On the 21st, Deputy Prime Minister and Minister of Economy and Finance Gu Yun-cheol held his inauguration ceremony and officially began his duties, drawing attention to the senior personnel changes in the Ministry of Economy and Finance.
As the former deputy prime minister, he finds himself in a situation where he must appoint a team that will work in coordination with him by placing the right people in the right positions. The Ministry of Economy and Finance is also seeking personnel renewal through changes, just like other organizations. Directors General (Level 2) will become Deputy Ministers (Level 1), and Directors (Level 3) will be upgraded to Directors General, alleviating personnel bottlenecks and boosting internal morale.
For this process to proceed smoothly, the movements of Level 1 public officials must first be determined. Level 1 public officials who have reached the top as non-political public officials have three options. The first is to switch to another position of the same rank. The second is to leave for an external role, and the last is to retire and seek other opportunities.
Of course, there is also the path to be promoted to a Vice Minister, which is a political public official, but this is not within their choice.
Within the Ministry of Economy and Finance, there are a total of seven Level 1 positions. This includes three Deputy Ministers (Planning and Coordination, Taxation, and Budget), along with three Vice Ministers and a Spokesperson.
Currently, all Level 1 officials except Park Geum-cheol, who was appointed as the Director of Taxation, and Yoo Byung-seo, the Director of Budget, are being discussed as candidates for personnel changes. This includes Vice Minister Yoon In-dae, International Economic Manager Choi Ji-young, Financial Management Manager Ahn Sang-yeol, and Deputy Minister for Planning and Coordination Kim Jin-myung, among others.
There are also speculations within the Ministry of Economy and Finance that Director Yoo Byung-seo could be a candidate for change. His previous position as the Director of Budget in the Yoon Seok-yeol administration was said to not align with the current government's inclination toward expansionary fiscal policy.
However, since President Lee Jae-myung stated at a press conference on the 3rd day of his inauguration that 'career public officials have an obligation to follow the commanders who represent the people's sovereignty. This is not only a legal obligation but they have also been trained to do so,' there is a prospect that many will be retained.
For the other five, excluding the Directors of Taxation and Budget, personnel changes are likely. Some may maintain their ranks while just changing positions. For instance, Kang Young-kyu, the Spokesperson who previously held the positions of Financial Soundness Review Officer and Public Policy Director, is being mentioned as the next Financial Management Officer.
Positions outside the ministry that are mentioned include the Director of the International Monetary Fund (IMF), the Administrator of the Public Procurement Service, the Administrator of the Statistics Korea, the Senior Economic Secretary at the Presidential Office, the Director of the International Financial Center, and the President of the Export-Import Bank of Korea. These posts have traditionally been held by individuals from the Ministry of Economy and Finance.
However, there are also observations that it may be difficult for such practices to continue under the Lee Jae-myung administration. A recent example is the appointment of Lee Myung-gu, a former Vice Administrator of the Customs Service, who was promoted internally to become the new Administrator of the Customs Service.
There are evaluations that show the trend of 'utilizing internal personnel' within and outside the government. It has been five years and seven months since a non-Ministry of Economy and Finance official was appointed as the Administrator of the Customs Service, following former Administrator Noh Seok-hwan from the Moon Jae-in administration.
The appointment of Minister of the Office for Government Policy Coordination Yoon Chang-ryeol, classified as coming from the Prime Minister's Office, is interpreted in a similar context. Yoon had risen to the position of First Deputy Minister of the Office for Government Policy Coordination as a public official from the Prime Minister's Office, then served as the Director of the LG Global Strategy Development Institute before being appointed as Minister.
The appointments of Minister of the Office for Government Policy Coordination Yoon Chang-ryeol and Administrator Lee Myung-gu showcase that non-Ministry of Economy and Finance officials may be appointed to positions such as Administrators of the Public Procurement Service, Administrator of Statistics Korea, and President of the Export-Import Bank of Korea. Within external offices, there appears to be a subtle expectation for internal promotions. An official from one external office remarked, "There are no significant complaints internally since the former Administrators from the Ministry of Economy and Finance managed the organization well," while noting that "expectations for an internal Administrator have increased." In the case of Statistics Korea, there are discussions about the possibility of appointing someone from academia as the head after its elevation to a departmental level.
Since the Lee Jae-myung administration, the discussion of 'neglecting the Ministry of Economy and Finance' has emerged frequently. President Lee criticized the Ministry of Economy and Finance for 'acting like a king' since he was a candidate. This perception could lead to government control over the Ministry of Economy and Finance through appointments. The discussions about organizational reforms such as separating the budget functions of the Ministry of Economy and Finance are also interpreted as an extension of this trend.
Within the Ministry of Economy and Finance, there is an atmosphere of hope that even the position of Senior Economic Secretary (formerly the Economic and Financial Secretary) under the President's Office will be allocated to them. This position serves as a key role in bridging the President's Office and the Ministry of Economy and Finance. Previously, individuals from the Deputy Minister's office who were responsible for macroeconomic policy, such as Deputy Ministers or Directors of Economic Policy, were primarily dispatched to this role.
In the government arena, there have been rumors that Lee Hyung-joo, a standing commissioner of the Financial Services Commission, has essentially been designated, but as of now, no official personnel announcement has been made about a month later. This leaves the Ministry of Economy and Finance holding onto hope that 'we still do not know.'
There is a saying in organizational management that 'personnel matters are everything.' New faces and proper placements can become opportunities that foster positive changes in organizations. Conversely, if personnel issues get tangled, internal morale is bound to plummet. An official from the Ministry of Economy and Finance stated, "Just because there are no positions for Level 1 officials doesn't mean they will be simply let go. However, if promotion paths are blocked, dissatisfaction will accumulate from the bottom up," adding, "There are even talks about a potential rebellion from the Directors General."
I believe the newly appointed Deputy Prime Minister faces significant challenges as the economic leader. Along with pressing issues such as inflation management and tariff negotiations, it will be observed whether he can inject vitality into the Ministry of Economy and Finance through personnel decisions that consider the balance and dynamism of the ministry.