Yoon Administration's First 'Economic Commander' Choo Kyung-ho... Challenges Including Inflation and Fiscal Soundness Pile Up (Update)

Experienced Economist Through MoEF and FSC... Senior Deputy Prime Minister Nominee Raises Expectations Among MoEF Officials
Economic Issues Such as Inflation, Supplementary Budget, and Fiscal Soundness Accumulate

Chu Kyung-ho, a member of the People Power Party who was nominated as the first Minister of Economy and Finance and Deputy Prime Minister for Economic Affairs under the Yoon Suk-yeol administration, is entering the office at the Presidential Transition Committee set up at the Financial Supervisory Service Training Institute in Tongui-dong, Jongno-gu, Seoul on the 10th. Photo by Transition Committee Press Corps

[Asia Economy Sejong=Reporter Kwon Haeyoung] Chu Kyung-ho, a member of the People Power Party who has been nominated as the first Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance under the Yoon Suk-yeol administration, is a seasoned economic bureaucrat who has long served in the Ministry of Economy and Finance and other economic departments. The challenges facing the new government's first 'economic commander' are not easy. Addressing urgent issues confronting the Korean economy, such as the slowdown in economic recovery, high inflation, and worsening fiscal soundness, is expected to be the main task for Deputy Prime Minister nominee Chu Kyung-ho.

President-elect Yoon Suk-yeol announced on the 10th that he had selected Chu as the next government's first Deputy Prime Minister for Economic Affairs.

Chu was born in 1960 in Dalseong-gun, Daegu, and graduated from Kyeseong High School and Korea University with a degree in Business Administration. He passed the 25th Administrative Examination in 1981 and worked in various government offices including the Ministry of General Affairs, Economic Planning Board, Ministry of Finance and Economy, the Office of the President’s Senior Secretary for Economic Affairs, and the Ministry of Economy and Finance.

During the Lee Myung-bak administration, he served as Vice Chairman of the Financial Services Commission in 2011; under the Park Geun-hye administration, he was the 1st Vice Minister of Economy and Finance in 2013 and Minister-level Director of the Office for Government Policy Coordination in 2014. He served as a member of the 20th and 21st National Assembly, participating in the National Assembly’s Planning and Finance Committee and Special Committee on Budget and Accounts, and recently served as the Senior Deputy Floor Leader. He currently serves as the secretary of the Planning and Coordination Subcommittee of the Presidential Transition Committee.

Having gained extensive experience in both the executive and legislative branches, he is known as an 'economic expert' who has openly criticized the Moon Jae-in administration’s economic policies.

An official from the Ministry of Economy and Finance said, "Chu’s work ability was outstanding and rational during his time as a ministry bureaucrat, so expectations are high internally." Above all, as a former ministry official with a deep understanding of the bureaucratic society, and as a current lawmaker and secretary of the transition committee’s planning and coordination subcommittee, there is considerable anticipation for a 'powerful' Deputy Prime Minister.

However, the conditions surrounding the Korean economy have been worsening recently, so Chu will face difficult tasks from the outset of the new government. With the Ukraine crisis expected to slow the economic recovery and consumer prices rising at a 4% rate for the first time in 10 years, concerns about 'stagflation' are growing. Furthermore, the transition committee has announced plans to prepare a supplementary budget (Chugyeong) of about 50 trillion won immediately after the new government takes office, which could further fuel inflation.

Regarding this, Chu said on the same day, "The top priority of the new government is to stabilize prices of daily necessities and secure the livelihood of ordinary people," adding, "Once the government officially launches, economic ministers will work as a 'one team' to prioritize price stabilization and address the pressing issues." On the supplementary budget, he stated, "We cannot stop preparing the supplementary budget because of inflation," and added, "We will consider what combination can alleviate inflation concerns while achieving the purpose and results of the supplementary budget." When asked about the possibility of reducing the supplementary budget size, he replied, "We will consider the combination and explain it within the final combination."

The real estate market, which is stirred by expectations of deregulation promised by President-elect Yoon, is another difficult issue Chu must tackle. Regulations must be lifted without stimulating the real estate market. Improving fiscal soundness, which is rapidly deteriorating as national debt surpasses 50% of the Gross Domestic Product (GDP), is also a challenge ahead of Chu.

President-elect Yoon said, "Currently, the Korean economy is facing a difficult situation with declining growth rates, soaring prices, increasing hardships for the public, and weakening economic fundamentals," and explained the reason for the appointment: "To wisely solve the pressing economic challenges, someone like Chu Kyung-ho, who possesses expertise and leadership gained from public service as well as political skills in dealing with the National Assembly, is absolutely necessary."