CaliToday (07/9/2025): SEOUL – South Korea on Sunday announced a sweeping government overhaul that will see the powerful state prosecutor's office dissolved and the finance ministry stripped of its authority to draft the national budget, with new, separate agencies established to handle these key functions.
The reform is a key part of President Lee Jae-myung's agenda, fulfilling a campaign pledge to curb the power of what he described as overly influential government bodies. The move, however, has already drawn criticism from some legal and economic experts.
Following a meeting between the government and the ruling party, Interior Minister Yun Ho-jung announced the plan to push ahead with removing budget-planning authority from the finance ministry and entrusting it to a new, dedicated agency.
These changes are aimed at "better implementing key national agendas for the people and establishing a foundation to solve complex issues like the climate crisis and the artificial intelligence (AI) transition," Yun said in a televised briefing.
Under the proposed reform, the nation's prosecutor's office, which currently handles both prosecutorial and investigative functions, will be broken up. Two new agencies will be created to handle these duties separately, a move intended to decentralize the significant power wielded by the current institution.
Legal and economic professionals have voiced concerns, warning that the prosecution could lose its political independence and neutrality under the new system. Critics of the budget reform also argue that the changes could lead to a faster accumulation of national debt under the liberal president, with potentially less fiscal oversight.
The ruling Democratic Party, formerly led by President Lee, holds a comfortable majority in the 300-seat unicameral parliament, which will need to approve the changes announced on Sunday.
Minister Yun stated that the reforms are expected to take effect approximately one year after they receive parliamentary approval.
