Cabinet reshuffle follows worsening property sentiment, but policy direction likely to continue

The government changed the officials overseeing taxes and housing supply after South Korea’s property market produced an unwelcome combination of trends: stock prices fell while home sales prices, deposits and monthly rents all rose in the Seoul metropolitan area.

President Lee Jae Myung nominated First Vice Finance Minister Lee Hyeong-il as deputy prime minister and finance minister, and Second Vice Land Minister Hong Ji-sun as land minister. The appointments came amid controversy over real estate tax reform and declining public sentiment following the June 3 local elections.

Lee Hyeong-il is from Daegu and entered public service through the 36th national civil service examination while studying economics at Seoul National University. Under the Moon Jae-in administration, he worked as a presidential office administrator and deputy minister before serving as senior secretary for economic policy. The Yoon Suk Yeol administration appointed him head of Statistics Korea. Lee Jae Myung’s government later named him first vice finance minister.

The choice of serving vice ministers for the top posts prompted sharp criticism from opposition parties. They described the reshuffle as “a personnel change without any intention of changing policy.” The appointments therefore offered a measure of renewal while signaling that the government’s broader policy line may remain intact.

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A personnel change without any intention of changing policy.