Commercial Act Amendment and Yellow Envelope Act Likely to Become Reality [New Government Policy Issues]

Lee Administration Accelerates Response to Key Economic Issues
Focus on Market-Oriented Policies and Protection of the Vulnerable
Swift Appointments and Cabinet Formation Expected After Inauguration

Yonhap News

The Lee Jaemyung administration, which was launched on June 4, is accelerating its response to key economic issues. While the new government has adopted a pragmatic market-oriented approach, it has also announced a firm stance against actions that oppress the vulnerable unfairly or threaten market order through unfair trade practices. There is widespread expectation that amendments to the Commercial Act and the so-called Yellow Envelope Act (Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), both of which have faced opposition from the business community, could be pushed through swiftly following the inauguration.

The new administration, which began without a transition committee, is focusing on minimizing any administrative vacuum by quickly appointing key aides in the presidential office and reorganizing its structure. As President Lee Jaemyung initiated the operation of an emergency economic response task force (TF) as his first official order after taking office, it is expected that a candidate for Deputy Prime Minister for Economic Affairs will be nominated soon. With the nomination of the Prime Minister marking the start of full-scale cabinet appointments, there is growing interest among government officials in Sejong regarding the timing and scope of the new cabinet formation.

There are also expectations that the administration will seek to take control of ministries by focusing on vice ministers, who are the highest-ranking political appointees that the president can appoint by executive order without parliamentary approval. According to the current Government Organization Act, central administrative agencies consist of 19 ministries, 3 offices, 20 agencies, and 6 commissions. As of the end of last year, the president had the authority to appoint or dismiss 35 minister-level officials and 26 vice ministers. Some observers predict that vice ministers, rather than ministers, could take the lead in running state affairs for the time being, ushering in an era of "vice minister politics."

Ministries facing direct changes such as dissolution are on high alert. The Financial Services Commission and the Financial Supervisory Service are prime examples. Since President Lee has signaled a restructuring of the financial supervisory system since his candidacy, the nomination of the next chairperson and vice chairperson (vice minister-level) of the Financial Services Commission may serve as a key indicator of whether the commission will continue to exist.