[Interview] Byeon Yang-gyun, Yoon's Man from No, "Will Support Economic Team Amid Complex Crisis"

Yoon Appoints Economic Advisor, "New Government Policy Focuses on Basics... Too Early to Judge"
In His Book, He Emphasized "Schumpeter-Style Growth Policy as the Answer in the 4th Industrial Revolution Era"
President Yoon: "A Person Who Has Long Expressed 4th Industrial Philosophy"
Presidential Office: "He Will Serve as an Advisor in a Broad Sense"... Suggesting Expanded Role

Byun Yang-gyun, former Chief of Policy Office at the Blue House, appointed as an economic advisor to the Yoon Suk-yeol administration. /

[Asia Economy Reporter Baek Kyunghwan] Byeon Yang-gyun, former Blue House Policy Chief appointed as an economic advisor to President Yoon Suk-yeol, described the current economy as a "complex economic crisis" and said, "After taking on the role of economic advisor, I will gradually find (specific) roles by assisting the new government’s economic team." Interest is also focused on whether the contents of his 2017 book, Shift in Economic Philosophy, which President Yoon read twice before deciding on the appointment, will be reflected in the government’s economic policies. President Yoon also evaluated Byeon as "someone who has long expressed a philosophy compatible with the Fourth Industrial Revolution."

On the 15th, ahead of his appointment as presidential economic advisor, Byeon responded in a phone interview with Asia Economy to questions about the global economic situation and the new government’s policy direction. He did not directly mention the reasons for accepting the advisory role. However, he described the current government’s economic team as "young" and said, "They are doing well even amid a complex economic crisis. Since it is just the beginning, it is still too early to judge (the success of policies)." This suggests a positive stance on the economic crisis response rather than the age of the economic team. He also analyzed the Yoon Suk-yeol administration’s economic policy as "seemingly faithful to the basics."

Byeon is an economic bureaucrat who served as Vice Minister and Minister of Planning and Budget (now Ministry of Economy and Finance) and as Blue House Policy Chief during the Roh Moo-hyun administration. In 2006, he was credited with concretizing the vision of a welfare state by establishing ‘Vision 2030,’ a specific investment plan to improve the quality of life for citizens.

President Yoon’s attention to Byeon was sparked by his 104-page book, Shift in Economic Philosophy. In the preface, Byeon emphasized that "the economic philosophy for the Fourth Industrial Revolution era is Schumpeterian growth policy," and stressed that "entrepreneurs must be able to engage in creative destruction to promise future growth." He highlighted the need for freedom in labor, land, investment, and the concept of a platform nation. Regarding the income-led growth theory promoted by the previous administration, he pointed out that "it must go hand in hand with Joseph Schumpeter-style (corporate innovation) economic policy," and criticized policies that artificially raise wages to boost consumption as having limitations given Korea’s demographic trends.

The government’s economic team expects Byeon, as a presidential advisor, to share his diverse experiences in responding to economic crises and provide advice to establish and implement appropriate policies. He is particularly expected to voice opinions on economic policies related to corporate innovation. Proposals include reducing corporate regulations to accelerate the Fourth Industrial Revolution and suggesting directions to ensure that fiscal resources are properly utilized in this process.

A senior official from the presidential office said, "Since President Yoon expects rapid establishment, implementation, and effects of economic policies utilizing fiscal resources, (Byeon’s) role could go beyond that of a simple economic advisor."

Speculation about Byeon’s appointment began with the establishment of the government’s Regulatory Innovation Promotion Team. Prime Minister Han Duck-soo indirectly introduced Byeon by saying, "We will publicly recruit someone who knows the problems of regulations and has the will to reform but has practically been unable to act and has retired. There is also someone who wrote a book in 2017 on labor reform, metropolitan area reform, and financial reform," referring to Byeon.

Another presidential office official conveyed the atmosphere, saying, "He will take on a broad advisory role that involves not only simple advice but also regular discussions with the economic team and the president," and added, "(President Yoon) has high expectations for this aspect as well."