Choo Kyung-ho's Organizational Reform Emphasizing 'Fiscal Soundness' and 'Pension·Education Reform'

Draft Amendment to the Ministry of Economy and Finance Organization Enforcement Rules Public Notice from the 21st to 28th

[Asia Economy Sejong=Reporter Kim Hyewon] The Ministry of Economy and Finance is changing the Fiscal Innovation Bureau to the Fiscal Policy Bureau to take charge of the overall fiscal policy functions and placing the Fiscal Soundness Deliberation Officer under it. The Economic Structural Reform Bureau will establish a Pension and Health Economics Division to support pension reform, and the Long-term Strategy Bureau will be reorganized into the Future Strategy Bureau to strengthen future preparedness functions. This is interpreted as a 'Choo Kyung-ho-style organizational reform' focusing on fiscal soundness management through the legislation of fiscal rules and structural reforms necessary for the mid- to long-term development of the Korean economy, such as pensions and education.

The Ministry of Economy and Finance announced on the 21st that it has given public notice of the 'Partial Amendment Ordinance on the Enforcement Rules of the Organization of the Ministry of Economy and Finance and Its Affiliated Agencies' containing these details. The amendment plan will be publicly notified from today until the 28th and is scheduled to take effect from the 6th of next month.

First, to strengthen the establishment of fiscal principles such as 'Fiscal Vision 2050' and 'Fiscal Rules,' which are national tasks of the Yoon Seok-yeol administration, and to enhance fiscal soundness management functions, fiscal-related departments were reorganized. The Fiscal Innovation Bureau was reorganized into the Fiscal Policy Bureau for the comprehensive establishment and management of fiscal policy, and the Fiscal Planning Deliberation Officer was changed to the Fiscal Soundness Deliberation Officer to take charge of fiscal soundness management functions such as setting and managing fiscal soundness indicator targets.

The Fiscal Strategy Division was reorganized into the Fiscal Policy General Division to strengthen the overall coordination of fiscal policy and the establishment of mid- to long-term fiscal strategies, and a Fiscal Analysis Division was newly established to perform economic and social effect analysis of fiscal policy and advance fiscal statistics functions.

The Participatory Budget Division will be reorganized into the Fiscal Cooperation Division, which will oversee fiscal cooperation functions with major domestic institutions, international organizations, and major overseas countries that were scattered within the Ministry of Economy and Finance, in addition to its current participatory budgeting functions. Fiscal performance evaluation functions such as in-depth evaluation of fiscal projects and review of international events will be unified under the Fiscal Management Bureau.

The structural reform promotion system will also be reorganized. A Pension and Health Economics Division will be newly established in the Economic Structural Reform Bureau to support pension reform from an economic perspective and to perform consultation and coordination functions for policies in the increasingly important healthcare sector.

The Job Economy Policy Division and Job Economy Support Division will be reorganized into the Human Resources Policy Division and Labor Market Economics Division to coordinate employment-related economic policies and perform coordination functions for labor market reform-related policies, respectively.

The Population Economics Division, which was under the Economic Structural Reform Bureau, will be transferred to the Future Strategy Bureau. The Future Strategy Bureau is an organization reorganized from the existing Long-term Strategy Bureau to comprehensively prepare essential functions for the future Korean economy, such as mid- to long-term national development strategies, population structure and climate change response, sustainable economic development, and cooperatives. A Sustainable Economy Division will be newly established within the Future Strategy Bureau to formulate policies related to sustainable development.

The Ministry of Economy and Finance stated, "With the revision of the organizational structure of economic policy-related departments, it is expected that the systematic promotion of structural reforms in pensions, labor, education, and the future preparedness functions such as sustainable development of our economy will be further strengthened."

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