Lee Jae-myung, the Democratic Party of Korea presidential candidate, mentioned the plan to separate the Ministry of Economy and Finance, while the People Power Party responded, noting that it would "tear apart the country's financial system with personal anger and hatred."
Song Eon-seok, a member of the People Power Party and chair of the National Assembly's Planning and Finance Committee and a former deputy minister of the Ministry of Economy and Finance, issued a statement on the 28th saying that "the pledge made by Lee Jae-myung, who was elected as the Democratic Party of Korea's presidential candidate, is shocking."
The candidate earlier noted to reporters after completing the primary election in the Seoul metropolitan area, Gangwon, and Jeju at KINTEX on the 27th that "I agree with the assertion that the Ministry of Economy and Finance is acting like a king among government ministries."
He also stated, "There is a risk of excessive concentration of authority at the Ministry of Economy and Finance, which could lead to abuse," and added, "I will present detailed plans for the restructuring later."
The lawmaker criticized the candidate's push for the separation of the Ministry of Economy and Finance, asserting that "tearing apart the country's financial system with personal anger and hatred undermines the stability of national finances, the consistency of economic policies, and the principles of checks and balances within the government," and expressed strong opposition to transferring the budgeting authority to the presidential office.
He remarked, "It is an idea to place the budgeting process, which should be carried out through rational coordination and consultation within the government, directly under the president, essentially allowing the president to wield the national budget at will," adding, "This means that in an excessively power-concentrated imperial presidency, the president will even hold the 'key to the treasury.'"
He continued, "The current Ministry of Economy and Finance is an organization that has established an optimized form while taking into account administrative continuity and connectivity after undergoing repeated separations and integrations whenever the regime changes," stating that "the consistency and coordination function of economic policy and fiscal policy must remain together for national economy stability."
If the budgeting authority exceeding 600 trillion won is transferred to the presidential office as envisioned by the candidate, the lawmaker expressed concerns that "the political neutrality of budgeting will collapse and national finances may be abused for short-term political purposes," warning that "this could lead to the destruction of fiscal soundness and, in severe cases, even to financial insolvency."
He further pointed out that it would create a structure where "the president holds the key to the treasury, and no one in the government, National Assembly, or the public can check this," predicting negative impacts such as ▲adverse effects on external credibility ▲downgrade of national credit ratings ▲capital outflows ▲rising interest rates.
The lawmaker stated, "In the current situation where we are facing complex economic issues, artificially separating the Ministry of Economy and Finance will destroy the organic connections between tax, fiscal, and economic policies and lead to administrative inefficiency and policy confusion," asserting that "the side effects and risks of such organizational restructuring carried out under the pretense of decentralizing authority from the Ministry of Economy and Finance are much greater."
Meanwhile, the Democratic Party of Korea has decided to pursue legislation to separate the financial sector of the Ministry of Economy and Finance immediately upon winning the 6.3 presidential election.