The opposition is proposing a plan to divide the Ministry of Economy and Finance into two departments responsible for finance and budget, respectively. The intention is to disperse the excessive power concentrated in the ministry and weaken its influence. However, the Ministry has not officially commented on this matter.
Within the Ministry, there are concerns that policy efficiency may decline, yet a sentiment of subtle support for the proposal can be sensed in certain quarters. This is because it is expected that the chronic personnel backlog problem might be alleviated to some extent if this plan is realized.
According to the National Assembly on the 16th, the Democratic Party is considering including a plan to divide the Ministry into the "Ministry of Finance and Economy" and the "Budget Office" in its presidential election pledge, keeping in mind the possibility of an early election. It is reported that the proposal to change the Ministry to the Ministry of Finance and Economy and to establish a separate Budget Office under the Prime Minister’s Office is gaining traction.
The Ministry of Finance and Economy and the Budget Office were the predecessors of the Ministry of Economy and Finance, which was launched in 2008. The Ministry of Finance and Economy played a role as the leading department in planning and coordinating economic policy among all government ministries, while the Budget Office was responsible for functions such as fiscal policy, National Fiscal Management Plan development, and budget preparation.
However, despite being a leading department, the Ministry of Finance and Economy had no substantial authority to exert influence over other departments. Securing routine data from other ministries was also not easy; however, this advantage was enjoyed by the Budget Office, which held budgeting rights.
Given this past, there are concerns that if the Democratic Party's separation plan is realized, the Ministry of Economy and Finance's policy momentum will decrease. It is argued that the synergy gained from simultaneously coordinating policy tools (budget) and policy promotion would be lost. Moreover, if the Democratic Party were to indeed take power, there is a cynical perspective questioning whether dividing the Ministry is necessary for effective policy implementation.
However, within the Ministry of Economy and Finance, there have been instances of supporters for the Democratic Party's separation plan. This is because it is believed that splitting the Ministry into two departments could lead to the resolution of the personnel backlog problem.
Just before the launch of the Ministry, there were about 850 employees in the Ministry of Finance and Economy and about 470 employees in the Budget Office. However, right after its establishment, the staff of the Ministry of Economy and Finance decreased to about 900. In addition to some personnel moving to the Financial Services Commission, which was created by separating the financial policy function from the Ministry, the government also reduced about 140 positions.
The process of consolidation resulted in a deepening stagnation of promotions within the Ministry of Economy and Finance due to the elimination of redundant positions. The number of 1st level positions (Deputy Ministers/Directors) decreased from 11 (Ministry of Finance and Economy + Budget Office) to 6, which is representative. A government official noted, "There are significant numbers in support organizations such as the Spokesperson’s Office, General Affairs Division, and Human Resources Division, yet these positions have disappeared," adding, "The Vice Minister position in the Budget Office also has been reduced."
This has resulted in a situation where it takes approximately 20 years for a Deputy Director (5th level) to be promoted to a Director (4th level), and about 8 years for a Director to be promoted to a Director General. The employees of the Ministry of Economy and Finance explain that promotions take over twice as long compared to other ministries. Colleagues in other departments who were promoted earlier are reportedly receiving higher salaries and, thus, better pensions as a result. The personnel backlog not only affects promotions but also leads to discontent regarding salaries.
If the Ministry of Economy and Finance were to split into two departments, it is expected that the previously eliminated redundant positions would be reinstated. This would mean that personnel circulation could be revitalized. One Ministry employee stated, "I have found promotions to be quite daunting since I joined, and honestly, I wish the Democratic Party would voice their support more."