Is foreign ministry trying to regain control of trade from industry ministry?
Foreign Minister Cho Tae-yul, left, shakes hands with Federation of Korean Industries (FKI) Chairman Ryu Jin at the federation's headquarters in Seoul, Monday. Courtesy of FKI
A series of meetings by the newly-appointed foreign minister with the heads of business associations have sparked speculation that the ministry may have renewed efforts to regain control over international trade matters from the Ministry of Trade, Industry, and Energy, according to industry officials and diplomatic experts, Monday.
Cho Tae-yul, a career diplomat inaugurated as the foreign minister on Jan. 12, met Federation of Korean Industries Chairman Ryu Jin and Vice Chairman Kim Chang-beom, who was also a career diplomat, at the business lobby group’s headquarters in Seoul, Monday.
Last Friday, Cho participated in a series of New Year meetings with venture company representatives along with SMEs and Startups Minister Oh Young-ju.
The foreign ministry explained that Cho is well aware of the importance of the ministry’s role as an “economic ministry” in the current era of structural transformation, which involves the integration of economic and national security matters.
Cho plans to meet with Korea Chamber of Commerce and Industry Chairman Chey Tae-won, Wednesday, and is said to be considering another meeting with Korea International Trade Association Chairman Koo Ja-yeol.
“The new minister has built his expertise in trade affairs, and the ministry is eager to get back its authority over international trade,” said Cho Sung-ryul, a professor at the University of North Korean Studies, who previously served as the consul general in Osaka. “Given that he has a close relationship with President Yoon Suk Yeol, he appears to be trying to achieve the goal at this moment when the ministry has ample power.”
When the transition committee for the Yoon administration was launched in March 2022, the foreign ministry tried to take back the Office of the Minister for Trade from the industry ministry, although the attempt ended in failure. Then Foreign Minister nominee Park Jin and then Industry Minister nominee Lee Chang-yang were in a tug of war over which institution would have the authority to promote trade.
Trade affairs were initially placed under the jurisdiction of the foreign ministry. But the Park Geun-hye administration transferred the function to the industry ministry in 2013. Although former President Moon Jae-in tried to return the authority to the foreign ministry in 2017, the effort fell through.
Sources familiar with this issue expect the foreign ministry to ramp up efforts to regain the authority over trade, if the Government Organization Act is revised after the April general elections. They noted that the foreign ministry convinced the president following his frequent overseas visits.
In contrast, the industry ministry is perceived to be losing influence, particularly as the positions of the industry minister and trade minister have been filled by former professors who are seen as prioritizing self-promotion and personal network building rather than safeguarding the interests of the trade office.
Industry officials, however, have opposed the transfer of trade functions to the foreign ministry, emphasizing that industry and trade are inseparable in Korea, which relies heavily on manufacturing and exports. A survey by the Korea Industry Alliance Forum showed in 2022 that nearly nine out of 10 exporters said trade functions should be retained by the industry ministry.
Concerning the issue, the foreign ministry said it seeks to remove walls between ministries, so that they can maximize each of their expertise and work together for the national interest.
“We will cooperate with the industry ministry in charge of trade affairs and relevant industry officials to pursue the integration of economic and national security matters,” the foreign ministry said.