Ministries reverse long-held positions at President's behest

By Choi Sung-jin

“You can hardly use your air-conditioners 12 hours a day and avoid high power charges.”

Assistant Minister of Trade, Industry and Energy Chae Hee-bong said so last Tuesday, in response to mounting calls for an easing of the ministry’s steep progressive power rates for household consumers. “We should stick to the current system to prevent blackouts during peak demand season,” he said.

Yet Chae’s declaration lasted fewer than 48 hours.

President Park Geun-hye and leaders of the ruling Saenuri Party agreed to lower power rates for family users during a Cheong Wa Dae lunch Thursday. The presidential office and governing party made the decision without officials in charge of the matter. Later in the day, the ministry hurriedly announced a plan for a new progressive rating system.

It was only the latest case of government ministries reversing their long-held policies and positions by a word from Cheong Wa Dae or the ruling party.

Experts say the new form of “bureaucratic immobility” -- which shuts their ears to public opinions while watching the face of the President and her aides -- would even deteriorate in the run-up to presidential elections and toward the end of the incumbent’s term.

In another example, the Fair Trade Commission had long stuck to its position that business groups with assets of 5 trillion won ($4.5 billion) or more should be subject to various conglomerate-related regulations, such as limitations on intra-group equity holdings and bans on private contracts among sister companies.

“We have neither examined nor decided on raising the current criteria,” the antitrust watchdog said on April 3. “This is not a matter that can be hastily changed as 10 different government agencies and 38 related laws are involved.”

At a meeting between President Park and editorial chiefs of newspapers and broadcasters on April 26, however, the chief executive said: “The designation of large business groups should be modified, reflecting changing times.” It was not long before the commission upgraded the standard to 10 trillion won, setting free several midsize chaebol from its tight controls.

Some long-disputed projects because of environmental concerns also progressed swiftly after a presidential remark. The National Park Committee turned down a plan to build another cable car at Mt. Seorak in Gangwon in 2012 and 2013. In 2014, President Park expressed her hope that construction will “start as early as possible for completion by the opening of the 2018 PyeongChang Winter Olympics.” Construction is now under way.

There were some positive aspects of the presidential intervention in changing the unreasonable power rate system and FTC’s time-honored standards for large business groups. But in most other cases Park’s unwarranted interference has complicated matters. One case is the decision on the location of the U.S. missile defense system.

On July 13, the Defense Ministry announced Seongju, North Gyeongsang Province, as the site for the Thermal High-Altitude Area Defense battery despite vehement protests from residents, saying the radar system has little harmful effects on people. At another meeting between the President and ruling party lawmakers representing the province, Park hinted at the possibility of seeking another location, however. The Defense Ministry immediately backed up, beginning to find a third site.

In the past, bureaucrats were criticized for putting off important decisions to avoid responsibility later. Now, officials are bent on making or changing policies to suit the taste of the top leader rather than considering the standpoints of their end consumers -- people -- the experts said.

“The frequent reversals of government policies by Cheong Wa Dae will lead to administrative inconsistency, which in turn results in popular distrust in their government,” said Professor Kim Hyung-joon of Kyung Hee University. “When the predictability of government policies falls, it will cause additional social costs, giving additional burdens to taxpayers.”

If the President and Cheong Wa Dae continue to meddle in the administration’s domain to suit voters’ demands in an election year, the vicious circle of Presidential interference and bureaucratic immobility would deteriorate, they said.

“As always, the chief executive holds the key,” said Professor Yoon Tae-beom of Korea National Open University. “President Park must suppress the temptation to make meticulous interventions but disperse the authority concentrated in her and Cheong Wa Dae and give more power and responsibility to Cabinet ministers.”