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| President-elect Yoon Suk-yeol speaks during a meeting with reporters at a press tent set up in front of his office in Tongui-dong, Jongno District, Seoul, Wednesday. Yonhap |
Moon names IMF director as new BOK governor amid escalating tensions
By Nam Hyun-woo
President-elect Yoon Suk-yeol and President Moon Jae-in clashed again on Wednesday with the two locking horns this time over the nomination of the central bank governor.
Yoon denied Cheong Wa Dae's explanation that it consulted with the president-elect before nominating the new Bank of Korea (BOK) governor. The nominations of several key posts, including the BOK governor, were some of the obstacles that stood in the way of Moon's one-on-one meeting with Yoon earlier this month.
The prospects of a Moon-Yoon meeting seem to have grown slim as the two sides show few signs of narrowing their differences on key agenda items.
According to Cheong Wa Dae, Moon named Rhee Chang-yong, director of the Asia and Pacific Department at the International Monetary Fund, as new governor of the BOK. Current BOK Governor Lee Ju-yeol's term ends on March 31.
"We designated Rhee Chang-yong as the new BOK governor after hearing the President-elect's opinion, in order to prevent a potential vacuum in the central bank's leadership," a senior Cheong Wa Dae official said.
"A BOK governor is an ex-officio member of the Monetary Policy Board, whose political neutrality is guaranteed. Regardless of the partisanship of the government, Lee's term will end on March 31 and we had to prepare for the next governor considering the appointment process," the official added.
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| Bank of Korea Governor nominee Rhee Chang-yong / Yonhap |
Rhee was known as an economist favored by Yoon to become the BOK governor. Although Yoon and Moon failed to narrow their differences over other nominees, it had been reported that the two sides were almost on the same page regarding Rhee's nomination.
After Cheong Wa Dae's announcement, however, Yoon's spokesperson, Rep. Kim Eun-hye of the People Power Party (PPP), denied the explanation provided by the top office. In a text message sent to reporters, she wrote that it is not true that the President-elect had a prior consultation with Cheong Wa Dae about the nomination. She also denied that Yoon recommended a particular figure for a certain post.
The two sides gave differing accounts of what their counterparts had said during the closed-door working-level talks.
"There have been no recommendation and consultation with Cheong Wa Dae over the nomination," Yoon's chief of staff, PPP Rep. Chang Je-won, told reporters Wednesday.
"While speaking to senior presidential secretary for political affairs Lee Cheol-hee, he asked, 'how about Rhee' and I said 'he is a good man.' That was the end of the conversation. It was not a consultation or recommendation," Chang said. "Lee notified me about the nomination just 10 minutes before Cheong Wa Dae announced it, so I just said, 'Do whatever you want' and 'we don't agree with this nomination.'"
Cheong Wa Dae also refuted the claims made by Yoon's side.
"We thought Yoon's side would be satisfied with the nomination because we granted their wishes," another senior Cheong Wa Dae official said. "Multiple names have been mentioned as candidates for BOK governor and Cheong Wa Dae asked two people. … They chose Rhee over the other and asked whether Cheong Wa Dae screened their past records and conducted background checks. We said yes, and announced it."
"We're embarrassed to hear that they denied there was prior consultation. We thought this would be a gift for Yoon's side and discussions (over a meeting between Moon and Yoon) could go well," the official added. "If they continue lying, we can also reveal everything."
The blame game between the two sides signals that the chances of a Moon-Yoon meeting appear thin as the two sides continue to clash over practically every issue.
Previously, Korea's outgoing and incoming presidents met within 10 days after a new leader was elected. But Yoon and Moon still show no signs of narrowing their differences although two weeks have passed since Yoon won the March 9 presidential election.
After Moon congratulated Yoon's victory during a phone call a day later, there has been no direct conversation between them. Initially, they were scheduled to meet on March 16, but the meeting was postponed as the two clashed over Moon's intention of naming the new heads of government agencies within his presidency.
Representing the two sides, senior presidential secretary for political affairs Lee and Yoon's chief of staff Chang had attempted to negotiate the date of their meeting, but failed to make progress.
According to sources, the two sides are also clashing over Cheong Wa Dae's intention to fill two empty seats at the Board of Audit and Inspection (BAI) Commissioners' Council.
To start an audit on a government arm, the council requires the approvals of four out of its seven members. Among five current commissioners, three are considered to be favorable to the Moon administration. If Moon names a figure favorable to his administration, it will be difficult for the BAI to launch audits critical of the Moon administration.
Reportedly, Cheong Wa Dae wanted each side to recommend one commissioner, but Yoon's side demanded "a right to veto Cheong Wa Dae's recommendation" as the precondition for the Yoon-Moon meeting. As the two sides failed to narrow the differences, talks between political affairs secretary and Yoon's chief of staff ended without discussions, sources said.
"Media reports are describing the nomination as a gesture for reconciliation, but I don't agree," Chang said. "The nomination seems nothing more than efforts to justify its intention to name BAI commissioners of its favor. I don't understand why they (Cheong Wa Dae) are doing this."
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| Park Soo-hyun, senior presidential secretary for public communication, announces Rhee Chang-yong, the Director of the Asia and Pacific Department at the International Monetary Fund, as the new Bank of Korea Governor, during a press conference at Cheong Wa Dae, Wednesday. Yonhap |
Yoon and Moon are also at odds over the President-elect's plan to move the presidential office to the defense ministry compound in Yongsan District, Seoul. To finance his plan from the state reserve fund, Yoon requires the Cabinet's approval. But Moon on Tuesday presided over a Cabinet meeting without even tabling Yoon's proposal.
The two sides also confronted each other on Tuesday, as the president-elect and Defense Minister Suh Wook disagreed on whether North Korea's recent artillery fire violated an inter-Korean military agreement.
Against this backdrop, the President-elect's close aides are saying the meeting with Moon is "unnecessary."
"If they fail to reach an agreement on important agendas, there will be no reason for Yoon and Moon to meet and the meeting will be unnecessary," PPP Rep. Kweon Seong-dong said in a radio interview, Wednesday. "If the President wants to exercise his authority until May 9, meaning he wants to do whatever he wants, there is no need for us to have a meeting with Moon."
