Lee Hyung-il tapped as new economy minister amid concerns over clout and Cheong Wa Dae influence

The nomination of Lee Hyung-il, first vice minister of the Ministry of Finance and Economy, as the Lee Jae Myung administration's second deputy prime minister and finance minister has prompted observers in government circles to conclude that Kim Yong-beom, the presidential chief policy secretary at Cheong Wa Dae, has firmly consolidated his position as the sole hub of economic policymaking.

Lee passed the civil service exam in the 36th cohort, ranking lower than any other minister-level official from the Ministry of Economy and Finance — now the Ministry of Finance and Economy — and Seoul National University's economics department currently serving in the Lee Jae Myung administration. Kim passed in the 30th cohort, FSC Chairman Lee Eok-won in the 35th, and Industry Minister Kim Jung-kwan in the 36th alongside the nominee. Lee was born in 1971, while Kim, Lee Eok-won and Kim Jung-kwan were all born in the 1960s — in 1962, 1967 and 1968, respectively.

That gap has fueled concern that the nominee may lack the gravitas needed to serve as the "economic control tower" responsible for coordinating policy across ministries.

Lee is the first person to be promoted directly from a sitting vice minister post to deputy prime minister — a distinction that holds even when the ministry's predecessor, the Ministry of Economy and Finance, is taken into account.

Previous deputy prime ministers — Kim Jin-pyo, Kim Dong-yeon, Choo Kyung-ho, Choi Sang-mok and Koo Yun-cheol — all had vice ministerial experience, but each went on to hold other positions, such as head of the Office for Government Policy Coordination or National Assembly member, before being appointed deputy prime minister. In some cases they spent nearly eight years in other roles first.

Lee began his public service career at the Ministry of Finance and went on to work at the financial policy bureau of the Ministry of Finance and Economy and the Public Fund Oversight Committee in the immediate aftermath of the Asian financial crisis. He later held key posts within the economic policy bureau — including director of the economic analysis division and director of the general policy division — earning a reputation as a macroeconomics specialist.

Under the Moon Jae-in administration, he served as senior administrative officer in the presidential economic affairs secretariat, director general of the economic policy bureau at the Ministry of Economy and Finance, vice minister for planning, and presidential secretary for economic policy. He continued to be tapped for senior roles under the Yoon Suk Yeol administration — as vice minister for planning and as commissioner of Statistics Korea, now the Ministry of Statistics, a vice-ministerial post — demonstrating a career that has transcended changes in government.

Since the launch of the Lee Jae Myung administration, he has served as first vice minister of the ministry, overseeing key macroeconomic indicators including employment, inflation, the growth rate and real estate, as well as tax reform. He also coordinated with Cheong Wa Dae on a tax code revision bill that drew significant public backlash.

Within the ministry, many regard him as the right person for the job given his policy acumen and character. But concerns persist that the ministry's standing has slipped relative to the Ministry of Planning and Budget, whose influence has grown since President Lee's close ally Park Hong-keun took over as minister. The worry is whether Lee, once confirmed as deputy prime minister, would be able to speak up in official settings against officials who are his seniors.

"Lee has a warm and reasonable personality, and almost everyone — juniors and sunbae alike — likes him," said one official in the Sejong government district. "But those in the know are well aware that he often attended informal meetings chaired by Chief Policy Secretary Kim and reported to him separately from his direct superior, Deputy Prime Minister Koo."

The official added: "Ultimately, I wonder whether the deputy prime minister's role is being reduced to simply following Cheong Wa Dae's instructions. President Lee often spoke negatively about the Ministry of Economy and Finance when he was a candidate, yet he has handed real estate, the stock market, the exchange rate and negotiations with the United States to people from that very ministry."

Meanwhile, Deputy Prime Minister Koo boarded a flight to the United States after a brief commotion over reports that his schedule to attend the G20 finance ministers and central bank governors meeting had been canceled.

But the cabinet reshuffle announcement came on the very day Koo was departing to represent South Korea at the G20 finance ministers meeting, drawing criticism that his participation had been rendered awkward.

"They announced his replacement on the day he was leaving the country as South Korea's finance minister to attend the G20 meeting," another Sejong official said. "Under these circumstances, can he really be expected to hold meaningful bilateral talks with the United States and other major countries and discuss key agenda items?"