{"id":2205147,"date":"2024-05-17T17:41:45","date_gmt":"2024-05-17T08:41:45","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205147"},"modified":"2024-05-20T17:01:05","modified_gmt":"2024-05-20T08:01:05","slug":"choo-kyung-ho-from-finance-minister-to-ruling-party-floor-leader","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/choo-kyung-ho-from-finance-minister-to-ruling-party-floor-leader\/","title":{"rendered":"Choo Kyung-ho: From finance minister to ruling party floor leader"},"content":{"rendered":"

Choo Kyung-ho, a veteran economist and seasoned politician, was recently elected as the ruling People Power Party\u2019s (PPP) floor leader, highlighting his influence and respect from lawmakers across the party\u2019s different factions.<\/p>\n

During his extensive four-decade-long career, he has held various positions in past administrations and the National Assembly. Most recently, he served as the Yoon Suk-yeol administration\u2019s finance minister.<\/p>\n

Choo faced several controversies throughout his tenure, including his reported involvement in the 2003 Lone Star takeover of the Korea Exchange Bank (KEB) and his state interventionist remarks that occasionally attracted negative public attention.<\/p>\n

Despite these issues, Choo\u2019s constituents, peers and subordinates largely regard him as a \u201creasonable\u201d and exemplary economy and finance expert, as well as a dedicated public servant who consistently pursued innovative reform within the administrative and parliamentary offices he held.<\/p>\n

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Choo Kyung-ho serving as vice finance minister in 2013 | Image: ROK Ministry of Economy and Finance<\/p><\/div>\n

DYED-IN-THE-WOOL BUREAUCRAT<\/strong><\/p>\n

Choo\u2019s career in public service began in 1981 when he passed the administrative exam. He gained recognition as a \u201chybrid-type bureaucrat,\u201d demonstrating expertise in macroeconomics, international economics and domestic finance \u2014 a rare combination among economic bureaucrats at the time.<\/p>\n

Choo started his career at the Ministry of Government Administration and Home Affairs and the Environmental Agency. In 1987, he transferred to the Economic Planning Board \u2014 the finance ministry\u2019s predecessor, where he held various roles, including directing price policy and foreign economic affairs.<\/p>\n

Choo served under both progressive and conservative governments throughout his career, starting with the Kim Dae-jung administration. In 1998, he joined the Presidential Transition Committee and later worked in the Blue House\u2019s economic affairs secretary\u2019s office and policy planning office. The government later dispatched him to the International Bank for Reconstruction and Development (IBRD) as a senior economist.<\/p>\n

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Choo Kyung-ho at the South Korea-International Monetary Fund conference held in Seoul, Dec. 2023 | Image: ROK Ministry of Economy and Finance<\/p><\/div>\n

Upon returning to the Ministry of Finance in 2002, Choo was sent to Paris in 2006 to serve as the minister-counselor at the ROK permanent delegation to the Organization for Economic Cooperation and Development (OECD).<\/p>\n

After returning from the OECD, he held key financial positions, such as Director of the Banking System Department and Director of Financial Policy.<\/p>\n

During this period, Choo collaborated with then-finance minister Han Duck-soo to manage the controversial sale of Korea Exchange Bank to Lone Star and lead the restructuring of savings banks as Vice Chairman of the Financial Services Commission.<\/p>\n

Although this involvement in the Lone Star case remains his most significant controversy, Choo has openly acknowledged his role and expressed no regrets about his decisions.<\/p>\n

Under the Lee Myung-bak administration in 2010, Choo was appointed as the Presidential Secretary for Economic and Financial Affairs and Director of the Emergency Economic Situation Room. He played a key role in formulating policies to respond to the 2008 global financial crisis and contributed to Seoul\u2019s successful bid to host the G20 summit.<\/p>\n

He then served as the vice chairman of the Financial Services Commission before transitioning to the Park Geun-hye administration in 2013.<\/p>\n

In the Park administration, Choo served as the first vice minister of finance and reportedly drafted and led the implementation of the high-profile \u201cThree-Year Plan for Economic Innovation,\u201d one of Park\u2019s key pledges at the time. However, the plan faced criticism from figures like Kim Chong-in<\/a> for its lack of more aggressive corporate and economic democratization reforms.<\/p>\n

Choo held the position until 2014 when he was appointed head of the Office for Government Policy Coordination. He served under all of Park\u2019s prime ministers.<\/p>\n

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Choo Kyung-ho attends a London Stock Exchange market opening ceremony, Nov. 2023 | Image: ROK Ministry of Economy and Finance<\/p><\/div>\n

ECONOMIST LEGISLATOR<\/strong><\/p>\n

Choo began his legislative career in 2016 when he was elected to represent Daegu\u2019s Dalseong district, securing 48% of the vote. He aligned with the pro-Park Geun-hye faction within the Saenuri Party, taking over her previous district. His alignment became further evident from his opposition to Park\u2019s impeachment and his reported participation in some right-wing rallies that protested against the impeachment.<\/p>\n

Despite being a first-term lawmaker, Choo\u2019s party appointed him as the head of the influential Yeouido Institute, the party\u2019s think tank, in March 2017, following Park\u2019s impeachment. He also served as vice-chairman of the policy committee in his first year and later as vice-chairman of the special committee on jobs, demonstrating the respect he earned regardless of factions and his relatively short time in party politics.<\/p>\n

Choo demonstrated exceptional legislative activity, with an over 80% bill passage rate \u2014 approximately four times higher than the average for lawmakers. His legislative efforts primarily focused on finance and the economy, including initiatives such as the Regulatory Free Zone Act, amendments to the National Finance Act, Corporate Tax Law, Minimum Wage Law, Labor Standards Act and Special Taxation Limitation Law.<\/p>\n

