South Korea Finance Ministry Split 2026: A New Economic Command Center
South Korea's Ministry of Economy and Finance will split into two separate ministries on January 1, 2026. Minister Koo Yun-cheol vows stability during this major government reorganization.
One economic powerhouse is becoming two, but the focus on people's livelihoods remains steadfast. According to Yonhap, Finance Minister Koo Yun-cheol pledged on December 31, 2025, that there'll be no disruption in economic support as his ministry undergoes a massive reorganization. Starting January 1, 2026, the current ministry will be divided into the Ministry of Finance and the newly created Ministry of Planning and Budget.
The South Korea Finance Ministry Split 2026 Details
The reshuffle places the new Ministry of Planning and Budget under the Prime Minister's Office to lead the government's fiscal planning. Veteran economist Lee Hye-hoon has been nominated to head this new entity, though her appointment faces scrutiny due to past controversial remarks regarding martial law. Minister Koo emphasized that he's standing at a new starting line, focusing on managing the macroeconomy and narrowing the wealth gap.
This reorganization aims to refine the government's approach to supporting small and medium-sized enterprises (SMEs) and the self-employed. By separating budget planning from broader financial policy, the government hopes to increase fiscal transparency. Despite the structural shift, Koo assured that the support for vulnerable populations will be prioritized to ease socio-economic polarization.
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