[Gwanga in] "This Personnel Move Divides Affiliations"... Tension Engulfs Ministry of Economy and Finance

The Ministry of Economy and Finance is reportedly set to carry out personnel changes for general directors before the upcoming Lunar New Year holiday, heightening tension among employees more than ever. There is growing concern that the current organization might be split if the administration changes in the future. Since the Ministry has repeatedly undergone separation and integration according to the governing philosophy of successive administrations, employees are in a state of confusion, fearing that their affiliated departments might change following this personnel reshuffle.

According to related government agencies on the 8th, the Ministry of Economy and Finance is expected to conduct some general director personnel changes within January. Due to the ‘martial law-impeachment’ incident in December last year, it is difficult to carry out promotions for senior officials in earnest, but the personnel changes for directors and section chiefs, which usually take place around February to March every year, will proceed as usual. First, director-level personnel changes will be made, followed by section chief changes about a month later, as per custom.

Employees of the Ministry are feeling more anxious than ever ahead of the personnel changes. This is because there is concern that the reshuffle could become a turning point that changes their affiliated organizations, especially given the considerable possibility of an administration change. Lee Jae-myung, leader of the Democratic Party of Korea, raised the issue of splitting the Ministry of Economy and Finance during the 20th presidential election. At that time, Lee criticized the Ministry’s excessive power and proposed detaching the budget formulation function to place it directly under the Blue House.

Employees are envisioning several scenarios regarding the future of the potentially divided organization. The prevailing view is that the current first vice minister and second vice minister lines will be separated, with the Budget Office, a core part of the second vice minister line, moving directly under the president. There is also an opinion that the Budget Office might merge with a newly established Population Division. In an interview with a media outlet during the last presidential election, Lee stated that the Ministry should be split into the Ministry of Finance and the Planning and Budget Office, saying, "In the American style, since the budget is the most important, it would be better to place it directly under the president."

Despite the prevailing confusion, some see the personnel changes as not entirely negative in terms of resolving the backlog in promotions. One director said, “There is a confusing atmosphere as voices grow louder about the organization being split and affiliations changing, with various scenarios being discussed. However, some are taking it positively, believing that splitting the organization could be advantageous for future promotion opportunities.” The expectation is that dividing the organization will increase the number of senior officials, which could alleviate the chronic promotion bottleneck within the Ministry. Another employee said, “Therefore, I believe it is essential to secure a specialized position that will be advantageous for one’s career this time.”

The Ministry of Economy and Finance has repeatedly undergone integration and separation depending on the administration. The current Ministry originated from the Ministry of Finance and the Planning Office established with the founding of the government in 1948. The Planning Office expanded into the Economic Planning Board in 1961, taking on roles such as budget formulation and economic development planning. The Ministry of Finance was responsible for tax, treasury, finance, monetary, and foreign exchange policies. During the Kim Young-sam administration, the Economic Planning Board and Ministry of Finance were merged to form the Ministry of Finance and Economy. Under the Kim Dae-jung administration, it was split into the Planning and Budget Office, responsible for budget and public sector reform, and the Ministry of Finance and Economy. The current form of the Ministry of Economy and Finance was established during the Lee Myung-bak administration, which integrated the budget formulation function previously handled by the Planning and Budget Office and separated domestic finance into the Financial Services Commission.

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