EDITORIAL from the Korea Herald on Jan. 21)

Cabinet reshuffle

This week's Cabinet shuffle is noticeable for two reasons: the replacement of the
economic team and the appointment of President Lee Myung-bak's close aides to key
posts.

The replacement of the economic team could not have come sooner. For months,
there had been calls for the resignation of Finance Minster Kang Man-soo for his
failure to respond properly to the unfolding economic crisis. Lee, however, chose
to stand by his man, turning a deaf ear on numerous calls to dismiss him.
Embarking on the second year of his five-year presidency, Lee chose to start
afresh by assembling a new economic team. New Finance Minister Yoon Jeung-hyun,
Chairman of the Financial Services Commission Chin Dong-soo, and senior
presidential secretary for economic affairs Yoon Jin-shik face the formidable
challenge of winning back the trust of the market - trust badly damaged in the
past year by the mixed messages and inconsistent policies of Kang's economic
team.
The new officials should also forge ahead with restructuring efforts that seem to
have lost steam. Creditor banks, charged with leading the much needed
restructuring of the construction and shipbuilding industries, have been less
than enthusiastic about removing companies because doing so would add to the
banks' non-performing loans. Perhaps it is time for the government to step in to
provide guidelines and exercise leadership in restructuring, which is considered
vital to country's economic recovery.
The new personnel would do well to learn from the mistakes of their predecessors.
Even as the economic crisis hit, top economic officials were talking about Lee's
election campaign pledge of "747" - 7 percent economic growth, per capital income
of $40,000 and becoming the world's seventh largest economy. Despite the harsh
realities, the former economic team continued to chase this rosy dream, resulting
in a hodgepodge of economic measures that failed to adequately contain the
escalating economic crisis.
Being careful with words is a virtue that the new economic team should strive
for. Too often, Lee and his economic officials spoke carelessly, contributing to
the lack of credibility that plagued the administration in its first year.
Looking at the roster of new appointments, critics point out that posts have once
again been filled with people close to Lee. Several of them hail from the same
region or attended the same university.
Even more troubling is the resurrection of a number of key Lee confidants. Lee
Joo-ho, the brain behind Lee's educational reform plan, was named an education
vice minister, while Park Young-joon, former presidential secretary for planning
and coordination, was appointed to the post of vice minister for government
policy in the prime minister's office. Park resigned last June due to controversy
over wielding influence in personnel appointments while Lee Joon-ho resigned
after taking responsibility for the candlelight protests against U.S. beef
imports.
The latest Cabinet reshuffle is another reminder of the apparent limitations of
this administration. Lee was criticized last year for not forming a more
inclusive Cabinet - Lee chose to fill the posts with his long-time associates,
effectively closing himself off to dissenting voices.
A year later, Lee has chosen to carry out a small-scale Cabinet reshuffle with
most of the changes being made at the vice-ministerial level, while leaving many
ministerial posts intact. Even with the changes that have been made, it is
difficult to find any effort at creating diversity.
In choosing to keep himself surrounded with his close aides and long-time
supporters, Lee has lost a valuable channel of communication with the country.
(END)