Lee Jae Myung picks 6 more ministers, senior aides for civil affairs, social cohesion
President Lee Jae Myung on Sunday nominated six ministers, including Koo Yun-cheol, a former vice finance minister, to head the Finance Ministry, and former head of the disease control agency Jeong Eun-kyeong as health minister.
The list also included Rep. Jung Sung-ho for justice minister and Rep. Yun Ho-jung for interior minister. Both lawmakers are serving their fifth terms in the National Assembly.
Doosan Enerbility CEO Kim Jung-kwan was nominated as industry minister, while Lee Jin-sook, former president of Chungnam National University, was tapped for education minister.
President Lee also appointed former prosecutor Bong Wook as senior civil affairs secretary, Jeon Seong-hwan as senior secretary for public engagement and social cohesion, and Kim Kyoung-soo, the former governor of South Gyeongsang Province as the head of the Presidential Committee for Decentralization and Balanced Development.
Koo Yoon-cheol, a visiting professor of economics at Seoul National University, was nominated as minister of finance, in a rare recruitment from academia in Lee's Cabinet.
The five-time Rep. Jung Sung-ho is one of Lee's closest allies in the Democratic Party. Jung as minister of justice is expected to carry out the Lee administration's key policy of overhauling the country's criminal justice system, centering on prosecution reform.
Rep. Yun Ho-jung, a five-time Democratic Party lawmaker who was a top official in Lee's campaign team, was named minister of interior and safety.
Jeong Eun-kyeong, who steered Korea's response to COVID-19 as the chief of the main disease control agency, was tapped as minister of health and welfare. Jeong retired from public office and worked as an infectious disease researcher at the Seoul National University Hospital before joining Lee's presidential campaign in April.
Kim Jung-kwan, currently the president of Doosan Enerbility who served as an official at the Finance Ministry until 2018, was chosen as minister of trade, industry and energy.
Kim Kyoung-soo, the former governor of South Gyeongsang Province, ran in the Democratic Party primary for presidential candidate against Lee. Kim immediately endorsed Lee after losing the primary. Kim would handle the president's policies for non-Seoul metropolitan areas, at a newly launched office named the Presidential Committee for Decentralization and Balanced Development.
Lee has decided to keep another one of Yoon's ministers, by having the current Minister of Food and Drug Safety Oh Yu-Kyoung remain in office. Lee also kept Minister of Agriculture Song Mi-ryung, who was appointed by Yoon.
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Korea Herald
an hour ago
- Korea Herald
One month on, what are Lee Jae Myung's top policy priorities?
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Korea Herald
5 hours ago
- Korea Herald
[Editorial] New curbs, old fears
South Korea introduces strict loan limits as speculation surges in Seoul property market Just 23 days into President Lee Jae Myung's term, the South Korean government has unveiled its most forceful intervention in years to tame a resurgent property market. On Friday, authorities introduced sweeping restrictions on household borrowing, marking the administration's first major policy initiative and offering early clues to its governing style. At the core of the package is a strict cap on mortgage lending for property purchases in the capital region. Beginning this week, buyers will be limited to loans of no more than 600 million won ($440,000), regardless of income or property value. Additional measures include a six-month residency requirement for borrowers, a prohibition on multiple-home owners from securing new mortgages and tighter overall limits on household lending across the financial sector. These curbs are without precedent in scope and are aimed at dampening expectations of further price increases, a psychological shift the government believes is necessary to slow speculative momentum. The intervention comes amid clear signs of market overheating. Apartment prices in Seoul have risen for 21 consecutive weeks, with the most recent increase marking the steepest since 2018. Districts such as Seongdong, Mapo and Gangnam have led the surge, fueled by rising asking prices and a jump in buyer inquiries. The Bank of Korea's housing price outlook index rose to its highest level in nearly four years in June, reinforcing concerns about runaway sentiment. Several forces have converged to drive demand. Political uncertainty eased following the June 3 presidential election, and President Lee's campaign pledge to shift away from tax-heavy regulation toward a supply-focused approach was seen by investors as a positive signal. Meanwhile, the Bank of Korea has cut its policy rate by 75 basis points since late 2024 and is expected to ease further in the second half of this year. Together, these factors have revived fears of a repeat of the 2017-21 property boom. But the manner of the government's response has raised doubts. Shortly after Friday's announcement, the presidential office stated that the measures were not a presidential initiative, only to revise its stance later. The apparent disconnect between the Financial Services Commission and the presidential office sowed confusion at a critical moment. In a policy domain where timing and clarity are paramount, such missteps risk undermining credibility. The Moon Jae-in administration's failure to rein in prices was not due to inaction — it introduced 23 housing measures — but rather a lack of consistency, poor communication and weak coordination. Buyers learned to anticipate reversals, interpreting restrictions not as deterrents but as temporary hurdles. For the Lee government, restoring confidence will require more than regulation. Restricting credit is not a substitute for a comprehensive housing strategy. Thus far, no credible road map has been presented to expand supply through new construction, redevelopment or accelerated approvals. An across-the-board lending cap, regardless of income, may lock out middle-income buyers while leaving wealthier, cash-rich investors untouched. The unintended consequence could be a more regressive housing market. Experts also warn that sharp restrictions, introduced while rates are falling and housing supply remains tight, are unlikely to reverse the upward trend. At best, they may slow the pace of price growth; at worst, they could exacerbate inequality and weaken household consumption. Housing is not merely an economic issue — it is a test of political competence. Effective policy requires coherence, foresight and execution. The Lee administration's ability to manage these dynamics will shape not only real estate outcomes but also broader perceptions of its governing capacity. Announcing strong measures is a first step. Delivering them with credibility and balance will be the true measure of success. koreadherald@
