**”Ministry of Finance Lacks Budgetary Support, Limiting Policy Coordination”**
**For the Climate Energy Environment Ministry, “Need for Connection with Resource Industries”**
**Addresses Both Sides of Opinions on Prosecutor’s Office Abolition**
On the 17th, at the whole session of the Public Administration and Security Committee held at the National Assembly in Yeouido, Seoul, Chairman Shin Jeong-hoon is seen striking the gavel. [Yonhap]
[Herald Economy = Kim Jin] The National Assembly’s Public Administration and Security Committee has expressed concern over the government’s reorganization plan which involves restructuring the Ministry of Strategy and Finance and establishing a Financial Supervisory Commission. The committee suggests that this plan “runs counter to the decentralization of the Ministry of Strategy and Finance’s functions.” Regarding the Climate Energy Environment Ministry, it was noted, “For a stable and efficient energy transition, the connection with resource industries such as energy, oil, gas, and coal is needed.”
According to political sources on the 18th, the National Assembly’s Public Administration and Security Committee’s review report on a proposed amendment to the Government Organization Act, introduced on the 15th by Kim Byung-gi, floor leader of the Democratic Party, flagged potential issues. The amendment, a government and ruling party proposal co-signed by all 166 Democratic Party lawmakers, aims to split the Ministry of Strategy and Finance into the ‘Office for Planning and Budget’ and the ‘Ministry of Finance and Economics’ under the Prime Minister’s jurisdiction. The report warns that “the Ministry of Finance and Economics may face limitations in its policy coordination function without budgetary support.”
The government and ruling party’s proposal includes separating the current Ministry of Strategy and Finance, established in 2008, into the Office for Planning and Budget, Ministry of Finance and Economics, and the Financial Supervisory Commission, 18 years after its inception. While the Public Administration and Security Committee acknowledges the legislative intent to ensure checks and balances between budgetary and economic functions and to enhance specialization by redistributing the Ministry’s workload, concerns remain.
Regarding the Financial Supervisory Commission, while the intention is “to transfer domestic financial functions performed by the existing Financial Services Commission to the Ministry of Finance and Economics to effectively respond to macroprudential risks,” there is criticism that this reverts to the pre-2008 structure of the Ministry of Finance and Economics and the Financial Supervisory Commission, defying the decentralization efforts.
The proposal to rename the Ministry of Environment to the Climate Energy Environment Ministry and transfer energy affairs from the Ministry of Trade, Industry, and Energy was also met with concern. It highlights the issue of energy being moved to the Climate Energy Environment Ministry, but crucial resource industries like oil, gas, and coal remaining under the Ministry of Trade, Industry, and Energy. Additionally, the committee compared successful cases of integrating climate and energy divisions such as the UK, and contrasting instances like Germany, where they reverted to separate ministries due to criticism over the integration of climate and energy functions.
Both supportive and opposing viewpoints on prosecutorial reforms, including the abolition of the Prosecutor’s Office and the establishment of the Public Prosecution and Serious Crimes Investigation Agency (SCIA), were thoroughly addressed. The proposal to abolish the Prosecutor’s Office cited reasons such as strengthening democratic oversight, preventing biased and political investigations, and enhancing public trust and the legitimacy of the criminal justice system. However, constitutional concerns over the abolishment of the Prosecutor’s Office, potential erosion of investigative efficiency, and efficacy of the criminal justice functions were noted as opposing reasons.
Regarding placing the SCIA under the Ministry of Interior and Safety, positive views included alleviating concerns over concentrating power with the Minister of Justice and promoting investigatory efficiency through smooth cooperation and competition with the National Police Agency. Contrarily, concerns about the concentration of investigative power within the Ministry of Interior and Safety, overlapping investigatory functions among three agencies, and the need for efficient personnel allocation to preserve existing prosecutorial capabilities were expressed.
The government and ruling party’s plan aims to reorganize the current 48 central administrative agencies (19 ministries, 3 departments, 20 services, 6 commissions) into 50 agencies (19 ministries, 6 departments, 19 services, 6 commissions). The Public Administration and Security Committee’s report also includes plans to abolish the Broadcasting and Communications Commission and establish the Broadcasting Media Communications Commission, introduce the Deputy Prime Minister for Science and Technology, abolish the Deputy Prime Minister for Social Affairs, implement a dual vice-minister system for the Ministry of SMEs and Startups, and reorganize the Ministry of Gender Equality and Family into the Ministry of Gender Equality and Family Development.
The report indicates that this organizational restructuring will require the enactment or amendment of related bills, including the Government Organization Act, totaling 643 bills. The amendment bill for the Government Organization Act, led by the Democratic Party, was submitted to the National Assembly’s Public Administration and Security Committee the previous day and will undergo legislative review starting today.