National Policy Planning Committee Prepares Draft for Government Organization Restructuring TF
Separation of Ministry of Finance and Economy and Ministry of Planning and Budget
Transfer of Financial Policy from Financial Services Commission to Ministry of Finance and Economy
Possibility of Creating a New Vice Minister for Finance in the Ministry of Finance and Economy
Revival of the Financial Supervisory Commission
Return to Organizational Structure of the Roh Moo-hyun Administration
As the National Policy Planning Committee is finalizing plans for restructuring key economic ministries such as the Ministry of Economy and Finance (MOEF) and the Financial Services Commission (FSC), there is growing speculation that a new vice minister position in charge of finance will be created following the reorganization of the MOEF. This stems from the view that if the MOEF's financial policy functions are strengthened, a senior official (vice minister) overseeing these policies will be necessary.
According to the National Policy Planning Committee on July 3, the "Government Organization Restructuring Task Force (TF)" has completed a draft for reorganizing the MOEF and plans to report it to the Presidential Office this week.
The main direction of the MOEF restructuring has already been set. There is a strong possibility that budget functions will be separated from the MOEF to establish a new Ministry of Planning and Budget, while economic policy will be handled by a Ministry of Finance and Economy. As part of this, the FSC's financial policy functions would be transferred to the Ministry of Finance and Economy, and the Financial Supervisory Commission?which was created and later dissolved following International Monetary Fund (IMF) recommendations during the foreign exchange crisis?would be revived.
A National Policy Planning Committee official stated that details have not yet been finalized. The official explained that there are many issues requiring careful discussion, ranging from the organizational structure to the separation of policy and supervisory functions. It is also known that several options exist regarding the scope of responsibilities for the Ministry of Planning and Budget.
One option is to establish the Ministry of Planning and Budget to handle only budget functions. In this case, it would be a return to the government structure under the Kim Dae-jung and Roh Moo-hyun administrations. At that time, the Roh Moo-hyun administration operated the Ministry of Finance and Economy and the Ministry of Planning and Budget as separate entities.
Another option under consideration is to transfer both the Economic Policy Bureau and the Coordination Bureau to the Ministry of Planning and Budget. The Economic Policy Bureau oversees overall economic policy, while the Coordination Bureau is responsible for various industrial and service policies. This model is based on the Economic Planning Board (EPB), which led the five-year economic development plans during the Park Chung-hee administration.
The reason for considering the EPB model is believed to reflect the new administration's emphasis on "fiscal expansion." Under strong government leadership, this model would support the development of high-tech industries, encourage investment, and ensure consistent implementation of related policies. However, the Economic Planning Board could wield more power than the current MOEF.
If the MOEF's budget functions are separated, it is expected that the MOEF's Second Vice Minister will move under the Ministry of Planning and Budget, as the Second Vice Minister currently oversees budget and fiscal matters. Instead, there is discussion of creating a new vice minister position in the Ministry of Finance and Economy dedicated to financial policy.
A National Policy Planning Committee official stated, "Currently, the MOEF's international financial policy line only has an assistant vice minister, but if domestic financial affairs from the FSC are also managed, the financial policy organization and its importance will grow," adding, "In addition to the assistant vice minister (director-general), a vice minister role will be necessary."
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