[Exclusive] Establishment of Planning and Budget Office, Financial Supervisory Commission... Decision Not to Establish Population Ministry

Outline of the 'Major Government Restructuring' Revealed

Strengthening the Organization and Authority of the Low Birth Rate and Aging Society Committee

Trade Functions of the Ministry of Trade, Industry and Energy to Remain

The Ministry of Strategy and Finance will be split into the Ministry of Finance and Economy, responsible for economic and domestic and international financial policy, and the Ministry of Planning and Budget, which will oversee budget affairs. The financial supervisory organizations of the Financial Services Commission and the Financial Supervisory Service will be integrated, and a newly named Financial Supervisory Commission will be launched. The energy functions of the Ministry of Trade, Industry and Energy will be transferred to the newly established Ministry of Climate and Energy, but the trade functions will remain.

According to the ruling party and government on the 3rd, the National Planning Commission recently reported this government organization restructuring plan to the Presidential Office. The National Planning Commission and the Presidential Office plan to finalize the restructuring plan after hearing opinions from related ministries and experts.

According to the plan, the Ministry of Strategy and Finance will be divided into the Ministry of Planning and Budget and the Ministry of Finance and Economy, while the financial policy functions of the Financial Services Commission will be merged into the Ministry of Finance and Economy. By creating a separate organization to handle the budget and integrating domestic and international financial policy into the Ministry of Finance and Economy, a new operational structure will be established. The Energy Office of the Ministry of Trade, Industry and Energy will be merged into the Ministry of Environment and reorganized as the Ministry of Climate and Energy. The investigation and prosecution functions of the prosecution will also be separated. The newly established Public Prosecution Office will be responsible for prosecution, and the Serious Crime Investigation Office will oversee investigations.

The financial supervisory organizations of the Financial Services Commission and the Financial Supervisory Service will be consolidated into the Financial Supervisory Commission. The Financial Supervisory Service will be placed under the Financial Supervisory Commission, and it is likely that the positions of chairman of the Financial Supervisory Commission and head of the Financial Supervisory Service will be held concurrently. There are multiple proposals being considered regarding the separation, authority, and functions of the Financial Consumer Agency, as opinions on its separation are divided internally. According to a ruling party official, "Although a member of the first economics division strongly insisted on separating the Financial Consumer Agency, there was considerable opposition to this. Therefore, multiple proposals have been prepared regarding the separation, authority, and functions of the Financial Consumer Agency."

It has been decided to leave the trade functions of the Ministry of Trade, Industry and Energy as is. Initially, the Organization Restructuring Task Force (TF) under the National Planning Commission had discussed ideas such as transferring the trade functions to the Ministry of Foreign Affairs or establishing an independent organization similar to the United States Trade Representative (USTR). However, it was determined that reorganizing in the midst of trade negotiations with the United States could have major side effects.

The Yoon Suk-yeol government ultimately decided not to establish a Population Ministry. Instead, it plans to change the name of the Low Birth Rate and Aging Society Committee and strengthen its organization and authority. Upgrading Statistics Korea to the Statistics Office was also included in the restructuring plan. According to a National Planning Commission official, "Although the upgrade to the Statistics Office was not included in the presidential campaign pledges, it is an important plan for efficient government administration." This restructuring plan is reported to be under consideration from a mid- to long-term perspective, rather than being implemented immediately.

Nam Jung-min / Choi Hyung-chang / Seo Hyung-gyo, reporters peux@hankyung.com