Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
New finance minister faces tall task of revitalizing economy
Choi Sang-mok, former senior presidential secretary for economic affairs, walks into the press breifing room at the presidential office in Seoul's Yongsan District after he was named by President Yoon Suk Yeol as the new deputy prime minister and minister of economy and finance, Monday. Yonhap
By Yi Whan-woo
President Yoon Suk Yeol named Choi Sang-mok, his former senior secretary for economic affairs, to head the Ministry of Economy and Finance, Monday, in a Cabinet reshuffle ahead of next year’s parliamentary elections.
Choi will need parliamentary confirmation for official appointment. If successful, he will replace incumbent Choo Kyung-ho, who is anticipated to depart to run in the elections scheduled for April 2024.
Economic revitalization is a key agenda item in the Yoon administration’s bid for the ruling party to gain control of the opposition-dominated National Assembly.
Choi’s nomination is part of a second reshuffle of the economic policy team after Yoon took power in May 2022.
Last week, Yoon appointed Park Chun-sup, a former member of the Bank of Korea’s (BOK) rate-setting board, to succeed Choi as the new senior presidential secretary for economic affairs.
Choi and Park will coordinate economic issues with BOK Governor Rhee Chang-yong, Financial Services Commission (FSC) Chairman Kim Joo-hyun and Financial Supervisory Service (FSS) Governor Lee Bok-hyun – all appointed by Yoon in his first year of office.
A former career financial bureaucrat, Choi, 60, was touted as the most suitable candidate to replace Choo as the next finance minister. Choo also serves as the deputy prime minister.
He will be tasked with handling accelerated economic slowdown and persistently high inflation. Also part of the equation are sluggish exports and weakened private spending, which form the twin engines of economic growth.
He will also need to tackle shortages in tax revenue, which is anticipated to be as much as 60 trillion won ($46 billion) this year, while upholding Yoon’s belt-tightening policy under the market-driven economic vision.
According to financial sources, whether a corporate tax cut will help the economy will become apparent next year after the government pushes ahead with the sweeping tax reform.
The Yoon administration hopes that eased tax policy for firms will lead to increased profits and help boost the economy.
“Under the circumstances, the finance ministry has a high hope for Choi considering he is very familiar with how the ministry works,” a ministry official said, asking not to be named.
Choi joined the ministry in the mid-1980s, and was considered an ace among those who passed the rigorous civil service exam in the same year.
Choi served in key positions as he climbed the ladder, including in macro-economic, financial and security policies, outpacing his colleagues through promotion.
He was the secretary for economy and finance for former, ousted President Park Geun-hye, before becoming the first vice finance minister in her final two years from 2016 to 2017.
For Yoon, he led the first economic subcommittee under the presidential transition committee, tasked with setting the macroeconomic and financial agendas.