“Until last year, when North Korea launched missiles, we focused on responding to the financial and foreign exchange markets. Now, we are in a situation where we must take responsibility for defense and diplomacy, so the weight and range of our response have changed.”
This is the reality faced by the Ministry of Strategy and Finance, which has entered a presidential acting authority system. Deputy Prime Minister Choi Sang-mok, who has held the acting presidential role for over a month, is leading a ‘one-person, four roles’ system that oversees economic, diplomatic, defense, and administrative matters. The ministry, previously focused on economic policy, is now in a position where it must also handle security and diplomatic issues.
According to the government on the 7th, the Ministry of Strategy and Finance has recently formed a temporary task force (TF) to support the acting presidential duties and is receiving personnel from the Ministry of National Defense, Ministry of Foreign Affairs, Office for Government Policy Coordination, and the Korean National Police Agency. This is the first time a colonel from the Ministry of National Defense has been assigned to the Ministry of Strategy and Finance. The Ministry of Foreign Affairs is also contributing personnel to the TF to support the acting duties. The Korean National Police Agency has also dispatched senior officers to the Ministry of Strategy and Finance.
The Ministry of Strategy and Finance has a lack of experience in the fields of diplomacy, security, and defense. In this situation, there is a growing need to quickly process the surge in reports related to defense following the martial law situation. An official from the Ministry of Strategy and Finance noted, “A significant number of defense-related reports are classified as confidential, making it challenging for the Ministry to handle them independently,” and explained, “We are coordinating security schedules and reports with a colonel from the Ministry of National Defense as the contact point.”
The Ministry of Foreign Affairs is also joining the TF system, strengthening cooperation. In particular, it is collaborating with the protocol office of the Ministry of Foreign Affairs related to security and protocol tasks, playing a role in coordinating matters linked to international diplomacy. The Ministry of Strategy and Finance is operating the TF with minimal personnel to prevent disruption to existing duties while continuing inter-agency cooperation through concurrent appointments.
There are suggestions within the government that this TF system may be converted to a formal organization. The Ministry of the Interior and Safety recently announced legislation to establish and operate the presidential acting authority support group. If this support group is formalized, the acting president is expected to receive more systematic support in managing state affairs.
The Ministry of Strategy and Finance is also in a situation where it must respond quickly to changes in the global situation. Particularly, with the inauguration of former U.S. President Donald Trump's second administration, the possibility of changes in the global financial market and trade order is increasing. The ministry is communicating in real-time with a working delegation dispatched to Washington, D.C., closely monitoring the executive orders and policy directions that the Trump administration is expected to announce.
Amid these changes, the ministry faces the challenge of maintaining existing economic policy frameworks, such as financial and price stability and foreign exchange market responses. Concerns are rising that the prolonged political crisis could lead to uncertainties in economic policy; hence, the Ministry of Strategy and Finance is focusing on continuity in existing policies and economic stability.
Of course, the Ministry of Strategy and Finance is not the only one busy. Currently, government departments in Sejong are doing their best in their respective positions despite the political turmoil. While the ministry is striving to overcome complex crises, it could face bigger challenges if political uncertainty persists. It is hoped that the government regains stability as soon as possible and the economic and administrative systems normalize.