[Focus] Will giant Ministry of Finance and Economy be born?

Will the Ministry of Finance and Economy (MOFE) regain the strong influence it wielded in the past dinosaur-like mode?

As the MOFE has a deputy prime minister as its head for the first time since its status was degraded to a normal ministry after Korea faced the foreign exchange crisis three years ago, many changes in its role, small or large, are expected to occur. But, the budget and financing that it lost in the past still are out of the hands of the MOFE.

MOFE, the ¡®elder brother¡¯ of economic ministries:

MOFE Minister Jin Nyum often says he is the leader of an economic team. A considerable portion of such a view of Minister Jin has been realized due to the revision of the governmental organization law. The economic deputy premier is to have a role of generalizing and coordinating relevant policies. The economic policy-coordinating meeting, that has been held once a month, will be expanded to twice a month.

The external economic coordinating meeting that has been presided over by the prime minister will be absorbed into the economic policy-coordinating meeting. In case of showing different interest on the change or revision of laws among ministries, relevant deliberations will be made at the meting. As the MOFE has had a right to map out a basic blueprint of corporate and financial restructuring, the business being made by the Financial Supervisory Commission so far, the center of restructuring is to move from Yoido to Kwachon City.

To play 50-60% of the past dinosaur Ministry of Finance and Economy¡¯s role:

Comparing to the powerful Ministry of Finance and Economy of the past, however, it is still a baby dinosaur. The Ministry of Planning and Budget still grasps control over the national budget. Although the public fund management committee is to be created in the new MOFE, the right to actually control financial institutions is possessed by the Financial Supervisory Board. The Fair Trade Commission still owns a power to control large business groups, or Chaebols.

Deputy premier is feared to be trying to read others¡¯ faces:

Despite the increase in power, many feel uneasy about the status of the economic deputy premier. Cheong Wa Dae plans to make a cabinet reshuffle late February or early March. Although he was promoted to the deputy premier, he might have to consider the upcoming cabinet reshuffle.

Related to this, a director-general of the MOFE was concerned.

¡°The minister is expected to show something within a scope not to make serious mistakes,¡± the MOFE official said. ¡°Working-level officials are also likely to read others¡¯ faces during the coming month, seeking a safe place.¡±

Choi Young-Hae moneychoi@donga.com