Acting President and Finance Minister Choi Sang-mok (2nd from L) speaks with a firefighter at Muan International Airport in Muan, South Jeolla Province, on Dec. 29, 2024, near the site of a Jeju Air plane crash, in this photo provided by the finance ministry. (Yonhap)
SEJONG, Dec. 30 (Korea Bizwire) — South Korea’s economy has entered uncharted waters as Deputy Prime Minister Choi Sang-mok assumes the role of acting president following the impeachment of Prime Minister Han Duck-soo, who had been serving as acting president.
The markets, which had barely weathered the shock of the December 3 martial law declaration by the president, must now contend with a more fundamental systemic risk: the instability of an acting presidency under the finance minister. The won immediately reflected these concerns, surging to nearly 1,500 per dollar.
Government officials in Sejong City have expressed cold criticism of Han’s decision, with many questioning the responsibility of his actions given the current economic situation.
The consensus among officials is that Han should have maintained his position, regardless of the political warfare between the ruling and opposition parties over consecutive impeachment attempts.
While the opposition party pushed for impeachment, observers note that Han effectively invited it by refusing to appoint Constitutional Court justices. “The core of this crisis lies with the president, who completely lost leadership on December 3,” an anonymous high-ranking official said.
“Han essentially abandoned ship after passing on a ticking time bomb, even though the Han-Choi partnership had been somewhat successful in containing the shock.”
A key official familiar with international institutions warned that while democracy’s credibility was already damaged by the martial law situation, “the real crisis could emerge as the firewall between politics and economy crumbles with the finance minister becoming acting president.”
For Acting President Choi, who has inherited this predicament, the challenges begin immediately. He must maintain the position as a last line of defense for South Korea’s international credibility, while facing difficult decisions regarding Constitutional Court appointments.
Bank of Korea Governor Rhee Chang-yong’s previous revelation that he had urged then-Deputy Prime Minister Choi not to resign after the martial law declaration underscores the symbolic importance of maintaining economic leadership.
“If the last remaining economic control tower fails to maintain its position, economic policy itself could derail,” said Joo Won, deputy director of economic research at the Hyundai Research Institute.
The crisis has already begun to impact Choi’s emergency economic management system, which had been central to maintaining international credibility over the past four weeks. As deputy prime minister, Choi had orchestrated multiple initiatives, including cross-ministerial meetings on foreign relations, industrial competitiveness, and financial markets.
Particularly effective was the daily “F4″ meeting with the heads of major financial institutions, which helped minimize market impact through consistent messaging. Choi’s role in communicating with foreign economic ministers, credit rating agencies, and international financial organizations had been crucial in assuring the world of South Korea’s economic stability.
“Han not only failed to stabilize the political situation but left after creating greater chaos,” said Jung Se-eun, an economics professor at Chungnam National University. “The deputy prime minister, who was already stretched thin managing economic issues, now faces an even greater burden.”
M. H. Lee (mhlee@koreabizwire.com)
