New Prime Minister and Cabinet by January 16

The Presidential Transition Committee is set to announce a series of policies and amendments in an effort to lay the ground work for the revitalization of the economy before President-elect Lee Myung-bak takes office on February 25.

President-elect Lee is also planning to complete the selection of the prime minister and the heads of each ministry by January 16.

According to sources, the Ministry of Government Administration and Home Affairs recently requested the transition committee submit a list of cabinet members for the new administration by January 16.

“In line with the road map concerning the economy (revision of the financial industry restructuring law, tailored measures for small and medium-sized companies, plans to lift unreasonable regulations and reform of the public sector, as well as measures to reinvigorate the traditional markets and to assist the self-employed and small business owners), these details will be announced by January 18 before President-elect Lee is sworn in,” said a transition committee official on Tuesday.

The transition team will first release a draft of the revised financial restructuring law, which would limit the commercial industries’ investment in the financial sector by January 18.

In addition, the team is aiming to announce the details of the so-called “Tailored Measures for Small and Medium-sized Companies.” According to the measures, the Korea Development Bank will be split into a monetary policy institute and an investment bank while the money acquired in the process of privatizing the investment bank will be injected to support small- and medium-sized firms.

The transition committee is also planning to announce deregulatory measures, such as the abolishment of restrictive shareholding regulations currently imposed on domestic conglomerates as well as replace the Monopoly Regulation and Fair Trade Act with the introduction of the Competition Promotion Act.

The committee will focus on the “Six Major Policies,” and the “Declaration on Korea’s Advancement” from January 20 to February 24. The six policies aim to establish a science and technology powerhouse; the research and development of new growth engine; energy conservation and procurement of natural resources; the development of strategies and promotion of exports for the environmental industry; and a government-led promotion of Western and Korean medical industries.

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