By Yoon Ja-young
Staff Reporter
President Lee Myung-bak's economic team has numerous tasks ahead. His lineup shows his determination to attain strong growth through tax cuts and deregulation, and to create jobs by encouraging corporate investment.
Lee, who promised to realize annual 7 percent economic growth and to push per capita income to $40,000 within 10 years to make Korea the world's seventh largest economy in his 7-4-7 pledge, won a landslide victory in the election when over half of voters picked the economy as top priority.
The international oil price hike and rising crop prices are adding to global inflation, and concern over a recession in the United States is looming. The economic team lowered down the 7 percent growth pledge to 6 percent for this year, but even that isn't easy in these circumstances, economists point out.
The economic team is likely to drive for growth anyway.
The leader of the team is Kang Man-soo, nominated to lead the Ministry of Strategic Planning and Finance.
The former top government official, who served as vice finance and economy minister when the country was hit by the Asian financial crisis, has been Lee's main policy coordinator. Analysts estimate Kang to show strong leadership since he is already familiar with works in the ministry.
Despite a government career, Kang is rather a strong believer in the market. He led a series of tax cuts, in the belief that a low tax rate and simple tax system are necessary to lure foreign investment.
The main opposition United Democratic Party, however, criticized Lee's lineup of ministers as a ``perfect return to the past." They said the economic team (including Kang) reminds people of the IMF bankruptcy cabinet.
Kwak Seung-jun, nominated as the senior secretary for national policy planning, is to lead the team with Kang. An economics professor at Korea University, Kwak is known as the designer of ``MBnomics.'' He will be in charge of the grand design of the economy, including deregulation and privatization.
President Lee Myung-bak is known to have deep trust in Kwak, but some show concern over possible conflict between Kwak and Kang, as the two top have shown different ideas on some issues, including tax cuts. While Kang is a strong believer in tax cuts, Kwak, from academia, is rather cautious on the issue.
Lee Youn-ho, nominated as the Minister of Knowledge-Based Economy, will be the coordinator between the government and businesses.
The business circle expects Lee, who served as the vice president of the Federation of Korean Industries (FKI), a chaebol mouthpiece, will help smooth the relation between them and the government. Lee, who has emphasized deregulation, is likely to work in favor of businesses.
Kim Choong-soo, nominated as senior secretary for economic affairs, is likely to be a faithful messenger between the President and the government.
President Lee, however, will always make the final decision, analysts estimate. Lee, who put economy ahead of anything else as a successful former CEO, has shown the will to determine economic issues himself.