The government organization law that includes the abolition of the Prosecutors' Office and the reorganization of the Ministry of Economy and Finance is expected to be processed in the National Assembly on the 25th. Han Jeong-ae, chairperson of the Democratic Party of Korea's policy committee, held a press briefing on the 5th and said, "The abolition of the Prosecutors' Office and the establishment of the Public Prosecution Office and the Serious Crimes Investigation Agency will be postponed for about a year and will start operating from September next year," adding, "I expect the separation of the Ministry of Economy and Finance into the Planning and Budget Office and the Ministry of Finance and Economy to be implemented around January 2nd next year."
The Democratic Party plans to hold a high-level party-government meeting on the 7th to finalize the reorganization plan of the government organization law. Chairperson Han revealed the discussions held thus far during the press briefing that day. She explained, "This high-level party-government meeting is expected to include agenda items related to the government organization reorganization plan, labor safety measures, and disaster response measures."
The government organization reorganization plan to be announced this time includes the abolition of the Prosecutors' Office, the establishment of the Public Prosecution Office and Serious Crimes Investigation Agency, the reorganization of the Ministry of Economy and Finance and the Financial Services Commission, and the establishment of the Ministry of Climate and Energy. Chairperson Han stated, "The reorganization of the government organization reflects the will of the new government and the president on how they want to work," and added, "Once the final plan is out, the party and government will come together to organize and seek understanding."
First, the Ministry of Economy and Finance will be split into the Planning and Budget Office and the Ministry of Finance and Economy. Chairperson Han explained, "The separation of the Ministry of Economy and Finance is possible only through the reorganization of the government organization law, so I expect it to be implemented from January 2nd next year."
The reorganization plans for the Financial Services Commission and the Financial Supervisory Service are expected to take a bit more time. Chairperson Han remarked, "Domestic finance will be transferred to the Ministry of Finance and Economy, and there will be changes, such as the creation of a Financial Supervisory Commission that primarily handles the existing work of the Financial Supervisory Service," and noted that, "The law for establishing the Financial Supervisory Commission needs to be processed together with the government organization law; if negotiations with the opposition party go well in the Political Affairs Committee, we can submit the reorganization plan for the government organization law on September 25th, otherwise, we have no choice but to divide the process into two sessions."
Regarding the establishment of the Ministry of Climate and Energy, she said, "The responsibilities related to nuclear power exports will remain with the Ministry of Industry," adding, "Korea Hydro & Nuclear Power (KHNP) is responsible for domestic nuclear power operations, which is also related to energy, so it seems like there are issues to discuss." This implies that it has not yet been decided whether KHNP will be placed under the Ministry of Industry or the Ministry of Climate and Energy. Chairperson Han stated, "During the process of organizing the government organization law, we did not discuss any specific public institutions," and added, "Decisions will be made in subsequent measures."
Regarding the abolition of the Prosecutors' Office, she said, "The abolition of the Prosecutors' Office and the establishment of the Public Prosecution Office and Serious Crimes Investigation Agency are included in the government organization reorganization plan," adding, "I think the implementation should be postponed for about a year." She remarked, "It would be good if the sorting of whether human resources will go to the Serious Crimes Investigation Agency or the Public Prosecution Office is completed within the regular National Assembly, and it seems correct to organize the contents of the Serious Crimes Investigation Agency and the Public Prosecution Office based on the public's expectations."
The Democratic Party has also expressed its position on recent issues related to economic policy. Regarding stablecoins, she stated, "We are organizing a task force on virtual assets at the party level, and once it is formed, we will announce the main topics for discussion."
Regarding the criteria for capital gains tax on major shareholders, she noted, "The party has adequately gathered opinions and conveyed them, and since the government is monitoring and reviewing various matters, it may not be ideal to overly pressure the government," adding, "I think the government will organize the relevant contents at an appropriate time."
Regarding follow-up measures to the Yellow Envelope Act, she stated, "The Ministry of Labor is working on the manual guidelines, and once we have a degree of clarity, we will communicate sufficiently with the business community to avoid misunderstandings."