Korea Herald
13 hours ago
- Korea Herald
Korea's economy will run like a business for growth: finance minister nominee
Koo Yoon-cheol pushes productivity, real growth to boost public livelihoods South Korea's finance minister nominee, Koo Yoon-cheol, vowed Sunday to manage the national economy with the rigor of a private company, focusing on return on investment and making government spending more productive. 'South Korea must pursue real growth, and that requires a fundamental overhaul,' Koo said during a press briefing shortly after his nomination was announced. 'We must run the economy like 'Corporation Korea,' where the people are our shareholders.' Koo, tapped as the first finance minister under President Lee Jae Myung, will be responsible for steering the new administration's economic policy. His comments aligned closely with Lee's top priority of improving public livelihoods, a message the president has underscored since taking office. 'I feel a deep sense of responsibility in being nominated at a time when the Korean economy faces serious challenges,' Koo said. 'But responsibility alone isn't enough — we must act. The most urgent task is stabilizing prices and easing the burden on ordinary citizens.' Koo also pledged to revitalize regional economies outside the capital area and address seasonal safety concerns as Korea approaches the peak of summer. Externally, he pointed to rising risks from US tariff negotiations, the war in Ukraine, and tensions in the Middle East. 'I will respond actively and step by step to the challenges confronting our economy,' he said. A veteran of budget policy, Koo likened managing the national economy to running a business — where every investment must be justified by returns. 'It all begins with cost-benefit thinking,' he said. 'A company that makes bad investments eventually fails. The same applies to a country. Korea must ensure that every unit of spending delivers value — whether by cutting costs, raising revenue, or finding new engines of growth.' Koo reaffirmed the Lee administration's expansionary fiscal stance, but with a focus on measurable outcomes. 'We must approach fiscal policy from a performance-based perspective," he said. "If more spending leads to growth, we spend more. If it doesn't, we cut back. In the short term, we operate flexibly. But in the long term, what matters is spending productively — even if that means spending more — to ensure sustainable growth.' He also stressed the need for systemic reform and future-oriented investments. 'We'll invest strategically in emerging industries like AI to build new growth engines, ensuring all citizens share in the opportunities and rewards of economic expansion and creating a virtuous circle between national progress and public well-being," said Koo. A visiting professor of economics at Seoul National University, the minister nominee has long argued that AI is Korea's next great economic engine. In April, he reportedly said, 'Korea's golden time lies in the next five years — our future depends on AI.' The seasoned bureaucrat returns to the Finance Ministry after five years, having last served as second vice finance minister under President Moon Jae-in, overseeing budget and fiscal policy until May 2020. He previously held several high-level posts at the ministry, including director general for budget planning and for social spending, and was widely regarded as the architect of Moon's 'people-centered economy.' He also held senior positions in the presidential office under President Roh Moo-hyun, including director of government affairs and secretary for personnel. From May 2020 to June 2022, he led the office for government policy coordination. In announcing his nomination, the presidential office described Koo as 'someone who has long explored how to drive innovation in Korea,' and 'ideally positioned to chart a path for national growth, backed by deep expertise in finance and policy.' Koo steps into the role with considerable responsibility, following a nearly two-month vacancy after the sudden resignation of former finance minister Choi Sang-mok. Although the finance minister typically also serves as deputy prime minister for the economy, the presidential office did not clarify whether Koo would take on that role — fueling speculation of a broader structural shake-up. President Lee has previously proposed splitting the Finance Ministry into two branches, one for budgeting and another for fiscal policy, to curb its influence and bring budgetary oversight closer to the presidential office. He will be formally appointed following a parliamentary confirmation hearing. Once confirmed, Koo will immediately face a packed agenda — setting the new administration's economic direction, preparing next year's budget, and responding to trade risks and domestic headwinds. 'Having risen from one of the world's poorest countries to the brink of developed-nation status, Korea has already experienced what it means to lead globally — and I believe we can do it again, and must,' Koo said. 'The country must achieve real growth to ensure people's happiness. I will devote myself to making that happen — and to making sure the benefits of that growth return to the people and improve their lives.'
