Ministry of Finance and Economy Without Financial and Budget Functions Eyes Upgrade from Policy Coordination Bureau to Office [Government in]

Intense Internal Restructuring Talks at the Ministry of Finance and Economy
With Finance and Budget Functions Removed,
Debate Over Strengthening Organizational Roles
Uncertainty Remains Over Economic Control Tower Capabilities

With the exclusion of financial functions, the Ministry of Economy and Finance (formerly the Ministry of Finance and Economy) has lost its core policy authority and has begun discussions on an 'internal organizational restructuring.' It has been reported that measures such as upgrading the current Policy Coordination Bureau to a Policy Coordination Office are being considered in order to secure its presence as the economic control tower, sparking internal opposition.

According to sources at the Ministry of Economy and Finance on October 21, the ministry is continuing discussions on the organizational structure of the Ministry of Finance and Economy following the withdrawal of the financial authorities' restructuring plan and the separation of the budget office. With both the budget and financial functions removed, there is a widespread perception that there are no effective policy coordination tools left. As a result, strengthening the coordination function is being seriously considered.

Within the ministry, a restructuring plan to upgrade the Policy Coordination Bureau to a 'Policy Coordination Office' is being discussed. Since the organization has been downsized due to the separation of the budget office, the plan is to redesign the organization to strengthen the remaining economic policy and policy coordination functions. On September 29, First Vice Minister Lee Hyungil responded to a question about the creation of a Policy Coordination Office at an internal meeting, saying, "We will strengthen the policy coordination function through organizational change and work innovation." In addition, there are also discussions about upgrading the Treasury Bureau to a Treasury Office.

It is known that the first vice minister's line within the Ministry of Finance and Economy will retain the Tax Policy Office and the Assistant Vice Minister's Office (Economic Policy Office) as they are, while the newly established Policy Coordination Office will be placed under the second vice minister. The prevailing view is that the first vice minister will focus on 'economic policy, tax policy, and planning and coordination,' while the second vice minister will focus on 'policy coordination, international affairs, treasury, and public affairs,' creating a dual structure. Currently, the ministry is structured so that the first vice minister is responsible for tax policy, the assistant vice minister (economic policy and policy coordination), and international affairs, while the second vice minister oversees the budget, treasury, and fiscal affairs.

There are concerns that it will not be easy to upgrade both the Policy Coordination Bureau and the Treasury Bureau to offices during consultations with the Ministry of the Interior and Safety. The expectation is that it will be difficult to obtain approval from the Ministry of the Interior and Safety to create two new first-grade director positions. Therefore, a more realistic scenario is that instead of upgrading both bureaus to offices, a second assistant vice minister (first-grade) would oversee both the policy coordination line and the Treasury Bureau. However, since the Ministry of Finance and Economy has suffered significant losses due to the withdrawal of the financial authorities' integration, some expect that the ministry's demands will be reflected to some extent.

There is also growing internal opposition regarding the possibility of upgrading the Policy Coordination Office. Some employees argue that, since the resources to lead or persuade other ministries have disappeared, the coordination role should be eliminated altogether. The ministry is currently engulfed in concerns that it may be reduced to merely a tax agency due to the separation of the budget office and the exclusion of financial functions. Among employees, there are claims that "upgrading the Policy Coordination Bureau to an office will not enable the ministry to serve as a control tower without the budget and financial functions," and that "it is more realistic to remove the policy coordination function altogether."

Meanwhile, the Ministry of Planning and Budget, which is being separated from the Ministry of Finance and Economy, is also busy designing its organization to devise the nation's long-term strategies. In order to continuously present long-term strategies like the 'Vision 2030' project designed and successfully implemented by the budget office during the Roh Moo-hyun administration, there is a flurry of activity to establish a separate organization dedicated to national development strategy. However, the budget office anticipates that the consultation process with the Ministry of the Interior and Safety will not be easy.

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