ⓒYONHAP News

Kim Soo-hyun is out as the presidential office’s chief policy adviser, with President Moon Jae-in on Friday pegging Kim Sang-jo, head of Korea’s antitrust watchdog, to replace him.

The president also appointed vice finance minister Lee Ho-seung as senior presidential secretary for economic affairs, succeeding Yoon Jong-won.

The chief policymaker and senior economic affairs secretary work in coordination with the finance minister and help guide the country's economic policies.

Both Kim Soo-hyun and Yoon have been on the job less than a year -- since last November and June, respectively -- and their replacement underlines the urgency of reversing the current economic slowdown and sluggish job market.

Moon, approaching the half-way point of his presidential term, has sought tangible improvements for the economy, but has struggled to do so in the wake of sluggish demand for exports and increasing uncertainty surrounding the U.S.-China trade war.

South Korea’s economy shrank zero-point-four percent in the first quarter of this year, the worst such contraction since the global financial crisis late last decade.

Further, both the Bank of Korea and the Organization for Economic Cooperation and Development have recently marked down annual growth projections for the domestic economy by point-one and point-two percentage point, respectively, to two-point-five percent and two-point-four percent.

 

The new presidential chief of staff for policy Kim Sang-jo has been serving as chairperson of the Fair Trade Commission under Moon. The former economics professor is also known for his efforts to reform Korea’s conglomerates.

Lee, meanwhile, was a key player at the finance ministry and has previous experience as a presidential aide in the current administration.