Lee undertakes partial Cabinet reshuffle

[행복지기]

A long-time crusader of financial reform was named as the nation`s new economic czar yesterday in a government reshuffle aimed to reinforce economic hands to fight a looming recession.

Cheong Wa Dae announced nominations of four new ministerial officials to the Strategy and Finance Ministry, Financial Services Commission, Unification Ministry and Prime Minister`s Office. Fifteen new vice ministerial officials were also appointed.

Former top financial regulator Yoon Jeung-hyun was named as strategy and finance minister to replace widely discredited Kang Man-soo.

Yoon is renowned for charisma, drive and a strong commitment to free-market economics. While serving under the former Roh Moo-hyun administration, he vehemently advocated deregulating financial market and was often at odds with mainstream policymakers who favored more state intervention in the market.

 

Political scientist Hyun In-taek, the main architect of Lee`s North Korea policy, was tapped as unification minister. The Korea University professor will replace Kim Ha-joong, who was scolded recently by Lee for his plans to engage with North Korea more actively. Hyun is widely known for stressing reciprocity in ties with Pyongyang and stronger alliance with the United States.

Chin Dong-soo, president of the state-run Export-Import! Bank of Korea, was nominated to head the top financial supervisory body.

Kwon Tae-shin, deputy chief of the Prime Minister`s Office, was promoted to the ministerial post.

The president sacked his senior secretary for economic affairs, Bahk Byong-won, who is under inquiry for inappropriate financial deals during his time as chairman of Woori Financial Group.

Yoon Jin-shik, former industry minister and current president of Korea Investment Holdings Co., was named to the post.

New vice ministers include two of Lee`s most trusted former aides who were fired last year when the president was plagued by policy failures and inner-circle power struggles.

Lee Joo-ho, the key brain behind Lee`s educational reforms, and Park Young-joon, his closest political adviser, were named to the No. 2 posts at the Education Ministry and the Prime Minister`s Office, respectively.

The powerful lineup indicated that vice ministers will play a bigger role in the government. Many Cabinet ministers have been criticized for their lack of professional knowledge and ability to manage organizations.

"The reshuffle has focused on reorganizing the government`s economic team that will carry out the most urgent task of reviving the economy," Lee Dong-kwan, presidential spokesman told reporters.

"The nomination of Yoon is expected to gain market confidence (in the government), which will help the nation overcome the economic crisis," he added.

The announcement came one day after the nomination of Lee`s trusted confidants as new intelligence and police chiefs.

On Sunday, Minister of Public Administration and Security Won Sei-hoon was designated to head the National Intelligence Service.

He will lead reforms of the spy agency to more effectively cope with North Korea and newly emerging security threats. The choice of Won raised some concern because he lacks experience in intelligence and security affairs.

Kim Seok-ki, commissioner of the Seoul Metropolitan Police Agency, was named as new chief of the National Police Agency.

The nomination of the renowned hardliner is seen as a bid to tighten the reins on dissidents and labor unions that challenge Lee`s reform drives.

Lee postponed nominating a successor to embattled former tax chief Han Sang-ryule, who offered to resign last week amid allegations of bribery.

Lee has yet to pick a new minister of public administration to replace the NIS chief-designate.

The main opposition party described the reshuffle as "a declaration of war against the public."

"The nomination clearly shows that the president will resort to oppression, coercion and inner circles," said Democratic Party spokesman Choi Jae-sung.

The ruling Grand National Party welcomed the nomination, saying that the formation of an effective economic team would "win the hearts of the people."

But party officials were privately angry with Lee`s refusal to bringing GNP leaders into the Cabinet.

Party leader Park Hee-tae proposed Lee name some GNP figures to ministerial posts in charge of social affairs. Lee rejected the request, saying that this reshuffle involves largely the economic team.

By Hwang Jang-jin

(jjhwang@heraldm.com)