President Lee Jae-myung Carries Out Cabinet Reshuffle of Six Ministers

Lee Hyung-il, former First Vice Minister of the Ministry of Economy and Finance, was promoted to Deputy Prime Minister for Economy and Minister of Economy and Finance, while the incumbent Deputy Prime Minister Koo Yoon-cheol was dismissed. In addition, the Ministers of Justice, National Defense, Gender Equality and Family, Land, Infrastructure and Transport, and SMEs and Startups were included in the reshuffle. Notably, Kang Shin-cheol, a graduate of the 64th class, was nominated as the candidate for Minister of National Defense.

The decision to retain these two figures, despite strong public calls for their dismissal, has escalated the controversy.

On 'Clien,' a community for Democratic Party supporters, negative reactions poured in, with posts like "I'm truly ashamed. I'm ashamed that I voted for Lee Jae-myung myself" becoming popular. Criticism against the appointment of candidate Yong Hye-in, in particular, is fierce, with warnings such as "the backlash will lead to a lame duck period."

The host reported that President Lee Jae-myung had warned the public to prepare for a collapse in apartment prices, forecasting a housing market crash. The government expects the benchmark interest rate to rise from 3.5% to 5% next year and plans to acquire a large number of foreclosed homes, purchased by those who 'borrowed to the hilt,' to utilize them for public rental housing projects. This direction of the government's housing policy is drawing strong backlash from the market, including real estate study cafes.

Attorney Hwang Sung-wook analyzed that a 'political lag phenomenon' in our society, i.e., contradictions within the left-wing camp, is becoming apparent. He pointed out that voters involved in politics tend to support the left-wing camp without fully understanding its true nature. He argued that many voters, particularly since the '87 System, are deceived by the Democratic Party's wording and support it without realizing what it truly pursues, even as they themselves advocate for fairness and freedom.

The host mentioned that President Lee Jae-myung and candidate Yong Hye-in's relationship dates back to 2016, adding that this appointment is being evaluated as unconventional and hard to understand even among young people and Democratic Party supporters.

Women's rights organizations have opposed the abolition, arguing that it could make women more vulnerable to crime. However, Yong Hye-in has consistently maintained her support for the abolition of security investigative powers despite these concerns.

Traditionally, when a proportional representative becomes a ministerial candidate, they resign their parliamentary seat, and the next in line inherits the position, allowing them to focus on their ministerial duties. However, Yong Hye-in's declaration of dual roles is drawing criticism for departing from political custom and questioning the possibility of a cabinet minister also serving as a lawmaker under Korea's constitutional system.

Kim Seung-won is a former co-representative of the 'Lawmakers' Meeting for Lee Jae-myung's Indictment Withdrawal,' formed by Democratic Party lawmakers. This has fueled suspicions that President Lee Jae-myung appointed Kim Seung-won to facilitate the withdrawal of charges in his own trials.

Attorney Hwang Sung-wook pointed out that this cabinet reshuffle was carried out due to President Lee Jae-myung's approval rating crisis. He assessed that despite the need for personnel appointments that could boost approval ratings, these appointments possess various elements that could further depress them. This leads to criticism of arbitrary personnel management that disregards public opinion.

He explained that since there is no law in our constitution prohibiting re-nomination, this is a fully possible option. However, he acknowledged the difficult situation of overturning a presidential rejection within the current political landscape and also mentioned the need for practical alternatives to prevent a vacuum in public services.

Researcher Lee Min-chan analyzed that while this personnel reshuffle raised public expectations, it possesses elements that will inevitably lead to a further decline in approval ratings rather than a rebound. President Lee Jae-myung's approval rating recorded 38.9% in a Realmeter survey, continuing its downward trend. He warned that this personnel failure could lead to an additional drop in approval ratings to the low 30s.

Based on this background, she is assessed as a figure who will promote policies centered on rental housing rather than private supply.

This implies that the government's real estate policy is skewed towards rental housing rather than easing private regulations and expanding supply, raising questions about its effectiveness in actual housing provision.

This interpretation suggests a political intention to unite a specific support base, regardless of worsening real estate sentiment. Therefore, criticism is emerging that the government's real estate policy is driven by political calculations rather than actual market improvement.

Researcher Lee Min-chan, citing an analysis by the National Assembly Research Service, pointed out that the current government's real estate policy is contradictory. He noted that the government shows policy clashes by simultaneously advocating for expanded supply while strengthening loan regulations. Contradictions in simultaneously promoting rental housing supply and buyer regulations were also pointed out. These policy contradictions are expected to be a major issue in the upcoming National Assembly audit in October.

Researcher Lee Min-chan analyzed that this cabinet reshuffle was a personnel move aimed at 'dumbing down' the government's problems during the regular National Assembly's question period and budget policy questions, where attacks from the opposition party are expected. However, he pointed out that appointing unverified individuals is instead causing backlash. In particular, a widening gap in public sentiment due to the maintenance of the real estate tax policy is expected.

Researcher Lee Min-chan criticized Minister Ahn Gyu-baek for changing his statement, promising to disclose his military records upon retirement in the past, but recently responding to questions about desertion allegations by saying he 'cannot comment due to an ongoing investigation.' Minister Ahn's side claims they will disclose the records after correction, but criticism over the broken promise and demands for transparent disclosure of administrative procedures are growing.

Initially, district chapter chairs will be elected by party member votes in 34 'accident' district chapters. Notably, party member evaluation in party affairs audits will account for 50%, suggesting that party members' opinions will be given greater weight in future nomination processes.

He also suggested that the population criteria for local constituencies should be made more realistic, considering the ease of communication due to the development of social media. With concerns over the excessive number of proportional representative seats, calls for an overall reform of the National Assembly are growing.