ADVERTISEMENT

South Korea's Moon sacks finance minister, policy chief

Finance minister Kim Dong-yeon and presidential chief of staff for policy Jang Ha-sung had both been replaced, top Blue House spokesman Yoon Young-chan said in a televised statement.

South Korean President Moon Jae-in’s handling of the economy has become increasingly controversial, contributing to falling poll ratings

The pair had reportedly been at odds with each other over how to address the situation.

Moon's global profile has been dominated by his role in the rapid diplomatic rapprochement with nuclear-armed North Korea but at home his handling of the economy has become increasingly controversial, contributing to falling poll ratings.

His administration has steeply raised South Korea's minimum wages, cut working hours and converted temporary staff to permanent in a series of redistributive moves it says will lead to what it calls "income-led growth".

ADVERTISEMENT

It is a marked change from the growth model of the past, driven by exports and investments by the South's major companies, that has seen the South rise to become Asia's fourth-biggest economy.

And critics say the moves have had the opposite effect to what was intended, worsening the situation of many low-income earners and seeing small businesses cut staff, while big firms hold back investment in the face of tougher regulation.

Last month, the central Bank of Korea cut its growth forecast for this year to 2.7 percent, down from the 3.1 percent achieved in 2017.

And unemployment jumped 0.4 percentage points to 3.8 percent in the third quarter, with youth joblessness at its highest since 1999 at 9.4 percent.

Finance minister Kim had called for redistributive policies to be rowed back, including minimum wage hikes, while Jang wanted to stick with pursuing equality.

ADVERTISEMENT

Kim was replaced by Hong Nam-ki, a veteran bureaucrat, while Jang was succeeded by Kim Soo-hyun, currently Moon's top social affairs adviser.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Sanwo-Olu opens 'Sunday market' on Good Friday for Easter shopping

Wike thanks Tinubu for the opportunity to serve

Wike thanks Tinubu for the opportunity to serve

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Tinubu’s aide distributes food items to 1,750 persons in FCT, Kwara

Court grants senator accused of forging NYSC certificate ₦50m bail

Court grants senator accused of forging NYSC certificate ₦50m bail

BREAKING: Delta monarch declared wanted by military surrenders to police

BREAKING: Delta monarch declared wanted by military surrenders to police

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Renowned Canada-based Nigerian playwright, Oguntokun is dead

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Kaduna Gov grants scholarship to 137 rescued schoolchildren, son of late teacher

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT