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Korea’s 73 days without a president

Published: 25 Feb. 2025, 00:01

Cho Min-geun

The author is the business and industry news editor at the JoongAng Ilbo.

“Contrary to concerns, fears over political uncertainty were not as pronounced. The prevailing view was that Korea was handling the situation well within the framework of its Constitution and democratic norms. Unlike other countries where political deadlock has led to fiscal crises, Korea was seen as an exception.”

This was the assessment shared by Choi Jong-ku, Korea’s ambassador for International Financial Cooperation, after holding economic briefings in Hong Kong and Singapore earlier this month. The immediate concern had been financial market stability following martial law and the impeachment of the president, yet overseas investors and credit rating agencies remained remarkably unshaken. That, at least, was a relief.

Ambassador Choi is a seasoned bureaucrat who previously served as chairman of the Financial Services Commission, spending most of his public career in international finance. His return to duty — this time as an unpaid honorary ambassador — came at the personal request of acting President Choi Sang-mok. Ambassador Choi is set to travel to New York and London next month for additional briefings.

A similar diagnosis comes from Choi Joong-kyung, former minister of Knowledge Economy, now serving as ambassador for International Investment Cooperation. He attributes the stability to Korea’s maturity as a society and economy, having already weathered two presidential impeachments, the Asian financial crisis and the global financial meltdown.

Acting President and Minister of Economy and Finance Choi Sang-mok speaks during an economic ministerial meeting at the government complex in central Seoul on Jan. 2. [MINISTRY OF ECONOMY AND FINANCE]

As of Jan. 25, it has been 73 days since President Yoon Suk Yeol was suspended from office. With Prime Minister Han Duck-soo also impeached, the nation has been under Choi Sang-mok's acting presidency for 60 days. In this unprecedented power vacuum, both domestically and internationally, much has transpired. The Trump administration in the United States has launched a full-scale trade war, imposing punitive tariffs. The Muan Jeju Air disaster and other domestic accidents have raised concerns over safety oversight. Political polarization has deepened, with bitter clashes between rival factions growing increasingly acrimonious.

Yet, despite these challenges, Korea has avoided descending into chaos. Daily economic functions continue to operate without major disruption. The foreign exchange market and stock prices, once shaken by political uncertainty, are gradually stabilizing — a testament to the country’s institutional resilience.

This moment underscores a fundamental truth: Korea is not so easily unraveled.

Unlike the overextended presidential office of the past, the current acting government is running with minimal staff, relying primarily on the Ministry of Economy and Finance. Though not as formidable as in previous eras, the Finance Ministry remains Korea’s most elite government agency. It has weathered countless crises, managing budgets and economic policies with a level of expertise few other institutions possess.

Interestingly, some bureaucrats say that the absence of presidential intervention has, in certain respects, improved governance. With fewer political directives, policies no longer face distortion due to presidential overreach.

Take, for example, the “Great Whale Project”, a controversial offshore energy exploration initiative led by the Ministry of Trade, Industry and Energy. Initially, officials expected the government to delay an announcement until May or June, when detailed analysis would be available. However, the ministry promptly released preliminary findings, stating that the project was not economically viable.

This decision, reportedly made by acting President Choi, was based on a simple rationale: Since the findings would eventually become public, delaying the announcement would only fuel unnecessary controversy. While not the positive outcome some had hoped for, the move reduced market uncertainty. Now, attention must turn to depoliticizing resource development efforts, ensuring that energy projects are guided by economic pragmatism rather than partisan agendas.

Meanwhile, government overreach in the private sector — once a hallmark of Korean governance — is also beginning to recede.

The past 60 days have provided a paradoxical lesson: The country’s stability does not hinge on the presidential office or the National Assembly, both of which remain paralyzed by political infighting.

Instead, the true pillars of resilience are Korea’s well-trained bureaucracy and globally competitive businesses.

The experience also offers a sobering reminder of what the presidency and legislature should be focusing on. Beyond merely managing crises and maintaining the status quo, Korea needs strategic leadership to navigate the rapidly changing global landscape.

The lack of a decisive national leader is being keenly felt in international negotiations, trade disputes and critical structural reforms, such as the urgent overhaul of the pension system. Such challenges require not just bureaucratic expertise, but also bold political leadership — leaders who can break through policy inertia, persuade key stakeholders and unify competing interests.

The relative calm observed in global markets should not breed complacency. As Ambassador Choi Jong-ku noted, international credit rating agencies have so far held off on downgrading Korea’s rating. However, their stance comes with a caveat: “As long as the political deadlock does not drag on indefinitely.”

Time is running out. The responsibility for restoring stability and direction now falls squarely on the political leadership.

Translated using generative AI and edited by Korea JoongAng Daily staff.