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The missing economic deputy prime minister

Published: 30 Jan. 2026, 00:02

Cho Min-geun

The author is an editorial writer at the JoongAng Ilbo.

“There is no economic deputy prime minister in this government, only two ‘AI deputy prime ministers.’”

That is a remark said to be circulating these days in government circles. One of the two so-called AI deputy prime ministers refers to Bae Kyung-hoon, minister of science and ICT, whose ministry was elevated to deputy prime ministerial rank under the current administration. Given his background at a leading private AI research institute and the close alignment between AI and his ministry’s core mandate, the nickname is understandable. The other figure, however, is Koo Yun-cheol, minister of economy and finance. The fact that he, too, is being called an AI deputy prime minister has a different nuance. It reflects a jab that the economic deputy prime minister is staying quiet on his main responsibilities while focusing his energy on a side interest.

Koo Yun-cheol, deputy prime minister for economic affairs and minister of economy and finance, delivers opening remarks at an expanded macroeconomic and financial meeting held at the Government Complex Seoul in Jongno District on Jan. 29. [NEWS1]

Koo’s strong interest in AI is well known. He has even published a book on the subject and at one point pushed to establish a dedicated AI bureau within his ministry. That effort stalled after objections that there was no need to create a new bureau when AI-related work was already handled by other ministries. Even so, AI was the top keyword in the president’s policy briefing late last year and again in the economic growth strategy released by the Ministry of Economy and Finance earlier this month.

There is no dispute that fostering AI and driving industrial transformation are important. They are issues worthy of mobilizing national resources and staking a strategic bet. But it is hardly the case that Korea’s economy faces no other pressing challenges that both of the government’s only two deputy prime ministers must devote themselves almost exclusively to AI. In the meantime, the “control tower” role traditionally expected of the economic deputy prime minister has either been neglected or taken up by someone else.

Real estate taxation offers a clear example. Recently, President Lee Jae Myung declared via social media that the suspension of heavier capital gains taxes on homeowners with multiple properties would not be extended and would end in May. He described the measure as addressing “unfair benefits stemming from abnormal conditions,” something that must eventually be corrected. One can hold that view. But this is the language of politics. When it comes to sensitive economic policy, the government’s position cannot stop at statements of intent or moral judgment. On real estate in particular, Korea has already experienced under the Moon Jae-in administration how poorly intentions and outcomes can align.

Capital gains taxation affects not only multi-homeowners directly but also housing supply and demand and the flow of money in the broader market. What effects are expected, what side effects are anticipated and what countermeasures are in place? These are questions that require clear explanations from the authorities. A road map is also needed to show how capital gains taxes will be aligned with other real estate taxes, including property holding taxes. Only then can uncertainty be reduced and market participants make rational judgments and choices based on expectations about the future. That, in turn, requires careful coordination among relevant ministries in advance.

Responsibility for articulating this kind of coordinated and refined policy language lies, above all, with the economic deputy prime minister. Yet while the president’s fragmentary social media posts continued, no explanation came from the economic deputy prime minister. Given that the expiration date was already approaching, a policy direction should have been presented no later than the announcement of the year’s economic growth strategy. Instead, the only reference to real estate taxation at the time was a vague note about preparing rationalization measures through research studies and interministerial task forces. It is hardly surprising that expectations spread in the market that the suspension of heavier taxation would continue this year as well.

A farewell sale banner hangs on the exterior wall of the Homeplus Ansan Gojan store in Danwon District, Ansan, Gyeonggi, on Jan. 29, three days before its closure. Homeplus, which is undergoing court-led rehabilitation, is set to suspend operations at five stores by the end of this month, including the Siheung store in Seoul, the Ansan Gojan store in Gyeonggi, the Gyeyang store in Incheon, the Cheonan Sinbang store in South Chungcheong and the Dongchon store in Daegu. [NEWS1]

The weakening of the control tower function cannot be attributed solely to Koo as an individual. With the power over budget allocation stripped away, it may be unrealistic to expect the economic deputy prime minister to wield the same level of coordinating authority as in the past. The problem is that, in the meantime, unresolved tasks are piling up in blind spots where responsibility is dispersed across ministries. The drawn-out struggle to find a solution for the rehabilitation of Homeplus, now dragging on for more than a year, is a prime example. It is a potential flashpoint with serious implications for employment, the retail industry and financial markets, yet the labor ministry, the industry ministry and financial regulators all appear reluctant to step forward.

The honorary title of control tower was not bestowed simply because the position carried great formal authority. Its deeper meaning lies in the sense of responsibility to push forward and coordinate essential but often thankless tasks that may not attract attention. That is precisely the role that now appears to be missing.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.