'Writing 1000 Emails, Holding a New York Briefing'... Former Economic Chiefs' Impeachment Response Methods

President Yoon Suk-yeol's Impeachment Motion Passed
Choi Sang-mok Appointed as South Korea's Chief Economic Officer
Reviewing Economic Deputy Prime Minister's Actions During Past Impeachment
Full Efforts to Block 'Market Anxiety'

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance. Photo by Jo Yong-jun

With the impeachment motion against President Yoon Suk-yeol passed at the National Assembly at 5:02 PM on the 14th, Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, will take on the role of the chief responsible for the economy for the time being. Just as previous Deputy Prime Ministers for Economic Affairs focused on calming market anxiety during two past impeachment phases, Deputy Prime Minister Choi is also expected to devote full efforts to reassuring the market.

The Ministry of Economy and Finance announced to the press corps about eight minutes after the impeachment motion was passed that Deputy Prime Minister Choi will hold an emergency meeting of economic-related ministers on the afternoon of the 15th, followed by a meeting of foreign affairs ministers. Subsequently, he plans to preside over the Macroeconomic and Financial Issues Meeting (F4). In his opening remarks at these meetings, Deputy Prime Minister Choi is expected to appeal to ease market concerns. No matter how solid the fundamentals are, if sentiment shrinks, negative effects on the real economy may occur. If credit ratings or external credibility are damaged, there is also a risk of significant harm to the Korean economy.

Former Deputy Prime Minister for Economic Affairs Lee Heon-jae

For this reason, during past impeachment phases, the Deputy Prime Minister for Economic Affairs put great effort into blocking anxiety. When President Roh Moo-hyun’s powers were suspended on March 12, 2004, then Deputy Prime Minister Lee Heon-jae acted like a president in charge of economic affairs. On the same day, he issued a statement saying, “We will turn this into an opportunity to showcase our economy domestically and internationally,” and “I will take responsibility for economic issues.” The strong message from the economic chief helped the stock market, which had been plummeting, to partially recover.

Deputy Prime Minister Lee also devoted great care to preventing a fall in credibility. On the evening the impeachment motion was passed, he sent emails to the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), international credit rating agencies, and major investment banks stating that “the impact of the impeachment on the Korean economy is minimal.” The number of recipients of these emails reached about 1,000. Within two days, he secured commitments from international credit rating agencies not to change Korea’s credit rating.

Former Deputy Prime Minister Yoo Il-ho is conducting a 'Korean Economy Briefing' for foreign investors in New York, USA, on January 12, 2017. Photo by Yonhap News.

Former Deputy Prime Minister Yoo Il-ho also focused on stabilizing economic sentiment after the impeachment motion against President Park Geun-hye was passed on December 9, 2016. Despite the politically sensitive situation, he met with reporters the very next day and emphasized, “The economy is sentiment,” adding, “Since this is an emergency situation, we will actively implement policies to prevent economic agents from shrinking.” On the 15th of the same month, he held meetings with foreign chambers of commerce and foreign investors, expressing his intention to improve systems to promote foreign investment.

Deputy Prime Minister Yoo also traveled abroad personally. About a month later, on January 12, 2017, he gathered around 150 foreign investors in New York, USA, for a “Korean Economy Briefing.” Despite the grave situation, he even smiled on stage, asserting that there were no problems with the domestic economy. Regarding the economic situation following the impeachment motion, he said, “I believe the political fallout will be minimized,” quoting a famous line from the movie Interstellar: “We will find a way in any situation, and we must.”