Prime Minister Han's Direct Criticism: "KDI President, Architect of Sojusung, Is Unacceptable and Must Be Replaced" (Comprehensive)

[Asia Economy Sejong=Reporters Kim Hyewon and Lee Gimin] Prime Minister Han Deok-su pressured Hong Jang-pyo, President of the Korea Development Institute (KDI) appointed during the Moon Jae-in administration, to voluntarily resign, stating, "It is unacceptable that the architect of the income-led growth (Sojuseong) policy is sitting as the head of KDI."

On the evening of the 28th, at a press dinner commemorating his one-month inauguration held at the Prime Minister's official residence in Sejong, Prime Minister Han responded to questions about the positions of the KDI President and the Chairman of the National Research Council for Economics, Humanities and Social Sciences by saying, "They need to be changed." When asked if it would be difficult to replace them due to their remaining terms, he replied, "They do not align well with us (the new government)" and added, "Time will resolve this."

This is interpreted as a direct criticism implying that Hong, who led the 'Sojuseong' policy as the first economic chief in the Moon administration, is inappropriate to maintain his position as head of a national research institute because his governance philosophy and direction differ from those of the Yoon Seok-yeol government. It also carries the meaning that it is appropriate for him to step down voluntarily. Jeong Hae-gu, who served as chairman of the Presidential Committee on Policy Planning during the Moon administration and currently serves as chairman of the National Research Council for Economics, Humanities and Social Sciences, was mentioned in the same context. Both Hong and Jeong took office in May last year and have significant remaining terms.

On this day, Prime Minister Han repeatedly emphasized that not only Sojuseong but also the Moon administration's regulatory and labor policies do not fit the current government's situation, appealing for the necessity of their replacement. Han said, "First and foremost, what we must do is address the worsening economy. Of course, this is due to a combination of various external conditions, internal circumstances, and the legacy of past policies. The current government must take full responsibility and resolve these issues," indirectly criticizing the Moon administration's economic policies.

He also stressed that economic and national management entities must be liberated through regulatory innovation and repeatedly emphasized 'investment-led growth' through attracting domestic and foreign corporate investments. Han stated, "To increase investment attraction, we must implement negative regulation policies," adding, "Regulatory reform to create a country where everyone is happy depends on us."

Furthermore, he pointed out that the previous administration lacked technical support regarding social regulations such as environment, labor, and safety, and failed to establish momentum for corporate management. Han said, "It is true that regulations affect companies and technology in social issues, but the reason improvements were not made is that those advocating regulatory reform had different goals," adding, "In my view, there are many ways for companies to have momentum to support technology and manage well."

Regarding the delayed appointment of the Fair Trade Commission chairman, Han said, "I believe it is more likely that the position will not be filled by a bureaucrat." He continued, "When it comes to Fair Trade Commission appointments, there is never a shortage of candidates. There are two or three, but the verification process takes much longer than expected," explaining, "Although it is an internal verification, since the government has launched, there seems to be a tendency to complete all procedures and data backup for the verification function thoroughly." He added, "The delay is due to verification, not other reasons," and said, "I am not sure if a civil servant will take the position. It is more likely that they will not," concluding, "It probably won't be a traditional administrative civil servant."