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.
Finance minister nominee vows to execute Yoon's market-driven economic vision
Choo Kyung-ho, the head of the presidential transition committee's planning subcommittee, gets to work at the committee office in Samcheong-dong, Jongno District, Seoul, Friday. President-elect Yoon Suk-yeol tapped him as the deputy prime minister and minister of economy and finance, Sunday. Joint Press Corps
By Yi Whan-woo
By Yi Whan-woo
Choo Kyung-ho, the nominee for deputy prime minister and the minister of economy and finance, is likely to capitalize on his experience as a seasoned former economic policymaker to implement the market-driven economic policies prioritized by President-elect Yoon Suk-yeol.
Currently the head of the presidential transition committee's planning subcommittee, Choo has been regarded as an ideal figure to work as a team with the prime minister nominee, Han Duk-soo.
Han, whose expertise is in macroeconomics, trade and diplomacy, was nominated to the country's No. 2 post last week in Yoon's apparent bid to emphasize the importance of the economy.
Lee Chang-yang, the minister of trade, industry and energy nominee
“I am burdened by being a candidate who will be in charge of the nation's economic control tower and I will work closely with relevant officials as a team to tackle challenges,” Choo told reporters after his nomination, Sunday.
He said the private sector is “at the center of revitalizing the economy and improving financial health” and that supporting them to make investment and create jobs will be essential.
Yoon's policy direction stresses trying to overturn some of the major economic policies outgoing President Moon Jae-in has implemented, including on the national budget and real estate, as well as the universal minimum wage of 9,160 won per hour and the 52-hour workweek, among others.
Choo's role is seen as critical considering that he co-serves as a main opposition People Power Party (PPP) lawmaker, and may be able to use his relations with lawmakers of the ruling Democratic Party of Korea (DPK) to get bills that are necessary for Yoon's economic policy roadmap revised or approved.
Among the most urgent issues are financing 50 trillion won ($40.6 billion) through either budget restructuring or a supplementary budget as relief aid for small business owners and the self-employed hit by the pandemic.
Both Choo and Han are on the same page in getting the 50 trillion won, by arguing that various factors that safeguard and do not hurt the government's fiscal health should be comprehensively considered.
Their view is opposed to that of the Moon government which supplied the budget for relief aid by issuing massive amounts of bonds. The national debt accordingly has snowballed and is anticipated to reach up to 1,064 trillion won by the end of this year.
“I am aware of concerns over conflicting measures of tackling inflation on one hand and expanding fiscal policy. And I will try to figure out a balanced way that will minimize the negative impact on rising prices,” Choo said.
Concerning the Moon administration's failure to curb housing prices, he said it came up with “excessive regulations” that should be revised.
Choo had served as the deputy finance minister and later became the government policy coordination minister under the Prime Minister's Office during the 2013-17 Park Geun-hye administration.
He had been against increasing Korea's hourly minimum wage by 30 percent for two years from 2017, arguing that it required injecting public funding to fix related problems. He also proposed a bill aimed at delaying the 52-hour workweek cap for businesses with fewer than 50 employees that have trouble obeying the law.
In a book co-authored with retired economic policymakers, Choo argued that easing or scrapping various regulations would spur the growth of private companies that are burdened by business restrictions.
Meanwhile, Lee Chang-yang, the head of the presidential transition committee's planning subcommittee on business and industrial agendas, was tapped to be the minister of trade, industry and energy.
A business professor at KAIST, he was formerly a trade official and worked with Han. Lee will be tasked with discarding Moon's nuclear phase-out policy and helping the country become a global leader in the nuclear energy industry.