7/17 Ministerial Confirmation Hearing - Policies of the Ministry of Economy and Finance, Ministry of Foreign Affairs, and Ministry of Trade, Industry and Energy

Current Status of Minister Confirmation Hearings

On July 17, 2025, the National Assembly is simultaneously conducting confirmation hearings for the ministerial candidates of the Ministry of Strategy and Finance, the Ministry of Foreign Affairs, and the Ministry of Trade, Industry and Energy. This day, positioned in the midst of what is called 'Confirmation Super Week,' serves as a turning point that can gauge the direction of the Lee Jae-myung administration's cabinet operations and provides an important opportunity to identify the focus of future state governance through the policy visions presented by each candidate. In this confirmation hearing, intense discussions are ongoing regarding the candidates' policy philosophies, feasibility, and what strategies South Korea should pursue in the context of the global economy, diplomacy, and industrial order. While some opposition lawmakers have raised family-related suspicions, this does not detract from the essence of the hearings, which center on policy verification. The policies proposed by the candidates contain clear direction and practical approaches across different fields, making them noteworthy.

Candidate Koo Yoon-cheol's Economic Policy

The nominee for the Minister of Economy and Finance, Koo Yoon-cheol, former head of the Office for Government Policy Coordination, is presenting a new turning point for South Korea's fiscal policy. He has publicly mentioned the 'relaxation of fiscal rules' through written responses and media Q&A sessions, emphasizing the necessity of an expansionary fiscal operation. This strategy prioritizes economic recovery and structural innovation over short-term fiscal soundness in light of the global economic downturn and changes in the socioeconomic structure. Candidate Koo is advocating for an advanced expansionary fiscal policy based on AI rather than simple spending increases. He argues that by integrating artificial intelligence throughout the economy, it is possible to recover potential growth rates, restructure employment, welfare, and fiscal revenue systems. In fact, the term 'AI' appeared more than 300 times in his written responses, demonstrating an intention to elevate it beyond mere technological introduction to the core of his governmental philosophy. In terms of tax policy, the direction is clear. Regarding the corporate tax reduction trend implemented by the Yoon Suk-yeol administration, Koo has diagnosed that mid- to long-term adjustments are necessary. He is preparing measures to restore the revenue base by reorganizing corporate tax, income tax, and dividend tax. Notably, his proposed tax reforms aimed at encouraging corporate dividends and contributing to the formation of national assets are evaluated as designs that consider both the resolution of wealth disparity and the activation of investment.

Foreign Policy Strategy of Candidate Cho Hyun

The nominee for Minister of Foreign Affairs, Cho Hyun, the former ambassador to the United Nations, emphasizes practical diplomacy that can respond to the rapidly changing international order surrounding the Korean Peninsula. He proposes to base diplomacy on the Korea-U.S. alliance while specifically suggesting ways to expand Korea's diplomatic space through multilateralism and strategic flexibility. Regarding concerns such as the withdrawal of U.S. troops from South Korea, Cho has taken a firm stance. He dismissed the idea by stating, "There are no discussions about reducing U.S. troops in South Korea," and expressed that maintaining trust through realistic adjustments regarding defense cost-sharing between the U.S. and South Korea is crucial. He argues that South Korea should evolve from being a mere passive ally to a strategic partner that contributes to the alliance and coordinates directions together. On the North Korean nuclear issue, he emphasizes establishing peace through gradual dialogue and the restoration of mutual trust, rather than simple deterrence or severance. This aligns with the policy direction of the Lee Jae-myung government towards North Korea, and there is a strong indication that the Ministry of Foreign Affairs should play a coordinating role in practical negotiations and cooperation with the international community.

Kim Jeong-gwan's industrial policy

Kim Jung-kwan, the former CEO of Doosan Enerbility and candidate for Minister of Trade, Industry and Energy, is revealing a comprehensive policy plan that integrates industrial structure innovation, trade strategy, and energy supply plans. The first policy to draw attention is the introduction of the "Korea version of the IRA." Inspired by the U.S. Inflation Reduction Act (IRA), it aims to implement a production tax credit system that provides substantial tax incentives to the domestic semiconductor and secondary battery industries. This is not merely a subsidy but is designed to directly support the competitiveness of national strategic industries by offering fair benefits linked to production scale. He emphasizes that industrial policy, trade policy, and energy policy should not be separated and argues for the need for organic coordination among these three axes. In fact, he explained a strategy to connect R&D and commercialization of AI, bio, and materials industries, which have emerged as new growth industries, to shift towards an export-driven industry.

The Importance of Confirmation Hearings

The confirmation hearing on July 17, 2025, is not merely a venue to evaluate three ministerial candidates it is also a stage to sketch out the framework for South Korea's fiscal, diplomatic, and industrial strategies for the next five years. The candidates' approaches—Goo Yoon-cheol's expansionary fiscal policy and technology-driven economy, Cho Hyun's pragmatic balanced diplomacy, and Kim Jong-kwan's integrated industrial strategy—are all clear in their specificity and direction. In an era where policy coherence and responsiveness to reality are emphasized, the approaches of the three candidates present practical alternatives to issues directly connected to the lives of the people, transcending mere partisan conflicts. While there are allegations raised by some opposition parties, these are merely secondary elements that obscure the essence of the hearing the core lies in the policies. What the public expects is not political strife but alternatives, and whether the policies they propose can stand at that starting point will determine the essential success or failure of the confirmation hearing.