South Korea

President replaces Finance and Unification Ministers

Article published on the 2009-01-19 Latest update 2009-01-19 15:56 TU

New Finance Minister Yoon Jeung-Hyun (L) and new Unification Minister Hyun In-Taek (R)
(Photos: Reuters, Layout: RFI)

South Korea’s President Lee Myung-Bak replaced his Finance Minister, Kang Man-Soo, Monday, following media criticism of Kang's handling of the economic downturn. He also replaced his unification minister, Ha-Joong, with Hyun In-Taek, an academic who helped draft Lee's policy towards North Korea, which links economic aid to de-nuclearisation.

Finance Minister Kang Man-Soo will be replaced by Yoon Jeung-Hyun, a former chief of the decision-making Financial Supervisory Committee and of the Financial Supervisory Service watchdog.

"The government expects his nomination and appointment will bring about confidence in the market that will help us get through this economic crisis," said a spokesperson for the President.

Lee was elected last year with a record margin of victory. He has called himself the "economy first" president, but his approval rating has dropped with the country’s economy.

The pick for Unification Minister shows that Lee’s government will continue the hardline approach towards its neighbour, since Hyun was an architect of Seoul’s policy towards Pyonyang.

“Lee Myung-Bak is going to have the continuous policy as before: the policy of wait and see until North Korea de-nuclearises,” South Korean analyst Noh Jong-Sun told RFI.

“Lee Muyng-Bak has proposed de-nuclearisation first,” he added, explaining that South Korea will likely not deal with the North economically until it agrees to shut down its nuclear programme.

In Washington, White House spokesperson, Dana Perino, said Barack Obama will likely stand firm in opposing North Korea’s nuclear programmes, after Pyongyang’s foreign ministry on Saturday said it would keep its nuclear arms.

Two other ministerial-level posts were replaced on Monday, including the Prime Minister’s Chief of Staff and the head of the newly-created Financial Services Commission (FSC), along with fifteen vice-ministers and other officials of the same level.

Kwon Tae-shin, a government administrator, will take the role of Chief of Staff for the Prime Minister. Chin Dong-Soo, president of the state-run Export-Import Bank of Korea will become the new head of the FSC.