[Moon in Office] ICT Ministry expected to remain intact

South Korea’s new President Moon Jae-in is expected to keep intact the current Ministry of Science, ICT and Future Planning, a unit symbolic of ousted President Park Geun-hye’s administration.

In 2013, the ICT Ministry was set up with much fanfare by Park, emphasizing the creative economy, although the drive was criticized as lacking progress. 

Contrary to speculations that the ministry might be divided or dismantled, Moon is not likely to make a significant change in the organization.

“It is not right to get rid of a ministry and create a new one whenever a new administration is formed. It is better to have continuity,” the president said during a meeting with the media at the end of April.

“The new government needs to have a control tower (for the governance of ICT). The current ICT Ministry will have that function,” he added.

He also said earlier that he would change the current Small and Medium Business Administration into the Small, Medium and Startup Business Ministry.

Another of Moon’s pledges related to information and communication technology was to remove the basic rate of telecommunication companies, which is 11,000 won ($10). Currently, telecom carriers charge smartphone users 11,000 won per month in the name of maintaining telecommunication facilities such as networks, repeaters and base stations.

Moon had pledged to remove the basic rate to do away with the burden on households.

Although the idea is welcomed by consumers, industry watchers and telecom operators KT, SKT and LG Uplus said it was not realistic.

“When the annual basic rates in Korea are combined, it stands at 7 trillion won, higher than 5 trillion won, which is the combined operating profits of the three telecom carriers,” an official from one of the three telecom carriers told The Korea Herald.

Yoon Ji-woong, a professor at Kyung Hee University’s administration college, said, “It is doubtful whether the government can control the market price. When the government excessively intervenes in the market, it can create significant confusion,” said Yoon Ji-woong, a professor at Kyung Hee University’s administration college.

By Shin Ji-hye (shinjh@heraldcorp.com)