As the second cabinet of the Lee Jae-myung government takes shape, newly appointed minister candidates have expressed their commitment to accelerating national policy initiatives. They face complex challenges, including boosting potential growth rates, increasing housing supply, easing regulations, and reforming the criminal justice system.
On August 30, the newly nominated ministers outlined their policy directions during their first public appearances. Lee Hyung-il, nominated as Deputy Prime Minister and Minister of Economy and Finance, identified sustaining economic growth and creating new investment opportunities as his top priorities. He stated, "Our economy has reached a point where it needs new challenges for a major leap forward beyond recovery and normalization," and pledged to lay the groundwork for a rebound in potential growth rates through three major mega-projects.
Lee's immediate tasks include translating the goals of achieving a 3% potential growth rate, becoming one of the top four global exporters, and raising per capita income to $50,000 into tangible results. He emphasized the need for substantial investments in mega-projects centered on semiconductors, physical artificial intelligence (AI), and AI data centers.
Another key challenge is to spread the benefits of growth from the semiconductor and export sectors to domestic consumption and livelihoods. This involves utilizing the policy leeway gained from the semiconductor boom to address polarization and support livelihoods, particularly in response to high oil prices and living costs exacerbated by instability in the Middle East. Developing policies that small businesses and vulnerable populations can feel is expected to be a significant test.
Hong Ji-sun, the nominee for Minister of Land, Infrastructure and Transport, emphasized the need for 'supply execution capability.' She aims to quickly provide quality housing in preferred locations and ensure that government-announced housing units progress to actual construction and occupancy. Hong stated, "I will focus on swiftly supplying quality housing in preferred locations and pay close attention to housing stability for young people and newlyweds."
The first test will be housing supply in downtown Seoul. Minister of Land, Infrastructure and Transport Kim Yoon-deok and Seoul Mayor Oh Se-hoon have struggled to find common ground on utilizing Yongsan Park. The city has proposed plans for youth housing and physical AI complex development using the Tancheon Water Recycling Center and Eastern Road Construction Office, while easing zoning regulations for redevelopment projects has emerged as a new negotiation point.
Future negotiations will largely fall to Hong. While she refrained from commenting on specific sites, she expressed her intention to collaborate with the Seoul government, drawing on her extensive experience working in local government. The follow-up work to the August 13 supply measures is also urgent.
Lee So-young, the nominee for Minister of SMEs and Startups, identified irrational regulatory reform as her first task. She stated, "If appointed as minister, I will approach my role as a 'regulatory reform minister' beyond just supporting small and venture businesses, ensuring that incidents like 'Tada' do not happen again."
Lee aims to reflect on regulatory methods and focus on improving regulations that hinder new industries from entering the market. She emphasized that the Ministry of SMEs and Startups will not remain passive in conflicts between new and existing industries but will actively engage in market entry and stakeholder negotiations.
This regulatory innovation aligns with the Lee Jae-myung government's 'National Startup Era' policy, which seeks to position entrepreneurship as a new growth engine for the national economy. Establishing stable projects for everyone to start a business and discovering innovative entrepreneurs are also necessary. Spreading the benefits of the export-driven boom to small and medium enterprises and small businesses is another challenge.
Kim Seung-won, the nominee for Minister of Justice, prioritized the stable establishment of a new criminal justice system. He stated, "Ensuring that the new criminal justice system is well established in South Korea after 70 years is my most urgent mission," and pledged to pass various bills that the Ministry of Justice needs to supplement while gathering social consensus.
This comes as the abolition of the prosecution office and the establishment of the Public Prosecution Service and the Serious Crimes Investigation Agency are set to take place on October 2. Kim's role will involve organizing new laws following the abolition of direct investigative powers and supplementary investigative powers of prosecutors, as well as establishing the organizational and personnel structure of the Public Prosecution Service.
He will also need to meticulously coordinate the procedures for transferring cases and cooperating in investigations among the Public Prosecution Service, police, and Serious Crimes Investigation Agency. Additionally, he is tasked with minimizing confusion during the transfer of existing prosecution records and personnel to the new organization.
Former Deputy Commander of the ROK-U.S. Combined Forces Command, Kang Shin-cheol, has been nominated as the Minister of National Defense and is expected to return soon to prepare for his confirmation hearing. The Ministry of National Defense has begun forming a task force to prepare for Kang's confirmation hearing.
Kang's primary challenge will be the transfer of wartime operational control. The government is continuing discussions with the U.S. with the goal of transferring operational control during his term. The upcoming ROK-U.S. Security Consultative Meeting (SCM) will be crucial for finalizing the verification of the Future Combined Command's Full Operational Capability (FOC) and specifying the timeline for the transfer. The government plans to report the results of the FOC verification conducted through joint exercises to the SCM and seek approval from the defense ministers of both countries to determine the target timeline for the transfer.
Establishing the National Military Academy, which integrates the Army, Navy, and Air Force academies, is also an immediate task. While the government aims to enhance jointness and improve military education efficiency, there has been pushback from various military branches and the reserve community. How Kang, an Army Academy graduate, navigates the opposition from reserve forces and internal military disagreements regarding the academy integration will be closely watched.
Yong Hye-in, the nominee for Minister of Gender Equality and Family, will begin her first day at the confirmation hearing preparation office on September 2, where she will share her thoughts on her nomination and start preparing for the hearing. Yong has emphasized care and family policies as her top priorities upon taking office.
A member of the 21st and 22nd National Assembly, Yong has consistently advocated for reducing childcare burdens and ensuring diverse family forms since entering the legislature. The Cohabitation Partners Act, which allows two adults to enter a cohabitation relationship and receive legal protection without marriage, is also a major focus for her. As a young female minister, addressing gender equality conflicts for the younger generation will be a key task. The leadership differences with the inaugural minister, Won Min-kyung, a women's rights attorney known for her expertise, will also be a point of interest. Additionally, ensuring the successful implementation of the employment equality disclosure system set to take effect next year is another challenge.
* This article has been translated by AI.
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