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Viewing cable 06SEOUL2201, BLUE HOUSE RESHUFFLES CABINET

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Reference ID Created Released Classification Origin
06SEOUL2201 2006-07-03 09:03 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Seoul
VZCZCXYZ0000
RR RUEHWEB

DE RUEHUL #2201/01 1840903
ZNR UUUUU ZZH
R 030903Z JUL 06
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 8800
INFO RUEHBJ/AMEMBASSY BEIJING 0894
RUEHKO/AMEMBASSY TOKYO 0963
RHHMUNA/CDR USPACOM HONOLULU HI
RUALSFJ/COMUSJAPAN YOKOTA AB JA
RHMFIUU/COMUSKOREA J2 SEOUL KOR
RHMFIUU/COMUSKOREA J5 SEOUL KOR
RHMFIUU/COMUSKOREA SCJS SEOUL KOR
RHEHNSC/NSC WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC//OSD/ISA/EAP//
UNCLAS SEOUL 002201 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KS
SUBJECT: BLUE HOUSE RESHUFFLES CABINET 
 
SUMMARY 
------- 
 
1.  (SBU) The Blue House announced today a partial cabinet 
reshuffle, placing in the Ministry of Finance and Economy and 
the Ministry of Education and Human Resources two of 
President Roh Moo-hyun's most trusted advisors, Kwon O-kyu 
and Kim Byong-joon, respectively.  Kwon, who replaces Han 
Duck-soo, in the midst of the KORUS FTA negotiations, is 
considered to be a strong supporter of the FTA.  Critics, 
however, are discontent with Kim's nomination.  Kim drafted 
the controversial real estate tax policy, when he was 
National Policy Chief, which certain Uri legislators argue 
led to the ruling party's defeat in the recent regional 
elections.  Critics also see both Kwon and Kim's nomination 
as Roh continuing to ignore the desires of the public and 
placing his closest aides in senior positions.  END SUMMARY. 
 
2.  (SBU) The five new cabinet members are: 
 
-- Kwon O-kyu, Deputy Prime Minister and Minister of Finance 
and Economy (vice Han Duck-soo) 
 
-- Kim Byong-joon, Deputy Prime Minister and Minister of 
Education and Human Resources Development (vice Kim Jin-pyo) 
 
-- Byeon Yang-kyoon, Chief Secretary for National Planning, 
Blue House (vice Kwon O-kyu) 
 
-- Chang Byung-wan, Minister of Planning and Budget (vice 
Byeon Yang-kyoon) 
 
-- Jun Gun-pyo, Commissioner National Tax Service (vice Lee 
Joo-sung) 
 
THE NEW FINANCE AND ECONOMY MINISTER AND THE FTA 
--------------------------------------------- --- 
 
3.  (SBU) Kwon O-Kyu was named Deputy Prime Minister and 
Minister of Finance and Economy (MOFE), replacing Han 
Duck-soo.  The 54-year-old Kwon, who is currently President 
Roh Moo-hyun's Policy Planning Chief, is a strong supporter 
of a KORUS FTA (NOTE: He was the former chief KORUS FTA 
coordinator at the Blue House.  END NOTE.)  He is expected to 
bring a positive impact on the negotiations.  As Kwon is 
close to Roh, he may have greater influence than outgoing 
MOFE Minister Han Duck-soo, who was considered more of a 
technocrat. 
 
4.  (SBU) Kwon is reputed to have impressed Roh through his 
ability to come up with answers and acceptable courses of 
action in difficult situations.  Critics, however, believe 
that Kwon may have difficulty in controlling the more 
traditional and conservative bureaucrats in the Ministry, 
many of whom do not support some of Roh's economic policies. 
Outgoing Minister Han was seen as a politically-neutral 
expert, who could persuade Roh against what critics call his 
more reckless economic policies.  Some critics also fear that 
with a "confidant" at the helm, MOFE will come under fire 
from Roh's critics for "forcing Roh's policies down the 
nation's throat" rather than being the "corrective" force. 
 
5.  (SBU) Bio data: Kwon is the current Policy Planning Chief 
in the Blue House.  Previously, he served as Secretary for 
National Policy; Deputy Minister of Finance and Economy; 
Director General for Economic Policy of MOFE; and as 
Ambassador to the Korean Mission at the OECD.  Kwon earned 
his B.A. in economics from Seoul National University and his 
Ph.D. in economics from ChungAng University. 
 
EDUCATION MINISTER 
------------------ 
 
6.  (SBU) Kim Byong-joon was named Deputy Prime Minister and 
Minister of Education and Human Resources Development, 
replacing Kim Jin-pyo.  (NOTE: Kim Jin-pyo stepped down as 
the Education Minister over a series of policy failures and a 
massive outbreak of food poisoning at local schools, causing 
over 3,000 students to become sick. END NOTE.)  Kim 
Byong-joon, who had previously served under Roh as Policy 
Planning Chief, is also considered to be one of Roh's closest 
confidants. 
 
7.  (SBU) Critics, however, are discontent with Kim's 
nomination.  Kim drafted the controversial real estate tax 
policy when he was National Policy Chief and made 
inflammatory statements like "the real tax bomb is yet to 
come."  Kim's nomination is particularly unpopular among Uri 
legislators who argue that is was Kim's policies that led to 
the ruling party's defeat in the recent regional elections. 
 
8.  (SBU) Bio data: Kim has served as National Policy Chief 
for the Blue House and as Chairman of the Government 
Innovation and Decentralization Committee.  Kim earned his 
B.A. and Ph.D. in political science from Youngnam University 
and the University of Delaware, respectively. 
 
THE NEW BLUE HOUSE POLICY PLANNING CHIEF 
---------------------------------------- 
 
9.  (SBU) Minister of Planning and Budget Byeon Yang-kyoon 
will serve as the new Policy Planning Chief in the Blue 
House, replacing Kwon O-kyu.  Byeon is regarded as an 
experienced economic bureaucrat based on his experience 
within the Ministry of Planning and Budget.  As Minister and 
Vice Minister, Byeon is credited with leading the nation's 
financial reforms and introducing a new financial management 
system. 
 
OTHER POSTS 
----------- 
 
10.  (SBU) Chang Byung-wan will serve as the new Minister of 
Planning and Budget, replacing his boss Byeon Yang-kyoon. 
Chang is currently serving as the Vice Minister for Planning 
and Budget. 
 
11.  (SBU) Jun Gun-pyo, Deputy Commissioner of the National 
Tax Service (NTS) will become the new NTS Commissioner.  He 
replaces his boss, Lee Ju-sung, who resigned to give his 
subordinates the "opportunity" to lead the NTS.  Critics, 
however, believe that Lee resigned over a real-estate 
speculation scandal involving his wife. 
VERSHBOW