Seoul to revive trade bureau, create ministry for small firms

The government and ruling Democratic Party of Korea agreed Monday to set up a ministry to shore up small and medium-size enterprises and startups and revive a trade bureau within the industry ministry as part of their administration restructuring plans.

The sides will also upgrade the chief of the agency for veterans affairs to a minister level, while detaching the fire-fighting and maritime police departments from the Ministry of Public Safety and Security in favor of two separate organizations.

The envisioned changes, which are on a smaller scale than expected, reflect President Moon Jae-in’s bid to stabilize administrative functions and curb confusion that may result from a monthslong political turmoil and last month’s snap election.

“We concurred that it is desirable to minimize the scale of the reorganization, considering internal and external difficulties and to ensure stability in state affairs,” Rep. Kim Tae-nyeon, chief of the party’s policy committee, said as he announced the meeting results.

“This overhaul is focused on creating jobs, revitalizing the economy, improving public safety, protecting the nature and ecosystem, and adjusting the standings of the related agencies in line with changes in our society.”

Under the plan, the vice-ministerial Small and Medium Business Administration will be upgraded to a new ministry responsible for overseeing policy for SMEs and venture firms. The agency is also to take over some of the relevant affairs from the Ministry of Trade, Industry and Energy, the Ministry of Science, ICT and Future Planning, and the Financial Services Commission, while handing down the SMBA’s policy-related functions to the ministries.

The Office of the Minister for Trade will also be reinstated in about four years, yet this time within the Ministry of Trade, Industry and Energy, instead of its previous home, the Ministry of Foreign Affairs.

The decision beat widespread anticipations that the office would be transferred back to MOFA in line with Moon’s campaign pledge to boost trade diplomacy and the position of his policy planning advisory panel.

His predecessor Park Geun-hye’s decision to relocate the organization to MOTIE has since been a source of controversy, with critics relaying concerns it would undercut Seoul’s negotiating power in sensitive trade deals especially with an administration like that of US President Donald Trump.

Monday’s surprise move is intended to prop up MOTIE’s capabilities so as to better counter the “fast-evolving trade environment and spread of trade protectionism, Kim noted.

To reinforce public safety and disaster prevention and response capacity, the fire service and the Coast Guard which are currently part of the Ministry of Public Safety and Security will be separated to reintroduce as independent agencies.

The vice-ministerial Ministry of Patriots and Veterans Affairs will be elevated to a ministerial level in a sign of the budding leadership to upgrade its standing and expand support for those who fought on the frontlines for the nation.

With a rapid technological revolution under way, a new, comprehensive advisory panel on science and technology will be formed by incorporating two existing gatherings. A vice-ministerial bureau on science technology innovation is also planned to be installed within the Ministry of Science, ICT and Future Planning.

“We should finalize the plans as soon as possible to help resolve pressing national issues,” Kim said, noting the party will introduce a related bill during this month’s session and requesting cooperation from opposition parties.

By Shin Hyon-hee (heeshin@heraldcorp.com)