[Editorial] Cabinet Reshuffle Should Be an Opportunity for Policy Renewal, Not Just a Shift in Political Momentum

President Lee Jae-myung announced on the 30th a cabinet reshuffle that replaced ministers across six ministries, including appointing Lee Hyung-il, currently First Vice Minister of the Ministry of Economy and Finance, as Deputy Prime Minister and Minister of the Ministry of Economy and Finance, and Hong Ji-seon, currently Second Vice Minister of the Ministry of Land, Infrastructure and Transport, as Minister of the Ministry of Land, Infrastructure and Transport. While the scale is substantial, the economic team includes the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, and the Ministry of SMEs and Startups, while ministers at the Ministry of Justice and the Ministry of National Defense—both facing numerous pressing issues—were also replaced, suggesting awareness of the declining trend in national approval ratings. Although the administration selected practical bureaucrats for several ministerial positions to ensure policy continuity, it must carefully examine its past missteps that have exacerbated public dissatisfaction.

Within the government and ruling party, the primary causes cited for recent public backlash have been the tax reform proposal and real estate policies. In this reshuffle, the heads of the key ministries responsible for these policies—the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport—were replaced. However, Kang Hun-sik (President), Chief of Staff to the President, drew a line by stating that the ministerial changes do not constitute an evaluation of current officeholders, and since the replacements were drawn from vice ministers of those respective ministries, the administration has distanced itself from any comprehensive revision of policy direction.

However, the current situation is far from easy. Last month, youth unemployment rose by its largest margin in five and a half years, and despite growth forecasts hovering around 3%, the warmth of economic recovery remains elusive as the shadow of K-shaped polarization deepens. The so-called "shut up and supply" (닥공) approach, touted as a solution to stabilize housing prices, has failed to gain momentum, while real estate tax reform proposals remain entangled amid demand-suppression measures involving loan restrictions and taxation. With the full implementation of the revised Criminal Procedure Act set to abolish supplementary investigative powers for prosecutors, reports of inadequate police investigations due to concentrated authority continue to surface daily.

Amid these circumstances, beyond deliberations on the budget bill and tax reform proposal, ministerial confirmation hearings triggered by the cabinet reshuffle are expected to emerge as a major National Assembly agenda item after September. While the presidential office and ruling party emphasize legislative speed, coordination between the government and opposition parties is more necessary than ever. The tax reform proposal, which the government is expected to submit to the National Assembly largely in its original form, requires significant revisions, including adjustments to the policy of strengthening taxation on non-resident single-homeowners. Solutions must also be found regarding housing supply measures, where tensions have arisen between the Seoul Mayor and the Minister of the Ministry of Land, Infrastructure and Transport. To avoid criticism that the reshuffle is merely a political maneuver for shifting momentum, the administration must listen to opposition voices and move beyond blind faith in majority rule. Taking this opportunity, it should empower ministers to address public perceptions that "only Cheong Wa Dae is visible, while ministries remain unseen."