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South Korea’s Moon Ditches More Policy Aides as Economy Falters

South Korea’s Moon Ditches More Policy Aides as Economy Falters

(Bloomberg) -- South Korean President Moon Jae-in ditched two of his top economic aides Friday, adding to the list of officials who have lost their jobs as the president’s policies struggle to show traction in pulling around the economy.

Two years into his term, Moon faces criticism that key agenda items such as boosting the minimum wage and reining in the power of the country’s large conglomerates are failing to deliver the economic growth he promised.

South Korea’s Moon Ditches More Policy Aides as Economy Falters

Moon named Fair Trade Commission Chairman Kim Sang-jo as his new chief policy secretary. Kim, a former civil activist who targeted big conglomerates for their wrongdoings, was a key member of Moon’s election campaign and generator of ideas for some of Moon’s flagship economic policies.

Kim replaces Kim Soo-hyun after little more than seven months in the job.
Analysts say the reshuffle is unlikely to bring significant changes in policy as the new officials are actually old faces who were already key members of the administration.

South Korea’s Moon Ditches More Policy Aides as Economy Falters

“The president is signaling no change in policy stance by putting forward someone who has essentially been the brains behind those policies,” said Park Sang-in, professor of public administration at Seoul National University, referring to the new chief policy secretary Kim. “I see a serious problem in how the president perceives the current state of economy. The economy is doing badly precisely because the overall policy mix isn’t right.”
Moon also appointed Lee Ho-seung, first vice finance minister, as senior presidential secretary for economic affairs. A long time bureaucrat, Lee had previously been tasked with creating more jobs by Moon.

Friday’s move was similar to the axing of aides in November, when again officials appeared to be cast aside at least partly to take responsibility for the lack of success of the government’s policies.

To contact the reporter on this story: Jungah Lee in Seoul at jlee1361@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Jiyeun Lee, Paul Jackson

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