[Government in] Ministry of Economy and Finance Faces an Unprecedentedly Busy Summer

A Summer of Successive Announcements for the New Government's Budget and Policies
Rapid Policy Implementation Expected to Continue
"We Expect to Be Busy Throughout the Year"

With the launch of a new government next month, the Ministry of Economy and Finance is expected to face a busy summer. The supplementary budget, the budget for next year, and the new government's economic policy direction are all scheduled to be announced quickly by August, and a variety of policies are expected to be pushed forward at a rapid pace. This has led to expectations that this will be an unprecedented period.

A view of the Central Building of the Government Sejong Complex, where the Ministry of Economy and Finance is located. Asia Economy DB

As of May 27, the Ministry of Economy and Finance is on edge due to major tasks that could continue through August after the new government takes office. Although the results of the presidential election have not yet been announced, the main policy pledges of the presidential candidates have already been made public, and considering the ministry's usual summer schedule, the workload is expected to be heavier than usual.

Within and outside the ministry, there are predictions that, since all major presidential candidates have mentioned a supplementary budget, the second supplementary budget for this year could be implemented quickly after the new government is launched. The first supplementary budget was set at 13.8 trillion won, but the second one may be even larger. The economic policy direction for the second half of the year, which typically comes out at the end of June or early July, is expected to be treated as the new government's first major economic policy announcement.

While presidential candidates are competing with tax cut pledges, the government is also scheduled to unveil a tax reform plan at the end of July. In addition, the announcement of the budget proposal for next year and the National Fiscal Management Plan, which usually come at the end of August, have gained greater importance this year.

Because the presidential term will begin without a transition committee period for the new government, a variety of policies are likely to be pushed forward quickly, and related tasks may also increase. Although the possibility of organizational restructuring has been raised, the Ministry of Economy and Finance has said that, due to the amount of work to be handled in the coming months, "there will be no time to feel confused for a while."

An official from the Ministry of Economy and Finance, identified as A, said, "There is always a lot of work in a year when the government changes, but this year, there is talk that there could be even more than usual. In the past, only some departments with specific tasks were especially busy in the summer, but this year, the entire ministry is expected to be busy overall." Another official, B, added, "Since the new government will be launched in June, it is inevitable that we will be even busier during the summer. It is something we cannot avoid."

In the first year of the Moon Jaein administration, which began in May 2017 without a presidential transition committee due to the impeachment of former President Park Geunhye, the supplementary budget was prepared in June and the related budget bill passed the National Assembly plenary session within a month. Subsequently, the new government's economic policy direction (July), the 2018 budget proposal, and the 2017-2021 National Fiscal Management Plan (August) were announced in succession.