[Viewpoint] Why the Early Disbandment of the 'F4' Is Regrettable

"The F4 will take the lead in overcoming the crisis with a one-team spirit" (Choo Kyung-ho, Deputy Prime Minister for Economy and Minister of Strategy and Finance, January 3, 2023, New Year's Meeting of Financial Sector Personnel)

This is not the F4 (Flower 4) from the blockbuster drama "Boys Over Flowers." The lively Deputy Prime Minister Choo named himself, Kim Joo-hyun, Chairman of the Financial Services Commission, Lee Bok-hyun, Governor of the Financial Supervisory Service, and Lee Chang-yong, Governor of the Bank of Korea, as the F4 (Finance 4), pledging teamwork.

"Our F4, with such experienced financial authorities and your cooperation, has managed risks smoothly without major difficulties" (President Yoon Suk-yeol, January 30, 2023, Financial Services Commission New Year Work Report)

President Yoon responded without hesitation. He affectionately called them "our F4" and encouraged them by saying they were doing well.

"(Regarding the controversy over discord among the F4 on interest rates) There is none" (Deputy Prime Minister Choo, April 13, 2023, Washington press conference)

It is not easy since the four must work in harmony. The Bank of Korea, an independent monetary policy institution, is naturally sensitive. Last year, there was controversy between the Ministry of Economy and Finance and the Bank of Korea over the supplementary budget, and this year, there have been talks of discord with the Financial Supervisory Service over interest rate issues. While raising rates to control inflation, the Ministry of Economy and Finance talks about supplementary budgets, and the Financial Supervisory Service pressures banks to lower interest rates, causing some noise to leak out. It is like stepping on the brake while being told not to press the accelerator.

"It seems difficult for any one member of the F4 to raise their hand and leave" (Governor Lee, June 2, 2023, 1st anniversary press conference)

This is a bold statement summarizing the status of all four members at once. The youngest, Governor Lee, appears to be fearless as rumored in the market. But will the F4 really remain intact without anyone running away?

The author's answer is "NO." The effective period is at most about six more months. Deputy Prime Minister Choo's run for the general election is practically a fixed variable. Public officials must resign 90 days before the election, which means around January next year when calculated backward. If this coincides with a cabinet reshuffle, the F4's disbandment will be brought forward. Governor Lee's candidacy for the general election is also a variable, and his remark "My term is at the discretion of the appointing authority" reveals the intention that "I can go if called." Governor Lee Chang-yong's status is a wild card. He is mentioned as a successor to Deputy Prime Minister Choo, but it is not an easy task. Since the Kim Dae-jung administration (People's Government), no Bank of Korea governor has left before completing a four-year term. The previous Governor Lee Ju-yeol even served two terms (eight years). It is uncertain whether he will break this hard-earned tradition and move positions. Chairman Kim is the most stable. Although there are occasional talks about his status due to health issues, it is far from his own will.

The F4 share a special bond. From 2008 to 2009, Governor Lee was Vice Chairman of the Financial Services Commission, and Chairman Kim was Director of the Policy Bureau of the Financial Services Commission. Deputy Prime Minister Choo, who was dispatched to the OECD, returned to the Financial Services Commission as Policy Bureau Director, succeeding Chairman Kim. Their ranks were the exact opposite of now. It is a peculiar connection. Governor Lee is a junior alumnus of Seoul National University’s Department of Economics to both Chairman Kim and Governor Lee, and still voluntarily serves as the secretary or administrative officer of the F4 meetings.

President Yoon attempted a sensational casting by combining three economic veterans with one legal expert. However, the likelihood of this turning into a "miscasting" lasting only a year and a half is growing. Unfortunately, with the economy difficult and this being a critical turning point, the early disbandment of the F4 is regrettable.

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