New budget office likely to launch leaderless next month

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks during a ministerial-level briefing to President Lee Jae Myung at Sejong Convention Center in Sejong City, Thursday. Yonhap

A new budget management office, which will oversee a 727.9 trillion won ($494.29 billion) budget next year, is likely to launch without a leader on Jan. 2, 2026, according to government officials Thursday.

Roughly translated as the Ministry of Planning and Budget, the office is taking over several key functions from the Ministry of Economy and Finance, including drafting and allocating the budget and establishing medium- to long-term national development strategies.

It will operate under the Prime Minister’s Secretariat, in line with President Lee Jae Myung’s reform plan, following criticism that the Ministry of Economy and Finance held “excessive power” over other ministries through its budgetary authority.

This marks the first time since 2008 that a government body tasked with managing the budget will be formed separately from the finance ministry.

However, the decision on who will lead the ministry has not yet been made, raising concerns about whether it can get off to a smooth start while managing heavy responsibilities.

“Not a single candidate has been nominated with less than a month before its launch, fueling the possibility that it may go without a leader,” a government official said on condition of anonymity.

The official noted that the presidential office has remained silent on potential candidates, although some high-profile names have been circulated.

Among them are Second Vice Minister of Economy and Finance Lim Ki-keun, Presidential Fiscal Planning Advisor Ryu Deok-hyun and Rep. Ahn Do-geol of the ruling Democratic Party of Korea.

Another official, also speaking anonymously, described the concern as “grave,” noting that the new ministry faces the dual challenge of maintaining an expansionary fiscal stance while ensuring fiscal soundness.

The official referred to next year’s budget of 727.9 trillion won, an 8.1 percent increase from this year, aimed at spurring economic growth.

This policy is likely to be accompanied by rapid growth in national debt, which is expected to exceed 500 trillion won total during Lee’s five-year term, ending June 2030.

Officials noted that even if a nomination is made, there is a high likelihood that the position will remain vacant at the ministry’s launch due to the confirmation process.

Once a nomination request is submitted to the National Assembly, it must complete the confirmation process within 20 days.