Yoon gearing up for leadership reshuffle of financial authorities

President-elect Yoon Suk-yeol, left, shakes hands with a businessman during a New Year's event for small- and medium-sized enterprises in Seoul, Jan. 5. Joint Press Corps-Yonhap

By Lee Min-hyung

President-elect Yoon Suk-yeol is gearing up to reshuffle the leadership of certain financial authorities ahead of his inauguration slated for May.

At the center of public attention is who will replace incumbent Finance Minister Hong Nam-ki, due to the position's unmatched importance to the Korean economy.

The candidates for the top financial post include former Vice Minister Choi Sang-mok and Rep. Choo Kyung-ho of the People Power Party, who also served as vice finance minister for 16 months from March 2013.

Seoul National University Economics Professor Kim So-young is also being mentioned as a candidate, but some critics argue that he is more likely to take on a leadership role in another state-run financial authority.

Yoon's presidential transition team announced Tuesday that Choi will lead its economic committee, with Kim taking part as one of its key members.

As Bank of Korea (BOK) Governor Lee Ju-yeol ends his tenure in March, chances are that Kim will lead the central bank for four years. President Moon Jae-in will soon hold talks with Yoon to nominate the next BOK chief.

However, a possible leadership vacuum is inevitable as the nominee will need to go through a National Assembly confirmation hearing first.

Korea Development Bank Chairman Lee Dong-gull is also widely expected to step down after the incoming Yoon administration takes power. Lee took office as the leader of the state-run lender back in September 2017 and succeeded in extending his tenure in 2020 for another three years until September 2023.

Yet, given that Lee has expressed his wish to step down from the position, a widespread view is that Yoon will replace him with someone else. Lee is one of the main financial experts on the side of the Moon administration and the ruling party.

All eyes are also on whether the incoming administration will push for a leadership reshuffle of the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS). As it has been only less than a year since FSC Chairman Koh Seung-beom and FSS Governor Jeong Eun-bo took office in August 2021, there stands a possibility of them continuing to remain in their positions for some time after Yoon is inaugurated.

“Given that the economy is faced with multiple risks factors ― such as looming rate hikes by the U.S. Fed and the unceasing spread of COVID-19 ― the incoming administration may not be able to carry out abrupt leadership reshuffles of the FSC and FSS, but both leaders will be under mounting political pressure after Yoon takes office,” a financial industry analyst said.