The Ministry of Economy and Finance was split into the Ministry of Finance and Economy (MOFE) and the Ministry of Planning and Budget after 18 years, dividing the government's economic policy structure again. The aim is to clarify roles by dividing economic policy and budget authority that had been concentrated in one ministry.
The government said on the 2nd that MOFE and the Ministry of Planning and Budget were officially launched. It is the first organizational overhaul since MOFE and the Ministry of Planning and Budget were merged to launch the Ministry of Economy and Finance (MOEF) in 2008. Through this split, the government plans to adjust economic policy more nimbly and design finance and budgets in line with a mid- to long-term national strategy.
The reorganization aligns with President Lee Jae-myung's criticism of the "single MOEF system," which he has long raised as an issue. Lee has publicly said that MOEF, holding both economic policy and budget authority, "acts like a king of the executive branch."
◇ MOFE, an "economic control tower" overseeing the economy, prices, and exchange rates
MOFE will serve as the central axis of economic policy, overseeing macroeconomic policy and financial and external economic policy. Functions for responding to the economy and managing prices and exchange rates, taxation and international finance, the treasury, and the management of public institutions have all been transferred to MOFE. Vice Premier Koo Yun-cheol will head MOFE.
The organization has been formed with two vice ministers and six directors-general. The innovation growth office and the treasury office have been newly established in the existing Ministry of Economy and Finance (MOEF) structure. The innovation growth office will handle strategic industries, responses to changes in the trade environment, and support for strategic investment. The artificial intelligence economy division and the green transition economy division, among others, were also placed under it.
The treasury office will encompass not only Government Bonds management but also state-owned assets and procurement policy. The intent is to link fiscal execution and growth strategy more closely. Under the Deputy Minister's office, a new unit has been set up to handle livelihood issues such as prices and employment, and a department dedicated to estimating taxes has also been created to address recurring disputes over revenue forecasts.
◇ Ministry of Planning and Budget to design mid- to long-term national strategy beyond the budget
The Ministry of Planning and Budget will be solely responsible for designing mid- to long-term national strategy alongside budget formulation. The organization will launch with one vice minister and three directors-general, with plans to position itself not as a ministry confined to annual budget formulation but as one that draws both policy direction and the broad framework of fiscal management.
The first-tier organizations will consist of the budget office, the planning and coordination office, and the future strategy planning office. Among them, the future strategy planning office is an expanded and reorganized version of MOEF's existing future-related units and will comprehensively address growth strategy, demographic changes, and the sustainability of public finances. The intent is to link budget formulation and policy planning, rather than separating them, in line with a mid- to long-term national strategy.
A dedicated unit to review the performance of fiscal programs will also be newly established within the Ministry of Planning and Budget. Major fiscal programs will be evaluated, with low-impact or overlapping programs restructured and programs with proven performance maintained or expanded.
Im Gi-geun, the current second Vice Minister of the Ministry of Economy and Finance (MOEF), who has overseen budget operations, is expected to be appointed as vice minister of the Ministry of Planning and Budget. Former People Power Party lawmaker Lee Hye-hoon has been nominated as the first Minister and is preparing for a confirmation hearing. Lee has consistently emphasized the need for fiscal soundness and restructuring of expenditure during her time in the National Assembly.
MOFE and the Ministry of Planning and Budget will also be housed separately. The Ministry of Finance and Economy will remain in the Jungang-dong offices previously used by the Ministry of Economy and Finance, while the Ministry of Planning and Budget plans to move to Building 5 of the Government Sejong Complex. In the early stages after launch, existing spaces and temporary offices will be used in parallel, and the transfer will proceed in phases.