hankyoreh

Criticism of President Lee Myung-bak’s unimpressive Cabinet shuffle and specifically his decision to keep Strategy and Finance Minister Kang Man-soo is increasing. Business leaders and market observers believe Kang is responsible for failed economic policy and it makes no sense that he is being kept around. Meanwhile, the civil servants in Gwacheon ask how working-level functionaries can do their work when the vice minister gets replaced instead of the minister.

The Democratic and other opposition parties are thinking about submitting a bill to the National Assembly calling for Kang to be removed from his position. Even in the ruling Grand National Party they are shaking their heads, saying, “something’s wrong.” The former GNP policy committee chairman says Lee lost an opportunity to make a new beginning. Even Prime Minister Han Seung-soo notes that the media’s reaction to the Cabinet shuffle “is not all that favorable.”

The Blue House says it replaced the man under Kang, the vice minister, because “it is hard to keep replacing the minister, and because the vice minister was ultimately responsible for exchange rate policy at the working level.” However, the overwhelming view in the civil servant and financial worlds is that responsibility for that failed policy lies with Kang. This is someone who, from the very start of his tenure, made it clear he intended to keep the exchange rate high. “No country leaves the exchange rate entirely to the market,” he said. “We need to narrow our trade deficit, even if it means sacrificing prices to some degree.” Officials under him have said similar things in support, but it was Kang who was filled with determination and conviction.

Which is why it makes no sense to blame the vice minister for that failed policy. Kang has the most responsibility to bear. The Government Organization Act says the vice minister is supposed to “aid the minister and do the work of the ministry.” Even if the vice minister was pushing for a certain policy, the minister is ultimately responsible and therefore must be made to bear responsibility.

The government says that for the second half of this year it is going to concentrate economic policy on stabilizing prices and on the livelihoods of the common people. The natural thing to do when changing the tone of policy would be to change the captain of your economic team. When an economic team obsessed with growth talks about stability, it is inevitable that the market gets a little confused. The market has already lost faith in Kang, and that is a big burden for our economy to bear.

Blue House staffers are also said to have recommended that Kang be replaced. There is no way Kang sacrificed his vice minister because he wanted to stay around. Rather, it is likely that President Lee decided to keep Kang on board because his philosophy of people management is that people grow when they’ve suffered, and because Kang is a political comrade and fellow member of Somang Church. The market is shaking its head at that decision. At this point the right thing for Kang to do would be to decide on his own to make an exit, in a way becoming of an elite bureaucrat who still has his pride.

Please direct questions or comments to [englishhani@hani.co.kr]