Ruling Party-Government Halts Financial Government Organization Reform Amid Opposition: "Finance Cannot Remain Unstable for Six Months" (Comprehensive)

On September 25, the ruling party and the government decided to exclude matters related to financial supervision from the handling of the Government Organization Act. They determined that continued instability, such as designating the reform of the financial supervisory system as a fast-track agenda, would not help overcome the economic crisis. As a result, all policy directions to establish a Financial Supervisory Commission, create a Financial Consumer Agency, and transfer financial policy to the Ministry of Economy and Finance have been suspended.

On this day, the ruling party and the government held an emergency consultation regarding the handling of the Government Organization Act and decided to halt the reorganization of government agencies related to finance, which could not be processed due to opposition from the opposition parties. Han Jeongae, the Chair of the Policy Committee of the Democratic Party of Korea, held an emergency meeting at the National Assembly and announced the results to reporters. Chair Han stated, "The Government Organization Act needs to be processed quickly, but with the current confrontation between the ruling and opposition parties, not only has a filibuster been announced, but even fast-track processing is being considered, so I believe the Government Organization Act should not become a source of national division." She further explained, "The role of finance is especially important in overcoming the economic crisis, but leaving the financial government organization in an unstable state for more than six months is of no help in overcoming the crisis."

Han Jeong-ae, the Chair of the Policy Committee of the Democratic Party of Korea, is speaking at the Policy Coordination Meeting held at the National Assembly on the 25th. Photo by Yonhap News

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Currently, in order to process the Government Organization Act related to finance, it must go through a review by the Legislation and Judiciary Committee, but the chair of this committee is currently held by the People Power Party, so the relevant legislative review has not taken place. Accordingly, the ruling party and the government have decided to halt the reorganization of financial government agencies in this round of government restructuring.

Chair Han stated, "The ruling party and the government have decided not to include the separation of the policy and supervisory functions of the Financial Services Commission and the establishment of a Financial Consumer Protection Agency, which were to be promoted via fast-track, in this government reorganization. If necessary, we can discuss these issues later and consult with the relevant standing committees. Separately, without amending the law, we will first prepare and implement measures to enhance the public interest and transparency of the consumer protection function within the current financial supervisory system." As a result, functions such as financial policy will remain with the Financial Services Commission as they are now, and the establishment of a Financial Consumer Agency will also be suspended.

Accordingly, the ruling party and the government plan to prepare and submit a revised bill to the plenary session that excludes a separate government organization act related to finance.

Regarding whether the government will pursue the financial government organization act again in the future, Chair Han said, "We need to consider further through future discussions how to proceed." Regarding follow-up measures such as consumer protection, the ruling party and the government will finalize their position and announce it later.

The Democratic Party of Korea requested that the People Power Party take a forward-looking stance and agree to the reorganization of the Government Organization Act in relation to this decision. Kim Byungwook, Senior Secretary for Political Affairs at the Presidential Office, said, "While discussing the reorganization of government agencies in the National Assembly, a filibuster was conducted and a fast-track was designated, leaving things in an unstable state for six to seven months. We sincerely ask the opposition for cooperation and hope that the ruling and opposition parties will reach a consensus on the reorganization of government agencies."

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