[Ministry of Economy and Finance's Prime Era]② "Budgets and Connections"... Powerful Positions Beyond Government in Finance Sector and Local Governments

Financial Sector, Local Governments, and Corporations Increasingly Enter Ministry of Economy and Finance
Strong Budget Authority and Network Power... Preference for Former Officials
Economic Vice Governors Hold 5 out of 9 Metropolitan Provinces
Insiders Say "Personnel Bottleneck... Is This a Heyday?"

The career destinations of former officials from the Ministry of Economy and Finance (MOEF) are not limited to key government positions. Many also move into the financial sector, which is closely related to their work, as well as the National Assembly, local governments, and private companies. Being well-versed in various government policies, national projects, and government budgets, they are highly regarded as 'former officials' wherever they go. Although there are voices within MOEF saying their influence has weakened compared to the past, there is no disagreement that the 'MOEF heyday' still signifies strong power.

MOEF Former Officials... Preferred in Both Financial Sector and Corporations

The place where MOEF alumni most frequently advance is undoubtedly the financial sector. Among the chairpersons of the five major financial holding companies (Kookmin, Shinhan, Hana, Nonghyup, and Woori), two are former MOEF officials. Lim Jong-ryong, Chairman of Woori Financial Group, is a traditional senior bureaucrat who served as the 1st Vice Minister of MOEF, Economic and Financial Secretary to the Blue House, and Chairman of the Financial Services Commission. Lee Seok-jun, Chairman of NH Nonghyup Financial Group, also served as the 2nd Vice Minister of MOEF and Head of the Office for Government Policy Coordination.

Additionally, many MOEF alumni hold key positions in related institutions, such as Jung Eun-bo, Chairman of the Korea Exchange; Kim Cheol-ju, Chairman of the Life Insurance Association; Kim Tae-hyun, Chairman of the National Pension Service; Yoo Jae-hoon, President of the Korea Deposit Insurance Corporation; Choi Won-mok, Chairman of the Korea Credit Guarantee Fund; Hong Jae-moon, Chairman of the Online Investment-Linked Finance Association; and Kim Sung-jin, Standing Auditor of the Korea Exchange. While there is a positive view that seasoned economic bureaucrats continue their careers in the private sector, criticism arises that the blurred boundaries between public and private sectors are intensifying collusive relationships.

It is also common for senior officials from economic ministries to move into corporate roles such as outside directors or auditors. Bureaucrats can earn high salaries, and companies can use them as channels for various permits, civil complaints, or as bridges to the government, creating a 'win-win' situation. In the current administration, Prime Minister Han Duck-soo previously worked as an advisor and outside director at Kim & Chang and S-Oil, and Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, also served as an outside director at Ildong Holdings and Shinhan Investment Corp.

There are still numerous discreet moves of MOEF alumni to other sectors. An industry insider explained, "Economic ministry officials often have excellent work capabilities and a strong grasp of macroeconomics. In times of great domestic and international economic uncertainty like now, their value is especially high." Examples of MOEF alumni recognized for their abilities in the private sector include Kim Itaek, who was promoted to President of Samsung Venture Investment at the end of last year, and Lee Byung-won, Vice President of Samsung Electronics IR Team.

"Even One More Won of Budget"... Popular in Local Governments Too

Local governments, in particular, have consistently preferred MOEF alumni since the ministry's establishment in 2008. Currently, among the nine metropolitan and special self-governing provinces, five economic vice governors are former MOEF officials: Gyeonggi Province (Kim Hyun-gon, former Director of Fiscal Management), Gyeongsangnam Province (Kim Myung-joo, former Director), Chungcheongbuk Province (Kim Myung-gyu, former Director of Comprehensive Policy), Chungcheongnam Province (Jeon Hyung-sik, former Director of Treasury), and Jeollanam Province (Park Chang-hwan, former Director of Budget Coordination). Until recently, Gangwon Province and Jeollabuk Province also had economic vice governors from MOEF.

Local governments with low fiscal independence have no choice but to prefer officials from MOEF’s budget line to win budget battles, according to local government explanations. Large-scale social overhead capital (SOC) projects require national subsidies, which attract strong interest from governors and mayors. Although having an economic vice governor from MOEF does not guarantee more budget than other local governments, there is an expectation that they will leverage their know-how and connections to persuade MOEF and secure even one more won.

Promotion 'Needle's Eye'... Inside MOEF: "It's Not a Heyday"

The reason MOEF alumni advance to key positions across various fields also lies within the ministry itself. Due to the organizational characteristics of MOEF, which has many officials from the state exam, personnel stagnation is more severe than in other ministries, forcing them to expand their scope externally. It takes at least 20 years to rise from Assistant Director (Grade 5) to Deputy Director General (Grade 3) within MOEF, and promotion to Grade 1 is truly like threading a needle. Compared to peers in other ministries, MOEF officials often hold lower positions and experience promotions several years later.

As a result, there is a sense of discomfort within MOEF about the label 'heyday.' A MOEF director said, "There are many minister-level officials from MOEF, but calling it a heyday is an overstatement. In the past, MOEF officials moved more into the private sector, but now they mostly circulate within the ministry." Another director-level official added, "Because a senior official must leave MOEF for a chain of promotions to occur, it is inevitable that promotions are limited."