Blue House Seeks Successor for Policy Chief, Names Like Kim Jeonggwan and Lee Hosung Considered

Kim Jeong-gwan, Lead on Mega-Projects and US Investments, Emerges as Top Candidate

Lee Hanjo, Lee Eogwon, and Kwon Daeyoung Also Under Consideration

Kim Yong-bum: "The Successor Must Accelerate Policy Implementation"

With the abrupt resignation of Kim Yong-bum, the presidential policy chief, the appointment of his successor has emerged as the biggest variable in determining the direction of the second phase of economic policy under the Lee Jae-myung administration. This appointment will serve as the first signal of whether the administration will push forward with the economic policies and growth strategies designed under Kim Yong-bum’s leadership, or if it will revise the tone and implementation strategy in response to recent controversies surrounding the real estate and stock markets.

According to a comprehensive report by The Asia Business Daily on September 2, sources from the ruling party and government circles say that Industry, Trade and Energy Minister Kim Jeong-gwan is being discussed as the frontrunner for the position. Having led the administration’s three major mega-projects and handled investment and trade negotiations with the US, his strengths lie in ensuring policy continuity while also accelerating policy execution. Other names being mentioned include Lee Han-jo, Chair of the National Research Council for Economics, Humanities and Social Sciences and a longtime policy advisor to President Lee Jae-myung; Lee Eogwon, Chairman of the Financial Services Commission; Kwon Daeyoung, Vice Chairman of the Financial Services Commission; Im Kigeun, Chief of the Office for Government Policy Coordination; Ha Joonkyung, Senior Secretary for Economic Growth; Yoon Chang-ryeol, former Chief of the Office for Government Policy Coordination; and Lee Hosung, former presidential policy chief. Speaking to The Asia Business Daily by phone, former chief Kim Yong-bum remarked, “The successor should rapidly execute the policies devised over the past year and deliver tangible results.”

Minister Kim previously served as Head of the Economic Analysis Division and Director of Comprehensive Policy at the former Ministry of Strategy and Finance. He also gained on-the-ground business experience with Doosan Group before joining the current administration as Industry Minister, overseeing trade negotiations with the US as well as semiconductor and energy policy. Recently, he personally coordinated the first US investment project and tariff issues. As a career economic bureaucrat with experience in both industry and corporations, Kim is considered one of the few capable of adjusting inter-ministerial interests and resolving blockages in major investment projects. However, there are concerns that reassigning the Minister of Industry while US negotiations are ongoing could create a vacuum in the trade leadership.

As an option that would make the Lee Jae-myung administration’s policy stance more explicit, Lee Han-jo, Chair of the National Research Council for Economics, Humanities and Social Sciences, is being considered. He is noted for his long-standing work in shaping the core national philosophies of President Lee, such as a basic social safety net and expansionary fiscal policy, making his close working relationship with the president a key advantage. Within the presidential office, there are also discussions about promoting Senior Secretary Ha Joonkyung, who has worked closely with the president over the past year, and Ryu Deokhyun, Deputy Secretary for Fiscal Planning.

Among career officials, Im Kigeun, Chief of the Office for Government Policy Coordination, is seen as strong due to his experience with budget, finance, and cross-government coordination. Lee Eogwon, Chairman of the Financial Services Commission, is also among the candidates, but remains under scrutiny for the controversy surrounding leveraged single-stock ETFs. Other names mentioned among former officials include Lee Hosung, former policy chief at the Blue House under the Moon Jae-in administration, and Yoon Chang-ryeol, who served as the first head of the Office for Government Policy Coordination in the early Lee Jae-myung administration.

The reason this appointment is attracting attention is that changing the policy chief is not just an ordinary staff reshuffle, but a reorganization of the command structure for economic policy. President Lee replaced both the Deputy Prime Minister for Economic Affairs and the Land, Infrastructure and Transport Minister on August 30, and then accepted the resignation of the policy chief two days later. On the same day, the administration withdrew its plan to lower the basic property tax exemption for single-homeowners who are not residents to 900 million won, as well as its plan to raise the tax cap, amid mounting unease in the real estate market and growing calls within the party for accountability regarding leveraged ETFs. Both policy modifications and a reshuffling of personnel occurred simultaneously.

In response, the presidential office is drawing a clear line against interpreting Kim’s resignation as a fundamental shift in policy direction. With key agenda items such as the three mega-projects, US investment negotiations, and efforts to restore livelihoods already in the execution phase, it is likely that the new policy chief will be expected to deliver results through coordination and execution, rather than by introducing new blueprints. Kang Yujeong, chief spokesperson at the presidential office, stated, “The current personnel reshuffle is part of measures to vitalize and accelerate the second-phase economic policy team, and we plan to carry out subsequent appointments to ensure unimpeded governance.”

This content was produced with the assistance of AI translation services.