President sacks finance minister over economic crisis

SEOUL, Jan. 19 (Yonhap) -- South Korean President Lee Myung-bak sacked his finance and unification ministers Monday in a long-anticipated shakeup of the Cabinet aimed at easing public anger over a looming economic recession and worsening relations with communist North Korea.

Yoon Jeung-hyun, former head of the Financial Supervisory Committee (FSC) and the
Financial Supervisory Service (FSS), was tapped to succeed finance minister Kang
Man-soo, who has been widely blamed for failing to forecast the ongoing economic
difficulties and adopting a series of "misguided" policies that made the country
more vulnerable to the global financial crisis.
"The focus of the reshuffle has been set to reorganizing the government's
economic team that will carry out the most urgent, pressing task of reviving the
country's economy," Lee Dong-kwan, a spokesman for the presidential office Cheong
Wa Dae, told a press conference.
Yoon served as the head of the FSC and FSS under the former Roh Moo-hyun
government and he is well versed in financial affairs with expertise on overall
economic issues, he cited as the reason for Yoon's nomination.
"The government expects his nomination and appointment will bring about
confidence in the market that will help us get through this economic crisis," the
spokesman added.
Unification minister Kim Ha-joong, the country's point man on North Korea, will
be replaced by Hyun In-taek, professor of political science from Seoul's Korea
University, the president's alma mater.
The announcement of a new unification minister comes as Seoul seeks to mend its
worsening ties with Pyongyang, which on Saturday said its armed forces will
assume a posture for "an all-out confrontation" with the South.
The Korea University professor played an important role in setting up one of the
president's key North Korea policies, dubbed Denuclearization 3000, which vows to
help North Korea increase its per capita income to US$3,000 within the next 20
years if the communist nation completely abandons all its nuclear ambition and
programs, according to the presidential office.
All nominees for the ministerial-level posts must undergo confirmation hearing at
the National Assembly, though the unicameral parliament cannot veto the
nominations.
Monday's reshuffle also included two other ministerial-level posts -- chief of
staff for prime minister and the head of the Financial Services Commission.
Kwon Tae-shin, a career government administrator, was promoted to the position of
prime minister's chief of staff while Chin Dong-soo, president of the state-run
Export-Import Bank of Korea, was tapped to head the Financial Services
Commission, according to the presidential spokesman.
Also to be replaced in the latest government shakeup are 15 vice
ministerial-level officials, including the chief presidential secretary for
economy, Bahk Byong-won, who recently underwent questioning by state inspectors
for possible involvement in suspected irregularities committed by his former
employer, Woori Financial Group.
Bahk is to be replaced by Yoon Jin-shik, president of the Korea Investment
Holdings Co. Ltd., Lee said.
The president was earlier expected to name nominees for five ministerial-level
posts, including a replacement for public administrations minister Won Sei-hoon,
who was tapped Sunday to become the head of the country's National Intelligence
Service.
"The nomination process for the public administrations minister has yet to be
finalized," Lee told the press conference, noting the process could be completed
within the next few days.
A future announcement will also include replacement for the head of the National
Tax Service, he said.
Han Sang-ryule resigned last week as head of the tax agency after he came under
suspicion of bribery and faces an imminent investigation by the prosecution.
bdk@yna.co.kr
(END)