Deputy Prime Minister Hong Nam-ki Retained... Shoulders Grow Heavier

Deputy Prime Minister Hong Nam-ki is attending the 8th Innovation Growth Big 3 Promotion Meeting held on the morning of the 16th at the Autonomous Driving Pilot Zone in Sangam-dong, Mapo-gu, Seoul, listening attentively to the explanation of autonomous vehicle technology. Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Kim Hyun-jung] The Blue House's decision to retain Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki has placed even greater responsibility on his shoulders. He must fill the vacant position of the 'second-in-command of the executive branch' following Prime Minister Chung Sye-kyun's resignation, as well as manage various issues surrounding the real estate market. Whether his tenure will be temporary until the confirmation process of the successor nominee Kim Boo-kyum is completed, or if he will remain in office throughout the Moon Jae-in administration, is also a matter of interest.

According to ruling party officials on the 16th, Deputy Prime Minister Hong will temporarily assume the role of Acting Prime Minister to fill the vacancy left by Prime Minister Chung, who stepped down to run for president. Although his name had been consistently mentioned in cabinet reshuffle lists, the Blue House has decided that he will remain in office at least until the successor's confirmation process is finalized.

Accordingly, Hong will temporarily fill the position of the executive branch's second-in-command. He will attend the weekly meetings with President Moon Jae-in and take over the chairmanship of the 'Central Disaster and Safety Countermeasure Headquarters (CDSCH)' meetings on COVID-19, which the Prime Minister held daily. In particular, he will continue discussions on special quarantine measures, including social distancing, effectively inheriting the task of devising solutions for vaccine supply issues that Prime Minister Chung was unable to complete. To this end, he will also chair weekly meetings to review the status of vaccines and therapeutics.

Following the election of Seoul Mayor Oh Se-hoon, Hong will also be responsible for resolving potential discord between the central government and local governments regarding real estate policies for the time being. Since Minister of Land, Infrastructure and Transport Byun Chang-heum resigned due to the Korea Land and Housing Corporation (LH) scandal and was replaced, it will inevitably take some time to complete the handover after the new minister passes the confirmation hearing.

After Mayor Oh's election, real estate prices, especially in reconstruction complexes in Gangnam, Seoul, have been rising, prompting Hong to raise successive cautionary voices. On the 15th, the day before the Korea Real Estate Board's weekly price trend was announced, seemingly aware of concerns about discord between the central government and Seoul city, he wrote on his social network service (SNS), "Both private reconstruction and public-led redevelopment and reconstruction aim to increase housing supply, but we must always be vigilant to prevent instability in the real estate market during the process. We will proceed with housing supply measures, including the 2.4 Plan, as scheduled while closely monitoring the real estate market situation."

Some speculate that Hong may remain in office even after the successor's confirmation hearing. Given President Moon's strong trust in Hong and the relatively steady economic recovery despite the resurgence of COVID-19, it is possible that he will continue until the end of the administration. However, there are also arguments that personnel reshuffles may be necessary to vigorously push forward various national agendas, including the Moon administration's 'Korean New Deal' project.