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Choo Kyung-ho (second from left) visits SK Hynix | Image: ROK Ministry of Economy and Finance<\/p><\/div>\n

Reelected in 2020 with an increased vote share of 67%, his influence as a lawmaker grew. He introduced a bill on fiscal rules in the 21st National Assembly to maintain the national debt-to-GDP ratio below 45% and the fiscal deficit within 3%, emphasizing his commitment to fiscal responsibility amid the COVID-19 pandemic.<\/p>\n

Choo\u2019s legislative contributions consistently earned him recognition, with top-tier rankings in the Lawmaker Effectiveness Award for 2019 and 2020. After serving as finance minister under the Yoon administration, he was elected to serve a third term in last month\u2019s parliamentary elections, securing 75% of the vote.<\/p>\n

This made him the only candidate from the PPP to secure over 100,000 votes despite the party\u2019s landslide loss.<\/p>\n

As a leading voice against the main opposition Democratic Party\u2019s (DP) push for expansive fiscal measures, including a proposal for a $180 (250,000 won) universal cash voucher program, Choo secured the floor leader position with an overwhelming 70 votes among 102 incoming PPP lawmakers.<\/p>\n

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Party floor leader Choo Kyung-ho holds a meeting with newly-elected People Power Party lawmakers, May 2024 | Image: People Power Party<\/p><\/div>\n

MODERATE REFORMER<\/strong><\/p>\n

Choo joined then-President-elect Yoon Suk-yeol\u2019s handover committee in 2022 and became the Yoon administration\u2019s first finance minister. The DP agreed to pass the confirmation hearing report on Choo, making him one of the few Cabinet officials to receive such approval.<\/p>\n

Throughout his tenure as finance minister, which also included the role of deputy prime minister, Choo demonstrated proactive and responsive leadership amid South Korea\u2019s persistent economic challenges. However, his tenure was not without controversy.<\/p>\n

Upon assuming office, Choo prioritized addressing the economic \u201cperfect storm\u201d of high inflation, interest rates and exchange rates, along with concerns about a twin deficit in the country\u2019s current account and fiscal balances.<\/p>\n

Choo\u2019s policy initiatives included introducing a record-high supplementary budget of about $44 billion (60 trillion won) to mitigate the economic difficulties self-employed individuals faced due to the pandemic.<\/p>\n

Choo claimed the budget was strategically funded through surplus tax revenues and expenditure restructuring without issuing new government bonds.<\/p>\n

However, critics accused him of hypocrisy for supporting this large supplementary budget. Choo was a vocal critic of the Moon administration’s fiscal policies, which also sought to stimulate the economy via supplementary budgets.<\/p>\n

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Choo Kyung-ho at the 11th emergency economy and people’s livelihood meeting with President Yoon Suk-yeol, Oct. 2022 | Image: ROK Presidential Office<\/p><\/div>\n

In June 2022, Choo was criticized for urging large corporations to \u201crestrain\u201d wage increases, warning that high wage trends could exacerbate the wage gap with small businesses, potentially leading to increased social tensions and inflation.<\/p>\n

Labor unions and opposition lawmakers criticized his remarks, arguing that it reflected excessive government intervention in the private sector while overly favoring employers and reflecting an \u201coutdated\u201d economic strategy that ignores workers\u2019 struggles amid rising inflation.<\/p>\n

Throughout his tenure, Choo made a considerable effort to transform the finance ministry\u2019s workplace culture, where he had worked for a significant portion of his career before becoming a lawmaker.<\/p>\n

For instance, he implemented several key changes to reduce workplace stress and enhance employee satisfaction, such as abolishing the long-standing practice of forcing ministry staff to work overnight during government audits. He also introduced more family-friendly policies, including flexible working hours and early departure provisions for staff with young children.<\/p>\n

Recognized for his proactive approach to communication and commitment to creating a more supportive work environment, finance ministry staff voted Choo a \u201cmodel boss\u201d \u2014 an annual accolade rarely given to a serving minister.<\/p>\n

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Choo Kyung-ho at the inaugural emergency economy and people’s livelihood meeting with President Yoon Suk-yeol, July 2022 | Image: ROK Presidential Office<\/p><\/div>\n

WHY HE MATTERS NOW<\/strong><\/p>\n

Despite being a three-term lawmaker for the upcoming 22nd National Assembly, Choo is not considered a presidential hopeful, as his public image more closely resembles that of a calm and capable bureaucrat rather than a widely popular political leader.<\/p>\n

However, he will likely remain relevant in South Korean politics in the near future. Considering his background and the offices he has held, future conservative governments could appoint him as prime minister.<\/p>\n

As the PPP\u2019s new floor leader, Choo is expected to concentrate on bills and parliamentary debates that support traditional conservative fiscal and economic policies to rehabilitate the party\u2019s public image. For instance, he will likely lead the party\u2019s opposition to the financial investment income tax and to raising other forms of corporate taxes.<\/p>\n

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Choo Kyung-ho at a meeting about inflation, sitting in front of the headshots of the former heads of the finance ministry’s previous incarnations, Oct. 2023 | Image: ROK Ministry of Economy and Finance<\/p><\/div>\n

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BIO: CHOO KYUNG-HO (\ucd94\uacbd\ud638, \u79cb\u6176\u93ac)<\/strong><\/p>\n

Age:<\/strong> 63, born in Daegu<\/p>\n

Education:<\/strong><\/p>\n