A new budget management office is likely to launch without a leader on January 2, 2026, according to government officials. The office will oversee next year's 727.9 trillion won ($494.29 billion) budget and assume key functions from the Ministry of Economy and Finance. It will operate under the Prime Minister’s Secretariat as part of President Lee Jae Myung’s reform plan.
The new budget management office, roughly translated as the Ministry of Planning and Budget, will oversee next year's 727.9 trillion won ($494.29 billion) budget. It takes over key functions from the Ministry of Economy and Finance, including drafting and allocating the budget as well as establishing medium- to long-term national development strategies. This is the first time since 2008 that a budget-managing body will operate separately from the finance ministry.
The office will function under the Prime Minister’s Secretariat, aligning with President Lee Jae Myung’s reform plan. This move addresses criticisms that the Ministry of Economy and Finance wielded “excessive power” over other ministries through its budgetary control. However, with less than a month until launch, no leader has been nominated, sparking concerns about a smooth start amid substantial responsibilities.
“Not a single candidate has been nominated with less than a month before its launch, fueling the possibility that it may go without a leader,” a government official said on condition of anonymity. Potential candidates include Second Vice Minister of Economy and Finance Lim Ki-keun, Presidential Fiscal Planning Advisor Ryu Deok-hyun, and Rep. Ahn Do-geol of the ruling Democratic Party of Korea.
Another anonymous official described the situation as “grave,” highlighting the challenge of balancing an expansionary fiscal stance with fiscal soundness. Next year’s budget represents an 8.1 percent increase from this year to spur economic growth, but national debt is projected to surpass 500 trillion won during President Lee’s five-year term ending in June 2030.
Even if a nomination occurs, the position may remain vacant at launch due to the National Assembly’s confirmation process, which must conclude within 20 days. Officials are working to mitigate any operational delays.
