South Korea’s ruling bloc is pushing forward with legislation to separate the budget function from the Ministry of Economy and Finance and to effectively dismantle the Financial Services Commission.

Immediately following the launch of the new administration, the government swiftly introduced a bill to reorganize its structure, accelerating the reform of the Economy Ministry – a key campaign pledge of President Lee Jae-myung.

If the bill passes the National Assembly, the Financial Services Commission will transfer its domestic financial policy and supervisory functions to the Ministry of Economy and Finance and the Financial Supervisory Service, respectively, effectively leading to its dissolution.

According to the National Assembly on Wednesday, Representative Cha Gyu-geun of the Rebuilding Korea Party submitted a package of amendments to key laws, including the Government Organization Act, Act on the Establishment of Financial Services Commission, and Act on Management of Public Institutions.

The core of the reform is to separate the budget function from the Ministry of Economy and Finance into an independent Budget Office. It is also to restructure the Ministry of Economy and Finance into a Ministry of Finance.

The Public Institution Management Committee, which evaluates the performance of public institutions, will be transferred from the ministry to the Prime Minister’s Office.

In exchange, the newly established Ministry of Finance will take over the Financial Services Commission’s domestic financial policy function, managing both international and domestic financial affairs.

The Financial Services Commission will be reorganized into a Financial Supervisory Commission, focusing on financial supervision and consumer protection.

The Rebuilding Korea Party did not field a candidate but supported President Lee during the presidential election.

With the party now backing this legislative initiative, the ruling Democratic Party – which holds a parliamentary majority – is expected to lend strong support to ensure the bill’s passage.

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