are recognized as capable politicians by their constituents when they secure and execute large budgets for their districts, which also benefits them in future elections. This is why Ministry of Planning and Budget officials are considered to have better political networks than those from the Ministry of Finance and Economy. Especially since the 2000s, as the power of the National Assembly grew, political networks became important even within the bureaucracy.

In the Yoon Suk-yeol administration, Kim Dae-gi, who served as Blue House Chief of Policy and Economic Secretary during the Lee Myung-bak administration, is from the Ministry of Planning and Budget. This contrasts with the Park Geun-hye administration, which lacked a Chief of Policy and had non-economic officials like Heo Tae-yeol, Kim Ki-chun, and Lee Byung-gi as Chief of Staff. In the Yoon Suk-yeol administration, a powerful Chief of Staff position was entrusted to a Ministry of Planning and Budget official. A government official explained, "Perhaps due to Chief of Staff Kim Dae-gi's influence, many Ministry of Planning and Budget officials are positioned as administrative officers in departments such as personnel, general affairs, national agenda, national situation office, and the secretariat of the presidential office."

Chief Economic Secretary Choi Sang-mok is from the Ministry of Finance and Economy, but due to his connection with Chief of Staff Kim Dae-gi, he was called from his initial nomination as Financial Services Commission Chairman to become Chief Economic Secretary. Although Deputy Prime Minister for Economy Choo Kyung-ho is from the Ministry of Finance and Economy, the Director of the Office for Government Policy Coordination, Ban Moon-kyu, who is the president of the Export-Import Bank of Korea, is also from the Ministry of Planning and Budget.

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