President Moon Expresses Confidence in Deputy Prime Minister Hong Nam-ki... Possibility of Including Finance Minister in Year-End Cabinet Reshuffle
[Asia Economy Reporters Jungmin Ryu and Sehee Jang] "Right after the Cabinet meeting, the President met with Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki."
It is noteworthy that Kang Min-seok, the Blue House spokesperson, announced on the 3rd the meeting between President Moon Jae-in and Deputy Prime Minister Hong. The unusual disclosure of President Moon’s private schedule reflects an intention to swiftly quell the controversy surrounding Deputy Prime Minister Hong’s position.
Spokesperson Kang emphasized, "The issue of Deputy Prime Minister Hong’s resignation is currently at the stage of rejection and reaffirmation." Even after the disclosure of Hong’s resignation offer and the Blue House’s rejection, the controversy did not subside, so this was a clear message conveying the Blue House’s stance.
Deputy Prime Minister for Economy Hong Nam-ki attended the plenary session of the Special Committee on Budget and Accounts held at the National Assembly on the 4th and was talking with Ahn Il-hwan, the 2nd Vice Minister of the Ministry of Economy and Finance, before the meeting started. Photo by Yoon Dong-joo doso7@
Despite the global economic crisis caused by the COVID-19 pandemic, South Korea has been performing relatively well, making a change in the economic command center a difficult option. The problem is that the controversy over Deputy Prime Minister Hong’s position has reached a point where it cannot be ignored. While President Moon’s public expression of trust has empowered Deputy Prime Minister Hong, the embers of controversy have not died down.
The ruling party finds Deputy Prime Minister Hong’s 'unexpected actions' uncomfortable, and the year-end cabinet reshuffle factor is also amplifying the controversy over his position. Hong’s actions are acting as a 'double-edged sword.' His disclosure of the resignation at the National Assembly’s Planning and Finance Committee was a choice to emphasize his conviction regarding the major shareholder capital gains tax criteria.
As the head of the economic ministry, his message about policy conviction attracted attention but resulted in a political burden for the ruling party. Although it is difficult for the ruling party to openly criticize Deputy Prime Minister Hong, it remains to be seen whether he can continue to navigate smoothly as the economic commander.
He is expected to continue his role until the December regular National Assembly budget approval, but there are speculations that he might be naturally replaced during the year-end cabinet reshuffle. There is also a possibility that the entire economic control tower, including Kim Sang-jo, the Blue House Chief of Policy, could be replaced.
In fact, within government circles, speculation about his successor is already attracting attention. Candidates mentioned as Deputy Prime Minister Hong’s successor include Ko Hyung-kwon, Ambassador to the OECD (30th Administrative Examination), Koo Yoon-chul, Director of the Office for Government Policy Coordination (32nd Administrative Examination), Lee Ho-seung, Blue House Senior Secretary for Economic Affairs (32nd Administrative Examination), Eun Sung-soo, Chairman of the Financial Services Commission (27th Administrative Examination), and Kim Yong-beom, First Vice Minister of Economy and Finance (30th Administrative Examination).
Ambassador Ko is from Haenam, Jeollanam-do, graduated from Seoul National University’s Department of Economics, and previously served as First Vice Minister of Economy and Finance. Director Koo graduated from Daegu Youngshin High School and Seoul National University’s Department of Economics and was responsible for overseeing the Moon Jae-in administration’s budget formulation.
Deputy Prime Minister Hong’s position is a matter of concern for President Moon. Although he has already expressed trust, replacing Deputy Prime Minister Hong during the year-end cabinet reshuffle is also a burdensome decision. It is speculated that President Moon will give Hong an opportunity to maintain momentum for major national projects such as the 'Korean New Deal,' which he is keen on advancing.
However, there is a contrasting analysis that if the timing of the year-end reshuffle is missed, the political burden surrounding the replacement of the economic commander could increase. Replacing him naturally during the year-end reshuffle might actually be a choice that alleviates political burdens such as dismissal controversies.
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