Vice Minister Bows His Head, but No Way to Comfort Demoralized Ministry of Economy and Finance Staff [Gwan-ga in]

Ministry of Economy and Finance Holds Staff Meeting on July 29
Emphasis on Building a Policy Cooperation System with the Budget Office
Many Officials Considering Transfer to the Budget Office
Rising Concerns over the Lack of Policy Tools in

Lee Hyungil, First Vice Minister of the Ministry of Economy and Finance, bowed his head as he tried to comfort shocked staff members at the ministry. Vice Minister Lee stated, “The ministry’s overall coordination function is different from the coordination roles of other ministries, so I will strive to restore our sense of pride.” He also said that even if the Ministry of Planning and Budget is separated, a system will be established to ensure sufficient policy cooperation. However, following the withdrawal of the financial authorities’ organizational restructuring plan, the frustration among staff in the Ministry of Economy and Finance-who are now left only with the functions of economic policy coordination and tax policy-remains palpable.

On July 29, Vice Minister Lee held an internal meeting to listen to the concerns of staff members. He apologized for the backlash among employees regarding the ministry’s official message and said, “The overall coordination function remains an important role. I understand the profound sense of loss, and we will gather opinions on how to move forward.” After the withdrawal of the financial authorities’ restructuring plan was announced on July 25, the ministry’s official position was that it would “strengthen the overall coordination function for economic policy and maintain close communication with fiscal and financial authorities.” Employees, however, pointed out that with only the tax policy function remaining out of budget, finance, and tax, the ministry lacks the policy tools to truly strengthen its coordination role as the economic control tower.

During the meeting, staff repeatedly pointed out that there are no effective means to strengthen the ministry’s coordination function. One staff member said, “The Office of the Vice Minister, which is responsible for economic policy and policy coordination, already faces difficulties in cooperating with other ministries. Even if more staff are added, it will only become a less desirable department.” The staff member continued, “With neither budget nor finance functions, there are no tools for coordination, making our role indistinguishable from that of the Office for Government Policy Coordination.” Another employee emphasized, “The recent surge in voices calling for better communication is not just an expression of anger, but a realistic concern over the lack of effective means for policy coordination with other ministries.”

Vice Minister Lee promised to strengthen cooperation with the soon-to-be-separated Ministry of Planning and Budget. He said, “Even if the Ministry of Planning and Budget is separated, we will establish a system that allows for policy cooperation,” and added that unnecessary tasks would be streamlined during the reorganization process. Yoo Byungseo, Director General of the Budget Office, also sought to reassure staff, saying, “We will continue to cooperate as one family.”

However, the tense atmosphere within the ministry does not appear likely to subside anytime soon. One staff member said, “It feels as if our organization is being punished for something we did wrong, and it’s causing a sense of deprivation.” Currently, discussions are ongoing among the first and second vice minister lines regarding the division of departments and overseas postings following the organizational separation. With the Ministry of Economy and Finance’s status diminished by the loss of financial functions, there is a growing preference among staff for the Ministry of Planning and Budget. One employee confessed, “Even those who previously said they would remain in the Ministry of Economy and Finance now want to move to the Ministry of Planning and Budget. Even if you have a strong sense of purpose in your work at the Ministry of Economy and Finance, it’s hard not to worry when there are no means to realize it.”