Government Restructuring Turmoil: Ruling Party Pushes for Plenary Passage This Month, Opposition Decries "Unrestrained Biological Experiment"

Lee Administration Finalizes First Restructuring Plan
Democratic Party Pushes Ahead Amid People Power Party Opposition
Coordination of Ministries and Standing Committees Remains a Challenge

The outline of the first organizational restructuring plan under the Lee Jaemyung administration has emerged, but significant challenges are expected during the legislative process. The Democratic Party of Korea plans to pass the amendment to the Government Organization Act at the plenary session on the 25th and implement it sequentially next year. In contrast, the People Power Party has made it clear that it cannot cooperate with the Democratic Party’s proposal, which includes the abolition of the Prosecutors’ Office and the separation of the Financial Services Commission, making conflict between the ruling and opposition parties inevitable.

Jang Donghyuk, leader of the People Power Party, is speaking at the Supreme Council meeting held at the National Assembly on September 8, 2025. Photo by Kim Hyunmin

Jeong Cheongrae, leader of the Democratic Party of Korea, stated at the Supreme Council meeting held at the National Assembly on the morning of September 8, "By the end of this month, we will ensure that the amendment to the Government Organization Act, including prosecutorial reform, is passed at the plenary session." He added, "As promised to the people, we will deliver the news of the abolition of the Prosecutors’ Office as they travel home for Chuseok." Jeong also said, "We will make sure that follow-up measures proceed without any setbacks, with the party and government acting as one team and one voice to ensure success. The party will always provide strong support for the Lee Jaemyung administration."

If the Democratic Party’s plan proceeds as intended, the establishment of the Ministry of Planning and Budget and the restructuring of the Ministry of Economy and Finance and the Financial Supervisory Commission are expected to take effect on January 2 of next year. The abolition of the Prosecutors’ Office and the establishment of the Public Prosecution Service and the Serious Crimes Investigation Agency are expected to be implemented around September of next year, one year after the promulgation of the amendment. However, at this stage, only the broad framework has been set. Detailed issues such as coordination of work between the Ministry of Economy and Finance and the Financial Supervisory Commission, the potential contraction of industries due to the restructuring of the Ministry of Climate, Energy and Environment, and the fate of the supplementary investigative authority of the prosecution remain unresolved, raising doubts about whether the process will proceed smoothly.

Immediately, the People Power Party has declared its opposition to the government’s restructuring plan, calling it "an unrestrained biological experiment on the executive branch and constitutional order." Song Eonseok, floor leader of the People Power Party, stated at the Supreme Council meeting, "Not only do they plan to split the Prosecutors’ Office into two, but they also intend to strip it of its supplementary investigative authority." He further argued, "If the Ministry of the Interior and Safety comes to control the police, the National Investigation Headquarters, and now the Serious Crimes Investigation Agency, it will become a monstrous super-ministry." Song also criticized, "They say they will transfer the construction and operation of nuclear power plants to the Ministry of Environment. This is phase two of the nuclear phase-out policy." He added, "Turning the Ministry of Gender Equality and Family into the Ministry of Gender Equality and Family including sexual minorities is a direct challenge to the constitutional order."

Jeong Cheongrae, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 8th. 2025.9.8 Photo by Kim Hyunmin

The People Power Party is expected to delay the Democratic Party’s legislative process as much as possible while waging a public opinion campaign. The bill to establish the Financial Services Commission, which is necessary for the reform of the financial supervisory system, falls under the jurisdiction of the Political Affairs Committee, whose chair is Yoon Hanhong of the People Power Party. If Chairman Yoon delays the review schedule, the Democratic Party could push the bill through using the fast-track process. In that case, the bill would have to undergo committee review (180 days), review by the Legislation and Judiciary Committee (90 days), and be referred to the plenary session (60 days), potentially delaying implementation by up to a year.

The adjustment of National Assembly standing committees resulting from the government restructuring will also require discussions between the ruling and opposition parties. Han Jeongae, policy committee chair of the Democratic Party, said on September 5, "When amending the National Assembly Act, there is ample room to discuss adjustments to the existing standing committees." For example, if the Ministry of Planning and Budget is established under the Prime Minister’s Office, the budget previously handled by the Planning and Finance Committee may be transferred to the Political Affairs Committee. In addition, further discussions will be needed between the Environment and Labor Committee and the Trade, Industry, Energy, SMEs and Startups Committee regarding the transfer of certain energy sectors from the Ministry of Trade, Industry and Energy to the Ministry of Climate, Energy and Environment.

Park Sunghoon, chief spokesperson for the People Power Party, told reporters that day, "The allocation of standing committees is an important issue, but there has been no consultation on this matter." He continued, "Given the current situation, it is highly likely that the Democratic Party will unilaterally raise the issue of standing committees again. The Democratic Party has already monopolized the chairmanship of the Legislation and Judiciary Committee, which should belong to our party, and we intend to respond to this issue accordingly."