South Korea is poised to undergo a major government reorganization, with President Lee Jae Myung's office currently reviewing the State Affairs Planning Committee's proposals, one of which could strip the Ministry of Economy and Finance of its power to set out the government's annual spending plans.
The presidential office "received the State Affairs Planning Committee's government reorganization proposal on Thursday, and the proposal is currently undergoing an internal review," Lee's spokesperson Kang Yu-jung told reporters Monday, adding that no decision has been made on how the reorganization would proceed. Later on Monday, Woo Sang-ho, senior presidential secretary for political affairs, clarified that while such proposals are being screened at the top office, they were not yet being reported to President Lee.
This came amid media speculation that the committee, dedicated to creating a policy blueprint for the Lee administration, had submitted the proposal, with all eyes on whether the committee proposed to split the Ministry of Economy and Finance into two entities to curtail its power.
Lee had pledged during his presidential campaign that if elected, he would detach the budgeting function from the Finance Ministry and transfer it to a newly created government body under the prime minister's office.
The ministry's economy-related policymaking function would remain intact, and it would likely be given the financial policymaking functions currently held by the Financial Services Commission.
In May, about a week before Lee won the election, he stressed a need to "break (the Finance Ministry's) monopoly." The Finance Ministry has held the functions of both policy planning and budgeting since 2008, when budgeting powers were transferred to it under former conservative President Lee Myung-bak.
Moreover, Lee promised to carry out a reform of the prosecution by dividing the prosecutors' office into two so that a single agency does not hold the power to both investigate cases and indict suspects. Lee also said he envisioned a new ministry dedicated to climate change and renewable energy, and greater empowerment of the Ministry of Gender Equality.
Meanwhile, the Lee administration is reportedly considering having the newly appointed science minister double as deputy prime minister.
Aside from the reorganization proposal from the State Affairs Planning Committee, Lee's office was reportedly considering eliminating the post of special presidential adviser for foreign affairs and national security, a role revived under the Yoon Suk Yeol administration in 2024. Then-National Security Adviser Chang Ho-jin has served in the special advisory role since August.
Kang, at the presidential office, said she could not immediately confirm whether the office was considering the internal restructuring.
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